HOUSE AMENDED
PRIOR PRINTER'S NOS. 2007, 2170, 2227 PRINTER'S NO. 2299
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 REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 25, 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 AMENDING THE ACT OF JULY 2, 1984 (P.L.520, NO.105), ENTITLED "AN <--
6 ACT ESTABLISHING A BUSINESS INFRASTRUCTURE DEVELOPMENT
7 PROGRAM FOR MAKING GRANTS AND LOANS FOR INFRASTRUCTURE
8 NECESSARY TO COMPLEMENT INDUSTRIAL OR COMMERCIAL INVESTMENT
9 BY PRIVATE COMPANIES; PRESCRIBING REQUIREMENTS OF AND
10 CONDITIONS FOR GRANTS AND LOANS; AND MAKING AN
11 APPROPRIATION," FURTHER PROVIDING FOR GRANT AND LOAN
12 PROCEDURES, THE CONDITIONS OF LOANS AND THE MUNICIPALITIES
13 WHERE GRANTS MAY BE MADE; AND REMOVING PROVISIONS RELATING TO
14 GUIDELINES AND REGULATIONS.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Short title. <--
18 This act shall be known and may be cited as the Community
19 Economic Recovery Program Act.
20 Section 2. Legislative findings and declarations.
21 (a) Findings.--The General Assembly finds and declares that:
1 (1) There exist within this Commonwealth certain areas
2 where there is persistent unemployment and underemployment.
3 (2) Insufficient private investment in these areas
4 causes social and economic problems for the citizens of these
5 areas, including increased reliance on public assistance, and
6 a declining local tax base.
7 (3) In order to promote private investment in these
8 areas, local economic recovery strategies must be designed in
9 recognition of the many unique assets and resources available
10 in these communities.
11 (4) In order to best develop meaningful economic
12 strategies, a professional development staff must be
13 available to these communities.
14 (b) Intent.--It is the intent of the General Assembly to
15 assist economically disadvantaged communities to develop local
16 economic recovery strategies.
17 Section 3. Definitions.
18 The following words and phrases when used in this act shall
19 have the meanings given to them in this section unless the
20 context clearly indicates otherwise:
21 "Community." A municipality, including counties, cities,
22 boroughs, incorporated towns, townships, home rule
23 municipalities and councils of local government.
24 "Consortium." The grouping of two or more communities to
25 better provide for grant utilization.
26 "Department." The Department of Commerce of the
27 Commonwealth.
28 "Distressed communities." Communities which are designated
29 as distressed by the Federal Department of Housing and Urban
30 Development under the Housing and Community Development Act of
19860S1468B2299 - 2 -
1 1974 (Public Law 93-383, 42 U.S.C. § 5301 et seq.) or which meet
2 criteria promulgated by the department.
3 "Local development agency." Any municipality or any
4 industrial and commercial authority organized pursuant to or
5 industrial development company as certified by the department
6 pursuant to the act of August 23, 1967 (P.L.251, No.102), known
7 as the Industrial and Commercial Development Authority Law; any
8 council of government organization or any multimunicipal agency
9 organization created pursuant to the act of July 12, 1972
10 (P.L.762, No.180), referred to as the Intergovernmental
11 Cooperation Law; any municipal authority organization pursuant
12 to the act of May 2, 1945 (P.L.382, No.164), known as the
13 Municipality Authorities Act of 1945; any redevelopment
14 authority organized pursuant to the act of May 24, 1945
15 (P.L.991, No.385), known as the Urban Redevelopment Law; and any
16 local development district of the Appalachian Regional
17 Commission.
18 "Secretary." The Secretary of Commerce of the Commonwealth.
19 Section 4. Purpose.
20 It is the purpose of this act to provide financial assistance
21 to distressed communities in this Commonwealth to enable them to
22 develop local economic recovery strategies and area marketing
23 plans designed to retain existing jobs, to assist in business
24 expansions or startups and to attract new industry.
25 Section 5. Program establishment.
26 There is hereby established, under the direction of the
27 department, a program to be known as the Community Economic
28 Recovery Program.
29 Section 6. Eligibility.
30 (a) General rule.--Applicants eligible to receive grants are
19860S1468B2299 - 3 -
1 local development agencies. Preference shall be given to
2 areawide and regional consortium applications.
