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                                                      PRINTER'S NO. 2308

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1793 Session of 2001


        INTRODUCED BY DALEY, SHANER, JOSEPHS, TRAVAGLIO, ROONEY,
           LaGROTTA, CAPPELLI, HENNESSEY, GEORGE, BELARDI, ROBINSON,
           WOJNAROSKI, LEDERER, PETRONE, SCRIMENTI, CALTAGIRONE,
           YOUNGBLOOD, BELFANTI, YUDICHAK, HARHAI, FRANKEL, WALKO,
           McCALL, LAUGHLIN, DIVEN, COSTA, GRUCELA, DeWEESE, CAWLEY,
           WANSACZ, BROWNE, BUTKOVITZ, PALLONE, THOMAS, STEELMAN AND
           J. WILLIAMS, JUNE 19, 2001

        REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
           JUNE 19, 2001

                                     AN ACT

     1  Establishing the Higher Education Lodestar Partnership for
     2     Economic Revitalization (HELPER) program in the Department of
     3     Community and Economic Development; providing for the
     4     operation and administration of the HELPER program; and
     5     making an appropriation.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8  Section 1.  Short title.
     9     This act shall be known and may be cited as the HELPER Act.
    10  Section 2.  Declaration of policy.
    11     The General Assembly finds and declares as follows:
    12         (1)  The economically distressed areas of this
    13     Commonwealth often labor under multiple disadvantages in
    14     economic recovery efforts, including the out-migration of
    15     community leadership, that makes sustained economic recovery
    16     planning very difficult. Many businesses and individuals in


