PRINTER'S NO. 2209
No. 1744 Session of 2001
INTRODUCED BY D. EVANS, KENNEY, PETRONE, BELARDI, BELFANTI,
BROWNE, BUTKOVITZ, BUXTON, CAPPELLI, CASORIO, CAWLEY, COSTA,
DERMODY, DeWEESE, EACHUS, FRANKEL, FREEMAN, GRUCELA, JAMES,
JOSEPHS, KIRKLAND, LAUGHLIN, LEVDANSKY, MANN, MELIO,
READSHAW, ROBINSON, ROEBUCK, SAMUELSON, SANTONI, SCRIMENTI,
SOLOBAY, STABACK, STEELMAN, STURLA, THOMAS, TRAVAGLIO, TRICH,
WALKO, WOJNAROSKI AND YOUNGBLOOD, JUNE 13, 2001
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JUNE 13, 2001
AN ACT
1 To provide for the enhancement of redevelopment and economic
2 development of urban municipalities and the improvement and
3 maintenance of county assets in this Commonwealth.
4 TABLE OF CONTENTS
5 Chapter 1. General Provisions
6 Section 101. Short title.
7 Section 102. Declaration of policy.
8 Section 103. Definitions.
9 Chapter 3. County Asset Investment Program
10 Section 301. Establishment of county asset investment program.
11 Section 302. County asset investment boards.
12 Section 303. Duties and powers of board.
13 Section 304. Duties and powers of governing body of county.
14 Section 305. Annual reports.
15 Section 306. Eligible usage for county-owned facilities.
16 Section 307. Grants.
1 Chapter 5. Urban Municipality Development Fund Program
2 Section 501. Establishment of urban municipality development
3 fund program.
4 Section 502. Management of fund.
5 Section 503. Annual report.
6 Section 504. General criteria for loan or grant funding.
7 Section 505. Eligible loan activities.
8 Section 506. Eligible grant activities.
9 Section 507. Administrative costs.
10 Chapter 7. Treasurer
11 Section 701. Allocation of State realty transfer tax revenues.
12 Chapter 9. Department of Community and Economic Development
13 Section 901. Guidelines.
14 Section 902. Notification.
15 Section 903. Assistance.
16 Section 904. Report.
17 Chapter 49. Miscellaneous Provisions
18 Section 4901. Effective date.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 CHAPTER 1
22 GENERAL PROVISIONS
23 Section 101. Short title.
24 This act shall be known and may be cited as the Pennsylvania
25 County and Urban Municipality Enhancement Act.
26 Section 102. Declaration of policy.
27 The General Assembly finds and declares as follows:
28 (1) One of the greatest tools for attracting and
29 retaining businesses and maintaining economic viability in
30 our communities is the availability of public and private
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1 assets that enhance the quality of life and livability of our
2 urban centers and counties. These include, but are not
3 limited to, civic centers, recreational facilities, parks,
4 libraries, sports facilities, museums, zoos, convention
5 centers and historical societies.
6 (2) County governments lack financial resources to
7 adequately maintain, improve and modernize civic,
8 recreational, library, sports, cultural and other countywide
9 assets whose continued availability is vital to economic
10 growth and whose development is necessary to compete globally
11 for tourism as well as the retention and attraction of
12 businesses and the subsequent investment in quality jobs.
13 Their availability also promotes the health, welfare,
14 education and quality of life of the citizens at large.
15 (3) While population has remained essentially static in
16 Pennsylvania, urban sprawl has increased. Most urban centers
17 experienced population loss while suburbs and rural areas
18 have grown dramatically, causing flight and deterioration
19 within certain portions of our urban centers and aggravating
20 sprawl and its negative consequences in the suburbs and rural
21 areas.
22 (4) The ability of urban centers to raise revenues
23 becomes more difficult as people move out of urban centers.
24 The burden of maintaining services is spread among fewer
25 taxpayers, causing tax rates to climb. It is therefore in the
26 public interest to reinvest within urban centers to bring
27 quality jobs and housing to areas which were previously
28 developed, thus curbing flight, increasing local tax revenues
29 while lowering tax rates and reducing sprawl and its negative
30 consequences in the outlying areas.
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1 Section 103. Definitions.
2 The following words and phrases when used in this act shall
3 have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
5 "County asset investment program." A program which may be
6 established pursuant to section 301 by the governing body of a
7 county or, in the case of a county of the first class, by the
8 city council of a first class urban municipality located in the
9 county.
