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        PRIOR PRINTER'S NO. 1015                      PRINTER'S NO. 1096

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

        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.
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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 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
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     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
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     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
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     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
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     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.
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     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.










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