PRIOR PRINTER'S NO. 1534 PRINTER'S NO. 2614
No. 1297 Session of 1983
INTRODUCED BY EVANS, LINTON, F. E. TAYLOR, IRVIS, CARN, WAMBACH,
COWELL, SWEET, MANDERINO, WACHOB, OLASZ, D. R. WRIGHT,
GALLAGHER, FREEMAN, DOMBROWSKI, ZWIKL, ITKIN, SHOWERS,
HOEFFEL, MAIALE, BLAUM, STEIGHNER, PISTELLA, DeLUCA, TRELLO,
PRESTON, O'DONNELL, McHALE, RAPPAPORT, CALTAGIRONE, COLE,
BATTISTO, MICHLOVIC, VAN HORNE, DEAL, CAWLEY, DeWEESE,
AFFLERBACH, FATTAH, WOZNIAK, DUFFY, MURPHY, TIGUE, COY,
WOGAN, WESTON, MILLER, FISCHER, DAVIES, DALEY, CLARK, RUDY
AND LESCOVITZ, JUNE 29, 1983
AS REPORTED FROM COMMITTEE ON BUSINESS AND COMMERCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, MARCH 12, 1984
AN ACT
1 Providing for the establishment, operation and administration of
2 small business incubator facilities; and imposing powers and <--
3 duties on the board and local sponsors; AND MAKING AN <--
4 APPROPRIATION.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Small
9 Business Incubators Act.
10 Section 2. Legislative purpose.
11 It is the finding of the General Assembly that the growth in
12 new jobs necessary to employ the unemployed and also provide
13 expanded employment opportunities in this Commonwealth in the
14 future will, in significant measure, result from the successful
15 establishment and growth of small businesses, specifically small
1 commercial and industrial companies and therefore, there is a
2 need to encourage the establishment and growth of new, small
3 business and of small business entrepreneurship. It is the
4 further finding of the General Assembly that new, small
5 businesses face certain barriers to growth as a result of their
6 limited resources, and among these are the inability to rent and
7 occupy facilities and to contract for and use various basic
8 support services on a short-term and cost-effective basis.
9 Accordingly, it is the intent of the General Assembly to develop
10 jobs for the unemployed and jobs for the future by encouraging
11 and supporting small business development through a Small
12 Business Incubators Program.
13 Section 3. Definitions.
14 The following words and phrases when used in this act shall
15 have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Board." The governing body of the Economic Development <--
18 Board established by the act of .
19 "Incubator." A small business incubator facility which shall
20 provide space occupancy and basic support services to new, small
21 businesses on a short-term, cost-effective basis.
22 "INCUBATOR MANUFACTURING FACILITIES." A FACILITY AVAILABLE <--
23 TO NEW SMALL BUSINESSES ENGAGED IN MANUFACTURING.
24 "Local sponsor" or "sponsor." Any qualified local entity
25 which enters into a written agreement with the board to
26 participate in the establishment, operation and administration
27 of a small business incubator facility. The term includes
28 municipal governments, public school districts, certified
29 institutions of higher education, industrial and commercial
30 development authorities established pursuant to the act of
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1 August 23, 1967 (P.L.251, No.102), known as the Industrial and
2 Commercial Development Authority Law, redevelopment authorities
3 established pursuant to the act of May 24, 1945 (P.L.991,
4 No.385), known as the Urban Redevelopment Law, or any nonprofit
5 organization chartered exclusively for the purposes of this act.
6 Section 4. Creation of program.
7 (a) Establishment.--There is hereby established under the
8 direction of the Economic Development Board BEN FRANKLIN <--
9 PARTNERSHIP FUND a matching funds program for the establishment,
10 operation and administration of small business incubator
11 facilities AND INCUBATOR MANUFACTURING FACILITIES to be known as <--
12 the Small Business Incubators Program.
