PRIOR PRINTER'S NOS. 1829, 1908 PRINTER'S NO. 2037
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
SENATOR THOMPSON, APPROPRIATIONS, RE-REPORTED AS AMENDED,
JUNE 4, 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) and November 17, 1998 (P.L.788, No.100), are
1 amended and the section is amended by adding a definition <--
2 DEFINITIONS to read: <--
3 Section 1301. Definitions.
4 The following words and phrases when used in this chapter
5 shall have the meanings given to them in this section unless the
6 context clearly indicates otherwise:
7 * * *
8 "AGRICULTURAL PRODUCER." A PERSON OR ENTITY INVOLVED IN THE <--
9 MANAGEMENT AND USE OF NORMAL AGRICULTURAL OPERATION FOR THE
10 PRODUCTION OF A FARM COMMODITY.
11 * * *
12 "Capital development project" or "project." Land, buildings,
13 equipment and machinery and working capital which is acquired,
14 constructed, renovated or used by a small business enterprise:
15 (1) As part of a for-profit project or venture not of a
16 mercantile or service-related nature, except for hospitality
17 industry projects and except as otherwise provided in section
18 1303(a.1).
19 (2) To bring a small business enterprise into compliance
20 with Federal or State environmental laws or regulations or to
21 complete an approved remediation project or to permit the
22 small business enterprise to adopt generally acceptable
23 pollution prevention practices.
24 (3) To provide assistance to small business enterprises
25 that are recyclers of municipal or commercial waste or that
26 are manufacturers using recycled municipal or commercial
27 waste materials.
28 (4) To assist a small business enterprise with defense
29 conversion activities.
30 (5) For the manufacture of products to be exported out
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1 of the United States by a small business enterprise as part
2 of a for-profit project or venture not of a mercantile or
3 service-related nature, except for export-related services
4 and international export-related mercantile ventures or
5 advanced technology and computer-related services and
6 mercantile ventures, which will increase this Commonwealth's
7 national or international market shares.
8 (6) As part of a for-profit project or venture that
9 meets the requirements of section 1303(a.1).
10 (7) To assist in the start-up or expansion of a for-
11 profit or not-for-profit child day-care center subject to
12 licensure by the Commonwealth.
13 "Child day-care center." Any premises in which child day
14 care is provided simultaneously for seven or more children who
15 are not related to the provider.
16 * * *
17 "Export activity." An activity undertaken by an enterprise
18 related to exports of goods and services outside of the United
19 States. [The term includes manufacturing, assembling and like
20 operations.]
21 * * *
22 "Small business [enterprises] enterprise." A for-profit
23 corporation, partnership [or], proprietorship, limited liability
24 company or other entity which meets the eligibility requirements
25 established by the department. The term shall include, but is
26 not limited to, a small business [enterprises] enterprise which:
27 (1) is located in a small business incubator
28 [facilities, small business enterprises which are] facility;
29 (2) is an agricultural [processors and small business
30 enterprises which manufacture] processor;
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1 (3) manufactures apparel products[.]; or <--
2 (4) (3) IS AN AGRICULTURAL PRODUCER; <--
3 (4) MANUFACTURES APPAREL PRODUCTS[.]; OR
4 (5) is a for-profit or not-for-profit child day-care
5 center subject to licensure by the Commonwealth.
6 * * *
7 Section 2. Sections 1302(b.1), 1303(a.1), (a.2) and (b), AND <--
8 (A.2) and 1304(a.1) and (a.2) of the act, amended or added
9 November 17, 1998 (P.L.788, No.100), are amended to read:
10 Section 1302. Small Business First Fund and Pollution
11 Prevention Assistance Account.
12 * * *
13 (b.1) Pollution Prevention Assistance Account.--There is
14 hereby created within the Small Business First Fund a Pollution
15 Prevention Assistance Account to provide revolving loans to
16 small businesses that employ 100 or fewer individuals[, that
17 operate from a stationary source] and that adopt or install
18 pollution prevention or energy-efficient equipment or processes.
19 The account shall be administered by the department. All
20 appropriations made for the purposes of this account and all
21 proceeds from loan repayments, including interest, and any and
22 all other deposits, payments and contributions from any other
23 source made available to the department for the purposes of this
24 account shall be deposited into this account.
25 * * *
26 Section 1303. Eligibility for and terms and conditions of
27 loans.
28 * * *
29 (a.1) Loans to small business enterprises in certain [areas]
30 business sectors.--
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1 (1) The department may provide loans to small business
2 enterprises [located in distressed communities] which are in
3 the business-to-public service, mercantile, commercial or
4 point-of-sale retail business sectors in accordance with
5 conditions or criteria established by the department in
6 guidelines adopted for these loans. Loans shall be made in
7 accordance with the provisions of this chapter except that:
8 (i) [Loans may be made to mercantile or service-
9 related enterprises approved by the department.]
10 (ii) The provisions of subsection (b) relating to
11 required increases in employment shall not apply to loans
12 made under this subsection.
13 (iii) The department may authorize flexible
14 repayment terms and an interest rate of not less than 2%.
15 (iv) The department may utilize additional area loan
16 organizations, including community development financial
17 institutions, to receive loan applications and administer
18 loans.
19 (v) The department may use its best judgment to
20 identify and secure collateral.
21 [(2) Distressed communities shall include:
22 (i) Any census tract in which:
23 (A) there is a median income below 80% of the
24 median income for this Commonwealth or the United
25 States;
26 (B) 20% or more of the population is below the
27 poverty level by family size published by the Bureau
28 of the Census; or
29 (C) there is an unemployment rate 50% higher
30 than the national average.
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1 (ii) A Keystone Opportunity Zone.
2 (iii) Any other geographic area designated by the
3 department as distressed. The designation shall be
4 published in the Pennsylvania Bulletin.]
5 (3) The department and area loan organization shall not
6 make loans under this subsection on the basis of direct
7 financial return on investment and shall not be held to the
8 loan loss standards of private commercial lenders. Loans
9 shall be for the purpose of establishing a strong economic
10 base and promoting entrepreneurial activity within the
11 distressed community.
12 (4) In order to receive a loan under this subsection, a
13 small business enterprise must demonstrate a direct impact on
14 the community in which it is located, on residents of that
15 community, or on the local and/or regional economy. The
16 department shall establish criteria that will assist small
17 business enterprises in making this demonstration.
18 (a.2) Pollution prevention assistance loans.--The Pollution
19 Prevention Assistance Account created under section 1302(b.1)
20 shall provide revolving loans to small businesses.
21 (1) The loans shall be for the purpose of enabling the
22 small business to adopt or install pollution prevention
23 equipment or processes to:
24 (i) Reduce or reuse raw materials onsite.