3 (b) Applications.--Applicants must submit an application, in
4 a form and manner prescribed by the secretary, addressing the
5 following:
6 (1) Demonstrating the need for developing a local
7 economic recovery strategy.
8 (2) Describing a plan for developing the strategy.
9 (3) Staffing needs required to develop and implement the
10 plan.
11 Section 7. Use of funds.
12 (a) General rule.--Grant funds shall be used to help develop
13 the local capacity to plan and to implement an economic recovery
14 strategy. Funding may be used for activities including, but not
15 limited to, the following:
16 (1) Identifying existing industries within the community
17 which may be in danger of leaving the area, and encouraging
18 the retention of these industries.
19 (2) Identifying growth industries, and developing plans
20 for encouraging the expansion of such industries within the
21 community.
22 (3) Analyzing the job skills of the unemployed labor
23 force and reviewing existing job training programs in order
24 to make recommendations on the upgrading of the skills of the
25 unemployed labor force.
26 (4) Itemizing infrastructure improvements necessary for
27 job creation.
28 (5) Cataloging the services of local economic
29 development agencies.
30 (6) Ensuring that these agencies have qualified
19860S1468B2299 - 4 -
1 personnel with knowledge of Federal, State and local
2 programs.
3 (7) Listing those areas in which the community has a
4 particular advantage over other locations, both inside and
5 outside this Commonwealth.
6 (8) Listing those areas in which the community is at a
7 disadvantage when attracting private capital, along with
8 making recommendations for alleviating these problems.
9 (9) Working with businesses and other organizations to
10 encourage the retention of existing jobs, the expansion of
11 existing firms and the attraction of new businesses, with
12 emphasis on projects that will help diversify the community's
13 economic base.
14 (b) Report.--A final report shall be submitted to the
15 department within one year of the award of funds and shall
16 include, as a minimum, a summary of the analyses performed and
17 the businesses assisted and a detailed list of locally supported
18 programs or projects planned, designed or implemented as part of
19 the local economic recovery strategy.
20 Section 8. Grant conditions and procedures.
21 (a) General rule.--Grants other than grants for a
22 professional development staff shall meet the following
23 conditions:
24 (1) Individual grants shall not exceed $50,000.
25 (2) No more than one grant per local development agency
26 shall be awarded in any one State fiscal year.
27 (b) Professional development staff grants.--Grants for a
28 professional development staff shall meet the following
29 conditions:
30 (1) Evidence shall be presented that there will be a
19860S1468B2299 - 5 -
1 local funding match of at least $1 for every $1 of State
2 grant.
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 local development agencies within their region to insure
18 that communities are not duplicating grant proposals, including
19 encouraging adjacent jurisdictions that are individually
20 applying for a grant to pool resources and submit a joint
21 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
19860S1468B2299 - 6 -
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.
19860S1468B2299 - 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.
10 SECTION 1. SECTIONS 2, 4(A) AND (B), 5, 6 AND 7 OF THE ACT <--
11 OF JULY 2, 1984 (P.L.520, NO.105), KNOWN AS THE BUSINESS
12 INFRASTRUCTURE DEVELOPMENT ACT, ARE AMENDED TO READ:
13 SECTION 2. DEFINITIONS.
14 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
15 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
16 CONTEXT CLEARLY INDICATES OTHERWISE:
17 "DEPARTMENT." THE DEPARTMENT OF COMMERCE.
18 "INFRASTRUCTURE IMPROVEMENTS." THE CONSTRUCTION,
19 REHABILITATION OR REPAIR OF DRAINAGE SYSTEMS; ENERGY FACILITIES
20 (POWER GENERATION AND DISTRIBUTION); FIRE SAFETY FACILITIES
21 (EXCLUDING VEHICLES); SEWER SYSTEMS (PIPE, TREATMENT);
