PRINTER'S NO. 1015
No. 876 Session of 2001
INTRODUCED BY DENT, PUNT, COSTA, CORMAN, ERICKSON, THOMPSON, BOSCOLA, WAUGH, GERLACH, KUKOVICH, TOMLINSON, ORIE AND LOGAN, MAY 17, 2001
REFERRED TO COMMUNITY AND ECONOMIC DEVELOPMENT, MAY 17, 2001
AN ACT 1 Creating the Ben Franklin Technology Development Authority; 2 defining its powers and duties; establishing a fund; and 3 making a repeal. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Short title. 7 This act shall be known and may be cited as The Ben Franklin 8 Technology Development Authority Act. 9 Section 2. Definitions. 10 The following words and phrases when used in this act shall 11 have the meanings given to them in this section unless the 12 context clearly indicates otherwise: 13 "Authority." The Ben Franklin Technology Development 14 Authority. 15 "Ben Franklin Technology Partner" or "partner." A nonprofit 16 corporation certified in accordance with this act. 17 "Board." The Board of Directors of the Ben Franklin 18 Technology Development Authority.
1 "Department." The Department of Community and Economic 2 Development of the Commonwealth. 3 "Private sector funds." Monetary or in-kind support from 4 private businesses, corporations, individuals, trade 5 associations, foundations, federally and locally supported grant 6 programs and other non-Commonwealth sources. The term includes 7 machinery and equipment and other forms of tangible assets 8 approved by the Ben Franklin Technology Development Authority. 9 "Secretary." The Secretary of Community and Economic 10 Development of the Commonwealth. 11 Section 3. Ben Franklin Technology Development Authority. 12 (a) Creation.--There is hereby created a public authority 13 and instrumentality of the Commonwealth known as the Ben 14 Franklin Technology Development Authority. The authority shall 15 be a body corporate and politic and exercise the powers of the 16 Commonwealth as an agency of the Commonwealth. 17 (b) Management.--The powers of the authority shall be 18 exercised by the board. 19 (c) Staffing.--The department shall provide staff services 20 to the authority. The department may, with the approval of the 21 Governor, contract with consultants or other entities to augment 22 these services as needed. No more than 3% of funds annually 23 appropriated to the authority shall be used to pay 24 administrative costs, expenses and fees associated with the 25 operations of the authority. 26 (d) Powers.--The authority, through action of the board, 27 shall have all of the following powers: 28 (1) To adopt bylaws, guidelines and regulations as it 29 deems necessary. 30 (2) To contract and to execute instruments necessary or 20010S0876B1015 - 2 -
1 convenient for the carrying on of its business. 2 (3) To appoint committees and subcommittees as are 3 needed. 4 (4) To sue and be sued, complain and defend in court. 5 (5) To accept funds from all available sources. 6 (e) Duties.--The authority shall encourage and coordinate 7 programs and investments which advance the competitiveness of 8 Commonwealth companies in the global economy. The authority 9 shall: 10 (1) Develop policies and implement programs which 11 promote an entrepreneurial business environment, advances 12 technologies and a technology-ready work force. 13 (2) Select and certify four regional nonprofit 14 corporations as partners. 15 (3) Coordinate funding for the programs, initiatives and 16 actions of the authority and the partners. 17 (4) Award grants and other forms of financial incentives 18 to companies, economic development agencies, educational 19 institutions, government agencies or other entities for 20 research activities related to economic development at 21 academic and research institutions and community-based and 22 economic development technology initiatives. 23 (5) Establish a revolving loan fund for the purpose of 24 making financing available to technology companies. 25 (6) Invest in companies, economic development agencies, 26 educational institutions, government agencies or other 27 entities as necessary to carry out the authority's 28 activities. 29 (7) Assist efforts to identify and pursue funding 30 opportunities from the Federal Government and other sources. 20010S0876B1015 - 3 -
1 (8) Establish and require audits, disclosures and other 2 review procedures for all activities funded by the authority. 3 Section 4. Board. 4 (a) Members.--The authority shall be governed by a board 5 consisting of 21 members. The following individuals shall be 6 members of the board: 7 (1) The Governor. 8 (2) The Secretary of Community and Economic Development. 9 (3) The Secretary of Education. 10 (4) The Secretary of Administration. 11 (5) Seven representatives from the technology business 12 sector to be appointed by the Governor, four of whom shall be 13 selected from the current members of the regional partners' 14 boards of directors, and at least one from the private 15 capital community. 16 (6) One representative from the Pennsylvania Economic 17 Development Association to be appointed by the Governor. 18 (7) One representative from the local government sector 19 to be appointed by the Governor. 20 (8) One representative from the community development 21 sector to be appointed by the Governor. 22 (9) Three representatives from the education sector to 23 be appointed by the Governor. 24 (10) Four members of the General Assembly appointed as 25 follows: 26 (i) One member appointed by the President pro 27 tempore of the Senate. 28 (ii) One member appointed by the Minority Leader of 29 the Senate. 30 (iii) One member appointed by the Speaker of the 20010S0876B1015 - 4 -
