Trial Engrossment of Amendment A05184 to House Bill 2425 P.N. 3335, Regular Session 2023-2024

A05184

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2425

Session of

2024

INTRODUCED BY DONAHUE, KAUFER, McNEILL, SCHLOSSBERG, SIEGEL,

T. DAVIS, PROKOPIAK, HADDOCK, HILL-EVANS, BOYD, SANCHEZ,

CERRATO, VENKAT AND CIRESI, JUNE 18, 2024

REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 18, 2024

AN ACT

Providing for the funding of the development of comprehensive

regional plans, competitive sites for businesses to locate or

expand within this Commonwealth and competitive industrial

and nonindustrial sites by assisting in the reduction of

development risk; establishing the Pennsylvania Strategic

Investments to Enhance Sites (PA SITES) Program, the PA SITES

Fund and the PA SITES Debt Service Restricted Account; and

conferring powers and duties on the Department of Community

and Economic Development Pennsylvania Economic Development

Financing Authority.

Establishing the Pennsylvania Strategic Investments to Enhance

Sites (PA SITES) Program and the PA SITES Fund; and imposing

duties on the Department of Community and Economic

Development.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Pennsylvania

Strategic Investments to Enhance Sites (PA SITES) Program Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Authority." The Pennsylvania Economic Development Financing

Authority.

"Bond." A type of revenue obligation, including a bond or

series of bonds, note, certificate or other instrument, issued

by the authority for the benefit of the department under this

act.

"Bond administrative expenses." Expenses incurred to

administer bonds issued by the authority under this act as

provided under the Financing Law or as otherwise necessary to

ensure compliance with Federal or State law.

"Bond obligations." The principal of a bond and any premium

and interest payable on a bond issued by the authority under

this act, together with any amount owed under a related credit

agreement or a related resolution of the authority authorizing a

bond, including refunding bonds.

"Credit agreement." A loan agreement, a revolving credit

agreement, an agreement establishing a line of credit, a letter

of credit or another agreement that enhances the marketability,

security or creditworthiness of a bond.

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Economic development organization." A nonprofit

organization whose mission is to advance the economic

development needs of a locality or region.

"Eligible applicant." One of the following entities located

within this Commonwealth:

(1) a municipality;

(2) an economic development organization;

(3) a redevelopment authority;

(4) a municipal authority;

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(5) an industrial development agency; or

(6) a for-profit organization.

"Eligible projects." Any of the following:

(1) The development of a comprehensive real estate plan.

(2) The development of competitive industrial sites that

provide for the relocation or expansion of businesses to or

within this Commonwealth.

(3) The development of nonindustrial sites or any other

project the department deems eligible.

"Financing Law." The act of August 23, 1967 (P.L.251,

No.102), known as the Economic Development Financing Law.

"Fund." The PA SITES Fund established under section 6.

"Industrial development agency." As defined under section 3

of the act of May 17, 1956 (1955 P.L.1609, No.537), known as the

Pennsylvania Industrial Development Authority Act.

"Municipal authority." A body corporate and politic created

under 53 Pa.C.S. Ch. 56 (relating to municipal authorities); the

former act of June 28, 1935 (P.L.463, No.191), known as the

Municipality Authorities Act of one thousand nine hundred and

thirty-five; or the former act of May 2, 1945 (P.L.382, No.164),

known as the Municipality Authorities Act of 1945.

"Municipality." A county, city, borough, incorporated town,

township or home rule municipality.

"Office." The Office of the Budget of the Commonwealth.

"Program." The Pennsylvania Strategic Investments To Enhance

Sites Program or PA SITES Program established under section 8.

"Redevelopment authority." A public body and a body

corporate and politic created and organized under the act of May

24, 1945 (P.L.991, No.385), known as the Urban Redevelopment

Law.

A05184 - 3 -

Section 3. Bond issuance.

(a) Declaration of policy.--The General Assembly finds and

declares that funding the development of comprehensive regional

plans, competitive sites for businesses to locate or expand

within this Commonwealth and competitive industrial and

nonindustrial sites by assisting in reduction of development

risk, including interest, through the authority, is in the best

interest of this Commonwealth.

