PRINTER'S NO. 937
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. 20030S0778B0937 - 2 -
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. 20030S0778B0937 - 3 -
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 20030S0778B0937 - 4 -
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. E30L12RLE/20030S0778B0937 - 5 -