22 TRANSPORTATION DIRECTLY AFFECTING THE SITE OF THE PROPOSED
23 PRIVATE INVESTMENT, INCLUDING ROADS, SIDEWALKS, BRIDGES, RAIL,
24 PORT, RIVER, AIRPORT OR PIPELINE (EXCLUDING VEHICLES); WASTE
25 DISPOSAL; [AND] WATER SUPPLY (STORAGE, TREATMENT AND
26 DISTRIBUTION); OR THE PURCHASE, CLEARING OR PREPARATION OF LAND
27 IN DISTRESSED COMMUNITIES.
28 "LOCAL SPONSOR." ANY MUNICIPALITY, ANY INDUSTRIAL AND
29 COMMERCIAL AUTHORITY ORGANIZED PURSUANT TO, OR INDUSTRIAL
30 DEVELOPMENT COMPANY AS CERTIFIED BY THE DEPARTMENT PURSUANT TO
19860S1468B2299 - 8 -
1 THE ACT OF AUGUST 23, 1967 (P.L.251, NO.102), KNOWN AS THE
2 INDUSTRIAL AND COMMERCIAL DEVELOPMENT AUTHORITY LAW; OR
3 INDUSTRIAL DEVELOPMENT COMPANY CERTIFIED PURSUANT TO THE ACT OF
4 MAY 17, 1956 (1955 P.L.1609, NO.537), KNOWN AS THE PENNSYLVANIA
5 INDUSTRIAL DEVELOPMENT AUTHORITY ACT; ANY COUNCIL OF GOVERNMENT
6 ORGANIZATION OR ANY MULTIMUNICIPAL AGENCY ORGANIZATION CREATED
7 PURSUANT TO THE ACT OF JULY 12, 1972 (P.L.762, NO.180), REFERRED
8 TO AS THE INTERGOVERNMENTAL COOPERATION LAW; ANY MUNICIPAL
9 AUTHORITY [ORGANIZATION] ORGANIZED PURSUANT TO THE ACT OF MAY 2,
10 1945 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES
11 ACT OF 1945; ANY REDEVELOPMENT AUTHORITY ORGANIZED PURSUANT TO
12 THE ACT OF MAY 24, 1945 (P.L.991, NO.385), KNOWN AS THE URBAN
13 REDEVELOPMENT LAW; AND ANY LOCAL DEVELOPMENT DISTRICT OF THE
14 APPALACHIAN REGIONAL COMMISSION.
15 "MUNICIPALITY." ANY COUNTY, CITY, BOROUGH, INCORPORATED
16 TOWN, TOWNSHIP OR HOME RULE MUNICIPALITY.
17 "PRIVATE COMPANY." ANY AGRICULTURAL, INDUSTRIAL,
18 MANUFACTURING OR RESEARCH AND DEVELOPMENT ENTERPRISE OR
19 ENTERPRISES, AS DEFINED IN SECTION 3 OF THE ACT OF MAY 17, 1956
20 (1955 P.L.1609, NO.537), KNOWN AS THE PENNSYLVANIA INDUSTRIAL
21 DEVELOPMENT AUTHORITY ACT.
22 "PRIVATE MATCH." ANY NEW PRIVATE INVESTMENT BY [THE] A
23 PRIVATE COMPANY IN [LAND, BUILDINGS AND DEPRECIABLE FIXED ASSETS
24 AND INFRASTRUCTURE IMPROVEMENTS AT THE PROJECT SITE OF THE
25 INFRASTRUCTURE IMPROVEMENTS FUNDED UNDER THIS ACT] A FACILITY,
26 OR INFRASTRUCTURE IMPROVEMENTS AT THE SITE OF A FACILITY.
27 "PUBLICLY OWNED PROPERTY." PROPERTY WHICH IS [ACCESSIBLE TO
28 THE GENERAL PUBLIC AND IS NOT UNDER THE CONTROL OF A PRIVATE
29 FIRM] OWNED BY A GOVERNMENTAL ENTITY.
30 "SECRETARY." THE SECRETARY OF COMMERCE.
19860S1468B2299 - 9 -
1 "SMALL COMMUNITY." A MUNICIPALITY WITH A POPULATION OF
2 50,000 OR LESS.
