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                                                      PRINTER'S NO. 3596

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2559 Session of 2000


        INTRODUCED BY HASAY, CALTAGIRONE, GORDNER, STABACK, BASTIAN,
           FLICK, BAKER, ROBERTS, KENNEY, GEIST AND SATHER, MAY 16, 2000

        REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
           MAY 16, 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 transfer
    11     of functions and for expiration.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  Sections 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 14,
    15  16, 18 and 21 of the act of July 2, 1993 (P.L.439, No.64), known
    16  as the Ben Franklin/IRC Partnership Act, are amended to read:
    17  Section 2.  Legislative findings and policy.
    18     (a)  Findings.--The General Assembly finds as follows:
    19         [(1)  A growing base of successful, small-to-medium-sized
    20     Commonwealth manufacturing companies is essential to the
    21     economic strength and vitality of this Commonwealth.
    22         (2)  The existence and growth of small-to-medium-sized

     1     Commonwealth manufacturing companies depends on the ability
     2     of these companies to:
     3             (i)  Reorient management practices toward modern
     4         manufacturing techniques and technologies.
     5             (ii)  Successfully compete in both domestic and
     6         foreign markets.
     7             (iii)  Identify, bench mark and adopt the best and
     8         most efficient practices and technologies.
     9             (iv)  Locate and hire a trained work force.
    10         (3)  There is a need to inform the body politic, the
    11     press, the academic and business communities and the
    12     population at large about the significance of a successful,
    13     competitive United States manufacturing industry to the
    14     quality of life, security and economic strength.
    15         (4)  There is a continuing need to promote, stimulate and
    16     encourage within this Commonwealth basic and applied
    17     scientific research and development and scientific and
    18     technological education.
    19         (5)  University-based consortia between business,
    20     universities and government provide these entities with the
    21     advanced technology research and development, training and
    22     education necessary to diversify this Commonwealth's economy
    23     and thereby stimulate this Commonwealth's economic growth.
    24         (6)  The industrial resource centers were created to
    25     support the modernization efforts of this Commonwealth's
    26     small-to-medium-sized manufacturing companies through
    27     collaborative initiatives and individual projects that apply
    28     and deploy advanced manufacturing management and production
    29     philosophies and techniques in such areas as:
    30             (i)  Production, planning and inventory control.
    20000H2559B3596                  - 2 -

     1             (ii)  Quality improvement.
     2             (iii)  Plant layouts.
     3             (iv)  Factory and office automation.
     4             (v)  Technology improvements.
     5             (vi)  Work force development and other training
     6         programs.
     7             (vii)  Manufacturing strategies.
     8         (7)  The Ben Franklin technology centers were created to
     9     build partnerships and provide direct assistance to help
    10     firms develop and creatively apply techniques and related
    11     practices to such activities as:
    12             (i)  Help companies to form and grow through the
    13         development and commercialization of innovative products
    14         and services.
    15             (ii)  Help manufacturers to develop and innovatively
    16         apply new technologies and practices that make them more
    17         competitive in the global market economy.
    18             (iii)  Facilitate and support consortia of private
    19         companies, academic institutions and government agencies
    20         to collaboratively advance the state of knowledge and
    21         practices.
    22             (iv)  Facilitate and support the availability of
    23         services and collaborative activities throughout this
    24         Commonwealth to provide business and technical
    25         assistance.
    26             (v)  Select firms with potential for growth and
    27         facilitate and support 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.
    20000H2559B3596                  - 3 -

     1     (b)  Policy.--
     2         (1)  It is hereby declared to be the policy of the
     3     Commonwealth to promote the health, safety and general
     4     welfare of its inhabitants through its Department of Commerce
     5     by:
     6             (i)  The creation of the Ben Franklin/IRC
     7         Partnership, which shall exist for the purpose of
     8         promoting competitiveness of Commonwealth companies
     9         through interaction of technology development,
    10         modernization and training programs.
    11             (ii)  The certification of industrial resource
    12         centers, which shall exist for the purpose of
    13         strengthening the competitive position of small-to-
    14         medium-sized Commonwealth manufacturing companies through
    15         the promotion, demonstration and transmission of modern
    16         manufacturing techniques and technologies.
    17             (iii)  The certification of Ben Franklin technology
    18         centers, which shall exist for the purpose of
    19         identifying, generating, developing and refining
    20         technology innovation opportunities for Commonwealth
    21         businesses.]
    22         (1)  A growing base of companies which leverage advanced
    23     technology and innovation to achieve leading positions in
    24     their markets and industries is essential to the economic
    25     strength and vitality of this Commonwealth in the global,
    26     knowledge-based economy.
    27         (2)  The ability of innovative, advanced technology
    28     companies to thrive depends upon the Commonwealth fostering a
    29     strong entrepreneurial business environment with adequate and
    30     appropriate people, technology and capital resources and the
    20000H2559B3596                  - 4 -

