PRINTER'S NO. 2591
No. 1826 Session of 1990
INTRODUCED BY BODACK, SCANLON, LaVALLE, FISHER AND SHAFFER, NOVEMBER 13, 1990
REFERRED TO APPROPRIATIONS, NOVEMBER 13, 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 this fiscal year July 1, 1990, to June 30, 1991, 10 for the projects listed to enhance economic development and the 11 creation of jobs in this Commonwealth in accordance with the 12 provisions of Chapter 1 of the act of July 1, 1985 (P.L.120, 13 No.32), known 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 Koppel Steel Corporation for machinery and 2 equipment for the Koppel Steel Works and 3 Ambridge Rolling Mill facilities formerly 4 operated by Babcock & Wilcox, in Koppel and 5 Ambridge, Beaver County. It is estimated that 6 this project will create a total of 650 new 7 jobs at the two facilities within three years 8 of operation................................... $ 4,000,000 9 (2) For the purpose of making a loan for 10 construction of or for leasehold improvements 11 to a facility to be occupied by Consolidated 12 Rail Corporation as a customer service center 13 in Allegheny County. It is estimated that 14 within three years of operation this project 15 will create more than 800 jobs of which 400 16 will be new jobs............................... $ 2,500,000 17 Section 3. It is the intent of the General Assembly that the 18 appropriations in section 2 shall be loaned at an annual 19 interest rate that in no case shall be less than the 20 Pennsylvania Industrial Development Authority's rate for the 21 area in which the project is located and for a term that shall 22 be no greater than the term for an equivalent Pennsylvania 23 Industrial Development Authority project. Private companies 24 which receive Sunny Day Fund assistance but fail to make the 25 investment in the enterprise development as specified in section 26 2 shall be liable for the repayment of all Sunny Day Fund 27 moneys, including any accrued interest thereon and any penalties 28 as provided in the loan documents or as may be set by the 29 Secretary of Commerce. Private companies which receive Sunny Day 30 Fund assistance but fail to create the number of jobs specified 19900S1826B2591 - 2 -
1 in the approved loan or other agreements with the Commonwealth 2 shall be liable for a penalty equal to an increase in the 3 interest charged to 2% greater than the current prime interest 4 rate for the remainder of the loan, unless the penalty is waived 5 by the Secretary of Commerce because the failure is due to 6 circumstances outside the control of the private company. The 7 prime interest rate shall be the highest rate known or declared 8 to be prime by those banking institutions located within this 9 Commonwealth with assets in excess of $3,000,000,000 as of the 10 date the penalty is assessed. The Secretary of Commerce shall 11 consult with the chairmen of the Appropriations Committee of the 12 Senate and the Appropriations Committee of the House of 13 Representatives prior to the establishment of waiver of 14 penalties. 15 Section 4. For a period equal to the term of assistance 16 provided each project approved under this act, the Department of 17 Commerce shall provide a written report on the status of each 18 project to the Secretary of the Senate and the Chief Clerk of 19 the House of Representatives by June 30 of each year. This 20 report shall contain, at a minimum, information pertaining to 21 the specific use of the Sunny Day Fund money, the interest rate 22 and term of the Sunny Day Fund loan, the amount of principal 23 outstanding and interest due on the loan, and the number of jobs 24 created by the project. All recipients of funds under this act 25 shall be required to provide any and all information required by 26 the department of commerce for the purpose of this act. 27 Section 5. No funds under this act shall be awarded by the 28 Department of Commerce after June 30, 1991. Any funds from this 29 appropriation remaining unexpended or unencumbered on June 30, 30 1992, shall automatically lapse into the Sunny Day Fund. 19900S1826B2591 - 3 -
1 Section 6. This act shall take effect immediately. K8L84JRW/19900S1826B2591 - 4 -