3 SECTION 4. GRANT AND LOAN PROCEDURE.
4 (A) PRIVATE COMPANY COMMITMENTS.--AN APPLICATION FOR A GRANT
5 OR LOAN SHALL BE INITIATED BY A PRIVATE COMPANY WHICH SHALL
6 SUBMIT A LETTER OF INTENT OR SIGNED CONTRACTUAL AGREEMENT TO
7 LOCATE, EXPAND OR BUILD A FACILITY TO A LOCAL SPONSOR WHOSE
8 JURISDICTION INCLUDES, AT LEAST IN PART, THE SITE OF THE
9 FACILITY. THE LETTER OF INTENT SHALL INCLUDE:
10 (1) A COMMITMENT THAT THE PROPOSED FACILITY WILL CREATE
11 A MINIMUM OF TEN NET NEW FULL-TIME EQUIVALENT JOBS, WILL
12 CREATE AT LEAST A 4% INCREASE IN FULL-TIME EQUIVALENT JOBS IN
13 THE CASE OF EXPANSION OF AN ENTERPRISE ALREADY LOCATED AT THE
14 SITE, OR AT LEAST A [25%] 10% INCREASE IN FULL-TIME
15 EQUIVALENT JOBS PURSUANT TO SECTION 7(H) AND WILL CREATE AT
16 LEAST ONE NET NEW FULL-TIME EQUIVALENT JOB FOR EVERY $15,000
17 EITHER LOANED OR GRANTED FOR THE [PROJECT] INFRASTRUCTURE
18 IMPROVEMENTS.
19 (2) A STATEMENT OF INTENTION TO OWN OR OPERATE THE
20 FACILITY FOR A MINIMUM OF FIVE YEARS.
21 (3) A STATEMENT THAT THE SPECIFIC INFRASTRUCTURE
22 IMPROVEMENTS ARE NECESSARY FOR THE EFFICIENT AND COST-
23 EFFECTIVE OPERATION OF THE PROPOSED BUSINESS OR INDUSTRY,
24 TOGETHER WITH SUPPORTING FINANCIAL AND ENGINEERING
25 DOCUMENTATION.
26 (4) A NOTARIZED STATEMENT OF WILLINGNESS TO GRANT THE
27 LOCAL SPONSOR A LIEN ON THE FACILITY OR PORTION OF THE
28 FACILITY FOR WHICH THE INFRASTRUCTURE IS BEING PROVIDED, OR
29 OTHER SECURITY, UP TO THE AMOUNT OF [THE COST OF] THE LOAN,
30 [INCLUDING PRINCIPAL AND INTEREST DUE AND OWING TO THE DATE
19860S1468B2299 - 10 -
1 OF FORECLOSURE AND ANY PENALTY IMPOSED BY THE SECRETARY,
2 REQUIRED TO PROVIDE THE INFRASTRUCTURE,] WHICH LIEN MAY BE
3 FORECLOSED IN THE EVENT THAT THE PRIVATE COMPANY FAILS TO OWN
4 OR OPERATE IN THE FACILITY FOR AT LEAST FIVE YEARS.
5 (B) APPLICATION TO THE DEPARTMENT.--UPON RECEIPT OF THE
6 REQUEST FOR ASSISTANCE FROM A PRIVATE COMPANY, THE LOCAL SPONSOR
7 MAY APPLY TO THE DEPARTMENT FOR A LOAN OR GRANT. THE APPLICATION
8 FROM THE LOCAL SPONSOR SHALL INCLUDE, BUT NOT BE LIMITED TO:
9 (1) A STATEMENT OF THE PURPOSE OF THE PROPOSED LOAN OR
10 GRANT, INCLUDING A LIST OF ELIGIBLE ITEMS AND THE COST OF
11 EACH.
12 (2) A STATEMENT SHOWING THE SOURCES OF FUNDING FOR THE
13 ENTIRE PROJECT, INCLUDING THE PRIVATE COMPANY'S INVESTMENT IN
14 [THE] SUCH PROJECT AND ANY PUBLIC AND OTHER PRIVATE SOURCES
15 OF FUNDING.
16 (3) A CONTRACTUAL AGREEMENT OR SIGNED LETTER OF INTENT
17 FROM A PRIVATE [FIRM] COMPANY, AS SPECIFIED IN THIS SECTION.
18 (4) EVIDENCE THAT THERE WILL BE A PRIVATE MATCH [IN THE
19 FOLLOWING AMOUNTS:
20 (I) AT] OF AT LEAST $2 FOR EVERY $1 OF STATE
21 ASSISTANCE.[, IF THE ASSISTANCE REQUESTED IS $500,000 OR
22 LESS.
23 (II) AT LEAST $3 FOR EVERY $1 OF STATE ASSISTANCE,
