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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1015, 1096               PRINTER'S NO. 1247

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 876 Session of 2001


        INTRODUCED BY DENT, PUNT, COSTA, CORMAN, ERICKSON, THOMPSON,
           BOSCOLA, WAUGH, GERLACH, KUKOVICH, TOMLINSON, ORIE, LOGAN AND
           WENGER, MAY 17, 2001

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 21, 2001

                                     AN ACT

     1  Creating the Ben Franklin Technology Development Authority;
     2     defining its powers and duties; establishing the Ben Franklin
     3     Technology Development Authority Fund; and making a repeal.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as The Ben Franklin
     8  Technology Development Authority Act.
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the
    12  context clearly indicates otherwise:
    13     "Authority."  The Ben Franklin Technology Development
    14  Authority.
    15     "Ben Franklin Technology Partner" or "partner."  A nonprofit
    16  corporation certified in accordance with this act.
    17     "Board."  The Board of Directors of the Ben Franklin

     1  Technology Development Authority.
     2     "Department."  The Department of Community and Economic
     3  Development of the Commonwealth.
     4     "Private sector funds."  Monetary or in-kind support from
     5  private businesses, corporations, individuals, trade
     6  associations, foundations, federally and locally supported grant
     7  programs and other non-Commonwealth sources. The term includes
     8  machinery and equipment and other forms of tangible assets
     9  approved by the Ben Franklin Technology Development Authority.
    10     "Secretary."  The Secretary of Community and Economic
    11  Development of the Commonwealth.
    12  Section 3.  Ben Franklin Technology Development Authority.
    13     (a)  Creation.--There is hereby created a public authority
    14  and instrumentality of the Commonwealth known as the Ben
    15  Franklin Technology Development Authority. The authority shall
    16  be a body corporate and politic and exercise the powers of the
    17  Commonwealth as an agency of the Commonwealth.
    18     (b)  Management.--The powers of the authority shall be
    19  exercised by the board.
    20     (c)  Staffing.--The department shall provide staff services
    21  to the authority. The department may, with the approval of the
    22  Governor, contract with consultants or other entities to augment
    23  these services as needed. No more than 3% of funds annually
    24  appropriated to the authority shall be used to pay
    25  administrative costs, expenses and fees associated with the
    26  operations of the authority.
    27     (d)  Powers.--The authority, through action of the board,
    28  shall have all of the following powers:
    29         (1)  To adopt bylaws, guidelines and regulations as it
    30     deems necessary.
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     1         (2)  To contract and to execute instruments necessary or
     2     convenient for the carrying on of its business.
     3         (3)  To appoint committees and subcommittees as are
     4     needed.
     5         (4)  To sue and be sued, complain and defend in court.
     6         (5)  To accept funds from all available sources.
     7     (e)  Duties.--The authority shall encourage and coordinate
     8  programs and investments which advance the competitiveness of
     9  Commonwealth companies in the global economy. The authority
    10  shall:
    11         (1)  Develop policies and implement programs which
    12     promote an entrepreneurial business environment, advances
    13     technologies and a technology-ready work force.
    14         (2)  Select and certify four regional nonprofit
    15     corporations as partners.
    16         (3)  Coordinate funding for the programs, initiatives and
    17     actions of the authority and the partners.
    18         (4)  Award grants and other forms of financial incentives
    19     to companies, economic development agencies, educational
    20     institutions, government agencies or other entities for
    21     research activities related to economic development at
    22     academic and research institutions and community-based and
    23     economic development technology initiatives.
    24         (5)  Establish a revolving loan fund for the purpose of
    25     making financing available to technology companies.
    26         (6)  Invest in companies, economic development agencies,
    27     educational institutions, government agencies or other
    28     entities as necessary to carry out the authority's
    29     activities.
    30         (7)  Assist efforts to identify and pursue funding
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     1     opportunities from the Federal Government and other sources.
     2         (8)  Establish and require audits, disclosures and other
     3     review procedures for all activities funded by the authority.
     4     (f)  Debt restriction.--Notwithstanding any other provisions
     5  of this act to the contrary, the authority may not issue any
     6  bonds, notes or any other obligation evidencing a debt or
     7  liability of the authority, the Commonwealth or any of its
     8  political subdivisions.
     9  Section 4.  Board.
    10     (a)  Members.--The authority shall be governed by a board
    11  consisting of 21 members. The following individuals shall be
    12  members of the board:
    13         (1)  The Governor.
    14         (2)  The Secretary of Community and Economic Development.
    15         (3)  The Secretary of Education.
    16         (4)  The Secretary of Administration.
    17         (5)  Seven SIX representatives from the technology         <--
    18     business sector to be appointed by the Governor, four of whom
    19     shall be selected from the current members of the regional
    20     partners' boards of directors, and at least one from the
    21     private capital community.
    22         (6)  One representative from the Pennsylvania Economic
    23     Development Association to be appointed by the Governor.
    24         (7)  One representative from the local government sector
    25     to be appointed by the Governor.
    26         (8)  One representative from the community development
    27     sector to be appointed by the Governor.
    28         (9)  ONE REPRESENTATIVE FROM ORGANIZED LABOR TO BE         <--
    29     APPOINTED BY THE GOVERNOR.
    30         (9) (10)  Three representatives from the education sector  <--
    20010S0876B1247                  - 4 -

