PRINTER'S NO. 3349
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2301
Session of
2020
INTRODUCED BY SIMMONS, ROTHMAN, RYAN AND GROVE,
FEBRUARY 24, 2020
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 24, 2020
AN ACT
Amending Title 14 (Community Affairs) of the Pennsylvania
Consolidated Statutes, consolidating provisions relating to
the Community Development Bank Grant and Loan Program; and
making a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 14 of the Pennsylvania Consolidated
Statutes is amended by adding parts to read:
PART I
PRELIMINARY PROVISIONS
(Reserved)
PART II
(Reserved)
PART III
COMMUNITY REVITALIZATION
Chapter
31. Preliminary Provisions (Reserved)
32. (Reserved)
33. (Reserved)
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34. (Reserved)
35. Community Development Bank Grant and Loan Program
CHAPTER 31
PRELIMINARY PROVISIONS
(Reserved)
CHAPTER 32
(Reserved)
CHAPTER 33
(Reserved)
CHAPTER 34
(Reserved)
CHAPTER 35
COMMUNITY DEVELOPMENT BANK GRANT
AND LOAN PROGRAM
Sec.
3501. Definitions.
3502. Continuation .
3503. Operation of Pennsylvania Community Development Bank.
3504. Deposits.
3505. Accreditation.
3506. Grants.
3507. Authority loans.
3508. Community development loans.
3509. Agreements.
3510. Report.
3511. Additional powers.
§ 35 01. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Authority." The Pennsylvania Economic Development Financing
Authority.
"Board." The board of directors of the Pennsylvania Economic
Development Financing Authority.
"Certification." Proof by any of the following:
(1) Receipts of paid taxes and municipal utility bills.
(2) Notarized affidavit by a recipient stating payments
of real estate taxes and utility bills.
"Community development financial institution." A community
development financial institution certified in accordance with
the Community Development Banking and Financial Institutions Act
of 1994 (Public Law 103-325, 108 Stat. 2163).
"Community development loan." A loan from a community
development financial institution to low-income individuals,
businesses and nonprofit organizations for the purpose of
revitalizing distressed communities and buildings.
"Eligible institution." A community development financial
institution which has been accredited by the department under
section 3505 (relating to accreditation).
"Participating investors." Public or private entities which
elect to participate with the authority in the loan programs
under this chapter.
"Program." The Community Development Bank Grant and Loan
Program continued under this chapter.
"Recipient." A person that receives a grant or loan under
the program.
§ 3502. Continuation.
(a) Program continued.--The Community Development Bank Grant
and Loan Program is continued within the Pennsylvania Economic
Development Financing Authority to be administered in accordance
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with the act of August 23, 1967 (P.L.251, No.102), known as the
Economic Development Financing Law.
(b) Name.-- The program shall operate under the name of the
Pennsylvania Community Development Bank.
§ 3503. Operation of Pennsylvania Community Development Bank.
(a) Operational committee.--The authority shall establish,
by resolution, a committee of the board consisting of not more
than 21 members who shall be authorized by the authority to
operate the program. The committee shall consist of all of the
following:
(1) The secretary who shall be the chair of the
committee.
(2) The State Treasurer.
(3) The Secretary of Banking and Securities.
(4) No more than 14 members appointed by the Governor
representing participating investors and members of the
general public.
(5) One member appointed by the President pro tempore of
the Senate.
(6) One member appointed by the Speaker of the House of
Representatives.
(7) One member appointed by the Minority Leader of the
Senate.
(8) One member appointed by the Minority Leader of the
House of Representatives.
(b) Limitation on voting.--No representative of an eligible
institution may serve as a voting member of the committee.
(c) Terms.--The members shall serve at the pleasure of the
appointing authority.
(d) Expenses.--The members of the committee may not receive
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compensation for their services but shall be entitled to
reimbursement for all necessary expenses incurred in connection
with the performance of their duties.
