Regular Session 2021-2022 Senate Bill 0706 P.N. 1090

PRIOR PRINTER'S NO. 791

PRINTER'S NO. 1090

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

SENATOR YUDICHAK, COMMUNITY, ECONOMIC AND RECREATIONAL

DEVELOPMENT, AS AMENDED, SEPTEMBER 22, 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 ENDEAVOR 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.

<--<--

Section 505. Appropriation.

Chapter 7. Max Manufacturing Venture ENDEAVOR Loans

Section 701. Authorization.

Section 702. Max Manufacturing Venture ENDEAVOR Loan Fund.

Section 703. Powers and duties of department.

Section 704. Appropriation.

Chapter 9. Reporting Requirements and Public Access

Section 901. Reporting requirements DUTIES.

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

20210SB0706PN1090 - 2 -

<--

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) (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.

(vii) (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:

"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

20210SB0706PN1090 - 3 -

<--

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 DEPARTMENT 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.

"FACILITY." A BUILDING, COLLECTION OF BUILDINGS, THE

SUBSECTIONS OF A BUILDING AND ALL ASSOCIATED EQUIPMENT

IDENTIFIED WITHIN AN APPLICATION FOR FUNDING TO ENGAGE IN OR

FACILITATE ADVANCED MANUFACTURING.

"Final determination." A final decision issued in writing by

the Department of Community and Economic Development DEPARTMENT.

"Fund." The Max Manufacturing Initiative Fund established in

20210SB0706PN1090 - 4 -

<--

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

Max Manufacturing Venture ENDEAVOR 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

20210SB0706PN1090 - 5 -

<--

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 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 DEPARTMENT 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.

20210SB0706PN1090 - 6 -

<--

(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.

(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.

20210SB0706PN1090 - 7 -

(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, 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 ENDEAVOR 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 A COMPETITIVE 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.

20210SB0706PN1090 - 8 -

<--

(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 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 ENDEAVOR 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 ENDEAVOR 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

20210SB0706PN1090 - 9 -

<--

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

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

20210SB0706PN1090 - 10 -

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.

under this chapter shall be accompanied by:

(1) A financial statement of the applicant and a

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 ENDEAVOR Loan Fund.

(a) Establishment.--The Max Manufacturing Venture ENDEAVOR

Loan Fund is established in the State Treasury to which shall be

credited:

(1) appropriations made by the General Assembly, other

20210SB0706PN1090 - 11 -

<--

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

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.

20210SB0706PN1090 - 12 -

(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.

(6) (5) Require security for a loan, if determined to be

necessary.

(7) (6) 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) (7) 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,

20210SB0706PN1090 - 13 -

<--

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 INSTITUTION to provide additional information

related to this act beyond the scope of the State-related

university's INSTITUTION'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.

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.

20210SB0706PN1090 - 14 -

<--