24 IF THE ASSISTANCE REQUESTED IS GREATER THAN $500,000 BUT
25 NOT GREATER THAN $1,000,000.
26 (III) AT LEAST $4 FOR EVERY $1 OF STATE ASSISTANCE
27 IF THE ASSISTANCE REQUESTED IS GREATER THAN $1,000,000
28 BUT NOT GREATER THAN $1,500,000.]
29 (5) DEMONSTRATION THAT THE PRIVATE [FIRM] COMPANY IS
30 FINANCIALLY SOUND AND IS LIKELY TO FULFILL THE COMMITMENTS
19860S1468B2299 - 11 -
1 MADE IN ITS LETTER OF INTENT.
2 (6) A PROPOSED TIMETABLE FOR THE PROVISION OF THE
3 INFRASTRUCTURE IMPROVEMENTS.
4 (7) EVIDENCE THAT THE PROJECT WILL BE EXPEDITIOUSLY
5 CARRIED OUT AND COMPLETED AS PLANNED.
6 (8) A DEMONSTRATION THAT INSUFFICIENT LOCAL CAPITAL
7 IMPROVEMENT FUNDS AT REASONABLE RATES AND TERMS ARE AVAILABLE
8 WITHIN THE NECESSARY TIME TO PROVIDE THE NEEDED
9 INFRASTRUCTURE IMPROVEMENT ON PUBLIC PROPERTY. THIS INCLUDES
10 LOCAL FUNDS AVAILABLE THROUGH ISSUANCE OF BONDS OR OTHER
11 MEANS, STATE FUNDS AVAILABLE THROUGH EXISTING PROGRAMS AND
12 AVAILABLE FEDERAL PROGRAM FUNDS SUCH AS COMMUNITY DEVELOPMENT
13 BLOCK GRANT FUNDS, URBAN DEVELOPMENT ACTION GRANT FUNDS AND
14 ECONOMIC DEVELOPMENT ADMINISTRATION FUNDS.
15 (9) A DEMONSTRATION THAT INSUFFICIENT PRIVATE FUNDS ARE
16 AVAILABLE AT REASONABLE RATES AND TERMS WITHIN THE NECESSARY
17 TIME TO FUND INFRASTRUCTURE IMPROVEMENTS ON PROPERTY OWNED BY
18 THE PRIVATE COMPANY.
19 (10) EVIDENCE OF CONSISTENCY WITH LOCAL AND AREAWIDE
20 ECONOMIC DEVELOPMENT PLANS WHERE SUCH EXIST.
21 * * *
22 SECTION 5. LOAN REPAYMENT.
23 THE DEPARTMENT SHALL ESTABLISH SUCH GUIDELINES, RULES AND
24 REGULATIONS FOR THE REPAYMENT OF FUNDS LOANED PURSUANT TO THIS
25 ACT AS MAY BE NECESSARY. THESE PROVISIONS SHALL INCLUDE, BUT NOT
26 BE LIMITED TO, THE FOLLOWING:
27 (1) FUNDS MAY BE LENT FOR A MAXIMUM OF TEN YEARS OR THE
28 ESTIMATED USEFUL LIFE OF THE PROPERTY, AS ESTABLISHED BY THE
29 UNITED STATES DEPARTMENT OF TREASURY, WHICHEVER IS GREATER.
30 (2) THE RATE OF INTEREST CHARGED BY THE DEPARTMENT FOR
19860S1468B2299 - 12 -
1 INFRASTRUCTURE NOT ON PUBLICLY OWNED PROPERTY SHALL BE NO
2 [LESS] MORE THAN ONE-HALF OF THE INTEREST RATE ON THE BONDS
3 SOLD PURSUANT TO THE ACT OF JULY 2, 1984 (P.L.512, NO.104),
4 KNOWN AS THE PENNSYLVANIA ECONOMIC REVITALIZATION ACT. IN
5 AREAS OF THE COMMONWEALTH INCLUDED IN THE CRITERIA IN SECTION
6 6, THE INTEREST RATE SHALL BE NO MORE THAN ONE-QUARTER OF THE
7 INTEREST RATE ON THE BONDS SOLD PURSUANT TO THE PENNSYLVANIA
8 ECONOMIC REVITALIZATION ACT.
9 (3) FOR ALL INFRASTRUCTURE IMPROVEMENTS FUNDED THROUGH
10 THIS ACT WHICH OCCUR ON PUBLICLY OWNED PROPERTY, REPAYMENT OF
11 FUNDS LOANED WILL INVOLVE ONLY THE PRINCIPAL AMOUNT LOANED
12 AND NO INTEREST WILL BE CHARGED AGAINST THE FUNDS MADE
13 AVAILABLE.
14 (4) NO LOAN SHALL EXCEED $1,500,000.
