12 Pa.C.S. Ch. 34

12 Pa.C.S. Ch. 34
in effect

12 Pa.C.S. § 3401 Scope of chapter.

This chapter relates to the Infrastructure and Facilities Improvement Program.

12 Pa.C.S. § 3402 Definitions.

The following words and phrases when used in this chapter shall have the meaning given to them in this section unless the context clearly indicates otherwise: "Applicant." An issuing authority which applies for financial assistance under section 3404 (relating to application). "Convention center." Interests in land, improvement, structure, buildings or part of a building, whether owned by, leased by or to or otherwise acquired by an authority, which are appropriate for large public assemblies, the holding of conventions, conferences, trade exhibitions and other business, social, cultural, scientific and public interest events. "Convention center authority." An entity created under any of the following: (1)

12 Pa.C.S. § 3403 Establishment.

There is established within the department a program to be known as the Infrastructure and Facilities Improvement Program. The program shall enhance the economic development of the Commonwealth by providing financial assistance in the form of multiyear grants to issuing authorities toward payment of debt service on projects.

12 Pa.C.S. § 3404 Application.

An issuing authority may submit an application to the department requesting financial assistance for a project. The application must be on a form required by the department and must include all of the following: (1) The name and address of the applicant. (2) The name, address and state tax identification numbers of the project user. (3) A description of the project. The description shall include all of the following: (i) A detailed narrative describing the project and the project user. (ii) A detailed statement of the cost of the project. The statement must include the amount and type of debt to be issued by the applicant for the project, the identity of the party responsible for repayment of the debt and the collateral or security to be provided. (iii) A statement of the number of net new full-time jobs to be created by the project and the number of existing full-time jobs to be preserved by the project. (4) A statement of the amount of grant funds being requested per year. (5) A statement of the number of years a grant is being requested. If the applicant is requesting a grant for a project of a project user that is an industrial enterprise, retail enterprise, a research and development enterprise or a manufacturer, the request may not exceed ten years. If the applicant is requesting a grant for a project of a project user that is a hospital, convention center or hotel establishment, the request may not exceed 20 years. (6) Financial information from the project user prepared or reported on by an independent certified public accountant projecting for the next three years all of the following: (i) The sales or expected sales tax collected or to be collected by the project user from activities as a result of the project. (ii) The expected hotel occupancy tax to be collected by the project user from activities as a result of the project. (iii) The expected net increase in personal income tax withheld by the project user as an employer pursuant to Article III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, from activities as a result of the project. (7) Evidence of a firm commitment from the project user to use the project upon completion. (8) (Deleted by amendment). (9) Any other information required by the department. (Nov. 30, 2004, P.L.1708, No.218, eff. imd.) 2004 Amendment. Act 218 amended par. (5) and deleted par. (8). Cross References. Section 3404 is referred to in section 3402 of this title.

12 Pa.C.S. § 3405 Review.

(a) Project review.--Upon receiving a completed application, the department shall review the application to determine all of the following: (1) That the cost of the project is reasonable. (2) The number of net new full-time jobs created or to be created by the project and the number of existing full-time jobs to be preserved by the project. (3) That a firm commitment from the project user to use the project upon completion exists. (4) That the financing for the project identifies a party other than the Commonwealth that will be responsible for repayment of the debt. (5) That the applicant submitted satisfactory financial information from the project user prepared or reported on by an independent certified public accountant. (6) That the financing for the project does not pledge the full faith and credit of the Commonwealth. (7) (Deleted by amendment). (8) If the project was completed prior to the effective date of this section, that the project user is a retail enterprise. (9) That the applicant and the project user complied with all other criteria established by the department. (b) Financial review.-- (1) Upon being satisfied that all requirements have been met, the department shall forward the application to the Office of the Budget and the Department of Revenue. The office, in conjunction with the Department of Revenue, shall review the application. Notwithstanding the provisions of section 353(f) of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, the Department of Revenue may supply the department and the office with information concerning taxes owed or paid by a project user or for which a project user may otherwise be liable or with any other aspect of an applicant's tax liability. The office, in conjunction with the Department of Revenue, shall evaluate all of the following: (i) The sales tax collected or expected to be collected by the project user pursuant to Article II of the Tax Reform Code of 1971 from activities as a result of the project. (ii) The hotel occupancy tax to be collected by the project user pursuant to Article II of the Tax Reform Code of 1971 from activities as a result of the project. (iii) The expected net increase in personal income tax withheld by the project user as an employer pursuant to Article III of the Tax Reform Code of 1971 from activities as a result of the project. (2) The Office of the Budget may accept, reject or adjust the estimate of the amount of tax remitted or to be remitted to the Commonwealth by the project user from activities resulting from the project. (Nov. 30, 2004, P.L.1708, No.218, eff. imd.) 2004 Amendment. Act 218 deleted subsec. (a)(7). Cross References. Section 3405 is referred to in section 3406 of this title.

