PRINTER'S NO. 3335
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2425
Session of
2024
INTRODUCED BY DONAHUE, KAUFER, McNEILL, SCHLOSSBERG, SIEGEL,
T. DAVIS, PROKOPIAK, HADDOCK, HILL-EVANS, BOYD, SANCHEZ,
CERRATO, VENKAT AND CIRESI, JUNE 18, 2024
REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 18, 2024
AN ACT
Providing for the funding of the development of comprehensive
regional plans, competitive sites for businesses to locate or
expand within this Commonwealth and competitive industrial
and nonindustrial sites by assisting in the reduction of
development risk; establishing the Pennsylvania Strategic
Investments to Enhance Sites (PA SITES) Program, the PA SITES
Fund and the PA SITES Debt Service Restricted Account; and
conferring powers and duties on the Department of Community
and Economic Development Pennsylvania Economic Development
Financing Authority.
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 Pennsylvania
Strategic Investments to Enhance Sites (PA SITES) Program Act.
Section 2. 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:
"Authority." The Pennsylvania Economic Development Financing
Authority.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
"Bond." A type of revenue obligation, including a bond or
series of bonds, note, certificate or other instrument, issued
by the authority for the benefit of the department under this
act.
"Bond administrative expenses." Expenses incurred to
administer bonds issued by the authority under this act as
provided under the Financing Law or as otherwise necessary to
ensure compliance with Federal or State law.
"Bond obligations." The principal of a bond and any premium
and interest payable on a bond issued by the authority under
this act, together with any amount owed under a related credit
agreement or a related resolution of the authority authorizing a
bond, including refunding bonds.
"Credit agreement." A loan agreement, a revolving credit
agreement, an agreement establishing a line of credit, a letter
of credit or another agreement that enhances the marketability,
security or creditworthiness of a bond.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Economic development organization." A nonprofit
organization whose mission is to advance the economic
development needs of a locality or region.
"Eligible applicant." One of the following entities located
within this Commonwealth:
(1) a municipality;
(2) an economic development organization;
(3) a redevelopment authority;
(4) a municipal authority;
(5) an industrial development agency; or
(6) a for-profit organization.
20240HB2425PN3335 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Eligible projects." Any of the following:
(1) The development of a comprehensive real estate plan.
(2) The development of competitive industrial sites that
provide for the relocation or expansion of businesses to or
within this Commonwealth.
(3) The development of nonindustrial sites or any other
project the department deems eligible.
"Financing Law." The act of August 23, 1967 (P.L.251,
No.102), known as the Economic Development Financing Law.
"Fund." The PA SITES Fund established under section 6.
"Industrial development agency." As defined under section 3
of the act of May 17, 1956 (1955 P.L.1609, No.537), known as the
Pennsylvania Industrial Development Authority Act.
"Municipal authority." A body corporate and politic created
under 53 Pa.C.S. Ch. 56 (relating to municipal authorities); the
former act of June 28, 1935 (P.L.463, No.191), known as the
Municipality Authorities Act of one thousand nine hundred and
thirty-five; or the former act of May 2, 1945 (P.L.382, No.164),
known as the Municipality Authorities Act of 1945.
"Municipality." A county, city, borough, incorporated town,
township or home rule municipality.
"Office." The Office of the Budget of the Commonwealth.
"Program." The Pennsylvania Strategic Investments To Enhance
Sites Program or PA SITES Program established under section 8.
"Redevelopment authority." A public body and a body
corporate and politic created and organized under the act of May
24, 1945 (P.L.991, No.385), known as the Urban Redevelopment
Law.
Section 3. Bond issuance.
(a) Declaration of policy.--The General Assembly finds and
20240HB2425PN3335 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
declares that funding the development of comprehensive regional
plans, competitive sites for businesses to locate or expand
within this Commonwealth and competitive industrial and
nonindustrial sites by assisting in reduction of development
risk, including interest, through the authority, is in the best
interest of this Commonwealth.
(b) Authority.--Notwithstanding any other law, the following
shall apply:
(1) The department, with the prior approval of the
office, may be a project applicant under the Financing Law
and may apply to the authority for money from the program.