(e) Quorum.--A majority of the members of the committee
shall constitute a quorum.
§ 3504. Deposits.
(a) Special accounts.--Money appropriated to the program may
be deposited by the authority in banks or trust companies in
special accounts. The following apply:
(1) Funds in the special accounts may be prudently
invested in any of the following:
(i) Obligations of the Federal Government, its
agencies and instrumentalities, which have a liquid
market with a readily determinable market value.
(ii) Certificates of deposit and other evidences of
deposit at financial institutions, bankers' acceptances
and commercial paper rated in the highest tier by a
nationally recognized rating agency.
(iii) Obligations of State and local governments and
public authorities, which are rated in one of the top
three rating categories by a nationally recognized rating
agency.
(iv) Repurchase agreements with underlying purchased
securities consisting of investments under subparagraph
(i), (ii) or (iii).
(v) Money market funds regulated by the Securities
and Exchange Commission having aggregate assets of at
least $50,000,000 on the date of investment with a
portfolio consisting only of dollar-denominated
securities.
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(2) Investments under this subsection shall be made with
judgment and care under circumstances then prevailing which
persons of prudence, discretion and intelligence exercise in
the management of their own affairs. Investments under this
subsection shall not be for the purpose of speculation but
for investment, considering the probable safety of their
capital as well as the probable income to be derived.
(3) Investments under this subsection shall be made in
accordance with written policies. The investment policies
shall address liquidity, diversification, safety of
principal, yield, maturity and quality and the capability of
investment management, with a primary emphasis on safety and
liquidity.
(b) Disbursements.--Money in special accounts under
subsection (a) shall be paid out upon an order of the authority.
§ 3505. Accreditation.
(a) Participation.--The department shall accredit community
development financial institutions to participate in the
program. The department may revoke accreditation from a
community development financial institution which no longer
meets accreditation criteria. Accreditation of a community
development financial institution under this chapter shall not,
in and of itself, qualify an institution to participate in any
other financing program administered by the department.
(b) Criteria.--The department's criteria for accreditation
shall include certification under the Community Development
Banking and Financial Institutions Act of 1994 (Public Law 103-
325, 108 Stat. 2163) and other such criteria as the department
deems appropriate.
(c) Geographic diversity.--The department shall accredit
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eligible institutions in a manner to ensure the use of community
development financial institutions in all geographic regions of
this Commonwealth to the greatest extent possible.
§ 3506. Grants.
(a) Certification or accreditation.--The authority may issue
grants to an eligible institution or nonprofit organization
which is seeking to obtain Federal certification or department
accreditation as an eligible institution.
(b) Program participation.--In accordance with section
3505(c) (relating to accreditation), the authority may issue
grants for the purpose of developing or enhancing the ability of
an eligible institution or nonprofit organization seeking to
obtain Federal certification or department accreditation as an
eligible institution to participate in the program.
(c) Contractual agreements.--The authority may issue grants
or loans from the program to nonprofit organizations which have
entered into a written contract with an eligible institution or
a nonprofit organization receiving grants from the authority
under subsection (b).
(d) Certain areas.--In areas where no eligible institution
exists and no nonprofit organization is seeking to obtain
Federal certification or department accreditation as an eligible
institution, the authority may issue grants to a nonprofit
organization deemed by the department to be performing
activities consistent with the purposes of the Community
Development Banking and Financial Institutions Act of 1994
(Public Law 103-325, 108 Stat. 2163).
(e) Grant requirements.--Grants issued under this section
shall provide technical assistance, training or other support to
small businesses and, if applicable, shall be consistent with
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the development plan of a community development financial
institution.
§ 3507. Authority loans.
(a) Terms and conditions.--The authority may make loans to
an eligible institution from money appropriated to the program
with terms and conditions as the authority may determine.
