PRINTER'S NO. 136
No. 139 Session of 1997
INTRODUCED BY SALVATORE, JANUARY 21, 1997
REFERRED TO STATE GOVERNMENT, JANUARY 21, 1997
AN ACT
1 Creating the Stadium and Exposition Facilities Authority and
2 providing for its powers and duties.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Stadium and
7 Exposition Facilities Authority Act.
8 Section 2. 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 "Authority." The Stadium and Exposition Facilities Authority
13 created in section 3.
14 "Board." The Board of Directors of the Stadium and
15 Exposition Facilities Authority.
16 "Project." Any of the following where total cost exceeds
17 $15,000,000 and for which Commonwealth funds are sought.
1 (1) Construction or renovation of a sports stadium or
2 arena.
3 (2) Construction, expansion or renovation of a
4 convention or exposition center.
5 (3) Construction, expansion or renovation of a major
6 cultural or public entertainment facility.
7 The term does not include construction, expansion or renovation
8 of a facility owned or operated by an institution of higher
9 learning.
10 Section 3. Stadium and Exposition Facilities Authority created.
11 (a) Establishment.--There is hereby created under the
12 jurisdiction of the Governor's Office a body corporate and
13 politic, with corporate succession, to be known as the Stadium
14 and Exposition Facilities Authority. The authority is
15 constituted an instrumentality of the Commonwealth, and the
16 exercise by the authority of the powers conferred by this act
17 shall be deemed and held to be a public and essential
18 governmental function.
19 (b) Membership.--The authority shall consist of a nine-
20 member board of directors composed of the following:
21 (1) The Secretary of the Budget.
22 (2) The Secretary of Community and Economic Development.
23 (3) Seven members appointed by the Governor. An
24 appointment by the Governor shall be subject to the advice
25 and consent of a majority of all of the members of the
26 Senate.
27 (c) Term of office.--
28 (1) The Secretary of the Budget and the Secretary of
29 Community and Economic Development shall serve as members of
30 the board until their respective successors assume office.
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1 (2) The members initially appointed by the Governor
2 shall serve for terms of two, three and four years,
3 respectively, the particular term of each to be designated by
4 the Governor at the time of appointment. The terms of all of
5 their successors shall be four years each, except that any
6 person appointed to fill a vacancy shall serve only for the
7 unexpired term. Every member's term shall extend until a
8 successor is appointed and qualified. An appointed member of
9 the authority shall be eligible for reappointment.
10 (d) Officers.--The board shall elect a chair and vice chair.
11 The board shall select a secretary and treasurer who need not be
12 members of the board, and the same person may be selected to
13 serve as both secretary and treasurer. The Governor shall
14 appoint an executive director who shall manage the affairs of
15 the authority. At the time of appointment, the Governor shall
16 specify the term of office of the person initially appointed to
17 serve as executive director. Subsequent to the expiration of the
18 executive director's term of office, the board shall appoint a
19 person to serve as executive director, and the person so
20 appointed shall serve at the pleasure of the board. The person
21 initially appointed by the Governor shall be eligible for
22 appointment by the board. The executive director shall engage
23 the services of such employees as may be necessary to assist the
24 executive director in managing the affairs of the authority.
25 (e) Vesting of powers.--The powers of the authority shall be
26 vested in the board in office from time to time, and six members
27 of the board shall constitute a quorum at any meeting. Action
28 may be taken and motions and resolutions adopted by the
29 authority by the affirmative vote of at least six members of the
30 board. A vacancy on the board shall not impair the right of a
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1 quorum of the members of the board to exercise the powers and
2 perform the duties of the authority.
3 (f) Designees.--The public officer members of the board may
4 designate an officer or employee of the Commonwealth to
5 represent them at meetings of the board. Each designee may
6 lawfully vote and otherwise act on behalf of the member of the
7 board for whom the person constitutes the designee. The
8 designation shall be in writing and shall continue in effect
9 until revoked or amended in writing.
