Pennsylvania Act 1996-67 — JOB ENHANCEMENT ACT

Act text

AN ACT

To enhance job creation and economic development by providing for an annual financing strategy, for opportunity grants, for job creation tax credits, for small business assistance, for the Small Business Advocacy Council, for a family savings program, for industrial development assistance, for community development bank grants and loans and for tax-exempt bond allocation; conferring powers and duties on various administrative agencies and authorities; further providing for various funds; and making repeals. (Title amended Nov. 17, 1998, P.L.788, No.100)

Chapter 1. Preliminary Provisions

Section 101. Short title.

Section 102. Intent and purpose.

Section 103. Definitions.

Chapter 3. Annual Financing Strategy (Repealed)

Section 301. Annual financing strategy (Repealed).

Chapter 7. Opportunity Grant Program (Repealed)

Section 701. Establishment of program (Repealed).

Section 702. Guidelines (Repealed).

Section 703. Eligibility (Repealed).

Section 704. Uses (Repealed).

Section 705. Requirements (Repealed).

Section 706. Penalties (Repealed).

Chapter 9. Job Creation Tax Credit (Repealed)

Section 901. Definitions (Repealed).

Section 902. Eligibility (Repealed).

Section 903. Application process (Repealed).

Section 904. Tax credits (Repealed).

Section 905. Prohibitions (Repealed).

Section 906. Penalties (Repealed).

Chapter 13. Small Business First Program (Repealed)

Section 1301. Definitions (Repealed).

Section 1302. Small Business First Fund and Pollution

Prevention Assistance Account (Repealed).

Section 1303. Eligibility for and terms and conditions of

loans (Repealed).

Section 1304. Application and administration (Repealed).

Section 1305. Other programs (Repealed).

Section 1306. Annual financing strategy (Repealed).

Section 1307. Reporting and inspection (Repealed).

Section 1308. Capital Loan Fund (Repealed).

Section 1309. Air Quality Improvement Fund; Storage Tank Loan

Fund; and Recycling Incentive Development

Account (Repealed).

Section 1310. Eligibility provisions (Repealed).

Section 1311. Export Financing Loan Fund; loans and

applications; powers and duties (Repealed).

Chapter 17. Small Business Advocacy Council (Repealed)

Section 1701. Legislative intent (Repealed).

Section 1702. Definitions (Repealed).

Section 1703. Small Business Advocacy Council (Repealed).

Section 1704. Regulatory review (Repealed).

Chapter 21. Family Savings Account Program

Section 2101. Definitions.

Section 2102. Administration.

Section 2103. Guidelines.

Chapter 23. Industrial Development Assistance

Section 2301. Definitions.

Section 2302. Designation.

Section 2303. Grants.

Section 2304. Reporting and regulations.

Chapter 25. Community Development Bank Grant and Loan Program

Section 2501. Definitions.

Section 2502. Establishment.

Section 2503. Operation of Pennsylvania Community Development

Bank

Section 2504. Deposits.

Section 2505. Accreditation.

Section 2506. Grants.

Section 2507. Authority loans.

Section 2508. Community development loans.

Section 2509. Agreements.

Section 2510. Report.

Section 2511. Additional powers.

Chapter 27. Tax-Exempt Bond Allocation

Section 2701. Purpose.

Section 2702. Definitions.

Section 2703. Selection of projects.

Section 2704. Allocation.

Section 2705. Federal law change.

Section 2706. Powers and duties of department.

Chapter 29. Customized Job Training Program

Section 2901. Definitions.

Section 2902. Program.

Section 2903. Applications.

Section 2904. Review of applications.

Section 2905. Approval of applications and award of grants.

Section 2906. Limitations.

Section 2907. Partnerships.

Section 2908. Compliance with statutes and collective

bargaining agreements.

Section 2909. Penalties and investigations.

Chapter 30. Machinery and Equipment Loan Fund (Repealed)

Section 3001. Scope (Repealed).

Section 3002. Definitions (Repealed).

Section 3003. Machinery and Equipment Loan Fund (Repealed).

Section 3004. Eligibility for loans; terms and conditions

(Repealed).

Section 3005. Application and administration (Repealed).

Section 3006. Powers of secretary (Repealed).

Section 3007. Reporting and inspection (Repealed).

Section 3008. Nondiscrimination (Repealed).

Section 3009. Conflict of interest (Repealed).

Section 3010. Reports to the General Assembly (Repealed).

Chapter 31. Technology Work Experience Internship Program.

Section 3101. Definitions.

Section 3102. Technology Work Experience Internship Program.

Section 3103. Powers and duties of agency.

Section 3104. Responsibility of approved educational

institution.

Section 3105. Emerging technology company employer

responsibility.

Section 3106. Interns.

Section 3107. Compensation.

Section 3108. Annual report.

Chapter 51. Miscellaneous provisions.

Section 5101. Transfer of Sunny Day loans and commitments.

Section 5102. Transfer of Pennsylvania Capital Loan Fund,

accounts, assets and liabilities.

Section 5103. Transfer of Air Quality Improvement Fund, Storage,

Development Account.

Section 5104. Transitional provisions.

Section 5105. Power and authority of the Pennsylvania Economic

Development Financing Authority.

Section 5106. Public record exemption.

Section 5106.1. Family Savings Account Program/Tuition Account.

Section 5107. Repeals.

Section 5108. Effective date.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

CHAPTER 1

PRELIMINARY PROVISIONS

Section 101. Short title.

This act shall be known and may be cited as the Job Enhancement Act.

Section 102. Intent and purpose.

It is the intent of this act and its purpose shall be:

(1) To create a partnership of State government and private industry to provide resources to enhance business development in this Commonwealth.

(2) To attract major enterprise to this Commonwealth and to secure the expansion or preservation of existing industry within this Commonwealth.

(3) To provide a comprehensive strategy for the Commonwealth to respond to the need for job creation and economic development.

Section 103. Definitions.

The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Department." The Department of Community and Economic Development of the Commonwealth.

"Developer." Any person, partnership, corporation or other for-profit business entity or any nonprofit corporation that has as a purpose the promotion or construction of industrial development projects and that is engaged in the development of real estate for use by more than one company.

"Export service enterprise." A person, partnership, corporation or other for-profit business entity that renders more than half of its sales or services to customers outside of this Commonwealth.

"Financing programs." All of the following programs:

(1) The Pennsylvania Industrial Development Authority.

(2) Pennsylvania Economic Development Financing Authority.

(3) Pennsylvania Minority Business Development Authority Board.

(4) The Infrastructure Development Program.

(5) The Opportunity Grant Program.

(6) The Industrial Sites Reuse Program.

(7) The Customized Job Training Program.

(8) The Machinery and Equipment Loan Program.

(9) The Small Business First Program.

(10) Job Creation Tax Credit.

(10.1) The Community Development Bank Grant and Loan Program.

(11) Any other similar program operated by the department.

(Def. amended Nov. 17, 1998, P.L.788, No.100)

"Private matching funds." Any new private investment made by a company or developer in a facility or infrastructure improvement at the site of the enterprise as provided by the department in guidelines under section 702(a).

"Research and development enterprise." A person, partnership, corporation or other for-profit entity engaged in the discovery of new and the refinement of known substances, processes, products, theories and ideas.

"Secretary." The Secretary of Community and Economic Development of the Commonwealth.

CHAPTER 3

ANNUAL FINANCING STRATEGY

(Ch. 3 repealed Feb. 12, 2004, P.L.99, No.12)

Section 301. Annual financing strategy. (301 repealed Feb. 12, 2004, P.L.99, No.12)

CHAPTER 7

OPPORTUNITY GRANT PROGRAM

(Ch. 7 repealed Feb. 12, 2004, P.L.99, No.12)

Section 701. Establishment of program. (701 repealed Feb. 12, 2004, P.L.99, No.12)

Section 702. Guidelines. (702 repealed Feb. 12, 2004, P.L.99, No.12)

Section 703. Eligibility. (703 repealed Feb. 12, 2004, P.L.99, No.12)

Section 704. Uses. (704 repealed Feb. 12, 2004, P.L.99, No.12).