25 (ii) Reduce the production of waste.
26 (iii) Reduce energy consumption.
27 (2) The Pollution Prevention Assistance Account shall
28 not invest on the basis of direct financial return and shall
29 not be held to the loan loss standards of commercial lenders.
30 Loans shall be for the purpose of reducing pollution through
20020S1370B2037 - 6 -
1 source reduction technologies or processes.
2 (3) A loan under this subsection may not exceed the
3 lesser of:
4 (i) [$50,000] $100,000; or
5 (ii) 75% of eligible project costs.
6 (4) Loans under this subsection shall have an interest
7 rate of 2% per year and a [maximum] repayment term of [seven]
8 not to exceed ten years.
9 (5) An industrial resource center receiving funds under
10 the act of [July 2, 1993 (P.L.439, No.64), known as the Ben
11 Franklin/IRC Partnership Act] June 22, 2001 (P.L.400, No.31),
12 known as the Industrial Resources Center Partnership Act, may
13 utilize the account to provide assistance to a small business
14 enterprise for which a loan application has been made.
15 (6) Loans under this subsection shall be used to further
16 the goal of pollution prevention through the purchase and
17 installation of equipment to make operational changes and
18 modify production practices.
19 (b) Terms and conditions.-- <--
20 (1) The department may make advances from the Small
21 Business First Fund, subject to the terms, conditions and
22 restrictions provided under this chapter, to area loan
23 organizations for the purpose of making loans to eligible
24 small enterprises for capital development projects which
25 demonstrate a substantial likelihood of creating or
26 preserving employment opportunities[.] or to small business
27 enterprises which are involved in agricultural production of
28 farm commodities, which demonstrate the enhancement and
29 growth of agricultural production activities or which
30 demonstrate the application and use of leading edge
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1 technology or best environmental practices. All loans, except
2 for loans provided to small business enterprises that are
3 involved in agricultural production of farm commodities,
4 shall be limited to projects that demonstrate the creation or
5 preservation of one job for every $25,000 received from the
6 Small Business First Fund.
7 (2) No loans shall be made which would do any of the
8 following:
9 (i) Cause, aid or assist in, directly, the
10 relocation of any business operations from one part of
11 this Commonwealth to another unless there is at least a
12 25% net increase in employment.
13 (ii) Refinance any portion of the total project cost
14 or other existing loans or debt.
15 (iii) Finance projects located outside the
16 geographic boundaries of this Commonwealth.
17 (iv) Provide funds, directly or indirectly, for
18 payment, distribution or as loan owners, partners or
19 shareholders of the small business enterprise, except as
20 ordinary compensation for services rendered.
21 (v) Provide funds for speculation in any kind of
22 property, real or personal, tangible or intangible.
23 (3) All loans shall carry an interest rate and term and
24 shall be secured by lien positions on collateral at the
25 highest level of priority as may be determined by the area
26 loan organization with the approval of the department.
27 * * * <--
28 Section 1304. Application and administration.
29 * * *
30 [(a.1) Distressed communities.--An area loan organization
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1 designated to administer loans to distressed communities under
2 section 1303(a.1) shall provide documentation that the small
3 business enterprise is located in a distressed community as
4 required by the department.]
5 (a.2) Pollution prevention assistance loans.--
6 (1) Applications for loans from the Pollution Prevention
7 Assistance Account established under section 1302(b.1) shall
8 be on a form prescribed by the department and shall be
9 reviewed under subsection (b)(2). The Department of
10 Environmental Protection shall assist the department and
11 provide technical assistance with application review.
12 (2) The department, an area loan organization or an
13 industrial resource center may charge fees, costs, service
14 charges, loan commitment fees or other expenses not to exceed
15 [1%] 5% of the loan amount.
16 * * *
17 Section 3. Section 1310 of the act is amended to read: <--
18 Section 1310. [Transitional] Eligibility provisions.
19 The following eligibility requirements and eligible uses
20 shall apply to all requests for funding received after this
21 chapter becomes effective [and before submission of the first
22 annual financing strategy]:
23 (1) A small business enterprise with 100 full-time
24 employees or less that proposes to undertake a capital
25 development.
26 (2) (i) The maximum loan amount for land, buildings and
27 machinery and equipment is $200,000 or 50% of the total
28 eligible project costs, whichever is less. The maximum
29 loan amount for working capital is $100,000 or 50% of the
30 total eligible project costs, whichever is less.
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1 (ii) Loans used for real estate shall have a
2 repayment period of up to ten years. Loans used for
3 machinery and equipment shall have a repayment period of
4 up to seven years. Loans used for working capital shall
5 have a repayment period of up to three years. In projects
6 where two or more uses of funds are planned, the loan
7 terms may be blended.
8 (iii) Interest rates shall [be fixed at] not exceed
9 5%.
10 (iv) All loans must be adequately secured.
11 (3) (i) Applications for assistance under the Capital
12 Loan Fund Act which have been approved prior to the
13 effective date of this chapter will be processed in
14 accordance with this act. Applications for assistance
15 which have been received but which have not been approved
16 prior to the effective date of this chapter will be
17 evaluated and processed in accordance with this chapter.
18 (ii) Applications for assistance under section 7.13
19 of the act of January 8, 1960 (1959 P.L.2119, No.787),
20 known as the Air Pollution Control Act, section 709 of
21 the act of July 6, 1989 (P.L.169, No.32), known as the
22 Storage Tank and Spill Prevention Act, and the Recycling
23 Incentive Development Account which have been approved
24 prior to the effective date of this chapter shall be
25 processed in accordance with those respective provisions.
26 Applications for assistance which have been received but
27 which have not been approved prior to the effective date
28 of this chapter shall be evaluated and processed in
29 accordance with this chapter.
30 Section 4 3. Section 1311(e), (g) and (h) of the act, added <--
20020S1370B2037 - 10 -
1 June 24, 1997 (P.L.247, No.23), are amended and the section is
2 amended by adding a subsection to read:
3 Section 1311. Export Financing Loan Fund; loans and
4 applications; powers and duties.
5 * * *
6 (e) Conditions.--A loan must comply with all of the
7 following:
8 [(1) Be to a company eligible for a policy.
9 (2) Be guaranteed by the Working Capital Guaranty
10 Program offered by the Ex-Im Bank or be on an export credit
11 sales contract insured by a policy.]
12 (3) Be limited to [companies that have facilities within
13 this Commonwealth which are involved in export activities]
14 the financing of export activities that take place within
15 this Commonwealth.
16 (4) Be based on an export contract that requires payment
17 in United States dollars.
18 [(5) Be for the purpose of financing export activity.]
