SENATE AMENDED
PRIOR PRINTER'S NOS. 615, 1817, 1921 PRINTER'S NO. 2870
No. 521 Session of 2003
INTRODUCED BY FEESE, ALLEN, BALDWIN, BARRAR, BASTIAN, BROWNE,
BUNT, CAPPELLI, CAWLEY, CIVERA, CLYMER, COLEMAN, COSTA,
CRAHALLA, CREIGHTON, CRUZ, DAILEY, DALLY, FICHTER, GEIST,
GEORGE, GILLESPIE, GOODMAN, GORDNER, GRUCELA, GRUITZA, HANNA,
HARHAI, HARPER, HARRIS, HERMAN, HERSHEY, JAMES, LaGROTTA,
LAUGHLIN, LEDERER, LEH, MAJOR, MARKOSEK, MARSICO, McNAUGHTON,
R. MILLER, O'NEILL, PHILLIPS, PISTELLA, RAYMOND, READSHAW,
REICHLEY, RUBLEY, SAINATO, SATHER, SAYLOR, STAIRS,
R. STEVENSON, T. STEVENSON, STURLA, SURRA, E. Z. TAYLOR,
TRAVAGLIO, TRUE, TURZAI, WANSACZ, WATSON, WEBER, WILT,
YOUNGBLOOD, YUDICHAK, YEWCIC, THOMAS, GERGELY, HENNESSEY,
HARHART, FRANKEL, S. MILLER, HORSEY, J. TAYLOR AND BELFANTI,
FEBRUARY 26, 2003
SENATOR EARLL, FINANCE, IN SENATE, AS AMENDED, OCTOBER 27, 2003
AN ACT
1 Amending the act of October 6, 1998 (P.L.705, No.92), entitled, <--
2 as amended, "An act providing for the creation of keystone
3 opportunity zones and keystone opportunity expansion zones to
4 foster economic opportunities in this Commonwealth, to
5 facilitate economic development, stimulate industrial,
6 commercial and residential improvements and prevent physical
7 and infrastructure deterioration of geographic areas within
8 this Commonwealth; authorizing expenditures; providing tax
9 exemptions, tax deductions, tax abatements and tax credits;
10 creating additional obligations of the Commonwealth and local
11 governmental units; and prescribing powers and duties of
12 certain State and local departments, agencies and officials,"
13 further providing for definitions, for keystone opportunity
14 improvement zones, for decertification and for expiration of
15 act.
16 AMENDING TITLE 12 (COMMERCE AND TRADE) OF THE PENNSYLVANIA <--
17 CONSOLIDATED STATUTES, CODIFYING PORTIONS OF THE KEYSTONE
18 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT;
19 FURTHER PROVIDING FOR KEYSTONE OPPORTUNITY EXPANSION SUBZONES
20 AND FOR KEYSTONE OPPORTUNITY IMPROVEMENT ZONES; PROVIDING FOR
21 KEYSTONE INNOVATION ZONES; AND MAKING REPEALS.
22 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. The definition of "subzone" in section 103 of the <--
3 act of October 6, 1998 (P.L.705, No.92), known as the Keystone
4 Opportunity Zone and Keystone Opportunity Expansion Zone Act,
5 amended December 20, 2000 (P.L.841, No.119), is amended and the
6 section is amended by adding a definition to read:
7 Section 103. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 * * *
12 "Contiguous acres." Land that shares a common boundary or
13 borders directly across the same street, road, waterway or legal
14 right-of-way. The term shall not include separate tracts of land
15 linked only by a street, road, waterway, rail line or other
16 legal right-of-way.
17 * * *
18 "Subzone." A clearly defined geographic area containing a
19 minimum of 20 contiguous acres or a minimum of ten contiguous
20 acres in a rural area. In meeting the minimum acreage
21 requirements for a subzone, publicly owned land that is not
22 available for development, including, but not limited to, parks,
23 schools, streets and public buildings, shall not be included.
24 * * *
25 Section 2. Sections 301.2, 309 and 1309 of the act, amended
26 or added December 9, 2002 (P.L.1727, No.217), are amended to
27 read:
28 Section 301.2. Keystone opportunity improvement zones.
29 (a) Establishment.--There is established within the
30 department a program for keystone opportunity improvement zones.
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1 A keystone opportunity improvement zone shall be comprised of
2 improvement subzones consisting of deteriorated property
3 designated by the Governor.
4 (b) Proposal.--By January 1, [2003] 2006 and notwithstanding
5 any designation under sections 301 and 301.1, the Governor may,
6 by executive order, designate deteriorated property in this
7 Commonwealth as a proposed improvement subzone. The executive
8 order shall specify the period of time, not to exceed 15 years,
9 for which the tax exemptions, deductions, abatements or credits
10 provided by this act may be granted. The department shall
11 immediately notify political subdivisions located within the
12 area designated.
13 (c) Application.--By [June 1, 2003] October 1, 2006, a
14 political subdivision may apply to the department for approval
15 of the designation of the deteriorated property as an
16 improvement subzone for the period designated under subsection
17 (b). The application must be on a form provided by the
18 department and must include a copy of an ordinance, resolution
19 or other required action from the governing body of the
20 political subdivision exempting or providing the deductions,
21 abatement or credits required by Chapter 7 to qualified persons
22 and qualified businesses within the proposed improvement
23 subzone. Except as provided in section [309] 1309, all
24 appropriate ordinances and resolutions must be effective for the
25 period specified in the executive order, and must be binding and
26 nonrevocable on the political subdivision.
27 (d) Designation.--If all political subdivisions within a
28 proposed improvement subzone submit timely completed
29 applications, the department shall approve the applications and
30 designate the property as an improvement subzone. If a proposed
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1 improvement subzone is an existing subzone or an existing
2 expansion subzone, failure of a political subdivision to submit
3 the application as required by this section shall not terminate
4 the existing designation as either a subzone or an expansion
5 subzone. Qualified persons and qualified businesses within the
6 improvement subzone shall be entitled to the State exemptions,
7 deductions, abatements or credits set forth in this act and the
8 local tax exemptions, deductions, abatements or credits set
9 forth in this act, for the period for which the improvement
10 subzone has been designated.
11 Section 309. Decertification.
12 (a) Application.--One or more political subdivisions, or a
13 designee of one or more political subdivisions, may apply to the
14 department to decertify and remove the designation of
15 deteriorated property as part of a subzone, improvement subzone
16 or expansion subzone. The application must contain all of the
17 following:
18 (1) An identification of the property to be removed.
19 (2) A copy of an agreement which was supported by
20 consideration in which each entity which possesses an
21 interest in the real property to be removed, including any
22 holder of an option either to purchase the real estate or to
23 enter into a ground lease of the real estate or any other
24 leasehold interest in the real estate, waives the party's
25 right to any exemptions, deductions, abatements or credits
26 granted by this act.
27 (3) A copy of a binding ordinance, resolution or other
28 governing document passed by the political subdivision
29 removing any exemptions, deductions, abatements or credits
30 granted by this act effective upon decertification by the
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1 department.
2 (b) Process.--The department may grant the request to
3 decertify and remove the property provided that completed
4 applications have been submitted by all qualified political
5 subdivisions in which the property is located.
6 (c) County improvement.--
7 (1) Prior to decertifying and removing the designation
8 of deteriorated property as part of a subzone, improvement
9 subzone or expansion subzone, and following approval by all
10 qualified political subdivisions in which the property is
11 located, the department shall:
12 (i) Consult with the county commissioners of the
13 county in which a majority of the property that is being
14 decertified is located regarding designation of other
15 deteriorated property within the county in place of the
16 decertified property.
17 (ii) Upon recommendation of the county commissioners
18 of the county in which a majority of the property that is
19 being decertified is located, designate property within
20 the same county as part of the affected subzone,
21 improvement subzone or expansion subzone.
22 (2) If the county in which a majority of the property
23 that is being decertified is located does not have other
24 suitable deteriorated property to be designated in place of
25 the decertified property, the department may designate that
26 part of the subzone, improvement subzone or expansion subzone
27 outside of the county.
28 Section 1309. Expiration.
29 This act and all benefits associated with this act shall
30 terminate December 31, [2018] 2021.
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1 Section 3. The amendment of section 103 of the act shall
2 apply to all zones established or modified after the effective
3 date of this act.
4 Section 4. This act shall take effect immediately.
5 SECTION 1. TITLE 12 OF THE PENNSYLVANIA CONSOLIDATED <--
6 STATUTES IS AMENDED BY ADDING CHAPTERS TO READ:
7 CHAPTER 35
8 KEYSTONE ECONOMIC DEVELOPMENT ZONES
9 SUBCHAPTER
10 A. GENERAL PROVISIONS
11 B. KEYSTONE OPPORTUNITY ZONES AND KEYSTONE OPPORTUNITY
12 EXPANSION ZONES
13 C. STATE TAXES (RESERVED)
14 D. LOCAL TAXES (RESERVED)
15 E. ADMINISTRATION OF TAX PROVISIONS(RESERVED)
16 F. PROCEDURES FOR ZONES (RESERVED)
17 G. MISCELLANEOUS PROVISIONS (RESERVED)
18 SUBCHAPTER A
19 GENERAL PROVISIONS
20 SEC.
21 3501. SCOPE.
22 3502. LEGISLATIVE FINDINGS (RESERVED).
23 3503. DEFINITIONS.
24 § 3501. SCOPE.
25 THIS CHAPTER RELATES TO KEYSTONE OPPORTUNITY ZONES AND
26 KEYSTONE OPPORTUNITY EXPANSION ZONES.
27 § 3502. LEGISLATIVE FINDINGS.
28 (RESERVED)
29 § 3503. DEFINITIONS.
