HOUSE AMENDED

 

PRIOR PRINTER'S NOS. 1331, 1465

PRINTER'S NO.  2141

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1042

Session of

2009

  

  

INTRODUCED BY BROWNE, SCARNATI, PILEGGI AND CORMAN, JULY 19, 2009

  

  

AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, JULY 2, 2010  

  

  

  

AN ACT

  

1

Amending the act of April 9, 1929 (P.L.343, No.176), entitled,

<--

2

as amended, "An act relating to the finances of the State

3

government; providing for the settlement, assessment,

4

collection, and lien of taxes, bonus, and all other accounts

5

due the Commonwealth, the collection and recovery of fees and

6

other money or property due or belonging to the Commonwealth,

7

or any agency thereof, including escheated property and the

8

proceeds of its sale, the custody and disbursement or other

9

disposition of funds and securities belonging to or in the

10

possession of the Commonwealth, and the settlement of claims

11

against the Commonwealth, the resettlement of accounts and

12

appeals to the courts, refunds of moneys erroneously paid to

13

the Commonwealth, auditing the accounts of the Commonwealth

14

and all agencies thereof, of all public officers collecting

15

moneys payable to the Commonwealth, or any agency thereof,

16

and all receipts of appropriations from the Commonwealth,

17

authorizing the Commonwealth to issue tax anticipation notes

18

to defray current expenses, implementing the provisions of

19

section 7(a) of Article VIII of the Constitution of

20

Pennsylvania authorizing and restricting the incurring of

21

certain debt and imposing penalties; affecting every

22

department, board, commission, and officer of the State

23

government, every political subdivision of the State, and

24

certain officers of such subdivisions, every person,

25

association, and corporation required to pay, assess, or

26

collect taxes, or to make returns or reports under the laws

27

imposing taxes for State purposes, or to pay license fees or

28

other moneys to the Commonwealth, or any agency thereof,

29

every State depository and every debtor or creditor of the

30

Commonwealth," providing for method of filing; further

31

providing for the definition of "cigarettes"; providing for

32

the definition of "little cigars"; establishing the

 


1

independent fiscal office; further providing for notice and

2

publication of lists of property subject to custody and

3

control of the Commonwealth; providing for borrowing for

4

capital facilities, for oil and gas wells and for

5

Pennsylvania Gaming Economic Development and Tourism Fund and

6

for Water and Sewer System Assistance Bond Fund; further

7

providing for Department of Corrections, for Department of

8

Education, for Department of Environmental Protection, for

9

Pennsylvania State Police and for Pennsylvania Emergency

10

Management Agency; providing for 2009-2010 budget

11

implementation and for 2009-2010 restrictions on

12

appropriations for funds and accounts; abolishing the Board

13

of Trustees of the Scranton State School for the Deaf; and

14

making related repeals.