19 (6) Be limited to companies with 250 or fewer full-time
20 [equivalent] employees.
21 (e.1) Additional conditions.--At the discretion of the
22 department, a loan may also be required to comply with one or
23 both of the following conditions:
24 (1) Be to a company eligible for a policy.
25 (2) Be guaranteed by the Working Capital Guaranty
26 Program offered by the Ex-Im Bank or be on an export credit
27 sales contract insured by a policy.
28 * * *
29 (g) Restrictions.--Export Financing Loan Fund assistance
30 shall not exceed $350,000 for any individual project [or 50% of
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1 the eligible project costs, whichever is less]. A loan must not
2 supplant funding which is otherwise available from private
3 sector sources on commercially reasonable terms.
4 (h) Terms.--A loan shall have a term, rate of interest,
5 transaction size and other business conditions that comply with
6 the requirements [of the Ex-Im Bank and any other requirements]
7 of the department.
8 * * *
9 Section 5 4. The act is amended by adding a chapter to read: <--
10 CHAPTER 29 <--
11 CUSTOMIZED JOB AND WORK FORCE DEVELOPMENT TRAINING
12 Section 2901. Definitions.
13 The following words and phrases when used in this chapter
14 shall have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Applicant." Any of the following:
17 (1) A local education agency.
18 (2) Industrial resource centers.
19 (3) Economic development organizations certified by the
20 department. The term includes area loan organizations and
21 industrial development corporations as defined in section
22 2301.
23 (4) A greenhouse.
24 (5) A private company.
25 (6) A local work force investment board.
26 "Capital investment." An expenditure for land, buildings,
27 renovations, machinery and equipment that is directly related to
28 the need for the proposed training.
29 "Greenhouse." A nonprofit organization recognized under
30 section 501(c)(3) of the Internal Revenue Code of 1986 (Public
20020S1370B2037 - 12 -
1 Law 99-514, 26 U.S.C. § 501(c)(3)) that is formed for the
2 express purpose of creating university/business partnerships to
3 advance science and technology and to support economic and work
4 force development.
5 "Industrial resource center." An industrial resource center
6 as defined in the act of June 22, 2001 (P.L.400, No.31), known
7 as the Industrial Resources Center Partnership Act.
8 "Labor organization." An organization of any kind or any
9 agency or employee representation committee or plan in which
10 employees participate and which exists for the purpose, in whole
11 or in part, of dealing with employers concerning grievances,
12 labor disputes, wages, rates of pay, hours of employment or
13 conditions of work. The term does not include any labor
14 organization which practices discrimination in membership
15 because of race, color, creed, national origin, sex or political
16 affiliation.
17 "Local education agency." A Pennsylvania institution
18 certified by the Department of Education, which may include any
19 of the following:
20 (1) Area vocational-technical schools.
21 (2) Community and junior colleges.
22 (3) Intermediate units.
23 (4) Licensed private/proprietary business and trade
24 schools.
25 (5) Public school districts.
26 (6) State or private colleges or universities.
27 "Local work force investment board." An entity recommended
28 for certification by the Pennsylvania Workforce Investment Board
29 and certified by the Governor.
30 "Private company." A business, professional service company
20020S1370B2037 - 13 -
1 or other enterprise. The term may include a group of two or more
2 private companies operating as a consortium in order to take
3 advantage of a common training program. The term does not
4 include point-of-sale retail businesses.
5 "Trainee." An individual who is an employee or prospective
6 employee and is enrolled in an eligible training program
7 designed to enable that individual to obtain or retain
8 employment.
9 "Training program." A systematic program designed to provide
10 a trainee with the skills and knowledge necessary to meet a
11 private company's or labor organization's specifications for an
12 occupation or trade, the successful completion of which results
13 in one of the following:
14 (1) The trainee being employed or continuing to be
15 employed full time by that private company.
16 (2) A trainee receiving instruction or training related
17 to an occupation with a shortage of skilled workers or a
18 targeted industry cluster as referred to in section
19 2907(b)(1).
20 The programs may involve instruction within a local education
21 agency, within a private company plant or on-the-job training,
22 within a training program of a labor organization, through
23 technology-based instruction or any combination thereof.
24 Section 2902. Establishment of program.
25 There is established within the department the Customized Job
26 and Workforce Development Training Program for the purpose of
27 providing grants for training programs that result in one or
28 more of the following objectives:
29 (1) The location or expansion of a private company or
30 greenhouse within this Commonwealth accompanied by the
20020S1370B2037 - 14 -
1 creation of jobs paying competitive wages and the making of
2 capital expenditures.
3 (2) The expansion or upgrade of existing positions
4 resulting in increased wages for that position.
5 (3) The retention of jobs that would otherwise be lost
6 to this Commonwealth.
7 (4) The promotion of local education agency/business
8 partnerships and business/business partnerships where a
9 direct connection between the development of skills and
10 resultant employment by one or more private companies can be
11 demonstrated.
12 (5) The promotion of efforts by a labor organization to
13 upgrade the skills of its members.
14 Section 2903. Powers and duties of department.
15 (a) General powers and duties.--The department shall have
16 the necessary powers and duties in carrying out the provisions
17 of this chapter:
18 (1) To promulgate such rules, regulations and
19 guidelines, develop such forms and institute such procedures
20 as may be necessary to implement the Customized Job and
21 Workforce Development Training Program authorized by this
22 chapter.
23 (2) To enter into contracts and similar agreements, and
24 to enter into lawsuits or other legal actions, as necessary
25 to carry out and enforce the provisions of this chapter.
26 (3) To approve or disapprove any request for grants
27 according to the procedures outlined in this chapter.
28 (4) To require such information and records from each
29 applicant and its authorized training provider as it deems
30 necessary to carry out its responsibilities under this
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1 chapter.
2 (b) Additional powers and duties.--The department shall also
3 have all necessary powers and duties to enter into one or more
4 partnerships with one or more local education agencies or other
5 training providers to provide training programs. Such training
6 programs shall be for basic and entry-level skills, technology
7 skill training, training related to job retention or other
8 specified training assistance as determined by the department to
9 be more effectively delivered through a partnership arrangement.
10 Under such a partnership arrangement, the department may limit
11 the number and category of applicants that may submit
12 applications for assistance and may establish minimal standards
13 and requirements for project eligibility. These requirements may
14 be separate and distinct from the requirements established under
15 this chapter, except that the provisions of sections 2905 and
16 2906(c) and (d) shall apply to all training programs funded
17 under this chapter.
18 Section 2904. Eligibility.
19 (a) Applicants.--
20 (1) An applicant may submit an application to the
21 department for funding of a training program that meets the
22 requirements of this chapter and any guidelines published by
23 the department.
