THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY FONTANA, COSTA, TARTAGLIONE, SOLOBAY, HUGHES, BOSCOLA, WOZNIAK, YUDICHAK, BREWSTER, FARNESE AND KASUNIC, MARCH 28, 2011

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, MARCH 28, 2011  

AN ACT

Amending Title 64 (Public Authorities and Quasi-Public

Corporations) of the Pennsylvania Consolidated Statutes,

further providing for revolving loan program accounts, for

indebtedness, for Business in Our Sites Program and for First

Industries Program; and making a transfer.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 1542, 1543(a) and (b), 1551 and 1552(b),

(c) and (f) of Title 64 of the Pennsylvania Consolidated

Statutes are amended to read:

§ 1542.  Revolving loan program accounts.

(a)  The Business in Our Sites Program account.--The

authority shall establish an account for the program established

in section 1551 (relating to Business in Our Sites Program).

Proceeds of bonds issued to fund the Business in Our Sites

Program and any moneys received as loan repayments under the

Business in Our Sites Program, or moneys otherwise made

available to the program, shall be deposited in the account and

made available for additional [planning grants,] project grants

or loans for the purposes of the program in section 1551,

subject to the provisions of any pledge to or agreement made by

the authority with obligees of the authority.

(b)  The First Industries Program account.--The authority

shall establish an account for the program established in

section 1552 (relating to First Industries Program). Proceeds of

bonds issued to fund the First Industries Program, any moneys

received as loan repayments or in repayment or recovery of loan

guarantees under the program, or moneys otherwise made available

to the program, shall be deposited in the account and made

available for additional [planning grants or] loans or used for

additional loan guarantees as provided in section 1552, subject

to the provisions of any pledge to or agreement made by the

authority with obligees of the authority.

§ 1543.  Indebtedness.

(a)  General rule.--Subject to the limitations of subsection

(b), the authority may, in its own name, incur indebtedness,

including through the issuance of bonds, in an amount necessary

to fund the [program as] programs established in Subchapter E

(relating to programs) and in 12 Pa.C.S. Ch. 29 (relating to

machinery and equipment loans).

(b)  Program limitations.--Indebtedness incurred by the

authority under subsection (a) shall not, in aggregate, exceed

any of the following:

(1)  [$300,000,000] $375,000,000 for the program

established in section 1551 (relating to Business in Our

Sites Program).

(2)  $150,000,000 for the program established in section

1552 (relating to First Industries Program).

(3)  $60,000,000 for the program established in section

1557 (relating to New Pennsylvania Venture Capital Investment

Program).

(4)  $150,000,000 for the program established in section

1555 (relating to Building Pennsylvania Program).

(5)  $75,000,000 for the program established in 12

Pa.C.S. Ch. 29.

(6)  $250,000,000 for the program established in section

1554 (relating to New Pennsylvania Venture Guarantee

Program).

(7)  [$100,000,000] $50,000,000 for the program

established in section 1556 (relating to Tax Increment

Financing Guarantee Program).

(8)  $50,000,000 for the program established in section

1553 (relating to Second Stage Loan Program).

* * *

§ 1551.  Business in Our Sites Program.

(a)  Establishment.--There is established a program to be

known as the Business in Our Sites Program. The program shall

provide financial assistance for the preparation of sites

located within this Commonwealth for future development.

(b)  [Applications for planning grants.--A municipality,

municipal authority, redevelopment authority or industrial

development agency may submit an application to the authority

requesting a planning grant for costs associated with

predevelopment activities and feasibility studies for a project.

The application shall be on the form required by the board and

shall include or demonstrate all of the following:

(1)  The applicant's name and address.

(2)  The location of the project.

(3)  A statement that the project is consistent with any

existing comprehensive county plan where the project is

located.

(4)  A description of the project which includes a

statement that:

(i)  the project is for the redevelopment, reuse or

revitalization of previously developed land, including

previously mined areas; or

(ii)  the project is for the development of

undeveloped land which may be the subject of future

development pursuant to any existing comprehensive

municipal plan.

(5)  An estimate of the cost of the predevelopment

activities and feasibility studies.

(6)  A statement of the amount of the planning grant

sought.

(7)  Any other information required by the board]

(Reserved).

(c)  [Review and approval of planning grant applications.--

(1)  The board shall review the application. Upon being

satisfied that all requirements have been met, the board may

approve the application and, if approved, the authority shall

award a planning grant.

(2)  Copies of all reports and studies prepared with

planning grant funds shall be filed with the authority and

shall be made available to any person upon request]

(Reserved).

(d)  Applications for project financing.--A municipality,

municipal authority, redevelopment authority or industrial

development agency may submit an application to the authority

requesting a loan or a combination of a loan and project grant

for a project. A private developer may submit an application to

the board requesting a loan for a project. The application shall

be on the form required by the board and shall include or

demonstrate all of the following:

(1)  The applicant's name and address.

(2)  The location of the project.

(3)  A statement that the project is consistent with any

existing comprehensive county plan where the project is

located.