15

Amending the act of April 9, 1929 (P.L.343, No.176), entitled,

<--

16

as amended, "An act relating to the finances of the State

17

government; providing for the settlement, assessment,

18

collection, and lien of taxes, bonus, and all other accounts

19

due the Commonwealth, the collection and recovery of fees and

20

other money or property due or belonging to the Commonwealth,

21

or any agency thereof, including escheated property and the

22

proceeds of its sale, the custody and disbursement or other

23

disposition of funds and securities belonging to or in the

24

possession of the Commonwealth, and the settlement of claims

25

against the Commonwealth, the resettlement of accounts and

26

appeals to the courts, refunds of moneys erroneously paid to

27

the Commonwealth, auditing the accounts of the Commonwealth

28

and all agencies thereof, of all public officers collecting

29

moneys payable to the Commonwealth, or any agency thereof,

30

and all receipts of appropriations from the Commonwealth,

31

authorizing the Commonwealth to issue tax anticipation notes

32

to defray current expenses, implementing the provisions of

33

section 7(a) of Article VIII of the Constitution of

34

Pennsylvania authorizing and restricting the incurring of

35

certain debt and imposing penalties; affecting every

36

department, board, commission, and officer of the State

37

government, every political subdivision of the State, and

38

certain officers of such subdivisions, every person,

39

association, and corporation required to pay, assess, or

40

collect taxes, or to make returns or reports under the laws

41

imposing taxes for State purposes, or to pay license fees or

42

other moneys to the Commonwealth, or any agency thereof,

43

every State depository and every debtor or creditor of the

44

Commonwealth," further providing for investment, for State

45

depositories, for requisitions, for audit of requisitions and

46

issuance of warrants and for payments; providing for

47

additional transfer, for bonds, for educational tax credits,

48

for permit extensions, for heritage areas and for special

49

provisions relating to victims of crime; further providing

50

for the Pennsylvania Emergency Management Agency, for the

51

Judicial Computer System Augmentation Account and for the

52

Access to Justice Account; providing for the State Gaming

53

Fund; further providing for the Tobacco Settlement Fund;

54

providing for 2010-2011 budget implementation, for 2010-2011

55

restrictions on appropriations for funds and accounts and for

56

retirement; and making related repeals.

57

The General Assembly of the Commonwealth of Pennsylvania

58

hereby enacts as follows:

- 2 -

 


1

Section 1.  The act of April 9, 1929 (P.L.343, No.176), known

<--

2

as The Fiscal Code, is amended by adding a section to read:

3

Section 10.  Method of Filing.--(a)  The Department of

4

Revenue may require any return, report or other document

5

required to be filed for a tax administered by the department

6

prepared by a third party who submits fifty or more returns per

7

year to be filed by any method prescribed by the department

8

including by telephonic, electronic or other method. Notice of

9

the method of filing shall be published in the Pennsylvania

10

Bulletin and on the Department of Revenue's Internet website at

11

least sixty days prior to the due date of the return, report or

12

other document required to be filed by telephonic, electronic or

13

other method. The notice shall refer to this section.

14

(b)  Failure to file a return, report or other document by

15

the method required under subsection (a) shall subject the tax

16

preparer to a penalty of one percent of the tax due on the

17

return, report or other document up to a maximum of five hundred

18

dollars ($500), but not less than ten dollars ($10). This

19

penalty shall be assessed and collected in the manner provided

20

by the act of March 4, 1971 (P.L.6, No.2), known as the "Tax

21

Reform Code of 1971." This penalty shall be in addition to any

22

civil penalty imposed in the applicable article of the "Tax

23

Reform Code of 1971" for failure to file a return, report or

24

other document. The criminal penalty for failure to file a

25

return, report or other document by the method required under

26

subsection (a) shall be the same as the criminal penalty for

27

failure to file a return, report or other document under the

28

applicable article of the "Tax Reform Code of 1971."

29

(c)  (1)  The Department of Revenue may waive the requirement

30

to file by the method required under subsection (a) when the

- 3 -

 


1

department determines that any of the following apply:

2

(i)  The prescribed filing method causes an undue hardship.

3

(ii)  The preparer or taxpayer requests a waiver in writing

4

that clearly states why the filing method causes an undue

5

hardship.

6

(2)  In determining whether filing by the method required

7

under subsection (a) causes an undue hardship, the Department of

8

Revenue may consider unusual circumstances that may prevent the

9

person from filing by the prescribed method or any other factor

10

that the department determines is relevant.

11

Section 1.1.  The definition of "cigarettes" in section 202-A

12

of the act, added July 2, 1993 (P.L.250, No.46), is amended and

13

the section is amended by adding a definition to read:

14

Section 202-A.  Definitions.--As used in this article--

15

* * *

16

"Cigarettes" shall mean and include any roll for smoking made

17

wholly or in part of tobacco, irrespective of size or shape, and

18

whether or not such tobacco is flavored, adulterated or mixed

19

with any other ingredient, the wrapper or cover of which is made

20

of paper or any other substance or material, excepting tobacco,

21

and shall not include cigars. For purposes of licensing under

22

this article only, the term shall include little cigars.

