PRINTER'S NO. 1829
No. 1370 Session of 2002
INTRODUCED BY PUNT, D. WHITE, LAVALLE, WAUGH, KUKOVICH, WENGER,
MUSTO, HELFRICK, WOZNIAK, GERLACH, ERICKSON, RHOADES,
LEMMOND, BOSCOLA AND SCARNATI, MARCH 22, 2002
REFERRED TO COMMUNITY AND ECONOMIC DEVELOPMENT, MARCH 22, 2002
AN ACT
1 Amending the act of June 29, 1996 (P.L.434, No.67), entitled, as
2 amended, "An act to enhance job creation and economic
3 development by providing for an annual financing strategy,
4 for opportunity grants, for job creation tax credits, for
5 small business assistance, for the Small Business Advocacy
6 Council, for a family savings program, for industrial
7 development assistance, for community development bank grants
8 and loans and for tax-exempt bond allocation; conferring
9 powers and duties on various administrative agencies and
10 authorities; further providing for various funds; and making
11 repeals," further providing for definitions, for the
12 Pollution Prevention Assistance Account and for eligibility
13 and terms and conditions of loans; providing for job and work
14 force training; and further providing for the power and
15 authority for the Pennsylvania Economic Development Financing
16 Authority; and making a repeal.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. The definitions of "capital development project"
20 or "project," "export activity" and "small business enterprises"
21 in section 1301 of the act of June 29, 1996 (P.L.434, No.67),
22 known as the Job Enhancement Act, added June 24, 1997 (P.L.247,
23 No.23) are amended to read:
24 Section 1301. Definitions.
1 The following words and phrases when used in this chapter
2 shall have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 * * *
5 "Capital development project" or "project." Land, buildings,
6 equipment and machinery and working capital which is acquired,
7 constructed, renovated or used by a small business enterprise:
8 (1) As part of a for-profit project or venture not of a
9 mercantile or service-related nature, except for hospitality
10 industry projects and except as otherwise provided in section
11 1303(a.1).
12 * * *
13 "Export activity." An activity undertaken by an enterprise
14 related to exports of goods and services outside of the United
15 States. [The term includes manufacturing, assembling and like
16 operations.]
17 * * *
18 "Small business enterprises." A for-profit corporation,
19 partnership [or], proprietorship, limited liability company or
20 other entity which meets the eligibility requirements
21 established by the department. The term shall include, but is
22 not limited to, small business enterprises located in small
23 business incubator facilities, small business enterprises which
24 are agricultural processors, small business enterprises which
25 are involved in agricultural production of farm commodities and
26 small business enterprises which manufacture apparel products.
27 * * *
28 Section 2. Sections 1302(b.1), 1303(a.1), (a.2) and (b), and
29 1304(a.1) and (a.2) of the act, amended or added November 17,
30 1998 (P.L.788, No.100), are amended to read:
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1 Section 1302. Small Business First Fund and Pollution
2 Prevention Assistance Account.
3 * * *
4 (b.1) Pollution Prevention Assistance Account.--There is
5 hereby created within the Small Business First Fund a Pollution
6 Prevention Assistance Account to provide revolving loans to
7 small businesses that employ 100 or fewer individuals[, that
8 operate from a stationary source] and that adopt or install
9 pollution prevention or energy-efficient equipment or processes.
10 The account shall be administered by the department. All
11 appropriations made for the purposes of this account and all
12 proceeds from loan repayments, including interest, and any and
13 all other deposits, payments and contributions from any other
14 source made available to the department for the purposes of this
15 account shall be deposited into this account.
16 * * *
17 Section 1303. Eligibility for and terms and conditions of
18 loans.
19 * * *
20 (a.1) Loans to small business enterprises in certain [areas]
21 business sectors.--
22 (1) The department may provide loans to small business
23 enterprises [located in distressed communities] which are in
24 the business-to-public service, mercantile, commercial or
25 point-of-sale retail business sectors in accordance with
26 conditions or criteria established by the department in
27 guidelines adopted for these loans. Loans shall be made in
28 accordance with the provisions of this chapter except that:
29 (i) [Loans may be made to mercantile or service-
30 related enterprises approved by the department.]
