See other bills
under the
same topic
                                                      PRINTER'S NO. 1110

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 944 Session of 2007


        INTRODUCED BY FRANKEL, BELFANTI, CARROLL, CURRY, DePASQUALE,
           DeWEESE, EVERETT, FABRIZIO, FREEMAN, GEORGE, GIBBONS,
           GOODMAN, HENNESSEY, JAMES, JOSEPHS, LEVDANSKY, MANN,
           MARKOSEK, McILHATTAN, MYERS, NICKOL, M. O'BRIEN, PETRI,
           REICHLEY, RUBLEY, McILVAINE SMITH, SOLOBAY, STABACK, WALKO,
           YOUNGBLOOD, YUDICHAK, BEYER AND THOMAS, MARCH 29, 2007

        REFERRED TO COMMITTEE ON COMMERCE, MARCH 29, 2007

                                     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," including biotechnology enterprises and small
    23     business incubators within the scope of the act; and further
    24     regulating loans to industrial development agencies.

    25     The General Assembly of the Commonwealth of Pennsylvania
    26  hereby enacts as follows:
    27     Section 1.  The last paragraph of section 2 of the act of May

     1  17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania
     2  Industrial Development Authority Act, amended July 10, 1963
     3  (P.L.221, No.125), is amended to read:
     4     Section 2.  Findings and Declaration of Policy.--It is hereby
     5  determined and declared as a matter of legislative finding--
     6     * * *
     7     Therefore, it is hereby declared to be the policy of the
     8  Commonwealth of Pennsylvania to promote the health, safety,
     9  morals, right to gainful employment, business opportunities and
    10  general welfare of the inhabitants thereof by the creation of a
    11  body corporate and politic to be known as "The Pennsylvania
    12  Industrial Development Authority" which shall exist and operate
    13  for the public purpose of alleviating unemployment with its
    14  resulting spread of indigency and economic stagnation by the
    15  promotion and development of industrial and manufacturing
    16  enterprises [and], research and development facilities,
    17  biotechnology enterprises and small business incubators in those
    18  areas of the Commonwealth in which conditions of critical
    19  unemployment currently or may from time to time exist. Such
    20  purposes are hereby declared to be public purposes for which
    21  public money may be spent.
    22     Section 2.  Section 3(i) of the act, amended June 16, 1972
    23  (P.L.475, No.153), is amended and the section is amended by
    24  adding clauses to read:
    25     Section 3.  Definitions.--The following terms, whenever used
    26  or referred to in this act, shall have the following meanings,
    27  except in those instances where the context clearly indicates
    28  otherwise:
    29     * * *
    30     (i)  The term "industrial development project" shall mean any
    20070H0944B1110                  - 2 -     

     1  land, site, structure, facility or undertaking comprising or
     2  being connected with or being a part of (i) an industrial
     3  enterprise, (ii) a manufacturing enterprise, (iii) a research
     4  and development enterprise, [or] (iv) an agricultural
     5  enterprise, (v) a biotechnology enterprise, or (vi) a small
     6  business incubator established or to be established by an
     7  industrial development agency in a critical economic area.
     8     * * *
     9     (v)  The term "biotechnology enterprise" shall mean an
    10  enterprise which is engaged in the research, development,
    11  production or provision of biotechnology for the purpose of
    12  developing or providing products, processes or technologies for
    13  specific commercial or public purposes, including, but not
    14  limited to, medical, pharmaceutical, nutritional and other
    15  health-related purposes, agricultural purposes and environmental
    16  purposes, or engaged in providing services or products necessary
    17  for such research, development, product or provision of service,
    18  and which enterprise requires substantial capital by virtue of
    19  its technological needs and creates or will create substantial
    20  employment opportunities by its nature and technological needs.
    21     (w)  The term "small business incubator" shall mean a
    22  facility in which small units of space may be leased by a tenant
    23  and in which management maintains or provides access to business
    24  development services for use by tenants.
    25     Section 3.  Section 5(b) of the act, amended July 10, 1963
    26  (P.L.221, No.125), is amended to read:
    27     Section 5.  Powers of the Authority; General.--The Authority,
    28  as a public corporation and governmental instrumentality
    29  exercising public powers of the Commonwealth, is hereby granted
    30  and shall have and may exercise all powers necessary or
    20070H0944B1110                  - 3 -     