     1     collaborative capacity to link these elements together in
     2     response to market opportunities.
     3         (3)  A growing base of productive and profitable small-
     4     to-medium-sized manufacturing companies is essential to the
     5     economic strength and vitality of this Commonwealth.
     6         (4)  The competitive success of Commonwealth companies
     7     depends on the ability of each company to:
     8             (i)  identify, understand and serve demanding
     9         domestic and foreign markets;
    10             (ii)  employ modern management methods in all aspects
    11         of the enterprise;
    12             (iii)  educate, empower, reward, recruit and retain a
    13         skilled work force;
    14             (iv)  select, implement and optimize the most
    15         advanced technologies appropriate to the enterprise;
    16             (v)  perform as a resourceful supplier and responsive
    17         customer; and
    18             (vi)  master the dynamic requirements for robust
    19         participation in electronic business as information
    20         technologies transform commerce.
    21         (5)  There is a need to inform the body politic, the
    22     press, the academic and business communities and the
    23     population at large about the significance of a successful,
    24     competitive United States manufacturing industry and the
    25     importance of an entrepreneurial environment to the quality
    26     of life, security and economic strength.
    27         (6)  There is a continuing need to promote, stimulate and
    28     encourage within this Commonwealth basic and applied
    29     scientific research and development; scientific and
    30     technological education; an appropriate infrastructure to
    20000H2559B3596                  - 5 -

     1     support high risk, technology-oriented entrepreneurship; and
     2     a dynamic, cooperative network of organizations dedicated to
     3     deploying new technologies and methods to the industrial
     4     foundation of this Commonwealth.
     5         (7)  Consortia and other forms of collaboration between
     6     business, associations, universities, nonprofit research
     7     institutes and government provide these entities with the
     8     advanced technology research and development, training and
     9     education, and deployment of technologies and techniques
    10     necessary to diversify and grow the economy of this
    11     Commonwealth.
    12         (8)  The industrial resource centers were created to
    13     support the modernization efforts of this Commonwealth's
    14     manufacturing companies through collaborative initiatives and
    15     individual projects which apply and deploy advanced
    16     manufacturing management and production philosophies and
    17     techniques in such areas as:
    18             (i)  market analysis and development;
    19             (ii)  selection, implementation and optimization of
    20         available technologies;
    21             (iii)  production planning and inventory control;
    22             (iv)  factory and office automation;
    23             (v)  quality assurance and improvement;
    24             (vi)  lean manufacturing;
    25             (vii)  supply chain development;
    26             (viii)  work force development;
    27             (ix)  enterprise management; and
    28             (x)  electronic business and information technology.
    29         (9)  The Ben Franklin Technology Partners were created to
    30     serve as the Commonwealth's key regional partner to reach out
    20000H2559B3596                  - 6 -

     1     to and assist companies and communities in identifying,
     2     developing, adapting and implementing advanced technology and
     3     innovation opportunities within an entrepreneurial business
     4     environment. The Ben Franklin Technology Partners build
     5     partnerships and provide direct assistance to help firms
     6     develop and creatively apply techniques and related practices
     7     through such activities as:
     8             (i)  Helping companies to form and grow through the
     9         development and commercialization of innovative products
    10         and services.
    11             (ii)  Helping manufacturers to develop and
    12         innovatively apply new technologies and practices which
    13         make them more competitive in the global market economy.
    14             (iii)  Facilitating and supporting consortia,
    15         initiatives and strategies involving private companies,
    16         academic institutions, government agencies and other
    17         organizations to collaboratively advance the state of
    18         knowledge and practices and the ability of communities to
    19         support innovative, advanced technology companies.
    20             (iv)  Facilitating and supporting the availability of
    21         services and collaborative activities throughout this
    22         Commonwealth to provide business and technical
    23         assistance.
    24             (v)  Selecting firms with potential for growth and
    25         facilitating and supporting collaborative activities and
    26         individual initiatives designed to address the needs of
    27         manufacturing and technology-oriented companies for a
    28         well-trained work force.
    29             (vi)  Providing forms of risk and growth capital to
    30         technology-based enterprises both directly and through
    20000H2559B3596                  - 7 -

