Bill Text: PA HB942 | 2009-2010 | Regular Session | Introduced

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Bill Title: Establishing the Regional Efficiency Development Incentive Program; providing for powers and duties of the Department of Community and Economic Development; and establishing the Regional Efficiency Development Incentive Fund.

Spectrum: Moderate Partisan Bill (Democrat 20-6)

Status: (Introduced - Dead) 2009-03-17 - Referred to COMMERCE [HB942 Detail]

Download: Pennsylvania-2009-HB942-Introduced.html

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PRINTER'S NO. 1080
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 942 Session of2009
INTRODUCED BY YUDICHAK, BOYD, BRENNAN, BUXTON, CALTAGIRONE, CARROLL, DePASQUALE, FAIRCHILD, FLECK, FRANKEL, FREEMAN, GIBBONS, GRUCELA, K. SMITH, MANN, MUNDY, PALLONE, SAYLOR, SCAVELLO, SEIP, SIPTROTH, SOLOBAY, STABACK, WALKO AND WHITE, MARCH 17, 2009
REFERRED TO COMMITTEE ON COMMERCE, MARCH 17, 2009
AN ACT
Establishing the Regional Efficiency Development Incentive
Program; providing for powers and duties of the Department of
Community and Economic Development; and establishing the
Regional Efficiency Development Incentive Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Regional
Efficiency Development Incentive Act.
Section 2. Declaration of policy.
The General Assembly finds and declares as follows:
(1) One of the most effective ways to reduce property
taxes is through the regionalization, consolidation or
sharing of services by political subdivisions.
(2) Before decisions are made by local officials
concerning which services to regionalize or share and with
which partners to enter into shared services agreements,
regional service or consolidation opportunities need to be
studied and evaluated.
(3) It is a valid public purpose to establish a program
to provide State aid in the form of loans and grants to
political subdivisions to assist them in making decisions
concerning the most efficient ways to regionalize or share
various services and to provide funding for one-time costs
associated with reaching shared services, regional service or
consolidation agreements for the benefit of taxpayers.
Section 3. 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.
"Political subdivision." Any county, city, borough,
incorporated town, township, school district, vocational school
district and county institution district.
"Regional Efficiency Development Incentive Program" or "REDI
Program." The program established under section 4.
"Regional service agreement." An agreement entered into by a
political subdivision in accordance with 53 Pa.C.S. Pt. III
Subpt. D (relating to area government and intergovernmental
cooperation) or any other agreement between political
subdivisions that is permitted by law.
"Secretary." The Secretary of Community and Economic
Development of the Commonwealth.
Section 4. Regional Efficiency Development Incentive Program.
(a) Establishment.--The Regional Efficiency Development
Incentive Program is established in the department.
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(b) Eligibility.--A political subdivision that plans to
study or implement a regional service agreement may apply to the
department for grants or loans to study regional service or
consolidation opportunities and to fund one-time start-up costs
of regional or consolidated services.
(c) Consultation.--The secretary shall consult with the
Secretary of Education with regard to school districts and
vocational school districts in the administration of the REDI
Program.
(d) Application guidelines.--The department shall develop
and provide guidelines and procedures for the submission of REDI
Program grant and loan applications.
(e) Funding for studies.--In providing funding for regional
service agreement studies, the department:
(1) May require local matching funds, as determined by
the department, for a study if the department finds that the
political subdivision has the financial resources to provide
matching funds.
(2) May not require local matching funds for
consolidation studies that are permitted by law.
(f) Funding for start-up costs.--The following shall apply:
(1) A political subdivision may apply for financial
assistance for the one-time start-up costs necessary to
implement a regional service agreement. Costs that may be
financed through the issuance of debt or capital lease
agreements shall be excluded from this program.
(2) The department may set limits on aid awards and
negotiate the amount, payment schedule and other terms of the
grant or loan agreements to ensure that the implementation of
a regional service agreement is cost effective and in the
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public interest.
(g) Technical support.--The department may provide technical
support to assist political subdivisions in applying for grants
or loans for studying regional service agreements.
Section 5. Regional Efficiency Development Incentive Fund.
The Regional Efficiency Development Incentive Fund is
established within the State Treasury as a nonlapsing revolving
account which shall receive moneys as may be credited to it, the
repayment of loans made from the fund and any other moneys as
may be appropriated to the fund from time to time. Moneys in the
fund are hereby appropriated on a continuing basis to the
department for the purposes of this act.
Section 40. Regulations.
The department shall promulgate rules and regulations
necessary to effectuate the purposes of the REDI Program.
Section 41. Effective date.
This act shall take effect in 60 days.
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