PRIOR PRINTER'S NO. 2007                      PRINTER'S NO. 2170

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1468 Session of 1986


        INTRODUCED BY SHAFFER, SINGEL, SALVATORE, JUBELIRER, FISHER,
           PETERSON, REIBMAN, PECORA, STOUT, HELFRICK, MOORE, CORMAN,
           KRATZER, LEMMOND, WILT, RHOADES, O'PAKE, STAUFFER, ROSS,
           SHUMAKER, MADIGAN, LOEPER, ZEMPRELLI, SCANLON, ROMANELLI,
           LINCOLN, BRIGHTBILL, HANKINS, BODACK, MUSTO AND ANDREZESKI,
           APRIL 10, 1986

        SENATOR TILGHMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED,
           JUNE 2, 1986

                                     AN ACT

     1  Establishing a program within the Department of Commerce to
     2     provide assistance to communities experiencing economic
     3     distress by providing grants for the development of long-term
     4     economic recovery strategies.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Community
     9  Economic Recovery Program Act.
    10  Section 2.  Legislative findings and declarations.
    11     (a)  Findings.--The General Assembly finds and declares that:
    12         (1)  There exist within this Commonwealth certain areas
    13     where there is persistent unemployment and underemployment.
    14         (2)  Insufficient private investment in these areas
    15     causes social and economic problems for the citizens of these
    16     areas, including increased reliance on public assistance, and


     1     a declining local tax base.
     2         (3)  In order to promote private investment in these
     3     areas, local economic recovery strategies must be designed in
     4     recognition of the many unique assets and resources available
     5     in these communities.
     6         (4)  IN ORDER TO BEST DEVELOP MEANINGFUL ECONOMIC          <--
     7     STRATEGIES, A PROFESSIONAL DEVELOPMENT STAFF MUST BE
     8     AVAILABLE TO THESE COMMUNITIES.
     9     (b)  Intent.--It is the intent of the General Assembly to
    10  assist economically disadvantaged communities to develop local
    11  economic recovery strategies.
    12  Section 3.  Definitions.
    13     The following words and phrases when used in this act shall
    14  have the meanings given to them in this section unless the
    15  context clearly indicates otherwise:
    16     "Community."  A municipality, including counties, cities,
    17  boroughs, incorporated towns, townships, home rule
    18  municipalities and councils of local government.
    19     "CONSORTIUM."  THE GROUPING OF TWO OR MORE COMMUNITIES TO      <--
    20  BETTER PROVIDE FOR GRANT UTILIZATION.
    21     "Department."  The Department of Commerce of the
    22  Commonwealth.
    23     "Distressed communities."  Communities which are designated
    24  as distressed by the Federal Department of Housing and Urban
    25  Development under the Housing and Community Development Act of
    26  1974 (Public Law 93-383, 42 U.S.C. § 5301 et seq.) or which meet
    27  criteria promulgated by the department.
    28     "Local development district."  A multicounty regional agency   <--
    29  established by the Appalachian Regional Commission to undertake
    30  economic and enterprise development activities.
    19860S1468B2170                  - 2 -