30 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
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1 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
2 CONTEXT CLEARLY INDICATES OTHERWISE:
3 "BUSINESS." AN ASSOCIATION, PARTNERSHIP, CORPORATION, SOLE
4 PROPRIETORSHIP, LIMITED LIABILITY COMPANY OR EMPLOYER.
5 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
6 DEVELOPMENT OF THE COMMONWEALTH.
7 "DETERIORATED PROPERTY." ANY BLIGHTED, IMPOVERISHED AREA
8 CONTAINING RESIDENTIAL, INDUSTRIAL, COMMERCIAL OR OTHER REAL
9 PROPERTY WHICH IS ABANDONED, UNSAFE, VACANT, UNDERVALUED,
10 UNDERUTILIZED, OVERGROWN, DEFECTIVE, CONDEMNED, DEMOLISHED OR
11 WHICH CONTAINS ECONOMICALLY UNDESIRABLE LAND USE. THE TERM
12 INCLUDES PROPERTY ADJACENT TO DETERIORATED PROPERTY WHICH IS
13 SIGNIFICANTLY UNDERVALUED AND UNDERUTILIZED DUE TO THE PROXIMITY
14 OF THE DETERIORATED PROPERTY.
15 "DOMICILE." THE PLACE WHERE A PERSON HAS A TRUE AND FIXED
16 HOME AND PRINCIPAL ESTABLISHMENT FOR AN INDEFINITE TIME AND TO
17 WHICH, WHENEVER ABSENT, THAT PERSON INTENDS TO RETURN. DOMICILE
18 CONTINUES UNTIL ANOTHER PLACE OF DOMICILE IS ESTABLISHED.
19 "EXPANSION SUBZONE." A CLEARLY DEFINED GEOGRAPHIC AREA
20 CONTAINING A MINIMUM OF 15 CONTIGUOUS ACRES OR A MINIMUM OF FIVE
21 CONTIGUOUS ACRES IN A RURAL AREA.
22 "IMPROVEMENT SUBZONE." A CLEARLY DEFINED GEOGRAPHIC AREA.
23 "INSTITUTION."
24 (1) EVERY BANK OPERATING AS SUCH AND HAVING CAPITAL
25 STOCK WHICH IS INCORPORATED UNDER ANY LAW OF THIS
26 COMMONWEALTH, UNDER THE LAW OF THE UNITED STATES OR UNDER THE
27 LAW OF ANY OTHER JURISDICTION AND IS LOCATED WITHIN THIS
28 COMMONWEALTH.
29 (2) EVERY OPERATING COMPANY HAVING CAPITAL STOCK LOCATED
30 WITHIN THIS COMMONWEALTH HAVING ANY OF THE POWERS OF
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1 COMPANIES ENTITLED TO THE BENEFITS OF SECTION 29 OF THE ACT
2 OF APRIL 29, 1874 (P.L.73, NO.32), ENTITLED "AN ACT TO
3 PROVIDE FOR THE INCORPORATION AND REGULATION OF CERTAIN
4 CORPORATIONS," AND ANY SUPPLEMENTS THERETO AND UNDER THE ACT
5 OF JUNE 27, 1895 (P.L.399, NO.286), ENTITLED "AN ACT
6 CONFERRING UPON CERTAIN FIDELITY, INSURANCE, SAFETY DEPOSIT,
7 TRUST AND SAVINGS COMPANIES THE POWERS AND PRIVILEGES OF
8 COMPANIES INCORPORATED UNDER THE PROVISIONS OF SECTION
9 TWENTY-NINE OF AN ACT, ENTITLED 'AN ACT TO PROVIDE FOR THE
10 INCORPORATION AND REGULATION OF CERTAIN CORPORATIONS,'
11 APPROVED APRIL TWENTY-NINTH, ANNO DOMINI ONE THOUSAND EIGHT
12 HUNDRED AND SEVENTY-FOUR, AND OF THE SUPPLEMENTS THERETO."
13 (3) EVERY COMPANY ORGANIZED AND OPERATING AS A BANK AND
14 TRUST COMPANY OR AS A TRUST COMPANY HAVING CAPITAL STOCK
15 LOCATED IN THIS COMMONWEALTH, WHETHER THE INSTITUTION IS
16 INCORPORATED UNDER ANY LAW OF THIS COMMONWEALTH, THE LAW OF
17 THE UNITED STATES OR ANY LAW OF ANY JURISDICTION. THE TERM
18 SHALL NOT INCLUDE ANY OF SUCH COMPANIES, ALL OF THE SHARES OF
19 CAPITAL STOCK OF WHICH, OTHER THAN SHARES NECESSARY TO
20 QUALIFY DIRECTORS, ARE OWNED BY A COMPANY WHICH IS LIABLE TO
21 PAY TO THE COMMONWEALTH A TAX PURSUANT TO ARTICLE VII OF THE
22 ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM
23 CODE OF 1971.
24 (4) A MUTUAL THRIFT INSTITUTION.
25 "INSURANCE COMPANY." EVERY INSURANCE COMPANY, ASSOCIATION OR
26 EXCHANGE INCORPORATED OR ORGANIZED BY OR UNDER THE LAWS OF THIS
27 COMMONWEALTH, THE UNITED STATES, TERRITORIES, DEPENDENCIES,
28 OTHER STATES OR FOREIGN GOVERNMENTS AND ENGAGED IN TRANSACTING
29 INSURANCE BUSINESS OF ANY KIND OR CLASSIFICATION WITHIN THIS
30 COMMONWEALTH, EXCEPT TITLE INSURANCE COMPANIES SUBJECT TO TAX
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1 UNDER ARTICLE VIII OR XVI OF THE ACT OF MARCH 4, 1971 (P.L.6,
2 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AS THE CASE MAY BE,
3 EXCEPT PURELY MUTUAL BENEFICIAL ASSOCIATIONS WHOSE FUNDS FOR THE
4 BENEFIT OF MEMBERS AND FAMILIES OR HEIRS ARE MADE UP ENTIRELY OF
5 THE WEEKLY, MONTHLY, QUARTERLY, SEMIANNUAL OR ANNUAL
6 CONTRIBUTIONS TO THEIR MEMBERS AND THE ACCUMULATED INTEREST
7 THEREON AND CORPORATIONS ORGANIZED UNDER THE FORMER ACT OF JUNE
8 21, 1937 (P.L.1948, NO.378), KNOWN AS THE NONPROFIT HOSPITAL
9 PLAN ACT, AND UNDER THE FORMER ACT OF JUNE 27, 1939 (P.L.1125,
10 NO.399), KNOWN AS THE NONPROFIT MEDICAL, OSTEOPATHIC, DENTAL AND
11 PODIATRY SERVICE CORPORATION ACT.
12 "KEYSTONE ACT." THE ACT OF OCTOBER 6, 1998 (P.L.705, NO.92),
13 KNOWN AS THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY
14 EXPANSION ZONE ACT.
15 "KEYSTONE OPPORTUNITY EXPANSION ZONE." A DEFINED GEOGRAPHIC
16 AREA COMPRISED OF ONE OR MORE POLITICAL SUBDIVISIONS OR PORTIONS
17 OF POLITICAL SUBDIVISIONS DESIGNATED BY THE DEPARTMENT OF
18 COMMUNITY AND ECONOMIC DEVELOPMENT UNDER SUBCH. B (RELATING TO
19 KEYSTONE OPPORTUNITY ZONES AND KEYSTONE EXPANSION ZONES). A
20 KEYSTONE OPPORTUNITY EXPANSION ZONE MAY BE COMPRISED OF NOT MORE
21 THAN EIGHT EXPANSION SUBZONES.
22 "KEYSTONE OPPORTUNITY ZONE." A DEFINED GEOGRAPHIC AREA
23 COMPRISED OF ONE OR MORE POLITICAL SUBDIVISIONS OR PORTIONS OF
24 POLITICAL SUBDIVISIONS DESIGNATED BY THE DEPARTMENT OF COMMUNITY
25 AND ECONOMIC DEVELOPMENT UNDER SUBCH. B (RELATING TO KEYSTONE
26 OPPORTUNITY ZONES AND KEYSTONE OPPORTUNITY EXPANSION ZONES). A
27 KEYSTONE OPPORTUNITY ZONE MAY BE COMPRISED OF NOT MORE THAN 12
28 SUBZONES.
29 "METROPOLITAN STATISTICAL AREA." A CORE AREA CONTAINING A
30 CITY WITH A POPULATION OF 50,000 OR MORE OR A BUREAU OF CENSUS
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1 DEFINED URBANIZED AREA OF 50,000 WITH A TOTAL METROPOLITAN
2 POPULATION OF AT LEAST 100,000.
3 "MUTUAL THRIFT INSTITUTION." EVERY:
4 (1) SAVINGS BANK WITHOUT CAPITAL STOCK;
5 (2) BUILDING AND LOAN ASSOCIATION;
6 (3) SAVINGS AND LOAN ASSOCIATION;
7 (4) SAVINGS INSTITUTION HAVING CAPITAL STOCK;
8 WHETHER THE MUTUAL THRIFT INSTITUTION IS INCORPORATED UNDER ANY
9 LAW OF THIS COMMONWEALTH OR UNDER THE LAW OF THE UNITED STATES,
10 OR IS INCORPORATED UNDER THE LAW OF ANY OTHER JURISDICTION AND
11 IS LOCATED WITHIN THIS COMMONWEALTH.
12 "OPPORTUNITY PLAN." A WRITTEN PLAN THAT ADDRESSES THE
13 CRITERIA AND MEETS THE REQUIREMENTS IN SECTION 3514(A) (RELATING
14 TO APPLICATION).
15 "PERSON." AN INDIVIDUAL.
16 "POLITICAL SUBDIVISION." A COUNTY, CITY, BOROUGH, TOWNSHIP,
17 TOWN OR SCHOOL DISTRICT WITH TAXING JURISDICTION IN A DEFINED
18 GEOGRAPHIC AREA WITHIN THIS COMMONWEALTH.
19 "QUALIFIED BUSINESS." A BUSINESS AUTHORIZED TO DO BUSINESS
20 IN THIS COMMONWEALTH THAT IS LOCATED OR PARTIALLY LOCATED WITHIN
21 A SUBZONE OR EXPANSION SUBZONE AND IS ENGAGED IN THE ACTIVE
22 CONDUCT OF A TRADE OR BUSINESS IN ACCORDANCE WITH THE
23 REQUIREMENTS OF SECTION 3519 (RELATING TO QUALIFIED BUSINESSES)
24 FOR THE TAXABLE YEAR. AN AGENT, BROKER OR REPRESENTATIVE OF A
25 BUSINESS IS NOT ENGAGED IN THE ACTIVE CONDUCT OF TRADE OR
26 BUSINESS FOR THE BUSINESS.
27 "QUALIFIED POLITICAL SUBDIVISION." A POLITICAL SUBDIVISION
28 THAT HAS REAL PROPERTY WITHIN ITS JURISDICTION WHICH HAS BEEN
29 DESIGNATED BY THE DEPARTMENT AS A SUBZONE OR EXPANSION SUBZONE.
30 "RESIDENT." A PERSON WHO IS DOMICILED AND RESIDES IN AN AREA
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1 THAT IS DESIGNATED A SUBZONE OR EXPANSION SUBZONE AND WHO MEETS
2 THE REQUIREMENTS OF SECTION 3518 (RELATING TO RESIDENCY).
3 "SUBZONE." A CLEARLY DEFINED GEOGRAPHIC AREA CONTAINING A
4 MINIMUM OF 20 CONTIGUOUS ACRES OR A MINIMUM OF TEN CONTIGUOUS
5 ACRES IN A RURAL AREA.
6 "TAX REFORM CODE OF 1971." THE ACT OF MARCH 4, 1971 (P.L.6,
7 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AND ANY SUBSEQUENT
8 AMENDMENTS THERETO.
9 SUBCHAPTER B
10 KEYSTONE OPPORTUNITY ZONES AND KEYSTONE
11 OPPORTUNITY EXPANSION ZONES
12 SEC.
13 3511. KEYSTONE OPPORTUNITY ZONES.