     1     to be appointed by the Governor.
     2         (10) (11)  Four members of the General Assembly appointed  <--
     3     as follows:
     4             (i)  One member appointed by the President pro
     5         tempore of the Senate.
     6             (ii)  One member appointed by the Minority Leader of
     7         the Senate.
     8             (iii)  One member appointed by the Speaker of the
     9         House of Representatives.
    10             (iv)  One member appointed by the Minority Leader of
    11         the House of Representatives.
    12     (b)  Terms.--
    13         (1)  The Governor, the secretary, the Secretary of
    14     Education and the Secretary of Administration shall serve for
    15     as long as they hold their respective positions.
    16         (2)  Those remaining members of the authority initially
    17     appointed by the Governor shall serve for the following term
    18     of years:
    19             (i)  Four representatives from the private sector and
    20         two representatives from the education sector shall serve
    21         terms of four years.
    22             (ii)  Three representatives from the private sector,
    23         one representative from the education sector, the
    24         representative from the Pennsylvania Economic Development
    25         Association, the representative from the local government
    26         sector and the representative from the community
    27         development sector shall serve for terms of two years.
    28         (3)  All of the respective successors appointed under
    29     subsection (a)(5), (6), (7), (8) and (9), (9) AND (10) shall   <--
    30     serve for terms of four years or until their respective
    20010S0876B1247                  - 5 -

     1     successors shall be duly appointed by the Governor. Any
     2     members appointed to fill a vacancy created otherwise than by
     3     expiration of term shall be appointed for the unexpired term
     4     of the member whom he or she is to succeed.
     5         (4)  The members of the General Assembly shall serve
     6     terms of two years, such terms to run concurrently with the
     7     term of the legislative session.
     8     (c)  Designees.--A public officer of the board may designate
     9  an officer or employee of the Commonwealth to represent him or
    10  her at meetings of the board. A designee may lawfully vote and
    11  otherwise act on behalf of the member of the board. The
    12  designation shall be in writing, delivered to the authority and
    13  continue in effect until revoked or amended in writing.
    14     (d)  Compensation.--The members of the board shall receive no
    15  compensation for their services but shall be reimbursed for
    16  their expenses actually incurred in the performance of their
    17  official duties under this act.
    18     (e)  Organization.--The secretary shall be the chairman and
    19  chief executive officer of the board. The chairman may designate
    20  an officer or employee of the department to chair board meetings
    21  in his absence. The board shall elect a secretary and treasurer
    22  from its members at the first meeting of each calendar year.
    23     (f)  Quorum.--A majority of the members of the board shall
    24  constitute a quorum of the board for the purpose of organizing
    25  the authority and conducting the business. Only members or their
    26  designees who are physically present at a meeting or able to
    27  participate fully in the deliberations by appropriate
    28  telecommunications means shall count toward a quorum of the
    29  board. Action shall be taken by a vote of a majority of the
    30  members present and voting unless otherwise specified in this
    20010S0876B1247                  - 6 -