Section 705. Requirements. (705 repealed Feb. 12, 2004, P.L.99, No.12)

Section 706. Penalties. (706 repealed Feb. 12, 2004, P.L.99, No.12)

CHAPTER 9

JOB CREATION TAX CREDIT

(Ch. 9 repealed June 22, 2001, P.L.353, No.23)

Section 901. Definitions. (901 repealed June 22, 2001, P.L.353, No.23)

Section 902. Eligibility. (902 repealed June 22, 2001, P.L.353, No.23)

Section 903. Application process. (903 repealed June 22, 2001, P.L.353, No.23)

Section 904. Tax credits. (904 repealed June 22, 2001, P.L.353, No.23)

Section 905. Prohibitions. (905 repealed June 22, 2001, P.L.353, No.23)

Section 906. Penalties. (906 repealed June 22, 2001, P.L.353, No.23)

CHAPTER 13

SMALL BUSINESS FIRST PROGRAM

(Ch. 13 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1301. Definitions. (1301 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1302. Small Business First Fund and Pollution Prevention Assistance Account. (1302 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1303. Eligibility for and terms and conditions of loans. (1303 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1304. Application and administration. (1304 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1305. Other programs. (1305 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1306. Annual financing strategy. (1306 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1307. Reporting and inspection. (1307 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1308. Capital Loan Fund. (1308 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1309. Air Quality Improvement Fund; Storage Tank Loan Fund; and Recycling Incentive Development Account. (1309 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1310. Eligibility provisions. (1310 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1311. Export Financing Loan Fund; loans and applications; powers and duties. (1311 repealed Feb. 12, 2004, P.L.99, No.12)

CHAPTER 17

SMALL BUSINESS ADVOCACY COUNCIL

(Ch. 17 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1701. Legislative intent. (1701 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1702. Definitions. (1702 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1703. Small Business Advocacy Council. (1703 repealed Feb. 12, 2004, P.L.99, No.12)

Section 1704. Regulatory review. (1704 repealed Feb. 12, 2004, P.L.99, No.12)

CHAPTER 21

FAMILY SAVINGS ACCOUNT PROGRAM

(Ch. 21 added June 24, 1997, P.L.247, No.23)

Section 2101. Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Account." A family savings account that is opened and maintained by a saver enrolled in the program.

"Approved plan." A plan developed for an individual saver defining savings goals and program requirements, including the saver's anticipated use of both the savings and the match. The approved plan shall serve as the contract between the saver and the service provider and shall be for a contribution period of not less than 12 months nor more than 36 months. (Def. amended July 5, 2005, P.L.71, No.29)

"Department." The Department of Community and Economic Development of the Commonwealth.

"Education." A postsecondary program of instruction provided by a college, university, community college, area vocational-technical school, professional institution or specialized degree-granting college or school legally authorized to grant degrees. The term shall also include a job training or related educational program approved by the Department of Community and Economic Development. The term shall not include a school of theology or theological seminary.

"Eligible uses." Education, purchase of a home, participation in entrepreneurial activity, enrollment of a saver's child in day care to enable the saver to participate in job training, any work-related activity or educational program or other activity based on an approved plan.

"Entrepreneurial activity." Purchase of or investment in a for-profit venture in which the saver will be a principal.

"Financial institution." Any of the following:

(1) A Federal or State-chartered bank, bank and trust company, savings bank, savings and loan association, trust company or credit union.

(2) A financial entity which:

(i) is licensed or regulated by a Federal or Commonwealth agency; and

(ii) insures its deposits up to $100,000.

"Match." An amount equal to 50%, up to $500 per year, of the money deposited into the account by a saver during the contribution period of the saver's approved plan.

"Minimum savings amount." An amount established in the approved plan as the minimum amount to be deposited by a saver in order to be eligible for the match.

"Program." The Family Savings Account Program established pursuant to this chapter.

"Saver." An individual or family who resides in this Commonwealth and whose total annual income at the time of enrollment is not more than 200% of the Federal poverty standard or not more than 80% of area median income, whichever is greater, and who has applied for enrollment in the program. (Def. amended July 5, 2005, P.L.71, No.29)

"Service provider." A nonprofit institution that encourages and assists local community building and that is certified by the Department of Community and Economic Development for participation in the program.

(2101 amended June 22, 2000, P.L.310, No.29)

Section 2102. Administration.

(a) Certification of service providers.--The department shall certify service providers who shall enroll eligible savers into the program.

(b) Application process.--Eligible savers shall apply to a service provider to participate in the program. The service provider shall develop an approved plan with each enrolled saver which specifies a minimum savings amount and how much money the saver intends to contribute to the saver's family savings account on either a weekly, biweekly or monthly basis. The application and approved plan shall be on a form and shall meet such requirements as deemed appropriate by the department.

(c) Ownership.--Each enrolled saver shall open an account as defined under this chapter at a financial institution that is certified by the department as qualified to participate in the program for deposit of the saver's contributions. All moneys in that account, including interest earned thereon, shall belong to the individual saver.

(d) Grants.--

(1) The department shall make a grant to a service provider from which the service provider shall provide the match for approved plans. A service provider shall deposit all grant funds in a separate account at a financial institution until the funds are withdrawn to provide the required match for a saver or are returned to the Commonwealth. Grants to service providers shall be made from and limited to funds appropriated for this purpose.

(2) If a saver's approved plan is modified and the match is reduced or a saver drops out of the program within the fiscal year in which the grant was made to the service provider through the second succeeding fiscal year, the service provider may reassign the grant funds to other savers with approved plans within this time period. Any grant funds remaining unassigned at the end of the fiscal year in which the grant was made to the service provider through the second succeeding fiscal year must be returned to the Commonwealth as provided in paragraph (3). If a saver's approved plan is modified and the match is reduced or a saver drops out of the program after the fiscal year in which the grant was made to the service provider through the second succeeding fiscal year, the service provider must return the unused grant funds to the Commonwealth as provided in paragraph (3).

(3) Service providers shall return any funds due the Commonwealth pursuant to guidelines published by the department but no later than quarterly.

(4) A service provider shall be eligible for administrative and counseling costs in an amount determined by the department. No more than 9.5% of funds annually appropriated for this program may be used to reimburse service providers for eligible administrative and counseling costs of which no more than 5% may be used for administrative costs. The department may approve the use of interest earnings on grant funds held by service providers as a portion of a service provider's approved administrative and counseling costs. Eligible counseling costs shall include, but not be limited to, costs associated with interviewing potential savers, enrolling savers, monitoring a saver's progress toward fulfilling the terms of an approved plan and providing periodic money management and financial skills meetings for savers to foster the habit of continued saving. The department shall determine eligible administrative costs.

((d) amended July 5, 2005, P.L.71, No.29)

(e) Eligibility for match.--An enrolled saver with an approved plan and account monitored by a service provider must fulfill the requirements of the approved plan for a minimum of 12 months but not more than 36 months. The saver shall present satisfactory evidence to the service provider on a quarterly basis that the savings requirements are being met. ((e) amended July 5, 2005, P.L.71, No.29)

(f) Restrictions on withdrawal.--

(1) In order to obtain the match, the saver must present satisfactory evidence to the service provider that the amount being withdrawn from the saver's family savings account is being used for an eligible use. Withdrawals from a family savings account for an eligible use by a saver shall be made payable to the legal entity which provides the eligible use.

(2) The match shall be paid by the service provider to the legal entity which provides the eligible use. The match shall not be paid to the saver.

(3) A match which has not been paid for an eligible use within five years after the end of the contribution period shall be returned to the Commonwealth for deposit in the State Treasury.

(4) A saver who fails to meet the savings goal set forth in the approved plan or who decides to drop out of the program shall terminate his approved plan with the service provider according to procedures determined by the department. Upon the termination of an approved plan between a saver and a service provider, the service provider shall reassign or return the matching funds according to the provisions of subsection (d), and the saver shall be entitled to withdraw funds within the saver's account for purposes other than provided by this chapter.

((f) amended July 5, 2005, P.L.71, No.29)

(2102 amended June 22, 2000, P.L.310, No.29)

Section 2103. Guidelines.

The department shall develop guidelines for the operation of the program, including standards, minimum requirements for approval of plans and reporting requirements for service providers and participating financial institutions.

(2103 added June 24, 1997, P.L.247, No.23)

CHAPTER 23

INDUSTRIAL DEVELOPMENT ASSISTANCE

(Ch. 23 added Nov. 17, 1998, P.L.788, No.100)

Section 2301. Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Area loan organization." An organization, other than a community development financial institution, designated by the department as an area loan organization in accordance with this act, which is in good standing with the department.

