PRINTER'S NO. 682 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL No.674 Session of 2025 INTRODUCED BY LANGERHOLC, PENNYCUICK, VOGEL, SCHWANK, BARTOLOTTA, STEFANO AND KEARNEY, APRIL 28, 2025 REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, APRIL 28, 2025 AN ACT Establishing the Rural Coworking and Innovation Center Grant Program; and providing for requirements and imposing duties on the Department of Community and Economic Development. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Short title. This act shall be known and may be cited as the Rural Coworking and Innovation Center Grant Program Act. Section 2. 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: "Coworking and innovation center." A facility designed to provide individuals with the infrastructure and equipment to participate in an online workforce. "Department." The Department of Community and Economic Development of the Commonwealth. "Entity." A municipality, institution of higher education, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 private business, a nonprofit corporation organized for community development purposes under 26 U.S.C. ยง 501 (relating to exemption from tax or corporations, certain trusts, etc.) or a redevelopment authority created and organized under the act of May 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment Law. "Grant." A grant awarded as part of the Rural Coworking and Innovation Center Grant Program. "Grant program." The Rural Coworking and Innovation Center Grant Program. "Institution of higher education." An independent institution of higher education, a community college, a State- related institution or a member institution of the State System of Higher Education. "Municipality." A county, city, borough, incorporated town, township or home rule, optional plan or optional charter municipality, municipal authority in this Commonwealth and an entity formed under 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation). "Rural county." A county that is defined as rural by the Center for Rural Pennsylvania according to the most recent census. "Rural municipality." A municipality, located within a nonrural county, that is defined as rural by the Center for Rural Pennsylvania, according to the most recent census. Section 3. The Rural Coworking and Innovation Center Grant Program. (a) Establishment.--The Rural Coworking and Innovation Center Grant Program is established and shall be administered by the department. 20250SB0674PN0682 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (b) Objectives.--The department may accomplish the following objectives when administering the grant program: (1) Construct or renovate a facility in one or more rural counties or a rural municipality to create one or more coworking and innovation centers. (2) Extend and improve utilities and broadband service connections to a coworking and innovation center in a rural county or a rural municipality . (3) Purchase equipment, furniture and security systems as part of a coworking and innovation center in a rural county or a rural municipality . Section 4. Requirements. (a) Guidelines.--The department may issue guidelines establishing criteria for an entity to receive a competitive grant under this act. The guidelines shall include: (1) The application form for submission to the department, which shall include a description of other funding sources and any additional information required by the department. (2) Entities that are eligible to apply for a grant. (3) The method and formula for determining a grant award amount. (4) The reporting requirements of grant recipients. (5) Additional information required by the department. (b) Operation.-- (1) The department shall establish operational guidelines for the effective use of coworking and innovation centers assisted under this act. (2) The entity shall be responsible for the ongoing operation and maintenance of the coworking and innovation 20250SB0674PN0682 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 center. (c) Prioritization.--In determining the amount of a grant award, the department may prioritize projects: (1) That demonstrate comprehensive planning by an applicant that has limited access to financial resources, including financial resources from Federal, county or local government. (2) That maximize economic development opportunities in collaboration with the economic development needs or plans of an educational institution, county or municipality. (d) Limitations.--A grant award may not be more than $500,000 and may only be awarded: (1) If the grant program recipient agrees to provide a combination of funds, land, buildings or in-kind work in an amount equal to at least 100% of the grant award. (2) For a grant awarded for construction or renovation of a coworking and innovation center, if the center will be open and offered for an individual's use for seven or more years in the rural county or rural municipality where the center is located. (3) For a grant awarded for extending or improving utilities or broadband service connections to a coworking and innovation center or for purchasing equipment, furniture or security systems for a coworking and innovation center, if the center will be open and offered for an individual's use for five or more years in the rural county or rural municipality where the center is located. (e) Ongoing operation.--Grant money may not be awarded for the ongoing operation or maintenance of a coworking and innovation center. 20250SB0674PN0682 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (f) Audit.--Grant money awarded under this act shall be subject to audit by the department. (g) Failure to remain open.--If a coworking and innovation center fails to remain open for the required time outlined in subsection (d)(2) and (3), the entity shall return the funds received to the department in a timely manner. Section 5. Effective date. This act shall take effect in 90 days. 20250SB0674PN0682 - 5 - 1 2 3 4 5 6 7 8