1Requiring the Department of Community and Economic Development
2to submit a unified economic development budget report;
3providing for unified reporting of property tax reductions
4and abatements, for application for economic development
5subsidies, for reports, for subsidy limit and job quality
6standards, for recapture, for establishing a private
7enforcement action and for public record disclosure.

8The General Assembly finds and declares as follows:

9(1) Although the Commonwealth and its local government
10units have granted numerous economic development subsidies in
11the last 25 years, the real wage levels and health care
12coverage of working families have declined.

13(2) When workers receive low wages and poor benefits,
14there are often hidden taxpayer costs imposed on citizens, in
15the form of Medicaid, food stamps, earned income tax credits
16and other forms of public assistance to the working poor and
17their families.

18(3) Citizen participation in economic development has
19been impeded by a lack of readily accessible information

1regarding expenditures and outcomes.

2(4) When employers promise job creation and fail to
3deliver, the consequences of their broken promises are borne
4by local workers. When employers receive tax benefits in
5anticipation of creating jobs, they should be answerable for
6their failures.

7(5) Therefore, in order to improve the effectiveness of
8expenditures for economic development and to ensure that they
9achieve the goal of raising living standards for working
10families, it is necessary to collect, analyze and make
11publicly available information regarding those expenditures
12and to enact certain safeguards for their use.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. Short title.

16This act shall be known and may be cited as the Economic
17Development and Fiscal Accountability Act.

18Section 2. Definitions.

19The following words and phrases when used in this act shall
20have the meanings given to them in this section unless the
21context clearly indicates otherwise:

22"Affiliate" or "affiliated company." A person who directly 
23or indirectly, through one or more intermediaries, controls, is 
24controlled by or is under common control with a specified 
25person.

26"Association." A corporation, partnership, limited liability 
27company, business trust or two or more persons associated in a 
28common enterprise or undertaking. The term does not include a 
29testamentary trust or an inter vivos trust as defined in 20 
30Pa.C.S. § 711(3) (relating to mandatory exercise of jurisdiction 

1through orphans' court division in general).

2"Banking institution." A federally chartered or State-
3chartered banking institution.

4"Corporate parent." A person, association, corporation, 
5joint venture, partnership or other entity that owns or controls 
6at least 50% of a recipient corporation.

7"Corporation." A corporation for profit as defined in 15 
8Pa.C.S. § 102 (relating to definitions).

9"Credit union." A credit union as defined in 17 Pa.C.S. § 
10102 (relating to application of title).

11"Date of subsidy." Any of the following:

12(1) Except as otherwise provided in paragraph (2) or
13(3), the date that a granting body provides the initial
14monetary value of a development subsidy to a recipient
15corporation.

16(2) Where a development subsidy is for the installation
17of new equipment, the date a recipient corporation puts the
18equipment into service.

19(3) Where a development subsidy is for improvements to
20property, the date the improvements are finished or, if the
21improvements consist of new construction, the date the
22recipient corporation or other business entity occupies the
23property.

24"Department." The Department of Community and Economic 
25Development of the Commonwealth.

26"Development subsidy." An expenditure of public funds with a 
27value of at least $25,000 for the purpose of stimulating 
28economic development within this Commonwealth, including, but 
29not limited to a bond, grant, loan, loan guarantee, enterprise 
30zone, empowerment zone, Keystone Opportunity Zone, tax increment 

1financing, fee waiver, land price subsidy, matching fund, tax 
2abatement, tax exemption and tax credits.

3"Full-time job." A job in which an individual is employed by 
4a recipient corporation for at least 35 hours per week.

5"Granting body." An agency, board, commission, office, 
6public benefit corporation or authority of the Commonwealth or a 
7local government unit that provides a developmental subsidy.

8"Limited liability company." A domestic or foreign limited 
9liability company as defined in 15 Pa.C.S. § 102 (relating to 
10definitions).

11"Local government unit." An agency, board, commission, 
12office, public benefit corporation or public authority of a 
13political subdivision of the Commonwealth.

14"Other business entity." A banking institution, credit 
15union, insurance corporation, savings association, person, sole 
16proprietorship, association, joint venture, partnership, limited 
17liability company, public utility corporation or similar 
18business entity.

19"Part-time job." A job in which an individual is employed by 
20a recipient corporation for fewer than 35 hours per week.

21"Project site." The site of a project for which a 
22development subsidy is provided.

23"Property-taxing entity." An entity that levies taxes on 
24real or personal property.

25"Public utility corporation." A domestic or foreign 
26corporation for profit that is subject to regulation as a public 
27utility by the Pennsylvania Public Utility Commission or an 
28office or agency of the United States.