"County." Any county and any city of the first class.

"Industrial and commercial development authority." An authority established under section 4 of the act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law.

"Industrial development corporation." An organization certified under the act of May 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania Industrial Development Authority Act, which is in good standing with the department.

"Industrial development organization." An area loan organization, industrial development corporation, industrial and commercial development authority or other nonprofit economic development organization recommended by a county to receive grants under this act.

(2301 added Nov. 17, 1998, P.L.788, No.100)

Section 2302. Designation.

(a) Authorization.--

(1) A county may designate an industrial development organization to make application to the department to receive grants to plan and promote programs designed to stimulate the establishment of new or enlarged industrial, commercial, service or manufacturing enterprises within the county.

(2) The county may designate only one industrial development organization to make application to receive grants under this chapter. Two or more counties may designate the same industrial development organization.

(b) Form.--Authorizations must be in writing on a form and containing information prescribed by the department.

(c) Specific reasons.--The department may require the county to submit specific reasons for the designation and a description of how the industrial development organization will achieve the goals of this chapter.

(2302 added Nov. 17, 1998, P.L.788, No.100)

Section 2303. Grants.

(a) Requirements.--The department may approve applications and provide grants to designated industrial development organizations for all of the following:

(1) Operational, planning and promotional costs associated with all of the following:

(i) The attraction of new businesses to the area served by the industrial development organization.

(ii) The retention or expansion of businesses located within the area served.

(iii) The formation of start-up businesses within the area served.

(iv) The costs associated with the delivery of financial and technical assistance to businesses by the industrial development organization.

(2) Special purpose projects developed by the department to promote initiatives to improve the business climate or improve the work force of this Commonwealth. Guidelines for special purpose projects shall be published as a statement of policy under the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law.

(b) Nonprofit organizations.--The department may grant funding to a nonprofit organization designated under section 2302. If the designated nonprofit organization fails to receive grants from the department, the county may designate a different industrial development organization to apply for and receive grants under this section.

(c) Funding.--Grants made under this chapter shall be in accordance with the following:

(1) Twenty-five percent of any annual appropriation received for grants under this chapter shall be equally divided and distributed among the 67 counties to be used for the purposes set forth in subsection (a)(i). If the county has not designated an organization under section 2302, funds to that county under this paragraph shall be distributed pursuant to paragraph (2).

(2) The remainder of the appropriation shall be distributed in a manner that ensures that each grant does not exceed an amount equal to 10¢ for each inhabitant of the county represented by the industrial development organization. Grant amounts under this paragraph shall be determined by the last preceding decennial United States Census or any authorized update of the census.

(d) Matching funds.--The department may require an industrial development organization to demonstrate the availability of matching funds held by or committed to the organization to support the application.

(2303 added Nov. 17, 1998, P.L.788, No.100)

Section 2304. Reporting and regulations.

(a) Reports.--The department may require reports, accountings and other procedures regarding the use of grant funds by the industrial development organization in order to carry out the purposes of this chapter.

(b) Regulations.--The department may promulgate regulations necessary to carry out the purposes of this chapter.

(2304 added Nov. 17, 1998, P.L.788, No.100)

CHAPTER 25

COMMUNITY DEVELOPMENT BANK GRANT

AND LOAN PROGRAM

(Ch. 25 added Nov. 17, 1998, P.L.788, No.100)

Section 2501. Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Authority." The Pennsylvania Economic Development Financing Authority.

"Board." The Board of Directors of the Pennsylvania Economic Development Financing Authority.

"Certification." Proof by any of the following:

(1) Receipts of paid taxes and municipal utility bills.

(2) Notarized affidavit by a recipient stating payments of real estate taxes and utility bills.

"Community development financial institution." A community development financial institution certified in accordance with the Community Development Banking and Financial Institutions Act of 1994 (Public Law 103-325, 108 Stat. 2163).

"Community development loan." A loan from a community development financial institution to low-income individuals, businesses and nonprofit organizations for the purpose of revitalizing distressed communities and buildings.

"Eligible institution." A community development financial institution which has been accredited by the Department of Community and Economic Development under section 2504.

"Participating investors." Public or private entities which elect to participate with the authority in the loan programs set forth in this chapter.

"Program." The Community Development Bank Grant and Loan Program established under this chapter. The program shall operate under the name of the Pennsylvania Community Development Bank.

"Recipient." A person that receives a grant or loan under the program.

(2501 added Nov. 17, 1998, P.L.788, No.100)

Section 2502. Establishment.

There is established within the Pennsylvania Economic Development Financing Authority a grant and loan program to be administered in accordance with the act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law.

(2502 added Nov. 17, 1998, P.L.788, No.100)

Section 2503. Operation of Pennsylvania Community Development Bank.

(a) Operational committee.--The authority shall establish by resolution a committee of the board consisting of not more than 21 members to which the authority shall delegate its powers to operate the program. The committee shall consist of the State Treasurer, the Secretary of Community and Economic Development who shall be chairman, the Secretary of Banking, one member appointed by the President pro tempore of the Senate, one member appointed by the Speaker of the House of Representatives, one member appointed by the Minority Leader of the Senate, one member appointed by the Minority Leader of the House of Representatives and up to 14 members appointed by the Governor representing participating investors and members of the general public.

(b) Limitation on voting.--No representative of an eligible institution may serve as a voting member of the committee.

(c) Terms.--The members shall serve at the pleasure of the appointing authority.

(d) Expenses.--The members of the committee shall be entitled to no compensation for their services but shall be entitled to reimbursement for all necessary expenses incurred in connection with the performance of their duties.

(e) Quorum.--A majority of the members of the committee shall constitute a quorum.

(2503 added Nov. 17, 1998, P.L.788, No.100)

Section 2504. Deposits.

(a) Special accounts.--Money appropriated to the program may be deposited by the authority in banks or trust companies in special accounts.

(1) Funds in the special accounts may be prudently invested in:

(i) Obligations of the United States Government, its agencies and instrumentalities, which have a liquid market with a readily determinable market value.

(ii) Certificates of deposit and other evidences of deposit at financial institutions, bankers' acceptances and commercial paper rated in the highest tier (for example, A1, P1, F1 or D1 or higher) by a nationally recognized rating agency.

(iii) Obligations of state and local governments and of public authorities, which obligations are rated in one of the top three rating categories by a nationally recognized rating agency.

(iv) Repurchase agreements whose underlying purchased securities consist of the foregoing.

(v) Money market funds regulated by the Securities and Exchange Commission having aggregate assets of at least $50,000,000 on the date of investment and whose portfolio may consist only of dollar-denominated securities.

(2) Investments shall be made with judgment and care under circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the probable safety of their capital as well as the probable income to be derived.

(3) Investments shall be made in accordance with written policies. Such investment policies shall address liquidity, diversification, safety of principal, yield, maturity and quality and the capability of investment management, with primary emphasis on safety and liquidity.

(b) Disbursements.--Money in accounts under subsection (a) shall be paid out on order of the authority.

(2504 added Nov. 17, 1998, P.L.788, No.100)

Section 2505. Accreditation.

(a) General rule.--The department shall accredit community development financial institutions to participate in the program. The department may revoke accreditation from community development financial institutions which no longer meet accreditation criteria. Accreditation of a community development financial institution under this chapter does not, in and of itself, qualify an institution to participate in any other financing program administered by the department.

(b) Criteria.--Department criteria for accreditation shall include certification under the Community Development Banking and Financial Institutions Act of 1994 (Public Law 103-325, 108 Stat. 2163) and such other criteria as the department deems appropriate.

(c) Geographic diversity.--The department shall accredit eligible institutions in a manner to ensure the use of community development financial institutions in all geographic regions of this Commonwealth to the greatest extent possible.

(2505 added Nov. 17, 1998, P.L.788, No.100)

Section 2506. Grants.

The authority may issue grants to eligible institutions or to nonprofit organizations which are attempting to obtain Federal certification or department accreditation as a community development financial institution. The authority may issue in a manner consistent with section 2505(c) grants for the purpose of developing or enhancing the ability of the community development financial institution or nonprofit organization to be accredited as an eligible institution and to participate in the loan program established by this chapter. The authority may also issue grants or loans from the program to nonprofit organizations which have entered into a written contract with a Pennsylvania-accredited community development financial institution or a nonprofit organization receiving grants from the authority to obtain certification and accreditation. In areas where no community development financial institution exists and no nonprofit organization is working to obtain certification and accreditation as a community development financial institution, the authority may issue grants to a nonprofit organization deemed by the department to be performing activities consistent with the goals of the Community Development Banking and Financial Institutions Act of 1994 (Public Law 103-325, 108 Stat. 2163). The grants shall provide technical assistance, training or other support to small businesses and, where applicable, shall be consistent with the community development financial institution's development plan.

