PRINTER'S NO. 665
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
673
Session of
2015
INTRODUCED BY FONTANA, WILLIAMS, BREWSTER, HAYWOOD, YUDICHAK,
KITCHEN, COSTA, WILEY, SCHWANK, FARNESE AND BOSCOLA,
MARCH 31, 2015
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
MARCH 31, 2015
AN ACT
Amending Title 64 (Public Authorities and Quasi-Public
Corporations) of the Pennsylvania Consolidated Statutes, in
Commonwealth Financing Authority, 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:
ยง 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
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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.
ยง 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).
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(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).
* * *
ยง 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.
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(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
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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.
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(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
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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
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expenses associated with any of the activities listed in
subparagraphs (i) through (iv).
ยง 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.
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(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.
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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.
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