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1 (ii) The provisions of subsection (b) relating to
2 required increases in employment shall not apply to loans
3 made under this subsection.
4 (iii) The department may authorize flexible
5 repayment terms and an interest rate of not less than 2%.
6 (iv) The department may utilize additional area loan
7 organizations, including community development financial
8 institutions, to receive loan applications and administer
9 loans.
10 (v) The department may use its best judgment to
11 identify and secure collateral.
12 [(2) Distressed communities shall include:
13 (i) Any census tract in which:
14 (A) there is a median income below 80% of the
15 median income for this Commonwealth or the United
16 States;
17 (B) 20% or more of the population is below the
18 poverty level by family size published by the Bureau
19 of the Census; or
20 (C) there is an unemployment rate 50% higher
21 than the national average.
22 (ii) A Keystone Opportunity Zone.
23 (iii) Any other geographic area designated by the
24 department as distressed. The designation shall be
25 published in the Pennsylvania Bulletin.]
26 (3) The department and area loan organization shall not
27 make loans under this subsection on the basis of direct
28 financial return on investment and shall not be held to the
29 loan loss standards of private commercial lenders. Loans
30 shall be for the purpose of establishing a strong economic
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1 base and promoting entrepreneurial activity within the
2 distressed community.
3 (4) In order to receive a loan under this subsection, a
4 small business enterprise must demonstrate a direct impact on
5 the community in which it is located, on residents of that
6 community, or on the local and/or regional economy. The
7 department shall establish criteria that will assist small
8 business enterprises in making this demonstration.
9 (a.2) Pollution prevention assistance loans.--The Pollution
10 Prevention Assistance Account created under section 1302(b.1)
11 shall provide revolving loans to small businesses.
12 (1) The loans shall be for the purpose of enabling the
13 small business to adopt or install pollution prevention
14 equipment or processes to:
15 (i) Reduce or reuse raw materials onsite.
16 (ii) Reduce the production of waste.
17 (iii) Reduce energy consumption.
18 (2) The Pollution Prevention Assistance Account shall
19 not invest on the basis of direct financial return and shall
20 not be held to the loan loss standards of commercial lenders.
21 Loans shall be for the purpose of reducing pollution through
22 source reduction technologies or processes.
23 (3) A loan under this subsection may not exceed the
24 lesser of:
25 (i) [$50,000] $100,000; or
26 (ii) 75% of eligible project costs.
27 (4) Loans under this subsection shall have an interest
28 rate of 2% per year and a [maximum] repayment term of [seven]
29 not to exceed ten years.
30 (5) An industrial resource center receiving funds under
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1 the act of [July 2, 1993 (P.L.439, No.64), known as the Ben
2 Franklin/IRC Partnership Act] June 22, 2001 (P.L.400, No.31),
3 known as the Industrial Resources Center Partnership Act, may
4 utilize the account to provide assistance to a small business
5 enterprise for which a loan application has been made.
6 (6) Loans under this subsection shall be used to further
7 the goal of pollution prevention through the purchase and
8 installation of equipment to make operational changes and
9 modify production practices.
10 (b) Terms and conditions.--
11 (1) The department may make advances from the Small
12 Business First Fund, subject to the terms, conditions and
13 restrictions provided under this chapter, to area loan
14 organizations for the purpose of making loans to eligible
15 small enterprises for capital development projects which
16 demonstrate a substantial likelihood of creating or
17 preserving employment opportunities[.] or to small business
18 enterprises which are involved in agricultural production of
19 farm commodities, which demonstrate the enhancement and
20 growth of agricultural production activities or which
21 demonstrate the application and use of leading edge
22 technology or best environmental practices. All loans, except
23 for loans provided to small business enterprises that are
24 involved in agricultural production of farm commodities,
25 shall be limited to projects that demonstrate the creation or
26 preservation of one job for every $25,000 received from the
27 Small Business First Fund.
28 (2) No loans shall be made which would do any of the
29 following:
30 (i) Cause, aid or assist in, directly, the
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1 relocation of any business operations from one part of
2 this Commonwealth to another unless there is at least a
3 25% net increase in employment.