(2506 added Nov. 17, 1998, P.L.788, No.100)

Section 2507. Authority loans.

The authority may make loans to eligible institutions from moneys appropriated to the program on such terms and conditions as the authority may determine. Loans shall be made by the authority pursuant to the act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law. Loans shall be made and used in a manner consistent with the requirements of the Community Development Banking and Financial Institutions Act of 1994 (Public Law 103-325, 108 Stat. 2163) or any successor thereto. Loans to eligible institutions may be made by the authority as the sole lender or in cooperation with participating investors pursuant to agreements entered into in accordance with this chapter. Loan repayments shall be used by the authority to make new loans to eligible institutions.

(2507 added Nov. 17, 1998, P.L.788, No.100)

Section 2508. Community development loans.

(a) Requirement.--Eligible institutions that receive loans from the authority under section 2507 shall make and use community development loans pursuant to guidelines established by the department and in a manner consistent with the Community Development Banking and Financial Institutions Act of 1994 (Public Law 103-325, 108 Stat. 2163). The guidelines shall include criteria for the approval of a portfolio of loans submitted by eligible institutions.

(b) Certification required.--In connection with community development loans under this section, the recipient of a loan must provide certification to the department that the recipient does not have any outstanding municipal debts in the form of delinquent real estate taxes or municipal utility bills that are more than one year outstanding.

(2508 added Nov. 17, 1998, P.L.788, No.100)

Section 2509. Agreements.

The authority may enter into agreements and contracts as appropriate to exercise the powers granted by this chapter, including agreements with participating investors.

(2509 added Nov. 17, 1998, P.L.788, No.100)

Section 2510. Report.

Within 90 days of the end of the fiscal year, the authority shall prepare, in consultation with the committee, an annual report to the chairman and minority chairman of the Appropriations Committee of the Senate and the chairman and minority chairman of the Appropriations Committee of the House of Representatives. The report, which shall be for the immediately preceding fiscal year, shall include the amount of funds appropriated to the program deposited by the authority in special accounts in banks or trust companies, the amount of disbursements made from the special accounts, the number, name and location of community development financial institutions accredited by the department, the number and amount of grants to community development financial institutions or nonprofit organizations.

(2510 added Nov. 17, 1998, P.L.788, No.100)

Section 2511. Additional powers.

The authority shall have all other powers granted to it pursuant to the act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law. The authority may operate other community development programs under the name of the Pennsylvania Community Development Bank, including programs authorized and funded under the Federal Rural Development Block Grant Program.

(2511 added Nov. 17, 1998, P.L.788, No.100)

CHAPTER 27

TAX-EXEMPT BOND ALLOCATION

(Ch. 27 added Nov. 17, 1998, P.L.788, No.100)

Section 2701. Purpose.

A tax-exempt bond allocation formula is established in response to restrictions imposed by section 146 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 146). Because of the limits on the amounts of tax-exempt bond funding available, this chapter is intended to use the restricted funding available in order to do all of the following:

(1) Create career-oriented net new jobs or preserve jobs.

(2) Increase and diversify the manufacturing base of this Commonwealth.

(3) Aid in the expansion of existing private companies, particularly those which sell their products outside this Commonwealth.

(4) Attract new industries with new products into economically distressed areas within this Commonwealth.

(5) Promote industrial, commercial and other economic development within this Commonwealth.

(6) Promote a healthy environment through:

(i) abatement, safe storage, transportation, reduction, elimination, remediation and disposal within this Commonwealth of pollutants and wastes; and

(ii) recycling of wastes.

(7) Prepare the necessary personnel, through a program of educational financial assistance to postsecondary students, their families and others providing educational opportunities to students and their families, to assume the manpower and administrative leadership roles required to carry out the objectives of paragraphs (1) through (6).

(8) Assist in providing multifamily, single-family, continuing care and personal care housing for residents of this Commonwealth and in financing the acquisition, construction, rehabilitation, preservation or improvement of that housing.

(9) Otherwise promote the health, welfare and safety of the residents of this Commonwealth by:

(i) promoting economic activity and efficiency;

(ii) alleviating or eliminating unemployment, blight and other unhealthy conditions; and

(iii) promoting education and housing assistance.

(2701 added Nov. 17, 1998, P.L.788, No.100)

Section 2702. Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Agency." An agency organized by the Commonwealth and authorized by the laws of the Commonwealth to issue tax-exempt bonds. The term includes the Pennsylvania Economic Development Financing Authority, The Pennsylvania Industrial Development Authority, the Pennsylvania Housing Finance Agency and the Pennsylvania Higher Education Assistance Agency.

"Department." The Department of Community and Economic Development of the Commonwealth.

"Enterprise zone facility." A project which may be financed with an enterprise zone facility bond.

"Enterprise zone facility bond." As defined in section 1394 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1394).

"Exempt facility." A project which may be financed with an exempt facility bond. The term includes any of the following which meets the requirements of section 142 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 142):

(1) Solid waste disposal facility.

(2) Sewage facility.

(3) Hazardous waste facility.

(4) Facility for furnishing water.

(5) Facility for locally furnishing electricity or gas.

(6) Local district heating and cooling facility.

(7) Multifamily residential rental facility. This paragraph includes a continuing care facility and a personal care facility.

"Exempt facility bond." As defined and described in sections 142 and 1394 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §§ 142 and 1394).

"First-time farmer." As defined in section 147(c)(2)(C) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 147(c)(2)(C)). (Def. added Dec. 9, 2002, P.L.1682, No.213)

"Manufacturing facility." A project which may be financed with a qualified bond small issue under section 144(a) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 144(a)).

"Mortgage revenue bond." A tax-exempt qualified mortgage bond used to finance a single-family mortgage loan and a mortgage credit certificate, within the meaning of section 143(a) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 143(a)).

"Net new job." A full-time job, or its equivalent, which increases the number of jobs at the project site above the number of jobs present before the project is started. The term does not include a job which:

(1) Is being relocated from within this Commonwealth.

(2) Is created by the construction of the project.

(3) Is not designed to be permanent.

"Project." An activity for which tax-exempt bonds may be used.

"Qualified local issuer." An authority organized by and authorized under State law to issue tax-exempt bonds on behalf of a county or other political subdivision for a project and a purpose described in section 2701.

"Redevelopment bond." As defined in section 144(c) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 144(c)).

"Secretary." The Secretary of Community and Economic Development of the Commonwealth.

"Student loan bond." As defined in section 144(b) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 144(b)).

"Tax-exempt bonds." Private activity bonds and other obligations which count against the unified volume ceiling of the Commonwealth under section 146 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 146).

"Unused tax-exempt bond authority." The total tax-exempt bond allocation for the Commonwealth for a year minus the amount which has:

(1) been allocated to approved projects as of a specified date; and

(2) not been recaptured for reallocation under section 2704.

(2702 added Nov. 17, 1998, P.L.788, No.100)

Section 2703. Selection of projects.

(a) Criteria.--In selecting projects for allocation of the tax-exempt bond authority of the Commonwealth, the department shall endeavor to best serve the purposes set forth in section 2701 in accordance with the requirements of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.). In so doing, the secretary may, among other things, consider all of the following:

(1) The number of net new jobs to be created and the number of jobs to be preserved.

(2) The economic distress of the county, municipality or region as determined by its employment.

(3) The geographical diversity within this Commonwealth.

(4) The amount of private funds to be leveraged by the tax-exempt bond financing.

(5) Coordination with community and economic development plans of the Commonwealth and its counties, municipalities and regions.

(6) Whether the community has been designated a Federal disaster relief area or the community's business district has been significantly damaged as a result of fire or natural disaster.

(b) Tax-exempt bond authority set-aside.--Either at the beginning of or at any time during the course of each year, the department may set aside such tax-exempt bond authority as the department, in consultation with the Secretary of the Budget, determines for use during the year for the various categories of tax-exempt bonds such as manufacturing facilities, enterprise zone facilities, exempt facilities, mortgage revenue bonds, student loan bonds, first-time farmers and redevelopment bonds.