     1     "LOCAL DEVELOPMENT AGENCY."  ANY MUNICIPALITY OR ANY           <--
     2  INDUSTRIAL AND COMMERCIAL AUTHORITY ORGANIZED PURSUANT TO OR
     3  INDUSTRIAL DEVELOPMENT COMPANY AS CERTIFIED BY THE DEPARTMENT
     4  PURSUANT TO THE ACT OF AUGUST 23, 1967 (P.L.251, NO.102), KNOWN
     5  AS THE INDUSTRIAL AND COMMERCIAL DEVELOPMENT AUTHORITY LAW; ANY
     6  COUNCIL OF GOVERNMENT ORGANIZATION OR ANY MULTIMUNICIPAL AGENCY
     7  ORGANIZATION CREATED PURSUANT TO THE ACT OF JULY 12, 1972
     8  (P.L.762, NO.180), REFERRED TO AS THE INTERGOVERNMENTAL
     9  COOPERATION LAW; ANY MUNICIPAL AUTHORITY ORGANIZATION PURSUANT
    10  TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE
    11  MUNICIPALITY AUTHORITIES ACT OF 1945; ANY REDEVELOPMENT
    12  AUTHORITY ORGANIZED PURSUANT TO THE ACT OF MAY 24, 1945
    13  (P.L.991, NO.385), KNOWN AS THE URBAN REDEVELOPMENT LAW; AND ANY
    14  LOCAL DEVELOPMENT DISTRICT OF THE APPALACHIAN REGIONAL
    15  COMMISSION.
    16     "Secretary."  The Secretary of Commerce of the Commonwealth.
    17  Section 4.  Purpose.
    18     It is the purpose of this act to provide financial assistance
    19  to distressed communities in this Commonwealth to enable them to
    20  develop local economic recovery strategies and area marketing
    21  plans designed to retain existing jobs, to assist in business
    22  expansions or startups and to attract new industry.
    23  Section 5.  Program establishment.
    24     There is hereby established, under the direction of the
    25  department, a program to be known as the Community Economic
    26  Recovery Program.
    27  Section 6.  Eligibility.
    28     (a)  General rule.--Applicants eligible to receive grants are
    29  municipalities and groups of municipalities LOCAL DEVELOPMENT     <--
    30  AGENCIES. Preference shall be given to areawide and regional
    19860S1468B2170                  - 3 -

     1  consortium applications.
     2     (b)  Applications.--Applicants must submit an application, in
     3  a form and manner prescribed by the secretary, demonstrating the  <--
     4  need for developing a local economic recovery strategy and
     5  describing a plan for developing such a strategy. ADDRESSING THE  <--
     6  FOLLOWING:
     7         (1)  DEMONSTRATING THE NEED FOR DEVELOPING A LOCAL
     8     ECONOMIC RECOVERY STRATEGY.
     9         (2)  DESCRIBING A PLAN FOR DEVELOPING THE STRATEGY.
    10         (3)  STAFFING NEEDS REQUIRED TO DEVELOP AND IMPLEMENT THE
    11     PLAN.
    12  Section 7.  Use of funds.
    13     (a)  General rule.--Grant funds shall be used to help develop
    14  the local capacity to plan and to implement an economic recovery
    15  strategy. Funding may be used for activities including, but not
    16  limited to, the following:
    17         (1)  Identifying existing industries within the community
    18     which may be in danger of leaving the area, and encouraging
    19     the retention of these industries.
    20         (2)  Identifying growth industries, and developing plans
    21     for encouraging the expansion of such industries within the
    22     community.
    23         (3)  Analyzing the job skills of the unemployed labor
    24     force and reviewing existing job training programs in order
    25     to make recommendations on the upgrading of the skills of the
    26     unemployed labor force.
    27         (4)  Itemizing infrastructure improvements necessary for
    28     job creation.
    29         (5)  Cataloging the services of local economic
    30     development agencies. and ensuring that these agencies have    <--
    19860S1468B2170                  - 4 -

     1     qualified personnel with knowledge of State and local
     2     programs.
     3         (6)  ENSURING THAT THESE AGENCIES HAVE QUALIFIED           <--
     4     PERSONNEL WITH KNOWLEDGE OF FEDERAL, STATE AND LOCAL
     5     PROGRAMS.
     6         (6) (7)  Listing those areas in which the community has a  <--
     7     particular advantage over other locations, both inside and
     8     outside this Commonwealth.
     9         (7) (8)  Listing those areas in which the community is at  <--
    10     a disadvantage when attracting private capital, along with
    11     making recommendations for alleviating these problems.
    12         (8) (9)  Working with businesses and other organizations   <--
    13     to encourage the retention of existing jobs, the expansion of
    14     existing firms and the attraction of new businesses, with
    15     emphasis on projects that will help diversify the community's
    16     economic base.
    17     (b)  Report.--A final report shall be submitted to the
    18  department within one year of the award of funds and shall
    19  include, as a minimum, a summary of the analyses performed and
    20  the businesses assisted and a detailed list of locally supported
    21  programs or projects planned, designed or implemented as part of
    22  the local economic recovery strategy.
    23  Section 8.  Grant conditions AND PROCEDURES.                      <--
    24     Grants shall meet the following conditions:
    25         (1)  Individual grants shall not exceed $50,000.
    26         (2)  No more than one grant per municipality shall be
    27     awarded in any one State fiscal year.
    28         (3)  GRANTS FOR A PROFESSIONAL DEVELOPMENT STAFF MAY BE    <--
    29     AWARDED ACCORDING TO THE FOLLOWING CONDITIONS, IN ADDITION TO
    30     PARAGRAPHS (1) AND (2) AS FOLLOWS:
    19860S1468B2170                  - 5 -

