1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying 
3and enumerating certain subjects of taxation and imposing 
4taxes thereon; providing procedures for the payment, 
5collection, administration and enforcement thereof; providing 
6for tax credits in certain cases; conferring powers and 
7imposing duties upon the Department of Revenue, certain 
8employers, fiduciaries, individuals, persons, corporations 
9and other entities; prescribing crimes, offenses and 
10penalties," further providing for the definitions of "city,"
11"contracting authority" and "pilot zone" and for 
12establishment of contracting authority; providing for number 
13of authorized zones; and further providing for approval.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1. The definitions of "city," "contracting 
17authority" and "pilot zone" in section 1802-C of the act of 
18March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 
191971, added July 9, 2013 (P.L.270, No.52), are amended to read:

20Section 1802-C. Definitions.

21The following words and phrases when used in this article
22shall have the meanings given to them in this section unless the
23context clearly indicates otherwise:

1* * *

2"City." A city of the second class A or third class [with a
3population of at least 30,000 based on the most recent Federal
4decennial census. The term shall not include a city that has had
5a receiver appointed under Chapter 7 of the act of July 10, 1987
6(P.L.246, No.47), known as the Municipalities Financial Recovery
7Act]. The term includes a city that is a distressed city under 
8the act of July 10, 1987 (P.L.246, No.47), known as the 
9Municipalities Financial Recovery Act, and a city that has had a 
10receiver appointed under Chapter 7 of the Municipalities 
11Financial Recovery Act.

12* * *

13"Contracting authority." An authority established under 53
14Pa.C.S. Ch. 56 (relating to municipal authorities) by a city or
15[home rule] county for the purpose of:

16(1) designating zones; and

17(2) engaging in the construction, including related site
18preparation and infrastructure, reconstruction or renovation
19of facilities.

20* * *

21"Pilot zone." An area of not more than 130 acres designated
22by the contracting authority following application and approval
23by the Department of Community and Economic Development, the
24office and the department which will provide economic
25development and job creation within a township or borough, with
26a population of at least 7,000 based on the most recent Federal
27decennial census.

28* * *

29Section 2. Section 1803-C of the act, added July 9, 2013 
30(P.L.270, No.52), is amended to read:

1Section 1803-C. Establishment of contracting authority.

2(a) Cities.--[Except as set forth in subsection (b), a]A
3city may establish a contracting authority to designate a zone
4under this article.

5(b) Distressed cities.--A city that is a distressed city
6under the act of July 10, 1987 (P.L.246, No.47), known as the
7Municipalities Financial Recovery Act, and is located in a 
8county of the second class A that is a home rule county may not
9establish a contracting authority under this article.

10(c) Counties.--[The home rule county]A county of the second 
11class A that is a home rule county and where a distressed city
12under the Municipalities Financial Recovery Act is located may
13establish a contracting authority to designate a zone under this
14article within the distressed city.

15Section 3. The act is amended by adding a section to read:

16Section 1803.1-C. Number of authorized zones.

17The department shall authorize 15 zones as follows:

18(1) four in cities with populations above 60,000 based
19on the most recent Federal decennial census;

20(2) four in cities with populations above 20,000, but
21not more than 60,000, based on the most recent Federal
22decennial census;

23(3) four in cities with populations up to 20,000 based
24on the most recent Federal decennial census; and

25(4) three additional cities regardless of population
26category if the city otherwise meets the requirements of this
27article.

28Section 4. Section 1804-C(c) of the act, added July 9, 2013 
29(P.L.270, No.52), is amended to read:

30Section 1804-C. Approval.

1* * *

2(c) Approval schedule.--The Department of Community and
3Economic Development shall develop a schedule for the approval
4of applications under this section as follows:

5(1) Following the effective date of this paragraph,
6applications for [two] 15 initial zones may be approved.
7Priority for approval shall be given to applications 
8submitted on behalf of a city that is a distressed city under 
9the act of July 10, 1987 (P.L.246, No.47), known as the 
10Municipalities Financial Recovery Act, or a city that has had 
11a receiver appointed under Chapter 7 of the Municipalities 
12Financial Recovery Act.

13(2) Beginning in 2016, applications for two additional
14zones may be approved each calendar year[.] regardless of 
15population. Priority for approval shall be given to 
16applications submitted on behalf of a city that is a 
17distressed city under the Municipalities Financial Recovery 
18Act or a city that has had a receiver appointed under Chapter 
197 of the Municipalities Financial Recovery Act.

20(3) Following the effective date of this paragraph, the
21Department of Community and Economic Development, the office
22and the department, may approve [one pilot zone] not more 
23than five pilot zones.

24(4) A city may not be approved for more than one zone.
25A township or borough may not be approved for more than one
26pilot zone. A city that established a neighborhood
27improvement zone under Article XIX-B shall be eligible to
28apply for or be approved for a zone under this article.

29* * *

30Section 5. This act shall take effect in 60 days.