(2703 amended Dec. 9, 2002, P.L.1682, No.213)

Section 2704. Allocation.

(a) Application by agency.--An agency may apply to the department for an allocation for a project to be undertaken by the agency consistent with the purposes set forth in section 2701. The department, in consultation with the agency and the Secretary of the Budget, shall determine what portion of an allocation request the agency will receive and may establish deadlines for the use of the allocation. A decision on the application shall be provided by the department within 30 days from the date that the application for an allocation is made to the department. Nothing in this chapter shall prevent an agency from applying for additional allocations for projects throughout the year. Nothing in this chapter shall affect the rights of constitutional home rule cities to receive allocations under section 146(e)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 146(e)(3)).

(b) Application by qualified local issuers.--A qualified local issuer may apply to the department for an allocation for a project consistent with purposes set forth in section 2701 with respect to which the qualified local issuers are authorized by the laws of the Commonwealth to issue a tax-exempt bond. Except as set forth in subsection (d.1), a qualified local issuer shall apply directly to the department, and the department shall determine what portion of an allocation request a qualified local issuer will receive.

(c) Recapture of unused allocation.--A portion of an allocation provided under subsection (a), (b) or (d.1) which is not used before the earlier of the end of the calendar year or the deadline set by the department under subsection (a), including an extension by the department, shall be recaptured for reallocation by the department in consultation with the Secretary of the Budget.

(d) Allocations to Pennsylvania Housing Finance Agency.--As provided by section 501-A.1 of the act of December 3, 1959 (P.L.1688, No.621), known as the Housing Finance Agency Law, an allocation for a mortgage revenue bond shall only be made by the department to the Pennsylvania Housing Finance Agency, which may reallocate a mortgage revenue bond under the Housing Finance Agency Law. The department may make an allocation for a qualified multifamily residential facility to the Pennsylvania Housing Finance Agency, the Pennsylvania Economic Development Financing Authority or a qualified local issuer. An allocation for a qualified multifamily residential facility made to the Pennsylvania Housing Finance Agency may be reallocated in whole or in part by the Pennsylvania Housing Finance Agency to a qualified local issuer.

(d.1) First-time farmers.--An allocation for first-time farmer projects shall be made by the department to the Department of Agriculture, which may reallocate to qualified local issuers. A qualified local issuer must apply directly to the Department of Agriculture, and the Department of Agriculture shall determine what portion of an allocation request a qualified local issuer shall receive. The Department of Agriculture has the authority to establish by regulation the criteria under which a qualified local issuer may receive allocation for a first-time farmer project. The criteria must be consistent with Federal law. By June 30 and December 31 of each year, the Department of Agriculture shall provide information to the department on allocations provided to qualified local issuers for first-time farmer projects, consistent with the information set forth in section 2706(a)(2).

(e) Carryforward of unused authority.--The department shall provide for the carryforward of any unused tax-exempt bond authority at the close of a year in a manner the department determines will best preserve the ability to use the allocation to carry out the purposes of this chapter. In providing for the carryforward, there shall be a presumption that ability to carry out the purposes of this chapter will be best maintained if carryforwards of unused tax-exempt bond authority are reserved for agencies.

(2704 amended Dec. 9, 2002, P.L.1682, No.213)

Section 2705. Federal law change.

(a) Promulgation of regulations.--In the event that Federal law regulating tax-exempt bonds is changed and that such change would, in the opinion of the secretary, conflict with this chapter in such a way as to impair the ability of the Commonwealth to use tax-exempt bonds to their maximum benefit, the secretary shall, with the approval of the Governor, have the power to promulgate regulations or issue guidelines, directives, rulings or procedures which may become effective when the Federal law takes effect and which shall better enable the Commonwealth to utilize tax-exempt bonds to their maximum benefit and which shall, to the largest extent possible, carry out the purposes set forth in this chapter. Provisions of this chapter may be suspended by the secretary to the extent deemed necessary to implement the regulations authorized by this subsection.

(b) Standby allocation.--(Reserved).

(2705 added Nov. 17, 1998, P.L.788, No.100)

Section 2706. Powers and duties of department.

(a) Enumeration.--The department has the following powers and duties:

(1) Notify affected agencies and authorities of their bond allocations under section 2704.

(2) Submit reports to the Secretary of the Senate and the Chief Clerk of the House of Representatives within 45 days of January 1 and within 45 days of July 1 of each year. Reports shall include:

(i) A list of projects approved, disapproved and pending. The list shall contain for each request:

(A) Amount.

(B) Location, if applicable.

(C) Estimated jobs, if applicable.

(D) Issuing authority or agency.

(E) Section of this chapter under which bond authority was given.

(ii) The written procedures, policies, guidelines, forms and reporting requirements established under paragraph (4).

(iii) Other information which the secretary deems pertinent, including suggested changes to the program.

(3) Promulgate any regulations as may be necessary to carry out the purposes set forth in this chapter and publish all other general procedures, requirements, interpretations and guidelines and changes thereto utilized in the implementation of this chapter.

(4) The department shall establish procedures, policies, guidelines, forms and reporting requirements necessary or appropriate to carry out the purposes of this chapter within 180 days of the effective date of this section. Procedures, policies, guidelines, forms and reporting requirements to be established under this section shall be submitted to the Community and Economic Development Committee of the Senate and the Commerce and Economic Development Committee of the House of Representatives for their comment and review. These procedures, policies, guidelines, forms and reporting requirements shall be effective for one year from the effective date of this section or until regulations are promulgated under this chapter, whichever is sooner.

(b) Consultation with Secretary of the Budget.--In making the initial allocations to agencies and in making decisions as to allocation carryforwards, the department shall consult with the Secretary of the Budget.

(2706 added Nov. 17, 1998, P.L.788, No.100)

CHAPTER 29

CUSTOMIZED JOB TRAINING PROGRAM

(Ch. added Dec. 9, 2002, P.L.1682, No.213)

Compiler's Note: Section 7 of Act 213 of 2002, which added Chapter 29, provided that Chapter 29 shall be deemed a continuation of the program authorized by the former act of December 20, 1985 (P.L.492, No.116), known as the Customized Job Training Act. Except where in conflict with the provisions of Act 213, the regulations promulgated under the former act shall remain in force and effect until they are amended or repealed in accordance with law.

Section 2901. Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Applicant." Any of the following:

(1) A local education agency.

(2) An industrial resource center.

(3) An economic development organization.

(4) A greenhouse.

(5) A private company.

(6) A local work force investment board.

"Capital investment." An expenditure for land, buildings, renovations, machinery and equipment which is directly related to the need for the proposed training.

"Economic development organization." An entity certified by the department. The term includes "area loan organizations" and "industrial development corporations" as defined in section 2301.

"Educational institution." Any of the following:

(1) Area vocational-technical schools.

(2) Community and junior colleges.

(3) Intermediate units.

(4) Licensed private/proprietary business and trade schools.

(5) Public school districts.

(6) State or private colleges or universities.

"Greenhouse." A nonprofit organization recognized under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) which is formed for the express purpose of creating university/business partnerships to advance science and technology and to support economic and work force development.

"Industrial resource center." An industrial resource center as defined in the act of June 22, 2001 (P.L.400, No.31), known as the Industrial Resources Center Partnership Act.

"Labor organization." An organization, agency or employee representation committee or plan in which employees participate and which exists for the purpose, in whole or in part, of dealing with disputes between an employer and its employees involving grievances, labor disputes, wages, rates of pay, hours of employment or conditions of work. The term does not include an organization, agency, committee or plan which practices discrimination in membership because of race, color, creed, national origin, sex or political affiliation.

"Local education agency." An educational institution located in the Commonwealth and certified by the Department of Education.

"Local work force investment board." An entity recommended for certification by the Pennsylvania Workforce Investment Board and certified by the Governor in accordance with the act of December 18, 2001 (P.L.949, No.114), known as the Workforce Development Act.

"Private company." A business, professional service company or other enterprise. The term may include a group of two or more private companies operating as a consortium in order to take advantage of a common training program. The term shall not include point-of-sale retail businesses.

"Program." The Customized Job Training Program established under this chapter.

"Trainee." An individual who is an employee or prospective employee and is enrolled in an eligible training program which is designed to enable the individual to obtain or retain employment.

