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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 1016, 1097               PRINTER'S NO. 1237

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

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

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 20, 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.  Definitions.
     9     The following words and phrases when used in this act shall
    10  have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Advisory board."  The Industrial Resource Center Strategic
    13  Advisory Board established in section 9.
    14     "Commonwealth manufacturing company."  A Pennsylvania
    15  manufacturing company.
    16     "Department."  The Department of Community and Economic


     1  Development of the Commonwealth.
     2     "Industrial resource center" or "center."  A nonprofit
     3  corporation, incorporated for the purposes of enhancing and
     4  supporting the competitive ability of Commonwealth manufacturers
     5  by helping them to identify, assess, select, implement and
     6  optimize techniques and technologies.
     7     "Manufacturing."  The giving of new shapes, new qualities or
     8  new combinations to matter by the application of skill and labor
     9  thereto.
    10     "Private sector funds."  Monetary or in-kind support from
    11  private businesses, corporations, individuals, trade
    12  associations, foundations, federally and locally supported grant
    13  programs and other non-Commonwealth sources.
    14     "Secretary."  The Secretary of Community and Economic
    15  Development of the Commonwealth.
    16  Section 3.  Powers and duties of department.
    17     The department shall have the following powers and duties:
    18         (1)  To take responsibility for overall funding
    19     allocation, direct policy development and foster coordination
    20     among the industrial resource centers.
    21         (2)  To monitor the development of State and regional
    22     plans to advance the economy of this Commonwealth in relation
    23     to manufacturing performance and to promote collaboration
    24     between regional entities and Commonwealth agencies in the
    25     preparation and execution of such plans.
    26         (3)  To encourage and assist efforts to identify and
    27     pursue Federal and other funding opportunities, particularly
    28     those leading to or supporting Statewide strategic
    29     initiatives.
    30         (4)  To establish guidelines and regulations dealing with
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     1     the program as it is deemed appropriate and consistent.
     2         (5)  To establish criteria for and select and certify
     3     nonprofit corporations as industrial resource centers.
     4         (6)  To review the financial and disclosure information
     5     submitted by the centers and insure that independent audits
     6     and regional board oversight are in place which should
     7     reasonably be able to detect and respond to any matters of
     8     impropriety at the centers.
     9  Section 4.  Industrial resource centers.
    10     An industrial resource center shall:
    11         (1)  Serve manufacturing industries in this Commonwealth.
    12         (2)  Work with companies, such as engineering design,
    13     software engineering, accounting, educational corporations
    14     and institutions and distribution centers, to help specific
    15     manufacturing firms serviced by those companies that
    16     modernize their manufacturing techniques and technologies.
    17         (3)  Offer manufacturers comprehensive assistance which
    18     may include, but is not limited to:
    19             (i)  The capacity to help manufacturing firms
    20         evaluate those elements which are critical to their
    21         competitive ability, such as implementation of
    22         commercially available process technologies, continuous
    23         improvement in quality, development of work force skills
    24         and understanding the nature of global markets.
    25             (ii)  The ability to assist companies in identifying
    26         and applying appropriate technologies.
    27             (iii)  The ability to transmit products and
    28         techniques to improve manufacturing processes.
    29             (iv)  Information services which provide
    30         manufacturers with practical data on business issues and
    20010S0877B1237                  - 3 -

     1         the availability and capability of commercially available
     2         processes and technologies and assistance with
     3         implementation.
     4             (v)  The development of demonstration sites which
     5         manufacturers can visit to learn about and evaluate
     6         technologies.
     7             (vi)  Providing manufacturers with services designed
     8         to help them better understand and apply modern
     9         manufacturing techniques and concepts.
    10             (vii)  Working with the department and other State
    11         agencies and local or regional organizations in the
    12         implementation of economic development plans.
    13             (viii)  Providing manufacturers with marketing
    14         strategies and assistance in training and work force
    15         development.
    16         (4)  Represent a consortium of interest designed to meet
    17     the needs of manufacturers in their particular regions.
    18         (5)  Partner with private sector firms in the development
    19     of joint initiatives and ventures that address the needs of
    20     and benefit manufacturers.
    21         (6)  Be an independent nonprofit institution overseen by
    22     a regional board of directors comprising private industry,
    23     economic development organization and university and
    24     educational institution representatives, with at least 50%
    25     representation from privacy industry.
    26         (7)  Complement and cooperate with every other center and
    27     make every effort to share expertise and clientele to develop
    28     a strong Statewide network.
    29  Section 5.  Certification.
    30     A nonprofit corporation may submit an application for
    20010S0877B1237                  - 4 -

