PRINTER'S NO. 1504
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1388
Session of
2021
INTRODUCED BY GAYDOS, HILL-EVANS, THOMAS, POLINCHOCK, ZIMMERMAN,
MASSER AND MIHALEK, MAY 14, 2021
REFERRED TO COMMITTEE ON COMMERCE, MAY 14, 2021
AN ACT
Providing for advanced manufacturing facilities and
infrastructures through business partnerships with State-
related institutions; establishing the Advanced Manufacturing
Initiative Fund and the Advanced Manufacturing Venture Loan
Program; and imposing powers and duties on the Department of
Community and Economic Development and the Pennsylvania
Economic Development Financing Authority.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Findings and declarations.
Section 103. Definitions.
Chapter 2. Advanced Manufacturing Initiative Fund
Section 201. Establishment.
Chapter 3. Advanced Manufacturing Equipment and Integrated
Systems Grants
Section 301. Findings.
Section 302. Establishment.
Section 303. Eligibility.
Section 304. Process and application.
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Section 305. Matching funds.
Section 306. Appropriation.
Chapter 4. Advanced Manufacturing Venture Loan Program
Section 401. Authorization.
Section 402. Criteria for bond issuance.
Section 403. Issuance of bonds and security.
Section 404. Sale of bonds.
Section 405. Deposit of bond proceeds.
Section 406. Payment of bond-related obligations.
Section 407. Commonwealth not to impair bond-related
obligations.
Section 408. Personal liability.
Chapter 5. Reporting Requirements and Public Access
Section 501. Reporting requirements.
Section 502. Public access to records.
Section 503. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
PRELIMINARY PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Advanced
Manufacturing Initiative Act.
Section 102. Findings and declarations.
The General Assembly finds and declares as follows:
(1) The intent of this act is to leverage the proximity
of university and private engineering expertise to establish
public-private partnerships and State-related institution
partnerships within this Commonwealth.
(2) This collaboration is designed to align with the
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Commonwealth's stated economic development goals through the
funding of grants, incentivized private investments and
business incentives to attract high-technology industries for
advanced manufacturing in this Commonwealth to:
(i) Advance and promote the general welfare of the
residents of this Commonwealth.
(ii) Foster stronger business alliances, which will
increase employment opportunities for Pennsylvanians.
(iii) Establish this Commonwealth and its university
and business partnerships as international leaders in
idea generation and the implementation of cutting-edge
advances in science and technology.
(iv) Create shared infrastructures within this
Commonwealth to leverage and maximize advanced
manufacturing techniques for producing high-value
products.
(v) Pool investments as necessary to create and
design academic and work programming that includes
academic restructuring and attracting new industry-driven
workforce and job training centers to convert and sustain
existing regional workforces to next-generation
manufacturing models and goals.
(vi) Expand and incentivize an industry-led business
environment in alignment with the Commonwealth's economic
development goals, including financial incentives for
infrastructure support.
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Advanced manufacturing." New manufacturing activities or
technologies which depend on the use and coordination of
information, automation, computation, software, sensing and
networking, or make use of materials and capabilities enabled by
the physical and biological sciences and which may involve new
ways to manufacture existing products or the manufacture of new
products emerging from new advanced technologies.
"Applicant." A State-related institution, contracting
authority or a public-private partnership to which a State-
related institution is a party which is eligible to apply for
and receive redevelopment assistance capital grants or
Commonwealth grants under this act.
"Application." A document submitted to secure funding to the
Department of Community and Economic Development or other agency
under this act.
"Application process." The steps necessary to initiate
consideration for funding or designation under this act.
"Authority." The Pennsylvania Economic Development Financing
Authority.
"Bond." Any type of revenue obligation, including a bond or
series of bonds, note, certificate or other instrument, issued
by the authority for the benefit of an applicant under this
article.
"Bond obligations." The principal of a bond and any premium
and interest payable on a bond, together with any amount owed
under a related credit agreement or a related resolution of the
authority authorizing a bond.
"Capital Facilities Debt Enabling Act." The act of February
9, 1999 (P.L.1, No.1), known as the Capital Facilities Debt
Enabling Act.
