PRIOR PRINTER'S NOS. 606, 853, 963 PRINTER'S NO. 1026
No. 10 Session of 2003
INTRODUCED BY BRIGHTBILL, JUBELIRER, PICCOLA, WENGER, THOMPSON,
EARLL, ROBBINS, M. WHITE, KUKOVICH, WONDERLING, D. WHITE,
PILEGGI, CONTI, MADIGAN, COSTA, DENT, LEMMOND, RHOADES,
ARMSTRONG, RAFFERTY AND PUNT, MARCH 28, 2003
SENATOR THOMPSON, APPROPRIATIONS, RE-REPORTED AS AMENDED,
JUNE 24, 2003
AN ACT
1 Providing for an economic enhancement program in the Department <--
2 of Community and Economic Development; creating tax incentive
3 districts; establishing the Economic Enhancement Fund;
4 providing for the financing of grants and loans; and making
5 an appropriation.
6 AMENDING TITLES 12 (COMMERCE AND TRADE) AND 72 (TAXATION AND <--
7 FISCAL AFFAIRS) OF THE PENNSYLVANIA CONSOLIDATED STATUTES,
8 CODIFYING PORTIONS OF THE ECONOMIC DEVELOPMENT FINANCING LAW
9 AND FURTHER PROVIDING FOR CONTRACT REQUIREMENTS AND FOR
10 COMMONWEALTH OBLIGATIONS; CODIFYING PORTIONS OF THE JOB
11 ENHANCEMENT ACT AND FURTHER PROVIDING FOR CONTRACT
12 REQUIREMENTS, FOR GUIDELINES, FOR ADMINISTRATION AND FOR
13 APPLICATION AND REVIEW REQUIREMENTS; CODIFYING PORTIONS OF
14 THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY
15 EXPANSION ZONE ACT AND FURTHER PROVIDING FOR KEYSTONE
16 OPPORTUNITY EXPANSION SUBZONES AND FOR KEYSTONE OPPORTUNITY
17 IMPROVEMENT ZONES; PROVIDING FOR THE PROJECT REVIEW
18 COMMITTEE, FOR KEYSTONE INNOVATION ZONES, FOR THE ECONOMIC
19 ENHANCEMENT PROGRAM, FOR THE ECONOMIC ENHANCEMENT FINANCING
20 PROGRAM, FOR THE CORE INDUSTRIES INFRASTRUCTURE
21 CAPITALIZATION PROGRAM, FOR THE WATER AND WASTEWATER
22 INFRASTRUCTURE CAPITALIZATION PROGRAM, FOR THE FIRST
23 INDUSTRIES PROGRAM, FOR THE SECONDARY GROWTH STAGE FINANCING
24 PROGRAM, FOR PRIMARY GROWTH STAGE INVESTMENT PROVIDING FOR
25 THE ECONOMIC ENHANCEMENT FUND; CODIFYING THE CAPITAL
26 FACILITIES DEBT ENABLING ACT; FURTHER PROVIDING FOR
27 DEFINITIONS, FOR PROCEDURES FOR CAPITAL BUDGET AND DEBT
28 AUTHORIZING LEGISLATION, FOR BONDS, FOR APPROPRIATIONS FOR
29 AND LIMITATIONS ON REDEVELOPMENT ASSISTANCE AND SITE
30 DEVELOPMENT CAPITAL PROJECTS, AND FOR FUNDING AND
31 ADMINISTRATION OF REDEVELOPMENT ASSISTANCE CAPITAL PROJECTS;
1 PROVIDING FOR FUNDING AND ADMINISTRATION OF SITE DEVELOPMENT
2 CAPITAL PROJECTS AND FOR THE CAPITAL PROJECT OVERSIGHT AND
3 REVIEW COMMITTEE; CONTINUING DEBT AUTHORIZATION; MAKING
4 REPEALS; REQUIRING A REFERENDUM; AND MAKING APPROPRIATIONS.
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 Economic
9 Enhancement Act.
10 Section 2. Findings.
11 The General Assembly finds and declares as follows:
12 (1) There exists in this Commonwealth areas of economic
13 distress which require coordinated efforts by private and
14 public entities to restore prosperity and to enable these
15 areas to make significant contributions to the economic and
16 social life of this Commonwealth.
17 (2) Long-term economic viability of these areas requires
18 the cooperative involvement of residents, businesses and
19 State and local assistance, and it is in the best interests
20 of this Commonwealth to create incentive zones and to provide
21 grants and loans to persons located in these zones to
22 encourage this long-term economic redevelopment.
23 Section 3. Definitions.
24 The following words and phrases when used in this act shall
25 having the meaning given to them in this section unless the
26 context clearly indicates otherwise:
27 "Authority." The Pennsylvania Economic Development Financing
28 Authority established by the act of August 23, 1967 (P.L.251,
29 No.102), known as the Economic Development Financing Law.
30 "Capital costs." The actual costs of the construction of all
31 of the following:
20030S0010B1026 - 2 -
1 (1) Works or improvements which will become public works
2 or improvements.
3 (2) New buildings, structures or fixtures.
4 (3) The demolition, alteration, remodeling, repair or
5 reconstruction of existing buildings, structures or fixtures.
6 (4) The acquisition, upgrade or rehabilitation of
7 machinery and equipment.
8 (5) The acquisition, clearing or grading of land.
9 The term includes the actual cost of the construction,
10 rehabilitation or repair of publicly owned infrastructure
11 improvements located outside the boundaries of a tax increment
12 district which are of direct benefit to a project.
13 "Department." The Department of Community and Economic
14 Development of the Commonwealth.
15 "Deteriorated property." A blighted, impoverished area
16 containing residential, industrial, commercial or other real
17 property which is abandoned, unsafe, vacant, undervalued,
18 underutilized, overgrown, defective, condemned or demolished or
19 which contains economically undesirable land use. The term
20 includes all of the following:
21 (1) A tax increment district.
22 (2) Property adjacent to deteriorated property which is
23 significantly undervalued and underutilized due to the
24 proximity of the deteriorated property.
25 "Fund." The Economic Enhancement Fund established by section
26 7.
27 "Issuing authority." As that term is defined in section 3 of
28 the act of July 11, 1990 (P.L.465, No.113), known as the Tax
29 Increment Financing Act.
30 "Project." The undertakings or activities for the
20030S0010B1026 - 3 -
1 elimination of deteriorated property. The term includes property
2 acquisition, clearance, redevelopment, rehabilitation or
3 conservation.
4 "Project costs." An expenditure made or estimated to be made
5 or any monetary obligation incurred or estimated to be incurred
6 in connection with a project. Project costs include all of the
7 following:
8 (1) Capital costs.
9 (2) Financing costs.
10 (3) Professional service costs.
11 (4) Administrative costs.
12 (5) Relocation costs.
13 (6) Organizational costs.
14 (7) Any other cost associated with a project.
15 "Qualified project." A project approved by the Department of
16 Community and Economic Development under section 6.
17 "Tax incentive district." A contiguous geographic area
18 approved by the Department of Community and Economic Development
19 under section 5.
20 "Tax increment district." As that term is defined in section
21 3 of the act of July 11, 1990 (P.L.465, No.113), known as the
22 Tax Increment Financing Act.
23 Section 4. Economic Enhancement Program.
24 There is hereby established within the department the
25 Economic Enhancement Program. The Economic Enhancement Program
26 shall be comprised of tax incentive districts approved by the
27 department.
28 Section 5. Tax incentive districts.
29 (a) Proposal.--The Governor may, by Executive Order,
30 designate deteriorated property in this Commonwealth as a
20030S0010B1026 - 4 -
1 proposed tax incentive district. An Executive Order designating
2 deteriorated property shall specify the time period for which
3 the property is designated not to exceed 20 years. The
4 department shall immediately notify municipalities located
5 within the area designated.
6 (b) Application.--Within 90 days of receiving notification
7 in accordance with subsection (a), a municipality may apply to
8 the department for approval of the designation of the
9 deteriorated property as a tax incentive district. The
10 application shall be on a form provided by the department and
11 shall include a copy of the ordinance, resolution or other
12 required action from the governing body of the municipality
13 approving the establishment of the tax incentive district. All
14 appropriate ordinances and resolutions shall be binding and
15 nonrevocable on the municipality.
16 (c) Designation.--If all municipalities within a proposed
17 tax incentive district submit timely completed applications, the
18 department shall approve the applications and designate the
19 property as a tax incentive district. Persons owning property
20 located within a tax incentive district and issuing authorities
21 of tax increment districts located within a tax incentive
22 district shall be eligible to receive grants and loans for
23 qualified projects from the authority.
24 Section 6. Projects.
25 (a) Application.--A person may apply to the department for
26 approval of a project. The application shall be on the form and
27 in the manner established by the department and shall include a
28 detailed list of project costs.
29 (b) Review.--The department shall review the application.
30 The department may approve the project if it determines that all
20030S0010B1026 - 5 -
1 of the following apply:
2 (1) The applicant is a person that owns property in a
3 tax incentive district or is an issuing authority of a tax
4 increment district located within a tax incentive district.
5 (2) The project would be located in a tax incentive
6 district or is located in a tax increment district.
7 (3) The project would do or does any of the following:
8 (i) Create career-oriented net new jobs or preserve
9 jobs.
10 (ii) Increase and diversify the manufacturing base
11 of this Commonwealth.
12 (iii) Aid in the expansion of existing private
13 companies, particularly those that sell their products
14 outside this Commonwealth.
15 (iv) Attract new industries with new products into
16 economically distressed areas within this Commonwealth.
17 (v) Promote industrial, commercial and other
18 economic development within this Commonwealth.
19 (vi) Promote a healthy environment through the
20 abatement, safe storage, transportation, reduction,
21 elimination, remediation and disposal within this
22 Commonwealth of pollutants and wastes.
23 (vii) Otherwise promote the health, welfare and
24 safety of the residents of this Commonwealth by promoting
25 economic activity and efficiency or alleviating or
26 eliminating unemployment, blight and other unhealthy
27 conditions.
28 (c) Notice.--The department shall notify the authority of
29 projects which have been approved by the department and which
30 are eligible for financial assistance by the authority.
20030S0010B1026 - 6 -
1 Section 7. Establishment of Economic Enhancement Fund.
2 (a) Establishment.--There is hereby established a special
3 fund known as the Economic Enhancement Fund. Interest income
4 derived from investment of the money in the fund shall be
5 credited by the Treasury Department to the fund.
6 (b) Calculation.--Within 30 days of the end of each quarter,
7 the Department of Revenue shall calculate and notify the
8 Secretary of the Budget of the aggregate revenue received by the
9 Commonwealth pursuant to Articles II, IV and VI of the act of
10 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
11 1971, from taxpayers located within tax incentive districts.
12 (c) Transfer.--Within ten days of receiving notification in
13 accordance with subsection (b), the Secretary of the Budget
14 shall direct the State Treasurer to transfer the sum equal to
15 25% of the aggregate revenue received by the Commonwealth
16 pursuant to Articles II, IV and VI of the Tax Reform Code of
17 1971, from taxpayers located within tax incentive districts,
18 from the General Fund to the fund.
19 (d) Appropriation and payments.--Moneys in the fund are
20 hereby appropriated on a continuing basis to the authority. The
21 State Treasurer shall provide semiannual payments to the
22 authority on August 1 and February 1 of each year until the
23 authority is terminated. August 1 payments shall be equal to the
24 balance of the fund on July 15 of that calendar year, and
25 February 1 payments shall be equal to the balance of the fund on
26 January 15 of that calendar year.
27 Section 8. Financial assistance.
28 The authority shall provide financial assistance to persons
29 for qualified projects. The financial assistance shall be in the
30 form of loans or single-year or multiyear grants and may include
20030S0010B1026 - 7 -
1 proceeds from the sale of bonds. Prior to providing financial
2 assistance to a person, the authority shall enter into a
3 contract with the person. The contract shall include a provision
4 requiring the person to repay the grant or loan from any
5 proceeds resulting from a sale or partial sale of the project by
6 the applicant in accordance with the following:
7 (1) If the project is sold less than two years after
8 receipt of the grant or loan, the person shall pay to the
9 authority 90% of the grant or loan received.
10 (2) If the project is sold two or more years but less
11 than four years after receipt of the grant or loan, the
12 person shall pay to the authority 80% of the grant or loan
13 received.
14 (3) If the project is sold four or more years but less
15 than six years after receipt of the grant or loan, the person
16 shall pay to the authority 70% of the grant or loan received.
17 (4) If the project is sold six or more years but less
18 than eight years after receipt of the grant or loan, the
19 person shall pay to the authority 60% of the grant or loan
20 received.
21 (5) If the project is sold eight or more years but less
22 than ten years after receipt of the grant or loan, the person
23 shall pay to the authority 50% of the grant or loan received.
24 The authority may impose any other terms and conditions on the
25 financial assistance as the board determines is in the best
26 interests of the authority.
27 Section 9. Initial issue of authority bonds.
28 The first series of bonds to be issued by the authority for
29 loans or grants authorized in accordance with this act shall be
30 issued in a manner and at a time so that the net proceeds of the
20030S0010B1026 - 8 -
1 bonds shall be available on or before June 30, 2004, or as soon
2 as practicable thereafter.
3 Section 20. Construction.
4 The provisions of this act providing for security for and
5 rights and remedies of obligees of the authority shall be
6 liberally construed to achieve the purposes stated and provided
7 for in this act.
8 Section 21. Appropriation.
9 The sum of $500,000 is hereby appropriated to the authority
10 from the General Fund. The appropriation in this section is an
11 advance which shall be repaid by the authority from the first
12 issue of bonds used to finance grants and loans under this act
13 as soon as is practicable and in no event later than June 30,
14 2004.
15 Section 22. Severability.
16 The provisions of this act are severable. If any provision of
17 this act or its application to any person or circumstance is
18 held invalid, the invalidity shall not affect other provisions
19 or applications of this act which can be given effect without
20 the invalid provision or application.
21 Section 23. Effective date.
22 This act shall take effect July 1, 2003, or immediately,
23 whichever is later.
24 SECTION 1. THE GENERAL ASSEMBLY FINDS AND DECLARES AS <--
25 FOLLOWS:
26 (1) AN ECONOMIC STIMULUS PROGRAM WHICH PROVIDES DIRECT
27 IMMEDIATE ECONOMIC ASSISTANCE TO PENNSYLVANIA BUSINESSES AND
28 INDUSTRIES IS NEEDED TO PRESERVE AND TO CREATE JOBS WITHIN
29 THIS COMMONWEALTH.
30 (2) BY TARGETING GRANT AND LOAN ASSISTANCE TO
20030S0010B1026 - 9 -
1 PENNSYLVANIA BUSINESSES AND INDUSTRIES FOR JOB CREATION,
2 HEALTH CARE SAFETY AND INDUSTRIAL AND COMMERCIAL SITE
3 DEVELOPMENT, THE COMMONWEALTH WILL TRIGGER THE NEEDED
4 REDEVELOPMENT AND ECONOMIC GROWTH OF INDUSTRIAL AND
5 COMMERCIAL ACTIVITIES CONDUCTED WITHIN THIS COMMONWEALTH.
6 (3) BY TARGETING GRANT AND LOAN ASSISTANCE TO
7 PENNSYLVANIA COMMUNITIES FOR WATER AND WASTEWATER
8 INFRASTRUCTURE PROJECTS, THE COMMONWEALTH WILL TRIGGER THE
9 REDEVELOPMENT OF EXISTING BROWNFIELD SITES AND IMPROVE THE
10 ENVIRONMENT AND HEALTH OF ALL RESIDENTS OF THIS COMMONWEALTH.
11 (4) BY EXPANDING TAX-BASED FINANCING OF ECONOMIC
12 DEVELOPMENT PROJECTS, THE COMMONWEALTH WILL ASSIST LOCAL
13 GOVERNMENTS IN RETAINING EMPLOYERS OF AND RECRUITING
14 EMPLOYERS TO THIS COMMONWEALTH.
15 (5) BY TARGETING LOAN ASSISTANCE TO THE TOURISM AND
16 AGRICULTURE SECTORS OF THE COMMONWEALTH'S ECONOMY, THE
17 COMMONWEALTH WILL PROVIDE ADDITIONAL FINANCIAL SUPPORT TO
18 THOSE LEADING COMMONWEALTH INDUSTRIES HARD HIT BY WORLD
19 EVENTS AND ECONOMIC INSTABILITY.
20 (6) BY TARGETING CAPITAL INVESTMENT AND SUBSIDIZED LOAN
21 ASSISTANCE TO EMERGING BUSINESS, THE COMMONWEALTH WILL
22 STIMULATE THE GROWTH AND INCREASE THE STABILITY OF SMALL
23 BUSINESSES WITHIN THIS COMMONWEALTH.
24 (7) BY PREPARING THE COMMONWEALTH TO FACE THE FEDERAL
25 BASE REALIGNMENT AND CLOSURE (BRAC) PROCESS, THE COMMONWEALTH
26 WILL INCREASE THE NUMBER OF EXISTING JOBS IT RETAINS DURING
27 THE NEXT ROUND OF FEDERAL BASE REALIGNMENT AND CLOSURES.
28 SECTION 1.1. TITLE 12 OF THE PENNSYLVANIA CONSOLIDATED
29 STATUTES IS AMENDED BY ADDING PARTS TO READ:
30 PART I
20030S0010B1026 - 10 -
1 GENERAL PROVISIONS
2 CHAPTER
3 1. (RESERVED)
4 3. ECONOMIC DEVELOPMENT FINANCING STRATEGY
5 5. SMALL BUSINESS COUNCIL
6 7. TAX-EXEMPT BOND ALLOCATION (RESERVED)
7 CHAPTER 1
8 (RESERVED)
9 CHAPTER 3
10 ECONOMIC DEVELOPMENT FINANCING STRATEGY
11 SEC.
12 301. SCOPE.
13 302. DEFINITIONS.
14 303. DEVELOPMENT.
15 304. OVERSIGHT.
16 § 301. SCOPE.
17 THIS CHAPTER RELATES TO THE DEVELOPMENT OF AN ANNUAL ECONOMIC
18 DEVELOPMENT FINANCING STRATEGY.
19 § 302. DEFINITIONS.
20 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
21 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
22 CONTEXT CLEARLY INDICATES OTHERWISE:
23 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
24 DEVELOPMENT OF THE COMMONWEALTH.
25 "ECONOMIC DEVELOPMENT PROGRAM." A PROGRAM WHICH IS
26 ADMINISTERED BY AND WHICH PROVIDES FINANCIAL ASSISTANCE FOR
27 ECONOMIC DEVELOPMENT TO PERSONS OR A PROGRAM OF A PUBLIC ENTITY
28 WHICH PROVIDES FINANCIAL ASSISTANCE FOR ECONOMIC DEVELOPMENT TO
29 PERSONS IN COORDINATION WITH THE DEPARTMENT OF COMMUNITY AND
30 ECONOMIC DEVELOPMENT. THE TERM INCLUDES ALL OF THE FOLLOWING:
20030S0010B1026 - 11 -
1 (1) ANY PROGRAM CREATED UNDER PART III (RELATING TO
2 ECONOMIC DEVELOPMENT PROGRAMS).
3 (2) ANY PROGRAM OF AN ENTITY CREATED UNDER PART IV
4 (RELATING TO ECONOMIC DEVELOPMENT FINANCING).
5 (3) THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY.
6 (4) THE PENNSYLVANIA MINORITY BUSINESS DEVELOPMENT
7 AUTHORITY.
8 (5) THE INFRASTRUCTURE DEVELOPMENT PROGRAM.
9 (6) THE INDUSTRIAL SITES REUSE PROGRAM.
10 (7) THE TAX CREDIT PROGRAMS ESTABLISHED IN ARTICLES
11 XVII-B AND XVIII-B OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
12 KNOWN AS THE TAX REFORM CODE OF 1971.
13 § 303. DEVELOPMENT.
14 THE DEPARTMENT SHALL ANNUALLY DEVELOP A REPORT CONTAINING A
15 FINANCING STRATEGY FOR ECONOMIC DEVELOPMENT WITHIN THIS
16 COMMONWEALTH. IN DEVELOPING THE REPORT, THE DEPARTMENT SHALL
17 GATHER INPUT AND RECOMMENDATIONS FROM BUSINESSES, COMMUNITY
18 LEADERS AND ORGANIZATIONS, LEGISLATORS AND PRIVATE CITIZENS. THE
19 REPORT SHALL INCLUDE ALL OF THE FOLLOWING:
20 (1) A FINANCIAL AUDIT OR STATEMENT OF OPERATIONS FOR
21 EACH ECONOMIC DEVELOPMENT PROGRAM.
22 (2) A NARRATIVE DESCRIPTION OF ACCOMPLISHMENTS FOR EACH
23 ECONOMIC DEVELOPMENT PROGRAM DURING THE PRECEDING FISCAL
24 YEAR.
25 (3) A DETAILED DESCRIPTION OF THE PARAMETERS OF
26 OPERATION FOR THE ECONOMIC DEVELOPMENT PROGRAMS DURING THE
27 UPCOMING FISCAL YEAR. THE DESCRIPTION SHALL INCLUDE THE TERMS
28 AND CONDITIONS UNDER WHICH THE ECONOMIC DEVELOPMENT PROGRAMS
29 SHALL BE ADMINISTERED.
30 (4) A DESCRIPTION OF THE PERFORMANCE MEASUREMENTS AND
20030S0010B1026 - 12 -
1 ACCOUNTABILITY FACTORS TO BE APPLIED AND THE PERFORMANCE
2 TARGETS OR GOALS TO BE MET FOR EACH ECONOMIC DEVELOPMENT
3 PROGRAM.
4 (5) A DESCRIPTION OF LONG-RANGE PLANNING FOR THE
5 ECONOMIC DEVELOPMENT PROGRAMS THROUGH THE NEXT FIVE FISCAL
6 YEARS.
7 (6) A LIST OF THE LOANS, GRANTS OR CREDITS APPROVED BY
8 THE ECONOMIC DEVELOPMENT PROGRAMS DURING THE FISCAL YEAR. THE
9 LIST SHALL INCLUDE A BRIEF DESCRIPTION OF AND DETAILS
10 REGARDING EACH LOAN, GRANT OR CREDIT APPROVED.
11 (7) A REVIEW OF PENDING PROJECTS.
12 § 304. OVERSIGHT.
13 CONCURRENT WITH THE SUBMISSION OF THE GOVERNOR'S ANNUAL
14 BUDGET MESSAGE, THE DEPARTMENT SHALL SUBMIT THE REPORT REQUIRED
15 BY THIS CHAPTER TO ALL OF THE FOLLOWING:
16 (1) THE SECRETARY OF THE SENATE.
17 (2) THE CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF
18 THE SENATE.
19 (3) THE CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES.
20 (4) THE CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF
21 THE HOUSE OF REPRESENTATIVES.
22 CHAPTER 5
23 SMALL BUSINESS COUNCIL
24 SEC.
25 501. SCOPE.
26 502. DEFINITIONS.
27 503. SMALL BUSINESS COUNCIL.
28 504. REGULATORY REVIEW.
29 § 501. SCOPE.
30 THIS CHAPTER RELATES TO THE SMALL BUSINESS COUNCIL.
20030S0010B1026 - 13 -
1 § 502. DEFINITIONS.
2 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
3 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
4 CONTEXT CLEARLY INDICATES OTHERWISE:
5 "COUNCIL." THE SMALL BUSINESS COUNCIL ESTABLISHED UNDER
6 SECTION 503 (RELATING TO SMALL BUSINESS COUNCIL).
7 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
8 DEVELOPMENT OF THE COMMONWEALTH.
9 "EXECUTIVE AGENCY." THE GOVERNOR AND THE DEPARTMENTS,
10 BOARDS, COMMISSIONS, AUTHORITIES AND OTHER OFFICERS AND AGENCIES
11 OF THE COMMONWEALTH. THE TERM DOES NOT INCLUDE ANY COURT OR
12 OTHER OFFICER OR AGENCY OF THE UNIFIED JUDICIAL SYSTEM, THE
13 GENERAL ASSEMBLY AND ITS OFFICERS AND AGENCIES OR ANY
14 INDEPENDENT AGENCY OR STATE-AFFILIATED ENTITY.
15 "SECRETARY." THE SECRETARY OF COMMUNITY AND ECONOMIC
16 DEVELOPMENT OF THE COMMONWEALTH.
17 "SMALL BUSINESS." A PERSON THAT EMPLOYS FEWER THAN 100
18 EMPLOYEES.
19 § 503. SMALL BUSINESS COUNCIL.
20 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
21 DEPARTMENT AN AGENCY TO BE KNOWN AS THE SMALL BUSINESS COUNCIL.
22 THE COUNCIL SHALL DO ALL OF THE FOLLOWING:
23 (1) ASSIST WITH THE DEVELOPMENT OF POLICIES AND
24 REGULATIONS WHICH AFFECT SMALL BUSINESSES WITHIN THIS
25 COMMONWEALTH.
26 (2) PROVIDE ADVICE RELATING TO THE NATURE OF SMALL
27 BUSINESS PRACTICES AND PROBLEMS IN THIS COMMONWEALTH.
28 (3) PROVIDE A REVIEW OF EXISTING AND PROPOSED POLICIES
29 AND REGULATIONS WHICH ARE RELEVANT TO SMALL BUSINESS.
30 (B) COMPOSITION.--THE COUNCIL SHALL BE COMPOSED OF 13
20030S0010B1026 - 14 -
1 MEMBERS. THE SECRETARY SHALL SERVE EX OFFICIO. TWELVE MEMBERS
2 SHALL BE APPOINTED AS FOLLOWS:
3 (1) FOUR INDIVIDUALS APPOINTED BY THE GOVERNOR.
4 (2) TWO INDIVIDUALS APPOINTED BY THE PRESIDENT PRO
5 TEMPORE OF THE SENATE.
6 (3) TWO INDIVIDUALS APPOINTED BY THE MINORITY LEADER OF
7 THE SENATE.
8 (4) TWO INDIVIDUALS APPOINTED BY THE SPEAKER OF THE
9 HOUSE OF REPRESENTATIVES.
10 (5) TWO INDIVIDUALS APPOINTED BY THE MINORITY LEADER OF
11 THE HOUSE OF REPRESENTATIVES.
12 (C) QUALIFICATIONS.--IN ORDER TO BE ELIGIBLE FOR APPOINTMENT
13 TO THE COUNCIL, AN INDIVIDUAL MUST:
14 (1) HAVE A BACKGROUND IN IMPROVING SMALL BUSINESSES; AND
15 (2) BE ONE OF THE FOLLOWING:
16 (I) A PRESENT OWNER OR OPERATOR OF A SMALL BUSINESS
17 WITHIN THIS COMMONWEALTH;
18 (II) A MEMBER OF THE ACADEMIC COMMUNITY WHO HAS
19 EXPERTISE REGARDING SMALL BUSINESS PRACTICES; OR
20 (III) A PROFESSIONAL WHO SPECIALIZES IN REPRESENTING
21 SMALL BUSINESSES.
22 (D) TERM.--EACH MEMBER OF THE COUNCIL SHALL SERVE FOR A
23 PERIOD OF TWO YEARS.
24 (E) ORGANIZATION.--THE SECRETARY SHALL SERVE AS CHAIRPERSON.
25 THE MEMBERS OF THE COUNCIL SHALL ELECT FROM AMONG THEMSELVES A
26 VICE CHAIRPERSON, SECRETARY, TREASURER AND SUCH OTHER OFFICERS
27 AS THEY MAY DETERMINE.
28 (F) MEETINGS.--THE COUNCIL SHALL MEET AT THE CALL OF THE
29 CHAIRPERSON BUT SHALL MEET AT LEAST ONCE EACH QUARTER.
30 (G) QUORUM.--A MAJORITY OF THE BOARD SHALL CONSTITUTE A
20030S0010B1026 - 15 -
1 QUORUM. A MAJORITY OF THE MEMBERS PRESENT SHALL BE NECESSARY TO
2 TRANSACT BUSINESS ON BEHALF OF THE COUNCIL.
3 (H) EXPENSES.--A MEMBER SHALL NOT RECEIVE COMPENSATION OR
4 REMUNERATION, BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ALL
5 REASONABLE AND NECESSARY ACTUAL EXPENSES.
6 (I) ADMINISTRATIVE ASSISTANCE.--THE DEPARTMENT SHALL DO ALL
7 OF THE FOLLOWING:
8 (1) PROVIDE ADMINISTRATIVE AND TECHNICAL SUPPORT TO THE
9 COUNCIL.
10 (2) PUBLISH NOTICE OF COUNCIL MEETINGS IN ACCORDANCE
11 WITH 65 PA.C.S. CH.7 (RELATING TO OPEN MEETINGS).
12 (3) MAINTAIN A MAILING LIST OF PERSONS WHO HAVE
13 REQUESTED SPECIFIC NOTIFICATION OF MEETINGS AND ACTIVITIES OF
14 THE COUNCIL.
15 (4) DESIGNATE A DEPUTY SECRETARY TO ATTEND COUNCIL
16 MEETINGS AND TO SERVE AS THE PUBLIC'S LIAISON OF THE COUNCIL.
17 (J) COOPERATION.--UPON THE COUNCIL'S REQUEST, AN EXECUTIVE
18 AGENCY SHALL PROVIDE THE COUNCIL WITH OFFICIALLY PROMULGATED
19 REGULATORY AND NONREGULATORY DOCUMENTS WHICH REGULATE OR WOULD
20 REGULATE SMALL BUSINESSES.
21 § 504. REGULATORY REVIEW.
22 (A) NOTIFICATION.--TO THE EXTENT KNOWN TO THE SECRETARY, THE
23 DEPARTMENT SHALL, ON A SEMIANNUAL BASIS, PROVIDE THE COUNCIL
24 WITH A LIST OF REGULATIONS BEING PROPOSED BY ALL EXECUTIVE
25 AGENCIES WHICH MAY AFFECT SMALL BUSINESSES IN THIS COMMONWEALTH.
26 (B) CONFERENCE.--THE DEPARTMENT SHALL, UPON REQUEST OF THE
27 COUNCIL, ARRANGE A MEETING BETWEEN THE COUNCIL AND
28 REPRESENTATIVES OF AN EXECUTIVE AGENCY TO DISCUSS REGULATORY
29 PROPOSALS AND POLICY INITIATIVES OF THE EXECUTIVE AGENCY WHICH
30 MIGHT AFFECT SMALL BUSINESSES IN THIS COMMONWEALTH.
20030S0010B1026 - 16 -
1 (C) WRITTEN COMMENTS.--THE COUNCIL SHALL PROVIDE THE
2 DEPARTMENT WITH WRITTEN COMMENTS REGARDING THE COUNCIL'S
3 POSITION ON THE PROPOSED REGULATIONS. THE DEPARTMENT SHALL
4 TRANSMIT THE COMMENTS TO THE APPROPRIATE EXECUTIVE AGENCIES. THE
5 WRITTEN COMMENTS SHALL INCLUDE AN IMPACT STATEMENT AND ANY OTHER
6 INFORMATION WHICH THE COUNCIL DEEMS NECESSARY FOR THE PUBLIC TO
7 MAKE AN INFORMED OPINION ON THE PROPOSALS.
8 (D) EXCEPTIONS.--THE REQUIREMENTS UNDER SUBSECTIONS (A) AND
9 (B) SHALL NOT APPLY TO THE PROMULGATION OF THE FOLLOWING
10 REGULATIONS RELATING TO SMALL BUSINESSES:
11 (1) REGULATIONS REQUIRED BY COURT ORDER.
12 (2) REGULATIONS NECESSITATED BY A FEDERAL OR STATE
13 DECLARATION OF EMERGENCY.
14 (3) INTERIM REGULATIONS WHICH ARE AUTHORIZED BY STATUTE.
15 CHAPTER 7
16 TAX-EXEMPT BOND ALLOCATION
17 (RESERVED)
18 PART II
19 ECONOMIC DEVELOPMENT ENTITIES
20 CHAPTER
21 11. BEN FRANKLIN (RESERVED)
22 13. INDUSTRIAL RESOURCE CENTERS (RESERVED)
23 15. (RESERVED)
24 17. (RESERVED)
25 19. (RESERVED)
26 CHAPTER 11
27 BEN FRANKLIN
28 (RESERVED)
29 CHAPTER 13
30 INDUSTRIAL RESOURCE CENTERS
20030S0010B1026 - 17 -
1 (RESERVED)
2 CHAPTER 15
3 (RESERVED)
4 CHAPTER 17
5 (RESERVED)
6 CHAPTER 19
7 (RESERVED)
8 PART III
9 ECONOMIC DEVELOPMENT PROGRAMS
10 CHAPTER
11 21. OPPORTUNITY GRANTS
12 23. SMALL BUSINESS FIRST
13 25. INDUSTRIAL DEVELOPMENT ASSISTANCE (RESERVED)
14 27. CUSTOMIZED JOB TRAINING (RESERVED)
15 29. MACHINERY AND EQUIPMENT (RESERVED)
16 31. FAMILY SAVINGS ACCOUNT (RESERVED)
17 33. ECONOMIC ENHANCEMENT
18 35. KEYSTONE ECONOMIC DEVELOPMENT ZONES
19 37. KEYSTONE INNOVATION ZONES
20 CHAPTER 21
21 OPPORTUNITY GRANTS
22 SEC.
23 2101. SCOPE.
24 2102. DEFINITIONS.
25 2103. ESTABLISHMENT.
26 2104. APPLICATION.
27 2105. REVIEW.
28 2106. APPROVAL.
29 2107. PENALTY.
30 2108. LIMITATIONS.
20030S0010B1026 - 18 -
1 2109. GUIDELINES.
2 § 2101. SCOPE.
3 THIS CHAPTER RELATES TO THE OPPORTUNITY GRANT PROGRAM.
4 § 2102. DEFINITIONS.
5 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
6 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
7 CONTEXT CLEARLY INDICATES OTHERWISE:
8 "APPLICANT." A PERSON THAT APPLIES FOR A GRANT IN ACCORDANCE
9 WITH THIS CHAPTER.
10 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
11 DEVELOPMENT OF THE COMMONWEALTH.
12 "DEVELOPER." A PERSON THAT HAS AS A PURPOSE THE PROMOTION OR
13 CONSTRUCTION OF ECONOMIC DEVELOPMENT PROJECTS AND THAT IS
14 ENGAGED IN THE DEVELOPMENT OF REAL ESTATE FOR USE BY MORE THAN
15 ONE PERSON.
16 "ELIGIBLE RECIPIENT." ANY OF THE FOLLOWING PERSONS:
17 (1) A MUNICIPALITY.
18 (2) AN ENTITY CREATED UNDER THE ACT OF AUGUST 23, 1967
19 (P.L.251, NO.102), KNOWN AS THE ECONOMIC DEVELOPMENT
20 FINANCING LAW.
21 (3) AN ENTITY CERTIFIED AS AN INDUSTRIAL DEVELOPMENT
22 AGENCY UNDER THE ACT OF MAY 17, 1956 (1955 P.L.1609, NO.537),
23 KNOWN AS THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY
24 ACT.
25 (4) AN ENTITY CREATED UNDER 53 PA.C.S. CH.56 (RELATING
26 TO MUNICIPAL AUTHORITIES) OR UNDER THE FORMER ACT OF MAY 2,
27 1945 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES
28 ACT OF 1945.
29 (5) AN ENTITY CREATED UNDER THE ACT OF MAY 24, 1945
30 (P.L.991, NO.385), KNOWN AS THE URBAN REDEVELOPMENT LAW.
20030S0010B1026 - 19 -
1 (6) A DEVELOPER.
2 (7) A PERSON THAT IS ENGAGED IN ANY OF THE FOLLOWING
3 ACTIVITIES:
4 (I) THE PRODUCTION OR PROCESSING OF FARM
5 COMMODITIES.
6 (II) MANUFACTURING.
7 (III) RESEARCH AND DEVELOPMENT.
8 (IV) EXPORT SERVICES.
9 (V) ANY OTHER ACTIVITY WHICH OFFERS A SIGNIFICANT
10 ECONOMIC IMPACT ON THE COMMONWEALTH, AS DETERMINED BY THE
11 DEPARTMENT.
12 "ELIGIBLE USE." ANY OF THE FOLLOWING ACTIVITIES:
13 (1) JOB TRAINING.
14 (2) THE ACQUISITION OF LAND, BUILDINGS OR RIGHTS-OF-WAY.
15 (3) THE CONSTRUCTION OR REHABILITATION OF BUILDINGS.
16 (4) THE CONSTRUCTION OR REHABILITATION OF
17 INFRASTRUCTURE.
18 (5) THE PURCHASE OR UPGRADING OF MACHINERY AND
19 EQUIPMENT.
20 (6) WORKING CAPITAL.
21 (7) SITE PREPARATION, INCLUDING DEMOLITION AND
22 CLEARANCE.
23 (8) ENVIRONMENTAL ASSESSMENTS.
24 (9) REMEDIATION OF HAZARDOUS MATERIAL.
25 (10) ARCHITECTURAL AND ENGINEERING FEES UP TO 10% OF THE
26 AWARD.
27 "JOB-CREATING ECONOMIC DEVELOPMENT." INCLUDES THE EXPANSION
28 OR PRESERVATION OF EXISTING INDUSTRY.
29 "PROGRAM." THE OPPORTUNITY GRANT PROGRAM ESTABLISHED IN
30 SECTION 2103 (RELATING TO ESTABLISHMENT.)
20030S0010B1026 - 20 -
1 "PROJECT." AN ACTIVITY CONDUCTED IN THIS COMMONWEALTH.
2 "RECIPIENT." A PERSON WHO RECEIVES A GRANT UNDER THIS
3 CHAPTER.
4 § 2103. ESTABLISHMENT.
5 THERE IS ESTABLISHED WITHIN THE DEPARTMENT A PROGRAM TO BE
6 KNOWN AS THE OPPORTUNITY GRANT PROGRAM. THE PROGRAM SHALL BE
7 ADMINISTERED BY THE DEPARTMENT TO PROVIDE GRANTS TO ELIGIBLE
8 PERSONS FOR CERTAIN PROJECTS WHICH ENCOURAGE JOB-CREATING
9 ECONOMIC DEVELOPMENT WITHIN THIS COMMONWEALTH.
10 § 2104. APPLICATION.
11 A PERSON MAY SUBMIT AN APPLICATION TO THE DEPARTMENT
12 REQUESTING A GRANT FOR A PROJECT. THE APPLICATION SHALL BE ON
13 THE FORM REQUIRED BY THE DEPARTMENT AND SHALL INCLUDE OR
14 DEMONSTRATE ALL OF THE FOLLOWING:
15 (1) THE NAME AND ADDRESS OF THE APPLICANT.
16 (2) A STATEMENT THAT THE APPLICANT IS AN ELIGIBLE
17 RECIPIENT UNDER THE PROGRAM.
18 (3) A STATEMENT OF THE AMOUNT OF GRANT SOUGHT.
19 (4) A STATEMENT OF THE PROJECT, INCLUDING A DETAILED
20 STATEMENT OF THE COST OF THE PROJECT.
21 (5) A STATEMENT IDENTIFYING THE ECONOMIC IMPACT OF THE
22 PROJECT TO THE REGION AND THE ESTIMATED IMPACT ON STATE AND
23 LOCAL REVENUES.
24 (6) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
25 SOURCE FOR AT LEAST 80% OF THE COST OF THE PROJECT.
26 (7) A FIRM COMMITMENT FROM THE APPLICANT TO COMPLETE THE
27 PROJECT.
28 (8) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
29 § 2105. REVIEW.
30 THE DEPARTMENT SHALL REVIEW THE APPLICATION TO DETERMINE ALL
20030S0010B1026 - 21 -
1 OF THE FOLLOWING:
2 (1) IF THE APPLICANT IS AN ELIGIBLE RECIPIENT UNDER THE
3 PROGRAM.
4 (2) IF THE PROJECT IS AN ELIGIBLE USE OF GRANT PROCEEDS
5 UNDER THE PROGRAM.
6 (3) IF A FINANCIAL COMMITMENT EXISTS FOR AT LEAST 80% OF
7 THE COST OF THE PROJECT.
8 (4) IF THE FINANCIAL COMMITMENT FROM THE SOURCE IS FIRM.
9 (5) IF THE SOURCE OF THE FINANCIAL COMMITMENT IS
10 RESPONSIBLE.
11 (6) IF THE APPLICANT COMPLIED WITH ALL OTHER CRITERIA
12 ESTABLISHED BY THE DEPARTMENT.
13 § 2106. APPROVAL.
14 THE FOLLOWING SHALL APPLY:
15 (1) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
16 MET, THE DEPARTMENT MAY APPROVE THE APPLICATION AND AWARD A
17 GRANT. GRANTS SHALL BE AWARDED IN A MANNER WHICH MAXIMIZES
18 GEOGRAPHIC DIVERSITY.
19 (2) PRIOR TO PROVIDING GRANT FUNDS TO THE APPLICANT, THE
20 DEPARTMENT SHALL ENTER INTO A CONTRACT WITH THE APPLICANT.
21 THE CONTRACT SHALL INCLUDE PROVISIONS REQUIRING THE APPLICANT
22 TO DO ALL OF THE FOLLOWING:
23 (I) USE THE GRANT TO PAY THE COSTS OF THE PROJECT.
24 (II) REPAY THE GRANT FROM ANY PROCEEDS RESULTING
25 FROM A SALE OR PARTIAL SALE OF THE PROJECT BY THE
26 APPLICANT IN ACCORDANCE WITH THE FOLLOWING:
27 (A) IF THE PROJECT IS SOLD LESS THAN TWO YEARS
28 AFTER RECEIPT OF THE GRANT, THE APPLICANT SHALL REPAY
29 THE COMMONWEALTH 90% OF THE GRANT RECEIVED.
30 (B) IF THE PROJECT IS SOLD MORE THAN TWO YEARS
20030S0010B1026 - 22 -
1 BUT LESS THAN FOUR YEARS AFTER RECEIPT OF THE GRANT,
2 THE APPLICANT SHALL REPAY THE COMMONWEALTH 80% OF THE
3 GRANT RECEIVED.
4 (C) IF THE PROJECT IS SOLD MORE THAN FOUR YEARS
5 BUT LESS THAN SIX YEARS AFTER RECEIPT OF THE GRANT,
6 THE APPLICANT SHALL REPAY THE COMMONWEALTH 70% OF THE
7 GRANT RECEIVED.
8 (D) IF THE PROJECT IS SOLD MORE THAN SIX YEARS
9 BUT LESS THAN EIGHT YEARS AFTER RECEIPT OF THE GRANT,
10 THE APPLICANT SHALL REPAY THE COMMONWEALTH 60% OF THE
11 GRANT RECEIVED.
12 (E) IF THE PROJECT IS SOLD MORE THAN EIGHT YEARS
13 BUT LESS THAN TEN YEARS AFTER RECEIPT OF THE GRANT,
14 THE APPLICANT SHALL REPAY THE COMMONWEALTH 50% OF THE
15 GRANT RECEIVED.
16 (3) THE DEPARTMENT MAY IMPOSE ANY OTHER TERMS AND
17 CONDITIONS ON THE GRANTS AUTHORIZED BY THIS CHAPTER AS THE
18 DEPARTMENT DETERMINES IS IN THE BEST INTERESTS OF THE
19 COMMONWEALTH, INCLUDING A PROVISION REQUIRING COLLATERAL FOR
20 ANY PENALTY IMPOSED UNDER THE PROGRAM.
21 § 2107. PENALTY.
22 (A) IMPOSITION.--EXCEPT AS PROVIDED IN SUBSECTION (B), THE
23 DEPARTMENT SHALL IMPOSE A PENALTY UPON A RECIPIENT FOR ANY OF
24 THE FOLLOWING:
25 (1) FAILING TO CREATE THE NUMBER OF JOBS SPECIFIED IN
26 THE RECIPIENTS APPLICATION.
27 (2) FAILING TO INJECT THE REQUIRED AMOUNT OF PRIVATE
28 MATCHING FUNDS INTO THE PROJECT.
29 (B) EXCEPTION.--THE DEPARTMENT MAY WAIVE THE PENALTY
30 REQUIRED BY SUBSECTION (A) IF THE DEPARTMENT DETERMINES THAT THE
20030S0010B1026 - 23 -
1 FAILURE WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
2 RECIPIENT.
3 (C) AMOUNT.--THE AMOUNT OF THE PENALTY SHALL BE EQUAL TO THE
4 FULL AMOUNT OF THE GRANT RECEIVED PLUS AN ADDITIONAL AMOUNT OF
5 UP TO 10% OF THE AMOUNT OF THE GRANT RECEIVED. THE PENALTY SHALL
6 BE PAYABLE IN ONE LUMP SUM OR IN INSTALLMENTS, WITH OR WITHOUT
7 INTEREST, AS THE DEPARTMENT DEEMS APPROPRIATE.
8 § 2108. LIMITATIONS.
9 (1) AN APPLICANT MAY NOT RECEIVE A GRANT UNDER THIS
10 CHAPTER FOR MORE THAN TWO CONSECUTIVE FISCAL YEARS FOR THE
11 SAME PROJECT.
12 (2) A GRANT AWARDED UNDER THIS CHAPTER MAY NOT BE USED
13 TO DO ANY OF THE FOLLOWING:
14 (I) REFINANCE OR RETIRE EXISTING DEBT.
15 (II) PAY COST UNRELATED TO A PROJECT LOCATION AT A
16 SITE IN THIS COMMONWEALTH.
17 (3) IN NO CASE SHALL THE AGGREGATE AMOUNT OF GRANTS PAID
18 IN ANY FISCAL YEAR UNDER THIS CHAPTER EXCEED THE ANNUAL
19 APPROPRIATION TO THE DEPARTMENT FOR THE PROGRAM.
20 (4) A GRANT AWARDED UNDER THIS CHAPTER SHALL IN NO WAY
21 CONSTITUTE AN ENTITLEMENT DERIVED FROM THE COMMONWEALTH OR A
22 CLAIM ON ANY OTHER FUNDS OF THE COMMONWEALTH.
23 § 2109. GUIDELINES.
24 (A) DEVELOPMENT.--THE DEPARTMENT SHALL DEVELOP WRITTEN
25 GUIDELINES FOR THE PROGRAM. THE GUIDELINES SHALL DO ALL OF THE
26 FOLLOWING:
27 (1) LIMIT GRANT SIZE FOR ANY SINGLE PROJECT.
28 (2) CLARIFY ELIGIBLE USES OF GRANTS.
29 (3) CLARIFY STANDARDS FOR ELIGIBILITY.
30 (B) USE.--NO PROJECTS MAY BE APPROVED UNTIL THE WRITTEN
20030S0010B1026 - 24 -
1 GUIDELINES HAVE BEEN COMPLETED AND COPIES OF THE GUIDELINES HAVE
2 BEEN SUBMITTED TO THE GENERAL ASSEMBLY.
3 CHAPTER 23
4 SMALL BUSINESS FIRST
5 SEC.
6 2301. SCOPE.
7 2302. DEFINITIONS.
8 2303. ESTABLISHMENT.
9 2304. FUND AND ACCOUNTS.
10 2305. DEPARTMENT RESPONSIBILITIES.
11 2306. CAPITAL DEVELOPMENT LOANS.
12 2307. EDA LOANS.
13 2308. LOANS IN DISTRESSED COMMUNITIES.
14 2309. POLLUTION PREVENTION ASSISTANCE LOANS.
15 2310. EXPORT FINANCING LOANS.
16 2311. REPORTING AND INSPECTION.
17 2312. LIMITATIONS.
18 § 2301. SCOPE.
19 THIS CHAPTER RELATES TO THE SMALL BUSINESS FIRST PROGRAM.
20 § 2302. DEFINITIONS.
21 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
22 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
23 CONTEXT CLEARLY INDICATES OTHERWISE:
24 "AGRICULTURAL PRODUCER." A PERSON INVOLVED IN THE MANAGEMENT
25 AND USE OF A NORMAL AGRICULTURAL OPERATION FOR THE PRODUCTION OF
26 A FARM COMMODITY.
27 "APPAREL PRODUCTS." PRODUCTS MANUFACTURED, WOVEN, CUT, SEWN
28 OR OTHERWISE SIMILARLY PROCESSED BY MECHANICAL OR HUMAN EFFORT
29 FROM FABRICS, LEATHER OR CLOTH AND MADE FOR USE AS CLOTHING,
30 SHOES OR OTHER ATTIRE.
20030S0010B1026 - 25 -
1 "APPLICANT." A PERSON THAT APPLIES FOR A LOAN IN ACCORDANCE
2 WITH THIS CHAPTER.
3 "AREA LOAN ORGANIZATION." A LOCAL DEVELOPMENT DISTRICT, AN
4 INDUSTRIAL DEVELOPMENT AGENCY ORGANIZED AND EXISTING UNDER THE
5 ACT OF MAY 17, 1956 (1955 P.L.1609, NO.537), KNOWN AS THE
6 PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY ACT, OR ANY OTHER
7 NONPROFIT ECONOMIC DEVELOPMENT ORGANIZATION CERTIFIED BY THE
8 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AS POSSESSING
9 THE QUALIFICATIONS NECESSARY TO EVALUATE AND ADMINISTER LOANS
10 MADE UNDER THIS CHAPTER.
11 "CAPITAL DEVELOPMENT PROJECT." LAND, BUILDINGS, EQUIPMENT
12 AND MACHINERY AND WORKING CAPITAL WHICH IS ACQUIRED,
13 CONSTRUCTED, RENOVATED OR USED BY A SMALL BUSINESS IN ACCORDANCE
14 WITH ANY OF THE FOLLOWING:
15 (1) AS PART OF A FOR-PROFIT PROJECT OR VENTURE NOT OF A
16 MERCANTILE OR SERVICE-RELATED NATURE, EXCEPT FOR HOSPITALITY
17 INDUSTRY PROJECTS.
18 (2) AS PART OF AN EFFORT TO:
19 (I) BRING A SMALL BUSINESS INTO COMPLIANCE WITH
20 FEDERAL OR STATE ENVIRONMENTAL LAWS OR REGULATIONS;
21 (II) COMPLETE AN APPROVED REMEDIATION PROJECT; OR
22 (III) PERMIT A SMALL BUSINESS TO ADOPT GENERALLY
23 ACCEPTABLE POLLUTION PREVENTION PRACTICES.
24 (3) AS PART OF AN EFFORT TO PROVIDE ASSISTANCE TO A
25 SMALL BUSINESS THAT IS A RECYCLER OF MUNICIPAL OR COMMERCIAL
26 WASTE OR THAT IS A MANUFACTURER USING RECYCLED MUNICIPAL OR
27 COMMERCIAL WASTE MATERIALS.
28 (4) AS PART OF AN EFFORT TO ASSIST A SMALL BUSINESS WITH
29 DEFENSE CONVERSION ACTIVITIES.
30 (5) AS PART OF A FOR-PROFIT PROJECT OR VENTURE TO
20030S0010B1026 - 26 -
1 MANUFACTURE PRODUCTS TO BE EXPORTED OUT OF THE UNITED STATES
2 BY A SMALL BUSINESS WHICH IS NOT OF A MERCANTILE OR SERVICE-
3 RELATED NATURE, EXCEPT FOR EXPORT-RELATED SERVICES AND
4 INTERNATIONAL EXPORT-RELATED MERCANTILE VENTURES OR ADVANCED
5 TECHNOLOGY AND COMPUTER-RELATED SERVICES AND MERCANTILE
6 VENTURES AND WHICH WILL INCREASE THIS COMMONWEALTH'S NATIONAL
7 OR INTERNATIONAL MARKET SHARES.
8 (6) AS PART OF A FOR-PROFIT PROJECT OR VENTURE THAT
9 MEETS THE REQUIREMENTS OF SECTION 2308 (RELATING TO LOANS IN
10 DISTRESSED COMMUNITIES)
11 (7) AS PART OF AN EFFORT TO ASSIST IN THE START-UP OR
12 EXPANSION OF A FOR-PROFIT OR NOT-FOR-PROFIT CHILD DAY-CARE
13 CENTER SUBJECT TO LICENSURE BY THE COMMONWEALTH.
14 "CHILD DAY-CARE CENTER." ANY PREMISES IN WHICH CHILD DAY
15 CARE IS PROVIDED SIMULTANEOUSLY FOR SEVEN OR MORE CHILDREN WHO
16 ARE NOT RELATED TO THE PROVIDER.
17 "COMMUNITY DEVELOPMENT INSTITUTION." ANY OF THE FOLLOWING:
18 (1) AN AREA LOAN ORGANIZATION FOR A DISTRESSED
19 COMMUNITY.
20 (2) A COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION
21 LOCATED IN A DISTRESSED COMMUNITY AND APPROVED BY THE
22 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT.
23 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
24 DEVELOPMENT OF THE COMMONWEALTH.
25 "DISTRESSED COMMUNITY." A COMMUNITY WHICH HAS ANY OF THE
26 FOLLOWING:
27 (1) A CENSUS TRACT OR OTHER SPECIFICALLY DEFINED
28 GEOGRAPHIC AREA IN WHICH THERE IS ANY OF THE FOLLOWING:
29 (I) A MEDIAN INCOME BELOW 80% OF THE MEDIAN INCOME
30 FOR THE UNITED STATES OR THIS COMMONWEALTH.
20030S0010B1026 - 27 -
1 (II) TWENTY PERCENT OR MORE OF THE POPULATION IS
2 BELOW THE POVERTY LEVEL BY FAMILY SIZE PUBLISHED BY THE
3 BUREAU OF THE CENSUS.
4 (III) AN UNEMPLOYMENT RATE 50% HIGHER THAN THE
5 NATIONAL AVERAGE.
6 (2) AN AREA WHICH IS DESIGNATED A SUBZONE, EXPANSION
7 SUBZONE, OR IMPROVEMENT SUBZONE UNDER THE ACT OF OCTOBER 6,
8 1998 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE
9 AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT.
10 (3) ANY OTHER GEOGRAPHIC AREA DESIGNATED BY THE
11 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AS
12 DISTRESSED. THE DESIGNATION SHALL BE PUBLISHED IN THE
13 PENNSYLVANIA BULLETIN.
14 "EDA LOAN." A LOAN MADE UNDER THIS CHAPTER UTILIZING FUNDS
15 MADE AVAILABLE TO THE DEPARTMENT UNDER THE PUBLIC WORKS AND
16 ECONOMIC DEVELOPMENT ACT OF 1965 (PUBLIC LAW 89-136, 42 U.S.C. §
17 3121 ET SEQ.).
18 "EX-IM BANK." THE EXPORT-IMPORT BANK OF THE UNITED STATES.
19 "EXPORT ACTIVITY." AN ACTIVITY UNDERTAKEN BY A PERSON WITHIN
20 THIS COMMONWEALTH RELATED TO EXPORTS.
21 "EXPORT BUSINESS." A PERSON THAT IS ENGAGED IN A FOR-PROFIT
22 ENTERPRISE INVOLVING EXPORT ACTIVITIES AND THAT EMPLOYS 250 OR
23 FEWER INDIVIDUALS.
24 "EXPORTS." GOODS AND SERVICES TO BE SOLD OUTSIDE THE UNITED
25 STATES.
26 "FARM COMMODITY." ANY PENNSYLVANIA-GROWN AGRICULTURAL,
27 HORTICULTURAL, AQUACULTURAL, VEGETABLE, FRUIT AND FLORICULTURAL
28 PRODUCT OF THE SOIL, LIVESTOCK AND MEATS, WOOLS, HIDES, FURS,
29 POULTRY, EGGS, DAIRY PRODUCTS, NUTS, MUSHROOMS, HONEY PRODUCTS
30 AND FOREST PRODUCTS.
20030S0010B1026 - 28 -
1 "FUND." THE SMALL BUSINESS FIRST FUND CONTINUED UNDER
2 SECTION 2304 (RELATING TO FUND AND ACCOUNTS).
3 "HAZARDOUS SUBSTANCE." ANY ELEMENT, COMPOUND OR MATERIAL
4 WHICH IS ANY OF THE FOLLOWING:
5 (1) REGULATED AS A HAZARDOUS AIR POLLUTANT UNDER SECTION
6 6.6 OF THE ACT OF JANUARY 8, 1960 (1959 P.L.2119, NO.787),
7 KNOWN AS THE AIR POLLUTION CONTROL ACT.
8 (2) DEFINED AS A HAZARDOUS WASTE UNDER SECTION 103 OF
9 THE ACT OF JULY 7, 1980 (P.L.380, NO.97), KNOWN AS THE SOLID
10 WASTE MANAGEMENT ACT.
11 (3) REGULATED UNDER THE ACT OF DECEMBER 7, 1990
12 (P.L.639, NO.165), KNOWN AS THE HAZARDOUS MATERIAL EMERGENCY
13 PLANNING AND RESPONSE ACT.
14 "HOSPITALITY INDUSTRY PROJECT." A FOR-PROFIT PROJECT OR
15 VENTURE WHICH INVOLVES A SMALL BUSINESS THAT OPERATES A HOTEL,
16 MOTEL OR OTHER LODGING FACILITY AND THAT EMPLOYS AT LEAST FIVE
17 FULL-TIME EQUIVALENT EMPLOYEES AT THE TIME AN APPLICATION IS
18 SUBMITTED TO THE DEPARTMENT OF COMMUNITY AND ECONOMIC
19 DEVELOPMENT FOR FINANCING. THE TERM INCLUDES A FOR-PROFIT
20 PROJECT OR VENTURE WHICH INVOLVES A SMALL BUSINESS THAT OPERATES
21 A RESTAURANT OR FOOD SERVICE OPERATION OPEN TO THE PUBLIC, THAT
22 HAS BEEN IN CONTINUOUS OPERATION FOR AT LEAST FIVE YEARS AND
23 THAT EMPLOYS AT LEAST FIVE FULL-TIME EQUIVALENT EMPLOYEES AT THE
24 TIME AN APPLICATION IS SUBMITTED.
25 "INSURANCE POLICY." AN EXPORT CREDIT INSURANCE POLICY FOR
26 SMALL BUSINESSES OFFERED BY THE EXPORT-IMPORT BANK OF THE UNITED
27 STATES.
28 "NATURAL DISASTER." AS DEFINED IN 35 PA.C.S. § 7102
29 (RELATING TO DEFINITIONS).
30 "NORMAL AGRICULTURAL OPERATION." AS DEFINED IN SECTION 2 OF
20030S0010B1026 - 29 -
1 THE ACT OF JUNE 10, 1982 (P.L.454, NO.133), ENTITLED "AN ACT
2 PROTECTING AGRICULTURAL OPERATIONS FROM NUISANCE SUITS AND
3 ORDINANCES UNDER CERTAIN CIRCUMSTANCES.
4 "POLLUTION PREVENTION." THE REDUCTION OR ELIMINATION OF
5 POLLUTION AT ITS SOURCE. THE TERM DOES NOT INCLUDE ANY OF THE
6 FOLLOWING:
7 (1) A SUBSTITUTION OF ONE HAZARDOUS OR TOXIC SUBSTANCE
8 FOR ANOTHER WHICH WILL CAUSE AN INCREASED RISK TO THE
9 ENVIRONMENT OR TO HUMAN HEALTH.
10 (2) A CROSS-MEDIA TRANSFER.
11 (3) A DELISTING OF A HAZARDOUS WASTE OR TOXIC CHEMICAL.
12 "POLLUTION PREVENTION ASSISTANCE AGENCY." ANY OF THE
13 FOLLOWING:
14 (1) AN AREA LOAN ORGANIZATION.
