PRIOR PRINTER'S NOS. 465, 691, 932,
979, 1270 PRINTER'S NO. 1517
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 497
Session of
2023
INTRODUCED BY ROBINSON, BARTOLOTTA, MARTIN, STEFANO, DUSH,
J. WARD, YAW, AUMENT, ARGALL AND REGAN, MARCH 14, 2023
AMENDMENTS TO HOUSE AMENDMENTS, IN SENATE, APRIL 9, 2024
AN ACT
1 Providing for advanced manufacturing facilities and
2 infrastructures through business partnerships with State-
3 related institutions; establishing the Max Manufacturing
4 Initiative Fund and Max Manufacturing Endeavor Loan Fund;
5 PROVIDING FOR PREVAILING WAGE; and imposing powers and duties <--
6 on the Department of Community and Economic Development.
7 TABLE OF CONTENTS
8 Chapter 1. Preliminary Provisions
9 Section 101. Short title.
10 Section 102. Findings and declarations.
11 Section 103. Definitions.
12 Chapter 3. Max Manufacturing Initiative Fund
13 Section 301. Establishment.
14 Chapter 5. Max Manufacturing Equipment and Integrated Systems
15 Grants
16 Section 501. Authorization.
17 Section 502. Eligibility.
18 Section 503. Process and application.
19 Section 504. Matching funds.
 1 Section 505. Appropriation.
2 Chapter 7. Max Manufacturing Endeavor Loans
3 Section 701. Authorization.
4 Section 702. Max Manufacturing Endeavor Loan Fund.
5 Section 703. Powers and duties of department.
6 Section 704. Appropriation.
7 Chapter 9. Reporting Requirements and Public Access
8 Section 901. Reporting duties.
9 Section 902. Public access to records.
10 CHAPTER 11. PREVAILING WAGE <--
11 SECTION 1101. REQUIREMENTS.
12 Chapter 11 13. Miscellaneous Provisions <--
13 Section 1101 1301. Administrative costs. <--
14 Section 1102 1302. Effective date. <--
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 CHAPTER 1
18 PRELIMINARY PROVISIONS
19 Section 101. Short title.
20 This act shall be known and may be cited as the Max
21 Manufacturing Initiative Act.
22 Section 102. Findings and declarations.
23 The General Assembly finds and declares as follows:
24 (1) The intent of this act is to leverage the proximity
25 of university and private engineering expertise to establish
26 public-private partnerships and State-related institution
27 partnerships within this Commonwealth.
28 (2) This collaboration is designed to align with the
29 Commonwealth's stated economic development goals through the
30 funding of grants, incentivized private investments and
20230SB0497PN1517 - 2 -
 1 business incentives to attract high-technology industries for
2 advanced manufacturing in this Commonwealth to:
3 (i) Advance and promote the general welfare of the
4 residents of this Commonwealth.
5 (ii) Foster stronger business alliances, which will
6 increase employment opportunities for Pennsylvanians.
7 (iii) Establish this Commonwealth and its university
8 and business partnerships as international leaders in
9 idea generation and the implementation of cutting-edge
10 advances in science and technology.
11 (iv) Create shared infrastructures within this
12 Commonwealth to leverage and maximize advanced
13 manufacturing techniques for producing high-value
14 products.
15 (v) Pool investments as necessary to create and
16 design academic and work programming that includes
17 academic restructuring and attracting new industry-driven
18 workforce and job training centers to convert and sustain
19 existing regional workforces to next-generation
20 manufacturing models and goals.
21 (vi) Expand and incentivize an industry-led business
22 environment in alignment with the Commonwealth's economic
23 development goals, including financial incentives for
24 infrastructure support.
25 Section 103. Definitions.
26 The following words and phrases when used in this act shall
27 have the meanings given to them in this section unless the
28 context clearly indicates otherwise:
29 "Advanced manufacturing." New manufacturing activities or
30 technologies that depend on the use and coordination of
20230SB0497PN1517 - 3 -
 1 information, automation, computation, software, sensing and
2 networking or make use of materials and capabilities enabled by
3 the physical and biological sciences and which may involve new
4 ways to manufacture existing products or the manufacture of new
5 products emerging from new advanced technologies.
6 "Applicant." A State-related institution, contracting
7 authority, public-private partnership or partnership to which a
8 State-related institution is a party or a nonprofit organization
9 that is eligible to apply for and receive redevelopment
10 assistance capital grants or Commonwealth grants under this act.
11 "Application." A document submitted to the department or
12 other agency under this act to secure funding.
13 "Application process." The steps necessary to initiate
14 consideration for funding or designation under this act.