     1         the support and creation of alternative funding
     2         mechanisms.
     3     (b)  Policy.--
     4         (1)  It is declared to be the policy of the Commonwealth
     5     to promote the health, safety and general welfare of its
     6     inhabitants through the department by:
     7             (i)  The creation of the partnership board, which
     8         shall exist for the purpose of promoting, stimulating,
     9         encouraging and coordinating programs, actions, services
    10         and investments which advance the competitiveness of
    11         Commonwealth companies in the global economy through
    12         innovation; through an entrepreneurial business
    13         environment; and through the interaction of technology
    14         development, industrial modernization and work force
    15         training programs. The partnership board shall be
    16         responsible for directing policy development and
    17         coordinating the activities of all of the industrial
    18         modernization and technology-related programs in this
    19         Commonwealth.
    20             (ii)  The certification of industrial resource
    21         centers, which shall exist for the purpose of promoting
    22         the competitiveness of Commonwealth manufacturing
    23         companies through interaction of technology deployment,
    24         market analysis, management modernization, work force
    25         development and training programs.
    26             (iii)  The certification of the partners, which shall
    27         serve as the Commonwealth's key regional partner to
    28         foster an entrepreneurial environment and to grow
    29         communities of companies and institutions within their
    30         regions which leverage advanced technologies and
    20000H2559B3596                  - 8 -

     1         innovation to achieve leading roles in their markets.
     2     These purposes are hereby declared to be public purposes for
     3     which public money may be spent.
     4         (2)  It is also the policy of the Commonwealth not to
     5     duplicate or to mandate the delivery of technical and
     6     professional economic development services currently being
     7     provided or those which may be provided in the future by
     8     other economic development organizations throughout this
     9     Commonwealth.
    10  Section 3.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     ["Advisory board."  The Ben Franklin/IRC Partnership Advisory
    15  Board.
    16     "Ben Franklin technology center."  A nonprofit corporation,
    17  incorporated for the purposes of identifying and generating
    18  technology innovation opportunities among Commonwealth
    19  businesses.]
    20     "Ben Franklin Technology Partners."  One of four regional
    21  nonprofit corporations, incorporated for the purposes of serving
    22  as the Commonwealth's key regional partners to reach out to and
    23  assist companies and communities in identifying, developing,
    24  adapting and implementing advanced technology and innovation
    25  opportunities within an entrepreneurial business environment, in
    26  collaborating as a Statewide network.
    27     "Centers."  The Ben Franklin [technology centers] Technology
    28  Partners and the industrial resource centers.
    29     "Commonwealth manufacturing company."  A Pennsylvania
    30  manufacturing company.
    20000H2559B3596                  - 9 -

     1     "Department."  The Department of [Commerce] Community and
     2  Economic Development of the 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] to identify, assess, select, implement and optimize
     8  techniques and technologies.
     9     "Manufacturing."  The giving of new shapes, new qualities or
    10  new combinations to matter by the application of skill and labor
    11  thereto.
    12     "Partners."  The Ben Franklin Technology Partners.
    13     "Partnership."  The Ben [Franklin/IRC] Franklin Technology
    14  Partners/Industrial Resource Centers Partnership.
    15     "Partnership board."  The board of directors of the Ben
    16  [Franklin/IRC] Franklin Technology Partners/Industrial Resource
    17  Centers Partnership.
    18     "Private sector funds."  Monetary or in-kind support from
    19  private businesses, corporations, individuals, trade
    20  associations, foundations [and], federally and locally supported
    21  grant programs and other non-Commonwealth sources.
    22     "Secretary."  The Secretary of [Commerce] Community and
    23  Economic Development of the Commonwealth.
    24     ["Small-to-medium-sized Commonwealth manufacturing company."
    25  A Pennsylvania manufacturing company which meets the small
    26  business size standards established by the United States Small
    27  Business Administration.]
    28  Section 4.  Ben [Franklin/IRC] Franklin Technology
    29                 Partners/Industrial Resource Centers Partnership.
    30     (a)  Creation.--A body corporate and politic, to be known as
    20000H2559B3596                 - 10 -

     1  the Ben [Franklin/IRC] Franklin Technology Partners/Industrial
     2  Resource Centers Partnership, is hereby created as a public
     3  authority and instrumentality of the Commonwealth. [This
     4  authority shall exercise the powers of the Commonwealth as an
     5  agency of the Commonwealth.]
     6     (b)  Members.--The partnership board shall be composed of the
     7  following members:
     8         (1)  The secretary.
     9         (2)  A representative of the Governor's Office with
    10     responsibilities for technology, to be appointed by the
    11     Governor.
    12         (3)  [Five] Ten representatives from the private
    13     manufacturing or advanced technology business sector to be
    14     appointed by the Governor, at least [two] four of whom [shall
    15     be representatives of small-to-medium-sized businesses.] must
    16     represent regional Ben Franklin Technology Partners boards
    17     and at least four of whom must represent industrial resource
    18     center boards. One of these ten should come from the private
    19     capital community.
    20         [(4)  Two representatives from the education sector to be
    21     appointed by the Governor, one of whom shall be a president
    22     or board member of a four-year college or university and one
    23     of whom shall be a president or board member of an
    24     institution that provides vocational instruction.]
    25         (4)  Two representatives from the education sector in
    26     positions that are reflective of the programs assigned to the
    27     board to be appointed by the Governor.
    28         (5)  A representative from organized labor to be
    29     appointed by the Governor.
    30         [(6)  The chairman of the Milrite Council.]
    20000H2559B3596                 - 11 -

