SB 1014 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in city revitalization and improvement zones, further providing for definitions, for establishment or designation of contracting authority, for approval, for transfers, for restrictions, for transfer of property and for review.

PRIOR PRINTER'S NO.

1295 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

10141356 2023THE INTRODUCEDGENERAL BYASSEMBLY LAUGHLIN,OF PENNYCUICKPENNSYLVANIA ANDSENATE ARGALL,BILL DECEMBERSession 18, 2023 REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, DECEMBER 18, 2023 AN ACT Amending the act of MarchNo. 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;

1014 2023 INTRODUCED BY LAUGHLIN, PENNYCUICK AND ARGALL, DECEMBER 18, 2023 SENATOR GEBHARD, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, AS AMENDED, FEBRUARY 5, 2024 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;

(3) Sales and use tax, only to the extent the tax is related to the activity of a qualified business within the 20230SB1014PN129520230SB1014PN1356 - 2 - zone.

20230SB1014PN129520230SB1014PN1356 - 3 - * * * Section 2.

(a)[(a) Authorization.--[Except as set forth in subsection (b), <-- a] A city, municipality or [home rule county] municipalities may establish or designate a contracting authority to designate a zone under this article.

For the purposes of appointing a <-- qualified operating board with diverse skill sets in the areas of government, law, finance, banking, economic development, community development, planning, project management, project engineering, real estate development and environmental remediation, the operating board of the contracting authority shall include residents of the zone, business owners located in the zone and residents, business owners and business representatives from the city, municipality or municipalities that created the zone.

20230SB1014PN129520230SB1014PN1356 - 4 - [(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 home rule county may not establish a contracting authority under this article.

Section 1804-C(c) and (d) of the act are amended <-- to read:

SECTION 3.

SECTION 1804-C(D) OF THE ACT IS AMENDED AND THE <-- SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

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

(2) Up to two zones for one or more cities or municipalities with a population of 20,000 or more based on 20230SB1014PN1356 - 5 - the most recent Federal decennial census.

* * * 20230SB1014PN1295(C.2) -SINGLE 5APPROVAL.--AN -APPLICATION (d)FOR [Time]ONE Schedule.--TheZONE DepartmentLOCATED of<-- CommunityIN andA EconomicCITY DevelopmentOF shallTHE establishTHIRD [andCLASS publish]WITH applicationA deadlinesPOPULATION [inBETWEEN the94,000 PennsylvaniaAND Bulletin95,000 and]BASED andON publishTHE theMOST deadlinesRECENT onDECENNIAL itsCENSUS publiclyAND accessibleTHAT InternetIS website.LOCATED IN A HOME RULE COUNTY OF THE THIRD CLASS SHALL BE APPROVED IN THE FIRST YEAR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION.

THE FOLLOWING SHALL APPLY:

(1) A BOARD OF DIRECTORS FOR THE ZONE APPROVED UNDER THIS SUBSECTION SHALL CONSIST OF NINE MEMBERS WITH THREE MEMBERS BEING APPOINTED BY EACH OF THE FOLLOWING:

(I) THE MAYOR OF THE CITY, INCORPORATED TOWN OR BOROUGH OR THE BOARD OF COMMISSIONERS OF A TOWNSHIP.

(II) ANY MEMBERS OF THE SENATE REPRESENTING THE CITY, MUNICIPALITY OR MUNICIPALITIES.

(III) ANY MEMBERS OF THE HOUSE OF REPRESENTATIVES REPRESENTING THE CITY, MUNICIPALITY OR MUNICIPALITIES.

(2) FOR THE PURPOSES OF APPOINTING A QUALIFIED BOARD OF DIRECTORS WITH DIVERSE SKILL SETS IN THE AREAS OF GOVERNMENT, LAW, FINANCE, BANKING, ECONOMIC DEVELOPMENT, COMMUNITY DEVELOPMENT, PLANNING, PROJECT MANAGEMENT, PROJECT ENGINEERING, REAL ESTATE DEVELOPMENT AND ENVIRONMENTAL REMEDIATION, THE BOARD OF DIRECTORS OF THE CONTRACTING AUTHORITY SHALL INCLUDE RESIDENTS OF THE ZONE, BUSINESS OWNERS LOCATED IN THE ZONE AND RESIDENTS, BUSINESS OWNERS AND BUSINESS REPRESENTATIVES FROM THE CITY, MUNICIPALITY OR MUNICIPALITIES THAT CREATED THE ZONE.

(d) [Time] Schedule.--The Department of Community and Economic Development shall establish [and publish] application deadlines [in the Pennsylvania Bulletin and] and publish the 20230SB1014PN1356 - 6 - deadlines on its publicly accessible Internet website.

The office shall direct the State Treasurer to 20230SB1014PN1295 - 6 - transfer the amount verified under paragraph (2) from the General Fund to the restricted account for the use of the contracting authority to make payments on the bonds issued 20230SB1014PN1356 - 7 - under section 1813-C(a)(1).

Section 1813-C(a)(3) and (c)(1) of the act are amended and the subsections are amended by adding paragraphs to 20230SB1014PN1295 - 7 - read:

(a) Utilization.--Money transferred under section 1812-C may 20230SB1014PN1356 - 8 - only be utilized for the following:

For the sixth calendar year and each calendar year thereafter, if the amount of money transferred to the fund under sections 1811-C(c) and 1812-C in any one calendar year exceeds the money utilized, budgeted or appropriated by 20230SB1014PN1295 - 8 - official resolution of the contracting authority under this section in that calendar year, the contracting authority shall submit by April 15 following the end of the calendar 20230SB1014PN1356 - 9 - year any money not utilized, budgeted or appropriated by official resolution of the contracting authority to the State Treasurer for deposit into the General Fund.

Additional acreage, not to exceed the acreage transferred out of the zone, 20230SB1014PN1295 - 9 - may be added to the zone.

* * * (a.3) Returned property.--A parcel or parcels in a zone where zone fund dollars were expended upon the parcel or parcels or where a facility has been constructed, reconstructed or renovated using money under this article may be transferred out of the zone for the purpose of returning a parcel or parcels to State and local tax rolls prior to the duration established under section 1815-C.

* * * (a.3) Returned property.--A parcel or parcels in a zone 20230SB1014PN1356 - 10 - where zone fund dollars were expended upon the parcel or parcels or where a facility has been constructed, reconstructed or renovated using money under this article may be transferred out of the zone for the purpose of returning a parcel or parcels to State and local tax rolls prior to the duration established under section 1815-C.

Additional acreage, not to exceed the acreage transferred out of the zone, may be added to the zone.

20230SB1014PN1295 - 10 - (a) Department of Community and Economic Development.--By December 31, 2021, and annually each March 31 thereafter, the Department of Community and Economic Development shall, in 20230SB1014PN1356 - 11 - cooperation with the office and the department, complete a review and analysis of all active zones.

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