12 Pa.C.S. § 3406 Approval.

(a) Financial approval.--Upon being satisfied that all requirements have been met, the Secretary of the Budget shall establish a maximum annual amount for the grant and shall notify the department and the Department of Revenue. The annual amount established shall be based upon the review made in section 3405(b) (relating to review) and the annual debt service of the project. (b) Grant approval.--Upon receipt of the notification required in subsection (a), the department may approve the application and award the applicant a grant in an annual amount not to exceed the amount established by the Secretary of the Budget. Prior to providing grant funds to the applicant, the department shall enter into a contract with the applicant and the project user. The contract shall include provisions which do all of the following: (1) Specify the base amount of the grant per year. (2) Specify the total number of years that grant funds may be provided to the applicant and the year in which the grant may commence, including an option to defer commencement of the grant to any date up to the date upon which the project is completed and operations have commenced. If the applicant is an industrial enterprise, a retail enterprise, a research and development enterprise or a manufacturer, the number of years may not exceed ten years. If the applicant is a hospital, convention center or hotel establishment, the number of years may not exceed 20 years. (3) If the grant will be awarded for more than four years, establish the procedure for the award of the grant after year four. If the department, the Secretary of the Budget and the Department of Revenue determine that the tax revenues specified in section 3405(b) during the fifth year and each succeeding year thereafter are anticipated to be equal to or exceed the amount of the grant awarded during the previous year, the department shall award the grant in the amount of the original grant as determined under this section. If the department, the Secretary of the Budget and the Department of Revenue determine that the tax revenues specified in section 3405(b) during the fifth year and each year thereafter will not equal or exceed the amount of the grant for the previous year, the department shall award a grant that is no less than the anticipated tax revenue specified in section 3405(b) and no more than the amount of the original grant awarded under this section. (4) Require the applicant to use the grant to pay debt service for the project and to repay all or any portion of a grant if the applicant fails to use the grant to pay debt service. (5) Specify that the annual amount of the grant in any one year may not exceed the annual amount of the debt service on the project for that year. (6) If the grant in any one year exceeds the annual payment on debt service in that year, require the applicant to repay the amount of the grant for that year which exceeds the payment on debt service for that year. (7) (Deleted by amendment). (8) Require the project user to pay to the applicant a sum equal to any payments received by the project user from third parties for infrastructure which is part of the project during the period which the applicant is receiving a grant from the department. Any payment received by the applicant under this paragraph must be applied to payment of the debt service for the project. (9) Require the applicant to satisfactorily demonstrate that the full amount of annual debt service is paid for the project, regardless of the amount of the grant received. (10) Require the project user to use the project for the period of time the applicant is receiving grants under this chapter and to repay all or any portion of a grant if the project user fails to use the project for the period of time the applicant is receiving grants. (11) Require the project user to timely pay all Commonwealth and local taxes and fees that are then due and owing. A local government unit as defined under 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing) or an issuing authority may enter into an agreement or adopt an ordinance or resolution to permit the local government unit or issuing authority to pay, waive, abate, settle, compromise or reimburse any local tax, fee or other imposition applicable to a project user imposed by any local government unit or issuing authority. The agreement, ordinance or resolution shall not affect the eligibility of an applicant or a project to receive a grant under this chapter. (12) Require the department to approve any change of use of a project during the period in which the applicant is receiving a grant from the department. The department may not unreasonably withhold its consent to a change of use. (c) Limitations.-- (1) If sufficient funds are not appropriated to cover the anticipated cost of the grants awarded in any given fiscal year, the department shall prorate payments to issuing authorities. (2) For grants renewed in accordance with subsection (b)(3), grants may not exceed the incremental growth in revenues realized by the Commonwealth from the tax sources identified in section 3405(b). (3) Grants may not be used to pay debt service for projects directly related to gaming. (Nov. 30, 2004, P.L.1708, No.218, eff. imd.; May 11, 2006, P.L.167, No.42, eff. imd.) 2006 Amendment. Act 42 amended subsec. (b). Section 4 of Act 42 provided that the amendment of section 3406 shall apply retroactively to July 1, 2004.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=12Fetched: 10/16/2026