Bill Text: PA HB1557 | 2009-2010 | Regular Session | Introduced


Bill Title: Providing for municipal service grants and for powers and duties of the Department of Community and Economic Development; and making an appropriation.

Spectrum: Moderate Partisan Bill (Democrat 7-2)

Status: (Introduced - Dead) 2009-05-29 - Referred to LOCAL GOVERNMENT [HB1557 Detail]

Download: Pennsylvania-2009-HB1557-Introduced.html

  

 

    

PRINTER'S NO.  1932

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1557

Session of

2009

  

  

INTRODUCED BY GIBBONS, HUTCHINSON, KULA, MAHONEY, McILVAINE SMITH, SIPTROTH, STURLA AND YOUNGBLOOD, MAY 29, 2009

  

  

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 29, 2009  

  

  

  

AN ACT

  

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Providing for municipal service grants and for powers and duties

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of the Department of Community and Economic Development; and

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making an appropriation.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Short title.

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This act shall be known and may be cited as the Municipal

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Service Grant Act.

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Section 2.  Definitions.

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The following words and phrases when used in this act shall

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have the meanings given to them in this section unless the

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context clearly indicates otherwise:

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"Department."  The Department of Community and Economic

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Development.

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"Host municipality."  The municipality where the majority of

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tax-exempt properties owned by a university within the State

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System of Higher Education lie.

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"Impacted municipality."  The municipality which provides the

 


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majority of primary municipal services, such as police, fire

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protection and code enforcement to the off-campus student

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population of the university within the State System of Higher

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Education.

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"Real estate tax millage rate."  The millage rate designated

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by a municipality for use on a university's tax-exempt property.

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"University's tax-exempt property."  The term includes any

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tax-exempt properties used by a university within the State

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System of Higher Education that are owned by the State System of

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Higher Education, the Commonwealth, a university or a foundation

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formed by the university.

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Section 3.  Municipal Service Grants.

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Beginning with the 2008-2009 fiscal year and for each fiscal

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year thereafter, the department shall make payments in the form

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of grants for the purpose of reimbursing those municipalities

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which provide primary municipal services to universities within

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the State System of Higher Education.

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Section 4.  Reimbursable expenses.

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Grants shall be awarded in accordance with section 5 and

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shall be used to reimburse municipalities for all of the

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following:

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(1)  The cost of providing primary municipal services to

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a university within the State System of Higher Education.

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(2)  The loss of tax revenue incurred by the presence of

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tax-exempt properties owned by a university within the State

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System of Higher Education.

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Section 5.  Distribution formula.

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Grants awarded under this act shall be distributed to each

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municipality according to the following formula, and the data

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utilized in the formula for each municipality shall be reviewed

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every three years by the department:

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(1)  Divide the university's full-time equivalent student

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enrollment for the previous academic year by the total full-

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time equivalent student enrollment for the previous academic

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year of the State System of Higher Education, expressed as a

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percentage.

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(2)  Multiply the municipality's real estate tax millage

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rate by the assessed value of the university's tax-exempt

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property to determine the tax revenue actually lost. Then

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divide the result expressing the tax revenue lost by the sum

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of the total tax revenue lost by all the municipalities

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providing primary municipal services to universities within

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the State System of Higher Education, expressed as a

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percentage.

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(3)  To equally weight the two ratios, combine the

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percentage under paragraph (1) with the percentage under

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paragraph (2) and divide by two, expressed as a percentage.

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(4)  Multiply the result of paragraph (3) by the total

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amount of funding appropriated for the purposes of this act.

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Section 6.  Main campus in multiple municipalities.

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If a university's main campus is located in or immediately

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adjacent to more than one municipality, the grant for primary

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municipal services shall be allocated and distributed to each

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affected municipality proportionately. Proportionality shall be

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determined for the impacted municipality by the percentage

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determined under section 5(1) and for the host municipality by

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the percentage determined under section 5(2). Each factor

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separately shall then be divided by two. Separately, each result

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shall be multiplied by the total amount of funding appropriated

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for the purposes of this act. The department shall designate

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only one municipality as the host municipality and only one

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municipality as the impacted municipality for each regional

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State System of Higher Education university.

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Section 7.  Appropriation.

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The amount of $3,000,000 is hereby appropriated to the

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Department of Community and Economic Development for the fiscal

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year 2009-2010 to carry out the provisions of this act.

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Section 8.  Effective date.

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This act shall take effect immediately.

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