(b) Use of loans.--Loans under this section shall be made
and used in accordance with August 23, 1967 (P.L.251, No.102),
known as the Economic Development Financing Law, and the
Community Development Banking and Financial Institutions Act of
1994 (Public Law 103-325, 108 Stat. 2163) or any successor
Federal law.
(c) Lenders or investors.--Loans under this section may be
made by the authority as the sole lender or in cooperation with
participating investors under agreements entered into in
accordance with this chapter.
(d) Repayments.--Loan repayments under this section shall be
used by the authority to make new loans to eligible
institutions.
§ 3508. Community development loans.
(a) Guidelines.--An eligible institution that receives loans
under section 3507 (relating to authority loans) shall make and
use community development loans in accordance guidelines
established by the department and in a manner consistent with
the Community Development Banking and Financial Institutions Act
of 1994 (Public Law 103-325, 108 Stat. 2163). The guidelines
shall include criteria for the approval of a portfolio of loans
submitted by an eligible institution.
(b) Certification required.--An eligible institution that
receives loans under section 3507 shall provide certification to
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the department that the eligible institution does not have any
outstanding municipal debts in the form of delinquent real
estate taxes or municipal utility bills that are more than one
year outstanding.
§ 3509. Agreements.
The authority may enter into agreements and contracts as
appropriate to implement the authority's duties under this
chapter, including agreements with participating investors.
§ 3510. Report.
Within 90 days of the end of each fiscal year, the authority
shall prepare, in consultation with the committee established
under section 3503(a) (relating to operation of Pennsylvania
Community Development Bank), an annual report to the chair and
minority chair of the Appropriations Committee of the Senate and
the chair and minority chair of the Appropriations Committee of
the House of Representatives. The report, which shall be for the
immediately preceding fiscal year, shall include all of the
following information:
(1) The amount of money appropriated to the program and
deposited by the authority in special accounts in banks or
trust companies under section 35 04(a) (relating to deposits).
(2) The amount of disbursements made from the special
accounts under section 35 04(b).
(3) The number, name and location of community
development financial institutions accredited by the
department.
(4) The number and amount of grants to community
development financial institutions or nonprofit
organizations.
§ 3511. Additional powers.
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The authority shall have all other powers granted to the
authority under the act of August 23, 1967 (P.L.251, No.102),
known as the Economic Development Financing Law. The authority
may operate other community development programs under the name
of the Pennsylvania Community Development Bank, including
programs authorized and funded under the Federal Rural
Development Block Grant Program.
Section 2. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of 14
Pa.C.S. Ch. 35.
(2) Chapter 25 of the act of June 29, 1996 (P.L.434,
No.67), known as the Job Enhancement Act, is repealed.
Section 3. The addition of 14 Pa.C.S. Ch. 35 is a
continuation of Chapter 25 of the act of June 29, 1996 (P.L.434,
No.67), known as the Job Enhancement Act. The following apply:
(1) Except as otherwise provided in 14 Pa.C.S. Ch. 35,
all activities initiated under Chapter 25 of the Job
Enhancement Act shall continue and remain in full force and
effect and may be completed under 14 Pa.C.S. Ch. 35. Orders,
regulations, rules and decisions which were made under
Chapter 25 of the Job Enhancement Act and which are in effect
on the effective date of section 2(2) of this act shall
remain in full force and effect until revoked, vacated or
modified under 14 Pa.C.S. Ch. 35. Contracts, obligations and
collective bargaining agreements entered into under Chapter
25 of the Job Enhancement Act are not affected nor impaired
by the repeal of Chapter 25 of the Job Enhancement Act.
(2) Any difference in language between 14 Pa.C.S. Ch. 35
and Chapter 25 of the Job Enhancement Act is intended only to
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conform to the style of the Pennsylvania Consolidated
Statutes and is not intended to change or affect the
legislative intent, judicial construction or administration
and implementation of Chapter 25 of the Job Enhancement Act.
Section 4. This act shall take effect in 60 days.
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