(2) The authority may issue bonds under the Financing
Law, consistent with this act, to finance the program which
will provide funds for regional planning efforts as well as
the redevelopment, reuse or revitalization of a previously
utilized site for future use by businesses or others or the
development of an undeveloped site in this Commonwealth.
(c) Debt or liability.--
(1) Bonds issued under this act shall not be a debt or
liability of the Commonwealth and shall not create or
constitute any indebtedness, liability or obligation of the
Commonwealth.
(2) Bond obligations and bond administrative expenses
shall be payable solely from money pledged or available for
repayment as authorized under this act. This paragraph shall
include the proceeds of the issuance of bonds.
(3) Each bond shall contain on its face a statement
that:
(i) the authority is obligated to pay the principal
or interest on the bonds only from the money pledged or
20240HB2425PN3335 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
available for repayment as authorized under this act;
(ii) neither the Commonwealth nor any political
subdivision is obligated to pay the principal or
interest; and
(iii) neither the full faith and credit of the
Commonwealth or any political subdivision is pledged to
the payment of the principal or interest on the bonds.
Section 4. Criteria for bond issuance.
(a) Issuance.--Bonds may be issued in one or more series,
and each series may finance loans and reimbursement grants.
(b) Terms.--
(1) The department, with the approval of the office,
shall specify in the department's application to the
authority:
(i) the maximum principal amount of the bonds for
each bond issue; and
(ii) the maximum term of the bonds consistent with
applicable laws.
(2) The total aggregate principal amount for all bonds
issued under this act may not exceed $500,000,000.
(3) The term of the bonds issued under this act may not
exceed 30 years from the respective date of original
issuance, excluding refunding bonds.
Section 5. Issuance of bonds, pledge, service agreement and
security.
(a) Issuance.--The authority shall issue bonds upon approval
of an application by the department. Bonds issued under this act
shall be subject to the provisions of the Financing Law, unless
otherwise specified in this act.
(b) Revenues pledged.--The Commonwealth pledges and
20240HB2425PN3335 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
appropriates on a continuing basis the general revenues
collected under Article II of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, for payment of bond
obligations and bond administrative expenses for bonds or
refunding bonds issued under this act.
(c) Service agreement authorized.--
(1) The authority and the department may enter into an
agreement or service agreement to effectuate this act, under
which the department shall agree to pay the bond obligations
and bond administrative expenses to the authority in each
fiscal year that the bonds or refunding bonds are outstanding
in amounts sufficient to timely pay in full the bond
obligations, bond administrative expenses and any other
financing costs due on the bonds issued for the purposes
specified in this act.
(2) The department's payment of bond obligations, bond
administrative expenses and other financing costs due on the
bonds as service charges under an agreement or service
agreement shall be subject to and dependent upon the
appropriation of funds by the General Assembly to the
department for payment of the service charges. The service
agreement may be amended or supplemented by the authority and
the department in connection with the issuance of a series of
bonds or refunding bonds authorized under this section.
(d) Security.--Bond obligations and bond administrative
expenses may be secured for the benefit of the holders of the
bonds and the obligees under credit agreements or the agreements
under subsection (c), by pledge of a security interest in the
following:
(1) Money relating to the bonds held on deposit in any
20240HB2425PN3335 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
other fund or account under an instrument or agreement
pertaining to the bonds, including bond reserves and interest
income on the money.
(2) The security provided under this subsection shall
not apply to money in any fund relating to arbitrage rebate
obligations.
Section 6. Establishment of fund, sale of bonds and deposit.
(a) Establishment of fund.--The PA SITES Fund is established
in the State Treasury as a restricted account.
(b) Sale of bonds.--The authority shall offer the bonds or
each series of bonds, including refunding bonds, for sale by a
public, competitive sale or a negotiated sale based on the
authority's determination of which method will produce the most
benefit to the Commonwealth.
(c) Deposit of bond proceeds.--The net proceeds of the bonds
or each series of bonds, other than refunding bonds, exclusive
of costs of issuance, reserves and any other financing charges,
shall be deposited into the fund.
(d) Deposit of repayments and other money.--Money received
from the recapture of grants or as loan repayments received
under the program or money otherwise made available to the
program shall be deposited into the fund and made available for
additional grants and loans under section 8.
Section 7. Use of bond proceeds.