4 (ii) Refinance any portion of the total project cost
5 or other existing loans or debt.
6 (iii) Finance projects located outside the
7 geographic boundaries of this Commonwealth.
8 (iv) Provide funds, directly or indirectly, for
9 payment, distribution or as loan owners, partners or
10 shareholders of the small business enterprise, except as
11 ordinary compensation for services rendered.
12 (v) Provide funds for speculation in any kind of
13 property, real or personal, tangible or intangible.
14 (3) All loans shall carry an interest rate and term and
15 shall be secured by lien positions on collateral at the
16 highest level of priority as may be determined by the area
17 loan organization with the approval of the department.
18 Section 1304. Application and administration.
19 * * *
20 [(a.1) Distressed communities.--An area loan organization
21 designated to administer loans to distressed communities under
22 section 1303(a.1) shall provide documentation that the small
23 business enterprise is located in a distressed community as
24 required by the department.]
25 (a.2) Pollution prevention assistance loans.--
26 (1) Applications for loans from the Pollution Prevention
27 Assistance Account established under section 1302(b.1) shall
28 be on a form prescribed by the department and shall be
29 reviewed under subsection (b)(2). The Department of
30 Environmental Protection shall assist the department and
20020S1370B1829 - 7 -
1 provide technical assistance with application review.
2 (2) The department, an area loan organization or an
3 industrial resource center may charge fees, costs, service
4 charges, loan commitment fees or other expenses not to exceed
5 [1%] 5% of the loan amount.
6 * * *
7 Section 3. Section 1310 of the act is amended to read:
8 Section 1310. [Transitional] Eligibility provisions.
9 The following eligibility requirements and eligible uses
10 shall apply to all requests for funding received after this
11 chapter becomes effective [and before submission of the first
12 annual financing strategy]:
13 (1) A small business enterprise with 100 full-time
14 employees or less that proposes to undertake a capital
15 development.
16 (2) (i) The maximum loan amount for land, buildings and
17 machinery and equipment is $200,000 or 50% of the total
18 eligible project costs, whichever is less. The maximum
19 loan amount for working capital is $100,000 or 50% of the
20 total eligible project costs, whichever is less.
21 (ii) Loans used for real estate shall have a
22 repayment period of up to ten years. Loans used for
23 machinery and equipment shall have a repayment period of
24 up to seven years. Loans used for working capital shall
25 have a repayment period of up to three years. In projects
26 where two or more uses of funds are planned, the loan
27 terms may be blended.
28 (iii) Interest rates shall [be fixed at] not exceed
29 5%.
30 (iv) All loans must be adequately secured.
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1 (3) (i) Applications for assistance under the Capital
2 Loan Fund Act which have been approved prior to the
3 effective date of this chapter will be processed in
4 accordance with this act. Applications for assistance
5 which have been received but which have not been approved
6 prior to the effective date of this chapter will be
7 evaluated and processed in accordance with this chapter.
8 (ii) Applications for assistance under section 7.13
9 of the act of January 8, 1960 (1959 P.L.2119, No.787),
10 known as the Air Pollution Control Act, section 709 of
11 the act of July 6, 1989 (P.L.169, No.32), known as the
12 Storage Tank and Spill Prevention Act, and the Recycling
13 Incentive Development Account which have been approved
14 prior to the effective date of this chapter shall be
15 processed in accordance with those respective provisions.
16 Applications for assistance which have been received but
17 which have not been approved prior to the effective date
18 of this chapter shall be evaluated and processed in
19 accordance with this chapter.