23

* * *

24

"Little cigars" shall mean any roll for smoking that weighs

25

not more than four pounds per thousand, where the wrapper or

26

cover is made of natural leaf tobacco or of any substance

27

containing tobacco.

28

* * *

29

Section 1.2.  The act is amended by adding an article to

30

read:

- 4 -

 


1

ARTICLE V-A

2

INDEPENDENT FISCAL OFFICE

3

Section 501-A.  Short title.

4

This article relates to independence in fiscal matters.

5

Section 502-A.  Definitions.

6

The following words and phrases when used in this article

7

shall have the meanings given to them in this section unless the

8

context clearly indicates otherwise:

9

"Baseline budget."  A draft budget using current dollar

10

values that projects current year levels of budget authority,

11

outlays and revenues and the deficit or surplus into the new

12

budget year and out years on the basis of current laws and

13

policies.

14

"Committee."  The Independent Fiscal Office Selection

15

Committee.

16

"Commonwealth agency."  Any office, department, authority,

17

board, multistate agency or commission of the executive branch.

18

The term includes:

19

(1)  The Office of the Governor.

20

(2)  The Office of Attorney General, the Department of

21

the Auditor General and the Treasury Department.

22

(3)  An independent agency, as defined in the act of

23

February 14, 2008 (P.L.6, No.3), known as the Right-to-Know

24

Law.

25

(4)  A State-affiliated entity, as defined in the Right-

26

to-Know Law.

27

(5)  The General Assembly.

28

(6)  The Judiciary.

29

"Director."  The director of the Independent Fiscal Office.

30

"Office."  The Independent Fiscal Office established in

- 5 -

 


1

section 503-A.

2

Section 503-A.  Office established.

3

There is established a nonpartisan Independent Fiscal Office

4

as an independent agency.

5

Section 504-A.  Duties of office.

6

The office shall:

7

(1)  Prepare revenue estimates to include Federal funds,

8

State revenues and funds from other resources, including any

9

projected revenue surplus or deficit for a given fiscal year,

10

as provided under section 505-A.

11

(2)  By January 1, provide a baseline budget that

12

includes levels of spending necessary to retain the current

13

program and statutory requirements.

14

(3)  Provide an analysis of the executive budget,

15

including budgetary projections, economic outlook, economic

16

impact and an analysis of all related tax and revenue

17

proposals. The budget analysis may include performance

18

recommendations to secure greater efficiency and economy.

19

(4)  Develop and use econometric models to annually

20

forecast State revenues and update the models. The office

21

shall make the equations of a model and any historic

22

databases related to the model available to the

23

Appropriations Committee of the Senate, the Appropriations

24

Committee of the House of Representatives, the Majority

25

Leader and Minority Leader of the Senate and the Majority

26

Leader and Minority Leader of the House of Representatives.

27

(5)  By November 15 of each year, provide an assessment

28

of the State's current fiscal condition and a projection of

29

what the fiscal condition will be during the next five years.

30

The assessment shall take into account the state of the

- 6 -

 


1

economy, demographics, revenues and expenditures.

2

(6)  Monitor State taxes and other receipts.

3

(7)  Develop performance measures for executive-level

4

programs and departments and evaluate performance measures

5

and results as promulgated and reported by executive-level

6

departments. Performance measurements shall be outcomes-based

7

and include activity cost analysis, measures of status

8

improvement of recipient populations, economic outcomes and

9

performance benchmarks against similar State programs.

10

(8)  Establish an Internet website.

11

Section 505-A.  Revenue estimates.

12

(a)  Initial revenue estimate.--By the second week of

13

February, the office shall submit to the General Assembly an

14

initial revenue estimate for the next fiscal year.

15

(b)  Official revenue estimate.--

16

(1)  By June 15 of each year, the office shall submit to

17

the General Assembly an official final binding revenue

18

estimate for the next fiscal year.

