PRIOR PRINTER'S NO. 1829 PRINTER'S NO. 1908
No. 1370 Session of 2002
INTRODUCED BY PUNT, D. WHITE, LAVALLE, WAUGH, KUKOVICH, WENGER,
MUSTO, HELFRICK, WOZNIAK, GERLACH, ERICKSON, RHOADES,
LEMMOND, BOSCOLA, SCARNATI, STOUT, THOMPSON, C. WILLIAMS AND
ROBBINS, MARCH 22, 2002
AS AMENDED ON SECOND CONSIDERATION, APRIL 16, 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, AMENDED OR added June 24, 1997 <--
23 (P.L.247, No.23) are amended AND NOVEMBER 17, 1998 (P.L.788, <--
24 NO.100), ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A
1 DEFINITION to read:
2 Section 1301. 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 * * *
7 "Capital development project" or "project." Land, buildings,
8 equipment and machinery and working capital which is acquired,
9 constructed, renovated or used by a small business enterprise:
10 (1) As part of a for-profit project or venture not of a
11 mercantile or service-related nature, except for hospitality
12 industry projects and except as otherwise provided in section
13 1303(a.1).
14 (2) TO BRING A SMALL BUSINESS ENTERPRISE INTO COMPLIANCE <--
15 WITH FEDERAL OR STATE ENVIRONMENTAL LAWS OR REGULATIONS OR TO
16 COMPLETE AN APPROVED REMEDIATION PROJECT OR TO PERMIT THE
17 SMALL BUSINESS ENTERPRISE TO ADOPT GENERALLY ACCEPTABLE
18 POLLUTION PREVENTION PRACTICES.
19 (3) TO PROVIDE ASSISTANCE TO SMALL BUSINESS ENTERPRISES
20 THAT ARE RECYCLERS OF MUNICIPAL OR COMMERCIAL WASTE OR THAT
21 ARE MANUFACTURERS USING RECYCLED MUNICIPAL OR COMMERCIAL
22 WASTE MATERIALS.
23 (4) TO ASSIST A SMALL BUSINESS ENTERPRISE WITH DEFENSE
24 CONVERSION ACTIVITIES.
25 (5) FOR THE MANUFACTURE OF PRODUCTS TO BE EXPORTED OUT
26 OF THE UNITED STATES BY A SMALL BUSINESS ENTERPRISE AS PART
27 OF A FOR-PROFIT PROJECT OR VENTURE NOT OF A MERCANTILE OR
28 SERVICE-RELATED NATURE, EXCEPT FOR EXPORT-RELATED SERVICES
29 AND INTERNATIONAL EXPORT-RELATED MERCANTILE VENTURES OR
30 ADVANCED TECHNOLOGY AND COMPUTER-RELATED SERVICES AND
20020S1370B1908 - 2 -
1 MERCANTILE VENTURES, WHICH WILL INCREASE THIS COMMONWEALTH'S
2 NATIONAL OR INTERNATIONAL MARKET SHARES.
3 (6) AS PART OF A FOR-PROFIT PROJECT OR VENTURE THAT
4 MEETS THE REQUIREMENTS OF SECTION 1303(A.1).
5 (7) TO ASSIST IN THE START-UP OR EXPANSION OF A FOR-
6 PROFIT OR NOT-FOR-PROFIT CHILD DAY-CARE CENTER SUBJECT TO
7 LICENSURE BY THE COMMONWEALTH.
8 "CHILD DAY-CARE CENTER." ANY PREMISES IN WHICH CHILD DAY
9 CARE IS PROVIDED SIMULTANEOUSLY FOR SEVEN OR MORE CHILDREN WHO
10 ARE NOT RELATED TO THE PROVIDER.
11 * * *
12 "Export activity." An activity undertaken by an enterprise
13 related to exports of goods and services outside of the United
14 States. [The term includes manufacturing, assembling and like
15 operations.]
16 * * *
17 "Small business enterprises." A for-profit corporation, <--
18 partnership [or], proprietorship, limited liability company or
19 other entity which meets the eligibility requirements
20 established by the department. The term shall include, but is
21 not limited to, small business enterprises located in small
22 business incubator facilities, small business enterprises which
23 are agricultural processors, small business enterprises which
24 are involved in agricultural production of farm commodities and
25 small business enterprises which manufacture apparel products.