20 Section 4. Section 1311(e), (g) and (h) of the act, added
21 June 24, 1997 (P.L.247, No.23), are amended and the section is
22 amended by adding a subsection to read:
23 Section 1311. Export Financing Loan Fund; loans and
24 applications; powers and duties.
25 * * *
26 (e) Conditions.--A loan must comply with all of the
27 following:
28 [(1) Be to a company eligible for a policy.
29 (2) Be guaranteed by the Working Capital Guaranty
30 Program offered by the Ex-Im Bank or be on an export credit
20020S1370B1829 - 9 -
1 sales contract insured by a policy.]
2 (3) Be limited to [companies that have facilities within
3 this Commonwealth which are involved in export activities]
4 the financing of export activities that take place within
5 this Commonwealth.
6 (4) Be based on an export contract that requires payment
7 in United States dollars.
8 [(5) Be for the purpose of financing export activity.]
9 (6) Be limited to companies with 250 or fewer full-time
10 [equivalent] employees.
11 (e.1) Additional conditions.--At the discretion of the
12 department, a loan may also be required to comply with one or
13 both of the following conditions:
14 (1) Be to a company eligible for a policy.
15 (2) Be guaranteed by the Working Capital Guaranty
16 Program offered by the Ex-Im Bank or be on an export credit
17 sales contract insured by a policy.
18 * * *
19 (g) Restrictions.--Export Financing Loan Fund assistance
20 shall not exceed $350,000 for any individual project [or 50% of
21 the eligible project costs, whichever is less]. A loan must not
22 supplant funding which is otherwise available from private
23 sector sources on commercially reasonable terms.
24 (h) Terms.--A loan shall have a term, rate of interest,
25 transaction size and other business conditions that comply with
26 the requirements [of the Ex-Im Bank and any other requirements]
27 of the department.
28 * * *
29 Section 5. The act is amended by adding a chapter to read:
30 CHAPTER 29
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1 CUSTOMIZED JOB AND WORK FORCE DEVELOPMENT TRAINING
2 Section 2901. Definitions.
3 The following words and phrases when used in this chapter
4 shall have the meanings given to them in this section unless the
5 context clearly indicates otherwise:
6 "Applicant." Any of the following:
7 (1) A local education agency.
8 (2) Industrial resource centers.
9 (3) Economic development organizations certified by the
10 department. The term includes area loan organizations and
11 industrial development corporations as defined in section
12 2301.
13 (4) A greenhouse.
14 (5) A private company.
15 (6) A local work force investment board.
16 "Capital investment." An expenditure for land, buildings,
17 renovations, machinery and equipment that is directly related to
18 the need for the proposed training.
19 "Greenhouse." A nonprofit organization recognized under
20 section 501(c)(3) of the Internal Revenue Code of 1986 (Public
21 Law 99-514, 26 U.S.C. § 501(c)(3)) that is formed for the
22 express purpose of creating university/business partnerships to
23 advance science and technology and to support economic and work
24 force development.
25 "Industrial resource center." An industrial resource center
26 as defined in the act of June 22, 2001 (P.L.400, No.31), known
27 as the Industrial Resources Center Partnership Act.
28 "Labor organization." An organization of any kind or any
29 agency or employee representation committee or plan in which
30 employees participate and which exists for the purpose, in whole
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1 or in part, of dealing with employers concerning grievances,
2 labor disputes, wages, rates of pay, hours of employment or
3 conditions of work. The term does not include any labor
4 organization which practices discrimination in membership
5 because of race, color, creed, national origin, sex or political
6 affiliation.
7 "Local education agency." A Pennsylvania institution
8 certified by the Department of Education, which may include any
9 of the following:
10 (1) Area vocational-technical schools.
11 (2) Community and junior colleges.
12 (3) Intermediate units.
13 (4) Licensed private/proprietary business and trade
14 schools.
15 (5) Public school districts.
