PRINTER'S NO. 515
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
382
Session of
2015
INTRODUCED BY WILEY, COSTA, BLAKE, BROWNE, HUGHES, FONTANA,
FARNESE, YUDICHAK, ARGALL, HUTCHINSON, McGARRIGLE,
VULAKOVICH, BREWSTER, SMITH AND TEPLITZ, FEBRUARY 25, 2015
REFERRED TO FINANCE, FEBRUARY 25, 2015
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 the definitions of "city" and
"contracting authority" and for establishment of contracting
authority, providing for number of authorized zones and
further providing for approval.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "city" and "contracting
authority" in section 1802-C of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, amended or added
July 9, 2013 (P.L.270, No.52) and October 31, 2014 (P.L.2929,
No.194), are amended to read:
Section 1802-C. Definitions.
The following words and phrases when used in this article
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"City." A city of the second class A or third class [with a
population of at least 30,000 based on the most recent Federal
decennial census]. The term includes a city that is a distressed
city under the act of July 10, 1987 (P.L.246, No.47), known as
the Municipalities Financial Recovery Act. The term shall not
include a city that [has had], at the time an application is
submitted under section 1804-C(a) for a zone within the city, is
subject to a receiver appointed under Chapter 7 of [the act of
July 10, 1987 (P.L.246, No.47), known as] the Municipalities
Financial Recovery Act.
* * *
"Contracting authority." [An] A new or existing authority
established [under 53 Pa.C.S. Ch. 56 (relating to municipal
authorities)] or designated by a city, borough, township or home
rule county [for the purpose of:
(1) designating zones; and
(2) engaging in the construction, including related site
preparation and infrastructure, reconstruction or renovation
of facilities.] to designate and administer zones, issue
bonds and engage in the financing, construction, related site
preparation and infrastructure, reconstruction or renovation
of facilities in accordance with this article. 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
20150SB0382PN0515 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Class County Convention Center Authority Act, or under
Article XXIII, Subdivision (N) or (O) of the act of August 9,
1955 (P.L.323, No.130), known as The County Code.
(3) An authority established under the act of December
6, 1972 (P.L.1392, No.298), known as the Third Class City
Port Authority Act.
(4) An authority established under another Commonwealth
statute other than as listed under paragraphs (1), (2) and
(3).
* * *
Section 2. Section 1803-C of the act, amended October 31,
2014 (P.L.2929, No.194), is amended to read:
Section 1803-C. Establishment of contracting authority.
(a) Authorization.--Except as set forth in subsection (b), a
city, borough or township may establish or designate a
contracting authority [to designate a zone] under this article.
(b) Distressed cities.--A city that is a distressed city
under the act of July 10, 1987 (P.L.246, No.47), known as the
Municipalities Financial Recovery Act, and is located in a
county of the second class A that is a home rule county may not
establish a contracting authority under this article.
(c) Counties.--[The home rule county] A county of the second
class A that is a home rule county and 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.
Section 3. The act is amended by adding a section to read:
Section 1803.1-C. Number of authorized zones.
The department shall authorize 15 zones as follows:
(1) four in cities with populations above 60,000 based
20150SB0382PN0515 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
on the most recent Federal decennial census;
(2) four in cities with populations above 20,000, but
not more than 60,000, based on the most recent Federal
decennial census;
(3) four in cities with populations up to 20,000 based
on the most recent Federal decennial census; and
(4) three additional cities regardless of population
category if the city otherwise meets the requirements of this
article.
Section 4. Section 1804-C(c) of the act, added July 9, 2013
(P.L.270, No.52), is amended to read:
Section 1804-C. Approval.
* * *
(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] 15 initial zones may be approved.
Priority for approval shall be given to applications
submitted on behalf of a city that is a distressed city under
the act of July 10, 1987 (P.L.246, No.47), known as the
Municipalities Financial Recovery Act, or a city that has had
a receiver appointed under Chapter 7 of the Municipalities
Financial Recovery Act.
(2) Beginning in 2016, applications for two additional
zones may be approved each calendar year[.] regardless of
population. Priority for approval shall be given to
applications submitted on behalf of a city that is a
distressed city under the Municipalities Financial Recovery
Act or a city that has had a receiver appointed under Chapter
20150SB0382PN0515 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
7 of the Municipalities Financial Recovery Act.
(3) Following the effective date of this paragraph, the
Department of Community and Economic Development, the office
and the department, may approve [one pilot zone] not more
than five pilot zones.
(4) A city may not be approved for more than one zone.
A township or borough may not be approved for more than one
pilot zone. A city that established a neighborhood
improvement zone under Article XIX-B shall be eligible to
apply for or be approved for a zone under this article.
* * *
Section 5. This act shall take effect in 60 days.
20150SB0382PN0515 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12