     1  act.
     2     (g)  Committees.--The board may appoint committees to advise
     3  and assist its work. A committee may not certify a partner or
     4  award a grant. Committees of the board shall be appointed by the
     5  chairman and may consist of board members and nonmembers.
     6  Section 5.  Ben Franklin Technology Partners.
     7     The Ben Franklin Technology Partners shall be independent
     8  nonprofit institutions, working individually and in partnership
     9  with each other, to advance the development of new technologies
    10  in this Commonwealth. The partners will be overseen by regional
    11  boards of directors comprised of economic development,
    12  university or nonprofit research institutions and private
    13  industry representatives, with at least 50% representation from
    14  private industry. The activities of the partners may include,
    15  but not be limited to, the following:
    16         (1)  Serve as the Commonwealth's key regional partners in
    17     identifying, developing, adapting and implementing advanced
    18     technologies to enable the growth and competitiveness of
    19     existing and emerging companies through technology
    20     development, commercialization and implementation.
    21         (2)  Act as regional facilitators and managers for
    22     interactions, programs and initiatives by and among the
    23     authority, technology enterprises, economic development
    24     organizations, corporate community, academic/research
    25     institutions, government, organized labor and other interests
    26     working collaboratively to advance the development of a
    27     technology-based economy across this Commonwealth.
    28         (3)  Directly provide, and serve as the conduit to, seed
    29     and later stage capital for existing and emerging companies
    30     involved in the development and commercialization of
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     1     technologically advanced products and processes.
     2         (4)  Develop, provide or support business incubation
     3     resources and space and facilitate the development of
     4     technology business campuses.
     5         (5)  Establish and administer a research grant fund for
     6     the economic impact assessments of university-based
     7     technology development projects seeking funding through the
     8     authority.
     9         (6)  Establish partnerships to support and enhance the
    10     scale, scope and impact of initiatives that support the
    11     purpose and mission of the authority and the partners.
    12  Section 6.  Certification.
    13     (a)  Partners certified by authority.--A nonprofit
    14  corporation may submit an application for certification as a
    15  partner to the authority. After a review of the applications,
    16  the authority shall select and certify four regional nonprofit
    17  corporations as partners. The authority shall select one partner
    18  from each of the four regions of this Commonwealth meeting its
    19  criteria and the requirements of section 5. The authority shall
    20  modify or revoke a partner's certification consistent with the
    21  regulations, policies and guidelines of the authority. The
    22  authority may change the number of regions or change the minimum
    23  service boundary within a given region with a two-thirds
    24  majority vote of the board. A partner in existence and in
    25  receipt of funds from the department as of the effective date of
    26  this act is hereby deemed certified as a partner.
    27     (b)  Partners certified by secretary.--The secretary may
    28  certify nonprofit corporations as partners and may establish
    29  their geographical boundaries. Such partners and geographical
    30  boundaries shall be in addition to those certified or
    20010S0876B1247                  - 8 -

     1  established by the authority under subsection (a).
     2  Section 7.  Grants to partners.
     3     (a)  Awards.--A partner may apply for a grant by submitting
     4  an application to the authority. After review and approval of
     5  the application, the authority shall sign a grant agreement with
     6  the partner and award a grant. The grant agreement shall permit
     7  the partner to award grants and other forms of financial
     8  assistance to entities only if matched by private sector funds
     9  on a minimum basis to be established by the authority.
    10     (b)  Implementation.--Upon receipt of a grant pursuant to
    11  this section, a partner shall implement the terms of the grant.
    12  Failure to comply with the terms of the grant agreement shall
    13  result in forfeiture of the grant.
    14  Section 8.  Reporting.
    15     A partner shall annually submit the following information to
    16  the authority:
    17         (1)  The partner's current mailing address and telephone
    18     number.
    19         (2)  A copy of the partner's current articles of
    20     incorporation and bylaws.
    21         (3)  A list of the partner's current officers and
    22     directors.
    23         (4)  An independent audit covering all funds received
    24     from the Commonwealth, AND FUNDS RECEIVED FROM COMMONWEALTH    <--
    25     SUPPORT, SUCH AS PAYBACKS, REIMBURSEMENTS, INVESTMENT
    26     RETURNS, FEES FOR SERVICES, CASH RESERVES, INTEREST, RETURN
    27     OF DEPRECIATION AND ANY OTHER SIMILAR FORMS OF INCOME WHICH
    28     RESULT AT LEAST PARTIALLY FROM INITIAL EXPENDITURE OF
    29     COMMONWEALTH FUNDS. THE AUDIT SHALL INCLUDE ALL OF THE
    30     COMMUNICATIONS BETWEEN THE AUDITORS AND THE MANAGERS OF THE
    20010S0876B1247                  - 9 -

     1     PARTNER. THE AUDIT SHALL BE CONDUCTED IN ACCORDANCE WITH
     2     APPROPRIATE GOVERNMENT AUDITING STANDARDS AND SHALL BE A
     3     PUBLIC RECORD. THE PARTNER SHALL PROVIDE COPIES OF ALL AUDITS
     4     TO THE DEPARTMENT.
     5         (5)  Upon request, an independent audit covering all
     6     funds received and partner activities supported by non-
     7     Commonwealth sources.
     8         (6)  Such other information as the authority may require.
     9  Section 9.  Records.
    10     Upon request, a partner shall permit authorized employees or
    11  agents of the authority to inspect its books and records during
    12  regular business hours.
    13  Section 10.  Ben Franklin Technology Development Authority Fund.
    14     (a)  Establishment.--There is hereby established in the State
    15  Treasury a special fund to be known as the Ben Franklin
    16  Technology Development Authority Fund into which shall be
    17  deposited any State appropriations to the authority, to the
    18  partners, to technology and research activities assigned to the
    19  authority, any other State appropriations for a purpose related
    20  to this act, Federal funds, royalties, gifts, grants, bequests,
    21  devises, private funds and funds from any other source which are
    22  designated to the authority. Funds appropriated by the General
    23  Assembly, including Federal funds, which are earmarked for a
    24  specific program or purpose, including the Ben Franklin
    25  Technology Partners and university research efforts, shall be
    26  allocated directly to that program or purpose.
    27     (b)  Appropriation of moneys.--Moneys in the fund, including
    28  Federal funds, shall be annually appropriated by the General
    29  Assembly for the purposes set forth in this act.
    30  Section 11.  Transfers.
    20010S0876B1247                 - 10 -

