PRINTER'S NO. 219
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
265
Session of
2019
INTRODUCED BY BREWSTER, HUGHES, YUDICHAK, FONTANA, SANTARSIERO,
COSTA, SCHWANK, TARTAGLIONE AND FARNESE, FEBRUARY 7, 2019
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
FEBRUARY 7, 2019
AN ACT
Amending Title 12 (Commerce and Trade) of the Pennsylvania
Consolidated Statutes, in machinery and equipment loans,
further providing for definitions, for establishment and for
eligibility for loans and terms and conditions and providing
for machinery and equipment grants; and making editorial
changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The heading of Chapter 29 of Title 12 of the
Pennsylvania Consolidated Statutes is amended to read:
CHAPTER 29
MACHINERY AND EQUIPMENT LOANS AND GRANTS
Section 2. The definitions of "fund," "medical facility" and
"program" in section 2902 of Title 12 are amended and the
section is amended by adding definitions to read:
§ 2902. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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* * *
"Area vocational-technical school." As provided for in
section 1841 of the act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949.
* * *
"Fund." The Machinery and Equipment Loan and Grant Fund
created and established by this chapter.
"Medical facility." An entity licensed as a hospital under
the act of June 13, 1967 (P.L.31, No.21), known as the [Public
Welfare] Human Services Code, or the act of July 19, 1979
(P.L.130, No.48), known as the Health Care Facilities Act.
"New or high demand technologies." Technologies that are
focused on improvement of manufacturing processes, techniques or
equipment in order to reduce costs, increase efficiency, enhance
reliability or to incorporate safety and antipollution measures.
* * *
"Program." The Machinery and Equipment Loan and Grant
Program established under section 2903 (relating to
establishment).
"School district." As defined in section 102 of the Public
School Code of 1949.
Section 3. Sections 2903, 2904 and 2905(a) of Title 12 are
amended to read:
§ 2903. Establishment.
There is established a program to be known as the Machinery
and Equipment Loan and Grant Program. The program shall be
administered by the authority and provide [loans to business
enterprises for machinery and equipment.]:
(1) loans to business enterprises for machinery and
equipment or retrofitting existing facilities with new or
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high demand technologies ; and
(2) grants to assist area vocational-technical schools
and school districts offering approved vocational-technical
education programs in purchasing machinery and equipment.
§ 2904. Machinery and Equipment Loan and Grant Fund.
(a) Creation.--There is created a special account in the
Treasury Department, to be known as the Machinery and Equipment
Loan and Grant Fund, to which shall be credited all program
appropriations made by the General Assembly, all proceeds from
loan repayments and any and all other deposits, payments or
contributions from any other source made available to the fund.
The fund shall operate as a revolving fund whereby all
appropriations, payments and interest made thereto may be
applied and reapplied to the purposes of this chapter.
(b) Credits to fund.--All appropriations, deposits and
contributions made to the fund shall be immediately credited in
full to the fund, and earnings on the moneys held in the fund
shall also be credited to the fund for the purposes of this
chapter.
(c) Amount of grants.-- For the 2019-2020 school year and
each school year thereafter, the authority shall provide no more
than $5,000,000 of grants to area vocational-technical schools
and school districts under this chapter.
§ 2905. Eligibility for loans; terms and conditions.
(a) Loans; general rules.--The authority may make advances
from the fund, subject to the terms, conditions and restrictions
provided under this chapter, for the purpose of making loans to
business enterprises involved in industrial processes, mining,
manufacturing, production agriculture, information technology,
biotechnology, service as a medical facility or other industrial
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or technology sectors, as defined by the authority, to acquire
and install new machinery and equipment or upgrade existing
machinery and equipment, including the acquisition, application
and utilization of computer hardware and software or to retrofit
existing facilities with new or high demand technologies, as
defined by the authority.
(1) All loans shall be subject to all of the following
conditions:
(i) Be made to eligible business enterprises under
the provisions of this chapter.
(ii) Have a maximum loan ceiling of [$5,000,000]
$7,500,000 or 50% of the cost of the project, whichever
is less.