     1         (7)  Four representatives of the General Assembly
     2     appointed as follows:
     3             (i)  One representative appointed by the President
     4         pro tempore of the Senate.
     5             (ii)  One representative appointed by the Minority
     6         Leader of the Senate.
     7             (iii)  One representative appointed by the Speaker of
     8         the House of Representatives.
     9             (iv)  One representative appointed by the Minority
    10         Leader of the House of Representatives.
    11     (b.1)  Ethics.--
    12         (1)  No individual who is an officer or employee of the
    13     partners, who is an officer or employee of an industrial
    14     resource center or who is in a position to benefit
    15     financially from any decision or undertaking of the
    16     partnership board may be a member of the partnership.
    17         (2)  Each member under subsection (b)(1), (2) and (7)
    18     shall be deemed a "public official" for purposes of 65
    19     Pa.C.S. Ch. 11 (relating to ethics standards and financial
    20     disclosure).
    21     (c)  Chair.--The secretary shall chair the partnership board
    22  and shall be authorized to designate an officer or employee with
    23  broad policy responsibility within the department in accordance
    24  with section 6(c) to chair partnership board meetings in his
    25  absence.
    26     (d)  Terms.--
    27         (1)  The secretary and the representative of the
    28     Governor's Office with responsibilities for technology shall,
    29     for as long as they hold their respective positions, serve on
    30     the partnership board for terms of four years, the terms to
    20000H2559B3596                 - 12 -

     1     run concurrently with that of the Governor.
     2         (2)  Those remaining members of the partnership board
     3     initially appointed by the Governor shall serve for the
     4     following term of years:
     5             (i)  [Two] Four representatives from the private
     6         sector, one representative from the education sector and
     7         the labor representative shall serve terms of four years.
     8             (ii)  [Two] Three representatives from the private
     9         sector and one representative from the education sector
    10         shall serve for terms of three years.
    11             (iii)  [One representative] Three representatives
    12         from the private sector shall serve a term of two years.
    13         (3)  The representatives of the General Assembly shall
    14     serve terms of two years, such terms to run concurrently with
    15     the term of the legislative session.
    16  All of their respective successors shall serve for terms of four
    17  years or until their respective successors shall be duly
    18  appointed by the Governor. Any [member] members appointed to
    19  fill a vacancy created otherwise than by expiration of term
    20  shall be appointed for the unexpired term of the member whom he
    21  is to succeed.
    22     (e)  Compensation.--The members shall receive no compensation
    23  for their services but shall be reimbursed for their expenses
    24  actually incurred by them in the performance of their duties
    25  under this act.
    26  Section 5.  Powers and duties of partnership.
    27     (a)  General rule.--The partnership shall have the following
    28  powers and duties:
    29         [(1)  To promote, stimulate and encourage competitiveness
    30     through interaction of technology development, deployment,
    20000H2559B3596                 - 13 -

     1     modernization and education and training programs.
     2         (2)  To monitor the development of State and regional
     3     plans to maximize coordination and cooperation between the
     4     centers.
     5         (3)  To ensure that the activities of the centers are
     6     coordinated to the greatest possible extent with other
     7     organizations responsible for these four spheres of business
     8     assistance:
     9             (i)  Technology assistance.
    10             (ii)  Business finance.
    11             (iii)  Business development.
    12             (iv)  Education and training.
    13         (4)  To coordinate efforts to identify and pursue Federal
    14     and State funding opportunities, including opportunities to
    15     assist defense-based firms in converting to nondefense
    16     activities.]
    17         (1)  To promote, stimulate, encourage and coordinate
    18     programs, actions, services and investments which advance the
    19     competitiveness of Commonwealth companies in the global
    20     economy through innovation; an entrepreneurial business
    21     environment and the interaction of technology development,
    22     technology deployment, industrial modernization, market
    23     analysis and development; and work force development and
    24     training programs.
    25         (2)  To take responsibility for overall funding
    26     allocations, direct policy development and foster
    27     coordination among all technology-related programs in the
    28     Commonwealth.
    29         (3)  To advise the Governor and the executive agencies,
    30     upon request, concerning matters of science, technology,
    20000H2559B3596                 - 14 -

