Pennsylvania Act 2024-24 — MAX MANUFACTURING INITIATIVE ACT - ENACTMENT

Act text

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; providing for prevailing wage; 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 Endeavor Loans

Section 701. Authorization.

Section 702. Max Manufacturing Endeavor Loan Fund.

Section 703. Powers and duties of department.

Section 704. Appropriation.

Chapter 9. Reporting Requirements and Public Access

Section 901. Reporting duties.

Section 902. Public access to records.

Chapter 11. Prevailing Wage

Section 1101. Requirements.

Chapter 13. Miscellaneous Provisions

Section 1301. Administrative costs.

Section 1302. 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 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:

"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 ways to manufacture existing products or the manufacture of new products emerging from new advanced technologies.

"Applicant." A State-related institution, contracting authority, 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 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.

"Fund." The Max Manufacturing Initiative Fund established in this act.

"Matching funds." Cash or other investments in a shared infrastructure project from funding sources other than the fund and the Max Manufacturing Endeavor Loan Fund.

"Nonprofit organization." A corporation or other entity based in this Commonwealth that is an exempt organization as defined under 26 U.S.C. § 501(c)(3) (relating to exemption from tax on corporations, certain trusts, etc.).

"Prevailing Wage Act." The act of August 15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing Wage Act.

"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, 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 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 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.

(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.

(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, but is not limited to, land acquisition, the acquisition or construction of buildings, equipment, site preparation, road and highway improvements, water and sewer infrastructure and the 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 fund and the Max Manufacturing 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.

(5) Applicants shall make a good faith effort to recruit and employ, or to encourage any construction contractors or subcontractors to recruit and employ, workers from the local labor market for employment for all construction, reconstruction, demolition, alteration and repair work, other than maintenance work.

Section 503. Process and application.

(a) Application process.--The department shall establish guidelines for 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.

(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.

(c) Limitations.--Grants awarded under this subsection shall not exceed $2,000,000.

Section 504. Matching funds.

Applicants shall provide documentation of matching funds invested in the shared infrastructure project from sources other than the fund and the Max Manufacturing 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 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 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 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 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) 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.

(f) Local hire.--A recipient shall make a good faith effort to recruit and employ, or to encourage any construction contractors or subcontractors to recruit and employ, workers from the local labor market for employment for all construction, reconstruction, demolition, alteration and repair work, other than maintenance work.

Section 702. Max Manufacturing Endeavor Loan Fund.

(a) Establishment.--The Max Manufacturing Endeavor Loan Fund is established within 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 Max Manufacturing Endeavor Loan Fund such amounts as shall be allocated by the department for loans to applicants under this chapter. When and as the amounts 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 Max Manufacturing Endeavor Loan Fund.

(2) The Max Manufacturing Endeavor Loan Fund 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 Max Manufacturing Endeavor Loan Fund.

(3) Prescribe the form of the application for a loan under this chapter in accordance with the published guidelines.

(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) Require security for a loan, if determined to be necessary.

(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.

(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 Max Manufacturing Endeavor Loan Fund 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 institution to provide additional information related to this act beyond the scope of the State-related 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.

(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

PREVAILING WAGE

Section 1101. Requirements.

(a) Rates.--If a grant or loan is sought and awarded under this act, all contractors and subcontractors engaged to perform construction, reconstruction, demolition, alteration and repair work, other than maintenance work, on any segment of work on the site of the facility or on a shared infrastructure project, shall pay to the contractors' and subcontractors' workers not less than the prevailing minimum wage and benefit rates for all crafts or classifications, as determined by the Department of Labor and Industry under the Prevailing Wage Act.

(b) Condition.--As a condition of receiving and maintaining grants or loans under this act, the recipients shall ensure that all contractors and subcontractors engaged to perform construction, reconstruction, demolition, alteration and repair work, other than maintenance work, on any segment of work on the site of the facility or on a shared infrastructure project, pay not less than the prevailing minimum wage and benefit rates for all crafts and classifications, as determined by the Department of Labor and Industry under the Prevailing Wage Act.

CHAPTER 13

MISCELLANEOUS PROVISIONS

Section 1301. Administrative costs.

The department may use up to 3% annually under sections 505 and 704 for administrative costs relating to the administration of this act.

Section 1302. Effective date.

This act shall take effect immediately.