Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 8813-C. Restrictions

(1) Payment of debt service on bonds issued or refinanced for the acquisition, development, construction, including related infrastructure and site preparation, reconstruction, renovation or refinancing of a facility in the zone and normal and customary fees for professional services associated with the issuance or refinance of the bonds.

(1.1) Payment of debt service on bonds issued or refinanced to establish a revolving fund that will provide financial assistance in the form of a grant or a loan to a qualified business acquiring property for the business, constructing a new facility, reconstructing or renovating an existing facility or acquiring new equipment to be used by the qualifying business in a zone.

(1.2) Expired June 30, 2021, pursuant to 2020, Nov. 3, P.L. 1074, No. 107, § 2.

(2) Acquisition, development, construction, including related infrastructure and site preparation, reconstruction, renovation or refinancing of all or a part of a facility.

(3) Replenishment of amounts in debt service reserve funds established to pay debt service on bonds.

(4) Employment of an independent auditing firm to perform the duties under section 1807-C(c).   2

(5) Improvement or development of all or part of a zone.

(6) Improvement projects, including fixtures and equipment for a facility owned, in whole or in part, by a public authority.

(7) Payment or reimbursement of reasonable administrative, auditing and compliance services required by this article.  Reasonable administrative costs may not exceed 5% of the money transferred under section 1812-C.  For purposes of this paragraph, professional services shall not be considered administrative costs.

(1) Money transferred under section 1812-C may not be utilized for maintenance or repair of a facility.

(2) Paragraph (1) shall not apply for the period of April 1, 2020, through June 30, 2021.

(1) Except as set forth in paragraph (4) or (5), for the first five calendar years of the zone designated after July 1, 2024, if the amount of money transferred to the fund under sections 1811-C(c) and 1812-C   3 in any one calendar year exceeds the money utilized, budgeted or appropriated by official resolution of the contracting authority under this section in that calendar year, the contracting authority may carry forward any excess up to a total sum of $3,000,000 for the five-year calendar period.  For the sixth calendar year and each calendar year thereafter, if the amount of money transferred to the fund under sections 1811-C(c) and 1812-C in any one calendar year exceeds the money utilized, budgeted or appropriated by official resolution of the contracting authority under this section in that calendar year, the contracting authority shall submit by April 15 following the end of the calendar year any money not utilized, budgeted or appropriated by official resolution of the contracting authority to the State Treasurer for deposit into the General Fund.

(2) At the time of submission to the State Treasurer, the contracting authority shall submit to the State Treasurer, the office and the department a detailed accounting of the calculation resulting in the excess money.

(3) The excess money shall be credited to the contracting authority and applied to the amount required to be repaid under section 1812-C(c)(5) until there is full repayment.

(4) Paragraph (1) does not apply to money utilized in a pilot zone provided the excess money is used in accordance with subsection (a).

(5) Other than a zone described in paragraph (1) or (4), for a zone designation prior to July 1, 2024, if the amount of money transferred to the fund under sections 1811-C(c) and 1812-C in any one calendar year exceeds the money utilized, budgeted or appropriated by official resolution of the contracting authority under this section in that calendar year, the contracting authority shall submit any money not utilized, budgeted or appropriated by official resolution to the State Treasurer for deposit into the General Fund by April 15 of the following calendar year.

(1) The amount of money transferred from the fund utilized for the acquisition, development, construction, including related site preparation and infrastructure, reconstruction or renovation of facilities, or normal and customary fees for professional services shall be matched by private, Federal or local money at a ratio of five fund dollars to one private, Federal or local dollar.  The contracting authority shall verify the private, Federal or local match for a project at the time of the bond and report proof of the match to the agencies.  All of the following shall be deemed private money:

(1.1) Private, Federal or local dollars invested in any single year or multiple years may be amortized over the term of the private or public financing provided to the project in order to meet the matching fund ratio of five fund dollars to one private, Federal or local dollar invested in the project.

(2) By April 1 following the baseline year and for each year thereafter, the contracting authority shall file an annual report with the Department of Community and Economic Development, the office and the department that contains a detailed account of the fund money expenditures and the private, Federal or local money expenditures and a calculation of the ratio in paragraph (1) for the prior calendar year.

(3) If it is determined that insufficient private, Federal or local money was utilized under paragraph (1), the amount of fund money utilized under paragraph (1) in the prior calendar year shall be deducted from the next transfer of the fund.