26 "SMALL BUSINESS [ENTERPRISES] ENTERPRISE." A FOR-PROFIT <--
27 CORPORATION, PARTNERSHIP [OR], PROPRIETORSHIP, LIMITED LIABILITY
28 COMPANY OR OTHER ENTITY WHICH MEETS THE ELIGIBILITY REQUIREMENTS
29 ESTABLISHED BY THE DEPARTMENT. THE TERM SHALL INCLUDE, BUT IS
30 NOT LIMITED TO, A SMALL BUSINESS [ENTERPRISES] ENTERPRISE WHICH:
20020S1370B1908 - 3 -
1 (1) IS LOCATED IN A SMALL BUSINESS INCUBATOR
2 [FACILITIES, SMALL BUSINESS ENTERPRISES WHICH ARE] FACILITY;
3 (2) IS AN AGRICULTURAL [PROCESSORS AND SMALL BUSINESS
4 ENTERPRISES WHICH MANUFACTURE] PROCESSOR;
5 (3) MANUFACTURES APPAREL PRODUCTS[.]; OR
6 (4) IS A FOR-PROFIT OR NOT-FOR-PROFIT CHILD DAY-CARE
7 CENTER SUBJECT TO LICENSURE BY THE COMMONWEALTH.
8 * * *
9 Section 2. Sections 1302(b.1), 1303(a.1), (a.2) and (b), and
10 1304(a.1) and (a.2) of the act, amended or added November 17,
11 1998 (P.L.788, No.100), are amended to read:
12 Section 1302. Small Business First Fund and Pollution
13 Prevention Assistance Account.
14 * * *
15 (b.1) Pollution Prevention Assistance Account.--There is
16 hereby created within the Small Business First Fund a Pollution
17 Prevention Assistance Account to provide revolving loans to
18 small businesses that employ 100 or fewer individuals[, that
19 operate from a stationary source] and that adopt or install
20 pollution prevention or energy-efficient equipment or processes.
21 The account shall be administered by the department. All
22 appropriations made for the purposes of this account and all
23 proceeds from loan repayments, including interest, and any and
24 all other deposits, payments and contributions from any other
25 source made available to the department for the purposes of this
26 account shall be deposited into this account.
27 * * *
28 Section 1303. Eligibility for and terms and conditions of
29 loans.
30 * * *
20020S1370B1908 - 4 -
1 (a.1) Loans to small business enterprises in certain [areas]
2 business sectors.--
3 (1) The department may provide loans to small business
4 enterprises [located in distressed communities] which are in
5 the business-to-public service, mercantile, commercial or
6 point-of-sale retail business sectors in accordance with
7 conditions or criteria established by the department in
8 guidelines adopted for these loans. Loans shall be made in
9 accordance with the provisions of this chapter except that:
10 (i) [Loans may be made to mercantile or service-
11 related enterprises approved by the department.]
12 (ii) The provisions of subsection (b) relating to
13 required increases in employment shall not apply to loans
14 made under this subsection.
15 (iii) The department may authorize flexible
16 repayment terms and an interest rate of not less than 2%.
17 (iv) The department may utilize additional area loan
18 organizations, including community development financial
19 institutions, to receive loan applications and administer
20 loans.
21 (v) The department may use its best judgment to
22 identify and secure collateral.
23 [(2) Distressed communities shall include:
24 (i) Any census tract in which:
25 (A) there is a median income below 80% of the
26 median income for this Commonwealth or the United
27 States;
28 (B) 20% or more of the population is below the
29 poverty level by family size published by the Bureau
30 of the Census; or
20020S1370B1908 - 5 -
1 (C) there is an unemployment rate 50% higher
2 than the national average.
3 (ii) A Keystone Opportunity Zone.
4 (iii) Any other geographic area designated by the
5 department as distressed. The designation shall be
6 published in the Pennsylvania Bulletin.]
7 (3) The department and area loan organization shall not
8 make loans under this subsection on the basis of direct
9 financial return on investment and shall not be held to the
10 loan loss standards of private commercial lenders. Loans
11 shall be for the purpose of establishing a strong economic
12 base and promoting entrepreneurial activity within the
13 distressed community.
14 (4) In order to receive a loan under this subsection, a
15 small business enterprise must demonstrate a direct impact on
16 the community in which it is located, on residents of that
17 community, or on the local and/or regional economy. The
18 department shall establish criteria that will assist small
19 business enterprises in making this demonstration.