15 (2) AN INDUSTRIAL RESOURCE CENTER CREATED PURSUANT TO
16 THE ACT OF JUNE 22, 2001 (P.L.400, NO.31), KNOWN AS THE
17 INDUSTRIAL RESOURCES CENTER PARTNERSHIP ACT.
18 "POLLUTION PREVENTION INFRASTRUCTURE." A CAPITAL DEVELOPMENT
19 PROJECT WHICH PERMITS A SMALL BUSINESS TO ADOPT OR INSTALL
20 POLLUTION PREVENTION EQUIPMENT OR PROCESSES TO:
21 (1) REDUCE OR REUSE RAW MATERIALS ONSITE.
22 (2) REDUCE THE PRODUCTION OF WASTE.
23 (3) REDUCE ENERGY CONSUMPTION.
24 "PROGRAM." THE SMALL BUSINESS FIRST PROGRAM ESTABLISHED
25 UNDER SECTION 2303 (RELATING TO ESTABLISHMENT).
26 "REUSE." USE OF A PRODUCT OR COMPONENT IN ITS ORIGINAL FORM
27 MORE THAN ONCE.
28 "SMALL BUSINESS." A PERSON THAT IS ENGAGED IN A FOR-PROFIT
29 ENTERPRISE AND THAT EMPLOYS 100 OR FEWER INDIVIDUALS. THE TERM
30 INCLUDES THE FOLLOWING:
20030S0010B1026 - 30 -
1 (1) AN ENTERPRISE LOCATED IN A SMALL BUSINESS INCUBATOR
2 FACILITY.
3 (2) AN AGRICULTURAL PROCESSOR.
4 (3) AN AGRICULTURAL PRODUCER.
5 (4) AN ENTERPRISE WHICH MANUFACTURES APPAREL PRODUCTS.
6 (5) AN ENTERPRISE WHICH IS A FOR-PROFIT OR NOT-FOR-
7 PROFIT CHILD DAY-CARE CENTER SUBJECT TO LICENSURE BY THE
8 COMMONWEALTH.
9 "WORKING CAPITAL." CAPITAL USED BY A SMALL BUSINESS FOR
10 OPERATIONS, EXCLUDING FIXED ASSETS AND PRODUCTION MACHINERY AND
11 EQUIPMENT.
12 § 2303. ESTABLISHMENT.
13 THERE IS ESTABLISHED WITHIN THE DEPARTMENT A PROGRAM TO BE
14 KNOWN AS THE SMALL BUSINESS FIRST PROGRAM. THE PROGRAM SHALL BE
15 ADMINISTERED BY THE DEPARTMENT AND PROVIDE LOANS TO ELIGIBLE
16 PERSONS FOR CERTAIN PROJECTS WHICH ENCOURAGE JOB CREATING AND
17 JOB PRESERVING ECONOMIC DEVELOPMENT WITHIN THIS COMMONWEALTH.
18 § 2304. FUND AND ACCOUNTS.
19 (A) FUND.--THE SMALL BUSINESS FIRST FUND, CREATED UNDER
20 SECTION 1302(A) OF THE ACT OF JUNE 29, 1996 (P.L.434, NO.67),
21 KNOWN AS THE JOB ENHANCEMENT ACT, IS CONTINUED. THE TREASURY
22 DEPARTMENT SHALL CREDIT THE FOLLOWING TO THE FUND:
23 (1) APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY TO THE
24 DEPARTMENT FOR THE PROGRAM.
25 (2) FEDERAL FUNDS MADE AVAILABLE UNDER THE PUBLIC WORKS
26 AND ECONOMIC DEVELOPMENT ACT OF 1965 (PUBLIC LAW 89-136, 42
27 U.S.C. § 3121 ET SEQ.), OR ANY OTHER FEDERAL STATUTE,
28 REGULATION OR PROGRAM FOR THE PROGRAM.
29 (3) PAYMENTS FROM RECIPIENTS OF LOANS MADE FROM THE
30 FUND.
20030S0010B1026 - 31 -
1 (4) PAYMENTS FROM RECIPIENTS OF LOANS MADE UNDER THE
2 FORMER ACT OF JULY 2, 1984 (P.L.545, NO.109), KNOWN AS THE
3 CAPITAL LOAN FUND ACT.
4 (5) INTEREST INCOME DERIVED FROM INVESTMENT OF THE MONEY
5 IN THE FUND.
6 (6) ANY OTHER DEPOSITS, PAYMENTS OR CONTRIBUTIONS FROM
7 ANY OTHER SOURCE MADE AVAILABLE TO THE DEPARTMENT FOR THE
8 PROGRAM.
9 (B) POLLUTION PREVENTION ASSISTANCE.--THE POLLUTION
10 PREVENTION ASSISTANCE ACCOUNT, CREATED UNDER THE ACT OF JUNE 29,
11 1996 (P.L.434, NO.67), KNOWN AS THE JOB ENHANCEMENT ACT, IS
12 CONTINUED. THE TREASURY DEPARTMENT SHALL CREDIT THE FOLLOWING TO
13 THIS ACCOUNT:
14 (1) APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY TO THE
15 DEPARTMENT FOR POLLUTION PREVENTION ASSISTANCE.
16 (2) PAYMENTS FROM RECIPIENTS OF LOANS MADE FROM THE
17 POLLUTION PREVENTION ASSISTANCE ACCOUNT.
18 (3) TRANSFERS FROM THE HAZARDOUS SITES CLEANUP FUND AS
19 ESTABLISHED IN SECTION 602.3 OF THE ACT OF MARCH 4, 1971
20 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
21 (4) INTEREST INCOME DERIVED FROM INVESTMENT OF THE MONEY
22 IN THE POLLUTION PREVENTION ASSISTANCE ACCOUNT.
23 (5) ANY OTHER DEPOSITS, PAYMENTS OR CONTRIBUTIONS FROM
24 ANY OTHER SOURCE MADE AVAILABLE TO THE DEPARTMENT FOR
25 POLLUTION PREVENTION ASSISTANCE.
26 (C) EXPORT FINANCING.--THERE IS CREATED WITHIN THE FUND AN
27 ACCOUNT TO BE KNOWN AS THE EXPORT FINANCING ASSISTANCE ACCOUNT.
28 THE TREASURY DEPARTMENT SHALL CREDIT THE FOLLOWING TO THIS
29 ACCOUNT:
30 (1) APPROPRIATIONS MADE BY THE GENERAL ASSEMBLY TO THE
20030S0010B1026 - 32 -
1 DEPARTMENT FOR EXPORT FINANCING ASSISTANCE.
2 (2) PAYMENTS FROM RECIPIENTS OF LOANS MADE FROM THE
3 EXPORT FINANCING ASSISTANCE ACCOUNT.
4 (3) INTEREST INCOME DERIVED FROM INVESTMENT OF THE MONEY
5 IN THE EXPORT FINANCING ASSISTANCE ACCOUNT.
6 (4) ANY OTHER DEPOSITS, PAYMENTS OR CONTRIBUTIONS FROM
7 ANY OTHER SOURCE MADE AVAILABLE TO THE DEPARTMENT FOR EXPORT
8 FINANCING ASSISTANCE.
9 (D) USE OF FUND.--MONEY IN THE FUND MAY BE USED AS FOLLOWS:
10 (1) BY THE DEPARTMENT TO MAKE LOANS IN ACCORDANCE WITH
11 THIS CHAPTER AND FOR ADMINISTRATIVE COSTS OF THE DEPARTMENT
12 IN ADMINISTERING THE PROGRAM.
13 (2) BY AREA LOAN ORGANIZATIONS FOR ADMINISTRATIVE COSTS
14 ASSOCIATED WITH THE PROGRAM WHICH ARE APPROVED BY THE
15 DEPARTMENT.
16 (E) USE OF POLLUTION PREVENTION ASSISTANCE ACCOUNT.--MONEY
17 IN THE POLLUTION PREVENTION ASSISTANCE ACCOUNT MAY BE USED BY
18 THE DEPARTMENT TO PROVIDE LOANS TO SMALL BUSINESSES FOR THE
19 ADOPTION OR INSTALLATION OF POLLUTION-PREVENTION OR ENERGY-
20 EFFICIENT EQUIPMENT OR PROCESSES IN ACCORDANCE WITH SECTION 2309
21 (RELATING TO POLLUTION PREVENTION ASSISTANCE LOANS).
22 (F) USE OF EXPORT FINANCING ASSISTANCE ACCOUNT.--MONEY IN
23 THE EXPORT FINANCING ASSISTANCE ACCOUNT MAY BE USED BY THE
24 DEPARTMENT TO PROVIDE LOANS TO EXPORT BUSINESSES FOR EXPORT
25 ACTIVITIES IN ACCORDANCE WITH SECTION 2310 (RELATING TO EXPORT
26 FINANCING LOANS).
27 § 2305. DEPARTMENT RESPONSIBILITIES.
28 (A) GENERAL RULE.--THE DEPARTMENT SHALL DO ALL OF THE
29 FOLLOWING:
30 (1) ADMINISTER THE PROGRAM.
20030S0010B1026 - 33 -
1 (2) ESTABLISH WRITTEN GUIDELINES AS NECESSARY. ANY
2 GUIDELINES ESTABLISHED SHALL BE INCLUDED IN THE REPORT
3 REQUIRED BY CHAPTER 3 (RELATING TO ECONOMIC DEVELOPMENT
4 FINANCING STRATEGY).
5 (3) DEPOSIT PAYMENTS MADE BY RECIPIENTS IN THE FUND, THE
6 POLLUTION PREVENTION ASSISTANCE ACCOUNT OR EXPORT FINANCING
7 ASSISTANCE ACCOUNT, AS APPROPRIATE.
8 (4) APPROVE STANDARDS FOR AREA LOAN ORGANIZATION
9 APPLICATION FEES.
10 (5) APPROVE COMMUNITY DEVELOPMENT FINANCIAL
11 INSTITUTIONS.
12 (B) PROGRAM.--IN ADMINISTERING THE PROGRAM, THE DEPARTMENT
13 MAY DO ANY OF THE FOLLOWING:
14 (1) PROVIDE GRANTS OR OTHER FINANCIAL ASSISTANCE TO AREA
15 LOAN ORGANIZATIONS FOR ANY OF THE FOLLOWING PURPOSES:
16 (I) TO ESTABLISH LOAN RESERVE FUNDS.
17 (II) TO REIMBURSE LOAN LOSSES TO COMMERCIAL BANKS
18 AND OTHER FINANCIAL INSTITUTIONS AS A MEANS OF
19 ENCOURAGING THE EXPANSION AND FINANCING OF SMALL
20 BUSINESSES.
21 (2) APPLY TO THE EX-IM BANK FOR DELEGATED AUTHORITY
22 LENDER STATUS UNDER THE EX-IM BANK'S WORKING CAPITAL GUARANTY
23 PROGRAM.
24 (3) UTILIZE THE OUTSTANDING PORTFOLIO OF LOANS MADE
25 UNDER THIS CHAPTER TO RAISE ADDITIONAL FUNDS BY SELLING,
26 SECURING, HYPOTHECATING OR OTHERWISE USING SUCH LOAN PROCEEDS
27 AS A FINANCING VEHICLE IF THE FUNDS RAISED ARE USED BY THE
28 DEPARTMENT FOR EITHER OF THE FOLLOWING PURPOSES:
29 (I) TO MAKE NEW AND ADDITIONAL LOANS UNDER THIS
30 CHAPTER.
20030S0010B1026 - 34 -
1 (II) TO PAY COSTS ASSOCIATED WITH FINANCING.
2 § 2306. CAPITAL DEVELOPMENT LOANS.
3 (A) APPLICATION.--A SMALL BUSINESS MAY SUBMIT AN APPLICATION
4 AND ANY APPLICABLE APPLICATION FEE TO ITS AREA LOAN ORGANIZATION
5 REQUESTING A LOAN FOR CERTAIN COSTS OF A CAPITAL DEVELOPMENT
6 PROJECT. THE APPLICATION SHALL BE ON THE FORM REQUIRED BY THE
7 DEPARTMENT AND SHALL INCLUDE OR DEMONSTRATE ALL OF THE
8 FOLLOWING:
9 (1) THE NAME AND ADDRESS OF THE APPLICANT.
10 (2) A STATEMENT OF THE AMOUNT OF LOAN ASSISTANCE SOUGHT.
11 (3) A STATEMENT OF THE CAPITAL DEVELOPMENT PROJECT
12 INCLUDING A DETAILED STATEMENT OF THE COST OF THE PROJECT.
13 (4) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
14 SOURCE FOR ANY COST OF THE CAPITAL DEVELOPMENT PROJECT IN
15 EXCESS OF THE AMOUNT REQUESTED.
16 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
17 (B) AREA LOAN ORGANIZATION REVIEW.--
18 (1) UPON RECEIPT OF A COMPLETED APPLICATION, AN AREA
19 LOAN ORGANIZATION SHALL INVESTIGATE AND DETERMINE ALL OF THE
20 FOLLOWING:
21 (I) IF THE APPLICANT IS A SMALL BUSINESS.
22 (II) IF THE PROJECT IS A CAPITAL DEVELOPMENT
23 PROJECT.
24 (III) IF, WHEN THE APPLICANT IS A SMALL BUSINESS,
25 THE CAPITAL DEVELOPMENT PROJECT DEMONSTRATES A
26 SUBSTANTIAL LIKELIHOOD OF CREATING OR PRESERVING
27 EMPLOYMENT ACTIVITIES IN THIS COMMONWEALTH OR IF, WHEN
28 THE APPLICANT IS AN AGRICULTURE PRODUCER, THE PROJECT
29 DEMONSTRATES A SUBSTANTIAL LIKELIHOOD OF ENHANCING AND
30 GROWING NORMAL AGRICULTURE OPERATIONS.
20030S0010B1026 - 35 -
1 (IV) THE ABILITY OF THE APPLICANT TO MEET AND
2 SATISFY THE DEBT SERVICE AS IT BECOMES DUE AND PAYABLE.
3 (V) THE EXISTENCE AND SUFFICIENCY OF COLLATERAL FOR
4 THE LOAN. COLLATERAL MAY INCLUDE LIEN POSITIONS ON
5 NONRESIDENTIAL REAL PROPERTY AND ON PERSONAL PROPERTY.
6 (VI) RELEVANT CRIMINAL AND CREDIT HISTORY AND
7 RATINGS OF THE APPLICANT AS DETERMINED FROM OUTSIDE
8 CREDIT REPORTING SERVICES AND OTHER SOURCES.
9 (VII) THE NUMBER OF EMPLOYMENT OPPORTUNITIES TO BE
10 CREATED OR PRESERVED BY THE PROPOSED CAPITAL DEVELOPMENT
11 PROJECT.
12 (VIII) IF THE APPLICANT COMPLIED WITH ALL OTHER
13 CRITERIA ESTABLISHED BY THE DEPARTMENT.
14 (2) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
15 MET, THE AREA LOAN ORGANIZATIONS SHALL RECOMMEND THE
16 APPLICANT TO THE DEPARTMENT AND FORWARD THE APPLICATION WITH
17 ALL SUPPORTING DOCUMENTATION TO THE DEPARTMENT FOR ITS REVIEW
18 AND APPROVAL.
19 (C) DEPARTMENT REVIEW.--
20 (1) WITHIN 30 DAYS OF RECEIVING A RECOMMENDATION AND
21 APPLICATION, THE DEPARTMENT SHALL REVIEW THE APPLICATION. IF
22 THE DEPARTMENT IS SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
23 MET, THE DEPARTMENT MAY APPROVE THE LOAN REQUEST IN
24 ACCORDANCE WITH THE FOLLOWING:
25 (I) A LOAN FOR LAND, BUILDINGS AND MACHINERY AND
26 EQUIPMENT MAY NOT EXCEED $200,000 OR 50% OF THE TOTAL
27 CAPITAL DEVELOPMENT PROJECT COSTS, WHICHEVER IS LESS.
28 (II) A LOAN FOR WORKING CAPITAL MAY NOT EXCEED
29 $100,000 OR 50% OF THE TOTAL CAPITAL DEVELOPMENT PROJECT
30 COSTS, WHICHEVER IS LESS.
20030S0010B1026 - 36 -
1 (III) EXCEPT FOR LOANS TO AGRICULTURE PRODUCERS, A
2 LOAN MUST CREATE OR PRESERVE ONE JOB FOR EVERY $25,000
3 LOANED.
4 (2) THE DEPARTMENT SHALL NOTIFY THE AREA LOAN
5 ORGANIZATION AND APPLICANT OF ITS DECISION.
6 (D) APPROVALS.--FOR APPLICATIONS WHICH ARE APPROVED, THE
7 DEPARTMENT SHALL DRAW AN ADVANCE EQUAL TO THE PRINCIPAL AMOUNT
8 OF THE LOAN FROM THE FUND. THE ADVANCE SHALL BE FORWARDED TO THE
9 AREA LOAN ORGANIZATION AND, UPON RECEIPT BY THE AREA LOAN
10 ORGANIZATION, SHALL BECOME AN OBLIGATION OF THE AREA LOAN
11 ORGANIZATION. PRIOR TO PROVIDING LOAN FUNDS TO THE APPLICANT,
12 THE AREA LOAN ORGANIZATION SHALL REQUIRE THE APPLICANT TO
13 EXECUTE A NOTE AND TO ENTER INTO A LOAN AGREEMENT. IN ADDITION
14 TO THE REQUIREMENTS OF SUBSECTION (E), THE LOAN AGREEMENT SHALL
15 INCLUDE A PROVISION REQUIRING THE RECIPIENT TO USE THE LOAN
16 PROCEEDS TO PAY THE COSTS OF THE CAPITAL DEVELOPMENT PROJECT.
17 THE DEPARTMENT MAY REQUIRE THE AREA LOAN ORGANIZATION TO IMPOSE
18 OTHER TERMS AND CONDITIONS ON THE RECIPIENT IF THE DEPARTMENT
19 DETERMINES THAT THEY ARE IN THE BEST INTERESTS OF THIS
20 COMMONWEALTH, INCLUDING A PROVISION REQUIRING COLLATERAL FOR ANY
21 PENALTY IMPOSED UNDER SUBSECTION (G).
22 (E) LOAN TERMS.--A LOAN AGREEMENT ENTERED INTO IN ACCORDANCE
23 WITH SUBSECTION (C) SHALL DO ALL OF THE FOLLOWING:
24 (1) STATE THE COLLATERAL SECURING THE LOAN. ALL LOANS
25 SHALL BE SECURED BY LIEN POSITIONS ON COLLATERAL AT THE
26 HIGHEST LEVEL OF PRIORITY AS MAY BE DETERMINED BY THE AREA
27 LOAN ORGANIZATION WITH THE APPROVAL OF THE DEPARTMENT. THE
28 COLLATERAL MAY INCLUDE NONRESIDENTIAL REAL ESTATE PURCHASED
29 AS PART OF THE CAPITAL DEVELOPMENT PROJECT.
30 (2) STATE THE REPAYMENT PERIOD IN ACCORDANCE WITH THE
20030S0010B1026 - 37 -
1 FOLLOWING:
2 (I) A LOAN FOR REAL PROPERTY SHALL HAVE A REPAYMENT
3 PERIOD OF UP TO 15 YEARS.
4 (II) A LOAN FOR MACHINERY AND EQUIPMENT SHALL HAVE A
5 REPAYMENT PERIOD OF UP TO TEN YEARS.
6 (III) A LOAN FOR WORKING CAPITAL SHALL HAVE A
7 REPAYMENT PERIOD OF UP TO THREE YEARS.
8 (IV) IF, IN A CAPITAL DEVELOPMENT PROJECT, THERE ARE
9 TWO OR MORE USES PLANNED, THE LOAN TERMS MAY BE BLENDED.
10 (3) STATE THE INTEREST RATE IN ACCORDANCE WITH THE
11 FOLLOWING:
12 (I) EXCEPT A PROVIDED IN SUBPARAGRAPH (II), LOANS
13 SHALL BE MADE AT AN INTEREST RATE NOT TO EXCEED 5% FOR
14 THE TERM OF THE LOAN.
15 (II) A LOAN TO A SMALL BUSINESS WHICH IS AN
16 AGRICULTURAL PRODUCER SHALL BE MADE AT AN INTEREST RATE
17 OF NOT LESS THAN 2% FOR THE TERM OF THE LOAN IF ALL OF
18 THE FOLLOWING APPLY:
19 (A) A DECLARATION UNDER 35 PA.C.S. § 7301(C)
20 (RELATING TO GENERAL AUTHORITY OF GOVERNOR) IS IN
21 EFFECT FOR AT LEAST TEN DAYS PRIOR TO THE DATE OF
22 APPLICATION.
23 (B) THE APPLICATION IS MADE WITHIN NINE MONTHS
24 OF TERMINATION OF THE DECLARATION.
25 (C) THE AGRICULTURAL PRODUCER IS IN THE AREA
26 WHICH HAS BEEN DECLARED TO BE A NATURAL DISASTER
27 AREA.
28 (F) LOAN ADMINISTRATION.--A LOAN MADE UNDER THIS SECTION
29 SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICIES
30 AND PROCEDURES BY THE AREA LOAN ORGANIZATION WHICH MADE THE
20030S0010B1026 - 38 -
1 LOAN. EACH AREA LOAN ORGANIZATION SHALL SUBMIT AN ANNUAL REPORT
2 ON THE FORM REQUIRED BY THE DEPARTMENT AND WHICH INCLUDES OR
3 DEMONSTRATES ALL OF THE FOLLOWING:
4 (1) EACH OUTSTANDING LOAN.
5 (2) THE DATE APPROVED.
6 (3) THE ORIGINAL PRINCIPAL AMOUNT.
7 (4) THE CURRENT PRINCIPAL BALANCE.
8 (5) THE INTEREST RATE.
9 (6) THE PURPOSE FOR WHICH THE LOAN WAS MADE.
10 (7) AN ENUMERATION OF ANY PROBLEMS OR ISSUES WHICH HAVE
11 ARISEN WITH REGARD TO EACH LOAN.
12 (8) A STATEMENT REGARDING THE PROGRESS OF THE SMALL
13 BUSINESS IN CREATING OR PRESERVING ITS REQUISITE NUMBER OF
14 EMPLOYMENT OPPORTUNITIES.
15 (9) ANY OTHER INFORMATION OR DOCUMENTATION REQUIRED BY
16 THE DEPARTMENT.
17 (G) PENALTY.--
18 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
19 SHALL IMPOSE A PENALTY UPON A RECIPIENT IF THE RECIPIENT
20 FAILS TO CREATE OR PRESERVE THE NUMBER OF EMPLOYMENT
21 OPPORTUNITIES SPECIFIED IN ITS APPROVED APPLICATION.
22 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
23 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
24 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
25 RECIPIENT.
26 (3) THE AMOUNT OF THE PENALTY IMPOSED UNDER PARAGRAPH
27 (1) SHALL BE EQUAL TO AN INCREASE IN THE INTEREST RATE TO 2%
28 GREATER THAN THE CURRENT PRIME INTEREST RATE FOR THE
29 REMAINDER OF THE LOAN.
30 (H) DEFAULTS.--THE DEPARTMENT MAY BY FORECLOSURE TAKE TITLE
20030S0010B1026 - 39 -
1 TO A CAPITAL DEVELOPMENT PROJECT WHICH IT FINANCED IF
2 ACQUISITION IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS
3 SECTION. THE DEPARTMENT SHALL PAY ALL COSTS ARISING OUT OF THE
4 FORECLOSURE AND ACQUISITION FROM MONEYS HELD IN THE FUND. THE
5 DEPARTMENT MAY, IN ORDER TO MINIMIZE FINANCIAL LOSSES AND
6 SUSTAIN EMPLOYMENT, LEASE THE CAPITAL DEVELOPMENT PROJECT. THE
7 DEPARTMENT MAY WITHDRAW MONEYS FROM THE FUND TO PURCHASE FIRST
8 MORTGAGES AND TO MAKE PAYMENTS ON FIRST MORTGAGES ON ANY CAPITAL
9 DEVELOPMENT PROJECT WHICH IT FINANCED WHERE PURCHASE OR PAYMENT
10 IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS SECTION. THE
11 DEPARTMENT MAY SELL, TRANSFER, CONVEY AND ASSIGN THE FIRST
12 MORTGAGES AND SHALL DEPOSIT ANY MONEYS DERIVED FROM THE SALE OF
13 ANY FIRST MORTGAGES IN THE FUND.
14 § 2307. EDA LOANS.
15 (A) APPLICATION AND ADMINISTRATION PROCEDURES.--THE
16 DEPARTMENT SHALL ESTABLISH APPLICATION AND ADMINISTRATION
17 PROCEDURES TO BE USED FOR EDA LOANS. THE PROCEDURES SHALL BE
18 ESTABLISHED BY GUIDELINES AND SHALL CONFORM IN ALL RESPECTS TO
19 THOSE PROCEDURES REQUIRED OR ESTABLISHED BY THE ECONOMIC
20 DEVELOPMENT ADMINISTRATION FOR USE OF FEDERAL FUNDS UNDER THE
21 PUBLIC WORKS AND ECONOMIC DEVELOPMENT ACT OF 1965 (PUBLIC LAW
22 89-136, 42 U.S.C. § 3121 ET SEQ.).
23 (B) ELIGIBILITY FOR EDA LOANS.--THE DEPARTMENT SHALL
24 ESTABLISH ELIGIBILITY REQUIREMENTS TO BE USED FOR EDA LOANS. THE
25 REQUIREMENTS SHALL BE ESTABLISHED BY GUIDELINES AND SHALL
26 CONFORM IN ALL RESPECTS TO THOSE PROCEDURES REQUIRED OR
27 ESTABLISHED BY THE ECONOMIC DEVELOPMENT ADMINISTRATION FOR USE
28 OF FEDERAL FUNDS UNDER THE PUBLIC WORKS AND ECONOMIC DEVELOPMENT
29 ACT OF 1965.
30 § 2308. LOANS IN DISTRESSED COMMUNITIES.
20030S0010B1026 - 40 -
1 (A) APPLICATION.--A SMALL BUSINESS LOCATED IN A DISTRESSED
2 COMMUNITY MAY SUBMIT AN APPLICATION AND ANY APPLICABLE
3 APPLICATION FEE TO A COMMUNITY DEVELOPMENT INSTITUTION
4 REQUESTING A LOAN FOR CERTAIN COSTS OF A CAPITAL DEVELOPMENT
5 PROJECT. THE APPLICATION SHALL BE ON THE FORM REQUIRED BY THE
6 DEPARTMENT AND SHALL INCLUDE OR DEMONSTRATE ALL OF THE
7 FOLLOWING:
8 (1) THE NAME AND ADDRESS OF THE APPLICANT.
9 (2) A STATEMENT THAT THE SMALL BUSINESS IS ENGAGED IN
10 BUSINESS-TO-PUBLIC SERVICE OR IN THE MERCANTILE, COMMERCIAL
11 OR POINT-OF-SALE RETAIL BUSINESS SECTORS.
12 (3) A STATEMENT OF THE AMOUNT OF LOAN ASSISTANCE SOUGHT.
13 (4) A STATEMENT OF THE CAPITAL DEVELOPMENT PROJECT,
14 INCLUDING A DETAILED STATEMENT OF THE COST OF THE PROJECT.
15 (5) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
16 SOURCE FOR THE COST OF THE CAPITAL DEVELOPMENT PROJECT IN
17 EXCESS OF THE AMOUNT REQUESTED.
18 (6) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
19 (B) COMMUNITY DEVELOPMENT INSTITUTION REVIEW.--
20 (1) UPON RECEIPT OF A COMPLETED APPLICATION, A COMMUNITY
21 DEVELOPMENT INSTITUTION SHALL INVESTIGATE AND DETERMINE ALL
22 OF THE FOLLOWING:
23 (I) IF THE APPLICANT IS A SMALL BUSINESS WHICH IS
24 ENGAGED BUSINESS-TO-PUBLIC SERVICE OR IN THE MERCANTILE,
25 COMMERCIAL OR POINT-OF-SALE RETAIL BUSINESS SECTORS IN
26 ACCORDANCE WITH CONDITIONS OR CRITERIA ESTABLISHED BY THE
27 DEPARTMENT.
28 (II) IF THE PROJECT IS A CAPITAL DEVELOPMENT
29 PROJECT.
30 (III) IF THE APPLICANT HAS DEMONSTRATED A DIRECT
20030S0010B1026 - 41 -
1 IMPACT ON THE COMMUNITY IN WHICH THE CAPITAL DEVELOPMENT
2 PROJECT IS OR WILL BE LOCATED, ON RESIDENTS OF THAT
3 COMMUNITY OR ON THE LOCAL AND/OR REGIONAL ECONOMY. THE
4 DEPARTMENT SHALL ESTABLISH CRITERIA THAT WILL ASSIST IN
5 MAKING THIS DEMONSTRATION.
6 (IV) THE ABILITY OF THE APPLICANT TO MEET AND
7 SATISFY THE DEBT SERVICE AS IT BECOMES DUE AND PAYABLE.
8 IN REVIEWING REPAYMENT OBLIGATIONS, LOANS SHALL NOT BE
9 APPROVED ON THE BASIS OF DIRECT FINANCIAL RETURN ON
10 INVESTMENT AND SHALL NOT BE HELD TO THE LOAN LOSS
11 STANDARDS OF PRIVATE COMMERCIAL LENDERS. LOANS SHALL
12 REVIEW FOR THE PURPOSE OF ESTABLISHING A STRONG ECONOMIC
13 BASE AND PROMOTING ENTREPRENEURIAL ACTIVITY WITHIN THE
14 DISTRESSED COMMUNITY.
15 (V) THE EXISTENCE AND SUFFICIENCY OF COLLATERAL FOR
16 THE LOAN. COLLATERAL MAY INCLUDE LIEN POSITIONS ON
17 NONRESIDENTIAL REAL PROPERTY AND ON PERSONAL PROPERTY.
18 (VI) RELEVANT CRIMINAL AND CREDIT HISTORY AND
19 RATINGS OF THE APPLICANT AS DETERMINED FROM OUTSIDE
20 CREDIT REPORTING SERVICES AND OTHER SOURCES.
21 (VII) NUMBER OF EMPLOYMENT OPPORTUNITIES TO BE
22 CREATED OR PRESERVED BY THE PROPOSED CAPITAL DEVELOPMENT
23 PROJECT.
24 (VIII) IF THE APPLICANT COMPLIED WITH ALL OTHER
25 CRITERIA ESTABLISHED BY THE DEPARTMENT.
26 (2) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
27 MET, THE COMMUNITY DEVELOPMENT INSTITUTION SHALL RECOMMEND
28 THE APPLICANT TO THE DEPARTMENT AND FORWARD THE APPLICATION
29 WITH ALL SUPPORTING DOCUMENTATION TO THE DEPARTMENT FOR ITS
30 REVIEW AND APPROVAL.
20030S0010B1026 - 42 -
1 (C) DEPARTMENT REVIEW.--
2 (1) WITHIN 30 DAYS OF RECEIVING A RECOMMENDATION AND
3 APPLICATION, THE DEPARTMENT SHALL REVIEW THE APPLICATION. IF
4 THE DEPARTMENT IS SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
5 MET, THE DEPARTMENT MAY APPROVE THE LOAN REQUEST IN
6 ACCORDANCE WITH THE FOLLOWING:
7 (I) A LOAN FOR LAND, BUILDINGS AND MACHINERY AND
8 EQUIPMENT MAY NOT EXCEED $200,000 OR 50% OF THE TOTAL
9 CAPITAL DEVELOPMENT PROJECT COSTS, WHICHEVER IS LESS.
10 (II) A LOAN FOR WORKING CAPITAL MAY NOT EXCEED
11 $100,000 OR 50% OF THE TOTAL CAPITAL DEVELOPMENT PROJECT
12 COSTS, WHICHEVER IS LESS.
13 (III) EXCEPT FOR LOANS TO AGRICULTURE PRODUCERS, A
14 LOAN WOULD CREATE OR PRESERVE ONE JOB FOR EVERY $25,000
15 LOANED.
16 (2) THE DEPARTMENT SHALL NOTIFY THE COMMUNITY
17 DEVELOPMENT INSTITUTION AND APPLICANT OF ITS DECISION.
18 (D) APPROVALS.--FOR APPLICATIONS WHICH ARE APPROVED, THE
19 DEPARTMENT SHALL DRAW AN ADVANCE EQUAL TO THE PRINCIPAL AMOUNT
20 OF THE LOAN FROM THE FUND. THE ADVANCE SHALL BE FORWARDED TO THE
21 COMMUNITY DEVELOPMENT INSTITUTION AND, UPON RECEIPT BY THE
22 COMMUNITY DEVELOPMENT INSTITUTION, BECOME AN OBLIGATION OF THE
23 COMMUNITY DEVELOPMENT INSTITUTION. PRIOR TO PROVIDING LOAN FUNDS
24 TO THE APPLICANT, THE COMMUNITY DEVELOPMENT INSTITUTION SHALL
25 REQUIRE THE APPLICANT TO EXECUTE A NOTE AND TO ENTER INTO A LOAN
26 AGREEMENT. IN ADDITION TO THE REQUIREMENTS OF SUBSECTION (E),
27 THE LOAN AGREEMENT SHALL INCLUDE A PROVISION REQUIRING THE
28 RECIPIENT TO USE THE LOAN PROCEEDS TO PAY THE COSTS OF THE
29 CAPITAL DEVELOPMENT PROJECT. THE DEPARTMENT MAY REQUIRE THE
30 COMMUNITY DEVELOPMENT INSTITUTION TO IMPOSE OTHER TERMS AND
20030S0010B1026 - 43 -
1 CONDITIONS ON THE RECIPIENT IF THE DEPARTMENT DETERMINES THEY
2 ARE IN THE BEST INTERESTS OF THIS COMMONWEALTH, INCLUDING A
3 PROVISION REQUIRING COLLATERAL FOR ANY PENALTY IMPOSED UNDER
4 SUBSECTION (G).
5 (E) LOAN TERMS.--A LOAN AGREEMENT ENTERED INTO IN ACCORDANCE
6 WITH SUBSECTION (D) SHALL DO ALL OF THE FOLLOWING:
7 (1) STATE ANY COLLATERAL SECURING THE LOAN. THE
8 DEPARTMENT MAY USE ITS BEST JUDGMENT TO IDENTIFY AND SECURE
9 COLLATERAL.
10 (2) STATE THE REPAYMENT PERIOD WHICH MAY BE FLEXIBLE.
11 (3) STATE THE INTEREST RATE WHICH MAY NOT BE LESS THAN
12 2% NOR MORE THAN 5% FOR THE TERM OF THE LOAN.
13 (4) STATE THAT THE RECIPIENT AGREES TO MAINTAIN, AT A
14 MINIMUM, THE NUMBER OF JOBS IN EXISTENCE AS OF THE DATE OF
15 LOAN APPLICATION.
16 (F) LOAN ADMINISTRATION.--A LOAN MADE UNDER THIS SECTION
17 SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICIES
18 AND PROCEDURES BY THE COMMUNITY DEVELOPMENT INSTITUTION WHICH
19 MADE THE LOAN. EACH COMMUNITY DEVELOPMENT INSTITUTION SHALL
20 SUBMIT AN ANNUAL REPORT ON THE FORM REQUIRED BY THE DEPARTMENT
21 WHICH INCLUDES OR DEMONSTRATES ALL OF THE FOLLOWING:
22 (1) EACH OUTSTANDING LOAN.
23 (2) THE DATE APPROVED.
24 (3) THE ORIGINAL PRINCIPAL AMOUNT.
25 (4) THE CURRENT PRINCIPAL BALANCE.
26 (5) THE INTEREST RATE.
27 (6) THE PURPOSE FOR WHICH THE LOAN WAS MADE.
28 (7) AN ENUMERATION OF ANY PROBLEMS OR ISSUES WHICH HAVE
29 ARISEN WITH REGARD TO EACH LOAN.
30 (8) A STATEMENT REGARDING THE PROGRESS OF THE SMALL
20030S0010B1026 - 44 -
1 BUSINESS IN CREATING OR PRESERVING ITS REQUISITE NUMBER OF
2 EMPLOYMENT OPPORTUNITIES.
3 (9) ANY OTHER INFORMATION OR DOCUMENTATION REQUIRED BY
4 THE DEPARTMENT.
5 (G) PENALTY.--
6 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
7 SHALL IMPOSE A PENALTY UPON A RECIPIENT IF THE RECIPIENT
8 FAILS TO CREATE OR PRESERVE THE NUMBER OF EMPLOYMENT
9 OPPORTUNITIES SPECIFIED IN ITS APPROVED APPLICATION.
10 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
11 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
12 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
13 RECIPIENT.
14 (3) THE AMOUNT OF ANY PENALTY IMPOSED UNDER PARAGRAPH
15 (1) SHALL BE EQUAL TO AN INCREASE IN THE INTEREST RATE TO 2%
16 GREATER THAN THE CURRENT PRIME INTEREST RATE FOR THE
17 REMAINDER OF THE LOAN.
18 (H) DEFAULTS.--THE DEPARTMENT MAY TAKE TITLE BY FORECLOSURE
19 TO A CAPITAL DEVELOPMENT PROJECT WHICH IT FINANCED WHERE
20 ACQUISITION IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS
21 SECTION. THE DEPARTMENT SHALL PAY ALL COSTS ARISING OUT OF THE
22 FORECLOSURE AND ACQUISITION FROM MONEY HELD IN THE FUND. THE
23 DEPARTMENT MAY, IN ORDER TO MINIMIZE FINANCIAL LOSSES AND
24 SUSTAIN EMPLOYMENT, LEASE THE CAPITAL DEVELOPMENT PROJECT. THE
25 DEPARTMENT MAY WITHDRAW MONEY FROM THE FUND TO PURCHASE FIRST
26 MORTGAGES AND TO MAKE PAYMENTS ON FIRST MORTGAGES ON ANY CAPITAL
27 DEVELOPMENT PROJECT WHICH IT FINANCED IF PURCHASE OR PAYMENT IS
28 NECESSARY TO PROTECT A LOAN MADE UNDER THIS SECTION. THE
29 DEPARTMENT MAY SELL, TRANSFER, CONVEY AND ASSIGN THE FIRST
30 MORTGAGES AND SHALL DEPOSIT IN THE FUND MONEY DERIVED FROM THE
20030S0010B1026 - 45 -
1 SALE OF ANY FIRST MORTGAGES.
2 § 2309. POLLUTION PREVENTION ASSISTANCE LOANS.
3 (A) APPLICATION.--A SMALL BUSINESS MAY SUBMIT AN APPLICATION
4 AND ANY APPLICATION FEE TO A POLLUTION PREVENTION ASSISTANCE
5 AGENCY REQUESTING A LOAN FOR A POLLUTION PREVENTION
6 INFRASTRUCTURE. THE APPLICATION SHALL BE ON THE FORM REQUIRED BY
7 THE DEPARTMENT AND SHALL INCLUDE OR DEMONSTRATE ALL OF THE
8 FOLLOWING:
9 (1) THE NAME AND ADDRESS OF THE APPLICANT.
10 (2) A STATEMENT OF THE AMOUNT OF LOAN ASSISTANCE SOUGHT.
11 (3) A STATEMENT OF THE POLLUTION PREVENTION
12 INFRASTRUCTURE, INCLUDING A DETAILED STATEMENT OF THE COST OF
13 THE INFRASTRUCTURE.
14 (4) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
15 SOURCE FOR THE COST OF THE POLLUTION PREVENTION
16 INFRASTRUCTURE IN EXCESS OF THE AMOUNT REQUESTED.
17 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
18 (B) POLLUTION PREVENTION ASSISTANCE AGENCY REVIEW.--
19 (1) UPON RECEIPT OF A COMPLETED APPLICATION, A POLLUTION
20 PREVENTION ASSISTANCE AGENCY SHALL INVESTIGATE AND DETERMINE
21 ALL OF THE FOLLOWING:
22 (I) IF THE APPLICANT IS A SMALL BUSINESS.
23 (II) IF THE PROJECT IS FOR POLLUTION PREVENTION
24 INFRASTRUCTURE.
25 (III) IF THE POLLUTION PREVENTION INFRASTRUCTURE
26 DEMONSTRATES A SUBSTANTIAL LIKELIHOOD OF PREVENTING OR
27 REDUCING POLLUTION.
28 (IV) THE ABILITY OF THE APPLICANT TO MEET AND
29 SATISFY THE DEBT SERVICE AS IT BECOMES DUE AND PAYABLE.
30 IN REVIEWING REPAYMENT OBLIGATIONS, LOANS SHALL NOT BE
20030S0010B1026 - 46 -
1 APPROVED ON THE BASIS OF DIRECT FINANCIAL RETURN ON
2 INVESTMENT AND SHALL NOT BE HELD TO THE LOAN LOSS
3 STANDARDS OF PRIVATE COMMERCIAL LENDERS. LOANS SHALL BE
4 REVIEWED FOR THE PURPOSE OF REDUCING POLLUTION THROUGH
5 SOURCE REDUCTION TECHNOLOGIES OR PROCESSES.
6 (V) THE EXISTENCE AND SUFFICIENCY OF COLLATERAL FOR
7 THE LOAN. COLLATERAL MAY INCLUDE LIEN POSITIONS ON
8 NONRESIDENTIAL REAL PROPERTY AND ON PERSONAL PROPERTY.
9 (VI) RELEVANT CRIMINAL AND CREDIT HISTORY AND
10 RATINGS OF THE APPLICANT AS DETERMINED FROM OUTSIDE
11 CREDIT REPORTING SERVICES AND OTHER SOURCES.
12 (VII) IF THE APPLICANT COMPLIED WITH ALL OTHER
13 CRITERIA ESTABLISHED BY THE DEPARTMENT.
14 (2) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
15 MET, THE POLLUTION PREVENTION ASSISTANCE AGENCY SHALL
16 RECOMMEND THE APPLICANT TO THE DEPARTMENT AND FORWARD THE
17 APPLICATION WITH ALL SUPPORTING DOCUMENTATION TO THE
18 DEPARTMENT FOR ITS REVIEW AND APPROVAL.
19 (C) DEPARTMENT REVIEW.--
20 (1) WITHIN 30 DAYS OF RECEIVING A RECOMMENDATION AND
21 APPLICATION, THE DEPARTMENT SHALL REVIEW THE APPLICATION. THE
22 DEPARTMENT OF ENVIRONMENTAL PROTECTION SHALL ASSIST THE
23 DEPARTMENT IN REVIEWING THE APPLICATIONS AND PROVIDE
24 TECHNICAL ASSISTANCE. IF THE DEPARTMENT IS SATISFIED THAT ALL
25 REQUIREMENTS HAVE BEEN MET, THE DEPARTMENT MAY APPROVE THE
26 LOAN REQUEST. A LOAN APPROVED UNDER THIS SUBSECTION MAY NOT
27 EXCEED THE LESSER OF:
28 (I) $100,000; OR
29 (II) 75% OF INFRASTRUCTURE COSTS.
30 (2) THE DEPARTMENT SHALL NOTIFY THE POLLUTION PREVENTION
20030S0010B1026 - 47 -
1 ASSISTANCE AGENCY AND APPLICANT OF ITS DECISION.
2 (D) APPROVALS.--FOR APPLICATIONS WHICH ARE APPROVED, THE
3 DEPARTMENT SHALL DRAW AN ADVANCE EQUAL TO THE PRINCIPAL AMOUNT
4 OF THE LOAN FROM THE POLLUTION PREVENTION ASSISTANCE ACCOUNT.
5 THE ADVANCE SHALL BE FORWARDED TO THE POLLUTION PREVENTION
6 ASSISTANCE AGENCY AND, UPON RECEIPT BY THE POLLUTION PREVENTION
7 ASSISTANCE AGENCY, BECOME AN OBLIGATION OF THE POLLUTION
8 PREVENTION ASSISTANCE AGENCY. PRIOR TO PROVIDING LOAN FUNDS TO
9 THE APPLICANT, THE POLLUTION PREVENTION ASSISTANCE AGENCY SHALL
10 REQUIRE THE APPLICANT TO EXECUTE A NOTE AND TO ENTER INTO A LOAN
11 AGREEMENT. IN ADDITION TO THE REQUIREMENTS OF SUBSECTION (E),
12 THE LOAN AGREEMENT SHALL INCLUDE A PROVISION REQUIRING THE
13 RECIPIENT TO USE THE LOAN PROCEEDS TO PAY THE COSTS OF THE
14 POLLUTION PREVENTION INFRASTRUCTURE. THE DEPARTMENT MAY REQUIRE
15 THE POLLUTION PREVENTION ASSISTANCE AGENCY TO IMPOSE OTHER TERMS
16 AND CONDITIONS ON THE RECIPIENT IF THE DEPARTMENT DETERMINES
17 THEY ARE IN THE BEST INTERESTS OF THIS COMMONWEALTH, INCLUDING A
18 PROVISION REQUIRING COLLATERAL FOR ANY PENALTY IMPOSED UNDER
19 SUBSECTION (G).
20 (E) LOAN TERMS.--A LOAN AGREEMENT ENTERED INTO IN ACCORDANCE
21 WITH SUBSECTION (D) SHALL DO ALL OF THE FOLLOWING:
22 (1) STATE THE COLLATERAL SECURING THE LOAN. ALL LOANS
23 SHALL BE SECURED BY LIEN POSITIONS ON COLLATERAL AT THE
24 HIGHEST LEVEL OF PRIORITY AS MAY BE DETERMINED BY THE
25 POLLUTION PREVENTION ASSISTANCE AGENCY WITH THE APPROVAL OF
26 THE DEPARTMENT. THE COLLATERAL MAY INCLUDE NONRESIDENTIAL
27 REAL ESTATE PURCHASED AS PART OF THE POLLUTION PREVENTION
28 INFRASTRUCTURE.
29 (2) STATE THE REPAYMENT PERIOD WHICH MAY NOT EXCEED 10
30 YEARS.
20030S0010B1026 - 48 -
1 (3) STATE THAT THE INTEREST RATE IS 2%.
2 (4) STATE THAT ANY LOAN FEE IS NOT TO EXCEED 5% OF THE
3 LOAN AMOUNT.
4 (F) LOAN ADMINISTRATION.--A LOAN MADE UNDER THIS SECTION
5 SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICIES
6 AND PROCEDURES BY THE POLLUTION PREVENTION ASSISTANCE AGENCY
7 WHICH MADE THE LOAN. EACH POLLUTION PREVENTION ASSISTANCE AGENCY
8 SHALL SUBMIT AN ANNUAL REPORT ON THE FORM REQUIRED BY THE
9 DEPARTMENT WHICH INCLUDES OR DEMONSTRATES ALL OF THE FOLLOWING:
10 (1) EACH OUTSTANDING LOAN.
11 (2) THE DATE APPROVED.
12 (3) THE ORIGINAL PRINCIPAL AMOUNT.
13 (4) THE CURRENT PRINCIPAL BALANCE.
14 (5) THE INTEREST RATE.
15 (6) THE PURPOSE FOR WHICH THE LOAN WAS MADE.
16 (7) AN ENUMERATION OF ANY PROBLEMS OR ISSUES WHICH HAVE
17 ARISEN WITH REGARD TO EACH LOAN.
18 (8) ANY OTHER INFORMATION OR DOCUMENTATION REQUIRED BY
19 THE DEPARTMENT.
20 (G) PENALTY.--
21 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
22 SHALL IMPOSE A PENALTY UPON A RECIPIENT IF THE RECIPIENT
23 FAILS TO PREVENT OR REDUCE POLLUTION AS SPECIFIED IN ITS
24 APPROVED APPLICATION.
25 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
26 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
27 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
28 RECIPIENT.
29 (3) THE AMOUNT OF ANY PENALTY IMPOSED UNDER PARAGRAPH
30 (1) SHALL BE EQUAL TO AN INCREASE IN THE INTEREST RATE TO 2%
20030S0010B1026 - 49 -
1 GREATER THAN THE CURRENT PRIME INTEREST RATE FOR THE
2 REMAINDER OF THE LOAN.
3 (H) DEFAULTS.--THE DEPARTMENT MAY TAKE TITLE BY FORECLOSURE
4 TO A POLLUTION PREVENTION INFRASTRUCTURE WHICH IT FINANCED IF
5 ACQUISITION IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS
6 SECTION. THE DEPARTMENT SHALL PAY ALL COSTS ARISING OUT OF THE
7 FORECLOSURE AND ACQUISITION FROM MONEY HELD IN THE POLLUTION
8 PREVENTION ASSISTANCE ACCOUNT. THE DEPARTMENT MAY, IN ORDER TO
9 MINIMIZE FINANCIAL LOSSES AND SUSTAIN EMPLOYMENT, LEASE THE
10 POLLUTION PREVENTION INFRASTRUCTURE. THE DEPARTMENT MAY WITHDRAW
11 MONEY FROM THE POLLUTION PREVENTION ASSISTANCE ACCOUNT TO
12 PURCHASE FIRST MORTGAGES AND TO MAKE PAYMENTS ON FIRST MORTGAGES
13 ON ANY POLLUTION PREVENTION INFRASTRUCTURE WHICH IT FINANCED IF
14 THE PURCHASE OR PAYMENT IS NECESSARY TO PROTECT A LOAN MADE
15 UNDER THIS SECTION. THE DEPARTMENT MAY SELL, TRANSFER, CONVEY
16 AND ASSIGN THE FIRST MORTGAGES AND SHALL DEPOSIT ANY MONEY
17 DERIVED FROM THE SALE OF ANY FIRST MORTGAGES IN THE POLLUTION
18 PREVENTION ASSISTANCE ACCOUNT.
19 § 2310. EXPORT FINANCING LOANS.
20 (A) APPLICATION.--A PERSON MAY SUBMIT AN APPLICATION AND ANY
21 APPLICABLE APPLICATION FEE TO THE DEPARTMENT OR ITS AREA LOAN
22 ORGANIZATION REQUESTING A LOAN FOR CERTAIN COSTS OF A CAPITAL
23 DEVELOPMENT PROJECT WHICH WILL BE USED IN EXPORT ACTIVITIES. THE
24 APPLICATION MUST BE ON THE FORM REQUIRED BY THE DEPARTMENT AND
25 MUST INCLUDE OR DEMONSTRATE ALL OF THE FOLLOWING:
26 (1) THE NAME AND ADDRESS OF THE APPLICANT.
27 (2) A STATEMENT OF THE AMOUNT OF LOAN ASSISTANCE SOUGHT.
28 (3) A STATEMENT OF THE CAPITAL DEVELOPMENT PROJECT,
29 INCLUDING A DETAILED STATEMENT OF THE COST OF THE PROJECT.
30 (4) A STATEMENT THAT THE CAPITAL DEVELOPMENT PROJECT IS
20030S0010B1026 - 50 -
1 BASED UPON AN EXPORT CONTRACT WHICH REQUIRES PAYMENT IN
2 UNITED STATES DOLLARS.
3 (5) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
4 SOURCE FOR ANY COST OF THE CAPITAL DEVELOPMENT PROJECT IN
5 EXCESS OF THE AMOUNT REQUESTED.
6 (6) A STATEMENT THAT THE LOAN, IF APPROVED, WOULD NOT
7 SUPPLANT FUNDING FROM PRIVATE SECTOR SOURCES ON COMMERCIALLY
8 REASONABLE TERMS.
9 (7) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
10 (B) REVIEW.--
11 (1) UPON RECEIPT OF A COMPETED APPLICATION, THE
12 DEPARTMENT OR, IF APPLICABLE, AN AREA LOAN ORGANIZATION SHALL
13 INVESTIGATE AND DETERMINE ALL OF THE FOLLOWING:
14 (I) IF THE APPLICANT IS AN EXPORT BUSINESS.
15 (II) IF THE PROJECT IS A CAPITAL DEVELOPMENT
16 PROJECT.
17 (III) IF THE CAPITAL DEVELOPMENT PROJECT
18 DEMONSTRATES A SUBSTANTIAL LIKELIHOOD OF CREATING OR
19 PRESERVING EMPLOYMENT ACTIVITIES IN THIS COMMONWEALTH.
20 (IV) THE ABILITY OF THE APPLICANT TO MEET AND
21 SATISFY THE DEBT SERVICE AS IT BECOMES DUE AND PAYABLE.
22 (V) THE EXISTENCE AND SUFFICIENCY OF COLLATERAL FOR
23 THE LOAN. COLLATERAL MAY INCLUDE LIEN POSITIONS ON
24 NONRESIDENTIAL REAL PROPERTY AND ON PERSONAL PROPERTY.
25 (VI) RELEVANT CRIMINAL AND CREDIT HISTORY AND
26 RATINGS OF THE APPLICANT AS DETERMINED FROM OUTSIDE
27 CREDIT REPORTING SERVICES AND OTHER SOURCES.
28 (VII) NUMBER OF EMPLOYMENT OPPORTUNITIES TO BE
29 CREATED OR PRESERVED BY THE PROPOSED CAPITAL DEVELOPMENT
30 PROJECT.
20030S0010B1026 - 51 -
1 (VIII) IF THE APPLICANT COMPLIED WITH ALL OTHER
2 CRITERIA ESTABLISHED BY THE DEPARTMENT.
3 (2) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
4 MET, THE DEPARTMENT MAY APPROVE THE APPLICATION IN ACCORDANCE
5 WITH SUBSECTION (C) OR THE AREA LOAN ORGANIZATION SHALL
6 RECOMMEND THE APPLICANT TO THE DEPARTMENT AND FORWARD THE
7 APPLICATION WITH ALL SUPPORTING DOCUMENTATION TO THE
8 DEPARTMENT FOR ITS REVIEW AND APPROVAL.
9 (C) DEPARTMENT REVIEW.--THE DEPARTMENT SHALL REVIEW AN
10 APPLICATION WITHIN 30 DAYS OF RECEIVING IT. IF THE DEPARTMENT IS
11 SATISFIED THAT ALL REQUIREMENTS HAVE BEEN MET, THE DEPARTMENT
12 MAY APPROVE THE LOAN REQUEST. A LOAN APPROVED UNDER THIS SECTION
13 MAY NOT EXCEED $350,000. THE DEPARTMENT SHALL NOTIFY THE
14 APPLICANT AND, IF APPLICABLE, THE AREA LOAN ORGANIZATION OF ITS
15 DECISION.
16 (D) APPROVALS.--
17 (1) FOR APPLICATIONS WHICH WERE SUBMITTED DIRECTLY TO
18 THE DEPARTMENT AND WHICH ARE APPROVED, THE DEPARTMENT SHALL
19 DRAW AN ADVANCE EQUAL TO THE PRINCIPAL AMOUNT OF THE LOAN
20 FROM THE EXPORT ACTIVITIES ASSISTANCE ACCOUNT. PRIOR TO
21 PROVIDING FUNDS TO THE APPLICANT, THE DEPARTMENT SHALL
22 REQUIRE THE APPLICANT TO EXECUTE A NOTE AND ENTER INTO A LOAN
23 AGREEMENT. IN ADDITION TO THE REQUIREMENTS OF SUBSECTION (E),
24 THE LOAN AGREEMENT SHALL INCLUDE A PROVISION REQUIRING THE
25 RECIPIENT TO USE THE LOAN PROCEEDS TO PAY THE COSTS OF THE
26 CAPITAL DEVELOPMENT PROJECT. THE DEPARTMENT MAY IMPOSE OTHER
27 TERMS AND CONDITIONS ON THE RECIPIENT IF THE DEPARTMENT
28 DETERMINES THEY ARE IN THE BEST INTERESTS OF THIS
29 COMMONWEALTH, INCLUDING ANY OF THE FOLLOWING:
30 (I) A PROVISION REQUIRING COLLATERAL FOR ANY PENALTY
20030S0010B1026 - 52 -
1 IMPOSED UNDER SUBSECTION (G).
2 (II) A PROVISION REQUIRING THE PERSON TO BE ELIGIBLE
3 FOR AN INSURANCE POLICY.
4 (III) A PROVISION REQUIRING THE LOAN TO BE
5 GUARANTEED BY THE WORKING CAPITAL GUARANTY PROGRAM
6 OFFERED BY THE EX-IM BANK.
7 (IV) A PROVISION REQUIRING AN EXPORT CREDIT SALES
8 CONTRACT INSURED BY AN INSURANCE POLICY.
9 (2) FOR APPLICATIONS WHICH WERE SUBMITTED TO THE
10 DEPARTMENT THROUGH AN AREA LOAN ORGANIZATION AND WHICH ARE
11 APPROVED, THE DEPARTMENT SHALL DRAW AN ADVANCE EQUAL TO THE
12 PRINCIPAL AMOUNT OF THE LOAN FROM THE EXPORT ACTIVITIES
13 ASSISTANCE ACCOUNT. THE ADVANCE SHALL BE FORWARDED TO THE
14 AREA LOAN ORGANIZATION AND, UPON RECEIPT BY THE AREA LOAN
15 ORGANIZATION, BECOME AN OBLIGATION OF THE AREA LOAN
16 ORGANIZATION. PRIOR TO PROVIDING LOAN FUNDS TO THE APPLICANT,
17 THE AREA LOAN ORGANIZATION SHALL REQUIRE THE APPLICANT TO
18 EXECUTE A NOTE AND ENTER INTO A LOAN AGREEMENT. IN ADDITION
19 TO THE REQUIREMENTS OF SUBSECTION (E), THE LOAN AGREEMENT
20 SHALL INCLUDE A PROVISION REQUIRING THE RECIPIENT TO USE THE
21 LOAN PROCEEDS TO PAY THE COSTS OF THE CAPITAL DEVELOPMENT
22 PROJECT. THE DEPARTMENT MAY REQUIRE THE AREA LOAN
23 ORGANIZATION TO IMPOSE OTHER TERMS AND CONDITIONS ON THE
24 RECIPIENT IF THE DEPARTMENT DETERMINES THEY ARE IN THE BEST
25 INTERESTS OF THIS COMMONWEALTH, INCLUDING ANY OF THE
26 FOLLOWING:
27 (I) A PROVISION REQUIRING COLLATERAL FOR ANY PENALTY
28 IMPOSED UNDER SUBSECTION (G).
29 (II) A PROVISION REQUIRING THE PERSON TO BE ELIGIBLE
30 FOR AN INSURANCE POLICY.
20030S0010B1026 - 53 -
1 (III) A PROVISION REQUIRING THE LOAN TO BE
2 GUARANTEED BY THE WORKING CAPITAL GUARANTY PROGRAM
3 OFFERED BY THE EX-IM BANK.
4 (IV) A PROVISION REQUIRING AN EXPORT CREDIT SALES
5 CONTRACT INSURED BY AN INSURANCE POLICY.
6 (E) LOAN TERMS.--A LOAN AGREEMENT ENTERED INTO IN ACCORDANCE
7 WITH SUBSECTION (D) SHALL DO ALL OF THE FOLLOWING:
8 (1) STATE THE COLLATERAL SECURING THE LOAN. ALL LOANS
9 SHALL BE SECURED BY LIEN POSITIONS ON COLLATERAL AT THE
10 HIGHEST LEVEL OF PRIORITY AS MAY BE DETERMINED BY THE AREA
11 LOAN ORGANIZATION WITH THE APPROVAL OF THE DEPARTMENT. THE
12 COLLATERAL MAY INCLUDE NONRESIDENTIAL REAL ESTATE PURCHASED
13 AS PART OF A CAPITAL DEVELOPMENT PROJECT.
14 (2) STATE THE REPAYMENT PERIOD AS DETERMINED BY THE
15 DEPARTMENT.
16 (3) STATE THE INTEREST RATE AS DETERMINED BY THE
17 DEPARTMENT.
18 (F) LOAN ADMINISTRATION.--A LOAN MADE UNDER THIS SECTION
19 SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICIES
20 AND PROCEDURES. IF A LOAN WAS MADE THROUGH AN AREA LOAN
21 ORGANIZATION, THE AREA LOAN ORGANIZATION SHALL SUBMIT AN ANNUAL
22 REPORT ON THE FORM REQUIRED BY THE DEPARTMENT WHICH INCLUDES OR
23 DEMONSTRATES ALL OF THE FOLLOWING:
24 (1) EACH OUTSTANDING LOAN.
