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PRINTER'S NO. 3297
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2406
Session of
2024
INTRODUCED BY GUZMAN, KINSEY, SCHLOSSBERG, MADSEN, JAMES,
SANCHEZ, DONAHUE, HADDOCK, NEILSON, CIRESI, ZIMMERMAN, HILL-
EVANS, KAZEEM, DELLOSO, BOYD, GREEN AND CEPEDA-FREYTIZ,
JUNE 11, 2024
REFERRED TO COMMITTEE ON FINANCE, JUNE 11, 2024
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in city revitalization and improvement zones,
further providing for definitions, for establishment or
designation of contracting authority, for approval, for
functions of contracting authorities, for qualified
businesses, for funds, for reports, for calculation of
baseline, for certification, for transfers, for restrictions
and for transfer of property, providing for floating zones,
further providing for Commonwealth pledges and for
confidentiality, providing for operational funding and
technical support and further providing for guidelines and
for review.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "bond," "city," "city
revitalization and improvement zone," "contracting authority,"
"eligible tax," "facility," "pilot zone," "qualified business,"
"zone" and "zone fund" in section 1802-C of the act of March 4,
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1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
amended to read:
Section 1802-C. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Bond." The term includes any [public or private financing,]
note, [mortgage, loan, deed of trust,] instrument, refunding
note or other evidence of indebtedness or obligation.
* * *
"City." A city of the [second class A or] third class [or a
home rule municipality] with a population of at least 20,000
based on the most recent Federal decennial census.
"City revitalization and improvement zone." An area of not
more than 130 acres, [that may include an area in one or more
contiguous municipalities,] comprised of parcels designated by
the contracting authority, which will provide economic
development and job creation within a city[.], township or
borough, whether or not the entity is in financial distress,
with a population at least 7,000.
* * *
"Contracting authority." [A new or existing authority
established or designated by a city, municipality or home rule
county to designate and administer zones. The term shall
include:
(1) An authority established under 53 Pa.C.S. Ch. 56
(relating to municipal authorities).
(2) An authority established under the former act of
December 27, 1994 (P.L.1375, No.162), known as the Third
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Class County Convention Center Authority Act, or under
Article XXIII(n) or (o) of the act of August 9, 1955
(P.L.323, No.130), known as the County Code.
(3) An authority established by a contiguous
municipality under 53 Pa.C.S. Ch. 56 for the purposes of this
act.] An authority established under 53 Pa.C.S. Ch. 56
(relating to municipal authorities) by a city or home rule
county for the purposes of:
(1) designating zones; and
(2) engaging in the construction, including related site
preparation and infrastructure, reconstruction or renovation
of facilities.
* * *
"Eligible tax." Any of the following taxes:
(1) Corporate net income tax, capital stock and
franchise tax, bank shares tax[, personal income tax paid by
shareholders, members or partners of Subchapter S
corporations, limited liability companies, partnerships or
sole proprietors on income other than passive activity income
as defined under section 469 of the Internal Revenue Code of
1986 (Public Law 99-516, 26 U.S.C. ยง 1 et seq.)] or business
privilege tax, calculated and apportioned as to amount
attributable to the location within the zone and calculated
under section 1904-B(b) and (c).
(2) Amusement tax, only to the extent the tax is related
to the activity of a qualified business within the zone.
(3) Sales and use tax, only to the extent the tax is
related to the activity of a qualified business within the
zone. [The term includes sales and use taxes on material used
for construction in the zone and business personal property
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to be used by the qualified business in the zone.
(3.1) The hotel occupancy tax imposed under Part V of
Article II.]
(4) Personal income tax withheld from its employees by a
qualified business for work performed in the zone.
(5) Local services tax withheld from its employees by a
qualified business for work performed in the zone.
(6) Earned income tax withheld from its employees by a
qualified business for work performed in the zone.
