Regular Session 2023-2024 House Bill 0899 P.N. 0881

PRINTER'S NO. 881

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

899

Session of

2023

INTRODUCED BY GUZMAN, MADDEN, ROZZI, PIELLI, KAZEEM, CEPEDA-

FREYTIZ, HILL-EVANS, SANCHEZ, KINSEY, JAMES, BIZZARRO,

DELLOSO AND DONAHUE, APRIL 12, 2023

REFERRED TO COMMITTEE ON FINANCE, APRIL 12, 2023

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," providing for expanded neighborhood improvement

zones.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971, is amended by adding an article to

read:

ARTICLE XIX-B.1

EXPANDED NEIGHBORHOOD IMPROVEMENT ZONES

Section 1901-B.1. Scope of article.

This article relates to expanded neighborhood improvement

zones.

Section 1902-B.1. 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:

"Affordable housing." As follows:

(1) Housing in which the occupant is paying no more than

30% of gross income for housing costs, including utilities.

(2) Affordable housing units must comprise at least 30%

of the units in an affordable housing building.

"Bonds." Includes notes, instruments, refunding notes and

bonds and other evidences of indebtedness or obligations.

"Capital Facilities Debt Enabling Act." The act of February

9, 1999 (P.L.1, No.1), known as the Capital Facilities Debt

Enabling Act.

"City." A city of the third class or a city of the second

class A, on the date of the designation of an expanded

neighborhood improvement zone by the contracting authority.

"Contracting authority." An authority created under 53

Pa.C.S. Ch. 56 (relating to municipal authorities) for the

purpose of designating an expanded neighborhood improvement zone

and constructing a facility or other authority created under the

laws of this Commonwealth which is eligible to apply for and

receive redevelopment assistance capital grants under Chapter 3

of the Capital Facilities Debt Enabling Act.

"Department." The Department of Revenue of the Commonwealth.

"Earned income tax." A tax or portion of a tax imposed on

earned income within an expanded neighborhood improvement zone

under the act of December 31, 1965 (P.L.1257, No.511), known as

The Local Tax Enabling Act, which a city, or a school district

contained entirely within the boundaries of or coterminous with

the city, is entitled to receive.

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"Expanded neighborhood improvement zone." An expanded

neighborhood improvement zone designated by the contracting

authority for the purposes of an expanded neighborhood

improvement and development within a city.

"Facility." A structure or complex of structures to be used

for residential, affordable housing, commercial, sports

exhibition, hospitality, conference, retail, community, office,

recreational or mixed-use purposes.

"Fund." The Expanded Neighborhood Improvement Zone Fund

established under section 1904-B.1.

"Master list." A list maintained by the contracting

authority that includes:

(1) The legal business names, principal business

addresses within an expanded neighborhood improvement zone

and parcel numbers of all qualified businesses which are

required to file reports for the calendar year under section

1904-B.1(b)(1).

(2) The name, telephone number and email address of the

person employed by the qualified business who is primarily

responsible for completing reports for the qualified business

required under section 1904-B.1(b).

"Operating organization." An entity that contracts directly

with the contracting authority to lease or operate a facility.

"Professional sports organization." A sole proprietorship,

corporation, limited liability company, partnership or

association that meets all of the following:

(1) Owns a professional sports franchise.

( 2) Conducts professional athletic events of the sports

franchise at a facility.

"Qualified business." An entity authorized to conduct

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business in this Commonwealth which is located or partially

located within an expanded neighborhood improvement zone and is

engaged in the active conduct of a trade or business for the

taxable year. An agent, broker or representative of a business

shall not be considered to be in the active conduct of trade or

business for the business.

Section 1903-B.1. Facility.

A contracting authority may:

(1) Designate an expanded neighborhood improvement zone

of not greater than 130 acres in which a facility may be

constructed.

(2) Borrow money for the purpose of:

(i) Improvement and development within the expanded

neighborhood improvement zone.

(ii) Construction of a facility within the expanded

neighborhood improvement zone.

Section 1904-B.1. Expanded Neighborhood Improvement Zone Fund

and accounts.