25 (2) THE DATE APPROVED.
26 (3) THE ORIGINAL PRINCIPAL AMOUNT.
27 (4) THE CURRENT PRINCIPAL BALANCE.
28 (5) THE INTEREST RATE.
29 (6) THE PURPOSE FOR WHICH THE LOAN WAS MADE.
30 (7) AN ENUMERATION OF ANY PROBLEMS OR ISSUES WHICH HAVE
20030S0010B1026 - 54 -
1 ARISEN WITH REGARD TO EACH LOAN.
2 (8) A STATEMENT REGARDING THE PROGRESS OF THE PERSON
3 CREATING OR PRESERVING ITS REQUISITE NUMBER OF EMPLOYMENT
4 OPPORTUNITIES.
5 (9) ANY OTHER INFORMATION OR DOCUMENTATION REQUIRED BY
6 THE DEPARTMENT.
7 (G) PENALTY.--
8 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT
9 SHALL IMPOSE A PENALTY UPON A RECIPIENT IF THE RECIPIENT
10 FAILS TO CREATE OR PRESERVE THE NUMBER OF EMPLOYMENT
11 OPPORTUNITIES SPECIFIED IN ITS APPROVED APPLICATION.
12 (2) THE DEPARTMENT MAY WAIVE THE PENALTY REQUIRED BY
13 PARAGRAPH (1) IF THE DEPARTMENT DETERMINES THAT THE FAILURE
14 WAS DUE TO CIRCUMSTANCES OUTSIDE THE CONTROL OF THE
15 RECIPIENT.
16 (3) THE AMOUNT OF THE PENALTY IMPOSED UNDER PARAGRAPH
17 (1) SHALL BE EQUAL TO AN INCREASE IN THE INTEREST RATE TO 2%
18 GREATER THAN THE CURRENT PRIME INTEREST RATE FOR THE
19 REMAINDER OF THE LOAN.
20 (H) DEFAULTS.--THE DEPARTMENT MAY, BY FORECLOSURE, TAKE
21 TITLE TO A CAPITAL DEVELOPMENT PROJECT WHICH IT FINANCED IF
22 ACQUISITION IS NECESSARY TO PROTECT A LOAN MADE UNDER THIS
23 SECTION. THE DEPARTMENT SHALL PAY ALL COSTS ARISING OUT OF THE
24 FORECLOSURE AND ACQUISITION FROM MONEY HELD IN THE EXPORT
25 ACTIVITIES ASSISTANCE ACCOUNT. THE DEPARTMENT MAY, IN ORDER TO
26 MINIMIZE FINANCIAL LOSSES AND SUSTAIN EMPLOYMENT, LEASE THE
27 CAPITAL DEVELOPMENT PROJECT. THE DEPARTMENT MAY WITHDRAW MONEY
28 FROM THE EXPORT ACTIVITIES ASSISTANCE ACCOUNT TO PURCHASE FIRST
29 MORTGAGES AND TO MAKE PAYMENTS ON FIRST MORTGAGES ON ANY CAPITAL
30 DEVELOPMENT PROJECT WHICH IT FINANCED IF PURCHASE OR PAYMENT IS
20030S0010B1026 - 55 -
1 NECESSARY TO PROTECT A LOAN MADE UNDER THIS SECTION. THE
2 DEPARTMENT MAY SELL, TRANSFER, CONVEY AND ASSIGN THE FIRST
3 MORTGAGES AND SHALL DEPOSIT ANY MONEY DERIVED FROM THE SALE OF
4 ANY FIRST MORTGAGES IN THE EXPORT ACTIVITIES ASSISTANCE ACCOUNT.
5 § 2311. REPORTING AND INSPECTION.
6 (A) INSPECTION.--AN APPLICANT OR A RECIPIENT SHALL, UPON
7 REQUEST, PERMIT AUTHORIZED EMPLOYEES OF THE DEPARTMENT OR ITS
8 AGENT TO INSPECT THE PLANT, BOOKS AND RECORDS OF THE APPLICANT
9 OR RECIPIENT.
10 (B) UPDATING.--AN APPLICANT OR A RECIPIENT SHALL PROVIDE
11 UPDATED INFORMATION TO THE DEPARTMENT AND ITS AGENTS IF
12 CONDITIONS CHANGE OR TO THE EXTENT THAT THE INFORMATION
13 ORIGINALLY GIVEN BECOMES INACCURATE OR MISLEADING.
14 (C) PERIODIC REPORTS.--A RECIPIENT SHALL PROVIDE THE
15 DEPARTMENT AND ITS AGENTS WITH SUCH PERIODIC FINANCIAL REPORTS
16 AS THE DEPARTMENT MAY REQUIRE UNTIL THE LOAN IS REPAID IN FULL.
17 (D) FINANCIAL AND PERFORMANCE AUDITS.--AN AGENT OF THE
18 DEPARTMENT SHALL ANNUALLY SUBMIT TO THE DEPARTMENT, AT THE
19 AGENT'S EXPENSE, AN INDEPENDENT FINANCIAL AUDIT. IF THE AUDIT
20 REVEALS MISCONDUCT OF A MATERIAL NATURE ON THE PART OF THE
21 AGENT, THE DEPARTMENT SHALL TAKE APPROPRIATE ACTION.
22 § 2312. LIMITATIONS.
23 NO LOANS SHALL BE RECOMMENDED OR APPROVED IF THE PROCEEDS OF
24 THE LOAN COULD DO ANY OF THE FOLLOWING:
25 (1) CAUSE, AID OR ASSIST DIRECTLY IN THE RELOCATION OF
26 ANY BUSINESS OPERATIONS FROM ONE PART OF THIS COMMONWEALTH TO
27 ANOTHER UNLESS THERE IS AT LEAST A 25% NET INCREASE IN
28 EMPLOYMENT.
29 (2) REFINANCE ANY PORTION OF THE TOTAL COST OF A CAPITAL
30 DEVELOPMENT PROJECT, POLLUTION PREVENTION INFRASTRUCTURE OR
20030S0010B1026 - 56 -
1 OTHER EXISTING LOANS OR DEBT.
2 (3) FINANCE A CAPITAL DEVELOPMENT PROJECT OR POLLUTION
3 PREVENTION INFRASTRUCTURE LOCATED OUTSIDE THE GEOGRAPHIC
4 BOUNDARIES OF THIS COMMONWEALTH.
5 (4) PROVIDE FUNDS, DIRECTLY OR DIRECTLY, FOR PAYMENT
6 DISTRIBUTION OR AS LOAN OWNERS, PARTNERS OR SHAREHOLDERS OF A
7 SMALL BUSINESS, EXCEPT AS ORDINARY COMPENSATION FOR SERVICES
8 RENDERED.
9 (5) PROVIDE FUNDS FOR SPECULATION IN REAL OR PERSONAL
10 PROPERTY, WHETHER TANGIBLE OR INTANGIBLE.
11 CHAPTER 25
12 INDUSTRIAL DEVELOPMENT ASSISTANCE
13 (RESERVED)
14 CHAPTER 27
15 CUSTOMIZED JOB TRAINING
16 (RESERVED)
17 CHAPTER 29
18 MACHINERY AND EQUIPMENT
19 (RESERVED)
20 CHAPTER 31
21 FAMILY SAVINGS ACCOUNT
22 (RESERVED)
23 CHAPTER 33
24 ECONOMIC ENHANCEMENT
25 SEC.
26 3301. SCOPE OF CHAPTER.
27 3302. DEFINITIONS.
28 3303. ESTABLISHMENT.
29 3304. REVIEW COMMITTEE.
30 3305. APPLICATION.
20030S0010B1026 - 57 -
1 3306. REVIEW AND APPROVAL.
2 3307. DESIGNATION.
3 § 3301. SCOPE OF CHAPTER.
4 THIS CHAPTER RELATES TO THE ECONOMIC ENHANCEMENT PROGRAM.
5 § 3302. DEFINITIONS.
6 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
7 SHALL HAVE THE MEANING GIVEN TO THEM IN THIS SECTION UNLESS THE
8 CONTEXT CLEARLY INDICATES OTHERWISE:
9 "AUTHORITY." THE PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING
10 AUTHORITY ESTABLISHED IN CHAPTER 43 (RELATING TO PENNSYLVANIA
11 ECONOMIC DEVELOPMENT FINANCING AUTHORITY).
12 "COMMITTEE." THE REVIEW COMMITTEE ESTABLISHED IN SECTION
13 3304 (RELATING TO REVIEW COMMITTEE).
14 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
15 DEVELOPMENT OF THE COMMONWEALTH.
16 "DETERIORATED PROPERTY." A BLIGHTED, IMPOVERISHED AREA
17 CONTAINING RESIDENTIAL, INDUSTRIAL, COMMERCIAL OR OTHER REAL
18 PROPERTY WHICH IS ABANDONED, UNSAFE, VACANT, UNDERVALUED,
19 UNDERUTILIZED, OVERGROWN, DEFECTIVE, CONDEMNED, DEMOLISHED OR
20 WHICH CONTAINS ECONOMICALLY UNDESIRABLE LAND USE. THE TERM
21 INCLUDES ALL OF THE FOLLOWING:
22 (1) A TAX INCREMENT DISTRICT.
23 (2) PROPERTY ADJACENT TO DETERIORATED PROPERTY WHICH IS
24 SIGNIFICANTLY UNDERVALUED AND UNDERUTILIZED DUE TO THE
25 PROXIMITY OF THE DETERIORATED PROPERTY.
26 "ISSUING AUTHORITY." AS THAT TERM IS DEFINED IN THE ACT OF
27 JULY 11, 1990 (P.L.465, NO.113), KNOWN AS THE TAX INCREMENT
28 FINANCING ACT.
29 "TAX INCENTIVE DISTRICT." A CONTIGUOUS GEOGRAPHIC AREA
30 DESIGNATED BY THE DEPARTMENT OF COMMUNITY AND ECONOMIC
20030S0010B1026 - 58 -
1 DEVELOPMENT UNDER SECTION 3307 (RELATING TO DESIGNATION).
2 "TAX INCREMENT DISTRICT." THE TERM AS IT IS DEFINED IN THE
3 ACT OF JULY 11, 1990 (P.L.465, NO.113), KNOWN AS THE TAX
4 INCREMENT FINANCING ACT.
5 § 3303. ESTABLISHMENT.
6 THERE IS HEREBY ESTABLISHED WITHIN THE DEPARTMENT A PROGRAM
7 TO BE KNOWN AS THE ECONOMIC ENHANCEMENT PROGRAM. THE PROGRAM
8 SHALL PROVIDE ECONOMIC ASSISTANCE TO DETERIORATED PROPERTY BY
9 USING CERTAIN TAX REVENUES FROM PROPERTY LOCATED IN INCENTIVE
10 DISTRICTS TO INCREASE ECONOMIC DEVELOPMENT IN INCENTIVE
11 DISTRICTS.
12 § 3304. REVIEW COMMITTEE.
13 (A) ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED A COMMITTEE
14 TO BE KNOWN AS THE REVIEW COMMITTEE. THE COMMITTEE SHALL REVIEW
15 AND RECOMMEND APPLICATIONS TO THE GOVERNOR. THE COMMITTEE SHALL
16 BE COMPOSED OF THE FOLLOWING FIVE MEMBERS:
17 (1) THE GOVERNOR OR THE SECRETARY OF THE BUDGET.
18 (2) THE MAJORITY LEADER OF THE SENATE, OR A DESIGNEE.
19 (3) THE MINORITY LEADER OF THE SENATE, OR A DESIGNEE.
20 (4) THE MAJORITY LEADER OF THE HOUSE OF REPRESENTATIVES,
21 OR A DESIGNEE.
22 (5) THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES,
23 OR A DESIGNEE.
24 (B) OPERATION.--THE GOVERNOR OR THE SECRETARY OF THE BUDGET
25 SHALL SERVE AS CHAIRPERSON. THE COMMITTEE SHALL MEET AT THE CALL
26 OF THE CHAIRPERSON. FOUR MEMBERS SHALL CONSTITUTE A QUORUM, AND
27 THE CONSENT OF FOUR MEMBERS OF THE COMMITTEE SHALL BE REQUIRED
28 TO RECOMMEND AN APPLICATION.
29 § 3305. APPLICATION.
30 A PERSON OR AN ISSUING AUTHORITY MAY APPLY TO THE DEPARTMENT
20030S0010B1026 - 59 -
1 TO HAVE DETERIORATED PROPERTY DESIGNATED AN INCENTIVE DISTRICT.
2 THE APPLICATION SHALL BE ON A FORM PROVIDED BY THE DEPARTMENT
3 AND SHALL INCLUDE ALL OF THE FOLLOWING:
4 (1) THE NAME AND ADDRESS OF THE APPLICANT.
5 (2) A LEGAL DESCRIPTION OF THE PROPERTY WHICH IS TO BE
6 INCLUDED IN THE INCENTIVE DISTRICT.
7 (3) A STATEMENT THAT THE PROPERTY IS DETERIORATED.
8 (4) A FIRM COMMITMENT OF FUTURE ECONOMIC DEVELOPMENT ON
9 THE PROPERTY IF THE PROPERTY WERE DESIGNATED AN INCENTIVE
10 DISTRICT.
11 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
12 § 3306. REVIEW AND APPROVAL.
13 (A) REVIEW.--THE DEPARTMENT SHALL FORWARD THE APPLICATION TO
14 THE COMMITTEE WHEN IT IS COMPLETE. THE COMMITTEE SHALL REVIEW
15 THE APPLICATION TO DETERMINE ALL OF THE FOLLOWING:
16 (1) IF THE APPLICANT IS FIRMLY COMMITTED TO IMPROVING
17 THE PROPERTY UPON DESIGNATION.
18 (2) IF THE APPLICANT COMPLIED WITH ALL OTHER CRITERIA
19 ESTABLISHED BY THE COMMITTEE.
20 (B) APPROVAL.--UPON BEING SATISFIED THAT ALL REQUIREMENTS
21 HAVE BEEN MET, THE COMMITTEE MAY APPROVE THE APPLICATION AND
22 RECOMMEND THAT THE PROPERTY BE DESIGNATED AN INCENTIVE DISTRICT.
23 THE RECOMMENDATION SHALL SPECIFY THE TIME PERIOD FOR WHICH THE
24 PROPERTY MAY BE DESIGNATED, NOT TO EXCEED 20 YEARS. THE
25 DEPARTMENT SHALL IMMEDIATELY NOTIFY AFFECTED MUNICIPALITIES OF
26 THE RECOMMENDATION.
27 § 3307. DESIGNATION.
28 WITHIN 90 DAYS OF RECEIVING NOTIFICATION IN ACCORDANCE WITH
29 SECTION 3306 (RELATING TO REVIEW AND APPROVAL), A MUNICIPALITY
30 MAY REQUEST THE DEPARTMENT TO DESIGNATE THE DETERIORATED
20030S0010B1026 - 60 -
1 PROPERTY AS A TAX INCENTIVE DISTRICT. THE REQUEST SHALL BE ON A
2 FORM PROVIDED BY THE DEPARTMENT AND SHALL INCLUDE A COPY OF THE
3 ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM THE
4 GOVERNING BODY OF THE MUNICIPALITY APPROVING THE DESIGNATION OF
5 THE PROPERTY AS A TAX INCENTIVE DISTRICT. ALL APPROPRIATE
6 ORDINANCES AND RESOLUTIONS SHALL BE BINDING AND NONREVOCABLE ON
7 THE MUNICIPALITY. IF ALL MUNICIPALITIES WITHIN A RECOMMENDED TAX
8 INCENTIVE DISTRICT SUBMIT TIMELY COMPLETED REQUESTS, THE
9 DEPARTMENT SHALL APPROVE THE REQUESTS AND DESIGNATE THE PROPERTY
10 AS A TAX INCENTIVE DISTRICT. UPON DESIGNATION, PERSONS OWNING
11 PROPERTY LOCATED WITHIN A TAX INCENTIVE DISTRICT AND ISSUING
12 AUTHORITIES OF TAX INCREMENT DISTRICTS LOCATED WITHIN A TAX
13 INCENTIVE DISTRICT SHALL BE ELIGIBLE TO RECEIVE GRANTS AND LOANS
14 UNDER THE ECONOMIC ENHANCEMENT FINANCING PROGRAM ADMINISTERED BY
15 THE PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY.
16 CHAPTER 35
17 KEYSTONE ECONOMIC DEVELOPMENT ZONES
18 SUBCHAPTER
19 A. GENERAL PROVISIONS
20 B. KEYSTONE OPPORTUNITY ZONES AND KEYSTONE OPPORTUNITY
21 EXPANSION ZONES
22 C. STATE TAXES (RESERVED)
23 D. LOCAL TAXES (RESERVED)
24 E. ADMINISTRATION OF TAX PROVISIONS(RESERVED)
25 F. PROCEDURES FOR ZONES (RESERVED)
26 G. MISCELLANEOUS PROVISIONS (RESERVED)
27 SUBCHAPTER A
28 GENERAL PROVISIONS
29 SEC.
30 3501. SCOPE.
20030S0010B1026 - 61 -
1 3502. LEGISLATIVE FINDINGS (RESERVED).
2 3503. DEFINITIONS.
3 § 3501. SCOPE.
4 THIS CHAPTER RELATES TO KEYSTONE OPPORTUNITY ZONES AND
5 KEYSTONE OPPORTUNITY EXPANSION ZONES.
6 § 3502. LEGISLATIVE FINDINGS.
7 (RESERVED)
8 § 3503. DEFINITIONS.
9 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
10 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
11 CONTEXT CLEARLY INDICATES OTHERWISE:
12 "BUSINESS." AN ASSOCIATION, PARTNERSHIP, CORPORATION, SOLE
13 PROPRIETORSHIP, LIMITED LIABILITY COMPANY OR EMPLOYER.
14 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
15 DEVELOPMENT OF THE COMMONWEALTH.
16 "DETERIORATED PROPERTY." ANY BLIGHTED, IMPOVERISHED AREA
17 CONTAINING RESIDENTIAL, INDUSTRIAL, COMMERCIAL OR OTHER REAL
18 PROPERTY WHICH IS ABANDONED, UNSAFE, VACANT, UNDERVALUED,
19 UNDERUTILIZED, OVERGROWN, DEFECTIVE, CONDEMNED, DEMOLISHED OR
20 WHICH CONTAINS ECONOMICALLY UNDESIRABLE LAND USE. THE TERM
21 INCLUDES PROPERTY ADJACENT TO DETERIORATED PROPERTY WHICH IS
22 SIGNIFICANTLY UNDERVALUED AND UNDERUTILIZED DUE TO THE PROXIMITY
23 OF THE DETERIORATED PROPERTY.
24 "DOMICILE." THE PLACE WHERE A PERSON HAS A TRUE AND FIXED
25 HOME AND PRINCIPAL ESTABLISHMENT FOR AN INDEFINITE TIME AND TO
26 WHICH, WHENEVER ABSENT, THAT PERSON INTENDS TO RETURN. DOMICILE
27 CONTINUES UNTIL ANOTHER PLACE OF DOMICILE IS ESTABLISHED.
28 "EXPANSION SUBZONE." A CLEARLY DEFINED GEOGRAPHIC AREA
29 CONTAINING A MINIMUM OF 15 CONTIGUOUS ACRES OR A MINIMUM OF FIVE
30 CONTIGUOUS ACRES IN A RURAL AREA.
20030S0010B1026 - 62 -
1 "IMPROVEMENT SUBZONE." A CLEARLY DEFINED GEOGRAPHIC AREA.
2 "INSTITUTION."
3 (1) EVERY BANK OPERATING AS SUCH AND HAVING CAPITAL
4 STOCK WHICH IS INCORPORATED UNDER ANY LAW OF THIS
5 COMMONWEALTH, UNDER THE LAW OF THE UNITED STATES OR UNDER THE
6 LAW OF ANY OTHER JURISDICTION AND IS LOCATED WITHIN THIS
7 COMMONWEALTH.
8 (2) EVERY OPERATING COMPANY HAVING CAPITAL STOCK LOCATED
9 WITHIN THIS COMMONWEALTH HAVING ANY OF THE POWERS OF
10 COMPANIES ENTITLED TO THE BENEFITS OF SECTION 29 OF THE ACT
11 OF APRIL 29, 1874 (P.L.73, NO.32), ENTITLED "AN ACT TO
12 PROVIDE FOR THE INCORPORATION AND REGULATION OF CERTAIN
13 CORPORATIONS," AND ANY SUPPLEMENTS THERETO AND UNDER THE ACT
14 OF JUNE 27, 1895 (P.L.399, NO.286), ENTITLED "AN ACT
15 CONFERRING UPON CERTAIN FIDELITY, INSURANCE, SAFETY DEPOSIT,
16 TRUST AND SAVINGS COMPANIES THE POWERS AND PRIVILEGES OF
17 COMPANIES INCORPORATED UNDER THE PROVISIONS OF SECTION
18 TWENTY-NINE OF AN ACT, ENTITLED 'AN ACT TO PROVIDE FOR THE
19 INCORPORATION AND REGULATION OF CERTAIN CORPORATIONS,'
20 APPROVED APRIL TWENTY-NINTH, ANNO DOMINI ONE THOUSAND EIGHT
21 HUNDRED AND SEVENTY-FOUR, AND OF THE SUPPLEMENTS THERETO."
22 (3) EVERY COMPANY ORGANIZED AND OPERATING AS A BANK AND
23 TRUST COMPANY OR AS A TRUST COMPANY HAVING CAPITAL STOCK
24 LOCATED IN THIS COMMONWEALTH, WHETHER THE INSTITUTION IS
25 INCORPORATED UNDER ANY LAW OF THIS COMMONWEALTH, THE LAW OF
26 THE UNITED STATES OR ANY LAW OF ANY JURISDICTION. THE TERM
27 SHALL NOT INCLUDE ANY OF SUCH COMPANIES, ALL OF THE SHARES OF
28 CAPITAL STOCK OF WHICH, OTHER THAN SHARES NECESSARY TO
29 QUALIFY DIRECTORS, ARE OWNED BY A COMPANY WHICH IS LIABLE TO
30 PAY TO THE COMMONWEALTH A TAX PURSUANT TO ARTICLE VII OF THE
20030S0010B1026 - 63 -
1 ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM
2 CODE OF 1971.
3 (4) A MUTUAL THRIFT INSTITUTION.
4 "INSURANCE COMPANY." EVERY INSURANCE COMPANY, ASSOCIATION OR
5 EXCHANGE INCORPORATED OR ORGANIZED BY OR UNDER THE LAWS OF THIS
6 COMMONWEALTH, THE UNITED STATES, TERRITORIES, DEPENDENCIES,
7 OTHER STATES OR FOREIGN GOVERNMENTS AND ENGAGED IN TRANSACTING
8 INSURANCE BUSINESS OF ANY KIND OR CLASSIFICATION WITHIN THIS
9 COMMONWEALTH, EXCEPT TITLE INSURANCE COMPANIES SUBJECT TO TAX
10 UNDER ARTICLE VIII OR XVI OF THE ACT OF MARCH 4, 1971 (P.L.6,
11 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AS THE CASE MAY BE,
12 EXCEPT PURELY MUTUAL BENEFICIAL ASSOCIATIONS WHOSE FUNDS FOR THE
13 BENEFIT OF MEMBERS AND FAMILIES OR HEIRS ARE MADE UP ENTIRELY OF
14 THE WEEKLY, MONTHLY, QUARTERLY, SEMIANNUAL OR ANNUAL
15 CONTRIBUTIONS TO THEIR MEMBERS AND THE ACCUMULATED INTEREST
16 THEREON AND CORPORATIONS ORGANIZED UNDER THE FORMER ACT OF JUNE
17 21, 1937 (P.L.1948, NO.378), KNOWN AS THE NONPROFIT HOSPITAL
18 PLAN ACT, AND UNDER THE FORMER ACT OF JUNE 27, 1939 (P.L.1125,
19 NO.399), KNOWN AS THE NONPROFIT MEDICAL, OSTEOPATHIC, DENTAL AND
20 PODIATRY SERVICE CORPORATION ACT.
21 "KEYSTONE ACT." THE ACT OF OCTOBER 6, 1998 (P.L.705, NO.92),
22 KNOWN AS THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY
23 EXPANSION ZONE ACT.
24 "KEYSTONE OPPORTUNITY EXPANSION ZONE." A DEFINED GEOGRAPHIC
25 AREA COMPRISED OF ONE OR MORE POLITICAL SUBDIVISIONS OR PORTIONS
26 OF POLITICAL SUBDIVISIONS DESIGNATED BY THE DEPARTMENT OF
27 COMMUNITY AND ECONOMIC DEVELOPMENT UNDER SUBCH. B (RELATING TO
28 KEYSTONE OPPORTUNITY ZONES AND KEYSTONE EXPANSION ZONES). A
29 KEYSTONE OPPORTUNITY EXPANSION ZONE MAY BE COMPRISED OF NOT MORE
30 THAN EIGHT EXPANSION SUBZONES.
20030S0010B1026 - 64 -
1 "KEYSTONE OPPORTUNITY ZONE." A DEFINED GEOGRAPHIC AREA
2 COMPRISED OF ONE OR MORE POLITICAL SUBDIVISIONS OR PORTIONS OF
3 POLITICAL SUBDIVISIONS DESIGNATED BY THE DEPARTMENT OF COMMUNITY
4 AND ECONOMIC DEVELOPMENT UNDER SUBCH. B (RELATING TO KEYSTONE
5 OPPORTUNITY ZONES AND KEYSTONE OPPORTUNITY EXPANSION ZONES). A
6 KEYSTONE OPPORTUNITY ZONE MAY BE COMPRISED OF NOT MORE THAN 12
7 SUBZONES.
8 "METROPOLITAN STATISTICAL AREA." A CORE AREA CONTAINING A
9 CITY WITH A POPULATION OF 50,000 OR MORE OR A BUREAU OF CENSUS
10 DEFINED URBANIZED AREA OF 50,000 WITH A TOTAL METROPOLITAN
11 POPULATION OF AT LEAST 100,000.
12 "MUTUAL THRIFT INSTITUTION." EVERY:
13 (1) SAVINGS BANK WITHOUT CAPITAL STOCK;
14 (2) BUILDING AND LOAN ASSOCIATION;
15 (3) SAVINGS AND LOAN ASSOCIATION;
16 (4) SAVINGS INSTITUTION HAVING CAPITAL STOCK;
17 WHETHER THE MUTUAL THRIFT INSTITUTION IS INCORPORATED UNDER ANY
18 LAW OF THIS COMMONWEALTH OR UNDER THE LAW OF THE UNITED STATES,
19 OR IS INCORPORATED UNDER THE LAW OF ANY OTHER JURISDICTION AND
20 IS LOCATED WITHIN THIS COMMONWEALTH.
21 "OPPORTUNITY PLAN." A WRITTEN PLAN THAT ADDRESSES THE
22 CRITERIA AND MEETS THE REQUIREMENTS IN SECTION 3514(A) (RELATING
23 TO APPLICATION).
24 "PERSON." AN INDIVIDUAL.
25 "POLITICAL SUBDIVISION." A COUNTY, CITY, BOROUGH, TOWNSHIP,
26 TOWN OR SCHOOL DISTRICT WITH TAXING JURISDICTION IN A DEFINED
27 GEOGRAPHIC AREA WITHIN THIS COMMONWEALTH.
28 "QUALIFIED BUSINESS." A BUSINESS AUTHORIZED TO DO BUSINESS
29 IN THIS COMMONWEALTH THAT IS LOCATED OR PARTIALLY LOCATED WITHIN
30 A SUBZONE OR EXPANSION SUBZONE AND IS ENGAGED IN THE ACTIVE
20030S0010B1026 - 65 -
1 CONDUCT OF A TRADE OR BUSINESS IN ACCORDANCE WITH THE
2 REQUIREMENTS OF SECTION 3519 (RELATING TO QUALIFIED BUSINESSES)
3 FOR THE TAXABLE YEAR. AN AGENT, BROKER OR REPRESENTATIVE OF A
4 BUSINESS IS NOT ENGAGED IN THE ACTIVE CONDUCT OF TRADE OR
5 BUSINESS FOR THE BUSINESS.
6 "QUALIFIED POLITICAL SUBDIVISION." A POLITICAL SUBDIVISION
7 THAT HAS REAL PROPERTY WITHIN ITS JURISDICTION WHICH HAS BEEN
8 DESIGNATED BY THE DEPARTMENT AS A SUBZONE OR EXPANSION SUBZONE.
9 "RESIDENT." A PERSON WHO IS DOMICILED AND RESIDES IN AN AREA
10 THAT IS DESIGNATED A SUBZONE OR EXPANSION SUBZONE AND WHO MEETS
11 THE REQUIREMENTS OF SECTION 3518 (RELATING TO RESIDENCY).
12 "SUBZONE." A CLEARLY DEFINED GEOGRAPHIC AREA CONTAINING A
13 MINIMUM OF 20 CONTIGUOUS ACRES OR A MINIMUM OF TEN CONTIGUOUS
14 ACRES IN A RURAL AREA.
15 "TAX REFORM CODE OF 1971." THE ACT OF MARCH 4, 1971 (P.L.6,
16 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AND ANY SUBSEQUENT
17 AMENDMENTS THERETO.
18 SUBCHAPTER B
19 KEYSTONE OPPORTUNITY ZONES AND KEYSTONE
20 OPPORTUNITY EXPANSION ZONES
21 SEC.
22 3511. KEYSTONE OPPORTUNITY ZONES.
23 3512. KEYSTONE OPPORTUNITY EXPANSION ZONES.
24 3513. KEYSTONE OPPORTUNITY IMPROVEMENT ZONES.
25 3514. APPLICATION.
26 3515. REVIEW.
27 3516. CRITERIA FOR AUTHORIZATION OF KEYSTONE OPPORTUNITY
28 ZONE.
29 3517. ZONE LIMITATIONS.
30 3518. RESIDENCY.
20030S0010B1026 - 66 -
1 3519. QUALIFIED BUSINESSES.
2 3520. FORMS.
3 3521. DECERTIFICATION.
4 § 3511. KEYSTONE OPPORTUNITY ZONES.
5 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
6 DEPARTMENT A PROGRAM PROVIDING FOR KEYSTONE OPPORTUNITY ZONES. A
7 KEYSTONE OPPORTUNITY ZONE SHALL BE COMPRISED OF DETERIORATED
8 PROPERTY AND SHALL NOT EXCEED A TOTAL OF 5,000 ACRES.
9 (B) ZONE AUTHORIZATION.--THE DEPARTMENT SHALL AUTHORIZE NOT
10 MORE THAN 12 KEYSTONE OPPORTUNITY ZONES IN THIS COMMONWEALTH.
11 PERSONS AND BUSINESSES WITHIN AN AUTHORIZED KEYSTONE OPPORTUNITY
12 ZONE THAT ARE QUALIFIED UNDER THIS CHAPTER SHALL BE ENTITLED TO
13 ALL TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH
14 IN CHAPTERS 5 AND 7 OF THE KEYSTONE ACT FOR A PERIOD NOT TO
15 EXCEED 15 YEARS BEGINNING JANUARY 1, 1999, AND ENDING ON OR
16 BEFORE DECEMBER 31, 2013.
17 (C) SUBZONE DESIGNATION.--THE DEPARTMENT MAY DESIGNATE NOT
18 MORE THAN 12 SUBZONES IN EACH KEYSTONE OPPORTUNITY ZONE. THE
19 TOTAL NUMBER OF SUBZONE ACRES IN A KEYSTONE OPPORTUNITY ZONE
20 SHALL NOT EXCEED 5,000 ACRES IN THE AGGREGATE.
21 (D) AUTHORIZATION FOR LOCAL TAX EXEMPTION.--EVERY POLITICAL
22 SUBDIVISION WITHIN WHICH A PROPOSED SUBZONE IS LOCATED, WHETHER
23 IN WHOLE OR IN PART, IS AUTHORIZED TO PROVIDE TAX EXEMPTIONS,
24 DEDUCTIONS, ABATEMENTS OR CREDITS TO PERSONS AND BUSINESSES
25 QUALIFIED UNDER THIS CHAPTER. THE POLITICAL SUBDIVISION MUST
26 AGREE TO PROVIDE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
27 FROM ALL LOCAL TAXES SET FORTH IN CHAPTER 7 OF THE KEYSTONE ACT
28 IN ORDER TO QUALIFY TO BE DESIGNATED A SUBZONE. EXCEPT AS
29 PROVIDED IN SECTION 3515(E) (RELATING TO REVIEW), THE
30 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS MUST BE EFFECTIVE
20030S0010B1026 - 67 -
1 JANUARY 1, 1999, IF DESIGNATION OF A SUBZONE WITHIN THE
2 POLITICAL SUBDIVISION IS GRANTED BY THE DEPARTMENT. THE
3 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SHALL BE BINDING
4 UPON THE POLITICAL SUBDIVISION FOR THE DURATION OF THE SUBZONE
5 DESIGNATION.
6 (E) AUTHORIZATION TO EXTEND THE DURATION OF A KEYSTONE
7 OPPORTUNITY ZONE OR SUBZONE.--A SUBZONE OF A KEYSTONE
8 OPPORTUNITY ZONE MAY REQUEST TO EXTEND ITS DESIGNATION AS A
9 SUBZONE FOR A PERIOD OF THREE YEARS. A SUBZONE THAT IS PART OF A
10 KEYSTONE OPPORTUNITY ZONE THAT WILL EXPIRE ON DECEMBER 31, 2008,
11 MAY EXTEND ITS DESIGNATION AS A SUBZONE TO DECEMBER 31, 2010, OR
12 TO DECEMBER 31, 2013. THE REQUEST TO EXTEND A SUBZONE
13 DESIGNATION MUST BE MADE ON A SUBZONE-BY-SUBZONE BASIS. A
14 QUALIFIED POLITICAL SUBDIVISION HAVING AN APPROVED SUBZONE
15 WITHIN ITS JURISDICTION AND SEEKING TO EXTEND THE SUBZONE
16 DESIGNATION MUST PASS THE REQUIRED ORDINANCES, RESOLUTIONS OR
17 OTHER REQUIRED ACTION OF THE QUALIFIED POLITICAL SUBDIVISION FOR
18 THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN
19 CHAPTER 7 OF THE KEYSTONE ACT FOR THE PERIOD BEGINNING AFTER
20 DECEMBER 31, 2008, OR DECEMBER 31, 2010, AS THE CASE MAY BE, AND
21 MUST SUBMIT COPIES OF THE ORDINANCE, RESOLUTION OR OTHER ACTION
22 TO THE DEPARTMENT BY JUNE 30, 2001. THE DEPARTMENT MAY GRANT THE
23 REQUEST TO EXTEND IF ALL THE PROPER BINDING ORDINANCES,
24 RESOLUTIONS OR OTHER GOVERNING DOCUMENTS ARE PASSED BY ALL
25 QUALIFIED POLITICAL SUBDIVISIONS WITHIN THE SUBZONE EXTENDING
26 THE NECESSARY EXEMPTIONS, DEDUCTIONS, ABATEMENTS AND CREDITS TO
27 THE ENTIRE SUBZONE TO DECEMBER 31, 2010, OR DECEMBER 31, 2013.
28 THE DEPARTMENT SHALL APPROVE OR DENY THE REQUEST FOR EXTENSION
29 OF DURATION OF A SUBZONE BY JULY 31, 2001, AND SHALL PROVIDE
30 WRITTEN NOTICE, IRRESPECTIVE OF WHETHER APPROVED OR DENIED, TO
20030S0010B1026 - 68 -
1 EACH QUALIFIED POLITICAL SUBDIVISION, RESIDENT AND QUALIFIED
2 BUSINESS AFFECTED. UPON APPROVAL OF A REQUEST FOR EXTENSION OF
3 DURATION OF A SUBZONE, THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
4 CREDITS SHALL BE BINDING UPON THE QUALIFIED POLITICAL
5 SUBDIVISION AS PROVIDED IN SUBSECTION (D).
6 (F) AUTHORIZATION TO ENHANCE EXISTING SUBZONES.--UNLESS AS A
7 RESULT OF A REQUEST THE LIMITATION ON SIZE ESTABLISHED IN
8 SUBSECTION (A) WOULD BE EXCEEDED, A SUBZONE OF A KEYSTONE
9 OPPORTUNITY ZONE MAY REQUEST TO ENHANCE ITS SIZE. THE REQUEST TO
10 ENHANCE A SUBZONE MUST BE MADE ON A SUBZONE-BY-SUBZONE BASIS. A
11 QUALIFIED POLITICAL SUBDIVISION HAVING AN APPROVED SUBZONE
12 WITHIN ITS JURISDICTION WHICH IS SEEKING TO ENHANCE ITS SIZE
13 MUST PASS THE REQUIRED ORDINANCES, RESOLUTIONS OR OTHER REQUIRED
14 ACTION OF THE QUALIFIED POLITICAL SUBDIVISION FOR THE
15 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN
16 CHAPTER 7 OF THE KEYSTONE ACT FOR THE PERIOD BEGINNING ON THE
17 DATE OF DESIGNATION AND ENDING ON THE DATE THE SUBZONE EXPIRES
18 AND MUST SUBMIT COPIES OF THE ORDINANCE, RESOLUTION OR OTHER
19 ACTION TO THE DEPARTMENT BY JUNE 1, 2003.
20 § 3512. KEYSTONE OPPORTUNITY EXPANSION ZONES.
21 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
22 DEPARTMENT A PROGRAM PROVIDING FOR KEYSTONE OPPORTUNITY
23 EXPANSION ZONES. A KEYSTONE OPPORTUNITY EXPANSION ZONE SHALL BE
24 COMPRISED OF DETERIORATED PROPERTY AND SHALL NOT EXCEED A TOTAL
25 OF 1,500 ACRES.
26 (B) AUTHORIZATION.--THE DEPARTMENT SHALL AUTHORIZE NOT MORE
27 THAN 12 KEYSTONE OPPORTUNITY EXPANSION ZONES IN THIS
28 COMMONWEALTH. PERSONS AND BUSINESSES WITHIN AN AUTHORIZED
29 KEYSTONE OPPORTUNITY EXPANSION ZONE THAT ARE QUALIFIED UNDER THE
30 KEYSTONE ACT SHALL BE ENTITLED TO ALL TAX EXEMPTIONS,
20030S0010B1026 - 69 -
1 DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN CHAPTERS 5 AND 7
2 OF THE KEYSTONE ACT FOR A PERIOD OF TEN OR 13 YEARS BEGINNING
3 JANUARY 1, 2001, AND ENDING ON DECEMBER 31, 2010, OR DECEMBER
4 31, 2013.
5 (C) EXPANSION SUBZONE DESIGNATION.--THE DEPARTMENT MAY
6 DESIGNATE NOT MORE THAN EIGHT EXPANSION SUBZONES IN A KEYSTONE
7 OPPORTUNITY EXPANSION ZONE. THE TOTAL NUMBER OF EXPANSION
8 SUBZONE ACRES IN A KEYSTONE OPPORTUNITY EXPANSION ZONE SHALL NOT
9 EXCEED 1,500 ACRES IN THE AGGREGATE.
10 (D) AUTHORIZATION FOR LOCAL TAX EXEMPTION.--EVERY POLITICAL
11 SUBDIVISION WITHIN WHICH A PROPOSED EXPANSION SUBZONE IS
12 LOCATED, WHETHER IN WHOLE OR IN PART, IS AUTHORIZED TO PROVIDE
13 TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS TO PERSONS AND
14 BUSINESSES QUALIFIED UNDER THIS CHAPTER FOR A PERIOD ENDING
15 DECEMBER 31, 2010, OR DECEMBER 31, 2013. THE EXEMPTION PERIOD
16 MUST BE UNIFORM WITHIN EACH EXPANSION SUBZONE. THE POLITICAL
17 SUBDIVISION MUST AGREE TO PROVIDE EXEMPTIONS, DEDUCTIONS,
18 ABATEMENTS OR CREDITS FROM ALL LOCAL TAXES SET FORTH IN CHAPTER
19 7 OF THE KEYSTONE ACT IN ORDER TO QUALIFY TO BE DESIGNATED AN
20 EXPANSION SUBZONE. THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
21 CREDITS MUST BE EFFECTIVE JANUARY 1, 2001, IF DESIGNATION OF AN
22 EXPANSION SUBZONE WITHIN THE POLITICAL SUBDIVISION IS GRANTED BY
23 THE DEPARTMENT. THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
24 CREDITS SHALL BE BINDING UPON THE POLITICAL SUBDIVISION FOR THE
25 DURATION OF THE EXPANSION SUBZONE DESIGNATION.
26 (E) AUTHORIZATION TO ENHANCE EXISTING EXPANSION SUBZONES.--
27 UNLESS AS A RESULT OF A REQUEST THE LIMITATION ON SIZE
28 ESTABLISHED IN SUBSECTION (A) WOULD BE EXCEEDED, A KEYSTONE
29 OPPORTUNITY EXPANSION ZONE MAY REQUEST TO ENHANCE ITS SIZE. THE
30 REQUEST TO ENHANCE THE EXPANSION ZONE MUST BE MADE ON AN
20030S0010B1026 - 70 -
1 EXPANSION-SUBZONE-BY-EXPANSION-SUBZONE BASIS. A QUALIFIED
2 POLITICAL SUBDIVISION WHICH IS SEEKING AN EXPANSION SUBZONE
3 WITHIN ITS JURISDICTION MUST PASS THE REQUIRED ORDINANCE,
4 RESOLUTION OR OTHER REQUIRED ACTION OF THE QUALIFIED POLITICAL
5 SUBDIVISION FOR THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
6 CREDITS SET FORTH IN CHAPTER 7 OF THE KEYSTONE ACT FOR THE
7 PERIOD BEGINNING ON JANUARY 1, 2004, AND ENDING ON DECEMBER 31,
8 2010, OR ON DECEMBER 31, 2013. COPIES OF THE ORDINANCE,
9 RESOLUTION OR OTHER ACTION MUST BE SUBMITTED TO THE DEPARTMENT
10 BY DECEMBER 31, 2003.
11 § 3513. KEYSTONE OPPORTUNITY IMPROVEMENT ZONES.
12 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
13 DEPARTMENT A PROGRAM FOR KEYSTONE OPPORTUNITY IMPROVEMENT ZONES.
14 A KEYSTONE OPPORTUNITY IMPROVEMENT ZONE SHALL BE COMPRISED OF
15 IMPROVEMENT SUBZONES CONSISTING OF DETERIORATED PROPERTY
16 DESIGNATED BY THE GOVERNOR.
17 (B) PROPOSAL.--BY JANUARY 1, 2003, AND NOTWITHSTANDING ANY
18 DESIGNATION UNDER SECTIONS 3511 (RELATING TO KEYSTONE
19 OPPORTUNITY ZONES) AND 3512 (RELATING TO KEYSTONE OPPORTUNITY
20 EXPANSION ZONES), THE GOVERNOR MAY, BY EXECUTIVE ORDER,
21 DESIGNATE DETERIORATED PROPERTY IN THIS COMMONWEALTH AS A
22 PROPOSED IMPROVEMENT SUBZONE. THE EXECUTIVE ORDER SHALL SPECIFY
23 THE PERIOD OF TIME, NOT TO EXCEED 15 YEARS, FOR WHICH THE TAX
24 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS PROVIDED BY
25 CHAPTERS 5 AND 7 OF THE KEYSTONE ACT MAY BE GRANTED. THE
26 DEPARTMENT SHALL IMMEDIATELY NOTIFY POLITICAL SUBDIVISIONS
27 LOCATED WITHIN THE AREA DESIGNATED.
28 (C) APPLICATION.--BY JUNE 1, 2004, A POLITICAL SUBDIVISION
29 MAY APPLY TO THE DEPARTMENT FOR APPROVAL OF THE DESIGNATION OF
30 THE DETERIORATED PROPERTY AS AN IMPROVEMENT SUBZONE FOR THE
20030S0010B1026 - 71 -
1 PERIOD DESIGNATED UNDER SUBSECTION (B). THE APPLICATION MUST BE
2 ON A FORM PROVIDED BY THE DEPARTMENT AND MUST INCLUDE A COPY OF
3 AN ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM THE
4 GOVERNING BODY OF THE POLITICAL SUBDIVISION EXEMPTING OR
5 PROVIDING THE DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN
6 CHAPTER 7 OF THE KEYSTONE ACT TO QUALIFIED PERSONS AND QUALIFIED
7 BUSINESSES WITHIN THE PROPOSED IMPROVEMENT SUBZONE. EXCEPT AS
8 PROVIDED IN SECTION 3521 (RELATING TO DECERTIFICATION), ALL
9 APPROPRIATE ORDINANCES AND RESOLUTIONS MUST BE EFFECTIVE FOR THE
10 PERIOD SPECIFIED IN THE EXECUTIVE ORDER AND MUST BE BINDING AND
11 NONREVOCABLE ON THE POLITICAL SUBDIVISION.
12 (D) DESIGNATION.--IF ALL POLITICAL SUBDIVISIONS WITHIN A
13 PROPOSED IMPROVEMENT SUBZONE SUBMIT TIMELY COMPLETED
14 APPLICATIONS, THE DEPARTMENT SHALL APPROVE THE APPLICATIONS AND
15 DESIGNATE THE PROPERTY AS AN IMPROVEMENT SUBZONE. IF A PROPOSED
16 IMPROVEMENT SUBZONE IS AN EXISTING SUBZONE OR AN EXISTING
17 EXPANSION SUBZONE, FAILURE OF A POLITICAL SUBDIVISION TO SUBMIT
18 THE APPLICATION AS REQUIRED BY THIS SECTION SHALL NOT TERMINATE
19 THE EXISTING DESIGNATION AS EITHER A SUBZONE OR AN EXPANSION
20 SUBZONE. QUALIFIED PERSONS AND QUALIFIED BUSINESSES WITHIN THE
21 IMPROVEMENT SUBZONE SHALL BE ENTITLED TO THE STATE EXEMPTIONS,
22 DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN CHAPTER 5 OF THE
23 KEYSTONE ACT AND THE LOCAL TAX EXEMPTIONS, DEDUCTIONS,
24 ABATEMENTS OR CREDITS SET FORTH IN CHAPTER 7 OF THE KEYSTONE ACT
25 FOR THE PERIOD FOR WHICH THE IMPROVEMENT SUBZONE HAS BEEN
26 DESIGNATED.
27 § 3514. APPLICATION.
28 (A) INITIAL APPLICATION.--ONE OR MORE POLITICAL
29 SUBDIVISIONS, OR A DESIGNEE OF ONE OR MORE POLITICAL
30 SUBDIVISIONS, MAY APPLY TO THE DEPARTMENT TO DESIGNATE
20030S0010B1026 - 72 -
1 DETERIORATED PROPERTY WITHIN THE POLITICAL SUBDIVISION OR
2 PORTIONS THEREOF A SUBZONE OR EXPANSION SUBZONE. THE APPLICATION
3 MUST CONTAIN THE FOLLOWING:
4 (1) THE GEOGRAPHIC AREA OF THE PROPOSED KEYSTONE
5 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION
6 ZONE. THE GEOGRAPHIC AREA MUST BE LOCATED WITHIN THE
7 BOUNDARIES OF THE PARTICIPATING POLITICAL SUBDIVISION AND
8 MUST NOT CONTAIN MORE THAN 5,000 ACRES IN THE CASE OF A
9 KEYSTONE OPPORTUNITY ZONE OR 1,500 ACRES IN THE CASE OF A
10 KEYSTONE OPPORTUNITY EXPANSION ZONE.
11 (2) AN OPPORTUNITY PLAN THAT MUST INCLUDE THE FOLLOWING:
12 (I) A DETAILED MAP OF THE PROPOSED KEYSTONE
13 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
14 EXPANSION ZONE, INCLUDING GEOGRAPHIC BOUNDARIES, TOTAL
15 AREA AND PRESENT USE AND CONDITIONS OF THE LAND AND
16 STRUCTURES OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
17 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
18 (II) EVIDENCE OF SUPPORT FROM AND PARTICIPATION OF
19 LOCAL GOVERNMENT, SCHOOL DISTRICTS AND OTHER EDUCATIONAL
20 INSTITUTIONS, BUSINESS GROUPS, COMMUNITY ORGANIZATIONS
21 AND THE PUBLIC.
22 (III) A PROPOSAL TO INCREASE ECONOMIC OPPORTUNITY,
23 REDUCE CRIME, IMPROVE EDUCATION, FACILITATE
24 INFRASTRUCTURE IMPROVEMENT, REDUCE THE LOCAL REGULATING
25 BURDEN AND IDENTIFY POTENTIAL JOBS AND JOB TRAINING
26 OPPORTUNITIES AND WHICH STATES WHETHER OR NOT THE ZONE IS
27 LOCATED IN AN AREA WHICH HAS TAX REVENUE DEDICATED TO THE
28 PAYMENT OF DEBT.
29 (IV) A DESCRIPTION OF THE CURRENT SOCIAL, ECONOMIC
30 AND DEMOGRAPHIC CHARACTERISTICS OF THE PROPOSED KEYSTONE
20030S0010B1026 - 73 -
1 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
2 EXPANSION ZONE AND ANTICIPATED IMPROVEMENTS IN EDUCATION,
3 HEALTH, HUMAN SERVICES, PUBLIC SAFETY AND EMPLOYMENT,
4 THAT WILL RESULT FROM KEYSTONE OPPORTUNITY ZONE OR
5 KEYSTONE OPPORTUNITY EXPANSION ZONE DESIGNATION.
6 (V) A DESCRIPTION OF ANTICIPATED ACTIVITY IN THE
7 PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE
8 OPPORTUNITY EXPANSION ZONE, INCLUDING, INDUSTRIAL USE,
9 INDUSTRIAL SITE REUSE, COMMERCIAL OR RETAIL USE AND
10 RESIDENTIAL USE.
11 (VI) EVIDENCE OF POTENTIAL PRIVATE AND PUBLIC
12 INVESTMENT IN THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
13 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
14 (VII) THE ROLE OF THE PROPOSED KEYSTONE OPPORTUNITY
15 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE IN
16 REGIONAL ECONOMIC AND COMMUNITY DEVELOPMENT.
17 (VIII) PLANS TO UTILIZE EXISTING RESOURCES FOR THE
18 ADMINISTRATION OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE
19 OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
20 (IX) ANY OTHER INFORMATION DEEMED APPROPRIATE BY THE
21 DEPARTMENT.
22 (3) A REPORT ON YOUTH AT RISK TO INCLUDE ISSUES RELATING
23 TO HEALTH, WELFARE AND EDUCATION.
24 (4) THE DURATION OF THE PROPOSED SUBZONES OR PROPOSED
25 EXPANSION SUBZONES. THE DURATION OF A SUBZONE MAY NOT EXCEED
26 15 YEARS. THE DURATION OF AN EXPANSION SUBZONE MAY NOT EXCEED
27 13 YEARS.
28 (5) A FORMAL, BINDING ORDINANCE OR RESOLUTION PASSED BY
29 EVERY POLITICAL SUBDIVISION IN WHICH THE PROPOSED SUBZONE OR
30 PROPOSED EXPANSION SUBZONE IS LOCATED THAT SPECIFICALLY
20030S0010B1026 - 74 -
1 PROVIDES FOR ALL LOCAL TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS
2 OR CREDITS FOR PERSONS AND BUSINESSES SET FORTH IN THE
3 KEYSTONE ACT.
4 (6) EVIDENCE THAT THE PROPOSED KEYSTONE OPPORTUNITY ZONE
5 OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE MEETS THE
6 REQUIRED CRITERIA UNDER SECTION 3516 (RELATING TO CRITERIA
7 FOR AUTHORIZATION OF KEYSTONE OPPORTUNITY ZONE).
8 (A.1) ENHANCEMENT APPLICATION.--ONE OR MORE POLITICAL
9 SUBDIVISIONS WITHIN AN EXISTING KEYSTONE OPPORTUNITY ZONE OR
10 KEYSTONE OPPORTUNITY EXPANSION ZONE, OR A DESIGNEE OF ONE OR
11 MORE POLITICAL SUBDIVISIONS WITHIN AN EXISTING KEYSTONE
12 OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE, MAY
13 APPLY TO THE DEPARTMENT TO DESIGNATE DETERIORATED PROPERTY
14 WITHIN THE POLITICAL SUBDIVISION OR PORTIONS OF THE POLITICAL
15 SUBDIVISION AS ENHANCEMENTS TO A SUBZONE OR AN EXPANSION
16 SUBZONE. THE APPLICATION MUST SATISFY THE REQUIREMENTS OF
17 SUBSECTION (A)(1), (2), (3), (5) AND (6).
18 (B) PARTICIPATION LIMITATION.--A POLITICAL SUBDIVISION MAY
19 NOT BE A PART OF MORE THAN ONE PROPOSED KEYSTONE OPPORTUNITY
20 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE. A PROPOSED
21 EXPANSION SUBZONE MAY NOT OVERLAP THE BOUNDARIES OF A SUBZONE.
22 (C) APPLICATION LIMITATION.--A POLITICAL SUBDIVISION MAY
23 SUBMIT ONLY ONE APPLICATION TO THE DEPARTMENT FOR AUTHORIZATION
24 AS A KEYSTONE OPPORTUNITY ZONE. A POLITICAL SUBDIVISION MAY
25 SUBMIT ONLY ONE APPLICATION TO THE DEPARTMENT FOR AUTHORIZATION
26 AS A KEYSTONE OPPORTUNITY EXPANSION ZONE. A POLITICAL
27 SUBDIVISION MAY SUBMIT ONLY ONE APPLICATION TO THE DEPARTMENT
28 FOR DESIGNATION OF ENHANCEMENTS TO EXISTING KEYSTONE OPPORTUNITY
29 ZONES AND KEYSTONE OPPORTUNITY EXPANSION ZONES. IF A POLITICAL
30 SUBDIVISION SEEKS TO ENHANCE ITS EXISTING KEYSTONE OPPORTUNITY
20030S0010B1026 - 75 -
1 ZONE UNDER SECTION 3511(F) (RELATING TO KEYSTONE OPPORTUNITY
2 ZONES) OR A KEYSTONE OPPORTUNITY EXPANSION ZONE UNDER SECTION
3 3512(E) (RELATING TO KEYSTONE OPPORTUNITY EXPANSION ZONES) AND
4 THE GOVERNOR HAS DESIGNATED AN IMPROVEMENT SUBZONE LOCATED
5 WITHIN THE POLITICAL SUBDIVISION UNDER SECTION 3513(B) (RELATING
6 TO KEYSTONE OPPORTUNITY IMPROVEMENT ZONES), THE POLITICAL
7 SUBDIVISION MUST SUBMIT ONE APPLICATION CONTAINING BOTH THE
8 REQUEST REQUIRED BY SECTION 3511(F) OR 3512(E) AND THE
9 APPLICATION REQUIRED BY SECTION 3513(C).
10 § 3515. REVIEW.
