THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WASHINGTON, HUGHES, FERLO, FONTANA, BREWSTER, STACK, YUDICHAK, FARNESE, COSTA, BLAKE, BOSCOLA AND KITCHEN, MAY 3, 2011

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, MAY 3, 2011  

AN ACT

Relating to taxpayer return on investment.

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 Taxpayer

Return on Investment Act.

Section 2.  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:

"Business."  A natural person, corporation, partnership,

limited liability company, business trust, other association or

any other legal entity engaged in a business for profit and

authorized to do business in this Commonwealth.

"Department."  The Department of Community and Economic

Development of the Commonwealth.

"Financial assistance."  Any grant awarded by the Department

of Community and Economic Development through a participating

program to a recipient in accordance with law.

"Participating program."  The following programs administered

by the Department of Community and Economic Development:

(1)  12 Pa.C.S. Ch. 21 (relating to opportunity grants).

(2)  12 Pa.C.S. Ch. 34 (relating to infrastructure and

facilities improvement program).

(3)  The Customized Job Training Program under Chapter 29

of the act of June 29, 1996 (P.L.434, No.67), known as the

Job Enhancement Act.

"Recipient."  A business that has received financial

assistance from a participating program. The term includes any

business that has acquired, merged, purchased or is otherwise

operating the business of the original recipient.

Section 3.  Repayment of financial assistance authorized.

The department may require a recipient of financial

assistance to repay a portion, or the total amount, of financial

assistance received from a participating program under this act.

Section 4.  Repayment schedule and formula.

(a)  Duties of department.--The department shall have the

following powers and duties:

(1)  Four years after financial assistance is disbursed

by the department to a recipient through a participating

program, the department shall notify the Department of

Revenue and the recipient, in writing, whether the department

recommends that the recipient repay all or a portion of the

financial assistance.

(2)  The recommendation under paragraph (1) shall be

based on profitability and success of the recipient after

receipt of the grant. In making the recommendation, the

department shall consider:

(i)  The earnings history of the recipient in the

year prior to the awarding of the grant.

(ii)  The earnings history of the recipient since it

received the grant.

(iii)  The size of the gross sales, net sales and

earnings of the recipient.

(3)  The written notice under paragraph (1) shall

include:

(i)  The date or dates of the grant disbursement.

(ii)  The intended purpose of the grant.

(iii)  A copy of the final application submitted by

the recipient in applying for the grant.

(iv)  A recommendation as to the whether the entire

amount, a portion or none of the grant should be repaid

by the recipient.

(b)  Duties of Department of Revenue.--The Department of

Revenue shall have the following powers and duties:

(1)  Upon receipt of written notice from the department

under subsection (a)(1), to determine a financial assistance

repayment schedule for the recipient. The Department of

Revenue shall use tax returns filed by the recipient in the

immediately preceding five tax years to determine the grant

repayment schedule and amount. The initial repayment schedule

shall be reported to the recipient and the department within

60 days after receiving the recommendation from the

department. The department or recipient may suggest in

writing a different payment schedule within ten days of

receipt of the payment schedule.

(2)  To establish a schedule governing repayment of all

financial assistance awarded to recipients through

participating programs. The department shall establish a

repayment schedule that, at a minimum:

(i)  Requires recipients to repay a portion or the

full amount of any financial assistance received from a

participating program upon completion of the project for

which the financial assistance was received.

(ii)  Sets forth due dates for repayments to the

department, which shall be on a quarterly, semiannual or

annual basis.

(iii)  Results in full repayment of the financial

assistance awarded not earlier than five years nor later

than ten years from the date the project is completed.

(3)  To utilize collection powers granted to it under

Article II of the act of March 4, 1971 (P.L.6, No.2), known

as the Tax Reform Code of 1971, to collect financial

assistance repayments that are delinquent under the repayment

schedule.

Section 5.  Regulations.

The department, in consultation with the Department of

Revenue, shall promulgate regulations implementing the

provisions of this act.

Section 10.  Effective date.

This act shall take effect in 60 days.