(b) Authority.--Notwithstanding any other law, the following

shall apply:

(1) The department, with the prior approval of the

office, may be a project applicant under the Financing Law

and may apply to the authority for money from the program.

(2) The authority may issue bonds under the Financing

Law, consistent with this act, to finance the program which

will provide funds for regional planning efforts as well as

the redevelopment, reuse or revitalization of a previously

utilized site for future use by businesses or others or the

development of an undeveloped site in this Commonwealth.

(1) Bonds issued under this act shall not be a debt or

liability of the Commonwealth and shall not create or

constitute any indebtedness, liability or obligation of the

Commonwealth.

(2) Bond obligations and bond administrative expenses

shall be payable solely from money pledged or available for

repayment as authorized under this act. This paragraph shall

include the proceeds of the issuance of bonds.

(3) Each bond shall contain on its face a statement

that:

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(i) the authority is obligated to pay the principal

or interest on the bonds only from the money pledged or

available for repayment as authorized under this act;

(ii) neither the Commonwealth nor any political

subdivision is obligated to pay the principal or

interest; and

(iii) neither the full faith and credit of the

Commonwealth or any political subdivision is pledged to

the payment of the principal or interest on the bonds.

Section 4. Criteria for bond issuance.

(a) Issuance.--Bonds may be issued in one or more series,

and each series may finance loans and reimbursement grants.

(b) Terms.--

(1) The department, with the approval of the office,

shall specify in the department's application to the

authority:

(i) the maximum principal amount of the bonds for

each bond issue; and

(ii) the maximum term of the bonds consistent with

applicable laws.

(2) The total aggregate principal amount for all bonds

issued under this act may not exceed $500,000,000.

(3) The term of the bonds issued under this act may not

exceed 30 years from the respective date of original

issuance, excluding refunding bonds.

Section 5. Issuance of bonds, pledge, service agreement and

security.

(a) Issuance.--The authority shall issue bonds upon approval

of an application by the department. Bonds issued under this act

shall be subject to the provisions of the Financing Law, unless

A05184 - 5 -

otherwise specified in this act.

(b) Revenues pledged.--The Commonwealth pledges and

appropriates on a continuing basis the general revenues

collected under Article II of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, for payment of bond

obligations and bond administrative expenses for bonds or

refunding bonds issued under this act.

(1) The authority and the department may enter into an

agreement or service agreement to effectuate this act, under

which the department shall agree to pay the bond obligations

and bond administrative expenses to the authority in each

fiscal year that the bonds or refunding bonds are outstanding

in amounts sufficient to timely pay in full the bond

obligations, bond administrative expenses and any other

financing costs due on the bonds issued for the purposes

specified in this act.

(2) The department's payment of bond obligations, bond

administrative expenses and other financing costs due on the

bonds as service charges under an agreement or service

agreement shall be subject to and dependent upon the

appropriation of funds by the General Assembly to the

department for payment of the service charges. The service

agreement may be amended or supplemented by the authority and

the department in connection with the issuance of a series of

bonds or refunding bonds authorized under this section.

(d) Security.--Bond obligations and bond administrative

expenses may be secured for the benefit of the holders of the

bonds and the obligees under credit agreements or the agreements

under subsection (c), by pledge of a security interest in the

A05184 - 6 -

following:

(1) Money relating to the bonds held on deposit in any

other fund or account under an instrument or agreement

pertaining to the bonds, including bond reserves and interest

income on the money.

(2) The security provided under this subsection shall

not apply to money in any fund relating to arbitrage rebate

obligations.

Section 6. Establishment of fund, sale of bonds and deposit.

(a) Establishment of fund.--The PA SITES Fund is established

in the State Treasury as a restricted account.