14 3512. KEYSTONE OPPORTUNITY EXPANSION ZONES.
15 3513. KEYSTONE OPPORTUNITY IMPROVEMENT ZONES.
16 3514. APPLICATION.
17 3515. REVIEW.
18 3516. CRITERIA FOR AUTHORIZATION OF KEYSTONE OPPORTUNITY
19 ZONE.
20 3517. ZONE LIMITATIONS.
21 3518. RESIDENCY.
22 3519. QUALIFIED BUSINESSES.
23 3520. FORMS.
24 3521. DECERTIFICATION.
25 § 3511. KEYSTONE OPPORTUNITY ZONES.
26 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
27 DEPARTMENT A PROGRAM PROVIDING FOR KEYSTONE OPPORTUNITY ZONES. A
28 KEYSTONE OPPORTUNITY ZONE SHALL BE COMPRISED OF DETERIORATED
29 PROPERTY AND SHALL NOT EXCEED A TOTAL OF 5,000 ACRES.
30 (B) ZONE AUTHORIZATION.--THE DEPARTMENT SHALL AUTHORIZE NOT
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1 MORE THAN 12 KEYSTONE OPPORTUNITY ZONES IN THIS COMMONWEALTH.
2 PERSONS AND BUSINESSES WITHIN AN AUTHORIZED KEYSTONE OPPORTUNITY
3 ZONE THAT ARE QUALIFIED UNDER THIS CHAPTER SHALL BE ENTITLED TO
4 ALL TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH
5 IN CHAPTERS 5 AND 7 OF THE KEYSTONE ACT FOR A PERIOD NOT TO
6 EXCEED 15 YEARS BEGINNING JANUARY 1, 1999, AND ENDING ON OR
7 BEFORE DECEMBER 31, 2013.
8 (C) SUBZONE DESIGNATION.--THE DEPARTMENT MAY DESIGNATE NOT
9 MORE THAN 12 SUBZONES IN EACH KEYSTONE OPPORTUNITY ZONE. THE
10 TOTAL NUMBER OF SUBZONE ACRES IN A KEYSTONE OPPORTUNITY ZONE
11 SHALL NOT EXCEED 5,000 ACRES IN THE AGGREGATE.
12 (D) AUTHORIZATION FOR LOCAL TAX EXEMPTION.--EVERY POLITICAL
13 SUBDIVISION WITHIN WHICH A PROPOSED SUBZONE IS LOCATED, WHETHER
14 IN WHOLE OR IN PART, IS AUTHORIZED TO PROVIDE TAX EXEMPTIONS,
15 DEDUCTIONS, ABATEMENTS OR CREDITS TO PERSONS AND BUSINESSES
16 QUALIFIED UNDER THIS CHAPTER. THE POLITICAL SUBDIVISION MUST
17 AGREE TO PROVIDE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
18 FROM ALL LOCAL TAXES SET FORTH IN CHAPTER 7 OF THE KEYSTONE ACT
19 IN ORDER TO QUALIFY TO BE DESIGNATED A SUBZONE. EXCEPT AS
20 PROVIDED IN SECTION 3515(E) (RELATING TO REVIEW), THE
21 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS MUST BE EFFECTIVE
22 JANUARY 1, 1999, IF DESIGNATION OF A SUBZONE WITHIN THE
23 POLITICAL SUBDIVISION IS GRANTED BY THE DEPARTMENT. THE
24 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SHALL BE BINDING
25 UPON THE POLITICAL SUBDIVISION FOR THE DURATION OF THE SUBZONE
26 DESIGNATION.
27 (E) AUTHORIZATION TO EXTEND THE DURATION OF A KEYSTONE
28 OPPORTUNITY ZONE OR SUBZONE.--A SUBZONE OF A KEYSTONE
29 OPPORTUNITY ZONE MAY REQUEST TO EXTEND ITS DESIGNATION AS A
30 SUBZONE FOR A PERIOD OF THREE YEARS. A SUBZONE THAT IS PART OF A
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1 KEYSTONE OPPORTUNITY ZONE THAT WILL EXPIRE ON DECEMBER 31, 2008,
2 MAY EXTEND ITS DESIGNATION AS A SUBZONE TO DECEMBER 31, 2010, OR
3 TO DECEMBER 31, 2013. THE REQUEST TO EXTEND A SUBZONE
4 DESIGNATION MUST BE MADE ON A SUBZONE-BY-SUBZONE BASIS. A
5 QUALIFIED POLITICAL SUBDIVISION HAVING AN APPROVED SUBZONE
6 WITHIN ITS JURISDICTION AND SEEKING TO EXTEND THE SUBZONE
7 DESIGNATION MUST PASS THE REQUIRED ORDINANCES, RESOLUTIONS OR
8 OTHER REQUIRED ACTION OF THE QUALIFIED POLITICAL SUBDIVISION FOR
9 THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN
10 CHAPTER 7 OF THE KEYSTONE ACT FOR THE PERIOD BEGINNING AFTER
11 DECEMBER 31, 2008, OR DECEMBER 31, 2010, AS THE CASE MAY BE, AND
12 MUST SUBMIT COPIES OF THE ORDINANCE, RESOLUTION OR OTHER ACTION
13 TO THE DEPARTMENT BY JUNE 30, 2001. THE DEPARTMENT MAY GRANT THE
14 REQUEST TO EXTEND IF ALL THE PROPER BINDING ORDINANCES,
15 RESOLUTIONS OR OTHER GOVERNING DOCUMENTS ARE PASSED BY ALL
16 QUALIFIED POLITICAL SUBDIVISIONS WITHIN THE SUBZONE EXTENDING
17 THE NECESSARY EXEMPTIONS, DEDUCTIONS, ABATEMENTS AND CREDITS TO
18 THE ENTIRE SUBZONE TO DECEMBER 31, 2010, OR DECEMBER 31, 2013.
19 THE DEPARTMENT SHALL APPROVE OR DENY THE REQUEST FOR EXTENSION
20 OF DURATION OF A SUBZONE BY JULY 31, 2001, AND SHALL PROVIDE
21 WRITTEN NOTICE, IRRESPECTIVE OF WHETHER APPROVED OR DENIED, TO
22 EACH QUALIFIED POLITICAL SUBDIVISION, RESIDENT AND QUALIFIED
23 BUSINESS AFFECTED. UPON APPROVAL OF A REQUEST FOR EXTENSION OF
24 DURATION OF A SUBZONE, THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
25 CREDITS SHALL BE BINDING UPON THE QUALIFIED POLITICAL
26 SUBDIVISION AS PROVIDED IN SUBSECTION (D).
27 (F) AUTHORIZATION TO ENHANCE EXISTING SUBZONES.--UNLESS AS A
28 RESULT OF A REQUEST THE LIMITATION ON SIZE ESTABLISHED IN
29 SUBSECTION (A) WOULD BE EXCEEDED, A SUBZONE OF A KEYSTONE
30 OPPORTUNITY ZONE MAY REQUEST TO ENHANCE ITS SIZE. THE REQUEST TO
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1 ENHANCE A SUBZONE MUST BE MADE ON A SUBZONE-BY-SUBZONE BASIS. A
2 QUALIFIED POLITICAL SUBDIVISION HAVING AN APPROVED SUBZONE
3 WITHIN ITS JURISDICTION WHICH IS SEEKING TO ENHANCE ITS SIZE
4 MUST PASS THE REQUIRED ORDINANCES, RESOLUTIONS OR OTHER REQUIRED
5 ACTION OF THE QUALIFIED POLITICAL SUBDIVISION FOR THE
6 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN
7 CHAPTER 7 OF THE KEYSTONE ACT FOR THE PERIOD BEGINNING ON THE
8 DATE OF DESIGNATION AND ENDING ON THE DATE THE SUBZONE EXPIRES
9 AND MUST SUBMIT COPIES OF THE ORDINANCE, RESOLUTION OR OTHER
10 ACTION TO THE DEPARTMENT BY JUNE 1, 2004.
11 § 3512. KEYSTONE OPPORTUNITY EXPANSION ZONES.
12 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
13 DEPARTMENT A PROGRAM PROVIDING FOR KEYSTONE OPPORTUNITY
14 EXPANSION ZONES. A KEYSTONE OPPORTUNITY EXPANSION ZONE SHALL BE
15 COMPRISED OF DETERIORATED PROPERTY AND SHALL NOT EXCEED A TOTAL
16 OF 1,500 ACRES.
17 (B) AUTHORIZATION.--THE DEPARTMENT SHALL AUTHORIZE NOT MORE
18 THAN 12 KEYSTONE OPPORTUNITY EXPANSION ZONES IN THIS
19 COMMONWEALTH. PERSONS AND BUSINESSES WITHIN AN AUTHORIZED
20 KEYSTONE OPPORTUNITY EXPANSION ZONE THAT ARE QUALIFIED UNDER THE
21 KEYSTONE ACT SHALL BE ENTITLED TO ALL TAX EXEMPTIONS,
22 DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN CHAPTERS 5 AND 7
23 OF THE KEYSTONE ACT FOR A PERIOD OF TEN OR 13 YEARS BEGINNING
24 JANUARY 1, 2001, AND ENDING ON DECEMBER 31, 2010, OR DECEMBER
25 31, 2013.
