PRIOR PRINTER'S NO. 3596 PRINTER'S NO. 3628
No. 2559 Session of 2000
INTRODUCED BY HASAY, CALTAGIRONE, GORDNER, STABACK, BASTIAN, FLICK, BAKER, ROBERTS, KENNEY, GEIST AND SATHER, MAY 16, 2000
AS REPORTED FROM COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 5, 2000
AN ACT 1 Amending the act of July 2, 1993 (P.L.439, No.64), entitled "An 2 act creating the Ben Franklin/IRC Partnership and providing 3 for its powers; establishing the Ben Franklin/IRC Partnership 4 Fund; providing for certification of industrial resource 5 centers, for certification of Ben Franklin technology centers 6 and for certain transfers; and making repeals," further 7 providing for policy, for definitions, for the Ben 8 Franklin/IRC Partnership and Advisory Board, for industrial 9 resource centers, for technology centers, for certification, 10 for grants, for matching funds, for reporting, FOR REPORTS TO <-- 11 GENERAL ASSEMBLY, for transfer of functions and for 12 expiration. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Sections 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, <-- 16 16, 18 and 21 AND 16 of the act of July 2, 1993 (P.L.439, <-- 17 No.64), known as the Ben Franklin/IRC Partnership Act, are 18 amended to read: 19 Section 2. Legislative findings and policy. 20 (a) Findings.--The General Assembly finds as follows: 21 [(1) A growing base of successful, small-to-medium-sized 22 Commonwealth manufacturing companies is essential to the
1 economic strength and vitality of this Commonwealth. 2 (2) The existence and growth of small-to-medium-sized 3 Commonwealth manufacturing companies depends on the ability 4 of these companies to: 5 (i) Reorient management practices toward modern 6 manufacturing techniques and technologies. 7 (ii) Successfully compete in both domestic and 8 foreign markets. 9 (iii) Identify, bench mark and adopt the best and 10 most efficient practices and technologies. 11 (iv) Locate and hire a trained work force. 12 (3) There is a need to inform the body politic, the 13 press, the academic and business communities and the 14 population at large about the significance of a successful, 15 competitive United States manufacturing industry to the 16 quality of life, security and economic strength. 17 (4) There is a continuing need to promote, stimulate and 18 encourage within this Commonwealth basic and applied 19 scientific research and development and scientific and 20 technological education. 21 (5) University-based consortia between business, 22 universities and government provide these entities with the 23 advanced technology research and development, training and 24 education necessary to diversify this Commonwealth's economy 25 and thereby stimulate this Commonwealth's economic growth. 26 (6) The industrial resource centers were created to 27 support the modernization efforts of this Commonwealth's 28 small-to-medium-sized manufacturing companies through 29 collaborative initiatives and individual projects that apply 30 and deploy advanced manufacturing management and production 20000H2559B3628 - 2 -
1 philosophies and techniques in such areas as: 2 (i) Production, planning and inventory control. 3 (ii) Quality improvement. 4 (iii) Plant layouts. 5 (iv) Factory and office automation. 6 (v) Technology improvements. 7 (vi) Work force development and other training 8 programs. 9 (vii) Manufacturing strategies. 10 (7) The Ben Franklin technology centers were created to 11 build partnerships and provide direct assistance to help 12 firms develop and creatively apply techniques and related 13 practices to such activities as: 14 (i) Help companies to form and grow through the 15 development and commercialization of innovative products 16 and services. 17 (ii) Help manufacturers to develop and innovatively 18 apply new technologies and practices that make them more 19 competitive in the global market economy. 20 (iii) Facilitate and support consortia of private 21 companies, academic institutions and government agencies 22 to collaboratively advance the state of knowledge and 23 practices. 24 (iv) Facilitate and support the availability of 25 services and collaborative activities throughout this 26 Commonwealth to provide business and technical 27 assistance. 28 (v) Select firms with potential for growth and 29 facilitate and support collaborative activities and 30 individual initiatives designed to address the needs of 20000H2559B3628 - 3 -
1 manufacturing and technology-oriented companies for a 2 well-trained work force. 3 (b) Policy.-- 4 (1) It is hereby declared to be the policy of the 5 Commonwealth to promote the health, safety and general 6 welfare of its inhabitants through its Department of Commerce 7 by: 8 (i) The creation of the Ben Franklin/IRC 9 Partnership, which shall exist for the purpose of 10 promoting competitiveness of Commonwealth companies 11 through interaction of technology development, 12 modernization and training programs. 13 (ii) The certification of industrial resource 14 centers, which shall exist for the purpose of 15 strengthening the competitive position of small-to- 16 medium-sized Commonwealth manufacturing companies through 17 the promotion, demonstration and transmission of modern 18 manufacturing techniques and technologies. 19 (iii) The certification of Ben Franklin technology 20 centers, which shall exist for the purpose of 21 identifying, generating, developing and refining 22 technology innovation opportunities for Commonwealth 23 businesses.] 24 (1) A growing base of companies which leverage advanced 25 technology and innovation to achieve leading positions in 26 their markets and industries is essential to the economic 27 strength and vitality of this Commonwealth in the global, 28 knowledge-based economy. 29 (2) The ability of innovative, advanced technology 30 companies to thrive depends upon the Commonwealth fostering a 20000H2559B3628 - 4 -