(b) Sale of bonds.--The authority shall offer the bonds or

each series of bonds, including refunding bonds, for sale by a

public, competitive sale or a negotiated sale based on the

authority's determination of which method will produce the most

benefit to the Commonwealth.

or each series of bonds, other than refunding bonds, exclusive

of costs of issuance, reserves and any other financing charges,

shall be deposited into the fund.

(d) Deposit of repayments and other money.--Money received

from the recapture of grants or as loan repayments received

under the program or money otherwise made available to the

program shall be deposited into the fund and made available for

additional grants and loans under section 8.

Section 7. Use of bond proceeds.

(a) Order.--Upon issuance of bonds, the proceeds shall be

applied in the following order:

(1) pay the costs of issuance of the bonds, including

any refunding bonds;

A05184 - 7 -

(2) fund bond reserves;

(3) refund outstanding bonds, if applicable;

(4) make any other deposit required under any instrument

or agreement pertaining to the bonds; and

(5) deposit the balance into the fund.

(b) Application of balance.--The bond proceeds deposited

under subsection (a)(5) are appropriated to and shall be

expended by the department as follows:

(1) For the department to make program grants and loans

to approved eligible applicants under section 8.

(2) For the expenses of the department in the

administration of the program, not to exceed 0.02% of the

bond proceeds in the aggregate over the life of the program.

Section 8. PA SITES Program.

(a) Establishment, administration and purpose.--

(1) The Pennsylvania Strategic Investments To Enhance

Sites Program or PA SITES Program is established in the

department.

(2) The department shall administer the program to

provide grants and loans to approved eligible applicants for

eligible projects.

(b) Eligible projects.--The department may award a grant or

loan to an approved eligible applicant for the following costs

of an eligible project:

(1) Acquisition of land and buildings, rights of way and

easements.

(2) The construction or rehabilitation of one or more of

the following:

(i) Storm water drainage systems.

(ii) Energy infrastructure that supports the

A05184 - 8 -

generation and distribution of power and any end uses

necessitated by the site, including, but not limited to,

heating, cooling or energy used as an input for

manufacturing.

(iii) Sanitary sewer systems, including, but not

limited to, the construction or repair of sewage

collection lines and sewage treatment facilities,

including proration of costs for needed off-site

facilities.

(iv) Water supply facilities, including, but not

limited to, construction or repair of ground water

sources, water lines and water storage and treatment

facilities, including proration of costs for needed off-

site facilities.

(v) Transportation facilities directly affecting the

site of the proposed development, including:

(A) on-site and off-site road improvements;

(B) traffic signals;

(D) sidewalks;

(E) bridges;

(F) rails, including, but not limited to, the

construction or rehabilitation of spurs, signals,

crossings and intermodal facilities; and

(G) port-related facilities, including, but not

limited to, dredging, docking facilities, bulkheads

and intermodal facilities.

(vi) Facilities for the transmission of information,

including, but not limited to, telephone lines, fiber-

optic telecommunications lines and towers for wireless

A05184 - 9 -

communications.

(vii) On-site amenities, such as recreational areas,

which are reasonably expected to increase the value or

attractiveness of the site.

(3) Demolition of existing structures at the site and

removal of abandoned foundations at the site.

(4) The department may provide grant or loan money for

the rehabilitation of existing on-site buildings if the

eligible applicant can demonstrate that the potential for

site reuse will be greater with the existing structure or

structures.

(5) The clearing and preparation of land for

construction.

(6) Environmental site assessment and remediation.

(7) Related engineering, design and inspection costs.

(8) Signage, landscaping and street lighting.

(9) Administrative costs, permit fees, legal costs and

expenses for other professional services.

(10) Costs associated with the development of a

comprehensive real estate plan.

(11) Other costs associated with the proposed eligible

project as determined by the department.

(1) Develop written guidelines for the administration of

the program to be published on the department's publicly

accessible Internet website.

(2) Develop a certification program which verifies the

site readiness of marketed sites across this Commonwealth.

(3) Develop a written competitive application and

application process for the program. The grant and loan

A05184 - 10 -

processes and application shall be available on the

department's publicly accessible Internet website.