     1     engineering, innovation, entrepreneurship, industrial
     2     modernization and manufacturing competitiveness, which relate
     3     to economic growth and the health, safety and welfare of this
     4     Commonwealth and its citizens.
     5         (4)  To monitor the development of State and regional
     6     plans to advance the economy of this Commonwealth in relation
     7     to technology, innovation, an entrepreneurial business
     8     environment and manufacturing performance and to promote
     9     collaboration between regional entities and Commonwealth
    10     agencies in the preparation and execution of such plans.
    11         (4.1)  To encourage and assist efforts to identify and
    12     pursue Federal and other funding opportunities, particularly
    13     those leading to or supporting Statewide strategic
    14     initiatives.
    15         (5)  To adopt bylaws[, regulations] and guidelines
    16     dealing with the organization, meetings, activities and other
    17     considerations as it may deem appropriate and consistent.
    18         (6)  To make contracts of every name and nature and to
    19     execute all instruments necessary or convenient for the
    20     carrying on of its business.
    21         (7)  To conduct examinations and investigations on any
    22     relevant material for its information.
    23         (8)  To review the financial and disclosure information
    24     submitted by the centers and [request an independent audit of
    25     the center's records.] insure that independent audits and
    26     regional board oversight are in place which should reasonably
    27     be able to detect and respond to any matters of impropriety
    28     at the centers.
    29         (9)  To appoint subcommittees, as needed.
    30         (10)  To sue and be sued, implead and be impleaded,
    20000H2559B3596                 - 15 -

     1     complain and defend in all courts.
     2         (11)  To approve funding allocations to centers and other
     3     programs and entities assigned to the board.
     4         (12)  To accept funds from various sources, including,
     5     but not limited to:
     6             (i)  Separate [State] Commonwealth appropriations to
     7         [the Ben Franklin technology centers] programs and
     8         entities assigned to the board, including, but not
     9         limited to, the Ben Franklin Technology Partners and the
    10         industrial resource centers.
    11             [(ii)  Separate State appropriations to the
    12         industrial resource centers.]
    13             (iii)  Any other State appropriations, Federal funds,
    14         funds established under official orders and other
    15         statutes, royalties, gifts, grants, bequests, devises and
    16         private funds.
    17         (13)  To comply with Federal legislation and regulations.
    18     (b)  Debt restriction.--Notwithstanding any other provisions
    19  of this act, the partnership shall not have the authority to
    20  issue any bonds, notes or any other obligation evidencing a debt
    21  or liability of the partnership, the Commonwealth or any of its
    22  political subdivisions.
    23  Section 6.  Partnership board.
    24     (a)  Organization.--The powers of the partnership shall be
    25  exercised by a board consisting of the members of the
    26  partnership. Within 90 days after the effective date of this
    27  act, the partnership board shall meet and organize. The
    28  secretary shall be the chair and chief executive officer. The
    29  partnership board shall elect a secretary and treasurer from
    30  their number. At the first meeting in each year thereafter, they
    20000H2559B3596                 - 16 -

     1  shall elect from their number a secretary and treasurer.
     2     (b)  Quorum.--A majority of the members shall constitute a
     3  quorum of the partnership board for the purpose of organizing
     4  the partnership and conducting the business thereof, and all
     5  action shall be taken by a vote of a majority of the members
     6  present, unless specified otherwise in the bylaws of the
     7  partnership or in this act. Only members or their designees who
     8  are physically present at a meeting or able to participate fully
     9  in the deliberations by appropriate telecommunications means
    10  shall count toward a quorum of the partnership board.
    11     (c)  Designees.--Each public officer of the partnership board
    12  may designate an officer or employee of the Commonwealth to
    13  represent him at meetings of the partnership board. Each
    14  designee may lawfully vote and otherwise act on behalf of the
    15  member of the partnership board for whom he constitutes the
    16  designee. The designation shall be in writing delivered to the
    17  partnership and shall continue in effect until revoked or
    18  amended in writing delivered to the partnership.
    19     (d)  Staff services.--The department shall provide an
    20  executive director and staff services to the partnership for its
    21  administration of this act[, including review of the proposals
    22  submitted to the partnership by the advisory board].
    23  Section 8.  Ben Franklin/IRC Partnership Advisory Board.
    24     (a)  Creation.--There is hereby created within the department
    25  the Ben Franklin/IRC Partnership Advisory Board.
    26     (b)  Members.--The advisory board shall be composed of the
    27  following members:
    28         (1)  The chair of the board of each industrial resource
    29     center.
    30         (2)  The chair of the board of each of the Ben Franklin
    20000H2559B3596                 - 17 -

