PRIOR PRINTER'S NOS. 2007, 2170               PRINTER'S NO. 2227

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

        AS AMENDED ON THIRD CONSIDERATION, JUNE 11, 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
    17     a declining local tax base.

     1         (3)  In order to promote private investment in these
     2     areas, local economic recovery strategies must be designed in
     3     recognition of the many unique assets and resources available
     4     in these communities.
     5         (4)  In order to best develop meaningful economic
     6     strategies, a professional development staff must be
     7     available to these communities.
     8     (b)  Intent.--It is the intent of the General Assembly to
     9  assist economically disadvantaged communities to develop local
    10  economic recovery strategies.
    11  Section 3.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Community."  A municipality, including counties, cities,
    16  boroughs, incorporated towns, townships, home rule
    17  municipalities and councils of local government.
    18     "Consortium."  The grouping of two or more communities to
    19  better provide for grant utilization.
    20     "Department."  The Department of Commerce of the
    21  Commonwealth.
    22     "Distressed communities."  Communities which are designated
    23  as distressed by the Federal Department of Housing and Urban
    24  Development under the Housing and Community Development Act of
    25  1974 (Public Law 93-383, 42 U.S.C. § 5301 et seq.) or which meet
    26  criteria promulgated by the department.
    27     "Local development agency."  Any municipality or any
    28  industrial and commercial authority organized pursuant to or
    29  industrial development company as certified by the department
    30  pursuant to the act of August 23, 1967 (P.L.251, No.102), known
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     1  as the Industrial and Commercial Development Authority Law; any
     2  council of government organization or any multimunicipal agency
     3  organization created pursuant to the act of July 12, 1972
     4  (P.L.762, No.180), referred to as the Intergovernmental
     5  Cooperation Law; any municipal authority organization pursuant
     6  to the act of May 2, 1945 (P.L.382, No.164), known as the
     7  Municipality Authorities Act of 1945; any redevelopment
     8  authority organized pursuant to the act of May 24, 1945
     9  (P.L.991, No.385), known as the Urban Redevelopment Law; and any
    10  local development district of the Appalachian Regional
    11  Commission.
    12     "Secretary."  The Secretary of Commerce of the Commonwealth.
    13  Section 4.  Purpose.
    14     It is the purpose of this act to provide financial assistance
    15  to distressed communities in this Commonwealth to enable them to
    16  develop local economic recovery strategies and area marketing
    17  plans designed to retain existing jobs, to assist in business
    18  expansions or startups and to attract new industry.
    19  Section 5.  Program establishment.
    20     There is hereby established, under the direction of the
    21  department, a program to be known as the Community Economic
    22  Recovery Program.
    23  Section 6.  Eligibility.
    24     (a)  General rule.--Applicants eligible to receive grants are
    25  local development agencies. Preference shall be given to
    26  areawide and regional consortium applications.
    27     (b)  Applications.--Applicants must submit an application, in
    28  a form and manner prescribed by the secretary, addressing the
    29  following:
    30         (1)  Demonstrating the need for developing a local
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     1     economic recovery strategy.
     2         (2)  Describing a plan for developing the strategy.
     3         (3)  Staffing needs required to develop and implement the
     4     plan.
     5  Section 7.  Use of funds.
     6     (a)  General rule.--Grant funds shall be used to help develop
     7  the local capacity to plan and to implement an economic recovery
     8  strategy. Funding may be used for activities including, but not
     9  limited to, the following:
    10         (1)  Identifying existing industries within the community
    11     which may be in danger of leaving the area, and encouraging
    12     the retention of these industries.
    13         (2)  Identifying growth industries, and developing plans
    14     for encouraging the expansion of such industries within the
    15     community.
    16         (3)  Analyzing the job skills of the unemployed labor
    17     force and reviewing existing job training programs in order
    18     to make recommendations on the upgrading of the skills of the
    19     unemployed labor force.
    20         (4)  Itemizing infrastructure improvements necessary for
    21     job creation.
    22         (5)  Cataloging the services of local economic
    23     development agencies.
    24         (6)  Ensuring that these agencies have qualified
    25     personnel with knowledge of Federal, State and local
    26     programs.
    27         (7)  Listing those areas in which the community has a
    28     particular advantage over other locations, both inside and
    29     outside this Commonwealth.
    30         (8)  Listing those areas in which the community is at a
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     1     disadvantage when attracting private capital, along with
     2     making recommendations for alleviating these problems.
     3         (9)  Working with businesses and other organizations to