(4) Develop a grant agreement for the program that

includes provisions requiring an eligible applicant to return

any unused or improperly used grant money to the

Commonwealth.

(5) Develop loan documentation for the program

consistent with this act.

(d) Evaluation criteria.--The department shall evaluate

program applications on the following criteria:

(1) The eligible applicant's need for program funding

for the eligible project.

(2) The feasibility of the proposed project, including

whether the eligible applicant can complete the project with

the available funding, including the proposed non-State

source matching funds and the program grant or loan.

(3) The marketability of the site once the site has been

fully developed.

(4) The need for developed business-ready sites in the

community or surrounding area.

(5) The relative impact the project will have on the

community, region and this Commonwealth.

(6) The increased employment opportunities resulting

from the project in the community or the surrounding area.

(7) The amount and sources of non-State source matching

money proposed to be invested in the project by the eligible

applicant.

(8) The eligible applicant's demonstration of site

control.

(9) The proposed time frame for commencement and

A05184 - 11 -

completion of the project.

(10) Identification of the project as a priority

investment in a local or regional economic development plan.

(11) Whether the eligible project is part of a

comprehensive municipal plan or county plan and is zoned for

development at the time of application.

(12) Other criteria specified by the department in the

program application that the department deems necessary to

conduct a full evaluation of program applications.

Section 9. Payment of bond obligations and bond administrative

expenses.

(a) PA SITES Debt Service Restricted Account.--The PA SITES

Debt Service Restricted Account is established in the General

Fund for the purpose of paying bond obligations due on bonds

issued by the authority under this act and related bond

administrative expenses due each fiscal year, including

refunding bonds. Money deposited into the restricted account is

appropriated to the department for the payment of bond

obligations due on the bonds issued under this act, including

refunding bonds, and bond administrative expenses of the

department or the authority in connection with the bonds.

(b) Transmission of amount to General Assembly.--

(1) At the same time that the Governor submits the

annual State budget and program and financing plan to the

General Assembly under section 613 of the act of April 9,

1929 (P.L.177, No.175), known as The Administrative Code of

1929, the Governor shall inform the General Assembly of the

amount of general revenues of the Commonwealth collected

under Article II of the act of March 4, 1971 (P.L.6, No.2),

known as the Tax Reform Code of 1971, that must be

A05184 - 12 -

transferred to the PA SITES Debt Service Restricted Account

in the next ensuing fiscal year for the full payment of bond

obligations and bond administrative expenses due during that

fiscal year.

(2) The pledge of Commonwealth money is subordinate to

any pledge of money collected under Article II of the Tax

Reform Code of 1971 before the effective date of this section

for the outstanding indebtedness of other bonds issued by the

Commonwealth or one of its authorities or instrumentalities.

year in which bond obligations and bond administrative expenses

are due and by each September 30 thereafter for the term of the

bonds, including refunding bonds, the State Treasurer shall

transfer to the PA SITES Debt Service Restricted Account from

the general revenues of the Commonwealth collected under Article

II of the Tax Reform Code of 1971 the amount reported by the

Governor to the General Assembly under subsection (b). The State

Treasurer and the Secretary of the Budget shall consider General

Fund cash flow in determining when to make the transfer.

Section 10. Commonwealth not to impair bond-related

obligations.

The Commonwealth shall not do any of the following while each

bond or series of bonds, together with interest on the bonds,

are outstanding and have not been fully met and discharged:

(1) Limit or alter the rights and responsibilities of

the authority or the department under this act, including the

responsibility to:

(i) pay bond obligations and bond administrative

expenses; and

(ii) comply with any other instrument or agreement

A05184 - 13 -

pertaining to bonds.

(2) Alter or limit the service agreement or security

interest.

(3) Impair the rights and remedies of the holders of

bonds.

Section 11. No personal liability.

The members, directors, officers and employees of the

department, the office and the authority shall not be personally

liable as a result of good faith exercise of the rights and

responsibilities granted under this act.

Section 12. Annual report.

