PRINTER'S NO. 4279
No. 3007 Session of 1990
INTRODUCED BY VEON, LAUGHLIN, LaGROTTA, COLAFELLA AND LESCOVITZ,
NOVEMBER 12, 1990
REFERRED TO COMMITTEE ON APPROPRIATIONS, NOVEMBER 12, 1990
AN ACT
1 Appropriating money from the Sunny Day Fund to the Department of
2 Commerce for various projects throughout this Commonwealth
3 for fiscal year 1990-1991.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. The sums set forth in this act, or as much
7 thereof as may be necessary, are hereby specifically
8 appropriated from the Sunny Day Fund to the Department of
9 Commerce for this fiscal year July 1, 1990, to June 30, 1991,
10 for the projects listed to enhance economic development and the
11 creation of jobs in this Commonwealth in accordance with the
12 provisions of Chapter 1 of the act of July 1, 1985 (P.L.120,
13 No.32), known as the Sunny Day Fund Act.
14 Section 2. The following amounts are appropriated to the
15 Department of Commerce to induce companies to locate large
16 industrial, manufacturing or research and development
17 enterprises within this Commonwealth:
18 (1) For the purpose of making a loan to
1 Koppel Steel Corporation for machinery and
2 equipment for the Koppel Steel Works and
3 Ambridge Rolling Mill facilities formerly
4 operated by Babcock & Wilcox, in Koppel and
5 Ambridge, Beaver County. It is estimated that
6 this project will create a total of 650 new
7 jobs at the two facilities within three years
8 of operation................................... $ 4,000,000
9 (2) For the purpose of making a loan for
10 construction of or for leasehold improvements
11 to a facility to be occupied by Consolidated
12 Rail Corporation as a customer service center
13 in Allegheny County. It is estimated that
14 within three years of operation this project
15 will create more than 800 jobs of which 400
16 will be new jobs............................... $ 2,500,000
17 Section 3. It is the intent of the General Assembly that the
18 appropriations in section 2 shall be loaned at an annual
19 interest rate that in no case shall be less than the
20 Pennsylvania Industrial Development Authority's rate for the
21 area in which the project is located and for a term that shall
22 be no greater than the term for an equivalent Pennsylvania
23 Industrial Development Authority project. Private companies
24 which receive Sunny Day Fund assistance but fail to make the
25 investment in the enterprise development as specified in section
26 2 shall be liable for the repayment of all Sunny Day Fund
27 moneys, including any accrued interest thereon and any penalties
28 as provided in the loan documents or as may be set by the
29 Secretary of Commerce. Private companies which receive Sunny Day
30 Fund assistance but fail to create the number of jobs specified
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1 in the approved loan or other agreements with the Commonwealth
2 shall be liable for a penalty equal to an increase in the
3 interest charged to 2% greater than the current prime interest
4 rate for the remainder of the loan, unless the penalty is waived
5 by the Secretary of Commerce because the failure is due to
6 circumstances outside the control of the private company. The
7 prime interest rate shall be the highest rate known or declared
8 to be prime by those banking institutions located within this
9 Commonwealth with assets in excess of $3,000,000,000 as of the
10 date the penalty is assessed. The Secretary of Commerce shall
11 consult with the chairmen of the Appropriations Committee of the
12 Senate and the Appropriations Committee of the House of
13 Representatives prior to the establishment of waiver of
14 penalties.
15 Section 4. For a period equal to the term of assistance
16 provided each project approved under this act, the Department of
17 Commerce shall provide a written report on the status of each
18 project to the Secretary of the Senate and the Chief Clerk of
19 the House of Representatives by June 30 of each year. This
20 report shall contain, at a minimum, information pertaining to
21 the specific use of the Sunny Day Fund money, the interest rate
22 and term of the Sunny Day Fund loan, the amount of principal
23 outstanding and interest due on the loan, and the number of jobs
24 created by the project. All recipients of funds under this act
25 shall be required to provide any and all information required by
26 the department of commerce for the purpose of this act.
27 Section 5. No funds under this act shall be awarded by the
28 Department of Commerce after June 30, 1991. Any funds from this
29 appropriation remaining unexpended or unencumbered on June 30,
30 1992, shall automatically lapse into the Sunny Day Fund.
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1 Section 6. This act shall take effect immediately.
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