24 (2) Industrial resource centers and economic development
25 organizations may apply for funding on behalf of a private
26 company, greenhouse or labor organization, but may not serve
27 as an authorized training provider for the purposes of direct
28 training of the trainees. A local work force investment board
29 may apply for funding only on behalf of projects that promote
30 local education agency/business partnerships or
20020S1370B2037 - 16 -
1 business/business partnerships.
2 (b) Local contacts.--In the case of an application by or on
3 behalf of a private company, the applicant shall demonstrate
4 that the private company has contacted the local work force
5 investment board and the local county board of assistance, when
6 the application includes plans for training entry level
7 employees, to solicit referrals of candidates for the training
8 program.
9 (c) Trainees.--Funding shall be used to provide training or
10 instruction only for Pennsylvania residents.
11 Section 2905. Use of funds.
12 (a) Use of funds.--Funds awarded under the Customized Job
13 and Workforce Development Training Program may be used to
14 reimburse the cost of a training program which meets one or more
15 of the objectives set forth in section 2902. Such costs may
16 include, but are not limited to, instructional costs, costs of
17 instructional or training material or software, costs associated
18 with tuition reimbursement and reasonable administrative costs
19 as determined by the department.
20 (b) Limitations on use of funds.--
21 (1) Eligible costs shall not include wages of trainees
22 during training, any costs related to building construction
23 or renovation or the acquisition, upgrade or installation of
24 any equipment or machinery, including computer equipment.
25 (2) No funds awarded shall cause a reduction in the work
26 force of a private company, result in the displacement of
27 workers employed by the private company prior to the
28 commencement of the training program or cause the violation
29 of any conditions of existing collective bargaining
30 agreements. However, because the introduction of new
20020S1370B2037 - 17 -
1 manufacturing techniques, technology and modernization may
2 lead to short-term reductions in the work force, the
3 secretary may waive this funding limitation in those
4 situations in which the long-term economic benefits to be
5 gained by the introduction of new manufacturing techniques,
6 technology and modernization significantly exceed the short-
7 term detriment to the work force.
8 (3) No funds may be used for point-of-sale retail job
9 training.
10 (4) No more than 10% of the funds appropriated in any
11 one fiscal year shall be granted to any one private company,
12 greenhouse or labor organization, including any affiliates
13 thereof.
14 (5) No funding may be awarded to or on behalf of any
15 private company or labor organization, including any
16 affiliates thereof, for more than two successive fiscal years
17 and for no more than three out of every five fiscal years.
18 Section 2906. Requirements.
19 (a) Private match.--Applications for assistance under this
20 chapter must include a written commitment from the private
21 company or labor organization to invest private matching funds
22 in the training project. The amount of private matching funds
23 shall be established by the department, which match shall not be
24 less than 25% of the total eligible project cost. The department
25 may establish differing standards for small businesses and labor
26 organizations.
27 (b) Small business reserve.--At the beginning of each fiscal
28 year, the department shall establish a reserve not to exceed 25%
29 of the appropriation received which shall be made available to
30 small businesses, as defined by the department. Any funds that
20020S1370B2037 - 18 -
1 remain uncommitted from this reserve after March 1 of the fiscal
2 year may be made available to any eligible training program.
3 (c) Wage thresholds.--Training assistance may be provided
4 for position upgrades only for positions that will result in an
5 increase in wages or salaries.
6 (d) Training and instructional programs.--
7 (1) All applications submitted must contain a
8 description of the proposed training or instructional program
9 to be carried out. The department shall prescribe the form
10 and content to be contained in those descriptions.
11 (2) An applicant may subcontract with other
12 organizations or individuals for the provision of all or a
13 portion of the services to be provided, and funds may be
14 allocated from the applicant to the subcontractor for such
15 purposes.
16 Section 2907. Evaluation.
17 (a) Available resources.--The applicant, when preparing
18 applications for training programs, shall consider other
19 available resources, including, but not limited to, private
20 sector funds, other State or local agency training programs or
21 funds made available under the Workforce Investment Act of 1998
22 (Public Law 105-200, 112 Stat. 936) or such other Federal
23 programs which provide funds for employment training.
24 (b) Evaluation.--The department shall establish criteria for
25 awarding of grants which shall take into account the objectives
26 set forth in section 2902 and which give priority to those
27 applications that have one or more of the following
28 characteristics:
29 (1) A training program determined by the department to
30 be in a growth industry vital to this Commonwealth's
20020S1370B2037 - 19 -
1 competitiveness, including, but not limited to, the following
2 industry clusters:
3 (i) agribusiness;
4 (ii) advanced manufacturing;
5 (iii) advanced materials;
6 (iv) life sciences, biotechnology and health care;
7 (v) environmental technology; and
8 (vi) information technology.
9 (2) The private company or labor organization is
10 located:
11 (i) in a municipality in which the average
12 unemployment rate in the most recently completed calendar
13 year is above the Statewide average unemployment rate for
14 the same period;
15 (ii) in a State-designated enterprise zone; or
16 (iii) in a municipality or region that has suffered
17 a significant loss of jobs due to one or more major plant
18 closings, layoffs or natural or manmade disasters.
19 (3) The private company is creating 50 or more jobs and
20 is making a capital investment of $1,000,000 or more.
21 Section 2908. Compliance with statutes and collective
22 bargaining agreements.
23 The department shall require each applicant, private company,
24 greenhouse and labor organization to comply with appropriate
25 Federal and State statutes and regulations governing employment
26 discrimination, minority recruitment, minimum or prevailing
27 wages, worksite safety and procurement practices. The department
28 shall require each private company to certify that the training
29 program does not abridge any contractual agreement between the
30 private company and the duly recognized collective bargaining
20020S1370B2037 - 20 -
1 representative of its employees.
2 Section 2909. Penalties.
3 (a) Private company.--A private company that fails to create
4 the number of jobs specified in its agreement with or commitment
5 to the department or that fails to make the amount of capital
6 investment specified in the application to the department or
7 that fails to substantially carry out the training program
8 approved by the department shall be liable to repay all or part
9 of the amount of the grant awarded under this chapter unless the
10 department determines that the company's failure is due to
11 circumstances outside the control of the company.
12 (b) Applicants.--An applicant or subcontractor thereof that
13 fails to provide for or to perform under a training program as
14 approved by the department may be required to repay to the
15 department any funds it received under a grant awarded by the
16 department. The department shall have all necessary powers to
17 investigate and act upon any complaint it receives from a
18 private company, greenhouse, labor organization or trainee as to
19 the inadequacy of training received, including the recovery of
20 grant funds expended.
