PRINTER'S NO. 2598
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2029
Session of
2024
INTRODUCED BY MUSTELLO, OBERLANDER, JAMES, ARMANINI, CAUSER,
SMITH AND DALEY, FEBRUARY 20, 2024
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 20, 2024
AN ACT
Amending Title 12 (Commerce and Trade) of the Pennsylvania
Consolidated Statutes, providing for industrial resource
centers; continuing the Industrial Resource Center Program;
providing for powers and duties of the Department of
Community and Economic Development; and making a repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 13 heading of Title 12 of the
Pennsylvania Consolidated Statutes is amended to read:
CHAPTER 13
INDUSTRIAL RESOURCE CENTERS
[(Reserved)]
Section 2. Title 12 is amended by adding sections to read:
§ 1301. Scope of chapter.
This chapter relates to industrial resource centers.
§ 1302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Applicant." A nonprofit corporation which applies for
certification as an industrial resource center under section
1304 (relating to applications for certification as industrial
resource centers).
"Commonwealth manufacturing company." A company which
maintains a manufacturing facility in this Commonwealth.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Industrial resource center." A nonprofit corporation which
has been certified by the department as an industrial resource
center under section 1304.
"Manufacturing." The giving of new shapes, new qualities or
new combinations to matter by the application of skill and labor
to matter.
"Program." The Industrial Resource Center Program continued
under section 1303(a) (relating to powers and duties of
department).
"Secretary." The Secretary of Community and Economic
Development of the Commonwealth.
§ 1303. Powers and duties of department.
(a) Continuation.--The Industrial Resource Center Program is
continued as a program in the department.
(b) Powers and duties.-- The department shall have the
following powers and duties:
(1) To award grants to industrial resource centers under
section 1306 (relating to grants to industrial resource
centers).
(2) To take responsibility for overall funding
allocation, direct policy development and foster coordination
among the industrial resource centers.
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(3) To monitor the development of State and regional
plans to advance the economy of this Commonwealth in relation
to manufacturing performanc e.
(4) To promote collaboration between regional entities
and Commonwealth agencies in the preparation and execution of
the plans.
(5) To encourage and assist efforts to identify and
pursue Federal and other funding opportunities, particularly
opportunities leading to or supporting Statewide strategic
manufacturing sector initiatives.
(6) To establish guidelines as necessary for the
implementation of this chapter, including minimum matching
funds requirements under section 1306.
(7) To receive, evaluate and approve applications from
applicants under section 1304 (relating to applications for
certification as industrial resource centers).
(8) To establish criteria for approval of nonprofit
corporations as industrial resource centers under section
1304(d) in a manner to ensure that Commonwealth manufacturing
companies will have access to services provided under this
chapter from industrial resource centers.
(9) To review the financial and disclosure information
submitted by the industrial resource centers and ensure that
independent financial statement audits and regional board
oversight are in place which should reasonably be able to
detect and respond to any matters of impropriety at the
industrial resource centers.
§ 1304. Applications for certification as industrial resource
centers.
(a) Application.--A nonprofit corporation may submit an
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application to the department to be certified as an industrial
resource center. The application shall be on a form and in the
manner as required by the department and shall identify a
geographic region of this Commonwealth where the applicant would
provide services to Commonwealth manufacturing companies.
(b) Review.--Upon receipt of an application under subsection
(a), the department shall review the application.
(c) Requirements.--The department may only approve an
application if all of the following requirements are met:
(1) The applicant is an independent nonprofit
corporation which is incorporated for the purpose of
enhancing and supporting the competitive ability of
Commonwealth manufacturing companies to identify, assess,
select, implement and optimize techniques and technologies.
(2) The applicant is directed by a regional board of
directors comprising representatives of each of the
following:
(i) Private industry from the geographic region of
this Commonwealth where the applicant would provide
services under this chapter.
(ii) Economic development organizations,
institutions of higher education and other educational
institutions from the geographic region of this
Commonwealth where the applicant would provide services
under this chapter.
(3) No less than 50% of the regional board of directors
includes representatives under paragraph (2)(i) from the
geographic region of this Commonwealth where the applicant
would provide services under this chapter .
(4) The geographic region of this Commonwealth where the
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applicant would provide services under this chapter is not
served by an industrial resource center at the time of the
approval.
(d) Approval and certification.--If the department
determines that an applicant meets the requirements for
certification under subsection (c), the department shall certify
the applicant as an industrial resource center. The department
shall include in the certification a description of the
geographic region of this Commonwealth where the industrial
resource center shall provide services under this chapter. An
industrial resource center in existence on the effective date of
this subsection is deemed to be certified as an industrial
resource center under this chapter.
(e) Modification or revocation of certification.--The
department may modify or revoke an industrial resource center's
certification in accordance with the policies of the department
and the guidelines established under this chapter.
§ 1305 . Duties of industrial resource centers.
An industrial resource center shall:
(1) Serve manufacturing industries in this Commonwealth.
(2) Work with businesses , including engineering design,
software engineering, accounting, educational businesses and
institutions and distribution centers, to help manufacturing
firms modernize their manufacturing techniques and
technologies.
(3) Offer Commonwealth manufacturing companies
comprehensive assistance which may include:
(i) The capacity to help evaluate elements which are
critical to their competitive ability, including
implementation of commercially available process
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technologies, continuous improvement in quality,
development of work force skills and understanding the
nature of global markets.