(4)  A description of the project which includes a

statement that:

(i)  the project is for the redevelopment, reuse or

revitalization of previously developed land, including

previously mined areas; or

(ii)  the project is for the development of

undeveloped land which may be the subject of future

development pursuant to any existing comprehensive

municipal plan and is zoned for such development at the

time of application.

(5)  An estimate of the cost of the project, prepared by

an engineer or other qualified professional.

(6)  A statement of the amount of the loan or combined

loan and project grant sought. If the applicant is requesting

a project grant, a statement as to the financial necessity

for the project grant must be included.

(7)  Proof that notification of the project has been sent

to the governing bodies of the county or counties and of the

municipality or municipalities in which the project is

located.

(8)  Any other information required by the board.

(e)  Review of project financing applications.--The board

shall review the application to determine all of the following:

(1)  That the project is consistent with any existing

comprehensive county plan where the project is located.

(2)  That the project is the redevelopment, reuse or

revitalization of previously developed land, including

previously mined areas, or that the project is the

development of undeveloped land which may be the subject of

future development pursuant to any existing comprehensive

municipal plan and is zoned for such development at the time

of application.

(3)  That the value of the proposed collateral and the

financial resources offered by the applicant are sufficient

to repay the loan.

(4)  That there is a substantial likelihood the land or

buildings will be used upon project completion.

(5)  That the project will enable future employment

opportunities in or have a net positive economic impact on

the surrounding community.

(6)  That the statement of the estimated cost of the

project is reasonable.

(7)  That the applicant complied with all other criteria

established by the board.

(f)  Approval of project financing applications.--Upon being

satisfied that all requirements have been met, the board may

approve the application, and, if approved, the authority shall

award a loan or a combination of a loan and project grant to be

used for costs of the project. A combined loan and project grant

may be awarded only if the board finds that the value of the

proposed collateral and the financial resources offered by the

applicant are not sufficient to repay a loan in the amount of

the total project cost.

(g)  Limitations.--

(1)  [A planning grant awarded for a project under

section (c) shall not exceed $250,000. No more than

$10,000,000 of the funds made available for the program

authorized by this section may be used for planning grants]

(Reserved).

(2)  A project grant awarded under subsection (f) shall

not exceed 50% of the total amount of financing awarded by

the board for the project or $5,000,000, whichever is less.

No more than one-third of the funds made available for the

program authorized by this section may be used for all

project grants.

(3)  No more than 15% of the funds made available for the

program authorized by this section may be awarded for

projects located within any one city, town, borough or

township of this Commonwealth.

(4)  The anticipated use of the land or buildings may not

be primarily residential or primarily recreational.

(5)  A project grant may be used only for one or more of

the following purposes:

(i)  Environmental assessment and remediation.

(ii)  Site preparation, including earth moving

activities.

(iii)  Demolition of structures.

(iv)  Installation or rehabilitation of

infrastructure.

(v)  Reimbursement of engineering and administrative

expenses associated with any of the activities listed in

subparagraphs (i) through (iv).

§ 1552.  First Industries Program.

* * *

(b)  [Applications for planning grants.--An applicant may

submit an application to the authority requesting a planning

grant in an amount not to exceed $250,000 for the costs of

predevelopment activities and feasibility studies for a project

related to tourism or agriculture. The application shall be on

the form required by the board and shall include or demonstrate

all of the following:

(1)  The applicant's name and address.

(2)  The location of the project.

(3)  A description of the project.

(4)  An estimate of the cost of the predevelopment

activities and feasibility studies and the goal to be

achieved by carrying out the proposed activities or studies.

(5)  A statement of the amount of the planning grant

sought.

(6)  Any other information required by the board]

(Reserved).

(c)  [Review and approval of planning grant applications.--

(1)  The board shall review the application to determine

that the project demonstrates one or more of the following:

(i)  The project will have a demonstrable impact on

the economy or well-being of the neighborhood, community

or region where the project will be located.

(ii)  The project will promote research and

development efforts leading to increased

commercialization or utilization of farm commodities.

(iii)  The project will result in environmentally

friendly or energy efficient operations related to

agriculture, including projects authorized by the act of

December 12, 1994 (P.L.888, No.128), known as the

Agricultural By-Product Management Technology Act.

(iv)  The project will result in more cost-effective

and efficient marketing of regional assets related to

tourism or agriculture.

(v)  The project will result in a substantial

increase in revenues for the Commonwealth or the host

municipality.

(vi)  The project proposes to utilize Commonwealth-

owned natural resources for public/private development of

tourism.

(2)  Upon being satisfied that the requirements of

paragraph (1) have been met, the board may approve the

application, and, if approved, the authority shall award a

planning grant.

(3)  Copies of all reports and studies prepared with

planning grant funds shall be filed with the authority and

shall be made available to any person upon request]

(Reserved).

* * *

(f)  Limitations.--

(1)  [No more than $10,000,000 of the funds available for

the program authorized by this section may be used for

planning grants awarded under subsection (c)] (Reserved).

(2)  At least two-thirds of the funds available for the

program authorized by this section shall be used for

financing of projects related to agriculture.

Section 2.  The sum of $50,000,000 is transferred from the

Tax Increment Financing Guarantee Program to the Business in Our

Sites Program.

Section 3.  This act shall take effect in 60 days.