Regular Session 2023-2024 Senate Bill 0961 P.N. 1323

PRINTER'S NO. 1323

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

961

Session of

2024

INTRODUCED BY SANTARSIERO, TARTAGLIONE, KANE, DILLON, HUGHES,

HAYWOOD, FONTANA, KEARNEY, COSTA, COLLETT, CAPPELLETTI,

STREET, COMITTA, MUTH, SAVAL, L. WILLIAMS, BREWSTER, BOSCOLA,

FLYNN AND SCHWANK, JANUARY 11, 2024

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,

JANUARY 11, 2024

AN ACT

Amending the act of October 6, 1998 (P.L.705, No.92), entitled

"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,"

in preliminary provisions, further providing for definitions;

and, in keystone opportunity zones, further providing for

qualified businesses.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. 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, 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:

"Apprenticeship program." An apprenticeship training program

that is approved by and registered with the Department of Labor

and Industry under the act of July 14, 1961 (P.L.604, No.304),

known as The Apprenticeship and Training Act, and that provides

for on-the-job training, classroom training and the graduation

of apprentice trainees to journeyperson status. The term

includes an apprenticeship program subject to ERISA or a non-

ERISA program.

* * *

"ERISA program." A program under 29 U.S.C. Ch. 18 (relating

to Employee Retirement Income Security Program).

* * *

"Skilled craft laborer." A member of a trade who meets any

of the following criteria:

(1) The individual is a worker who has work experience

equivalent to the total number of on-the-job training hours

required by the applicable apprenticeship program.

(2) The individual g raduated from, or is currently

enrolled in, an apprenticeship program.

* * *

Section 2. Section 307(a) of the act is amended by adding a

paragraph and the section is amended by adding a subsection to

read:

Section 307. Qualified businesses.

(a) Qualifications.--In order to qualify each year for a tax

exemption, deduction, abatement or credit under this act, a

business shall own or lease real property in a subzone,

improvement subzone or expansion subzone from which the business

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actively conducts a trade, profession or business. The qualified

business shall receive certification from the department that

the business is located and is in the active conduct of a trade,

profession or business, within the subzone, improvement subzone

or expansion subzone. The business shall obtain annual renewal

of the certification from the department to continue to qualify

under this section. The certification form shall include, but

not be limited to, all of the following:

* * *

(6) If applicable, the certified payrolls necessary to

verify the requirements under subsection (c) in the manner

customarily used by the United States Department of Labor and

Industry to enforce 40 U.S.C. § 3145(a) (relating to

regulations governing contractors and subcontractors).

* * *

(1) A business that makes a capital investment of more

than $25,000 for the construction, reconstruction,

demolition, alteration or repair of a facility on the parcel

through which the business seeks a tax exemption, deduction,

abatement or credit under this act shall verify with the

department, in the following calendar or fiscal year, all of

the following:

(i) That 70% of the individuals employed by the

business in construction, reconstruction, demolition,

alteration or repair of the facility are skilled craft

laborers.

(ii) That i ndividuals employed by the business or a

contractor or subcontractor of the business for the

construction, reconstruction, demolition, alteration or

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repair of the facility have been paid the prevailing

minimum wage rate for each craft or classification as

determined by the Department of Labor and Industry under

the act of August 15, 1961 (P.L.987, No.442), known as

the Pennsylvania Prevailing Wage Act.

(2) The Department of Labor and Industry shall enforce

this subsection . The Pennsylvania Prevailing Wage Act, 34 Pa.

Code Ch. 9 Subch. E (relating to prevailing regulations) and

34 Pa. Code §§ 211.1 (relating to applicability of general

rules) and 213.1 (relating to applicability of general rules)

shall apply to any construction, reconstruction, demolition,

alteration or repair of a facility, other than maintenance

work, that occurs due to a business entity making a capital

investment of more than $25,000 for the construction,

reconstruction, demolition, alteration or repair of that

facility on the parcel through which the business entity

seeks a tax exemption, deduction, abatement or credit under

this act .

(3) In addition to enforcement authorized under the

Pennsylvania Prevailing Wage Act, and paragraph (2) , if,

after notice and hearing, the Department of Labor and

Industry determines that a business entity intentionally

failed to pay or intentionally caused another person to fail

to pay the prevailing wage or benefit rates as specified

under section 11(h) of the Pennsylvania Prevailing Wage Act

for the construction, reconstruction, demolition, alteration

or repair of a facility in violation of this subsection , or

ratified the intentional failure by a contractor or

subcontractor of the business entity, the business entity

shall refund 100% of the amount of the tax exemption,

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deduction, abatement or credit awarded under this act for the

fiscal year in which the intentional noncompliance occurred

as determined by the Department of Labor and Industry.

(4) A finding of a violation under paragraph (3) may be

appealed under section 2.2(e)(1) of the Pennsylvania

Prevailing Wage Act and 34 Pa. Code § 213.3 (relating to

appeals from determinations of the Secretary). Any final

determination by the Appeals Board under the Pennsylvania

Prevailing Wage Act may be appealed in accordance with 2

Pa.C.S. (relating to administrative law and procedure).

Section 3. This act shall take effect in 60 days.

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