PRINTER'S NO. 2099
No. 1563 Session of 1990
INTRODUCED BY PETERSON, JUBELIRER, STOUT, SHAFFER, BRIGHTBILL,
MADIGAN, SHUMAKER, HELFRICK, WILT AND PORTERFIELD,
APRIL 6, 1990
REFERRED TO COMMUNITY AND ECONOMIC DEVELOPMENT, APRIL 6, 1990
AN ACT
1 Amending the act of May 31, 1956 (1955 P.L.1911, No.635),
2 entitled "An act to promote the welfare of the people of the
3 Commonwealth by rendering financial assistance to industrial
4 development agencies engaged in promoting the development and
5 expansion of business, industry and commerce in the
6 respective counties of the Commonwealth; prescribing
7 procedures for the rendering of such assistance and
8 empowering the Department of Commerce of the Commonwealth to
9 administer the same; and making an appropriation," providing
10 for matching economic development grants; and making an
11 appropriation.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 2 of the act of May 31, 1956 (1955
15 P.L.1911, No.635), known as the Industrial Development
16 Assistance Law, is amended to read:
17 Section 2. Declaration of Policy.--It is hereby determined
18 and declared as a matter of legislative finding:
19 (a) That the health, safety[, morals] and general welfare of
20 the people of the Commonwealth are directly dependent upon the
21 continual encouragement, development, growth and expansion of
22 business, industry and commerce within the Commonwealth.
1 (b) That unemployment[,] and the spread of indigency[, the
2 heavy burden of public assistance and unemployment compensation]
3 can best be avoided by the promotion, [attraction, stimulation,]
4 development and expansion of business, industry and commerce in
5 the Commonwealth.
6 Therefore, it is declared to be the policy of the
7 Commonwealth of Pennsylvania to promote the health, safety[,
8 morals] and general welfare of its inhabitants through its
9 Department of Commerce by means of grants to be made to
10 industrial development agencies which are or may be engaged in
11 economic development activities or in planning and promoting
12 programs designed to stimulate the establishment of new or
13 enlarged industrial, commercial and manufacturing enterprises
14 within the counties served by such agencies.
15 Section 2. Section 3 of the act is amended by adding
16 definitions to read:
17 Section 3. Definitions.--The term "department" shall mean
18 the Department of Commerce of the Commonwealth.
19 The term "economic development activities" shall mean day-to-
20 day activities of the agency designed to encourage and create
21 opportunities for economic growth and expansion, including but
22 not limited to, out-reach, promotion, business visitation, staff
23 salaries and creation of new programs, but it shall not include
24 the actual financing of loans or grants or the retirement of
25 existing loans.
26 * * *
27 Section 3. The act is amended by adding a section to read:
28 Section 5.1. Matching Economic Development Grant Program.--
29 (a) The department is hereby authorized to make matching
30 economic development grants to the designated industrial
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1 development agency of each county of the fourth, fifth, sixth,
2 seventh or eighth class, for economic development activities.
3 (b) The applicant shall be the duly designated industrial
4 development agency:
5 (1) in a county of the fourth, fifth, sixth, seventh or
6 eighth class; and
7 (2) in a county with an average unemployment rate for the
8 previous 12-month period of not less than one point above the
9 State unemployment rate for the same 12-month period.
10 (c) The grant shall not exceed fifty thousand dollars
11 ($50,000). The local match shall be:
12 (1) One hundred per centum of the grant amount for counties
13 of the fourth, fifth or sixth class.
14 (2) Fifty per centum of the grant amount for counties of the
15 seventh or eighth class.
16 (d) (1) The designated industrial development agency shall
17 make an annual application to the department for such grant. The
18 application shall set forth the economic development activities
19 proposed to be undertaken, such as outreach, promotion, business
20 visitation, research, staff salaries, creation of new activities
21 programs or other day-to-day activities. The application shall
22 further state, with evidence satisfactory to the department, the
23 amounts of funds held by or committed or subscribed to the
24 designated industrial development agency for application to the
25 purposes therein described and the amount of the grant for which
26 application is made.
27 (2) If, after review of the application, the department is
28 satisfied that the program of the designated industrial
29 development agency is in accord with the purposes and
30 requirements of this section, it shall authorize the making of a
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1 matching grant to such industrial development agency.
2 (e) In the event the county's unemployment rate subsequently
3 becomes less than one point above the State unemployment rate
4 average, the grant shall be phased out over a three-year period
5 provided an application for such a phase-out is submitted
6 detailing the grant recipient's activities and accomplishments.
7 (f) The grant recipient shall make an annual report to the
8 department concerning the utilization of the matching grant,
9 specifically including:
10 (1) the amount of the grant; and
11 (2) the breakdown of expenditures from the grant for each
12 economic development activity.
13 In the event a grant recipient fails to make such a report, its
14 eligibility for the matching grant under this section shall
15 cease.
16 Section 4. Sections 6 and 8 of the act are amended to read:
17 Section 6. Payment of Grants to Industrial Development
18 Agencies.--Upon approval of each application and the making of a
19 grant by the department in accordance therewith, the department
20 shall give notice to the particular industrial development
21 agency of such approval and grant, and shall direct the
22 industrial development agency to proceed with its proposed
23 [promotional] program as described in its application and to use
24 [therefor] funds allocated by the industrial development agency
25 for such purpose. Upon the furnishing of satisfactory evidence
26 to the department, on [a quarterly] an annual basis, that the
27 particular industrial development agency has so proceeded, the
28 grant allocated to such industrial development agency shall be
29 paid over on such basis to the industrial development agency by
30 the department.
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1 Section 8. Cooperation with Other Agencies.--The [Department
2 of Commerce] department is directed to administer [this
3 industrial development assistance program] the programs as
4 provided in this act with such flexibility as to permit full
5 cooperation between the State and Federal governments, or any
6 subdivision, agency or instrumentality, corporate or otherwise,
7 of either of them, so as to bring about as effective and
8 economical an industrial development or economic development
9 program as possible.
10 Section 5. The sum of $1,000,000, or as much thereof as may
11 be necessary, is hereby appropriated to the Department of
12 Commerce to be used for matching economic grants as provided by
13 this act. The appropriation shall be continuing and shall not
14 lapse.
15 Section 6. This act shall take effect in 60 days.
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