HOUSE AMENDED PRIOR PRINTER'S NOS. 1015, 1096 PRINTER'S NO. 1247
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. 20010S0876B1247 - 2 -
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 20010S0876B1247 - 3 -
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 20010S0876B1247 - 7 -
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. E7L12JAM/20010S0876B1247 - 12 -