(7) [All taxes] Tax paid to the Commonwealth[, or an
amount equal to all of the taxes paid to the Commonwealth,
related to the purchase or] on the sale of liquor, wine or
malt or brewed beverages [by a licensee located in the zone
for purchases that occurred outside] in the zone.
(8) Insurance premium tax paid by domestic and foreign
insurance companies for the privilege of doing business in
the Commonwealth.
(9) Any new State-level tax imposed after January 1,
2024.
The term does not include cigarette tax.
"Facility." A structure or complex of structures [in a zone]
to be used for commercial, [industrial,] sports, exhibition,
hospitality, conference, retail, community, office, recreational
or mixed-use purposes.
* * *
["Pilot zone." An area of not more than 100 acres designated
by the contracting authority following application and approval
by the Department of Community and Economic Development, the
office and the department which will provide economic
development and job creation within one or more municipalities,
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with a total population of at least 7,000 based on the most
recent Federal decennial census.]
* * *
"Qualified business." As follows:
(1) An entity located or partially located in a zone
which meets the requirements of all of the following:
(i) Has conducted an active trade or business in the
zone.
(ii) Appears on the timely filed list under section
1807-C(a).
(2) A construction contractor engaged in construction,
including infrastructure or site preparation, reconstruction
or renovation of a facility located in or partially in the
zone.
(3) The term does not include an agent, broker or
representative of a business.
"Zone." [Any of the following:
(1)] A city revitalization and improvement zone.
[(2) A pilot zone.]
"Zone Fund." A city revitalization and improvement zone [or
pilot zone] fund established under section 1808-C.
Section 2. Sections 1803-C and 1804-C(a), (c), (d) and (e)
of the act are amended to read:
Section 1803-C. Establishment [or designation] of contracting
authority.
(a) [Authorization] Cities.--Except as set forth in
subsection (b), a city[, municipality or home rule county] may
establish [or designate] a contracting authority to designate a
zone under this article.
(b) Distressed [cities.--A city] municipalities.--A
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municipality that is a distressed [city] municipality under the
act of July 10, 1987 (P.L.246, No.47), known as the
Municipalities Financial Recovery Act, [and is located in a home
rule county] may not establish a contracting authority under
this article until such time as the municipality is removed from
financially distressed status.
[(c) Counties.--The home rule county where a distressed city
under the Municipalities Financial Recovery Act is located may
establish a contracting authority to designate a zone under this
article within the distressed city.]
(d) Additional consideration . --Municipalities that remain in
nondistressed status as determined under the Municipalities
Financial Recovery Act for a period of five or more years shall
receive additional consideration in determining zone status
within their respective municipal boundaries.
Section 1804-C. Approval.
(a) Submission.--A contracting authority may apply to the
Department of Community and Economic Development for approval of
a zone plan. The application must include all of the following:
(1) A plan to establish one or more facilities which
will promote economic development.
(2) An economic development plan[, including a plan for
the repayment of all bonds].
(3) Specific information relating to the facility which
will be constructed, including infrastructure and site
preparation, reconstructed or renovated as part of the plan.
(4) Other information as required by the Department of
Community and Economic Development, the office or the
department.
(5) A designation of the specific geographic area,
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including parcel numbers and a map of the zone with parcel
numbers, of which the zone will consist.
* * *
(c) Approval schedule.--The Department of Community and
Economic Development shall develop a schedule for the approval
of applications under this section as follows:
(1) Following the effective date of this paragraph,
applications for two initial [city revitalization and
improvement] zones [and one pilot zone] may be approved.
(2) Beginning in 2016, applications for two additional
zones may be approved each calendar year.
* * *
(d) Time.--[The Department of Community and Economic
Development shall establish and publish application deadlines in
the Pennsylvania Bulletin and on its publicly accessible
Internet website.] An application under this section shall be
approved or disapproved within 90 days of the postmark date of
submission. An application which is not disapproved within the
time period under this subsection shall be deemed to be
approved.
(e) Reapplication.--If an application is not approved under
this section, the applicant may revise [and resubmit] the
application and plan and reapply for approval.