"Training program." A systematic program which is designed to provide a trainee with the skills and knowledge necessary to meet a private company's or labor organization's specifications for an occupation or trade, the successful completion of which results in one of the following:

(1) The trainee being employed or continuing to be employed full time by that private company.

(2) A trainee receiving instruction or training related to an occupation with a shortage of skilled workers or a targeted industry cluster as referred in section 2905(3)(i).

The program may involve instruction within a local education agency, within a private company or on-the-job training, within a training program of a labor organization, through technology-based instruction or any combination thereof.

(2901 added Dec. 9, 2002, P.L.1682, No.213)

Section 2902. Program.

(a) Program continuation.--The customized job training program within the department is continued and reestablished. Funds appropriated to the department for the program shall be used to provide grants for training programs.

(b) Department responsibilities.--The department shall do all of the following:

(1) Administer the program.

(2) Review, approve and award grants to applicants in accordance with sections 2904 and 2905.

(3) Enter into one or more partnerships with one or more local education agencies or other training providers in accordance with section 2907.

(4) Establish, at the beginning of each fiscal year, a reserve not to exceed 25% of the funds appropriated to the department for the program for the use of small business applicants. Any uncommitted funds in the reserve after March 1 of any fiscal year may be made available to any applicant.

(5) Establish a private matching fund requirement for applicants. The department shall establish the private matching fund requirement for applicants which are private companies or labor organizations at not less than 25% of the total eligible training project cost. The department may establish different matching fund requirements for a small business enterprise as defined in section 1301 and a labor organization.

(2902 added Dec. 9, 2002, P.L.1682, No.213)

Section 2903. Applications.

(a) Provisions of application.--An applicant may submit an application to the department for a grant to fund a training program in accordance with the following:

(1) If an application is submitted by an industrial resource center or economic development organization, the industrial resource center or economic development organization may apply for a grant on behalf of a private company, greenhouse or labor organization. An economic development organization may not serve as the direct training provider of the trainees.

(2) If an application is submitted by a local work force investment board, the local work force investment board may apply for a grant only on behalf of projects which promote local education agency and private company partnerships or private company and private company partnerships.

(3) If an application to train entry-level employees is submitted by or on behalf of a private company, the applicant shall demonstrate that the private company has contacted the local work force investment board and the local county board of assistance to solicit referrals of candidates for the training program.

(4) If an application is submitted by any other person, the application shall satisfy any requirements established by the department.

(b) Requirements of application.--An application shall:

(1) Demonstrate that the applicant considered other available resources, including private sector funds, other State or local agency training programs or funds made available under the Workforce Investment Act of 1998 (Public Law 105-200, 112 Stat. 936) or such other Federal programs which provide funds for employment training.

(2) Contain a description of the proposed training or instructional program to be carried out.

(3) Disclose if an applicant intends to contract with other organizations or individuals for the provision of all or a portion of the services to be provided and, if disclosed, contain a request to allocate a portion of the grant from the applicant to the subcontractor.

(4) Include a written commitment from the applicant to invest private matching funds in the training project.

(2903 added Dec. 9, 2002, P.L.1682, No.213)

Section 2904. Review of applications.

The department shall review an application and may request from the applicant and its training provider such additional information and records as it deems necessary to carry out its responsibilities under this chapter.

(2904 added Dec. 9, 2002, P.L.1682, No.213)

Section 2905. Approval of applications and award of grants.

The department may approve and award grants to applicants in accordance with all of the following:

(1) The department must find that the applicant has satisfied the applicable matching fund requirement and that the grant will be used by the applicant to provide training or instruction only to Commonwealth residents.

(2) The department must find that the grant will result in any of the following objectives:

(i) The location or expansion of a private company or greenhouse within this Commonwealth with the creation of jobs paying competitive wages and the private company or greenhouse making capital expenditures.

(ii) The expansion or upgrade of existing jobs which result in increased wages for the jobs.

(iii) The retention of jobs in this Commonwealth which would otherwise be lost.

(iv) The promotion of local education agency and private company partnerships and private company and private company partnerships if a direct connection between the development of skills and subsequent employment by one or more private companies can be demonstrated.

(v) The promotion of efforts by a labor organization to upgrade the skills of its members.

(3) The department shall give priority to those applications which have any of the following characteristics:

(i) The application would establish a training program determined by the department to be in a growth industry vital to this Commonwealth's competitiveness. These industries include: agribusiness, advanced manufacturing, advanced materials, life sciences, biotechnology and health care, environmental technology and information technology.

(ii) The application is submitted on behalf of a private company or labor organization which is located:

(A) in a municipality in which the average unemployment rate in the most recently completed calendar year is above the Statewide average unemployment rate for the same period;

(B) in a State-designated enterprise zone; or

(C) in a municipality or region which has suffered a significant loss of jobs due to one or more major plant closings, layoffs or natural or man-made disaster.

(iii) The application is submitted by or on behalf of a private company which plans to create 50 or more jobs and which is making a capital investment of at least $1,000,000.

(4) The department may determine that the grant will be used by the applicant to reimburse the cost of training. Costs may include instructional costs, costs of instructional or training material or software, costs associated with tuition reimbursement and reasonable administrative costs as determined by the department.

(2905 added Dec. 9, 2002, P.L.1682, No.213)

Section 2906. Limitations.

(a) Department.--The department may not do any of the following:

(1) Award grants under this chapter which in the aggregate exceed the amount of the annual appropriations to the department for the program.

(2) Award more than 10% of the funds appropriated to the program in any one fiscal year to any one private company, greenhouse or labor organization, including any affiliates thereof.

(3) Award a grant to or on behalf of any private company or labor organization, including any affiliates thereof, for more than two successive fiscal years and for no more than three out of every five fiscal years.

(b) Recipients.--A recipient of a grant may not do any of the following:

(1) Use a grant to do any of the following:

(i) Pay wages of trainees during training.

(ii) Pay any costs associated with building construction or renovation or the acquisition, upgrade or installation of equipment or machinery, including computer equipment.

(2) Use a grant to reduce the work force or displace workers of a private company prior to the commencement of a training program except because the introduction of new manufacturing techniques, technology and modernization may lead to short-term reductions in a private company's work force. The secretary may waive this grant limitation if the long-term economic benefits to be gained by the private company significantly exceed the short-term detriment to its work force.

(3) Use a grant to violate any conditions of an existing collective bargaining agreement.

(4) Use a grant for point-of-sale retail job training.

(2906 added Dec. 9, 2002, P.L.1682, No.213)

Section 2907. Partnerships.

If the department determines that a training program is more effectively delivered through a partnership, the department may enter into partnership agreements with one or more local education agencies or other training providers to provide the training program. The training programs shall consist of basic and entry-level skills, technology skill training, training related to job retention or other specified training assistance. Under a partnership arrangement, the department may limit the number and category of applicants which may submit applications for assistance and may establish minimal standards and requirements for project eligibility. These requirements may be separate and distinct from the requirements established under this chapter except that the provision of section 2906 shall apply to all training programs funded under this chapter.

(2907 added Dec. 9, 2002, P.L.1682, No.213)

Section 2908. Compliance with statutes and collective bargaining agreements.

The department shall require each person receiving a grant under this chapter to comply with applicable Federal and State statutes governing employment discrimination, minority recruitment, minimum or prevailing wages, worksite safety and procurement practices. The department shall require each private company receiving a grant under this chapter to certify that its training program does not abridge any contractual agreement between the private company and the collective bargaining representative of its employees.

(2908 added Dec. 9, 2002, P.L.1682, No.213)

Section 2909. Penalties and investigations.

(a) Private company.--Unless the department determines that a private company's failure is due to circumstances outside the control of the private company, the private company shall be liable to repay all or part of the amount of a grant awarded under this chapter if the private company does any of the following:

(1) Fails to create the number of jobs specified in its agreement with or commitment to the department.

(2) Fails to make the amount of capital investment specified in the application to the department.

(3) Fails to substantially carry out the training program approved by the department.

(b) Applicants.--An applicant or subcontractor that fails to provide for or to perform a training program approved by the department may be required to repay to the department any funds it received under a grant awarded by the department.

(c) Investigation.--Upon receiving any complaint from a private company, greenhouse, labor organization or trainee as to the inadequacy of training received, the department may initiate an investigation and take appropriate action, including the recovery of grant funds expended.

