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PRINTER'S NO. 791
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
706
Session of
2021
INTRODUCED BY ROBINSON, BARTOLOTTA, ARGALL, PITTMAN, REGAN,
MENSCH, J. WARD, GORDNER, K. WARD, YUDICHAK, STEFANO AND YAW,
MAY 21, 2021
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
MAY 21, 2021
AN ACT
Providing for advanced manufacturing facilities and
infrastructures through business partnerships with State-
related institutions; establishing the Max Manufacturing
Initiative Fund and Max Manufacturing Venture Loan Fund; and
imposing powers and duties on the Department of Community and
Economic Development.
TABLE OF CONTENTS
Chapter 1. Preliminary Provisions
Section 101. Short title.
Section 102. Findings and declarations.
Section 103. Definitions.
Chapter 3. Max Manufacturing Initiative Fund
Section 301. Establishment.
Chapter 5. Max Manufacturing Equipment and Integrated Systems
Grants
Section 501. Authorization.
Section 502. Eligibility.
Section 503. Process and application.
Section 504. Matching funds.
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Section 505. Appropriation.
Chapter 7. Max Manufacturing Venture Loans
Section 701. Authorization.
Section 702. Max Manufacturing Venture Loan Fund.
Section 703. Powers and duties of department.
Section 704. Appropriation.
Chapter 9. Reporting Requirements and Public Access
Section 901. Reporting requirements.
Section 902. Public access to records.
Chapter 11. Miscellaneous Provisions
Section 1101. 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 Max
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
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
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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.
(vi) 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.
(vii) 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:
"Advanced manufacturing." New manufacturing activities or
technologies that 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
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ways to manufacture existing products or the manufacture of new
products emerging from new advanced technologies.
"Applicant." A State-related institution, contracting
authority, a public-private partnership or partnership to which
a State-related institution is a party or a nonprofit
organization that is eligible to apply for and receive
redevelopment assistance capital grants or Commonwealth grants
under this act.
"Application." A document submitted to the Department of
Community and Economic Development or other agency under this
act to secure funding.
"Application process." The steps necessary to initiate
consideration for funding or designation under this act.
"Capital Facilities Debt Enabling Act." The act of February
9, 1999 (P.L.1, No.1), known as the Capital Facilities Debt
Enabling Act.
"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.
"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.
"Fund." The Max Manufacturing Initiative Fund established in
this act.
"Matching funds." Cash, in-kind contributions or other
investments in a shared infrastructure project from funding
sources other than the Max Manufacturing Initiative Fund and the
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Max Manufacturing Venture Loan Fund.
"Nonprofit organization." A corporation or other entity
based in this Commonwealth that is an exempt organization as
defined under section 501(c)(3) of the Internal Revenue Code of
1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)).
"Operating organization." An entity that contracts directly
with a 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.
"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 or
facilitating 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:
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(1) Lincoln University.
(2) Temple University.
(3) The Pennsylvania State University.
(4) The University of Pittsburgh.
CHAPTER 3
MAX MANUFACTURING INITIATIVE FUND
Section 301. Establishment
The Max Manufacturing Initiative Fund is established within
the State Treasury. The fund shall be used by the Department of
Community and Economic Development to issue grants to applicants
engaging in or facilitating advanced manufacturing, including
equipment, integrated systems and facilities acquisition,
renovation and retrofitting. The department shall be responsible
for oversight, management and operation of the fund.
CHAPTER 5
MAX MANUFACTURING EQUIPMENT AND
INTEGRATED SYSTEMS GRANTS
Section 501. Authorization.
(a) Establishment of account.--Within the fund is
established an account to be administered by the department for
the issuance of grants under this chapter for specialized
equipment, infrastructure and integrated systems for use by
university and private entities, public-private partnerships,
contracting authorities and nonprofit organizations conducting
or facilitating advanced manufacturing.
(b) Findings.--The General Assembly finds 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 residents of this Commonwealth.
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(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 in accordance with section 502 to lure,
maintain and keep a cutting-edge knowledge base.
Section 502. 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 or facilitating advanced
manufacturing, including, but not limited to, the following:
(1) Advancement in the fields of industrial processes,
mining, manufacturing, production agriculture, information
technology and biotechnology.
(2) Service as a medical facility or in other industrial
or technology sectors as defined by the department.
(3) 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.
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(2) Grants shall be designed to include the purchase and
installation of new equipment and machinery, the upgrade of
existing machinery and equipment, 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 shared
infrastructure project and documentation of matching funds
from sources other than the Max Manufacturing Initiative Fund
and the Max Manufacturing Venture Loan Fund 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 503. Process and application.
(a) Application process.--The department shall establish an
application process for grants under this chapter no more than
90 days after the effective date of this section. The department
may 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
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requested by the department.
(3) The goals outlined in the application, including 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 504. Matching funds.
Applicants shall provide documentation of matching funds
invested in the shared infrastructure project from sources other
than the Max Manufacturing Initiative Fund and the Max
Manufacturing Venture Loan Fund in an amount equal to the grant
amount being requested under this chapter.
Section 505. Appropriation.
The General Assembly may appropriate money to the department
for the purposes specified under this chapter.
CHAPTER 7
MAX MANUFACTURING VENTURE LOANS
Section 701. Authorization.
(a) Establishment of account.--
(1) There is established an account within the fund
which shall be administered by the department for the purpose
of issuing loans under this chapter, upon application of an
applicant for the the purposes of purchasing of specialized
equipment or integrated systems for use by university and
private entities, public-private partnerships and contracting
authorities conducting or facilitating advanced
manufacturing, and purchasing, constructing, renovating or
rehabilitating facilities to be used in a shared
infrastructure project.
