PRINTER'S NO. 1563
No. 1311 Session of 1983
INTRODUCED BY MURPHY, D. R. WRIGHT, TRELLO, ITKIN, SEVENTY, F.
E. TAYLOR, WAMBACH, O'DONNELL, FEE, FREEMAN, KUKOVICH,
MANDERINO, OLASZ, CAWLEY, DeWEESE, TIGUE, RUDY, LLOYD,
GRUITZA, AFFLERBACH, McHALE, STEIGHNER, HALUSKA, ZWIKL,
WOZNIAK, FATTAH, CLARK, VAN HORNE, McMONAGLE, COY, GAMBLE,
DALEY, COLAFELLA, RICHARDSON, EVANS, COHEN, DEAL, STEWART,
MAYERNIK, PISTELLA, MISCEVICH, HARPER, SWEET, WACHOB,
MICHLOVIC, CALTAGIRONE, LEVIN, LINTON AND PRESTON, JUNE 30,
1983
REFERRED TO COMMITTEE ON FINANCE, JUNE 30, 1983
AN ACT
1 To establish a State-run grant program which would provide
2 infrastructure support moneys to complement new private
3 investment projects.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Pennsylvania
8 Development Investment Program Act.
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have the meanings given to them in this section unless the
12 context clearly indicates otherwise:
13 "Infrastructure." Those improvements to real property
14 usually performed by a municipality or municipal authority or a
15 private concern which include, but are not limited to, roadways,
1 curbing, street-widening, water or sewage lines, railroad
2 sidings, utility services, drainage and other improvements
3 necessary to provide services or improve services to an
4 industrial or commercial project.
5 "Local sponsor." Any municipality or any industrial and
6 commercial authority organized pursuant to the act of August 23,
7 1967 (P.L.251, No.102), known as the Industrial and Commercial
8 Development Authority Law. Any council of government
9 organization or any multimunicipal agency organization created
10 pursuant to the act of July 12, 1972 (P.L.762, No.180), referred
11 to as the Intergovernmental Cooperation Law, any municipal
12 authority organized pursuant to the act of May 2, 1945 (P.L.382,
13 No.164), known as the Municipality Authorities Act of 1945 and
14 any redevelopment authority organized pursuant to the act of May
15 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment
16 Law.
17 "Municipality." Any county, city, borough, incorporated
18 town, township or home rule municipality.
19 "Pennsylvania Economic Development Board." The Pennsylvania
20 Economic Development Board as established by the act of
21 .
22 "PennPRIDE." The Pennsylvania Program for Recovery,
23 Investment, Development and Education.
24 Section 3. Establishment of program.
25 (a) General purpose.--There is hereby established under the
26 direction of Pennsylvania Economic Development Board a program
27 to be known as the Pennsylvania Development Investment Program
28 for the purpose of making grants or loans of moneys to local
29 sponsors in order to develop or install specific infrastructure
30 necessary to complement or encourage new or expanded industrial
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1 or commercial investment by private companies.
2 (b) Private company initiatives commitments.--An application
3 for a loan or grant shall be initiated by a private company by a
4 request to a local sponsor, as defined in this act, and such
5 local sponsor shall proceed only upon the basis of a
6 contractural agreement or signed letter of intent by the private
7 company that it will locate, build or expand an industrial or
8 commercial venture within this Commonwealth in the jurisdiction
9 of the local sponsor if the specific infrastructure which is
10 being sought is provided.
11 (c) Grant and loan conditions.--The Economic Development
12 Board shall consider grant and loan applications from local
13 sponsors based upon the criteria to encourage certain kinds of
14 economic development by certain types of commercial and
15 industrial firms as set forth in the economic development
16 strategy as developed and required by the Pennsylvania Economic
17 Development Board, and shall determine whether the benefits to
18 be derived from a proposed infrastructure grant or loan are
19 worth the investment based on the following criteria:
20 (1) The number of new jobs that will be provided
21 directly by the private company's new or expanded industrial
22 or commercial investment.
23 (2) The amount of additional income that will be
24 directly and indirectly generated by the private company's
25 new or expanded industrial or commercial investment.
26 (3) The availability or lack thereof of Federal
27 Government Urban Development Action Grants or other Federal
28 assistance that would fund development of the infrastructure.
29 (4) The degree of economic distress in the jurisdiction
30 of the local sponsor and, when appropriate, the surrounding
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1 area, as measured by rates of unemployment, income levels,
2 and such other criteria as the Economic Development Board
3 shall establish by rules or guidelines.
4 (5) The amount of expansion in the local tax base that
5 will be generated by the proposed new or expanded investment
6 by the private company.
7 Section 4. Economic Development Board powers.
8 The Economic Development Board shall have the power and duty
9 to:
10 (1) Set from time to time such rates of interest and
11 repayment schedules as may be required for any loans made
12 pursuant to section 3.
13 (2) Prescribe such applicant form and promulgate such
14 rules or guidelines as may be necessary to carry out the
15 provisions of section 3, and specifically section 3(c)(5)
16 with respect to grant and loan conditions, criteria for
17 evaluation of the economic benefit of proposed grants or
18 loans, and for determining and evaluating compliance with all
19 the other criteria established in section 3(c).
20 (3) Follow the criteria with respect to an economic
21 development strategy for the Commonwealth and the
22 encouragement of certain kinds of economic development by
23 certain types of commercial and industrial firms.
24 Section 5. Effective date.
25 This act shall take effect in 60 days.
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