26 (C) EXPANSION SUBZONE DESIGNATION.--THE DEPARTMENT MAY
27 DESIGNATE NOT MORE THAN EIGHT EXPANSION SUBZONES IN A KEYSTONE
28 OPPORTUNITY EXPANSION ZONE. THE TOTAL NUMBER OF EXPANSION
29 SUBZONE ACRES IN A KEYSTONE OPPORTUNITY EXPANSION ZONE SHALL NOT
30 EXCEED 1,500 ACRES IN THE AGGREGATE.
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1 (D) AUTHORIZATION FOR LOCAL TAX EXEMPTION.--EVERY POLITICAL
2 SUBDIVISION WITHIN WHICH A PROPOSED EXPANSION SUBZONE IS
3 LOCATED, WHETHER IN WHOLE OR IN PART, IS AUTHORIZED TO PROVIDE
4 TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS TO PERSONS AND
5 BUSINESSES QUALIFIED UNDER THIS CHAPTER FOR A PERIOD ENDING
6 DECEMBER 31, 2010, OR DECEMBER 31, 2013. THE EXEMPTION PERIOD
7 MUST BE UNIFORM WITHIN EACH EXPANSION SUBZONE. THE POLITICAL
8 SUBDIVISION MUST AGREE TO PROVIDE EXEMPTIONS, DEDUCTIONS,
9 ABATEMENTS OR CREDITS FROM ALL LOCAL TAXES SET FORTH IN CHAPTER
10 7 OF THE KEYSTONE ACT IN ORDER TO QUALIFY TO BE DESIGNATED AN
11 EXPANSION SUBZONE. THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
12 CREDITS MUST BE EFFECTIVE JANUARY 1, 2001, IF DESIGNATION OF AN
13 EXPANSION SUBZONE WITHIN THE POLITICAL SUBDIVISION IS GRANTED BY
14 THE DEPARTMENT. THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
15 CREDITS SHALL BE BINDING UPON THE POLITICAL SUBDIVISION FOR THE
16 DURATION OF THE EXPANSION SUBZONE DESIGNATION.
17 (E) AUTHORIZATION TO ENHANCE EXISTING EXPANSION SUBZONES.--
18 UNLESS AS A RESULT OF A REQUEST THE LIMITATION ON SIZE
19 ESTABLISHED IN SUBSECTION (A) WOULD BE EXCEEDED, A KEYSTONE
20 OPPORTUNITY EXPANSION ZONE MAY REQUEST TO ENHANCE ITS SIZE. THE
21 REQUEST TO ENHANCE THE EXPANSION ZONE MUST BE MADE ON AN
22 EXPANSION-SUBZONE-BY-EXPANSION-SUBZONE BASIS. A QUALIFIED
23 POLITICAL SUBDIVISION WHICH IS SEEKING AN EXPANSION SUBZONE
24 WITHIN ITS JURISDICTION MUST PASS THE REQUIRED ORDINANCE,
25 RESOLUTION OR OTHER REQUIRED ACTION OF THE QUALIFIED POLITICAL
26 SUBDIVISION FOR THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR
27 CREDITS SET FORTH IN CHAPTER 7 OF THE KEYSTONE ACT FOR THE
28 PERIOD BEGINNING ON JANUARY 1, 2004, AND ENDING ON DECEMBER 31,
29 2010, OR ON DECEMBER 31, 2013. COPIES OF THE ORDINANCE,
30 RESOLUTION OR OTHER ACTION MUST BE SUBMITTED TO THE DEPARTMENT
20030H0521B2870 - 15 -
1 BY JUNE 1, 2004.
2 § 3513. KEYSTONE OPPORTUNITY IMPROVEMENT ZONES.
3 (A) ESTABLISHMENT.--THERE IS ESTABLISHED WITHIN THE
4 DEPARTMENT A PROGRAM FOR KEYSTONE OPPORTUNITY IMPROVEMENT ZONES.
5 A KEYSTONE OPPORTUNITY IMPROVEMENT ZONE SHALL BE COMPRISED OF
6 IMPROVEMENT SUBZONES CONSISTING OF DETERIORATED PROPERTY
7 DESIGNATED BY THE GOVERNOR.
8 (B) PROPOSAL.--BY JANUARY 1, 2003, AND NOTWITHSTANDING ANY
9 DESIGNATION UNDER SECTIONS 3511 (RELATING TO KEYSTONE
10 OPPORTUNITY ZONES) AND 3512 (RELATING TO KEYSTONE OPPORTUNITY
11 EXPANSION ZONES), THE GOVERNOR MAY, BY EXECUTIVE ORDER,
12 DESIGNATE DETERIORATED PROPERTY IN THIS COMMONWEALTH AS A
13 PROPOSED IMPROVEMENT SUBZONE. THE EXECUTIVE ORDER SHALL SPECIFY
14 THE PERIOD OF TIME, NOT TO EXCEED 15 YEARS, FOR WHICH THE TAX
15 EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS PROVIDED BY
16 CHAPTERS 5 AND 7 OF THE KEYSTONE ACT MAY BE GRANTED. THE
17 DEPARTMENT SHALL IMMEDIATELY NOTIFY POLITICAL SUBDIVISIONS
18 LOCATED WITHIN THE AREA DESIGNATED.
19 (C) APPLICATION.--BY JUNE 1, 2004, A POLITICAL SUBDIVISION
20 MAY APPLY TO THE DEPARTMENT FOR APPROVAL OF THE DESIGNATION OF
21 THE DETERIORATED PROPERTY AS AN IMPROVEMENT SUBZONE FOR THE
22 PERIOD DESIGNATED UNDER SUBSECTION (B). THE APPLICATION MUST BE
23 ON A FORM PROVIDED BY THE DEPARTMENT AND MUST INCLUDE A COPY OF
24 AN ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM THE
25 GOVERNING BODY OF THE POLITICAL SUBDIVISION EXEMPTING OR
26 PROVIDING THE DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN
27 CHAPTER 7 OF THE KEYSTONE ACT TO QUALIFIED PERSONS AND QUALIFIED
28 BUSINESSES WITHIN THE PROPOSED IMPROVEMENT SUBZONE. EXCEPT AS
29 PROVIDED IN SECTION 3521 (RELATING TO DECERTIFICATION), ALL
30 APPROPRIATE ORDINANCES AND RESOLUTIONS MUST BE EFFECTIVE FOR THE
20030H0521B2870 - 16 -
1 PERIOD SPECIFIED IN THE EXECUTIVE ORDER AND MUST BE BINDING AND
2 NONREVOCABLE ON THE POLITICAL SUBDIVISION.
3 (D) DESIGNATION.--IF ALL POLITICAL SUBDIVISIONS WITHIN A
4 PROPOSED IMPROVEMENT SUBZONE SUBMIT TIMELY COMPLETED
5 APPLICATIONS, THE DEPARTMENT SHALL APPROVE THE APPLICATIONS AND
6 DESIGNATE THE PROPERTY AS AN IMPROVEMENT SUBZONE. IF A PROPOSED
7 IMPROVEMENT SUBZONE IS AN EXISTING SUBZONE OR AN EXISTING
8 EXPANSION SUBZONE, FAILURE OF A POLITICAL SUBDIVISION TO SUBMIT
9 THE APPLICATION AS REQUIRED BY THIS SECTION SHALL NOT TERMINATE
10 THE EXISTING DESIGNATION AS EITHER A SUBZONE OR AN EXPANSION
11 SUBZONE. QUALIFIED PERSONS AND QUALIFIED BUSINESSES WITHIN THE
12 IMPROVEMENT SUBZONE SHALL BE ENTITLED TO THE STATE EXEMPTIONS,
13 DEDUCTIONS, ABATEMENTS OR CREDITS SET FORTH IN CHAPTER 5 OF THE
14 KEYSTONE ACT AND THE LOCAL TAX EXEMPTIONS, DEDUCTIONS,
15 ABATEMENTS OR CREDITS SET FORTH IN CHAPTER 7 OF THE KEYSTONE ACT
16 FOR THE PERIOD FOR WHICH THE IMPROVEMENT SUBZONE HAS BEEN
17 DESIGNATED.
18 § 3514. APPLICATION.
19 (A) INITIAL APPLICATION.--ONE OR MORE POLITICAL
20 SUBDIVISIONS, OR A DESIGNEE OF ONE OR MORE POLITICAL
21 SUBDIVISIONS, MAY APPLY TO THE DEPARTMENT TO DESIGNATE
22 DETERIORATED PROPERTY WITHIN THE POLITICAL SUBDIVISION OR
23 PORTIONS THEREOF A SUBZONE OR EXPANSION SUBZONE. THE APPLICATION
24 MUST CONTAIN THE FOLLOWING:
25 (1) THE GEOGRAPHIC AREA OF THE PROPOSED KEYSTONE
26 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION
27 ZONE. THE GEOGRAPHIC AREA MUST BE LOCATED WITHIN THE
28 BOUNDARIES OF THE PARTICIPATING POLITICAL SUBDIVISION AND
29 MUST NOT CONTAIN MORE THAN 5,000 ACRES IN THE CASE OF A
30 KEYSTONE OPPORTUNITY ZONE OR 1,500 ACRES IN THE CASE OF A
20030H0521B2870 - 17 -
1 KEYSTONE OPPORTUNITY EXPANSION ZONE.
2 (2) AN OPPORTUNITY PLAN THAT MUST INCLUDE THE FOLLOWING:
3 (I) A DETAILED MAP OF THE PROPOSED KEYSTONE
4 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
5 EXPANSION ZONE, INCLUDING GEOGRAPHIC BOUNDARIES, TOTAL
6 AREA AND PRESENT USE AND CONDITIONS OF THE LAND AND
7 STRUCTURES OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
8 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
9 (II) EVIDENCE OF SUPPORT FROM AND PARTICIPATION OF
10 LOCAL GOVERNMENT, SCHOOL DISTRICTS AND OTHER EDUCATIONAL
11 INSTITUTIONS, BUSINESS GROUPS, COMMUNITY ORGANIZATIONS
12 AND THE PUBLIC.
13 (III) A PROPOSAL TO INCREASE ECONOMIC OPPORTUNITY,
14 REDUCE CRIME, IMPROVE EDUCATION, FACILITATE
15 INFRASTRUCTURE IMPROVEMENT, REDUCE THE LOCAL REGULATING
16 BURDEN AND IDENTIFY POTENTIAL JOBS AND JOB TRAINING
17 OPPORTUNITIES AND WHICH STATES WHETHER OR NOT THE ZONE IS
18 LOCATED IN AN AREA WHICH HAS TAX REVENUE DEDICATED TO THE
19 PAYMENT OF DEBT.
20 (IV) A DESCRIPTION OF THE CURRENT SOCIAL, ECONOMIC
21 AND DEMOGRAPHIC CHARACTERISTICS OF THE PROPOSED KEYSTONE
22 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
23 EXPANSION ZONE AND ANTICIPATED IMPROVEMENTS IN EDUCATION,
24 HEALTH, HUMAN SERVICES, PUBLIC SAFETY AND EMPLOYMENT,
25 THAT WILL RESULT FROM KEYSTONE OPPORTUNITY ZONE OR
26 KEYSTONE OPPORTUNITY EXPANSION ZONE DESIGNATION.
27 (V) A DESCRIPTION OF ANTICIPATED ACTIVITY IN THE
28 PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE
29 OPPORTUNITY EXPANSION ZONE, INCLUDING, INDUSTRIAL USE,
30 INDUSTRIAL SITE REUSE, COMMERCIAL OR RETAIL USE AND
20030H0521B2870 - 18 -
1 RESIDENTIAL USE.
2 (VI) EVIDENCE OF POTENTIAL PRIVATE AND PUBLIC
3 INVESTMENT IN THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
4 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
5 (VII) THE ROLE OF THE PROPOSED KEYSTONE OPPORTUNITY
6 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE IN
7 REGIONAL ECONOMIC AND COMMUNITY DEVELOPMENT.
8 (VIII) PLANS TO UTILIZE EXISTING RESOURCES FOR THE
9 ADMINISTRATION OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE
10 OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
11 (IX) ANY OTHER INFORMATION DEEMED APPROPRIATE BY THE
12 DEPARTMENT.
13 (3) A REPORT ON YOUTH AT RISK TO INCLUDE ISSUES RELATING
14 TO HEALTH, WELFARE AND EDUCATION.
15 (4) THE DURATION OF THE PROPOSED SUBZONES OR PROPOSED
16 EXPANSION SUBZONES. THE DURATION OF A SUBZONE MAY NOT EXCEED
17 15 YEARS. THE DURATION OF AN EXPANSION SUBZONE MAY NOT EXCEED
18 13 YEARS.
19 (5) A FORMAL, BINDING ORDINANCE OR RESOLUTION PASSED BY
20 EVERY POLITICAL SUBDIVISION IN WHICH THE PROPOSED SUBZONE OR
21 PROPOSED EXPANSION SUBZONE IS LOCATED THAT SPECIFICALLY
22 PROVIDES FOR ALL LOCAL TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS
23 OR CREDITS FOR PERSONS AND BUSINESSES SET FORTH IN THE
24 KEYSTONE ACT.
25 (6) EVIDENCE THAT THE PROPOSED KEYSTONE OPPORTUNITY ZONE
26 OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE MEETS THE
27 REQUIRED CRITERIA UNDER SECTION 3516 (RELATING TO CRITERIA
28 FOR AUTHORIZATION OF KEYSTONE OPPORTUNITY ZONE).
29 (A.1) ENHANCEMENT APPLICATION.--ONE OR MORE POLITICAL
30 SUBDIVISIONS WITHIN AN EXISTING KEYSTONE OPPORTUNITY ZONE OR
20030H0521B2870 - 19 -
1 KEYSTONE OPPORTUNITY EXPANSION ZONE, OR A DESIGNEE OF ONE OR
2 MORE POLITICAL SUBDIVISIONS WITHIN AN EXISTING KEYSTONE
3 OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE, MAY
4 APPLY TO THE DEPARTMENT TO DESIGNATE DETERIORATED PROPERTY
5 WITHIN THE POLITICAL SUBDIVISION OR PORTIONS OF THE POLITICAL
6 SUBDIVISION AS ENHANCEMENTS TO A SUBZONE OR AN EXPANSION
7 SUBZONE. THE APPLICATION MUST SATISFY THE REQUIREMENTS OF
8 SUBSECTION (A)(1), (2), (3), (5) AND (6).
9 (B) PARTICIPATION LIMITATION.--A POLITICAL SUBDIVISION MAY
10 NOT BE A PART OF MORE THAN ONE PROPOSED KEYSTONE OPPORTUNITY
11 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE. A PROPOSED
12 EXPANSION SUBZONE MAY NOT OVERLAP THE BOUNDARIES OF A SUBZONE.
13 (C) APPLICATION LIMITATION.--A POLITICAL SUBDIVISION MAY
14 SUBMIT ONLY ONE APPLICATION TO THE DEPARTMENT FOR AUTHORIZATION
15 AS A KEYSTONE OPPORTUNITY ZONE. A POLITICAL SUBDIVISION MAY
16 SUBMIT ONLY ONE APPLICATION TO THE DEPARTMENT FOR AUTHORIZATION
17 AS A KEYSTONE OPPORTUNITY EXPANSION ZONE. A POLITICAL
18 SUBDIVISION MAY SUBMIT ONLY ONE APPLICATION TO THE DEPARTMENT
19 FOR DESIGNATION OF ENHANCEMENTS TO EXISTING KEYSTONE OPPORTUNITY
20 ZONES AND KEYSTONE OPPORTUNITY EXPANSION ZONES. IF A POLITICAL
21 SUBDIVISION SEEKS TO ENHANCE ITS EXISTING SUBZONE UNDER SECTION
22 3511(F) (RELATING TO KEYSTONE OPPORTUNITY ZONES) OR ITS EXISTING
23 EXPANSION SUBZONE UNDER SECTION 3512(E) (RELATING TO KEYSTONE
24 OPPORTUNITY EXPANSION ZONES) AND THE GOVERNOR HAS DESIGNATED AN
25 IMPROVEMENT SUBZONE LOCATED WITHIN THE POLITICAL SUBDIVISION
26 UNDER SECTION 3513(B) (RELATING TO KEYSTONE OPPORTUNITY
27 IMPROVEMENT ZONES), THE POLITICAL SUBDIVISION MUST SUBMIT ONE
28 APPLICATION CONTAINING BOTH THE REQUEST REQUIRED BY SECTION
29 3511(F) OR 3512(E) AND THE APPLICATION REQUIRED BY SECTION
30 3513(C).
20030H0521B2870 - 20 -
1 § 3515. REVIEW.