(a) Order.--Upon issuance of bonds, the proceeds shall be
applied in the following order:
(1) pay the costs of issuance of the bonds, including
any refunding bonds;
(2) fund bond reserves;
(3) refund outstanding bonds, if applicable;
20240HB2425PN3335 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(4) make any other deposit required under any instrument
or agreement pertaining to the bonds; and
(5) deposit the balance into the fund.
(b) Application of balance.--The bond proceeds deposited
under subsection (a)(5) are appropriated to and shall be
expended by the department as follows:
(1) For the department to make program grants and loans
to approved eligible applicants under section 8.
(2) For the expenses of the department in the
administration of the program, not to exceed 0.02% of the
bond proceeds in the aggregate over the life of the program.
Section 8. PA SITES Program.
(a) Establishment, administration and purpose.--
(1) The Pennsylvania Strategic Investments To Enhance
Sites Program or PA SITES Program is established in the
department.
(2) The department shall administer the program to
provide grants and loans to approved eligible applicants for
eligible projects.
(b) Eligible projects.--The department may award a grant or
loan to an approved eligible applicant for the following costs
of an eligible project:
(1) Acquisition of land and buildings, rights of way and
easements.
(2) The construction or rehabilitation of one or more of
the following:
(i) Storm water drainage systems.
(ii) Energy infrastructure that supports the
generation and distribution of power and any end uses
necessitated by the site, including, but not limited to,
20240HB2425PN3335 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
heating, cooling or energy used as an input for
manufacturing.
(iii) Sanitary sewer systems, including, but not
limited to, the construction or repair of sewage
collection lines and sewage treatment facilities,
including proration of costs for needed off-site
facilities.
(iv) Water supply facilities, including, but not
limited to, construction or repair of ground water
sources, water lines and water storage and treatment
facilities, including proration of costs for needed off-
site facilities.
(v) Transportation facilities directly affecting the
site of the proposed development, including:
(A) on-site and off-site road improvements;
(B) traffic signals;
(C) parking facilities;
(D) sidewalks;
(E) bridges;
(F) rails, including, but not limited to, the
construction or rehabilitation of spurs, signals,
crossings and intermodal facilities; and
(G) port-related facilities, including, but not
limited to, dredging, docking facilities, bulkheads
and intermodal facilities.
(vi) Facilities for the transmission of information,
including, but not limited to, telephone lines, fiber-
optic telecommunications lines and towers for wireless
communications.
(vii) On-site amenities, such as recreational areas,
20240HB2425PN3335 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
which are reasonably expected to increase the value or
attractiveness of the site.
(3) Demolition of existing structures at the site and
removal of abandoned foundations at the site.
(4) The department may provide grant or loan money for
the rehabilitation of existing on-site buildings if the
eligible applicant can demonstrate that the potential for
site reuse will be greater with the existing structure or
structures.
(5) The clearing and preparation of land for
construction.
(6) Environmental site assessment and remediation.
(7) Related engineering, design and inspection costs.
(8) Signage, landscaping and street lighting.
(9) Administrative costs, permit fees, legal costs and
expenses for other professional services.
(10) Costs associated with the development of a
comprehensive real estate plan.
(11) Other costs associated with the proposed eligible
project as determined by the department.
(c) Department responsibilities.--The department shall:
(1) Develop written guidelines for the administration of
the program to be published on the department's publicly
accessible Internet website.
(2) Develop a certification program which verifies the
site readiness of marketed sites across this Commonwealth.
(3) Develop a written competitive application and
application process for the program. The grant and loan
processes and application shall be available on the
department's publicly accessible Internet website.
20240HB2425PN3335 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(4) Develop a grant agreement for the program that
includes provisions requiring an eligible applicant to return
any unused or improperly used grant money to the
Commonwealth.
(5) Develop loan documentation for the program
consistent with this act.
(d) Evaluation criteria.--The department shall evaluate
program applications on the following criteria:
(1) The eligible applicant's need for program funding
for the eligible project.
(2) The feasibility of the proposed project, including
whether the eligible applicant can complete the project with
the available funding, including the proposed non-State
source matching funds and the program grant or loan.
(3) The marketability of the site once the site has been
fully developed.
(4) The need for developed business-ready sites in the
community or surrounding area.
(5) The relative impact the project will have on the
community, region and this Commonwealth.