21 CHAPTER 29 <--
22 CUSTOMIZED JOB TRAINING PROGRAM
23 SECTION 2901. DEFINITIONS.
24 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
25 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
26 CONTEXT CLEARLY INDICATES OTHERWISE:
27 "APPLICANT." ANY OF THE FOLLOWING:
28 (1) A LOCAL EDUCATION AGENCY.
29 (2) AN INDUSTRIAL RESOURCE CENTER.
30 (3) AN ECONOMIC DEVELOPMENT ORGANIZATION.
20020S1370B2037 - 21 -
1 (4) A GREENHOUSE.
2 (5) A PRIVATE COMPANY.
3 (6) A LOCAL WORK FORCE INVESTMENT BOARD.
4 "CAPITAL INVESTMENT." AN EXPENDITURE FOR LAND, BUILDINGS,
5 RENOVATIONS, MACHINERY AND EQUIPMENT WHICH IS DIRECTLY RELATED
6 TO THE NEED FOR THE PROPOSED TRAINING.
7 "ECONOMIC DEVELOPMENT ORGANIZATION." AN ENTITY CERTIFIED BY
8 THE DEPARTMENT. THE TERM INCLUDES "AREA LOAN ORGANIZATIONS" AND
9 "INDUSTRIAL DEVELOPMENT CORPORATIONS" AS DEFINED IN SECTION
10 2301.
11 "EDUCATIONAL INSTITUTION." ANY OF THE FOLLOWING:
12 (1) AREA VOCATIONAL-TECHNICAL SCHOOLS.
13 (2) COMMUNITY AND JUNIOR COLLEGES.
14 (3) INTERMEDIATE UNITS.
15 (4) LICENSED PRIVATE/PROPRIETARY BUSINESS AND TRADE
16 SCHOOLS.
17 (5) PUBLIC SCHOOL DISTRICTS.
18 (6) STATE OR PRIVATE COLLEGES OR UNIVERSITIES.
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)) WHICH 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, AGENCY OR EMPLOYEE
29 REPRESENTATION COMMITTEE OR PLAN IN WHICH EMPLOYEES PARTICIPATE
30 AND WHICH EXISTS FOR THE PURPOSE, IN WHOLE OR IN PART, OF
20020S1370B2037 - 22 -
1 DEALING WITH DISPUTES BETWEEN AN EMPLOYER AND ITS EMPLOYEES
2 INVOLVING GRIEVANCES, LABOR DISPUTES, WAGES, RATES OF PAY, HOURS
3 OF EMPLOYMENT OR CONDITIONS OF WORK. THE TERM DOES NOT INCLUDE
4 AN ORGANIZATION, AGENCY, COMMITTEE OR PLAN WHICH PRACTICES
5 DISCRIMINATION IN MEMBERSHIP BECAUSE OF RACE, COLOR, CREED,
6 NATIONAL ORIGIN, SEX OR POLITICAL AFFILIATION.
7 "LOCAL EDUCATION AGENCY." AN EDUCATIONAL INSTITUTION LOCATED
8 IN THE COMMONWEALTH AND CERTIFIED BY THE DEPARTMENT OF
9 EDUCATION.
10 "LOCAL WORK FORCE INVESTMENT BOARD." AN ENTITY RECOMMENDED
11 FOR CERTIFICATION BY THE PENNSYLVANIA WORKFORCE INVESTMENT BOARD
12 AND CERTIFIED BY THE GOVERNOR IN ACCORDANCE WITH THE ACT OF
13 DECEMBER 18, 2001 (P.L.949, NO.114), KNOWN AS THE WORKFORCE
14 DEVELOPMENT ACT.
15 "PRIVATE COMPANY." A BUSINESS, PROFESSIONAL SERVICE COMPANY
16 OR OTHER ENTERPRISE. THE TERM MAY INCLUDE A GROUP OF TWO OR MORE
17 PRIVATE COMPANIES OPERATING AS A CONSORTIUM IN ORDER TO TAKE
18 ADVANTAGE OF A COMMON TRAINING PROGRAM. THE TERM SHALL NOT
19 INCLUDE POINT-OF-SALE RETAIL BUSINESSES.
20 "PROGRAM." THE CUSTOMIZED JOB TRAINING PROGRAM ESTABLISHED
21 IN SECTION 2902.
22 "TRAINEE." AN INDIVIDUAL WHO IS AN EMPLOYEE OR PROSPECTIVE
23 EMPLOYEE AND IS ENROLLED IN AN ELIGIBLE TRAINING PROGRAM WHICH
24 IS DESIGNED TO ENABLE THE INDIVIDUAL TO OBTAIN OR RETAIN
25 EMPLOYMENT.
26 "TRAINING PROGRAM." A SYSTEMATIC PROGRAM WHICH IS DESIGNED
27 TO PROVIDE A TRAINEE WITH THE SKILLS AND KNOWLEDGE NECESSARY TO
28 MEET A PRIVATE COMPANY'S OR LABOR ORGANIZATION'S SPECIFICATIONS
29 FOR AN OCCUPATION OR TRADE, THE SUCCESSFUL COMPLETION OF WHICH
30 RESULTS IN ONE OF THE FOLLOWING:
20020S1370B2037 - 23 -
1 (1) THE TRAINEE BEING EMPLOYED OR CONTINUING TO BE
2 EMPLOYED FULL TIME BY THAT PRIVATE COMPANY.
3 (2) A TRAINEE RECEIVING INSTRUCTION OR TRAINING RELATED
4 TO AN OCCUPATION WITH A SHORTAGE OF SKILLED WORKERS OR A
5 TARGETED INDUSTRY CLUSTER AS REFERRED IN SECTION 2905(3)(I).
6 THE PROGRAMS MAY INVOLVE INSTRUCTION WITHIN A LOCAL EDUCATION
7 AGENCY, WITHIN A PRIVATE COMPANY PLANT OR ON-THE-JOB TRAINING,
8 WITHIN A TRAINING PROGRAM OF A LABOR ORGANIZATION, THROUGH
9 TECHNOLOGY-BASED INSTRUCTION OR ANY COMBINATION THEREOF.
10 SECTION 2902. PROGRAM.
11 (A) PROGRAM ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
12 DEPARTMENT THE CUSTOMIZED JOB TRAINING PROGRAM. FUNDS
13 APPROPRIATED TO THE DEPARTMENT FOR THE PROGRAM SHALL BE USED TO
14 PROVIDE GRANTS FOR TRAINING PROGRAMS.
15 (B) DEPARTMENT RESPONSIBILITIES.--THE DEPARTMENT SHALL DO
16 ALL OF THE FOLLOWING:
17 (1) ADMINISTER THE PROGRAM.
