2012 Pennsylvania Consolidated Statutes
Title 12 - COMMERCE AND TRADE
Chapter 34 - Infrastructure and Facilities Improvement Program
Section 3406 - Approval

     § 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.