     1  designation as an industrial resource center to the department.
     2  After a review of the applications, the department shall select
     3  and certify nonprofit corporations meeting its criteria and the
     4  requirements of section 5 as industrial resource centers. The
     5  department may modify or revoke an industrial resource center's
     6  certification consistent with the regulations, policies and
     7  guidelines of the department. An industrial resource center in
     8  existence and in receipt of funds from the Ben Franklin/IRC
     9  Partnership as of the effective date of this act is hereby
    10  deemed certified as an industrial resource center.
    11  Section 6.  Requirement of matching funds.
    12     Funds in the form of a grant to an industrial resource center
    13  pursuant to this act shall be matched by private sector funds on
    14  a minimum basis to be established by the department. Private
    15  matching funds shall include, but not be limited to, monetary on
    16  in-kind support from private businesses, corporations,
    17  individuals, trade associations, foundations, federally and
    18  locally subsidized grants and other forms of non-Commonwealth
    19  support.
    20  Section 7.  Reporting requirements.
    21     Centers shall be required to annually submit the following to
    22  the department:
    23         (1)  The center's current mailing address and telephone
    24     number.
    25         (2)  A copy of the center's current articles of
    26     incorporation and bylaws if they are amended during the
    27     previous year.
    28         (3)  A list of the center's current officers and
    29     directors.
    30         (4)  Financial information as the department may request.
    20010S0877B1237                  - 5 -

     1     However, at a minimum, centers shall submit an independent
     2     audit which covers all funds received directly from the
     3     Commonwealth and funds derived from Commonwealth support,
     4     such as paybacks, reimbursements, investment returns, fees
     5     for services and any other similar forms of income which
     6     result at lease partially from initial expenditure of
     7     Commonwealth funds. Upon request, centers shall also furnish
     8     general financial and program information about activities at
     9     the center supported entirely by non-Commonwealth sources,
    10     such as Federal or foundation grants arranged directly by the
    11     center.
    12         (5)  Disclosure information of the center's officers and
    13     directors as the department may require to ensure the
    14     integrity of this act.
    15  Section 8.  Repeal.
    16     The act of July 2, 1993 (P.L.439, No.64), known as the Ben
    17  Franklin/IRC Partnership Act, is repealed insofar as it relates
    18  to industrial resource centers.
    19  Section 9.  Industrial Resource Center Strategic Advisory Board.
    20     (a)  Establishment.--There is hereby established within the
    21  department the IRC Strategic Advisory Board.
    22     (b)  Members.--The advisory board shall be composed of the
    23  following members:
    24         (1)  The secretary.
    25         (2)  Four members of the General Assembly appointed as
    26     follows:
    27             (i)  One member appointed by the President pro
    28         tempore of the Senate.
    29             (ii)  One member appointed by the Minority Leader of
    30         the Senate.
    20010S0877B1237                  - 6 -

     1             (iii)  One member appointed by the Speaker of the
     2         House of Representatives.
     3             (iv)  One member appointed by the Minority Leader of
     4         the House of Representatives.
     5         (3)  Seven SIX representatives from the private            <--
     6     manufacturing industry to be appointed by the Governor from
     7     nominees submitted by the Industrial Resource Centers.
     8         (4)  ONE REPRESENTATIVE FROM ORGANIZED LABOR TO BE         <--
     9     APPOINTED BY THE GOVERNOR.
    10     (c)  Chair.--The advisory board shall be chaired by the
    11  secretary.
    12     (d)  Compensation.--The advisory board members shall receive
    13  no compensation for their services but shall be reimbursed for
    14  the expenses actually incurred by them in the performance of
    15  their duties under this act.
    16     (e)  Purpose.--The advisory board shall provide perspective
    17  to the department and the Industrial Resource Centers on the
    18  needs and issues of Pennsylvania manufacturers.
    19  Section 10.  Duties of advisory board.
    20     (a)  Duties.--The advisory board shall:
    21         (1)  Make recommendations to the department and IRCs.
    22         (2)  Develop strategies designed to enhance the
    23     Commonwealthwide impact of the IRCs.
    24         (3)  Develop strategies designed to facilitate
    25     communication among Pennsylvania manufacturers.
    26     (b)  Exclusions.--The duties of the advisory board shall not
    27  include the review and approval of annual funding proposals and
    28  allocations for each of the IRCs.
    29  Section 11.  Effective date.
    30     This act shall take effect July 1, 2001, or immediately,
    20010S0877B1237                  - 7 -

     1  whichever is later.




















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