2 (A) ACTION OF DEPARTMENT.--THE DEPARTMENT, IN CONSULTATION
3 WITH THE DEPARTMENT OF REVENUE, SHALL REVIEW ALL COMPLETED
4 APPLICATIONS SUBMITTED UNDER THIS CHAPTER. AN APPLICATION FOR
5 AUTHORIZATION AS A KEYSTONE OPPORTUNITY ZONE AND DESIGNATION OF
6 SUBZONES MUST BE RECEIVED BY THE DEPARTMENT BY SEPTEMBER 30,
7 1998, IN ORDER TO BE CONSIDERED BY THE DEPARTMENT. AN
8 APPLICATION FOR AUTHORIZATION AS A KEYSTONE OPPORTUNITY
9 EXPANSION ZONE AND DESIGNATION OF EXPANSION SUBZONES MUST BE
10 RECEIVED BY THE DEPARTMENT BY FEBRUARY 28, 2001, IN ORDER TO BE
11 CONSIDERED BY THE DEPARTMENT. AN APPLICATION FOR ENHANCEMENT OF
12 AN EXISTING KEYSTONE OPPORTUNITY ZONE OR OF A KEYSTONE
13 OPPORTUNITY EXPANSION ZONE AND DESIGNATION OF ENHANCEMENTS TO
14 EXISTING SUBZONES OR TO EXISTING EXPANSION SUBZONES MUST BE
15 RECEIVED BY THE DEPARTMENT BY JUNE 1, 2004.
16 (B) PROCESS.--THE DEPARTMENT SHALL AUTHORIZE UP TO 12
17 KEYSTONE OPPORTUNITY ZONES FROM APPLICATIONS MEETING THE
18 CRITERIA IN SECTION 3516 (RELATING TO CRITERIA FOR AUTHORIZATION
19 OF KEYSTONE OPPORTUNITY ZONE), BASED UPON NEED AND LIKELIHOOD OF
20 SUCCESS. THE DEPARTMENT SHALL AUTHORIZE UP TO 12 KEYSTONE
21 OPPORTUNITY EXPANSION ZONES FROM APPLICATIONS MEETING THE
22 CRITERIA IN SECTION 3516, BASED UPON NEED AND LIKELIHOOD OF
23 SUCCESS. ADDITIONALLY, THE DEPARTMENT SHALL NOT ALTER THE
24 GEOGRAPHIC BOUNDARIES OF A SUBZONE OR EXPANSION SUBZONE OR THE
25 DURATION OF A SUBZONE OR EXPANSION SUBZONE DESCRIBED IN AN
26 APPLICATION. THE DEPARTMENT SHALL DESIGNATE ADDITIONAL
27 ENHANCEMENTS TO EXISTING KEYSTONE OPPORTUNITY ZONES AND TO
28 EXISTING KEYSTONE OPPORTUNITY EXPANSION ZONES FROM APPLICATIONS
29 MEETING THE CRITERIA IN SECTION 3516 BASED UPON NEED AND
30 LIKELIHOOD OF SUCCESS.
20030H0521B2870 - 21 -
1 (C) AUTHORIZATIONS.--THE DEPARTMENT SHALL AUTHORIZE ALL
2 KEYSTONE OPPORTUNITY ZONES BY NOVEMBER 30, 1998. THE DEPARTMENT
3 SHALL AUTHORIZE ALL KEYSTONE OPPORTUNITY EXPANSION ZONES BY
4 MARCH 30, 2001. THE DEPARTMENT SHALL DESIGNATE ALL ENHANCEMENTS
5 TO EXISTING KEYSTONE OPPORTUNITY ZONES AND TO KEYSTONE
6 OPPORTUNITY EXPANSION ZONES BY JUNE 30, 2004.
7 (D) EFFECTIVE DATE OF DESIGNATION.--THE DESIGNATION OF A
8 SUBZONE UNDER THIS CHAPTER SHALL TAKE EFFECT ON JANUARY 1, 1999.
9 THE DESIGNATION OF AN EXPANSION SUBZONE UNDER THIS CHAPTER SHALL
10 TAKE EFFECT ON JANUARY 1, 2001. THE DESIGNATION OF ENHANCEMENTS
11 TO EXISTING SUBZONES AND TO EXISTING EXPANSION SUBZONES UNDER
12 THIS CHAPTER SHALL TAKE EFFECT JANUARY 1, 2004. THE DESIGNATION
13 OF AN IMPROVEMENT SUBZONE UNDER THIS CHAPTER SHALL TAKE EFFECT
14 ON THE DATE THE PROPERTY IS DESIGNATED AN IMPROVEMENT SUBZONE
15 UNDER SECTION 3513(D) (RELATING TO KEYSTONE OPPORTUNITY
16 IMPROVEMENT ZONES).
17 (E) EXTENSION.--THE DEPARTMENT MAY EXTEND THE DEADLINE FOR
18 THE RECEIPT OF APPLICATIONS FOR KEYSTONE OPPORTUNITY ZONES UNTIL
19 DECEMBER 31, 1998, IF ALL 12 ZONES HAVE NOT BEEN AUTHORIZED AND
20 THE EXTENSION IS NECESSARY TO ALLOW ELIGIBLE POLITICAL
21 SUBDIVISIONS TO APPLY. THE DEPARTMENT SHALL AUTHORIZE ADDITIONAL
22 KEYSTONE OPPORTUNITY ZONES UNDER THIS SUBSECTION BY FEBRUARY 28,
23 1999. THE AUTHORIZATION SHALL TAKE EFFECT JANUARY 1, 1999; OR,
24 IF THE AUTHORIZATION OCCURS AFTER JANUARY 1, 1999, THAT
25 SUBSEQUENT AUTHORIZATION SHALL FOR ALL PURPOSES BE RETROACTIVE
26 TO JANUARY 1, 1999. THE KEYSTONE OPPORTUNITY ZONE AUTHORIZATION
27 SHALL END AS PROVIDED IN SECTION 3511(B) (RELATING TO KEYSTONE
28 OPPORTUNITY ZONES).
29 § 3516. CRITERIA FOR AUTHORIZATION OF KEYSTONE OPPORTUNITY
30 ZONE.
20030H0521B2870 - 22 -
1 (A) SPECIFIC CRITERIA.--IN ORDER TO QUALIFY FOR
2 AUTHORIZATION UNDER THIS CHAPTER, THE PROPOSED KEYSTONE
3 OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE
4 MUST MEET AT LEAST TWO OF THE FOLLOWING CRITERIA:
5 (1) AT LEAST 20% OF THE POPULATION IS BELOW THE POVERTY
6 LEVEL.
7 (2) THE UNEMPLOYMENT RATE IS 1.25 TIMES THE STATEWIDE
8 AVERAGE.
9 (3) AT LEAST 20% OF ALL REAL PROPERTY WITHIN A FIVE-MILE
10 RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE, PROPOSED
11 KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED SUBZONE OR
12 PROPOSED EXPANSION SUBZONE IN A NONURBAN AREA IS DETERIORATED
13 OR UNDERUTILIZED.
14 (4) AT LEAST 20% OF ALL REAL PROPERTY WITHIN A ONE-MILE
15 RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE, PROPOSED
16 KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED SUBZONE OR
17 PROPOSED EXPANSION SUBZONE IN AN URBAN AREA IS DETERIORATED
18 OR UNDERUTILIZED.
19 (5) AT LEAST 20% OF ALL OCCUPIED HOUSING WITHIN A TWO-
20 MILE RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE,
21 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED
22 SUBZONE OR PROPOSED EXPANSION SUBZONE IN A NONURBAN AREA IS
23 DETERIORATED.
24 (6) AT LEAST 20% OF ALL OCCUPIED HOUSING WITHIN A ONE-
25 MILE RADIUS OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE,
26 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE, PROPOSED
27 SUBZONE OR PROPOSED EXPANSION SUBZONE IN AN URBAN AREA IS
28 DETERIORATED.
29 (7) IN AN URBAN AREA, THE MEDIAN FAMILY INCOME IS 80% OR
30 LESS OF THE URBAN MEDIAN FAMILY INCOME FOR THAT METROPOLITAN
20030H0521B2870 - 23 -
1 STATISTICAL AREA.
2 (8) IN AN AREA OTHER THAN AN URBAN AREA, THE MEDIAN
3 FAMILY INCOME IS 80% OR LESS OF THE STATEWIDE NONURBAN MEDIAN
4 FAMILY INCOME.
5 (9) THE POPULATION LOSS EXCEEDS 10% IN AN AREA THAT
6 INCLUDES THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED
7 KEYSTONE OPPORTUNITY EXPANSION ZONE AND ITS SURROUNDING AREA
8 BUT IS NOT LARGER THAN THE COUNTY OR COUNTIES IN WHICH THE
9 PROPOSED KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE
10 OPPORTUNITY EXPANSION ZONE IS LOCATED, BASED ON CENSUS DATA
11 FOR THE PERIOD BETWEEN 1980 AND 1990 OR CENSUS ESTIMATES
12 SINCE 1990 ESTABLISHING A PATTERN OF POPULATION LOSS.
13 (10) THE POLITICAL SUBDIVISION IN WHICH THE PROPOSED
14 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
15 EXPANSION ZONE IS LOCATED HAS EXPERIENCED A SUDDEN OR SEVERE
16 JOB LOSS.
17 (11) AT LEAST 33% OF THE REAL PROPERTY IN A PROPOSED
18 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
19 EXPANSION ZONE IN A NONURBAN AREA WOULD OTHERWISE REMAIN
20 UNDERDEVELOPED OR NONPERFORMING DUE TO PHYSICAL
21 CHARACTERISTICS OF THE REAL PROPERTY.
22 (12) THE AREA HAS SUBSTANTIAL REAL PROPERTY WITH
23 ADEQUATE INFRASTRUCTURE AND ENERGY TO SUPPORT NEW OR EXPANDED
24 DEVELOPMENT.
25 (B) ADDITIONAL CRITERIA.--IN ADDITION TO THE REQUIRED
26 CRITERIA UNDER SUBSECTION (A), THE DEPARTMENT SHALL CONSIDER THE
27 FOLLOWING CRITERIA:
28 (1) EVIDENCE OF DISTRESS, INCLUDING UNEMPLOYMENT,
29 PERCENTAGE OF POPULATION BELOW 80% OF THE STATE MEDIAN
30 INCOME, POVERTY RATE, DETERIORATED PROPERTY AND ADVERSE
20030H0521B2870 - 24 -
1 ECONOMIC AND SOCIOECONOMIC CONDITIONS, IN THE PROPOSED
2 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
3 EXPANSION ZONE.
4 (2) THE STRENGTH AND VIABILITY OF THE PROPOSED GOALS,
5 OBJECTIVES AND STRATEGIES, IN THE OPPORTUNITY PLAN.
6 (3) WHETHER THE OPPORTUNITY PLAN IS CREATIVE AND
7 INNOVATIVE IN COMPARISON TO OTHER APPLICATIONS.
8 (4) LOCAL PUBLIC AND PRIVATE COMMITMENT TO THE
9 DEVELOPMENT OF THE PROPOSED KEYSTONE OPPORTUNITY ZONE OR
10 PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE AND THE
11 POTENTIAL COOPERATION OF SURROUNDING COMMUNITIES.
12 (5) EXISTING RESOURCES AVAILABLE TO THE PROPOSED
13 KEYSTONE OPPORTUNITY ZONE OR PROPOSED KEYSTONE OPPORTUNITY
14 EXPANSION ZONE.
15 (6) HOW KEYSTONE OPPORTUNITY ZONE OR KEYSTONE
16 OPPORTUNITY EXPANSION ZONE AUTHORIZATION OR ECONOMIC
17 REDEVELOPMENT RELATES TO OTHER CURRENT ECONOMIC AND COMMUNITY
18 DEVELOPMENT PROJECTS AND TO REGIONAL INITIATIVES OR PROGRAMS.
19 (7) HOW THE LOCAL REGULATORY BURDEN WILL BE EASED FOR
20 BUSINESSES OPERATING IN THE PROPOSED KEYSTONE OPPORTUNITY
21 ZONE OR PROPOSED KEYSTONE OPPORTUNITY EXPANSION ZONE.
22 (8) PROPOSALS TO IMPLEMENT EDUCATIONAL OPPORTUNITIES AND
23 IMPROVEMENTS.
24 (9) CRIME STATISTICS AND PROPOSALS TO IMPLEMENT LOCAL
25 CRIME REDUCTION MEASURES.
26 (10) PROPOSALS TO ESTABLISH AND LINK JOB CREATION AND
27 JOB TRAINING.
28 (C) TAX EXEMPTION ORDINANCES.--AN AREA SHALL NOT BE
29 AUTHORIZED AS A KEYSTONE OPPORTUNITY ZONE OR A KEYSTONE
30 OPPORTUNITY EXPANSION ZONE UNLESS, AS A PART OF THE APPLICATION,
20030H0521B2870 - 25 -
1 EACH POLITICAL SUBDIVISION IN WHICH THE PROPOSED SUBZONE OR
2 PROPOSED EXPANSION SUBZONE IS TO BE LOCATED ADOPTS AND PROVIDES
3 A COPY OF AN ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM
4 THE GOVERNING BODY OF EACH POLITICAL SUBDIVISION THAT EXEMPTS OR
5 PROVIDES DEDUCTIONS, ABATEMENTS OR CREDITS TO QUALIFIED PERSONS
6 AND QUALIFIED BUSINESSES FROM LOCAL TAXES UPON DESIGNATION OF
7 THE AREA AS A SUBZONE OR EXPANSION SUBZONE. ALL APPROPRIATE
8 ORDINANCES AND RESOLUTIONS MUST BE EFFECTIVE BY JANUARY 1, 1999,
9 IF DESIGNATION AS A SUBZONE IS GRANTED. ALL APPROPRIATE
10 ORDINANCES AND RESOLUTIONS MUST BE EFFECTIVE ON JANUARY 1, 2001,
11 IF DESIGNATION AS AN EXPANSION SUBZONE IS GRANTED. ALL
12 APPROPRIATE ORDINANCES AND RESOLUTIONS MUST BE EFFECTIVE JANUARY
13 1, 2004, IF DESIGNATION OF ENHANCEMENTS TO AN EXISTING KEYSTONE
14 OPPORTUNITY ZONE OR TO A KEYSTONE OPPORTUNITY EXPANSION ZONE ARE
15 GRANTED. EXCEPT AS PROVIDED IN SECTION 3521 (RELATING TO
16 DECERTIFICATION), THE RESOLUTION, ORDINANCE OR OTHER REQUIRED
17 ACTION SHALL BE BINDING AND NONREVOCABLE ON THE QUALIFIED
18 POLITICAL SUBDIVISIONS FOR THE DURATION OF THE OPPORTUNITY PLAN.
19 (D) URBAN AREAS.--THE DEPARTMENT SHALL PROMULGATE GUIDELINES
20 THAT INCLUDE THE DEFINITION OF "URBAN AREA" FOR THE PURPOSES OF
21 RECEIVING APPLICATIONS FOR AUTHORIZATION AS A KEYSTONE
22 OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE.
23 § 3517. ZONE LIMITATIONS.
