PRIOR PRINTER'S NOS. 3712, 3784 PRINTER'S NO. 3834
No. 2503 Session of 2008
INTRODUCED BY GIBBONS, CALTAGIRONE, CAPPELLI, EACHUS, FRANKEL, GEORGE, HARKINS, McILHATTAN, SAINATO, SURRA, BIANCUCCI, YUDICHAK, KULA, SIPTROTH, J. WHITE, MURT, THOMAS AND K. SMITH, MAY 7, 2008
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 2, 2008
AN ACT 1 Amending Title 12 (Commerce and Trade) of the Pennsylvania 2 Consolidated Statutes, further providing for definitions; and 3 providing for loans from the Pennsylvania Industrial 4 Development Authority. 5 The General Assembly of the Commonwealth of Pennsylvania 6 hereby enacts as follows: 7 Section 1. Sections 2902, 2903, 2904 and 2905(a) of Title 12 8 of the Pennsylvania Consolidated Statutes are amended to read: 9 § 2902. Definitions. 10 The following words and phrases when used in this chapter 11 shall have the meanings given to them in this section unless the 12 context clearly indicates otherwise: 13 "Authority." The Pennsylvania Industrial Development 14 Authority established under the act of May 17, 1956 (1955 15 P.L.1609, No.537), known as the Pennsylvania Industrial 16 Development Authority Act. 17 "Business enterprise." A for-profit corporation, partnership
1 or proprietorship. The term includes a medical facility. 2 "Farm commodity." Any Pennsylvania-grown agricultural, 3 horticultural, aquacultural, vegetable, fruit and floricultural 4 product of the soil, livestock and meats, wools, hides, furs, 5 poultry, eggs, dairy products, nuts, mushrooms, honey products 6 and forest products. 7 "Fund." The Machinery and Equipment Loan Fund created and 8 established by this chapter. 9 "Medical facility." An entity licensed as a hospital under 10 the act of June 13, 1967 (P.L.31, No.21), known as the Public 11 Welfare Code, or the act of July 19, 1979 (P.L.130, No.48), 12 known as the Health Care Facilities Act. 13 "Normal agricultural operation." The term shall have the 14 same meaning as given to it in section 2 of the act of June 10, 15 1982 (P.L.454, No.133), entitled "An act protecting agricultural 16 operations from nuisance suits and ordinances under certain 17 circumstances." 18 "PIDA Act." The act of May 17, 1956 (1955 P.L.1609, No.537), 19 known as the Pennsylvania Industrial Development Authority Act. 20 "Production agriculture." The management and use of a normal 21 agricultural operation for the production of a farm commodity. 22 § 2903. Establishment. 23 There is established within the department a program to be 24 known as the Machinery and Equipment Loan Program. [The] Except 25 as otherwise provided in this chapter, the program shall be 26 administered by the department and provide loans to business 27 enterprises for machinery and equipment. 28 § 2904. Machinery and Equipment Loan Fund. 29 (a) Creation.--There is created a special account in the 30 Treasury Department, to be known as the Machinery and Equipment 20080H2503B3834 - 2 -
1 Loan Fund, to which shall be credited all program appropriations 2 made by the General Assembly, all [proceeds from loan <-- 3 repayments] LOAN REPAYMENTS FROM LOANS made through June 30, <-- 4 2008, and any and all other deposits, payments or contributions 5 from any other source made available to the fund. Loan 6 repayments from loans made after June 30, 2008, shall be paid to 7 the authority. The fund shall operate as a revolving fund 8 whereby all appropriations, payments and interest made thereto 9 may be applied and reapplied to the purposes of this chapter. 10 (b) Credits to fund.--All appropriations, deposits and 11 contributions made to the fund shall be immediately credited in 12 full to the fund, and earnings on the moneys held in the fund 13 shall also be credited to the fund for the purposes of this 14 chapter. 15 (c) Transfers to the authority.--At the beginning of each 16 fiscal year commencing with the fiscal year beginning July 1, 17 2008, a portion of the unencumbered moneys in the fund, as 18 determined by the secretary, shall be transferred to the 19 authority. The authority may use such funds for any purpose 20 authorized under law. 21 § 2905. Eligibility for loans; terms and conditions. 22 (a) Loans; general rules.--The secretary may make advances 23 from the fund, subject to the terms, conditions and restrictions 24 provided under this chapter, for the purpose of making loans to 25 business enterprises involved in industrial processes, mining, 26 manufacturing, production agriculture, information technology, 27 biotechnology, service as a medical facility or other industrial 28 or technology sectors, as defined by the department, to acquire 29 and install new machinery and equipment or upgrade existing 30 machinery and equipment, including the acquisition, application 20080H2503B3834 - 3 -
1 and utilization of computer hardware and software. 2 (1) All loans shall be subject to all of the following 3 conditions: 4 (i) Be made to eligible business enterprises under 5 the provisions of this chapter. 6 (ii) Have a maximum loan ceiling of $5,000,000 or 7 50% of the cost of the project, whichever is less. 8 (iii) Be limited to the purchase and installation of 9 new equipment and machinery or the upgrade of existing 10 machinery and equipment. This subparagraph includes the 11 acquisition, application and utilization of computer 12 hardware and software. 13 (iv) Be limited to projects that demonstrate [the 14 creation or retention of one job for every $25,000 15 received from the fund] job creation or retention at a 16 rate determined by the department. This subparagraph does 17 not apply to loans made to business enterprises involved 18 in production agriculture or to loans made to medical 19 facilities. 20 (v) Have an interest rate which shall be established 21 by the secretary. 22 (vi) Have a term of [not in excess of] ten years or 23 less. 24 (2) For loans to medical facilities, loan funds may be 25 used only to finance the acquisition, installation and 26 utilization of machinery and equipment, including computer 27 hardware and software components, to be used in the 28 prescribing and dispensing of medication for medical facility 29 patients. 30 * * * 20080H2503B3834 - 4 -
1 Section 2. Title 12 is amended by adding a section to read: 2 § 2913. Loans from authority. 3 (a) Review of application.--Prior to the review and 4 investigation of an application submitted under section 2906 5 (relating to application and administration), the secretary may 6 forward the application to the authority to be reviewed and 7 investigated by the authority for a possible loan from the 8 authority in lieu of a loan from the department under this 9 chapter. 10 (b) Loans from authority.--In addition to the powers of the 11 authority under the PIDA Act, the authority is authorized to 12 make loans meeting the eligibility and other requirements of 13 this chapter. 14 (c) Minimum loan amount.-- 15 (1) Except as set forth in paragraph (2), no less than 16 25% of the amount loaned by the authority in a single fiscal 17 year must meet the requirements of section 2905 (relating to 18 eligibility for loans; terms and conditions). 19 (2) If the total of applications under this chapter are 20 eligible for less than 25% of the amount loaned by the 21 authority in a single fiscal year, unused funds may be loaned 22 by the authority in accordance with the PIDA Act. 23 (d) Requirements.--A recipient of any loan made under this 24 section shall be subject to the requirements of this chapter as 25 though the secretary made the advances for the loan under 26 section 2905(a). 27 (e) Repayment.--Repayments of loans made by the authority 28 with funds transferred to the authority under section 2904(c) 29 (relating to Machinery and Equipment Loan Fund) shall be made 30 directly to the authority. 20080H2503B3834 - 5 -
1 Section 3. This act shall take effect immediately. C14L12RLE/20080H2503B3834 - 6 -