PRINTER'S NO. 1728
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1410
Session of
2019
INTRODUCED BY STEPHENS, KENYATTA, ULLMAN, POLINCHOCK, SCHROEDER,
CIRESI AND WARREN, MAY 6, 2019
REFERRED TO COMMITTEE ON COMMERCE, MAY 6, 2019
AN ACT
Amending the act of December 8, 2004 (P.L.1801, No.238),
entitled "An act empowering municipalities, counties and
public transportation agencies to work cooperatively to
establish Transit Revitalization Investment Districts (TRID),
including partnerships with the National Railroad Passenger
Corporation requiring planning studies, comprehensive plan
and zoning amendments and use of existing statutes and
techniques to achieve transit-oriented development,
redevelopment, community revitalization and enhanced
community character through TRID creation; establishing value
capture areas as a means to reserve and use future,
designated incremental tax revenues for public transportation
capital improvements, related site development improvements
and maintenance; promoting the involvement of and
partnerships with the private sector in TRID development and
implementation; encouraging public involvement during TRID
planning and implementation; and providing for duties of the
Department of Community and Economic Development," in general
provisions, further providing for declaration of policy and
for definitions; providing for military installation
remediation; and establishing the Military Installation
Remediation Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 102 of the act of December 8, 2004
(P.L.1801, No.238), known as the Transit Revitalization
Investment District Act, is amended by adding a paragraph to
read:
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Section 102. Declaration of policy.
The General Assembly finds and declares as follows:
* * *
(3) There is a lack of funding and knowledge relating to
remediation needed at military installations to address PFAS
contamination, and there is a need to provide for proper
infrastructure in the water systems on military installations
and surrounding parcels.
Section 2. Section 103 of the act is amended by adding
definitions to read:
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Authority." The Pennsylvania Infrastructure Investment
Authority.
* * *
"Deteriorated property." The term shall have the same
meaning as in section 103 of the act of October 6, 1998
(P.L.705, No.92), known as the Keystone Opportunity Zone,
Keystone Opportunity Expansion Zone and Keystone Opportunity
Improvement Zone Act.
* * *
"Military installation remediation project." A project or
use of money by a qualified authority under section 303-A(a).
* * *
"Qualified authority." A municipal authority established
under 53 Pa.C.S. Ch. 56 (relating to municipal authorities)
after the effective date of this definition by a qualified
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municipality for the purpose of issuing grants for a military
installation remediation project.
"Qualified former military installation." A parcel that was
previously used by a branch of the United States Armed Forces
for a military installation that was closed based on the
recommendation of the Defense Base Closure and Realignment
Commission no more than 15 years prior to the effective date of
this definition.
"Qualified municipality." A municipality which has within
its geographic bounds a qualified former military installation.
"Qualified tax." All of the following:
(1) Corporate net income tax, bank shares tax, personal
income tax paid by shareholders, members or partners of
Subchapter S corporations, limited liability companies,
partnerships or amounts paid by 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.), calculated and apportioned as to the
amount attributable to the location within a qualified former
military installation.
(2) Sales and use tax, only to the extent the tax is
related to the activity of a qualified business within a
qualified former military installation. The term includes
sales and use taxes on material used for construction in a
qualified former military installation and business personal
property to be used by a qualified business in a qualified
former military installation.
(3) Personal income tax withheld from employees by a
qualified business for work performed in a qualified former
military installation.
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(4) Realty transfer tax paid to the Commonwealth, for
property purchased within a qualified former military
installation.
(5) Local taxes designated by a local taxing entity.
The term does not include a cigarette tax.
"Qualified taxpayer." A person conducting business for
profit in a parcel designated under section 301-A(a)(4) or an
individual whose primary residence is in a parcel designated
under section 301-A(a)(4). The term does not include a person
conducting business for profit that moved operations from a non-
designated parcel to the designated parcel.
* * *
"Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
* * *
Section 3. The act is amended by adding a chapter to read:
CHAPTER 3-A
MILITARY INSTALLATION REMEDIATION
Section 301-A. Military installation remediation program.
(a) Applications.--
(1) A qualified authority shall submit an application to
the Department of Revenue with a list of parcels. The list
may include the following:
(i) A qualified former military installation.
(ii) A parcel in the qualified municipality which
was previously subject to development restrictions due to
the presence of the qualified former military
installation.
(iii) No more than 100 acres of parcels in the
qualified municipality which are deteriorated.
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(2) The application shall include a copy of the
development plan, relevant geographic data, parcel numbers
and an economic impact report containing potential State and
local revenue impact and such additional information as
proscribed by the Department of Revenue.
(3) The application shall include a certificate from the
governing board of a qualified municipality that approves
designating local taxes to be part of the qualified taxes for
use for the local efforts under section 303-A(c).
(4) Parcels included within applications that meet
Department of Revenue criteria shall receive full designation
for the program described in this section.
(b) List.--By September 1, 2019, June 1, 2020 and June 1
each year thereafter, a qualified authority shall file with the
Department of Revenue a list of all qualified taxpayers located
in parcels designated under subsection (a).