     1     these areas struggle simply to survive and frequently have
     2     little energy or time left over for long-range planning.
     3         (2)  To assist these communities and the entrepreneurs of
     4     this Commonwealth in identifying and realizing the economic
     5     opportunities that exist in these distressed areas, this act
     6     establishes the Higher Education Lodestar Partnership for
     7     Economic Revitalization (HELPER) program.
     8  Section 3.  Definitions.
     9     The following words and phrases when used in this act shall
    10  have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Department."  The Department of Community and Economic
    13  Development of the Commonwealth.
    14     "Eligible graduate student."  A student enrolled on at least
    15  a half-time basis in a program of study leading to an advanced
    16  degree who will have earned at least 24 credit hours in
    17  residence toward a degree prior to actual participation in the
    18  Higher Education Lodestar Partnership for Economic
    19  Revitalization program established in section 4 and whose
    20  educational institution has been nominated to participate in
    21  Higher Education Lodestar Partnership for Economic
    22  Revitalization.
    23     "Eligible institution."  An accredited degree-granting
    24  educational institution approved by the Commonwealth to offer
    25  degrees for advanced study beyond the baccalaureate level.
    26     "Exported."  In addition to the physical export of a salable
    27  product, includes any other activity that is a net income
    28  generator for a distressed region, including, but not limited
    29  to, tourism and increased health services to an indigenous
    30  elderly population covered by insurance programs.
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     1     "HELPER."  Higher Education Lodestar Partnership for Economic
     2  Revitalization.
     3     "HELPER project" or "project."  The three-year team study of
     4  an economically distressed area undertaken or to be undertaken
     5  by an eligible institution selected by the Department of
     6  Community and Economic Development.
     7     "Lodestar."  A star that is used as a point of reference,
     8  such as Polaris, the North Star and guiding principle, interest
     9  or ambition.
    10     "Nominated graduate student."  An eligible graduate student
    11  who has been named by the student's institution as a candidate
    12  to participate in a Higher Education Lodestar Partnership for
    13  Economic Revitalization project.
    14     "Nominated institution."  An eligible institution which has
    15  received tentative approval from the Department of Community and
    16  Economic Development for a specific Higher Education Lodestar
    17  Partnership for Economic Revitalization site and has been
    18  invited to assemble a study team from among its students and
    19  faculty.
    20     "Regular and direct participation."  More than ten hours per
    21  week, including preparation time.
    22     "Selected team member."  A nominated graduate student who has
    23  been selected by the Department of Community and Economic
    24  Development to participate as a member of a Higher Education
    25  Lodestar Partnership for Economic Revitalization team and who
    26  commits to team participation for a minimum of one year.
    27     "Small business."  A sole proprietorship that has fewer than
    28  50 full-time equivalent employees.
    29  Section 4.  HELPER program established.
    30     (a)  Establishment.--There is established a program within
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     1  the department to be known as the Higher Education Lodestar
     2  Partnership for Economic Revitalization (HELPER) program.
     3     (b)  Applications.--The department shall solicit and accept
     4  applications at least once every three years from eligible
     5  institutions to participate in the HELPER program. Each
     6  applicant shall identify a faculty member who will serve as the
     7  institution's team coordinator for the three-year study period.
     8  The team coordinator shall contribute the number of hours
     9  equivalent to a half-time faculty position to the HELPER
    10  project. The applicant shall identify an additional array of
    11  faculty members whose combined commitment to the project shall
    12  equal no less than another half-time faculty position.
    13     (c)  Team coordinator.--The regular educational workload of a
    14  team coordinator shall reflect the half-time commitment to the
    15  HELPER project. During the three-year period of the team study,
    16  the team coordinator shall maintain no other substantial
    17  employment or business interest, other than investments,
    18  requiring the coordinator's regular and direct participation.
    19     (d)  Other faculty members.--There shall be no fewer than
    20  three faculty members, including the team coordinator, committed
    21  to participation on a HELPER project from each applicant
    22  institution.
    23     (e)  Number of teams.--The department shall seek to create a
    24  total of eight teams of ten students each. For administrative
    25  convenience, four teams may be started in the first year of the
    26  program and four teams in the second year.
    27     (f)  Notice of study sites and deadline for applications.--No
    28  later than the announcement of the solicitation for applications
    29  from eligible institutions, the department shall issue a list of
    30  economically distressed areas as potential study sites for
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     1  HELPER teams. The deadline for applications after the initial
     2  request for proposals shall be six months.
     3  Section 5.  Review of applications and selection by department.
     4     (a)  Matching institutions with sites.--An applicant
     5  institution shall evaluate the list of eligible sites provided
     6  by the department and, in its application, identify the site or
     7  sites for which the institution could provide strong economic
     8  development planning services based on the matrix of
     9  institutional programs of study and potential resources in the
    10  various HELPER sites. Upon consultation with a potential
    11  awardee, the department may award a study site to an applicant
    12  which is not addressed in its applications, based on the sole
    13  judgment of the department on the variety of applicants,
    14  suitability and institutional strengths.
    15     (b)  Approval of institutions.--The department shall grant
    16  tentative approval to selected eligible institutions prior to
    17  making a final determination on team awards. The institution
    18  shall then assemble a study team from among its students and
    19  faculty. Final approval of the institution's application shall
    20  be granted after a team acceptable to the department has been
    21  assembled. The department, using regular news media outlets,
    22  shall publicize the basis for the final decisions on team
    23  awards.
    24     (c)  Evaluation criteria.--In evaluating the institutional
    25  HELPER applications, the department shall give reasonable weight
    26  to the strength of academic programs in each institution, the
    27  ability of its graduate students and the proximity of the
    28  institution to the HELPER site. Proximity, however, shall not be
    29  a controlling consideration.
    30     (d)  Selection of graduate students.--Eligible graduate
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     1  students shall be selected by the department after the nominated
     2  institution names at least two eligible graduate students for
     3  departmental consideration for each team slot. Nominated
     4  institutions may nominate their graduate student candidates by
     5  any process approved internally by the university or college
     6  administration.
     7     (e)  Interview with department official.--Nominated graduate
     8  students shall not be selected for team participation by the
     9  department without a personal interview with the department
    10  official in charge of team selection. All nominated students
    11  shall be afforded an interview.
    12  Section 6.  HELPER program description.
    13     (a)  Work plan.--The methods chosen by each team to
    14  accomplish the three phases of the HELPER project set forth in
    15  this section shall be described in a work plan prior to
    16  beginning each phase. The work plan shall be submitted to the
    17  department. The department may respond to the work plan with
    18  suggestions or questions, which the team shall answer. The final
    19  decision on work plan and method shall remain with the team.
    20     (b)  Team assembly.--Teams shall be assembled by nominated
    21  institutions with a view to bringing to bear the best academic
    22  talent that the institution has within its strongest, relevant
    23  programs which may include, but are not limited to, the areas of
    24  physical or biological sciences, business management and
    25  marketing. Team members may be offered one-year or multi-year
    26  membership on a team as determined by institutional policy.
    27     (c)  Phase I.--In Phase I of the HELPER program for a
    28  specific site, the HELPER team assigned to the distressed area
    29  shall identify in substantial detail the existing natural,
    30  institutional, cultural and human resources that may lend
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     1  themselves to the development of products or services that can
     2  be exported from the distressed region. This examination shall
     3  specifically include an inventory of past industries and income
     4  generators for the local economy over at least the preceding 100
     5  years. This inventory shall be shared with local residents to
     6  solicit comment on the items included and to point out possible
     7  additions. A Phase I report shall be compiled and printed in
     8  draft form.
     9     (d)  Phase II.--In Phase II, the team shall evaluate the
    10  viability of each of the resources or ideas identified in Phase
    11  I, including all historical industries and income generators.
    12  Those that are rejected as not feasible shall be accompanied by
    13  a rigorous, detailed analysis of the relevant regional, national
    14  and international markets. A Phase II report shall be compiled
    15  and printed in draft form.
    16     (e)  Phase III.--In Phase III, the team shall develop
    17  detailed strategies for pursuing the best chance opportunities
    18  identified in Phase II and shall begin marketing those
    19  opportunities to the appropriate regional and national
    20  investment communities outside the distressed area as well as
    21  providing access to those opportunities for the residents of the
    22  distressed area. Team strategies shall focus, in general, on
    23  small business opportunities inasmuch as these are the most
    24  likely to actually occur. A report shall be drafted in the final
    25  quarter of the last year of the project summarizing the key
    26  elements of the draft reports for Phases I and II and setting
    27  forth the status of activities during the third year. The final
    28  report shall be printed and disseminated to:
    29         (1)  The department.
    30         (2)  The majority and minority chairs of the Community
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     1     and Economic Development Committee of the Senate and the
     2     Commerce and Economic Development Committee of the House of
     3     Representatives.
     4         (3)  County commissioners, municipal officials and State
     5     legislators serving the distressed area.
     6         (4)  Local libraries.
     7         (5)  Economic development entities within the distressed
     8     area.
     9         (6)  Persons and institutions external to the distressed
    10     area that may provide access, in the department's judgment,
    11     to potential investors in the plans developed.
    12     (f)  Marketing efforts.--The department shall publicize the
    13  availability of plans and opportunities identified in the final
    14  report through its various marketing efforts on behalf of the
    15  Commonwealth, including Internet communications.
    16  Section 7.  Costs and stipends.
    17     (a)  Team member stipends.--Each selected team member shall
    18  receive a stipend of $12,000 annually, paid by the institution
    19  in monthly increments. The Pennsylvania Higher Education
    20  Assistance Agency shall not treat this stipend as income
    21  calculating eligibility for financial assistance of any kind.
    22  Team members shall work on the HELPER project at least 20 hours
    23  every week for 48 weeks of the program year. They shall be
    24  afforded sick leave benefits in accord with applicable
    25  university or college policy.
    26     (b)  Employment limited.--A selected team member may have no
    27  regular and direct participation in any other employment or
    28  business, other than coursework, during the period of team
    29  membership. A team member may enroll for no more than 15
    30  semester hours of credit.
    20010H1793B2308                  - 8 -

