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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1829, 1908, 2037,        PRINTER'S NO. 2174
        2080

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

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 THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 28, 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
    14     training; and further providing for the power and authority
    15     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


     1  (P.L.247, No.23) and November 17, 1998 (P.L.788, No.100), are
     2  amended and the section is amended by adding definitions to
     3  read:
     4  Section 1301.  Definitions.
     5     The following words and phrases when used in this chapter
     6  shall have the meanings given to them in this section unless the
     7  context clearly indicates otherwise:
     8     * * *
     9     "Agricultural producer."  A person or entity involved in the
    10  management and use of normal agricultural operation for the
    11  production of a farm commodity.
    12     * * *
    13     "Capital development project" or "project."  Land, buildings,
    14  equipment and machinery and working capital which is acquired,
    15  constructed, renovated or used by a small business enterprise:
    16         (1)  As part of a for-profit project or venture not of a
    17     mercantile or service-related nature, except for hospitality
    18     industry projects and except as otherwise provided in section
    19     1303(a.1).
    20         (2)  To bring a small business enterprise into compliance
    21     with Federal or State environmental laws or regulations or to
    22     complete an approved remediation project or to permit the
    23     small business enterprise to adopt generally acceptable
    24     pollution prevention practices.
    25         (3)  To provide assistance to small business enterprises
    26     that are recyclers of municipal or commercial waste or that
    27     are manufacturers using recycled municipal or commercial
    28     waste materials.
    29         (4)  To assist a small business enterprise with defense
    30     conversion activities.
    20020S1370B2174                  - 2 -

     1         (5)  For the manufacture of products to be exported out
     2     of the United States by a small business enterprise as part
     3     of a for-profit project or venture not of a mercantile or
     4     service-related nature, except for export-related services
     5     and international export-related mercantile ventures or
     6     advanced technology and computer-related services and
     7     mercantile ventures, which will increase this Commonwealth's
     8     national or international market shares.
     9         (6)  As part of a for-profit project or venture that
    10     meets the requirements of section 1303(a.1).
    11         (7)  To assist in the start-up or expansion of a for-
    12     profit or not-for-profit child day-care center subject to
    13     licensure by the Commonwealth.
    14     "Child day-care center."  Any premises in which child day
    15  care is provided simultaneously for seven or more children who
    16  are not related to the provider.
    17         * * *
    18     "Export activity."  An activity undertaken by an enterprise
    19  related to exports of goods and services outside of the United
    20  States. [The term includes manufacturing, assembling and like
    21  operations.]
    22     * * *
    23     "Small business [enterprises] enterprise."  A for-profit
    24  corporation, partnership [or], proprietorship, limited liability
    25  company or other entity which meets the eligibility requirements
    26  established by the department. The term shall include, but is
    27  not limited to, a small business [enterprises] enterprise which:
    28         (1)  is located in a small business incubator
    29     [facilities, small business enterprises which are] facility;
    30         (2)  is an agricultural [processors and small business
    20020S1370B2174                  - 3 -

     1     enterprises which manufacture] processor;
     2         (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) and (a.2) and
     8  1304(a.1) and (a.2) of the act, amended or added November 17,
     9  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
    30  areas.--
    20020S1370B2174                  - 4 -

     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] small business enterprise
    13         must agree to retain, at a minimum, jobs in existence as
    14         of the date of loan application.
    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 or other specifically defined
    25         geographic area in which:
    26                 (A)  there is a median income below 80% of the
    27             median income for this Commonwealth or the United
    28             States;
    29                 (B)  20% or more of the population is below the
    30             poverty level by family size published by the Bureau
    20020S1370B2174                  - 5 -