15 "Capital Facilities Debt Enabling Act." The act of February
16 9, 1999 (P.L.1, No.1), known as the Capital Facilities Debt
17 Enabling Act.
18 "Contracting authority." An authority created under 53
19 Pa.C.S. Ch. 56 (relating to municipal authorities) or other
20 authority created under the laws of this Commonwealth that is
21 eligible to apply for and receive redevelopment assistance
22 capital grants under the Capital Facilities Debt Enabling Act.
23 "Department." The Department of Community and Economic
24 Development of the Commonwealth.
25 "Facility." A building, collection of buildings, the
26 subsections of a building and all associated equipment
27 identified within an application for funding to engage in or
28 facilitate advanced manufacturing.
29 "Final determination." A final decision issued in writing by
30 the department.
20230SB0497PN1517 - 4 -
 1 "Fund." The Max Manufacturing Initiative Fund established in
2 this act.
3 "Matching funds." Cash or other investments in a shared
4 infrastructure project from funding sources other than the fund
5 and the Max Manufacturing Endeavor Loan Fund.
6 "Nonprofit organization." A corporation or other entity
7 based in this Commonwealth that is an exempt organization as
8 defined under 26 U.S.C. § 501(c)(3) (relating to exemption from
9 tax on corporations, certain trusts, etc.).
10 "PREVAILING WAGE ACT." THE ACT OF AUGUST 15, 1961 (P.L.987, <--
11 NO.442), KNOWN AS THE PENNSYLVANIA PREVAILING WAGE ACT.
12 "Private entity." A person, entity, group or organization
13 that is not the Federal Government, the Commonwealth or a
14 municipal authority.
15 "Project labor agreement." A prehire collective bargaining <--
16 agreement with one or more labor organizations that establishes
17 the terms and conditions of employment for a construction,
18 renovation or rehabilitation project.
19 "Public entity." A Commonwealth agency as defined in 62
20 Pa.C.S. § 103 (relating to definitions) or a municipal
21 authority. The term does not include the General Assembly and
22 its members, officers or agencies or a court or other office or
23 agency of the Pennsylvania judicial system.
24 "Public-private partnership." An agreement between a public
25 entity and at least one private entity for the construction,
26 acquisition, management or operation of a facility created under
27 a shared infrastructure project.
28 "Shared infrastructure project." A project to create
29 collaborative production and manufacturing facilities for State-
30 related institutions and industry partnerships conducting or
20230SB0497PN1517 - 5 -
 1 facilitating activities relating to advanced manufacturing,
2 including, but not limited to, land acquisition, acquisition or
3 construction of buildings, equipment, site preparation, road and
4 highway improvements, water and sewer infrastructure or other
5 infrastructure development.
6 "State-related institution." Any of the following
7 institutions of higher education:
8 (1) Lincoln University.
9 (2) Temple University.
10 (3) The Pennsylvania State University.
11 (4) The University of Pittsburgh.
12 CHAPTER 3
13 MAX MANUFACTURING INITIATIVE FUND
14 Section 301. Establishment.
15 The Max Manufacturing Initiative Fund is established within
16 the State Treasury. The fund shall be used by the department to
17 issue grants to applicants engaging in or facilitating advanced
18 manufacturing, including equipment, integrated systems and
19 facilities acquisition, renovation and retrofitting. The
20 department shall be responsible for oversight, management and
21 operation of the fund.
22 CHAPTER 5
23 MAX MANUFACTURING EQUIPMENT AND
24 INTEGRATED SYSTEMS GRANTS
25 Section 501. Authorization.
26 (a) Establishment of account.--Within the fund is
27 established an account to be administered by the department for
28 the issuance of grants under this chapter for specialized
29 equipment, infrastructure and integrated systems for use by
30 university and private entities, public-private partnerships,
20230SB0497PN1517 - 6 -
 1 contracting authorities and nonprofit organizations conducting
2 or facilitating advanced manufacturing.
3 (b) Findings.--The General Assembly finds as follows:
4 (1) It is in the public interest to create incentives to
5 support growth in advanced manufacturing capabilities to
6 create well-paying jobs and enhanced economic opportunities
7 for the residents of this Commonwealth.
8 (2) Incentives should include recruitment and
9 maintenance of leading scientists and engineers at State-
10 related research universities for the purposes of developing
11 and leveraging the research capabilities of the universities
12 for the creation of well-paying jobs and enhanced economic
13 opportunities in accordance with this act.
14 (3) The use of money under this chapter may include
15 creating incentives in accordance with section 502 to lure,
16 maintain and keep a cutting-edge knowledge base.
17 Section 502. Eligibility.
18 (a) Distribution.--The department may make distributions
19 from the fund, subject to the terms, conditions and restrictions
20 provided under this chapter, for the purpose of making grants to
21 public-private partnerships, contracting authorities and State-
22 related institutions conducting or facilitating advanced
23 manufacturing, including, but not limited to, the following:
24 (1) Advancement in the fields of industrial processes,
25 mining, manufacturing, production agriculture, information
26 technology and biotechnology.