13 (b) Matching requirements.--Local sponsors shall be required
14 to fund at least 25% of the total annual expenses incurred by an
15 incubator facility and may, at the discretion of the board, be
16 required to fund a percentage of the total annual expenses in
17 excess of 25% FOR THE FIRST TWO YEARS; IN THE THIRD YEAR THE <--
18 STATE SHARE OF OPERATING SUPPORT WILL NOT EXCEED 50%; IN THE
19 FOURTH AND SUBSEQUENT YEARS THE STATE SHARE SHALL NOT EXCEED 25%
20 OF THE TOTAL OPERATING COST. LOCAL SPONSORS SHALL BE REQUIRED TO
21 FUND AT LEAST 50% OF THE CAPITAL COSTS FOR BUILDING NEW
22 FACILITIES, INCLUDING ACQUISITION AND AT LEAST 30% OF CAPITAL
23 COSTS FOR EXISTING FACILITIES, INCLUDING REHABILITATION AND
24 ACQUISITION.
25 (c) Application.--A local sponsor may submit an application
26 to the board to obtain a State matching grant to establish a
27 small business incubator OR INCUBATOR MANUFACTURING facility. <--
28 Every applicant shall meet the following criteria:
29 (1) Provide evidence of the need for an incubator
30 facility OR INCUBATOR MANUFACTURING FACILITY. <--
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1 (2) Demonstrate a projected and sustained use of the
2 incubator facility OR INCUBATOR MANUFACTURING FACILITY, <--
3 including occupancy by a certain minimum number of small
4 businesses.
5 (3) Demonstrate an ability to meet at least 25% of the
6 total annual expenses incurred by the incubator facility OR <--
7 INCUBATOR MANUFACTURING FACILITY.
8 (4) Submit such other information as the board may
9 require, including financial reports and audits and timely
10 and periodic reports on specific terms and conditions for
11 incubator occupancy which the local sponsor may require.
12 (d) Limitation.--No participating new, small business shall
13 occupy space or utilize the services of an incubator facility
14 for a period of more than four years.
15 (E) LIMITATION.--NO NEW SMALL BUSINESS SHALL OCCUPY SPACE OF <--
16 AN INCUBATOR MANUFACTURING FACILITY OF MORE THAN 10,000 SQUARE
17 FEET OF MANUFACTURING SPACE IN SUCH FACILITIES.
18 Section 5. Duties of local sponsor.
19 (a) General rule.--Every local sponsor shall provide
20 adequate supervision and oversight of the incubator program in
21 order to meet the requirements of this act.
22 (b) Fees and rental.--Every local sponsor will develop and
23 implement a fee-for-services or rental or other system of
24 payment which it shall require of small business occupants of an
25 incubator, and such system of payment will be generally uniform
26 with respect to the pro rata share of subsidy delivered or
27 provided to any occupants but shall also assess costs to
28 occupants on a pro rata use basis.
29 Section 6. Powers and duties of board.
30 The board shall have the following powers and duties:
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1 (1) Publicize the availability of grants for small
2 business incubator facilities to prospective local sponsors.
3 (2) Require that local sponsors seek program
4 certification prior to application for grant funding.
5 (3) Review and act upon applications for grant funding.
6 (4) Follow any criteria it shall set forth with respect
7 to an economic development strategy for the Commonwealth with
8 respect to the encouragement of certain kinds of economic
9 development by certain types of commercial and industrial
10 firms.
11 (5) Encourage the use of existing real property and
12 facilities for the housing of incubator programs, permitting
13 only limited new construction in such cases as the board
14 shall specifically determine and also set limits on the cost
15 of renovating existing real property for use as incubators.
16 (6) Establish criteria for cost-sharing in excess of the
17 25% established pursuant to section 4.
18 (7) Promulgate such rules and regulations that are
19 necessary to implement and administer the provisions of this
20 act.
21 (8) ASSURE THAT FUNDS FOR INCUBATORS AND INCUBATOR <--
22 MANUFACTURING FACILITIES ARE AVAILABLE TO ALL SECTORS OF THE
23 COMMONWEALTH. TO INSURE EQUITABLE DISTRIBUTION, A MAXIMUM OF
24 20% OF THE FUNDS AVAILABLE MAY BE INVESTED IN ONE
25 MUNICIPALITY OF THE COMMONWEALTH. THIS REQUIREMENT MAY BE
26 WAIVED BY THE BOARD IF THERE IS A REASONABLE EXPECTATION OF
27 NO ADDITIONAL NEW REQUESTS FOR FUNDS.
28 SECTION 7. APPROPRIATION.
29 THE SUM OF $30,000,000 IS APPROPRIATED TO CARRY OUT THE
30 PROVISIONS OF THIS ACT.
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1 Section 7 8. Effective date. <--
2 This act shall take effect in 60 days.
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