29"Recipient corporation." A person, association, corporation, 
30joint venture, partnership or other business entity that 

1receives a development subsidy.

2"Savings association." A domestic corporation for profit 
3that is an association as defined in the act of December 14, 
41967 (P.L.746, No.345), known as the Savings Association Code of 
51967.

6"Small business." A corporation or other business entity 
7that employs fewer than 20 full-time employees or has total 
8gross receipts of less than $1,000,000 during a calendar year. 
9For the purposes of determining full-time employees and total 
10gross receipts, if a business is a corporation, the full-time 
11employees and gross receipts of the corporate parent and all 
12subsidiaries thereof shall be included.

13"State agency." An agency, board, commission, office, public 
14corporation or public authority of the Commonwealth.

15"Subsidy value." The face value of development subsidies 
16provided to a recipient corporation.

17"Temporary job." A job in which an individual is hired for a 
18season or for a limited period of time.

19Section 3. Unified economic development budget report.

20The department shall submit an annual unified economic
21development budget report to the General Assembly no later than
22three months after the end of the Commonwealth's fiscal year.
23The report shall present all types of expenditures for economic
24development during the prior fiscal year, including, but not
25limited to:

26(1) The amount of uncollected State tax revenues
27resulting from every tax credit, abatement, exemption and
28reduction provided by the State government or a local
29governmental unit, including, but not limited to, gross
30receipts, corporate net income, personal income, sales, use,

1excise, property, utility, public utility realty, insurance
2premium, bank shares, mutual thrift institution, and capital
3stock and franchise taxes.

4(2) The name of each taxpayer that claimed any tax
5credit, abatement, exemption or reduction under paragraph (1)
6of any value equal to or greater than $5,000, together with
7the dollar amount received by each taxpayer.

8(3) Any tax credit, abatement, exemption or reduction
9received by a business entity of less than $5,000, which
10shall not be itemized. The Department of Revenue shall report
11an aggregate dollar amount of such expenditures and the
12number of business entities so aggregated for each tax
13expenditure.

14(4) All State-related expenditures for economic
15development, including line-item budgets for every State-
16funded entity concerned with economic development, including,
17but not limited to, the Department of Community and Economic
18Development, the Department of Labor and Industry, vocational
19education programs, State university research programs,
20manufacturing extension service, work force investment
21boards, industrial development authorities, regional
22development authorities and finance authorities.

23Section 4. Unified reporting of property tax reductions and
24abatements.

25(a) Property report.--A local government unit shall annually
26submit a report to the department regarding any real property in
27the local government unit's jurisdiction that has received a
28property tax abatement, reduction or exemption during the fiscal
29year. The report shall contain information, including, but not
30limited to:

1(1) The name of the property owner.

2(2) The address of the property.

3(3) The start and end dates of the property tax
4abatement, reduction or exemption.

5(4) The schedule of the tax reduction.

6(5) Each tax abatement, reduction or exemption for the
7property.

8(6) The amount of property tax revenue not paid to the
9local government unit as a result of the abatement, reduction
10or exemption.

11(b) Unpaid tax revenue report.--A local government unit
12shall submit a report to the department stating the total
13property tax revenue not paid to the local government unit
14during the fiscal year as a result of all property tax
15abatements, reductions and exemptions in the local government
16unit's jurisdiction.

17(c) Time period for filing.--The reports required under
18subsections (a) and (b) shall be prepared on two forms provided
19by the Department of Revenue and shall be submitted to the
20department by the local government unit no later than three
21months after the end of the fiscal year.

22(d) Publication.--The department shall annually compile and
23publish all of the data contained in the reports required under
24subsections (a) and (b) in both written and electronic form,
25including the department's Internet website.

26(e) Penalty for failure to report.--If a local government
27unit fails to submit its reports to the department within the
28prescribed time, the department shall notify the State
29Treasurer, and the State Treasurer shall withhold further
30payments of any development subsidy to the delinquent local

1government unit until the local government unit files its
2reports with the department and the department informs the State
3Treasurer of compliance by the local government unit.

4Section 5. Application for economic development subsidies.

5(a) Contents of application.--A granting body, together with
6the applicant for a development subsidy, shall complete an
7application for the subsidy on a form prepared by the
8department. The information required on the application shall
9include the following:

10(1) An application tracking number for the granting
11agency and the project.

12(2) The name, street and mailing address and telephone
13number of the chief officer of the granting body.

14(3) The name, street and mailing address and telephone
15number of the chief officer of the applicant's corporate
16parent, if any.

17(4) The name, street and mailing address and telephone
18number of the owner or chief officer of the applicant.

19(5) The street address of the project site.

20(6) The three-digit North American Industry
21Classification System number of the project site.