1 strong entrepreneurial business environment with adequate and 2 appropriate people, technology and capital resources and the 3 collaborative capacity to link these elements together in 4 response to market opportunities. 5 (3) A growing base of productive and profitable small- 6 to-medium-sized manufacturing companies is essential to the 7 economic strength and vitality of this Commonwealth. 8 (4) The competitive success of Commonwealth companies 9 depends on the ability of each company to: 10 (i) identify, understand and serve demanding 11 domestic and foreign markets; 12 (ii) employ modern management methods in all aspects 13 of the enterprise; 14 (iii) educate, empower, reward, recruit and retain a 15 skilled work force; 16 (iv) select, implement and optimize the most 17 advanced technologies appropriate to the enterprise; 18 (v) perform as a resourceful supplier and responsive 19 customer; and 20 (vi) master the dynamic requirements for robust 21 participation in electronic business as information 22 technologies transform commerce. 23 (5) There is a need to inform the body politic, the 24 press, the academic and business communities and the 25 population at large about the significance of a successful, 26 competitive United States manufacturing industry and the 27 importance of an entrepreneurial environment to the quality 28 of life, security and economic strength. 29 (6) There is a continuing need to promote, stimulate and 30 encourage within this Commonwealth basic and applied 20000H2559B3628 - 5 -
1 scientific research and development; scientific and 2 technological education; an appropriate infrastructure to 3 support high risk, technology-oriented entrepreneurship; and 4 a dynamic, cooperative network of organizations dedicated to 5 deploying new technologies and methods to the industrial 6 foundation of this Commonwealth. 7 (7) Consortia and other forms of collaboration between 8 business, associations, universities, nonprofit research 9 institutes and government provide these entities with the 10 advanced technology research and development, training and 11 education, and deployment of technologies and techniques 12 necessary to diversify and grow the economy of this 13 Commonwealth. 14 (8) The industrial resource centers were created to 15 support the modernization efforts of this Commonwealth's 16 manufacturing companies through collaborative initiatives and 17 individual projects which apply and deploy advanced 18 manufacturing management and production philosophies and 19 techniques in such areas as: 20 (i) market analysis and development; 21 (ii) selection, implementation and optimization of 22 available technologies; 23 (iii) production planning and inventory control; 24 (iv) factory and office automation; 25 (v) quality assurance and improvement; 26 (vi) lean manufacturing; 27 (vii) supply chain development; 28 (viii) work force development; 29 (ix) enterprise management; and 30 (x) electronic business and information technology. 20000H2559B3628 - 6 -
1 (9) The Ben Franklin Technology Partners were created to 2 serve as the Commonwealth's key regional partner to reach out 3 to and assist companies and communities in identifying, 4 developing, adapting and implementing advanced technology and 5 innovation opportunities within an entrepreneurial business 6 environment. The Ben Franklin Technology Partners build 7 partnerships and provide direct assistance to help firms 8 develop and creatively apply techniques and related practices 9 through such activities as: 10 (i) Helping companies to form and grow through the 11 development and commercialization of innovative products 12 and services. 13 (ii) Helping manufacturers to develop and 14 innovatively apply new technologies and practices which 15 make them more competitive in the global market economy. 16 (iii) Facilitating and supporting consortia, 17 initiatives and strategies involving private companies, 18 academic institutions, government agencies and other 19 organizations to collaboratively advance the state of 20 knowledge and practices and the ability of communities to 21 support innovative, advanced technology companies. 22 (iv) Facilitating and supporting the availability of 23 services and collaborative activities throughout this 24 Commonwealth to provide business and technical 25 assistance. 26 (v) Selecting firms with potential for growth and 27 facilitating and supporting collaborative activities and 28 individual initiatives designed to address the needs of 29 manufacturing and technology-oriented companies for a 30 well-trained work force. 20000H2559B3628 - 7 -
