PRINTER'S NO. 3247
No. 2421 Session of 2000
INTRODUCED BY FRANKEL, DeWEESE, M. COHEN, COSTA, COY,
CALTAGIRONE, BATTISTO, BEBKO-JONES, BELARDI, BELFANTI,
BROWNE, ARGALL, DALEY, DeLUCA, GEORGE, GIGLIOTTI, GORDNER,
GRUCELA, HARHAI, HERMAN, HERSHEY, JOSEPHS, KENNEY, LAUGHLIN,
LEDERER, LESCOVITZ, LEVDANSKY, MANN, MARKOSEK, McCALL, MELIO,
MYERS, ORIE, PESCI, PIPPY, PISTELLA, READSHAW, RUBLEY,
SEYFERT, STABACK, STEELMAN, STEVENSON, TANGRETTI, TIGUE,
TRELLO, TRICH, VAN HORNE, VEON, WALKO, WILLIAMS, YOUNGBLOOD
AND YUDICHAK, MARCH 22, 2000
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
MARCH 22, 2000
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
1 hereby enacts as follows:
2 Section 1. The last paragraph of section 2 of the act of May
3 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania
4 Industrial Development Authority Act, amended July 10, 1963
5 (P.L.221, No.125), is amended to read:
6 Section 2. Findings and Declaration of Policy.--It is hereby
7 determined and declared as a matter of legislative finding--
8 * * *
9 Therefore, it is hereby declared to be the policy of the
10 Commonwealth of Pennsylvania to promote the health, safety,
11 morals, right to gainful employment, business opportunities and
12 general welfare of the inhabitants thereof by the creation of a
13 body corporate and politic to be known as "The Pennsylvania
14 Industrial Development Authority" which shall exist and operate
15 for the public purpose of alleviating unemployment with its
16 resulting spread of indigency and economic stagnation by the
17 promotion and development of industrial and manufacturing
18 enterprises [and], research and development facilities,
19 biotechnology enterprises and small business incubators in those
20 areas of the Commonwealth in which conditions of critical
21 unemployment currently or may from time to time exist. Such
22 purposes are hereby declared to be public purposes for which
23 public money may be spent.
24 Section 2. Section 3(i) of the act, amended June 16, 1972
25 (P.L.475, No.153), is amended and the section is amended by
26 adding clauses to read:
27 Section 3. Definitions.--The following terms, whenever used
28 or referred to in this act, shall have the following meanings,
29 except in those instances where the context clearly indicates
30 otherwise:
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1 * * *
2 (i) The term "industrial development project" shall mean any
3 land, site, structure, facility or undertaking comprising or
4 being connected with or being a part of (i) an industrial
5 enterprise, (ii) a manufacturing enterprise, (iii) a research
6 and development enterprise, [or] (iv) an agricultural
7 enterprise, (v) a biotechnology enterprise, or (vi) a small
8 business incubator, established or to be established by an
9 industrial development agency in a critical economic area.
10 * * *
11 (v) The term "biotechnology enterprise" shall mean an
12 enterprise which is engaged in the research, development,
13 production or provision of biotechnology for the purpose of
14 developing or providing products, processes or technologies for
15 specific commercial or public purposes, including, but not
16 limited to, medical, pharmaceutical, nutritional and other
17 health-related purposes, agricultural purposes and environmental
18 purposes, or engaged in providing services or products necessary
19 for such research, development, product or provision of service.
20 A biotechnology enterprise requires substantial capital by
21 virtue of its technology needs. A biotechnology enterprise
22 creates or will create substantial employment opportunities by
23 its nature and technological needs.
24 (w) The term "small business incubator" shall mean a
25 facility in which small units of space may be leased by a tenant
26 and in which management maintains or provides access to business
27 development services for use by tenants.
28 Section 3. Section 5(b) of the act, amended July 10, 1963
29 (P.L.221, No.125), is amended to read:
30 Section 5. Powers of the Authority; General.--The Authority,
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1 as a public corporation and governmental instrumentality
2 exercising public powers of the Commonwealth, is hereby granted
3 and shall have and may exercise all powers necessary or
4 appropriate to carry out and effectuate the purposes of this
5 act, including the following powers, in addition to others
6 herein granted:
7 * * *
8 (b) To co-operate with industrial development agencies in
9 their efforts to promote the expansion of industrial,
10 manufacturing [and], research and development, biotechnology and
11 small business incubator activity in critical economic areas;
12 * * *
13 Section 4. Section 6(a) of the act, amended July 13, 1988
14 (P.L.534, No.95), is amended to read:
15 Section 6. Powers of the Authority; Loans to Industrial
16 Development Agencies.--When it has been determined by the
17 Authority upon application of an industrial development agency
18 and hearing thereon in the manner hereinafter provided, that the
19 establishment of a particular industrial development project of
20 such industrial development agency in a critical economic area
21 has accomplished or will accomplish the public purposes of this
22 act, the Authority may contract to loan such industrial
23 development agency an amount not in excess of the percentage of
24 the cost of such industrial development project, as established
25 or to be established as hereinafter set forth, subject, however,
26 to the following conditions:
27 (a) Industrial development projects to be established:
28 (1) If the industrial development project is exclusively a
29 research and development facility other than research and
30 development of pollution control technology, the Authority may,
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1 in each class of critical economic area, contract to loan the
2 industrial development agency (45%) of the cost of such
3 industrial development project if it has determined that the
4 industrial development agency holds funds or property in an
5 amount or value equal to not less than (5%) of the cost of
6 establishing the industrial development project, which funds or
7 property are available for and shall be applied to the
8 establishment of such project. If the industrial development
9 project is exclusively a research and development facility for
10 technology concerning pollution control, the Authority may
11 contract to loan the industrial development agency in critical
12 economic area A an amount not in excess of (55%) and in a
13 critical economic area B or a critical economic area C an amount
14 not in excess of (50%) of the cost of the industrial development
15 project: Provided, however, That in each such instance, the
16 Authority has determined that the industrial development agency
17 holds funds or property in an amount or value equal to not less
18 than (5%) of the cost of establishing the industrial development
19 project, which funds or property are available for and shall be
20 applied to the establishment of such project.