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"Contracting authority." An authority created under 53
Pa.C.S. Ch. 56 (relating to municipal authorities) or other
authority created under the laws of this Commonwealth that is
eligible to apply for and receive redevelopment assistance
capital grants under the Capital Facilities Debt Enabling Act.
"Credit agreement." A loan agreement, a revolving credit
agreement, an agreement establishing a line of credit, a letter
of credit or another agreement that enhances the marketability,
security or creditworthiness of a bond.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Final determination." A final decision issued in writing by
the Department of Community and Economic Development.
"Financing Law." The act of August 23, 1967 (P.L.251,
No.102), known as the Economic Development Financing Law.
"Fund." The Advanced Manufacturing Initiative Fund
established under section 201.
"Matching funds." Cash or in-kind contributions that
leverage non-Commonwealth funding to enhance the initiative.
"Operating organization." An entity that contracts directly
with the contracting authority to lease or operate a shared
infrastructure project facility.
"Private entity." A person, entity, group or organization
that is not the Federal Government, the Commonwealth or a
municipal authority.
"Public entity." A Commonwealth agency as defined in 62
Pa.C.S. § 103 (relating to definitions) or a municipal
authority. The term does not include the General Assembly and
its members, officers or agencies or a court or other office or
agency of the Pennsylvania judicial system.
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"Public-private partnership." An agreement between a public
entity and at least one private entity for the construction,
acquisition, management or operation of a facility created under
a shared infrastructure project.
"Shared infrastructure project." A project to create
collaborative production and manufacturing facilities for State-
related institutions and industry partnerships conducting
activities relating to advanced manufacturing, including, but
not limited to, land acquisition, acquisition or construction of
buildings, equipment, furnishings, site preparation, road and
highway improvements, water and sewer infrastructure or other
infrastructure development.
"State-related institution." Any of the following
institutions of higher education:
(1) Lincoln University.
(2) Temple University.
(3) The Pennsylvania State University.
(4) The University of Pittsburgh.
CHAPTER 2
ADVANCED MANUFACTURING INITIATIVE FUND
Section 201. Establishment.
The Advanced Manufacturing Initiative Fund is established
within the department containing accounts to issue grants to
applicants engaging in advanced manufacturing, including
purchasing equipment and integrated systems and facilities
acquisition, renovation and retrofitting. The department shall
be responsible for oversight, management and operation of the
fund.
CHAPTER 3
ADVANCED MANUFACTURING EQUIPMENT
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AND INTEGRATED SYSTEMS GRANTS
Section 301. Findings.
The General Assembly finds and declares as follows:
(1) It is in the public interest to create incentives to
support growth in advanced manufacturing capabilities to
create well-paying jobs and enhanced economic opportunities
for the people of Pennsylvania.
(2) Incentives should include recruitment and
maintenance of leading scientists and engineers at State-
related research universities for the purposes of developing
and leveraging the research capabilities of the universities
for the creation of well-paying jobs and enhanced economic
opportunities in accordance with this act.
(3) The use of money under this chapter may include
creating incentives to lure, maintain and keep a cutting-edge
knowledge base.
Section 302. Establishment.
There is established an account within the fund which shall
be administered by the department to issue grants for
specialized equipment, infrastructure and integrated systems for
use by university and private entities, public-private
partnerships and contracting authorities conducting advanced
manufacturing.
Section 303. Eligibility.
(a) Distribution.--The department may make distributions
from the fund, subject to the terms, conditions and restrictions
provided under this chapter, for the purpose of making grants to
public-private partnerships, contracting authorities and State-
related institutions conducting advanced manufacturing
including, but not limited to, the following:
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(1) Advancement in the fields of industrial processes,
mining, manufacturing, production agriculture, information
technology and biotechnology.
(2) The acquisition and installation of new machinery
and equipment, upgrading existing machinery and equipment or
retrofitting existing facilities with new or high-demand
technologies as defined by the department.
(b) Grants.--Grants shall be subject to the following
conditions:
(1) Grants shall be made to eligible public-private
partnerships, contracting authorities and State-related
institutions under this chapter.
