PRIOR PRINTER'S NO. 1016 PRINTER'S NO. 1097
No. 877 Session of 2001
INTRODUCED BY DENT, PUNT, COSTA, ERICKSON, WAUGH, GERLACH,
CORMAN, BELL, ORIE, KUKOVICH, LOGAN, WENGER, LEMMOND
AND THOMPSON, MAY 17, 2001
SENATOR TILGHMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED,
JUNE 5, 2001
AN ACT
1 Establishing industrial resource centers within the Department
2 of Community and Economic Development.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Industrial
7 Resources Center Partnership Act.
8 Section 2. Legislative findings and policies. <--
9 (a) Findings.--The General Assembly finds as follows:
10 (1) A growing base of companies which leverage advanced
11 technology and innovation to achieve leading positions in
12 their markets and industries is essential to the economic
13 strength and vitality of this Commonwealth in the global,
14 knowledge-based economy.
15 (2) A growing base of productive and profitable small-
16 to-medium-sized manufacturing companies is essential to the
17 economic strength and vitality of this Commonwealth.
1 (3) The competitive success of Commonwealth companies
2 depends on the ability of each company to:
3 (i) identify, understand and serve demanding
4 domestic and foreign markets;
5 (ii) employ modern management methods in all aspects
6 of the enterprise;
7 (iii) educate, empower, reward, recruit and retain a
8 skilled work force;
9 (iv) select, implement and optimize the most
10 advanced technologies appropriate to the enterprise;
11 (v) perform as a resourceful supplier and responsive
12 customer; and
13 (vi) master the dynamic requirements for robust
14 participation in electronic business as information
15 technologies transform commerce.
16 (4) There is a need to inform the body politic, the
17 press, the academic and business communities and the
18 population at large about the significance of a successful,
19 competitive United States manufacturing industry and the
20 importance of an entrepreneurial environment to the quality
21 of life, security and economic strength.
22 (5) The industrial resource centers were created to
23 support the modernization efforts of this Commonwealth's
24 manufacturing companies through collaborative initiatives and
25 individual projects which apply and deploy advanced
26 manufacturing management and production philosophies and
27 techniques in such areas as:
28 (i) market analysis and development;
29 (ii) selection, implementation and optimization of
30 available technologies;
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1 (iii) production planning and inventory control;
2 (iv) factory and office automation;
3 (v) quality assurance and improvement;
4 (vi) lean manufacturing;
5 (vii) supply chain development;
6 (viii) work force development;
7 (ix) enterprise management; and
8 (x) electronic business and information technology.
9 (b) Policy.--
10 (1) It is declared to be the policy of the Commonwealth
11 to promote the health, safety and general welfare of its
12 inhabitants through the department by the certification of
13 industrial resource centers, which shall exist for the
14 purpose of promoting the competitiveness of Commonwealth
15 manufacturing companies through interaction of technology
16 deployment, market analysis, management modernization, work
17 force development and training programs.
18 (2) These purposes are hereby declared to be public
19 purposes for which public money may be spent.
20 (3) It is also the policy of the Commonwealth not to
21 duplicate or to mandate the delivery of technical and
22 professional economic development services currently being
23 provided or those which may be provided in the future by
24 other economic development organizations throughout this
25 Commonwealth.
26 Section 3 2. Definitions. <--
27 The following words and phrases when used in this act shall
28 have the meanings given to them in this section unless the
29 context clearly indicates otherwise:
30 "Advisory board." The Industrial Resource Center Strategic
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1 Advisory Board established in section 9.
2 "Commonwealth manufacturing company." A Pennsylvania
3 manufacturing company.
4 "Department." The Department of Community and Economic
5 Development of the Commonwealth.
6 "Industrial resource center" or "center." A nonprofit
7 corporation, incorporated for the purposes of enhancing and
8 supporting the competitive ability of Commonwealth manufacturers
9 by helping them to identify, assess, select, implement and
10 optimize techniques and technologies.
11 "Manufacturing." The giving of new shapes, new qualities or
12 new combinations to matter by the application of skill and labor
13 thereto.