(a) Fund and accounts .--

(1) Within 10 days after a contracting authority makes a

designation of an expanded neighborhood improvement zone, the

contracting authority shall notify the State Treasurer of the

designation.

(2) Upon the notice under paragraph (1), the State

Treasurer shall establish a fund to be known as the Expanded

Neighborhood Improvement Zone Fund, which shall contain an

account for each contracting authority. Interest income

derived from investment of the money in the fund shall be

credited by the Treasury Department to the fund for each

account of the contracting authority.

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(b) Certification.--

(1) Within 31 days of the end of each calendar year,

each qualified business shall file a report with the

department which complies with all of the following:

(i) States each State tax, calculated in accordance

with subsection (e), which was paid by the qualified

business in the prior calendar year.

(ii) Lists each State tax refund which complies with

all of the following:

(A) The refund is for a tax:

(I) specified in subsection (e); and

(II) certified as paid under subsection (e).

(B) The refund was received in the prior

calendar year by the qualified business.

(iii) Is in a form and manner required by the

department.

(2) In addition to any penalties imposed under this act

for failure to timely pay State taxes, the following apply:

(i) Failure to file a timely and complete report

under paragraph (1) shall result in the imposition of a

penalty of 10% of all State taxes, calculated in

accordance with subsection (e), which were payable by the

qualified business in the prior calendar year. The

following apply:

(A) The penalty imposed shall not be less than

$1,000.

(B) When the penalty is received, the money

shall be transferred from the General Fund to the

account of the contracting authority that designated

the expanded neighborhood improvement zone in which

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the qualifying business is located.

under paragraph (4) shall result in the imposition of

a penalty of 10% of all local taxes, calculated in

accordance with subsection (e) by a contracting

authority which were payable by the qualified

business in the prior calendar year. The penalty

imposed under this clause shall not be less than

$250.

(ii) Failure to report a qualified business

operating in the facility to the contracting authority by

an operating organization in accordance with subsection

(d)(2) shall result in the imposition of a penalty by the

contracting authority upon the operating organization, of

100% of the taxes which would be certified under

subsection (e) for each qualified business which is not

reported to the contracting authority or $1,000,

whichever is greater. The following apply:

(A) The contracting authority may not waive or

abate any penalties imposed under this subparagraph.

(B) When the penalty is received, the money

shall be transferred from the General Fund to the

account of the contracting authority that designated

the expanded neighborhood improvement zone in which

the qualifying business is located.

(iii) Failure to file a timely and complete report

under paragraph (1) by a qualified business engaged in

the active conduct of a trade or business during the

calendar year in the facility shall result in the

imposition of a penalty by the contracting authority upon

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the operating organization equal to 100% of the taxes

paid which would be certified under subsection (e) for

each qualified business which fails to file a timely and

complete report. The following apply:

(A) The penalty imposed shall not be less than

$1,000.

(B) If the qualified business is properly

included on the master list provided under subsection

(d), the contracting authority may waive or abate

penalties imposed under this subparagraph equal to

the total taxes paid by the qualified business which

are certified under subsection (e).

shall be deposited into the account of the

contracting authority that designated the expanded

neighborhood improvement zone in which the qualifying

business is located.

(3) Except as otherwise provided under paragraph (2)(ii)

and (iii), a penalty imposed under this subsection shall be

imposed, assessed and collected by the department under the

provisions for imposing, assessing and collecting penalties

under Article II. When the penalty is received, the money

shall be transferred from the General Fund to the account of

the contracting authority that designated the expanded

neighborhood improvement zone in which the qualified business

is located.

( 4) Within 31 days of the end of each calendar year,

each qualified business shall file a report with the local

taxing authority reporting all local taxes, calculated in

accordance with subsection (e), which were paid by the

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qualified business in the prior calendar year. The following

apply:

(i) The report from each qualified business shall

also list any local tax refunds of taxes specified in

subsection (e) received in the prior calendar year by the

qualified business and any refunds related to the local

taxes as calculated in accordance with subsection (e).

(ii) The report shall be in a form and manner

required by the department.