* * *
Section 3. Section 1806-C(a) of the act is amended and the
section is amended by adding subsections to read:
Section 1806-C. Functions of contracting authorities.
(a) Powers.--The contracting authority may do all of the
following:
(1) Designate a zone where a facility may be [acquired,]
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constructed, including infrastructure and site preparation,
reconstructed or renovated.
(2) [Engage in the acquisition, development,
construction, including infrastructure and site preparation,
reconstruction or renovation of facilities.
(3) Engage in the public or private financing of the
acquisition, development, construction, including
infrastructure and site preparation, reconstruction or
renovation of facilities.
(4) Utilize money under section 1813-C.] Provide or
borrow money for any of the following purposes:
(i) Development or improvement within a zone.
(ii) Construction, including infrastructure and site
preparation, reconstruction or renovation of a facility
within a zone which will result in economic development
in accordance with the contracting authority's plan.
(a.1) New city revitalization and improvement zones.--The
designation of up to two new city revitalization and improvement
zones every four years shall be permitted for townships and
boroughs in or not in financial distress with populations of
7,000 to 19,999 residents and up to two new city revitalization
and improvement zones every four years with populations of
20,000 or more residents for a total of up to four new city
revitalization zones per year.
(a.2) Cap.--For city revitalization and improvement zones in
a township or borough not in financial distress meeting
population requirements, the city revitalization and improvement
zones shall be capped at $5,000,000.
(a.3) Designation.--New city revitalization and improvement
zones shall not be required to be designated on an annual basis.
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(a.4) Contracting authority.--A contracting authority may
permit a municipality that is determined to be in financial
distress under the act of July 10, 1987 (P.L.246, No.47), known
as the Municipalities Financial Recovery Act, to create a city
revitalization and improvement zone, except that the
municipality that is determined to be in financial distress
under the Municipalities Financial Recovery Act must meet
standards developed and set by the contracting authority. A
contracting authority shall develop unique standards specific to
each municipality that is determined to be in financial distress
under the Municipalities Financial Recovery Act to apply time
lines for standards 90 days after the date of the application.
* * *
Section 4. Sections 1807-C(a) and (c) and 1808-C(b) of the
act are amended to read:
Section 1807-C. Qualified businesses.
(a) List.--By June 1 following the end of the baseline year,
and for every year thereafter, each contracting authority shall
file with the department a complete list of all businesses
located in the zone and all [businesses] business' construction
contractors engaged in [acquisition, development,] construction,
including infrastructure and site preparation, reconstruction or
renovation of a facility in the zone in the prior calendar year.
The list shall include for each business the address, [the names
of the business owners or corporate officers,] State tax
identification number and parcel number and a map of the zone
with parcel numbers.
* * *
(c) Audit.--The contracting authority shall hire an
independent auditing firm to perform an annual audit verifying
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all of the following [and shall submit the audit to the
Department of Community and Economic Development and the
Department of Revenue as well as post on the contracting
authority's publicly accessible Internet website]:
(1) The correct amount of the eligible local tax was
submitted to the local taxing authorities.
(2) The local taxing authorities transferred the correct
amount of eligible local tax to the State Treasurer.
(3) The moneys transferred to the fund were expended [in
accordance with this article].
(4) The correct amount that was requested to be
transferred in the notification required under section [1812-
C(c)] 1812-C(c)(1).
Section 1808-C. Funds.
* * *
(b) Establishment.--Upon receipt of notice under subsection
(a), the State Treasurer shall establish for each zone a special
fund for the benefit of the contracting authority to be known as
the City Revitalization and Improvement Zone Fund [or Pilot Zone
Fund]. Interest income derived from investment of money in the
[zone fund] City Revitalization and Improvement Zone Fund shall
be credited by the State Treasury to the [zone fund] General
Fund.
Section 5. Section 1809-C(a) introductory paragraph, (b)
introductory paragraph and (c)(2), (3) and (4) of the act,
amended July 8, 2022 (P.L.513, No.53), are amended to read:
Section 1809-C. Reports.