     1             of the Census; or
     2                 (C)  there is an unemployment rate 50% higher
     3             than the national average.
     4             (ii)  A Keystone Opportunity Zone.
     5             (iii)  Any other geographic area designated by the
     6         department as distressed. The designation shall be
     7         published in the Pennsylvania Bulletin.
     8         (3)  The department and area loan organization shall not
     9     make loans under this subsection on the basis of direct
    10     financial return on investment and shall not be held to the
    11     loan loss standards of private commercial lenders. Loans
    12     shall be for the purpose of establishing a strong economic
    13     base and promoting entrepreneurial activity within the
    14     distressed community.
    15         (4)  In order to receive a loan under this subsection, a
    16     small business enterprise must demonstrate a direct impact on
    17     the community in which it is located, on residents of that
    18     community, or on the local and/or regional economy. The
    19     department shall establish criteria that will assist small
    20     business enterprises in making this demonstration.
    21     (a.2)  Pollution prevention assistance loans.--The Pollution
    22  Prevention Assistance Account created under section 1302(b.1)
    23  shall provide revolving loans to small businesses.
    24         (1)  The loans shall be for the purpose of enabling the
    25     small business to adopt or install pollution prevention
    26     equipment or processes to:
    27             (i)  Reduce or reuse raw materials onsite.
    28             (ii)  Reduce the production of waste.
    29             (iii)  Reduce energy consumption.
    30         (2)  The Pollution Prevention Assistance Account shall
    20020S1370B2174                  - 6 -

     1     not invest on the basis of direct financial return and shall
     2     not be held to the loan loss standards of commercial lenders.
     3     Loans shall be for the purpose of reducing pollution through
     4     source reduction technologies or processes.
     5         (3)  A loan under this subsection may not exceed the
     6     lesser of:
     7             (i)  [$50,000] $100,000; or
     8             (ii)  75% of eligible project costs.
     9         (4)  Loans under this subsection shall have an interest
    10     rate of 2% per year and a [maximum] repayment term of [seven]
    11     not to exceed ten years.
    12         (5)  An industrial resource center receiving funds under
    13     the act of [July 2, 1993 (P.L.439, No.64), known as the Ben
    14     Franklin/IRC Partnership Act] June 22, 2001 (P.L.400, No.31),
    15     known as the Industrial Resources Center Partnership Act, may
    16     utilize the account to provide assistance to a small business
    17     enterprise for which a loan application has been made.
    18         (6)  Loans under this subsection shall be used to further
    19     the goal of pollution prevention through the purchase and
    20     installation of equipment to make operational changes and
    21     modify production practices.
    22     * * *
    23  Section 1304.  Application and administration.
    24     * * *
    25     [(a.1)  Distressed communities.--An area loan organization
    26  designated to administer loans to distressed communities under
    27  section 1303(a.1) shall provide documentation that the small
    28  business enterprise is located in a distressed community as
    29  required by the department.]
    30     (a.2)  Pollution prevention assistance loans.--
    20020S1370B2174                  - 7 -

     1         (1)  Applications for loans from the Pollution Prevention
     2     Assistance Account established under section 1302(b.1) shall
     3     be on a form prescribed by the department and shall be
     4     reviewed under subsection (b)(2). The Department of
     5     Environmental Protection shall assist the department and
     6     provide technical assistance with application review.
     7         (2)  The department, an area loan organization or an
     8     industrial resource center may charge fees, costs, service
     9     charges, loan commitment fees or other expenses not to exceed
    10     [1%] 5% of the loan amount.
    11     * * *
    12     Section 3.  Section 1311(e), (g) and (h) of the act, added
    13  June 24, 1997 (P.L.247, No.23), are amended and the section is
    14  amended by adding a subsection to read:
    15  Section 1311.  Export Financing Loan Fund; loans and
    16                 applications; powers and duties.
    17     * * *
    18     (e)  Conditions.--A loan must comply with all of the
    19  following:
    20         [(1)  Be to a company eligible for a policy.
    21         (2)  Be guaranteed by the Working Capital Guaranty
    22     Program offered by the Ex-Im Bank or be on an export credit
    23     sales contract insured by a policy.]
    24         (3)  Be limited to [companies that have facilities within
    25     this Commonwealth which are involved in export activities]
    26     the financing of export activities that take place within
    27     this Commonwealth.
    28         (4)  Be based on an export contract that requires payment
    29     in United States dollars.
    30         [(5)  Be for the purpose of financing export activity.]
    20020S1370B2174                  - 8 -

