PRINTER'S NO. 1987
No. 1709 Session of 1993
INTRODUCED BY GORDNER, LESCOVITZ, COLAIZZO, ROONEY, BATTISTO,
COY, WOZNIAK, KENNEY, MARKOSEK, VEON, ITKIN, LINTON, FAJT,
McCALL, LaGROTTA, SANTONI, MUNDY, ROBERTS, PRESTON AND
KASUNIC, MAY 28, 1993
REFERRED TO COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT,
MAY 28, 1993
AN ACT
1 Creating the Pennsylvania Manufacturing and Technology
2 Consortium and providing for its powers; establishing the
3 Pennsylvania Manufacturing and Technology Consortium Fund;
4 providing for certification of industrial resource centers,
5 for certification of Ben Franklin technology centers and for
6 certain transfers; and making repeals.
7 TABLE OF CONTENTS
8 Section 1. Short title.
9 Section 2. Legislative findings and policy.
10 Section 3. Definitions.
11 Section 4. Pennsylvania Manufacturing and Technology
12 Consortium.
13 Section 5. Powers and duties of consortium.
14 Section 6. Consortium board.
15 Section 7. Fund.
16 Section 8. Pennsylvania Manufacturing and Technology Consortium
17 Advisory Board.
18 Section 9. Duties of advisory board.
1 Section 10. Industrial resource centers.
2 Section 11. Ben Franklin technology centers.
3 Section 12. Certification.
4 Section 13. Applications for and approval of grants to centers.
5 Section 14. Requirement of matching funds.
6 Section 15. Records.
7 Section 16. Reporting requirements.
8 Section 17. Rules and regulations.
9 Section 18. Transfers.
10 Section 19. References.
11 Section 20. Repeals.
12 Section 21. Effective date.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Short title.
16 This act shall be known and may be cited as the Pennsylvania
17 Manufacturing and Technology Act.
18 Section 2. Legislative findings and policy.
19 (a) Findings.--The General Assembly finds as follows:
20 (1) A growing base of successful, small-to-medium-sized
21 Commonwealth manufacturing companies is essential to the
22 economic strength and vitality of this Commonwealth.
23 (2) The existence and growth of small-to-medium-sized
24 Commonwealth manufacturing companies depends on the ability
25 of these companies to:
26 (i) Reorient management practices toward modern
27 manufacturing techniques and technologies.
28 (ii) Successfully compete in both domestic and
29 foreign markets.
30 (iii) Identify, bench mark and adopt the best and
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1 most efficient practices and technologies.
2 (iv) Locate and hire a trained work force.
3 (3) There is a need to inform the body politic, the
4 press, the academic and business communities and the
5 population at large about the significance of a successful,
6 competitive United States manufacturing industry to the
7 quality of life, security and economic strength.
8 (4) There is a continuing need to promote, stimulate and
9 encourage within this Commonwealth basic and applied
10 scientific research and development and scientific and
11 technological education.
12 (5) University-based consortia between business,
13 universities and government provide these entities with the
14 advanced technology research and development, training and
15 education necessary to diversify this Commonwealth's economy
16 and thereby stimulate this Commonwealth's economic growth.
17 (6) The industrial resource centers were created to
18 support the modernization efforts of this Commonwealth's
19 small-to-medium-sized manufacturing companies through
20 collaborative initiatives and individual projects that apply
21 and deploy advanced manufacturing management and production
22 philosophies and techniques in such areas as:
23 (i) Production, planning and inventory control.
24 (ii) Quality improvement.
25 (iii) Plant layouts.
26 (iv) Factory and office automation.
27 (v) Technology improvements.
28 (vi) Work force development and other training
29 programs.
30 (vii) Manufacturing strategies.
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1 (7) The Ben Franklin technology centers were created to
2 build partnerships and provide direct assistance to help
3 firms develop and creatively apply techniques and related
4 practices to such activities as:
5 (i) Help companies to form and grow through the
6 development and commercialization of innovative products
7 and services.
8 (ii) Help manufacturers to develop and innovatively
9 apply new technologies and practices that make them more
10 competitive in the global market economy.
11 (iii) Facilitate and support consortia of private
12 companies, academic institutions and government agencies
13 to collaboratively advance the state of knowledge and
14 practices.
15 (iv) Facilitate and support the availability of
16 services and collaborative activities throughout this
17 Commonwealth to provide business and technical
18 assistance.