1 House of Representatives. 2 (iv) One member appointed by the Minority Leader of 3 the House of Representatives. 4 (b) Terms.-- 5 (1) The Governor, the secretary, the Secretary of 6 Education and the Secretary of Administration shall serve for 7 as long as they hold their respective positions. 8 (2) Those remaining members of the authority initially 9 appointed by the Governor shall serve for the following term 10 of years: 11 (i) Four representatives from the private sector and 12 two representatives from the education sector shall serve 13 terms of four years. 14 (ii) Three representatives from the private sector, 15 one representative from the education sector, the 16 representative from the Pennsylvania Economic Development 17 Association, the representative from the local government 18 sector and the representative from the community 19 development sector shall serve for terms of two years. 20 (3) All of the respective successors appointed under 21 subsection (a)(5), (6), (7), (8) and (9) shall serve for 22 terms of four years or until their respective successors 23 shall be duly appointed by the Governor. Any members 24 appointed to fill a vacancy created otherwise than by 25 expiration of term shall be appointed for the unexpired term 26 of the member whom he or she is to succeed. 27 (4) The members of the General Assembly shall serve 28 terms of two years, such terms to run concurrently with the 29 term of the legislative session. 30 (c) Designees.--A public officer of the board may designate 20010S0876B1015 - 5 -
1 an officer or employee of the Commonwealth to represent him or 2 her at meetings of the board. A designee may lawfully vote and 3 otherwise act on behalf of the member of the board. The 4 designation shall be in writing, delivered to the authority and 5 continue in effect until revoked or amended in writing. 6 (d) Compensation.--The members of the board shall receive no 7 compensation for their services but shall be reimbursed for 8 their expenses actually incurred in the performance of their 9 official duties under this act. 10 (e) Organization.--The secretary shall be the chairman and 11 chief executive officer of the board. The chairman may designate 12 an officer or employee of the department to chair board meetings 13 in his absence. The board shall elect a secretary and treasurer 14 from its members at the first meeting of each calendar year. 15 (f) Quorum.--A majority of the members of the board shall 16 constitute a quorum of the board for the purpose of organizing 17 the authority and conducting the business. Only members or their 18 designees who are physically present at a meeting or able to 19 participate fully in the deliberations by appropriate 20 telecommunications means shall count toward a quorum of the 21 board. Action shall be taken by a vote of a majority of the 22 members present and voting unless otherwise specified in this 23 act. 24 (g) Committees.--The board may appoint committees to advise 25 and assist its work. A committee may not certify a partner or 26 award a grant. Committees of the board shall be appointed by the 27 chairman and may consist of board members and nonmembers. 28 Section 5. Ben Franklin Technology Partners. 29 The Ben Franklin Technology Partners shall be independent 30 nonprofit institutions, working individually and in partnership 20010S0876B1015 - 6 -
1 with each other, to advance the development of new technologies 2 in this Commonwealth. The partners will be overseen by regional 3 boards of directors comprised of economic development, 4 university or nonprofit research institutions and private 5 industry representatives, with at least 50% representation from 6 private industry. The activities of the partners may include, 7 but not be limited to, the following: 8 (1) Serve as the Commonwealth's key regional partners in 9 identifying, developing, adapting and implementing advanced 10 technologies to enable the growth and competitiveness of 11 existing and emerging companies through technology 12 development, commercialization and implementation. 13 (2) Act as regional facilitators and managers for 14 interactions, programs and initiatives by and among the 15 authority, technology enterprises, economic development 16 organizations, corporate community, academic/research 17 institutions, government, organized labor and other interests 18 working collaboratively to advance the development of a 19 technology-based economy across this Commonwealth. 20 (3) Directly provide, and serve as the conduit to, seed 21 and later stage capital for existing and emerging companies 22 involved in the development and commercialization of 23 technologically advanced products and processes. 24 (4) Develop, provide or support business incubation 25 resources and space and facilitate the development of 26 technology business campuses. 27 (5) Establish and administer a research grant fund for 28 the economic impact assessments of university-based 29 technology development projects seeking funding through the 30 authority. 20010S0876B1015 - 7 -