     1         (6)  Be limited to companies with 250 or fewer full-time
     2     [equivalent] employees.
     3     (e.1)  Additional conditions.--At the discretion of the
     4  department, a loan may also be required to comply with one or
     5  both of the following conditions:
     6         (1)  Be to a company eligible for a policy.
     7         (2)  Be guaranteed by the Working Capital Guaranty
     8     Program offered by the Ex-Im Bank or be on an export credit
     9     sales contract insured by a policy.
    10     * * *
    11     (g)  Restrictions.--Export Financing Loan Fund assistance
    12  shall not exceed $350,000 for any individual project [or 50% of
    13  the eligible project costs, whichever is less]. A loan must not
    14  supplant funding which is otherwise available from private
    15  sector sources on commercially reasonable terms.
    16     (h)  Terms.--A loan shall have a term, rate of interest,
    17  transaction size and other business conditions that comply with
    18  the requirements [of the Ex-Im Bank and any other requirements]
    19  of the department.
    20     * * *
    21     Section 4.  The act is amended by adding a chapter to read:
    22                             CHAPTER 29
    23                  CUSTOMIZED JOB TRAINING PROGRAM
    24  Section 2901.  Definitions.
    25     The following words and phrases when used in this chapter
    26  shall have the meanings given to them in this section unless the
    27  context clearly indicates otherwise:
    28     "Applicant."  Any of the following:
    29         (1)  A local education agency.
    30         (2)  An industrial resource center.
    20020S1370B2174                  - 9 -

     1         (3)  An economic development organization.
     2         (4)  A greenhouse.
     3         (5)  A private company.                                    <--
     4         (6) (5)  A local work force investment board.
     5     "Capital investment."  An expenditure for land, buildings,
     6  renovations, machinery and equipment which is directly related
     7  to the need for the proposed training.
     8     "Economic development organization."  An entity certified by
     9  the department. The term includes "area loan organizations" and
    10  "industrial development corporations" as defined in section
    11  2301.
    12     "Educational institution."  Any of the following:
    13         (1)  Area vocational-technical schools.
    14         (2)  Community and junior colleges.
    15         (3)  Intermediate units.
    16         (4)  Licensed private/proprietary business and trade
    17     schools.
    18         (5)  Public school districts.
    19         (6)  State or private colleges or universities.
    20     "Greenhouse."  A nonprofit organization recognized under
    21  section 501(c)(3) of the Internal Revenue Code of 1986 (Public
    22  Law 99-514, 26 U.S.C. § 501(c)(3)) which is formed for the
    23  express purpose of creating university/business partnerships to
    24  advance science and technology and to support economic and work
    25  force development.
    26     "Industrial resource center."  An industrial resource center
    27  as defined in the act of June 22, 2001 (P.L.400, No.31), known
    28  as the Industrial Resources Center Partnership Act.
    29     "Labor organization."  An organization, agency or employee
    30  representation committee or plan in which employees participate
    20020S1370B2174                 - 10 -

     1  and which exists for the purpose, in whole or in part, of
     2  dealing with disputes between an employer and its employees
     3  involving grievances, labor disputes, wages, rates of pay, hours
     4  of employment or conditions of work. The term does not include
     5  an organization, agency, committee or plan which practices
     6  discrimination in membership because of race, color, creed,
     7  national origin, sex or political affiliation.
     8     "Local education agency."  An educational institution located
     9  in the Commonwealth and certified by the Department of
    10  Education.
    11     "Local work force investment board."  An entity recommended
    12  for certification by the Pennsylvania Workforce Investment Board
    13  and certified by the Governor in accordance with the act of
    14  December 18, 2001 (P.L.949, No.114), known as the Workforce
    15  Development Act.
    16     "Private company."  A business, professional service company
    17  or other enterprise. The term may include a group of two or more
    18  private companies operating as a consortium in order to take
    19  advantage of a common training program. The term shall not
    20  include point-of-sale retail businesses.
    21     "Program."  The Customized Job Training Program established
    22  in section 2902.
    23     "Trainee."  An individual who is an employee or prospective
    24  employee and is enrolled in an eligible training program which
    25  is designed to enable the individual to obtain or retain
    26  employment.
    27     "Training program."  A systematic program which is designed
    28  to provide a trainee with the skills and knowledge necessary to
    29  meet a private company's or labor organization's specifications
    30  for an occupation or trade, the successful completion of which
    20020S1370B2174                 - 11 -

