FINANCIALLY DISADVANTAGED MUNICIPALITIES MATCHING ASSISTANCE ACT — 1986 Pa. Act 110 (historical enacted text)

Historical Act text

PRIOR PRINTER'S NOS. 2002, 2225, 2297 PRINTER'S NO. 2318
Report of the Committee of Conference
To the Members of the Senate and House of Representatives:
We, the undersigned, Committee of Conference on the part of
the Senate and House of Representatives for the purpose of
considering Senate Bill No. 1463, entitled:
"An act providing for the establishment of a fund, to be
administered by the Department of Community Affairs, to reduce
local matching requirements in economic and community
development programs for financially disadvantaged
municipalities; and providing a procedure for the operation of
the fund,"
respectfully submit the following bill as our report:
TIM SHAFFER
DAVID J. BRIGHTBILL
MARK S. SINGEL
(Committee on the part of the Senate.)
JAMES J. MANDERINO
MAX PIEVSKY
WILLIAM TELEK
(Committee on the part of the House of Representatives.)
AN ACT
1 Providing for the establishment of a fund, to be administered by
2 the Department of Community Affairs, to reduce local matching
3 requirements in economic and community development programs
4 for financially disadvantaged municipalities; and providing a
5 procedure for the operation of the fund.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Financially
10 Disadvantaged Municipalities Matching Assistance Act.
11 Section 2. Purpose and legislative intent.
12 Due to plant closings, declining property values, and
13 population losses, some municipalities in this Commonwealth have
14 experienced shrinking tax revenues that make it difficult for
15 them to continue essential government services for their
16 citizens. While numerous economic and community development
17 programs exist to assist municipal governments and to promote
18 community and economic development that will ultimately provide
19 new tax revenues, many of these programs require the community
20 to provide matching funds, or a local share, in order to receive
21 aid. It is the intent of the General Assembly that financially
22 disadvantaged municipalities which are unable to fully meet
23 existing statutory or regulatory requirements for matching funds
24 or local shares not be precluded from consideration in economic
25 and community development programs.
26 Section 3. Definitions.
27 The following words and phrases when used in this act shall
28 have the meanings given to them in this section unless the
29 context clearly indicates otherwise:
30 "Department." The Department of Community Affairs of the
1 Commonwealth.
2 "Economic and community development program." A State or
3 Federal program designated by the secretary which assists a
4 municipality in the development of its public facilities,
5 housing, sewers, water supplies and other components of its
6 infrastructure; in the redevelopment of deteriorated or blighted
7 areas; or in the creation of private sector jobs in the
8 community, and which requires a portion of the costs of projects
9 funded to be contributed by municipalities.
10 "Financially disadvantaged municipalities." Those
11 municipalities designated as distressed under the act of July 2,
12 1984 (P.L.520, No.105), known as the Business Infrastructure
13 Development Act, and which meet additional criteria promulgated
14 by the secretary which indicate potential difficulty in meeting
15 local matching requirements.
16 "Fund." The Financially Disadvantaged Municipalities
17 Matching Assistance Fund.
18 "Local matching requirement." That portion of the costs of a
19 project that is eligible to receive a grant from a community and
20 economic development program which is required by law,
21 regulation or guideline to be contributed by a municipality.
22 "Municipality." Any city, borough, incorporated town or
23 township, including any municipality operation under the
24 provisions of the act of July 15, 1957 (P.L.901, No.399), known
25 as the Optional Third Class City Charter Law, and the act of
26 April 13, 1972 (P.L.184, No.62), known as the Home Rule Charter
27 and Optional Plans Law.
28 "Secretary." The Secretary of Community Affairs of the
29 Commonwealth.
30 Section 4. Establishment of fund.
19860S1463B2318 - 2 -
1 There is hereby established a Financially Disadvantaged
2 Municipalities Matching Assistance Fund which shall constitute a
3 restricted receipt account within the General Fund to be
4 administered by the department. The secretary may make grants
5 from the fund for projects in financially disadvantaged
6 municipalities in order to reduce local matching requirements
7 and shall not use funds from this account for any other purpose.
8 Section 5. Powers and duties of secretary.
9 The secretary shall have the following powers and duties:
10 (1) Specify the economic and community development
11 programs which have local matching requirements that may be
12 reduced using grants from the fund.
13 (2) Specify criteria to be used in determining whether a
14 municipality is a financially disadvantaged community.
15 (3) Specify application forms and procedures by which
16 financially disadvantaged municipalities may apply for a
17 grant from the fund.
18 (4) Make grants from the fund for specific projects in
19 financially disadvantaged municipalities where the secretary
20 determines that the municipality is unable to fully meet the
21 local matching requirement for the project in an eligible
22 economic and community development program which would
23 substantially benefit the citizens of the municipality and
24 lead to a strengthening of the local tax base.
25 (5) Provide technical assistance to financially
26 disadvantaged municipalities to help them make the maximum
27 use of existing economic and community development programs.
28 (6) Promulgate rules, regulations, guidelines and
29 procedures and exercise such other powers as may be necessary
30 for the effective implementation of this act.
19860S1463B2318 - 3 -
1 Section 6. Limitations.
2 No grant shall be made which exceeds 80% of the local
3 matching requirement for an individual project. No one
4 municipality shall be eligible to receive grants totaling more
5 than 10% of the moneys available in the fund in any one year.
6 Funds granted must be used for the specific project for which
7 they were awarded. Moneys awarded from the fund shall not be
8 distributed until the award from the economic and community
9 development program for the project is final.
10 Section 7. Exemption from other requirements.
11 Notwithstanding the provisions of any other statute or
12 regulation to the contrary, a grant from the fund shall be
13 considered as a financial contribution from the municipality
14 receiving the grant in determining whether the municipality has
15 met the local matching requirements for a project in an eligible
16 economic or community development program.
17 Section 8. Reporting.
18 On or before the October 1 following the enactment of this
19 act and in each succeeding year, the department shall provide a
20 report to the Chief Clerk of the House of Representatives and
21 the Secretary of the Senate for the preceding State fiscal year
22 and current fiscal year. The report shall contain, at a minimum,
23 the following information:
24 (1) A list of the approved grants, including
25 municipality name, State program for which the assistance was
26 granted and amount of the grants for the preceding fiscal
27 year.
28 (2) A list of grants not approved in the preceding
29 fiscal year.
30 (3) A list of eligible municipalities in the current and
19860S1463B2318 - 4 -
1 preceding fiscal year.
2 (4) A list of municipalities receiving assistance other
3 than grants and the extent of such assistance in the
4 preceding fiscal year.
5 (5) A list of the programs for which a grant can be made
6 in the current fiscal year.
7 Section 9. Expiration date.
8 This act shall expire June 30, 1989, or when the fund is
9 exhausted, unless extended by statute.
10 Section 10. Effective date.
11 This act shall take effect July 1, 1986.
C19L72RZ/19860S1463B2318 - 5 -