(a) Establishment.--There is established within the department a program for keystone opportunity improvement zones. A keystone opportunity improvement zone shall be comprised of improvement subzones consisting of deteriorated property designated by the Governor.

(b) Proposal.--By January 1, 2003, and notwithstanding any designation under sections 301 and 301.1,¹ the Governor may, by executive order, designate deteriorated property in this Commonwealth as a proposed improvement subzone. The executive order shall specify the period of time, not to exceed 15 years, for which the tax exemptions, deductions, abatements or credits provided by this act may be granted. The department shall immediately notify political subdivisions located within the area designated.

(c) Application.--By June 1, 2004, a political subdivision may apply to the department for approval of the designation of the deteriorated property as an improvement subzone for the period designated under subsection (b). The application must be on a form provided by the department and must include a copy of an ordinance, resolution or other required action from the governing body of the political subdivision exempting or providing the deductions, abatement or credits required by Chapter 7² to qualified persons and qualified businesses within the proposed improvement subzone. Except as provided in section 1309,³ all appropriate ordinances and resolutions must be effective for the period specified in the executive order, and must be binding and nonrevocable on the political subdivision.

(d) Designation.--If all political subdivisions within a proposed improvement subzone submit timely completed applications, the department shall approve the applications and designate the property as an improvement subzone. If a proposed improvement subzone is an existing subzone or an existing expansion subzone, failure of a political subdivision to submit the application as required by this section shall not terminate the existing designation as either a subzone or an expansion subzone. Qualified persons and qualified businesses within the improvement subzone shall be entitled to the State exemptions, deductions, abatements or credits set forth in this act and the local tax exemptions, deductions, abatements or credits set forth in this act, for the period for which the improvement subzone has been designated.