22(7) The total number of individuals employed by the
23applicant at the project site on the date of the application,
24itemized by full-time, part-time and temporary positions.

25(8) The total number of individuals employed in this
26Commonwealth by the applicant's corporate parent, if any, and
27all subsidiaries thereof as of December 31 of the prior
28fiscal year, itemized by full-time, part-time and temporary
29positions.

30(9) The development subsidy being applied for with the

1granting body and the value of such subsidy.

2(10) The number of new jobs to be created by the
3applicant at the project site, itemized by full-time, part-
4time and temporary positions.

5(11) The average hourly wage to be paid to all current
6and new employees at the project site, itemized by the full-
7time, part-time and temporary positions, and further itemized
8by wage groups as follows: $6 or less per hour, $6.01 to $7
9per hour, $7.01 to $8 per hour, $8.01 to $9 per hour, $9.01
10to $10 per hour, $10.01 to $11 per hour, $11.01 to $12 per
11hour, $12.01 to $13 per hour, $13.01 to $14 per hour and
12$14.01 or more per hour.

13(12) For project sites located in a Metropolitan
14Statistical Area, as defined by the Federal Office of
15Management and Budget, the average hourly wage paid to
16nonmanagerial employees in this Commonwealth for the
17industries involved at the project, as established by the
18United States Bureau of Labor Statistics.

19(13) For project sites located outside of Metropolitan
20Statistical Areas, the average weekly wage paid to
21nonmanagerial employees in the county for industries involved
22at the project, as established by the Department of Commerce.

23(14) The type or amount of health care coverage to be
24provided by the applicant within 90 days of commencement of
25employment at the project site, including any costs to be
26borne by the employees.

27(15) A list of all development subsidies that the
28applicant is requesting and the name of any other granting
29body from which subsidies are sought.

30(16) A statement as to whether the development subsidy

1may reduce employment at any other site controlled by the
2applicant or its corporate parent, if any, within or without
3this Commonwealth, resulting from automation, merger,
4acquisition, corporate restructuring or other business
5activity.

6(17) A statement as to whether the project involves the
7relocation of work from another address and, if so, the
8number of jobs to be relocated and the address from which
9they are to be relocated.

10(18) A certification by the owner or chief officer of
11the applicant as to the accuracy of the application.

12(b) Copy of approved application to the department.--

13(1) If the granting body approves the application, the
14granting body shall send a copy of the application to the
15department within 15 days of approval.

16(2) If the application is not approved, the granting
17body shall retain the application in its records.

18Section 6. Reports.

19(a) Annual reports.--

20(1) A granting body shall file a progress report with
21the department for each project for which a development
22subsidy has been granted no later than February 1 each year
23and shall file annual progress reports for the duration of
24the subsidy or not less than five years, whichever period is
25greater. The report shall include the following information:

26(i) The application tracking number.

27(ii) The name, street and mailing address, telephone
28number and chief officer of the granting body.

29(iii) The name, street and mailing address,
30telephone number and the owner or chief officer of the

1recipient corporation or other business entity.

2(iv) A summary of the number of jobs required,
3created and lost, itemized by full-time, part-time and
4temporary positions and by wage groups.

5(v) The type and amount of health care coverage
6provided to the employees at the project site, including
7any costs borne by the employees.

8(vi) A comparison of the total employment in this
9Commonwealth by the recipient's corporate parent, if any,
10on the date of the application and the date of the
11report, itemized by full-time, part-time and temporary
12positions.

13(vii) A statement as to whether the use of the
14development subsidy during the previous fiscal year has
15reduced employment at any other site controlled by the
16recipient corporation or other business entity or its
17corporate parent, if any, within or without this
18Commonwealth as a result of automation, merger,
19acquisition, relocation, corporate restructuring or other
20business activity.

21(viii) A signed certification by the owner or chief
22officer of the recipient corporation or other business
23entity as to the accuracy of the progress report.

24(2) On all subsequent annual progress reports, the
25granting body shall indicate whether the recipient
26corporation is still in compliance with its job creation,
27wage and benefit goals and whether the corporate parent, if
28any, is still in compliance with its Commonwealth employment
29requirement.

30(b) Biennial report.--

1(1) No later than 15 days after the second anniversary
2of the date of subsidy, the granting body shall file with the
3department a two-year progress report including the same
4information as required under subsection (a). The recipient
5corporation or other business entity shall certify the
6accuracy of the report.

7(2) The granting body shall state in the two-year report
8whether the recipient corporation or other business entity
9has achieved its job creation, wage and benefit goals and
10whether the corporate parent, if any, has maintained its
11level of employment in this Commonwealth at no less than 90%
12of its level of employment in this Commonwealth on the date
13of the subsidy.