(1) Subject to paragraphs (3) and (4), within 15 days of

the receipt of a penalty or report from the qualified

business, the State Treasurer shall:

(i) Determine the amount of money in the fund which

is attributable to each expanded neighborhood improvement

zone.

(ii) T ransfer the amount of money in the fund for

each contracting authority for which money was deposited.

(2) An entity collecting a local tax that is in

possession of money attributable to a local tax not included

in the amount to be calculated and certified under subsection

(e) shall promptly remit that money to the local taxing

authority entitled to receive the money.

(3) Transfer and repayment is subject to the following:

(i) Before making the transfer under paragraph (1),

the State Treasurer shall:

(A) Determine the amount of money deposited into

the fund which was attributable to earned income

taxes that a contracting authority is not entitled to

receive under subsection (e).

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( B) Deduct the amount of money determined under

clause (A) from the money to be transferred under

paragraph (1).

(ii) If any amount of the money under subparagraph

(i)(A) has already been transferred to a contracting

authority, the State Treasurer shall take action as

necessary to recover the money from the contracting

authority, including by way of setoff from money to be

paid to the contracting authority under paragraph (1).

The contracting authority shall comply with a demand made

by the State Treasurer for the repayment of money under

this paragraph.

(4) As to the money deducted or recovered under

paragraph (3), the State Treasurer shall:

(i) Identify the local taxing authorities that were

entitled to receive the money which was deposited into

the fund.

(ii) D etermine the amount to which each local taxing

authority was entitled.

(iii) Remit the amount under subparagraph (ii) to

the proper local taxing authority.

(d) Master list.--

(1) Except as provided under paragraph (2), within five

days of the end of each month, the following shall be

provided to the contracting authority by or on behalf of the

qualified business for purposes of inclusion on the master

list:

(i) The legal business names, business addresses

within the expanded neighborhood improvement zone and

parcel numbers of all qualified businesses engaged in the

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active conduct of a trade or business during the previous

month.

(ii) The name, telephone number and email address of

the person employed by the qualified business who is

primarily responsible for completing reports for the

qualified business required under subsection (b).

(2) For purposes of inclusion on the master list, within

five days of the end of each month during a calendar year, an

operating organization shall provide to the contracting

authority the legal business names and business addresses

within the expanded neighborhood improvement zone of all

qualified businesses engaged in the active conduct of a trade

or business in the facility during the previous month along

with the name, telephone number and email address of the

individual employed by the qualified business who is

primarily responsible for completing the reports for the

qualified business required under subsection (b).

( 3) Within 10 days of the end of each calendar year, the

contracting authority shall provide to the department the

master list. The department may not certify any taxes paid

directly or indirectly by a qualified business as provided

under subsection (e) during the prior calendar year when the

qualified business is not included on the master list.

(4) A contracting authority shall impose penalties for

failure to comply with this section.

(e) Calculation.--

(1) Within 60 days of the end of each calendar year, the

department shall certify separately for each expanded

neighborhood improvement zone the amounts of State taxes

paid, less any State tax refunds received, by the qualified

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businesses filing reports under subsection (b)(1) to the

Office of the Budget.

(2) Beginning in the first full calendar year following

the designation of an expanded neighborhood improvement zone

and in each calendar year thereafter, by November 1, the

department shall calculate, in accordance with this

subsection, amounts of State taxes actually received by the

Commonwealth from each qualified business that filed a report

under subsection (b)(1) in the prior calendar year, and the

department shall certify the amounts received to the Office

of the Budget.

(3) The department shall include reports filed five

months after the due date under subsection (b)(1) in the

November 1 certification.

(4) An entity collecting a local tax within the expanded

neighborhood improvement zone shall, within 31 days of the

end of each calendar year, submit all of the local taxes that

are to be calculated under this subsection and which were

paid in the prior calendar year, less any certified local tax

refunds received by a qualified business in the prior

calendar year, to the State Treasurer to be deposited under

subsection (g).

(5) This subsection shall not apply to any taxes subject

to a valid pledge or security interest entered into in order

to secure debt service on bonds if the pledge or security

interest was entered into prior to the designation of an

expanded neighborhood improvement zone, and is still in

effect.