20 (a.2) Pollution prevention assistance loans.--The Pollution
21 Prevention Assistance Account created under section 1302(b.1)
22 shall provide revolving loans to small businesses.
23 (1) The loans shall be for the purpose of enabling the
24 small business to adopt or install pollution prevention
25 equipment or processes to:
26 (i) Reduce or reuse raw materials onsite.
27 (ii) Reduce the production of waste.
28 (iii) Reduce energy consumption.
29 (2) The Pollution Prevention Assistance Account shall
30 not invest on the basis of direct financial return and shall
20020S1370B1908 - 6 -
1 not be held to the loan loss standards of commercial lenders.
2 Loans shall be for the purpose of reducing pollution through
3 source reduction technologies or processes.
4 (3) A loan under this subsection may not exceed the
5 lesser of:
6 (i) [$50,000] $100,000; or
7 (ii) 75% of eligible project costs.
8 (4) Loans under this subsection shall have an interest
9 rate of 2% per year and a [maximum] repayment term of [seven]
10 not to exceed ten years.
11 (5) An industrial resource center receiving funds under
12 the act of [July 2, 1993 (P.L.439, No.64), known as the Ben
13 Franklin/IRC Partnership Act] June 22, 2001 (P.L.400, No.31),
14 known as the Industrial Resources Center Partnership Act, may
15 utilize the account to provide assistance to a small business
16 enterprise for which a loan application has been made.
17 (6) Loans under this subsection shall be used to further
18 the goal of pollution prevention through the purchase and
19 installation of equipment to make operational changes and
20 modify production practices.
21 (b) Terms and conditions.--
22 (1) The department may make advances from the Small
23 Business First Fund, subject to the terms, conditions and
24 restrictions provided under this chapter, to area loan
25 organizations for the purpose of making loans to eligible
26 small enterprises for capital development projects which
27 demonstrate a substantial likelihood of creating or
28 preserving employment opportunities[.] or to small business
29 enterprises which are involved in agricultural production of
30 farm commodities, which demonstrate the enhancement and
20020S1370B1908 - 7 -
1 growth of agricultural production activities or which
2 demonstrate the application and use of leading edge
3 technology or best environmental practices. All loans, except
4 for loans provided to small business enterprises that are
5 involved in agricultural production of farm commodities,
6 shall be limited to projects that demonstrate the creation or
7 preservation of one job for every $25,000 received from the
8 Small Business First Fund.
9 (2) No loans shall be made which would do any of the
10 following:
11 (i) Cause, aid or assist in, directly, the
12 relocation of any business operations from one part of
13 this Commonwealth to another unless there is at least a
14 25% net increase in employment.
15 (ii) Refinance any portion of the total project cost
16 or other existing loans or debt.
17 (iii) Finance projects located outside the
18 geographic boundaries of this Commonwealth.
19 (iv) Provide funds, directly or indirectly, for
20 payment, distribution or as loan owners, partners or
21 shareholders of the small business enterprise, except as
22 ordinary compensation for services rendered.
23 (v) Provide funds for speculation in any kind of
24 property, real or personal, tangible or intangible.
25 (3) All loans shall carry an interest rate and term and
26 shall be secured by lien positions on collateral at the
27 highest level of priority as may be determined by the area
28 loan organization with the approval of the department.
29 Section 1304. Application and administration.
30 * * *
20020S1370B1908 - 8 -
1 [(a.1) Distressed communities.--An area loan organization
2 designated to administer loans to distressed communities under
3 section 1303(a.1) shall provide documentation that the small
4 business enterprise is located in a distressed community as
5 required by the department.]
6 (a.2) Pollution prevention assistance loans.--
7 (1) Applications for loans from the Pollution Prevention
8 Assistance Account established under section 1302(b.1) shall
9 be on a form prescribed by the department and shall be
10 reviewed under subsection (b)(2). The Department of
11 Environmental Protection shall assist the department and
12 provide technical assistance with application review.
13 (2) The department, an area loan organization or an
14 industrial resource center may charge fees, costs, service
15 charges, loan commitment fees or other expenses not to exceed
16 [1%] 5% of the loan amount.
17 * * *
18 Section 3. Section 1310 of the act is amended to read:
19 Section 1310. [Transitional] Eligibility provisions.
20 The following eligibility requirements and eligible uses
21 shall apply to all requests for funding received after this
22 chapter becomes effective [and before submission of the first
23 annual financing strategy]:
24 (1) A small business enterprise with 100 full-time
25 employees or less that proposes to undertake a capital
26 development.