     1     (c)  Early withdrawal.--Early withdrawal from the team,
     2  unless at the request of the sponsoring institution, shall
     3  convert the stipend paid and received by a selected team member
     4  into a ten-year educational loan repayable at no interest to the
     5  Commonwealth.
     6     (d)  Grant to institution.--Each sponsoring institution shall
     7  receive a grant of 25% of the total stipends paid to team
     8  members each year from which it shall pay necessary employer
     9  taxes and team overhead. The sponsoring institution shall be
    10  responsible for providing secretarial support, office space,
    11  telephone and computer equipment and services and supplies for
    12  the team and travel, meals and lodging expenses for the team's
    13  faculty members. An allowance of 10% of the total stipend grant
    14  shall be available as a vouchered account for travel, meals and
    15  lodging expenses of the student team members.
    16  Section 8.  Initial implementation.
    17     The department shall implement the HELPER program so that the
    18  first study teams shall begin their work no later than November
    19  1, 2001.
    20  Section 9.  Regulations.
    21     The department is authorized to adopt regulations necessary
    22  to implement and administer the HELPER program.
    23  Section 10.  Appropriation.
    24     The sum of $1,500,000, or as much thereof as may be
    25  necessary, is hereby appropriated to the Department of Community
    26  and Economic Development for the fiscal year July 1, 2001, to
    27  June 30, 2002, to carry out the provisions of this act.
    28  Section 11.  Severability.
    29     The provisions of this act are severable. If any provision of
    30  this act or its application to any person or circumstance is
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     1  held invalid, the invalidity shall not affect other provisions
     2  or applications of this act which can be given effect without
     3  the invalid provision or application.
     4  Section 12.  Effective date.
     5     This act shall take effect immediately.

















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