PRIOR PRINTER'S NOS. 2007, 2170, 2227,        PRINTER'S NO. 2320
        2299

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1468 Session of 1986


                     Report of the Committee of Conference

        To the Members of the Senate and House of Representatives:

           We, the undersigned, Committee of Conference on the part of
        the Senate and House of Representatives for the purpose of
        considering Senate Bill No. 1468, entitled:
        "An act * * * AMENDING THE ACT OF JULY 2, 1984 (P.L.520,
        NO.105), ENTITLED 'AN ACT ESTABLISHING A BUSINESS INFRASTRUCTURE
        DEVELOPMENT PROGRAM FOR MAKING GRANTS AND LOANS FOR
        INFRASTRUCTURE NECESSARY TO COMPLEMENT INDUSTRIAL OR COMMERCIAL
        INVESTMENT BY PRIVATE COMPANIES; * * * AND MAKING AN
        APPROPRIATION,' FURTHER PROVIDING FOR GRANT AND LOAN PROCEDURES,
        THE CONDITIONS OF LOANS AND THE MUNICIPALITIES WHERE GRANTS MAY
        BE MADE; AND REMOVING PROVISIONS RELATING TO GUIDELINES AND
        REGULATIONS,"

        respectfully submit the following bill as our report:

                                           TIM SHAFFER

                                           DAVID J. BRIGHTBILL

                                           MARK S. SINGEL

                                  (Committee on the part of the Senate.)

                                           JAMES J. MANDERINO

                                           MAX PIEVSKY

                                           JESS STAIRS

                (Committee on the part of the House of Representatives.)




                                     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.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Community."  A municipality, including counties, cities,
    15  boroughs, incorporated towns, townships, home rule
    16  municipalities and councils of local government.
    17     "Department."  The Department of Commerce of the
    18  Commonwealth.
    19     "Distressed communities."  Communities which are designated
    20  as distressed under the act of July 2, 1984 (P.L.520, No.105),
    21  known as the Business Infrastructure Development Act.
    22     "Local development agency."  Any municipality or any
    23  industrial and commercial authority organized pursuant to or
    24  industrial development company as certified by the department
    25  pursuant to the act of August 23, 1967 (P.L.251, No.102), known
    26  as the Industrial and Commercial Development Authority Law; any
    27  council of government organization or any multimunicipal agency
    28  organization created pursuant to the act of July 12, 1972
    29  (P.L.762, No.180), referred to as the Intergovernmental


     1  Cooperation Law; any municipal authority organization pursuant
     2  to the act of May 2, 1945 (P.L.382, No.164), known as the
     3  Municipality Authorities Act of 1945; any redevelopment
     4  authority organized pursuant to the act of May 24, 1945
     5  (P.L.991, No.385), known as the Urban Redevelopment Law; and any
     6  local development district of the Appalachian Regional
     7  Commission.
     8     "Secretary."  The Secretary of Commerce of the Commonwealth.
     9  Section 3.  Program establishment.
    10     There is hereby established, under the direction of the
    11  department, a program to be known as the Community Economic
    12  Recovery Program.
    13  Section 4.  Eligibility.
    14     (a)  General rule.--Applicants eligible to receive grants are
    15  local development agencies. Preference shall be given to
    16  areawide and regional consortium applications.
    17     (b)  Applications.--Applicants must submit an application, in
    18  a form and manner prescribed by the secretary, demonstrating the
    19  need for developing a local economic recovery strategy and
    20  describing a plan for developing such a strategy.
    21  Section 5.  Use of funds.
    22     (a)  General rule.--Grant funds shall be used to help develop
    23  the local capacity to plan and to implement an economic recovery
    24  strategy. Funding may be used for activities including, but not
    25  limited to, the following:
    26         (1)  Identifying existing industries within the community
    27     which may be in danger of leaving the area, and encouraging
    28     the retention of these industries.
    29         (2)  Identifying growth industries, and developing plans
    30     for encouraging the expansion of such industries within the
    19860S1468B2320                  - 2 -