     1     technology centers.
     2         (3)  The chair of the board of the Economic Planning and
     3     Development Council.
     4         (4)  The State director of the small business development
     5     centers.
     6         (5)  The president of the Pennsylvania Economic
     7     Development Association.
     8     (c)  Chair.--The advisory board shall be chaired by two
     9  representatives, one of whom shall be selected by the chairs of
    10  the boards of the industrial resource centers and one of whom
    11  shall be selected by the chairs of the boards of the Ben
    12  Franklin technology centers. These cochairs shall attend and
    13  fully participate in the discussions held at all partnership
    14  board meetings, in order to convey to the partnership board the
    15  views of the advisory board.
    16     (d)  Votes.--For voting purposes, there shall exist 11 total
    17  votes. Four of the votes shall be equally divided among the
    18  industrial resource center chairs. Four of the votes shall be
    19  equally divided among the Ben Franklin technology center chairs.
    20  The three remaining votes shall be equally divided among the
    21  chair of the board of the Economic Planning and Development
    22  Commission, the State director of the small business development
    23  centers and the president of the Pennsylvania Economic
    24  Development Association.
    25     (e)  Term.--All members of the advisory board shall serve for
    26  as long as they continue to hold the positions outlined above.
    27     (f)  Compensation.--The advisory board members shall receive
    28  no compensation for their services but shall be reimbursed for
    29  their expenses actually incurred by them in the performance of
    30  their duties under this act.
    20000H2559B3596                 - 18 -