1 (vi) Providing forms of risk and growth capital to 2 technology-based enterprises both directly and through 3 the support and creation of alternative funding 4 mechanisms. 5 (b) Policy.-- 6 (1) It is declared to be the policy of the Commonwealth 7 to promote the health, safety and general welfare of its 8 inhabitants through the department by: 9 (i) The creation of the partnership board, which 10 shall exist for the purpose of promoting, stimulating, 11 encouraging and coordinating programs, actions, services 12 and investments which advance the competitiveness of 13 Commonwealth companies in the global economy through 14 innovation; through an entrepreneurial business 15 environment; and through the interaction of technology 16 development, industrial modernization and work force 17 training programs. The partnership board shall be 18 responsible for directing policy development and 19 coordinating the activities of all of the industrial 20 modernization and technology-related programs in this 21 Commonwealth. 22 (ii) The certification of industrial resource 23 centers, which shall exist for the purpose of promoting 24 the competitiveness of Commonwealth manufacturing 25 companies through interaction of technology deployment, 26 market analysis, management modernization, work force 27 development and training programs. 28 (iii) The certification of the partners, which shall 29 serve as the Commonwealth's key regional partner to 30 foster an entrepreneurial environment and to grow 20000H2559B3628 - 8 -
1 communities of companies and institutions within their 2 regions which leverage advanced technologies and 3 innovation to achieve leading roles in their markets. 4 These purposes are hereby declared to be public purposes for 5 which public money may be spent. 6 (2) It is also the policy of the Commonwealth not to 7 duplicate or to mandate the delivery of technical and 8 professional economic development services currently being 9 provided or those which may be provided in the future by 10 other economic development organizations throughout this 11 Commonwealth. 12 Section 3. Definitions. 13 The following words and phrases when used in this act shall 14 have the meanings given to them in this section unless the 15 context clearly indicates otherwise: 16 ["Advisory board." The Ben Franklin/IRC Partnership Advisory 17 Board. 18 "Ben Franklin technology center." A nonprofit corporation, 19 incorporated for the purposes of identifying and generating 20 technology innovation opportunities among Commonwealth 21 businesses.] 22 "Ben Franklin Technology Partners." One of four regional 23 nonprofit corporations, incorporated for the purposes of serving 24 as the Commonwealth's key regional partners to reach out to and 25 assist companies and communities in identifying, developing, 26 adapting and implementing advanced technology and innovation 27 opportunities within an entrepreneurial business environment, in 28 collaborating as a Statewide network. 29 "Centers." The Ben Franklin [technology centers] Technology 30 Partners and the industrial resource centers. 20000H2559B3628 - 9 -
1 "Commonwealth manufacturing company." A Pennsylvania 2 manufacturing company. 3 "Department." The Department of [Commerce] Community and 4 Economic Development of the Commonwealth. 5 "Industrial resource center." A nonprofit corporation, 6 incorporated for the purposes of enhancing and supporting the 7 competitive ability of Commonwealth manufacturers by helping 8 them [take advantage of and benefit from the transmission of 9 production] to identify, assess, select, implement and optimize 10 techniques and technologies. 11 "Manufacturing." The giving of new shapes, new qualities or 12 new combinations to matter by the application of skill and labor 13 thereto. 14 "Partners." The Ben Franklin Technology Partners. 15 "Partnership." The Ben [Franklin/IRC] Franklin Technology 16 Partners/Industrial Resource Centers Partnership. 17 "Partnership board." The board of directors of the Ben 18 [Franklin/IRC] Franklin Technology Partners/Industrial Resource 19 Centers Partnership. 20 "Private sector funds." Monetary or in-kind support from 21 private businesses, corporations, individuals, trade 22 associations, foundations [and], federally and locally supported 23 grant programs and other non-Commonwealth sources. 24 "Secretary." The Secretary of [Commerce] Community and 25 Economic Development of the Commonwealth. 26 ["Small-to-medium-sized Commonwealth manufacturing company." 27 A Pennsylvania manufacturing company which meets the small 28 business size standards established by the United States Small 29 Business Administration.] 30 Section 4. Ben [Franklin/IRC] Franklin Technology 20000H2559B3628 - 10 -
1 Partners/Industrial Resource Centers Partnership. 2 (a) Creation.--A body corporate and politic, to be known as 3 the Ben [Franklin/IRC] Franklin Technology Partners/Industrial 4 Resource Centers Partnership, is hereby created as a public 5 authority and instrumentality of the Commonwealth. [This 6 authority shall exercise the powers of the Commonwealth as an 7 agency of the Commonwealth.] 8 (b) Members.--The partnership board shall be composed of the 9 following members: 10 (1) The secretary. 11 (2) A representative of the Governor's Office with 12 responsibilities for technology, to be appointed by the 13 Governor. 14 (3) [Five] Ten representatives from the private 15 manufacturing or advanced technology business sector to be 16 appointed by the Governor, at least [two] four of whom [shall 17 be representatives of small-to-medium-sized businesses.] must 18 represent regional Ben Franklin Technology Partners boards 19 and at least four of whom must represent industrial resource 20 center boards. One of these ten should come from the private 21 capital community. 22 [(4) Two representatives from the education sector to be 23 appointed by the Governor, one of whom shall be a president 24 or board member of a four-year college or university and one 25 of whom shall be a president or board member of an 26 institution that provides vocational instruction.] 27 (4) Two representatives from the education sector in 28 positions that are reflective of the programs assigned to the 29 board to be appointed by the Governor. 30 (5) A representative from organized labor to be 20000H2559B3628 - 11 -
