Bill Text: PA SB1287 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for legislative findings and for definitions; providing for application limited to areas of extreme urban blight, for monitoring data and for periodic audit; further providing for criteria for authorization of keystone opportunity zone; providing for duties of department; and further providing for reporting.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2010-04-05 - Referred to FINANCE [SB1287 Detail]

Download: Pennsylvania-2009-SB1287-Introduced.html

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PRINTER'S NO. 1820
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1287 Session of2010
INTRODUCED BY ARGALL, EICHELBERGER, RAFFERTY, MENSCH AND WARD, APRIL 5, 2010
REFERRED TO FINANCE, APRIL 5, 2010
AN ACT
Amending the act of October 6, 1998 (P.L.705, No.92), entitled,
as amended, "An act providing for the creation of keystone
opportunity zones and keystone opportunity expansion zones to
foster economic opportunities in this Commonwealth, to
facilitate economic development, stimulate industrial,
commercial and residential improvements and prevent physical
and infrastructure deterioration of geographic areas within
this Commonwealth; authorizing expenditures; providing tax
exemptions, tax deductions, tax abatements and tax credits;
creating additional obligations of the Commonwealth and local
governmental units; and prescribing powers and duties of
certain State and local departments, agencies and officials,"
further providing for legislative findings and for
definitions; providing for application limited to areas of
extreme urban blight, for monitoring data and for periodic
audit; further providing for criteria for authorization of
keystone opportunity zone; providing for duties of
department; and further providing for reporting.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 102 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, amended December 20, 2000 (P.L.841,
No.119), is amended to read:
Section 102. Legislative findings.
(1) There exist in this Commonwealth areas of economic
distress characterized by high unemployment, low investment
of new capital, inadequate dwelling conditions, blighted
conditions, underutilized, obsolete or abandoned industrial,
commercial and residential structures and deteriorating tax
bases.
(2) These areas require coordinated efforts by private
and public entities to restore prosperity and enable the
areas to make significant contributions to the economic and
social life of this Commonwealth.
(3) Long-term economic viability of these areas requires
the cooperative involvement of residents, businesses, State
and local elected officials and community organizations and
requires additional personnel for rural areas lacking good
economic development prospects. It is in the best interest of
the Commonwealth to assist and encourage the creation of
keystone opportunity zones and keystone opportunity expansion
zones and to provide temporary relief from certain taxes
within the zones to accomplish the purposes of this act.
Section 2. The definition of "business" in section 103 of
the act, amended December 20, 2000 (P.L.841, No.119), is amended
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:
"Business." An association, partnership, corporation, sole
proprietorship, limited liability company or employer other than
a provider of professional services, including, but not limited
to, legal or accounting services.
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* * *
Section 3. The act is amended by adding sections to read:
Section 301.7. Application limited to areas of extreme urban
blight.
(a) General rule.--Notwithstanding any other provision of
this act, keystone opportunity zones may be established after
the effective date of this section only in areas of extreme
urban blight.
(b) Definition.--For purposes of this section, "extreme
urban blight" shall mean a state of deterioration or decay in
property so severe as to cause the property to be essentially
worthless or commercially undesirable if not for the special
benefits granted under the provisions of this act.
Section 301.8. Monitoring data.
In addition to any other requirements of this act, the
department shall keep track of all of the following:
(1) Verifiable job creation and job retention data,
including net overall employment figures.
(2) Information on the types of jobs created and average
hourly wages.
(3) Number of years in the program.
(4) Annual, unduplicated public and private capital
investment amounts.
(5) Status of program participant, including whether the
participant is a new business start-up, relocation from
within Pennsylvania, move-in from out-of-State or expansion
of existing business.
(6) Business type and description, including SIC code.
(7) Program cost at both the State and local levels,
including an estimate of county, local and school taxes
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foregone.
(8) Types and amounts of other economic development
assistance received from the department.
(9) Documentation of progress concerning the applicant's
compliance, or failure to comply, with payment of local taxes
and with code requirements.
(10) Documentation that proper participants identified
as relocations meet the increased full-time employment,
increased capital investment or lease agreement requirements
of this act.
Section 301.9. Periodic audit.
The keystone opportunity zone program shall undergo an
independent audit every two years. The first audit shall be
concluded within one year of the effective date of this section.
Section 4. Section 304(a) of the act, amended December 9,
2002 (P.L.1727, No.217), is amended to read:
Section 304. Criteria for authorization of keystone opportunity
zone.
(a) Specific criteria.--In order to qualify for
authorization under this act, the proposed keystone opportunity
zone or proposed keystone opportunity expansion zone shall meet
at least [two] six of the following criteria:
(1) At least 20% of the population is below the poverty
level.
(2) The unemployment rate is 1.25 times the Statewide
average.
(3) At least 20% of all real property within a five-mile
radius of the proposed keystone opportunity zone, proposed
keystone opportunity expansion zone, proposed subzone or
proposed expansion subzone in a nonurban area is deteriorated
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or underutilized.
(4) At least 20% of all real property within a one-mile
radius of the proposed keystone opportunity zone, proposed
keystone opportunity expansion zone, proposed subzone or
proposed expansion subzone in an urban area is deteriorated
or underutilized.
(5) At least 20% of all occupied housing within a two-
mile radius of the proposed keystone opportunity zone,
proposed keystone opportunity expansion zone, proposed
subzone or proposed expansion subzone in a nonurban area is
deteriorated.
(6) At least 20% of all occupied housing within a one-
mile radius of the proposed keystone opportunity zone,
proposed keystone opportunity expansion zone, proposed
subzone or proposed expansion subzone in an urban area is
deteriorated.
(7) In an urban area, the median family income is 80% or
less of the urban median family income for that metropolitan
statistical area.
(8) In an area other than an urban area, the median
family income is 80% or less of the Statewide nonurban median
family income.
(9) The population loss exceeds 10% in an area that
includes the proposed keystone opportunity zone or proposed
keystone opportunity expansion zone and its surrounding area
but is not larger than the county or counties in which the
proposed keystone opportunity zone or proposed keystone
opportunity expansion zone is located, based on census data
for the period between 1980 and 1990 or census estimates
since 1990 establishing a pattern of population loss.
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(10) The political subdivision in which the proposed
keystone opportunity zone or proposed keystone opportunity
expansion zone is located has experienced a sudden and/or
severe job loss.
(11) At least 33% of the real property in a proposed
keystone opportunity zone or proposed keystone opportunity
expansion zone in a nonurban area would otherwise remain
underdeveloped or nonperforming due to physical
characteristics of the real property.
(12) The area has substantial real property with
adequate infrastructure and energy to support new or expanded
development.
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Section 5. The act is amended by adding a section to read:
Section 1101.1. Duties of department.
The department shall provide, upon request, the appropriate
staff to rural areas to implement keystone opportunity zones.
Section 6. Section 1102 of the act, amended December 20,
2000 (P.L.841, No.119), is amended to read:
Section 1102. Reporting.
The department shall report to the General Assembly on the
economic effects of this act in each keystone opportunity zone
or keystone opportunity expansion zone every [four years] year.
Section 7. The amendment of the definition of "business" in
section 103 of the act shall apply prospectively, beginning on
the effective date of this section, and shall neither be
construed to nullify a tax benefit obtained prior to the
effective date of this section nor result in any change to the
tax status of a business that qualified for special tax benefits
prior to the amendment of the definition of "business" in
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section 103.
Section 8. This act shall take effect in 60 days.
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