     1     (g)  Purpose.--The advisory board shall facilitate discussion
     2  among the organizations represented to promote better
     3  coordination of services and opportunities.
     4     (h)  Staff support.--The staff to the partnership shall
     5  provide staff support to the advisory board.
     6  Section 9.  Duties of advisory board.
     7     The advisory board shall:
     8         (1)  Make recommendations to the partnership.
     9         (2)  Issue periodic reports.
    10         (3)  Sponsor and conduct conferences and studies.
    11         (4)  Collect and disseminate information.
    12         (5)  Develop strategies designed to coordinate the
    13     efforts of the centers, promote joint funding proposals for
    14     each of the centers and develop strategies designed to
    15     facilitate the sharing of information and the best and most
    16     efficient manufacturing practices.
    17  The duties of the advisory board shall not include the review
    18  and approval of annual funding proposals and allocations for
    19  each of the centers.]
    20  Section 10.  Industrial resource centers.
    21     An industrial resource center shall:
    22         (1)  Serve manufacturing industries in this Commonwealth.
    23         (1.1)  Work with companies, such as engineering design,
    24     software engineering, accounting, educational corporations
    25     and institutions and distribution centers, to help specific
    26     manufacturing firms serviced by those companies modernize
    27     their manufacturing techniques and technologies.
    28         (2)  Offer manufacturers comprehensive assistance which
    29     may include, but is not limited to:
    30             (i)  The capacity to help manufacturing firms
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     1         evaluate those elements which are critical to their
     2         competitive ability, such as [the need for]
     3         implementation of commercially available process
     4         [technology, the need for] technologies, continuous
     5         improvement in quality, development of work force skills
     6         and understanding the nature of [existing and future]
     7         global markets.
     8             (ii)  The ability to assist companies in identifying
     9         and applying appropriate technologies.
    10             (iii)  The ability to transmit products and
    11         techniques to improve [the] manufacturing [process]
    12         processes.
    13             (iv)  [An information service designed to]
    14         Information services which provide manufacturers with
    15         practical data on business issues and the availability
    16         and capability of commercially available processes and
    17         technologies and assistance with implementation.
    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] and apply
    23         modern 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         work force 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     manufacturers in their particular regions.
     3         (4)  Be an independent nonprofit institution overseen by
     4     a regional board of directors comprising private industry,
     5     economic development organization and university and
     6     educational institution representatives, with at least 50%
     7     representation from private industry.
     8         (5)  Complement and cooperate with every other center and
     9     [shall] make every effort to share expertise and clientele to
    10     develop a strong Statewide network.
    11  [Section 11.  Ben Franklin technology centers.
    12     A Ben Franklin technology center shall:
    13         (1)  Act to assist companies and regions to identify and
    14     develop local technology opportunities which make significant
    15     contributions to this Commonwealth's economy.
    16         (2)  Offer businesses comprehensive assistance which may
    17     include, but not be limited to:
    18             (i)  Development and strengthening of joint research
    19         and development efforts, including facilities for
    20         advanced technologies activities, equipment, personnel,
    21         land and related activities, which will lead to new
    22         technologies which will create or preserve jobs.
    23             (ii)  Providing training and curriculum development
    24         related to advanced technology in order to provide a
    25         skilled work force to secure employment in advanced
    26         technology industries.
    27             (iii)  Technical assistance and technology transfer
    28         activities on an areawide or Statewide basis to transfer
    29         research and development activities into the marketplace.
    30             (iv)  Assistance through small business incubators,
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     1         including, but not limited to, space services and
     2         technical assistance.
     3             (v)  Market development, feasibility studies and
     4         other activities related to increasing jobs in advanced
     5         technology industries.
     6             (vi)  Staff support for advanced technology councils
     7         or other mechanisms to encourage labor, business,
     8         university and government linkages in promoting advanced
     9         technology industrial diversification.
    10             (vii)  Facilitate establishment of technology parks,
    11         which will serve as locations for facilities devoted to
    12         research and development and technology-intensive light
    13         manufacturing.
    14         (3)  Represent a consortium of interest designed to meet
    15     the needs of businesses in their particular regions.
    16         (4)  Be an independent nonprofit institution overseen by
    17     a regional board of directors comprising economic
    18     development, university and private industry participants,
    19     with at least 50% representation from private industry.
    20         (5)  Complement and cooperate with every other center and
    21     shall make every effort to share expertise and clientele to
    22     develop a strong Statewide network.]
    23  Section 11.1.  Ben Franklin Technology Partners.
    24     The Ben Franklin Technology Partners shall do all of the
    25  following:
    26         (1)  Serve as the Commonwealth's key regional partners to
    27     reach out to and assist companies and communities in
    28     identifying, developing, adapting and implementing advanced
    29     technology and innovation opportunities within an
    30     entrepreneurial business environment.
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     1         (2)  Coordinate and provide comprehensive assistance to
     2     the growing base of innovative, advanced technology companies
     3     and their communities, examples of which include:
     4             (i)  Development and strengthening of joint research
     5         and development efforts, including facilities for
     6         advanced technologies activities, equipment, personnel,
     7         land and related activities which will lead to new or
     8         improved technologies to create or preserve jobs.
     9             (ii)  Providing, stimulating and opening access to
    10         multiple forms of seed capital and growth financing,
    11         which are needed at various stages to support innovative,
    12         advanced technology businesses and an entrepreneurial
    13         business environment.
    14             (iii)  Facilitating and supporting education and
    15         training activities and innovative approaches which
    16         complement and leverage the efforts of primary education
    17         providers and programs in order to provide a skilled work
    18         force needed by advanced technology industries.
    19             (iv)  Technical assistance and technology transfer
    20         activities on a regional or Statewide basis to transfer
    21         research and development activities into the marketplace.
    22             (v)  Assistance through small business incubators,
    23         including space, services and technical assistance.
    24             (vi)  Market development, market positioning,
    25         feasibility studies and other activities related to
    26         increasing jobs in innovative, advanced technology
    27         industries.
    28             (vii)  Support for councils or other mechanisms to
    29         encourage labor, business, university and government
