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
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
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23 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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30 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 to
enforce 40 U.S.C. § 3145(a) (relating to regulations
governing contractors and subcontractors).
* * *
(c) Capital investments.--
(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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30 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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30 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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