24 THE DEPARTMENT SHALL NOT AUTHORIZE MORE THAN 12 KEYSTONE
25 OPPORTUNITY ZONES WITHIN THIS COMMONWEALTH. NO SUBZONE SHALL
26 ENCOMPASS AN ENTIRE POLITICAL SUBDIVISION. THE DEPARTMENT SHALL
27 NOT AUTHORIZE MORE THAN 12 KEYSTONE OPPORTUNITY EXPANSION ZONES
28 WITHIN THIS COMMONWEALTH. NO EXPANSION SUBZONES SHALL ENCOMPASS
29 AN ENTIRE POLITICAL SUBDIVISION.
30 § 3518. RESIDENCY.
20030H0521B2870 - 26 -
1 IN ORDER TO QUALIFY EACH YEAR FOR THE TAX EXEMPTIONS,
2 DEDUCTIONS, ABATEMENTS OR CREDITS UNDER CHAPTERS 5 AND 7 OF THE
3 KEYSTONE ACT, A PERSON MUST BE DOMICILED AND MUST RESIDE IN A
4 SUBZONE OR EXPANSION SUBZONE FOR A PERIOD OF 184 CONSECUTIVE
5 DAYS DURING EACH TAXABLE YEAR, WHICH MAY BEGIN ON THE DATE OF
6 DESIGNATION BY THE DEPARTMENT OR ON THE DATE THE PERSON FIRST
7 RESIDES WITHIN THE SUBZONE OR EXPANSION SUBZONE.
8 § 3519. QUALIFIED BUSINESSES.
9 (A) QUALIFICATIONS.--IN ORDER TO QUALIFY EACH YEAR FOR THE
10 TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS UNDER CHAPTERS
11 5 AND 7 OF THE KEYSTONE ACT, A BUSINESS MUST OWN OR LEASE REAL
12 PROPERTY IN A SUBZONE, IMPROVEMENT SUBZONE OR EXPANSION SUBZONE
13 FROM WHICH THE BUSINESS ACTIVELY CONDUCTS A TRADE, PROFESSION OR
14 BUSINESS. THE QUALIFIED BUSINESS MUST RECEIVE CERTIFICATION FROM
15 THE DEPARTMENT THAT THE BUSINESS IS LOCATED AND IS IN THE ACTIVE
16 CONDUCT OF A TRADE, PROFESSION OR BUSINESS, WITHIN THE SUBZONE,
17 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE. THE BUSINESS MUST
18 OBTAIN ANNUAL RENEWAL OF THE CERTIFICATION FROM THE DEPARTMENT
19 TO CONTINUE TO QUALIFY UNDER THIS SECTION.
20 (B) RELOCATION.--
21 (1) ANY BUSINESS THAT RELOCATES FROM OUTSIDE A SUBZONE,
22 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE INTO A SUBZONE,
23 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE SHALL NOT RECEIVE
24 ANY OF THE EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET
25 FORTH IN THE KEYSTONE ACT UNLESS THAT BUSINESS EITHER:
26 (I) INCREASES FULL-TIME EMPLOYMENT BY AT LEAST 20%
27 IN THE FIRST FULL YEAR OF OPERATION WITHIN THE SUBZONE,
28 IMPROVEMENT SUBZONE OR EXPANSION SUBZONE; OR
29 (II) MAKES A CAPITAL INVESTMENT IN THE PROPERTY
30 LOCATED WITHIN A SUBZONE, IMPROVEMENT SUBZONE OR
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1 EXPANSION SUBZONE EQUIVALENT TO 10% OF THE GROSS REVENUES
2 OF THAT BUSINESS IN THE IMMEDIATELY PRECEDING CALENDAR OR
3 FISCAL YEAR.
4 (2) THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT
5 OF REVENUE, MAY WAIVE OR MODIFY THE REQUIREMENTS OF THIS
6 SUBSECTION, AS APPROPRIATE.
7 § 3520. FORMS.
8 (A) APPLICATION FORMS.--APPLICATIONS FOR AUTHORIZATION AS A
9 KEYSTONE OPPORTUNITY ZONE OR KEYSTONE OPPORTUNITY EXPANSION ZONE
10 MUST BE ON FORMS PRESCRIBED BY THE DEPARTMENT.
11 (B) DEPARTMENT ASSISTANCE.--THE DEPARTMENT SHALL ASSIST
12 POLITICAL SUBDIVISIONS IN USING THE INTERNET AS A TOOL FOR
13 ENCOURAGING NEW BUSINESS DEVELOPMENT, INCLUDING ASSISTING
14 POLITICAL SUBDIVISIONS IN MAKING AVAILABLE VIA THE INTERNET
15 INFORMATION, APPLICATIONS AND OTHER FORMS NECESSARY UNDER THIS
16 CHAPTER OR THE KEYSTONE ACT.
17 § 3521. DECERTIFICATION.
18 (A) APPLICATION.--ONE OR MORE POLITICAL SUBDIVISIONS, OR A
19 DESIGNEE OF ONE OR MORE POLITICAL SUBDIVISIONS, MAY APPLY TO THE
20 DEPARTMENT TO DECERTIFY AND REMOVE THE DESIGNATION OF
21 DETERIORATED PROPERTY AS PART OF A SUBZONE, IMPROVEMENT SUBZONE
22 OR EXPANSION SUBZONE. THE APPLICATION MUST CONTAIN ALL OF THE
23 FOLLOWING:
24 (1) AN IDENTIFICATION OF THE PROPERTY TO BE REMOVED.
25 (2) A COPY OF AN AGREEMENT WHICH WAS SUPPORTED BY
26 CONSIDERATION IN WHICH EACH ENTITY WHICH POSSESSES AN
27 INTEREST IN THE REAL PROPERTY TO BE REMOVED, INCLUDING ANY
28 HOLDER OF AN OPTION EITHER TO PURCHASE THE REAL ESTATE OR TO
29 ENTER INTO A GROUND LEASE OF THE REAL ESTATE OR ANY OTHER
30 LEASEHOLD INTEREST IN THE REAL ESTATE, WAIVES THE PARTY'S
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1 RIGHT TO ANY EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
2 GRANTED BY THE KEYSTONE ACT.
3 (3) A COPY OF A BINDING ORDINANCE, RESOLUTION OR OTHER
4 GOVERNING DOCUMENT PASSED BY THE POLITICAL SUBDIVISION
5 REMOVING ANY EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS
6 SET FORTH IN CHAPTER 7 OF THE KEYSTONE ACT, EFFECTIVE UPON
7 DECERTIFICATION BY THE DEPARTMENT.
8 (B) PROCESS.--THE DEPARTMENT MAY GRANT THE REQUEST TO
9 DECERTIFY AND REMOVE THE PROPERTY IF COMPLETED APPLICATIONS HAVE
10 BEEN SUBMITTED BY ALL QUALIFIED POLITICAL SUBDIVISIONS IN WHICH
11 THE PROPERTY IS LOCATED.
12 CHAPTER 37
13 KEYSTONE INNOVATION ZONES
14 SEC.
15 3701. SCOPE OF CHAPTER.
16 3702. DEFINITIONS.
17 3703. KEYSTONE INNOVATION ZONES.
18 3704. ASSISTANCE.
19 3705. EXPANSION SUBZONE DESIGNATION.
20 § 3701. SCOPE OF CHAPTER.
21 THIS CHAPTER DEALS WITH KEYSTONE INNOVATION ZONES.
22 § 3702. DEFINITIONS.
23 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
24 SHALL HAVE THEN MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS
25 THE CONTEXT CLEARLY INDICATES OTHERWISE:
26 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
27 DEVELOPMENT OF THE COMMONWEALTH.
28 "ELIGIBLE PROPERTY." REAL PROPERTY WHICH IS LOCATED WITHIN A
29 FIVE-MILE RADIUS OF AN INSTITUTION OF HIGHER EDUCATION IN A
30 RURAL SETTING AND WHICH IS LOCATED WITHIN A ONE-MILE RADIUS OF
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1 AN INSTITUTION OF HIGHER EDUCATION IN AN URBAN SETTING.
2 "INSTITUTION OF HIGHER EDUCATION." A PUBLIC OR PRIVATE
3 INSTITUTION WITHIN THIS COMMONWEALTH AUTHORIZED BY THE
4 DEPARTMENT OF EDUCATION TO GRANT AN ASSOCIATE DEGREE OR HIGHER
5 ACADEMIC DEGREE.
6 "KEYSTONE INNOVATION ZONE." A CLEARLY DEFINED GEOGRAPHIC
7 AREA COMPRISED OF ELIGIBLE PROPERTY DESIGNATED BY THE DEPARTMENT
8 OF COMMUNITY AND ECONOMIC DEVELOPMENT.
9 "QUALIFIED EMPLOYER." AN ENTITY THAT MEETS ALL OF THE
10 FOLLOWING:
11 (1) IS LOCATED WITHIN A KEYSTONE INNOVATION ZONE.
12 (2) EMPLOYS THREE OR MORE INDIVIDUALS WITHIN THE
13 KEYSTONE INNOVATION ZONE.
14 (3) HAS BEEN IN OPERATION SEVEN YEARS OR LESS.
15 "SECRETARY." THE SECRETARY OF COMMUNITY AND ECONOMIC
16 DEVELOPMENT OF THE COMMONWEALTH.
17 § 3703. KEYSTONE INNOVATION ZONES.
