SB 706 — 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 Endeavor Loan Fund; and imposing powers and duties on the Department of Community and Economic Development.

PRIOR PRINTER'S NO.

791 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1090 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

WARD, YUDICHAK, STEFANO AND YAW, REFERREDSENATOR TOYUDICHAK, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, MAYAS 21,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;

Max Manufacturing Venture ENDEAVOR Loans <-- Section 701.

Max Manufacturing Venture ENDEAVOR Loan Fund.

<-- Section 703.

Reporting requirements.requirements DUTIES.

<-- Section 902.

(i) Advance and promote the general welfare of the 20210SB0706PN079120210SB0706PN1090 - 2 - residents of this Commonwealth.

(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.

"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 20210SB0706PN079120210SB0706PN1090 - 3 - ways to manufacture existing products or the manufacture of new products emerging from new advanced technologies.

"Application." A document submitted to the Department of <-- Community and Economic Development DEPARTMENT or other agency <-- under this act to secure funding.

"Final"FACILITY." determination."A BUILDING, COLLECTION OF BUILDINGS, THE <-- SUBSECTIONS OF A finalBUILDING decisionAND issuedALL inASSOCIATED writingEQUIPMENT byIDENTIFIED theWITHIN DepartmentAN ofAPPLICATION CommunityFOR andFUNDING EconomicTO Development.ENGAGE IN OR FACILITATE ADVANCED MANUFACTURING.

"Fund.""Final Thedetermination." MaxA Manufacturingfinal Initiativedecision Fundissued established in thiswriting act.by the Department of Community and Economic Development DEPARTMENT.

"Matching<-- funds.""Fund." Cash,The in-kind contributions or other investments in a shared infrastructure project from funding sources other than the Max Manufacturing Initiative Fund andestablished thein 20210SB0706PN079120210SB0706PN1090 - 4 - Maxthis Manufacturingact. Venture Loan Fund.

"Nonprofit"Matching organization."funds." ACash, corporationin-kind contributions or other entity<-- basedinvestments in thisa Commonwealthshared thatinfrastructure isproject anfrom exemptfunding organizationsources asother definedthan underthe sectionMax 501(c)(3)Manufacturing ofInitiative theFund Internaland Revenuethe CodeMax ofManufacturing 1986Venture (PublicENDEAVOR LawLoan 99-514,Fund. 26 U.S.C.

<-- "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.

"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.

20210SB0706PN0791 - 5 - (1) Lincoln University.

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.

20210SB0706PN1090 - 6 - (b) Findings.--The General Assembly finds as follows:

20210SB0706PN0791 - 6 - (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.

20210SB0706PN1090 - 7 - (b) Grants.--Grants shall be subject to the following conditions:

20210SB0706PN0791 - 7 - (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.

(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.

(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.

20210SB0706PN1090 - 8 - (b) Review and determination.--In reviewing a grant application and reaching a final determination, the department shall consider all of the following:

(2) The applicant's successful completion of the application, including any additional material or information 20210SB0706PN0791 - 8 - requested by the department.

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.

CHAPTER 7 MAX MANUFACTURING VENTURE ENDEAVOR LOANS <-- Section 701.

(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 20210SB0706PN0791 - 9 - in the following amounts:

(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.

(1) A financial statement of the applicant and a 20210SB0706PN0791 - 10 - financial plan to show how the loan will be repaid.

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;