(a) State zone report.--No later than June 15 following the
baseline year and each year thereafter, [or by August 31 for
reports due in 2020,] each qualified business shall file a
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report with the department in a form or manner required by the
department which includes all of the following:
* * *
(b) Local zone report.--No later than June 15 following the
baseline year and for each year thereafter, [or by August 31 for
reports due in 2020,] each qualified business shall file a
report with the local taxing authority which includes all of the
following:
* * *
(c) Penalties.--
* * *
(2) [The department shall notify the contracting
authority of all qualified businesses that violated
subsection (a) prior to December 31 of the year in which the
report was to be filed.] A penalty for a violation of
subsection (a) shall be imposed, assessed and collected by
the department under procedures set forth in Article II.
Money collected under this paragraph shall be deposited in
the General Fund.
(3) A penalty for a violation of subsection (b) shall be
imposed, assessed and collected by the [city or municipality]
political subdivision under procedures for imposing penalties
under local tax collection laws.
(4) If a local taxing authority imposes the penalty, the
money shall be transferred to the State Treasurer for deposit
in the [zone] fund of the contracting authority.
* * *
Section 6. Sections 1810-C(a) and (b), 1811-C(a)(1)(i) and
(ii) and (2) and (c)(1)(i), (ii) and (iii), 1812-C(b), (c)(1),
(4) and (5), 1813-C(a)(1), (2) and (6), (b), (c)(1), (2) and (3)
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and (d)(1), (2) and (3) of the act are amended to read:
Section 1810-C. Calculation of baseline.
(a) Baseline tax amount.--By October 15 following the end of
the baseline year and for each year thereafter, the department
shall verify the State baseline tax amount [for each qualified
business in a zone] which consists of the following:
(1) For [each] qualified [business] businesses that
[files] file timely State zone reports under section 1809-
C(a), the amount of eligible State tax paid, less State
eligible tax refunds.
(2) For [each] qualified [business] businesses not
included under paragraph (1) but located or partially located
in the zone as determined by the department or included in
the information received by the department under section
1809-C(a), the amount of State eligible tax paid, less State
eligible tax refunds.
(3) The department may use data from a municipality's
past five years as the baseline year.
(b) Moves and noninclusions.--
(1) This subsection applies to a qualified business
that:
(i) moves into a zone from within this Commonwealth
after the baseline year; or
(ii) is in a zone but not included in the
calculation of the State baseline tax amount under
subsection (a).
(2) A qualified business subject to paragraph (1) shall
file a State zone report under section 1809-C following the
end of the first full calendar year in which the qualified
business conducted business in the zone and each calendar
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year thereafter. The amount of eligible State tax verified by
the department for the qualified business for the [first full
calendar] prior calendar year shall be [the qualified
business' fixed baseline tax amount. The amount added shall
remain part of the baseline tax amount each year thereafter
until such time as the qualified business ceases to conduct
business in the zone, upon which event such amount previously
added shall be deducted from] added to the State baseline tax
amount for the zone for the prior calendar year and each year
thereafter.
(3) [The following taxes shall be excluded from the
baseline tax amount calculation under this section:
(i) Taxes on business personal property to be
utilized at a new facility.
(ii) The eligible taxes of:
(A) A new business.
(B) A qualified business moving into the zone
from outside this Commonwealth.
(C) A contractor engaged in acquisition,
development or construction, including infrastructure
and site preparation, reconstruction or renovation of
a facility.] The calculation under this section shall
not include the eligible taxes of a qualifying
business moving into the zone from outside this
Commonwealth.
* * *
Section 1811-C. Certification.
(a) Amounts.--By the October 15 following the baseline year,
and each year thereafter, the department shall do all of the
following for [each qualified business within a zone for] the
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prior calendar year:
(1) [Subject to paragraph (1.1), make] Make the
following calculation for qualified businesses which file
State zone reports under section 1809-C(a), separately for
each [business] zone:
(i) Subtract:
(A) the amount of eligible State tax refunds
received; from
(B) the amount of eligible State tax paid.