27 (2) Service as a medical facility or in other industrial
28 or technology sectors as defined by the department.
29 (3) The acquisition and installation of new machinery
30 and equipment, upgrading existing machinery and equipment or
20230SB0497PN1517 - 7 -
 1 retrofitting existing facilities with new or high-demand
2 technologies as defined by the department.
3 (b) Grants.--Grants shall be subject to the following
4 conditions:
5 (1) Grants shall be made to eligible public-private
6 partnerships, contracting authorities and State-related
7 institutions under this chapter.
8 (2) Grants shall be designed to include the purchase and
9 installation of new equipment and machinery, the upgrade of
10 existing machinery and equipment, integrated systems or the
11 retrofitting of existing facilities with new or high-demand
12 technologies. This paragraph includes, but is not limited to,
13 land acquisition, the acquisition or construction of
14 buildings, equipment, site preparation, road and highway
15 improvements, water and sewer infrastructure and the
16 application and utilization of computer hardware and
17 software.
18 (3) Applicants shall provide a financial plan for all
19 funding related to the project, including details regarding
20 the financial commitment of the parties to the shared
21 infrastructure project and documentation of matching funds
22 from sources other than the fund and the Max Manufacturing
23 Endeavor Loan Fund in an amount equal to the amount being
24 requested in the application.
25 (4) Applications shall demonstrate that the shared
26 infrastructure project to be funded furthers the goals of
27 this act, as determined by the department.
28 (5) APPLICANTS SHALL MAKE A GOOD FAITH EFFORT TO RECRUIT <--
29 AND EMPLOY, OR TO ENCOURAGE ANY CONSTRUCTION CONTRACTORS OR
30 SUBCONTRACTORS TO RECRUIT AND EMPLOY, WORKERS FROM THE LOCAL
20230SB0497PN1517 - 8 -
 1 LABOR MARKET FOR EMPLOYMENT FOR ALL CONSTRUCTION,
2 RECONSTRUCTION, DEMOLITION, ALTERATION AND REPAIR WORK, OTHER
3 THAN MAINTENANCE WORK.
4 Section 503. Process and application.
5 (a) Application process.--The department shall establish
6 guidelines for a competitive process for grants under this
7 chapter no more than 90 days after the effective date of this
8 section. The department may not begin accepting applications for
9 at least 60 days from the date the application forms are made
10 publicly available.
11 (b) Review and determination.--In reviewing a grant
12 application and reaching a final determination, the department
13 shall consider all of the following:
14 (1) Whether the project proposed to be funded is
15 authorized under this chapter.
16 (2) The applicant's successful completion of the
17 application, including any additional material or information
18 requested by the department.
19 (3) The goals outlined in the application, including the
20 purchase and installation of new equipment and machinery or
21 integrated systems, the upgrade of existing machinery and
22 equipment or the retrofitting of existing facilities with new
23 or high-demand technologies.
24 (c) Limitations.--Grants awarded under this subsection shall
25 not exceed $2,000,000.
26 Section 504. Matching funds.
27 Applicants shall provide documentation of matching funds
28 invested in the shared infrastructure project from sources other
29 than the fund and the Max Manufacturing Endeavor Loan Fund in an
30 amount equal to the grant amount being requested under this
20230SB0497PN1517 - 9 -
 1 chapter.
2 Section 505. Appropriation.
3 The General Assembly may appropriate money to the department
4 for the purposes specified under this chapter.
5 CHAPTER 7
6 MAX MANUFACTURING ENDEAVOR LOANS
7 Section 701. Authorization.
8 (a) Establishment of account.--
9 (1) There is established an account within the fund
10 which shall be administered by the department for the purpose
11 of issuing loans under this chapter, upon application of an
12 applicant for the the purposes of purchasing of specialized
13 equipment or integrated systems for use by university and
14 private entities, public-private partnerships and contracting
15 authorities conducting or facilitating advanced
16 manufacturing, and purchasing, constructing, renovating or
17 rehabilitating facilities to be used in a shared
18 infrastructure project.
19 (2) Loans are authorized for the following purposes and
20 in the following amounts:
21 (i) Purchasing of specialized equipment or
22 integrated systems for use in advanced manufacturing. The
23 amount of a loan made for purchasing of specialized
24 equipment integrated systems shall not exceed $200,000
25 for any single piece of equipment or 75% of the total
26 cost of the piece of equipment, whichever is less.
27 (ii) Purchasing, constructing, renovating or
28 rehabilitating facilities to be used in a shared
29 infrastructure project. The amount of a loan made for
30 purchasing, constructing, renovating or rehabilitating
20230SB0497PN1517 - 10 -
 1 facilities shall not exceed $100,000 for a single
2 facility or 75% of the total cost for purchasing,
3 renovating or rehabilitating the facility, whichever is