19 (v) Select firms with potential for growth and
20 facilitate and support collaborative activities and
21 individual initiatives designed to address the needs of
22 manufacturing and technology-oriented companies for a
23 well-trained work force.
24 (b) Policy.--It is hereby declared to be the policy of the
25 Commonwealth to promote the health, safety, morals and general
26 welfare of its inhabitants through its Department of Commerce
27 by:
28 (1) The creation of the Pennsylvania Manufacturing and
29 Technology Consortium, which shall exist for the purpose of
30 promoting competitiveness of Commonwealth companies through
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1 interaction of technology development, modernization and
2 training programs.
3 (2) The certification of industrial resource centers,
4 which shall exist for the purpose of strengthening the
5 competitive position of small-to-medium-sized Commonwealth
6 manufacturing companies through the promotion, demonstration
7 and transmission of modern manufacturing techniques and
8 technologies.
9 (3) The certification of Ben Franklin technology
10 centers, which shall exist for the purpose of identifying,
11 generating, developing and refining technology innovation
12 opportunities for Commonwealth businesses.
13 These purposes are hereby declared to be public purposes for
14 which public money may be spent.
15 Section 3. Definitions.
16 The following words and phrases when used in this act shall
17 have the meanings given to them in this section unless the
18 context clearly indicates otherwise:
19 "Advisory board." The Pennsylvania Manufacturing and
20 Technology Consortium Advisory Board.
21 "Ben Franklin technology center." A nonprofit corporation,
22 incorporated for the purposes of identifying and generating
23 technology innovation opportunities among Commonwealth
24 businesses.
25 "Centers." The Ben Franklin technology centers and the
26 industrial resource centers.
27 "Consortium." The Pennsylvania Manufacturing and Technology
28 Consortium.
29 "Consortium board." The board of the Pennsylvania
30 Manufacturing and Technology Consortium.
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1 "Department." The Department of Commerce of the
2 Commonwealth.
3 "Industrial resource center." A nonprofit corporation,
4 incorporated for the purposes of enhancing and supporting the
5 competitive ability of Commonwealth manufacturers by helping
6 them take advantage of and benefit from the transmission of
7 production techniques and technologies.
8 "Manufacturing." The giving of new shapes, new qualities or
9 new combinations to matter by the application of skill and labor
10 thereto.
11 "Private sector funds." Monetary or in-kind support from
12 private businesses, corporations, individuals, trade
13 associations, foundations and federally and locally supported
14 grant programs.
15 "Secretary." The Secretary of Commerce of the Commonwealth.
16 "Small-to-medium-sized Commonwealth manufacturing company."
17 A Pennsylvania manufacturing company which meets the small
18 business size standards established by the United States Small
19 Business Administration.
20 Section 4. Pennsylvania Manufacturing and Technology
21 Consortium.
22 (a) Creation.--A body corporate and politic, to be known as
23 the Pennsylvania Manufacturing and Technology Consortium, is
24 hereby created as a public authority and instrumentality of the
25 Commonwealth. This authority shall exercise the powers of the
26 Commonwealth as an agency of the Commonwealth.
27 (b) Members.--The consortium shall be composed of the
28 following members:
29 (1) The secretary.
30 (2) A representative of the Governor's Office with
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1 responsibilities for technology to be appointed by the
2 Governor.
3 (3) Four representatives from the manufacturing or
4 advanced technology business sector to be appointed by the
5 Governor, at least two of whom shall be representatives of
6 small-to-medium-sized businesses.
7 (4) Two representatives from the education sector to be
8 appointed by the Governor, one of whom shall be a president
9 or board member of a four-year college or university and one
10 of whom shall be a president or board member of an
11 institution that provides vocational instruction.
12 (5) A representative from organized labor to be
13 appointed by the Governor.
14 (c) Chair.--The secretary shall chair the consortium board
15 and shall be authorized to designate an officer or employee
16 within the department to chair consortium board meetings in his
17 absence.
18 (d) Terms.--The secretary and the representative of the
19 Governor's Office with responsibilities for technology shall,
20 for as long as they hold their respective positions, serve on
21 the consortium board for terms of four years, the terms to run
22 concurrently with that of the Governor. Those remaining members
23 of the consortium board initially appointed by the Governor
24 shall serve for the following term of years:
25 (1) The two representatives from the private sector, one
26 representative from the education sector and the labor
27 representative shall serve terms of four years.