27 (2) (i) The maximum loan amount for land, buildings and
28 machinery and equipment is $200,000 or 50% of the total
29 eligible project costs, whichever is less. The maximum
30 loan amount for working capital is $100,000 or 50% of the
20020S1370B1908 - 9 -
1 total eligible project costs, whichever is less.
2 (ii) Loans used for real estate shall have a
3 repayment period of up to ten years. Loans used for
4 machinery and equipment shall have a repayment period of
5 up to seven years. Loans used for working capital shall
6 have a repayment period of up to three years. In projects
7 where two or more uses of funds are planned, the loan
8 terms may be blended.
9 (iii) Interest rates shall [be fixed at] not exceed
10 5%.
11 (iv) All loans must be adequately secured.
12 (3) (i) Applications for assistance under the Capital
13 Loan Fund Act which have been approved prior to the
14 effective date of this chapter will be processed in
15 accordance with this act. Applications for assistance
16 which have been received but which have not been approved
17 prior to the effective date of this chapter will be
18 evaluated and processed in accordance with this chapter.
19 (ii) Applications for assistance under section 7.13
20 of the act of January 8, 1960 (1959 P.L.2119, No.787),
21 known as the Air Pollution Control Act, section 709 of
22 the act of July 6, 1989 (P.L.169, No.32), known as the
23 Storage Tank and Spill Prevention Act, and the Recycling
24 Incentive Development Account which have been approved
25 prior to the effective date of this chapter shall be
26 processed in accordance with those respective provisions.
27 Applications for assistance which have been received but
28 which have not been approved prior to the effective date
29 of this chapter shall be evaluated and processed in
30 accordance with this chapter.
20020S1370B1908 - 10 -
1 Section 4. Section 1311(e), (g) and (h) of the act, added
2 June 24, 1997 (P.L.247, No.23), are amended and the section is
3 amended by adding a subsection to read:
4 Section 1311. Export Financing Loan Fund; loans and
5 applications; powers and duties.
6 * * *
7 (e) Conditions.--A loan must comply with all of the
8 following:
9 [(1) Be to a company eligible for a policy.
10 (2) Be guaranteed by the Working Capital Guaranty
11 Program offered by the Ex-Im Bank or be on an export credit
12 sales contract insured by a policy.]
13 (3) Be limited to [companies that have facilities within
14 this Commonwealth which are involved in export activities]
15 the financing of export activities that take place within
16 this Commonwealth.
17 (4) Be based on an export contract that requires payment
18 in United States dollars.
19 [(5) Be for the purpose of financing export activity.]
20 (6) Be limited to companies with 250 or fewer full-time
21 [equivalent] employees.
22 (e.1) Additional conditions.--At the discretion of the
23 department, a loan may also be required to comply with one or
24 both of the following conditions:
25 (1) Be to a company eligible for a policy.
26 (2) Be guaranteed by the Working Capital Guaranty
27 Program offered by the Ex-Im Bank or be on an export credit
28 sales contract insured by a policy.
29 * * *
30 (g) Restrictions.--Export Financing Loan Fund assistance
20020S1370B1908 - 11 -
1 shall not exceed $350,000 for any individual project [or 50% of
2 the eligible project costs, whichever is less]. A loan must not
3 supplant funding which is otherwise available from private
4 sector sources on commercially reasonable terms.
5 (h) Terms.--A loan shall have a term, rate of interest,
6 transaction size and other business conditions that comply with
7 the requirements [of the Ex-Im Bank and any other requirements]
8 of the department.
9 * * *
10 Section 5. The act is amended by adding a chapter to read:
11 CHAPTER 29
12 CUSTOMIZED JOB AND WORK FORCE DEVELOPMENT TRAINING
13 Section 2901. Definitions.
14 The following words and phrases when used in this chapter
15 shall have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Applicant." Any of the following:
18 (1) A local education agency.
19 (2) Industrial resource centers.
20 (3) Economic development organizations certified by the
21 department. The term includes area loan organizations and
22 industrial development corporations as defined in section
23 2301.
24 (4) A greenhouse.
25 (5) A private company.
26 (6) A local work force investment board.
27 "Capital investment." An expenditure for land, buildings,
28 renovations, machinery and equipment that is directly related to
29 the need for the proposed training.