    30         linkages in promoting advanced technology, technology-
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     1         based entrepreneurship and industrial diversifications.
     2             (viii)  Facilitating establishment of technology
     3         parks and other site developments which will serve to
     4         foster and support the growth and retention of
     5         innovative, advanced technology companies in a given
     6         community.
     7         (3)  Represent a consortium of interest designed to meet
     8     the needs of innovative, advanced technology businesses in
     9     their particular regions by linking people, technology and
    10     capital in response to market opportunities.
    11         (4)  Be independent nonprofit institutions overseen by
    12     regional boards of directors comprising economic development,
    13     university or nonprofit research institutions and private
    14     industry participants, with at least 50% representation from
    15     private industry.
    16         (5)  Complement and cooperate with every other center and
    17     make every effort to share expertise and clientele to develop
    18     a strong Statewide network.
    19  Section 12.  Certification.
    20     (a)  Power to review and certify.--The partnership shall have
    21  the power to review and certify all applications for regional
    22  industrial resource centers, industry-specific industrial
    23  resource centers and [Ben Franklin technology centers] partners.
    24  The standards for certification of each type of center shall be
    25  developed by the partnership [by regulation].
    26     (b)  Existing centers.--Centers in existence and in receipt
    27  of funds from the department as of the date this act becomes
    28  effective are hereby deemed certified.
    29     (c)  Modification or revocation.--The partnership shall have
    30  the power to certify centers or to modify or revoke their
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     1  certifications consistent with the [rules and] regulations to be
     2  promulgated by the partnership. The partnership also shall have
     3  the power to change the number of regions or change the minimum
     4  service boundary within a given region. These actions shall
     5  require a two-thirds majority vote of the partnership board.
     6  Section 13.  Applications for and approval of grants to centers.
     7     The partnership is hereby authorized to make grants to
     8  certified centers[; however, before any grant may be made, the
     9  certified center shall submit a funding proposal to the
    10  partnership, and the partnership shall determine whether the
    11  funding proposal is consistent with the purposes of this act.
    12  Approval by the partnership of a certified center's individual
    13  research and development or consulting projects or financial
    14  assistance will not be required, provided such projects or
    15  financial assistance are approved by the board of the certified
    16  center and meet the requirements set forth in this act and in
    17  regulations and guidelines established by the partnership.] and
    18  to monitor that those grants are utilized in compliance with
    19  broad policies and guidelines established by the partnership.
    20  The certified centers shall submit a funding proposal to the
    21  partnership according to guidelines specified by the partnership
    22  to facilitate the partnership's oversight. However, once an
    23  overall center grant or allocation is made by the partnership,
    24  responsibility for specific center strategies, programs,
    25  initiatives, projects, staffing and other spending shall rest
    26  solely with the center's regional board of directors as long as
    27  those activities adhere to the policies and guidelines of the
    28  partnership. This sole responsibility of the center boards shall
    29  apply to all funding received by the center from the
    30  Commonwealth or derived from Commonwealth funds, such as
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     1  paybacks, reimbursements, investment returns, fees for services
     2  and any other similar forms of income. The centers shall make a
     3  full accounting of all such sources and uses of funds to the
     4  partnership on an annual basis and upon request.
     5  Section 14.  Requirement of matching funds.
     6     Funds in the form of a grant made to an industrial resource
     7  center or to [a Ben Franklin technology center] regional
     8  partners by the partnership pursuant to this act shall be
     9  matched by private sector funds on a minimum basis to be
    10  established by [regulation] the partnership. Private matching
    11  funds shall include, but not be limited to, monetary or in-kind
    12  support from private businesses, corporations, individuals,
    13  trade associations, foundations [and], federally and locally
    14  subsidized grants and other forms of non-Commonwealth support.
    15  For [Ben Franklin technology centers] partners only, private
    16  matching funds shall also include machinery and equipment.
    17  [Private matching funds shall not include any fees received by
    18  an industrial resource center or a Ben Franklin technology
    19  center for direct business services relating to a project
    20  subsidized by the partnership or interest accrued on proceeds
    21  from any State grant.]
    22  Section 16.  Reporting requirements.
    23     Centers shall be required to annually submit to the
    24  partnership the following:
    25         (1)  The center's current mailing address and telephone
    26     number.
    27         (2)  A copy of the center's current articles of
    28     incorporation and bylaws if they are amended during the
    29     previous year.
    30         (3)  A list of the center's current officers and
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     1     directors.
     2         (4)  Financial information as the partnership may
     3     [require.] request. However, at a minimum, centers shall
     4     submit an independent audit which covers all funds received
     5     directly from the Commonwealth and funds derived from
     6     Commonwealth support, such as paybacks, reimbursements,
     7     investment returns, fees for services and any other similar
     8     forms of income which result at least partially from initial
     9     expenditure of Commonwealth funds. Upon request, centers
    10     shall also furnish general financial and program information
    11     about activities at the center supported entirely by non-
    12     Commonwealth sources, such as Federal or foundation grants
    13     arranged directly by the center.
    14         (5)  Disclosure information of the center's officers and
    15     directors as the partnership may require to ensure the
    16     integrity of this act.
    17  Section 18.  Transfers.
    18     All allocations, appropriations, equipment, files, records,
    19  contracts, agreements, obligations and other materials which are
    20  used, employed or expended in connection with the powers, duties
    21  or functions of the board of the Ben [Franklin] Franklin/IRC
    22  Partnership Fund under the provisions of the act of April 9,
    23  1929 (P.L.177, No.175), known as The Administrative Code of
    24  1929, [and the department in connection with the industrial
    25  resource centers] are hereby transferred to the partnership
    26  created by this act with the same force and effect as if the
    27  allocations and appropriations have been made to and the items
    28  had been the property of the partnership in the first instance
    29  and as if the contracts, agreements and obligations had been
    30  incurred or entered into by the partnership.
    20000H2559B3596                 - 27 -

     1  Section 21.  Sunset.
     2     The Ben Franklin/IRC Partnership, together with its statutory
     3  functions and duties, shall terminate and go out of existence on
     4  December 31, [2000] 2006, unless reestablished or continued by
     5  the General Assembly. The Legislative Budget and Finance
     6  Committee shall be required to present to the General Assembly a
     7  report evaluating the partnership by December 31, 1999. This
     8  report shall provide the General Assembly with a recommendation
     9  as to whether the partnership is to be continued and, if so, the
    10  changes which are suggested by the committee to improve the
    11  operation of the partnership.
    12     Section 2.  This act shall take effect in 60 days.












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