1 appointed by the Governor. 2 [(6) The chairman of the Milrite Council.] 3 (7) Four representatives of the General Assembly 4 appointed as follows: 5 (i) One representative appointed by the President 6 pro tempore of the Senate. 7 (ii) One representative appointed by the Minority 8 Leader of the Senate. 9 (iii) One representative appointed by the Speaker of 10 the House of Representatives. 11 (iv) One representative appointed by the Minority 12 Leader of the House of Representatives. 13 (b.1) Ethics.-- 14 (1) No individual who is an officer or employee of the 15 partners, who is an officer or employee of an industrial 16 resource center or who is in a position to benefit 17 financially from any decision or undertaking of the 18 partnership board may be a member of the partnership. 19 (2) Each member under subsection (b)(1), (2) and (7) 20 shall be deemed a "public official" for purposes of 65 21 Pa.C.S. Ch. 11 (relating to ethics standards and financial 22 disclosure). 23 (c) Chair.--The secretary shall chair the partnership board 24 and shall be authorized to designate an officer or employee with 25 broad policy responsibility within the department in accordance 26 with section 6(c) to chair partnership board meetings in his 27 absence. 28 (d) Terms.-- 29 (1) The secretary and the representative of the 30 Governor's Office with responsibilities for technology shall, 20000H2559B3628 - 12 -
1 for as long as they hold their respective positions, serve on 2 the partnership board for terms of four years, the terms to 3 run concurrently with that of the Governor. 4 (2) Those remaining members of the partnership board 5 initially appointed by the Governor shall serve for the 6 following term of years: 7 (i) [Two] Four representatives from the private 8 sector, one representative from the education sector and 9 the labor representative shall serve terms of four years. 10 (ii) [Two] Three representatives from the private 11 sector and one representative from the education sector 12 shall serve for terms of three years. 13 (iii) [One representative] Three representatives 14 from the private sector shall serve a term of two years. 15 (3) The representatives of the General Assembly shall 16 serve terms of two years, such terms to run concurrently with 17 the term of the legislative session. 18 All of their respective successors shall serve for terms of four 19 years or until their respective successors shall be duly 20 appointed by the Governor. Any [member] members appointed to 21 fill a vacancy created otherwise than by expiration of term 22 shall be appointed for the unexpired term of the member whom he 23 is to succeed. 24 (e) Compensation.--The members shall receive no compensation 25 for their services but shall be reimbursed for their expenses 26 actually incurred by them in the performance of their duties 27 under this act. 28 Section 5. Powers and duties of partnership. 29 (a) General rule.--The partnership shall have the following 30 powers and duties: 20000H2559B3628 - 13 -
1 [(1) To promote, stimulate and encourage competitiveness 2 through interaction of technology development, deployment, 3 modernization and education and training programs. 4 (2) To monitor the development of State and regional 5 plans to maximize coordination and cooperation between the 6 centers. 7 (3) To ensure that the activities of the centers are 8 coordinated to the greatest possible extent with other 9 organizations responsible for these four spheres of business 10 assistance: 11 (i) Technology assistance. 12 (ii) Business finance. 13 (iii) Business development. 14 (iv) Education and training. 15 (4) To coordinate efforts to identify and pursue Federal 16 and State funding opportunities, including opportunities to 17 assist defense-based firms in converting to nondefense 18 activities.] 19 (1) To promote, stimulate, encourage and coordinate 20 programs, actions, services and investments which advance the 21 competitiveness of Commonwealth companies in the global 22 economy through innovation; an entrepreneurial business 23 environment and the interaction of technology development, 24 technology deployment, industrial modernization, market 25 analysis and development; and work force development and 26 training programs. 27 (2) To take responsibility for overall funding <-- 28 allocations, direct policy development and foster 29 coordination among all technology-related programs in the 30 Commonwealth. 20000H2559B3628 - 14 -
1 (3) (2) To advise the Governor and the executive 2 agencies, upon request, concerning matters of science, 3 technology, engineering, innovation, entrepreneurship, 4 industrial modernization and manufacturing competitiveness, 5 which relate to economic growth and the health, safety and 6 welfare of this Commonwealth and its citizens. 7 (4) (3) To monitor the development of State and regional <-- 8 plans to advance the economy of this Commonwealth in relation 9 to technology, innovation, an entrepreneurial business 10 environment and manufacturing performance and to promote 11 collaboration between regional entities and Commonwealth 12 agencies in the preparation and execution of such plans. 13 (4.1) (4) To encourage and assist efforts to identify <-- 14 and pursue Federal and other funding opportunities, 15 particularly those leading to or supporting Statewide 16 strategic initiatives. 17 (5) To adopt bylaws[, regulations] and guidelines 18 dealing with the organization, meetings, activities and other 19 considerations as it may deem appropriate and consistent. 20 (6) To make contracts of every name and nature and to 21 execute all instruments necessary or convenient for the 22 carrying on of its business. 23 (7) To conduct examinations and investigations on any 24 relevant material for its information. 25 (8) To review the financial and disclosure information 26 submitted by the centers and [request an independent audit of 27 the center's records.] insure that independent audits and 28 regional board oversight are in place which should reasonably 29 be able to detect and respond to any matters of impropriety 30 at the centers. 20000H2559B3628 - 15 -