30 "Greenhouse." A nonprofit organization recognized under
20020S1370B1908 - 12 -
1 section 501(c)(3) of the Internal Revenue Code of 1986 (Public
2 Law 99-514, 26 U.S.C. § 501(c)(3)) that is formed for the
3 express purpose of creating university/business partnerships to
4 advance science and technology and to support economic and work
5 force development.
6 "Industrial resource center." An industrial resource center
7 as defined in the act of June 22, 2001 (P.L.400, No.31), known
8 as the Industrial Resources Center Partnership Act.
9 "Labor organization." An organization of any kind or any
10 agency or employee representation committee or plan in which
11 employees participate and which exists for the purpose, in whole
12 or in part, of dealing with employers concerning grievances,
13 labor disputes, wages, rates of pay, hours of employment or
14 conditions of work. The term does not include any labor
15 organization which practices discrimination in membership
16 because of race, color, creed, national origin, sex or political
17 affiliation.
18 "Local education agency." A Pennsylvania institution
19 certified by the Department of Education, which may include any
20 of the following:
21 (1) Area vocational-technical schools.
22 (2) Community and junior colleges.
23 (3) Intermediate units.
24 (4) Licensed private/proprietary business and trade
25 schools.
26 (5) Public school districts.
27 (6) State or private colleges or universities.
28 "Local work force investment board." An entity recommended
29 for certification by the Pennsylvania Workforce Investment Board
30 and certified by the Governor.
20020S1370B1908 - 13 -
1 "Private company." A business, professional service company
2 or other enterprise. The term may include a group of two or more
3 private companies operating as a consortium in order to take
4 advantage of a common training program. The term does not
5 include point-of-sale retail businesses.
6 "Trainee." An individual who is an employee or prospective
7 employee and is enrolled in an eligible training program
8 designed to enable that individual to obtain or retain
9 employment.
10 "Training program." A systematic program designed to provide
11 a trainee with the skills and knowledge necessary to meet a
12 private company's or labor organization's specifications for an
13 occupation or trade, the successful completion of which results
14 in one of the following:
15 (1) The trainee being employed or continuing to be
16 employed full time by that private company.
17 (2) A trainee receiving instruction or training related
18 to an occupation with a shortage of skilled workers or a
19 targeted industry cluster as referred to in section
20 2907(b)(1).
21 The programs may involve instruction within a local education
22 agency, within a private company plant or on-the-job training,
23 within a training program of a labor organization, through
24 technology-based instruction or any combination thereof.
25 Section 2902. Establishment of program.
26 There is established within the department the Customized Job
27 and Workforce Development Training Program for the purpose of
28 providing grants for training programs that result in one or
29 more of the following objectives:
30 (1) The location or expansion of a private company or
20020S1370B1908 - 14 -
1 greenhouse within this Commonwealth accompanied by the
2 creation of jobs paying competitive wages and the making of
3 capital expenditures.
4 (2) The expansion or upgrade of existing positions
5 resulting in increased wages for that position.
6 (3) The retention of jobs that would otherwise be lost
7 to this Commonwealth.
8 (4) The promotion of local education agency/business
9 partnerships and business/business partnerships where a
10 direct connection between the development of skills and
11 resultant employment by one or more private companies can be
12 demonstrated.
13 (5) The promotion of efforts by a labor organization to
14 upgrade the skills of its members.
15 Section 2903. Powers and duties of department.
16 (a) General powers and duties.--The department shall have
17 the necessary powers and duties in carrying out the provisions
18 of this chapter:
19 (1) To promulgate such rules, regulations and
20 guidelines, develop such forms and institute such procedures
21 as may be necessary to implement the Customized Job and
22 Workforce Development Training Program authorized by this
23 chapter.
24 (2) To enter into contracts and similar agreements, and
25 to enter into lawsuits or other legal actions, as necessary
26 to carry out and enforce the provisions of this chapter.
27 (3) To approve or disapprove any request for grants
28 according to the procedures outlined in this chapter.
29 (4) To require such information and records from each
30 applicant and its authorized training provider as it deems
20020S1370B1908 - 15 -
1 necessary to carry out its responsibilities under this
2 chapter.
3 (b) Additional powers and duties.--The department shall also
4 have all necessary powers and duties to enter into one or more
5 partnerships with one or more local education agencies or other
6 training providers to provide training programs. Such training
7 programs shall be for basic and entry-level skills, technology
8 skill training, training related to job retention or other
9 specified training assistance as determined by the department to
10 be more effectively delivered through a partnership arrangement.
