PRIOR PRINTER'S NO. 1015 PRINTER'S NO. 1096
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
SENATOR TILGHMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, JUNE 5, 2001
AN ACT
1 Creating the Ben Franklin Technology Development Authority;
2 defining its powers and duties; establishing a fund THE BEN <--
3 FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY FUND; and making a
4 repeal.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as The Ben Franklin
9 Technology Development Authority Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Authority." The Ben Franklin Technology Development
15 Authority.
16 "Ben Franklin Technology Partner" or "partner." A nonprofit
17 corporation certified in accordance with this act.
18 "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. 20010S0876B1096 - 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 20010S0876B1096 - 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 representatives from the technology business 18 sector to be appointed by the Governor, four of whom shall be 19 selected from the current members of the regional partners' 20 boards of directors, and at least one from the private 21 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) Three representatives from the education sector to 29 be appointed by the Governor. 30 (10) Four members of the General Assembly appointed as 20010S0876B1096 - 4 -
1 follows: 2 (i) One member appointed by the President pro 3 tempore of the Senate. 4 (ii) One member appointed by the Minority Leader of 5 the Senate. 6 (iii) One member appointed by the Speaker of the 7 House of Representatives. 8 (iv) One member appointed by the Minority Leader of 9 the House of Representatives. 10 (b) Terms.-- 11 (1) The Governor, the secretary, the Secretary of 12 Education and the Secretary of Administration shall serve for 13 as long as they hold their respective positions. 14 (2) Those remaining members of the authority initially 15 appointed by the Governor shall serve for the following term 16 of years: 17 (i) Four representatives from the private sector and 18 two representatives from the education sector shall serve 19 terms of four years. 20 (ii) Three representatives from the private sector, 21 one representative from the education sector, the 22 representative from the Pennsylvania Economic Development 23 Association, the representative from the local government 24 sector and the representative from the community 25 development sector shall serve for terms of two years. 26 (3) All of the respective successors appointed under 27 subsection (a)(5), (6), (7), (8) and (9) shall serve for 28 terms of four years or until their respective successors 29 shall be duly appointed by the Governor. Any members 30 appointed to fill a vacancy created otherwise than by 20010S0876B1096 - 5 -
1 expiration of term shall be appointed for the unexpired term 2 of the member whom he or she is to succeed. 3 (4) The members of the General Assembly shall serve 4 terms of two years, such terms to run concurrently with the 5 term of the legislative session. 6 (c) Designees.--A public officer of the board may designate 7 an officer or employee of the Commonwealth to represent him or 8 her at meetings of the board. A designee may lawfully vote and 9 otherwise act on behalf of the member of the board. The 10 designation shall be in writing, delivered to the authority and 11 continue in effect until revoked or amended in writing. 12 (d) Compensation.--The members of the board shall receive no 13 compensation for their services but shall be reimbursed for 14 their expenses actually incurred in the performance of their 15 official duties under this act. 16 (e) Organization.--The secretary shall be the chairman and 17 chief executive officer of the board. The chairman may designate 18 an officer or employee of the department to chair board meetings 19 in his absence. The board shall elect a secretary and treasurer 20 from its members at the first meeting of each calendar year. 21 (f) Quorum.--A majority of the members of the board shall 22 constitute a quorum of the board for the purpose of organizing 23 the authority and conducting the business. Only members or their 24 designees who are physically present at a meeting or able to 25 participate fully in the deliberations by appropriate 26 telecommunications means shall count toward a quorum of the 27 board. Action shall be taken by a vote of a majority of the 28 members present and voting unless otherwise specified in this 29 act. 30 (g) Committees.--The board may appoint committees to advise 20010S0876B1096 - 6 -
1 and assist its work. A committee may not certify a partner or 2 award a grant. Committees of the board shall be appointed by the 3 chairman and may consist of board members and nonmembers. 4 Section 5. Ben Franklin Technology Partners. 5 The Ben Franklin Technology Partners shall be independent 6 nonprofit institutions, working individually and in partnership 7 with each other, to advance the development of new technologies 8 in this Commonwealth. The partners will be overseen by regional 9 boards of directors comprised of economic development, 10 university or nonprofit research institutions and private 11 industry representatives, with at least 50% representation from 12 private industry. The activities of the partners may include, 13 but not be limited to, the following: 14 (1) Serve as the Commonwealth's key regional partners in 15 identifying, developing, adapting and implementing advanced 16 technologies to enable the growth and competitiveness of 17 existing and emerging companies through technology 18 development, commercialization and implementation. 19 (2) Act as regional facilitators and managers for 20 interactions, programs and initiatives by and among the 21 authority, technology enterprises, economic development 22 organizations, corporate community, academic/research 23 institutions, government, organized labor and other interests 24 working collaboratively to advance the development of a 25 technology-based economy across this Commonwealth. 26 (3) Directly provide, and serve as the conduit to, seed 27 and later stage capital for existing and emerging companies 28 involved in the development and commercialization of 29 technologically advanced products and processes. 30 (4) Develop, provide or support business incubation 20010S0876B1096 - 7 -
