AN ACT

 

1Establishing the Regional Efficiency Development Incentive
2Program; providing for powers and duties of the Department of
3Community and Economic Development; and establishing the
4Regional Efficiency Development Incentive Fund.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1.  Short title.

8This act shall be known and may be cited as the Regional
9Efficiency Development Incentive Act.

10Section 2.  Declaration of policy.

11The General Assembly finds and declares as follows:

12(1)  One of the most effective ways to reduce property
13taxes is through the regionalization, consolidation or
14sharing of services by political subdivisions.

15(2)  Before decisions are made by local officials
16concerning which services to regionalize or share and with
17which partners to enter into shared services agreements,
18regional service or consolidation opportunities need to be

1studied and evaluated.

2(3)  It is a valid public purpose to establish a program
3to provide State aid in the form of loans and grants to
4political subdivisions to assist them in making decisions
5concerning the most efficient ways to regionalize or share
6various services and to provide funding for one-time costs
7associated with reaching shared services, regional service or
8consolidation agreements for the benefit of taxpayers.

9Section 3.  Definitions.

10The following words and phrases when used in this act shall
11have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13"Department."  The Department of Community and Economic 
14Development of the Commonwealth.

15"Political subdivision."  Any county, city, borough, 
16incorporated town, township, school district, vocational school 
17district and county institution district.

18"Regional Efficiency Development Incentive Program" or "REDI 
19Program."  The program established under section 4.

20"Regional service agreement."  An agreement entered into by a 
21political subdivision in accordance with 53 Pa.C.S. Pt. III 
22Subpt. D (relating to area government and intergovernmental 
23cooperation) or any other agreement between political 
24subdivisions that is permitted by law.

25"Secretary."  The Secretary of Community and Economic 
26Development of the Commonwealth.

27Section 4.  Regional Efficiency Development Incentive Program.

28(a)  Establishment.--The Regional Efficiency Development
29Incentive Program is established in the department.

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

1study or implement a regional service agreement may apply to the
2department for grants or loans to study regional service or
3consolidation opportunities and to fund one-time start-up costs
4of regional or consolidated services.

5(c)  Consultation.--The secretary shall consult with the
6Secretary of Education with regard to school districts and
7vocational school districts in the administration of the REDI
8Program.

9(d)  Application guidelines.--The department shall develop
10and provide guidelines and procedures for the submission of REDI
11Program grant and loan applications.

12(e)  Funding for studies.--In providing funding for regional
13service agreement studies, the department:

14(1)  May require local matching funds, as determined by
15the department, for a study if the department finds that the
16political subdivision has the financial resources to provide
17matching funds.

18(2)  May not require local matching funds for
19consolidation studies that are permitted by law.

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

21(1)  A political subdivision may apply for financial
22assistance for the one-time start-up costs necessary to
23implement a regional service agreement. Costs that may be
24financed through the issuance of debt or capital lease
25agreements shall be excluded from this program.

26(2)  The department may set limits on aid awards and
27negotiate the amount, payment schedule and other terms of the
28grant or loan agreements to ensure that the implementation of
29a regional service agreement is cost effective and in the
30public interest.

1(g)  Technical support.--The department may provide technical
2support to assist political subdivisions in applying for grants
3or loans for studying regional service agreements.

4Section 5.  Regional Efficiency Development Incentive Fund.

5The Regional Efficiency Development Incentive Fund is
6established within the State Treasury as a nonlapsing revolving
7account which shall receive moneys as may be credited to it, the
8repayment of loans made from the fund and any other moneys as
9may be appropriated to the fund from time to time. Moneys in the
10fund are hereby appropriated on a continuing basis to the
11department for the purposes of this act.

12Section 6.  Regulations.

13The department shall promulgate rules and regulations
14necessary to effectuate the purposes of the REDI Program.

15Section 7.  Effective date.

16This act shall take effect in 60 days.