21 (2) If the industrial development project is any other type
22 of industrial development project than exclusively a research
23 and development facility, the Authority may, in critical
24 economic area A contract to loan the industrial development
25 agency an amount not in excess of (40%) of the cost of such
26 industrial development project if it has determined that the
27 industrial development agency holds funds or property in an
28 amount or value equal to not less than (10%) of the cost of
29 establishing the industrial development project, which funds or
30 property are available for and shall be applied to establishment
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1 of such project.
2 (2.1) Where a contract to loan to an industrial development
3 agency is to be made under provisions of this subsection (a),
4 the following shall apply: that, in critical economic areas A, B
5 or C where an average of (8%) or more of the labor force has
6 been unemployed for the preceding calendar year, the Authority
7 may contract to loan the industrial development agency an amount
8 not in excess of (50%) of the cost of an industrial development
9 project and an amount not in excess of (60%) of the cost of an
10 industrial development project wherein the responsible buyer or
11 tenant is a small business on the date of the application; and
12 where an average of (10%) or more of the labor force has been
13 unemployed for the preceding calendar year, the Authority may
14 contract to loan the industrial development agency an amount not
15 in excess of (60%) of the cost of an industrial development
16 project and an amount not in excess of (70%) of the cost of an
17 industrial development project wherein the responsible buyer or
18 tenant is a small business on the date of application; further,
19 provided that in each such instance the industrial development
20 agency project percentage shall be removed. Where a contract to
21 loan to an industrial development agency is to be made under the
22 provisions of this subsection (a), the following shall apply:
23 that, in critical economic areas A, B or C where an average of
24 (4%) or more of the labor force has been unemployed for the
25 preceding calendar year, the Authority may contract to loan the
26 industrial development agency an amount not in excess of (40%)
27 of the cost of an industrial development project wherein the
28 responsible buyer or tenant is a small business and where an
29 average of (6%) or more of the labor force has been unemployed
30 for the preceding calendar year, the Authority may contract to
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1 loan the industrial development agency an amount not in excess
2 of (50%) of the cost of an industrial development project
3 wherein the responsible buyer or tenant is a small business and
4 in such latter instance the industrial development agency
5 project percentage shall be removed.
6 (3) If the industrial development project is any other type
7 of industrial development project than exclusively a research
8 and development facility, the Authority may, in critical
9 economic areas B and C, contract to loan the industrial
10 development agency an amount not in excess of (30%) of the cost
11 of such industrial development project if it has determined that
12 the industrial development agency holds funds or property in an
13 amount or value equal to not less than (20%) of the cost of
14 establishing the industrial development project, which funds or
15 property are available for or shall be applied to the
16 establishment of such project.
17 (4) Prior to the making of any loan under this subsection
18 (a), the Authority shall have determined that the industrial
19 development agency has obtained from other independent and
20 responsible sources, such as banks and insurance companies or
21 otherwise, a firm commitment for all other funds, over and above
22 the loan of the Authority and such funds or property as the
23 industrial development agency may hold, necessary for payment of
24 all of the cost of establishing the industrial development
25 project, and that the sum of all these funds, together with the
26 machinery and equipment to be provided by the responsible tenant
27 or responsible buyer, is adequate for the completion and
28 operation of the industrial development project.
29 (5) If the industrial development project is a biotechnology
30 enterprise or if it is a small business incubator, the Authority
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1 may contract to loan the industrial development agency an amount
2 not in excess of (40%) of the cost of such industrial
3 development project if it has determined that the industrial
4 development agency holds funds or property in an amount or value
5 equal to not less than (5%) of the cost of establishing the
6 industrial development project, which funds or property are
7 available for and shall be applied to establishment of such
8 project.
9 (6) If the industrial development project is a biotechnology
10 project and otherwise would not qualify based upon existing and
11 projected revenues, the Authority may contract to loan the
12 industrial development agency an amount not in excess of (40%)
13 of the cost of such industrial development project if it has
14 determined that the biotechnology enterprise has at least one
15 million dollars ($1,000,000) in unencumbered assets and if it
16 has determined that the industrial development agency holds
17 funds or property in an amount or value equal to not less than
18 (5%) of the cost of establishing the industrial development
19 project, which funds or property are available for and shall be
20 applied to establishment of such project.
21 * * *
22 Section 5. Section 7(a) of the act, amended July 10, 1963
23 (P.L.221, No.125), is amended to read:
24 Section 7. Loan Application Requirements.--Prior to the
25 loaning of any funds to an industrial development agency for an
26 industrial development project in a critical economic area, the
27 Authority shall receive from such industrial development agency
28 a loan application in form adopted by the Authority which shall
29 contain, without being limited to, the following provisions:
30 (a) A general description of the industrial development
20000H2421B3247 - 8 -
1 project and a general description of the industrial or
2 manufacturing enterprise [or], research and development
3 facility, biotechnology enterprise or small business incubator
4 for which the industrial development project has been or is to
5 be established;
6 * * *
7 Section 6. This act shall take effect in 60 days.
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