No. 1440 Session of 1991

           NOVEMBER 20, 1991


                                     AN ACT

     1  Appropriating money from the Sunny Day Fund to the Department of
     2     Commerce for various projects throughout this Commonwealth
     3     for fiscal year 1991-1992.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  The sums set forth in this act, or as much
     7  thereof as may be necessary, are hereby specifically
     8  appropriated from the Sunny Day Fund to the Department of
     9  Commerce for this fiscal year July 1, 1991, to June 30, 1992,
    10  for the projects listed to enhance economic development and the
    11  creation of jobs in this Commonwealth in accordance with the
    12  provisions of Chapter 1 of the act of July 1, 1985 (P.L.120,
    13  No.32), known as the Sunny Day Fund Act.
    14     Section 2.  The following amounts are appropriated to the
    15  Department of Commerce to induce companies to locate large
    16  industrial, manufacturing or research and development
    17  enterprises within this Commonwealth:
    18         (1)  For the purpose of making a loan to

     1     Little Tikes Company, a wholly owned subsidiary
     2     of Rubbermaid, Inc., to establish a rotation
     3     molding toy facility in Southampton Township,
     4     Cumberland County. It is estimated that this
     5     project will create 224 jobs within three years
     6     of operation.                                      $2,000,000
     7         (2)  For the purpose of making a loan to
     8     Astra/Merck, a joint venture of Merck &
     9     Company, Incorporated, and AB Astra, to
    10     establish a world headquarters office facility
    11     in Tredyffrin Township, Chester County. It is
    12     estimated that this project will create 300
    13     jobs at the site within three years of
    14     operation.                                          4,500,000
    15         (3)  For the purpose of making a loan to
    16     Plastek Industries, Inc., to establish a
    17     manufacturing facility in the City of Erie for
    18     new lines of plastic-injected molded products.
    19     It is estimated that this project will create
    20     500 new jobs within three years of operation.       4,500,000
    21     Section 3.  It is the intent of the General Assembly that the
    22  appropriations in section 2 shall be loaned at an annual
    23  interest rate that in no case shall be less than the
    24  Pennsylvania Industrial Development Authority's rate for the
    25  area in which the project is located and for a term that shall
    26  be no greater than the term for an equivalent Pennsylvania
    27  Industrial Development Authority project, each as of the date of
    28  enactment hereof. Private companies which receive Sunny Day Fund
    29  assistance but fail to make the investment in the enterprise
    30  development as specified in section 2 shall be liable for the
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     1  repayment of all Sunny Day Fund moneys, including any accrued
     2  interest thereon and any penalties as provided in the loan
     3  documents or as may be set by the Secretary of Commerce. Private
     4  companies which receive Sunny Day Fund assistance but fail to
     5  create the number of jobs specified in the approved loan or
     6  other agreements with the Commonwealth shall be liable for a
     7  penalty equal to an increase in the interest charged to 2%
     8  greater than the current prime interest rate for the remainder
     9  of the loan, unless the penalty is waived by the Secretary of
    10  Commerce because the failure is due to circumstances outside the
    11  control of the private company. The prime interest rate shall be
    12  the highest rate known or declared to be prime by those banking
    13  institutions located within this Commonwealth with assets in
    14  excess of $3,000,000,000 as of the date the penalty is assessed.
    15  The Secretary of Commerce shall consult with the Chairman of the
    16  Appropriations Committee of the Senate and the Chairman of the
    17  Appropriations Committee of the House of Representatives prior
    18  to the establishment of waiver of penalties.
    19     Section 4.  For a period equal to the term of assistance
    20  provided each project approved under this act, the Department of
    21  Commerce shall provide a written report on the status of each
    22  project to the Secretary of the Senate and the Chief Clerk of
    23  the House of Representatives by June 30 of each year. This
    24  report shall contain, at a minimum, information pertaining to
    25  the specific use of the Sunny Day Fund money, the interest rate
    26  and term of the Sunny Day Fund loan, the amount of principal
    27  outstanding and interest due on the loan and the number of jobs
    28  created by the project. All recipients of funds under this act
    29  shall be required to provide any and all information required by
    30  the Department of Commerce for the purpose of this act.
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     1     Section 5.  No funds under this act shall be awarded by the
     2  Department of Commerce after June 30, 1992. Any funds from this
     3  appropriation remaining unexpended or unencumbered on June 30,
     4  1993, shall automatically lapse into the Sunny Day Fund.
     5     Section 6.  This act shall take effect immediately.

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