SB 674 — 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.

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
 1   Establishing the Rural Coworking and Innovation Center Grant
 2      Program; and providing for requirements and imposing duties
 3      on the Department of Community and Economic Development.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6   Section 1.   Short title.
 7      This act shall be known and may be cited as the Rural
 8   Coworking and Innovation Center Grant Program Act.
 9   Section 2.   Definitions.
10      The following words and phrases when used in this act shall
11   have the meanings given to them in this section unless the
12   context clearly indicates otherwise:
13      "Coworking and innovation center."   A facility designed to
14   provide individuals with the infrastructure and equipment to
15   participate in an online workforce.
16      "Department."   The Department of Community and Economic
17   Development of the Commonwealth.
18      "Entity."   A municipality, institution of higher education,
 1   private business, a nonprofit corporation organized for
 2   community development purposes under 26 U.S.C. § 501 (relating
 3   to exemption from tax or corporations, certain trusts, etc.) or
 4   a redevelopment authority created and organized under the act of
 5   May 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment
 6   Law.
 7      "Grant."    A grant awarded as part of the Rural Coworking and
 8   Innovation Center Grant Program.
 9      "Grant program."       The Rural Coworking and Innovation Center
10   Grant Program.
11      "Institution of higher education."       An independent
12   institution of higher education, a community college, a State-
13   related institution or a member institution of the State System
14   of Higher Education.
15      "Municipality."       A county, city, borough, incorporated town,
16   township or home rule, optional plan or optional charter
17   municipality, municipal authority in this Commonwealth and an
18   entity formed under 53 Pa.C.S. Ch. 23 Subch. A (relating to
19   intergovernmental cooperation).
20      "Rural county."       A county that is defined as rural by the
21   Center for Rural Pennsylvania according to the most recent
22   census.
23      "Rural municipality."       A municipality, located within a
24   nonrural county, that is defined as rural by the Center for
25   Rural Pennsylvania, according to the most recent census.
26   Section 3.    The Rural Coworking and Innovation Center Grant
27                 Program.
28      (a)    Establishment.--The Rural Coworking and Innovation
29   Center Grant Program is established and shall be administered by
30   the department.

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 1      (b)   Objectives.--The department may accomplish the following
 2   objectives when administering the grant program:
 3            (1)   Construct or renovate a facility in one or more
 4      rural counties or a rural municipality to create one or more
 5      coworking and innovation centers.
 6            (2)   Extend and improve utilities and broadband service
 7      connections to a coworking and innovation center in a rural
 8      county or a rural municipality.
 9            (3)   Purchase equipment, furniture and security systems
10      as part of a coworking and innovation center in a rural
11      county or a rural municipality.
12   Section 4.     Requirements.
13      (a)   Guidelines.--The department may issue guidelines
14   establishing criteria for an entity to receive a competitive
15   grant under this act. The guidelines shall include:
16            (1)   The application form for submission to the
17      department, which shall include a description of other
18      funding sources and any additional information required by
19      the department.
20            (2)   Entities that are eligible to apply for a grant.
21            (3)   The method and formula for determining a grant award
22      amount.
23            (4)   The reporting requirements of grant recipients.
24            (5)   Additional information required by the department.
25      (b)   Operation.--
26            (1)   The department shall establish operational
27      guidelines for the effective use of coworking and innovation
28      centers assisted under this act.
29            (2)   The entity shall be responsible for the ongoing
30      operation and maintenance of the coworking and innovation

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 1      center.
 2      (c)   Prioritization.--In determining the amount of a grant
 3   award, the department may prioritize projects:
 4            (1)   That demonstrate comprehensive planning by an
 5      applicant that has limited access to financial resources,
 6      including financial resources from Federal, county or local
 7      government.
 8            (2)   That maximize economic development opportunities in
 9      collaboration with the economic development needs or plans of
10      an educational institution, county or municipality.
11      (d)   Limitations.--A grant award may not be more than
12   $500,000 and may only be awarded:
13            (1)   If the grant program recipient agrees to provide a
14      combination of funds, land, buildings or in-kind work in an
15      amount equal to at least 100% of the grant award.
16            (2)   For a grant awarded for construction or renovation
17      of a coworking and innovation center, if the center will be
18      open and offered for an individual's use for seven or more
19      years in the rural county or rural municipality where the
20      center is located.
21            (3)   For a grant awarded for extending or improving
22      utilities or broadband service connections to a coworking and
23      innovation center or for purchasing equipment, furniture or
24      security systems for a coworking and innovation center, if
25      the center will be open and offered for an individual's use
26      for five or more years in the rural county or rural
27      municipality where the center is located.
28      (e)   Ongoing operation.--Grant money may not be awarded for
29   the ongoing operation or maintenance of a coworking and
30   innovation center.

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1      (f)   Audit.--Grant money awarded under this act shall be
2   subject to audit by the department.
3      (g)   Failure to remain open.--If a coworking and innovation
4   center fails to remain open for the required time outlined in
5   subsection (d)(2) and (3), the entity shall return the funds
6   received to the department in a timely manner.
7   Section 5.   Effective date.
8      This act shall take effect in 90 days.




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