(2) Grants shall be designed to include the purchase and
installation of new equipment and machinery, the upgrade of
existing machinery and equipment or integrated systems, or
the retrofitting of existing facilities with new or high-
demand technologies. This paragraph includes the acquisition,
application and utilization of computer hardware and
software.
(3) Applicants shall provide a financial plan for all
funding related to the project, including details regarding
the financial commitment of the parties to the project and
documentation of matching funds from non-State sources in an
amount equal to the amount being requested in the
application.
(4) Applications shall demonstrate that the shared
infrastructure project to be funded furthers the goals of
this act, as determined by the department.
Section 304. Process and application.
(a) Application process.--The department shall establish an
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application process for grants under this chapter no more than
90 days after the effective date of this act. The department
shall not begin accepting applications for at least 60 days from
the date the application forms are made publicly available.
(b) Review and determination.--In reviewing a grant
application and reaching a final determination, the department
shall consider all of the following:
(1) Whether the project proposed to be funded is
authorized under this chapter.
(2) The applicant's successful completion of the
application, including any additional material or information
requested by the department.
(3) The goals outlined in the application, including,
but not limited to, the purchase and installation of new
equipment and machinery or integrated systems, the upgrade of
existing machinery and equipment or the retrofitting of
existing facilities with new or high-demand technologies.
Section 305. Matching funds.
Applicants shall provide documentation of matching funds from
non-State sources in an amount equal to the grant amount being
requested under this chapter.
Section 306. Appropriation.
The General Assembly may appropriate money to the department
for the purposes specified under this chapter.
CHAPTER 4
ADVANCED MANUFACTURING VENTURE LOAN PROGRAM
Section 401. Authorization.
(a) Authority.--Notwithstanding any other law, the following
shall apply:
(1) An applicant may be a project applicant under the
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Financing Law and may apply to the authority for the funding
of purchasing of specialized equipment or integrated systems
for use by university and private entities, public-private
partnerships and contracting authorities conducting advanced
manufacturing, and purchasing, constructing, renovating or
rehabilitating facilities to be used in a shared
infrastructure project.
(2) The authority may issue bonds under the Financing
Law, consistent with this article, to finance a project to
fund, or reimburse an applicant for, purchasing of
specialized equipment or integrated systems for use by
university and private entities, public-private partnerships
and contracting authorities conducting advanced
manufacturing, and purchasing, constructing, renovating or
rehabilitating facilities to be used in a shared
infrastructure project.
(3) Participation of an industrial and commercial
development authority shall not be required to finance the
eligible project costs under this chapter.
(b) Debt or liability.--The following shall apply:
(1) Bonds issued under this chapter shall not be a debt
or liability of the Commonwealth and shall not create or
constitute any indebtedness, liability or obligation of the
Commonwealth.
(2) Bond obligations and bond administrative expenses
shall be payable solely from revenues or money pledged or
available for repayment as authorized under this chapter.
This paragraph shall include the proceeds of any issuance of
bonds.
(3) Each bond shall contain on its face a statement
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that:
(i) the authority is obligated to pay the principal
or interest on the bonds only from the revenues or money
pledged or available for repayment as authorized under
this chapter;
(ii) the Commonwealth is not obligated to pay the
principal or interest; and
(iii) the full faith and credit of the Commonwealth
is not pledged to the payment of the principal of or the
interest on the bonds.
Section 402. Criteria for bond issuance.
(a) Determination.--An applicant may apply to the authority
to issue bonds for the purchasing of specialized equipment or
integrated systems for use by university and private entities,
public-private partnerships and contracting authorities
conducting advanced manufacturing, and purchasing, constructing,
renovating or rehabilitating facilities to be used in a shared
infrastructure project.
(b) Terms.--The following shall apply:
(1) The applicant shall specify the following in its
application to the authority:
(i) the maximum principal amount of the bonds for
each separate bond issue; and
(ii) the maximum term of the bonds consistent with
applicable law.
(2) The term of the bonds issued under this chapter may
not exceed 10 years.
Section 403. Issuance of bonds and security.
(a) Issuance.--The authority shall consider issuance of
bonds upon application by an applicant. Bonds issued under this
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chapter shall be subject to the provisions of the Financing Law,
unless otherwise specified under this chapter.
