THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY YUDICHAK, FONTANA, ERICKSON, SOLOBAY, COSTA, WAUGH, BREWSTER, WASHINGTON AND BROWNE, FEBRUARY 28, 2011

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, FEBRUARY 28, 2011  

AN ACT

Establishing the Regional Efficiency Development Incentive

Program; providing for powers and duties of the Department of

Community and Economic Development; and establishing the

Regional Efficiency Development Incentive Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Regional

Efficiency Development Incentive Act.

Section 2.  Declaration of policy.

The General Assembly finds and declares as follows:

(1)  One of the most effective ways to reduce property

taxes is through the regionalization, consolidation or

sharing of services by political subdivisions.

(2)  Before decisions are made by local officials

concerning which services to regionalize or share and with

which partners to enter into shared services agreements,

regional service or consolidation opportunities need to be

studied and evaluated.

(3)  It is a valid public purpose to establish a program

to provide State aid in the form of loans and grants to

political subdivisions to assist them in making decisions

concerning the most efficient ways to regionalize or share

various services and to provide funding for one-time costs

associated with reaching shared services, regional service or

consolidation agreements for the benefit of taxpayers.

Section 3.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department."  The Department of Community and Economic

Development of the Commonwealth.

"Political subdivision."  Any county, city, borough,

incorporated town, township, school district, vocational school

district and county institution district.

"Regional Efficiency Development Incentive Program" or "REDI

Program."  The program established under section 4.

"Regional service agreement."  An agreement entered into by a

political subdivision in accordance with 53 Pa.C.S. Pt. III

Subpt. D (relating to area government and intergovernmental

cooperation) or any other agreement between political

subdivisions that is permitted by law.

"Secretary."  The Secretary of Community and Economic

Development of the Commonwealth.

Section 4.  Regional Efficiency Development Incentive Program.

(a)  Establishment.--The Regional Efficiency Development

Incentive Program is established in the department.

(b)  Eligibility.--A political subdivision that plans to

study or implement a regional service agreement may apply to the

department for grants or loans to study regional service or

consolidation opportunities and to fund one-time start-up costs

of regional or consolidated services.

(c)  Consultation.--The secretary shall consult with the

Secretary of Education with regard to school districts and

vocational school districts in the administration of the REDI

Program.

(d)  Application guidelines.--The department shall develop

and provide guidelines and procedures for the submission of REDI

Program grant and loan applications.

(e)  Funding for studies.--In providing funding for regional

service agreement studies, the department:

(1)  May require local matching funds, as determined by

the department, for a study if the department finds that the

political subdivision has the financial resources to provide

matching funds.

(2)  May not require local matching funds for

consolidation studies that are permitted by law.

(f)  Funding for start-up costs.--The following shall apply:

(1)  A political subdivision may apply for financial

assistance for the one-time start-up costs necessary to

implement a regional service agreement. Costs that may be

financed through the issuance of debt or capital lease

agreements shall be excluded from this program.

(2)  The department may set limits on aid awards and

negotiate the amount, payment schedule and other terms of the

grant or loan agreements to ensure that the implementation of

a regional service agreement is cost effective and in the

public interest.

(g)  Technical support.--The department may provide technical

support to assist political subdivisions in applying for grants

or loans for studying regional service agreements.

Section 5.  Regional Efficiency Development Incentive Fund.

The Regional Efficiency Development Incentive Fund is

established within the State Treasury as a nonlapsing revolving

account which shall receive moneys as may be credited to it, the

repayment of loans made from the fund and any other moneys as

may be appropriated to the fund from time to time. Moneys in the

fund are hereby appropriated on a continuing basis to the

department for the purposes of this act.

Section 6.  Regulations.

The department shall promulgate rules and regulations

necessary to effectuate the purposes of the REDI Program.

Section 7.  Effective date.

This act shall take effect in 60 days.