(ii) [Except as set forth in subparagraph (iii),
subtract] Subtract:
(A) the State tax baseline amount for the
[business] zone; from
(B) the difference under subparagraph (i).
* * *
(2) Certify to the office the [sum derived from adding
paragraph (1) to paragraph (1.1)] difference under paragraph
(1)(ii).
* * *
(c) Submission.--The following shall apply:
(1) An entity collecting a local eligible tax within the
zone [for each qualified business which files a zone report
under section 1809-C(b)] shall, by October 15 following the
baseline year and each year thereafter, submit the following
to the State Treasurer for transfer to the fund:
(i) The local eligible tax collected in the prior
calendar year.
(ii) Less the amount of local eligible tax refunds
issued in the prior calendar year.
(iii) Less the amount of local baseline tax [amount]
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for the zone.
* * *
Section 1812-C. Transfers.
* * *
(b) State Treasurer.--Within ten days of receiving direction
under subsection (a), the State Treasurer shall pay into the
fund the amount directed under subsection (a) until bonds issued
to finance the [acquisition, development,] construction,
including related infrastructure and site preparation,
reconstruction or renovation of a facility or other eligible
project in the zone, are retired.
(c) Notification.--The following shall apply:
(1) If the transfers under subsection (a) and section
1811-C(c) are insufficient to make payments on the bonds
issued under section 1813-C(a)(1) for the calendar year when
the transfers are made, the contracting authority shall
notify the Department of Community and Economic Development,
the office and the department of the amount of [the
deficiency and may request the] additional money necessary to
make payments on the bonds.
* * *
(4) Money transferred under paragraph (3):
(i) shall be limited to [50%] 30% of the State tax
baseline amount for the calendar year prior to the date
the amount is verified under paragraph (2), not to exceed
$7,500,000; and
(ii) must occur in the first seven calendar years
following the baseline year.
(5) Money transferred under paragraph (3) shall be
repaid to the General Fund by the contracting authority. If
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money transferred under paragraph (3) is not repaid to the
General Fund by the contracting authority [within 12 calendar
years following the baseline year, the city, municipality or
home rule county which established or designated the
contracting authority shall pay the money not repaid to the
General Fund plus an additional penalty of 10% of the amount
outstanding on] by the date of the final payment on the bonds
originally issued under section 1813-C(a)(1)[.], the city or
county which established the contracting authority shall pay
the money not repaid to the General Fund plus an additional
penalty of 10% of the amount outstanding on the date of the
final payment on the bonds originally issued under section
1813-C(a)(1).
Section 1813-C. Restrictions.
(a) Utilization.--[Money] If the use was approved in an
application filed under section 1804-C, money transferred under
section 1812-C may only be utilized for the following:
(1) Payment of debt service on bonds issued [or
refinanced] for the [acquisition, development,] construction,
including related infrastructure and site preparation,
reconstruction, renovation or [refinancing] renovation of a
facility in the zone [and normal and customary fees for
professional services associated with the issuance or
refinance of the bonds].
* * *
(2) [Acquisition, development, construction,]
Construction, including related infrastructure and site
preparation, reconstruction[,] or renovation [or refinancing]
of all or a part of a facility.
* * *
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(6) Improvement projects, including fixtures and
equipment for a facility owned[, in whole or in part,] by a
public authority.
* * *
(b) Prohibition.--
[(1)] Money transferred under section 1812-C may not be
utilized for maintenance or repair of a facility.
[(2) Paragraph (1) shall not apply for the period of
April 1, 2020, through June 30, 2021.]