11 (A) ACTION OF DEPARTMENT.--THE DEPARTMENT, IN CONSULTATION
12 WITH THE DEPARTMENT OF REVENUE, SHALL REVIEW ALL COMPLETED
13 APPLICATIONS SUBMITTED UNDER THIS CHAPTER. AN APPLICATION FOR
14 AUTHORIZATION AS A KEYSTONE OPPORTUNITY ZONE AND DESIGNATION OF
15 SUBZONES MUST BE RECEIVED BY THE DEPARTMENT BY SEPTEMBER 30,
16 1998, IN ORDER TO BE CONSIDERED BY THE DEPARTMENT. AN
17 APPLICATION FOR AUTHORIZATION AS A KEYSTONE OPPORTUNITY
18 EXPANSION ZONE AND DESIGNATION OF EXPANSION SUBZONES MUST BE
19 RECEIVED BY THE DEPARTMENT BY FEBRUARY 28, 2001, IN ORDER TO BE
20 CONSIDERED BY THE DEPARTMENT. AN APPLICATION FOR ENHANCEMENT OF
21 AN EXISTING KEYSTONE OPPORTUNITY ZONE OR OF A KEYSTONE
22 OPPORTUNITY EXPANSION ZONE MUST BE RECEIVED BY THE DEPARTMENT BY
23 DECEMBER 31, 2003.
24 (B) PROCESS.--THE DEPARTMENT SHALL AUTHORIZE UP TO 12
25 KEYSTONE OPPORTUNITY ZONES FROM APPLICATIONS MEETING THE
26 CRITERIA IN SECTION 3516 (RELATING TO CRITERIA FOR AUTHORIZATION
27 OF KEYSTONE OPPORTUNITY ZONE), BASED UPON NEED AND LIKELIHOOD OF
28 SUCCESS. THE DEPARTMENT SHALL AUTHORIZE UP TO 12 KEYSTONE
29 OPPORTUNITY EXPANSION ZONES FROM APPLICATIONS MEETING THE
30 CRITERIA IN SECTION 3516, BASED UPON NEED AND LIKELIHOOD OF
20030S0010B1026 - 76 -
1 SUCCESS. ADDITIONALLY, THE DEPARTMENT SHALL NOT ALTER THE
2 GEOGRAPHIC BOUNDARIES OF A SUBZONE OR EXPANSION SUBZONE OR THE
3 DURATION OF A SUBZONE OR EXPANSION SUBZONE DESCRIBED IN AN
4 APPLICATION. THE DEPARTMENT SHALL DESIGNATE ADDITIONAL
5 ENHANCEMENTS TO EXISTING KEYSTONE OPPORTUNITY ZONES AND KEYSTONE
6 OPPORTUNITY EXPANSION ZONES FROM APPLICATIONS MEETING THE
7 CRITERIA IN SECTION 3516 BASED UPON NEED AND LIKELIHOOD OF
8 SUCCESS.
9 (C) AUTHORIZATIONS.--THE DEPARTMENT SHALL AUTHORIZE ALL
10 KEYSTONE OPPORTUNITY ZONES BY NOVEMBER 30, 1998. THE DEPARTMENT
11 SHALL AUTHORIZE ALL KEYSTONE OPPORTUNITY EXPANSION ZONES BY
12 MARCH 30, 2001. THE DEPARTMENT SHALL DESIGNATE ALL ENHANCEMENTS
13 TO EXISTING KEYSTONE OPPORTUNITY ZONES AND TO KEYSTONE
14 OPPORTUNITY EXPANSION ZONES BY JANUARY 31, 2004.
15 (D) EFFECTIVE DATE OF DESIGNATION.--THE DESIGNATION OF A
16 SUBZONE UNDER THIS CHAPTER SHALL TAKE EFFECT ON JANUARY 1, 1999.
17 THE DESIGNATION OF AN EXPANSION SUBZONE UNDER THIS CHAPTER SHALL
18 TAKE EFFECT ON JANUARY 1, 2001. THE DESIGNATION OF ENHANCEMENTS
19 TO EXISTING KEYSTONE OPPORTUNITY ZONES AND TO KEYSTONE
20 OPPORTUNITY EXPANSION ZONES UNDER THIS CHAPTER SHALL TAKE EFFECT
21 JANUARY 1, 2004.
22 (E) EXTENSION.--THE DEPARTMENT MAY EXTEND THE DEADLINE FOR
23 THE RECEIPT OF APPLICATIONS FOR KEYSTONE OPPORTUNITY ZONES UNTIL
24 DECEMBER 31, 1998, IF ALL 12 ZONES HAVE NOT BEEN AUTHORIZED AND
25 THE EXTENSION IS NECESSARY TO ALLOW ELIGIBLE POLITICAL
26 SUBDIVISIONS TO APPLY. THE DEPARTMENT SHALL AUTHORIZE ADDITIONAL
27 KEYSTONE OPPORTUNITY ZONES UNDER THIS SUBSECTION BY FEBRUARY 28,
28 1999. THE AUTHORIZATION SHALL TAKE EFFECT JANUARY 1, 1999; OR,
29 IF THE AUTHORIZATION OCCURS AFTER JANUARY 1, 1999, THAT
30 SUBSEQUENT AUTHORIZATION SHALL FOR ALL PURPOSES BE RETROACTIVE
20030S0010B1026 - 77 -
1 TO JANUARY 1, 1999. THE KEYSTONE OPPORTUNITY ZONE AUTHORIZATION
2 SHALL END AS PROVIDED IN SECTION 3511(B) (RELATING TO KEYSTONE
3 OPPORTUNITY ZONES).
4 § 3516. CRITERIA FOR AUTHORIZATION OF KEYSTONE OPPORTUNITY
5 ZONE.
6 (A) SPECIFIC CRITERIA.--IN ORDER TO QUALIFY FOR
7 AUTHORIZATION UNDER THIS CHAPTER, THE PROPOSED KEYSTONE
8 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE
9 MUST MEET AT LEAST TWO OF THE FOLLOWING CRITERIA:
10 (1) AT LEAST 20% OF THE POPULATION IS BELOW THE POVERTY
11 LEVEL.
12 (2) THE UNEMPLOYMENT RATE IS 1.25 TIMES THE STATEWIDE
13 AVERAGE.
14 (3) AT LEAST 20% OF ALL REAL PROPERTY WITHIN A FIVE-MILE
15 RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE, PROPOSED
16 KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED SUBZONE OR
17 PROPOSED EXPANSION SUBZONE IN A NONURBAN AREA IS DETERIORATED
18 OR UNDERUTILIZED.
19 (4) AT LEAST 20% OF ALL REAL PROPERTY WITHIN A ONE-MILE
20 RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE, PROPOSED
21 KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED SUBZONE OR
22 PROPOSED EXPANSION SUBZONE IN AN URBAN AREA IS DETERIORATED
23 OR UNDERUTILIZED.
24 (5) AT LEAST 20% OF ALL OCCUPIED HOUSING WITHIN A TWO-
25 MILE RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE,
26 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED
27 SUBZONE OR PROPOSED EXPANSION SUBZONE IN A NONURBAN AREA IS
28 DETERIORATED.
29 (6) AT LEAST 20% OF ALL OCCUPIED HOUSING WITHIN A ONE-
30 MILE RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE,
20030S0010B1026 - 78 -
1 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED
2 SUBZONE OR PROPOSED EXPANSION SUBZONE IN AN URBAN AREA IS
3 DETERIORATED.
4 (7) IN AN URBAN AREA, THE MEDIAN FAMILY INCOME IS 80% OR
5 LESS OF THE URBAN MEDIAN FAMILY INCOME FOR THAT METROPOLITAN
6 STATISTICAL AREA.
7 (8) IN AN AREA OTHER THAN AN URBAN AREA, THE MEDIAN
8 FAMILY INCOME IS 80% OR LESS OF THE STATEWIDE NONURBAN MEDIAN
9 FAMILY INCOME.
10 (9) THE POPULATION LOSS EXCEEDS 10% IN AN AREA THAT
11 INCLUDES THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED
12 KEYSTONE OPPORTUNITY EXPANSION ZONE AND ITS SURROUNDING AREA
13 BUT IS NOT LARGER THAN THE COUNTY OR COUNTIES IN WHICH THE
14 PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE
15 OPPORTUNITY EXPANSION ZONE IS LOCATED, BASED ON CENSUS DATA
16 FOR THE PERIOD BETWEEN 1980 AND 1990 OR CENSUS ESTIMATES
17 SINCE 1990 ESTABLISHING A PATTERN OF POPULATION LOSS.
18 (10) THE POLITICAL SUBDIVISION IN WHICH THE PROPOSED
19 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
20 EXPANSION ZONE IS LOCATED HAS EXPERIENCED A SUDDEN OR SEVERE
21 JOB LOSS.
22 (11) AT LEAST 33% OF THE REAL PROPERTY IN A PROPOSED
23 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
24 EXPANSION ZONE IN A NONURBAN AREA WOULD OTHERWISE REMAIN
25 UNDERDEVELOPED OR NONPERFORMING DUE TO PHYSICAL
26 CHARACTERISTICS OF THE REAL PROPERTY.
27 (12) THE AREA HAS SUBSTANTIAL REAL PROPERTY WITH
28 ADEQUATE INFRASTRUCTURE AND ENERGY TO SUPPORT NEW OR EXPANDED
29 DEVELOPMENT.
30 (B) ADDITIONAL CRITERIA.--IN ADDITION TO THE REQUIRED
20030S0010B1026 - 79 -
1 CRITERIA UNDER SUBSECTION (A), THE DEPARTMENT SHALL CONSIDER THE
2 FOLLOWING CRITERIA:
3 (1) EVIDENCE OF DISTRESS, INCLUDING UNEMPLOYMENT,
4 PERCENTAGE OF POPULATION BELOW 80% OF THE STATE MEDIAN
5 INCOME, POVERTY RATE, DETERIORATED PROPERTY AND ADVERSE
6 ECONOMIC AND SOCIOECONOMIC CONDITIONS, IN THE PROPOSED
7 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
8 EXPANSION ZONE.
9 (2) THE STRENGTH AND VIABILITY OF THE PROPOSED GOALS,
10 OBJECTIVES AND STRATEGIES, IN THE OPPORTUNITY PLAN.
11 (3) WHETHER THE OPPORTUNITY PLAN IS CREATIVE AND
12 INNOVATIVE IN COMPARISON TO OTHER APPLICATIONS.
13 (4) LOCAL PUBLIC AND PRIVATE COMMITMENT TO THE
14 DEVELOPMENT OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
15 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE AND THE
16 POTENTIAL COOPERATION OF SURROUNDING COMMUNITIES.
17 (5) EXISTING RESOURCES AVAILABLE TO THE PROPOSED
18 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
19 EXPANSION ZONE.
20 (6) HOW KEYSTONE OPPORTUNITY ZONE OR KEYSTONE
21 OPPORTUNITY EXPANSION ZONE AUTHORIZATION OR ECONOMIC
22 REDEVELOPMENT RELATES TO OTHER CURRENT ECONOMIC AND COMMUNITY
23 DEVELOPMENT PROJECTS AND TO REGIONAL INITIATIVES OR PROGRAMS.
24 (7) HOW THE LOCAL REGULATORY BURDEN WILL BE EASED FOR
25 BUSINESSES OPERATING IN THE PROPOSED KEYSTONE OPPORTUNITY
26 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
27 (8) PROPOSALS TO IMPLEMENT EDUCATIONAL OPPORTUNITIES AND
28 IMPROVEMENTS.
29 (9) CRIME STATISTICS AND PROPOSALS TO IMPLEMENT LOCAL
30 CRIME REDUCTION MEASURES.
20030S0010B1026 - 80 -
1 (10) PROPOSALS TO ESTABLISH AND LINK JOB CREATION AND
2 JOB TRAINING.
3 (C) TAX EXEMPTION ORDINANCES.--AN AREA SHALL NOT BE
4 AUTHORIZED AS A KEYSTONE OPPORTUNITY ZONE OR A KEYSTONE
5 OPPORTUNITY EXPANSION ZONE UNLESS, AS A PART OF THE APPLICATION,
6 EACH POLITICAL SUBDIVISION IN WHICH THE PROPOSED SUBZONE OR
7 PROPOSED EXPANSION SUBZONE IS TO BE LOCATED ADOPTS AND PROVIDES
8 A COPY OF AN ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM
9 THE GOVERNING BODY OF EACH POLITICAL SUBDIVISION THAT EXEMPTS OR
10 PROVIDES DEDUCTIONS, ABATEMENTS OR CREDITS TO QUALIFIED PERSONS
11 AND QUALIFIED BUSINESSES FROM LOCAL TAXES UPON DESIGNATION OF
12 THE AREA AS A SUBZONE OR EXPANSION SUBZONE. ALL APPROPRIATE
13 ORDINANCES AND RESOLUTIONS MUST BE EFFECTIVE BY JANUARY 1, 1999,
14 IF DESIGNATION AS A SUBZONE IS GRANTED. ALL APPROPRIATE
15 ORDINANCES AND RESOLUTIONS MUST BE EFFECTIVE ON JANUARY 1, 2001,
16 IF DESIGNATION AS AN EXPANSION SUBZONE IS GRANTED. ALL
17 APPROPRIATE ORDINANCES AND RESOLUTIONS MUST BE EFFECTIVE JANUARY
18 1, 2004, IF DESIGNATION OF ENHANCEMENTS TO AN EXISTING KEYSTONE
19 OPPORTUNITY ZONE OR TO A KEYSTONE OPPORTUNITY EXPANSION ZONE ARE
20 GRANTED. EXCEPT AS PROVIDED IN SECTION 3521 (RELATING TO
21 DECERTIFICATION), THE RESOLUTION, ORDINANCE OR OTHER REQUIRED
22 ACTION SHALL BE BINDING AND NONREVOCABLE ON THE QUALIFIED
23 POLITICAL SUBDIVISIONS FOR THE DURATION OF THE OPPORTUNITY PLAN.
24 (D) URBAN AREAS.--THE DEPARTMENT SHALL PROMULGATE GUIDELINES
25 THAT INCLUDE THE DEFINITION OF "URBAN AREA" FOR THE PURPOSES OF
26 RECEIVING APPLICATIONS FOR AUTHORIZATION AS A KEYSTONE
27 OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE.
28 § 3517. ZONE LIMITATIONS.
29 THE DEPARTMENT SHALL NOT AUTHORIZE MORE THAN 12 KEYSTONE
30 OPPORTUNITY ZONES WITHIN THIS COMMONWEALTH. NO SUBZONE SHALL
20030S0010B1026 - 81 -
1 ENCOMPASS AN ENTIRE POLITICAL SUBDIVISION. THE DEPARTMENT SHALL
2 NOT AUTHORIZE MORE THAN 12 KEYSTONE OPPORTUNITY EXPANSION ZONES
3 WITHIN THIS COMMONWEALTH. NO EXPANSION SUBZONES SHALL ENCOMPASS
4 AN ENTIRE POLITICAL SUBDIVISION.
5 § 3518. RESIDENCY.
6 IN ORDER TO QUALIFY EACH YEAR FOR THE TAX EXEMPTIONS,
7 DEDUCTIONS, ABATEMENTS OR CREDITS UNDER CHAPTERS 5 AND 7 OF THE
8 KEYSTONE ACT, A PERSON MUST BE DOMICILED AND MUST RESIDE IN A
9 SUBZONE OR EXPANSION SUBZONE FOR A PERIOD OF 184 CONSECUTIVE
10 DAYS DURING EACH TAXABLE YEAR, WHICH MAY BEGIN ON THE DATE OF
11 DESIGNATION BY THE DEPARTMENT OR ON THE DATE THE PERSON FIRST
12 RESIDES WITHIN THE SUBZONE OR EXPANSION SUBZONE.
13 § 3519. QUALIFIED BUSINESSES.
14 (A) QUALIFICATIONS.--IN ORDER TO QUALIFY EACH YEAR FOR THE
15 TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS UNDER CHAPTERS
16 5 AND 7 OF THE KEYSTONE ACT, A BUSINESS MUST OWN OR LEASE REAL
17 PROPERTY IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE
18 FROM WHICH THE BUSINESS ACTIVELY CONDUCTS A TRADE, PROFESSION OR
19 BUSINESS. THE QUALIFIED BUSINESS MUST RECEIVE CERTIFICATION FROM
20 THE DEPARTMENT THAT THE BUSINESS IS LOCATED AND IS IN THE ACTIVE
21 CONDUCT OF A TRADE, PROFESSION OR BUSINESS, WITHIN THE SUBZONE,
22 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE. THE BUSINESS MUST
23 OBTAIN ANNUAL RENEWAL OF THE CERTIFICATION FROM THE DEPARTMENT
24 TO CONTINUE TO QUALIFY UNDER THIS SECTION.
25 (B) RELOCATION.--
26 (1) ANY BUSINESS THAT RELOCATES FROM OUTSIDE A SUBZONE,
27 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE INTO A SUBZONE,
28 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL NOT RECEIVE
29 ANY OF THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET
30 FORTH IN THE KEYSTONE ACT UNLESS THAT BUSINESS EITHER:
20030S0010B1026 - 82 -
1 (I) INCREASES FULL-TIME EMPLOYMENT BY AT LEAST 20%
2 IN THE FIRST FULL YEAR OF OPERATION WITHIN THE SUBZONE,
3 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE; OR
4 (II) MAKES A CAPITAL INVESTMENT IN THE PROPERTY
5 LOCATED WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR
6 EXPANSION SUBZONE EQUIVALENT TO 10% OF THE GROSS REVENUES
7 OF THAT BUSINESS IN THE IMMEDIATELY PRECEDING CALENDAR OR
8 FISCAL YEAR.
9 (2) THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT
10 OF REVENUE, MAY WAIVE OR MODIFY THE REQUIREMENTS OF THIS
11 SUBSECTION, AS APPROPRIATE.
12 § 3520. FORMS.
13 (A) APPLICATION FORMS.--APPLICATIONS FOR AUTHORIZATION AS A
14 KEYSTONE OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE
15 MUST BE ON FORMS PRESCRIBED BY THE DEPARTMENT.
16 (B) DEPARTMENT ASSISTANCE.--THE DEPARTMENT SHALL ASSIST
17 POLITICAL SUBDIVISIONS IN USING THE INTERNET AS A TOOL FOR
18 ENCOURAGING NEW BUSINESS DEVELOPMENT, INCLUDING ASSISTING
19 POLITICAL SUBDIVISIONS IN MAKING AVAILABLE VIA THE INTERNET
20 INFORMATION, APPLICATIONS AND OTHER FORMS NECESSARY UNDER THIS
21 CHAPTER OR THE KEYSTONE ACT.
22 § 3521. DECERTIFICATION.
23 (A) APPLICATION.--ONE OR MORE POLITICAL SUBDIVISIONS, OR A
24 DESIGNEE OF ONE OR MORE POLITICAL SUBDIVISIONS, MAY APPLY TO THE
25 DEPARTMENT TO DECERTIFY AND REMOVE THE DESIGNATION OF
26 DETERIORATED PROPERTY AS PART OF A SUBZONE, IMPROVEMENT SUBZONE
27 OR EXPANSION SUBZONE. THE APPLICATION MUST CONTAIN ALL OF THE
28 FOLLOWING:
29 (1) AN IDENTIFICATION OF THE PROPERTY TO BE REMOVED.
30 (2) A COPY OF AN AGREEMENT WHICH WAS SUPPORTED BY
20030S0010B1026 - 83 -
1 CONSIDERATION IN WHICH EACH ENTITY WHICH POSSESSES AN
2 INTEREST IN THE REAL PROPERTY TO BE REMOVED, INCLUDING ANY
3 HOLDER OF AN OPTION EITHER TO PURCHASE THE REAL ESTATE OR TO
4 ENTER INTO A GROUND LEASE OF THE REAL ESTATE OR ANY OTHER
5 LEASEHOLD INTEREST IN THE REAL ESTATE, WAIVES THE PARTY'S
6 RIGHT TO ANY EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
7 GRANTED BY THE KEYSTONE ACT.
8 (3) A COPY OF A BINDING ORDINANCE, RESOLUTION OR OTHER
9 GOVERNING DOCUMENT PASSED BY THE POLITICAL SUBDIVISION
10 REMOVING ANY EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
11 SET FORTH IN CHAPTER 7 OF THE KEYSTONE ACT, EFFECTIVE UPON
12 DECERTIFICATION BY THE DEPARTMENT.
13 (B) PROCESS.--THE DEPARTMENT MAY GRANT THE REQUEST TO
14 DECERTIFY AND REMOVE THE PROPERTY IF COMPLETED APPLICATIONS HAVE
15 BEEN SUBMITTED BY ALL QUALIFIED POLITICAL SUBDIVISIONS IN WHICH
16 THE PROPERTY IS LOCATED.
17 CHAPTER 37
18 KEYSTONE INNOVATION ZONES
19 SEC.
20 3701. SCOPE OF CHAPTER.
21 3702. DEFINITIONS.
22 3703. KEYSTONE INNOVATION ZONES.
23 3704. ASSISTANCE.
24 3705. EXPANSION SUBZONE DESIGNATION.
25 § 3701. SCOPE OF CHAPTER.
26 THIS CHAPTER DEALS WITH KEYSTONE INNOVATION ZONES.
27 § 3702. DEFINITIONS.
28 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
29 SHALL HAVE THEN MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS
30 THE CONTEXT CLEARLY INDICATES OTHERWISE:
20030S0010B1026 - 84 -
1 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
2 DEVELOPMENT OF THE COMMONWEALTH.
3 "ELIGIBLE PROPERTY." REAL PROPERTY WHICH IS LOCATED WITHIN A
4 FIVE-MILE RADIUS OF AN INSTITUTION OF HIGHER EDUCATION IN A
5 RURAL SETTING AND WHICH IS LOCATED WITHIN A ONE-MILE RADIUS OF
6 AN INSTITUTION OF HIGHER EDUCATION IN AN URBAN SETTING.
7 "INSTITUTION OF HIGHER EDUCATION." A PUBLIC OR PRIVATE
8 INSTITUTION WITHIN THIS COMMONWEALTH AUTHORIZED BY THE
9 DEPARTMENT OF EDUCATION TO GRANT AN ASSOCIATE DEGREE OR HIGHER
10 ACADEMIC DEGREE.
11 "KEYSTONE INNOVATION ZONE." A CLEARLY DEFINED GEOGRAPHIC
12 AREA COMPRISED OF ELIGIBLE PROPERTY DESIGNATED BY THE DEPARTMENT
13 OF COMMUNITY AND ECONOMIC DEVELOPMENT.
14 "QUALIFIED EMPLOYER." AN ENTITY THAT MEETS ALL OF THE
15 FOLLOWING:
16 (1) IS LOCATED WITHIN A KEYSTONE INNOVATION ZONE.
17 (2) EMPLOYS THREE OR MORE INDIVIDUALS WITHIN THE
18 KEYSTONE INNOVATION ZONE.
19 (3) HAS BEEN IN OPERATION SEVEN YEARS OR LESS.
20 "SECRETARY." THE SECRETARY OF COMMUNITY AND ECONOMIC
21 DEVELOPMENT OF THE COMMONWEALTH.
22 § 3703. KEYSTONE INNOVATION ZONES.
23 (A) ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED WITHIN THE
24 DEPARTMENT A PROGRAM TO BE KNOWN AS THE KEYSTONE INNOVATION
25 ZONES PROGRAM. THE PROGRAM SHALL PROVIDE ECONOMIC ASSISTANCE IN
26 AREAS SURROUNDING INSTITUTIONS OF HIGHER EDUCATION.
27 (B) APPLICATION.--ON OR BEFORE JANUARY 1, 2005, AN
28 INSTITUTION OF HIGHER EDUCATION MAY SUBMIT TO THE DEPARTMENT AN
29 APPLICATION TO ESTABLISH A KEYSTONE INNOVATION ZONE. THE
30 APPLICATION SHALL BE ON A FORM PROVIDED BY THE DEPARTMENT AND
20030S0010B1026 - 85 -
1 SHALL INCLUDE ALL OF THE FOLLOWING:
2 (1) A LIST OF WHICH ELIGIBLE PROPERTIES ARE TO BE
3 INCLUDED IN THE KEYSTONE INNOVATION ZONE.
4 (2) THE NAME AND ADDRESS OF THE KEYSTONE INNOVATION
5 ZONE.
6 (3) THE NAME AND ADDRESS OF THE COORDINATOR OR EXECUTIVE
7 DIRECTOR OF THE KEYSTONE INNOVATION ZONE.
8 (4) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
9 (C) REVIEW AND DESIGNATION.--THE DEPARTMENT SHALL REVIEW THE
10 APPLICATION. UPON BEING SATISFIED THAT THE APPLICATION IS
11 COMPLETE AND ACCURATE, THE DEPARTMENT MAY APPROVE THE
12 APPLICATION. IF THE DEPARTMENT APPROVES THE APPLICATION, THE
13 SECRETARY SHALL DESIGNATE THE PROPERTY AS A KEYSTONE INNOVATION
14 ZONE.
15 § 3704. ASSISTANCE.
16 (A) EXISTING PROGRAMS.--A QUALIFIED EMPLOYER SHALL BE GIVEN
17 PRIORITY CONSIDERATION IN APPLYING FOR ASSISTANCE UNDER ANY OF
18 THE PROGRAMS ESTABLISHED BY:
19 (1) THIS PART AND PART IV (RELATING TO ECONOMIC
20 DEVELOPMENT FINANCING).
21 (2) THE ACT OF MAY 17, 1956 (1955 P.L.1609, NO.537),
22 KNOWN AS THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY
23 ACT.
24 (3) THE ACT OF AUGUST 23, 1967 (P.L.251, NO.102), KNOWN
25 AS THE ECONOMIC DEVELOPMENT FINANCING LAW.
26 (4) THE ACT OF JUNE 22, 2001 (P.L.569, NO.38), KNOWN AS
27 THE BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY ACT.
28 (5) THE ACT OF JUNE 26, 2001 (P.L.755, NO.77), KNOWN AS
29 THE TOBACCO SETTLEMENT ACT.
30 (B) LOANS.--A QUALIFIED EMPLOYER WITH A PROJECT APPROVED FOR
20030S0010B1026 - 86 -
1 FINANCING UNDER THIS PART, PART IV OR BY THE PENNSYLVANIA
2 INDUSTRIAL DEVELOPMENT AUTHORITY SHALL RECEIVE THE LOWEST
3 INTEREST RATE EXTENDED TO BORROWERS.
4 (C) GRANTS.--THE DEPARTMENT MAY PROVIDE A ONE-TIME $250,000
5 GRANT TO A KEYSTONE INNOVATION ZONE TO ESTABLISH AND IMPLEMENT
6 THE ZONE. THE GRANT SHALL BE DRAWN DOWN AS NEEDED OVER A PERIOD
7 NOT TO EXCEED THE FIRST FIVE YEARS OF AUTHORIZATION AS A
8 KEYSTONE INNOVATION ZONE. GRANT RECIPIENTS SHALL COMPLY WITH THE
9 PROVISIONS OF THE GRANT.
10 § 3705. EXPANSION SUBZONE DESIGNATION.
11 (A) ESTABLISHMENT.--NOTWITHSTANDING SECTIONS 301.1, 303 AND
12 304 OF THE ACT OF OCTOBER 6, 1998 (P.L 705, NO.92), KNOWN AS THE
13 KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION
14 ZONE ACT, AND WITHIN ONE YEAR OF BEING DESIGNATED A KEYSTONE
15 INNOVATION ZONE UNDER THIS CHAPTER, A KEYSTONE INNOVATION ZONE
16 MAY APPLY TO THE DEPARTMENT TO BE DESIGNATED AS AN EXPANSION
17 SUBZONE UNDER THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE
18 OPPORTUNITY EXPANSION ZONE ACT. THE APPLICATION SHALL BE ON A
19 FORM PROVIDED BY THE DEPARTMENT. IN ADDITION TO THE COMPLETED
20 APPLICATION, THE KEYSTONE INNOVATION ZONE SHALL SUBMIT A COPY OF
21 AN ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM THE
22 GOVERNING BODY OF EACH OF THE POLITICAL SUBDIVISIONS LOCATED
23 WITHIN THE KEYSTONE INNOVATION ZONE WHICH EXEMPTS OR PROVIDES
24 THE DEDUCTIONS, ABATEMENTS OR CREDITS REQUIRED BY CHAPTER 7 OF
25 THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION
26 ZONE ACT TO QUALIFIED PERSONS AND QUALIFIED BUSINESSES WITHIN
27 THE KEYSTONE INNOVATION ZONE AS THOSE TERMS ARE DEFINED WITHIN
28 THAT ACT. THE DEPARTMENT MAY APPROVE THE APPLICATION AND
29 DESIGNATE THE PROPERTY LOCATED WITHIN THE KEYSTONE INNOVATION
30 ZONE AS AN EXPANSION SUBZONE FOR THE PERIOD BEGINNING ON THE
20030S0010B1026 - 87 -
1 DATE OF DESIGNATION AND ENDING ON DECEMBER 31, 2013. QUALIFIED
2 PERSONS AND QUALIFIED BUSINESSES WITHIN THE EXPANSION SUBZONE
3 SHALL BE ENTITLED TO THE STATE TAX EXEMPTIONS, DEDUCTIONS,
4 ABATEMENTS OR CREDITS SET FORTH IN CHAPTER 5 OF THE KEYSTONE
5 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT AND
6 THE LOCAL TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET
7 FORTH IN CHAPTER 7 OF THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE
8 OPPORTUNITY EXPANSION ZONE ACT FOR THE PERIOD FOR WHICH THE
9 EXPANSION SUBZONE HAS BEEN DESIGNATED.
10 (B) CONSTRUCTION.--A KEYSTONE INNOVATION ZONE DESIGNATED AN
11 EXPANSION SUBZONE UNDER THIS SECTION SHALL BE SUBJECT TO THE
12 REQUIREMENTS OF THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE
13 OPPORTUNITY EXPANSION ZONE ACT.
14 PART IV
15 ECONOMIC DEVELOPMENT FINANCING
16 CHAPTER
17 41. PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY (RESERVED)
18 43. PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY
19 45. LOCAL ECONOMIC DEVELOPMENT FINANCING AUTHORITY
20 (RESERVED)
21 47. PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY
22 (RESERVED)
23 CHAPTER 41
24 PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY
25 (RESERVED)
26 CHAPTER 43
27 PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY
28 SUBCHAPTER
29 A. GENERAL PROVISIONS
30 B. STRUCTURE AND POWERS
20030S0010B1026 - 88 -
1 C. BONDS
2 D. PROGRAMS
3 E. MISCELLANEOUS
4 SUBCHAPTER A
5 GENERAL PROVISIONS
6 SEC.
7 4301. SCOPE OF CHAPTER.
8 4302. DEFINITIONS.
9 § 4301. SCOPE OF CHAPTER.
10 THIS CHAPTER RELATES TO THE PENNSYLVANIA ECONOMIC DEVELOPMENT
11 FINANCING AUTHORITY.
12 § 4302. DEFINITIONS.
13 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
14 SHALL HAVE THE MEANING GIVEN TO THEM IN THIS SECTION UNLESS THE
15 CONTEXT CLEARLY INDICATES OTHERWISE:
16 "ACQUISITION." THE ACT OF ACQUIRING OR EQUIPPING A PROJECT.
17 THE TERM INCLUDES INSTALLATION OF EQUIPMENT.
18 "AGRICULTURAL PRODUCTION." THE RAISING, PREPARING OR
19 MARKETING OF CROPS, LIVESTOCK OR OTHER RELATED FARM PRODUCTS.
20 "APPLICANT." A PERSON THAT APPLIES FOR FINANCIAL ASSISTANCE
21 IN ACCORDANCE WITH THIS CHAPTER.
22 "AUTHORITY." THE PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING
23 AUTHORITY CREATED IN SECTION 4303 (RELATING TO AUTHORITY).
24 "BOARD." THE BOARD OF PENNSYLVANIA ECONOMIC DEVELOPMENT
25 FINANCING AUTHORITY CREATED IN ACCORDANCE WITH SECTION 4304
26 (RELATING TO BOARD).
27 "BUSINESS SITE INFRASTRUCTURE." TANGIBLE PERSONAL PROPERTY
28 WHICH IS PURCHASED AND USED TO CONSTRUCT UTILITY SERVICES AND TO
29 PROVIDE ACCESS TO A LOCATION WITHIN THE COMMONWEALTH TO BE USED
30 BY A BUSINESS. THE TERM INCLUDES ELECTRIC LINES, WATER
20030S0010B1026 - 89 -
1 PIPELINES, WASTEWATER FACILITIES AND PIPELINES,
2 TELECOMMUNICATIONS LINES, NATURAL GAS PIPELINES AND ROADS. THE
3 TERM DOES NOT INCLUDE WORKING CAPITAL, BUILDINGS OR LAND EXCEPT
4 THOSE ACQUIRED TO PROVIDE UTILITIES OR ACCESS TO THE LOCATION.
5 "COMMITTEE." THE PROJECT REVIEW COMMITTEE ESTABLISHED IN
6 SECTION 4303 (RELATING TO AUTHORITY).
7 "CONSTRUCTION." THE ACT OF ERECTING, RECONSTRUCTING,
8 EXPANDING, EXTENDING, IMPROVING, REHABILITATING, REMODELING,
9 RENOVATING OR REPAIRING A BUILDING OR STRUCTURE EMPLOYED IN OR
10 RELATED TO A PROJECT.
11 "COST OF THE PROJECT." AN EXPENSE ASSOCIATED WITH A PROJECT.
12 THE TERM INCLUDES ALL OF THE FOLLOWING:
13 (1) COSTS AND EXPENSES OF ACQUISITION OF INTERESTS IN
14 REAL ESTATE, BUILDINGS, STRUCTURES, EQUIPMENT, FURNISHINGS
15 AND OTHER TANGIBLE OR INTANGIBLE PROPERTY COMPRISING THE
16 PROJECT.
17 (2) COSTS AND EXPENSES OF CONSTRUCTION OF BUILDINGS AND
18 STRUCTURES.
19 (3) COSTS AND EXPENSES OF DEMOLISHING, REMOVING OR
20 RELOCATING ANY BUILDINGS OR STRUCTURES ON LANDS ACQUIRED OR
21 TO BE ACQUIRED, INCLUDING THE COST OR EXPENSE OF ACQUIRING
22 ANY LANDS ONTO WHICH BUILDINGS OR STRUCTURES MAY BE MOVED OR
23 RELOCATED.
24 (4) FINANCING CHARGES AND OTHER COSTS AND EXPENSES OF
25 FINANCING AND ISSUING BONDS.
26 (5) INTEREST EXPENSES PRIOR TO AND DURING CONSTRUCTION
27 AND FOR A PERIOD OF 12 MONTHS AFTER CONSTRUCTION IS
28 COMPLETED, INCLUDING ANY RESERVES FOR INTEREST AND SUCH OTHER
29 EXPENSES AS MAY BE NECESSARY OR INCIDENTAL TO THE
30 DEVELOPMENT, IMPLEMENTATION OR USE OF THE PROJECT AND
20030S0010B1026 - 90 -
1 PLACEMENT OF THE SAME IN OPERATION.
2 (6) COSTS AND EXPENSES OF ADMINISTRATIVE EXPENSES AND
3 PROFESSIONAL SERVICES, INCLUDING THE COSTS OF ENGINEERING,
4 FINANCIAL SERVICES, ACCOUNTING AND LEGAL SERVICES.
5 (7) COSTS AND EXPENSES ASSOCIATED WITH THE PREPARATION
6 OF PLANS, SPECIFICATIONS, STUDIES, SURVEYS NECESSARY OR
7 INCIDENTAL TO DETERMINING THE FEASIBILITY OR PRACTICABILITY
8 OF CONSTRUCTING THE PROJECT.
9 (8) OPERATING CAPITAL OR OTHER CAPITAL NEEDS RELATED TO
10 THE PROJECT SUBJECT TO LIMITATION BY THE AUTHORITY.
11 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
12 DEVELOPMENT OF THE COMMONWEALTH.
13 "ECONOMIC ENHANCEMENT FUND." THE ECONOMIC ENHANCEMENT FUND
14 ESTABLISHED IN 72 PA.C.S. § 7203 (RELATING TO ESTABLISHMENT).
15 "FEDERAL AGENCY." THE PRESIDENT OF THE UNITED STATES OF
16 AMERICA; THE CONGRESS AND ANY DEPARTMENT, AGENCY OR
17 INSTRUMENTALITY OF THE GOVERNMENT OF THE UNITED STATES OF
18 AMERICA.
19 "INFRASTRUCTURE." TANGIBLE PERSONAL PROPERTY WHICH IS
20 PURCHASED AND USED IN CREATION OR PROVISION OF GOODS OR
21 SERVICES. THE TERM DOES NOT INCLUDE WORKING CAPITAL, BUILDINGS,
22 STRUCTURES OR LAND.
23 "INTERAGENCY PROJECT." A PROJECT WHICH MEETS THE DEFINITION
24 OF PROJECT UNDER THE PROVISIONS OF THE ACT OF MARCH 1, 1988
25 (P.L.82, NO.16), KNOWN AS THE PENNSYLVANIA INFRASTRUCTURE
26 INVESTMENT AUTHORITY ACT.
27 "LOCAL ECONOMIC DEVELOPMENT AGENCY." AN ENTITY CERTIFIED AS
28 AN INDUSTRIAL DEVELOPMENT AGENCY UNDER THE ACT OF MAY 17, 1956
29 (1955 P.L.1609, NO.537), KNOWN AS THE PENNSYLVANIA INDUSTRIAL
30 DEVELOPMENT AUTHORITY ACT.
20030S0010B1026 - 91 -
1 "LOCAL ECONOMIC DEVELOPMENT FINANCING AUTHORITY." AN ENTITY
2 CREATED UNDER THE ACT OF AUGUST 23, 1967 (P.L.251, NO.102),
3 KNOWN AS THE ECONOMIC DEVELOPMENT FINANCING LAW.
4 "MANUFACTURER." AN ENTITY WHICH IS ENGAGED IN THE GIVING OF
5 NEW SHAPES, NEW QUALITIES OR NEW COMBINATIONS TO MATTER BY THE
6 APPLICATION OF SKILL AND LABOR.
7 "MEDICAL FACILITY." A PRIVATE ENTITY LICENSED AS A MEDICAL
8 FACILITY UNDER THE ACT OF JUNE 13, 1967 (P.L.31, NO.21), KNOWN
9 AS THE PUBLIC WELFARE CODE, OR UNDER THE ACT OF JULY 19, 1979
10 (P.L.130, NO.48), KNOWN AS THE HEALTH CARE FACILITIES ACT.
11 "MEDICAL INFRASTRUCTURE." TANGIBLE PERSONAL PROPERTY WHICH
12 IS PURCHASED AND USED BY A MEDICAL FACILITY IN PROVIDING PATIENT
13 CARE. THE TERM DOES NOT INCLUDE WORKING CAPITAL, BUILDINGS,
14 STRUCTURES OR LAND.
15 "MUNICIPAL AUTHORITY." A PUBLIC AUTHORITY CREATED UNDER 53
16 PA.C.S. CH. 56 (RELATING TO MUNICIPAL AUTHORITIES) OR UNDER THE
17 FORMER ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE
18 MUNICIPALITY AUTHORITIES ACT OF 1945.
19 "PROJECT." AN ACTIVITY WHICH INCREASES ECONOMIC ACTIVITY
20 WITHIN THIS COMMONWEALTH. THE TERM INCLUDES THE ACQUISITION OF
21 REAL OR PERSONAL PROPERTY, WHETHER TANGIBLE OR INTANGIBLE.
22 "PROJECT USER." A PERSON THAT OWNS, LEASES OR USES ALL OR
23 ANY PART OF A PROJECT.
24 "WATER AND WASTEWATER INFRASTRUCTURE." REAL PROPERTY OR
25 TANGIBLE PERSONAL PROPERTY WHICH IS PART OF A PUBLICLY OWNED
26 FACILITY OR SYSTEM:
27 (1) FOR THE COLLECTION, TREATMENT OR DISPOSAL OF SEWAGE
28 AND WASTEWATER, INCLUDING INDUSTRIAL WASTE; OR
29 (2) FOR THE SUPPLY, TREATMENT, STORAGE OR DISTRIBUTION
30 OF DRINKING WATER.
20030S0010B1026 - 92 -
1 SUBCHAPTER B
2 STRUCTURE AND POWERS
3 SEC.
4 4303. AUTHORITY.
5 4304. BOARD.
6 4305. POWERS AND DUTIES.
7 § 4303. AUTHORITY.
8 (A) ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED A PUBLIC
9 AUTHORITY TO BE KNOWN AS THE PENNSYLVANIA ECONOMIC DEVELOPMENT
10 FINANCING AUTHORITY. THE AUTHORITY SHALL BE AN INSTRUMENTALITY
11 OF THE COMMONWEALTH AND A BODY CORPORATE AND POLITIC WHICH SHALL
12 ASSIST PERSONS IN FUNDING INDUSTRIAL AND COMMERCIAL DEVELOPMENT
13 WITHIN THIS COMMONWEALTH.
14 (B) GOVERNANCE.--THE POWERS AND DUTIES OF THE AUTHORITY
15 SHALL BE EXERCISED BY A BOARD.
16 (C) COMMITTEE.--THERE IS HEREBY ESTABLISHED A COMMITTEE TO
17 BE KNOWN AS THE PROJECT REVIEW COMMITTEE. THE COMMITTEE SHALL
18 REVIEW AND RECOMMEND CERTAIN PROJECTS TO THE BOARD. THE
19 COMMITTEE SHALL BE COMPOSED OF THE FOLLOWING FIVE MEMBERS:
20 (1) THE GOVERNOR OR THE SECRETARY OF THE BUDGET.
21 (2) THE MAJORITY LEADER OF THE SENATE, OR A DESIGNEE.
22 (3) THE MINORITY LEADER OF THE SENATE, OR A DESIGNEE.
23 (4) THE MAJORITY LEADER OF THE HOUSE OF REPRESENTATIVES,
24 OR A DESIGNEE.
25 (5) THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES,
26 OR A DESIGNEE.
27 THE GOVERNOR OR THE SECRETARY OF THE BUDGET SHALL SERVE AS
28 CHAIRPERSON. THE COMMITTEE SHALL MEET AT THE CALL OF THE
29 CHAIRPERSON. FOUR MEMBERS SHALL CONSTITUTE A QUORUM, AND THE
30 CONSENT OF FOUR MEMBERS OF THE COMMITTEE SHALL BE REQUIRED TO
20030S0010B1026 - 93 -
1 AWARD A GRANT OR RECOMMEND A LOAN FOR A PROJECT.
2 (D) REVENUES.--EXPENSES OF THE AUTHORITY SHALL BE PAID FROM
3 ASSETS OR INCOME OF THE AUTHORITY. EXCEPT AS PROVIDED IN THIS
4 CHAPTER, THE COMMONWEALTH SHALL NOT BE RESPONSIBLE FOR FUNDING
5 THE ANNUAL BUDGET OF THE AUTHORITY.
6 (E) FISCAL YEAR.--THE FISCAL YEAR OF THE AUTHORITY SHALL BE
7 THE SAME AS THE FISCAL YEAR OF THE COMMONWEALTH.
8 (F) AUDIT.--THE AUTHORITY SHALL CONDUCT AN INDEPENDENT AUDIT
9 OF ITS ACCOUNTS AND RECORDS ANNUALLY.
10 (G) GENERAL ASSEMBLY REVIEW.--
11 (1) THE APPROPRIATIONS COMMITTEE OF THE SENATE AND THE
12 APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES
13 SHALL HAVE THE RIGHT AT ANY TIME TO EXAMINE THE BOOKS,
14 ACCOUNTS AND RECORDS OF THE AUTHORITY.
15 (2) THE AUTHORITY SHALL FILE AN ANNUAL REPORT WITH THE
16 APPROPRIATIONS COMMITTEE OF THE SENATE AND THE APPROPRIATIONS
17 COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE REPORT SHALL
18 INCLUDE ALL OF THE FOLLOWING:
19 (I) A COPY OF THE AUTHORITY'S BUDGET.
20 (II) THE TOTAL AMOUNT OF DEBT SERVICE TO BECOME DUE
21 ON AUTHORITY BONDS FOR THE ENSUING FISCAL YEAR, INCLUDING
22 PAYMENTS OF INTEREST AND PRINCIPAL, MATURITY VALUE OR
23 SINKING FUND PAYMENTS.
24 (III) THE AMOUNT, IF ANY, DUE TO ANY PROVIDER OF ANY
25 CREDIT OR LIQUIDITY FACILITY REPRESENTING PAYMENTS MADE
26 BY THE PROVIDER AS PROVIDED IN THE APPLICABLE RESOLUTION
27 OR TRUST INDENTURE AS A RESULT OF ANY PREVIOUS FAILURE OF
28 THE AUTHORITY TO MAKE ANY PAYMENT PROVIDED FOR IN THE
29 APPLICABLE RESOLUTION OR TRUST INDENTURE, INCLUDING ANY
30 RELATED REASONABLE INTEREST, FEES OR CHARGES AND INTEREST
20030S0010B1026 - 94 -
1 RATE EXCHANGE AGREEMENTS, INTEREST RATE CAP AND FLOOR
2 AGREEMENTS AND OTHER SIMILAR AGREEMENTS WHICH THE
3 AUTHORITY ENTERS INTO TO MANAGE THE INTEREST COSTS OF THE
4 AUTHORITY.
5 (IV) THE AMOUNT, IF ANY, REQUIRED TO RESTORE A DEBT
6 SERVICE RESERVE FUND AND THE RESOLUTION OF THE AUTHORITY
7 ESTABLISHING THE FUND.
8 (V) THE AMOUNT, IF ANY, REQUIRED TO BE REBATED TO
9 THE UNITED STATES FOR CONTINUED FEDERAL TAX EXEMPTION FOR
10 BONDS OF THE AUTHORITY.
11 (H) PUBLICATION.--THE AUTHORITY SHALL ANNUALLY PUBLISH A
12 CONCISE FINANCIAL STATEMENT IN THE PENNSYLVANIA BULLETIN.
13 (I) FUNDS OF AUTHORITY.--
14 (1) THE AUTHORITY MAY CREATE FUNDS AND ACCOUNTS
15 NECESSARY OR DESIRABLE FOR ITS CORPORATE PURPOSES AND SHALL
16 PAY INTO EACH FUND OR ACCOUNT ANY MONEY OF THE AUTHORITY
17 AVAILABLE. NO OTHER PROVISION OF THIS CHAPTER SHALL BE
18 CONSTRUED TO PROHIBIT THE AUTHORITY FROM CREATING WITHIN ANY
19 FUND ONE OR MORE ACCOUNTS WHICH MAY BE USED OR PLEDGED BY THE
20 AUTHORITY FOR A SPECIAL PURPOSE.
21 (2) ALL FUNDS OF THE AUTHORITY RECEIVED FROM ANY SOURCE
22 SHALL BE DELIVERED TO OR UPON THE ORDER OF THE TREASURER OF
23 THE AUTHORITY OR TO SUCH OTHER AGENT OF THE AUTHORITY AS THE
24 BOARD MAY DESIGNATE. FUNDS RECEIVED BY THE AUTHORITY SHALL BE
25 PROMPTLY DEPOSITED IN A BANK OR BANKS IN THIS COMMONWEALTH
26 CHOSEN BY THE BOARD. THE MONEY IN THE ACCOUNTS OF THE
27 AUTHORITY MAY BE PAID BY THE TREASURER OF THE AUTHORITY OR
28 OTHER DESIGNATED AGENT OF THE AUTHORITY ON WARRANT OF THE
29 TREASURER OF THE AUTHORITY. ALL DEPOSITS OF MONEY MAY, IF
30 REQUIRED BY THE AUTHORITY, BE SECURED BY OBLIGATIONS OF THE
20030S0010B1026 - 95 -
1 UNITED STATES OR OF THE COMMONWEALTH OF A MARKET VALUE EQUAL
2 AT ALL TIMES TO THE AMOUNT OF THE DEPOSIT, AND ALL BANKS AND
3 TRUST COMPANIES ARE AUTHORIZED TO GIVE SECURITY FOR SUCH
4 DEPOSITS.
5 (3) SUBJECT TO THE PROVISIONS OF ANY AGREEMENTS WITH
6 OBLIGEES OF THE AUTHORITY, ALL FUNDS OF THE AUTHORITY,
7 INCLUDING THE PROCEEDS FROM THE SALE OF BONDS, WHICH ARE NOT
8 REQUIRED FOR IMMEDIATE USE MAY BE INVESTED IN OBLIGATIONS OF
9 THE FEDERAL GOVERNMENT OR OF THE COMMONWEALTH OR OTHER
10 OBLIGATIONS WHICH ARE LEGAL INVESTMENTS FOR COMMONWEALTH
11 FUNDS.
12 (J) TERMINATION.--THE AUTHORITY MAY, WITH THE APPROVAL OF
13 THE GOVERNOR, TERMINATE ONE YEAR AFTER ALL OF ITS LIABILITIES
14 HAVE BEEN FULLY PAID AND DISCHARGED. UPON THE TERMINATION, ALL
15 OF ITS RIGHTS AND PROPERTIES, INCLUDING FUNDS REMAINING IN THE
16 DEBT SERVICE RESERVE FUND, SHALL BE PAID TO THE COMMONWEALTH.
17 (K) APPLICABILITY.--THE FOLLOWING ACTS SHALL APPLY TO THE
18 BOARD:
19 (1) THE ACT OF JUNE 21, 1957 (P.L.390, NO.212), REFERRED
20 TO AS THE RIGHT-TO-KNOW LAW.
21 (2) THE ACT OF JULY 19, 1957 (P.L.1017, NO.451), KNOWN
22 AS THE STATE ADVERSE INTEREST ACT.
23 (3) THE PROVISIONS OF 65 PA.C.S. CHS. 7 (RELATING TO
24 OPEN MEETINGS) AND 11 (RELATING TO ETHICS STANDARDS AND
25 FINANCIAL DISCLOSURE).
26 § 4304. BOARD.
27 (A) COMPOSITION.--THE BOARD OF THE AUTHORITY SHALL BE
28 COMPOSED OF THE FOLLOWING 15 MEMBERS:
29 (1) THE SECRETARY OF COMMUNITY AND ECONOMIC DEVELOPMENT.
30 (2) THE SECRETARY OF THE BUDGET.
20030S0010B1026 - 96 -
1 (3) THE SECRETARY OF LABOR AND INDUSTRY.
2 (4) THE SECRETARY OF AGRICULTURE.
3 (5) THE SECRETARY OF BANKING.
4 (6) ONE MEMBER APPOINTED BY THE MAJORITY LEADER OF THE
5 SENATE, OR A DESIGNEE; ONE MEMBER APPOINTED BY THE MINORITY
6 LEADER OF THE SENATE, OR A DESIGNEE; ONE MEMBER APPOINTED BY
7 THE MAJORITY LEADER OF THE HOUSE OF REPRESENTATIVES, OR A
8 DESIGNEE; AND ONE MEMBER APPOINTED BY THE MINORITY LEADER OF
9 THE HOUSE OF REPRESENTATIVES, OR A DESIGNEE. LEGISLATIVE
10 APPOINTMENTS SHALL SERVE AT THE PLEASURE OF THE APPOINTING
11 AUTHORITY.
12 (7) SIX MEMBERS OF THE PUBLIC WITH EXPERIENCE IN FINANCE
13 OR MANAGEMENT APPOINTED, WITH THE ADVICE AND CONSENT OF THE
14 SENATE, BY THE GOVERNOR.
15 (B) TERM.--THE MEMBERS OF THE BOARD APPOINTED BY THE
16 GOVERNOR SHALL SERVE FOR A TERM OF THREE YEARS.
17 (C) ORGANIZATION.--THE SECRETARY OF COMMUNITY AND ECONOMIC
18 DEVELOPMENT SHALL SERVE AS CHAIRPERSON. THE MEMBERS OF THE BOARD
19 SHALL ELECT FROM AMONG THEMSELVES A VICE CHAIRPERSON, SECRETARY,
20 TREASURER AND ANY OTHER OFFICERS AS THEY MAY DETERMINE.
21 (D) MEETINGS.--THE BOARD SHALL MEET AT THE CALL OF THE
22 CHAIRPERSON BUT SHALL MEET AT LEAST ONCE EACH MONTH.
23 (E) QUORUM.--ELEVEN MEMBERS OF THE BOARD SHALL CONSTITUTE A
24 QUORUM FOR THE TRANSACTION OF ANY AUTHORITY BUSINESS. THE
25 CONSENT OF AT LEAST TEN MEMBERS OF THE BOARD SHALL BE NECESSARY
26 TO TRANSACT BUSINESS ON BEHALF OF THE AUTHORITY.
27 (F) EXPENSES.--A MEMBER OF THE BOARD SHALL NOT RECEIVE
28 COMPENSATION OR REMUNERATION, BUT SHALL BE ENTITLED TO
29 REIMBURSEMENT FOR ALL REASONABLE AND NECESSARY ACTUAL EXPENSES.
30 (G) PUBLIC OFFICIALS AND PARTY OFFICERS.--THE MEMBERS OF THE
20030S0010B1026 - 97 -
1 BOARD APPOINTED BY THE GOVERNOR SHALL NOT SEEK OR HOLD A
2 POSITION AS A PUBLIC OFFICIAL WITHIN THIS COMMONWEALTH OR AS A
3 PARTY OFFICER WHILE BEING A MEMBER OF THE BOARD.
4 (H) LIABILITY.--MEMBERS OF THE BOARD AND THE COMMITTEE SHALL
5 NOT BE LIABLE PERSONALLY ON ANY OBLIGATIONS OF THE AUTHORITY,
6 INCLUDING, WITHOUT LIMITATION, BONDS OF THE AUTHORITY AND SHALL
7 BE IMMUNE FROM SUIT.
8 § 4305. POWERS AND DUTIES.
9 (A) POWERS.--THE AUTHORITY, THROUGH ACTION OF THE BOARD,
10 SHALL HAVE ALL OF THE FOLLOWING POWERS:
11 (1) THE POWER TO ADOPT BYLAWS AND GUIDELINES AS IT DEEMS
12 NECESSARY.
13 (2) THE POWER TO CONTRACT AND TO EXECUTE INSTRUMENTS,
14 INCLUDING FINANCING AGREEMENTS, LETTERS OF CREDIT,
15 GUARANTEES, SURETIES, MORTGAGES, LOANS, STANDBY LOAN
16 COMMITMENTS AND CONTRACTS OF INSURANCE, WHICH ARE NECESSARY
17 OR CONVENIENT FOR THE CARRYING ON OF ITS BUSINESS.
18 (3) THE POWER TO SUE AND BE SUED, IMPLEAD AND BE
19 IMPLEADED, COMPLAIN AND DEFEND IN COURT.
20 (4) THE POWER TO BORROW MONEY, OBTAIN LINES AND LETTERS
21 OF CREDIT, INCUR DEBT AND, IN ANTICIPATION OF THE RECEIPT OF
22 INCOME OF THE AUTHORITY, MAKE, ISSUE AND SECURE TAXABLE AND
23 TAX-EXEMPT BONDS OR NOTES, INCLUDING LIMITED OBLIGATION
24 REVENUE BONDS.
25 (5) THE POWER TO ACQUIRE, ACCEPT, PURCHASE, RECEIVE,
26 COLLECT, HOLD, CONVEY AND INVEST FUNDS, FEES AND PROPERTY,
27 WHETHER TANGIBLE OR INTANGIBLE, FROM ALL SOURCES, DIRECTLY OR
28 BY ASSIGNMENT, PLEDGE OR OTHERWISE.
29 (6) THE POWER TO SELL, TRANSFER, CONVEY AND DISPOSE OF
30 ANY PROPERTY, TANGIBLE OR INTANGIBLE.
20030S0010B1026 - 98 -
1 (7) THE POWER TO ADOPT, USE AND ALTER AT WILL A
2 CORPORATE SEAL.
3 (8) THE POWER TO EMPLOY AN EXECUTIVE DIRECTOR AND SUCH
4 OTHER PERSONS AS ARE NECESSARY OR CONVENIENT FOR THE CARRYING
5 ON OF ITS BUSINESS.
6 (9) THE POWER TO RETAIN COUNSEL AND AUDITORS TO RENDER
7 PROFESSIONAL SERVICES AS THE AUTHORITY DEEMS APPROPRIATE.
8 (10) THE POWER TO PLEDGE THE CREDIT OF THE AUTHORITY AND
9 TO PROVIDE SECURITY AND LIQUIDITY AS MAY BE REQUIRED BY
10 CREDITORS.
11 (11) THE POWER TO COOPERATE WITH ANY FEDERAL AGENCY OR
12 COMMONWEALTH AGENCY.
13 (12) ANY OTHER POWER NECESSARY OR CONVENIENT FOR THE
14 PROMOTION OR GENERAL WELFARE OF THE AUTHORITY.
15 (B) DUTIES.--THE AUTHORITY SHALL PROVIDE FINANCIAL
16 ASSISTANCE TO APPLICANTS FOR PROJECTS. THE FINANCIAL ASSISTANCE
17 SHALL BE IN THE FORM OF LOANS OR SINGLE-YEAR OR MULTIYEAR GRANTS
18 AND MAY INCLUDE PROCEEDS FROM THE SALE OF BONDS. PRIOR TO
19 PROVIDING FUNDS TO AN APPLICANT, THE AUTHORITY SHALL ENTER INTO
20 A CONTRACT WITH THE APPLICANT. THE CONTRACT SHALL INCLUDE ALL OF
21 THE FOLLOWING:
22 (1) A PROVISION REQUIRING THE APPLICANT TO REPAY ANY
23 GRANT MADE UNDER THIS CHAPTER FROM ANY PROCEEDS RESULTING
24 FROM A SALE OR PARTIAL SALE OF THE PROJECT BY THE APPLICANT.
25 GRANTS SHALL BE REPAID IN ACCORDANCE WITH THE FOLLOWING:
26 (I) IF THE PROJECT IS SOLD LESS THAN TWO YEARS AFTER
27 RECEIPT OF THE GRANT, THE APPLICANT SHALL PAY TO THE
28 AUTHORITY 90% OF THE GRANT RECEIVED.
29 (II) IF THE PROJECT IS SOLD MORE THAN TWO YEARS BUT
30 LESS THAN FOUR YEARS AFTER RECEIPT OF THE GRANT, THE
20030S0010B1026 - 99 -
1 APPLICANT SHALL PAY TO THE AUTHORITY 80% OF THE GRANT
2 RECEIVED.
3 (III) IF THE PROJECT IS SOLD MORE THAN FOUR YEARS
4 BUT LESS THAN SIX YEARS AFTER RECEIPT OF THE GRANT, THE
5 APPLICANT SHALL PAY TO THE AUTHORITY 70% OF THE GRANT
6 RECEIVED.
7 (IV) IF THE PROJECT IS SOLD MORE THAN SIX YEARS BUT
8 LESS THAN EIGHT YEARS AFTER RECEIPT OF THE GRANT, THE
9 APPLICANT SHALL PAY TO THE AUTHORITY 60% OF THE GRANT
10 RECEIVED.
11 (V) IF THE PROJECT IS SOLD MORE THAN EIGHT YEARS BUT
12 LESS THAN TEN YEARS AFTER RECEIPT OF THE GRANT, THE
13 APPLICANT SHALL PAY TO THE AUTHORITY 50% OF THE GRANT
14 RECEIVED.
15 (2) ANY OTHER TERMS OR CONDITIONS ON THE FINANCIAL
16 ASSISTANCE AUTHORIZED BY THIS CHAPTER AS THE BOARD DETERMINES
17 TO BE IN THE BEST INTERESTS OF THE COMMONWEALTH.
18 (C) LIMITATIONS.--
19 (1) IN ACCORDANCE WITH SECTION 8 OF ARTICLE VIII OF THE
20 CONSTITUTION OF PENNSYLVANIA, THE BOARD AND THE AUTHORITY
21 SHALL HAVE NO POWER TO PLEDGE THE CREDIT OR TAXING POWERS OF
22 THE COMMONWEALTH OR OF A POLITICAL SUBDIVISION OR OTHER
23 INSTRUMENTALITY OF THE COMMONWEALTH, NOR, EXCEPT AS PROVIDED
24 IN THIS CHAPTER, SHALL ANY OF THE BONDS OF THE AUTHORITY BE
25 DEEMED A DEBT OR LIABILITY OF THE COMMONWEALTH OR A POLITICAL
26 SUBDIVISION OR INSTRUMENTALITY OF THE COMMONWEALTH.
27 (2) EXCEPT AS PROVIDED IN THIS CHAPTER, THE AUTHORITY
28 SHALL BE SOLELY LIABLE FOR THE PAYMENT OF THE PRINCIPAL,
29 INTEREST OR PREMIUM ON ANY BONDS ISSUED BY THE AUTHORITY.
30 EXCEPT AS PROVIDED IN THIS CHAPTER, THE COMMONWEALTH OR A
20030S0010B1026 - 100 -
1 POLITICAL SUBDIVISION OR INSTRUMENTALITY OF THE COMMONWEALTH
2 SHALL HAVE NO LEGAL OR MORAL OBLIGATION FOR THE PAYMENT OF
3 ANY EXPENSES OR OBLIGATIONS OF THE AUTHORITY, INCLUDING BOND
4 PRINCIPAL AND INTEREST, THE FUNDING OR REFUNDING OF ANY
5 RESERVES AND ANY ADMINISTRATIVE OR OPERATING EXPENSES
6 WHATSOEVER. BONDS ISSUED BY THE AUTHORITY SHALL CONTAIN A
7 PROMINENT STATEMENT OF THE LIMITATIONS SET FORTH IN THIS
8 SUBSECTION AND SHALL FURTHER RECITE THAT OBLIGEES OF THE
9 AUTHORITY SHALL HAVE NO RECOURSE, EITHER LEGAL OR MORAL, TO
10 THE COMMONWEALTH OR A POLITICAL SUBDIVISION OR
11 INSTRUMENTALITY OF THE COMMONWEALTH FOR PAYMENT OF THE BONDS
12 OF THE AUTHORITY.
13 SUBCHAPTER C
14 BONDS
15 SEC.
16 4306. BONDS ISSUANCES.
17 4307. COMMONWEALTH TAXATION.
18 4308. FEDERAL TAXATION.
19 4309. VALIDITY OF BONDS; LIMITATION ON ACTIONS.
20 4310. PROVISIONS OF BONDS; TRUST INDENTURES.
21 4311. REMEDIES OF OBLIGEE OF AUTHORITY.
22 4312. VALIDITY OF PLEDGE.
23 4313. COMMONWEALTH PLEDGES.
24 4314. RESOLUTION AND LAW ARE CONTRACTS WITH HOLDERS OF BONDS.
25 4315. BONDS TO BE LEGAL INVESTMENTS.
26 4316. RIGHT TO ENFORCEMENT OF PLEDGE OF REVENUES.
27 4317. DEBT SERVICE RESERVE FUND.
28 4318. DEBT SERVICE FUNDS.
29 § 4306. BONDS ISSUANCES.