28 (2) One representative from the private sector and one
29 representative from the education sector shall serve for
30 terms of three years.
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1 (3) One representative from the private sector shall
2 serve a term of two years.
3 All of their respective successors shall serve for terms of four
4 years or until their respective successors shall be duly
5 appointed by the Governor. Any member appointed to fill a
6 vacancy created otherwise than by expiration of term shall be
7 appointed for the unexpired term of the member whom he is to
8 succeed.
9 (e) Compensation.--The members shall receive no compensation
10 for their services but shall be reimbursed for their expenses
11 actually incurred by them in the performance of their duties
12 under this act.
13 Section 5. Powers and duties of consortium.
14 The consortium shall have the following powers and duties:
15 (1) To promote, stimulate and encourage competitiveness
16 through interaction of technology development, deployment,
17 modernization and education and training programs.
18 (2) To monitor the development of State and regional
19 plans to maximize coordination and cooperation between the
20 centers.
21 (3) To ensure that the activities of the centers are
22 coordinated to the greatest possible extent with other
23 organizations responsible for these four spheres of business
24 assistance:
25 (i) Technology assistance.
26 (ii) Business finance.
27 (iii) Business development.
28 (iv) Education and training.
29 (4) To coordinate efforts to identify and pursue Federal
30 and State funding opportunities, including opportunities to
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1 assist defense-based firms in converting to nondefense
2 activities.
3 (5) To adopt bylaws, regulations and guidelines dealing
4 with the organization, meetings, activities and other
5 considerations as it may deem appropriate and consistent.
6 (6) To make contracts of every name and nature and to
7 execute all instruments necessary or convenient for the
8 carrying on of its business.
9 (7) To conduct examinations and investigations on any
10 relevant material for its information.
11 (8) To review the financial and disclosure information
12 submitted by the centers and request an independent audit of
13 the center's records.
14 (9) To appoint subcommittees, as needed.
15 (10) To sue and be sued, implead and be impleaded,
16 complain and defend in all courts.
17 (11) To approve funding allocations to centers.
18 (12) To accept funds from various sources, including,
19 but not limited to:
20 (i) Separate State appropriations to the Ben
21 Franklin technology centers.
22 (ii) Separate State appropriations to the industrial
23 resource centers.
24 (iii) Any other State appropriations, Federal funds,
25 royalties, gifts, grants, bequests, devises and private
26 funds.
27 (13) To comply with Federal legislation and regulations.
28 Section 6. Consortium board.
29 (a) Organization.--The powers of the consortium shall be
30 exercised by a board consisting of the members of the
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1 consortium. Within 90 days after the effective date of this act,
2 the consortium board shall meet and organize. The secretary and
3 his successor in office shall be the chair and chief executive
4 officer. The consortium board shall elect a secretary and
5 treasurer from their number. At the first meeting in each year
6 thereafter, they shall elect from their number a secretary and
7 treasurer.
8 (b) Quorum.--A majority of the members shall constitute a
9 quorum of the consortium board for the purpose of organizing the
10 consortium and conducting the business thereof, and all action
11 may be taken by a vote of a majority of the members present,
12 unless specified otherwise in the bylaws of the consortium or in
13 this act.
14 (c) Staff services.--The department shall provide an
15 executive director and staff services to the consortium for its
16 administration of this act, including review of the proposals
17 submitted to the consortium by the advisory board.
18 Section 7. Fund.
19 (a) Establishment.--There is hereby established in the State
20 Treasury a special fund to be known as the Pennsylvania
21 Manufacturing and Technology Consortium Fund into which shall be
22 deposited any State appropriations to the centers, any other
23 State appropriations for a purpose related to this act, Federal
24 funds, royalties, gifts, grants, bequests, devises, private
25 funds and funds from any other source for the purposes of this
26 act.
27 (b) Appropriation of moneys.--Moneys in the fund, including
28 Federal funds, are hereby appropriated out of the fund with the
29 approval of the Governor for the purposes set forth in this act.
30 Section 8. Pennsylvania Manufacturing and Technology Consortium
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1 Advisory Board.
2 (a) Creation.--There is hereby created within the department
3 the Pennsylvania Manufacturing and Technology Consortium
4 Advisory Board.
5 (b) Members.--The advisory board shall be composed of the
6 following members:
7 (1) The chair of the board of each industrial resource
8 center.