(c) Contents.--The list under subsection (b) shall include
all businesses and residents located in or residing in the
designated parcels and all businesses engaged in acquisition,
development and construction in designated parcels during 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 with parcel numbers.
(d) Time.--If the list under subsection (b) is not timely
provided to the Department of Revenue, no eligible tax may be
certified by the Department of Revenue for the purpose of the
transfer under subsection (j) for the calendar year.
(e) Parcel report.--No later than October 15, 2019, June 15,
2020 and June 15 each year thereafter, each qualified taxpayer
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shall file a program report with the Department of Revenue in a
form or manner required by the department that includes all of
the following:
(1) The amount of each qualified tax paid to the
Commonwealth by the qualified taxpayer in the prior calendar
year.
(2) The amount of each qualified tax refund received
from the Commonwealth in the prior calendar year by the
qualified taxpayer.
(f) Penalties.--
(1) Failure to file a timely and complete report under
subsection (e) may result in the imposition of a penalty of
the lesser of:
(i) ten percent of all eligible tax due the taxing
authority in the prior calendar year; or
(ii) one thousand dollars.
(2) A penalty for a violation of subsection (e) shall be
imposed, assessed and collected by the department under
procedures specified in Article II of the Tax Reform Code of
1971. Money collected under this paragraph shall be deposited
in the General Fund.
(3) Failure by a municipality to include all eligible
local revenue shall disqualify the municipality from the
receipt of any State or local revenue.
(g) Certification.--By November 15, 2019 and November 15
each year thereafter, the Department of Revenue shall:
(1) Determine the amount of eligible tax paid by each
qualified taxpayer in the prior calendar year, which
qualified taxpayer appears on a timely filed list under
subsection (b) and that made a timely program report under
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subsection (e).
(2) Determine the amount of eligible State tax refunds
received less the amount of eligible State tax paid.
(3) Certify to the Office of the Budget, the sum derived
from adding the amounts determined under paragraphs (1) and
(2).
(h) Content.--
(1) The certification may include the following:
(i) Qualified taxes actually paid by qualified
taxpayers in the prior calendar year.
(ii) Qualified tax refunds paid to qualified
taxpayers in the prior calendar year.
(2) The certification shall not include the following:
(i) Qualified taxes paid by a qualified taxpayer
that did not file a timely program report.
(ii) Qualified taxes paid by a qualified taxpayer
not appearing on the timely filed parcel list.
(i) State tax liability apportionment.--For the purpose of
making the calculations under the certification, the qualified
tax liability of a qualified taxpayer shall be apportioned to
the designated parcels under section 301-A(a)(4) by multiplying
the State tax liability by a fraction, the numerator of which is
the property factor plus the payroll factor plus the sales
factor and the denominator of which is three, in accordance with
the following:
(1) The property factor is a fraction, the numerator of
which is the average value of the qualified taxpayers' real
and tangible personal property owned or rented and used in
the designated parcels during the tax period and the
denominator of which is the average value of all the
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qualified business' real and tangible personal property owned
or rented and used in this Commonwealth during the tax period
but shall not include the security interest of any
corporation as seller or lessor in personal property sold or
leased under a conditional sale, bailment lease, chattel
mortgage or other contract providing for the retention of a
lien or title as security for the sale price of the property.
(2) The following apply:
(i) The payroll factor is a fraction, the numerator
of which is the total amount paid in the designated
parcels during the tax period by the qualified taxpayer
for compensation and the denominator of which is the
total compensation paid in this Commonwealth during the
tax period.
(ii) Compensation is paid in the designated parcels
if:
(A) the person's service is performed entirely
within the designated parcels;
(B) the person's service is performed both
within and without the designated parcels, but the
service performed without the designated parcels is
incidental to the person's service within the
designated parcels; or
(C) some of the service is performed in the
designated parcels and the base of operations or, if
there is no base of operations, the place from which
the service is directed or controlled is in the
designated parcels, or the base of operations or the
place from which the service is directed or
controlled is not in any location in which some part
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of the service is performed, but the person's
residence is in the designated parcels.
(3) The sales factor is a fraction, the numerator of
which is the total sales of the qualified taxpayer in the
designated parcels during the tax period and the denominator
of which is the total sales of the taxpayer in this
Commonwealth during the tax period.
(i) Sales of tangible personal property are in the
designated parcels if the property is delivered or
shipped to a purchaser that takes possession within the
designated parcels regardless of the F.O.B. point or
other conditions of the sale.
(ii) Sales other than sales of tangible personal
property are in the designated parcels if:
(A) the income-producing activity is performed
in the designated parcels; or
(B) the income-producing activity is performed
both within and without the designated parcels and a
greater proportion of the income-producing activity
is performed in the designated parcels than in any
other location, based on costs of performance.
(j) Transfer.--Within 10 days of receiving the certification
from the Department of Revenue, the Office of the Budget shall
direct the State Treasurer to transfer the amount of certified
qualified tax from the General Fund to each special fund
established for the benefit of a qualified authority under
section 302-A.