(c) Excess money.--
(1) [Except as set forth in paragraph (4), if] If the
amount of money transferred to the fund under sections 1811-
C(c) and 1812-C in any one calendar year exceeds the money
utilized[, budgeted or appropriated by official resolution of
the contracting authority] under this section in that
calendar year[, the contracting authority shall submit by
April 15 following the end of the calendar year any money not
utilized, budgeted or appropriated by official resolution of
the contracting authority to the State Treasurer for deposit
into the General Fund.
(2) At the time of submission to the State Treasurer,
the], a zone may carry over revenue received for a period of
10 years to build funding for projects impactful to the
municipality. The carryover amount shall be capped at
$5,000,000 per zone.
(2) The contracting authority shall submit to the State
Treasurer, the office and the department a detailed
accounting of the calculation resulting in the excess money.
(3) The excess money shall be credited to the
contracting authority [and applied to the amount required to
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be repaid under section 1812-C(c)(5) until there is full
repayment]. Upon the conclusion of the 10-year period, any
excess revenue not transfer ed by the zone shall be repaid to
the Commonwealth.
* * *
(d) Matching funds.--
(1) The amount of money transferred from the fund
utilized for the [acquisition, development,] construction,
including related site preparation and infrastructure,
reconstruction or renovation of facilities, or normal and
customary fees for professional services shall be matched by
private[, Federal or local] money at a ratio of five fund
dollars to one private[, Federal or local] dollar. [The
contracting authority shall verify the private, Federal or
local match for a project at the time of the bond and report
proof of the match to the agencies. All of the following
shall be deemed private money:
(i) Equity.
(ii) Private developer debt and financing.
(iii) Soft costs associated with land development.
(iv) Costs of professional services associated with
development.
(v) Costs associated with improvements of the
parcel.
(vi) Costs of land acquisition and real estate
transactions.]
* * *
(2) By April 1 following the baseline year and for each
year thereafter, the contracting authority shall file an
annual report with the Department of Community and Economic
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Development, the office and the department that contains a
detailed account of the fund money expenditures and the
private[, Federal or local] money expenditures and a
calculation of the ratio in paragraph (1) for the prior
calendar year. The agencies shall determine whether
sufficient private money was utilized.
(3) If it is determined that insufficient private[,
Federal or local] money was utilized under paragraph (1), the
amount of fund money utilized under paragraph (1) in the
prior calendar year shall be deducted from the next transfer
of the fund.
Section 7. Section 1814-C(a) and (b) of the act are amended
and the section is amended by adding a subsection to read:
Section 1814-C. Transfer of property.
(a) Property.--Parcels [in] of a zone where a facility has
not been constructed, reconstructed or renovated using money
under this article may be transferred out of the zone[, if the
contracting authority provides a notarized certification,
confirmed in the annual audit required under section 1807-C(c),
that no fund dollars were used on the property]. Additional
acreage[, not to exceed the acreage transferred out of the
zone,] may be added to the zone.
* * *
(a.3) New parcels.--New parcels may be added to replace
removed parcels. Newly added parcels shall not have to be the
same acreage as the removed parcels.
(b) Approval.--A transfer under [subsections] subsection (a)
[and (a.2)] or (a.3) must be approved by the owner of the parcel
and the Department of Community and Economic Development, in
consultation with the office and the department. Requests to
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transfer parcels must be approved or denied within 90 days from
the date of the parcel transfer request. Parcel transfer
requests must be made in writing and submitted to the Department
of Community and Economic Development.
Section 8. The act is amended by adding a section to read:
Section 1815 .1 -C. Floating zones.
(a) Expansion .--A contracting authority may authorize a
floating zone allowing for the expansion of a portion of a zone
that has been sufficiently developed. The zone portion may be
expanded to allow for the development of additional areas of the
municipality.
(b) Transfer .--The expanded zones shall be transferred out
of a zone to allow the new floating zone to be transferred into
the city revitalization and improvement zone. The new floating
zone shall not be required to be the same size as the former
zone being transferred out of the city revitalization and
improvement zone.