18 (A) ESTABLISHMENT.--THERE IS HEREBY ESTABLISHED WITHIN THE
19 DEPARTMENT A PROGRAM TO BE KNOWN AS THE KEYSTONE INNOVATION
20 ZONES PROGRAM. THE PROGRAM SHALL PROVIDE ECONOMIC ASSISTANCE IN
21 AREAS SURROUNDING INSTITUTIONS OF HIGHER EDUCATION.
22 (B) APPLICATION.--ON OR BEFORE JANUARY 1, 2005, AN
23 INSTITUTION OF HIGHER EDUCATION MAY SUBMIT TO THE DEPARTMENT AN
24 APPLICATION TO ESTABLISH A KEYSTONE INNOVATION ZONE. THE
25 APPLICATION SHALL BE ON A FORM PROVIDED BY THE DEPARTMENT AND
26 SHALL INCLUDE ALL OF THE FOLLOWING:
27 (1) A LIST OF WHICH ELIGIBLE PROPERTIES ARE TO BE
28 INCLUDED IN THE KEYSTONE INNOVATION ZONE.
29 (2) THE NAME AND ADDRESS OF THE KEYSTONE INNOVATION
30 ZONE.
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1 (3) THE NAME AND ADDRESS OF THE COORDINATOR OR EXECUTIVE
2 DIRECTOR OF THE KEYSTONE INNOVATION ZONE.
3 (4) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
4 (C) REVIEW AND DESIGNATION.--THE DEPARTMENT SHALL REVIEW THE
5 APPLICATION. UPON BEING SATISFIED THAT THE APPLICATION IS
6 COMPLETE AND ACCURATE, THE DEPARTMENT MAY APPROVE THE
7 APPLICATION. IF THE DEPARTMENT APPROVES THE APPLICATION, THE
8 SECRETARY SHALL DESIGNATE THE PROPERTY AS A KEYSTONE INNOVATION
9 ZONE.
10 § 3704. ASSISTANCE.
11 (A) EXISTING PROGRAMS.--A QUALIFIED EMPLOYER SHALL BE GIVEN
12 PRIORITY CONSIDERATION IN APPLYING FOR ASSISTANCE UNDER ANY OF
13 THE PROGRAMS ESTABLISHED BY:
14 (1) THIS PART AND PART IV (RELATING TO ECONOMIC
15 DEVELOPMENT FINANCING).
16 (2) THE ACT OF MAY 17, 1956 (1955 P.L.1609, NO.537),
17 KNOWN AS THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY
18 ACT.
19 (3) THE ACT OF AUGUST 23, 1967 (P.L.251, NO.102), KNOWN
20 AS THE ECONOMIC DEVELOPMENT FINANCING LAW.
21 (4) THE ACT OF JUNE 22, 2001 (P.L.569, NO.38), KNOWN AS
22 THE BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY ACT.
23 (5) THE ACT OF JUNE 26, 2001 (P.L.755, NO.77), KNOWN AS
24 THE TOBACCO SETTLEMENT ACT.
25 (B) LOANS.--A QUALIFIED EMPLOYER WITH A PROJECT APPROVED FOR
26 FINANCING UNDER THIS PART, PART IV OR BY THE PENNSYLVANIA
27 INDUSTRIAL DEVELOPMENT AUTHORITY SHALL RECEIVE THE LOWEST
28 INTEREST RATE EXTENDED TO BORROWERS.
29 (C) GRANTS.--THE DEPARTMENT MAY PROVIDE A ONE-TIME $250,000
30 GRANT TO A KEYSTONE INNOVATION ZONE TO ESTABLISH AND IMPLEMENT
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1 THE ZONE. THE GRANT SHALL BE DRAWN DOWN AS NEEDED OVER A PERIOD
2 NOT TO EXCEED THE FIRST FIVE YEARS OF AUTHORIZATION AS A
3 KEYSTONE INNOVATION ZONE. GRANT RECIPIENTS SHALL COMPLY WITH THE
4 PROVISIONS OF THE GRANT.
5 § 3705. EXPANSION SUBZONE DESIGNATION.
6 (A) ESTABLISHMENT.--NOTWITHSTANDING SECTIONS 301.1, 303 AND
7 304 OF THE ACT OF OCTOBER 6, 1998 (P.L 705, NO.92), KNOWN AS THE
8 KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION
9 ZONE ACT, AND WITHIN ONE YEAR OF BEING DESIGNATED A KEYSTONE
10 INNOVATION ZONE UNDER THIS CHAPTER, A KEYSTONE INNOVATION ZONE
11 MAY APPLY TO THE DEPARTMENT TO BE DESIGNATED AS AN EXPANSION
12 SUBZONE UNDER THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE
13 OPPORTUNITY EXPANSION ZONE ACT. THE APPLICATION SHALL BE ON A
14 FORM PROVIDED BY THE DEPARTMENT. IN ADDITION TO THE COMPLETED
15 APPLICATION, THE KEYSTONE INNOVATION ZONE SHALL SUBMIT A COPY OF
16 AN ORDINANCE, RESOLUTION OR OTHER REQUIRED ACTION FROM THE
17 GOVERNING BODY OF EACH OF THE POLITICAL SUBDIVISIONS LOCATED
18 WITHIN THE KEYSTONE INNOVATION ZONE WHICH EXEMPTS OR PROVIDES
19 THE DEDUCTIONS, ABATEMENTS OR CREDITS REQUIRED BY CHAPTER 7 OF
20 THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION
21 ZONE ACT TO QUALIFIED PERSONS AND QUALIFIED BUSINESSES WITHIN
22 THE KEYSTONE INNOVATION ZONE AS THOSE TERMS ARE DEFINED WITHIN
23 THAT ACT. THE DEPARTMENT MAY APPROVE THE APPLICATION AND
24 DESIGNATE THE PROPERTY LOCATED WITHIN THE KEYSTONE INNOVATION
25 ZONE AS AN EXPANSION SUBZONE FOR THE PERIOD BEGINNING ON THE
26 DATE OF DESIGNATION AND ENDING ON DECEMBER 31, 2013. QUALIFIED
27 PERSONS AND QUALIFIED BUSINESSES WITHIN THE EXPANSION SUBZONE
28 SHALL BE ENTITLED TO THE STATE TAX EXEMPTIONS, DEDUCTIONS,
29 ABATEMENTS OR CREDITS SET FORTH IN CHAPTER 5 OF THE KEYSTONE
30 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT AND
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1 THE LOCAL TAX EXEMPTIONS, DEDUCTIONS, ABATEMENTS OR CREDITS SET
2 FORTH IN CHAPTER 7 OF THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE
3 OPPORTUNITY EXPANSION ZONE ACT FOR THE PERIOD FOR WHICH THE
4 EXPANSION SUBZONE HAS BEEN DESIGNATED.
5 (B) CONSTRUCTION.--A KEYSTONE INNOVATION ZONE DESIGNATED AN
6 EXPANSION SUBZONE UNDER THIS SECTION SHALL BE SUBJECT TO THE
7 REQUIREMENTS OF THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE
8 OPPORTUNITY EXPANSION ZONE ACT.
9 SECTION 2. THE ADDITION OF 12 PA.C.S. § 3503 IS INTENDED TO
10 BE IN PARI MATERIA WITH SECTION 103 OF THE ACT OF OCTOBER 6,
11 1998 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE
12 AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT.
13 SECTION 3. REPEALS ARE AS FOLLOWS:
14 (1) CHAPTER 3 OF THE ACT OF OCTOBER 6, 1998 (P.L.705,
15 NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE
16 OPPORTUNITY EXPANSION ZONE ACT, IS REPEALED.
17 (2) ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS
18 THEY ARE INCONSISTENT WITH THIS ACT.
19 SECTION 4. THE ADDITION OF 12 PA.C.S. CH. 35 IS A
20 CONTINUATION OF CHAPTER 3 OF THE ACT OF OCTOBER 6, 1998
21 (P.L.705, NO.92), KNOWN AS THE KEYSTONE OPPORTUNITY ZONE AND
22 KEYSTONE OPPORTUNITY EXPANSION ZONE ACT. THE FOLLOWING APPLY:
23 (1) EXCEPT AS OTHERWISE PROVIDED IN 12 PA.C.S. CH. 35,
24 ALL ACTIVITIES INITIATED UNDER CHAPTER 3 OF THE KEYSTONE
25 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT
26 SHALL CONTINUE AND REMAIN IN FULL FORCE AND EFFECT AND MAY BE
27 COMPLETED UNDER 12 PA.C.S. CH. 35. ORDERS, REGULATIONS, RULES
28 AND DECISIONS WHICH WERE MADE UNDER CHAPTER 3 OF THE KEYSTONE
29 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT
30 AND WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
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1 3(2.1) OF THIS ACT SHALL REMAIN IN FULL FORCE AND EFFECT
2 UNTIL REVOKED, VACATED OR MODIFIED UNDER 12 PA.C.S. CH. 35.
3 CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING AGREEMENTS
4 ENTERED INTO UNDER CHAPTER 3 OF THE KEYSTONE OPPORTUNITY ZONE
5 AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT ARE NOT AFFECTED
6 NOR IMPAIRED BY THE REPEAL OF CHAPTER 3 OF THE KEYSTONE
7 OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION ZONE ACT.
8 (2) EXCEPT AS SET FORTH IN PARAGRAPH (3), ANY DIFFERENCE
9 IN LANGUAGE BETWEEN 12 PA.C.S. CH. 35 AND CHAPTER 3 OF THE
10 KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY EXPANSION
11 ZONE ACT IS INTENDED ONLY TO CONFORM TO THE STYLE OF THE
12 PENNSYLVANIA CONSOLIDATED STATUTES AND IS NOT INTENDED TO
13 CHANGE OR AFFECT THE LEGISLATIVE INTENT, JUDICIAL
14 CONSTRUCTION OR ADMINISTRATION AND IMPLEMENTATION OF CHAPTER
15 3 OF THE KEYSTONE OPPORTUNITY ZONE AND KEYSTONE OPPORTUNITY
16 EXPANSION ZONE ACT.
17 (3) PARAGRAPH (2) DOES NOT APPLY TO THE FOLLOWING:
18 (I) THE ADDITION OF 12 PA.C.S. § 3511(F).
19 (II) THE ADDITION OF 12 PA.C.S. § 3512(E).
20 (III) THE ADDITION OF 12 PA.C.S. § 3513(C).
21 (IV) THE ADDITION OF 12 PA.C.S. § 3514(C).
22 (V) THE ADDITION OF 12 PA.C.S. § 3515(A), (B), (C)
23 AND (D).
24 SECTION 5. THE ADDITION OF 12 PA.C.S. § 3513(C) SHALL APPLY
25 RETROACTIVELY TO MAY 31, 2003.
26 SECTION 6. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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