PRINTER'S NO. 797
No. 712 Session of 2007
INTRODUCED BY YUDICHAK, DePASQUALE, KOTIK, CARROLL, ARGALL,
BOYD, BUXTON, CALTAGIRONE, CAPPELLI, CREIGHTON, CURRY,
EVERETT, FAIRCHILD, FRANKEL, GIBBONS, GOODMAN, GRUCELA,
HENNESSEY, W. KELLER, LEVDANSKY, MACKERETH, MANN, McILHATTAN,
MUNDY, MYERS, PETRARCA, PETRONE, RAYMOND, RUBLEY, SANTONI,
SAYLOR, McILVAINE SMITH, SOLOBAY, WALKO, WHEATLEY,
YOUNGBLOOD, FREEMAN AND GRELL, MARCH 9, 2007
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 9, 2007
AN ACT
1 Establishing the Regional Efficiency Development Incentive
2 Program; providing for powers and duties of the Department of
3 Community and Economic Development; and establishing the
4 Regional Efficiency Development Incentive Fund.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Regional
9 Efficiency Development Incentive Act.
10 Section 2. Declaration of policy.
11 The General Assembly finds and declares as follows:
12 (1) One of the most effective ways to reduce property
13 taxes is through the regionalization, consolidation or
14 sharing of services by political subdivisions.
15 (2) Before decisions are made by local officials
16 concerning which services to regionalize or share and with
1 which partners to enter into shared services agreements,
2 regional service or consolidation opportunities need to be
3 studied and evaluated.
4 (3) It is a valid public purpose to establish a program
5 to provide State aid in the form of loans and grants to
6 political subdivisions to assist them in making decisions
7 concerning the most efficient ways to regionalize or share
8 various services and to provide funding for one-time costs
9 associated with reaching shared services, regional service or
10 consolidation agreements for the benefit of taxpayers.
11 Section 3. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Department." The Department of Community and Economic
16 Development of the Commonwealth.
17 "Political subdivision." Any county, city, borough,
18 incorporated town, township, school district, vocational school
19 district and county institution district.
20 "Regional Efficiency Development Incentive Program" or "REDI
21 Program." The program established under section 4.
22 "Regional service agreement." An agreement entered into by a
23 political subdivision in accordance with 53 Pa.C.S. Pt. III
24 Subpt. D (relating to area government and intergovernmental
25 cooperation) or any other agreement between political
26 subdivisions that is permitted by law.
27 "Secretary." The Secretary of Community and Economic
28 Development of the Commonwealth.
29 Section 4. Regional Efficiency Development Incentive Program.
30 (a) Establishment.--The Regional Efficiency Development
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1 Incentive Program is established in the department.
2 (b) Eligibility.--A political subdivision that plans to
3 study or implement a regional service agreement may apply to the
4 department for grants or loans to study regional service or
5 consolidation opportunities and to fund one-time start-up costs
6 of regional or consolidated services.
7 (c) Consultation.--The secretary shall consult with the
8 Secretary of Education with regard to school districts and
9 vocational school districts in the administration of the REDI
10 Program.
11 (d) Application guidelines.--The department shall develop
12 and provide guidelines and procedures for the submission of REDI
13 Program grant and loan applications.
14 (e) Funding for studies.--In providing funding for regional
15 service agreement studies, the department:
16 (1) May require local matching funds, as determined by
17 the department, for a study if the department finds that the
18 political subdivision has the financial resources to provide
19 matching funds.
20 (2) May not require local matching funds for
21 consolidation studies that are permitted by law.
22 (f) Funding for start-up costs.--The following shall apply:
23 (1) A political subdivision may apply for financial
24 assistance for the one-time start-up costs necessary to
25 implement a regional service agreement. Costs that may be
26 financed through the issuance of debt or capital lease
27 agreements shall be excluded from this program.
28 (2) The department may set limits on aid awards and
29 negotiate the amount, payment schedule and other terms of the
30 grant or loan agreements to ensure that the implementation of
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1 a regional service agreement is cost effective and in the
2 public interest.
3 (g) Technical support.--The department may provide technical
4 support to assist political subdivisions in applying for grants
5 or loans for studying regional service agreements.
6 Section 5. Regional Efficiency Development Incentive Fund.
7 The Regional Efficiency Development Incentive Fund is
8 established within the State Treasury as a nonlapsing revolving
9 account which shall receive moneys as may be credited to it, the
10 repayment of loans made from the fund, and any other moneys as
11 may be appropriated to the fund from time to time. Moneys in the
12 fund are hereby appropriated on a continuing basis to the
13 department for the purposes of this act.
14 Section 40. Regulations.
15 The department shall promulgate rules and regulations
16 necessary to effectuate the purposes of the REDI Program.
17 Section 41. Effective date.
18 This act shall take effect in 60 days.
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