11 Under such a partnership arrangement, the department may limit
12 the number and category of applicants that may submit
13 applications for assistance and may establish minimal standards
14 and requirements for project eligibility. These requirements may
15 be separate and distinct from the requirements established under
16 this chapter, except that the provisions of sections 2905 and
17 2906(c) and (d) shall apply to all training programs funded
18 under this chapter.
19 Section 2904. Eligibility.
20 (a) Applicants.--
21 (1) An applicant may submit an application to the
22 department for funding of a training program that meets the
23 requirements of this chapter and any guidelines published by
24 the department.
25 (2) Industrial resource centers and economic development
26 organizations may apply for funding on behalf of a private
27 company, greenhouse or labor organization, but may not serve
28 as an authorized training provider for the purposes of direct
29 training of the trainees. A local work force investment board
30 may apply for funding only on behalf of projects that promote
20020S1370B1908 - 16 -
1 local education agency/business partnerships or
2 business/business partnerships.
3 (b) Local contacts.--In the case of an application by or on
4 behalf of a private company, the applicant shall demonstrate
5 that the private company has contacted the local work force
6 investment board and the local county board of assistance, when
7 the application includes plans for training entry level
8 employees, to solicit referrals of candidates for the training
9 program.
10 (c) Trainees.--Funding shall be used to provide training or
11 instruction only for Pennsylvania residents.
12 Section 2905. Use of funds.
13 (a) Use of funds.--Funds awarded under the Customized Job
14 and Workforce Development Training Program may be used to
15 reimburse the cost of a training program which meets one or more
16 of the objectives set forth in section 2902. Such costs may
17 include, but are not limited to, instructional costs, costs of
18 instructional or training material or software, costs associated
19 with tuition reimbursement and reasonable administrative costs
20 as determined by the department.
21 (b) Limitations on use of funds.--
22 (1) Eligible costs shall not include wages of trainees
23 during training, any costs related to building construction
24 or renovation or the acquisition, upgrade or installation of
25 any equipment or machinery, including computer equipment.
26 (2) No funds awarded shall cause a reduction in the work
27 force of a private company, result in the displacement of
28 workers employed by the private company prior to the
29 commencement of the training program or cause the violation
30 of any conditions of existing collective bargaining
20020S1370B1908 - 17 -
1 agreements. However, because the introduction of new
2 manufacturing techniques, technology and modernization may
3 lead to short-term reductions in the work force, the
4 secretary may waive this funding limitation in those
5 situations in which the long-term economic benefits to be
6 gained by the introduction of new manufacturing techniques,
7 technology and modernization significantly exceed the short-
8 term detriment to the work force.
9 (3) No funds may be used for point-of-sale retail job
10 training.
11 (4) No more than 10% of the funds appropriated in any
12 one fiscal year shall be granted to any one private company,
13 greenhouse or labor organization, including any affiliates
14 thereof.
15 (5) No funding may be awarded to or on behalf of any
16 private company or labor organization, including any
17 affiliates thereof, for more than two successive fiscal years
18 and for no more than three out of every five fiscal years.
19 Section 2906. Requirements.
20 (a) Private match.--Applications for assistance under this
21 chapter must include a written commitment from the private
22 company or labor organization to invest private matching funds
23 in the training project. The amount of private matching funds
24 shall be established by the department, which match shall not be
25 less than 25% of the total eligible project cost. The department
26 may establish differing standards for small businesses and labor
27 organizations.
28 (b) Small business reserve.--At the beginning of each fiscal
29 year, the department shall establish a reserve not to exceed 25%
30 of the appropriation received which shall be made available to
20020S1370B1908 - 18 -
1 small businesses, as defined by the department. Any funds that
2 remain uncommitted from this reserve after March 1 of the fiscal
3 year may be made available to any eligible training program.
4 (c) Wage thresholds.--Training assistance may be provided
5 for position upgrades only for positions that will result in an
6 increase in wages or salaries.
7 (d) Training and instructional programs.--
8 (1) All applications submitted must contain a
9 description of the proposed training or instructional program
10 to be carried out. The department shall prescribe the form
11 and content to be contained in those descriptions.