10 "Department." The Department of Community and Economic
11 Development of the Commonwealth.
12 "Designated authority." A redevelopment authority or
13 industrial development authority designated by an urban
14 municipality to manage its urban municipality development fund
15 program pursuant to this act.
16 "Governing body of a county." A governing body of a county
17 or, in the case of counties of the first class, a city council
18 of a first class urban municipality located in the county.
19 "Industrial development authority." Any nonprofit
20 corporation, foundation or association which has been certified
21 as an industrial development agency by the Pennsylvania
22 Industrial Development Authority Board pursuant to the act of
23 May 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania
24 Industrial Development Authority Act.
25 "Keystone Recreation, Park and Conservation Fund." The
26 Keystone Recreation, Park and Conservation Fund established
27 under the act of July 2, 1993 (P.L.359, No.50), known as the
28 Keystone Recreation, Park and Conservation Fund Act.
29 "Library." Any free, public, nonsectarian library, whether
30 established and maintained by a municipality or by a private
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1 association, corporation or group, which serves the
2 informational, educational and recreational needs of all the
3 residents of the area for which its governing body is
4 responsible by providing free access, including free lending and
5 reference services, to an organized and currently useful
6 collection of printed items and other materials and to the
7 services of a staff trained to recognize and provide for these
8 needs.
9 "Population." The population based on the most recent,
10 official decennial census of the United States Bureau of the
11 Census.
12 "Redevelopment authority." Any redevelopment authority
13 created pursuant to the act of May 24, 1945 (P.L.991, No.385),
14 known as the Urban Redevelopment Law.
15 "Sponsoring urban municipality." An urban municipality which
16 has named a designated authority to manage its urban
17 municipality development fund.
18 "Treasurer." The State Treasurer of the Commonwealth.
19 "Urban municipality." Any of the following:
20 (1) A city of the first class, second class, second
21 class A or third class.
22 (2) A county seat.
23 (3) A borough having a population in excess of 10,000
24 based on the most recent, official Federal decennial census.
25 "Urban municipality development fund program." A program
26 which may be established pursuant to section 501 by an urban
27 municipality.
28 CHAPTER 3
29 COUNTY ASSET INVESTMENT PROGRAM
30 Section 301. Establishment of county asset investment program.
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1 A county may establish a county asset investment program if
2 the governing body of the county:
3 (1) In counties of the second class, if the county
4 belongs to a regional asset district pursuant to the act of
5 July 28, 1953 (P.L.723, No.230), known as the Second Class
6 County Code, and it transfers all funds received pursuant to
7 this chapter to the regional asset district by passage of a
8 resolution or ordinance, then it may elect to delegate the
9 responsibility for distribution of county asset investment
10 program funds to the regional asset district, provided the
11 regional asset district adheres to the provisions of this
12 act.
13 (2) In counties of all classes except of the second
14 class, creates a county asset investment program and a county
15 asset investment board by ordinance or resolution. The county
16 asset investment program shall distribute funds received
17 pursuant to this chapter in a manner consistent with this
18 chapter.
19 (3) Notifies with a signed letter and copy of the
20 resolution or ordinance both the treasurer and the department
21 of its intention to establish a program.
22 Section 302. County asset investment boards.
23 (a) Composition.--A county asset investment board shall
24 reflect the ethnic and racial diversity of the county, as much
25 as practicably feasible, and shall be composed in the following
26 manner:
27 (1) For counties of the first class, the city council
28 president and the mayor of a city of the first class shall
29 each appoint three individuals.
30 (2) For counties of the second class A and third through
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1 eighth class except for those with home rule charters, two
2 individuals appointed by each county commissioner and the
3 mayor of each urban municipality that is located in the
4 county.
5 (3) For counties of the second class A and third through
6 eighth class with home rule charters, one individual
7 appointed by each designated representative under a home rule
8 charter and the mayor of each urban municipality that is
9 located in the county.
10 (4) Three members appointed by a vote of a majority of
11 the members appointed pursuant to paragraph (1), (2) or (3)
12 from a list of nominees provided by economic and community
13 development organizations within or servicing the county.
14 (b) Terms.--The term of office of members of the board
15 appointed under paragraphs (1), (2) and (3) shall coincide with
16 the term of office of the appointing authority. The term of
17 office of members of the board appointed under paragraph (4)
18 shall be a term of two years. A person appointed to the board
19 when a vacancy occurs during the term of office of a member of
20 the board shall serve for the remainder of the term.
21 (c) Officers.--The members shall elect a chairman, vice
22 chairman, secretary and any other officer as they may determine.