10 (g) Compensation and expenses.--A member shall not receive
11 compensation for services performed on behalf of the authority.
12 Members shall be entitled to reimbursement for travel and other
13 necessary expenses incurred by them while carrying out the
14 business of the authority.
15 Section 4. Purposes and powers.
16 (a) Purposes.--The authority is created for the purposes of
17 promoting urban redevelopment and general economic development
18 throughout this Commonwealth by providing a financing program,
19 technical assistance, administrative support and project review
20 to regional and local groups in the development of professional
21 sports facilities, convention and exposition centers and major
22 cultural and entertainment facilities.
23 (b) Powers specific to projects.--The authority shall have
24 the power and its duty shall be to analyze applications for
25 financial assistance to determine whether the Commonwealth
26 should participate in funding a project. The authority shall
27 develop and employ general criteria in evaluating all
28 applications and in addition shall develop and apply criteria
29 that relate to the several categories of projects. The criteria
30 for all projects shall, in addition to such other criteria as
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1 may be established by the authority, include the following:
2 (1) Evidence of significant financial commitments from
3 local government, the community and those most directly
4 benefitting from the project.
5 (2) Compatibility of the proposed location of the
6 project with the priorities and the long-range planning
7 principles of the host municipality and surrounding region.
8 (3) The proposed project's predicted effect on the
9 eradication of blight or the development of a difficult or
10 underutilized parcel.
11 (4) The process of development, including public review
12 and comment through public hearings, meetings, media coverage
13 or other means.
14 (5) Concerns raised regarding the project and how
15 proponents have addressed them.
16 (6) Support by the local community, including elected
17 officials and other community leaders.
18 (7) Assumptions used to estimate the economic benefits
19 from the facility.
20 (8) The proponents of the project and their experience
21 with developing similar projects.
22 (9) The experience of the staff for the project.
23 (10) The realistic direct job creation or retention
24 effects of the proposed facility, including anticipated full-
25 time, part-time, seasonal, blue-collar, white-collar and
26 construction jobs.
27 (11) The proposed project's competition with and impact
28 on enterprises within the relevant market, particularly those
29 enterprises developed and operated without Commonwealth
30 financial assistance.
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1 (12) Resource allocation to post-construction operating
2 expenses, including long-term maintenance and future capital
3 expenses.
4 (13) Proximity of the project to other existing or
5 proposed facilities.
6 (14) Innovative features in the proposed project or the
7 financial package for the project.
8 (c) General powers.--The authority shall have and may
9 exercise other powers necessary or appropriate to carry out and
10 effectuate the purposes of this act, including, but not limited
11 to, the following:
12 (1) Conduct examinations and investigations and take
13 testimony, under oath or affirmation, on any matter necessary
14 to the determination and approval of project applications.
15 (2) Sue and be sued, implead and be impleaded, complain
16 and defend in all courts.
17 (3) Adopt, use and alter at will a corporate seal.
18 (4) Make bylaws for the management and regulation of its
19 affairs, and make and, from time to time, adopt, amend and
20 repeal rules and regulations governing the administrative
21 procedures and business of the authority.
22 (5) Make contracts of every name and nature and execute
23 all instruments necessary or convenient for the carrying on
24 of its business.
25 (6) Accept grants from and enter into contracts or other
26 transactions with any Federal, State or local agency.
27 (7) (i) Take title by foreclosure or otherwise to any
28 project or other property pledged, mortgaged, encumbered
29 or otherwise available as security for a project financed
30 by the board, whether by loan, loan guarantee or
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1 otherwise, where acquisition is necessary to protect the
2 interests of the authority with respect to a project.
3 (ii) Pay all costs arising out of an acquisition
4 under subparagraph (i).
5 (iii) Sell, transfer and convey all or any portion
6 of a project acquired by the authority to any responsible
7 buyer.
8 (iv) The authority may require a dedicated source of
9 revenue to be available for repayment of any loan.
10 (8) Provide financial assistance, including, but not
11 limited to, loans, loan guarantees, bond guarantees and
12 grants for projects fulfilling the purposes of this act.