18 (2) REVIEW, APPROVE AND AWARD GRANTS TO APPLICANTS IN
19 ACCORDANCE WITH SECTIONS 2904 AND 2905.
20 (3) ENTER INTO ONE OR MORE PARTNERSHIPS WITH ONE OR MORE
21 LOCAL EDUCATION AGENCIES OR OTHER TRAINING PROVIDERS IN
22 ACCORDANCE WITH SECTION 2907.
23 (4) ESTABLISH, AT THE BEGINNING OF EACH FISCAL YEAR, A
24 RESERVE NOT TO EXCEED 25% OF THE FUNDS APPROPRIATED TO THE
25 DEPARTMENT FOR THE PROGRAM FOR THE USE OF SMALL BUSINESS
26 APPLICANTS. ANY UNCOMMITTED FUNDS IN THE RESERVE AFTER MARCH
27 1 OF ANY FISCAL YEAR MAY BE MADE AVAILABLE TO ANY APPLICANT.
28 (5) ESTABLISH A PRIVATE MATCHING FUND REQUIREMENT FOR
29 APPLICANTS. THE DEPARTMENT SHALL ESTABLISH THE PRIVATE
30 MATCHING FUND REQUIREMENT FOR APPLICANTS WHICH ARE PRIVATE
20020S1370B2037 - 24 -
1 COMPANIES OR LABOR ORGANIZATIONS AT NOT LESS THAN 25% OF THE
2 TOTAL ELIGIBLE TRAINING PROJECT COST. THE DEPARTMENT MAY
3 ESTABLISH DIFFERENT MATCHING FUND REQUIREMENTS FOR SMALL
4 BUSINESSES AND LABOR ORGANIZATIONS.
5 SECTION 2903. APPLICATIONS.
6 (A) PROVISIONS OF APPLICATION.--AN APPLICANT MAY SUBMIT AN
7 APPLICATION TO THE DEPARTMENT FOR A GRANT TO FUND A TRAINING
8 PROGRAM IN ACCORDANCE WITH THE FOLLOWING:
9 (1) IF AN APPLICATION IS SUBMITTED BY AN INDUSTRIAL
10 RESOURCE CENTER OR ECONOMIC DEVELOPMENT ORGANIZATION, THE
11 INDUSTRIAL RESOURCE CENTER OR ECONOMIC DEVELOPMENT
12 ORGANIZATION MAY APPLY FOR A GRANT ON BEHALF OF A PRIVATE
13 COMPANY, GREENHOUSE OR LABOR ORGANIZATION. AN ECONOMIC
14 DEVELOPMENT ORGANIZATION MAY NOT SERVE AS THE DIRECT TRAINING
15 PROVIDER OF THE TRAINEES.
16 (2) IF AN APPLICATION IS SUBMITTED BY A LOCAL WORK FORCE
17 INVESTMENT BOARD, THE LOCAL WORK FORCE INVESTMENT BOARD MAY
18 APPLY FOR A GRANT ONLY ON BEHALF OF PROJECTS WHICH PROMOTE
19 LOCAL EDUCATION AGENCY AND PRIVATE COMPANY PARTNERSHIPS OR
20 PRIVATE COMPANY AND PRIVATE COMPANY PARTNERSHIPS.
21 (3) IF AN APPLICATION TO TRAIN ENTRY-LEVEL EMPLOYEES IS
22 SUBMITTED BY OR ON BEHALF OF A PRIVATE COMPANY, THE APPLICANT
23 SHALL DEMONSTRATE THAT THE PRIVATE COMPANY HAS CONTACTED THE
24 LOCAL WORK FORCE INVESTMENT BOARD AND THE LOCAL COUNTY BOARD
25 OF ASSISTANCE TO SOLICIT REFERRALS OF CANDIDATES FOR THE
26 TRAINING PROGRAM.
27 (4) IF AN APPLICATION IS SUBMITTED BY ANY OTHER PERSON,
28 THE APPLICATION SHALL SATISFY ANY REQUIREMENTS ESTABLISHED BY
29 THE DEPARTMENT.
30 (B) REQUIREMENTS OF APPLICATION.--AN APPLICATION SHALL:
