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                                                       PRINTER'S NO. 937

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 778 Session of 2003


        INTRODUCED BY D. WHITE, KITCHEN, O'PAKE, MUSTO, ERICKSON,
           WAGNER, COSTA, PUNT, ORIE, C. WILLIAMS, KUKOVICH, M. WHITE,
           BOSCOLA, SCHWARTZ, WAUGH, SCARNATI, MELLOW, ROBBINS, LEMMOND,
           PILEGGI, TARTAGLIONE AND WONDERLING, JUNE 6, 2003

        REFERRED TO FINANCE, JUNE 6, 2003

                                     AN ACT

     1  Amending the act of June 29, 1996 (P.L.434, No.67), entitled, as
     2     amended, "An act to enhance job creation and economic
     3     development by providing for an annual financing strategy,
     4     for opportunity grants, for job creation tax credits, for
     5     small business assistance, for the Small Business Advocacy
     6     Council, for a family savings program, for industrial
     7     development assistance, for community development bank grants
     8     and loans and for tax-exempt bond allocation; conferring
     9     powers and duties on various administrative agencies and
    10     authorities; further providing for various funds; and making
    11     repeals," providing for keystone innovation zones.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  The act of June 29, 1996 (P.L.434, No.67), known
    15  as the Job Enhancement Act, is amended by adding a chapter to
    16  read:
    17                             CHAPTER 19
    18                     KEYSTONE INNOVATION ZONES
    19  Section 1901.  Definitions.
    20     The following words and phrases when used in this chapter
    21  shall have the meanings given to them in this section unless the


     1  context clearly indicates otherwise:
     2     "Eligible property."  Real property which is located within
     3  five miles radius of an institution of higher education.
     4     "Institution of higher education."  Any public or private
     5  institution within this Commonwealth authorized by the
     6  Department of Education to grant an associate degree or higher
     7  academic degree.
     8     "Keystone innovation zone."  A clearly defined geographic
     9  area comprised of eligible property designated by the
    10  department.
    11     "Qualified employer."  An entity that meets all of the
    12  following:
    13         (1)  Is located within a keystone innovation zone.
    14         (2)  Employs three or more individuals within the
    15     keystone innovation zone.
    16         (3)  Has been in operation seven years or less.
    17  Section 1902.  Keystone innovation zones.
    18     (a)  Establishment.--There is hereby established within the
    19  department a keystone innovation zones program for the purpose
    20  of increasing economic development in areas surrounding
    21  institutions of higher education.
    22     (b)  Application.--On or before January 1, 2006, 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 eligible property which is to be included
    28     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)  Such other information as the department may
     4     require.
     5     (c)  Review and designation.--The department shall review the
     6  application. Upon being satisfied that the application is
     7  complete and accurate, the department shall approve the
     8  application, and the secretary shall designate the property as a
     9  keystone innovation zone.
    10  Section 1903.  Assistance.
    11     (a)  Existing programs.--A qualified employer shall be given
    12  priority consideration in applying for assistance under any
    13  program established by this act, the act of May 17, 1956 (1955
    14  P.L.1609, No.537), known as the Pennsylvania Industrial
    15  Development Authority Act, the act of August 23, 1967 (P.L.251,
    16  No.102), known as the Economic Development Financing Law, the
    17  act of June 22, 2001 (P.L.569, No.38), known as The Ben Franklin
    18  Technology Development Authority Act, or the act of June 26,
    19  2001 (P.L.755, No.77), known as the Tobacco Settlement Act.
    20     (b)  Loans.--A qualified employer with a project approved for
    21  financing under this act or by the Pennsylvania Industrial
    22  Development Authority shall receive the lowest interest rate
    23  extended to borrowers.
    24     (c)  Grants.--The department may provide a one-time $250,000
    25  grant to a keystone innovation zone in order to establish and
    26  implement the zone. The grant shall be drawn down as needed over
    27  a period not to exceed the first five years of authorization as
    28  a keystone innovation zone. Grant recipients shall comply with
    29  the provisions of the grant.
    30  Section 1904.  Expansion subzone designation.
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     1     (a)  Establishment.--Notwithstanding sections 301.1, 303 and
     2  304 of the act of October 6, 1998 (P.L.705, No.92), known as the
     3  Keystone Opportunity Zone and Keystone Opportunity Expansion
     4  Zone Act, and within one year of being designated a keystone
     5  innovation zone under this chapter, a keystone innovation zone
     6  may apply to the department to be designated as an expansion
     7  subzone under the Keystone Opportunity Zone and Keystone
     8  Opportunity Expansion Zone Act. The application shall be on a
     9  form provided by the department. In addition to the completed
    10  application, the keystone innovation zone shall submit a copy of
    11  an ordinance, resolution or other required action from the
    12  governing body of each of the political subdivisions located
    13  within the keystone innovation zone which exempts or provides
    14  the deductions, abatements or credits required by Chapter 7 of
    15  the Keystone Opportunity Zone and Keystone Opportunity Expansion
    16  Zone Act to qualified persons and qualified businesses within
    17  the keystone innovation zone as those terms are used within that
    18  act. The department shall approve the application and designate
    19  the property located within the keystone innovation zone as an
    20  expansion subzone for the period beginning on the date of
    21  designation and ending on December 31, 2013. Qualified persons
    22  and qualified businesses within the expansion subzone shall be
    23  entitled to the State tax exemptions, deductions, abatements or
    24  credits set forth in Chapter 7 of the Keystone Opportunity Zone
    25  and Keystone Opportunity Expansion Zone Act and the local tax
    26  exemptions, deductions, abatements or credits set forth in
    27  Chapter 9 of the Keystone Opportunity Zone and Keystone
    28  Opportunity Expansion Zone Act, for the period for which the
    29  expansion subzone has been designated.
    30     (b)  Construction.--A keystone innovation zone designated an
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     1  expansion subzone under this section shall be subject to the
     2  requirements of the Keystone Opportunity Zone and Keystone
     3  Opportunity Expansion Zone Act.
     4     Section 2.  This act shall take effect immediately.


















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