No later than March 1 of the year following the first full

year in which bonds have been issued under this act and for each

year thereafter in which bond obligations existed in the prior

year, the department shall submit an annual report to the chair

and minority chair of the Appropriations Committee of the

Senate, the chair and minority chair of the State Government

Committee of the Senate, the chair and minority chair of the

Appropriations Committee of the House of Representatives and the

chair and minority chair of the State Government Committee of

the House of Representatives providing all data available on

bonds issued or existing in the prior year. The report shall

include existing and anticipated bond principal, interest and

administrative costs, revenue, repayments, refinancing, overall

benefits to counties and any other relevant data, facts and

statistics that the department believes necessary in the content

of the report.

Section 13. Expiration.

The authorization to issue bonds, other than refunding bonds,

under this act shall expire two years from the effective date of

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this section.

Section 14. Effective date.

This act shall take effect in 60 days.

Section 1. Short title.

This act shall be known and may be cited as the Pennsylvania

Strategic Investments to Enhance Sites (PA SITES) Program Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Authority." The Pennsylvania Economic Development Financing

Authority.

"Department." The Department of Community and Economic

Development of the Commonwealth.

"Economic development organization." A nonprofit

organization whose mission is to advance the economic

development needs of a locality or region.

"Eligible applicant." One of the following entities located

within this Commonwealth:

(1) A municipality.

(2) An economic development organization.

(3) A redevelopment authority.

(4) A municipal authority.

(5) An industrial development agency.

(6) A for-profit organization.

"Eligible projects." Any of the following:

(1) The development of a comprehensive real estate plan.

(2) The development of competitive industrial sites that

provide for the relocation or expansion of businesses to or

within this Commonwealth.

A05184 - 15 -

(3) The development of nonindustrial sites or any other

project the department deems eligible.

"Fund." The PA SITES Fund established under section 4.

"Municipal authority." A body corporate and politic created

under:

(1) 53 Pa.C.S. Ch. 56 (relating to municipal

authorities);

(2) the former act of June 28, 1935 (P.L.463, No.191),

known as the Municipality Authorities Act of one thousand

nine hundred and thirty-five; or

(3) the former act of May 2, 1945 (P.L.382, No.164),

known as the Municipality Authorities Act of 1945.

"Municipality." A county, city, borough, incorporated town,

township or home rule municipality.

"Office." The Office of the Budget of the Commonwealth.

"Program." The Pennsylvania Strategic Investments To Enhance

Sites Program or PA SITES Program established under section 3.

"Redevelopment authority." A public body and a body

corporate and politic created and organized under the act of May

24, 1945 (P.L.991, No.385), known as the Urban Redevelopment

Law.

Section 3. PA SITES Program.

(a) Declaration of policy.--The General Assembly finds and

declares that funding the development of comprehensive regional

plans, competitive sites for businesses to locate or expand

within this Commonwealth and competitive industrial and

nonindustrial sites by assisting in reduction of development

risk, including interest, through the authority, is in the best

interest of this Commonwealth.

(b) Establishment, administration and purpose.--

A05184 - 16 -

(1) The Pennsylvania Strategic Investments To Enhance

Sites Program or PA SITES Program is established in the

department.

(2) The department shall administer the program to

provide grants and loans to approved eligible applicants for

eligible projects.

loan to an approved eligible applicant for the following costs

of an eligible project:

(1) Acquisition of land and buildings, rights-of-way and

easements.

(2) The construction or rehabilitation of one or more of

the following:

(i) Storm water drainage systems.

(ii) Energy infrastructure that supports the

generation and distribution of power and any end uses

necessitated by the site, including heating, cooling or

energy used as an input for manufacturing.

(iii) Sanitary sewer systems, including the

construction or repair of sewage collection lines and

sewage treatment facilities, including proration of costs

for needed off-site facilities.

(iv) Water supply facilities, including construction

or repair of ground water sources, water lines and water

storage and treatment facilities, including proration of

costs for needed off-site facilities.

(v) Transportation facilities directly affecting the

site of the proposed development, including:

(A) On-site and off-site road improvements.