     1  results in one of the following:
     2         (1)  The trainee being employed or continuing to be
     3     employed full time by that private company.
     4         (2)  A trainee receiving instruction or training related
     5     to an occupation with a shortage of skilled workers or a
     6     targeted industry cluster as referred in section 2905(3)(i).
     7  The programs may involve instruction within a local education
     8  agency, within a private company plant or on-the-job training,
     9  within a training program of a labor organization, through
    10  technology-based instruction or any combination thereof.
    11  Section 2902.  Program.
    12     (a)  Program continuation.--The customized job training
    13  program within the department is continued and reestablished.
    14  Funds appropriated to the department for the program shall be
    15  used to provide grants for training programs.
    16     (b)  Department responsibilities.--The department shall do
    17  all of the following:
    18         (1)  Administer the program.
    19         (2)  Review, approve and award grants to applicants in
    20     accordance with sections 2904 and 2905.
    21         (3)  Enter into one or more partnerships with one or more
    22     local education agencies or other training providers in
    23     accordance with section 2907.
    24         (4)  Establish, at the beginning of each fiscal year, a
    25     reserve not to exceed 25% of the funds appropriated to the
    26     department for the program for the use of small business
    27     applicants. Any uncommitted funds in the reserve after March
    28     1 of any fiscal year may be made available to any applicant.
    29         (5)  Establish a private matching fund requirement for
    30     applicants. The department shall establish the private
    20020S1370B2174                 - 12 -

     1     matching fund requirement for applicants RECIPIENTS which are  <--
     2     private companies or labor organizations at not less than 25%
     3     of the total eligible training project cost. The department
     4     may establish different matching fund requirements for small
     5     businesses and labor organizations.
     6  Section 2903.  Applications.
     7     (a)  Provisions of application.--An applicant may submit an
     8  application to the department for a grant to fund a training
     9  program in accordance with the following:
    10         (1)  If an application is submitted by an industrial
    11     resource center or economic development organization, the
    12     industrial resource center or economic development
    13     organization may apply for a grant on behalf of a private
    14     company, greenhouse or labor organization. An economic
    15     development organization may not serve as the direct training
    16     provider of the trainees.
    17         (2)  If an application is submitted by a local work force
    18     investment board, the local work force investment board may
    19     apply for a grant only on behalf of projects which promote
    20     local education agency and private company partnerships or
    21     private company and private company partnerships.
    22         (3)  If an application to train entry-level employees is   <--
    23     submitted by or on behalf of a private company, the applicant
    24     shall demonstrate that the private company has contacted the
    25     local work force investment board and the local county board
    26     of assistance to solicit referrals of candidates for the
    27     training program.
    28         (4) (3)  If an application is submitted by any other
    29     person, the application shall satisfy any requirements
    30     established by the department.
    20020S1370B2174                 - 13 -

     1     (b)  Requirements of application.--An application shall:
     2         (1)  Demonstrate that the applicant considered other
     3     available resources, including private sector funds, other
     4     State or local agency training programs or funds made
     5     available under the Workforce Investment Act of 1998 (Public
     6     Law 105-200, 112 Stat. 936), or such other Federal programs
     7     which provide funds for employment training.
     8         (2)  Contain a description of the proposed training or
     9     instructional program to be carried out.
    10         (3)  Disclose if an applicant intends to contract with
    11     other organizations or individuals for the provision of all
    12     or a portion of the services to be provided and if disclosed,
    13     a request to allocate a portion of the grant from the
    14     applicant to the subcontractor.
    15         (4)  Include a written commitment from the applicant to
    16     invest private matching funds in the training project.
    17  Section 2904.  Review of applications.
    18     The department shall review an application and may request
    19  from the applicant and its training provider such additional
    20  information and records as it deems necessary to carry out its
    21  responsibilities under this chapter.
    22  Section 2905.  Approval of applications and award of grants.
    23     The department may approve and award grants to applicants in
    24  accordance with all of the following:
    25         (1)  The department must find that the applicant has
    26     satisfied the applicable matching fund requirement and that
    27     the grant will be used by the applicant to provide training
    28     or instruction only to Commonwealth residents.
    29         (2)  The department must find that the grant will result
    30     in any of the following objectives:
    20020S1370B2174                 - 14 -

