PRINTER'S NO. 2179
No. 1608 Session of 1990
INTRODUCED BY MELLOW, MUSTO, STAPLETON, LINCOLN, FUMO, O'PAKE,
DAWIDA, PORTERFIELD, STOUT, SCANLON, BELAN, STEWART, FATTAH,
JONES, BAKER, LEMMOND AND GREENLEAF, MAY 7, 1990
REFERRED TO APPROPRIATIONS, MAY 7, 1990
AN ACT
1 Appropriating money from the Sunny Day Fund to the Department of
2 Commerce for various projects throughout this Commonwealth
3 for fiscal year 1990-1991.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. The sums set forth in this act, or as much
7 thereof as may be necessary, are hereby specifically
8 appropriated from the Sunny Day Fund to the Department of
9 Commerce for the fiscal year July 1, 1990, to June 30, 1991, for
10 projects listed to enhance economic development and the creation
11 of jobs in this Commonwealth in accordance with the provisions
12 of Chapter 1 of the act of July 1, 1985 (P.L.120, No.32), known
13 as the Sunny Day Fund Act.
14 Section 2. The following amounts are appropriated to the
15 Department of Commerce to induce companies to locate large
16 industrial, manufacturing or research and development
17 enterprises within this Commonwealth:
18 (1) For the purpose of making a loan to
1 Centocor, Inc., to renovate and expand its
2 pharmaceutical manufacturing facility in Malvern,
3 Chester County. It is estimated that this project
4 will create 1,000 new jobs within three years of
5 operation. $8,500,000
6 (2) For the purpose of making a loan to
7 Children's Hospital of Philadelphia, to establish
8 a research and development center focusing on
9 pediatric medicine, molecular biology, cell
10 biology, cancer, neurology, immunobiology and
11 hematology, among others, and state-of-the-art
12 health care specialties in children's health. It
13 is estimated that this project will create 600 new
14 jobs within three years of operation. 9,000,000
15 (3) For the purpose of making a loan to
16 Enzymatics, Inc., to purchase machinery and
17 equipment for its manufacturing facility located
18 in Montgomery County. It is estimated that this
19 project will create 332 new jobs within three
20 years of operation. 3,000,000
21 (4) For the purpose of making a loan to
22 Ambridge Marine, Inc., to establish a
23 manufacturing facility in Ambridge Borough, Beaver
24 County. It is estimated that this project will
25 create 350 new jobs within three years of
26 operation. 2,500,000
27 (5) For the purpose of making a loan to Sony
28 Corporation of America, to establish a
29 manufacturing facility in Westmoreland County. It
30 is estimated that the project will create 1,000
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1 new jobs within three years of operation. 10,000,000
2 (6) For the purpose of making a loan to the
3 May Department Stores Company, to establish a
4 regional distribution facility in Wilkes-Barre,
5 Luzerne County. It is estimated that the project
6 will create 350 new jobs within three years of
7 operation. 5,000,000
8 Section 3. It is the intent of the General Assembly that the
9 appropriations in section 2 shall be loaned at an annual
10 interest rate that in no case shall be less than the
11 Pennsylvania Industrial Development Authority's rate for the
12 area in which the project is located and for a term that shall
13 be no greater than the term for an equivalent Pennsylvania
14 Industrial Development Authority project. Private companies
15 which receive Sunny Day Fund assistance but fail to make the
16 investment in the enterprise development as specified in section
17 2 shall be liable for the repayment of all Sunny Day Fund
18 moneys, including any accrued interest thereon and any penalties
19 as provided in the loan documents or as may be set by the
20 Secretary of Commerce. Private companies which receive Sunny Day
21 Fund assistance but fail to create the number of jobs specified
22 in the approved loan or other agreements with the Commonwealth
23 shall be liable for a penalty equal to an increase in the
24 interest charged to 2% greater than the current prime interest
25 rate for the remainder of the loan, unless the penalty is waived
26 by the Secretary of Commerce because the failure is due to
27 circumstances outside the control of the private company. The
28 prime interest rate shall be the highest rate known or declared
29 to be prime by those banking institutions located within this
30 Commonwealth with assets in excess of $3,000,000,000 as of the
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1 date the penalty is assessed. The Secretary of Commerce shall
2 consult with the chairmen of the Appropriations Committees of
3 the Senate and the House of Representatives prior to the
4 establishment of waiver of penalties.
5 Section 4. For a period equal to the term of assistance
6 provided each project approved under this act, the Department of
7 Commerce shall provide a written report on the status of each
8 project to the Secretary of the Senate and the Chief Clerk of
9 the House of Representatives by June 30 of each year. This
10 report shall contain, at a minimum, information pertaining to
11 the specific use of the Sunny Day Fund money, the interest rate
12 and term of the Sunny Day Fund loan, the amount of principal
13 outstanding and interest due on the loan and the number of jobs
14 created by the project. All recipients of funds under this act
15 shall be required to provide any and all information required by
16 the Department of Commerce for the purpose of this act.
17 Section 5. No funds under this act shall be awarded by the
18 Department of Commerce after June 30, 1991. Any funds from this
19 appropriation remaining unexpended or unencumbered on June 30,
20 1992, shall automatically lapse into the Sunny Day Fund.
21 Section 6. This act shall take effect immediately.
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