20020S1370B2037 - 25 -
1 (1) DEMONSTRATE THAT THE APPLICANT CONSIDERED OTHER
2 AVAILABLE RESOURCES, INCLUDING PRIVATE SECTOR FUNDS, OTHER
3 STATE OR LOCAL AGENCY TRAINING PROGRAMS OR FUNDS MADE
4 AVAILABLE UNDER THE WORKFORCE INVESTMENT ACT OF 1998 (PUBLIC
5 LAW 105-200, 112 STAT. 936), OR SUCH OTHER FEDERAL PROGRAMS
6 WHICH PROVIDE FUNDS FOR EMPLOYMENT TRAINING.
7 (2) CONTAIN A DESCRIPTION OF THE PROPOSED TRAINING OR
8 INSTRUCTIONAL PROGRAM TO BE CARRIED OUT.
9 (3) DISCLOSE IF AN APPLICANT INTENDS TO CONTRACT WITH
10 OTHER ORGANIZATIONS OR INDIVIDUALS FOR THE PROVISION OF ALL
11 OR A PORTION OF THE SERVICES TO BE PROVIDED AND IF DISCLOSED,
12 A REQUEST TO ALLOCATE A PORTION OF THE GRANT FROM THE
13 APPLICANT TO THE SUBCONTRACTOR.
14 (4) INCLUDE A WRITTEN COMMITMENT FROM THE APPLICANT TO
15 INVEST PRIVATE MATCHING FUNDS IN THE TRAINING PROJECT.
16 SECTION 2904. REVIEW OF APPLICATIONS.
17 THE DEPARTMENT SHALL REVIEW AN APPLICATION AND MAY REQUEST
18 FROM THE APPLICANT AND ITS TRAINING PROVIDER SUCH ADDITIONAL
19 INFORMATION AND RECORDS AS IT DEEMS NECESSARY TO CARRY OUT ITS
20 RESPONSIBILITIES UNDER THIS CHAPTER.
21 SECTION 2905. APPROVAL OF APPLICATIONS AND AWARD OF GRANTS.
22 THE DEPARTMENT MAY APPROVE AND AWARD GRANTS TO APPLICANTS IN
23 ACCORDANCE WITH ALL OF THE FOLLOWING:
24 (1) THE DEPARTMENT MUST FIND THAT THE APPLICANT HAS
25 SATISFIED THE APPLICABLE MATCHING FUND REQUIREMENT AND THAT
26 THE GRANT WILL BE USED BY THE APPLICANT TO PROVIDE TRAINING
27 OR INSTRUCTION ONLY TO COMMONWEALTH RESIDENTS.
28 (2) THE DEPARTMENT MUST FIND THAT THE GRANT WILL RESULT
29 IN ANY OF THE FOLLOWING OBJECTIVES:
30 (I) THE LOCATION OR EXPANSION OF A PRIVATE COMPANY
20020S1370B2037 - 26 -
1 OR GREENHOUSE WITHIN THIS COMMONWEALTH WITH THE CREATION
2 OF JOBS PAYING COMPETITIVE WAGES AND THE PRIVATE COMPANY
3 OR GREENHOUSE MAKING CAPITAL EXPENDITURES.
4 (II) THE EXPANSION OR UPGRADE OF EXISTING JOBS WHICH
5 RESULT IN INCREASED WAGES FOR THE JOBS.
6 (III) THE RETENTION OF JOBS IN THIS COMMONWEALTH
7 WHICH WOULD OTHERWISE BE LOST.
8 (IV) THE PROMOTION OF LOCAL EDUCATION AGENCY AND
9 PRIVATE COMPANY PARTNERSHIPS AND PRIVATE COMPANY AND
10 PRIVATE COMPANY PARTNERSHIPS IF A DIRECT CONNECTION
11 BETWEEN THE DEVELOPMENT OF SKILLS AND SUBSEQUENT
12 EMPLOYMENT BY ONE OR MORE PRIVATE COMPANIES CAN BE
13 DEMONSTRATED.
14 (V) THE PROMOTION OF EFFORTS BY A LABOR ORGANIZATION
15 TO UPGRADE THE SKILLS OF ITS MEMBERS.
16 (3) THE DEPARTMENT SHALL GIVE PRIORITY TO THOSE
17 APPLICATIONS WHICH HAVE ANY OF THE FOLLOWING CHARACTERISTICS:
18 (I) THE APPLICATION WOULD ESTABLISH A TRAINING
19 PROGRAM DETERMINED BY THE DEPARTMENT TO BE IN A GROWTH
20 INDUSTRY VITAL TO THIS COMMONWEALTH'S COMPETITIVENESS.
21 THESE INDUSTRIES INCLUDE: AGRIBUSINESS, ADVANCED
22 MANUFACTURING, ADVANCED MATERIALS, LIFE SCIENCES,
23 BIOTECHNOLOGY AND HEALTH CARE, ENVIRONMENTAL TECHNOLOGY
24 AND INFORMATION TECHNOLOGY.
25 (II) THE APPLICANT IS A PRIVATE COMPANY OR LABOR
26 ORGANIZATION AND IS LOCATED:
27 (A) IN A MUNICIPALITY IN WHICH THE AVERAGE
28 UNEMPLOYMENT RATE IN THE MOST RECENTLY COMPLETED
29 CALENDAR YEAR IS ABOVE THE STATEWIDE AVERAGE
30 UNEMPLOYMENT RATE FOR THE SAME PERIOD;
20020S1370B2037 - 27 -
1 (B) IN A STATE-DESIGNATED ENTERPRISE ZONE; OR
2 (C) IN A MUNICIPALITY OR REGION WHICH HAS
3 SUFFERED A SIGNIFICANT LOSS OF JOBS DUE TO ONE OR
4 MORE MAJOR PLANT CLOSINGS, LAYOFFS OR NATURAL OR MAN-
5 MADE DISASTER.
6 (III) THE APPLICATION IS SUBMITTED BY OR ON BEHALF
7 OF A PRIVATE COMPANY WHICH PLANS TO CREATE 50 OR MORE
8 JOBS AND WHICH IS MAKING A CAPITAL INVESTMENT OF AT LEAST
9 $1,000,000.
10 (4) THE DEPARTMENT MAY DETERMINE THAT THE GRANT WILL BE
11 USED BY THE APPLICANT TO REIMBURSE THE COST OF TRAINING.
12 COSTS MAY INCLUDE INSTRUCTIONAL COSTS, COSTS OF INSTRUCTIONAL
13 OR TRAINING MATERIAL OR SOFTWARE, COSTS ASSOCIATED WITH
14 TUITION REIMBURSEMENT AND REASONABLE ADMINISTRATIVE COSTS AS
15 DETERMINED BY THE DEPARTMENT.
16 SECTION 2906. LIMITATIONS.
17 (A) DEPARTMENT.--THE DEPARTMENT MAY NOT DO ANY OF THE
18 FOLLOWING:
19 (1) AWARD GRANTS UNDER THIS CHAPTER WHICH IN THE
20 AGGREGATE EXCEED THE AMOUNT OF THE ANNUAL APPROPRIATIONS TO
21 THE DEPARTMENT FOR THE PROGRAM.
22 (2) AWARD MORE THAN 10% OF THE FUNDS APPROPRIATED TO THE
23 PROGRAM IN ANY ONE FISCAL YEAR TO ANY ONE PRIVATE COMPANY,
24 GREENHOUSE OR LABOR ORGANIZATION INCLUDING ANY AFFILIATES
25 THEREOF.
26 (3) AWARD A GRANT TO OR ON BEHALF OF ANY PRIVATE COMPANY
27 OR LABOR ORGANIZATION INCLUDING ANY AFFILIATES THEREOF, FOR
28 MORE THAN TWO SUCCESSIVE FISCAL YEARS AND FOR NO MORE THAN
29 THREE OUT OF EVERY FIVE FISCAL YEARS.
30 (B) RECIPIENTS.--A RECIPIENT OF A GRANT MAY NOT DO ANY OF
20020S1370B2037 - 28 -
1 THE FOLLOWING:
2 (1) USE A GRANT TO DO ANY OF THE FOLLOWING:
3 (I) PAY WAGES OF TRAINEES DURING TRAINING.
4 (II) PAY ANY COSTS ASSOCIATED WITH BUILDING
5 CONSTRUCTION OR RENOVATION OR THE ACQUISITION, UPGRADE OR
6 INSTALLATION OF EQUIPMENT OR MACHINERY INCLUDING COMPUTER
7 EQUIPMENT.
8 (2) USE A GRANT TO REDUCE THE WORK FORCE OR DISPLACE
9 WORKERS OF A PRIVATE COMPANY PRIOR TO THE COMMENCEMENT OF A
10 TRAINING PROGRAM EXCEPT BECAUSE THE INTRODUCTION OF NEW
11 MANUFACTURING TECHNIQUES, TECHNOLOGY AND MODERNIZATION MAY
12 LEAD TO SHORT-TERM REDUCTIONS IN A PRIVATE COMPANY'S WORK
13 FORCE. THE SECRETARY MAY WAIVE THIS GRANT LIMITATION IF THE
14 LONG-TERM ECONOMIC BENEFITS TO BE GAINED BY THE PRIVATE
15 COMPANY SIGNIFICANTLY EXCEED THE SHORT-TERM DETRIMENT TO ITS
16 WORK FORCE.
17 (3) USE A GRANT TO VIOLATE ANY CONDITIONS OF AN EXISTING
18 COLLECTIVE BARGAINING AGREEMENT.
19 (4) USE A GRANT FOR POINT-OF-SALE RETAIL JOB TRAINING.
