PRINTER'S NO. 1649
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1522
Session of
2021
INTRODUCED BY LONGIETTI, FREEMAN, HILL-EVANS, A. DAVIS,
T. DAVIS, CIRESI AND SAINATO, JUNE 1, 2021
REFERRED TO COMMITTEE ON COMMERCE, JUNE 1, 2021
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 definitions and for establishment or
designation 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," "contracting
authority" and "pilot zone" in section 1802-C of the act of
March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971, are amended to read:
Section 1802-C. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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* * *
"City." A city of the second class A or third class or a
home rule municipality [with a population of at least 20,000
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, and a city that has had a receiver appointed under
Chapter 7 of the Municipalities Financial Recovery Act.
* * *
"Contracting authority." A new or existing authority
established or designated by a city, municipality or [home rule]
county to designate and administer zones. 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
Class County Convention Center Authority Act, or under
Article XXIII(n) or (o) of the act of August 9, 1955
(P.L.323, No.130), known as the County Code.
(3) An authority established by a contiguous
municipality under 53 Pa.C.S. Ch. 56 for the purposes of this
act.
* * *
"Pilot zone." An area of not more than 100 acres designated
by the contracting authority following application and approval
by the Department of Community and Economic Development, the
office and the department which will provide economic
development and job creation within one or more municipalities,
with a total population of at least [7,000] 2,000 based on the
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most recent Federal decennial census.
* * *
Section 2. Section 1803-C of the act is amended to read:
Section 1803-C. Establishment or designation of contracting
authority.
(a) Authorization.--Except as set forth in subsection (b), a
city, municipality or home rule county 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 1803.2-C. Number of authorized zones.
The department shall authorize 15 zones as follows:
(1) four in cities with populations above 60,000 based
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
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category if the city otherwise meets the requirements of this
article.
Section 4. Section 1804-C(c) of the act 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 initial city revitalization and
improvement zones and one pilot zone may be approved.
Beginning in 2022, 15 initial city revitalization and
improvement 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. Beginning in 2024,
applications for two additional zones may be approved each
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 7 of the Municipalities Financial Recovery Act.
(4) Following the effective date of this paragraph, the
Department of Community and Economic Development, the office
and the department may approve not more than five pilot
zones.
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(5) 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.
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