(6) The increased employment opportunities resulting
from the project in the community or the surrounding area.
(7) The amount and sources of non-State source matching
money proposed to be invested in the project by the eligible
applicant.
(8) The eligible applicant's demonstration of site
control.
(9) The proposed time frame for commencement and
completion of the project.
(10) Identification of the project as a priority
20240HB2425PN3335 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
investment in a local or regional economic development plan.
(11) Whether the eligible project is part of a
comprehensive municipal plan or county plan and is zoned for
development at the time of application.
(12) Other criteria specified by the department in the
program application that the department deems necessary to
conduct a full evaluation of program applications.
Section 9. Payment of bond obligations and bond administrative
expenses.
(a) PA SITES Debt Service Restricted Account.--The PA SITES
Debt Service Restricted Account is established in the General
Fund for the purpose of paying bond obligations due on bonds
issued by the authority under this act and related bond
administrative expenses due each fiscal year, including
refunding bonds. Money deposited into the restricted account is
appropriated to the department for the payment of bond
obligations due on the bonds issued under this act, including
refunding bonds, and bond administrative expenses of the
department or the authority in connection with the bonds.
(b) Transmission of amount to General Assembly.--
(1) At the same time that the Governor submits the
annual State budget and program and financing plan to the
General Assembly under section 613 of the act of April 9,
1929 (P.L.177, No.175), known as The Administrative Code of
1929, the Governor shall inform the General Assembly of the
amount of general revenues of the Commonwealth collected
under Article II of the act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971, that must be
transferred to the PA SITES Debt Service Restricted Account
in the next ensuing fiscal year for the full payment of bond
20240HB2425PN3335 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
obligations and bond administrative expenses due during that
fiscal year.
(2) The pledge of Commonwealth money is subordinate to
any pledge of money collected under Article II of the Tax
Reform Code of 1971 before the effective date of this section
for the outstanding indebtedness of other bonds issued by the
Commonwealth or one of its authorities or instrumentalities.
(c) Annual transfer.--By September 30 of the first fiscal
year in which bond obligations and bond administrative expenses
are due and by each September 30 thereafter for the term of the
bonds, including refunding bonds, the State Treasurer shall
transfer to the PA SITES Debt Service Restricted Account from
the general revenues of the Commonwealth collected under Article
II of the Tax Reform Code of 1971 the amount reported by the
Governor to the General Assembly under subsection (b). The State
Treasurer and the Secretary of the Budget shall consider General
Fund cash flow in determining when to make the transfer.
Section 10. Commonwealth not to impair bond-related
obligations.
The Commonwealth shall not do any of the following while each
bond or series of bonds, together with interest on the bonds,
are outstanding and have not been fully met and discharged:
(1) Limit or alter the rights and responsibilities of
the authority or the department under this act, including the
responsibility to:
(i) pay bond obligations and bond administrative
expenses; and
(ii) comply with any other instrument or agreement
pertaining to bonds.
(2) Alter or limit the service agreement or security
20240HB2425PN3335 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
interest.
(3) Impair the rights and remedies of the holders of
bonds.
Section 11. No personal liability.
The members, directors, officers and employees of the
department, the office and the authority shall not be personally
liable as a result of good faith exercise of the rights and
responsibilities granted under this act.
Section 12. Annual report.
No later than March 1 of the year following the first full
year in which bonds have been issued under this act and for each
year thereafter in which bond obligations existed in the prior
year, the department shall submit an annual report to the chair
and minority chair of the Appropriations Committee of the
Senate, the chair and minority chair of the State Government
Committee of the Senate, the chair and minority chair of the
Appropriations Committee of the House of Representatives and the
chair and minority chair of the State Government Committee of
the House of Representatives providing all data available on
bonds issued or existing in the prior year. The report shall
include existing and anticipated bond principal, interest and
administrative costs, revenue, repayments, refinancing, overall
benefits to counties and any other relevant data, facts and
statistics that the department believes necessary in the content
of the report.
Section 13. Expiration.
The authorization to issue bonds, other than refunding bonds,
under this act shall expire two years from the effective date of
this section.
Section 14. Effective date.
20240HB2425PN3335 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
This act shall take effect in 60 days.
20240HB2425PN3335 - 15 -
1