1 (9) To appoint subcommittees, as needed. 2 (10) To sue and be sued, implead and be impleaded, 3 complain and defend in all courts. 4 (11) To approve funding allocations to centers and other 5 programs and entities assigned to the board. 6 (12) To accept funds from various sources, including, 7 but not limited to: 8 (i) Separate [State] Commonwealth appropriations to 9 [the Ben Franklin technology centers] programs and 10 entities assigned to the board, including, but not 11 limited to, the Ben Franklin Technology Partners and the 12 industrial resource centers. 13 [(ii) Separate State appropriations to the 14 industrial resource centers.] 15 (iii) Any other State appropriations, Federal funds, 16 funds established under official orders and other 17 statutes, royalties, gifts, grants, bequests, devises and 18 private funds. 19 (13) To comply with Federal legislation and regulations. 20 (b) Debt restriction.--Notwithstanding any other provisions 21 of this act, the partnership shall not have the authority to 22 issue any bonds, notes or any other obligation evidencing a debt 23 or liability of the partnership, the Commonwealth or any of its 24 political subdivisions. 25 Section 6. Partnership board. 26 (a) Organization.--The powers of the partnership shall be 27 exercised by a board consisting of the members of the 28 partnership. Within 90 days after the effective date of this 29 act, the partnership board shall meet and organize. The 30 secretary shall be the chair and chief executive officer. The 20000H2559B3628 - 16 -
1 partnership board shall elect a secretary and treasurer from 2 their number. At the first meeting in each year thereafter, they 3 shall elect from their number a secretary and treasurer. 4 (b) Quorum.--A majority of the members shall constitute a 5 quorum of the partnership board for the purpose of organizing 6 the partnership and conducting the business thereof, and all 7 action shall be taken by a vote of a majority of the members 8 present, unless specified otherwise in the bylaws of the 9 partnership or in this act. Only members or their designees who 10 are physically present at a meeting or able to participate fully 11 in the deliberations by appropriate telecommunications means 12 shall count toward a quorum of the partnership board. 13 (c) Designees.--Each public officer of the partnership board 14 may designate an officer or employee of the Commonwealth to 15 represent him at meetings of the partnership board. Each 16 designee may lawfully vote and otherwise act on behalf of the 17 member of the partnership board for whom he constitutes the 18 designee. The designation shall be in writing delivered to the 19 partnership and shall continue in effect until revoked or 20 amended in writing delivered to the partnership. 21 (d) Staff services.--The department shall provide an 22 executive director and staff services to the partnership for its 23 administration of this act[, including review of the proposals 24 submitted to the partnership by the advisory board]. 25 Section 8. Ben Franklin/IRC Partnership Advisory Board. 26 (a) Creation.--There is hereby created within the department 27 the Ben Franklin/IRC Partnership Advisory Board. 28 (b) Members.--The advisory board shall be composed of the 29 following members: 30 (1) The chair of the board of each industrial resource 20000H2559B3628 - 17 -
1 center. 2 (2) The chair of the board of each of the Ben Franklin 3 technology centers. 4 (3) The chair of the board of the Economic Planning and 5 Development Council. 6 (4) The State director of the small business development 7 centers. 8 (5) The president of the Pennsylvania Economic 9 Development Association. 10 (c) Chair.--The advisory board shall be chaired by two 11 representatives, one of whom shall be selected by the chairs of 12 the boards of the industrial resource centers and one of whom 13 shall be selected by the chairs of the boards of the Ben 14 Franklin technology centers. These cochairs shall attend and 15 fully participate in the discussions held at all partnership 16 board meetings, in order to convey to the partnership board the 17 views of the advisory board. 18 (d) Votes.--For voting purposes, there shall exist 11 total 19 votes. Four of the votes shall be equally divided among the 20 industrial resource center chairs. Four of the votes shall be 21 equally divided among the Ben Franklin technology center chairs. 22 The three remaining votes shall be equally divided among the 23 chair of the board of the Economic Planning and Development 24 Commission, the State director of the small business development 25 centers and the president of the Pennsylvania Economic 26 Development Association. 27 (e) Term.--All members of the advisory board shall serve for 28 as long as they continue to hold the positions outlined above. 29 (f) Compensation.--The advisory board members shall receive 30 no compensation for their services but shall be reimbursed for 20000H2559B3628 - 18 -