     1             (i)  The location or expansion of a private company
     2         or greenhouse within this Commonwealth with the creation
     3         of jobs paying competitive wages and the private company
     4         or greenhouse making capital expenditures.
     5             (ii)  The expansion or upgrade of existing jobs which
     6         result in increased wages for the jobs.
     7             (iii)  The retention of jobs in this Commonwealth
     8         which would otherwise be lost.
     9             (iv)  The promotion of local education agency and
    10         private company partnerships and private company and
    11         private company partnerships if a direct connection
    12         between the development of skills and subsequent
    13         employment by one or more private companies can be
    14         demonstrated.
    15             (v)  The promotion of efforts by a labor organization
    16         to upgrade the skills of its members.
    17         (3)  The department shall give priority to those
    18     applications which have any of the following characteristics:
    19             (i)  The application would establish a training
    20         program determined by the department to be in a growth
    21         industry vital to this Commonwealth's competitiveness.
    22         These industries include: agribusiness, advanced
    23         manufacturing, advanced materials, life sciences,
    24         biotechnology and health care, environmental technology
    25         and information technology.
    26             (ii)  The application is submitted on behalf of a
    27         private company or labor organization and is located:
    28                 (A)  in a municipality in which the average
    29             unemployment rate in the most recently completed
    30             calendar year is above the Statewide average
    20020S1370B2174                 - 15 -

     1             unemployment rate for the same period;
     2                 (B)  in a State-designated enterprise zone; or
     3                 (C)  in a municipality or region which has
     4             suffered a significant loss of jobs due to one or
     5             more major plant closings, layoffs or natural or man-
     6             made disaster.
     7             (iii)  The application is submitted by or on behalf    <--
     8         of a private company which plans to create 50 or more
     9         jobs and which is making a capital investment of at least
    10         $1,000,000.
    11         (4)  The department may determine that the grant will be
    12     used by the applicant to reimburse the cost of training.
    13     Costs may include instructional costs, costs of instructional
    14     or training material or software, costs associated with
    15     tuition reimbursement and reasonable administrative costs as
    16     determined by the department.
    17  Section 2906.  Limitations.
    18     (a)  Department.--The department may not do any of the
    19  following:
    20         (1)  Award grants under this chapter which in the
    21     aggregate exceed the amount of the annual appropriations to
    22     the department for the program.
    23         (2)  Award more than 10% of the funds appropriated to the
    24     program in any one fiscal year to any one private company,     <--
    25     greenhouse or labor organization including any affiliates
    26     thereof.
    27         (3)  Award a grant to or on behalf of any private company  <--
    28     or labor organization including any affiliates thereof, for
    29     more than two successive fiscal years and for no more than
    30     three out of every five fiscal years.
    20020S1370B2174                 - 16 -

     1     (b)  Recipients.--A recipient of a grant may not do any of
     2  the following:
     3         (1)  Use a grant to do any of the following:
     4             (i)  Pay wages of trainees during training.
     5             (ii)  Pay any costs associated with building
     6         construction or renovation or the acquisition, upgrade or
     7         installation of equipment or machinery including computer
     8         equipment.
     9         (2)  Use a grant to reduce the work force or displace
    10     workers of a private company prior to the commencement of a
    11     training program except because the introduction of new
    12     manufacturing techniques, technology and modernization may
    13     lead to short-term reductions in a private company's work
    14     force. The secretary may waive this grant limitation if the
    15     long-term economic benefits to be gained by the private
    16     company significantly exceed the short-term detriment to its
    17     work force.
    18         (3)  Use a grant to violate any conditions of an existing
    19     collective bargaining agreement.
    20         (4)  Use a grant for point-of-sale retail job training.
    21  Section 2907.  Partnerships.
    22     If the department determines that a training program is more
    23  effectively delivered through a partnership, the department may
    24  enter into partnership agreements with one or more local
    25  education agencies or other training providers to provide the
    26  training program. The training programs shall consist of basic
    27  and entry-level skills, technology skill training, training
    28  related to job retention or other specified training assistance.
    29  Under a partnership arrangement, the department may limit the
    30  number and category of applicants which may submit applications
    20020S1370B2174                 - 17 -