(2) Loans are authorized for the following purposes and
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in the following amounts:
(i) Purchasing of specialized equipment or
integrated systems for use in advanced manufacturing. The
amount of a loan made for purchasing of specialized
equipment integrated systems shall not exceed $200,000
for any single piece of equipment or 75% of the total
cost of the piece of equipment, whichever is less.
(ii) Purchasing, constructing, renovating or
rehabilitating facilities to be used in a shared
infrastructure project. The amount of a loan made for
purchasing, constructing, renovating or rehabilitating
facilities shall not exceed $100,000 for a single
facility or 75% of the total cost for purchasing,
renovating or rehabilitating the facility, whichever is
less.
(b) Terms of loans.--
(1) Loans made by the department shall be for a period
of not more than 15 years.
(2) Loans shall be subject to the payment of interest at
2% per annum and shall be subject to such security as shall
be determined by the department.
(3) The total amount of the interest earned by the
investment or reinvestment of all or any part of the
principal of any loan shall be returned to the department,
shall be transferred to the fund and shall not be credited as
payment of principal or interest on the loan.
(4) The minimum amount of any loan shall be $1,000.
(c) Financial statement required.--An application for a loan
under this chapter shall be accompanied by:
(1) A financial statement of the applicant and a
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financial plan to show how the loan will be repaid.
(2) Evidence sufficient to show that all costs, except
the amount of the loan, will be met by assets or other
revenues, grants or loans from other sources or in-kind
contributions or services.
(d) Use of loans.--Loans under this chapter shall be used
for purchasing specialized equipment or integrated systems and
for purchasing, constructing, renovating or rehabilitating
facilities for the conduct of advanced manufacturing and may not
be used for operating expenses or for the refinancing or
reduction of any debt or obligation incurred prior to the
effective date of this section.
(e) Rules and regulations.--Loans made by the department
shall be paid from the fund to approved applicants in accordance
with rules and regulations promulgated by the department.
(f) Repayment of loans to be deposited in fund.--Payments of
principal and interest on the loans shall be deposited by the
department in the fund.
Section 702. Max Manufacturing Venture Loan Fund.
(a) Establishment.--The Max Manufacturing Venture Loan Fund
is established in the State Treasury to which shall be credited:
(1) appropriations made by the General Assembly, other
than appropriations for expenses of administering this
chapter;
(2) grants from other sources to the department; and
(3) repayment of principal and interest on loans made
under this chapter.
(b) Allocations for loans.--
(1) The department shall routinely requisition from the
fund established under this section such amounts as shall be
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allocated by the department for loans to applicants under
this chapter. When and as the amounts so allocated by the
department as loans to applicants are repaid to the
department under the terms of the agreements made and entered
into with the department, the department shall pay the
amounts into the fund established under this chapter.
(2) The fund established under this chapter shall
operate as a revolving fund from which all appropriations and
payments made to this fund may be applied and reapplied for
the purposes of this chapter.
Section 703. Powers and duties of department.
In addition to the powers and duties conferred upon the
department under other provisions of law, the department shall
have the power and duty to:
(1) Lend money for the purposes authorized by this
chapter over a term of years, but in no case in excess of 15
years.
(2) Accept grants from the Federal Government and any
person, agency or government for use in the fund established
in this chapter.
(3) Prescribe the form of the application for a loan
under this chapter.
(4) Advise an applicant regarding the financial ability
of the applicant to purchase specialized equipment or
integrated systems or to purchase, construct, renovate or
rehabilitate facilities for a shared infrastructure project.
(5) Assist an applicant in taking advantage of joint
purchasing arrangements and of opportunities to purchase
surplus equipment from the Commonwealth or any of its
political subdivisions.
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(6) Require security for a loan, if determined to be
necessary.
(7) Specify priority of liens against a facility or
equipment purchased by an applicant using money loaned under
this chapter, if determined to be necessary.
(8) Establish a schedule that provides at least an
annual opportunity for applicants to apply for and receive
loans.
Section 704. Appropriation.
The General Assembly may appropriate money to the fund
established under this chapter for the purposes specified under
this chapter.
CHAPTER 9
REPORTING REQUIREMENTS AND PUBLIC ACCESS
Section 901. Reporting duties.
Grantees and recipients of loans shall 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 902. Public access to records.
(a) Scope of access.--
(1) Grantees, as State-related institutions, are subject
only to the reporting provisions of the act of February 14,
2008 (P.L.6, No.3), known as the Right-to-Know Law.
(2) State-related institutions are otherwise exempted
from the provisions and requirements of the release of
records.
(b) Construction.--Nothing in this act shall be construed
to:
(1) Supersede the exemption nor require a State-related
university to provide additional information related to this
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act beyond the scope of the State-related university's
current responsibilities under Chapter 15 of the Right-to-
Know Law.
(2) Preclude the department from releasing records
deemed to be in the public interest.
(c) Public records.--Any other record identified as a public
record within the Right-to-Know Law in possession or
constructive possession of the department or a Commonwealth
agency, including contracts, grants, awards and other public
records, shall be considered public records in accordance with
the Right-to-Know Law.
(d) Federal law supersedeas.--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.
CHAPTER 11
MISCELLANEOUS PROVISIONS
Section 1101. Effective date.
This act shall take effect immediately.
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