PRINTER'S NO. 74
No. 65 Session of 1997
INTRODUCED BY LLOYD, BELARDI, JAROLIN, BAKER, OLASZ, CORRIGAN,
COY, PISTELLA, HERMAN, VAN HORNE, STABACK, JAMES, SURRA,
McCALL, SCRIMENTI, CURRY, MIHALICH, DALEY, JOSEPHS,
TANGRETTI, C. WILLIAMS AND CAPPABIANCA, JANUARY 28, 1997
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
JANUARY 28, 1997
AN ACT
1 Amending the act of May 17, 1956 (1955 P.L.1609, No.537),
2 entitled "An act to promote the welfare of the people of the
3 Commonwealth by the reduction of unemployment in certain
4 areas of the Commonwealth determined to be critical economic
5 areas; providing for the establishment of industrial
6 development projects in such areas; creating The Pennsylvania
7 Industrial Development Authority as a body corporate and
8 politic with power to allocate funds for and make secured
9 loans to industrial development agencies for the payment of a
10 part of the cost of industrial development projects in
11 critical economic areas; authorizing the Authority to enter
12 into agreements with the Government of the United States or
13 any Federal agency or industrial development agency;
14 empowering the Authority to take title to, sell, convey and
15 lease industrial development projects where necessary to
16 protect loans made by the Pennsylvania Industrial Development
17 Authority on industrial development projects; providing that
18 no debt of the Commonwealth, its municipalities or political
19 subdivisions shall be incurred in the exercise of any powers
20 granted by this act; and providing for the examination of the
21 accounts and affairs of the Authority; and making an
22 appropriation," further providing for nonmanufacturing
23 enterprises.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 3(i), (s) and (u) of the act of May 17,
27 1956 (1955 P.L.1609, No.537), known as the Pennsylvania
1 Industrial Development Authority Act, amended or added June 16,
2 1972 (P.L.475, No.153), May 15, 1980 (P.L.131, No.49) and July
3 13, 1988 (P.L.534, No.95), are amended and the section is
4 amended by adding a clause to read:
5 Section 3. Definitions.--The following terms, whenever used
6 or referred to in this act, shall have the following meanings,
7 except in those instances where the context clearly indicates
8 otherwise:
9 * * *
10 (i) The term "industrial development project" shall mean any
11 land, site, structure, facility or undertaking comprising or
12 being connected with or being a part of (i) an industrial
13 enterprise, (ii) a manufacturing enterprise, (iii) a research
14 and development enterprise, [or] (iv) an agricultural
15 enterprise, or (v) a non-manufacturing enterprise, established
16 or to be established by an industrial development agency in a
17 critical economic area.
18 * * *
19 (s) The term "small business" shall mean and refer to
20 respective responsible buyers or tenants occupying and operating
21 an industrial enterprise, a manufacturing enterprise, a research
22 and development enterprise [or], an agricultural enterprise or a
23 non-manufacturing enterprise and who, or which, together with
24 parents, subsidiaries or affiliated corporations or other
25 related business entities employ, in the aggregate, less than
26 fifty full time employes on an annual basis.
27 * * *
28 (u) The term "multiple-tenancy building project" shall mean
29 any land, site, structure, facility or undertaking acquired or
30 constructed for occupancy by two or more industrial enterprises,
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1 manufacturing enterprises [or], research and development
2 enterprises or non-manufacturing enterprises, as those terms are
3 defined in this act, established or to be established by an
4 industrial development agency in a critical economic area.
5 (v) The term "non-manufacturing enterprise" shall mean an
6 enterprise which provides personal or professional services or
7 any mercantile, commercial or retail enterprise. The term shall
8 not include those professional enterprises which render personal
9 services to the public of the type which require a license or
10 other legal authorization, or public service corporations whose
11 operations serve the needs of the general public, including
12 water, gas or electric companies, public transportation
13 companies or banking institutions.
14 Section 2. Section 5(b) of the act, amended July 10, 1963
15 (P.L.221, No.125), is amended to read:
16 Section 5. Powers of the Authority; General.--The Authority,
17 as a public corporation and governmental instrumentality
18 exercising public powers of the Commonwealth, is hereby granted
19 and shall have and may exercise all powers necessary or
20 appropriate to carry out and effectuate the purposes of this
21 act, including the following powers, in addition to others
22 herein granted:
23 * * *
24 (b) To co-operate with industrial development agencies in
25 their efforts to promote the expansion of industrial,
26 manufacturing [and], research and development and non-
27 manufacturing activity in critical economic areas;
28 * * *
29 Section 3. Section 6(b.2) of the act, amended July 13, 1988
30 (P.L.534, No.95), is amended to read:
19970H0065B0074 - 3 -
1 Section 6. Powers of the Authority; Loans to Industrial
2 Development Agencies.--When it has been determined by the
3 Authority upon application of an industrial development agency
4 and hearing thereon in the manner hereinafter provided, that the
5 establishment of a particular industrial development project of
6 such industrial development agency in a critical economic area
7 has accomplished or will accomplish the public purposes of this
8 act, the Authority may contract to loan such industrial
9 development agency an amount not in excess of the percentage of
10 the cost of such industrial development project, as established
11 or to be established as hereinafter set forth, subject, however,
12 to the following conditions:
13 * * *
14 (b.2) Multiple-tenancy building projects:
15 (1) The cost of the project shall include only those items
16 of cost set forth in the definition of "cost of establishing an
17 industrial development project" in this act.
18 (2) Where this act otherwise would empower the Authority to
19 contract to loan an amount up to (40%) of the cost of the
20 project, the Authority may only contract to loan such an amount
21 if the loan of the Authority is secured by a first mortgage or a
22 participation in a first mortgage on said project; otherwise the
23 Authority may contract to loan an amount not in excess of (30%)
24 of the cost of the project: Provided, however, That if the
25 Authority's loan is secured by a participation in a first
26 mortgage on the project, the Authority may permit a portion of
27 its loan, not exceeding in amount (10%) of the project cost, to
28 be secured by a second mortgage on the project which is junior
29 in lien only to the participating first mortgage securing the
30 balance of the Authority's loan and the funds borrowed from
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1 other independent and responsible sources.
2 Where making a loan in the financing of an industrial park or
3 a multiple-tenancy building project, the requirements of this
4 act shall apply unless otherwise provided herein, except the
5 requirements of this act as to the proposed industrial, research
6 and development [or], manufacturing or non-manufacturing
7 enterprise to be placed thereon or therein, the proposed
8 employment to be derived therefrom and the existence of a
9 responsible buyer or responsible tenant therefor shall not
10 apply.
11 * * *
12 Section 4. Section 7(a) and (k) of the act, amended July 10,
13 1963 (P.L.221, No.125), are amended to read:
14 Section 7. Loan Application Requirements.--Prior to the
15 loaning of any funds to an industrial development agency for an
16 industrial development project in a critical economic area, the
17 Authority shall receive from such industrial development agency
18 a loan application in form adopted by the Authority which shall
19 contain, without being limited to, the following provisions:
20 (a) A general description of the industrial development
21 project and a general description of the industrial [or],
22 manufacturing or non-manufacturing enterprise or research and
23 development facility for which the industrial development
24 project has been or is to be established;
25 * * *
26 (k) Evidence that the establishment of the industrial
27 development project will not cause the removal of an industrial
28 or manufacturing plant or facility or research and development
29 facility or a non-manufacturing enterprise or facility from one
30 area of the Commonwealth to another area of the Commonwealth.
19970H0065B0074 - 5 -
1 * * *
2 Section 5. This act shall take effect in 60 days.
L17L64JS/19970H0065B0074 - 6 -