9 (2) The chair of the board of each of the Ben Franklin
10 technology centers.
11 (3) The chair of the board of the Economic Planning and
12 Development Council.
13 (4) The State director of the small business development
14 centers.
15 (5) The president of the Pennsylvania Economic
16 Development Association.
17 (c) Chair.--The advisory board shall be chaired by two
18 representatives, one of whom shall be selected by the chairs of
19 the boards of the industrial resource centers and one of whom
20 shall be selected by the chairs of the boards of the Ben
21 Franklin technology centers. These cochairs shall attend and
22 fully participate in the discussions held at all consortium
23 board meetings, in order to convey to the consortium board the
24 views of the advisory board.
25 (d) Votes.--For voting purposes, there shall exist 11 total
26 votes. Four of the votes shall be equally divided among the
27 industrial resource center chairs. Four of the votes shall be
28 equally divided among the Ben Franklin technology center chairs.
29 The three remaining votes shall be equally divided among the
30 chair of the board of the Economic Planning and Development
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1 Commission, the State director of the small business development
2 centers and the president of the Pennsylvania Economic
3 Development Association.
4 (e) Term.--All members of the advisory board shall serve for
5 as long as they continue to hold the positions outlined above.
6 (f) Compensation.--The advisory board members shall receive
7 no compensation for their services but shall be reimbursed for
8 their expenses actually incurred by them in the performance of
9 their duties under this act.
10 (g) Purpose.--The advisory board shall facilitate discussion
11 among the organizations represented to promote better
12 coordination of services and opportunities.
13 (h) Staff support.--The staff to the consortium shall
14 provide staff support to the advisory board.
15 Section 9. Duties of advisory board.
16 The advisory board shall:
17 (1) Make recommendations to the consortium.
18 (2) Issue periodic reports.
19 (3) Sponsor and conduct conferences and studies.
20 (4) Collect and disseminate information.
21 (5) Develop strategies designed to coordinate the
22 efforts of the centers, promote joint funding proposals for
23 each of the centers and develop strategies designed to
24 facilitate the sharing of information and the best and most
25 efficient manufacturing practices.
26 The duties of the advisory board shall not include the review
27 and approval of annual funding proposals and allocations for
28 each of the centers.
29 Section 10. Industrial resource centers.
30 An industrial resource center shall:
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1 (1) Serve manufacturing industries in this Commonwealth.
2 (2) Offer manufacturers comprehensive assistance which
3 may include, but is not limited to:
4 (i) The capacity to help manufacturing firms
5 evaluate those elements which are critical to their
6 competitive ability, such as the need for implementation
7 of process technology, the need for continuous
8 improvement in quality and understanding the nature of
9 existing and future 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 (iv) An information service designed to provide
15 manufacturers with practical data on the availability and
16 capability of commercially available processes and
17 technologies.
18 (v) The development of demonstration sites which
19 manufacturers can visit to learn about and evaluate
20 technologies.
21 (vi) Providing manufacturers with services designed
22 to help them better understand as well as apply modern
23 manufacturing techniques and concepts.
24 (vii) Working with the department and other State
25 agencies and local or regional organizations in the
26 implementation of economic development plans.
27 (viii) Providing manufacturers with marketing
28 strategies and assistance in training and workforce
29 development.
30 (3) Represent a consortium of interest designed to meet
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1 the needs of industry in its particular region.
2 (4) Be an independent nonprofit institution overseen by
3 a regional board of directors comprising private industry,
4 economic development and university representatives, with at
5 least 50% representation from private industry.
6 (5) Complement and cooperate with every other center and
7 shall make every effort to share expertise and clientele to
8 develop a strong Statewide network.
9 Section 11. Ben Franklin technology centers.
10 A Ben Franklin technology center shall:
11 (1) Act to assist companies and regions to identify and
12 develop local technology opportunities which make significant
13 contributions to this Commonwealth's economy.
14 (2) Offer businesses comprehensive assistance which may
15 include, but not be limited to:
16 (i) Development and strengthening of joint research
17 and development efforts, including facilities for
18 advanced technologies activities, equipment, personnel,
19 land and related activities, which will lead to new
20 technologies which will create or preserve jobs.
21 (ii) Providing training and curriculum development
22 related to advanced technology in order to provide a
23 skilled work force to secure employment in advanced
24 technology industries.