23 Members may serve successive terms as officers of the board.
24 (d) Meetings.--The board shall meet as frequently as it
25 deems appropriate, but at least twice during the fiscal year of
26 the county or in cases of counties of the first class at least
27 twice during the fiscal year of a city of the first class
28 located in the county. A meeting of the board shall be called by
29 the chairman if a request for a meeting is submitted to the
30 chairman by at least two members of the board. A majority of the
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1 members appointed to the board shall constitute a quorum for the
2 purpose of conducting the business of the board. Meetings shall
3 be conducted under 65 Pa.C.S. Ch. 7 (relating to open meetings).
4 Section 303. Duties and powers of board.
5 The primary duty of each board shall be to make
6 recommendations to the governing body of its county,
7 prioritizing projects and applicants for funding under this
8 chapter. It may recommend dedication of the funds, or a portion
9 of the funds, for county-owned facilities provided those
10 facilities fulfill the criteria set forth in this chapter. A
11 board shall solicit requests for funding from eligible
12 applicants and shall provide for a process to initially evaluate
13 the applications. A board may hold public hearings and meetings
14 to receive input on spending priorities and it may recommend
15 specific usages or restrictions on grant moneys. It may
16 investigate and determine the feasibility of dedicating the
17 revenues to an issuance of bonds and make its findings known to
18 the governing body of its county.
19 Section 304. Duties and powers of governing body of county.
20 The governing body of each county that chooses to create a
21 county asset investment program shall make the final
22 determination on usage and expenditure of funds received from
23 the county asset investment program or from bond proceeds issued
24 with the funds or a portion of the funds, whether for county-
25 owned facilities or grants to eligible applicants, provided that
26 the determination is consistent with this act. A governing body
27 may supplement the funds with county tax revenues, Federal or
28 State grants and private funds. A governing body may pledge all
29 or any part of the revenues in connection with the issuance of
30 bonds, provided that the proceeds are used in a manner that is
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1 consistent with this chapter.
2 Section 305. Annual reports.
3 The governing body of any county participating in the county
4 asset investment program shall provide a written report annually
5 to the department, which shall include, but not be limited to, a
6 listing of revenues received from all sources, usage of funds,
7 total applications for funding and a listing of funded projects
8 with a project description, total amount awarded and total
9 project cost.
10 Section 306. Eligible usage for county-owned facilities.
11 Funds received pursuant to this chapter may be used for
12 capital development or improvements or for land acquisition,
13 equipment purchase or infrastructure improvements related to
14 recreational, civic, library, sports, educational or cultural
15 facilities owned by the county or, for counties of the first
16 class, a city of the first class located within the county.
17 Section 307. Grants.
18 Eligible applicants for grants may include libraries,
19 museums, zoos, convention centers, historical societies or
20 civic, recreational, sports or cultural facilities not owned by
21 the county, or a city of the first class located within the
22 county for counties of the first class, provided that the
23 facility serves the public at large.
24 CHAPTER 5
25 URBAN MUNICIPALITY DEVELOPMENT FUND PROGRAM
26 Section 501. Establishment of urban municipality development
27 fund program.
28 An urban municipality may establish an urban municipality
29 development fund program if it:
30 (1) creates an urban municipality development program
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1 and designates a redevelopment authority or industrial
2 development authority by resolution or ordinance to act as
3 its designated authority to manage the urban municipality
4 development fund; and
5 (2) notifies with a signed letter and copy of the
6 resolution or ordinance, both the treasurer and the
7 department of its intention to create a program.
8 Section 502. Management of fund.
9 A designated authority shall be accountable for the
10 expenditure of funds consistent with this chapter, exercise
11 proper due diligence and develop program guidelines for
12 administration of the funds. A designated authority shall keep a
13 sponsoring urban municipality's development funds separate from
14 any other funds, but this shall not prohibit a designated
15 authority from using these funds to leverage grants or loans
16 from other Federal or State programs, private moneys or to
17 provide matching funds to the sponsoring urban municipality's
18 fund from any other source.
19 Section 503. Annual report.
20 A designated authority shall submit a written report annually
21 to its sponsoring urban municipality and the department which
22 shall include, but not be limited to, a listing of revenues
23 received from all sources, total applications for funding and a
24 listing of funded projects with a project description, total
25 amount awarded and total project cost.
26 Section 504. General criteria for loan or grant funding.
27 The criteria for loan or grant funding shall be as follows:
28 (1) All projects must be within the jurisdictional
29 limits of the sponsoring urban municipality.