19

(2)  The revenue estimate submitted under this section

20

shall establish the maximum amount of tax revenue which may

21

be considered for the General Appropriation Act for the

22

ensuing fiscal year. No changes in the revenue estimates

23

shall be made by the office after submission under paragraph

24

(1) unless changes in statutes affecting revenues and

25

receipts are enacted.

26

(3)  The office shall publish the methodology used to

27

develop revenue estimates.

28

(4)  Following the adoption of a General Appropriation

29

Act or Supplemental Appropriation Act by the General

30

Assembly, the Governor shall certify that the budget

- 7 -

 


1

appropriations made by the General Assembly do not exceed the

2

actual and estimated revenue and surplus available according

3

to the official final binding revenue estimate under

4

paragraph (1).

5

(c)  Information.--The office shall provide the

6

Appropriations Committee of the Senate, the Appropriations

7

Committee of the House of Representatives and the Secretary of

8

the Budget all data, assumptions and econometric models used to

9

develop projections and revenue estimates.

10

(d)  Required information.--

11

(1)  A revenue estimate submitted by the office under

12

this subsection shall include all of the following:

13

(i)  An assessment of the Pennsylvania economy and

14

the national economy and the impact of the existing or

15

emerging State or national economic trends on revenue

16

performance for the current year and the forecasted or

17

projected revenue collections for the budget year and the

18

succeeding year.

19

(ii)  A summary of current year-to-date revenue

20

collections by specific tax or revenue source, including

21

Federal funds, the General Fund, the Lottery Fund and the

22

Motor License Fund and a detailed explanation of any

23

negative or positive variation from the prior year's

24

official revenue estimate, including the reasons or

25

events contributing to the variation.

26

(iii)  Any projected revenue surplus or deficit for

27

the current budget year.

28

(2)  A revenue estimate shall be based on existing

29

statutes and tax policy and existing or emerging State or

30

national economic trends.

- 8 -

 


1

(3)  The office shall prepare a revenue estimate of any

2

change in State tax law proposed as part of the annual State

3

budget. If the proposed change in State tax law will have a

4

fiscal impact in excess of $10,000,000 in any fiscal year,

5

the estimate shall be prepared on the basis of assumptions

6

that estimate the probable behavioral responses of taxpayers,

7

businesses and other persons to the proposed changes and

8

shall include a statement identifying those assumptions.

9

(e)  Department of Revenue.--The Department of Revenue in

10

conjunction with the Secretary of the Budget shall make revenue

11

estimates for the use of the Governor in preparing the budget.

12

(f)  Governor.--The Governor shall item veto any part of any

13

appropriation bill that causes total appropriations to exceed

14

the official revenue estimate under subsection (b) plus any

15

unappropriated surplus.

16

Section 506-A.  Budget information.

17

The office shall be notified and shall attend any briefings

18

provided by the Governor or the Secretary of the Budget under

19

section 619 of the act of April 9, 1929 (P.L.177, No.175), known

20

as The Administrative Code of 1929.

21

Section 507-A.  Expenditures.

22

(a)  Expenditure reports.--Commonwealth agencies shall make

23

monthly expenditure data available to the office. The data shall

24

be provided within seven days after the end of each month. The

25

monthly data shall include a summary of the last monthly

26

submission. The data shall be provided in finished reports or

27

electronically, as determined by the office. The data shall be

28

provided by fund, by appropriation, by department and by

29

organization within each department and shall include:

30

(1)  Number of filled personnel positions and their cost.

- 9 -

 


1

(2)  Itemized personnel vacancies and their cost.

2

(3)  New positions created and their cost.

3

(4)  Wage and overtime costs.

4

(5)  Allotments and expenditures for itemized personnel

5

expenses.

6

(6)  Allotments and expenditures for itemized operating

7

expenses.

8

(7)  Allotment and expenditures for itemized fixed

9

assets.

10

(8)  The rate of expenditures in appropriations for major

11

subsidy and grant programs during the month.