(c) Increment revenue .--A floating zone shall be permitted
to utilize 25% to 30% in increment revenue generated in excess
of debt service payments to fund nonincrement-producing
activities, including:
(1) residential projects, such as the creation of new
housing stock; and
(2) recreational projects, such as improvements at a
local community park.
(d) Requirements .--Any additional approved zone fund
disbursements for nonincrement-producing activities shall be
subject to legal and programmatic requirements in effect on the
effective date of this subsection, mandated for increment-
producing activities.
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(e) Definition.--For the purpose of this section, the term
"sufficiently developed" means a zone that has reached the level
of development required to fulfill its intended purpose.
Section 9. Section 1816-C(a)(1) and (2) of the act are
amended to read:
Section 1816-C. Commonwealth pledges.
(a) Pledge.--If and to the extent the contracting authority
pledges amounts required to be transferred to its fund under
section 1812-C for payment of bonds issued by the contracting
authority, until all of the bonds secured by the pledge of the
contracting authority, together with interest on the bonds, are
fully paid or provided for, the Commonwealth pledges to and
agrees with any person, firm, corporation or government agency,
in this Commonwealth or elsewhere, and pledges to and agrees
with any Federal agency subscribing to or acquiring the bonds of
the contracting authority that the Commonwealth itself will not,
nor will it authorize any government entity to, do any of the
following:
(1) Abolish or reduce the size of the zone[, or transfer
zone designation from a parcel contrary to section 1814-C].
(2) Amend or repeal section 1810-C[,] or 1811-C[, 1812-
C, 1813-C, 1814-C, 1815-C or this section to the detriment of
the issuer of any bonds].
* * *
Section 10. Section 1817-C(a) of the act, amended July 8,
2022 (P.L.513, No.53), is amended to read:
Section 1817-C. Confidentiality.
(a) Sole use.--A zone report or certification under this
article shall only be used by the contracting authority to
verify the amount of the State tax baseline amount calculated
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under section 1810-C[,] and the State tax certification under
section 1811-C [and the amount allocated to any uses specified
under section 1813-C].
* * *
Section 11. The act is amended by adding a section to read:
Section 1817 .1-C. Operational funding and technical support.
(a) Transfer .--The General Assembly shall transfer funds in
an amount to be determined by the General Assembly from the
General Fund to the Department of Community and Economic
Development for zone-related operational costs in zones with
populations of 20,000 or more and for the provision of technical
support, planning and zone operations for the first five years
of a new zone. For smaller municipalities of 7,000 to 19,999 in
population, the zone fund transfer shall be prorated by the
Department of Community and Economic Development at 35% of other
city revitalization and improvement zones.
(b) Additional administrative support .--
(1) Of the amount transferred under subsection (a),
additional administrative support funds not to exceed 2% of
the total transfer shall be allocated to the Department of
Community and Economic Development for the hiring of one new
staff member for every two new zones to manage the new
programs.
(2) Of the amount transferred under subsection (a),
a dditional administrative support funds not to exceed 2% of
the total transfer shall be provided to the Department of
Revenue for the hiring of one new staff member per new zone
designated to assist in the tax certification process in each
zone.
Section 12. Section 1818-C of the act is amended to read:
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Section 1818-C. Guidelines.
[The] By October 31, 2024, the Department of Community and
Economic Development, the office and the department shall
develop[, update] and publish guidelines necessary to implement
this article.
Section 13. Section 1819-C(a) of the act is amended by
adding a paragraph to read:
Section 1819-C. Review.
(a) Department of Community and Economic Development.--By
December 31, 2021, the Department of Community and Economic
Development shall, in cooperation with the office and the
department, complete a review and analysis of all active zones.
The review shall include an analysis of:
* * *
(5) Annual performance reports, to be compiled and
submitted by the Department of Community and Economic
Development in partnership with the office and the
department, to the General Assembly. The entities shall have
the authority to collect the necessary data needed at no cost
and shall have the full cooperation of Commonwealth, city,
county and municipal entities in securing the data parcels.
* * *
Section 14. This act shall take effect in 60 days.
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