PRINTER'S NO. 3712
No. 2503 Session of 2008
INTRODUCED BY GIBBONS, CALTAGIRONE, CAPPELLI, EACHUS, FRANKEL, GEORGE, HARKINS, McILHATTAN, SAINATO, SURRA, BIANCUCCI AND YUDICHAK, MAY 7, 2008
REFERRED TO COMMITTEE ON COMMERCE, MAY 7, 2008
AN ACT 1 Amending Title 12 (Commerce and Trade) of the Pennsylvania 2 Consolidated Statutes, providing for loans from the 3 Pennsylvania Industrial Development Authority. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Sections 2902, 2903, 2904 and 2905(a) of Title 12 7 of the Pennsylvania Consolidated Statutes are amended to read: 8 § 2902. Definitions. 9 The following words and phrases when used in this chapter 10 shall have the meanings given to them in this section unless the 11 context clearly indicates otherwise: 12 "Authority." The Pennsylvania Industrial Development 13 Authority established under the act of May 17, 1956 (1955 14 P.L.1609, No.537), known as the Pennsylvania Industrial 15 Development Authority Act. 16 "Business enterprise." A for-profit corporation, partnership 17 or proprietorship. The term includes a medical facility. 18 "Farm commodity." Any Pennsylvania-grown agricultural,
1 horticultural, aquacultural, vegetable, fruit and floricultural 2 product of the soil, livestock and meats, wools, hides, furs, 3 poultry, eggs, dairy products, nuts, mushrooms, honey products 4 and forest products. 5 "Fund." The Machinery and Equipment Loan Fund created and 6 established by this chapter. 7 "Medical facility." An entity licensed as a hospital under 8 the act of June 13, 1967 (P.L.31, No.21), known as the Public 9 Welfare Code, or the act of July 19, 1979 (P.L.130, No.48), 10 known as the Health Care Facilities Act. 11 "Normal agricultural operation." The term shall have the 12 same meaning as given to it in section 2 of the act of June 10, 13 1982 (P.L.454, No.133), entitled "An act protecting agricultural 14 operations from nuisance suits and ordinances under certain 15 circumstances." 16 "PIDA Act." The act of May 17, 1956 (1955 P.L.1609, No.537), 17 known as the Pennsylvania Industrial Development Authority Act. 18 "Production agriculture." The management and use of a normal 19 agricultural operation for the production of a farm commodity. 20 § 2903. Establishment. 21 There is established within the department a program to be 22 known as the Machinery and Equipment Loan Program. [The] Except 23 as otherwise provided in this chapter, the program shall be 24 administered by the department and provide loans to business 25 enterprises for machinery and equipment. 26 § 2904. Machinery and Equipment Loan Fund. 27 (a) Creation.--There is created a special account in the 28 Treasury Department, to be known as the Machinery and Equipment 29 Loan Fund, to which shall be credited all program appropriations 30 made by the General Assembly, all proceeds from loan repayments 20080H2503B3712 - 2 -
1 made through June 30, 2008, and any and all other deposits, 2 payments or contributions from any other source made available 3 to the fund. All proceeds from loan repayments made after June 4 30, 2008, shall be paid to the authority. The fund shall operate 5 as a revolving fund whereby all appropriations, payments and 6 interest made thereto may be applied and reapplied to the 7 purposes of this chapter. 8 (b) Credits to fund.--All appropriations, deposits and 9 contributions made to the fund shall be immediately credited in 10 full to the fund, and earnings on the moneys held in the fund 11 shall also be credited to the fund for the purposes of this 12 chapter. 13 (c) Transfers to the authority.--At the beginning of each 14 fiscal year commencing with the fiscal year beginning July 1, 15 2008, a portion of the unencumbered moneys in the fund, as 16 determined by the secretary, shall be transferred to the 17 authority. The authority may use such funds for any purpose 18 authorized under law. 19 § 2905. Eligibility for loans; terms and conditions. 20 (a) Loans; general rules.--The secretary may make advances 21 from the fund, subject to the terms, conditions and restrictions 22 provided under this chapter, for the purpose of making loans to 23 business enterprises involved in industrial processes, mining, 24 manufacturing, production agriculture, information technology, 25 biotechnology, service as a medical facility or other industrial 26 or technology sectors, as defined by the department, to acquire 27 and install new machinery and equipment or upgrade existing 28 machinery and equipment, including the acquisition, application 29 and utilization of computer hardware and software. 30 (1) All loans shall be subject to all of the following 20080H2503B3712 - 3 -
1 conditions: 2 (i) Be made to eligible business enterprises under 3 the provisions of this chapter. 4 (ii) Have a maximum loan ceiling of $5,000,000 or 5 50% of the cost of the project, whichever is less. 6 (iii) Be limited to the purchase and installation of 7 new equipment and machinery or the upgrade of existing 8 machinery and equipment. This subparagraph includes the 9 acquisition, application and utilization of computer 10 hardware and software. 11 (iv) Be limited to projects that demonstrate [the 12 creation or retention of one job for every $25,000 13 received from the fund] job creation or retention at a 14 rate determined by the department. This subparagraph does 15 not apply to loans made to business enterprises involved 16 in production agriculture or to loans made to medical 17 facilities. 18 (v) Have an interest rate which shall be established 19 by the secretary. 20 (vi) Have a term of [not in excess of] ten years or 21 less. 22 (2) For loans to medical facilities, loan funds may be 23 used only to finance the acquisition, installation and 24 utilization of machinery and equipment, including computer 25 hardware and software components, to be used in the 26 prescribing and dispensing of medication for medical facility 27 patients. 28 * * * 29 Section 2. Title 12 is amended by adding a section to read: 30 § 2913. Loans from authority. 20080H2503B3712 - 4 -
1 Prior to the review and investigation of an application 2 submitted under section 2906 (relating to application and 3 administration), the secretary may forward the application to 4 the authority to be reviewed and investigated by the authority 5 for a possible loan from the authority in lieu of a loan from 6 the department under this chapter. In addition to the powers of 7 the authority under the PIDA Act, the authority is hereby 8 authorized to make loans meeting the eligibility and other 9 requirements of this chapter. In such event, a recipient of any 10 such loan shall be subject to the requirements of this chapter 11 as though the secretary made the advances for the loan under 12 section 2905(a) (relating to eligibility for loans; terms and 13 conditions). Repayments of loans made by the authority with 14 funds transferred to the authority under section 2904(c) 15 (relating to Machinery and Equipment Loan Fund) shall be made 16 directly to the authority. 17 Section 3. This act shall take effect immediately. C14L12RLE/20080H2503B3712 - 5 -