(6) The following shall be the amounts calculated and

certified separately for each expanded neighborhood

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improvement zone:

(i) An amount equal to all corporate net income tax,

capital stock and franchise tax, personal income tax,

business privilege tax, business privilege licensing fees

and earned income tax related to the ownership and

operation of a professional sports organization

conducting professional athletic events at the facility.

(ii) An amount equal to all of the following:

(A) All personal income tax, earned income tax

and local services tax withheld from employees by a

professional sports organization conducting

professional athletic events at the facility.

(B) All personal income tax, earned income tax

and local services tax withheld from the employees of

any provider of events at or services to or any

operator of an enterprise in the facility.

and local services tax to which the Commonwealth

would be entitled from performers or other

participants, including visiting teams, at an event

or activity at the facility.

(iii) An amount equal to all sales and use tax

related to the operation of the professional sports

organization and the facility and enterprises developed

as part of the facility. This subparagraph shall include

sales and use tax paid by a provider of events or

activities at or services to the facility, including

sales and use tax paid by vendors and concessionaires and

contractors at the facility.

(iv) An amount equal to all tax paid to the

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Commonwealth related to the sale of any liquor, wine or

malt or brewed beverage in the facility.

(v) The amount paid by the professional sports

organization or by any provider of events or activities

at or services to the facility of any new tax enacted by

the Commonwealth after the effective date of this

subparagraph.

(vi) An amount equal to all personal income tax,

earned income tax and local services tax withheld from

personnel by the professional sports organization or by a

contractor or other entity involved in the construction

of the facility.

(vii) An amount equal to all sales and use tax paid

on materials and other construction costs, whether

withheld or paid by the professional sports organization

or other entity, directly related to the construction of

the facility.

(viii) An amount equal to all of the following:

(A) All corporate net income tax, capital stock

and franchise tax, personal income tax, business

privilege tax, business privilege licensing fees and

earned income tax related to the ownership and

operation of any qualified business within the

expanded neighborhood improvement zone.

(B) All personal income tax, earned income tax

and local services tax withheld from employees by a

qualified business within the expanded neighborhood

improvement zone.

and local services tax withheld from the employees of

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a qualified business that provides events, activities

or services in the expanded neighborhood improvement

zone.

(D) All personal income tax, earned income tax

and local services tax to which the Commonwealth

would be entitled from performers or other

participants at an event or activity in the expanded

neighborhood improvement zone.

(E) All sales and use tax related to the

operation of a qualified business within the expanded

neighborhood improvement zone. This clause shall

include sales and use tax paid by a qualified

business that provides events, activities or services

in the expanded neighborhood improvement zone.

(F) All tax paid by a qualified business to the

Commonwealth related to the sale of any liquor, wine

or malt or brewed beverage within the expanded

neighborhood improvement zone.

(G) The amount paid by a qualified business

within the expanded neighborhood improvement zone of

any new tax enacted by the Commonwealth following

October 9, 2009.

(H) All personal income tax, earned income tax

and local services tax withheld from personnel by a

qualified business involved in the improvement,

development or construction of the expanded

neighborhood improvement zone.

(I) All sales and use tax paid on materials and

other construction costs, whether withheld or paid by

the professional sports organization or other

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qualified business, directly related to the

improvement, development or construction of the

expanded neighborhood improvement zone.

(J) An amount equal to any amusement tax paid by

a qualified business operating in the expanded

neighborhood improvement zone. A political

subdivision or other entity authorized to collect

amusement taxes may not impose or increase the rate

of any tax on admissions to places of entertainment,

exhibition or amusement or upon athletic events in

the expanded neighborhood improvement zone which are

not in effect on the date the expanded neighborhood

improvement zone is designated by the contracting

authority.

(ix) Except for a tax levied against real property

and notwithstanding any other provision of law, an amount

equal to any tax imposed by the Commonwealth or any of

the Commonwealth's political subdivisions on a qualified

business engaged in an activity within the expanded

neighborhood improvement zone or directly or indirectly

on any sale or purchase of goods or services, where the

point of sale or purchase is within the expanded

neighborhood improvement zone.