30 (A) AUTHORIZATION.--
20030S0010B1026 - 101 -
1 (1) BONDS OF THE AUTHORITY, WHETHER TAXABLE OR TAX
2 EXEMPT, SHALL BE AUTHORIZED BY A RESOLUTION OF THE BOARD AND
3 SHALL BE OF A SERIES, BEAR SUCH DATE OR DATES AND BEAR OR
4 ACCRUE INTEREST AT THE RATE OR RATES DETERMINED BY THE BOARD
5 TO BE NECESSARY TO ISSUE AND SELL THE AUTHORIZED BONDS.
6 (2) THE BONDS SHALL:
7 (I) BE IN THE DENOMINATIONS;
8 (II) BE IN THE FORM, EITHER COUPON OR FULLY
9 REGISTERED WITHOUT COUPONS OR IN CERTIFICATED OR BOOK-
10 ENTRY-ONLY FORM;
11 (III) CARRY SUCH REGISTRATION, EXCHANGEABILITY AND
12 INTERCHANGEABILITY PRIVILEGES;
13 (IV) BE PAYABLE IN THE MEDIUM OF PAYMENT AND AT SUCH
14 PLACE OR PLACES;
15 (V) BE SUBJECT TO THE TERMS OF REDEMPTION; AND
16 (VI) BE ENTITLED TO THE PRIORITIES OF PAYMENT IN THE
17 REVENUES OR RECEIPTS OF THE AUTHORITY AS THE BOARD
18 PROVIDES BY RESOLUTION.
19 (3) BONDS SHALL BE SIGNED BY OR SHALL BEAR THE FACSIMILE
20 SIGNATURES OF THE OFFICER DESIGNATED BY THE BOARD.
21 (4) INTEREST COUPONS SHALL BE ATTACHED TO COUPON BONDS
22 AND SHALL BEAR THE FACSIMILE SIGNATURE OF THE TREASURER OF
23 THE AUTHORITY.
24 (5) BONDS SHALL BE AUTHENTICATED BY AN AUTHENTICATING
25 AGENT, FISCAL AGENT OR TRUSTEE.
26 (6) BONDS MAY BE ISSUED AND DELIVERED NOTWITHSTANDING
27 THAT THE OFFICER SIGNING THE BONDS OR THE TREASURER WHOSE
28 FACSIMILE SIGNATURE IS ON A COUPON SHALL HAVE CEASED TO BE
29 THE OFFICER AT THE TIME WHEN THE BOND IS ACTUALLY DELIVERED.
30 (B) MATURITY DATE.--
20030S0010B1026 - 102 -
1 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), BONDS ISSUED TO
2 FINANCE THE COSTS OF A PROJECT SHALL MATURE AT A TIME OR
3 TIMES NOT EXCEEDING THE WEIGHTED AVERAGE USEFUL LIFE OF THE
4 PROJECTS BEING FINANCED AND IN NO EVENT EXCEEDING 30 YEARS
5 FROM THEIR RESPECTIVE DATES OF ORIGINAL ISSUE.
6 (2) BONDS ISSUED IN ANTICIPATION OF INCOME OF THE
7 AUTHORITY SHALL MATURE WITHIN THE FISCAL YEAR OF THE DATE OF
8 ISSUANCE THEREOF, EXCEPT FOR BONDS ISSUED IN ANTICIPATION OF
9 A GRANT OR APPROPRIATION FROM THE COMMONWEALTH, A
10 COMMONWEALTH AGENCY OR A FEDERAL AGENCY, WHICH BONDS SHALL
11 MATURE NO LATER THAN THE TIME OF ANTICIPATED RECEIPT OF THE
12 GRANT OR APPROPRIATION.
13 (C) SALE.--BONDS MAY BE SOLD AT PUBLIC SALE OR INVITED SALE
14 FOR THE PRICE OR PRICES AND AT THE RATE OR RATES OF INTEREST AS
15 THE AUTHORITY DETERMINES. BONDS MAY BE SOLD AT PRIVATE SALE BY
16 NEGOTIATION AT THE PRICE OR PRICES AND AT THE RATE OR RATES OF
17 INTEREST AS THE AUTHORITY DETERMINES, BUT ONLY IF THE AUTHORITY
18 MAKES A WRITTEN PUBLIC EXPLANATION OF THE CIRCUMSTANCES AND
19 JUSTIFICATION FOR THE PRIVATE SALE BY NEGOTIATION. PENDING THE
20 PREPARATION OF THE DEFINITIVE BONDS, INTERIM RECEIPTS MAY BE
21 ISSUED TO THE PURCHASER OR PURCHASERS OF THE BONDS AND SHALL
22 CONTAIN THE TERMS AND CONDITIONS ESTABLISHED BY THE AUTHORITY.
23 THE AUTHORITY SHALL ENSURE THAT MINORITY-OWNED OR MINORITY-
24 CONTROLLED FIRMS SHALL HAVE A OPPORTUNITY TO PARTICIPATE IN A
25 SIGNIFICANT WAY IN ANY BOND SALE ACTIVITIES.
26 (D) NEGOTIABLE INSTRUMENTS.--BONDS OF THE AUTHORITY SHALL
27 HAVE THE QUALITIES OF NEGOTIABLE INSTRUMENTS UNDER 13 PA.C.S.
28 (RELATING TO COMMERCIAL CODE).
29 (E) USE OF PROCEEDS.--THE PROCEEDS OF AN ISSUE OF BONDS MAY
30 BE USED FOR ANY OF THE FOLLOWING:
20030S0010B1026 - 103 -
1 (1) TO PAY THE COSTS OF ISSUANCE OF THE BONDS.
2 (2) TO FUND RESERVES FOR THE BOND.
3 (3) TO CAPITALIZE INTEREST ON THE BONDS FOR A PERIOD NOT
4 TO EXCEED 12 MONTHS.
5 (4) TO PAY COSTS OF ADMINISTRATION OF THE AUTHORITY.
6 (5) TO MAKE GRANTS IN ACCORDANCE WITH SECTIONS 4321
7 (RELATING TO WATER AND WASTEWATER INFRASTRUCTURE
8 CAPITALIZATION PROGRAM) AND 4324 (RELATING TO ECONOMIC
9 ENHANCEMENT FINANCING PROGRAM).
10 (6) TO MAKE LOANS IN ACCORDANCE WITH SECTIONS 4319
11 (RELATING TO THE INFRASTRUCTURE DEVELOPMENT PROGRAM), 4320
12 (RELATING TO CORE INDUSTRIES INFRASTRUCTURE CAPITALIZATION
13 PROGRAM), 4321, 4322 (RELATING TO BUSINESS IN OUR SITES
14 PROGRAM), 4323 (RELATING TO FIRST INDUSTRIES PROGRAM), 4324
15 AND 4325 (RELATING TO SECONDARY GROWTH STAGE FINANCING
16 PROGRAM).
17 (7) TO PURCHASE LOANS, MORTGAGES, SECURITY INTERESTS OR
18 LOAN PARTICIPATIONS AGREEMENTS WHICH THE AUTHORITY DETERMINES
19 IS IN ITS BEST INTEREST.
20 (F) REFUNDING.--SUBJECT TO PROVISIONS OF THIS CHAPTER AND
21 BONDS, NOTES OR OTHER OBLIGATIONS ISSUED IN ACCORDANCE WITH THIS
22 CHAPTER, THE AUTHORITY MAY REFUND ANY OUTSTANDING DEBT OF THE
23 AUTHORITY, WHETHER THE DEBT REPRESENTS PRINCIPAL OR INTEREST, IN
24 WHOLE OR IN PART, AT ANY TIME. FOR THE PURPOSES OF THIS
25 SUBSECTION, THE TERM "REFUND" AND ITS VARIATIONS SHALL MEAN THE
26 ISSUANCE AND SALE OF OBLIGATIONS THE PROCEEDS OF WHICH ARE USED
27 OR ARE TO BE USED FOR THE PAYMENT OR REDEMPTION OF OUTSTANDING
28 OBLIGATIONS UPON OR PRIOR TO MATURITY. THE TERM OF ANY BONDS
29 ISSUED FOR REFUNDING PURPOSES SHALL NOT EXTEND TO A MATURITY
30 DATE WHICH COULD NOT HAVE BEEN INCLUDED IN THE ORIGINAL ISSUE OF
20030S0010B1026 - 104 -
1 BONDS BEING REFUNDED.
2 § 4307. COMMONWEALTH TAXATION.
3 THE EFFECTUATION OF SUBCHAPTER D (RELATING TO PROGRAMS) BY
4 THE AUTHORITY SHALL AND WILL BE IN ALL RESPECTS FOR THE BENEFIT
5 OF THE PEOPLE OF THIS COMMONWEALTH, FOR THE INCREASE OF THEIR
6 COMMERCE AND PROSPERITY AND FOR THE IMPROVEMENT OF THEIR HEALTH,
7 SAFETY, WELFARE AND LIVING CONDITIONS. SINCE THE AUTHORITY WILL
8 BE PERFORMING ESSENTIAL GOVERNMENTAL FUNCTIONS IN EFFECTUATING
9 SUCH PURPOSES, THE AUTHORITY SHALL NOT BE REQUIRED TO PAY ANY
10 TAXES OR ASSESSMENTS UPON ANY PROPERTY ACQUIRED OR USED OR
11 PERMITTED TO BE USED BY THE AUTHORITY FOR ITS PURPOSES, AND THE
12 BONDS ISSUED BY THE AUTHORITY, THEIR TRANSFER AND THE INCOME
13 THEREFROM, INCLUDING ANY PROFITS MADE ON THEIR SALE, SHALL AT
14 ALL TIMES BE FREE FROM STATE AND LOCAL TAXATION WITHIN THIS
15 COMMONWEALTH. THIS EXEMPTION SHALL NOT EXTEND TO GIFT, ESTATE,
16 SUCCESSION OR INHERITANCE TAXES OR ANY OTHER TAXES NOT LEVIED
17 DIRECTLY ON THE BONDS, THEIR TRANSFER, THE INCOME THEREFROM OR
18 THE REALIZATION OF PROFITS ON THEIR SALE.
19 § 4308. FEDERAL TAXATION.
20 (A) ALLOCATION.--IF THE BONDS ISSUED BY THE AUTHORITY FOR A
21 PROJECT ARE FEDERALLY TAX-EXEMPT BONDS FOR WHICH FEDERAL LAW
22 REQUIRES AN ALLOCATION, THE DEPARTMENT SHALL, UPON RECEIPT OF A
23 WRITTEN REQUEST FROM THE AUTHORITY, ISSUE AN ALLOCATION CHARGING
24 THE PROJECT'S PRO RATA SHARE OF THE ISSUE TO THE COUNTY IN WHICH
25 THE PROJECT WILL BE LOCATED.
26 (B) APPROVAL.--IF GUBERNATORIAL APPROVAL IS REQUIRED BY A
27 FEDERAL AGENCY IN ORDER FOR A BOND ISSUE OF THE AUTHORITY TO
28 QUALIFY FOR TAX-EXEMPT STATUS, THE GOVERNOR SHALL, UPON RECEIPT
29 OF A WRITTEN REQUEST FROM THE AUTHORITY, APPROVE THE BOND ISSUE.
30 THE REQUEST SHALL STATE THAT THE AUTHORITY HAS CONDUCTED A
20030S0010B1026 - 105 -
1 HEARING IN ACCORDANCE WITH 65 PA.C.S. CH. 7 (RELATING TO OPEN
2 MEETINGS) AND SHALL CONTAIN A DESCRIPTION OF THE PROJECT TO BE
3 FINANCED, A SUMMARY OF THE METHOD OF FINANCING AND A SUMMARY OF
4 THE COMMENTS MADE AND QUESTIONS POSED AT THE HEARING.
5 § 4309. VALIDITY OF BONDS; LIMITATION ON ACTIONS.
6 (A) PRESUMPTION.--A BOND RECITING IN SUBSTANCE THAT IT HAS
7 BEEN ISSUED BY THE AUTHORITY TO ACCOMPLISH THE PUBLIC PURPOSES
8 OF THIS CHAPTER SHALL BE CONCLUSIVELY DEEMED IN ANY SUIT, ACTION
9 OR PROCEEDING INVOLVING THE VALIDITY OR ENFORCEABILITY OF THE
10 BONDS OR THEIR SECURITY TO HAVE BEEN ISSUED FOR THE PUBLIC
11 PURPOSES OF THIS CHAPTER.
12 (B) FILING.--
13 (1) THE AUTHORITY SHALL FILE A COPY OF A RESOLUTION
14 AUTHORIZING THE ISSUANCE OF BONDS IN ITS OFFICE FOR PUBLIC
15 INSPECTION AND SHALL PUBLISH IN THREE NEWSPAPERS OF GENERAL
16 CIRCULATION IN THIS COMMONWEALTH A NOTICE STATING:
17 (I) THE FACT AND DATE OF THE RESOLUTION.
18 (II) THE PLACES WHERE THE RESOLUTION HAS BEEN FILED
19 FOR PUBLIC INSPECTION.
20 (III) THE DATE OF PUBLICATION OF THE NOTICE.
21 (IV) ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE
22 IN ANY COURT QUESTIONING THE VALIDITY OR PROPER
23 AUTHORIZATION OF BONDS PROVIDED FOR BY THE RESOLUTION OR
24 THE VALIDITY OF ANY COVENANTS, AGREEMENTS OR CONTRACT
25 PROVIDED FOR BY THE RESOLUTION SHALL BE COMMENCED WITHIN
26 TEN DAYS AFTER THE PUBLICATION OF THE NOTICE.
27 (2) IF NO ACTION OR PROCEEDING QUESTIONING THE VALIDITY
28 OR PROPER AUTHORIZATION OF BONDS PROVIDED FOR BY THE
29 RESOLUTION REFERRED TO IN THE NOTICE REQUIRED UNDER PARAGRAPH
30 (1) OR QUESTIONING THE VALIDITY OF ANY COVENANT, AGREEMENT OR
20030S0010B1026 - 106 -
1 CONTRACT PROVIDED BY THE RESOLUTION IS COMMENCED WITHIN TEN
2 DAYS AFTER THE PUBLICATION OF THE NOTICE REQUIRED UNDER
3 PARAGRAPH (1):
4 (I) ALL PERSONS SHALL BE FOREVER BARRED AND
5 FORECLOSED FROM INSTITUTING OR COMMENCING ANY ACTION OR
6 PROCEEDING IN ANY COURT OR PLEADING ANY DEFENSE TO ANY
7 ACTION OR PROCEEDINGS QUESTIONING THE VALIDITY OR PROPER
8 AUTHORIZATION OF THE BONDS OR THE VALIDITY OF THE
9 COVENANTS, AGREEMENTS OR CONTRACTS; AND
10 (II) THE BONDS, COVENANTS, AGREEMENTS AND CONTRACTS
11 SHALL BE CONCLUSIVELY DEEMED TO BE VALID AND BINDING
12 OBLIGATIONS IN ACCORDANCE WITH THEIR TERMS AND TENOR.
13 (C) ESTOPPEL.--AFTER ISSUANCE, BONDS SHALL BE CONCLUSIVELY
14 PRESUMED TO BE FULLY AUTHORIZED AND ISSUED BY ALL THE LAWS OF
15 THIS COMMONWEALTH, AND ANY PERSON SHALL BE ESTOPPED FROM
16 QUESTIONING THEIR SALE, EXECUTION OR DELIVERY BY THE AUTHORITY.
17 § 4310. PROVISIONS OF BONDS; TRUST INDENTURES.
18 (A) POWERS.--IN CONNECTION WITH THE ISSUANCE OF BONDS AND IN
19 ORDER TO SECURE THE PAYMENT OF ITS BONDS, THE AUTHORITY, IN
20 ADDITION TO ITS OTHER POWERS, SHALL HAVE THE POWER TO DO ALL OF
21 THE FOLLOWING:
22 (1) PLEDGE OR GRANT A SECURITY INTEREST IN ALL OR ANY
23 PART OF ITS GROSS OR NET REVENUES TO WHICH ITS RIGHT THEN
24 EXISTS OR WHICH MAY LATER COME INTO EXISTENCE.
25 (2) GRANT A SECURITY INTEREST IN ALL OR ANY PART OF ITS
26 PERSONAL PROPERTY THEN OWNED OR LATER ACQUIRED.
27 (3) COVENANT AGAINST:
28 (I) PLEDGING OR GRANTING A SECURITY INTEREST IN ALL
29 OR ANY PART OF ITS REVENUES OR ALL OR ANY PART OF ITS
30 PERSONAL PROPERTY TO WHICH ITS RIGHT OR TITLE EXISTS OR
20030S0010B1026 - 107 -
1 WHICH MAY LATER COME INTO EXISTENCE; OR
2 (II) PERMITTING OR SUFFERING ANY LIEN ON ITS
3 REVENUES OR PROPERTY.
4 (4) COVENANT WITH RESPECT TO LIMITATIONS ON ITS RIGHT TO
5 SELL, LEASE OR OTHERWISE DISPOSE OF ANY OF ITS REAL PROPERTY.
6 (5) COVENANT AS TO WHICH OTHER OR ADDITIONAL DEBTS OR
7 OBLIGATIONS MAY BE INCURRED BY IT.
8 (6) COVENANT AS TO THE BONDS TO BE ISSUED AND AS TO THE
9 ISSUANCE OF THE BONDS, IN ESCROW OR OTHERWISE, AND AS TO THE
10 USE AND DISPOSITION OF THE PROCEEDS THEREOF.
11 (7) PROVIDE FOR THE REPLACEMENT OF LOST, DESTROYED OR
12 MUTILATED BONDS.
13 (8) COVENANT AGAINST EXTENDING THE TIME FOR THE PAYMENT
14 OF BONDS OR INTEREST THEREON.
15 (9) REDEEM BONDS.
16 (10) COVENANT FOR THEIR REDEMPTION AND PROVIDE THE TERMS
17 AND CONDITIONS THEREOF.
18 (11) COVENANT AS TO THE AMOUNT OF REVENUES TO BE
19 RECEIVED IN EACH FISCAL YEAR OR OTHER PERIOD OF TIME BY THE
20 AUTHORITY AND TO THE USE AND DISPOSITION TO BE MADE OF THE
21 REVENUES.
22 (12) CREATE OR AUTHORIZE THE CREATION OF SPECIAL FUNDS
23 OR RESERVES FOR DEBT SERVICE OR OTHER PURPOSES AND COVENANT
24 AS TO THE USE AND DISPOSITION OF THE MONEY HELD IN THE
25 SPECIAL FUNDS.
26 (13) PRESCRIBE THE PROCEDURE, IF ANY, BY WHICH THE TERMS
27 OF ANY CONTRACT WITH BONDHOLDERS MAY BE AMENDED OR ABROGATED,
28 THE AMOUNT OF BONDS THE HOLDERS OF WHICH MUST CONSENT TO AND
29 THE MANNER IN WHICH THE CONSENT MAY BE GIVEN.
30 (14) COVENANT AS TO THE USE OF ANY OR ALL OF ITS REAL OR
20030S0010B1026 - 108 -
1 PERSONAL PROPERTY TO WARRANT ITS TITLE.
2 (15) COVENANT AS TO THE MAINTENANCE OF ITS REAL AND
3 PERSONAL PROPERTY, THE REPLACEMENT OF ITS REAL AND PERSONAL
4 PROPERTY, THE INSURANCE TO BE CARRIED ON ITS REAL AND
5 PERSONAL PROPERTY AND THE USE AND DISPOSITION OF INSURANCE
6 PROCEEDS.
7 (16) COVENANT AS TO THE RIGHTS, LIABILITIES, POWERS AND
8 DUTIES ARISING UPON THE BREACH BY IT OF ANY COVENANT,
9 CONDITION OR OBLIGATION, EXCEPT THAT THE AUTHORITY SHALL NOT
10 BE PERMITTED TO COVENANT THAT UPON A BREACH ANY OR ALL OF ITS
11 BONDS SHALL BECOME OR MAY BE DECLARED DUE BEFORE THEIR STATED
12 MATURITY.
13 (17) PAY THE COSTS OR EXPENSES INCIDENT TO:
14 (I) THE ENFORCEMENT OF THE BONDS;
15 (II) THE PROVISIONS OF THE RESOLUTION AUTHORIZING
16 THE ISSUANCE OF THE BONDS;
17 (III) THE TRUST INDENTURE SECURING THE BONDS; OR
18 (IV) ANY COVENANT OR AGREEMENT OF THE FINANCING
19 AUTHORITY WITH THE HOLDERS OF THE BONDS, NOTES OR OTHER
20 OBLIGATIONS.
21 (18) VEST IN A TRUSTEE OR THE HOLDERS OF BONDS OR ANY
22 PROPORTION OF THEM THE RIGHT TO ENFORCE THE PAYMENT OF THE
23 BONDS OR ANY COVENANTS SECURING OR RELATING TO THE BONDS.
24 (19) VEST IN A TRUSTEE THE RIGHT, IN THE EVENT OF
25 DEFAULT IN PAYMENTS OF INTEREST OR ON PRINCIPAL OF BONDS BY
26 THE AUTHORITY, TO TAKE POSSESSION AND USE, OPERATE AND MANAGE
27 ANY REAL OR PERSONAL PROPERTY, TO COLLECT THE REVENUES AND
28 RECEIPTS OF AN AUTHORITY AND TO DISPOSE OF THE MONEY IN
29 ACCORDANCE WITH THE AGREEMENT OF THE AUTHORITY WITH THE
30 TRUSTEE.
20030S0010B1026 - 109 -
1 (20) PROVIDE FOR THE:
2 (I) POWERS AND DUTIES OF A TRUSTEE AND TO LIMIT THE
3 TRUSTEE'S LIABILITIES; AND
4 (II) TERMS AND CONDITIONS UPON WHICH A TRUSTEE OR
5 THE HOLDERS OF BONDS OR ANY PROPORTION OF THEM MAY
6 ENFORCE ANY COVENANT OR RIGHTS SECURING OR RELATING TO
7 THE BONDS.
8 (21) ENTER INTO INTEREST RATE EXCHANGE AGREEMENTS,
9 INTEREST RATE CAP AND FLOOR AGREEMENTS AND OTHER SIMILAR
10 AGREEMENTS WHICH IN THE JUDGMENT OF THE AUTHORITY WILL ASSIST
11 THE AUTHORITY IN MANAGING THE INTEREST COSTS OF THE
12 AUTHORITY.
13 (22) OBTAIN LETTERS OF CREDIT, BONDS INSURANCE AND OTHER
14 FACILITIES FOR CREDIT ENHANCEMENT AND LIQUIDITY.
15 (23) EXERCISE ALL OR ANY PART OR COMBINATION OF THE
16 POWERS GRANTED IN THIS CHAPTER.
17 (24) MAKE COVENANTS OTHER THAN AND IN ADDITION TO THE
18 COVENANTS EXPRESSLY AUTHORIZED BY THIS CHAPTER.
19 (25) MAKE ANY OTHER COVENANTS AND DO ANY AND ALL OTHER
20 ACTS AND THINGS AS MAY BE NECESSARY, CONVENIENT OR DESIRABLE
21 IN ORDER TO SECURE ITS BONDS OR, IN THE ABSOLUTE DISCRETION
22 OF THE AUTHORITY, AS WILL TEND TO ACCOMPLISH THE PURPOSES OF
23 THIS CHAPTER BY MAKING THE BONDS MORE MARKETABLE,
24 NOTWITHSTANDING THAT THE COVENANTS, ACTS OR THINGS MAY NOT BE
25 SPECIFICALLY ENUMERATED BY THIS CHAPTER.
26 (B) LIMITATIONS.--NOTWITHSTANDING ANY PROVISION OF THIS
27 CHAPTER TO THE CONTRARY, THE REAL PROPERTY OF THE AUTHORITY
28 SHALL NOT BE MORTGAGED AND SHALL NOT BE SUBJECT TO ATTACHMENT
29 NOR LEVIED UPON BY EXECUTION OR OTHERWISE. THE REVENUES OF THE
30 AUTHORITY AND THE PERSONAL PROPERTY OF THE AUTHORITY SHALL BE
20030S0010B1026 - 110 -
1 PLEDGED OR OTHERWISE ENCUMBERED ONLY AS EXPRESSLY PROVIDED IN
2 THIS CHAPTER AND, EXCEPT TO THE EXTENT NECESSARY TO EFFECTUATE
3 THE PLEDGE OR ENCUMBRANCE, SHALL NOT BE SUBJECT TO ATTACHMENT
4 NOR LEVIED UPON BY EXECUTION OR OTHERWISE.
5 § 4311. REMEDIES OF OBLIGEE OF AUTHORITY.
6 IN ADDITION TO ALL OTHER RIGHTS WHICH MAY BE CONFERRED ON THE
7 OBLIGEE SUBJECT ONLY TO ANY CONTRACTUAL RESTRICTIONS BINDING
8 UPON THE OBLIGEE, AN OBLIGEE OF THE AUTHORITY SHALL HAVE ALL OF
9 THE FOLLOWING RIGHTS:
10 (1) TO COMPEL, BY MANDAMUS, SUIT, ACTION OR PROCEEDING
11 AT LAW OR IN EQUITY, THE AUTHORITY AND THE MEMBERS OF ITS
12 GOVERNING BOARD, OFFICERS, AGENTS OR EMPLOYEES TO PERFORM
13 EACH AND EVERY TERM, PROVISION AND COVENANT CONTAINED IN ANY
14 BOND OR CONTRACT OF THE AUTHORITY WITH OR FOR THE BENEFIT OF
15 THE OBLIGEE AND TO REQUIRE THE CARRYING OUT OF ANY COVENANTS
16 AND AGREEMENTS OF THE AUTHORITY AND THE FULFILLMENT OF ALL
17 DUTIES IMPOSED UPON THE AUTHORITY BY THIS CHAPTER.
18 (2) TO OBTAIN, BY PROCEEDING IN EQUITY, AN INJUNCTION
19 AGAINST ANY ACTS OR THINGS WHICH MAY BE UNLAWFUL OR THE
20 VIOLATION OF ANY OF THE RIGHTS OF THE OBLIGEE.
21 (3) TO REQUIRE THE AUTHORITY TO ACCOUNT AS IF IT WERE
22 THE TRUSTEE OF AN EXPRESS TRUST FOR THE OBLIGEES OF THE
23 AUTHORITY FOR ANY PLEDGED REVENUES RECEIVED.
24 § 4312. VALIDITY OF PLEDGE.
25 ANY PLEDGE OF OR GRANT OF A SECURITY INTEREST IN REVENUES OR
26 PERSONAL PROPERTY OF THE AUTHORITY MADE BY THE AUTHORITY SHALL
27 BE VALID AND BINDING FROM THE TIME WHEN THE PLEDGE IS MADE. THE
28 REVENUES OR OTHER PROPERTY PLEDGED AND LATER RECEIVED BY THE
29 AUTHORITY SHALL IMMEDIATELY BE SUBJECT TO THE LIEN OF THE PLEDGE
30 OR SECURITY INTEREST WITHOUT ANY PHYSICAL DELIVERY THEREOF OR
20030S0010B1026 - 111 -
1 FURTHER ACT. THE LIEN OF THE PLEDGE OR SECURITY INTEREST SHALL
2 BE VALID AND BINDING AS AGAINST ALL PARTIES HAVING CLAIMS OF ANY
3 KIND IN TORT, CONTRACT OR OTHERWISE AGAINST THE AUTHORITY
4 IRRESPECTIVE OF WHETHER THE PARTIES HAVE NOTICE. NEITHER THE
5 RESOLUTION NOR ANY OTHER INSTRUMENT OF THE AUTHORITY BY WHICH A
6 PLEDGE OR SECURITY INTEREST IS CREATED NEED BE RECORDED OR FILED
7 TO PERFECT THE PLEDGE OR SECURITY INTEREST.
8 § 4313. COMMONWEALTH PLEDGES.
9 (A) BONDHOLDERS.--THE COMMONWEALTH DOES HEREBY PLEDGE TO AND
10 AGREE WITH EACH AND EVERY OBLIGEE OF THE AUTHORITY THAT THE
11 COMMONWEALTH WILL NOT LIMIT OR ALTER THE RIGHTS HEREBY VESTED IN
12 THE AUTHORITY IN ANY MANNER INCONSISTENT WITH THE OBLIGATIONS OF
13 THE AUTHORITY TO ITS OBLIGEES UNTIL ALL BONDS AT ANY TIME
14 ISSUED, TOGETHER WITH THE INTEREST ON THE BONDS, ARE FULLY PAID
15 AND DISCHARGED.
16 (B) LESSEES.--THE COMMONWEALTH DOES HEREBY PLEDGE TO AND
17 AGREE WITH ANY PERSON WHO, AS OWNER OF PROPERTY THAT IS LEASED
18 OR SUBLEASED TO OR FROM THE AUTHORITY, THAT IT WILL NOT LIMIT OR
19 ALTER THE RIGHTS AND POWERS VESTED IN THE AUTHORITY OR OTHERWISE
20 CREATED BY THIS CHAPTER IN ANY MANNER WHICH IMPAIRS THE
21 OBLIGATIONS OF THE AUTHORITY UNTIL ALL THE OBLIGATIONS OF THE
22 AUTHORITY UNDER THE LEASE OR SUBLEASE ARE FULLY MET AND
23 DISCHARGED.
24 § 4314. RESOLUTION AND LAW ARE CONTRACTS WITH HOLDERS OF BONDS.
25 EXCEPT AS OTHERWISE PROVIDED IN ANY RESOLUTION OF THE
26 AUTHORITY AUTHORIZING OR AWARDING BONDS, THE TERMS OF A
27 RESOLUTION AND ANY AGREEMENT AUTHORIZED BY THE RESOLUTION AND
28 THE TERMS OF THIS CHAPTER AS IN EFFECT WHEN THE BONDS WERE
29 AUTHORIZED SHALL CONSTITUTE A CONTRACT BETWEEN THE AUTHORITY AND
30 THE OBLIGEES, SUBJECT TO MODIFICATION BY THE VOTE BY HOLDERS OF
20030S0010B1026 - 112 -
1 THE PERCENTAGE OF BONDS AS THE RESOLUTION AUTHORIZING OR
2 AWARDING THE BONDS PROVIDES.
3 § 4315. BONDS TO BE LEGAL INVESTMENTS.
4 BONDS ISSUED PURSUANT TO THIS CHAPTER ARE MADE SECURITIES IN
5 WHICH ALL GOVERNMENT AGENCIES, INSURANCE COMPANIES, TRUST
6 COMPANIES, BANKING ASSOCIATIONS, BANKING CORPORATIONS, SAVINGS
7 BANKS, INVESTMENT COMPANIES, EXECUTORS, THE TRUSTEES OF ANY
8 RETIREMENT, PENSION OR ANNUITY FUND OR SYSTEM OF THE
9 COMMONWEALTH, TRUSTEES AND OTHER FIDUCIARIES MAY PROPERLY AND
10 LEGALLY INVEST FUNDS, INCLUDING CAPITAL, DEPOSITS OR OTHER FUNDS
11 IN THEIR CONTROL OR BELONGING TO THEM. THE BONDS ARE HEREBY MADE
12 SECURITIES WHICH MAY PROPERLY AND LEGALLY BE DEPOSITED WITH AND
13 RECEIVED BY ANY GOVERNMENT AGENCY FOR ANY PURPOSE FOR WHICH THE
14 DEPOSIT OF BONDS OR OTHER OBLIGATIONS OF THE COMMONWEALTH ARE
15 AUTHORIZED BY LAW.
16 § 4316. RIGHT TO ENFORCEMENT OF PLEDGE OF REVENUES.
17 THE OBLIGEES OF THE AUTHORITY SHALL HAVE THE RIGHT TO ENFORCE
18 A PLEDGE OF OR SECURITY INTEREST IN REVENUES OF THE AUTHORITY
19 SECURING PAYMENT OF BONDS OF THE AUTHORITY AGAINST ALL
20 GOVERNMENT AGENCIES IN POSSESSION OF ANY SUCH REVENUES AT ANY
21 TIME. THE REVENUES MAY BE COLLECTED DIRECTLY FROM SUCH OFFICIALS
22 UPON NOTICE BY THE OBLIGEES OR A TRUSTEE FOR THE OBLIGEES FOR
23 APPLICATION TO THE PAYMENT OF THE BONDS AS AND WHEN DUE OR FOR
24 DEPOSITS IN ANY SINKING, BOND OR DEBT SERVICE FUND ESTABLISHED
25 IN ACCORDANCE WITH THIS CHAPTER OR ESTABLISHED BY RESOLUTION OF
26 THE AUTHORITY WITH THE TRUSTEE AT THE TIMES AND IN THE AMOUNTS
27 SPECIFIED IN THE BONDS OR THE RESOLUTION OR INDENTURE OR TRUST
28 AGREEMENT SECURING THE BONDS. ANY GOVERNMENT AGENCY IN
29 POSSESSION OF ANY SUCH REVENUES SHALL MAKE PAYMENT AGAINST
30 RECEIPT AND SHALL BE DISCHARGED FROM ANY FURTHER LIABILITY OR
20030S0010B1026 - 113 -
1 RESPONSIBILITY FOR SUCH REVENUES. IF PAYMENT IS MADE TO A HOLDER
2 OF BONDS, IT SHALL BE MADE AGAINST SURRENDER OF THE BONDS TO THE
3 PAYOR FOR DELIVERY TO THE AUTHORITY IN THE CASE OF PAYMENT IN
4 FULL; OTHERWISE, IT SHALL BE MADE AGAINST PRODUCTION OF THE
5 BONDS FOR NOTATION THEREON OF THE AMOUNT OF THE PAYMENT. THE
6 PROVISIONS OF THIS SECTION WITH RESPECT TO THE ENFORCEABILITY
7 AND COLLECTION OF REVENUES WHICH SECURE BONDS SHALL SUPERSEDE
8 ANY CONTRARY OR INCONSISTENT STATUTORY PROVISION OR RULE OF LAW.
9 THIS SECTION SHALL BE CONSTRUED AND APPLIED TO FULFILL THE
10 LEGISLATIVE PURPOSE OF CLARIFYING AND FACILITATING THE FINANCING
11 OF THE AUTHORITY BY ASSURING TO THE OBLIGEES OF THE AUTHORITY
12 THE FULL AND IMMEDIATE BENEFIT OF THE SECURITY FOR THE BONDS
13 WITHOUT DELAY, DIMINUTION OR INTERFERENCE BASED ON ANY STATUTE,
14 DECISION, ORDINANCE OR ADMINISTRATIVE RULE OR PRACTICE.
15 § 4317. DEBT SERVICE RESERVE FUND.
16 (A) AUTHORIZATION.--
17 (1) THE AUTHORITY MAY ESTABLISH ONE OR MORE DEBT SERVICE
18 RESERVE FUNDS INTO WHICH IT SHALL DEPOSIT:
19 (I) PROCEEDS FROM THE SALE OF BONDS, TO THE EXTENT
20 PROVIDED IN THE RESOLUTION OR RESOLUTIONS AUTHORIZING THE
21 BONDS.
22 (II) ANY OTHER MONEY MADE AVAILABLE TO THE AUTHORITY
23 FROM ANY SOURCE.
24 (2) ALL MONEY HELD IN ANY DEBT SERVICE RESERVE FUND,
25 EXCEPT AS PROVIDED IN THIS SUBSECTION, SHALL BE USED WHEN
26 REQUIRED SOLELY FOR THE:
27 (I) PAYMENT OF THE PRINCIPAL OF BONDS SECURED IN
28 WHOLE OR IN PART BY THE FUND;
29 (II) PAYMENT OF SINKING FUND PAYMENTS, IF ANY, WITH
30 RESPECT TO THE BONDS;
20030S0010B1026 - 114 -
1 (III) PURCHASE OR REDEMPTION OF BONDS;
2 (IV) PAYMENT OF INTEREST ON BONDS; OR
3 (V) PAYMENT OF ANY REDEMPTION PREMIUM REQUIRED TO BE
4 PAID WHEN BONDS AND NOTES ARE REDEEMED PRIOR TO MATURITY.
5 (3) ANY DEBT SERVICE RESERVE FUND ESTABLISHED PURSUANT
6 TO THIS SECTION SHALL BE A TRUST FUND HELD FOR THE BENEFIT
7 AND SECURITY OF THE OBLIGEES OF THE AUTHORITY WHOSE BONDS ARE
8 SECURED BY THE FUND.
9 (4) MONEY IN A DEBT SERVICE RESERVE FUND SHALL NOT BE
10 WITHDRAWN FROM THE FUND AT ANY TIME IN AN AMOUNT THAT WOULD
11 REDUCE THE AMOUNT OF THE FUND TO LESS THAN THE MINIMUM
12 RESERVE FUND REQUIREMENT ESTABLISHED FOR THE FUND IN THE
13 RESOLUTION OF THE AUTHORITY CREATING THE FUND, EXCEPT FOR
14 WITHDRAWALS FOR THE PURPOSE OF MAKING PAYMENTS WHEN DUE OF
15 PRINCIPAL, INTEREST, REDEMPTION PREMIUMS AND SINKING FUND
16 PAYMENTS, IF ANY, WITH RESPECT TO THE BONDS FOR THE PAYMENT
17 OF WHICH OTHER MONEY OF THE AUTHORITY ARE NOT AVAILABLE.
18 (5) ANY INCOME OR INTEREST EARNED BY OR INCREMENTS TO
19 ANY DEBT SERVICE RESERVE FUND DUE TO THE INVESTMENT THEREOF
20 MAY BE TRANSFERRED BY THE AUTHORITY TO OTHER FUNDS OR
21 ACCOUNTS OF THE AUTHORITY TO THE EXTENT THE TRANSFER DOES NOT
22 REDUCE THE AMOUNT OF THE DEBT SERVICE RESERVE FUND BELOW THE
23 MINIMUM RESERVE FUND REQUIREMENT ESTABLISHED FOR THAT FUND.
24 (6) FUNDS TRANSFERRED TO OTHER ACCOUNTS IN ACCORDANCE
25 WITH THE REQUIREMENTS OF PARAGRAPH (5) MAY BE USED FOR
26 WHATEVER PURPOSES THE AUTHORITY DEEMS APPROPRIATE IF THE
27 PURPOSES ARE CONSISTENT WITH THIS CHAPTER AND THE CONTRACTS
28 OF THE AUTHORITY WITH OBLIGEES OF THE AUTHORITY.
29 (B) BOND LIMITATION.--THE AUTHORITY SHALL NOT AT ANY TIME
30 ISSUE BONDS SECURED IN WHOLE OR IN PART BY A DEBT SERVICE
20030S0010B1026 - 115 -
1 RESERVE FUND IF ISSUANCE OF THE BONDS WOULD CAUSE THE AMOUNT IN
2 THE DEBT RESERVE FUND TO FALL BELOW THE MINIMUM RESERVE
3 REQUIREMENT FOR THE FUND, UNLESS THE AUTHORITY AT THE TIME OF
4 ISSUANCE OF THE BONDS SHALL DEPOSIT IN THE FUND AN AMOUNT, FROM
5 THE PROCEEDS OF THE BONDS TO BE ISSUED OR FROM OTHER SOURCES,
6 WHICH WHEN ADDED TO THE AMOUNT ALREADY IN THE FUND WILL CAUSE
7 THE TOTAL AMOUNT ON DEPOSIT IN THE FUND TO EQUAL OR EXCEED THE
8 MINIMUM RESERVE FUND REQUIREMENT.
9 (C) DEFINITION.--FOR THE PURPOSES OF THIS SECTION, THE TERM
10 "MINIMUM RESERVE FUND REQUIREMENT" SHALL MEAN THAT AMOUNT
11 DEFINED AS THE MINIMUM RESERVE FUND REQUIREMENT IN THE
12 RESOLUTION OF THE AUTHORITY AUTHORIZING THE BONDS.
13 § 4318. DEBT SERVICE FUNDS.
14 ANY MONEY DEPOSITED IN ANY FUND CREATED BY THE AUTHORITY TO
15 BE USED TO PAY DEBT SERVICE, INCLUDING, WITHOUT LIMITATION, THE
16 BOND PAYMENT ACCOUNT, ANY SINKING FUND OR DEBT SERVICE RESERVE
17 FUND AND ALL INVESTMENTS AND PROCEEDS OF INVESTMENTS THEREOF
18 SHALL, WITHOUT FURTHER ACTION OR FILING, BE SUBJECTED TO A
19 PERFECTED SECURITY INTEREST FOR THE OBLIGEES OF THE AUTHORITY
20 FOR WHOM THE FUND IS HELD UNTIL THE MONEY OR INVESTMENTS SHALL
21 BE PROPERLY DISBURSED IN ACCORDANCE WITH THIS CHAPTER AND WITH
22 THE TERMS OF THE CONTRACT OF THE AUTHORITY WITH ITS OBLIGEES.
23 SUBCHAPTER D
24 PROGRAMS
25 SEC.
26 4319. INFRASTRUCTURE DEVELOPMENT PROGRAM.
27 4320. CORE INDUSTRIES INFRASTRUCTURE CAPITALIZATION PROGRAM.
28 4321. WATER AND WASTEWATER INFRASTRUCTURE CAPITALIZATION
29 PROGRAM.
30 4322. BUSINESS IN OUR SITES PROGRAM.
20030S0010B1026 - 116 -
1 4323. FIRST INDUSTRIES PROGRAM.
2 4324. ECONOMIC ENHANCEMENT FINANCING PROGRAM.
3 4325. SECONDARY GROWTH STAGE FINANCING PROGRAM.
4 4326. COMMUNITY DEVELOPMENT BANK PROGRAM. (RESERVED)
5 § 4319. INFRASTRUCTURE DEVELOPMENT PROGRAM.
6 (A) ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED WITHIN THE
7 AUTHORITY A PROGRAM TO BE KNOWN AS THE INFRASTRUCTURE
8 DEVELOPMENT PROGRAM. THE PROGRAM SHALL PROVIDE FINANCIAL
9 ASSISTANCE IN THE FORM OF LOANS FOR PROJECTS WHICH, WHEN
10 COMPLETED, INCREASE ECONOMIC DEVELOPMENT WITHIN THIS
11 COMMONWEALTH.
12 (B) APPLICATION.--A PERSON MAY SUBMIT AN APPLICATION TO THE
13 AUTHORITY REQUESTING FINANCIAL ASSISTANCE FOR A PROJECT. THE
14 APPLICATION SHALL BE ON THE FORM REQUIRED BY THE AUTHORITY AND
15 SHALL INCLUDE OR DEMONSTRATE ALL OF THE FOLLOWING:
16 (1) THE NAME AND ADDRESS OF THE APPLICANT.
17 (2) A STATEMENT OF THE AMOUNT OF FINANCE ASSISTANCE
18 SOUGHT.
19 (3) A STATEMENT OF THE PROJECT, INCLUDING A DETAILED
20 STATEMENT OF THE COST OF THE PROJECT.
21 (4) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
22 SOURCE FOR ANY COST OF THE PROJECT IN EXCESS OF THE AMOUNT
23 REQUESTED.
24 (5) A FIRM COMMITMENT FROM THE APPLICANT OR PROJECT USER
25 TO USE OR LEASE THE PROJECT UPON COMPLETION.
26 (6) ANY OTHER INFORMATION REQUIRED BY THE AUTHORITY.
27 (C) ADDITIONAL REQUIREMENTS FOR CERTAIN PROJECTS.--IF THE
28 APPLICANT IS NOT A POLITICAL SUBDIVISION, LOCAL ECONOMIC
29 DEVELOPMENT AGENCY OR LOCAL ECONOMIC DEVELOPMENT FINANCING
30 AUTHORITY, THE APPLICANT SHALL, IN ADDITION TO THE INFORMATION
20030S0010B1026 - 117 -
1 REQUIRED BY SUBSECTION (B), SUBMIT A COPY OF THE DOCUMENT
2 VERIFYING APPROVAL OF THE PROJECT BY THE APPROPRIATE LOCAL
3 ECONOMIC DEVELOPMENT AGENCY OR LOCAL ECONOMIC DEVELOPMENT
4 FINANCING AUTHORITY. IF THE APPLICANT IS REQUESTING FINANCIAL
5 ASSISTANCE FOR A PROJECT WHICH IS AN INTERAGENCY PROJECT, THE
6 APPLICANT SHALL, IN ADDITION TO THE INFORMATION REQUIRED BY
7 SUBSECTION (B), SUBMIT A COPY OF THE DOCUMENT ISSUED BY THE
8 PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY REFERRING THE
9 APPLICANT TO THE AUTHORITY FOR FINANCIAL ASSISTANCE. IF THE
10 APPLICANT IS NOT A MUNICIPALITY OR MUNICIPAL AUTHORITY AND IS
11 REQUESTING FINANCIAL ASSISTANCE FOR A PROJECT CONSTRUCTING OR
12 IMPROVING TRANSPORTATION INFRASTRUCTURE, THE APPLICANT SHALL, IN
13 ADDITION TO THE INFORMATION REQUIRED BY SUBSECTION (B), SUBMIT A
14 COPY OF THE DOCUMENT VERIFYING APPROVAL OF THE PROJECT BY THE
15 APPROPRIATE MUNICIPALITY OR MUNICIPAL AUTHORITY OR A
16 COMMONWEALTH AGENCY AND A DETERMINATION BY THE APPLICANT THAT
17 FINANCING THE PROJECT THROUGH THE AUTHORITY WILL REDUCE THE COST
18 OF THE PROJECT.
19 (D) LOCAL ECONOMIC DEVELOPMENT AGENCIES.--IF THE APPLICANT
20 IS A LOCAL ECONOMIC DEVELOPMENT AGENCY, IN ADDITION TO THE
21 INFORMATION REQUIRED BY SUBSECTION (B), THE APPLICANT SHALL DO
22 ALL OF THE FOLLOWING:
23 (1) BE INCORPORATED UNDER THE LAWS OF THIS COMMONWEALTH.
24 (2) AGREE TO BE BOUND BY THE RULES OF THE AUTHORITY
25 RELATING TO PROJECTS WHICH RECEIVE FINANCIAL ASSISTANCE UNDER
26 THIS CHAPTER.
27 (3) AGREE TO SUBMIT TO EXAMINATION OF ITS BOOKS, RECORDS
28 AND ACCOUNTS BY THE AUTHORITY AT TIMES AS THE AUTHORITY MAY
29 REQUIRE DURING THE TERM OF ANY LOAN MADE TO IT BY THE
30 AUTHORITY.
20030S0010B1026 - 118 -
1 (E) LOCAL ECONOMIC DEVELOPMENT FINANCING AUTHORITIES.--IF
2 THE APPLICANT IS A LOCAL ECONOMIC DEVELOPMENT FINANCING
3 AUTHORITY, IN ADDITION TO THE INFORMATION REQUIRED BY SUBSECTION
4 (B), THE APPLICANT SHALL DO ALL OF THE FOLLOWING:
5 (1) SUBMIT AN APPLICATION VERIFIED BY THE CHAIRPERSON OF
6 THE LOCAL ECONOMIC DEVELOPMENT FINANCING AUTHORITY AND ANY
7 OTHER INFORMATION REQUIRED BY THE AUTHORITY, INCLUDING ANY
8 APPLICATION FEE.
9 (2) AGREE TO BE BOUND BY THE RULES OF THE AUTHORITY
10 RELATING TO PROJECTS WHICH RECEIVE FINANCIAL ASSISTANCE UNDER
11 THIS CHAPTER.
12 (3) AGREE TO SUBMIT TO EXAMINATION OF ITS BOOKS, RECORDS
13 AND ACCOUNTS BY THE AUTHORITY AT TIMES AS THE AUTHORITY MAY
14 REQUIRE DURING THE TERM OF ANY LOAN MADE TO IT BY THE
15 AUTHORITY.
16 (F) REVIEW.--WITHIN 45 DAYS OF A COMPLETED APPLICATION BEING
17 SUBMITTED, THE BOARD SHALL REVIEW THE APPLICATION TO DETERMINE
18 ALL OF THE FOLLOWING:
19 (1) IF THE FINANCIAL COMMITMENT EXISTS FOR ANY COST OF
20 THE PROJECT IN EXCESS OF THE AMOUNT REQUESTED.
21 (2) IF THE FINANCIAL COMMITMENT FROM THE SOURCE IS FIRM.
22 (3) IF THE SOURCE OF THE FINANCIAL COMMITMENT IS
23 RESPONSIBLE.
24 (4) IF THE COMMITMENT TO USE OR LEASE THE PROJECT UPON
25 COMPLETION IS FIRM.
26 (5) IF, IN THE CASE WHERE THE PROJECT WILL NOT BE USED
27 BY THE APPLICANT, THE PROJECT USER MAY REASONABLY BE EXPECTED
28 TO COMPLY WITH THE TERMS OF THE USE OR LEASE.
29 (6) IF THE APPLICANT SATISFIED THE REQUIREMENTS OF
30 SUBSECTIONS (C), (D) AND (E), IF APPLICABLE.
20030S0010B1026 - 119 -
1 (7) IF THE PROJECT COMPLIES WITH ALL OTHER RULES AND
2 REGULATIONS OF THE AUTHORITY GOVERNING PROJECTS.
3 (G) APPROVAL.--UPON BEING SATISFIED THAT ALL APPLICABLE
4 REQUIREMENTS HAVE BEEN MET, THE BOARD MAY APPROVE THE
5 APPLICATION. IF THE BOARD APPROVES THE APPLICATION, THE BOARD
6 SHALL ENTER INTO A CONTRACT WITH THE APPLICANT AND FINANCE THE
7 LOAN.
8 (H) APPLICABILITY.--IF A PROJECT OF A LOCAL ECONOMIC
9 DEVELOPMENT AGENCY OR A LOCAL ECONOMIC DEVELOPMENT FINANCING
10 AUTHORITY HAS BEEN APPROVED FOR FINANCING AND THE PROJECT IS TO
11 BE FINANCED WITH THE PROCEEDS OF BONDS WHICH ARE NOT EXEMPT FROM
12 FEDERAL INCOME TAXATION, THE PROVISIONS OF CHAPTER 27 OF THE ACT
13 OF JUNE 29, 1996 (P.L.434, NO.67), KNOWN AS THE JOB ENHANCEMENT
14 ACT, SHALL NOT APPLY TO THE FINANCING OF THE PROJECT.
15 (I) LIMITATIONS.--
16 (1) EXCEPT UPON FORECLOSURE OR DEFAULT OR VIOLATION OF A
17 LOAN MADE, THE AUTHORITY MAY NOT APPROVE AN APPLICATION AND
18 FINANCE A PROJECT IF THE AUTHORITY WOULD BE REQUIRED TO
19 OPERATE, SERVICE OR MAINTAIN THE PROJECT UNDER A LEASE OR
20 OTHER AGREEMENT. NOTHING IN THIS PARAGRAPH SHALL PROHIBIT THE
21 AUTHORITY FROM APPROVING AN APPLICATION OR FINANCING A
22 PROJECT IF, AT THE END OF THE TERM OF A LOAN, THE AUTHORITY
23 TRANSFERRED THE PROJECT TO THE APPLICANT, ANY PROJECT USER OR
24 A DESIGNEE OF EITHER.
25 (2) THE AUTHORITY MAY NOT APPROVE AN APPLICATION AND
26 FINANCE A PROJECT WHICH IS A PUBLIC FACILITY IF THE AUTHORITY
27 DETERMINES THAT, IF THE PROJECT WAS FINANCED BY AN ENTITY
28 OTHER THAN THE AUTHORITY, THE PROJECT COULD RECEIVE A RATING
29 OF A OR BETTER FROM EITHER MOODYS INVESTORS SERVICE OR
30 STANDARD & POORS CORPORATION.
20030S0010B1026 - 120 -
1 § 4320. CORE INDUSTRIES INFRASTRUCTURE CAPITALIZATION PROGRAM.
2 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
3 AUTHORITY A PROGRAM TO BE KNOWN AS THE CORE INDUSTRIES
4 INFRASTRUCTURE CAPITALIZATION PROGRAM. THE PROGRAM SHALL PROVIDE
5 FINANCIAL ASSISTANCE IN THE FORM OF LOANS TO ALL OF THE
6 FOLLOWING:
7 (1) TO MEDICAL FACILITIES FOR THE ACQUISITION OR
8 CONSTRUCTION OF PROJECTS WHICH, WHEN COMPLETED, IMPROVE OR
9 CONSTRUCT MEDICAL INFRASTRUCTURE DIRECTLY RELATED TO PATIENT
10 SAFETY.
11 (2) TO MANUFACTURERS FOR THE ACQUISITION OR CONSTRUCTION
12 OF PROJECTS WHICH, WHEN COMPLETED, IMPROVE OR CONSTRUCT
13 INFRASTRUCTURE WHICH CREATES ADDITIONAL FULL-TIME JOBS.
14 (B) APPLICATION.--A MEDICAL FACILITY OR A MANUFACTURER MAY
15 SUBMIT AN APPLICATION TO THE AUTHORITY REQUESTING FINANCIAL
16 ASSISTANCE FOR A PROJECT. THE APPLICATION SHALL BE ON THE FORM
17 REQUIRED BY THE AUTHORITY AND SHALL INCLUDE OR DEMONSTRATE ALL
18 OF THE FOLLOWING:
19 (1) THE NAME AND ADDRESS OF THE APPLICANT.
20 (2) A STATEMENT OF THE AMOUNT OF FINANCIAL ASSISTANCE
21 SOUGHT.
22 (3) A STATEMENT OF THE PROJECT, INCLUDING A DETAILED
23 STATEMENT OF THE COST OF THE PROJECT, AND HOW IT DIRECTLY
24 RELATES TO PATIENT SAFETY.
25 (4) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
26 SOURCE FOR ANY COST OF THE PROJECT IN EXCESS OF THE AMOUNT
27 REQUESTED.
28 (5) A FIRM COMMITMENT FROM THE APPLICANT TO USE OR LEASE
29 THE PROJECT UPON COMPLETION.
30 (6) ANY OTHER INFORMATION REQUIRED BY THE AUTHORITY.
20030S0010B1026 - 121 -
1 (C) REVIEW.--THE AUTHORITY SHALL FORWARD THE APPLICATION TO
2 THE COMMITTEE WHEN IT IS COMPLETE. THE COMMITTEE SHALL REVIEW
3 THE APPLICATION TO DETERMINE ALL OF THE FOLLOWING:
4 (1) IF THE PROJECT IS FOR THE CONSTRUCTION OR
5 ACQUISITION OF MEDICAL INFRASTRUCTURE DIRECTLY RELATED TO
6 PATIENT SAFETY OR FOR THE CONSTRUCTION OR ACQUISITION OF
7 MANUFACTURING INFRASTRUCTURE WHICH CREATES ADDITIONAL FULL-
8 TIME JOBS.
9 (2) IF A FINANCIAL COMMITMENT EXISTS FOR ANY COST OF THE
10 PROJECT IN EXCESS OF THE AMOUNT REQUESTED.
11 (3) IF THE FINANCIAL COMMITMENT FROM THE SOURCE IS FIRM.
12 (4) IF THE SOURCE OF THE FINANCIAL COMMITMENT IS
13 RESPONSIBLE.
14 (5) IF THE APPLICANT IS FIRMLY COMMITTED TO USING OR
15 LEASING THE PROJECT UPON COMPLETION.
16 (6) IF THE APPLICANT COMPLIED WITH ALL OTHER CRITERIA
17 ESTABLISHED BY THE COMMITTEE.
18 (D) APPROVAL.--UPON BEING SATISFIED THAT ALL REQUIREMENTS
19 HAVE BEEN MET, THE COMMITTEE MAY APPROVE THE APPLICATION AND
20 NOTIFY THE BOARD. UPON BEING NOTIFIED THAT A LOAN HAS BEEN
21 APPROVED, THE BOARD SHALL ENTER INTO A CONTRACT WITH THE
22 APPLICANT AND FINANCE THE LOAN. AS PROVIDED IN SUBSECTION (E),
23 THE CONTRACT MAY PERMIT PERFORMANCE-BASED LOAN FORBEARANCE OR
24 FORGIVENESS.
25 (E) FORBEARANCE OR FORGIVENESS.--THE BOARD, IN CONSULTATION
26 WITH THE DEPARTMENT, MAY ESTABLISH GUIDELINES PERMITTING
27 PERFORMANCE-BASED FORBEARANCE OR FORGIVENESS OF PAYMENTS BY LOAN
28 RECIPIENTS UNDER THIS PROGRAM. IF THE BOARD ESTABLISHES
29 GUIDELINES, THE GUIDELINES SHALL PERMIT THE BOARD TO FORBEAR OR
30 FORGIVE PAYMENTS BY LOAN RECIPIENTS UNDER THIS PROGRAM WHEN, IN
20030S0010B1026 - 122 -
1 THE DISCRETION OF THE BOARD, THE BOARD DETERMINES THAT IT IS IN
2 THE INTEREST OF THE COMMONWEALTH TO GRANT FORBEARANCE OR
3 FORGIVENESS.
4 (F) APPLICABILITY.--IF A PROJECT OF A MEDICAL FACILITY OR A
5 MANUFACTURER HAS BEEN APPROVED FOR LOAN FINANCING AND THE
6 PROJECT IS TO BE FINANCED WITH THE PROCEEDS OF BONDS WHICH ARE
7 NOT EXEMPT FROM FEDERAL INCOME TAXATION, THE PROVISIONS OF
8 CHAPTER 27 OF THE ACT OF JUNE 29, 1996 (P.L.434, NO.67), KNOWN
9 AS THE JOB ENHANCEMENT ACT, SHALL NOT APPLY TO THE FINANCING OF
10 THE PROJECT.
11 (G) LIMITATION.--EXCEPT UPON FORECLOSURE OR DEFAULT OR
12 VIOLATION OF A LOAN MADE, THE BOARD MAY NOT APPROVE AN
13 APPLICATION OR FINANCE A PROJECT IF THE AUTHORITY WOULD BE
14 REQUIRED TO OPERATE, SERVICE OR MAINTAIN THE PROJECT UNDER A
15 LEASE OR OTHER AGREEMENT. NOTHING IN THIS SUBSECTION SHALL
16 PROHIBIT THE AUTHORITY FROM APPROVING AN APPLICATION OR
17 FINANCING A PROJECT IF AT THE END OF THE TERM OF A LOAN THE
18 AUTHORITY TRANSFERRED THE PROJECT TO THE MEDICAL FACILITY OR
19 MANUFACTURER OR A DESIGNEE OF THE MEDICAL FACILITY OR
20 MANUFACTURER.
21 § 4321. WATER AND WASTEWATER INFRASTRUCTURE CAPITALIZATION
22 PROGRAM.
23 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
24 AUTHORITY A PROGRAM TO BE KNOWN AS THE WATER AND WASTEWATER
25 INFRASTRUCTURE CAPITALIZATION PROGRAM. THE PROGRAM SHALL PROVIDE
26 FINANCIAL ASSISTANCE IN THE FORM OF LOANS OR SINGLE-YEAR OR
27 MULTIYEAR GRANTS TO MUNICIPALITIES AND MUNICIPAL AUTHORITIES FOR
28 PROJECTS WHICH, WHEN COMPLETED, IMPROVE OR CONSTRUCT WATER AND
29 WASTEWATER INFRASTRUCTURE RELATED TO ECONOMIC DEVELOPMENT.
30 (B) APPLICATION.--A MUNICIPALITY OR A MUNICIPAL AUTHORITY
20030S0010B1026 - 123 -
1 MAY SUBMIT AN APPLICATION TO THE AUTHORITY REQUESTING FINANCIAL
2 ASSISTANCE FOR A PROJECT. THE APPLICATION MUST BE ON THE FORM
3 REQUIRED BY THE AUTHORITY AND MUST INCLUDE OR DEMONSTRATE ALL OF
4 THE FOLLOWING:
5 (1) THE NAME AND ADDRESS OF THE MUNICIPALITY OR
6 MUNICIPAL AUTHORITY.
7 (2) A STATEMENT OF THE TYPE AND AMOUNT OF FINANCIAL
8 ASSISTANCE SOUGHT. IF THE APPLICANT IS REQUESTING FINANCIAL
9 ASSISTANCE IN THE FORM OF A GRANT, THE REQUEST MAY NOT EXCEED
10 75% OF THE COST OF THE PROJECT.