1 their expenses actually incurred by them in the performance of 2 their duties under this act. 3 (g) Purpose.--The advisory board shall facilitate discussion 4 among the organizations represented to promote better 5 coordination of services and opportunities. 6 (h) Staff support.--The staff to the partnership shall 7 provide staff support to the advisory board. 8 Section 9. Duties of advisory board. 9 The advisory board shall: 10 (1) Make recommendations to the partnership. 11 (2) Issue periodic reports. 12 (3) Sponsor and conduct conferences and studies. 13 (4) Collect and disseminate information. 14 (5) Develop strategies designed to coordinate the 15 efforts of the centers, promote joint funding proposals for 16 each of the centers and develop strategies designed to 17 facilitate the sharing of information and the best and most 18 efficient manufacturing practices. 19 The duties of the advisory board shall not include the review 20 and approval of annual funding proposals and allocations for 21 each of the centers.] 22 Section 10. Industrial resource centers. 23 An industrial resource center shall: 24 (1) Serve manufacturing industries in this Commonwealth. 25 (1.1) Work with companies, such as engineering design, 26 software engineering, accounting, educational corporations 27 and institutions and distribution centers, to help specific 28 manufacturing firms serviced by those companies modernize 29 their manufacturing techniques and technologies. 30 (2) Offer manufacturers comprehensive assistance which 20000H2559B3628 - 19 -
1 may include, but is not limited to: 2 (i) The capacity to help manufacturing firms 3 evaluate those elements which are critical to their 4 competitive ability, such as [the need for] 5 implementation of commercially available process 6 [technology, the need for] technologies, continuous 7 improvement in quality, development of work force skills 8 and understanding the nature of [existing and future] 9 global markets. 10 (ii) The ability to assist companies in identifying 11 and applying appropriate technologies. 12 (iii) The ability to transmit products and 13 techniques to improve [the] manufacturing [process] 14 processes. 15 (iv) [An information service designed to] 16 Information services which provide manufacturers with 17 practical data on business issues and the availability 18 and capability of commercially available processes and 19 technologies and assistance with implementation. 20 (v) The development of demonstration sites which 21 manufacturers can visit to learn about and evaluate 22 technologies. 23 (vi) Providing manufacturers with services designed 24 to help them better understand [as well as] and apply 25 modern manufacturing techniques and concepts. 26 (vii) Working with the department and other State 27 agencies and local or regional organizations in the 28 implementation of economic development plans. 29 (viii) Providing manufacturers with marketing 30 strategies and assistance in training and [workforce] 20000H2559B3628 - 20 -
1 work force development. 2 (3) Represent a consortium of interest designed to meet 3 the needs of [industry in its particular region.] 4 manufacturers in their particular regions. 5 (4) Be an independent nonprofit institution overseen by 6 a regional board of directors comprising private industry, 7 economic development organization and university and 8 educational institution representatives, with at least 50% 9 representation from private industry. 10 (5) Complement and cooperate with every other center and 11 [shall] make every effort to share expertise and clientele to 12 develop a strong Statewide network. 13 [Section 11. Ben Franklin technology centers. 14 A Ben Franklin technology center shall: 15 (1) Act to assist companies and regions to identify and 16 develop local technology opportunities which make significant 17 contributions to this Commonwealth's economy. 18 (2) Offer businesses comprehensive assistance which may 19 include, but not be limited to: 20 (i) Development and strengthening of joint research 21 and development efforts, including facilities for 22 advanced technologies activities, equipment, personnel, 23 land and related activities, which will lead to new 24 technologies which will create or preserve jobs. 25 (ii) Providing training and curriculum development 26 related to advanced technology in order to provide a 27 skilled work force to secure employment in advanced 28 technology industries. 29 (iii) Technical assistance and technology transfer 30 activities on an areawide or Statewide basis to transfer 20000H2559B3628 - 21 -
1 research and development activities into the marketplace. 2 (iv) Assistance through small business incubators, 3 including, but not limited to, space services and 4 technical assistance. 5 (v) Market development, feasibility studies and 6 other activities related to increasing jobs in advanced 7 technology industries. 8 (vi) Staff support for advanced technology councils 9 or other mechanisms to encourage labor, business, 10 university and government linkages in promoting advanced 11 technology industrial diversification. 12 (vii) Facilitate establishment of technology parks, 13 which will serve as locations for facilities devoted to 14 research and development and technology-intensive light 15 manufacturing. 16 (3) Represent a consortium of interest designed to meet 17 the needs of businesses in their particular regions. 18 (4) Be an independent nonprofit institution overseen by 19 a regional board of directors comprising economic 20 development, university and private industry participants, 21 with at least 50% representation from private industry. 22 (5) Complement and cooperate with every other center and 23 shall make every effort to share expertise and clientele to 24 develop a strong Statewide network.] 25 Section 11.1. Ben Franklin Technology Partners. 26 The Ben Franklin Technology Partners shall do all of the 27 following: 28 (1) Serve as the Commonwealth's key regional partners to 29 reach out to and assist companies and communities in 30 identifying, developing, adapting and implementing advanced 20000H2559B3628 - 22 -