(f) State tax liability apportionment.--For the purpose of

making the calculations under subsection (e), the State tax

liability of a qualified business shall be apportioned to the

expanded neighborhood improvement zone by multiplying the

Pennsylvania 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

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accordance with the following:

(1) The property factor is a fraction, the numerator of

which is the average value of the taxpayer's real and

tangible personal property owned or rented and used in the

expanded neighborhood improvement zone during the tax period

and the denominator of which is the average value of all the

taxpayer's 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 expanded

neighborhood improvement zone during the tax period by

the 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 expanded

neighborhood improvement zone, if:

(A) the person's service is performed entirely

within the expanded neighborhood improvement zone;

(B) the person's service is performed both

within and outside the expanded neighborhood

improvement zone, but the service performed outside

the expanded neighborhood improvement zone is

incidental to the person's service within the

expanded neighborhood improvement zone; or

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expanded neighborhood improvement zone 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 expanded neighborhood

improvement zone, 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

of the service is performed, but the person's

residence is in the expanded neighborhood improvement

zone.

(3) The sales factor is a fraction, the numerator of

which is the total sales of the taxpayer in the expanded

neighborhood improvement zone during the tax period and the

denominator of which is the total sales of the taxpayer in

this Commonwealth during the tax period. The following apply:

(i) Sales of tangible personal property are in the

expanded neighborhood improvement zone if the property is

delivered or shipped to a purchaser that takes possession

within the expanded neighborhood improvement zone

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 expanded neighborhood improvement

zone, if:

(A) the income-producing activity is performed

in the expanded neighborhood improvement zone; or

(B) the income-producing activity is performed

both within and outside the expanded neighborhood

improvement zone and a greater proportion of the

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income-producing activity is performed in the

expanded neighborhood improvement zone than in any

other location, based on costs of performance.

(g) Transfers.--

(1) Within 10 days of receiving certification under

subsection (e), the Secretary of the Budget shall direct the

State Treasurer to, notwithstanding any other provision of

law, transfer the amounts certified under subsection (e) for

each expanded neighborhood improvement zone from the General

Fund to the account of the contracting authority that

established the expanded neighborhood improvement zone.

(2) Beginning in the second calendar year following the

designation of an expanded neighborhood improvement zone and

in each year thereafter, the amounts certified by the

Secretary of the Budget to the State Treasurer and the

amounts transferred by the State Treasurer to the account of

each contracting authority shall be determined as follows:

(i) Add amounts certified by the department under

subsection (e) for the prior calendar year.

(ii) Subtract from the sum under subparagraph (i)

any State tax refunds paid as certified by the department

under subsection (e).

(iii) Add to the difference under subparagraph (ii)

any amounts certified under subsection (e) with respect

to the second prior calendar year.

(iv) Subtract from the sum under subparagraph (iii)

any amounts certified under subsection (e) which are less

than the amounts previously certified under subsection

(e) with respect to the second prior calendar year.

(3) The State Treasurer shall provide an annual transfer

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to the contracting authority until the bonds issued to

finance and refinance the improvement and development of the

expanded neighborhood improvement zone and the construction

of the facility are retired. Each annual transfer to the

contracting authority shall be equal to the balance of the

account of the contracting authority on the date of the

transfer under paragraph (1).

(h) Restriction on use of money.--Money transferred under

subsection (g) is subject to the following:

(1) The money may only be utilized as follows:

(i) For payment of debt service, directly or

indirectly through a multitiered ownership structure or

other structure authorized by a contracting authority to

facilitate financing mechanisms, on bonds or on

refinancing loans used to repay bonds issued to finance

or refinance:

(A) the improvement and development of all or

any part of the expanded neighborhood improvement

zone; and

(B) the construction of all or part of a

facility.

(ii) For payment of debt service on bonds issued to

refund those bonds.

( iii) For replenishment of amounts required in any

debt service reserve funds established to pay debt

service on bonds.

(2) The term of a bond to be refunded shall not exceed

the maximum term permitted for the original bond issued for

the improvement or development of the expanded neighborhood

improvement zone and the construction of a facility.