11 (3) A STATEMENT OF THE PROJECT, INCLUDING A DETAILED
12 STATEMENT OF THE COST OF THE PROJECT.
13 (4) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
14 SOURCE FOR ANY COST OF THE PROJECT IN EXCESS OF THE AMOUNT
15 REQUESTED. IF THE APPLICANT IS REQUESTING FINANCIAL
16 ASSISTANCE IN THE FORM OF A GRANT FROM THE AUTHORITY, THE
17 COMMITMENT MAY NOT BE IN THE FORM OF A GRANT FROM A
18 COMMONWEALTH AGENCY.
19 (5) A FIRM COMMITMENT FROM THE MUNICIPALITY OR MUNICIPAL
20 AUTHORITY TO USE THE PROJECT UPON COMPLETION.
21 (6) ANY OTHER INFORMATION REQUIRED BY THE AUTHORITY.
22 (C) GRANTS.--
23 (1) IF AN APPLICANT IS REQUESTING FINANCIAL ASSISTANCE
24 IN THE FORM OF A GRANT, THE AUTHORITY SHALL FORWARD THE
25 APPLICATION TO THE COMMITTEE WHEN IT IS COMPLETE. THE
26 COMMITTEE SHALL REVIEW THE APPLICATION TO DETERMINE ALL OF
27 THE FOLLOWING:
28 (I) IF THE PROJECT IS FOR THE IMPROVEMENT OR
29 CONSTRUCTION OF WATER AND WASTEWATER INFRASTRUCTURE
30 RELATED TO ECONOMIC DEVELOPMENT.
20030S0010B1026 - 124 -
1 (II) IF THERE IS A FINANCIAL COMMITMENT FOR AT LEAST
2 25% OF THE PROJECT.
3 (III) IF THE FINANCIAL COMMITMENT FROM THE SOURCE IS
4 FIRM.
5 (IV) IF THE SOURCE OF THE FINANCIAL COMMITMENT IS
6 RESPONSIBLE.
7 (V) IF THE MUNICIPALITY OR MUNICIPAL AUTHORITY IS
8 FIRMLY COMMITTED TO USING THE PROJECT UPON COMPLETION.
9 (VI) IF THE MUNICIPALITY OR MUNICIPAL AUTHORITY
10 COMPLIED WITH ALL OTHER CRITERIA ESTABLISHED BY THE
11 COMMITTEE.
12 (2) UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE BEEN
13 MET, THE COMMITTEE MAY APPROVE THE APPLICATION AND AWARD A
14 GRANT TO THE APPLICANT FOR THE PROJECT IN ACCORDANCE WITH ALL
15 OF THE FOLLOWING:
16 (I) THE GRANT MAY NOT EXCEED $10,000,000 IN THE
17 AGGREGATE.
18 (II) THE AGGREGATE AMOUNT OF GRANTS AWARDED TO ALL
19 APPLICANTS UNDER THIS SUBSECTION SHALL NOT EXCEED
20 $250,000,000.
21 (3) UPON BEING NOTIFIED THAT A GRANT HAS BEEN AWARDED TO
22 AN APPLICANT, THE BOARD SHALL ENTER INTO A CONTRACT WITH THE
23 APPLICANT AND FINANCE THE GRANT.
24 (D) AUTHORITY LOANS.--
25 (1) IF AN APPLICANT IS REQUESTING FINANCIAL ASSISTANCE
26 IN THE FORM OF A LOAN, THE AUTHORITY SHALL FORWARD THE
27 APPLICATION TO THE BOARD WHEN IT IS COMPLETE. WITHIN 45 DAYS
28 OF A COMPLETED APPLICATION BEING SUBMITTED, THE BOARD SHALL
29 REVIEW THE APPLICATION TO DETERMINE ALL OF THE FOLLOWING:
30 (I) IF THE PROJECT IS FOR THE IMPROVEMENT OR
20030S0010B1026 - 125 -
1 CONSTRUCTION OF WATER AND WASTEWATER INFRASTRUCTURE
2 RELATED TO ECONOMIC DEVELOPMENT.
3 (II) IF A FINANCIAL COMMITMENT EXISTS FOR ANY COST
4 OF THE PROJECT IN EXCESS OF THE AMOUNT REQUESTED.
5 (III) IF THE FINANCIAL COMMITMENT FROM THE SOURCE IS
6 FIRM.
7 (IV) IF THE SOURCE OF THE FINANCIAL COMMITMENT IS
8 RESPONSIBLE.
9 (V) IF THE MUNICIPALITY OR MUNICIPAL AUTHORITY IS
10 FIRMLY COMMITTED TO USING THE PROJECT UPON COMPLETION.
11 (VI) IF THE MUNICIPALITY OR MUNICIPAL AUTHORITY
12 COMPLIED WITH ALL OTHER CRITERIA ESTABLISHED BY THE
13 BOARD.
14 (2) UPON BEING SATISFIED THAT ALL PROGRAM REQUIREMENTS
15 HAVE BEEN MET, THE BOARD MAY APPROVE THE APPLICATION. IF THE
16 BOARD APPROVES THE APPLICATION, THE BOARD SHALL ENTER INTO A
17 CONTRACT WITH THE APPLICANT AND FINANCE THE LOAN.
18 (E) PENNVEST LOANS.--IN ORDER TO FACILITATE ADDITIONAL
19 FUNDING FOR WATER AND WASTEWATER INFRASTRUCTURE PROJECTS RELATED
20 TO ECONOMIC DEVELOPMENT, THE AUTHORITY MAY UTILIZE THE REMAINING
21 AMOUNT OF VOTER-APPROVED DEBT UNDER THE ACT OF MARCH 16, 1992
22 (P.L.10, NO.5), KNOWN AS THE SMALL WATER SYSTEMS ASSISTANCE ACT,
23 IN ACCORDANCE WITH THE FOLLOWING:
24 (1) IF AN APPLICANT IS REQUESTING FINANCIAL ASSISTANCE
25 IN THE FORM OF A LOAN, THE AUTHORITY SHALL FORWARD THE
26 APPLICATION TO THE BOARD WHEN IT IS COMPLETE. WITHIN 45 DAYS
27 OF A COMPLETED APPLICATION BEING SUBMITTED, THE BOARD SHALL
28 REVIEW THE APPLICATION TO DETERMINE ALL OF THE FOLLOWING:
29 (I) IF THE PROJECT IS FOR THE IMPROVEMENT OR
30 CONSTRUCTION OF WATER AND WASTEWATER INFRASTRUCTURE
20030S0010B1026 - 126 -
1 RELATED TO ECONOMIC DEVELOPMENT.
2 (II) IF A FINANCIAL COMMITMENT EXISTS FOR ANY COST
3 OF THE PROJECT IN EXCESS OF THE AMOUNT REQUESTED.
4 (III) IF THE FINANCIAL COMMITMENT FROM THE SOURCE IS
5 FIRM.
6 (IV) IF THE SOURCE OF THE FINANCIAL COMMITMENT IS
7 RESPONSIBLE.
8 (V) IF THE MUNICIPALITY OR MUNICIPAL AUTHORITY IS
9 FIRMLY COMMITTED TO USING THE PROJECT UPON COMPLETION.
10 (VI) IF THE MUNICIPALITY OR MUNICIPAL AUTHORITY
11 COMPLIED WITH ALL OTHER CRITERIA ESTABLISHED BY THE
12 BOARD.
13 (2) UPON BEING SATISFIED THAT ALL PROGRAM REQUIREMENTS
14 HAVE BEEN MET, THE BOARD MAY APPROVE THE APPLICATION. IF THE
15 BOARD APPROVES THE APPLICATION, THE BOARD SHALL DO ALL OF THE
16 FOLLOWING:
17 (I) NOTIFY THE APPLICANT OF THE APPROVAL.
18 (II) NOTIFY THE PENNSYLVANIA INFRASTRUCTURE
19 INVESTMENT AUTHORITY OF THE AMOUNT APPROVED.
20 (3) LOANS APPROVED UNDER PARAGRAPH (2) SHALL NOT EXCEED
21 $220,000,000 IN THE AGGREGATE.
22 (4) UPON BEING NOTIFIED THAT A LOAN HAS BEEN APPROVED
23 FOR AN APPLICANT, THE PENNSYLVANIA INFRASTRUCTURE INVESTMENT
24 AUTHORITY SHALL ENTER INTO A CONTRACT WITH THE APPLICANT AND
25 FINANCE THE LOAN.
26 (F) LIMITATION.--EXCEPT UPON FORECLOSURE OR DEFAULT OR
27 VIOLATION OF A LOAN MADE, THE BOARD MAY NOT APPROVE AN
28 APPLICATION OR FINANCE A PROJECT IF THE AUTHORITY WOULD BE
29 REQUIRED TO OPERATE, SERVICE OR MAINTAIN THE PROJECT UNDER A
30 LEASE OR OTHER AGREEMENT. NOTHING IN THIS SUBSECTION SHALL
20030S0010B1026 - 127 -
1 PROHIBIT THE AUTHORITY FROM APPROVING AN APPLICATION OR
2 FINANCING A PROJECT IF, AT THE END OF THE TERM OF A LOAN, THE
3 AUTHORITY TRANSFERRED THE PROJECT TO THE MUNICIPAL AUTHORITY.
4 (G) DEBT.--IF THE QUESTION IS SUBMITTED TO THE ELECTORS AND
5 APPROVED IN ACCORDANCE WITH LAW, THE AUTHORITY IS AUTHORIZED TO
6 INCUR A MAXIMUM OF $250,000,000 TO FINANCE GRANTS AND LOANS
7 AWARDED UNDER SUBSECTION (C) AND (D). ANNUAL PAYMENTS FOR
8 PRINCIPAL AND INTEREST RESULTING FROM GRANTS MADE UNDER THIS
9 SECTION SHALL BE ANNUALLY APPROPRIATED TO THE AUTHORITY FROM THE
10 GENERAL FUND.
11 § 4322. BUSINESS IN OUR SITES PROGRAM.
12 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
13 AUTHORITY A PROGRAM TO BE KNOWN AS THE BUSINESS IN OUR SITES
14 PROGRAM. THE PROGRAM SHALL PROVIDE FINANCIAL ASSISTANCE IN THE
15 FORM OF LOANS TO PERSONS FOR PROJECTS WHICH, WHEN COMPLETED,
16 IMPROVE EXISTING BUSINESS SITES, CONSTRUCT NEW BUSINESS SITES OR
17 IMPROVE OR CONSTRUCT BUSINESS SITE INFRASTRUCTURE.
18 (B) APPLICATION.--A PERSON MAY SUBMIT AN APPLICATION TO THE
19 AUTHORITY REQUESTING FINANCIAL ASSISTANCE FOR A PROJECT. THE
20 APPLICATION SHALL BE ON THE FORM REQUIRED BY THE AUTHORITY AND
21 SHALL INCLUDE OR DEMONSTRATE ALL OF THE FOLLOWING:
22 (1) THE NAME AND ADDRESS OF THE APPLICANT.
23 (2) A STATEMENT OF THE AMOUNT OF FINANCIAL ASSISTANCE
24 SOUGHT.
25 (3) A STATEMENT OF THE PROJECT, INCLUDING A DETAILED
26 STATEMENT OF THE COST OF THE PROJECT.
27 (4) IF THE APPLICANT IS NOT A LOCAL ECONOMIC DEVELOPMENT
28 AGENCY, A COPY OF THE DOCUMENT VERIFYING APPROVAL OF THE
29 PROJECT BY THE APPROPRIATE LOCAL ECONOMIC DEVELOPMENT AGENCY.
30 (5) A FIRM FINANCIAL COMMITMENT FROM A RESPONSIBLE
20030S0010B1026 - 128 -
1 SOURCE FOR ANY COST OF THE PROJECT IN EXCESS OF THE AMOUNT
2 REQUESTED.
3 (6) A FIRM COMMITMENT FROM THE APPLICANT TO USE OR LEASE
4 THE PROJECT UPON COMPLETION.
5 (7) ANY OTHER INFORMATION REQUIRED BY THE AUTHORITY.
6 (C) REVIEW.--THE AUTHORITY SHALL FORWARD THE APPLICATION TO
7 THE COMMITTEE WHEN IT IS COMPLETE. THE COMMITTEE SHALL REVIEW
8 THE APPLICATION TO DETERMINE ALL OF THE FOLLOWING:
9 (1) IF THE PROJECT IS FOR THE IMPROVEMENT OF EXISTING
10 BUSINESS SITES, THE CONSTRUCTION OF NEW BUSINESS SITES OR THE
11 IMPROVEMENT OR CONSTRUCTION OF BUSINESS SITE INFRASTRUCTURE.
12 (2) IF THE PROJECT IS APPROVED BY THE APPROPRIATE LOCAL
13 ECONOMIC DEVELOPMENT AGENCY WHEN THE APPLICANT IS NOT A LOCAL
14 ECONOMIC DEVELOPMENT AGENCY.
15 (3) IF A FINANCIAL COMMITMENT EXISTS FOR ANY COST OF THE
16 PROJECT IN EXCESS OF THE AMOUNT REQUESTED.
17 (4) IF THE FINANCIAL COMMITMENT FROM THE SOURCE IS FIRM.
18 (5) IF THE SOURCE OF THE FINANCIAL COMMITMENT IS
19 RESPONSIBLE.
20 (6) IF THE APPLICANT IS FIRMLY COMMITTED TO USING OR
21 LEASING THE PROJECT UPON COMPLETION.
22 (7) IF THE APPLICANT COMPLIED WITH ALL OTHER CRITERIA
23 ESTABLISHED BY THE COMMITTEE.
24 (D) APPROVAL.--UPON BEING SATISFIED THAT ALL REQUIREMENTS
25 HAVE BEEN MET, THE COMMITTEE MAY APPROVE THE APPLICATION AND
26 NOTIFY THE BOARD. UPON BEING NOTIFIED THAT A LOAN HAS BEEN
27 APPROVED, THE BOARD SHALL ENTER INTO A CONTRACT WITH THE
28 APPLICANT AND FINANCE THE LOAN. AS PROVIDED IN SUBSECTION (E),
29 THE CONTRACT MAY PERMIT PERFORMANCE-BASED LOAN FORBEARANCE OR
30 FORGIVENESS.
20030S0010B1026 - 129 -
1 (E) FORBEARANCE OR FORGIVENESS.--THE BOARD, IN CONSULTATION
2 WITH THE DEPARTMENT, MAY ESTABLISH GUIDELINES PERMITTING
3 PERFORMANCE-BASED FORBEARANCE OR FORGIVENESS OF PAYMENTS BY LOAN
4 RECIPIENTS UNDER THIS PROGRAM. IF THE BOARD ESTABLISHES
5 GUIDELINES, THE GUIDELINES SHALL PERMIT THE BOARD TO FORBEAR OR
6 FORGIVE PAYMENTS BY LOAN RECIPIENTS UNDER THIS PROGRAM WHEN, IN
7 THE DISCRETION OF THE BOARD, THE BOARD DETERMINES THAT IT IS IN
8 THE INTEREST OF THE AUTHORITY TO GRANT FORBEARANCE OR
9 FORGIVENESS.
10 (F) LIMITATION.--EXCEPT UPON FORECLOSURE OR DEFAULT OR
11 VIOLATION OF A LOAN MADE, THE BOARD MAY NOT APPROVE AN
12 APPLICATION OR FINANCE A PROJECT IF THE AUTHORITY WOULD BE
13 REQUIRED TO OPERATE, SERVICE OR MAINTAIN THE PROJECT UNDER A
14 LEASE OR OTHER AGREEMENT. NOTHING IN THIS SUBSECTION SHALL
15 PROHIBIT THE AUTHORITY FROM APPROVING AN APPLICATION OR
16 FINANCING A PROJECT IF, AT THE END OF THE TERM OF A LOAN, THE
17 AUTHORITY TRANSFERRED THE PROJECT TO THE LOCAL ECONOMIC
18 DEVELOPMENT AUTHORITY.
19 § 4323. FIRST INDUSTRIES PROGRAM.
20 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
21 AUTHORITY A PROGRAM TO BE KNOWN AS THE FIRST INDUSTRIES PROGRAM.
22 THE PROGRAM SHALL PROVIDE FINANCIAL ASSISTANCE IN THE FORM OF
23 LOANS TO PERSONS ENGAGED IN AGRICULTURE PRODUCTION OR TO PERSONS
24 INVOLVED IN TOURISM-RELATED ACTIVITIES.
25 (B) APPLICATION.--A PERSON MAY SUBMIT AN APPLICATION TO THE
26 AUTHORITY REQUESTING FINANCIAL ASSISTANCE FOR A PROJECT. THE
27 APPLICATION SHALL BE ON THE FORM REQUIRED BY THE AUTHORITY AND
28 SHALL INCLUDE OR DEMONSTRATE ALL OF THE FOLLOWING:
29 (1) THE NAME AND ADDRESS OF THE PERSON.
30 (2) A STATEMENT THAT THE PERSON IS ENGAGED IN
20030S0010B1026 - 130 -
1 AGRICULTURE PRODUCTION OR IS INVOLVED IN TOURISM-RELATED
2 ACTIVITIES.
3 (3) A STATEMENT OF THE AMOUNT OF FINANCIAL ASSISTANCE
4 SOUGHT.
5 (4) A STATEMENT OF THE PROJECT, INCLUDING A DETAILED
6 STATEMENT OF THE COST OF THE PROJECT.
7 (5) ANY ADDITIONAL INFORMATION REQUIRED BY CHAPTER 23
8 (RELATING TO SMALL BUSINESS FIRST).
9 (6) ANY OTHER INFORMATION REQUIRED BY THE AUTHORITY.
10 (C) REVIEW.--THE AUTHORITY SHALL FORWARD THE APPLICATION TO
11 THE DEPARTMENT WHEN IT IS COMPLETE. THE DEPARTMENT SHALL REVIEW
12 THE APPLICATION IN ACCORDANCE WITH THE REQUIREMENTS OF THIS
13 SECTION AND CHAPTER 23 (RELATING TO SMALL BUSINESS FIRST). IF
14 THE DEPARTMENT IS SATISFIED THAT ALL REQUIREMENTS HAVE BEEN MET,
15 THE DEPARTMENT MAY RECOMMEND APPROVAL OF THE APPLICATION TO THE
16 BOARD.
17 (D) APPROVAL.--IF THE BOARD RECEIVES A RECOMMENDATION FOR
18 APPROVAL OF AN APPLICATION FROM THE DEPARTMENT, THE BOARD MAY
19 APPROVE THE APPLICATION AND FINANCE THE LOAN.
20 (E) LOAN SERVICE.--ANY LOAN FINANCED BY THE AUTHORITY UNDER
21 THIS PROGRAM SHALL BE ADMINISTERED BY THE DEPARTMENT. THE
22 AUTHORITY AND THE DEPARTMENT SHALL ENTER INTO AN AGREEMENT IN
23 WHICH THE DEPARTMENT AGREES TO TRANSFER TO THE AUTHORITY IN A
24 TIMELY MANNER ANY PAYMENTS THE DEPARTMENT RECEIVES ON LOANS MADE
25 IN ACCORDANCE WITH THIS SECTION.
26 § 4324. ECONOMIC ENHANCEMENT FINANCING PROGRAM.
27 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
28 AUTHORITY A PROGRAM TO BE KNOWN AS THE ECONOMIC ENHANCEMENT
29 FINANCING PROGRAM. THE PROGRAM SHALL PROVIDE FINANCIAL
30 ASSISTANCE TO PERSONS IN THE FORM OF LOANS OR SINGLE-YEAR OR
20030S0010B1026 - 131 -
1 MULTIYEAR GRANTS FOR PROJECTS.
2 (B) APPLICATION.--A PERSON MAY SUBMIT AN APPLICATION TO THE
3 AUTHORITY REQUESTING FINANCIAL ASSISTANCE FOR A PROJECT. THE
4 APPLICATION SHALL BE ON THE FORM REQUIRED BY THE AUTHORITY AND
5 SHALL INCLUDE OR DEMONSTRATE ALL OF THE FOLLOWING:
6 (1) THE NAME AND ADDRESS OF THE APPLICANT.
7 (2) A STATEMENT OF THE TYPE OF FINANCIAL ASSISTANCE
8 SOUGHT.
9 (3) A STATEMENT OF THE PROJECT, INCLUDING A DETAILED
10 STATEMENT OF THE COST OF THE PROJECT.
11 (4) ANY OTHER INFORMATION REQUIRED BY THE AUTHORITY.
12 (C) REVIEW.--THE AUTHORITY SHALL FORWARD THE APPLICATION TO
13 THE COMMITTEE WHEN IT IS COMPLETE. THE COMMITTEE SHALL REVIEW
14 THE APPLICATION TO DETERMINE ALL OF THE FOLLOWING:
15 (1) IF THE APPLICANT IS A PERSON THAT OWNS PROPERTY IN A
16 TAX INCENTIVE DISTRICT OR IF THE APPLICANT IS AN ISSUING
17 AUTHORITY OF A TAX INCREMENT DISTRICT LOCATED WITHIN A TAX
18 INCENTIVE DISTRICT.
19 (2) THE PROJECT WOULD BE LOCATED IN A TAX INCENTIVE
20 DISTRICT OR IS LOCATED IN A TAX INCREMENT DISTRICT.
21 (3) THE PROJECT WOULD DO OR DOES ANY OF THE FOLLOWING:
22 (I) CREATES CAREER-ORIENTED NET NEW JOBS OR PRESERVE
23 JOBS.
24 (II) INCREASES AND DIVERSIFIES THE MANUFACTURING
25 BASE OF THIS COMMONWEALTH.
26 (III) AIDS IN THE EXPANSION OF EXISTING PRIVATE
27 COMPANIES, PARTICULARLY THOSE THAT SELL THEIR PRODUCTS
28 OUTSIDE THIS COMMONWEALTH.
29 (IV) ATTRACTS NEW INDUSTRIES WITH NEW PRODUCTS INTO
30 THIS COMMONWEALTH.
20030S0010B1026 - 132 -
1 (V) PROMOTES INDUSTRIAL, COMMERCIAL AND OTHER
2 ECONOMIC DEVELOPMENT WITHIN THIS COMMONWEALTH.
3 (VI) PROMOTES A HEALTHY ENVIRONMENT THROUGH THE
4 ABATEMENT, SAFE STORAGE, TRANSPORTATION, REDUCTION,
5 ELIMINATION, REMEDIATION AND DISPOSAL WITHIN THIS
6 COMMONWEALTH OF POLLUTANTS AND WASTES.
7 (VII) OTHERWISE PROMOTES THE HEALTH, WELFARE AND
8 SAFETY OF THE RESIDENTS OF THIS COMMONWEALTH BY PROMOTING
9 ECONOMIC ACTIVITY AND EFFICIENCY OR ALLEVIATING OR
10 ELIMINATING UNEMPLOYMENT, BLIGHT AND OTHER UNHEALTHY
11 CONDITIONS.
12 (4) IF THE APPLICANT COMPLIED WITH ALL OTHER CRITERIA
13 ESTABLISHED BY THE COMMITTEE.
14 (D) AWARD.--UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE
15 BEEN MET, THE COMMITTEE MAY APPROVE AN APPLICATION AND AWARD A
16 GRANT OR LOAN FOR A PROJECT IN ACCORDANCE WITH THE FOLLOWING:
17 (1) THE GRANT OR LOAN MAY NOT EXCEED $10,000,000 IN THE
18 AGGREGATE.
19 (2) THE AGGREGATE AMOUNT OF GRANTS OR LOANS AWARDED TO
20 ALL APPLICANTS UNDER THIS SECTION SHALL NOT EXCEED FINANCING
21 SUPPORTED BY THE ECONOMIC ENHANCEMENT FUND.
22 (E) FINANCING.--UPON BEING NOTIFIED THAT A GRANT OR LOAN HAS
23 BEEN AWARDED TO AN APPLICANT, THE BOARD SHALL FINANCE THE GRANT
24 OR LOAN.
25 (F) DEBT LIMITATION.--THE AUTHORITY IS AUTHORIZED ON A
26 CONTINUING BASIS TO INCUR DEBT SUPPORTED BY THE ECONOMIC
27 ENHANCEMENT FUND TO FINANCE GRANTS AND LOANS AWARDED UNDER THIS
28 SECTION. ALL PAYMENTS FOR THE DEBT RESULTING FROM GRANTS OR
29 LOANS MADE UNDER THIS SECTION SHALL BE PAID FROM THE ECONOMIC
30 ENHANCEMENT FUND.
20030S0010B1026 - 133 -
1 (G) CONTRACT PROCEEDS.--ANY MONEY RECEIVED FROM A GRANT OR
2 LOAN RECIPIENT UNDER THIS PROGRAM SHALL BE DEPOSITED IN THE
3 ECONOMIC ENHANCEMENT FUND.
4 (H) FIRST ISSUANCE.--THE FIRST SERIES OF BONDS TO BE ISSUED
5 BY THE AUTHORITY SHALL BE ISSUED IN A MANNER AND AT A TIME SO
6 THAT THE NET PROCEEDS OF THE BONDS SHALL BE AVAILABLE ON OR
7 BEFORE JUNE 30, 2004, OR AS SOON AS PRACTICABLE AFTER JUNE 30,
8 2004.
9 § 4325. SECONDARY GROWTH STAGE FINANCING PROGRAM.
10 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
11 AUTHORITY A PROGRAM TO BE KNOWN AS THE SECONDARY GROWTH STAGE
12 FINANCING PROGRAM. THE PROGRAM SHALL PROVIDE FINANCIAL
13 ASSISTANCE TO CERTAIN PERSONS IN THE FORM OF LOANS FOR PROJECTS.
14 (B) GROWTH STAGE PARTNERS.--
15 (1) A PERSON MAY SUBMIT AN APPLICATION TO THE AUTHORITY
16 REQUESTING DESIGNATION AS A GROWTH STAGE PARTNER. THE
17 APPLICATION SHALL BE ON THE FORM REQUIRED BY THE AUTHORITY
18 AND SHALL INCLUDE OR DEMONSTRATE ALL OF THE FOLLOWING:
19 (I) THE NAME AND ADDRESS OF THE PERSON.
20 (II) A STATEMENT DEMONSTRATING THAT THE PERSON IS
21 EXPERIENCED IN FINANCING EXPANDING BUSINESSES.
22 (III) A STATEMENT OF THE MAXIMUM AMOUNT OF
23 INVESTMENT THE PERSON IS WILLING TO MAKE IN THE PROGRAM.
24 (IV) ANY OTHER INFORMATION REQUIRED BY THE
25 AUTHORITY.
26 (2) THE AUTHORITY SHALL FORWARD THE APPLICATION TO THE
27 COMMITTEE. THE COMMITTEE SHALL REVIEW THE APPLICATION AND
28 DETERMINE IF THE PERSON POSSESSES PRUDENT INVESTMENT
29 EXPERIENCE. UPON BEING SATISFIED THAT ALL REQUIREMENTS HAVE
30 BEEN MET, THE COMMITTEE SHALL RECOMMEND THE PERSON TO THE
20030S0010B1026 - 134 -
1 BOARD.
2 (3) IF THE BOARD RECEIVES A RECOMMENDATION FROM THE
3 COMMITTEE, THE BOARD SHALL ENTER INTO A CONTRACT WITH THE
4 PERSON AND DESIGNATE THE PERSON A GROWTH STAGE PARTNER IN
5 ACCORDANCE WITH ALL OF THE FOLLOWING:
6 (I) THE BOARD SHALL ENSURE THAT AT LEAST ONE GROWTH
7 STAGE PARTNER EXISTS IN EACH GEOGRAPHIC REGION OF THE
8 COMMONWEALTH.
9 (II) THE CONTRACT SHALL SPECIFY THAT LOAN PAYMENTS
10 WILL BE APPLIED ON A PRO RATA BASIS.
11 (C) LOANS.--
12 (1) A PERSON MAY SUBMIT AN APPLICATION TO A GROWTH STAGE
13 PARTNER REQUESTING FINANCIAL ASSISTANCE FOR A PROJECT. THE
14 APPLICATION SHALL BE ON THE FORM REQUIRED BY THE AUTHORITY
15 AND SHALL INCLUDE OR DEMONSTRATE ALL OF THE FOLLOWING:
16 (I) THE NAME AND ADDRESS OF THE PERSON.
17 (II) A STATEMENT THAT THE PERSON HAS BEEN IN
18 BUSINESS MORE THAN TWO YEARS BUT LESS THAN SEVEN.
19 (III) A STATEMENT OF THE AMOUNT OF FINANCIAL
20 ASSISTANCE SOUGHT.
21 (IV) A STATEMENT OF THE PROJECT INCLUDING A DETAILED
22 STATEMENT OF THE COST OF THE PROJECT.
23 (V) ANY OTHER INFORMATION REQUIRED BY THE AUTHORITY
24 OR BY THE GROWTH STAGE PARTNER.
25 (2) THE GROWTH STAGE PARTNER SHALL REVIEW THE
26 APPLICATION TO DETERMINE IF THE PROJECT IS A RESPONSIBLE
27 INVESTMENT. IF THE GROWTH STAGE PARTNER IS SATISFIED THAT THE
28 PROJECT IS RESPONSIBLE, THE GROWTH STAGE PARTNER MAY
29 RECOMMEND APPROVAL OF THE APPLICATION TO THE BOARD.
30 (3) IF THE BOARD RECEIVES A RECOMMENDATION FOR APPROVAL
20030S0010B1026 - 135 -
1 OF AN APPLICATION FROM A GROWTH STAGE PARTNER, THE BOARD MAY
2 APPROVE THE APPLICATION.
3 (4) UPON APPROVAL OF THE APPLICATION, THE GROWTH STAGE
4 PARTNER AND THE AUTHORITY SHALL ENTER INTO A CONTRACT WITH
5 THE APPLICANT AND FINANCE THE LOAN IN ACCORDANCE WITH THE
6 FOLLOWING:
7 (I) THE GROWTH STAGE PARTNER SHALL FINANCE AT LEAST
8 25% OF THE LOAN AMOUNT.
9 (II) THE AUTHORITY MAY FINANCE THE LOAN IN AN AMOUNT
10 NOT TO EXCEED 75% OF THE LOAN.
11 (III) THE CONTRACT MAY INCLUDE A PROVISION GRANTING
12 THE GROWTH STAGE PARTNER A MORTGAGE INTEREST IN PROPERTY
13 OWNED BY THE APPLICANT.
14 (D) LOAN SERVICE.--ANY LOAN FINANCED BY THE AUTHORITY UNDER
15 THIS SECTION SHALL BE ADMINISTERED BY THE GROWTH STAGE PARTNER.
16 THE AUTHORITY AND EACH GROWTH STAGE PARTNER SHALL ENTER INTO AN
17 AGREEMENT PURSUANT TO WHICH THE GROWTH STAGE PARTNER AGREES TO
18 TRANSFER TO THE AUTHORITY IN A TIMELY MANNER ITS PRO RATA SHARE
19 OF ANY PAYMENTS RECEIVED BY THE GROWTH STAGE PARTNER ON LOANS
20 MADE IN ACCORDANCE WITH THIS SECTION.
21 § 4326. COMMUNITY DEVELOPMENT BANK PROGRAM (RESERVED).
22 SUBCHAPTER E
23 MISCELLANEOUS
24 (RESERVED)
25 CHAPTER 45
26 LOCAL ECONOMIC DEVELOPMENT FINANCING AUTHORITIES
27 (RESERVED)
28 CHAPTER 47
29 PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY
30 (RESERVED)
20030S0010B1026 - 136 -
1 SECTION 2. TITLE 72 IS AMENDED BY ADDING PARTS TO READ:
2 PART III
3 FUNDS
4 CHAPTER
5 72. ECONOMIC ENHANCEMENT FUND
6 CHAPTER 72
7 ECONOMIC ENHANCEMENT FUND
8 SEC.
9 7201. SCOPE.
10 7202 DEFINITIONS.
11 7203. ESTABLISHMENT.
12 7204. CALCULATION.
13 7205. TRANSFER.
14 7206. APPROPRIATION AND PAYMENTS.
15 § 7201. SCOPE.
16 THIS CHAPTER RELATES TO THE ECONOMIC ENHANCEMENT FUND.
17 § 7202. DEFINITIONS.
18 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
19 SHALL HAVING THE MEANING GIVEN TO THEM IN THIS SECTION UNLESS
20 THE CONTEXT CLEARLY INDICATES OTHERWISE:
21 "AUTHORITY." THE PENNSYLVANIA ECONOMIC DEVELOPMENT AUTHORITY
22 ESTABLISHED BY 12 PA.C.S. CH. 43 (RELATING TO PENNSYLVANIA
23 ECONOMIC DEVELOPMENT FINANCING AUTHORITY).
24 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
25 "FUND." THE ECONOMIC ENHANCEMENT FUND ESTABLISHED BY SECTION
26 7203 (RELATING TO ESTABLISHMENT).
27 "TAX INCENTIVE DISTRICT." PROPERTY DESIGNATED BY THE
28 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AS A TAX
29 INCENTIVE DISTRICT IN ACCORDANCE WITH 12 PA.C.S. CH. 33
30 (RELATING TO ECONOMIC ENHANCEMENT).
20030S0010B1026 - 137 -
1 "TAX REFORM CODE OF 1971." THE ACT OF MARCH 4, 1971 (P.L.6,
2 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
3 § 7203. ESTABLISHMENT.
4 THERE IS HEREBY ESTABLISHED A SPECIAL FUND KNOWN AS THE
5 ECONOMIC ENHANCEMENT FUND. INTEREST INCOME DERIVED FROM
6 INVESTMENT OF THE MONEY IN THE FUND SHALL BE CREDITED BY THE
7 TREASURY DEPARTMENT TO THE FUND.
8 § 7204. CALCULATION.
9 WITHIN 30 DAYS OF THE END OF EACH QUARTER, THE DEPARTMENT
10 SHALL CALCULATE AND NOTIFY THE SECRETARY OF THE BUDGET OF THE
11 AGGREGATE REVENUE RECEIVED PURSUANT TO ARTICLES II, IV AND VI OF
12 THE TAX REFORM CODE OF 1971 FROM TAXPAYERS LOCATED WITHIN TAX
13 INCENTIVE DISTRICTS.
14 § 7205. TRANSFER.
15 WITHIN TEN DAYS OF RECEIVING NOTIFICATION IN ACCORDANCE WITH
16 SECTION 7204 (RELATING TO CALCULATION), THE SECRETARY OF THE
17 BUDGET SHALL DIRECT THE STATE TREASURER TO TRANSFER A SUM, EQUAL
18 TO 25% OF THE AGGREGATE REVENUE RECEIVED PURSUANT TO ARTICLES
19 II, IV AND VI OF THE TAX REFORM CODE OF 1971, FROM TAXPAYERS
20 LOCATED WITHIN TAX INCENTIVE DISTRICTS, FROM THE GENERAL FUND TO
21 THE FUND. TRANSFERS FROM THE GENERAL FUND TO THE FUND SHALL NOT
22 EXCEED $10,000,000 IN THE AGGREGATE IN ANY ONE FISCAL YEAR.
23 § 7206. APPROPRIATION AND PAYMENTS.
24 MONEY IN THE FUND IS HEREBY APPROPRIATED ON A CONTINUING
25 BASIS TO THE AUTHORITY FOR THE ECONOMIC ENHANCEMENT FINANCING
26 PROGRAM ESTABLISHED IN 12 PA.C.S. § 4324 (RELATING TO ECONOMIC
27 ENHANCEMENT FINANCING PROGRAM). THE STATE TREASURER SHALL
28 PROVIDE SEMIANNUAL PAYMENTS TO THE AUTHORITY ON AUGUST 1 AND
29 FEBRUARY 1 OF EACH YEAR UNTIL THE AUTHORITY IS TERMINATED IN
30 ACCORDANCE WITH 12 PA.C.S. § 4303(J) (RELATING TO AUTHORITY).
20030S0010B1026 - 138 -
1 AUGUST 1 PAYMENTS SHALL BE EQUAL TO THE BALANCE OF THE FUND ON
2 JULY 15 OF THAT CALENDAR YEAR, AND FEBRUARY 1 PAYMENTS SHALL BE
3 EQUAL TO THE BALANCE OF THE FUND ON JANUARY 15 OF THAT CALENDAR
4 YEAR.
5 PART IV
6 DEBT
7 CHAPTER
8 91. CAPITAL FACILITIES
9 92. SPORTS FACILITIES
10 CHAPTER 91
11 CAPITAL FACILITIES
12 SEC.
13 9101. SCOPE OF CHAPTER.
14 9102. DEFINITIONS.
15 9103. PROCEDURES FOR CAPITAL BUDGET BILL AND DEBT-AUTHORIZING
16 LEGISLATION.
17 9104. CERTIFICATES OF THE AUDITOR GENERAL.
18 9105. CONSTITUTIONAL LIMITATIONS, AUTHORIZATIONS, ISSUING
19 OFFICIALS.
20 9106. TEMPORARY BORROWING.
21 9107. BONDS, ISSUE OF BONDS AND NOTES, MATURITY, INTEREST.
22 9108. DIRECT OBLIGATIONS, EXEMPTION FROM TAXATION, MEANS OF
23 PAYMENT.
24 9109. SALE OF BONDS.
25 9110. DISPOSITION AND USE OF PROCEEDS.
26 9111. CAPITAL DEBT FUND; INVESTMENTS; REDEMPTION OF BONDS.
27 9112. FUNDING BONDS.
28 9113. REPORTING REQUIREMENTS.
29 9114. REGISTRATION OF BONDS.
30 9115. VOTING REQUIREMENTS.
20030S0010B1026 - 139 -
1 9116. APPROPRIATION.
2 9117. APPROPRIATION FOR AND LIMITATION ON REDEVELOPMENT
3 ASSISTANCE AND SITE DEVELOPMENT CAPITAL PROJECTS.
4 9118. FUNDING AND ADMINISTRATION OF REDEVELOPMENT ASSISTANCE
5 CAPITAL PROJECTS.
6 9119. FUNDING AND ADMINISTRATION OF SITE DEVELOPMENT CAPITAL
7 PROJECTS.
8 9120. CAPITAL PROJECT OVERSIGHT AND REVIEW COMMITTEE.
9 § 9101. SCOPE OF CHAPTER.
10 THIS CHAPTER DEALS WITH CAPITAL FACILITIES.
11 § 9102. DEFINITIONS.
12 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
13 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
14 CONTEXT CLEARLY INDICATES OTHERWISE:
15 "ACQUISITION COST." THE COST OF ACQUIRING:
16 (1) BUILDINGS;
17 (2) STRUCTURES;
18 (3) FACILITIES;
19 (4) PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR
20 INTANGIBLE; OR
21 (5) ANY OTHER INTEREST;
22 NECESSARY OR DESIRABLE IN CONNECTION WITH A CAPITAL PROJECT,
23 WHETHER THE ACQUISITION BE BY PURCHASE OR BY CONDEMNATION,
24 INCLUDING THE AMOUNT OF AN AWARD OR FINAL JUDGMENT IN A
25 PROCEEDING TO ACQUIRE BY CONDEMNATION LANDS, RIGHTS-OF-WAY,
26 RIGHTS-OF-SLOPE, PROPERTY RIGHTS, FRANCHISES, EASEMENTS OR OTHER
27 INTERESTS AS DEEMED NECESSARY OR CONVENIENT IN CONNECTION WITH
28 THE ACQUISITION OR CONSTRUCTION OF A PROJECT, AND COSTS OF
29 OPTIONS AND PARTIAL PAYMENTS ON AND UNDER OPTIONS.
30 "CAPITAL PROJECT." A PROJECT WHICH IS FINANCED BY DEBT OR BY
20030S0010B1026 - 140 -
1 OTHER FUNDS AND WHICH MEETS ALL OF THE FOLLOWING:
2 (1) IS AN UNDERTAKING TO CONSTRUCT, REPAIR, RENOVATE,
3 IMPROVE, EQUIP, FURNISH OR ACQUIRE ANY:
4 (I) BUILDING, STRUCTURE, FACILITY OR PHYSICAL PUBLIC
5 BETTERMENT OR IMPROVEMENT;
6 (II) LAND OR RIGHTS IN LAND; OR
7 (III) FURNISHINGS, MACHINERY, APPARATUS OR EQUIPMENT
8 FOR A BUILDING, STRUCTURE, FACILITY OR PHYSICAL PUBLIC
9 BETTERMENT OR IMPROVEMENT.
10 (2) IS DESIGNATED IN A CAPITAL BUDGET AS A CAPITAL
11 PROJECT.
12 (3) HAS AN ESTIMATED USEFUL LIFE IN EXCESS OF FIVE
13 YEARS.
14 (4) HAS AN ESTIMATED FINANCIAL COST IN EXCESS OF
15 $250,000. THIS PARAGRAPH DOES NOT APPLY TO ORIGINAL EQUIPMENT
16 OR FURNISHINGS FOR PREVIOUSLY AUTHORIZED PUBLIC IMPROVEMENT
17 PROJECTS.
18 CAPITAL PROJECTS ARE CATEGORIZED AS FLOOD CONTROL PROJECTS,
19 HIGHWAY PROJECTS, PUBLIC IMPROVEMENT PROJECTS, REDEVELOPMENT
20 ASSISTANCE CAPITAL PROJECTS, SITE DEVELOPMENT CAPITAL PROJECTS
21 AND TRANSPORTATION ASSISTANCE PROJECTS.
22 "COMMITTEE." THE CAPITAL PROJECT OVERSIGHT AND REVIEW
23 COMMITTEE ESTABLISHED IN SECTION 9120 (RELATING TO CAPITAL
24 PROJECT OVERSIGHT AND REVIEW COMMITTEE).
25 "COMMONWEALTH AGENCY OR AUTHORITY." EXCLUDES AN AGENCY OR
26 AUTHORITY ORGANIZED BY ACTION OF A POLITICAL SUBDIVISION.
27 "CONSTRUCTION COST." OBLIGATIONS INCURRED:
28 (1) FOR LABOR AND TO CONTRACTORS, BUILDERS AND
29 MATERIALMEN IN CONNECTION WITH THE CONSTRUCTION, FABRICATION
30 OR ASSEMBLY OF A CAPITAL PROJECT;
20030S0010B1026 - 141 -
1 (2) FOR MACHINERY AND EQUIPMENT REQUIRED FOR
2 CONSTRUCTION UNDER PARAGRAPH (1);
3 (3) FOR THE RESTORATION OF PROPERTY DAMAGED OR DESTROYED
4 IN CONNECTION WITH CONSTRUCTION UNDER PARAGRAPH (1); AND
5 (4) FOR THE PAYMENT OF DAMAGES INCURRED BY OTHERS
6 INCIDENT TO OR CONSEQUENT UPON CONSTRUCTION UNDER PARAGRAPH
7 (1) WHICH THE COMMONWEALTH OR ITS AGENCY OR AUTHORITY IS
8 UNDER LEGAL OBLIGATION TO PAY OR DESIRES TO PAY IN SETTLEMENT
9 OF A DISPUTED CLAIM OF LIABILITY.
10 "DEBT." THE ISSUED AND OUTSTANDING OBLIGATIONS OF THE
11 COMMONWEALTH INCURRED WITHOUT A VOTE OF THE ELECTORATE OR
12 INCURRED WITH SUCH VOTE UNDER A LAW MAKING SUCH DEBT SUBJECT TO
13 THE PROVISIONS OF SECTION 7(A)(4) OF ARTICLE VIII OF THE
14 CONSTITUTION OF PENNSYLVANIA. THE TERM INCLUDES OBLIGATIONS OF
15 COMMONWEALTH AGENCIES AND AUTHORITIES TO THE EXTENT THAT SUCH
16 OBLIGATIONS ARE TO BE REPAID FROM LEASE RENTALS OR OTHER CHARGES
17 PAYABLE DIRECTLY OR INDIRECTLY FROM REVENUES OF THE
18 COMMONWEALTH. THE TERM DOES NOT INCLUDE:
19 (1) THAT PORTION OF DEBT WHICH IS TO BE REPAID FROM
20 CHARGES MADE TO THE PUBLIC FOR THE USE OF THE CAPITAL
21 PROJECTS FINANCED, AS SUCH PORTION OF DEBT MAY BE DETERMINED
22 BY THE AUDITOR GENERAL;
23 (2) OBLIGATIONS TO BE REPAID FROM LEASE RENTALS OR OTHER
24 CHARGES PAYABLE BY A SCHOOL DISTRICT OR OTHER LOCAL TAXING
25 AUTHORITY; OR
26 (3) OBLIGATIONS TO BE REPAID BY AGENCIES OR AUTHORITIES
27 CREATED FOR THE JOINT BENEFIT OF THE COMMONWEALTH AND ONE OR
28 MORE OTHER STATE GOVERNMENTS.
29 "DEBT-AUTHORIZING ACT." THE LEGISLATION REQUIRED BY SECTION
30 9103(D) (RELATING TO PROCEDURES FOR CAPITAL BUDGET BILL AND
20030S0010B1026 - 142 -
1 DEBT-AUTHORIZING LEGISLATION).
2 "FINANCIAL COST." ACQUISITION COST AND CONSTRUCTION COST,
3 WHERE APPLICABLE, AND AN ALLOCATED PORTION OF ALL OF THE
4 FOLLOWING:
5 (1) FEES, EXPENSES AND COSTS OF ISSUING OBLIGATIONS THE
6 PROCEEDS OF WHICH ARE USED TO FINANCE THE PROJECT.
7 (2) FEES, EXPENSES AND COSTS OF ISSUING AND SELLING
8 NOTES OR REPLACEMENT NOTES ISSUED UNDER THIS CHAPTER.
9 (3) ESTABLISHING AND MAINTAINING ANY PURCHASE, LOAN OR
10 CREDIT AGREEMENTS IN CONNECTION WITH AN ISSUE OR SERIES OF
11 ISSUES OF NOTES, AND THE FEES AND EXPENSES OF ANY FISCAL OR
12 LOAN AND TRANSFER AGENT AND BOND COUNSEL INCURRED IN
13 CONNECTION WITH THE ISSUE OF THE OBLIGATIONS.
14 (4) PREMIUMS ON INSURANCE IN CONNECTION WITH A PROJECT
15 DURING CONSTRUCTION.
16 (5) TAXES AND OTHER MUNICIPAL OR GOVERNMENTAL CHARGES
17 LAWFULLY LEVIED OR ASSESSED DURING CONSTRUCTION.
18 (6) FEES AND EXPENSES OF ARCHITECTS, ENGINEERS AND OTHER
19 PROFESSIONALS FOR:
20 (I) MAKING PRELIMINARY STUDIES, REPORTS OR ESTIMATES
21 OF COSTS;
22 (II) PREPARING PLANS AND SPECIFICATIONS AND
23 INSPECTING AND REVIEWING THE PROGRESS OF CONSTRUCTION;
24 AND
25 (III) OBTAINING ABSTRACTS OF TITLE, TITLE INSURANCE
26 OR TITLE OPINIONS.
27 (7) COSTS AND EXPENSES OF PRELIMINARY INVESTIGATIONS,
28 PREPLANNING, SURVEYS AND REPORTS TO DETERMINE THE PROPER
29 SCOPE, FEASIBILITY AND PROBABLE COSTS OF CAPITAL PROJECTS TO
30 BE INCLUDED IN FUTURE CAPITAL BUDGETS.
20030S0010B1026 - 143 -
1 (8) COSTS OF ADMINISTRATION, INCLUDING THE SALARIES AND
2 EXPENSES OF ADMINISTRATORS, REVIEWING ARCHITECTS AND
3 ENGINEERS, CONSTRUCTION INSPECTORS, ACCOUNTANTS AND LEGAL
4 COUNSEL OF THE COMMONWEALTH AND ITS AGENCIES OR AUTHORITIES,
5 INCURRED FOR THE PROPER PLANNING AND SUPERVISION OF THE
6 CAPITAL PROJECTS PROGRAM.
7 "FLOOD CONTROL PROJECTS." PROJECTS OF THE TYPE WHICH THE
8 WATER AND POWER RESOURCES BOARD IS AUTHORIZED TO CONSTRUCT,
9 IMPROVE, EQUIP, MAINTAIN, ACQUIRE OR OPERATE UNDER THE
10 PROVISIONS OF THE ACT OF AUGUST 7, 1936 (1ST SP.SESS., P.L.106,
11 NO.46), REFERRED TO AS THE FLOOD CONTROL LAW.
12 "FUND." ANY FUND OTHER THAN A FUND, OR AN ACCOUNT IN A FUND,
13 ESTABLISHED BY THIS CHAPTER.
14 "FUNDING BONDS." GENERAL OBLIGATION BONDS USED TO PROVIDE
15 FUNDS FOR AND TOWARDS THE PAYMENT OF OUTSTANDING NOTES OR TO
16 REFUND OTHER OUTSTANDING BONDS PRIOR TO OR AT OR AFTER THE
17 STATED MATURITY DATE OF THE BONDS BEING REFUNDED OR OF THE NOTES
18 BEING FUNDED.
19 "HIGHWAY PROJECTS." PROJECTS OF A TYPE WHICH THE DEPARTMENT
20 OF TRANSPORTATION IS AUTHORIZED TO CONSTRUCT, IMPROVE, EQUIP,
21 MAINTAIN, ACQUIRE OR OPERATE.
22 "HOSPITAL." AS DEFINED IN SECTION 802.1 OF THE ACT OF JULY
23 19, 1979 (P.L.130, NO.48), KNOWN AS THE HEALTH CARE FACILITIES
24 ACT.
25 "ISSUING OFFICIALS." THE GOVERNOR, THE AUDITOR GENERAL AND
26 THE STATE TREASURER.
27 "NET DEBT."
28 (1) THE AGGREGATE PRINCIPAL AMOUNT OF ALL DEBT; PLUS
29 (2) THE AMOUNT OF ANY PAST DUE AND UNPAID INTEREST ON
30 THAT DEBT; MINUS
20030S0010B1026 - 144 -
1 (3) ALL FUNDS HELD EXCLUSIVELY FOR THE PAYMENT OF THAT
2 PRINCIPAL AND PAST DUE INTEREST.
3 NEITHER ACCRUED BUT NOT YET PAST DUE INTEREST NOR FUNDS HELD FOR
4 THE PAYMENT OF THE INTEREST NEXT FALLING DUE, UP TO THE AMOUNT
5 OF SUCH INTEREST, SHALL BE INCLUDED IN SUCH COMPUTATIONS.
6 "NOTES." TEMPORARY OBLIGATIONS AND REPLACEMENT NOTES ISSUED
7 BY THE COMMONWEALTH PURSUANT TO THIS CHAPTER IN ANTICIPATION OF
8 BONDS.
9 "OBLIGATIONS." NOTES OR BONDS OF THE COMMONWEALTH, ITS
10 AGENCIES OR AUTHORITIES, ISSUED PURSUANT TO ANY DEBT AUTHORIZING
11 ACT.
12 "PUBLIC IMPROVEMENT PROJECTS." PROJECTS OF A TYPE WHICH THE
13 GENERAL STATE AUTHORITY IS AUTHORIZED TO CONSTRUCT, IMPROVE,
14 EQUIP, FURNISH, MAINTAIN, ACQUIRE OR OPERATE UNDER THE
15 PROVISIONS OF THE ACT OF MARCH 31, 1949 (P.L.372, NO.34), KNOWN
16 AS THE GENERAL STATE AUTHORITY ACT OF ONE THOUSAND NINE HUNDRED
17 FORTY-NINE, AND PROJECTS WHICH THE DEPARTMENT OF GENERAL
18 SERVICES IS AUTHORIZED TO CONSTRUCT, IMPROVE, EQUIP, FURNISH,
19 MAINTAIN, ACQUIRE OR OPERATE.
20 "REDEVELOPMENT ASSISTANCE CAPITAL PROJECT." THE DESIGN AND
21 CONSTRUCTION OF FACILITIES WHICH MEET THE FOLLOWING:
22 (1) ARE FACILITIES, OTHER THAN HOUSING UNITS, HIGHWAYS,
23 BRIDGES, WASTE DISPOSAL FACILITIES, SEWAGE FACILITIES OR
24 WATER FACILITIES. THIS PARAGRAPH INCLUDES:
25 (I) WATER AND SEWER INFRASTRUCTURE, BRIDGES AND
26 ROADS INCLUDED IN BUSINESS OR INDUSTRIAL PARK FACILITIES;
27 AND
28 (II) HOSPITAL FACILITIES AND CAPITAL IMPROVEMENTS
29 FOR HOSPITAL FACILITIES.
30 (2) ARE ECONOMIC DEVELOPMENT PROJECTS WHICH GENERATE
20030S0010B1026 - 145 -
1 SUBSTANTIAL INCREASES IN EMPLOYMENT, TAX REVENUES OR OTHER
2 MEASURES OF ECONOMIC ACTIVITY. THIS PARAGRAPH INCLUDES
3 PROJECTS WITH CULTURAL, HISTORICAL OR CIVIC SIGNIFICANCE.
4 (3) ARE FACILITIES WHICH HAVE A REGIONAL OR
5 MULTIJURISDICTIONAL IMPACT.
6 (4) ARE ELIGIBLE FOR TAX-EXEMPT BOND FUNDING UNDER
7 EXISTING FEDERAL LAW AND REGULATIONS.
8 (5) HAVE A 50% NON-STATE PARTICIPATION DOCUMENTED AT THE
9 TIME OF APPLICATION, INCLUDING A PORTION OF ANY FUNDS
10 RESERVED FOR FUTURE PHYSICAL MAINTENANCE AND OPERATION OF THE
11 FACILITIES:
12 (I) AT LEAST HALF OF WHICH IS SECURED FUNDING;
13 (II) TOWARD WHICH THE ONLY NONCASH NON-STATE
14 PARTICIPATION PERMITTED IS LAND OR FIXED ASSETS WHICH
15 HAVE A SUBSTANTIAL USEFUL LIFE AND ARE DIRECTLY RELATED
16 TO THE PROJECT;
17 (III) TOWARD WHICH STATE FUNDS FROM OTHER PROGRAMS
18 MAY NOT BE USED; AND
19 (IV) TOWARD WHICH FUNDS FROM FEDERAL SOURCES MAY BE
20 USED.
21 (6) HAVE A TOTAL PROJECT COST OF AT LEAST $1,000,000.
22 APPLICANTS MUST BE ONE OF THE FOLLOWING:
23 (I) A REDEVELOPMENT AUTHORITY.
24 (II) AN INDUSTRIAL DEVELOPMENT AUTHORITY.
25 (III) A GENERAL PURPOSE UNIT OF LOCAL GOVERNMENT.
26 (IV) A LOCAL DEVELOPMENT DISTRICT WHICH HAS AN
27 AGREEMENT WITH A GENERAL PURPOSE UNIT OF LOCAL GOVERNMENT
28 UNDER WHICH THE UNIT ASSUMES ULTIMATE RESPONSIBILITY FOR
29 DEBT INCURRED TO OBTAIN THE 50% NON-STATE PARTICIPATION
30 REQUIRED BY PARAGRAPH (5).
20030S0010B1026 - 146 -
1 (V) AN INDUSTRIAL DEVELOPMENT CORPORATION.
2 "REPLACEMENT NOTES." NOTES:
3 (1) THE NET PROCEEDS OF WHICH ARE USED TO PAY PRINCIPAL,
4 ACCRUED INTEREST AND PREMIUM OF PREVIOUSLY ISSUED NOTES OR
5 REPLACEMENT NOTES; AND
6 (2) WHICH EVIDENCE THE SAME TEMPORARY BORROWING OF THE
7 COMMONWEALTH AS THE NOTES OR REPLACEMENT NOTES REPLACED.
8 "SITE DEVELOPMENT CAPITAL PROJECTS." THE DESIGN AND
9 CONSTRUCTION OF INFRASTRUCTURE AND IMPROVEMENTS FOR LOCATIONS
10 WHICH MEET ALL OF THE FOLLOWING:
11 (1) ARE LOCATIONS SUITABLE FOR THE SITING OF BUSINESS,
12 INDUSTRIAL OR RESEARCH FACILITIES UPON COMPLETION OF THE
13 PROJECT.
14 (2) CREATE OPPORTUNITIES TO DEVELOP NEW FACILITIES OR TO
15 EXPAND EXISTING FACILITIES FOR BUSINESS, SERVICE INDUSTRIES,
16 MANUFACTURING, RESEARCH AND DEVELOPMENT OR OTHER BUSINESS OR
17 INDUSTRIAL OPERATIONS WHICH PRODUCE GOODS OR SERVICES AS
18 DETERMINED BY THE SECRETARY OF COMMUNITY AND ECONOMIC
19 DEVELOPMENT.
20 (3) RESULT IN THE CREATION OF NEW JOBS OR THE
21 PRESERVATION OF EXISTING JOBS.
22 (4) HAVE A 50% NON-STATE PARTICIPATION DOCUMENTED AT THE
23 TIME OF APPLICATION:
24 (I) AT LEAST ONE-HALF OF WHICH IS SECURED FUNDING;
25 (II) TOWARD WHICH THE ONLY NONCASH, NON-STATE
26 PARTICIPATION PERMITTED IS LAND OR FIXED ASSETS WHICH
27 HAVE A SUBSTANTIAL USEFUL LIFE AND ARE DIRECTLY RELATED
28 TO THE PROJECT; AND
29 (III) TOWARD WHICH STATE FUNDS FROM OTHER PROGRAMS
30 MAY NOT BE USED.
20030S0010B1026 - 147 -
1 (5) HAVE A TOTAL PROJECT COST OF AT LEAST $1,000,000.
2 (6) THE PROJECT APPLICANT IS A MUNICIPALITY, MUNICIPAL
3 AUTHORITY, INDUSTRIAL DEVELOPMENT AUTHORITY, REDEVELOPMENT
4 AUTHORITY, INDUSTRIAL DEVELOPMENT CORPORATION OR A GENERAL
5 PURPOSE UNIT OF LOCAL GOVERNMENT.
6 (7) THE PROJECT APPLICANT CAN DEMONSTRATE TO THE
7 SECRETARY THAT THE LOCATION WILL BE OCCUPIED BY A BUSINESS OR
8 INDUSTRIAL TENANT WITHIN FIVE YEARS OF COMPLETION OF THE
9 PROJECT OR SUCH OTHER REASONABLE PERIOD OF TIME AS MAY BE
10 DESIGNATED BY THE SECRETARY.
11 "TAX REVENUES." ALL REVENUES FROM COMMONWEALTH IMPOSED
12 TAXES, REGARDLESS OF THE FUND TO WHICH THEY ARE DEPOSITED,
13 INCLUDING REVENUES FROM MOTOR VEHICLE LICENSES, WHICH ARE
14 DECLARED TO BE TAXES FOR PURPOSES OF THIS CHAPTER. THE TERM DOES
15 NOT INCLUDE REVENUES FROM ANY OTHER LICENSES OR FROM INTEREST,
16 FEES, FINES OR PENALTIES.
17 "TRANSPORTATION ASSISTANCE PROJECTS." PROJECTS OF A TYPE
18 WHICH THE DEPARTMENT OF TRANSPORTATION IS AUTHORIZED TO
19 CONSTRUCT, IMPROVE, EQUIP, FURNISH, MAINTAIN, ACQUIRE OR OPERATE
20 UNDER 74 PA.C.S. PT. II (RELATING TO PUBLIC TRANSPORTATION) AND
21 CAPITAL PROJECTS WHICH THE DEPARTMENT OF TRANSPORTATION IS
22 AUTHORIZED TO CONSTRUCT, IMPROVE, EQUIP OR FURNISH UNDER THE
23 PROVISIONS OF THE ACT OF FEBRUARY 11, 1976 (P.L.14, NO.10),
24 KNOWN AS THE PENNSYLVANIA RURAL AND INTERCITY COMMON CARRIER
25 SURFACE TRANSPORTATION ASSISTANCE ACT, INCLUDING THE ACQUISITION
26 OF PROPERTY AUTHORIZED IN THOSE STATUTES.
27 § 9103. PROCEDURES FOR CAPITAL BUDGET BILL AND DEBT-AUTHORIZING
28 LEGISLATION.
29 (A) LEGISLATIVE PROCESS.--A CAPITAL BUDGET PREPARED IN
30 ACCORDANCE WITH THIS CHAPTER SHALL BE SUBMITTED FOR EACH FISCAL
20030S0010B1026 - 148 -
1 YEAR BY THE GOVERNOR TO THE GENERAL ASSEMBLY AND SHALL BE
2 CONSIDERED IN THE FORM OF A BILL AS PROVIDED IN ARTICLE III OF
3 THE CONSTITUTION OF PENNSYLVANIA.
4 (B) ITEMIZATION.--
5 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), THE CAPITAL
6 BUDGET BILL MUST SPECIFICALLY ITEMIZE, BY BRIEF IDENTIFYING
7 DESCRIPTION AND ESTIMATED FINANCIAL COST, THE CAPITAL
8 PROJECTS TO BE FINANCED FROM:
9 (I) THE PROCEEDS OF OBLIGATIONS OF THE COMMONWEALTH;
10 OR
11 (II) CURRENT REVENUES.