(2909 added Dec. 9, 2002, P.L.1682, No.213)

CHAPTER 30

MACHINERY AND EQUIPMENT LOAN FUND

(Ch. 30 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3001. Scope. (3001 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3002. Definitions. (3002 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3003. Machinery and Equipment Loan Fund. (3003 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3004. Eligibility for loans; terms and conditions. (3004 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3005. Application and administration. (3005 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3006. Powers of secretary. (3006 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3007. Reporting and inspection. (3007 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3008. Nondiscrimination. (3008 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3009. Conflict of interest. (3009 repealed Feb. 12, 2004, P.L.99, No.12)

Section 3010. Reports to the General Assembly. (3010 repealed Feb. 12, 2004, P.L.99, No.12)

CHAPTER 31

TECHNOLOGY WORK EXPERIENCE INTERNSHIP PROGRAM

(Ch. 31 added Nov. 6, 2003, P.L.205, No.34)

Section 3101. Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Agency." The Pennsylvania Higher Education Assistance Agency.

"Approved course of study." A program or curriculum offered by a postsecondary educational institution that provides instruction in science, technology and related fields and that has been approved by the Department of Education in consultation with the Pennsylvania Workforce Investment Board, as required under section 3 of the act of June 23, 1999 (P.L.159, No.22), known as the New Economy Technology Scholarship Act.

"Approved educational institution." A postsecondary educational institution located in this Commonwealth that is authorized to provide approved courses of study and grant degrees and that has been approved by the Pennsylvania Higher Education Assistance Agency as an institution in which students may enroll to participate in the New Economy Technology Scholarship Program.

"Department." The Department of Education of the Commonwealth.

"Emerging technology company." A company located in this Commonwealth that is involved in scientific research and product development, technology or a related field which is either less than eight years from incorporation or employs fewer than 500 full-time employees.

"Pennsylvania Workforce Investment Board." A public and private partnership that provides strategic planning, program coordination and evaluation of Pennsylvania's work force training efforts.

"Program." The Technology Work Experience Internship Program established under this chapter.

"Student." An individual domiciled in this Commonwealth who attends an approved educational institution and who is enrolled in an approved course of study.

"Work experience internship." An internship or work experience in a science, technology or related field with an emerging technology employer located within this Commonwealth for which the student receives compensation and which is approved by a postsecondary institution listed as an approved educational institution by the Pennsylvania Higher Education Assistance Agency.

(3101 amended July 5, 2005, P.L.71, No.29)

Section 3102. Technology Work Experience Internship Program.

(a) Establishment of program.--The Technology Work Experience Internship Program is hereby established within the agency. This program shall be separate from, but may be operated in conjunction with, the Federal and State work-study programs.

(b) Matching funds.--The agency shall provide matching funds to approved educational institutions to support internships for students with emerging technology companies, to the extent that an appropriation is enacted. The agency shall review and approve applications from colleges and universities for participation in the program and shall require that approved educational institutions provide at least one-half of the moneys necessary for the internships. Not more than 50% of the cost of each internship shall be paid for by the agency.

(c) Approved courses.--The list of approved courses of study for the program for undergraduate students shall be the same as is currently required under section 4(c) of the act of June 23, 1999 (P.L.159, No.22), known as the New Economy Technology Scholarship Act. ((c) amended July 5, 2005, P.L.71, No.29)

(d) Emerging technology companies.--Companies meeting the definition of "emerging technology company" as provided in section 3101 electing to participate in the program shall certify, on forms provided by the agency, that they meet the criteria and agree to adhere to the requirements of this act and agency guidelines. ((d) amended July 5, 2005, P.L.71, No.29)

(e) Standards.--Approved educational institutions shall adopt standards for approving technology work experience internship programs, which standards shall include at a minimum that:

(1) The employer must be a Pennsylvania high-tech business.

(2) The internship must provide career-related work experience and use the student's classroom knowledge.

(3) The position must not displace any employee, including any employee who is laid off or on strike.

(4) The student must be compensated at a rate at least equal to the State minimum wage.

(3102 added Nov. 6, 2003, P.L.205, No.34)

Section 3103. Powers and duties of agency.

The agency shall have the power and its duties shall be:

(1) To execute a participation agreement with each approved educational institution participating in the program.

(2) To establish such procedural, accounting and auditing requirements as may be necessary.

(3) To review and audit all relevant records of the participating institution and the participating employer to ensure compliance with the provisions of this chapter.

(4) To adopt such rules, regulations, forms and procedures as may be necessary to implement this chapter.

(3103 added Nov. 6, 2003, P.L.205, No.34)

Section 3104. Responsibility of approved educational institution.

Educational institutions participating in this program shall:

(1) Submit an application to the agency for approval to participate in the program. The application shall identify the high-tech employers or potential employers who will sponsor an internship, the wages that interns shall be paid, a description of the general nature of the work to be performed and the screening process to be employed to identify those students who will participate in the internship program.

(2) Enter into a participation agreement with the agency.

(3) Ensure that each participating high-tech business understands the requirements of the program and provides each hired intern career-related work experience that builds on that student's classroom knowledge.

(4) Either through employer funds or institutional funds, provide the funds required to match the State contribution.

(5) Implement a process to screen and approve students for participation in the program.

(6) Open relevant records and materials to the agency for review.

(7) Have a process to monitor and evaluate each internship experience.

(8) Adhere to any requirements or conditions that the agency may adopt.

(3104 amended July 5, 2005, P.L.71, No.29)

Section 3105. Emerging technology company employer responsibility.

Each emerging technology company employer participating in the program shall:

(1) Agree to provide each intern with career-related work experience that will build on that student's classroom knowledge.

(2) Agree not to use the intern to replace any employee, including employees who may be laid off or on strike.

(3) Have the right to approve the selection of any student placed in an internship with that company.

(4) Add each employee to the business payroll and return all reconciliation materials by the dates required by the agency to receive reimbursement for that State share of the approved earnings.

(5) Adhere to any requirements, including such accounting and auditing standards as the agency or the department, in consultation with the Pennsylvania Workforce Investment Board and the Department of Community and Economic Development, may adopt.

(3105 added Nov. 6, 2003, P.L.205, No.34)

Section 3106. Interns.

(a) Eligibility.--Undergraduate and master's degree students enrolled in an approved course of instruction at an approved educational institution shall be eligible to participate in the program. Priority for participation shall be based on financial need as determined by the educational institution and the agency, but participation shall not be limited to those students who qualify for financial aid. ((a)amended July 5, 2005, P.L.71, No.29)

(b) Terms and conditions.--Each intern shall comply with any conditions placed upon the internship by the agency or approved educational institution. Each intern shall comply with any applicable requirements established by the employer. Interns may work no more than 20 hours a week while they are enrolled on a full-time basis and may work not more than 40 hours a week during any break. ((b) amended July 5, 2005, P.L.71, No.29)

(c) Student aid.--Participation as an intern in the program may qualify as a work-study appointment and may qualify as student aid, subject to Federal and State requirements for such appointments. However, the maximum compensation an intern may receive through this program shall be subject to the limits imposed in this chapter.

(d) Satisfaction of New Economy Technology Scholarship Program requirements.--Participation as an intern in the program may qualify as satisfactory evidence of completion of the internship requirements as provided by section 5(c) of the act of June 23, 1999 (P.L.159, No.22), known as the New Economy Technology Scholarship Act, subject to the requirements of that act.

(3106 added Nov. 6, 2003, P.L.205, No.34)

Section 3107. Compensation.

The compensation shall be determined by the approved educational institution in cooperation with the emerging technology company. Compensation shall be subject to any terms or conditions established by the agency. Interns shall be paid on an hourly basis and shall receive at least the minimum wage established under Pennsylvania law. In no event shall the total compensation that any student receives exceed $7,000 in any 12-month period.

(3107 added Nov. 6, 2003, P.L.205, No.34)

Section 3108. Annual report.

The agency shall include the total number of students participating in this program and any data relevant thereto within its annual report as currently required by section 9 of the act of June 23, 1999 (P.L.159, No.22), known as the New Economy Technology Scholarship Act.

(3108 added Nov. 6, 2003, P.L.205, No.34)

CHAPTER 51

MISCELLANEOUS PROVISIONS

Section 5101. Transfer of Sunny Day Fund loans and commitments.