13 (9) Collect fees and charges relating to projects funded
14 under this act, as the board determines to be reasonable,
15 relating to activities undertaken in furtherance of the
16 purposes of this act.
17 (10) Receive appropriations and apply for and accept
18 grants, gifts, donations, bequests and settlements from any
19 public or private source.
20 (11) Acquire, own, hold, construct, improve,
21 rehabilitate, renovate, operate, maintain, sell, assign,
22 exchange, lease, mortgage or otherwise dispose of real and
23 personal property or any interest therein in the exercise of
24 its powers and the performance of its duties under this act.
25 (12) Procure insurance against any loss in connection
26 with its property and other assets and operations in any
27 amounts and from any insurers as it deems desirable.
28 (13) Contract for the services of attorneys, accountants
29 and financial experts and any other advisors, consultants and
30 agents as may be necessary in its judgment.
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1 (14) Prepare plans and reports and provide for public
2 participation as deemed appropriate.
3 (15) Do any other act necessary or convenient to the
4 exercise of the powers enumerated in this section or
5 reasonably implied therefrom.
6 Section 5. Revenues of authority.
7 (a) Sources.--The authority may receive money from sources
8 of revenue, including, but not limited to, the following:
9 (1) Funds appropriated to the authority from the Limited
10 Electronic Gaming Fund under the act of (P.L.
11 , No. ), known as the Limited Electronic Gaming Act.
12 (2) Federal funds appropriated to or granted to the
13 authority.
14 (3) Proceeds from the sale of authority assets.
15 (4) Repayment of loan principal.
16 (5) Payment of interest on loans made by the authority.
17 (6) Interest earned on investments made by the
18 authority.
19 (b) Control and investment of funds.--The board shall have
20 exclusive control and management of all moneys of the authority
21 and full power to invest moneys not required for immediate use
22 in any securities or other investments in which funds of the
23 Commonwealth are authorized to be invested and in any other type
24 of security or investment if, prior to the acquisition of the
25 securities or investments, the board determines by resolution
26 that the type of security or investment is in the best interests
27 of the authority and the State Treasurer approves of such type
28 of security or other investment.
29 Section 6. Funding for approved projects.
30 (a) Participant in negotiations.--The authority shall
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1 actively participate with all interested parties in negotiations
2 involving financing of a project. Where appropriate, the
3 authority shall advocate adoption of innovative mechanisms in
4 project operating agreements to preserve the viability of the
5 project during the repayment period of any long-term debt
6 undertaken to create a project.
7 (b) Amount of funding.--
8 (1) If the authority approves a project, it may provide
9 funds constituting between 15% and 35% of the total cost of
10 the project.
11 (2) Notwithstanding paragraph (1), if the authority, in
12 its discretion, finds compelling circumstances exist, it may
13 provide funding in excess of 35% of the total cost of a
14 project.
15 Section 7. Other laws applicable to authority.
16 (a) Legal matters.--The authority shall be considered to be
17 a Commonwealth agency for purposes of the act of October 15,
18 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act.
19 (b) Contracts.--The authority shall comply with competitive
20 bidding requirements imposed upon, and contract compliance plans
21 used by, the Department of General Services of the Commonwealth.
22 (c) Steel procurement.--Every project application shall
23 contain a certification that the applicant shall, in every
24 contract for construction, expansion or renovation, comply with
25 the provisions of the act of March 3, 1978 (P.L.6, No.3), known
26 as the Steel Products Procurement Act.
27 Section 8. Audits.
28 The accounts and books of the authority, including its
29 receipts, disbursements, contracts, mortgages, investments and
30 other matters relating to its finances, operation and affairs,
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1 shall be examined and audited by the Auditor General.
2 Section 9. Annual report.
3 The board shall provide the Governor and the General Assembly
4 with an annual report detailing all projects funded under this
5 act.
6 Section 10. Effective date.
7 This act shall take effect in 60 days.
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