(iii) Be limited to the purchase and installation of
new equipment and machinery [or], the upgrade of existing
machinery and equipment or the retrofitting of existing
facilities with new or high demand technologies. This
subparagraph includes the acquisition, application and
utilization of computer hardware and software.
(iv) Be limited to projects that demonstrate the
creation or retention of one job for every $25,000
received from the fund. This subparagraph does not apply
to loans made to business enterprises involved in
production agriculture or to loans made to medical
facilities. The authority may, by submitting notice to
the Legislative Reference Bureau for publication in the
Pennsylvania Bulletin, periodically update the amount
under this subparagraph, based on changes in unemployment
statistics, inflation, the authority's cash flow and the
need to keep this Commonwealth and the businesses of this
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Commonwealth competitive.
(v) Have an interest rate which shall be established
by the authority.
(vi) Have a term of not in excess of ten years.
(2) For loans to medical facilities, loan funds may be
used only to finance the acquisition, installation and
utilization of machinery and equipment, including computer
hardware and software components, to be used in the
prescribing and dispensing of medication for medical facility
patients.
* * *
Section 4. Title 12 is amended by adding a section to read:
§ 2905.1. Eligibility for grants; terms and conditions.
(a) General rule.--The authority may make advances from the
fund, subject to the terms, conditions and restrictions provided
under this chapter, for the purpose of funding a competitive
grant program to assist area vocational-technical schools and
school districts offering approved vocational-technical
education programs in purchasing machinery and equipment that
meet industry standards for the purpose of providing training
for students.
(b) Restrictions.--The following shall apply:
(1) The grants provided under this chapter shall be
limited to the purchase of machinery or equipment in the
following program areas:
(i) Automotive technology.
(ii) Auto body.
(iii) Diesel technology.
(iv) Precision machine technology.
(v) Heating, ventilation and air conditioning.
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(vi) Printing.
(vii) Electronics.
(viii) Building trades.
(ix) Other program areas approved by the authority.
(2) No area vocational-technical school or school
district applying for a grant under this chapter shall be
awarded a grant or grants in excess of $500,000 in a single
fiscal year.
Section 5. Section 2906 heading of Title 12 is amended to
read:
§ 2906. Application and administration for loans.
* * *
Section 6. Title 12 is amended by adding a section to read:
§ 2906.1. Application for grants.
The application to apply for a grant under this chapter shall
be developed by the authority within 30 days of the effective
date of this section and require the following information,
which may be collected electronically:
(1) Name, address, e-mail address and telephone number
of the area vocational-technical school or school district.
(2) Name, e-mail address and telephone number of an
employee of the area vocational-technical school or school
district who will be available to answer questions regarding
the grant application.
(3) Description of the machinery or equipment for which
the requested grant will be used, the career and technical
education program in which the machinery or equipment will be
used, the date on which the occupational advisory committee
recommended the purchase of the machinery or equipment and
verification that the machinery or equipment will be used for
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technical classroom instruction.
Section 7. Section 2908(a) and 2911(a) of Title 12 are
amended to read:
§ 2908. Reporting and inspection.
(a) Inspection.--Each business enterprise which applies for
or receives [assistance] a loan under this chapter shall, upon
request, permit authorized employees of the authority or its
agent to inspect the plant, books and records of the business
enterprise.
* * *
§ 2911. Reports to General Assembly.
(a) Annual reports.--On or before September 1 of each year,
the authority shall provide a report to the Secretary of the
Senate and to the Chief Clerk of the House of Representatives.
The report shall describe all relevant activities of the
authority pursuant to this chapter and shall include the
following:
(1) List of business enterprises receiving loans from
the fund and the amounts and terms of this assistance.
(2) Loan amounts repaid. Information under this
paragraph may be reported in the aggregate.
(3) Loans outstanding, balances due and any penalties
imposed. Information under this paragraph may be reported in
the aggregate.
(4) Jobs created by businesses receiving [funds] a loan
in previous years. Information under this paragraph may be
reported in the aggregate.
(5) Other relevant information as determined by the
authority.
* * *
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Section 8. This act shall take effect in 60 days.
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