15 SECTION 6. GRANTS.
16 GRANTS FOR INFRASTRUCTURE ON PUBLICLY OWNED PROPERTY
17 NECESSARY TO COMPLETE ELIGIBLE PROJECTS, CONSISTENT WITH THE
18 CRITERIA SET FORTH IN THIS ACT, SHALL BE PERMITTED ONLY IN
19 ENTERPRISE DEVELOPMENT AREAS DESIGNATED AS SUCH BY THE SECRETARY
20 OF THE DEPARTMENT OF COMMUNITY AFFAIRS, OR IN THOSE
21 MUNICIPALITIES WHICH [ARE EXPERIENCING THREE OR MORE OF THE
22 FOLLOWING PROBLEMS:
23 (1) TWENTY PERCENT OR MORE OF THE POPULATION WITH
24 INCOMES BELOW THE POVERTY LEVEL AS REPORTED IN THE LATEST
25 DECENNIAL CENSUS.
26 (2) FIFTEEN PERCENT OR MORE OF THE LABOR FORCE IS
27 UNEMPLOYED AS REPORTED IN THE CENSUS OF 1980 OR AS REPORTED
28 IN A SURVEY DONE BY THE MUNICIPALITY.
29 (3) FIVE PERCENT OR MORE LOSS OF POPULATION BETWEEN 1970
30 AND 1980 AS REPORTED BY THE BUREAU OF THE CENSUS OF THE
19860S1468B2299 - 13 -
1 UNITED STATES DEPARTMENT OF COMMERCE.
2 (4) SIGNIFICANT BUSINESS VACANCY RATE WITHIN THE AREA,
3 EITHER IN GROSS FOOTAGE OR ACREAGE OR IN THE NUMBER OF
4 BUSINESS OR INDUSTRIAL BUILDINGS.
5 (5) SIGNIFICANT REDUCTION IN EMPLOYMENT SINCE 1977.] ARE
6 DESIGNATED, ON JULY 1 OF EACH YEAR, BY THE SECRETARY OF
7 COMMERCE AS BEING DISTRESSED.
8 SECTION 7. SPECIAL PROVISIONS.
9 (A) LIMIT ON GRANTS AND LOANS TO PARTICULAR
10 MUNICIPALITIES.--NO MORE THAN 10% OF FUNDS APPROPRIATED PURSUANT
11 TO THIS ACT IN ANY FISCAL YEAR SHALL BE LOANED OR GRANTED TO
12 LOCAL SPONSORS IN A PARTICULAR MUNICIPALITY.
13 (B) [LIMIT ON GRANTS FOR INFRASTRUCTURE ON PUBLICLY OWNED
14 PROPERTY.--IN NO CASE SHALL MORE THAN 10% OF THE FUNDS
15 APPROPRIATED IN ANY STATE FISCAL YEAR PURSUANT TO THIS ACT BE
16 UTILIZED AS SPECIFIED IN SECTION 6, NOR SHALL ANY MUNICIPALITY
17 RECEIVE MORE THAN ONE GRANT IN ANY SINGLE FISCAL YEAR.
18 (C) MINIMUM ALLOCATION TO SMALL COMMUNITIES.--A MINIMUM OF
19 25% OF THE GRANTS AND LOANS ISSUED PURSUANT TO THIS ACT SHALL BE
20 ALLOCATED TO SMALL COMMUNITIES.
21 (D) EVIDENCE OF ELIGIBILITY.--NO LOAN OR GRANT SHALL BE MADE
22 WITHOUT SUBSTANTIATION OF THE PROVISIONS OF SECTION 4.
23 (E)] LIENS.--FUNDS LOANED WILL BE SECURED BY LIEN POSITIONS
24 ON COLLATERAL AT THE HIGHEST LEVEL OF PRIORITY THE DEPARTMENT
25 DETERMINES FEASIBLE TO ACCOMMODATE THE PROJECT, CONSISTENT WITH
26 SECTION 4(A)(4).