     1     community.
     2         (3)  Analyzing the job skills of the unemployed labor
     3     force and reviewing existing job training programs in order
     4     to make recommendations on the upgrading of the skills of the
     5     unemployed labor force.
     6         (4)  Itemizing infrastructure improvements necessary for
     7     job creation.
     8         (5)  Cataloging the services of local economic
     9     development agencies and ensuring that these agencies have
    10     qualified personnel with knowledge of State and local
    11     programs.
    12         (6)  Listing those areas in which the community has a
    13     particular advantage over other locations, both inside and
    14     outside this Commonwealth.
    15         (7)  Listing those areas in which the community is at a
    16     disadvantage when attracting private capital, along with
    17     making recommendations for alleviating these problems.
    18         (8)  Working with businesses and other organizations to
    19     encourage the retention of existing jobs, the expansion of
    20     existing firms and the attraction of new businesses, with
    21     emphasis on projects that will help diversify the community's
    22     economic base.
    23     (b)  Report.--A final report shall be submitted to the
    24  department within one year of the award of funds and shall
    25  include, as a minimum, a summary of the analyses performed and
    26  the businesses assisted and a detailed list of locally supported
    27  programs or projects planned, designed or implemented as part of
    28  the local economic recovery strategy.
    29  Section 6.  Grant conditions.
    30     Grants shall meet the following conditions:
    19860S1468B2320                  - 3 -

     1         (1)  Individual grants shall not exceed $100,000.
     2         (2)  No more than one grant per municipality shall be
     3     awarded in any one State fiscal year.
     4  Section 7.  Application procedures.
     5     (a)  Form.--Applications for the Community Economic Recovery
     6  Program funds shall be made to the department, in a form and
     7  manner prescribed by the secretary.
     8     (b)  Coordination.--The department may require that local
     9  development districts or counties coordinate the efforts of the
    10  various municipalities within their region to insure that
    11  communities are not duplicating grant proposals, including
    12  encouraging adjacent jurisdictions that are individually
    13  applying for a grant to pool resources and submit a joint
    14  proposal, and encouraging those eligible jurisdictions not
    15  applying for a grant to cooperate with adjacent jurisdictions
    16  and apply for funding, if applicable.
    17     (c)  Contents of application.--The application shall contain
    18  the following:
    19         (1)  Documentation that the community or communities meet
    20     the eligibility criteria specified in this act.
    21         (2)  Justification of the need for State assistance in
    22     developing a local community economic recovery strategy.
    23         (3)  A description of the organization that will
    24     administer the funds and the reason why it can represent the
    25     area in its revitalization effort, including statements from
    26     other community groups in support of the application.
    27         (4)  A detailed description of the activities to be
    28     carried out using the funds.
    29         (5)  A letter from the elected officials in each
    30     municipality and county of the distressed area specifying
    19860S1468B2320                  - 4 -

     1     their support.
     2         (6)  Other information as specified by the department.
     3  Section 8.  Grant evaluation criteria.
     4     (a)  Analysis of application.--The department shall determine
     5  from the application whether the community is eligible for
     6  assistance and the proposed plan is likely to promote economic
     7  growth. If the department determines that the applicant is not
     8  qualified to develop a community economic recovery strategy, the
     9  department may attempt to aid the applicant to establish a group
    10  which is qualified, or to develop a revised plan which will best
    11  carry out the purpose of revitalizing the particular community.
    12     (b)  Criteria.--In addition, in evaluating applications for
    13  grants, the department shall consider the following specific
    14  criteria:
    15         (1)  Community support and cooperation, including the
    16     degree of public and private matching commitments.
    17         (2)  The degree of areawide or multicommunity
    18     involvement, including the total population to be served by
    19     the grant.
    20         (3)  Identification of critical economic needs or
    21     opportunities.
    22         (4)  Consistency of the proposal with State economic
    23     development strategies, goals or objectives.
    24         (5)  Other criteria as established by the department as
    25     necessary to achieve the purposes of this act.
    26  Section 9.  Yearly report.
    27     By March 1, of each year, the board shall provide a written
    28  report of the assistance provided under this act to the
    29  Governor, the Chief Clerk of the House of Representatives and
    30  the Secretary of the Senate. This report shall contain, at a
    19860S1468B2320                  - 5 -

     1  minimum, the following:
     2         (1)  The community group and amount of each assistance
     3     project approved under this act, and the same information for
     4     those applicants not receiving funding.
     5         (2)  A narrative description of each assistance project
     6     provided under this act.
     7         (3)  Recommendations for changes to this and any other
     8     State program which would enable the program to more
     9     effectively serve distressed areas of this Commonwealth.
    10         (4)  Any reports received by the department under section
    11     5(b).
    12  Section 10.  Additional powers and duties of department.
    13     The department may prescribe such application forms,
    14  promulgate and publish rules, regulations, procedures and
    15  application manuals, and request such information as may be
    16  necessary to carry out the provisions of this act.
    17  Section 11.  Effective date.
    18     This act shall take effect immediately.








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