16 (6) State or private colleges or universities.
17 "Local work force investment board." An entity recommended
18 for certification by the Pennsylvania Workforce Investment Board
19 and certified by the Governor.
20 "Private company." A business, professional service company
21 or other enterprise. The term may include a group of two or more
22 private companies operating as a consortium in order to take
23 advantage of a common training program. The term does not
24 include point-of-sale retail businesses.
25 "Trainee." An individual who is an employee or prospective
26 employee and is enrolled in an eligible training program
27 designed to enable that individual to obtain or retain
28 employment.
29 "Training program." A systematic program designed to provide
30 a trainee with the skills and knowledge necessary to meet a
20020S1370B1829 - 12 -
1 private company's or labor organization's specifications for an
2 occupation or trade, the successful completion of which results
3 in one of the following:
4 (1) The trainee being employed or continuing to be
5 employed full time by that private company.
6 (2) A trainee receiving instruction or training related
7 to an occupation with a shortage of skilled workers or a
8 targeted industry cluster as referred to in section
9 2907(b)(1).
10 The programs may involve instruction within a local education
11 agency, within a private company plant or on-the-job training,
12 within a training program of a labor organization, through
13 technology-based instruction or any combination thereof.
14 Section 2902. Establishment of program.
15 There is established within the department the Customized Job
16 and Workforce Development Training Program for the purpose of
17 providing grants for training programs that result in one or
18 more of the following objectives:
19 (1) The location or expansion of a private company or
20 greenhouse within this Commonwealth accompanied by the
21 creation of jobs paying competitive wages and the making of
22 capital expenditures.
23 (2) The expansion or upgrade of existing positions
24 resulting in increased wages for that position.
25 (3) The retention of jobs that would otherwise be lost
26 to this Commonwealth.
27 (4) The promotion of local education agency/business
28 partnerships and business/business partnerships where a
29 direct connection between the development of skills and
30 resultant employment by one or more private companies can be
20020S1370B1829 - 13 -
1 demonstrated.
2 (5) The promotion of efforts by a labor organization to
3 upgrade the skills of its members.
4 Section 2903. Powers and duties of department.
5 (a) General powers and duties.--The department shall have
6 the necessary powers and duties in carrying out the provisions
7 of this chapter:
8 (1) To promulgate such rules, regulations and
9 guidelines, develop such forms and institute such procedures
10 as may be necessary to implement the Customized Job and
11 Workforce Development Training Program authorized by this
12 chapter.
13 (2) To enter into contracts and similar agreements, and
14 to enter into lawsuits or other legal actions, as necessary
15 to carry out and enforce the provisions of this chapter.
16 (3) To approve or disapprove any request for grants
17 according to the procedures outlined in this chapter.
18 (4) To require such information and records from each
19 applicant and its authorized training provider as it deems
20 necessary to carry out its responsibilities under this
21 chapter.
22 (b) Additional powers and duties.--The department shall also
23 have all necessary powers and duties to enter into one or more
24 partnerships with one or more local education agencies or other
25 training providers to provide training programs. Such training
26 programs shall be for basic and entry-level skills, technology
27 skill training, training related to job retention or other
28 specified training assistance as determined by the department to
29 be more effectively delivered through a partnership arrangement.
30 Under such a partnership arrangement, the department may limit
20020S1370B1829 - 14 -
1 the number and category of applicants that may submit
2 applications for assistance and may establish minimal standards
3 and requirements for project eligibility. These requirements may
4 be separate and distinct from the requirements established under
5 this chapter, except that the provisions of sections 2905 and
6 2906(c) and (d) shall apply to all training programs funded
7 under this chapter.
8 Section 2904. Eligibility.
9 (a) Applicants.--
10 (1) An applicant may submit an application to the
11 department for funding of a training program that meets the
12 requirements of this chapter and any guidelines published by
13 the department.