1 resources and space and facilitate the development of 2 technology business campuses. 3 (5) Establish and administer a research grant fund for 4 the economic impact assessments of university-based 5 technology development projects seeking funding through the 6 authority. 7 (6) Establish partnerships to support and enhance the 8 scale, scope and impact of initiatives that support the 9 purpose and mission of the authority and the partners. 10 Section 6. Certification. 11 (A) PARTNERS CERTIFIED BY AUTHORITY.--A nonprofit <-- 12 corporation may submit an application for certification as a 13 partner to the authority. After a review of the applications, 14 the authority shall select and certify four regional nonprofit 15 corporations as partners. The authority shall select one partner 16 from each of the four regions of this Commonwealth meeting its 17 criteria and the requirements of section 5. The authority shall 18 modify or revoke a partner's certification consistent with the 19 regulations, policies and guidelines of the authority. The 20 authority may change the number of regions or change the minimum 21 service boundary within a given region with a two-thirds 22 majority vote of the board. A partner in existence and in 23 receipt of funds from the department as of the effective date of 24 this act is hereby deemed certified as a partner. 25 (B) PARTNERS CERTIFIED BY SECRETARY.--THE SECRETARY MAY <-- 26 CERTIFY NONPROFIT CORPORATIONS AS PARTNERS AND MAY ESTABLISH 27 THEIR GEOGRAPHICAL BOUNDARIES. SUCH PARTNERS AND GEOGRAPHICAL 28 BOUNDARIES SHALL BE IN ADDITION TO THOSE CERTIFIED OR 29 ESTABLISHED BY THE AUTHORITY UNDER SUBSECTION (A). 30 Section 7. Grants to partners. 20010S0876B1096 - 8 -
1 (a) Awards.--A partner may apply for a grant by submitting 2 an application to the authority. After review and approval of 3 the application, the authority shall sign a grant agreement with 4 the partner and award a grant. The grant agreement shall permit 5 the partner to award grants and other forms of financial 6 assistance to entities only if matched by private sector funds 7 on a minimum basis to be established by the authority. 8 (b) Implementation.--Upon receipt of a grant pursuant to 9 this section, a partner shall implement the terms of the grant. 10 Failure to comply with the terms of the grant agreement shall 11 result in forfeiture of the grant. 12 Section 8. Reporting. 13 A partner shall annually submit the following information to 14 the authority: 15 (1) The partner's current mailing address and telephone 16 number. 17 (2) A copy of the partner's current articles of 18 incorporation and bylaws. 19 (3) A list of the partner's current officers and 20 directors. 21 (4) An independent audit covering all funds received 22 from the Commonwealth. 23 (5) Upon request, an independent audit covering all 24 funds received and partner activities supported by non- 25 Commonwealth sources. 26 (6) Such other information as the authority may require. 27 Section 9. Records. 28 Upon request, a partner shall permit authorized employees or 29 agents of the authority to inspect its books and records during 30 regular business hours. 20010S0876B1096 - 9 -
1 Section 10. Fund established BEN FRANKLIN TECHNOLOGY <-- 2 DEVELOPMENT AUTHORITY FUND. 3 (A) ESTABLISHMENT.--There is hereby established in the State <-- 4 Treasury a special fund to be known as the Ben Franklin 5 Technology Development Authority Fund into which shall be 6 deposited any State appropriations to the authority, to the 7 partners, to technology and research activities assigned to the 8 authority, any other State appropriations for a purpose related 9 to this act, Federal funds, royalties, gifts, grants, bequests, 10 devises, private funds and funds from any other source which are 11 designated to the authority. Funds appropriated by the General 12 Assembly, including Federal funds, which are earmarked for a 13 specific program or purpose, including the Ben Franklin 14 Technology Partners and university research efforts, shall be 15 allocated directly to that program or purpose. Moneys in the <-- 16 fund are hereby appropriated to the authority, upon approval of 17 the Governor, to carry out the purposes of this act. 18 (B) APPROPRIATION OF MONEYS.--MONEYS IN THE FUND, INCLUDING <-- 19 FEDERAL FUNDS, SHALL BE ANNUALLY APPROPRIATED BY THE GENERAL 20 ASSEMBLY FOR THE PURPOSES SET FORTH IN THIS ACT. 21 Section 11. Transfers. 22 All allocations, appropriations, equipment, files, records, 23 contracts, agreements, obligations and other materials of the 24 board of the Ben Franklin/IRC Partnership Fund under the act of 25 July 2, 1993 (P.L.439, No.64), known as the Ben Franklin/IRC 26 Partnership Act, as they pertain to the Ben Franklin Technology 27 Centers are hereby transferred to the authority with the same 28 force and effect as if the allocation and appropriations have 29 been made to and the items had been the property of the 30 authority in the first instance and as if the contracts, 20010S0876B1096 - 10 -
1 agreements and obligations had been incurred or entered into by 2 the authority. The Pennsylvania Technology Investment Authority 3 revolving loan account in the department is hereby transferred 4 to the Ben Franklin Technology Development Authority Fund and 5 may be established as a revolving loan fund by the authority. 6 Section 12. Regulations. 7 The authority shall develop policies and guidelines and 8 promulgate regulations as necessary to carry out the provisions 9 of this act. 10 Section 13. Repeal. 11 As much of the act of July 2, 1993 (P.L.439, No.64), known as 12 the Ben Franklin/IRC Partnership Act, as refers to the Ben 13 Franklin technology centers is repealed. 14 Section 14. Effective date. 15 This act shall take effect July 1, 2001, or immediately, 16 whichever is later. E7L12JAM/20010S0876B1096 - 11 -