14 "Private sector funds." Monetary or in-kind support from
15 private businesses, corporations, individuals, trade
16 associations, foundations, federally and locally supported grant
17 programs and other non-Commonwealth sources.
18 "Secretary." The Secretary of Community and Economic
19 Development of the Commonwealth.
20 Section 4 3. Powers and duties of department. <--
21 The department shall have the following powers and duties:
22 (1) To take responsibility for overall funding
23 allocation, direct policy development and foster coordination
24 among the industrial resource centers.
25 (2) To monitor the development of State and regional
26 plans to advance the economy of this Commonwealth in relation
27 to manufacturing performance and to promote collaboration
28 between regional entities and Commonwealth agencies in the
29 preparation and execution of such plans.
30 (3) To encourage and assist efforts to identify and
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1 pursue Federal and other funding opportunities, particularly
2 those leading to or supporting Statewide strategic
3 initiatives.
4 (4) To establish guidelines and regulations dealing with
5 the program as it is deemed appropriate and consistent.
6 (5) TO ESTABLISH CRITERIA FOR AND SELECT AND CERTIFY <--
7 NONPROFIT CORPORATIONS AS INDUSTRIAL RESOURCE CENTERS.
8 (5) (6) To review the financial and disclosure <--
9 information submitted by the centers and insure that
10 independent audits and regional board oversight are in place
11 which should reasonably be able to detect and respond to any
12 matters of impropriety at the centers.
13 Section 5 4. Industrial resource centers. <--
14 An industrial resource center shall:
15 (1) Serve manufacturing industries in this Commonwealth.
16 (2) Work with companies, such as engineering design,
17 software engineering, accounting, educational corporations
18 and institutions and distribution centers, to help specific
19 manufacturing firms serviced by those companies that
20 modernize their manufacturing techniques and technologies.
21 (3) Offer manufacturers comprehensive assistance which
22 may include, but is not limited to:
23 (i) The capacity to help manufacturing firms
24 evaluate those elements which are critical to their
25 competitive ability, such as implementation of
26 commercially available process technologies, continuous
27 improvement in quality, development of work force skills
28 and understanding the nature of global markets.
29 (ii) The ability to assist companies in identifying
30 and applying appropriate technologies.
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1 (iii) The ability to transmit products and
2 techniques to improve manufacturing processes.
3 (iv) Information services which provide
4 manufacturers with practical data on business issues and
5 the availability and capability of commercially available
6 processes and technologies and assistance with
7 implementation.
8 (v) The development of demonstration sites which
9 manufacturers can visit to learn about and evaluate
10 technologies.
11 (vi) Providing manufacturers with services designed
12 to help them better understand and apply modern
13 manufacturing techniques and concepts.
14 (vii) Working with the department and other State
15 agencies and local or regional organizations in the
16 implementation of economic development plans.
17 (viii) Providing manufacturers with marketing
18 strategies and assistance in training and work force
19 development.
20 (4) Represent a consortium of interest designed to meet
21 the needs of manufacturers in their particular regions.
22 (5) Partner with private sector firms in the development
23 of joint initiatives and ventures that address the needs of
24 and benefit manufacturers.
25 (6) Be an independent nonprofit institution overseen by
26 a regional board of directors comprising private industry,
27 economic development organization and university and
28 educational institution representatives, with at least 50%
29 representation from privacy industry.
30 (7) Complement and cooperate with every other center and
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1 make every effort to share expertise and clientele to develop
2 a strong Statewide network.