12 (2) PARAGRAPH (1) DOES NOT APPLY IF THE ITEMIZATION IS:
13 (I) CONTAINED IN OR APPROVED BY PRIOR LEGISLATION
14 REFERRED TO IN THE CAPITAL BUDGET BILL; OR
15 (II) INCLUDED IN ONE OR MORE SUPPLEMENTAL CAPITAL
16 BUDGET BILLS.
17 (3) PROJECTS MUST BE LISTED IN SEPARATE CATEGORIES AS
18 WELL AS ACCORDING TO THE FUND TO BE CHARGED WITH THE
19 REPAYMENT OF THE OBLIGATIONS TO BE INCURRED.
20 (4) THE CAPITAL BUDGET BILL MUST STATE THE MAXIMUM
21 AMOUNT OF SUCH OBLIGATIONS WHICH MAY BE INCURRED IN THE
22 ENSUING FISCAL YEAR TO PROVIDE FUNDS FOR AND TOWARDS THE
23 FINANCIAL COSTS OF EACH CATEGORY OF CAPITAL PROJECTS, WHICH
24 SHALL BE BY THE ISSUE OF GENERAL OBLIGATIONS OF THE
25 COMMONWEALTH.
26 (C) TIMING.--EACH YEAR THE GOVERNOR SHALL SUBMIT A CAPITAL
27 BUDGET BILL FOR THE ENSUING FISCAL YEAR.
28 (D) DEBT-AUTHORIZING LEGISLATION.--AT THE TIME THE GOVERNOR
29 SUBMITS THE CAPITAL BUDGET OR A SUPPLEMENT, THE GOVERNOR SHALL,
30 TO THE EXTENT THE DEBT TO BE INCURRED IS NOT WITHIN THE LIMITS
20030S0010B1026 - 149 -
1 OF LEGISLATION THEN IN FORCE AUTHORIZING THE INCURRING OF DEBT,
2 SUBMIT ADDITIONAL BILLS FOR EACH CATEGORY OF CAPITAL PROJECTS,
3 AUTHORIZING THE INCURRING OF DEBT TO PROVIDE FUNDS FOR AND
4 TOWARDS THE PAYMENT OF THE FINANCIAL COSTS OF CAPITAL PROJECTS
5 IN SUCH CATEGORY WHICH HAVE BEEN SPECIFICALLY ITEMIZED IN A
6 CAPITAL BUDGET FOR THE SAME OR ANY PRIOR YEAR.
7 (E) CATEGORIES.--EACH DEBT-AUTHORIZING BILL MUST DO ALL OF
8 THE FOLLOWING:
9 (1) STATE THE CATEGORY OF CAPITAL PROJECTS TO BE
10 FINANCED BY THE DEBT SO AUTHORIZED BUT NEED NOT ENUMERATE THE
11 CAPITAL PROJECTS TO BE FINANCED.
12 (2) AUTHORIZE THE INCURRING OF DEBT IN NOT LESS THAN THE
13 AMOUNT OF THE INCURRED OR EXPECTED TO BE INCURRED FINANCIAL
14 COST OF ALL CAPITAL PROJECTS IN SUCH CATEGORY NOT COVERED BY
15 A PREVIOUS DEBT AUTHORIZATION, INCLUDING ANY OVERALL
16 ALLOWANCE FOR CONTINGENCIES.
17 (3) STATE THE ESTIMATED USEFUL LIVES OF THE CAPITAL
18 PROJECTS TO BE FINANCED IN SUCH DETAIL AS MAY BE REQUISITE IF
19 CAPITAL PROJECTS OF VARYING USEFUL LIVES ARE TO BE COMBINED
20 FOR FINANCING PURPOSES.
21 (4) STATE THE MAXIMUM TERM OF THE DEBT TO BE INCURRED.
22 § 9104. CERTIFICATES OF THE AUDITOR GENERAL.
23 (A) REQUIREMENT.--BY MARCH 1 AND SEPTEMBER 1, THE AUDITOR
24 GENERAL SHALL CERTIFY TO THE GOVERNOR AND THE GENERAL ASSEMBLY
25 THE AVERAGE ANNUAL TAX REVENUES DEPOSITED IN ALL FUNDS IN THE
26 FIVE FISCAL YEARS ENDED NEXT PRECEDING THE DATE OF THE
27 CERTIFICATE, DETERMINED BY ADDING THE TOTAL OF SUCH REVENUES SO
28 DEPOSITED AND DIVIDING THE SUM BY FIVE. AT THE TIME OF EACH
29 CERTIFICATION, THE AUDITOR GENERAL SHALL ALSO CERTIFY AS
30 SEPARATE ITEMS:
20030S0010B1026 - 150 -
1 (1) THE AMOUNT OF OUTSTANDING NET DEBT AS OF THE END OF
2 THE PRECEDING FISCAL YEAR;
3 (2) THE AMOUNT OF OUTSTANDING NET DEBT AS OF THE DATE OF
4 THE CERTIFICATE;
5 (3) THE DIFFERENCE BETWEEN THE LIMITATION UPON ALL
6 OUTSTANDING NET DEBT AS PROVIDED IN SECTION 7(A)(4) OF
7 ARTICLE VIII OF THE CONSTITUTION OF PENNSYLVANIA AND
8 PARAGRAPH (2);
9 (4) THE AMOUNT OF OUTSTANDING NET DEBT SCHEDULED TO BE
10 REPAID DURING THE REMAINDER OF THE FISCAL YEAR IN WHICH THE
11 CERTIFICATE IS ISSUED;
12 (5) THE AMOUNT OF DEBT AUTHORIZED BY LAW TO BE ISSUED
13 BUT NOT YET INCURRED; AND
14 (6) THE AMOUNT OF OUTSTANDING OBLIGATIONS EXCLUDED FROM
15 OUTSTANDING DEBT AS SELF-SUSTAINING PURSUANT TO SECTION
16 7(C)(1), (2) AND (3) OF ARTICLE VIII OF THE CONSTITUTION OF
17 PENNSYLVANIA.
18 (B) ADDITIONAL CERTIFICATES.--AS REQUIRED IN CONNECTION WITH
19 THE SALE OF OR SETTLEMENT FOR OBLIGATIONS OF THE COMMONWEALTH,
20 THE AUDITOR GENERAL SHALL ISSUE CERTIFICATES CONTAINING ITEMS
21 LISTED IN SUBSECTION (A)(2) AND (3) AS OF THE DATES DETERMINED
22 BY THE GOVERNOR TO BE RELEVANT TO SUCH SALES OR SETTLEMENTS.
23 (C) RELIANCE ON CERTIFICATIONS.--IN MAKING CERTIFICATES, THE
24 AUDITOR GENERAL SHALL BE ENTITLED TO RELY, AS TO ANY OF ITEMS
25 LISTED IN SUBSECTION (A)(1) THROUGH (5), UPON:
26 (1) ANY CERTIFICATE FURNISHED BY THE STATE TREASURER
27 WITH RESPECT TO OUTSTANDING COMMONWEALTH GENERAL OBLIGATION
28 BONDS;
29 (2) ANY CERTIFICATE FURNISHED BY THE DEPARTMENT OF
30 REVENUE; AND
20030S0010B1026 - 151 -
1 (3) ANY CERTIFICATE FURNISHED BY THE APPROPRIATE BANK OR
2 TRUST COMPANY OPERATING AS FISCAL AGENT OR TRUSTEE WITH
3 RESPECT TO THE OUTSTANDING OBLIGATIONS OF ANY AUTHORITY.
4 § 9105. CONSTITUTIONAL LIMITATIONS, AUTHORIZATIONS, ISSUING
5 OFFICIALS.
6 WITHIN THE LIMITATION SET FORTH IN SECTION 7(A)(4) OF ARTICLE
7 VIII OF THE CONSTITUTION OF PENNSYLVANIA, THE ISSUING OFFICIALS
8 ARE AUTHORIZED AND DIRECTED TO BORROW, ON THE CREDIT OF THE
9 COMMONWEALTH AND SUBJECT TO THE CONDITIONS AND LIMITATIONS OF
10 THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL
11 CODE, MONEY NECESSARY TO CARRY OUT THE PURPOSES OF DEBT-
12 AUTHORIZING ACTS PASSED IN ACCORDANCE WITH THE PROVISIONS OF
13 THIS CHAPTER.
14 § 9106. TEMPORARY BORROWING.
15 (A) AUTHORIZATION.--PENDING THE ISSUANCE OF BONDS OF THE
16 COMMONWEALTH AS AUTHORIZED IN SECTION 9107 (RELATING TO BONDS,
17 ISSUE OF BONDS AND NOTES, MATURITY, INTEREST), THE ISSUING
18 OFFICIALS ARE AUTHORIZED, IN ACCORDANCE WITH THE PROVISIONS OF
19 THIS CHAPTER AND ON THE CREDIT OF THE COMMONWEALTH, TO MAKE
20 TEMPORARY BORROWINGS NOT TO EXCEED THREE YEARS IN ANTICIPATION
21 OF THE ISSUE OF BONDS IN ORDER TO PROVIDE FUNDS IN SUCH AMOUNTS
22 AS DEEMED ADVISABLE TO CARRY OUT THE PURPOSES OF ANY DEBT-
23 AUTHORIZING ACTS PRIOR TO THE ISSUE OF BONDS. IN ORDER TO
24 PROVIDE FOR AND IN CONNECTION WITH THE TEMPORARY BORROWINGS, THE
25 ISSUING OFFICIALS ARE AUTHORIZED IN THE NAME AND ON BEHALF OF
26 THE COMMONWEALTH TO ENTER INTO ANY PURCHASE, LOAN OR CREDIT
27 AGREEMENT OR OTHER AGREEMENT WITH BANKS, TRUST COMPANIES,
28 LENDING INSTITUTIONS, INVESTMENT BANKING FIRMS OR PERSONS IN THE
29 UNITED STATES HAVING THE APPROPRIATE POWER. AGREEMENTS MAY
30 CONTAIN PROVISIONS NOT INCONSISTENT WITH THE PROVISIONS OF THIS
20030S0010B1026 - 152 -
1 CHAPTER, AS AUTHORIZED BY THE ISSUING OFFICIALS.
2 (B) EVIDENCE.--ALL TEMPORARY BORROWINGS MADE UNDER THE
3 AUTHORIZATION OF THIS SECTION SHALL BE EVIDENCED BY NOTES OF THE
4 COMMONWEALTH, WHICH SHALL BE ISSUED FOR SUCH AMOUNTS NOT
5 EXCEEDING IN THE AGGREGATE THE APPLICABLE STATUTORY AND
6 CONSTITUTIONAL DEBT LIMITATION, IN FORM AND DENOMINATIONS AND
7 SUBJECT TO TERMS AND CONDITIONS OF SALE AND ISSUE, PREPAYMENT OR
8 REDEMPTION AND MATURITY, RATE OF INTEREST AND TIME OF PAYMENT OF
9 INTERESTS, AS THE ISSUING OFFICIALS AUTHORIZE AND DIRECT AND IN
10 ACCORDANCE WITH THE APPLICABLE DEBT-AUTHORIZING ACT.
11 AUTHORIZATION AND DIRECTION MAY PROVIDE FOR THE SUBSEQUENT
12 ISSUANCE OF REPLACEMENT NOTES TO REFUND OUTSTANDING NOTES OR
13 REPLACEMENT NOTES. REPLACEMENT NOTES SHALL, UPON ISSUANCE,
14 EVIDENCE THE BORROWING AND MAY SPECIFY OTHER TERMS AND
15 CONDITIONS WITH RESPECT TO THE NOTES AND REPLACEMENT NOTES
16 AUTHORIZED FOR ISSUANCE AS THE ISSUING OFFICIALS MAY DETERMINE
17 AND DIRECT.
18 (C) REPLACEMENT NOTES.--
19 (1) IF THE AUTHORIZATION AND DIRECTION OF THE GOVERNOR,
20 THE AUDITOR GENERAL AND THE STATE TREASURER PROVIDE FOR THE
21 ISSUANCE OF REPLACEMENT NOTES, THE GOVERNOR, THE AUDITOR
22 GENERAL AND THE STATE TREASURER ARE AUTHORIZED, IN THE NAME
23 AND ON BEHALF OF THE COMMONWEALTH, TO ISSUE, ENTER INTO OR
24 AUTHORIZE AND DIRECT THE STATE TREASURER TO DO THE FOLLOWING:
25 (I) ENTER INTO AGREEMENTS WITH BANKS, TRUST
26 COMPANIES, INVESTMENT BANKING FIRMS OR OTHER INSTITUTIONS
27 OR PERSONS IN THE UNITED STATES HAVING APPROPRIATE POWER
28 TO PURCHASE OR UNDERWRITE AN ISSUE OR SERIES OF ISSUES OF
29 NOTES.
30 (II) ENTER INTO A PURCHASE, LOAN OR CREDIT
20030S0010B1026 - 153 -
1 AGREEMENT.
2 (III) DRAW MONEY PURSUANT TO A PURCHASE, LOAN OR
3 CREDIT AGREEMENT ON THE TERMS AND CONDITIONS SET FORTH IN
4 THE AGREEMENT.
5 (IV) ISSUE NOTES AS EVIDENCE OF BORROWINGS MADE
6 UNDER A PURCHASE, LOAN OR CREDIT AGREEMENT.
7 (V) APPOINT AN ISSUING AND PAYING AGENT OR AGENTS
8 WITH RESPECT TO NOTES.
9 (VI) PERFORM ACTS NECESSARY OR APPROPRIATE TO
10 PROVIDE FOR THE PAYMENT, WHEN DUE, OF THE INTEREST ON AND
11 PRINCIPAL OF NOTES.
12 (2) AGREEMENTS UNDER PARAGRAPH (1) MAY PROVIDE THAT THE
13 COMPENSATION OF PURCHASERS OR UNDERWRITERS OF NOTES OR
14 REPLACEMENT NOTES, BY DISCOUNT IN THE PURCHASE PRICE OF THE
15 NOTES OR BY PAYMENT OF A FIXED FEE OR COMMISSION AT THE TIME
16 OF ISSUANCE OF THE NOTES, AND THAT ALL OTHER COSTS AND
17 EXPENSES, INCLUDING FEES FOR AGREEMENTS RELATED TO THE NOTES,
18 ISSUING AND PAYMENT AGENT COSTS AND COSTS AND EXPENSES OF
19 ISSUANCE, MAY BE PAID FROM THE PROCEEDS OF THE NOTES.
20 (D) ISSUANCE OF REPLACEMENT NOTES.--IF THE AUTHORIZATION AND
21 DIRECTION OF THE GOVERNOR, THE AUDITOR GENERAL AND THE STATE
22 TREASURER PROVIDE FOR THE ISSUANCE OF REPLACEMENT NOTES, THE
23 STATE TREASURER SHALL, BY THE TIME OF DELIVERY OF THESE NOTES OR
24 REPLACEMENT NOTES, DETERMINE THE PRINCIPAL AMOUNTS, DATES OF
25 ISSUANCE, INTEREST RATES OR PROCEDURES FOR ESTABLISHING INTEREST
26 RATES, RATES OF DISCOUNT, DENOMINATIONS AND ALL OTHER TERMS AND
27 CONDITIONS RELATING TO THE ISSUANCE AND SHALL PERFORM ALL ACTS
28 NECESSARY TO PAY OR CAUSE TO BE PAID WHEN DUE ALL PRINCIPAL OF
29 AND INTEREST ON THE NOTES BEING REFUNDED BY REPLACEMENT NOTES
30 AND TO ASSURE THAT PAYMENT MAY DRAW UPON ANY MONEY AVAILABLE FOR
20030S0010B1026 - 154 -
1 THAT PURPOSE PURSUANT TO ANY PURCHASE, LOAN OR CREDIT AGREEMENTS
2 ESTABLISHED WITH RESPECT TO THE NOTES, SUBJECT TO THE
3 AUTHORIZATION AND DIRECTION OF THE GOVERNOR, THE AUDITOR GENERAL
4 AND THE STATE TREASURER.
5 (E) FUNDING AND RETIREMENT.--OUTSTANDING NOTES EVIDENCING
6 BORROWINGS MAY BE FUNDED AND RETIRED BY THE ISSUANCE AND SALE OF
7 THE BONDS OF THE COMMONWEALTH UNDER SECTION 9112 (RELATING TO
8 FUNDING BONDS). FUNDING BONDS MUST BE ISSUED AND SOLD NOT LATER
9 THAN A DATE THREE YEARS AFTER THE DATE OF ISSUANCE OF THE FIRST
10 NOTES EVIDENCING THE BORROWINGS, TO THE EXTENT THAT PAYMENT OF
11 THE NOTES HAS NOT OTHERWISE BEEN MADE OR PROVIDED FOR BY SOURCES
12 OTHER THAN PROCEEDS OF REPLACEMENT NOTES.
13 (F) PROCEEDS.--THE PROCEEDS OF TEMPORARY BORROWINGS EXCEPT
14 THOSE EVIDENCED BY REPLACEMENT NOTES SHALL BE PAID TO THE STATE
15 TREASURER TO BE HELD AND DISPOSED OF UNDER SECTION 9110
16 (RELATING TO DISPOSITION AND USE OF PROCEEDS). THE PROCEEDS OF
17 TEMPORARY BORROWINGS EVIDENCED BY REPLACEMENT NOTES SHALL BE
18 PAID TO THE STATE TREASURER TO BE HELD AND DISPOSED OF UNDER
19 SUBSECTION (D).
20 § 9107. BONDS, ISSUE OF BONDS AND NOTES, MATURITY, INTEREST.
21 (A) ISSUE.--AS EVIDENCE OF INDEBTEDNESS AS AUTHORIZED,
22 BONDS, WHICH MAY BE FOR ONE OR MORE PURPOSES, SHALL BE ISSUED
23 UNDER THIS CHAPTER FOR ALL OF THE FOLLOWING PURPOSES:
24 (1) TO FUND OR RETIRE NOTES ISSUED UNDER SECTION 9106
25 (RELATING TO TEMPORARY BORROWING) AND BONDS ISSUED UNDER
26 PARAGRAPH (2).
27 (2) TO PROVIDE MONEY NECESSARY TO CARRY OUT THE PURPOSES
28 OF A DEBT-AUTHORIZING STATUTE.
29 (B) SERIES.--THE BONDS OF EACH ISSUE SHALL CONSTITUTE A
30 SEPARATE SERIES TO BE DESIGNATED BY THE ISSUING OFFICIALS OR MAY
20030S0010B1026 - 155 -
1 BE COMBINED FOR SALE AS ONE SERIES WITH OTHER GENERAL OBLIGATION
2 BONDS OF THE COMMONWEALTH. EACH SERIES OF BONDS SHALL BEAR SUCH
3 RATE OF INTEREST AS DETERMINED BY THE ISSUING OFFICIALS. BONDS
4 SHALL BE ISSUED IN DENOMINATIONS AND IN FORM, WHETHER COUPON OR
5 REGISTERED AS TO BOTH PRINCIPAL AND INTEREST, AND WITH OR
6 WITHOUT SUCH PROVISIONS OF INTERCHANGEABILITY, AS THE ISSUING
7 OFFICIALS DETERMINE. IF INTEREST COUPONS ARE ATTACHED, THEY
8 SHALL, UNLESS THE DEBT-AUTHORIZING ACT PROVIDES OTHERWISE,
9 CONTAIN THE FACSIMILE SIGNATURE OF THE STATE TREASURER.
10 (C) TERMS AND CONDITIONS.--
11 (1) EXCEPT AS SET FORTH IN SUBSECTION (A) OR (B), THE
12 TERMS AND CONDITIONS OF ISSUE, REDEMPTION AND MATURITY AND
13 TIME OF PAYMENT OF INTEREST SHALL BE AS THE ISSUING OFFICIALS
14 SHALL SPECIFY. BONDS OF ANY SERIES SHALL MATURE WITHIN A
15 PERIOD NOT TO EXCEED THE ESTIMATED USEFUL LIVES OF THE
16 CAPITAL PROJECTS AS STATED IN THE DEBT-AUTHORIZING ACT BUT
17 NOT LATER THAN 30 YEARS FROM THE DATE OF ISSUANCE.
18 (2) THE ISSUING OFFICIALS SHALL PROVIDE FOR THE
19 AMORTIZATION OF THE BONDS IN SUBSTANTIAL AND REGULAR AMOUNTS
20 OVER THE TERM OF THE DEBT, BUT THE FIRST RETIREMENT OF
21 PRINCIPAL SHALL BE STATED TO MATURE PRIOR TO THE EXPIRATION
22 OF A PERIOD OF TIME EQUAL TO ONE-TENTH OF THE TIME FROM THE
23 DATE OF THE FIRST OBLIGATION ISSUED TO EVIDENCE THE DEBT TO
24 THE DATE OF THE EXPIRATION OF THE TERM OF THE DEBT.
25 (3) RETIREMENTS OF PRINCIPAL SHALL BE REGULAR AND
26 SUBSTANTIAL IF MADE IN ANNUAL OR SEMIANNUAL AMOUNTS WHETHER
27 BY STATED SERIAL MATURITIES OR BY MANDATORY SINKING FUND
28 RETIREMENTS COMPUTED IN ACCORDANCE WITH EITHER A LEVEL ANNUAL
29 DEBT SERVICE PLAN AS NEARLY AS MAY BE OR UPON THE EQUAL
30 ANNUAL MATURITIES PLAN.
20030S0010B1026 - 156 -
1 (4) IF DEBT IS INCURRED IN ONE ISSUE OF BONDS TO PROVIDE
2 FUNDS FOR AND TOWARDS THE FINANCIAL COST OF CAPITAL PROJECTS
3 HAVING ESTIMATED USEFUL LIVES OF VARYING LENGTH, THE
4 FOLLOWING SHALL APPLY:
5 (I) THE AGGREGATE OF THE FINANCIAL COSTS SHALL BE
6 CONSIDERED AS THE DEBT TO BE INCURRED FOR THE PURPOSE OF
7 FIXING THE REGULAR AND SUBSTANTIAL AMOUNTS OF PRINCIPAL
8 TO BE RETIRED.
9 (II) THE TERM OF THE DEBT SHALL BE TO THE END OF THE
10 LONGEST ESTIMATED USEFUL LIFE FOR THE PURPOSE OF
11 DETERMINING THE FIRST DATE FOR THE RETIREMENT OF
12 PRINCIPAL. AT THE END OF THE ESTIMATED USEFUL LIFE OF
13 EACH PROJECT, THE AGGREGATE PRINCIPAL RETIREMENTS
14 REQUIRED TO BE MADE AT OR BEFORE THAT DATE SHALL EXCEED:
15 (A) THE AGGREGATE FINANCIAL COST OF ALL CAPITAL
16 PROJECTS HAVING THE SAME OR SHORTER ESTIMATED USEFUL
17 LIVES; OR
18 (B) IF BONDS ARE ISSUED FOR LESS THAN THE FULL
19 FINANCIAL COST OF ALL PROJECTS BEING FINANCED IN THE
20 SAME CATEGORY, A PROPORTIONATE AMOUNT IN EACH CASE.
21 (5) THE ISSUING OFFICIALS MAY ENTER INTO THE FOLLOWING
22 AGREEMENTS AND CONTRACTS, WHICH IN THE JUDGMENT OF THE
23 ISSUING OFFICIALS WILL ASSIST IN MANAGING THE INTEREST COSTS
24 OF THE DEBT OF THE COMMONWEALTH:
25 (I) INTEREST RATE EXCHANGE AGREEMENTS, INTEREST RATE
26 CAP AND FLOOR AGREEMENTS AND OTHER SIMILAR AGREEMENTS.
27 (II) CONTRACTS TO INSURE OR SECURE PAYMENT OF
28 PRINCIPAL, INTEREST OR THE PURCHASE PRICE OF BONDS.
29 (6) THE ISSUING OFFICIALS ARE AUTHORIZED TO CARRY OUT
30 THE PROVISIONS OF THIS CHAPTER RELATING TO THE ISSUANCE OF
20030S0010B1026 - 157 -
1 BONDS AND SHALL DETERMINE ALL MATTERS IN CONNECTION WITH THE
2 ISSUANCE OF BONDS SUBJECT TO THE PROVISIONS HEREOF.
3 (D) VERIFICATION.--
4 (1) BONDS ISSUED UNDER THE AUTHORITY OF THIS CHAPTER,
5 UNLESS THE DEBT-AUTHORIZING ACTS PROVIDE ANOTHER METHOD OF
6 SIGNATURE, SHALL BEAR THE FACSIMILE SIGNATURES OF THE ISSUING
7 OFFICIALS AND A FACSIMILE OF THE GREAT SEAL OF THE
8 COMMONWEALTH OF PENNSYLVANIA AND SHALL BE COUNTERSIGNED BY AN
9 OFFICER OF AN AUTHORIZED LOAN AND TRANSFER AGENT OF THE
10 COMMONWEALTH.
11 (2) THE ACTION TAKEN BY THE ISSUING OFFICIALS
12 AUTHORIZING THE ISSUANCE OF BONDS OR NOTES SHALL SET FORTH
13 THE TITLE AND CITATION OF THE DEBT-AUTHORIZING ACTS.
14 (3) NOTES AND BONDS ISSUED UNDER THE AUTHORITY OF THIS
15 CHAPTER SHALL:
16 (I) EITHER CONTAIN A SIMILAR RECITAL OR REFER TO THE
17 RECITAL OF TITLES AND CITATIONS SET FORTH IN THE ACTION
18 AUTHORIZING ISSUANCE; AND
19 (II) STATE THAT THE BONDS OR NOTES ARE ISSUED IN
20 ACCORDANCE WITH THE PROVISIONS OF THIS CHAPTER. IN ANY
21 ACTION OR PROCEEDING INVOLVING THE VALIDITY OR
22 ENFORCEABILITY OF BONDS OR NOTES UNDER THIS CHAPTER, A
23 RECITAL UNDER PARAGRAPH (3) SHALL BE CONCLUSIVE AS TO
24 THEIR AUTHORIZATION.
25 § 9108. DIRECT OBLIGATIONS, EXEMPTION FROM TAXATION, MEANS OF
26 PAYMENT.
27 (A) DIRECT OBLIGATION.--NOTES AND BONDS ISSUED UNDER THIS
28 CHAPTER SHALL BE DIRECT OBLIGATIONS OF THE COMMONWEALTH, AND THE
29 FULL FAITH AND CREDIT OF THE COMMONWEALTH ARE PLEDGED FOR THE
30 PAYMENT OF THE INTEREST AS IT BECOMES DUE AND THE PAYMENT OF THE
20030S0010B1026 - 158 -
1 PRINCIPAL AT MATURITY.
2 (B) EXEMPTIONS.--NOTES AND BONDS ISSUED UNDER THIS CHAPTER
3 SHALL BE EXEMPT FROM TAXATION FOR STATE AND LOCAL PURPOSES
4 EXCEPT AS PROVIDED UNDER THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
5 KNOWN AS THE TAX REFORM CODE OF 1971.
6 (C) PAYMENT.--THE PRINCIPAL OF AND INTEREST ON NOTES AND
7 BONDS ISSUED UNDER THIS CHAPTER SHALL BE PAYABLE IN LAWFUL MONEY
8 OF THE UNITED STATES OF AMERICA.
9 § 9109. SALE OF BONDS.
10 (A) PUBLIC SALE.--WHEN BONDS ARE ISSUED UNDER THIS CHAPTER,
11 THEY SHALL BE OFFERED FOR SALE AT NOT LESS THAN 98% OF THE
12 PRINCIPAL AMOUNT AND ACCRUED INTEREST AND SHALL BE SOLD BY THE
13 ISSUING OFFICIALS TO THE HIGHEST AND BEST BIDDER OR BIDDERS
14 AFTER PUBLIC ADVERTISEMENT ON TERMS AND CONDITIONS AND UPON OPEN
15 COMPETITIVE BIDDING AS THE ISSUING OFFICIALS DIRECT. THE MANNER
16 AND TIMES OF ADVERTISING SHALL BE PRESCRIBED BY THE ISSUING
17 OFFICIALS.
18 (B) PRIVATE SALE.--ANY PORTION OF A BOND ISSUE OFFERED UNDER
19 SUBSECTION (A) AND NOT SOLD OR SUBSCRIBED TO MAY BE DISPOSED OF
20 BY PRIVATE SALE BY THE ISSUING OFFICIALS IN A MANNER AND AT
21 PRICES, NOT LESS THAN 98% OF THE PRINCIPAL AMOUNT AND ACCRUED
22 INTEREST, AS THE GOVERNOR DIRECTS. NO COMMISSION SHALL BE
23 ALLOWED OR PAID FOR THE SALE OF BONDS ISSUED UNDER THIS CHAPTER.
24 (C) TEMPORARY BONDS.--UNTIL PERMANENT BONDS CAN BE PREPARED,
25 THE ISSUING OFFICIALS MAY ISSUE, IN LIEU OF PERMANENT BONDS,
26 TEMPORARY BONDS IN FORM AND WITH PRIVILEGES AS TO THE
27 REGISTRATION AND EXCHANGE FOR PERMANENT BONDS AS MAY BE
28 DETERMINED BY THE ISSUING OFFICIALS.
29 § 9110. DISPOSITION AND USE OF PROCEEDS.
30 (A) GENERAL RULE.--THE PROCEEDS OF TEMPORARY BORROWINGS MADE
20030S0010B1026 - 159 -
1 UNDER SECTION 9106 (RELATING TO TEMPORARY BORROWING), OTHER THAN
2 THE PROCEEDS OF REPLACEMENT NOTES, AND THE PROCEEDS FROM THE
3 SALE OF BONDS, OTHER THAN FUNDING BONDS, SHALL BE PAID TO THE
4 STATE TREASURER AND BE HELD BY THE STATE TREASURER IN A SEPARATE
5 FUND AND SHALL BE DEPOSITED IN DEPOSITORIES AS SELECTED BY THE
6 STATE TREASURER TO THE CREDIT OF THE CAPITAL FACILITIES FUND,
7 WHICH SHALL HAVE SUCH SEPARATE ACCOUNTS AS MAY BE DEEMED
8 DESIRABLE BY THE ISSUING OFFICIALS, BUT NOT LESS THAN ONE
9 SEPARATE ACCOUNT FOR EACH CATEGORY OF CAPITAL PROJECTS. THE
10 PROCEEDS OF REPLACEMENT NOTES SHALL BE DEPOSITED AND APPLIED AS
11 PROVIDED IN SECTION 9106(D). THE PROCEEDS OF FUNDING BONDS SHALL
12 BE DEPOSITED AND APPLIED AS PROVIDED IN SECTION 9112 (RELATING
13 TO FUNDING BONDS).
14 (B) DEDICATION.--THE MONEY IN THE CAPITAL FACILITIES FUND IS
15 SPECIFICALLY DEDICATED TO MEETING THE FINANCIAL COSTS OF CAPITAL
16 PROJECTS. THE MONEY SHALL BE PAID BY THE STATE TREASURER TO
17 THOSE DEPARTMENTS, AGENCIES OR AUTHORITIES AUTHORIZED TO EXPEND
18 IT AS REQUIRED BY THEM TO PAY FINANCIAL COSTS AT THE TIME THE
19 DEPARTMENT, AGENCY OR AUTHORITY CERTIFIES THE PAYMENT TO BE DUE
20 AND PAYABLE.
21 (C) INVESTMENT.--PENDING THEIR APPLICATION TO THE PURPOSES
22 AUTHORIZED, MONEY HELD OR DEPOSITED BY THE STATE TREASURER MAY
23 BE INVESTED AND REINVESTED AS ARE OTHER FUNDS IN THE CUSTODY OF
24 THE STATE TREASURER IN THE MANNER PROVIDED BY LAW. EARNINGS
25 RECEIVED FROM THE INVESTMENT OR DEPOSIT OF THE FUNDS SHALL BE
26 PAID INTO THE STATE TREASURY TO THE CREDIT OF THE ACCOUNT IN THE
27 CAPITAL FACILITIES FUND TO WHICH THE FUNDS WERE ORIGINALLY
28 DEPOSITED.
29 § 9111. CAPITAL DEBT FUND; INVESTMENTS; REDEMPTION OF BONDS.
30 (A) CAPITAL DEBT FUND.--BONDS ISSUED UNDER THIS CHAPTER
20030S0010B1026 - 160 -
1 SHALL BE PAID AT MATURITY. INTEREST DUE AFTER JULY 1, 1968, ON
2 BONDS AND ON NOTES ISSUED UNDER THIS CHAPTER SHALL BE PAID BY
3 THE BOARD OF FINANCE AND REVENUE FROM THE CAPITAL DEBT FUND. THE
4 GENERAL ASSEMBLY SHALL APPROPRIATE ANNUALLY THE MONEY NECESSARY
5 TO PAY THE INTEREST ON THE BONDS AND NOTES AND THE PRINCIPAL OF
6 THE BONDS AND NOTES AT MATURITY IF NO OTHER PROVISION IS MADE.
7 MONEY APPROPRIATED SHALL BE PAID INTO THE CAPITAL DEBT FUND BY
8 THE STATE TREASURER.
9 (B) INVESTMENT.--MONEY RECEIVED UNDER SUBSECTION (A) PRIOR
10 TO THE DATE FOR DISBURSEMENT SHALL BE INVESTED BY THE BOARD
11 PENDING DISBURSEMENT IN SECURITIES AS ARE PROVIDED BY LAW FOR
12 THE INVESTMENT OF SURPLUS MONEY OF THE COMMONWEALTH. THE
13 INVESTMENT AND THE ACCUMULATIONS IN THE CAPITAL DEBT FUND SHALL
14 BE DEVOTED TO AND BE USED EXCLUSIVELY FOR THE PAYMENT OF THE
15 INTEREST ACCRUING ON THE BONDS AND NOTES AND FOR THE REDEMPTION
16 OF THE BONDS AND NOTES AT MATURITY OR UPON THE REDEMPTION DATE
17 IF CALLED FOR PRIOR REDEMPTION. THE BOARD IS AUTHORIZED TO USE
18 SUCH FUNDS FOR THE PURCHASE AND RETIREMENT OF ALL OR ANY PART OF
19 THE BONDS ISSUED UNDER THIS CHAPTER; BUT NO PURCHASE MAY BE MADE
20 WHICH WILL REDUCE THE MONEY IN THE CAPITAL DEBT FUND BELOW THE
21 AMOUNT NECESSARY TO PAY ALL PRINCIPAL AND INTEREST STILL TO
22 BECOME DUE IN THE FISCAL YEAR OF THE PURCHASE. IF ALL OR ANY
23 PART OF ANY BONDS ISSUED UNDER THIS CHAPTER ARE PURCHASED BY THE
24 COMMONWEALTH, THEY SHALL BE CANCELED AND RETURNED TO THE STATE
25 TREASURER AS CANCELED AND PAID BONDS. THEREAFTER, ALL PAYMENT OF
26 INTEREST ON THE BONDS SHALL CEASE; AND THE CANCELED BONDS AND
27 COUPONS SHALL BE DESTROYED IN ACCORDANCE WITH THE ACT OF APRIL
28 27, 1925 (P.L.319, NO.180), ENTITLED, "AN ACT RELATING TO THE
29 DESTRUCTION OF CANCELED OR UNUSED BONDS OR OTHER EVIDENCES OF
30 INDEBTEDNESS OF THIS COMMONWEALTH."
20030S0010B1026 - 161 -
1 § 9112. FUNDING BONDS.
2 THE ISSUING OFFICIALS, SUBJECT TO THE PROVISIONS OF A BOND
3 RESOLUTION OR TRUST INDENTURE, ARE AUTHORIZED TO ISSUE FUNDING
4 BONDS FOR THE PURPOSE OF REFUNDING OBLIGATIONS THEN OUTSTANDING
5 TO PROVIDE FUNDS TO REDEEM AND RETIRE SUCH OUTSTANDING
6 OBLIGATIONS WITH ACCRUED INTEREST AND ANY PREMIUM PAYABLE
7 THEREON AT MATURITY OR ANY CALL DATE. THE ISSUANCE OF FUNDING
8 BONDS, THE MATURITIES AND OTHER DETAILS, THE RIGHTS OF THE
9 HOLDERS AND THE DUTIES OF THE ISSUING OFFICIALS SHALL BE
10 GOVERNED BY THE APPLICABLE PROVISIONS OF SECTIONS 9103 (RELATING
11 TO PROCEDURES FOR CAPITAL BUDGET BILL AND DEBT-AUTHORIZING
12 LEGISLATION) THROUGH 9111 (RELATING TO CAPITAL DEBT FUND;
13 INVESTMENTS; REDEMPTION OF BONDS). FUNDING BONDS MAY BE ISSUED
14 TO REFUND BONDS PREVIOUSLY ISSUED FOR REFUNDING PURPOSES. THE
15 PROCEEDS OF THE SALE OF FUNDING BONDS SHALL BE PAID TO THE STATE
16 TREASURER AND APPLIED TO THE PAYMENT OF THE PRINCIPAL OF, AND
17 ANY ACCRUED INTEREST AND PREMIUM ON, THE BONDS OR NOTES FOR THE
18 REFUNDING OF WHICH FUNDING BONDS HAVE BEEN ISSUED. NO FUNDING
19 BONDS SHALL BE ISSUED HAVING A STATED MATURITY DATE LATER THAN
20 THE EXPIRATION OF THE USEFUL LIFE OF THE CAPITAL PROJECTS
21 CONSTRUCTED OR ACQUIRED FROM THE PROCEEDS OF THE DEBT ORIGINALLY
22 INCURRED IN RESPECT OF THE BONDS OR NOTES BEING REFUNDED, NOR
23 SHALL FUNDING BONDS BE ISSUED TO REFUND BEYOND THE SAME FISCAL
24 YEAR ANY PORTION OF DEBT REQUIRED BY THIS CHAPTER AND THE
25 CONSTITUTION OF PENNSYLVANIA TO BE RETIRED IN THE YEAR OF ISSUE
26 OF THE FUNDING BONDS IN ORDER TO COMPLY WITH THE RETIREMENT IN
27 SUBSTANTIAL AND REGULAR AMOUNTS AS PROVIDED IN SECTION 9107(D)
28 (RELATING TO BONDS, ISSUE OF BONDS AND NOTES, MATURITY,
29 INTEREST).
30 § 9113. REPORTING REQUIREMENTS.
20030S0010B1026 - 162 -
1 THE STATE TREASURER SHALL DETERMINE AND REPORT TO THE
2 SECRETARY OF THE BUDGET AND THE CHAIRMAN AND MINORITY CHAIRMAN
3 OF THE APPROPRIATIONS COMMITTEE OF THE SENATE AND THE CHAIRMAN
4 AND MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE
5 HOUSE OF REPRESENTATIVES BY JANUARY 1 OF EACH YEAR THE AMOUNT OF
6 MONEY NECESSARY FOR THE PAYMENT OF INTEREST ON OUTSTANDING
7 OBLIGATIONS AND THE PRINCIPAL OF THE OBLIGATIONS FOR THE
8 FOLLOWING FISCAL YEAR AND THE TIME AND AMOUNTS OF PAYMENTS.
9 § 9114. REGISTRATION OF BONDS.
10 THE AUDITOR GENERAL SHALL PREPARE THE NECESSARY REGISTRY
11 BOOKS TO BE KEPT IN THE OFFICE OF THE AUTHORIZED LOAN AND
12 TRANSFER AGENT OF THE COMMONWEALTH FOR THE REGISTRATION OF ANY
13 BONDS OF THE COMMONWEALTH ACCORDING TO THE TERMS AND CONDITIONS
14 OF ISSUE SPECIFIED BY THE ISSUING OFFICIALS UNDER SECTION
15 9107(D) (RELATING TO BONDS, ISSUE OF BONDS AND NOTES, MATURITY,
16 INTEREST). BONDS ISSUED WITHOUT INTEREST COUPONS ATTACHED SHALL
17 BE REGISTERED IN THE REGISTRY BOOKS KEPT BY THE AUTHORIZED LOAN
18 AND TRANSFER AGENT OF THE COMMONWEALTH.
19 § 9115. VOTING REQUIREMENTS.
20 IF THIS CHAPTER REQUIRES AN ACTION TO BE TAKEN OR A DECISION
21 TO BE MADE BY THE ISSUING OFFICIALS AND THE THREE OFFICERS SHALL
22 NOT BE ABLE TO AGREE UNANIMOUSLY, THE ACTION OR DECISION OF THE
23 GOVERNOR AND EITHER THE AUDITOR GENERAL OR STATE TREASURER SHALL
24 BE BINDING AND FINAL.
25 § 9116. APPROPRIATION.
26 THE MONEY RECEIVED BY THE COMMONWEALTH FROM THE ISSUANCE AND
27 SALE OF BONDS AND NOTES PURSUANT TO THIS CHAPTER AND ANY DEBT-
28 AUTHORIZING ACT ADOPTED AFTER JULY 23, 1984, SHALL BE
29 APPROPRIATED BY THE GENERAL ASSEMBLY FROM THE CAPITAL FACILITIES
30 FUND IN THE DEBT-AUTHORIZING ACTS FOR THE PURPOSES SET FORTH IN
20030S0010B1026 - 163 -
1 THOSE ACTS.
2 § 9117. APPROPRIATION FOR AND LIMITATION ON REDEVELOPMENT
3 ASSISTANCE AND SITE DEVELOPMENT CAPITAL PROJECTS.
4 (A) APPROPRIATION.--THE AMOUNT NECESSARY TO PAY PRINCIPAL OF
5 AND INTEREST ON ALL OBLIGATIONS ISSUED TO PROVIDE FUNDS FOR
6 REDEVELOPMENT ASSISTANCE CAPITAL PROJECTS AND SITE DEVELOPMENT
7 CAPITAL PROJECTS IS HEREBY APPROPRIATED FROM THE GENERAL FUND
8 AND SHALL BE TRANSFERRED TO THE CAPITAL DEBT FUND UPON
9 AUTHORIZATION BY THE GOVERNOR.
10 (B) LIMITATION.--
11 (1) THE MAXIMUM AMOUNT OF REDEVELOPMENT ASSISTANCE
12 CAPITAL PROJECTS UNDERTAKEN BY THE COMMONWEALTH FOR WHICH
13 OBLIGATIONS ARE OUTSTANDING SHALL NOT EXCEED, IN THE
14 AGGREGATE, $1,950,000,000. ON OR AFTER THE EFFECTIVE DATE OF
15 THIS SECTION, AT LEAST $100,000,000 SHALL BE SPECIFICALLY SET
16 ASIDE FOR PROJECTS FOR THE CONSTRUCTION OF OR IMPROVEMENTS TO
17 HOSPITAL FACILITIES.
18 (2) THE MAXIMUM AMOUNT OF SITE DEVELOPMENT CAPITAL
19 PROJECTS FOR WHICH OBLIGATIONS ARE OUTSTANDING SHALL NOT
20 EXCEED, IN THE AGGREGATE, $100,000,000.
21 § 9118. FUNDING AND ADMINISTRATION OF REDEVELOPMENT ASSISTANCE
22 CAPITAL PROJECTS.
23 (A) APPLICATIONS.--PERSONS SEEKING FUNDING FOR REDEVELOPMENT
24 ASSISTANCE CAPITAL PROJECTS ITEMIZED IN ACCORDANCE WITH SECTION
25 9103(B) (RELATING TO PROCEDURES FOR CAPITAL BUDGET BILL AND
26 DEBT-AUTHORIZING LEGISLATION) MAY REQUEST AN APPLICATION FROM
27 THE OFFICE OF THE BUDGET. COMPLETED APPLICATIONS SHALL BE
28 SUBMITTED TO THE OFFICE OF THE BUDGET WHICH SHALL REVIEW THEM TO
29 DETERMINE IF THE PROPOSED PROJECT MEETS THE DEFINITION OF
30 REDEVELOPMENT ASSISTANCE CAPITAL PROJECT AND FOR COMPLIANCE WITH
20030S0010B1026 - 164 -
1 APPLICATION REQUIREMENTS, INCLUDING THE SUBMISSION OF ALL
2 PROJECT DESCRIPTIONS, SCHEDULES, BUDGETS AND OTHER MATERIALS AS
3 MAY BE REQUIRED. DEFICIENT APPLICATIONS SHALL BE RETURNED TO THE
4 APPLICANT FOR REVISION. APPLICATIONS FOUND TO BE COMPLETE BY THE
5 OFFICE OF THE BUDGET SHALL BE FORWARDED TO THE COMMITTEE FOR
6 REVIEW. THE SECRETARY OF THE BUDGET MAY RECOMMEND PROJECTS TO
7 THE COMMITTEE FOR APPROVAL. THE COMMITTEE SHALL NOT BE BOUND BY
8 A RECOMMENDATION BY THE SECRETARY OF THE BUDGET.
9 (B) REVIEW.--THE FOLLOWING SHALL APPLY:
10 (1) THE COMMITTEE SHALL REVIEW AN APPLICATION FOR A
11 REDEVELOPMENT ASSISTANCE CAPITAL PROJECT TO DETERMINE ALL OF
12 THE FOLLOWING:
13 (I) IF THE PROJECT HAS A REGIONAL OR
14 MULTIJURISDICTIONAL IMPACT.
15 (II) THE PROJECT'S POTENTIAL TO ENHANCE REGIONAL
16 VITALITY.
17 (III) IF THE PROJECT IS ELIGIBLE FOR TAX-EXEMPT BOND
18 FUNDING UNDER EXISTING FEDERAL LAW AND REGULATIONS.
19 (IV) IF THE PROJECT HAS A 50% NON-STATE
20 PARTICIPATION DOCUMENTED AT THE TIME OF APPLICATION.
21 (V) THE NUMBER OF DIRECT JOBS CREATED BY THE
22 PROJECT.
23 (VI) THE NUMBER OF PERMANENT INDIRECT JOBS CREATED
24 BY SUPPORT, SUPPLIER AND SECONDARY INDUSTRIES ATTRACTED
25 BY THE PROJECT.
26 (VII) THE TOTAL STATE AND LOCAL TAX GENERATION.
27 (VIII) THE EXTENT TO WHICH BLIGHTED AREAS OR
28 FACILITIES ARE ELIMINATED OR REUSED.
29 (IX) ANY OTHER INFORMATION AS MAY BE REQUIRED BY THE
30 COMMITTEE.
20030S0010B1026 - 165 -
1 (X) IF THE PROJECT HAS A TOTAL COST OF AT LEAST
2 $1,000,000.
3 (2) THE COMMITTEE MAY CONSIDER THE FOLLOWING WHEN
4 REVIEWING REDEVELOPMENT ASSISTANCE CAPITAL PROJECTS:
5 (I) THE GEOGRAPHIC DISTRIBUTION OF REDEVELOPMENT
6 ASSISTANCE CAPITAL PROJECTS THROUGHOUT THIS COMMONWEALTH.
7 (II) THE RATIO OF STATE SHARE TO NON-STATE SHARE OF
8 THE TOTAL PROJECT COST.
9 (C) APPROVAL.--THE FOLLOWING SHALL APPLY:
10 (1) THE COMMITTEE MAY APPROVE A REDEVELOPMENT ASSISTANCE
11 CAPITAL PROJECT FOR WHICH AN APPLICATION HAS BEEN SUBMITTED
12 IF IT DETERMINES THAT THE PROPOSED PROJECT MEETS THE
13 REQUIREMENTS OF THE DEFINITIONS OF REDEVELOPMENT ASSISTANCE
14 CAPITAL PROJECT CONTAINED IN SECTION 9102 (RELATING TO
15 DEFINITIONS) AND WILL RESULT IN A SIGNIFICANT POSITIVE IMPACT
16 AS EVIDENCED BY THE REVIEW CRITERIA CONTAINED IN SUBSECTION
17 (B).
18 (2) UPON THE APPROVAL OF AN APPLICATION BY THE
19 COMMITTEE, THE SECRETARY OF THE BUDGET SHALL EXECUTE A GRANT
20 AGREEMENT OR CONTRACT WITH THE APPLICANT. STATE FUNDING FOR
21 APPROVED REDEVELOPMENT ASSISTANCE PROJECTS SHALL BE PAID IN
22 ACCORDANCE WITH SUBSECTION (D).
23 (3) THE COMMONWEALTH SHALL NOT CONTRACT WITH OR ENTER
24 INTO A GRANT AGREEMENT WITH AN APPLICANT FOR A REDEVELOPMENT
25 ASSISTANCE CAPITAL PROJECT ITEMIZED IN A CAPITAL BUDGET
26 ITEMIZATION ACT FOR THE PURPOSE UNLESS THE PROJECT HAS BEEN
27 APPROVED BY AT LEAST FOUR MEMBERS OF THE COMMITTEE.
28 (D) TIME PERIOD.--STATE FUNDING FOR APPROVED REDEVELOPMENT
29 ASSISTANCE CAPITAL PROJECTS SHALL BE PAID OVER NOT LESS THAN A
30 36-MONTH PERIOD UNLESS THE SECRETARY OR THE COMMITTEE AUTHORIZES
20030S0010B1026 - 166 -
1 A SHORTER PERIOD.
2 (E) COSTS.--FEES FOR PROFESSIONAL SERVICES INCURRED FOR THE
3 DESIGN AND CONSTRUCTION OF REDEVELOPMENT ASSISTANCE CAPITAL
4 PROJECTS SHALL BE PAID FROM NON-STATE FUNDS. LAND ACQUISITION IS
5 A PERMISSIBLE STATE-FUNDED EXPENDITURE IF THE ACQUISITION COST
6 IS SUPPORTED BY AN APPRAISAL DONE BY A CERTIFIED APPRAISER.
7 (F) PROPORTION.--EXPENDITURE OF STATE AND NON-STATE FUNDS
8 SHALL BE MADE ON A PROPORTIONAL BASIS FOR DIRECT LAND AND
9 BUILDING ACQUISITION COSTS AND CONSTRUCTION EXPENSES.
10 (G) VERIFICATION.--REDEVELOPMENT ASSISTANCE CAPITAL PROJECT
11 COST ESTIMATES MUST BE VERIFIED BY THE OFFICE OF THE BUDGET OR
12 ITS DESIGNATED AGENT BEFORE FINAL APPROVAL IS GIVEN TO A PROJECT
13 APPLICATION BY THE COMMITTEE. COST ESTIMATES INCLUDE TOTAL
14 PROJECT COST, PROJECTED USE FOR STATE AND NON-STATE FUNDS AND A
15 YEAR-BY-YEAR SCHEDULE OF COSTS FOR THE ENTIRE PROJECT
16 CONSTRUCTION PHASE.
17 (H) BIDS.--
18 (1) NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW AND
19 SUBJECT TO PARAGRAPH (2), THE SOLICITATION OF A MINIMUM OF
20 THREE WRITTEN BIDS FOR ALL CONTRACTED CONSTRUCTION WORK ON
21 REDEVELOPMENT ASSISTANCE CAPITAL PROJECTS SHALL BE THE SOLE
22 REQUIREMENT FOR THE COMPOSITION, SOLICITATION, OPENING AND
23 AWARD OF BIDS ON SUCH PROJECTS.
24 (2) THE CONSTRUCTION WORK SHALL BE PERFORMED SUBJECT TO
25 THE ACT OF MARCH 3, 1978 (P.L.6, NO.3), KNOWN AS THE STEEL
26 PRODUCTS PROCUREMENT ACT.
27 (I) REVIEW AND AUDIT.--REDEVELOPMENT ASSISTANCE CAPITAL
28 PROJECTS SHALL BE REVIEWED AT REGULAR INTERVALS BY THE OFFICE OF
29 THE BUDGET OR ITS DESIGNATED AGENT DURING THE FUNDING PHASE TO
30 ENSURE FINANCIAL AND PROGRAM COMPLIANCE. A FINAL CLOSEOUT AUDIT
20030S0010B1026 - 167 -
1 SHALL BE PERFORMED BY THE OFFICE OF THE BUDGET OR ITS DESIGNATED
2 AGENT FOR ALL PROJECTS. COPIES OF CLOSEOUT AUDITS SHALL BE
3 PROVIDED TO THE COMMITTEE BY THE OFFICE OF THE BUDGET UPON
4 COMPLETION.
5 (J) GRANT ADMINISTRATION.--IN THE EVENT AN APPLICANT DOES
6 NOT ADMINISTER THE GRANT, THE APPLICANT SHALL ENTER INTO A
7 COOPERATION AGREEMENT WITH THE ENTITY ADMINISTERING THE GRANT
8 WHICH AGREEMENT SHALL BE SUBJECT TO THE APPROVAL OF THE OFFICE
9 OF THE BUDGET.
10 § 9119. FUNDING AND ADMINISTRATION OF SITE DEVELOPMENT CAPITAL
11 PROJECTS.
12 (A) APPLICATIONS.--PERSONS SEEKING FUNDING FOR SITE
13 DEVELOPMENT CAPITAL PROJECTS ITEMIZED IN A CAPITAL BUDGET
14 ITEMIZATION ACT MAY REQUEST AN APPLICATION FROM THE OFFICE OF
15 THE BUDGET. COMPLETED APPLICATIONS SHALL BE SUBMITTED TO THE
16 OFFICE OF THE BUDGET WHICH SHALL REVIEW THEM TO DETERMINE IF THE
17 PROPOSED PROJECT MEETS THE DEFINITION OF SITE DEVELOPMENT
18 CAPITAL PROJECT AND FOR COMPLIANCE WITH APPLICATION
19 REQUIREMENTS, INCLUDING THE SUBMISSION OF ALL PROJECT
20 DESCRIPTIONS, SCHEDULES, BUDGETS AND OTHER MATERIALS AS MAY BE
21 REQUIRED. DEFICIENT APPLICATIONS SHALL BE RETURNED TO THE
22 APPLICANT FOR REVISION. APPLICATIONS FOUND TO BE COMPLETE BY THE
23 OFFICE OF THE BUDGET SHALL BE FORWARDED TO THE COMMITTEE FOR
24 REVIEW. THE SECRETARY OF THE BUDGET MAY RECOMMEND PROJECTS TO
25 THE COMMITTEE FOR APPROVAL. THE COMMITTEE SHALL NOT BE BOUND BY
26 A RECOMMENDATION BY THE SECRETARY OF THE BUDGET.
27 (B) REVIEW.--THE FOLLOWING SHALL APPLY:
28 (1) THE COMMITTEE SHALL REVIEW AN APPLICATION FOR A SITE
29 DEVELOPMENT CAPITAL PROJECT TO DETERMINE ALL OF THE
30 FOLLOWING:
20030S0010B1026 - 168 -
1 (I) IF THE PROJECT LOCATIONS ARE SUITABLE FOR THE
2 SITING OF BUSINESS, INDUSTRIAL OR RESEARCH FACILITIES.
3 (II) IF THE PROJECT CREATES OPPORTUNITIES TO DEVELOP
4 NEW FACILITIES OR TO EXPAND EXISTING FACILITIES FOR
5 BUSINESS, SERVICE INDUSTRIES, MANUFACTURING, RESEARCH AND
6 DEVELOPMENT OR OTHER BUSINESS OR INDUSTRIAL OPERATIONS
7 THAT PRODUCE GOODS OR SERVICES.
8 (III) IF THE PROJECT WILL RESULT IN THE CREATION OF
9 NEW JOBS OR THE PRESERVATION OF EXISTING JOBS.
10 (IV) IF THE PROJECT HAS 50% NON-STATE PARTICIPATION
11 DOCUMENTED AT THE TIME OF APPLICATION.
12 (V) IF THE PROJECT HAS A TOTAL PROJECT COST OF AT
13 LEAST $1,000,000.
14 (VI) IF IT IS LIKELY THAT THE PROJECT WILL BE
15 OCCUPIED BY A BUSINESS OR INDUSTRIAL TENANT WITHIN FIVE
16 YEARS OF COMPLETION OR ANY OTHER REASONABLE PERIOD OF
17 TIME AS MAY BE DESIGNATED BY THE SECRETARY OF COMMUNITY
18 AND ECONOMIC DEVELOPMENT.
19 (2) THE COMMITTEE MAY CONSIDER THE FOLLOWING WHEN
20 REVIEWING SITE DEVELOPMENT CAPITAL PROJECTS:
21 (I) THE GEOGRAPHIC DISTRIBUTION OF SITE DEVELOPMENT
22 CAPITAL PROJECTS THROUGHOUT THIS COMMONWEALTH.
23 (II) THE RATIO OF STATE SHARE TO NON-STATE SHARE OF
24 THE TOTAL PROJECT COST.
25 (C) APPROVAL.--THE FOLLOWING SHALL APPLY:
26 (1) THE COMMITTEE MAY APPROVE A SITE DEVELOPMENT CAPITAL
27 PROJECT FOR WHICH AN APPLICATION HAS BEEN SUBMITTED IF IT
28 DETERMINES THAT THE PROPOSED PROJECT MEETS THE REQUIREMENTS
29 OF THE DEFINITIONS OF SITE DEVELOPMENT CAPITAL PROJECT
30 CONTAINED IN SECTION 9102 (RELATING TO DEFINITIONS) AND WILL
20030S0010B1026 - 169 -
1 RESULT IN A SIGNIFICANT POSITIVE IMPACT AS EVIDENCED BY THE
2 REVIEW CRITERIA CONTAINED IN SUBSECTION (B).
3 (2) UPON THE APPROVAL OF AN APPLICATION BY THE
4 COMMITTEE, THE SECRETARY OF THE BUDGET SHALL EXECUTE A GRANT
5 AGREEMENT OR CONTRACT WITH THE APPLICANT. STATE FUNDING FOR
6 APPROVED SITE DEVELOPMENT CAPITAL PROJECTS SHALL BE PAID IN
7 ACCORDANCE WITH SUBSECTION (D).
8 (3) THE COMMONWEALTH SHALL NOT CONTRACT WITH OR ENTER
9 INTO A GRANT AGREEMENT WITH AN APPLICANT FOR A SITE
10 DEVELOPMENT CAPITAL PROJECT ITEMIZED IN A CAPITAL BUDGET
11 ITEMIZATION ACT FOR THE PURPOSE OF PROVIDING FUNDING UNLESS
12 THE PROJECT HAS BEEN APPROVED BY AT LEAST FOUR MEMBERS OF THE
13 COMMITTEE.
14 (D) TIME PERIOD.--STATE FUNDING FOR APPROVED SITE
15 DEVELOPMENT CAPITAL PROJECTS SHALL BE PAID OVER NOT LESS THAN A
16 36-MONTH PERIOD UNLESS THE SECRETARY OF THE BUDGET OR THE
17 COMMITTEE AUTHORIZES A SHORTER PERIOD.
18 (E) COSTS.--FEES FOR PROFESSIONAL SERVICES INCURRED FOR THE
19 DESIGN AND CONSTRUCTION OF SITE DEVELOPMENT CAPITAL PROJECTS
20 SHALL BE PAID FROM NON-STATE FUNDS. LAND ACQUISITION SHALL BE A
21 PERMISSIBLE STATE-FUNDED EXPENDITURE IF THE ACQUISITION COST IS
22 SUPPORTED BY AN APPRAISAL DONE BY A CERTIFIED APPRAISER.
23 (F) PROPORTION.--EXPENDITURE OF STATE AND NON-STATE FUNDS
24 SHALL BE MADE ON A PROPORTIONAL BASIS FOR DIRECT LAND
25 ACQUISITION COSTS AND CONSTRUCTION EXPENSES.
26 (G) VERIFICATION.--SITE DEVELOPMENT CAPITAL PROJECT COST
27 ESTIMATES MUST BE VERIFIED BY THE OFFICE OF THE BUDGET OR ITS
28 DESIGNATED AGENT BEFORE FINAL APPROVAL IS GIVEN TO A PROJECT
29 APPLICATION BY THE COMMITTEE. COST ESTIMATES SHALL INCLUDE TOTAL
30 PROJECT COST, PROJECTED USE FOR STATE AND NON-STATE FUNDS AND A
20030S0010B1026 - 170 -
1 YEAR-BY-YEAR SCHEDULE OF COSTS FOR THE ENTIRE PROJECT
2 CONSTRUCTION PHASE.
3 (H) BIDS.--THE FOLLOWING SHALL APPLY:
4 (1) NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW AND
5 SUBJECT TO PARAGRAPH (2), THE SOLICITATION OF A MINIMUM OF
6 THREE WRITTEN BIDS FOR ALL CONTRACTED CONSTRUCTION WORK ON
7 SITE DEVELOPMENT CAPITAL PROJECTS SHALL BE THE SOLE
8 REQUIREMENT FOR THE COMPOSITION, SOLICITATION, OPENING AND
9 AWARD OF BIDS ON SUCH PROJECTS.
10 (2) THE CONSTRUCTION WORK SHALL BE PERFORMED SUBJECT TO
11 THE ACT OF MARCH 3, 1978 (P.L.6, NO.3), KNOWN AS THE STEEL
12 PRODUCTS PROCUREMENT ACT.
13 (I) REVIEW AND AUDIT.--SITE DEVELOPMENT CAPITAL PROJECTS
14 SHALL BE REVIEWED AT REGULAR INTERVALS BY THE OFFICE OF THE
15 BUDGET OR ITS DESIGNATED AGENT DURING THE FUNDING PHASE TO
16 ENSURE FINANCIAL AND PROGRAM COMPLIANCE. A FINAL CLOSEOUT AUDIT
17 SHALL BE PERFORMED BY THE OFFICE OF THE BUDGET OR ITS DESIGNATED
18 AGENT FOR ALL PROJECTS. COPIES OF CLOSEOUT AUDITS SHALL BE
19 PROVIDED TO THE COMMITTEE BY THE OFFICE OF THE BUDGET UPON
20 COMPLETION.
21 (J) GRANT ADMINISTRATION.--IN THE EVENT AN APPLICANT DOES
22 NOT ADMINISTER THE GRANT, THE APPLICANT SHALL ENTER INTO A
23 COOPERATION AGREEMENT WITH THE ENTITY ADMINISTERING THE GRANT.
24 THE COOPERATION AGREEMENT SHALL BE SUBJECT TO THE APPROVAL OF
25 THE OFFICE OF THE BUDGET.
26 § 9120. CAPITAL PROJECT OVERSIGHT AND REVIEW COMMITTEE.