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(3 ) The money may not be utilized for purposes of

renovating or repairing a facility, except for capital

maintenance and improvement projects.

(i) Ticket surcharge.--The entity operating the facility may

collect a capital repair and improvement ticket surcharge, the

proceeds of which shall be deposited into the account of each

contracting authority. The account of each contracting authority

shall be maintained and utilized as follows:

(1) The money deposited under this subsection may not be

encumbered for any reason and shall be transferred to the

entity for capital repair and improvement projects upon

request from the entity.

(2 ) Upon the expiration of the expanded neighborhood

improvement zone under section 1909-B.1, any and all portions

of the fund attributable to the ticket surcharge shall be

immediately transferred to the contracting authority to be

held in escrow where the money shall be unencumbered and

maintained by the contracting authority in the same manner as

the fund. Upon the transfer, any ticket surcharge collected

by the operating entity shall thereafter be deposited in the

account maintained by the contracting authority and dispersed

for a capital repair and improvement project upon request by

the operating entity.

(j) Excess money.--Within 30 days of the end of each

calendar year, any money remaining in the account of each

contracting authority at the end of the prior calendar year

after the required payments under subsection (g)(2) were made in

the prior calendar year shall be refunded in the following

manner:

(1) Money shall first be returned to the General Fund to

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the extent that the excess money is part of the transfer

under subsection (g)(1).

( 2) Money shall next be paid to the contracting

authority to the extent that the amounts paid under

subsection (g)(2) consisted of local taxes. The contracting

authority shall return the money to the appropriate entities

collecting local tax who submitted the local taxes to the

State Treasurer under subsection (e).

(k) Audit.--

(1) The contracting authority shall hire an independent

auditing firm to perform an annual audit verifying all of the

following:

(i) The correct amount of the eligible local tax was

submitted to the local taxing authorities.

( ii) The local taxing authorities transferred the

correct amount of eligible local tax to the State

Treasurer.

(iii) The money transferred to the fund was properly

expended.

(iv) The correct amount of excess money was refunded

in accordance with the provisions of subsection (j).

(2) A copy of each annual audit under paragraph (1)

shall be sent to the department and the Secretary of the

Budget.

( 3) For purposes of this subsection, an auditing firm

shall not be considered independent if the auditing firm

provides services to an operating organization or any

qualified business within an expanded neighborhood

improvement zone which is a party to a separate agreement

with a contracting authority for the allocation of funds from

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the contracting authority.

Section 1905-B.1. Taxes.

(a) Prohibition.--A division of local government may not

assess real estate taxes on any property in an expanded

neighborhood improvement zone owned by a contracting authority.

(b) Local hotel tax.--Notwithstanding any other provision of

law, revenue generated from local hotel taxes levied in an

expanded neighborhood improvement zone must first be set aside

for new development and capital improvement of hotel properties

in the expanded neighborhood improvement zone. If there is no

new hotel property development or capital improvement in the

expanded neighborhood improvement zone, the revenue generated

from hotel taxes shall be distributed as provided under local

hotel tax law.

from local hotel taxes shall only include the amount of local

hotel taxes collected from hotel activities which exceed the

amount collected from hotel activities occurring prior to the

designation of an expanded neighborhood improvement zone by the

contracting authority.

Section 1906-B.1. Property assessment.

Notwithstanding 53 Pa.C.S. Ch. 88 (relating to consolidated

county assessment), for purposes of determining the assessed

value of property located in an expanded neighborhood

improvement zone, the actual fair market value of the property

shall be established without utilizing or considering the cost

approach to valuation, and any money received by the contracting

authority and utilized directly or indirectly in connection with

the property shall not be considered real property or income

attributable to the property.

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Section 1907-B.1. Transfer of property.

(a) Transfer of parcels.--Parcels in a zone may be

transferred out of the zone and replaced with parcels not to

exceed the acreage transferred out of the zone by the

contracting authority, if:

(1) The department certifies that there is currently no

activity in the parcels transferred in the zone that

generates tax receipts or other revenue to the Commonwealth.