3 SECTION 5. CERTIFICATION. <--
4 A NONPROFIT CORPORATION MAY SUBMIT AN APPLICATION FOR
5 DESIGNATION AS AN INDUSTRIAL RESOURCE CENTER TO THE DEPARTMENT.
6 AFTER A REVIEW OF THE APPLICATIONS, THE DEPARTMENT SHALL SELECT
7 AND CERTIFY NONPROFIT CORPORATIONS MEETING ITS CRITERIA AND THE
8 REQUIREMENTS OF SECTION 5 AS INDUSTRIAL RESOURCE CENTERS. THE
9 DEPARTMENT MAY MODIFY OR REVOKE AN INDUSTRIAL RESOURCE CENTER'S
10 CERTIFICATION CONSISTENT WITH THE REGULATIONS, POLICIES AND
11 GUIDELINES OF THE DEPARTMENT. AN INDUSTRIAL RESOURCE CENTER IN
12 EXISTENCE AND IN RECEIPT OF FUNDS FROM THE BEN FRANKLIN/IRC
13 PARTNERSHIP AS OF THE EFFECTIVE DATE OF THIS ACT IS HEREBY
14 DEEMED CERTIFIED AS AN INDUSTRIAL RESOURCE CENTER.
15 Section 6. Requirement of matching funds.
16 Funds in the form of a grant to an industrial resource center
17 or to regional partners by the partnership pursuant to this act <--
18 shall be matched by private sector funds on a minimum basis to
19 be established by the department. Private matching funds shall
20 include, but not be limited to, monetary on in-kind support from
21 private businesses, corporations, individuals, trade
22 associations, foundations, federally and locally subsidized
23 grants and other forms of non-Commonwealth support. For partners <--
24 only, private matching funds shall also include machinery and
25 equipment.
26 Section 7. Reporting requirements.
27 Centers shall be required to annually submit the following to
28 the department:
29 (1) The center's current mailing address and telephone
30 number.
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1 (2) A copy of the center's current articles of
2 incorporation and bylaws if they are amended during the
3 previous year.
4 (3) A list of the center's current officers and
5 directors.
6 (4) Financial information as the department may request.
7 However, at a minimum, centers shall submit an independent
8 audit which covers all funds received directly from the
9 Commonwealth and funds derived from Commonwealth support,
10 such as paybacks, reimbursements, investment returns, fees
11 for services and any other similar forms of income which
12 result at lease partially from initial expenditure of
13 Commonwealth funds. Upon request, centers shall also furnish
14 general financial and program information about activities at
15 the center supported entirely by non-Commonwealth sources,
16 such as Federal or foundation grants arranged directly by the
17 center.
18 (5) Disclosure information of the center's officers and
19 directors as the department may require to ensure the
20 integrity of this act.
21 Section 8. Repeal.
22 The act of July 2, 1993 (P.L.439, No.64), known as the Ben
23 Franklin/IRC Partnership Act, is repealed insofar as it relates
24 to industrial resource centers.
25 Section 9. Industrial Resource Center Strategic Advisory Board.
26 (a) Establishment.--There is hereby established within the
27 department the IRC Strategic Advisory Board.
28 (b) Members.--The advisory board shall be composed of the
29 following members:
30 (1) The secretary.
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1 (2) Four members of the General Assembly appointed as
2 follows:
3 (i) One member appointed by the President pro
4 tempore of the Senate.
5 (ii) One member appointed by the Minority Leader of
6 the Senate.
7 (iii) One member appointed by the Speaker of the
8 House of Representatives.
9 (iv) One member appointed by the Minority Leader of
10 the House of Representatives.
11 (3) Seven representatives from the private manufacturing
12 industry to be appointed by the Governor from nominees
13 submitted by the Industrial Resource Centers.
14 (c) Chair.--The advisory board shall be chaired by the
15 secretary.
16 (d) Compensation.--The advisory board members shall receive
17 no compensation for their services but shall be reimbursed for
18 the expenses actually incurred by them in the performance of
19 their duties under this act.
20 (e) Purpose.--The advisory board shall provide perspective
21 to the department and the Industrial Resource Centers on the
22 needs and issues of Pennsylvania manufacturers.
23 Section 10. Duties of advisory board.
24 (a) Duties.--The advisory board shall:
25 (1) Make recommendations to the department and IRCs.
26 (2) Develop strategies designed to enhance the
27 Commonwealthwide impact of the IRCs.
28 (3) Develop strategies designed to facilitate
29 communication among Pennsylvania manufacturers.
30 (b) Exclusions.--The duties of the advisory board shall not
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1 include the review and approval of annual funding proposals and
2 allocations for each of the IRCs.
3 Section 11. Effective date.
4 This act shall take effect immediately JULY 1, 2001, OR <--
5 IMMEDIATELY, WHICHEVER IS LATER.
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