     1  appropriate to carry out and effectuate the purposes of this
     2  act, including the following powers, in addition to others
     3  herein granted:
     4     * * *
     5     (b)  To co-operate with industrial development agencies in
     6  their efforts to promote the expansion of industrial,
     7  manufacturing [and], research and development, biotechnology and
     8  small business incubator activity in critical economic areas;
     9     * * *
    10     Section 4.  Section 6(a) of the act, amended July 13, 1988
    11  (P.L.534, No.95), is amended to read:
    12     Section 6.  Powers of the Authority; Loans to Industrial
    13  Development Agencies.--When it has been determined by the
    14  Authority upon application of an industrial development agency
    15  and hearing thereon in the manner hereinafter provided, that the
    16  establishment of a particular industrial development project of
    17  such industrial development agency in a critical economic area
    18  has accomplished or will accomplish the public purposes of this
    19  act, the Authority may contract to loan such industrial
    20  development agency an amount not in excess of the percentage of
    21  the cost of such industrial development project, as established
    22  or to be established as hereinafter set forth, subject, however,
    23  to the following conditions:
    24     (a)  Industrial development projects to be established:
    25     (1)  If the industrial development project is exclusively a
    26  research and development facility other than research and
    27  development of pollution control technology, the Authority may,
    28  in each class of critical economic area, contract to loan the
    29  industrial development agency (45%) of the cost of such
    30  industrial development project if it has determined that the
    20070H0944B1110                  - 4 -     

     1  industrial development agency holds funds or property in an
     2  amount or value equal to not less than (5%) of the cost of
     3  establishing the industrial development project, which funds or
     4  property are available for and shall be applied to the
     5  establishment of such project. If the industrial development
     6  project is exclusively a research and development facility for
     7  technology concerning pollution control, the Authority may
     8  contract to loan the industrial development agency in critical
     9  economic area A an amount not in excess of (55%) and in a
    10  critical economic area B or a critical economic area C an amount
    11  not in excess of (50%) of the cost of the industrial development
    12  project: Provided, however, That in each such instance, the
    13  Authority has determined that the industrial development agency
    14  holds funds or property in an amount or value equal to not less
    15  than (5%) of the cost of establishing the industrial development
    16  project, which funds or property are available for and shall be
    17  applied to the establishment of such project.
    18     (2)  If the industrial development project is any other type
    19  of industrial development project than exclusively a research
    20  and development facility, the Authority may, in critical
    21  economic area A contract to loan the industrial development
    22  agency an amount not in excess of (40%) of the cost of such
    23  industrial development project if it has determined that the
    24  industrial development agency holds funds or property in an
    25  amount or value equal to not less than (10%) of the cost of
    26  establishing the industrial development project, which funds or
    27  property are available for and shall be applied to establishment
    28  of such project.
    29     (2.1)  Where a contract to loan to an industrial development
    30  agency is to be made under provisions of this subsection (a),
    20070H0944B1110                  - 5 -     