(b) Service agreement authorized.--The authority and an
applicant may enter into an agreement or service agreement to
effectuate this chapter, including an agreement to secure bonds
issued for the purposes under section 401(a), pursuant to which
the applicant shall agree to pay the bond obligations and bond
administrative expenses to the authority in each fiscal year
that the bonds or refunding bonds are outstanding in amounts
sufficient to timely pay in full the debt service and any other
financing costs due on the bonds issued for the purposes under
section section 401(a). The service agreement may be amended or
supplemented by the authority and the applicant in connection
with the issuance of any series of bonds or refunding bonds
authorized under this section.
(c) Security.--Bond obligations and bond administrative
expenses are secured, for the benefit of the holders of the
bonds and the obligees under credit agreements or the agreements
under subsection (b), by pledge of a security interest in and
first lien on the following:
(1) Money deposited into the Advanced Manufacturing
Venture Loan Account, including investment income on money in
the account.
(2) Money relating to the bonds held on deposit in any
other fund or account under an instrument or agreement
pertaining to the bonds, including bond reserves and interest
income on the money.
(3) The security provided under this subsection shall
not apply to money in any fund relating to arbitrage rebate
obligations.
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Section 404. Sale of bonds.
The authority shall offer the bonds for sale by means of a
public, competitive sale or by means of a negotiated sale based
on the authority's determination of which method will produce
the most benefit to the Commonwealth.
Section 405. Deposit of bond proceeds.
The net proceeds of bonds, other than refunding bonds,
exclusive of costs of issuance, reserves and any other financing
charges, shall be transferred by the authority to the State
Treasurer for deposit into a restricted account established in
the State Treasury and held solely for the purposes under
section 401(a) to be known as the Advanced Manufacturing Venture
Loan Account.
Section 406. Payment of bond-related obligations.
For each fiscal year in which bond obligations and bond
administrative expenses will be due, the authority shall notify
the applicant of the amount of bond obligations and the
estimated amount of bond administrative expenses in sufficient
time, as determined by the authority, to permit the applicant to
pay bond obligations and bond administrative expenses that will
be due and payable in the following fiscal year.
Section 407. Commonwealth not to impair bond-related
obligations.
The Commonwealth pledges that it shall not do any of the
following:
(1) Limit or alter the rights and responsibilities of
the authority or the applicant under this article, including
the responsibility to:
(i) pay bond obligations and bond administrative
expenses; and
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(ii) comply with any other instrument or agreement
pertaining to bonds.
(2) Alter or limit the service agreement under section
403(b).
(3) Impair the rights and remedies of the holders of
bonds, until each bond issued at any time and the interest on
the bond are fully met and discharged.
Section 408. Personal liability.
The members, directors, officers and employees of the
applicant and the authority shall not be personally liable as a
result of good faith exercise of the rights and responsibilities
granted under this chapter.
CHAPTER 5
REPORTING REQUIREMENTS AND PUBLIC ACCESS
Section 501. Reporting requirements.
Grantees and applicants entering into a service agreement
under section 403(b) shall be required to provide annually a
detailed accounting of the use of money for projects under this
act to the department no later than January 30 of each year.
Section 502. Public access to records.
(a) General rule.--The following shall apply:
(1) Grantees, as State-related institutions, are subject
to reporting provisions of the act of February 14, 2008
(P.L.6, No.3), known as the Right-to-Know Law. State-related
institutions are otherwise exempted from the provisions and
requirements of the release of records.
(2) Nothing in this act shall supersede the exemption,
nor require a State-related university to provide additional
information related to this act beyond the scope of the
State-related university's current responsibilities under
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Chapter 15 of the Right-to-Know Law.
(3) Nothing in this act shall preclude the department
from releasing records deemed to be in the public interest.
(b) Public records.--Any other record identified as a public
record within the Right-to-Know Law, including contracts,
grants, awards and other public records, in possession or
constructive possession of the department or a Commonwealth
agency shall be considered a public record in accordance with
the Right-to-Know Law.
(c) Construction.--If the provisions of this act related to
public access conflict with a Federal or State law prohibiting
access to records, the provisions of this act shall not apply
with regard to access.
Section 503. Effective date.
This act shall take effect immediately.
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