     4     encourage the retention of existing jobs, the expansion of
     5     existing firms and the attraction of new businesses, with
     6     emphasis on projects that will help diversify the community's
     7     economic base.
     8     (b)  Report.--A final report shall be submitted to the
     9  department within one year of the award of funds and shall
    10  include, as a minimum, a summary of the analyses performed and
    11  the businesses assisted and a detailed list of locally supported
    12  programs or projects planned, designed or implemented as part of
    13  the local economic recovery strategy.
    14  Section 8.  Grant conditions and procedures.
    15     Grants (A)  GENERAL RULE.--GRANTS OTHER THAN GRANTS FOR A      <--
    16  PROFESSIONAL DEVELOPMENT STAFF shall meet the following
    17  conditions:
    18         (1)  Individual grants shall not exceed $50,000.
    19         (2)  No more than one grant per municipality LOCAL         <--
    20     DEVELOPMENT AGENCY shall be awarded in any one State fiscal
    21     year.
    22         (3)  (B)  PROFESSIONAL DEVELOPMENT STAFF GRANTS.--Grants   <--
    23     for a professional development staff may be awarded according  <--
    24     to the following conditions, in addition to paragraphs (1)
    25     and (2) as follows: SHALL MEET THE FOLLOWING CONDITIONS:       <--
    26             (i) (1)  Evidence SHALL BE PRESENTED that there will   <--
    27         be a local funding match of at least $1 for every $1 of
    28         State grant.
    29             (ii)  Identification of the local development          <--
    30         agencies to be the grant recipient.
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     1             (iii)  Maximum grants shall be permitted according to
     2         the following:
     3         (2)  THE LOCAL DEVELOPMENT AGENCIES TO BE THE GRANT        <--
     4     RECIPIENT SHALL BE IDENTIFIED.
     5         (3)  GRANTS SHALL NOT EXCEED THE FOLLOWING SCHEDULE:
     6                 (A)  First class counties                $150,000
     7                 (B)  Second class counties                100,000
     8                 (C)  Second class A counties               50,000
     9                 (D)  Third class through eighth class
    10             counties                                       25,000
    11  Section 9.  Application procedures.
    12     (a)  Form.--Applications for the Community Economic Recovery
    13  Program funds shall be made to the department, in a form and
    14  manner prescribed by the secretary.
    15     (b)  Coordination.--The department may require that local
    16  development districts or counties coordinate the efforts of the
    17  various municipalities LOCAL DEVELOPMENT AGENCIES within their    <--
    18  region to insure that communities are not duplicating grant
    19  proposals, including encouraging adjacent jurisdictions that are
    20  individually applying for a grant to pool resources and submit a
    21  joint proposal, and encouraging those eligible jurisdictions not
    22  applying for a grant to cooperate with adjacent jurisdictions
    23  and apply for funding, if applicable.
    24     (c)  Contents of application.--The application shall contain
    25  the following:
    26         (1)  Documentation that the community or communities meet
    27     the eligibility criteria specified in this act.
    28         (2)  Justification of the need for State assistance in
    29     developing a local community economic recovery strategy.
    30         (3)  A description of the organization that will
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     1     administer the funds and the reason why it can represent the
     2     area in its revitalization effort, including statements from
     3     other community groups in support of the application.
     4         (4)  A detailed description of the activities to be
     5     carried out using the funds.
     6         (5)  A letter from the elected officials in each
     7     municipality and county of the distressed area specifying
     8     their support.
     9         (6)  Other information as specified by the department.
    10  Section 10.  Grant evaluation criteria.
    11     (a)  Analysis of application.--The department shall determine
    12  from the application whether the community is eligible for
    13  assistance and the proposed plan is likely to promote economic
    14  growth. If the department determines that the applicant is not
    15  qualified to develop a community economic recovery strategy, the
    16  department may attempt to aid the applicant to establish a group
    17  which is qualified, or to develop a revised plan which will best
    18  carry out the purpose of revitalizing the particular community.
    19     (b)  Criteria.--In addition, in evaluating applications for
    20  grants, the department shall consider the following specific
    21  criteria:
    22         (1)  Community support and cooperation, including the
    23     degree of public and private matching commitments.
    24         (2)  The degree of areawide or multicommunity
    25     involvement, including the total population to be served by
    26     the grant.
    27         (3)  Identification of critical economic needs or
    28     opportunities.
    29         (4)  Consistency of the proposal with State economic
    30     development strategies, goals or objectives.
    19860S1468B2227                  - 7 -

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














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