1 technology and innovation opportunities within an 2 entrepreneurial business environment. 3 (2) Coordinate and provide comprehensive assistance to 4 the growing base of innovative, advanced technology companies 5 and their communities, examples of which include: 6 (i) Development and strengthening of joint research 7 and development efforts, including facilities for 8 advanced technologies activities, equipment, personnel, 9 land and related activities which will lead to new or 10 improved technologies to create or preserve jobs. 11 (ii) Providing, stimulating and opening access to 12 multiple forms of seed capital and growth financing, 13 which are needed at various stages to support innovative, 14 advanced technology businesses and an entrepreneurial 15 business environment. 16 (iii) Facilitating and supporting education and 17 training activities and innovative approaches which 18 complement and leverage the efforts of primary education 19 providers and programs in order to provide a skilled work 20 force needed by advanced technology industries. 21 (iv) Technical assistance and technology transfer 22 activities on a regional or Statewide basis to transfer 23 research and development activities into the marketplace. 24 (v) Assistance through small business incubators, 25 including space, services and technical assistance. 26 (vi) Market development, market positioning, 27 feasibility studies and other activities related to 28 increasing jobs in innovative, advanced technology 29 industries. 30 (vii) Support for councils or other mechanisms to 20000H2559B3628 - 23 -
1 encourage labor, business, university and government 2 linkages in promoting advanced technology, technology- 3 based entrepreneurship and industrial diversifications. 4 (viii) Facilitating establishment of technology 5 parks and other site developments which will serve to 6 foster and support the growth and retention of 7 innovative, advanced technology companies in a given 8 community. 9 (3) Represent a consortium of interest designed to meet 10 the needs of innovative, advanced technology businesses in 11 their particular regions by linking people, technology and 12 capital in response to market opportunities. 13 (4) Be independent nonprofit institutions overseen by 14 regional boards of directors comprising economic development, 15 university or nonprofit research institutions and private 16 industry participants, with at least 50% representation from 17 private industry. 18 (5) Complement and cooperate with every other center and 19 make every effort to share expertise and clientele to develop 20 a strong Statewide network. 21 Section 12. Certification. 22 (a) Power to review and certify.--The partnership shall have 23 the power to review and certify all applications for regional 24 industrial resource centers, industry-specific industrial 25 resource centers and [Ben Franklin technology centers] partners. 26 The standards for certification of each type of center shall be 27 developed by the partnership [by regulation]. 28 (b) Existing centers.--Centers in existence and in receipt 29 of funds from the department as of the date this act becomes 30 effective are hereby deemed certified. 20000H2559B3628 - 24 -
1 (c) Modification or revocation.--The partnership shall have 2 the power to certify centers or to modify or revoke their 3 certifications consistent with the [rules and] regulations to be 4 promulgated by the partnership. The partnership also shall have 5 the power to change the number of regions or change the minimum 6 service boundary within a given region. These actions shall 7 require a two-thirds majority vote of the partnership board. 8 Section 13. Applications for and approval of grants to centers. 9 The partnership is hereby authorized to make grants to 10 certified centers[; however, before any grant may be made, the 11 certified center shall submit a funding proposal to the 12 partnership, and the partnership shall determine whether the 13 funding proposal is consistent with the purposes of this act. 14 Approval by the partnership of a certified center's individual 15 research and development or consulting projects or financial 16 assistance will not be required, provided such projects or 17 financial assistance are approved by the board of the certified 18 center and meet the requirements set forth in this act and in 19 regulations and guidelines established by the partnership.] and 20 to monitor that those grants are utilized in compliance with 21 broad policies and guidelines established by the partnership. 22 The certified centers shall submit a funding proposal to the 23 partnership according to guidelines specified by the partnership 24 to facilitate the partnership's oversight. However, once an 25 overall center grant or allocation is made by the partnership, 26 responsibility for specific center strategies, programs, 27 initiatives, projects, staffing and other spending shall rest 28 solely with the center's regional board of directors as long as 29 those activities adhere to the policies and guidelines of the 30 partnership. This sole responsibility of the center boards shall 20000H2559B3628 - 25 -