14 (2) Industrial resource centers and economic development
15 organizations may apply for funding on behalf of a private
16 company, greenhouse or labor organization, but may not serve
17 as an authorized training provider for the purposes of direct
18 training of the trainees. A local work force investment board
19 may apply for funding only on behalf of projects that promote
20 local education agency/business partnerships or
21 business/business partnerships.
22 (b) Local contacts.--In the case of an application by or on
23 behalf of a private company, the applicant shall demonstrate
24 that the private company has contacted the local work force
25 investment board and the local county board of assistance, when
26 the application includes plans for training entry level
27 employees, to solicit referrals of candidates for the training
28 program.
29 (c) Trainees.--Funding shall be used to provide training or
30 instruction only for Pennsylvania residents.
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1 Section 2905. Use of funds.
2 (a) Use of funds.--Funds awarded under the Customized Job
3 and Workforce Development Training Program may be used to
4 reimburse the cost of a training program which meets one or more
5 of the objectives set forth in section 2902. Such costs may
6 include, but are not limited to, instructional costs, costs of
7 instructional or training material or software, costs associated
8 with tuition reimbursement and reasonable administrative costs
9 as determined by the department.
10 (b) Limitations on use of funds.--
11 (1) Eligible costs shall not include wages of trainees
12 during training, any costs related to building construction
13 or renovation or the acquisition, upgrade or installation of
14 any equipment or machinery, including computer equipment.
15 (2) No funds awarded shall cause a reduction in the work
16 force of a private company, result in the displacement of
17 workers employed by the private company prior to the
18 commencement of the training program or cause the violation
19 of any conditions of existing collective bargaining
20 agreements. However, because the introduction of new
21 manufacturing techniques, technology and modernization may
22 lead to short-term reductions in the work force, the
23 secretary may waive this funding limitation in those
24 situations in which the long-term economic benefits to be
25 gained by the introduction of new manufacturing techniques,
26 technology and modernization significantly exceed the short-
27 term detriment to the work force.
28 (3) No funds may be used for point-of-sale retail job
29 training.
30 (4) No more than 10% of the funds appropriated in any
20020S1370B1829 - 16 -
1 one fiscal year shall be granted to any one private company,
2 greenhouse or labor organization, including any affiliates
3 thereof.
4 (5) No funding may be awarded to or on behalf of any
5 private company or labor organization, including any
6 affiliates thereof, for more than two successive fiscal years
7 and for no more than three out of every five fiscal years.
8 Section 2906. Requirements.
9 (a) Private match.--Applications for assistance under this
10 chapter must include a written commitment from the private
11 company or labor organization to invest private matching funds
12 in the training project. The amount of private matching funds
13 shall be established by the department, which match shall not be
14 less than 25% of the total eligible project cost. The department
15 may establish differing standards for small businesses and labor
16 organizations.
17 (b) Small business reserve.--At the beginning of each fiscal
18 year, the department shall establish a reserve not to exceed 25%
19 of the appropriation received which shall be made available to
20 small businesses, as defined by the department. Any funds that
21 remain uncommitted from this reserve after March 1 of the fiscal
22 year may be made available to any eligible training program.
23 (c) Wage thresholds.--Training assistance may be provided
24 for position upgrades only for positions that will result in an
25 increase in wages or salaries.
26 (d) Training and instructional programs.--
27 (1) All applications submitted must contain a
28 description of the proposed training or instructional program
29 to be carried out. The department shall prescribe the form
30 and content to be contained in those descriptions.
20020S1370B1829 - 17 -
1 (2) An applicant may subcontract with other
2 organizations or individuals for the provision of all or a
3 portion of the services to be provided, and funds may be
4 allocated from the applicant to the subcontractor for such
5 purposes.
6 Section 2907. Evaluation.
7 (a) Available resources.--The applicant, when preparing
8 applications for training programs, shall consider other
9 available resources, including, but not limited to, private
10 sector funds, other State or local agency training programs or
11 funds made available under the Workforce Investment Act of 1998
12 (Public Law 105-200, 112 Stat. 936) or such other Federal
13 programs which provide funds for employment training.