12 (2) An applicant may subcontract with other
13 organizations or individuals for the provision of all or a
14 portion of the services to be provided, and funds may be
15 allocated from the applicant to the subcontractor for such
16 purposes.
17 Section 2907. Evaluation.
18 (a) Available resources.--The applicant, when preparing
19 applications for training programs, shall consider other
20 available resources, including, but not limited to, private
21 sector funds, other State or local agency training programs or
22 funds made available under the Workforce Investment Act of 1998
23 (Public Law 105-200, 112 Stat. 936) or such other Federal
24 programs which provide funds for employment training.
25 (b) Evaluation.--The department shall establish criteria for
26 awarding of grants which shall take into account the objectives
27 set forth in section 2902 and which give priority to those
28 applications that have one or more of the following
29 characteristics:
30 (1) A training program determined by the department to
20020S1370B1908 - 19 -
1 be in a growth industry vital to this Commonwealth's
2 competitiveness, including, but not limited to, the following
3 industry clusters:
4 (i) agribusiness;
5 (ii) advanced manufacturing;
6 (iii) advanced materials;
7 (iv) life sciences, biotechnology and health care;
8 (v) environmental technology; and
9 (vi) information technology.
10 (2) The private company or labor organization is
11 located:
12 (i) in a municipality in which the average
13 unemployment rate in the most recently completed calendar
14 year is above the Statewide average unemployment rate for
15 the same period;
16 (ii) in a State-designated enterprise zone; or
17 (iii) in a municipality or region that has suffered
18 a significant loss of jobs due to one or more major plant
19 closings, layoffs or natural or manmade disasters.
20 (3) The private company is creating 50 or more jobs and
21 is making a capital investment of $1,000,000 or more.
22 Section 2908. Compliance with statutes and collective
23 bargaining agreements.
24 The department shall require each applicant, private company,
25 greenhouse and labor organization to comply with appropriate
26 Federal and State statutes and regulations governing employment
27 discrimination, minority recruitment, minimum or prevailing
28 wages, worksite safety and procurement practices. The department
29 shall require each private company to certify that the training
30 program does not abridge any contractual agreement between the
20020S1370B1908 - 20 -
1 private company and the duly recognized collective bargaining
2 representative of its employees.
3 Section 2909. Penalties.
4 (a) Private company.--A private company that fails to create
5 the number of jobs specified in its agreement with or commitment
6 to the department or that fails to make the amount of capital
7 investment specified in the application to the department or
8 that fails to substantially carry out the training program
9 approved by the department shall be liable to repay all or part
10 of the amount of the grant awarded under this chapter unless the
11 department determines that the company's failure is due to
12 circumstances outside the control of the company.
13 (b) Applicants.--An applicant or subcontractor thereof that
14 fails to provide for or to perform under a training program as
15 approved by the department may be required to repay to the
16 department any funds it received under a grant awarded by the
17 department. The department shall have all necessary powers to
18 investigate and act upon any complaint it receives from a
19 private company, greenhouse, labor organization or trainee as to
20 the inadequacy of training received, including the recovery of
21 grant funds expended.
22 Section 6. Section 5105 of the act is amended to read:
23 Section 5105. Power and authority of the Pennsylvania Economic
24 Development Financing Authority.
25 In addition to the powers set forth in section 6.3 of the act
26 of August 23, 1967 (P.L.251, No.102), known as the Economic
27 Development Financing Law, the Pennsylvania Economic Development
28 Financing Authority established under that act shall have the
29 power and is hereby authorized to issue its limited obligation
30 revenue bonds and other types of financing, as in the judgment
20020S1370B1908 - 21 -
1 of the financing authority shall be necessary, to provide
2 sufficient funds for any activity the department or the
3 Pennsylvania Industrial Development Authority is permitted to
4 take with respect to the loan portfolios subject to their
5 respective administrative authority [as set forth in section
6 1302]. Bonds authorized to be issued under this section shall
7 not be a debt or liability of the Commonwealth and shall not
8 create or constitute any indebtedness, liability or obligation
9 of the Commonwealth except to the extent the bonds are secured
10 by the pledge of loan portfolios. Bonds authorized to be issued
11 under this section shall be payable solely from the revenues or
12 funds pledged or available for their repayment.
13 Section 7. The act of December 20, 1985 (P.L.492, No.116),
14 known as the Customized Job Training Act, is repealed.
15 Section 8. This act shall take effect immediately.
B14L12JS/20020S1370B1908 - 22 -