     1     All allocations, appropriations, equipment, files, records,
     2  contracts, agreements, obligations and other materials of the
     3  board of the Ben Franklin/IRC Partnership Fund under the act of
     4  July 2, 1993 (P.L.439, No.64), known as the Ben Franklin/IRC
     5  Partnership Act, as they pertain to the Ben Franklin Technology
     6  Centers are hereby transferred to the authority with the same
     7  force and effect as if the allocation and appropriations have
     8  been made to and the items had been the property of the
     9  authority in the first instance and as if the contracts,
    10  agreements and obligations had been incurred or entered into by
    11  the authority. The Pennsylvania Technology Investment Authority
    12  revolving loan account in the department is hereby transferred
    13  to the Ben Franklin Technology Development Authority Fund and
    14  may be established as a revolving loan fund by the authority.
    15  SECTION 12.  REPORTS TO GENERAL ASSEMBLY.                         <--
    16     (A)  DUTY.--THE AUTHORITY SHALL SUBMIT A REPORT SPECIFYING
    17  THE ACTIVITIES OF THE AUTHORITY AND EACH PARTNER AND DETAILING
    18  THE FOLLOWING:
    19         (1)  THE BUDGET OF THE AUTHORITY AND OF EACH PARTNER.
    20         (2)  INDIVIDUAL PROJECTS AND ACTIVITIES OF THE AUTHORITY
    21     AND OF EACH PARTNER.
    22         (3)  THE PROGRESS OF THE AUTHORITY AND OF EACH PARTNER IN
    23     ACHIEVING THE GOALS AND IMPLEMENTING THE POLICIES AS
    24     SPECIFIED IN SECTIONS 3 AND 5.
    25     (B)  TRANSMITTAL.--THE AUTHORITY SHALL SUBMIT THIS REPORT TO
    26  THE FOLLOWING:
    27         (1)  THE CHAIRMAN OF THE COMMUNITY AND ECONOMIC
    28     DEVELOPMENT COMMITTEE OF THE SENATE.
    29         (2)  THE MINORITY CHAIRMAN OF THE COMMUNITY AND ECONOMIC
    30     DEVELOPMENT COMMITTEE OF THE SENATE.
    20010S0876B1247                 - 11 -

     1         (3)  THE CHAIRMAN OF THE COMMERCE AND ECONOMIC
     2     DEVELOPMENT COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
     3         (4)  THE MINORITY CHAIRMAN OF THE COMMERCE AND ECONOMIC
     4     DEVELOPMENT COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
     5     (C)  TIMELY SUBMISSION OF REPORT.--THE FIRST REPORT SHALL BE
     6  SUBMITTED ON OR BEFORE MARCH 1, 2002. THEREAFTER, REPORTS SHALL
     7  BE SUBMITTED BY MARCH 1 OF EACH YEAR.
     8     (D)  COOPERATION OF PARTNERS.--A PARTNER SHALL SUBMIT
     9  INFORMATION TO THE AUTHORITY, AT A TIME AND IN A MANNER
    10  SPECIFIED BY THE AUTHORITY, WHICH ENABLES THE AUTHORITY TO
    11  COMPLY WITH THE REQUIREMENTS OF THIS SECTION.
    12  Section 12 13.  Regulations.                                      <--
    13     The authority shall develop policies and guidelines and
    14  promulgate regulations as necessary to carry out the provisions
    15  of this act.
    16  Section 13 14.  Repeal.                                           <--
    17     As much of the act of July 2, 1993 (P.L.439, No.64), known as
    18  the Ben Franklin/IRC Partnership Act, as refers to the Ben
    19  Franklin technology centers is repealed.
    20  Section 14 15.  Effective date.                                   <--
    21     This act shall take effect July 1, 2001, or immediately,
    22  whichever is later.






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