30 (2) Projects shall meet overall goals of improving
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1 livability of neighborhoods, developing the local economy by
2 attracting or retaining quality jobs and reusing abandoned
3 industrial sites or redeveloping blighted areas.
4 (3) Urban municipalities may supplement their urban
5 municipality development fund with local tax revenues.
6 Section 505. Eligible loan activities.
7 (a) Specific activities.--The purchase of land, buildings,
8 construction or rehabilitation, infrastructure development,
9 equipment purchase and related costs, when incurred in the
10 process of attracting and developing sites for manufacturing,
11 commercial, industrial, advanced technology, real estate
12 development, rental housing and for-sale housing, are activities
13 which shall be eligible for loans.
14 (b) Payment of revenue bonds.--A designated authority may,
15 in consultation with its sponsoring urban municipality, dedicate
16 the revenues from this chapter to the payment of revenue bonds,
17 provided the proceeds from the revenue bonds fulfill the purpose
18 of this chapter.
19 Section 506. Eligible grant activities.
20 Infrastructure improvements or construction to roads, sewer,
21 water or storm water drainage, removal of blighted or abandoned
22 residential homes or abandoned commercial or industrial
23 properties that have fallen into disuse, environmental cleanup
24 of vacant or abandoned industrial sites, land acquisition for
25 public use or for resale or the development of open-air
26 recreational facilities for public use are activities which
27 shall be eligible for grants.
28 Section 507. Administrative costs.
29 A designated authority may charge reasonable fees on loans or
30 use the interest or portion of the interest on loans to recover
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1 its administrative expenses.
2 CHAPTER 7
3 TREASURER
4 Section 701. Allocation of State realty transfer tax revenues.
5 Revenues collected from the tax imposed under section 1102-C
6 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
7 Reform Code of 1971, shall be allocated as follows:
8 (1) Forty-two and one-half percent shall be set aside
9 for county asset investment programs, which shall be
10 transferred by the treasurer on a monthly basis to each
11 participating county which has fulfilled the requirements of
12 section 301 in an amount equal to forty-two and one-half
13 percent of the revenues collected under the tax imposed under
14 section 1102-C of the Tax Reform Code of 1971 in the county.
15 (2) Forty-two and one-half percent shall be set aside
16 for the urban municipality development fund programs which
17 shall be transferred by the treasurer on a monthly basis to
18 each participating urban municipality which has fulfilled the
19 requirements of section 501 according to the following
20 formula:
21 The urban municipality's population shall be divided
22 by the total population of all urban municipalities
23 in the county and multiplied by an amount equal to
24 forty-two and one-half percent of the revenues
25 collected under the tax imposed under section 1102-C
26 of the Tax Reform Code of 1971 in the county.
27 (3) Any unencumbered balance in county asset investment
28 programs and urban municipality development fund programs at
29 the end of each month shall be transferred to the Keystone
30 Recreation, Park and Conservation Fund.
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1 CHAPTER 9
2 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
3 Section 901. Guidelines.
4 The department shall issue guidelines that are consistent
5 with and necessary to carry out the provisions of this act.
6 Section 902. Notification.
7 The department shall notify each urban municipality and
8 county of the opportunities afforded by this act.
9 Section 903. Assistance.
10 (a) Programs.--Upon request, the department shall assist any
11 county or urban municipality in establishing either program
12 under this act.
13 (b) Calculations.--The department shall provide assistance
14 to the treasurer in calculating any payments pursuant to Chapter
15 7.
16 Section 904. Report.
17 The department shall compile information submitted from the
18 annual reports required in sections 305 and 503 and annually
19 submit a report to the Appropriations Committee of the Senate,
20 the Appropriations Committee of the House of Representatives,
21 the chairman and minority chairman of the Appropriations
22 Committee of the Senate, the chairman and minority chairman of
23 the Appropriations Committee of the House of Representatives,
24 the Urban Affairs and Housing Committee of the Senate and the
25 Urban Affairs Committee of the House of Representatives
26 summarizing the implementation of the provisions of this act.
27 The first annual report shall be submitted no later than
28 December 31, 2003.
29 CHAPTER 49
30 MISCELLANEOUS PROVISIONS
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1 Section 4901. Effective date.
2 This act shall take effect as follows:
3 (1) Chapter 7 shall take effect July 1, 2002.
4 (2) This section shall take effect in 60 days.
5 (3) The remainder of this act shall take effect in 60
6 days.
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