(B) Traffic signals.

A05184 - 17 -

(D) Sidewalks.

(E) Bridges.

(F) Rails, including the construction or

rehabilitation of spurs, signals, crossings and

intermodal facilities.

(G) Port-related facilities, including dredging,

docking facilities, bulkheads and intermodal

facilities.

(vi) Facilities for the transmission of information,

including telephone lines, fiber-optic telecommunications

lines and towers for wireless communications.

(vii) Onsite amenities, such as recreational areas,

which are reasonably expected to increase the value or

attractiveness of the site.

(3) Demolition of existing structures at the site and

removal of abandoned foundations at the site.

(4) The rehabilitation of existing onsite buildings if

the eligible applicant can demonstrate that the potential for

site reuse will be greater with the existing structure or

structures.

(5) The clearing and preparation of land for

construction.

(6) Environmental site assessment and remediation.

(7) Related engineering, design and inspection costs.

(8) Signage, landscaping and street lighting.

(9) Administrative costs, permit fees, legal costs and

expenses for other professional services.

(10) Costs associated with the development of a

comprehensive real estate plan.

A05184 - 18 -

(11) Other costs associated with the proposed eligible

project as determined by the department.

(d) Department responsibilities.--The department shall:

(1) Develop written guidelines for the administration of

the program to be published on the department's publicly

accessible Internet website.

(2) Develop a certification program which verifies the

site readiness of marketed sites across this Commonwealth.

(3) Develop a written competitive application and

application process for the program. The grant and loan

processes and application shall be available on the

department's publicly accessible Internet website.

(4) Develop a grant agreement for the program that

includes provisions requiring an eligible applicant to return

any unused or improperly used grant money to the

Commonwealth.

(5) Develop loan documentation for the program

consistent with this act.

(6) Provide an annual report to accompany the

department's annual budget materials, to the chairperson and

minority chairperson of the Appropriations Committee of the

Senate and the chairperson and minority chairperson of the

Appropriations Committee of the House of Representatives,

that includes performance metrics that include a five-year

review of the program, the program's financial health and

sustainability, projects awarded, projects completed and

projects terminated, including reasons for termination.

(e) Evaluation criteria.--The department shall evaluate

program applications on the following criteria:

(1) The eligible applicant's need for program funding

A05184 - 19 -

for the eligible project.

(2) The feasibility of the proposed project, including

whether the eligible applicant can complete the project with

the available funding, including the proposed non-State

source matching funds and the program grant or loan.

(3) The marketability of the site once the site has been

fully developed.

(4) The need for developed business-ready sites in the

community or surrounding area.

(5) The relative impact the project will have on the

community, region and this Commonwealth.

(6) The increased employment opportunities resulting

from the project in the community or the surrounding area.

(7) The amount and sources of non-State source matching

money proposed to be invested in the project by the eligible

applicant.

(8) The eligible applicant's demonstration of site

control.

(9) The proposed time frame for commencement and

completion of the project.

(10) Identification of the project as a priority

investment in a local or regional economic development plan.

(11) Whether the eligible project is part of a

comprehensive municipal plan or county plan and is zoned for

development at the time of application.

(12) Other criteria specified by the department in the

program application that the department deems necessary to

conduct a full evaluation of program applications.

Section 4. Establishment of fund and deposits.

(a) Establishment of fund.--The PA SITES Fund is established

A05184 - 20 -

in the State Treasury as a restricted account.

(b) Deposit of repayments and other money.--Money received

from the recapture of grants or as loan repayments received

under the program or money otherwise made available to the

program shall be deposited into the fund and made available for

additional grants and loans under section 3.

Section 5. Sufficient funding.

This act shall be subject to sufficient funding appropriated

by the General Assembly.

Section 6. No personal liability.

The members, directors, officers and employees of the

department, the office and the authority shall not be personally

liable as a result of good faith exercise of the rights and

responsibilities granted under this act.

Section 7. Effective date.

This act shall take effect in 60 days.

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