HB 151 — An Act amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, in Small Business First, further providing for definitions; in machinery and equipment loans, further providing for definitions and for reporting and inspection; in Pennsylvania Industrial Development Program, further providing for definitions; providing for economic entertainment enhancement program; and making a related repeal.

HOUSEPRINTER'S COMMITTEE ON APPROPRIATIONS FISCAL NOTE HOUSE BILL NO.

151115 PRINTERSTHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1571151 PRIME2017 SPONSOR:INTRODUCED BY CUTLER, DOWLING, LONGIETTI, WHEELAND, BAKER, MILLARD, A.

CutlerHARRIS, COSTMENTZER /AND (SAVINGS)D. FUND FY 2016/17 FY 2017/18 General Fund $0 $0 Commonwealth Funds * $0 $0 *Includes the Machinery and Equipment Loan Fund, Small Business First Fund, and Pennsylvania Industrial Development Authority Funds SUMMARY:

AmendsCOSTA, JANUARY 23, 2017 REFERRED TO COMMITTEE ON FINANCE, JANUARY 23, 2017 AN ACT Amending Title 12 (Commerce and Trade) toof definethe “agent”;Pennsylvania Consolidated Statutes, in Small Business First, further providing for definitions;

in machinery and toequipment transferloans, thefurther Concertproviding Rehearsalfor definitions and Tourfor Taxreporting Creditand toProgram, Titlefurther 12.providing for definitions.

ThisDevelopment legislationThe wouldGeneral takeAssembly effectof immediately.the Commonwealth of Pennsylvania hereby enacts as follows:

ANALYSIS:Section 1.

ThisSections legislation2302 amends Chapter 23 (Small Business First), Chapter 29 (Machinery and Equipment2902 Loans) and Chapter 30 (Pennsylvania Industrial Development Program) of Title to12 provide a definition of the termPennsylvania “agent”Consolidated thatStatutes includesare theamended Departmentby ofadding Communitydefinitions andto Economicread: Development (DCED).

This§ will2302. give DCED and its employees the ability to conduct the required inspections and monitoring programs managed by the Pennsylvania Industrial Development Authority (PIDA).

TheDefinitions. legislation amends Chapter 29 of Title 12 to make clarifications to the inspection process for businesses that apply for and receive machinery and equipment loans.

Specifically,The thesefollowing clarificationswillnowallowauthorizedemployeesofPIDAoritsagenttoinspecttheplant,bookswords and recordsphrases ofwhen used in this chapter shall have the businessmeanings enterprise.given to them in this section unless the context clearly indicates otherwise:

This"Agent." legislationThe alsoterm createsincludes the EntertainmentDepartment Economic Enhancement Program and transfers the Concert Rehearsal and Tour Tax Credit (Article XVII-D, Subarticle C) from the Tax Reform Code of 1971Community into Title 12 and includesEconomic severalDevelopment. technical changes, which include:

1)* conforming* the* language§ of2902. the tax credit to make it uniform with Title 12 as opposed to the Tax Reform Code;

2)Definitions. allowing expenses which are contractually required to be incurred to count as “Qualified Concert Rehearsal and Tour Expenses”;

3)The permittingfollowing words and phrases when used in this chapter shall have the taxmeanings creditgiven to bethem soldin ;this section unless the context clearly indicates otherwise:

and"Agent." 4)The changingterm theincludes annual cap on the taxDepartment credit from a dollar amount ($4 million) to the equivalent cap on the number of toursCommunity receivingand assistanceEconomic (5Development. tours x $800,000/tour).

FISCAL* IMPACT:* * Section 2.

ThisSection legislation2908(a) wouldof haveTitle no12 adverseis fiscalamended impactto onread: Commonwealth funds.

The§ annual2908. aggregate tax credit cap of $4 million provided for in the Concert Rehearsal and Tour Production Tax Credit is maintained in the Entertainment Economic Enhancement Program but with some modification.

PREPAREDReporting BY:and inspection.

Tim(a) RodrigoInspection.--Each Housebusiness Appropriationsenterprise Committeewhich (R)applies DATE:for or receives assistance under this chapter[, upon reasonable request of the authority, shall permit duly authorized employees of the department or the authority] shall, upon request, permit authorized employees of the authority or its agent to inspect the plant, books and records of the business enterprise.

June* 5,* 2017* EstimatesSection are3. calculated using the best information available.

ActualSection costs3002 andof revenueTitle impact12 incurredis mayamended varyby fromadding estimates.a definition to read:

§ 3002.

Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Agent." The term includes the Department of Community and Economic Development.

* * * Section 4.

This act shall take effect immediately.

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