( 2) The municipality where the zone is located certifies

that there is currently no activity in the parcels

transferred into the zone that generates tax receipts or

other revenue, other than taxes on real property, to the

municipality and the school district and county where the

zone is located.

(b) Public hearing.--

(1) For a parcel identified by the contracting authority

to be transferred out of the zone, the contracting authority

may conduct a public hearing pursuant to a request from an

owner of real estate located within the parcel or the city or

municipality where the parcel sits. The hearing shall be held

and notice of the hearing provided to the owner of the parcel

in accordance with section 908 of the act of July 31, 1968

(P.L.805, No.247), known as the Pennsylvania Municipalities

Planning Code.

( 2) If the contracting authority determines that it will

transfer a parcel out of the zone, the contracting authority

shall issue a written opinion within 45 days of the hearing

specifying the reasons supporting the determination.

Section 1908-B.1. Keystone Opportunity Zone.

Within four months following the designation of an expanded

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neighborhood improvement zone, a city may apply to the

Department of Community and Economic Development to decertify

and remove the designation of all or part of the Keystone

Opportunity Zone on behalf of all political subdivisions. The

provisions of section 309 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, shall be deemed satisfied as to all

political subdivisions. The Department of Community and Economic

Development shall act on the application within 30 days.

Section 1909-B.1. Duration.

The expanded neighborhood improvement zone shall be in effect

for a period equal to one year following retirement of all bonds

issued to finance or refinance the improvement and development

of the expanded neighborhood improvement zone or the

construction of the facility. The maximum term of the bond,

including the refunding of the bond, shall not exceed 30 years.

Section 1910-B.1. Commonwealth pledges.

If and to the extent that the contracting authority pledges

amounts required to be transferred to the account of the

contracting authority under section 1904-B.1 for the payment of

bonds issued by the contracting authority, until all bonds

secured by the pledge of the contracting authority, together

with the interest on the bonds, are fully paid or provided for,

the Commonwealth pledges to and agrees with any person, firm,

corporation or government agency, whether in this Commonwealth

or elsewhere, and to and with any Federal agency subscribing to

or acquiring the bonds issued by the contracting authority that

the Commonwealth itself will not nor will it authorize any

government entity to abolish or reduce the size of the expanded

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neighborhood improvement zone, to amend or repeal section 1904-

B.1(b), (e) or (g), to limit or alter the rights vested in the

contracting authority in a manner inconsistent with the

obligations of the contracting authority with respect to the

bonds issued by the contracting authority or to otherwise impair

revenues to be paid under this article to the contracting

authority necessary to pay debt service on bonds. Nothing in

this section shall limit the authority of the Commonwealth or

any government entity to change the rate, tax bases or any

subject of any specific tax or repealing or enacting any tax.

Section 1911-B.1. Confidentiality.

Notwithstanding any other provision of law providing for the

confidentiality of tax records, the contracting authority and

the local taxing authorities shall have access to any reports

and certifications filed under this article, and the contracting

authority shall have access to any State or local tax

information filed by a qualified business in the expanded

neighborhood improvement zone solely for the purpose of

documenting the certifications required by this article or

determining the amount allocated to any uses specified under

section 1904-B.1(h)(1). Any other use of the tax information

shall be prohibited as provided under law.

Section 1912-B.1. Exceptions.

Beginning with the 2024 calendar year, none of the following

may be employed by, be contracting with or provide services for

a contracting authority:

(1) An individual employed by, contracting with or

providing service for a city that has an expanded

neighborhood improvement zone.

(2) An entity contracting with or providing services for

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a city that has an expanded neighborhood improvement zone.

(3) An individual owning an entity or an entity with

ownership interest in a separate entity which is contracting

with a city that has an expanded neighborhood improvement

zone.

(4) An individual or an entity employed by, contracting

with or providing services for a qualified business within

the expanded neighborhood improvement zone which is party to

a separate agreement with a contracting authority for the

allocation of funds from the contracting authority.

(5) An individual or an entity employed by, contracting

with or providing services for an operating organization.

(6) A current board member of a contracting authority.

(7) An entity that is owned by or employs a current

board member of a contracting authority.

Section 2. This act shall take effect in 60 days.

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