25 (iii) Technical assistance and technology transfer
26 activities on an areawide or Statewide basis to transfer
27 research and development activities into the marketplace.
28 (iv) Assistance through small business incubators,
29 including, but not limited to, space services and
30 technical assistance.
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1 (v) Market development, feasibility studies and
2 other activities related to increasing jobs in advanced
3 technology industries.
4 (vi) Staff support for advanced technology councils
5 or other mechanisms to encourage labor, business,
6 university and government linkages in promoting advanced
7 technology industrial diversification.
8 (vii) Facilitate establishment of technology parks,
9 which will serve as locations for facilities devoted to
10 research and development and technology-intensive light
11 manufacturing.
12 (3) Represent a consortium of interest designed to meet
13 the needs of businesses in their particular regions.
14 (4) Be an independent nonprofit institution overseen by
15 a regional board of directors comprising economic
16 development, university and private industry participants,
17 with at least 50% representation from private industry.
18 (5) Complement and cooperate with every other center and
19 shall make every effort to share expertise and clientele to
20 develop a strong Statewide network.
21 Section 12. Certification.
22 (a) Power to review and certify.--The consortium 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. The
26 standards for certification of each type of center shall be
27 developed by the consortium 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.
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1 (c) Modification or revocation.--The consortium 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 consortium. The consortium 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 consortium board.
8 Section 13. Applications for and approval of grants to centers.
9 The consortium 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 consortium, and the consortium shall determine that the funding
13 proposal is consistent with the purposes of this act.
14 Section 14. Requirement of matching funds.
15 Funds in the form of a grant made to an industrial resource
16 center or to a Ben Franklin technology center by the consortium
17 pursuant to this act shall be matched by private sector funds on
18 a minimum basis to be established by the consortium and
19 published as a notice in the Pennsylvania Bulletin. Private
20 matching funds shall include, but not be limited to, monetary or
21 in-kind support from private businesses, corporations,
22 individuals, trade associations, foundations and federally and
23 locally subsidized grants. For Ben Franklin technology centers
24 only, private matching funds shall also include machinery and
25 equipment. Private matching funds shall not include any fees
26 received by an industrial resource center or a Ben Franklin
27 technology center for direct business services relating to a
28 project subsidized by the consortium or interest accrued on
29 proceeds from any State grant.
30 Section 15. Records.
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1 Centers shall permit authorized employees or agents of the
2 consortium or the Commonwealth to inspect the center's books and
3 records during regular business hours, upon the reasonable
4 request of the consortium.
5 Section 16. Reporting requirements.
6 Centers shall be required to annually submit to the
7 consortium the following:
8 (1) The center's current mailing address and telephone
9 number.
10 (2) A copy of the center's current articles of
11 incorporation and bylaws if they are amended during the
12 previous year.
13 (3) A list of the center's current officers and
14 directors.
15 (4) Financial information as the consortium may require.
16 (5) Disclosure information of the center's officers and
17 directors as the consortium may require to ensure the
18 integrity of this act.
19 Section 17. Rules and regulations.
20 The consortium shall promulgate rules and regulations to
21 carry out the purposes of this act.
22 Section 18. Transfers.
23 All allocations, appropriations, equipment, files, records,
24 contracts, agreements, obligations and other materials which are
25 used, employed or expended in connection with the powers, duties
26 or functions of the board of the Ben Franklin Partnership Fund
27 under the provisions of the act of April 9, 1929 (P.L.177,
28 No.175), known as The Administrative Code of 1929, and the
29 department in connection with the industrial resource centers
30 are hereby transferred to the consortium created by this act
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1 with the same force and effect as if the allocations and
2 appropriations have been made to and the items had been the
3 property of the consortium in the first instance and as if the
4 contracts, agreements and obligations had been incurred or
5 entered into by the consortium.
6 Section 19. References.
7 All references to the board of the Ben Franklin Partnership
8 Fund existing in law and not repealed by this act shall
9 hereinafter be deemed to refer to the consortium created by this
10 act.
11 Section 20. Repeals.
12 As much of section 203 as refers to the board of the Ben
13 Franklin Partnership Fund and sections 448(n), 448(n.1) and
14 2503-B of the act of April 9, 1929 (P.L.177, No.175), known as
15 The Administrative Code of 1929, are repealed.
16 Section 21. Effective date.
17 This act shall take effect immediately.
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