27 [(F)] (C) PENALTY.--PRIVATE COMPANIES WHICH FAIL TO CREATE
28 THE NUMBER OF JOBS SPECIFIED IN AN APPROVED APPLICATION SHALL BE
29 LIABLE FOR A PENALTY EQUAL TO AN INCREASE IN THE INTEREST
30 CHARGED TO 2% GREATER THAN THE CURRENT PRIME INTEREST RATE FOR
19860S1468B2299 - 14 -
1 THE REMAINDER OF THE LOAN, UNLESS THE PENALTY IS WAIVED BY THE
2 SECRETARY BECAUSE THE FAILURE IS DUE TO CIRCUMSTANCES OUTSIDE
3 THE CONTROL OF THE PRIVATE COMPANY. THE PENALTY SHALL BE PAYABLE
4 IN INSTALLMENTS WHICH THE SECRETARY DEEMS APPROPRIATE. IMMEDIATE
5 NOTICE OF PENALTIES AND WAIVERS OF PENALTIES, INCLUDING THE
6 PENALTIES IN SECTION 4(A)(4), WITH THE REASONS THEREOF, SHALL BE
7 SUBMITTED BY THE SECRETARY TO THE CHIEF CLERK OF THE HOUSE OF
8 REPRESENTATIVES AND TO THE SECRETARY OF THE SENATE, ALONG WITH
9 THE SECRETARY'S DECISION ON THE IMPOSITION OF PENALTIES AND THE
10 REASONS FOR THIS DECISION.
11 [(G)] (D) WITHHOLDING OF LIQUID FUEL TAX ALLOCATION.--
12 MUNICIPALITIES RECEIVING INTEREST FREE LOANS WHICH FAIL TO MEET
13 THEIR REPAYMENT OBLIGATIONS SHALL HAVE ALL OR PART OF THEIR
14 LIQUID FUEL TAX ALLOCATION WITHHELD OR OTHER PENALTIES, AS THE
15 DEPARTMENT MAY PRESCRIBE. THE SECRETARY SHALL IMMEDIATELY GIVE
16 THE NAME OF THE MUNICIPALITY AND THE REASONS FOR, AND AMOUNT OF,
17 THE PENALTY TO BOTH THE CHIEF CLERK OF THE HOUSE OF
18 REPRESENTATIVES AND THE SECRETARY OF THE SENATE.
19 [(H)] (E) RELOCATION; JOB INCREASE.--THIS ACT IS EXPRESSLY
20 NOT INTENDED TO ENCOURAGE THE RELOCATION OF A COMPANY FROM ONE
21 JURISDICTION WITHIN THE COMMONWEALTH TO ANOTHER. ANY REQUEST BY
22 A LOCAL SPONSOR FOR ASSISTANCE TO BE PROVIDED A FIRM WHICH
23 CURRENTLY OPERATES A SIMILAR BUSINESS IN THE COMMONWEALTH MUST
24 BE ACCOMPANIED BY A DEMONSTRATION THAT THE TOTAL NET INCREASE IN
25 FULL-TIME EQUIVALENT JOBS, USING THE CURRENT NUMBER OF JOBS IN
26 ALL SIMILAR BUSINESSES OPERATED BY THE PRIVATE COMPANY IN THE
27 COMMONWEALTH AS A BASE, SHALL BE AT LEAST 10%. THIS REQUIREMENT
28 SHALL NOT APPLY TO PRIVATE COMPANIES RELOCATING FROM SMALL
29 BUSINESS INCUBATORS.
30 SECTION 2. SECTION 9 OF THE ACT IS REPEALED.
19860S1468B2299 - 15 -
1 SECTION 3. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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