On July 1, 1996, all outstanding loans closed with Sunny Day Funds and approved Sunny Day Fund loan commitments which have not closed prior to July 1, 1996, along with sufficient funds to provide for the loans, and all documentation and collateral security associated with all the loans shall be transferred to the Pennsylvania Industrial Development Authority. All amounts received or receivable on account of the loans and collateral security shall be revenues of the Pennsylvania Industrial Development Authority and shall be used for any purpose permitted under the act of May 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania Industrial Development Authority Act. Any approved Sunny Day Fund loan commitments which have been closed prior to July 1, 1996, and are transferred to the Pennsylvania Industrial Development Authority shall be closed by the authority with the transferred funds in accordance with the provisions of Chapter 1 of the act of July 1, 1985 (P.L.120, No.32), known as the Sunny Day Fund Act. In the event that any loan commitment is unable to be closed, all transferred funds shall remain with the Pennsylvania Industrial Development Authority. The ability of the Pennsylvania Industrial Development Authority to close the loans and to extend or restructure any outstanding loans closed under the Sunny Day Fund Act shall not be affected by the limitations of the Pennsylvania Industrial Development Authority Act.

Section 5102. Transfer of Pennsylvania Capital Loan Fund, accounts, assets and liabilities.

(a) Transfer of existing funds.--As of the effective date of this chapter, all funds, accounts, assets, encumbrances and liabilities located in or associated with the Capital Loan Fund shall be transferred to the Small Business First Fund and shall thereafter be handled in accordance with the provisions of this act. As of the effective date of this chapter, the Capital Loan Fund shall be terminated as a separate account in the Treasury Department.

(b) Transfer of future funds.--Any and all funds received by the department for loans made under the act of July 2, 1984 (P.L.545, No.109), known as the Capital Loan Fund Act, regardless of whether the loans were made before or after the effective date of this chapter, as well as all other funds received by the department in relation to projects which received loan funds under the Capital Loan Fund Act shall be returned to the Small Business First Fund established by this act.

Section 5103. Transfer of Air Quality Improvement Fund, Storage Tank Loan Fund and Recycling Incentive Development Account.

As of the effective date of this chapter, all funds, accounts, assets, encumbrances and liabilities located in or associated with Air Quality Improvement Fund, the Storage Tank Loan Fund and the Recycling Incentive Development Account shall be transferred to the Small Business First Fund and shall thereafter be handled in accordance with the provisions of this act, provided the funds shall be maintained and accounted for in a separate account of the Small Business First Fund and shall be available for use only for those capital development projects which will bring a small business enterprise into compliance with Federal or State environment laws or regulations or which will permit the small business enterprise to adopt generally acceptable pollution prevention practices. Any transfers of moneys from the Department of Environmental Protection to the Small Business First Fund after the effective date of this chapter shall likewise be deposited into the separate account and be available only for capital development projects. The department shall report annually to the Department of Environmental Protection on the status of the separate account and the loans made with funds in the account. As of the effective date of this chapter, the Air Quality Improvement Fund, the Storage Tank Loan Fund and the Recycling Incentive Development Account shall be terminated as separate accounts within the Treasury Department.

Section 5104. Transitional provisions.

(a) Capital Loan Fund applications.--Applications for assistance under the act of July 2, 1984 (P.L.545, No.109), known as the Capital Loan Fund Act, which have been approved by the department prior to the effective date of this chapter shall be processed in accordance with the provisions of the Capital Loan Fund Act. Applications for assistance which have been received by the department but which have not been approved prior to the effective date of this chapter shall be evaluated and processed in accordance with the provisions of this chapter.

(b) Air Quality Improvement Fund, Storage Tank Loan Fund and Recycling Incentive Development Account applications.--Applications for assistance made under section 7.13 of the act of January 8, 1960 (1959 P.L.2119, No.787), known as the Air Pollution Control Act, section 709 of the act of July 6, 1989 (P.L.169, No.32), known as the Storage Tank and Spill Prevention Act, and made to the Recycling Incentive Development Account, which have been approved by the Secretary of Environmental Protection or the Department of Environmental Protection prior to the effective date of this chapter shall be processed in accordance with these respective statutory provisions. Applications for assistance which have been received by the Department of Environmental Protection but which have not been approved prior to the effective date of this chapter shall be evaluated and processed in accordance with Chapter 13.

Section 5105. Power and authority of the Pennsylvania Economic Development Financing Authority.

In addition to the powers set forth in section 6.3 of the act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law, the Pennsylvania Economic Development Financing Authority established under that act shall have the power and is hereby authorized to issue its limited obligation revenue bonds and other types of financing, as in the judgment of the financing authority shall be necessary, to provide sufficient funds for any activity the department or the Pennsylvania Industrial Development Authority is permitted to take with respect to the loan portfolios subject to their respective administrative authority. Bonds authorized to be issued under this section shall not be a debt or liability of the Commonwealth and shall not create or constitute any indebtedness, liability or obligation of the Commonwealth except to the extent the bonds are secured by the pledge of loan portfolios. Bonds authorized to be issued under this section shall be payable solely from the revenues or funds pledged or available for their repayment.

(5105 amended Dec. 9, 2002, P.L.1682, No.213)

Section 5106. Public record exemption.

Financial statements, business plans and marketing information submitted to the department by companies seeking or receiving financial assistance under any of the department's financing programs are not public records for purposes of the act of June 21, 1957 (P.L.390, No.212), referred to as the Right-to-Know Law.

Compiler's Note: The act of June 21, 1957 (P.L.390, No.212), referred to as the Right-to-Know Law, referred to in this section, was repealed by the act of Feb. 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

Section 5106.1. Family Savings Account Program/Tuition Account Program Coordination.

(a) Program coordination.--A saver under the Family Savings Account Program (FSA) established under Chapter 21 may transfer the saver's Family Savings Account contributions into a Tuition Account Program (TAP) contract pursuant to the act of April 3, 1992 (P.L.28, No.11), known as the Tuition Account Program and College Savings Bond Act, and become an FSA/TAP account owner if the FSA saver has successfully completed all the terms of the FSA saver's approved plan pursuant to section 2102(e) and the FSA saver's approved plan specifies education as the eligible use. The FSA saver does not have to be the beneficiary of the education.

(b) Match payment.--The match to be provided pursuant to Chapter 21 shall be paid by the FSA saver's service provider directly to the Treasury Department for deposit in the FSA/TAP saver's selected Tuition Account Program account.

(c) Waiver of restrictions.--The restrictions on withdrawal of the FSA match pursuant to section 2102(f)(3) shall not apply to an FSA/TAP account owner.

(d) Termination.--In the event an FSA/TAP account owner terminates the Tuition Account Program contract pursuant to section 313 of the Tuition Account Program and College Savings Bond Act, the amount refunded to the FSA/TAP account owner shall exclude the match made pursuant to section 2102(f) and any increase in value resulting from that match. The Treasury Department shall pay the match to the Department of Community and Economic Development.

(e) Agency coordination.--The Treasury Department and the Department of Community and Economic Development may issue regulations to further facilitate coordination of the Tuition Account Program and the Family Savings Account Program.

(5106.1 added June 22, 2000, P.L.310, No.29)

Section 5107. Repeals.

(a) The following acts and parts of acts are repealed:

Act of July 2, 1984 (P.L.545, No.109), known as the Capital Loan Fund Act.

Act of July 2, 1984 (P.L.568, No.113), known as the Employee-Ownership Assistance Program Act.

Chapter 1 of the act of July 1, 1985 (P.L.120, No.32), known as the Sunny Day Fund Act.

Section 709 of the act of July 6, 1989 (P.L.169, No.32), known as the Storage Tank and Spill Prevention Act.

(b) The following acts and parts of acts are repealed insofar as they are inconsistent with this act:

The second sentence of section 5.2(a) and section 13.1 of the act of May 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania Industrial Development Authority Act.

Section 10 of the act of December 20, 1985 (P.L.492, No.116), known as the Customized Job Training Act.

Section 702(h) of the act of May 19, 1995 (P.L.4, No.2), known as the Land Recycling and Environmental Remediation Standards Act.

Chapter 7 of the act of June 27, 1996 (P.L.403, No.58), known as the Community and Economic Development Enhancement Act.

Section 5108. Effective date.

This act shall take effect July 1, 1996, or immediately, whichever is later.