14 (b) Evaluation.--The department shall establish criteria for
15 awarding of grants which shall take into account the objectives
16 set forth in section 2902 and which give priority to those
17 applications that have one or more of the following
18 characteristics:
19 (1) A training program determined by the department to
20 be in a growth industry vital to this Commonwealth's
21 competitiveness, including, but not limited to, the following
22 industry clusters:
23 (i) agribusiness;
24 (ii) advanced manufacturing;
25 (iii) advanced materials;
26 (iv) life sciences, biotechnology and health care;
27 (v) environmental technology; and
28 (vi) information technology.
29 (2) The private company or labor organization is
30 located:
20020S1370B1829 - 18 -
1 (i) in a municipality in which the average
2 unemployment rate in the most recently completed calendar
3 year is above the Statewide average unemployment rate for
4 the same period;
5 (ii) in a State-designated enterprise zone; or
6 (iii) in a municipality or region that has suffered
7 a significant loss of jobs due to one or more major plant
8 closings, layoffs or natural or manmade disasters.
9 (3) The private company is creating 50 or more jobs and
10 is making a capital investment of $1,000,000 or more.
11 Section 2908. Compliance with statutes and collective
12 bargaining agreements.
13 The department shall require each applicant, private company,
14 greenhouse and labor organization to comply with appropriate
15 Federal and State statutes and regulations governing employment
16 discrimination, minority recruitment, minimum or prevailing
17 wages, worksite safety and procurement practices. The department
18 shall require each private company to certify that the training
19 program does not abridge any contractual agreement between the
20 private company and the duly recognized collective bargaining
21 representative of its employees.
22 Section 2909. Penalties.
23 (a) Private company.--A private company that fails to create
24 the number of jobs specified in its agreement with or commitment
25 to the department or that fails to make the amount of capital
26 investment specified in the application to the department or
27 that fails to substantially carry out the training program
28 approved by the department shall be liable to repay all or part
29 of the amount of the grant awarded under this chapter unless the
30 department determines that the company's failure is due to
20020S1370B1829 - 19 -
1 circumstances outside the control of the company.
2 (b) Applicants.--An applicant or subcontractor thereof that
3 fails to provide for or to perform under a training program as
4 approved by the department may be required to repay to the
5 department any funds it received under a grant awarded by the
6 department. The department shall have all necessary powers to
7 investigate and act upon any complaint it receives from a
8 private company, greenhouse, labor organization or trainee as to
9 the inadequacy of training received, including the recovery of
10 grant funds expended.
11 Section 6. Section 5105 of the act is amended to read:
12 Section 5105. Power and authority of the Pennsylvania Economic
13 Development Financing Authority.
14 In addition to the powers set forth in section 6.3 of the act
15 of August 23, 1967 (P.L.251, No.102), known as the Economic
16 Development Financing Law, the Pennsylvania Economic Development
17 Financing Authority established under that act shall have the
18 power and is hereby authorized to issue its limited obligation
19 revenue bonds and other types of financing, as in the judgment
20 of the financing authority shall be necessary, to provide
21 sufficient funds for any activity the department or the
22 Pennsylvania Industrial Development Authority is permitted to
23 take with respect to the loan portfolios subject to their
24 respective administrative authority [as set forth in section
25 1302]. Bonds authorized to be issued under this section shall
26 not be a debt or liability of the Commonwealth and shall not
27 create or constitute any indebtedness, liability or obligation
28 of the Commonwealth except to the extent the bonds are secured
29 by the pledge of loan portfolios. Bonds authorized to be issued
30 under this section shall be payable solely from the revenues or
20020S1370B1829 - 20 -
1 funds pledged or available for their repayment.
2 Section 7. The act of December 20, 1985 (P.L.492, No.116),
3 known as the Customized Job Training Act, is repealed.
4 Section 8. This act shall take effect immediately.
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