(ii) Assisting in identifying and applying
appropriate technologies.
(iii) The ability to modernize products and
techniques to improve manufacturing processes.
(iv) Information services to provide practical data
on business issues and the availability and capability of
commercially available processes and technologies and
assistance with implementation.
(v) The development of demonstration sites which
Commonwealth manufacturing companies can visit to learn
about and evaluate technologies.
(vi) Providing services designed to help
Commonwealth manufacturing companies better understand
and apply modern manufacturing techniques and concepts.
(vii) Working with the department and other State
agencies and local or regional organizations to implement
economic development plans.
(viii) Providing marketing strategies and assistance
in training and work force development.
(4) Representing a consortium of interest designed to
meet the needs of manufacturers in the manufacturer's
particular regions.
(5) Partnering with private sector firms in the
development of joint initiatives and ventures that address
the needs of and benefit manufacturers.
(6) Complementing and cooperating with each industrial
resource center and make every effort to share expertise and
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clientele to develop a strong Statewide network.
§ 1306. Grants to industrial resource centers.
(a) Grants.--The department may award grants to industrial
resource centers from amounts available to the department for
the purposes of the program.
(b) Matching funds.--An industrial resource center which
receives a grant under this section shall secure matching funds
necessary to meet the minimum match requirements established by
the department.
(c) Source of funding.--All of the following shall be deemed
to meet the matching funds requirement under subsection (b):
(1) Monetary or in-kind support from a private business,
corporation, individual, trade association or foundation.
(2) Funding from grant programs administered by the
Federal Government or a political subdivision.
§ 1307. Reporting requirements.
(a) Annual report.--An industrial resource center shall
annually submit a report to the department. The report shall be
submitted in a form and manner required by the department.
(b) Report requirements.--A report under subsection (a)
shall include all of the following:
(1) The industrial resource center's current mailing
address, telephone number and publicly accessible Internet
website.
(2) A copy of the industrial resource center's current
articles of incorporation and bylaws if the articles of
incorporation and bylaws were amended during the previous
year.
(3) A list of the industrial resource center's current
officers and directors.
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(4) Financial and audit information as the department
may request, including independent audit which covers all
funds received directly from the Commonwealth and funds
derived from Commonwealth support, such as paybacks,
reimbursements, investment returns, fees for services and any
other similar forms of income which result at least partially
from initial expenditure of Commonwealth funds. Upon request,
industrial resource centers shall furnish general financial
and program information about activities at the center
supported entirely by non-Commonwealth sources, such as
Federal or foundation grants arranged directly by the
industrial resource center.
(5) Disclosure information of the industrial resource
center's officers and directors as the department may require
to ensure the integrity of this chapter.
(6) Any other information required by the department.
§ 1308. Annual program report.
(a) Publication.--No later than October 1, 2024, and each
October 1 thereafter, the department shall publish an annual
program report.
(b) Contents.--A program report under subsection (a) shall
include all of the following:
(1) A list of each industrial resource center which held
a certification during the prior fiscal year.
(2) The amount of grants awarded to each industrial
resource center during the prior fiscal year.
(3) Case studies of Commonwealth manufacturing companies
assisted by each industrial resource center during the prior
fiscal year, including:
(i) The type of services provided to each
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Commonwealth manufacturing company which is the subject
of the case study during the prior fiscal year.
(ii) To the extent applicable, the dollar value of
assistance provided to each Commonwealth manufacturing
company which is the subject of the case study . The
dollar value under this paragraph may include amounts
provided by an industrial resource center from private
sector funding.
(iii) The number of full-time equivalent employees
employed by each Commonwealth manufacturing company which
is the subject of the case study .
(c) Submission.--The department shall publish the program
report under this section on the department's publicly
accessible Internet website and shall submit the program report
to the chair and minority chair of the Community, Economic and
Recreational Development Committee of the Senate and the chair
and minority chair of the Commerce Committee of the House of
Representatives.
Section 3. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of 12
Pa.C.S. §§ 1301, 1302, 1303, 1304, 1305, 1306, 1307 and 1308.
(2) The act of June 22, 2001 (P.L.400, No.31), known as
the Industrial Resources Center Partnership Act, is repealed.
Section 4. The addition of 12 Pa.C.S. §§ 1301, 1302, 1303,
1304, 1305, 1306, 1307 and 1308 is a continuation of the act of
June 22, 2001 (P.L.400, No.31), known as the Industrial
Resources Center Partnership Act. Except as otherwise provided
in 12 Pa.C.S. §§ 1301, 1302, 1303, 1304, 1305, 1306, 1307 and
1308, all activities initiated under the Industrial Resources
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Center Partnership Act shall continue and remain in full force
and effect and may be completed under 12 Pa.C.S. §§ 1301, 1302,
1303, 1304, 1305, 1306, 1307 and 1308. Orders, regulations,
rules and decisions which were made under the Industrial
Resources Center Partnership Act and which are in effect on the
effective date of section 3(2) of this act shall remain in full
force and effect until revoked, vacated or modified under 12
Pa.C.S. §§ 1301, 1302, 1303, 1304, 1305, 1306, 1307 and 1308.
Contracts, obligations and collective bargaining agreements
entered into under the Industrial Resources Center Partnership
Act are not affected nor impaired by the repeal of the
Industrial Resources Center Partnership Act.
Section 5. This act shall take effect in 60 days.
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