     1  the following shall apply: that, in critical economic areas A, B
     2  or C where an average of (8%) or more of the labor force has
     3  been unemployed for the preceding calendar year, the Authority
     4  may contract to loan the industrial development agency an amount
     5  not in excess of (50%) of the cost of an industrial development
     6  project and an amount not in excess of (60%) of the cost of an
     7  industrial development project wherein the responsible buyer or
     8  tenant is a small business on the date of the application; and
     9  where an average of (10%) or more of the labor force has been
    10  unemployed for the preceding calendar year, the Authority may
    11  contract to loan the industrial development agency an amount not
    12  in excess of (60%) of the cost of an industrial development
    13  project and an amount not in excess of (70%) of the cost of an
    14  industrial development project wherein the responsible buyer or
    15  tenant is a small business on the date of application; further,
    16  provided that in each such instance the industrial development
    17  agency project percentage shall be removed. Where a contract to
    18  loan to an industrial development agency is to be made under the
    19  provisions of this subsection (a), the following shall apply:
    20  that, in critical economic areas A, B or C where an average of
    21  (4%) or more of the labor force has been unemployed for the
    22  preceding calendar year, the Authority may contract to loan the
    23  industrial development agency an amount not in excess of (40%)
    24  of the cost of an industrial development project wherein the
    25  responsible buyer or tenant is a small business and where an
    26  average of (6%) or more of the labor force has been unemployed
    27  for the preceding calendar year, the Authority may contract to
    28  loan the industrial development agency an amount not in excess
    29  of (50%) of the cost of an industrial development project
    30  wherein the responsible buyer or tenant is a small business and
    20070H0944B1110                  - 6 -     

     1  in such latter instance the industrial development agency
     2  project percentage shall be removed.
     3     (3)  If the industrial development project is any other type
     4  of industrial development project than exclusively a research
     5  and development facility, the Authority may, in critical
     6  economic areas B and C, contract to loan the industrial
     7  development agency an amount not in excess of (30%) of the cost
     8  of such industrial development project if it has determined that
     9  the industrial development agency holds funds or property in an
    10  amount or value equal to not less than (20%) of the cost of
    11  establishing the industrial development project, which funds or
    12  property are available for or shall be applied to the
    13  establishment of such project.
    14     (4)  Prior to the making of any loan under this subsection
    15  (a), the Authority shall have determined that the industrial
    16  development agency has obtained from other independent and
    17  responsible sources, such as banks and insurance companies or
    18  otherwise, a firm commitment for all other funds, over and above
    19  the loan of the Authority and such funds or property as the
    20  industrial development agency may hold, necessary for payment of
    21  all of the cost of establishing the industrial development
    22  project, and that the sum of all these funds, together with the
    23  machinery and equipment to be provided by the responsible tenant
    24  or responsible buyer, is adequate for the completion and
    25  operation of the industrial development project.
    26     (5)  If the industrial development project is a biotechnology
    27  enterprise or if it is a small business incubator, the Authority
    28  may contract to loan the industrial development agency an amount
    29  not in excess of (40%) of the cost of such industrial
    30  development project if it has determined that the industrial
    20070H0944B1110                  - 7 -     

     1  development agency holds funds or property in an amount or value
     2  equal to not less than (5%) of the cost of establishing the
     3  industrial development project, which funds or property are
     4  available for and shall be applied to establishment of such
     5  project.
     6     (6)  If the industrial development project is a biotechnology
     7  project and otherwise would not qualify based upon existing and
     8  projected revenues, the Authority may contract to loan the
     9  industrial development agency an amount not in excess of (40%)
    10  of the cost of such industrial development project if it has
    11  determined that the biotechnology enterprise has at least one
    12  million dollars ($1,000,000) in unencumbered assets and if it
    13  has determined that the industrial development agency holds
    14  funds or property in an amount or value equal to not less than
    15  (5%) of the cost of establishing the industrial development
    16  project, which funds or property are available for and shall be
    17  applied to establishment of such project.
    18     * * *
    19     Section 5.  Section 7(a) of the act, amended July 10, 1963
    20  (P.L.221, No.125), is amended to read:
    21     Section 7.  Loan Application Requirements.--Prior to the
    22  loaning of any funds to an industrial development agency for an
    23  industrial development project in a critical economic area, the
    24  Authority shall receive from such industrial development agency
    25  a loan application in form adopted by the Authority which shall
    26  contain, without being limited to, the following provisions:
    27     (a)  A general description of the industrial development
    28  project and a general description of the industrial or
    29  manufacturing enterprise [or], research and development
    30  facility, biotechnology enterprise or small business incubator
    20070H0944B1110                  - 8 -     

     1  for which the industrial development project has been or is to
     2  be established;
     3     * * *
     4     Section 6.  This act shall take effect in 60 days.


















    B26L64RLE/20070H0944B1110        - 9 -