HB 371 — An Act amending 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, in preliminary provisions, further providing for definitions; and, in keystone opportunity zones, further providing for qualified businesses.

PRINTER'S NO.   327

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 371
                                               Session of
                                                 2025

     INTRODUCED BY PROKOPIAK, DONAHUE, HILL-EVANS, GIRAL,
        SCHLOSSBERG, PROBST, HADDOCK, MERSKI, BRENNAN, POWELL,
        BOROWSKI, DELLOSO, CERRATO, CEPEDA-FREYTIZ, SANCHEZ,
        HOHENSTEIN AND GREEN, JANUARY 28, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JANUARY 28, 2025


                                    AN ACT
 1   Amending the act of October 6, 1998 (P.L.705, No.92), entitled
 2      "An act providing for the creation of keystone opportunity
 3      zones and keystone opportunity expansion zones to foster
 4      economic opportunities in this Commonwealth, to facilitate
 5      economic development, stimulate industrial, commercial and
 6      residential improvements and prevent physical and
 7      infrastructure deterioration of geographic areas within this
 8      Commonwealth; authorizing expenditures; providing tax
 9      exemptions, tax deductions, tax abatements and tax credits;
10      creating additional obligations of the Commonwealth and local
11      governmental units; and prescribing powers and duties of
12      certain State and local departments, agencies and officials,"
13      in preliminary provisions, further providing for definitions;
14      and, in keystone opportunity zones, further providing for
15      qualified businesses.
16      The General Assembly of the Commonwealth of Pennsylvania
17   hereby enacts as follows:
18      Section 1.    Section 103 of the act of October 6, 1998
19   (P.L.705, No.92), known as the Keystone Opportunity Zone,
20   Keystone Opportunity Expansion Zone and Keystone Opportunity
21   Improvement Zone Act, is amended by adding definitions to read:
22   Section 103.    Definitions.
23      The following words and phrases when used in this act shall
 1   have the meanings given to them in this section unless the
 2   context clearly indicates otherwise:
 3      "Apprenticeship program."    An apprenticeship training program
 4   that is approved by and registered with the Department of Labor
 5   and Industry under the act of July 14, 1961 (P.L.604, No.304),
 6   known as The Apprenticeship and Training Act, and that provides
 7   for on-the-job training, classroom training and the graduation
 8   of apprentice trainees to journeyperson status. The term
 9   includes an apprenticeship program subject to ERISA or a non-
10   ERISA program.
11      * * *
12      "ERISA program."    A program under 29 U.S.C. Ch. 18 (relating
13   to Employee Retirement Income Security Program).
14      * * *
15      "Skilled craft laborer."    A member of a trade who meets any
16   of the following criteria:
17            (1)   The individual is a worker who has work experience
18      equivalent to the total number of on-the-job training hours
19      required by the applicable apprenticeship program.
20            (2)   The individual graduated from, or is currently
21      enrolled in, an apprenticeship program.
22      * * *
23      Section 2.    Section 307(a) of the act is amended by adding a
24   paragraph and the section is amended by adding a subsection to
25   read:
26   Section 307.    Qualified businesses.
27      (a)   Qualifications.--In order to qualify each year for a tax
28   exemption, deduction, abatement or credit under this act, a
29   business shall own or lease real property in a subzone,
30   improvement subzone or expansion subzone from which the business

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 1   actively conducts a trade, profession or business. The qualified
 2   business shall receive certification from the department that
 3   the business is located and is in the active conduct of a trade,
 4   profession or business, within the subzone, improvement subzone
 5   or expansion subzone. The business shall obtain annual renewal
 6   of the certification from the department to continue to qualify
 7   under this section. The certification form shall include, but
 8   not be limited to, all of the following:
 9            * * *
10            (6)   If applicable, the certified payrolls necessary to
11      verify the requirements under subsection (c) in the manner
12      customarily used by the United States Department of Labor to
13      enforce 40 U.S.C. § 3145(a) (relating to regulations
14      governing contractors and subcontractors).
15      * * *
16      (c)   Capital investments.--
17            (1)   A business that makes a capital investment of more
18      than $25,000 for the construction, reconstruction,
19      demolition, alteration or repair of a facility on the parcel
20      through which the business seeks a tax exemption, deduction,
21      abatement or credit under this act shall verify with the
22      department, in the following calendar or fiscal year, all of
23      the following:
24                  (i)    That 70% of the individuals employed by the
25            business in construction, reconstruction, demolition,
26            alteration or repair of the facility are skilled craft
27            laborers.
28                  (ii)    That individuals employed by the business or a
29            contractor or subcontractor of the business for the
30            construction, reconstruction, demolition, alteration or

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 1        repair of the facility have been paid the prevailing
 2        minimum wage rate for each craft or classification as
 3        determined by the Department of Labor and Industry under
 4        the act of August 15, 1961 (P.L.987, No.442), known as
 5        the Pennsylvania Prevailing Wage Act.
 6        (2)     The Department of Labor and Industry shall enforce
 7    this subsection. The Pennsylvania Prevailing Wage Act, 34 Pa.
 8    Code Ch. 9 Subch. E (relating to prevailing regulations) and
 9    34 Pa. Code §§ 211.1 (relating to applicability of general
10    rules) and 213.1 (relating to applicability of general rules)
11    shall apply to any construction, reconstruction, demolition,
12    alteration or repair of a facility, other than maintenance
13    work, that occurs due to a business entity making a capital
14    investment of more than $25,000 for the construction,
15    reconstruction, demolition, alteration or repair of that
16    facility on the parcel through which the business entity
17    seeks a tax exemption, deduction, abatement or credit under
18    this act.
19        (3)     In addition to enforcement authorized under the
20    Pennsylvania Prevailing Wage Act, and paragraph (2), if,
21    after notice and hearing, the Department of Labor and
22    Industry determines that a business entity intentionally
23    failed to pay or intentionally caused another person to fail
24    to pay the prevailing wage or benefit rates as specified
25    under section 11(h) of the Pennsylvania Prevailing Wage Act
26    for the construction, reconstruction, demolition, alteration
27    or repair of a facility in violation of this subsection, or
28    ratified the intentional failure by a contractor or
29    subcontractor of the business entity, the business entity
30    shall refund 100% of the amount of the tax exemption,

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 1    deduction, abatement or credit awarded under this act for the
 2    fiscal year in which the intentional noncompliance occurred
 3    as determined by the Department of Labor and Industry.
 4        (4)   A finding of a violation under paragraph (3) may be
 5    appealed under section 2.2(e)(1) of the Pennsylvania
 6    Prevailing Wage Act and 34 Pa. Code § 213.3 (relating to
 7    appeals from determinations of the Secretary). Any final
 8    determination by the Appeals Board under the Pennsylvania
 9    Prevailing Wage Act may be appealed in accordance with 2
10    Pa.C.S. (relating to administrative law and procedure).
11    Section 3.    This act shall take effect in 60 days.




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