     1             (I)  EVIDENCE THAT THERE WILL BE A LOCAL FUNDING
     2         MATCH OF AT LEAST $1 FOR EVERY $1 OF STATE GRANT.
     3             (II)  IDENTIFICATION OF THE LOCAL DEVELOPMENT
     4         AGENCIES TO BE THE GRANT RECIPIENT.
     5             (III)  MAXIMUM GRANTS SHALL BE PERMITTED ACCORDING TO
     6         THE FOLLOWING:
     7                 (A)  FIRST CLASS COUNTIES                $150,000
     8                 (B)  SECOND CLASS COUNTIES                100,000
     9                 (C)  SECOND CLASS A COUNTIES               50,000
    10                 (D)  THIRD CLASS THROUGH EIGHTH CLASS
    11             COUNTIES                                       25,000
    12  Section 9.  Application procedures.
    13     (a)  Form.--Applications for the Community Economic Recovery
    14  Program funds shall be made to the department, in a form and
    15  manner prescribed by the secretary.
    16     (b)  Coordination.--The department may require that local
    17  development districts or counties coordinate the efforts of the
    18  various municipalities within their region to insure that
    19  communities are not duplicating grant proposals, including
    20  encouraging adjacent jurisdictions that are individually
    21  applying for a grant to pool resources and submit a joint
    22  proposal, and encouraging those eligible jurisdictions not
    23  applying for a grant to cooperate with adjacent jurisdictions
    24  and apply for funding, if applicable.
    25     (c)  Contents of application.--The application shall contain
    26  the following:
    27         (1)  Documentation that the community or communities meet
    28     the eligibility criteria specified in this act.
    29         (2)  Justification of the need for State assistance in
    30     developing a local community economic recovery strategy.
    19860S1468B2170                  - 6 -

     1         (3)  A description of the organization that will
     2     administer the funds and the reason why it can represent the
     3     area in its revitalization effort, including statements from
     4     other community groups in support of the application.
     5         (4)  A detailed description of the activities to be
     6     carried out using the funds.
     7         (5)  A letter from the elected officials in each
     8     municipality and county of the distressed area specifying
     9     their support.
    10         (6)  Other information as specified by the department.
    11  Section 10.  Grant evaluation criteria.
    12     (a)  Analysis of application.--The department shall determine
    13  from the application whether the community is eligible for
    14  assistance and the proposed plan is likely to promote economic
    15  growth. If the department determines that the applicant is not
    16  qualified to develop a community economic recovery strategy, the
    17  department may attempt to aid the applicant to establish a group
    18  which is qualified, or to develop a revised plan which will best
    19  carry out the purpose of revitalizing the particular community.
    20     (b)  Criteria.--In addition, in evaluating applications for
    21  grants, the department shall consider the following specific
    22  criteria:
    23         (1)  Community support and cooperation, including the
    24     degree of public and private matching commitments.
    25         (2)  The degree of areawide or multicommunity
    26     involvement, including the total population to be served by
    27     the grant.
    28         (3)  Identification of critical economic needs or
    29     opportunities.
    30         (4)  Consistency of the proposal with State economic
    19860S1468B2170                  - 7 -

     1     development strategies, goals or objectives.
     2         (5)  Other criteria as established by the department as
     3     necessary to achieve the purposes of this act.
     4  Section 11.  Additional powers and duties of department.
     5     The department may prescribe such application forms,
     6  promulgate and publish rules, regulations, procedures and
     7  application manuals, and request such information as may be
     8  necessary to carry out the provisions of this act.
     9  Section 12.  Effective date.
    10     This act shall take effect immediately.














    C10L71CHF/19860S1468B2170        - 8 -