20 SECTION 2907. PARTNERSHIPS.
21 IF THE DEPARTMENT DETERMINES THAT A TRAINING PROGRAM IS MORE
22 EFFECTIVELY DELIVERED THROUGH A PARTNERSHIP, THE DEPARTMENT MAY
23 ENTER INTO PARTNERSHIP AGREEMENTS WITH ONE OR MORE LOCAL
24 EDUCATION AGENCIES OR OTHER TRAINING PROVIDERS TO PROVIDE THE
25 TRAINING PROGRAM. THE TRAINING PROGRAMS SHALL CONSIST OF BASIC
26 AND ENTRY-LEVEL SKILLS, TECHNOLOGY SKILL TRAINING, TRAINING
27 RELATED TO JOB RETENTION OR OTHER SPECIFIED TRAINING ASSISTANCE.
28 UNDER A PARTNERSHIP ARRANGEMENT, THE DEPARTMENT MAY LIMIT THE
29 NUMBER AND CATEGORY OF APPLICANTS WHICH MAY SUBMIT APPLICATIONS
30 FOR ASSISTANCE AND MAY ESTABLISH MINIMAL STANDARDS AND
20020S1370B2037 - 29 -
1 REQUIREMENTS FOR PROJECT ELIGIBILITY. THESE REQUIREMENTS MAY BE
2 SEPARATE AND DISTINCT FROM THE REQUIREMENTS ESTABLISHED UNDER
3 THIS CHAPTER EXCEPT THAT THE PROVISION OF SECTION 2906(B) SHALL
4 APPLY TO ALL TRAINING PROGRAMS FUNDED UNDER THIS CHAPTER.
5 SECTION 2908. COMPLIANCE WITH STATUTES AND COLLECTIVE
6 BARGAINING AGREEMENTS.
7 THE DEPARTMENT SHALL REQUIRE EACH PERSON RECEIVING A GRANT
8 UNDER THIS CHAPTER TO COMPLY WITH APPLICABLE FEDERAL AND STATE
9 STATUTES GOVERNING EMPLOYMENT DISCRIMINATION, MINORITY
10 RECRUITMENT, MINIMUM OR PREVAILING WAGES, WORK SITE SAFETY AND
11 PROCUREMENT PRACTICES. THE DEPARTMENT SHALL REQUIRE EACH PRIVATE
12 COMPANY RECEIVING A GRANT UNDER THIS CHAPTER TO CERTIFY THAT ITS
13 TRAINING PROGRAM DOES NOT ABRIDGE ANY CONTRACTUAL AGREEMENT
14 BETWEEN THE PRIVATE COMPANY AND THE COLLECTIVE BARGAINING
15 REPRESENTATIVE OF ITS EMPLOYEES.
16 SECTION 2909. PENALTIES AND INVESTIGATIONS.
17 (A) PRIVATE COMPANY.--UNLESS THE DEPARTMENT DETERMINES THAT
18 A PRIVATE COMPANY'S FAILURE IS DUE TO CIRCUMSTANCES OUTSIDE THE
19 CONTROL OF THE PRIVATE COMPANY, THE PRIVATE COMPANY SHALL BE
20 LIABLE TO REPAY ALL OR PART OF THE AMOUNT OF A GRANT AWARDED
21 UNDER THIS CHAPTER IF THE PRIVATE COMPANY DOES ANY OF THE
22 FOLLOWING:
23 (1) FAILS TO CREATE THE NUMBER OF JOBS SPECIFIED IN ITS
24 AGREEMENT WITH OR COMMITMENT TO THE DEPARTMENT.
25 (2) FAILS TO MAKE THE AMOUNT OF CAPITAL INVESTMENT
26 SPECIFIED IN THE APPLICATION TO THE DEPARTMENT.
27 (3) FAILS TO SUBSTANTIALLY CARRY OUT THE TRAINING
28 PROGRAM APPROVED BY THE DEPARTMENT.
29 (B) APPLICANTS.--AN APPLICANT OR SUBCONTRACTOR THAT FAILS TO
30 PROVIDE FOR OR TO PERFORM A TRAINING PROGRAM APPROVED BY THE
20020S1370B2037 - 30 -
1 DEPARTMENT MAY BE REQUIRED TO REPAY TO THE DEPARTMENT ANY FUNDS
2 IT RECEIVED UNDER A GRANT AWARDED BY THE DEPARTMENT.
3 (C) INVESTIGATION.--UPON RECEIVING ANY COMPLAINT FROM A
4 PRIVATE COMPANY, GREENHOUSE, LABOR ORGANIZATION OR TRAINEE AS TO
5 THE INADEQUACY OF TRAINING RECEIVED, THE DEPARTMENT MAY INITIATE
6 AN INVESTIGATION AND TAKE APPROPRIATE ACTION, INCLUDING THE
7 RECOVERY OF GRANT FUNDS EXPENDED.
8 Section 6 5. Section 5105 of the act is amended to read: <--
9 Section 5105. Power and authority of the Pennsylvania Economic
10 Development Financing Authority.
11 In addition to the powers set forth in section 6.3 of the act
12 of August 23, 1967 (P.L.251, No.102), known as the Economic
13 Development Financing Law, the Pennsylvania Economic Development
14 Financing Authority established under that act shall have the
15 power and is hereby authorized to issue its limited obligation
16 revenue bonds and other types of financing, as in the judgment
17 of the financing authority shall be necessary, to provide
18 sufficient funds for any activity the department or the
19 Pennsylvania Industrial Development Authority is permitted to
20 take with respect to the loan portfolios subject to their
21 respective administrative authority [as set forth in section
22 1302]. Bonds authorized to be issued under this section shall
23 not be a debt or liability of the Commonwealth and shall not
24 create or constitute any indebtedness, liability or obligation
25 of the Commonwealth except to the extent the bonds are secured
26 by the pledge of loan portfolios. Bonds authorized to be issued
27 under this section shall be payable solely from the revenues or
28 funds pledged or available for their repayment.
29 Section 7 6. The act of December 20, 1985 (P.L.492, No.116), <--
30 known as the Customized Job Training Act, is repealed.
20020S1370B2037 - 31 -
1 Section 8 7. This act shall take effect immediately. <--
B14L12JS/20020S1370B2037 - 32 -