1 (6) Establish partnerships to support and enhance the 2 scale, scope and impact of initiatives that support the 3 purpose and mission of the authority and the partners. 4 Section 6. Certification. 5 A nonprofit corporation may submit an application for 6 certification as a partner to the authority. After a review of 7 the applications, the authority shall select and certify four 8 regional nonprofit corporations as partners. The authority shall 9 select one partner from each of the four regions of this 10 Commonwealth meeting its criteria and the requirements of 11 section 5. The authority shall modify or revoke a partner's 12 certification consistent with the regulations, policies and 13 guidelines of the authority. The authority may change the number 14 of regions or change the minimum service boundary within a given 15 region with a two-thirds majority vote of the board. A partner 16 in existence and in receipt of funds from the department as of 17 the effective date of this act is hereby deemed certified as a 18 partner. 19 Section 7. Grants to partners. 20 (a) Awards.--A partner may apply for a grant by submitting 21 an application to the authority. After review and approval of 22 the application, the authority shall sign a grant agreement with 23 the partner and award a grant. The grant agreement shall permit 24 the partner to award grants and other forms of financial 25 assistance to entities only if matched by private sector funds 26 on a minimum basis to be established by the authority. 27 (b) Implementation.--Upon receipt of a grant pursuant to 28 this section, a partner shall implement the terms of the grant. 29 Failure to comply with the terms of the grant agreement shall 30 result in forfeiture of the grant. 20010S0876B1015 - 8 -
1 Section 8. Reporting. 2 A partner shall annually submit the following information to 3 the authority: 4 (1) The partner's current mailing address and telephone 5 number. 6 (2) A copy of the partner's current articles of 7 incorporation and bylaws. 8 (3) A list of the partner's current officers and 9 directors. 10 (4) An independent audit covering all funds received 11 from the Commonwealth. 12 (5) Upon request, an independent audit covering all 13 funds received and partner activities supported by non- 14 Commonwealth sources. 15 (6) Such other information as the authority may require. 16 Section 9. Records. 17 Upon request, a partner shall permit authorized employees or 18 agents of the authority to inspect its books and records during 19 regular business hours. 20 Section 10. Fund established. 21 There is hereby established in the State Treasury a special 22 fund to be known as the Ben Franklin Technology Development 23 Authority Fund into which shall be deposited any State 24 appropriations to the authority, to the partners, to technology 25 and research activities assigned to the authority, any other 26 State appropriations for a purpose related to this act, Federal 27 funds, royalties, gifts, grants, bequests, devises, private 28 funds and funds from any other source which are designated to 29 the authority. Funds appropriated by the General Assembly, 30 including Federal funds, which are earmarked for a specific 20010S0876B1015 - 9 -
1 program or purpose, including the Ben Franklin Technology 2 Partners and university research efforts, shall be allocated 3 directly to that program or purpose. Moneys in the fund are 4 hereby appropriated to the authority, upon approval of the 5 Governor, to carry out the purposes of this act. 6 Section 11. Transfers. 7 All allocations, appropriations, equipment, files, records, 8 contracts, agreements, obligations and other materials of the 9 board of the Ben Franklin/IRC Partnership Fund under the act of 10 July 2, 1993 (P.L.439, No.64), known as the Ben Franklin/IRC 11 Partnership Act, as they pertain to the Ben Franklin Technology 12 Centers are hereby transferred to the authority with the same 13 force and effect as if the allocation and appropriations have 14 been made to and the items had been the property of the 15 authority in the first instance and as if the contracts, 16 agreements and obligations had been incurred or entered into by 17 the authority. The Pennsylvania Technology Investment Authority 18 revolving loan account in the department is hereby transferred 19 to the Ben Franklin Technology Development Authority Fund and 20 may be established as a revolving loan fund by the authority. 21 Section 12. Regulations. 22 The authority shall develop policies and guidelines and 23 promulgate regulations as necessary to carry out the provisions 24 of this act. 25 Section 13. Repeal. 26 As much of the act of July 2, 1993 (P.L.439, No.64), known as 27 the Ben Franklin/IRC Partnership Act, as refers to the Ben 28 Franklin technology centers is repealed. 29 Section 14. Effective date. 30 This act shall take effect July 1, 2001, or immediately, 20010S0876B1015 - 10 -
1 whichever is later. E7L12JAM/20010S0876B1015 - 11 -