27 (A) ESTABLISHMENT.--THERE IS ESTABLISHED A CAPITAL PROJECT
28 OVERSIGHT AND REVIEW COMMITTEE FOR THE PURPOSE OF REVIEWING AND
29 APPROVING REDEVELOPMENT ASSISTANCE CAPITAL PROJECTS AND SITE
30 DEVELOPMENT CAPITAL PROJECTS.
20030S0010B1026 - 171 -
1 (B) COMPOSITION.--THE FOLLOWING SHALL APPLY:
2 (1) THE CAPITAL PROJECT OVERSIGHT AND REVIEW COMMITTEE
3 SHALL CONSIST OF:
4 (I) THE GOVERNOR OR A DESIGNEE;
5 (II) THE MAJORITY LEADER OF THE SENATE OR A
6 DESIGNEE;
7 (III) THE MINORITY LEADER OF THE SENATE OR A
8 DESIGNEE;
9 (IV) THE MAJORITY LEADER OF THE HOUSE OF
10 REPRESENTATIVES OR A DESIGNEE;
11 (V) THE MINORITY LEADER OF THE HOUSE OF
12 REPRESENTATIVES OR A DESIGNEE.
13 (2) THE GOVERNOR OR THE GOVERNOR'S DESIGNEE SHALL ACT AS
14 CHAIRMAN OF THE COMMITTEE.
15 (3) THE SECRETARY OF THE BUDGET SHALL ACT AS THE
16 COMMITTEE SECRETARY AND SHALL PROVIDE STAFF SUPPORT AS
17 REQUIRED BY THE COMMITTEE. THE SECRETARY OF THE BUDGET SHALL
18 NOT BE A VOTING MEMBER OF THE COMMITTEE.
19 (C) MEETINGS.--
20 (1) THE COMMITTEE SHALL MEET AT THE CALL OF THE CHAIRMAN
21 BUT AT LEAST ONCE DURING EACH QUARTER OF THE FISCAL YEAR.
22 (2) FOUR MEMBERS SHALL CONSTITUTE A QUORUM.
23 (3) THE CONSENT OF FOUR MEMBERS OF THE COMMITTEE SHALL
24 BE REQUIRED TO APPROVE AN APPLICATION FOR A REDEVELOPMENT
25 ASSISTANCE CAPITAL PROJECT OR A SITE DEVELOPMENT CAPITAL
26 PROJECT.
27 CHAPTER 92
28 SPORTS FACILITIES
29 SEC.
30 9201. DEFINITIONS.
20030S0010B1026 - 172 -
1 9202. COMMONWEALTH FUNDS.
2 9203. ELIGIBILITY.
3 9204. REQUIREMENT.
4 9205. OTHER AGREEMENTS.
5 9206. REPORT.
6 9207. FINANCIAL COMMITMENT.
7 9208. ENFORCEMENT AND PENALTIES.
8 9209. EXPIRATION.
9 9210. SCOPE.
10 § 9201. DEFINITIONS.
11 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
12 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
13 CONTEXT CLEARLY INDICATES OTHERWISE:
14 "BASELINE TAX AMOUNT." THE AVERAGE OF TAXES REFERRED TO IN
15 SECTION 9204(7)(I) (RELATING TO REQUIREMENT) PAID TO THE
16 COMMONWEALTH IN 1996, 1997 AND 1998.
17 "CONTRACTING AUTHORITY." AN AUTHORITY CREATED PURSUANT TO 53
18 PA.C.S. CH. 56 (RELATING TO MUNICIPAL AUTHORITIES), FOR THE
19 PURPOSE OF CONSTRUCTING OR RENOVATING A FACILITY OR OTHER
20 AUTHORITY ESTABLISHED UNDER THE LAWS OF THIS COMMONWEALTH WHICH
21 IS ELIGIBLE TO APPLY FOR AND RECEIVE REDEVELOPMENT ASSISTANCE
22 CAPITAL GRANTS UNDER CHAPTER 91 (RELATING TO CAPITAL FACILITIES)
23 UNDER A CONTRACT WITH THE OFFICE TO RECEIVE COMMONWEALTH GRANTS
24 UNDER THIS CHAPTER.
25 "CONTRACTING MUNICIPALITY." A CITY, COUNTY, TOWNSHIP, TOWN
26 OR BOROUGH WHICH CONTRACTS WITH THE OFFICE TO RECEIVE
27 COMMONWEALTH FUNDS TO CONSTRUCT OR RENOVATE A FACILITY.
28 "FACILITY." A STADIUM, ARENA OR OTHER PLACE OWNED OR LEASED
29 BY A PROFESSIONAL SPORTS ORGANIZATION AT WHICH A PROFESSIONAL
30 ATHLETIC EVENT IS CONDUCTED IN THE PRESENCE OF INDIVIDUALS WHO
20030S0010B1026 - 173 -
1 PAY ADMISSION TO VIEW THE EVENT. THE TERM INCLUDES A FACILITY TO
2 BE CONSTRUCTED AS WELL AS AN EXISTING FACILITY.
3 "OFFICE." THE OFFICE OF THE BUDGET.
4 "PROFESSIONAL SPORTS ORGANIZATION." A SOLE PROPRIETORSHIP,
5 CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP OR
6 ASSOCIATION THAT:
7 (1) OWNS A PROFESSIONAL MAJOR LEAGUE BASEBALL OR
8 NATIONAL FOOTBALL FRANCHISE; AND
9 (2) CONDUCTS PROFESSIONAL ATHLETIC EVENTS OF THE
10 FRANCHISE AT A FACILITY.
11 § 9202. COMMONWEALTH FUNDS.
12 THE RECEIPT OF GRANTS OF COMMONWEALTH FUNDS BY A CONTRACTING
13 MUNICIPALITY OR CONTRACTING AUTHORITY UNDER CHAPTER 91 (RELATING
14 TO CAPITAL FACILITIES) OR THIS CHAPTER TO FINANCE ANY COST
15 RELATED TO THE CONSTRUCTION OR RENOVATION OF A FACILITY SHALL BE
16 SUBJECT TO THE REQUIREMENTS OF THIS CHAPTER.
17 § 9203. ELIGIBILITY.
18 IN ORDER FOR A FACILITY TO QUALIFY FOR GRANTS OF COMMONWEALTH
19 FUNDS, THE PROFESSIONAL SPORTS ORGANIZATION UTILIZING THE
20 FACILITY MUST CERTIFY THAT:
21 (1) IT MAINTAINS ITS HEADQUARTERS, PRINCIPAL BUSINESS
22 OFFICES, TRAINING FACILITIES AND CAMPS, EXCEPT BASEBALL
23 SPRING TRAINING, AND RELATED ENTERPRISES AND ACTIVITIES,
24 EXCEPT MINOR LEAGUE ACTIVITIES, IN THIS COMMONWEALTH;
25 (2) EXCEPT FOR A SOLE PROPRIETORSHIP, IT IS
26 INCORPORATED, ORGANIZED OR OTHERWISE CREATED UNDER THE LAWS
27 OF THIS COMMONWEALTH; AND
28 (3) IT WILL CONTINUE TO COMPLY WITH THE CERTIFICATIONS
29 UNDER PARAGRAPHS (1) AND (2) FOR THE DURATION OF THE LEASE
30 UNDER SECTION 9204(1) (RELATING TO REQUIREMENT) OR FOR THE
20030S0010B1026 - 174 -
1 INITIAL TERM OF THE DEBT, WHICHEVER IS LONGER.
2 § 9204. REQUIREMENT.
3 IN ORDER FOR GRANTS OF COMMONWEALTH FUNDS TO BE USED TO
4 CONSTRUCT OR RENOVATE A FACILITY, THE CONTRACTING MUNICIPALITY
5 OR CONTRACTING AUTHORITY MUST CONTRACT WITH THE PROFESSIONAL
6 SPORTS ORGANIZATION TO ENSURE COMPLIANCE BY THE PROFESSIONAL
7 SPORTS ORGANIZATION WITH THE FOLLOWING TERMS AND CONDITIONS:
8 (1) AGREEMENT BY THE PROFESSIONAL SPORTS ORGANIZATION TO
9 REMAIN AND CONDUCT PROFESSIONAL SPORTING EVENTS IN THE
10 FACILITY FOR THE DURATION OF THE LEASE OR FOR THE TERM OF ANY
11 DEBT OF THE COMMONWEALTH, WHICHEVER IS LONGER, BUT IN NO
12 EVENT LONGER THAN 29.5 YEARS. THE CONTRACT SHALL INCLUDE
13 AGREEMENT BY THE PROFESSIONAL SPORTS ORGANIZATION THAT IF THE
14 AGREEMENT TO REMAIN AND CONDUCT PROFESSIONAL SPORTING EVENTS
15 IS VIOLATED, THE CONTRACTING MUNICIPALITY OR CONTRACTING
16 AUTHORITY SHALL SEEK SPECIFIC PERFORMANCE OF THE AGREEMENT TO
17 REMAIN AND CONDUCT PROFESSIONAL SPORTING EVENTS OR RECEIVE A
18 PAYMENT IN THE AMOUNT SET FORTH IN THE AGREEMENT BETWEEN THE
19 CONTRACTING MUNICIPALITY OR CONTRACTING AUTHORITY AND THE
20 PROFESSIONAL SPORTS ORGANIZATION AND THE AMOUNT EQUAL TO THE
21 COMMONWEALTH'S PRINCIPAL CONTRIBUTION UNDER CHAPTER 91
22 (RELATING TO CAPITAL FACILITIES) OR THIS CHAPTER TO THE
23 CONSTRUCTION OR RENOVATION OF THE FACILITY.
24 (2) ESTABLISHMENT OF A PROCEDURE TO PROVIDE WRITTEN
25 NOTICE BY THE PROFESSIONAL SPORTS ORGANIZATION TO THE
26 CONTRACTING MUNICIPALITY OR CONTRACTING AUTHORITY AND THE
27 COMMONWEALTH OF ANY SALE, TRANSFER OR RELOCATION OF ITS
28 SPORTS FRANCHISE OR TEAM IMMEDIATELY UPON ENTERING INTO ANY
29 COMMITMENT TO SELL, TRANSFER OR RELOCATE THE SPORTS FRANCHISE
30 OR TEAM.
20030S0010B1026 - 175 -
1 (3) AGREEMENT THAT IF THE PROFESSIONAL SPORTS
2 ORGANIZATION SELLS OR TRANSFERS ITS SPORTS FRANCHISE OR TEAM,
3 THE PURCHASER OR TRANSFEREE SHALL BE BOUND BY AND SHALL
4 CONTRACT TO BE SUBJECT TO THE SAME TERMS AND CONDITIONS
5 REQUIRED BY THIS CHAPTER AS A CONDITION OF THE SALE.
6 (4) AGREEMENT THAT ALL COSTS OF DESIGN AND CONSTRUCTION
7 OF A NEW OR RENOVATED FACILITY WHICH ARE DUE TO DELAYS OR
8 WHICH EXCEED THE PROJECTED COSTS SET FORTH IN THE FINANCIAL
9 PLAN OR CONTRACT WITH THE OFFICE SHALL BE THE RESPONSIBILITY
10 OF THE CONTRACTING MUNICIPALITY OR CONTRACTING AUTHORITY OR
11 THE PROFESSIONAL SPORTS ORGANIZATION.
12 (5) AGREEMENT THAT DURING THE TERM OF THE LEASE FOR THE
13 FACILITY, THE PROFESSIONAL SPORTS ORGANIZATION OR THE
14 CONTRACTING MUNICIPALITY OR CONTRACTING AUTHORITY SHALL BE
15 RESPONSIBLE FOR ALL CAPITAL IMPROVEMENTS TO THE FACILITY AND
16 FOR ALL OPERATING EXPENSES RELATING TO THE USE OF THE
17 FACILITY, INCLUDING SECURITY, CLEANING, INSURANCE,
18 MAINTENANCE AND UTILITIES.
19 (6) AGREEMENT TO SET ASIDE A SPECIFIED MINIMUM NUMBER OF
20 DAYS, AT REASONABLE TIMES THROUGHOUT THE YEAR, TO BE
21 AVAILABLE FOR THE USE OF THE FACILITY BY THE CONTRACTING
22 MUNICIPALITY OR CONTRACTING AUTHORITY OR BY THE COMMONWEALTH.
23 UNDER THIS AGREEMENT, THE COMMONWEALTH SHALL RECEIVE THE SAME
24 NUMBER OF DAYS AND BE ENTITLED TO THE SAME TERMS AS THE
25 CONTRACTING MUNICIPALITY OR CONTRACTING AUTHORITY.
26 (7) AGREEMENT TO MAKE AN ADDITIONAL RENTAL PAYMENT OF
27 $25,000,000 REDUCED BY AVAILABLE CREDITS UNDER SUBPARAGRAPHS
28 (I) THROUGH (III) IN THE TAX YEAR IMMEDIATELY FOLLOWING THE
29 EXPIRATION OF THE FIRST TEN-YEAR PERIOD OF OCCUPANCY OR LEASE
30 OF THE FACILITY AND AT THE EXPIRATION OF EVERY TEN-YEAR
20030S0010B1026 - 176 -
1 PERIOD THEREAFTER. THE PROFESSIONAL SPORTS ORGANIZATION SHALL
2 PAY THE ADDITIONAL RENTAL PAYMENT TO THE CONTRACTING
3 MUNICIPALITY OR CONTRACTING AUTHORITY, WHICH SHALL REMIT THE
4 ADDITIONAL RENTAL PAYMENT TO THE COMMONWEALTH. THE ADDITIONAL
5 RENTAL PAYMENT MADE BY THE PROFESSIONAL SPORTS ORGANIZATION
6 SHALL BE REDUCED BY THE FOLLOWING CREDITS:
7 (I) THE CREDITS AVAILABLE FOR THE FIRST TEN-YEAR
8 PERIOD OF OCCUPANCY OR LEASE SHALL BE AMOUNTS PAID TO THE
9 COMMONWEALTH WHICH EXCEED THE PRODUCT OF THE BASELINE TAX
10 AMOUNT MULTIPLIED BY 7.5. THE CREDITS AVAILABLE FOR EACH
11 SUBSEQUENT TEN-YEAR PERIOD OF OCCUPANCY SHALL BE THE
12 AMOUNTS PAID TO THE COMMONWEALTH WHICH EXCEED THE PRODUCT
13 OF THE BASELINE TAX AMOUNT MULTIPLIED BY 10. AVAILABLE
14 CREDITS INCLUDE ALL OF THE FOLLOWING:
15 (A) AN AMOUNT EQUAL TO ALL CORPORATE NET INCOME
16 TAX, CAPITAL STOCK AND FRANCHISE TAX AND PERSONAL
17 INCOME TAX RELATED TO THE OWNERSHIP AND OPERATION OF
18 THE PROFESSIONAL SPORTS ORGANIZATION.
19 (B) AN AMOUNT EQUAL TO:
20 (I) ALL PERSONAL INCOME TAX WITHHELD FROM
21 ITS EMPLOYEES BY THE PROFESSIONAL SPORTS
22 ORGANIZATION;
23 (II) ALL PERSONAL INCOME TAX WITHHELD FROM
24 THE EMPLOYEES OF ANY PROVIDER OF EVENTS AT OR
25 SERVICES TO, OR ANY OPERATOR OF AN ENTERPRISE IN,
26 A FACILITY OR FACILITY COMPLEX; AND
27 (III) ALL PERSONAL INCOME TAX TO WHICH THE
28 COMMONWEALTH WOULD BE ENTITLED FROM PERFORMERS OR
29 OTHER PARTICIPANTS, INCLUDING VISITING TEAMS, AT
30 AN EVENT OR ACTIVITY AT THE FACILITY.
20030S0010B1026 - 177 -
1 (C) AN AMOUNT EQUAL TO ALL SALES AND USE TAX
2 RELATED TO THE OPERATION OF THE PROFESSIONAL SPORTS
3 ORGANIZATION AND THE FACILITY AND ENTERPRISES
4 DEVELOPED AS PART OF THE FACILITY COMPLEX. THIS
5 CLAUSE INCLUDES SALES AND USE TAX PAID BY ANY
6 PROVIDER OF EVENTS OR ACTIVITIES AT OR SERVICES TO A
7 FACILITY, INCLUDING SALES AND USE TAX PAID BY VENDORS
8 AND CONCESSIONAIRES AND CONTRACTORS AT THE FACILITY.
9 (D) AN AMOUNT EQUAL TO ALL TAX PAID, BY THE
10 PROFESSIONAL SPORTS ORGANIZATION OR BY ANY PROVIDER
11 OF EVENTS OR ACTIVITIES AT OR SERVICES TO A FACILITY,
12 TO THE COMMONWEALTH RELATED TO THE SALE OF ANY
13 LIQUOR, WINE OR MALT OR BREWED BEVERAGE IN THE
14 FACILITY OR FACILITY COMPLEX.
15 (E) THE AMOUNT PAID BY THE PROFESSIONAL SPORTS
16 ORGANIZATION OR BY ANY PROVIDER OF EVENTS OR
17 ACTIVITIES AT OR SERVICES TO A FACILITY OR FACILITY
18 COMPLEX OF ANY NEW TAX ENACTED BY THE COMMONWEALTH
19 AFTER FEBRUARY 9, 1999.
20 (II) IN ADDITION TO THE CREDITS AVAILABLE UNDER
21 SUBPARAGRAPH (I), THE PROFESSIONAL SPORTS ORGANIZATION
22 MAY CREDIT AN AMOUNT EQUAL TO ONE-THIRD OF THE FOLLOWING,
23 INCURRED PRIOR TO THE OCCUPANCY OR LEASE OF THE FACILITY:
24 (A) ALL PERSONAL INCOME TAX WITHHELD FROM
25 PERSONNEL BY THE PROFESSIONAL SPORTS ORGANIZATION OR
26 BY A CONTRACTOR OR OTHER ENTITY INVOLVED IN THE
27 CONSTRUCTION OR RENOVATION OF THE FACILITY; AND
28 (B) SALES AND USE TAX PAID ON MATERIALS AND
29 OTHER CONSTRUCTION COSTS, WHETHER WITHHELD OR PAID BY
30 THE PROFESSIONAL SPORTS ORGANIZATION OR OTHER ENTITY,
20030S0010B1026 - 178 -
1 DIRECTLY RELATED TO THE CONSTRUCTION OR RENOVATION OF
2 THE FACILITY.
3 (III) TO THE EXTENT THE AMOUNT OF THE CREDITS
4 AVAILABLE FOR A SPECIFIC TEN-YEAR PERIOD UNDER
5 SUBPARAGRAPHS (I) AND (II) EXCEEDS $25,000,000, THE
6 EXCESS MAY BE CARRIED OVER AND ADDED TO THE AMOUNT OF
7 CREDITS CLAIMED UNDER SUBPARAGRAPHS (I) AND (II) FOR THE
8 FOLLOWING TEN-YEAR PERIOD. ANY EXCESS CREDIT STILL
9 REMAINING SHALL BE CARRIED OVER TO SUBSEQUENT TEN-YEAR
10 PERIODS UNTIL IT IS EXHAUSTED OR UNTIL THE EXPIRATION OF
11 THIS CHAPTER UNDER SECTION 9209 (RELATING TO EXPIRATION),
12 WHICHEVER IS SOONER.
13 (IV) PAYMENTS SHALL BE MADE BY THE PROFESSIONAL
14 SPORTS ORGANIZATION AND REMITTED BY THE CONTRACTING
15 MUNICIPALITY OR CONTRACTING AUTHORITY AT A TIME AND IN A
16 MANNER, INCLUDING REQUIRED DOCUMENTATION OF ALL CREDITS,
17 AS THE OFFICE PRESCRIBES. THIS SUBPARAGRAPH INCLUDES
18 ANNUAL RECONCILIATION OF ALL CREDITS UNDER SUBPARAGRAPHS
19 (I) THROUGH (III). ALL TAX RECORDS AND INFORMATION SHALL
20 BE SUBJECT TO ALL CONFIDENTIALITY PROTECTIONS PROVIDED BY
21 THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX
22 REFORM CODE OF 1971; HOWEVER, THE DEPARTMENT OF REVENUE
23 SHALL PROVIDE RECORDS AND INFORMATION TO THE OFFICE AS
24 NECESSARY FOR THE OFFICE TO ENFORCE THIS CHAPTER.
25 (8) AN AGREEMENT THAT, UPON SALE OF THE FACILITY OR THE
26 EXPIRATION OR TERMINATION OF THE LEASE AT THE FACILITY, THE
27 COMMONWEALTH SHALL HAVE AN OPTION TO PURCHASE FOR $1 A ONE-
28 THIRD INTEREST IN THE FACILITY.
29 § 9205. OTHER AGREEMENTS.
30 THE CONTRACTING MUNICIPALITY OR THE CONTRACTING AUTHORITY AND
20030S0010B1026 - 179 -
1 THE PROFESSIONAL SPORTS ORGANIZATION MAY ENTER INTO ALL OTHER
2 AGREEMENTS NECESSARY AND APPROPRIATE FOR THE CONSTRUCTION,
3 RENOVATION AND OPERATION OF THE FACILITY. THE CONTRACTING
4 MUNICIPALITY OR THE CONTRACTING AUTHORITY SHALL ENTER INTO ALL
5 CONTRACTS WITH THE OFFICE REQUIRED TO RECEIVE COMMONWEALTH
6 FUNDS.
7 § 9206. REPORT.
8 THE OFFICE SHALL FILE A REPORT EVERY TEN YEARS TO THE GENERAL
9 ASSEMBLY REGARDING THE ADDITIONAL RENTAL PAYMENTS UNDER THIS
10 CHAPTER.
11 § 9207. FINANCIAL COMMITMENT.
12 THE CONTRACTING MUNICIPALITY OR CONTRACTING AUTHORITY AND THE
13 PROFESSIONAL SPORTS ORGANIZATION MUST PROVIDE TO THE OFFICE ALL
14 OF THE FOLLOWING:
15 (1) A FINANCIAL PLAN FOR ALL FUNDING RELATED TO THE
16 CONSTRUCTION OR RENOVATION OF THE FACILITY, TO INCLUDE
17 DETAILS REGARDING THE FINANCIAL COMMITMENT OF THE PARTIES TO
18 THE PROJECT.
19 (2) AN ECONOMIC DEVELOPMENT PLAN FOR THE AREA
20 SURROUNDING THE FACILITY.
21 (3) A PLAN TO PROVIDE AFFORDABLE SEATING WITHIN A
22 PORTION OF THE FACILITY.
23 (4) A REPRESENTATION FROM THE CONTRACTING MUNICIPALITY
24 OR CONTRACTING AUTHORITY THAT TAX REVENUES TO THE
25 COMMONWEALTH WILL BE INCREASED AND A DESCRIPTION OF HOW THE
26 GRANT OF COMMONWEALTH FUNDS WILL PROVIDE THE INCREASE.
27 § 9208. ENFORCEMENT AND PENALTIES.
28 (A) INJUNCTION.--THE COMMONWEALTH MAY ENJOIN A VIOLATION OF
29 SECTION 9204 (RELATING TO REQUIREMENT).
30 (B) WITHHOLD FUNDING.--THE COMMONWEALTH HAS THE RIGHT TO
20030S0010B1026 - 180 -
1 WITHHOLD FUNDING UNDER THIS CHAPTER AND TO EXERCISE ALL RIGHTS
2 AND REMEDIES AT LAW OR IN EQUITY FOR ANY OF THE FOLLOWING:
3 (1) FAILURE OF A PROFESSIONAL SPORTS ORGANIZATION TO
4 COMPLY WITH THE PROVISIONS OF THIS CHAPTER IN A TIMELY AND
5 APPROPRIATE MANNER.
6 (2) A VIOLATION OF A COVENANT UNDER ANY AGREEMENT WITH
7 OR FOR THE BENEFIT OF THE COMMONWEALTH RELATING TO THE
8 CONSTRUCTION OR RENOVATION OR USE OF THE FACILITY.
9 (3) ANY OTHER VIOLATION OF LAW APPLICABLE TO THE
10 CONSTRUCTION OR RENOVATION OR USE OF THE FACILITY.
11 (C) CIVIL PENALTY.--A PERSON THAT INTENTIONALLY, RECKLESSLY
12 OR NEGLIGENTLY VIOLATES THIS CHAPTER SHALL BE SUBJECT TO A CIVIL
13 PENALTY OF UP TO $100,000 PER VIOLATION.
14 (D) CRIMINAL PENALTY.--A PERSON THAT INTENTIONALLY OR
15 KNOWINGLY PROVIDES FALSE OR FRAUDULENT INFORMATION OR MAKES A
16 MATERIAL MISREPRESENTATION UNDER THIS CHAPTER COMMITS A
17 MISDEMEANOR OF THE THIRD DEGREE.
18 § 9209. EXPIRATION.
19 THIS CHAPTER SHALL CEASE TO APPLY TO EACH PARTICIPATING
20 PROFESSIONAL SPORTS ORGANIZATION 30 YEARS FOLLOWING THE
21 OCCUPANCY OR LEASE OF THE FACILITY.
22 § 9210. SCOPE.
23 THIS ISSUANCE OF GRANTS UNDER THIS CHAPTER IS SUBJECT TO
24 CHAPTER 91.
25 SECTION 2.1. THE ADDITION OF 12 PA.C.S. § 3503 IS INTENDED
26 TO BE IN PARI MATERIA WITH SECTION 103 OF THE ACT OF OCTOBER 6,
27 1998 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE
28 AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT.
29 SECTION 2.2. THE PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING
30 AUTHORITY IS AUTHORIZED TO INCUR DEBT ON BEHALF OF THE
20030S0010B1026 - 181 -
1 COMMONWEALTH IN AN AMOUNT EQUAL TO THE REMAINING DEBT AUTHORIZED
2 BY SECTION 16 OF ACT OF MARCH 1, 1988 (P.L.82, NO.16), KNOWN AS
3 THE PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY ACT, FOR
4 LOANS UNDER 12 PA.C.S. § 4321.
5 SECTION 3. REPEALS ARE AS FOLLOWS:
6 (1) SECTIONS 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7 AND 6.8
7 OF THE ACT OF AUGUST 23, 1967 (P.L.251, NO.102), KNOWN AS THE
8 ECONOMIC DEVELOPMENT FINANCING LAW, ARE REPEALED.
9 (2) THE FOLLOWING PROVISIONS OF THE ACT OF JUNE 29, 1996
10 (P.L.434, NO.67), KNOWN AS THE JOB ENHANCEMENT ACT, ARE
11 REPEALED:
12 (I) CHAPTER 3.
13 (II) CHAPTER 7.
14 (III) CHAPTER 13.
15 (IV) CHAPTER 17.
16 (2.1) CHAPTER 3 OF THE ACT OF OCTOBER 6, 1998 (P.L.705,
17 NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE
18 OPPORTUNITY EXPANSION ZONE ACT, IS REPEALED.
19 (2.2) THE FOLLOWING APPLY:
20 (I) EXCEPT AS SET FORTH IN SUBPARAGRAPH (II), THE
21 ACT OF FEBRUARY 9, 1999 (P.L.1, NO.1), KNOWN AS THE
22 CAPITAL FACILITIES DEBT ENABLING ACT, IS REPEALED.
23 (II) SECTION 301 OF THE CAPITAL FACILITIES DEBT
24 ENABLING ACT IS SAVED FROM REPEAL.
25 (3) SECTION 305(E) OF THE ACT OF JUNE 26, 2001 (P.L.755,
26 NO.77), KNOWN AS THE TOBACCO SETTLEMENT ACT, IS REPEALED.
27 (4) ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS
28 THEY ARE INCONSISTENT WITH THIS ACT.
29 SECTION 4. CHAPTERS 3, 7, 13, AND 17 OF THE ACT OF JUNE 29,
30 1996 (P.L.434, NO.67), KNOWN AS THE JOB ENHANCEMENT ACT, ARE
20030S0010B1026 - 182 -
1 CONTINUED BY THIS CODIFICATION AS FOLLOWS:
2 (1) THE ADDITION OF 12 PA.C.S. CH. 3 IS A CONTINUATION
3 OF CHAPTER 3 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING APPLY:
4 (I) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH.
5 3, ALL ACTIVITIES INITIATED UNDER CHAPTER 3 OF THE JOB
6 ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL FORCE
7 AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S. CH. 3.
8 ORDERS, REGULATIONS, RULES AND DECISIONS WHICH WERE MADE
9 UNDER CHAPTER 3 OF THE JOB ENHANCEMENT ACT AND WHICH ARE
10 IN EFFECT ON THE EFFECTIVE DATE OF SECTION 3(2)(I) OF
11 THIS ACT SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL
12 REVOKED, VACATED OR MODIFIED UNDER 12 PA.C.S. CH. 3.
13 CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING
14 AGREEMENTS ENTERED INTO UNDER CHAPTER 3 OF THE JOB
15 ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY THE
16 REPEAL OF CHAPTER 3 OF THE JOB ENHANCEMENT ACT.
17 (II) ANY DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S.
18 CH. 3 AND CHAPTER 3 OF THE JOB ENHANCEMENT ACT IS
19 INTENDED ONLY TO CONFORM TO THE STYLE OF THE PENNSYLVANIA
20 CONSOLIDATED STATUTES AND IS NOT INTENDED TO CHANGE OR
21 AFFECT THE LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
22 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 3 OF THE JOB
23 ENHANCEMENT ACT.
24 (2) THE ADDITION OF 12 PA.C.S. CH. 5 IS A CONTINUATION
25 OF CHAPTER 17 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING
26 APPLY:
27 (I) ALL ACTIVITIES INITIATED UNDER THE CHAPTER 17 OF
28 THE JOB ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL
29 FORCE AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S.
30 CH. 5. ORDERS, REGULATIONS, RULES AND DECISIONS WHICH
20030S0010B1026 - 183 -
1 WERE MADE UNDER CHAPTER 17 OF THE JOB ENHANCEMENT ACT AND
2 WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
3 3(2)(IV) OF THIS ACT SHALL REMAIN IN FULL FORCE AND
4 EFFECT UNTIL REVOKED, VACATED OR MODIFIED UNDER 12
5 PA.C.S. CH. 5. CONTRACTS, OBLIGATIONS AND COLLECTIVE
6 BARGAINING AGREEMENTS ENTERED INTO UNDER CHAPTER 17 OF
7 THE JOB ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY
8 THE REPEAL OF CHAPTER 17 OF THE JOB ENHANCEMENT ACT.
9 (II) EXCEPT AS SET FORTH IN SUBPARAGRAPH (III), ANY
10 DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S. CH. 5 AND
11 CHAPTER 17 OF THE JOB ENHANCEMENT ACT IS INTENDED ONLY TO
12 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
13 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
14 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
15 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 17 OF THE
16 JOB ENHANCEMENT ACT.
17 (III) SUBPARAGRAPH (II) DOES NOT APPLY TO THE
18 FOLLOWING:
19 (A) THE ADDITION OF 12 PA.C.S. § 502.
20 (B) THE ADDITION OF 12 PA.C.S. § 503.
21 (IV) THE MEMBERS OF SMALL BUSINESS COUNCIL IN OFFICE
22 ON THE EFFECTIVE DATE OF SECTION 3(2)(IV) OF THIS ACT
23 SHALL CONTINUE IN OFFICE UNDER THE ADDITION OF 12 PA.C.S.
24 CH. 5.
25 (3) THE ADDITION OF 12 PA.C.S. CH. 21 IS A CONTINUATION
26 OF CHAPTER 7 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING APPLY:
27 (I) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH.
28 21, ALL ACTIVITIES INITIATED UNDER THE CHAPTER 7 OF THE
29 JOB ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL
30 FORCE AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S.
20030S0010B1026 - 184 -
1 CH. 21. ORDERS, REGULATIONS, RULES AND DECISIONS WHICH
2 WERE MADE UNDER CHAPTER 7 OF THE JOB ENHANCEMENT ACT AND
3 WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
4 3(2)(II) OF THIS ACT SHALL REMAIN IN FULL FORCE AND
5 EFFECT UNTIL REVOKED, VACATED OR MODIFIED UNDER 12
6 PA.C.S. CH. 21. CONTRACTS, OBLIGATIONS AND COLLECTIVE
7 BARGAINING AGREEMENTS ENTERED INTO UNDER CHAPTER 7 OF THE
8 JOB ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY THE
9 REPEAL OF CHAPTER 7 OF THE JOB ENHANCEMENT ACT.
10 (II) EXCEPT AS SET FORTH IN SUBPARAGRAPH (III), ANY
11 DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S. CH. 21 AND
12 CHAPTER 7 OF THE JOB ENHANCEMENT ACT IS INTENDED ONLY TO
13 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
14 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
15 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
16 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 7 OF THE JOB
17 ENHANCEMENT ACT.
18 (III) SUBPARAGRAPH (II) DOES NOT APPLY TO ANY OF THE
19 FOLLOWING PROVISIONS:
20 (A) THE ADDITION OF 12 PA.C.S. § 2106(2).
21 (B) THE ADDITION OF 12 PA.C.S. § 2109(B).
22 (4) THE ADDITION OF 12 PA.C.S. CH. 23 IS A CONTINUATION
23 OF CHAPTER 13 OF THE JOB ENHANCEMENT ACT. THE FOLLOWING
24 APPLY:
25 (I) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH.
26 23, ALL ACTIVITIES INITIATED UNDER THE CHAPTER 13 OF THE
27 JOB ENHANCEMENT ACT SHALL CONTINUE AND REMAIN IN FULL
28 FORCE AND EFFECT AND MAY BE COMPLETED UNDER 12 PA.C.S.
29 CH. 23. ORDERS, REGULATIONS, RULES AND DECISIONS WHICH
30 WERE MADE UNDER CHAPTER 13 OF THE JOB ENHANCEMENT ACT AND
20030S0010B1026 - 185 -
1 WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
2 3(2)(III) OF THIS ACT SHALL REMAIN IN FULL FORCE AND
3 EFFECT UNTIL REVOKED, VACATED OR MODIFIED UNDER 12
4 PA.C.S. CH. 23. CONTRACTS, OBLIGATIONS AND COLLECTIVE
5 BARGAINING AGREEMENTS ENTERED INTO UNDER CHAPTER 13 OF
6 THE JOB ENHANCEMENT ACT ARE NOT AFFECTED NOR IMPAIRED BY
7 THE REPEAL OF CHAPTER 13 OF THE JOB ENHANCEMENT ACT.
8 (II) EXCEPT AS SET FORTH IN SUBPARAGRAPH (III), ANY
9 DIFFERENCE IN LANGUAGE BETWEEN 12 PA.C.S. CH. 23 AND
10 CHAPTER 13 OF THE JOB ENHANCEMENT ACT IS INTENDED ONLY TO
11 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
12 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
13 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
14 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 13 OF THE
15 JOB ENHANCEMENT ACT.
16 (III) SUBPARAGRAPH (II) DOES NOT APPLY TO ANY OF THE
17 FOLLOWING PROVISIONS:
18 (A) THE ADDITION OF 12 PA.C.S. § 2305(A).
19 (B) THE ADDITION OF 12 PA.C.S. § 2306(A), (B)
20 AND (E).
21 (C) THE ADDITION OF 12 PA.C.S. § 2308(A) AND
22 (B).
23 (D) THE ADDITION OF 12 PA.C.S. § 2309(B).
24 (E) THE ADDITION OF 12 PA.C.S. § 2310(B).
25 (IV) IN CONTINUATION OF SECTION 1302 OF THE JOB
26 ENHANCEMENT ACT, ALL FUNDS, ACCOUNTS, ASSETS,
27 ENCUMBRANCES AND LIABILITIES LOCATED IN OR ASSOCIATED
28 WITH THE AIR QUALITY IMPROVEMENT FUND, THE STORAGE TANK
29 LOAN FUND AND THE RECYCLING INCENTIVE DEVELOPMENT ACCOUNT
30 SHALL BE TRANSFERRED TO THE POLLUTION PREVENTION
20030S0010B1026 - 186 -
1 ASSISTANCE ACCOUNT AND SHALL BE ADMINISTERED IN
2 ACCORDANCE WITH 12 PA.C.S. §§ 2304 AND 2309. THE
3 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT SHALL
4 REPORT ANNUALLY TO THE DEPARTMENT OF ENVIRONMENTAL
5 PROTECTION ON THE STATUS OF THE POLLUTION PREVENTION
6 ASSISTANCE ACCOUNT AND THE LOANS MADE UNDER 12 PA.C.S. §
7 2309.
8 (V) IN CONTINUATION OF SECTION 1309(A) OF THE JOB
9 ENHANCEMENT ACT, AS OF JULY 1, 1997, ALL FUNDS, ACCOUNTS,
10 ASSETS, ENCUMBRANCES AND LIABILITIES LOCATED IN OR
11 ASSOCIATED WITH THE CAPITAL LOAN FUND SHALL BE
12 TRANSFERRED TO THE SMALL BUSINESS FIRST FUND AND SHALL
13 THEREAFTER BE ADMINISTERED IN ACCORDANCE WITH 12 PA.C.S.
14 CH. 23.
15 (VI) IN CONTINUATION OF SECTION 1309(B) OF THE JOB
16 ENHANCEMENT ACT, ANNUALLY ON JULY 1, THE STATE TREASURER
17 MAY TRANSFER, UPON APPROVAL BY THE GOVERNOR, UP TO
18 $2,000,000 FROM THE HAZARDOUS SITES CLEANUP FUND INTO THE
19 POLLUTION PREVENTION ASSISTANCE ACCOUNT. THIS TRANSFER
20 SHALL BE IN ADDITION TO OTHER APPROPRIATIONS, FEDERAL
21 FUNDING AND PRIVATE CONTRIBUTIONS RECEIVED BY THE
22 ACCOUNT.
23 SECTION 4.1. THE ADDITION OF 12 PA.C.S. CH. 35 IS A
24 CONTINUATION OF CHAPTER 3 OF THE ACT OF OCTOBER 6, 1998
25 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE AND
26 KEYSTONE OPPORTUNITY EXPANSION ZONE ACT. THE FOLLOWING APPLY:
27 (1) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH. 35,
28 ALL ACTIVITIES INITIATED UNDER CHAPTER 3 OF THE KEYSTONE
29 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT
30 SHALL CONTINUE AND REMAIN IN FULL FORCE AND EFFECT AND MAY BE
20030S0010B1026 - 187 -
1 COMPLETED UNDER 12 PA.C.S. CH. 35. ORDERS, REGULATIONS, RULES
2 AND DECISIONS WHICH WERE MADE UNDER CHAPTER 3 OF THE KEYSTONE
3 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT
4 AND WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
5 3(2.1) OF THIS ACT SHALL REMAIN IN FULL FORCE AND EFFECT
6 UNTIL REVOKED, VACATED OR MODIFIED UNDER 12 PA.C.S. CH. 35.
7 CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING AGREEMENTS
8 ENTERED INTO UNDER CHAPTER 3 OF THE KEYSTONE OPPORTUNITY ZONE
9 AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT ARE NOT AFFECTED
10 NOR IMPAIRED BY THE REPEAL OF CHAPTER 3 OF THE KEYSTONE
11 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT.
12 (2) EXCEPT AS SET FORTH IN PARAGRAPH (3), ANY DIFFERENCE
13 IN LANGUAGE BETWEEN 12 PA.C.S. CH. 35 AND CHAPTER 3 OF THE
14 KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION
15 ZONE ACT IS INTENDED ONLY TO CONFORM TO THE STYLE OF THE
16 PENNSYLVANIA CONSOLIDATED STATUTES AND IS NOT INTENDED TO
17 CHANGE OR AFFECT THE LEGISLATIVE INTENT, JUDICIAL
18 CONSTRUCTION OR ADMINISTRATION AND IMPLEMENTATION OF CHAPTER
19 3 OF THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY
20 EXPANSION ZONE ACT.
21 (3) PARAGRAPH (2) DOES NOT APPLY TO THE FOLLOWING:
22 (I) THE ADDITION OF 12 PA.C.S. § 3512(E).
23 (II) THE ADDITION OF 12 PA.C.S. § 3513(C).
24 (III) THE ADDITION OF 12 PA.C.S. § 3514(C).
25 (IV) THE ADDITION OF 12 PA.C.S. § 3515(A) AND (C).
26 SECTION 5. SECTIONS 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7 AND
27 6.8 OF THE ACT OF AUGUST 23, 1967 (P.L.251, NO.102), KNOWN AS
28 THE ECONOMIC DEVELOPMENT FINANCING LAW, ARE CONTINUED BY THE
29 ADDITION OF 12 PA.C.S. CH. 43. THE FOLLOWING APPLY:
30 (1) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH. 43,
20030S0010B1026 - 188 -
1 ALL ACTIVITIES INITIATED UNDER SECTIONS 6.1 THROUGH 6.8 OF
2 THE ECONOMIC DEVELOPMENT FINANCING LAW SHALL CONTINUE AND
3 REMAIN IN FULL FORCE AND EFFECT AND MAY BE COMPLETED UNDER 12
4 PA.C.S. CH. 43. ORDERS, REGULATIONS, RULES AND DECISIONS
5 WHICH WERE MADE UNDER SECTIONS 6.1 THROUGH 6.8 OF THE
6 ECONOMIC DEVELOPMENT FINANCING LAW AND WHICH ARE IN EFFECT ON
7 THE EFFECTIVE DATE OF SECTION 3(1) OF THIS ACT SHALL REMAIN
8 IN FULL FORCE AND EFFECT UNTIL REVOKED, VACATED OR MODIFIED
9 UNDER 12 PA.C.S. CH. 43. CONTRACTS, OBLIGATIONS, COLLECTIVE
10 BARGAINING AGREEMENTS AND OUTSTANDING BONDS ENTERED INTO
11 UNDER SECTIONS 6.1 THROUGH 6.8 OF THE ECONOMIC DEVELOPMENT
12 FINANCING LAW ARE NOT AFFECTED NOR IMPAIRED BY THE REPEAL OF
13 SECTIONS 6.1 THROUGH 6.8 OF THE ECONOMIC DEVELOPMENT
14 FINANCING LAW. THE PROVISIONS OF 12 PA.C.S. CH. 43 SHALL NOT
15 IN ANY WAY IMPAIR OR IN ANY MANNER AFFECT THE RIGHTS AND
16 REMEDIES OF OBLIGEES OF THE PENNSYLVANIA ECONOMIC DEVELOPMENT
17 AUTHORITY. NOTWITHSTANDING ANY OTHER PROVISION OF 12 PA.C.S.
18 CH. 43, ALL SUCH RIGHTS AND REMEDIES SHALL BE PRESERVED BY 12
19 PA.C.S. CH. 43 AND SHALL BE AND SHALL REMAIN VALID, BINDING
20 AND ENFORCEABLE IN ALL RESPECTS. AS USED IN THIS PARAGRAPH,
21 "OBLIGEES OF THE PENNSYLVANIA ECONOMIC DEVELOPMENT AUTHORITY"
22 SHALL MEAN THE HOLDERS OF ANY NOTES, BONDS, REFUNDING NOTES
23 AND BONDS, INTERIM CERTIFICATES, DEBENTURES AND OTHER
24 EVIDENCES OF INDEBTEDNESS, OBLIGEES OF CONTRACTS OR OTHER
25 OBLIGATIONS OF THE PENNSYLVANIA ECONOMIC DEVELOPMENT
26 AUTHORITY ESTABLISHED UNDER THE PROVISIONS OF SECTIONS 6.1
27 THROUGH 6.8 OF THE ECONOMIC DEVELOPMENT FINANCE LAW.
28 (2) EXCEPT AS SET FORTH IN PARAGRAPH (3), ANY DIFFERENCE
29 IN LANGUAGE BETWEEN 12 PA.C.S. CH. 43 AND SECTIONS 6.1
30 THROUGH 6.8 OF THE ECONOMIC DEVELOPMENT FINANCING LAW IS
20030S0010B1026 - 189 -
1 INTENDED ONLY TO CONFORM TO THE STYLE OF THE PENNSYLVANIA
2 CONSOLIDATED STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT
3 THE LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
4 ADMINISTRATION AND IMPLEMENTATION OF SECTIONS 6.1 THROUGH 6.8
5 OF THE ECONOMIC DEVELOPMENT FINANCING LAW.
6 (3) PARAGRAPH (2) DOES NOT APPLY TO ANY OF THE FOLLOWING
7 PROVISIONS:
8 (I) THE ADDITION OF 12 PA.C.S. § 4303(C).
9 (II) THE ADDITION OF 12 PA.C.S. § 4305(B) AND (C).
10 (III) THE ADDITION OF 12 PA.C.S. § 4320.
11 (IV) THE ADDITION OF 12 PA.C.S. § 4321.
12 (V) THE ADDITION OF 12 PA.C.S. § 4322.
13 (VI) THE ADDITION OF 12 PA.C.S. § 4323.
14 (VII) THE ADDITION OF 12 PA.C.S. § 4324.
15 (VIII) THE ADDITION OF 12 PA.C.S. § 4325.
16 (4) THE MEMBERS OF BOARD OF THE PENNSYLVANIA ECONOMIC
17 DEVELOPMENT FINANCING AUTHORITY IN OFFICE ON THE EFFECTIVE
18 DATE OF SECTION 3(1) OF THIS ACT SHALL CONTINUE IN OFFICE
19 UNDER THE ADDITION OF 12 PA.C.S. CH. 43.
20 SECTION 5.1. THE ADDITION OF 72 PA.C.S. CH. 91 IS A
21 CONTINUATION OF CHAPTER 3 OF THE ACT OF FEBRUARY 9, 1999 (P.L.1,
22 NO.1), KNOWN AS THE CAPITAL FACILITIES DEBT ENABLING ACT. THE
23 FOLLOWING APPLY:
24 (1) EXCEPT AS OTHERWISE PROVIDED IN 72 PA.C.S. CH. 91,
25 ALL ACTIVITIES INITIATED UNDER CHAPTER 3 OF THE CAPITAL
26 FACILITIES DEBT ENABLING ACT SHALL CONTINUE AND REMAIN IN
27 FULL FORCE AND EFFECT AND MAY BE COMPLETED UNDER 72 PA.C.S.
28 CH. 91.
29 (2) ORDERS, REGULATIONS, RULES AND DECISIONS WHICH WERE
30 MADE UNDER CHAPTER 3 OF THE CAPITAL FACILITIES DEBT ENABLING
20030S0010B1026 - 190 -
1 ACT AND WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
2 3(2.2) OF THIS ACT SHALL REMAIN IN FULL FORCE AND EFFECT
3 UNTIL REVOKED, VACATED OR MODIFIED UNDER 72 PA.C.S. CH. 91.
4 (3) CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING
5 AGREEMENTS ENTERED INTO UNDER CHAPTER 3 OF THE CAPITAL
6 FACILITIES DEBT ENABLING ACT ARE NOT AFFECTED NOR IMPAIRED BY
7 THE REPEAL OF THE CAPITAL FACILITIES DEBT ENABLING ACT.
8 (4) EXCEPT AS SET FORTH IN PARAGRAPH (5), ANY DIFFERENCE
9 IN LANGUAGE BETWEEN 72 PA.C.S. CH. 91 AND CHAPTER 3 OF THE
10 CAPITAL FACILITIES DEBT ENABLING ACT IS INTENDED ONLY TO
11 CONFORM TO THE STYLE OF THE PENNSYLVANIA CONSOLIDATED
12 STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT THE
13 LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR ADMINISTRATION
14 AND IMPLEMENTATION OF CHAPTER 3 OF THE CAPITAL FACILITIES
15 DEBT ENABLING ACT.
16 (5) PARAGRAPH (4) DOES NOT APPLY TO ANY OF THE FOLLOWING
17 PROVISIONS:
18 (I) THE ADDITION OF 72 PA.C.S. § 9102.
19 (II) THE ADDITION OF 72 PA.C.S. § 9103(B)(1)(II).
20 (III) THE ADDITION OF 72 PA.C.S. § 9107(C)(5).
21 (IV) THE ADDITION OF 72 PA.C.S. § 9113.
22 (V) THE ADDITION OF 72 PA.C.S. § 9117.
23 (VI) THE ADDITION OF 72 PA.C.S. § 9118(A), (B), (C),
24 (D), (G), (H) AND (J).
25 (VII) THE ADDITION OF 72 PA.C.S. § 9119.
26 (VIII) THE ADDITION OF 72 PA.C.S. § 9120.
27 SECTION 5.2. THE ADDITION OF 72 PA.C.S. CH. 92 IS A
28 CONTINUATION OF CHAPTER 5 OF THE ACT OF FEBRUARY 9, 1999 (P.L.1,
29 NO.1), KNOWN AS THE CAPITAL FACILITIES DEBT ENABLING ACT. THE
30 FOLLOWING APPLY:
20030S0010B1026 - 191 -
1 (1) EXCEPT AS OTHERWISE PROVIDED IN 72 PA.C.S. CH. 92,
2 ALL ACTIVITIES INITIATED UNDER CHAPTER 5 OF THE CAPITAL
3 FACILITIES DEBT ENABLING ACT SHALL CONTINUE AND REMAIN IN
4 FULL FORCE AND EFFECT AND MAY BE COMPLETED UNDER 72 PA.C.S.
5 CH. 92.
6 (2) ORDERS, REGULATIONS, RULES AND DECISIONS WHICH WERE
7 MADE UNDER CHAPTER 5 OF THE CAPITAL FACILITIES DEBT ENABLING
8 ACT AND WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
9 3(2.2) OF THIS ACT SHALL REMAIN IN FULL FORCE AND EFFECT
10 UNTIL REVOKED, VACATED OR MODIFIED UNDER 72 PA.C.S. CH. 92.
11 (3) CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING
12 AGREEMENTS ENTERED INTO UNDER CHAPTER 5 OF THE CAPITAL
13 FACILITIES DEBT ENABLING ACT ARE NOT AFFECTED NOR IMPAIRED BY
14 THE REPEAL OF CHAPTER 5 OF THE CAPITAL FACILITIES DEBT
15 ENABLING ACT.
16 (4) ANY DIFFERENCE IN LANGUAGE BETWEEN 72 PA.C.S. CH. 92
17 AND CHAPTER 5 OF THE CAPITAL FACILITIES DEBT ENABLING ACT IS
18 INTENDED ONLY TO CONFORM TO THE STYLE OF THE PENNSYLVANIA
19 CONSOLIDATED STATUTES AND IS NOT INTENDED TO CHANGE OR AFFECT
20 THE LEGISLATIVE INTENT, JUDICIAL CONSTRUCTION OR
21 ADMINISTRATION AND IMPLEMENTATION OF CHAPTER 5 OF THE CAPITAL
22 FACILITIES DEBT ENABLING ACT.
23 SECTION 6. THE FOLLOWING APPLY TO THE TOBACCO SETTLEMENT
24 INVESTMENT BOARD:
25 (1) THE BOARD IS AUTHORIZED TO INVEST, IN ADDITION TO
26 ANY AMOUNT INVESTED ON THE EFFECTIVE DATE OF THIS SECTION IN
27 VENTURE CAPITAL, $30,000,000 IN PRIMARY GROWTH STAGE
28 INVESTMENTS:
29 (I) IN WHICH AT LEAST 70% OF THE INVESTMENTS WILL BE
30 MADE IN COMPANIES LOCATED PRIMARILY IN THIS COMMONWEALTH
20030S0010B1026 - 192 -
1 OR IN COMPANIES WILLING TO RELOCATE SIGNIFICANT BUSINESS
2 OPERATIONS TO THIS COMMONWEALTH; AND
3 (II) WHICH ARE EQUITABLY DISTRIBUTED GEOGRAPHICALLY
4 THROUGHOUT THIS COMMONWEALTH.
5 (2) PRIMARY GROWTH STAGE INVESTMENTS MUST COMPLY WITH
6 THE REQUIREMENTS OF SECTION 305(A) AND (G) OF THE ACT OF JUNE
7 26, 2001 (P.L.755, NO.77), KNOWN AS THE TOBACCO SETTLEMENT
8 ACT.
9 SECTION 7. THE FOLLOWING SHALL APPLY:
10 (1) PURSUANT TO THE PROVISIONS OF SECTION 7(A)(3) OF
11 ARTICLE VIII OF THE CONSTITUTION OF PENNSYLVANIA, THE
12 QUESTION OF INCURRING INDEBTEDNESS OF $250,000,000 FOR GRANTS
13 AND LOANS FOR THE ACQUISITION, REPAIR, CONSTRUCTION,
14 RECONSTRUCTION, REHABILITATION, EXTENSION, EXPANSION AND
15 IMPROVEMENT OF WATER AND WASTEWATER INFRASTRUCTURE, INCLUDING
16 WATER SUPPLY AND SEWAGE TREATMENT SYSTEMS, SUBJECT TO
17 IMPLEMENTATION THROUGH 12 PA.C.S. § 4321, SHALL BE SUBMITTED
18 TO THE ELECTORS AT THE NEXT PRIMARY ELECTION FOLLOWING THE
19 EFFECTIVE DATE OF THIS SECTION.
20 (2) THE SECRETARY OF THE COMMONWEALTH SHALL FORTHWITH
21 CERTIFY THE QUESTION TO THE COUNTY BOARDS OF ELECTIONS.
22 (3) THE QUESTION SHALL BE IN SUBSTANTIALLY THE FOLLOWING
23 FORM:
24 DO YOU FAVOR THE INCURRING OF INDEBTEDNESS BY THE
25 COMMONWEALTH IN THE AMOUNT OF $250,000,000 FOR USE AS
26 GRANTS AND LOANS FOR CONSTRUCTION, EXPANSION AND
27 IMPROVEMENT OF WATER AND WASTEWATER INFRASTRUCTURE,
28 INCLUDING WATER SUPPLY AND SEWAGE TREATMENT SYSTEMS?
29 SECTION 8. APPROPRIATIONS ARE AS FOLLOWS:
30 (1) THE SUM OF $10,000,000, OR AS MUCH THEREOF AS MAY BE
20030S0010B1026 - 193 -
1 NECESSARY, IS HEREBY APPROPRIATED TO THE ECONOMIC ENHANCEMENT
2 FUND FOR THE FISCAL YEAR JULY 1, 2003, TO JUNE 30, 2004, TO
3 CARRY OUT THE PROVISIONS OF 12 PA.C.S. § 4324.
4 (2) THE SUM OF $2,000,000, OR AS MUCH THEREOF AS MAY BE
5 NECESSARY, IS HEREBY APPROPRIATED TO THE DEPARTMENT OF
6 COMMUNITY AND ECONOMIC DEVELOPMENT FOR THE FISCAL YEAR JULY
7 1, 2003, TO JUNE 30, 2004, FOR THE FOLLOWING:
8 (I) FOR THE BASE RETENTION AND CONVERSION
9 PENNSYLVANIA ACTION COMMITTEE TO DEVELOP A STATEWIDE
10 STRATEGY.
11 (II) FOR MATCHING GRANTS FOR ECONOMIC IMPACT
12 STUDIES, ENVIRONMENTAL IMPACT STUDIES, ENCROACHMENT
13 STUDIES, COMMUNITY AND REGIONAL INTERACTION WITH MILITARY
14 BASES, INFRASTRUCTURE NEEDS AT MILITARY BASES AND JOB
15 TRAINING NEEDS AT OR NEAR MILITARY BASES. GRANTS UNDER
16 THIS SUBPARAGRAPH:
17 (A) SHALL BE AWARDED BY THE BASE RETENTION AND
18 CONVERSION PENNSYLVANIA ACTION COMMITTEE;
19 (B) REQUIRE A 25% LOCAL MATCH; AND
20 (C) ARE LIMITED TO LESS THAN $75,000 PER
21 MILITARY BASE.
22 SECTION 8.1. THE ADDITION OF 12 PA.C.S. § 3513(C) SHALL
23 APPLY RETROACTIVELY TO MAY 31, 2003.
24 SECTION 9. THIS ACT SHALL TAKE EFFECT JULY 1, 2003, OR
25 IMMEDIATELY, WHICHEVER IS LATER.
C20L14RLE/20030S0010B1026 - 194 -