(k) State Treasurer.--Within 10 days of receiving direction
under subsection (j), the State Treasurer shall pay into each
special fund established under section 302-A the amount directed
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to the respective authority for use only as provided under
section 303-A(a).
Section 301.1-A. Perfluorinated Compound Remediation Program.
(a) Establishment.--The Perfluorinated Compound Remediation
Program is established.
(b) Purpose.--In addition to any other program of the
authority, from funds available to the authority, the authority
shall provide grants under the Perfluorinated Compound
Remediation Program for the costs of remediation relating to the
presence of perfluorinated compounds in drinking water which are
not related to the presence of a qualified former military
installation.
(c) Guidelines.--The authority shall establish guidelines
for the Perfluorinated Compound Remediation Program.
(d) Eligible applicants.--A municipality with perfluorinated
compounds present in the municipality's drinking water may apply
for a grant under the Perfluorinated Compound Remediation
Program.
Section 302-A. Special funds.
(a) Notice.--Following the approval of an application under
section 301-A, a qualified authority shall notify the State
Treasurer and create a special fund to be known as the Military
Installation Remediation Fund .
(b) Establishment.--Upon receipt of notice under subsection
(a), the State Treasurer shall establish for each qualified
former military installation a restricted account within the
special fund for the benefit of the qualified authority.
Interest income derived from the investment of money in a
restricted account shall be credited by the State Treasury to
the restricted account.
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Section 303-A. Restrictions.
(a) Use.--
(1) Except as provided under paragraph (2) and (3),
money transferred under section 301-A shall be used for the
operational costs for the qualified authority.
(2) Money transferred under section 301-A in excess of
the amount used under paragraph (1), to the extent such funds
are available, shall be used to offset a surcharge applied to
customers of a water provider relating to the costs of
remediation relating to perfluorinated compounds present in
drinking water related to the presence of a former military
installation. Money under this paragraph shall be allocated
in proportion to the amount of local effort under subsection
(c).
(3) Money transferred under section 301-A in excess of
the amount used under paragraphs (1) and (2), to the extent
such funds are available, may be used for any of the
following:
(i) The transportation infrastructure and economic
development costs within a qualified municipality to
encourage redevelopment of the qualified former military
installation.
(ii) The payment of debt service on bonds issued or
refinanced for the acquisition, development,
construction, including related infrastructure and site
preparation, reconstruction, renovation or refinancing of
a project under subparagraph (i).
(b) Applications.--The qualified authority shall establish
an application process for allocations under subsection (a)(2).
(c) Local effort.--A municipality or municipal government
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may make available to the qualified authority an amount of money
which may be used for allocations under subsection (a)(2). A
contribution under this subsection shall be made no later than
September 1, 2019, April 15, 2020 and April 15 each year
thereafter.
(d) Limitations on transfers.--Money transferred to a
special fund under section 301-A may not exceed 500% of the
local taxes and additional money designated and transferred to
the qualified authority by a municipality or municipal authority
during the year.
(e) Excess money.--
(1) If the amount of money transferred to a fund in any
one calendar year exceeds the money utilized under this
section in that calendar year, the qualified authority shall
submit by April 15 following the end of the calendar year the
excess money to the State Treasurer for deposit into the
General Fund.
(2) At the time of submission to the State Treasurer,
the contracting authority shall submit to the State
Treasurer, the Office of the Budget and the Department of
Revenue a detailed accounting of the calculation resulting in
the excess money.
Section 304-A. Duration.
An application approved under section 301-A(a) shall be in
effect for a period no later than 30 years from the effective
date of this section.
Section 305-A. Qualified authority.
(a) Composition.--Notwithstanding 53 Pa.C.S. ยง 5610(a)
(relating to governing body), the governing body of a qualified
authority shall be composed of the following members:
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(1) One member subject to the following:
(i) If a member of the Senate has a permanent
residence in the qualified municipality, the member shall
be a member of the governing body.
(ii) If subparagraph (i) does not apply, the
President pro tempore of the Senate shall appoint a
permanent resident of the qualified municipality to the
governing body.
(2) One member subject to the following:
(i) If a member of the House of Representatives has
a permanent residence in the qualified municipality, the
member shall be a member of the governing body.
(ii) If subparagraph (i) does not apply, the Speaker
of the House of Representatives shall appoint a permanent
resident of the qualified municipality to the governing
body.
(3) One permanent resident of the qualified municipality
appointed by a school district which has within its
geographic bounds a qualified former military installation.
(4) One permanent resident of the qualified municipality
appointed by an authority established to redevelop the
qualified former military installation.
(5) One permanent resident of the qualified municipality
appointed by the governing body of the qualified
municipality.
(b) Terms.--The following shall apply:
(1) Members appointed under subsection (a)(1), (2) and
(4) shall serve for a term of five years.
(2) All other members shall serve for a term of four
years.
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Section 4. This act shall take effect immediately.
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