14(c) Compilation and publication of data.--The department
15shall compile and publish all data from the progress reports in
16both written and electronic form, including the department's
17Internet website.

18(d) Access to project site and records.--The granting body
19and the department shall have access at all reasonable times to
20the project site and the records of the recipient corporation or
21other business entity in order to monitor the project and to
22prepare progress reports.

23(e) Effect of noncompliance.--A recipient corporation or
24other business entity that fails to provide the granting body
25with the information or access required under this section shall
26be subject to a fine of not less than $500 per day to commence
27within ten working days after the February 1 deadline and of not
28less than $1,000 per day to commence 20 days after such
29deadline.

30Section 7. Subsidy limit and job quality standards.

1A granting body may not award:

2(1) (i) A development subsidy if the cost per job is
3greater than $35,000.

4(ii) The cost shall be determined by dividing the
5amount of the subsidy by the number of full-time jobs
6required under the application approved by the granting
7body.

8(2) (i) A subsidy to an applicant unless the wages paid
9to employees at the project site are equal to or exceed
1085% of the average wage as established under section 5(a)
11(12) and (13), except, that for small businesses, the
12average wage must equal or exceed 75% of the wages
13established thereunder.

14(ii) The computation of wages under this paragraph
15shall only apply to a recipient corporation or other
16business entity that provides the health care coverage as
17approved in its application by the granting body.

18(iii) A recipient corporation or other business
19entity not providing the health care coverage shall pay
20wages to employees at the project site equal to or in
21excess of 100% of average wage as established under this
22act.

23Section 8. Recapture.

24(a) Recipient corporation duties.--A recipient corporation
25or other business entity shall:

26(1) Fulfill its job creation, wage, health care and
27other benefit requirements for the project site within two
28years of the date of subsidy.

29(2) Maintain its wage and benefit goals as long as the
30subsidy is in effect or five years, whichever is longer.

1(b) Corporate parent duties.--The parent of a recipient
2corporation or other business entity may lose no more than 10%
3of its employment in this Commonwealth as long as the
4development subsidy is in effect or is not less than five years,
5whichever is longer.

6(c) Procedure.--If the requirements under subsection (a) or
7(b) are not fulfilled, the granting body shall recapture the
8development subsidy from the recipient corporation or other
9business entity, or corporate parent, if any, as follows:

10(1) Upon a failure by the recipient corporation or other
11business entity to create the required number of jobs or to
12pay the required wages or benefits, the amount recaptured
13shall be based on the pro rata amount by which the unfilled
14jobs, wages or benefits bear to the total amount of the
15development subsidy.

16(2) Upon the loss by the recipient corporation or other
17business entity or corporate parent of more than 10% of its
18employment in this Commonwealth.

19(d) Notice of intent to recapture.--

20(1) The granting body shall provide notice to the
21recipient corporation or other business entity, and corporate
22parent, if any, as well as any affiliate or subsidiary, of
23its intent to recapture the development subsidy and state the
24reasons and amount to be recaptured.

25(2) The recipient corporation or other business entity
26shall remit to the governing body the amount within 60
27calendar days of the date of the notice.

28(e) Declaration of subsidy as null and void.--

29(1) If a recipient corporation or other business entity
30defaults on a development subsidy in three consecutive

1calendar years, or in a shorter period if provided in the
2development subsidy agreement, the granting body shall
3declare the subsidy null and void, and shall so notify the
4department and the recipient corporation or other business
5entity.

6(2) The recipient corporation or corporate parent, if
7any, as well as any affiliate or subsidiary, shall pay back
8to the granting body all remaining value of the development
9subsidy it has not previously repaid within 180 calendar days
10of the date of the notice of the default.

11(f) Joint and severable liability.--For the purposes of this
12section, the recipient corporation or other business entity,
13corporate parent, if any, or any affiliate or affiliated company
14shall be jointly and severally liable for the recapture required
15under subsection (c).

16Section 9. Private enforcement action.

17If a granting body fails to enforce any provision of this
18act, an individual who paid personal income taxes to the
19Commonwealth in the calendar year prior to the year in dispute,
20or any organization representing those taxpayers, may bring a
21civil action in an appropriate court to compel enforcement under
22this act. The court shall award reasonable attorney fees and
23costs to a prevailing taxpayer or organization in the civil
24action.

25Section 10. Public record disclosure.

26All records required to be prepared or maintained under this 
27act, including, but not limited to, applications, progress 
28reports, recapture notices and any other records or proceedings 
29relating thereto, shall be subject to disclosure under the act 
30of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know 

1Law.

2Section 11. Effective date.

3This act shall take effect in 90 days.