1 apply to all funding received by the center from the 2 Commonwealth or derived from Commonwealth funds, such as 3 paybacks, reimbursements, investment returns, fees for services 4 and any other similar forms of income. The centers shall make a 5 full accounting of all such sources and uses of funds to the 6 partnership on an annual basis and upon request. 7 Section 14. Requirement of matching funds. 8 Funds in the form of a grant made to an industrial resource 9 center or to [a Ben Franklin technology center] regional 10 partners by the partnership pursuant to this act shall be 11 matched by private sector funds on a minimum basis to be 12 established by [regulation] the partnership. Private matching 13 funds shall include, but not be limited to, monetary or in-kind 14 support from private businesses, corporations, individuals, 15 trade associations, foundations [and], federally and locally 16 subsidized grants and other forms of non-Commonwealth support. 17 For [Ben Franklin technology centers] partners only, private 18 matching funds shall also include machinery and equipment. 19 [Private matching funds shall not include any fees received by 20 an industrial resource center or a Ben Franklin technology 21 center for direct business services relating to a project 22 subsidized by the partnership or interest accrued on proceeds 23 from any State grant.] 24 Section 16. Reporting requirements. 25 Centers shall be required to annually submit to the 26 partnership the following: 27 (1) The center's current mailing address and telephone 28 number. 29 (2) A copy of the center's current articles of 30 incorporation and bylaws if they are amended during the 20000H2559B3628 - 26 -
1 previous year. 2 (3) A list of the center's current officers and 3 directors. 4 (4) Financial information as the partnership may 5 [require.] request. However, at a minimum, centers shall 6 submit an independent audit which covers all funds received 7 directly from the Commonwealth and funds derived from 8 Commonwealth support, such as paybacks, reimbursements, 9 investment returns, fees for services, CASH RESERVES, <-- 10 INTEREST, RETURN OF DEPRECIATION and any other similar forms 11 of income which result at least partially from initial 12 expenditure of Commonwealth funds. THE AUDIT SHALL INCLUDE <-- 13 ALL OF THE COMMUNICATIONS BETWEEN THE AUDITORS AND THE 14 MANAGERS OF THE CENTER. THE AUDIT SHALL BE CONDUCTED IN 15 ACCORDANCE WITH APPROPRIATE GOVERNMENT AUDITING STANDARDS AND 16 SHALL BE A PUBLIC RECORD. THE PARTNERSHIP SHALL PROVIDE 17 COPIES OF ALL AUDITS TO THE DEPARTMENT. Upon request, centers 18 shall also furnish general financial and program information 19 about activities at the center supported entirely by non- 20 Commonwealth sources, such as Federal or foundation grants 21 arranged directly by the center. 22 (5) Disclosure information of the center's officers and 23 directors as the partnership may require to ensure the 24 integrity of this act. 25 SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ: <-- 26 SECTION 16.1. REPORTS TO GENERAL ASSEMBLY. 27 THE PARTNERSHIP SHALL SUBMIT TO THE CHAIRMAN AND THE MINORITY 28 CHAIRMAN OF THE COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE OF 29 THE SENATE AND THE CHAIRMAN AND MINORITY CHAIRMAN OF THE 30 COMMERCE AND ECONOMIC DEVELOPMENT COMMITTEE OF THE HOUSE OF 20000H2559B3628 - 27 -
1 REPRESENTATIVES A REPORT SPECIFYING THE ACTIVITIES OF EACH 2 CENTER, WHICH REPORT SHALL DETAIL THE BUDGET OF EACH CENTER, THE 3 INDIVIDUAL PROJECTS AND ACTIVITIES OF EACH CENTER AND THE 4 PROGRESS OF EACH CENTER IN ACHIEVING AND IMPLEMENTING THE GOALS 5 AND POLICIES AS SPECIFIED IN SECTION 2. THE FIRST SUCH REPORT 6 SHALL BE SUBMITTED ON SEPTEMBER 1, 2000, AND REPORTS SHALL 7 THEREAFTER BE SUBMITTED ON THE FIRST DAY OF FEBRUARY AND THE 8 FIRST DAY OF SEPTEMBER OF EACH YEAR. THE CENTERS SHALL SUBMIT 9 SUCH INFORMATION TO THE PARTNERSHIP, AT THE TIME AND IN THE 10 MANNER SPECIFIED BY THE PARTNERSHIP, SO AS TO ENABLE THE 11 PARTNERSHIP TO COMPLY WITH THE PROVISIONS OF THIS SECTION. 12 SECTION 3. SECTIONS 18 AND 21 OF THE ACT ARE AMENDED TO 13 READ: 14 Section 18. Transfers. 15 All allocations, appropriations, equipment, files, records, 16 contracts, agreements, obligations and other materials which are 17 used, employed or expended in connection with the powers, duties 18 or functions of the board of the Ben [Franklin] Franklin/IRC 19 Partnership Fund under the provisions of the act of April 9, 20 1929 (P.L.177, No.175), known as The Administrative Code of 21 1929, [and the department in connection with the industrial 22 resource centers] are hereby transferred to the partnership 23 created by this act with the same force and effect as if the 24 allocations and appropriations have been made to and the items 25 had been the property of the partnership in the first instance 26 and as if the contracts, agreements and obligations had been 27 incurred or entered into by the partnership. 28 Section 21. Sunset. 29 The Ben Franklin/IRC Partnership, together with its statutory 30 functions and duties, shall terminate and go out of existence on 20000H2559B3628 - 28 -
1 December 31, [2000] 2006, unless reestablished or continued by 2 the General Assembly. The Legislative Budget and Finance 3 Committee shall be required to present to the General Assembly a 4 report evaluating the partnership by December 31, [1999] 2005. <-- 5 This report shall provide the General Assembly with a 6 recommendation as to whether the partnership is to be continued 7 and, if so, the changes which are suggested by the committee to 8 improve the operation of the partnership. 9 Section 2 4. This act shall take effect in 60 days. <-- E5L12VDL/20000H2559B3628 - 29 -