     1  for assistance and may establish minimal standards and
     2  requirements for project eligibility. These requirements may be
     3  separate and distinct from the requirements established under
     4  this chapter except that the provision of section 2906 shall
     5  apply to all training programs funded under this chapter.
     6  Section 2908.  Compliance with statutes and collective
     7                 bargaining agreements.
     8     The department shall require each person receiving a grant
     9  under this chapter to comply with applicable Federal and State
    10  statutes governing employment discrimination, minority
    11  recruitment, minimum or prevailing wages, work site safety and
    12  procurement practices. The department shall require each private
    13  company receiving a grant ASSISTANCE under this chapter to        <--
    14  certify that its training program does not abridge any
    15  contractual agreement between the private company and the
    16  collective bargaining representative of its employees.
    17  Section 2909.  Penalties and investigations.
    18     (a)  Private company.--Unless the department determines that
    19  a private company's failure is due to circumstances outside the
    20  control of the private company, the private company shall be
    21  liable to repay all or part of the amount of a grant awarded      <--
    22  UTILIZED under this chapter if the private company does any of    <--
    23  the following:
    24         (1)  Fails to create the number of jobs specified in its
    25     agreement with or commitment to the department.
    26         (2)  Fails to make the amount of capital investment
    27     specified in the application to the department.
    28         (3)  Fails to substantially carry out the training
    29     program approved by the department.
    30     (b)  Applicants.--An applicant or subcontractor that fails to
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     1  provide for or to perform a training program approved by the
     2  department may be required to repay to the department any funds
     3  it received under a grant awarded by the department.
     4     (c)  Investigation.--Upon receiving any complaint from a
     5  private company, greenhouse, labor organization or trainee as to
     6  the inadequacy of training received, the department may initiate
     7  an investigation and take appropriate action, including the
     8  recovery of grant funds expended.
     9     Section 5.  Section 5105 of the act is amended to read:
    10  Section 5105.  Power and authority of the Pennsylvania Economic
    11                 Development Financing Authority.
    12     In addition to the powers set forth in section 6.3 of the act
    13  of August 23, 1967 (P.L.251, No.102), known as the Economic
    14  Development Financing Law, the Pennsylvania Economic Development
    15  Financing Authority established under that act shall have the
    16  power and is hereby authorized to issue its limited obligation
    17  revenue bonds and other types of financing, as in the judgment
    18  of the financing authority shall be necessary, to provide
    19  sufficient funds for any activity the department or the
    20  Pennsylvania Industrial Development Authority is permitted to
    21  take with respect to the loan portfolios subject to their
    22  respective administrative authority [as set forth in section
    23  1302]. Bonds authorized to be issued under this section shall
    24  not be a debt or liability of the Commonwealth and shall not
    25  create or constitute any indebtedness, liability or obligation
    26  of the Commonwealth except to the extent the bonds are secured
    27  by the pledge of loan portfolios. Bonds authorized to be issued
    28  under this section shall be payable solely from the revenues or
    29  funds pledged or available for their repayment.
    30     Section 6.  The act of December 20, 1985 (P.L.492, No.116),
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     1  known as the Customized Job Training Act, is repealed.
     2     Section 7.  The addition of Chapter 29 of the act shall be
     3  deemed a continuation of the program authorized by the former
     4  act of December 20, 1985 (P.L.492, No.116), known as the
     5  Customized Job Training Act, and, except where in conflict with
     6  the provisions of this act, the regulations promulgated under
     7  that former act shall remain in force and effect until they are
     8  amended or repealed in accordance with law.
     9     Section 8.  This act shall take effect immediately.














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