12

(b)  Budget requests.--Commonwealth agencies shall submit

13

their agency budget requests to the office and the Office of the

14

Budget. The Commonwealth agency budget requests shall be

15

submitted to both offices at the same time.

16

(c)  Revenue reports.--The Governor shall make monthly

17

revenue reports to the office. The revenue reports shall show

18

the actual collection of revenue itemized by source and a

19

comparison of the actual collections with estimated collections

20

for each month. The comparison shall include an analysis of any

21

change in collection patterns which will cause a shortfall or

22

overrun on annual estimates of more than 1%.

23

(d)  Other revenue data.--Commonwealth agencies shall cause

24

to be prepared any other revenue data as may be requested from

25

time to time by the office.

26

(e)  Electronic access.--Except for information that is

27

confidential pursuant to statute, the office shall have access

28

to all information available under this section on inquiry-only

29

screens through an integrated central computer system.

30

Section 508-A.  Revenue conference.

- 10 -

 


1

By January 31 of each year, the office shall convene a

2

meeting with the Secretary of the Budget and the chairman and

3

minority chairman of the Appropriations Committee of the Senate

4

and the chairman and minority chairman of the Appropriations

5

Committee of the House of Representatives to discuss the

6

following:

7

(1)  An assessment of the Pennsylvania economy and the

8

national economy and the impact of the economic trends on

9

revenue performance for the budget year and the succeeding

10

year.

11

(2)  Recommended changes to revenue forecasting and

12

econometric models being considered by the office.

13

(3)  Current year-to-date revenue collections by specific

14

tax or revenue source, including Federal funds, the General

15

Fund, the Lottery Fund and the Motor License Fund and

16

variations that may be occurring in the revenue estimate

17

submitted under section 505-A(a).

18

(4)  Any statutory or tax policy changes that may be

19

recommended by the Governor or the General Assembly for the

20

next succeeding fiscal year.

21

Section 509-A.  Access to information.

22

(a)  Agencies.--The director is authorized to secure

23

information, data, expense information, estimates and statistics

24

directly from a Commonwealth agency or a political subdivision.

25

All Commonwealth agencies and political subdivisions shall

26

furnish the director with all reports of expenditure for each

27

agency and any other available material or data which the

28

director determines to be necessary in the performance of the

29

duties of the office, other than material the disclosure of

30

which would be a violation of law. The director is also

- 11 -

 


1

authorized, upon agreement with the head of any Commonwealth

2

agency or political subdivision, to utilize the services,

3

facilities and personnel of the agency with or without

4

reimbursement.

5

(b)  Office of the Budget.--In carrying out the duties and

6

functions of the office, the director is authorized to obtain

7

information, data, estimates and statistics developed by the

8

Office of the Budget and all Commonwealth agencies. The Governor

9

shall submit to the office copies of final agency budget

10

requests.

11

(c)  Computer database.--In order to carry out its duties

12

under this article, the office shall have access to any

13

computerized database of a State agency that is required to aid

14

the office in the performance of its duties, except that any

15

statutory requirements regarding privacy of individuals' records

16

shall be observed in providing access.

17

(d)  Daily revenue data.--

18

(1)  The Secretary of Revenue and the Secretary of the

19

Budget shall post revenue collection data for each deposit

20

day and make the information available to the office and the

21

chairman and minority chairman of the Appropriations

22

Committee of the Senate and the chairman and minority

23

chairman of the Appropriations Committee of the House of

24

Representatives.

25

(2)  The daily revenue data shall be presented in a

26

manner similar to and consistent with the daily revenue data

27

provided on June 30, 2007. In no case shall each deposit day

28

contain less information than was accessible during the

29

2006-2007 fiscal year as a result of changes in reporting

30

procedures, accounting systems or computer systems.

- 12 -

 


1

(3)  The Governor, the Attorney General, the Auditor

2

General and the State Treasurer shall cause to be prepared

3

any other revenue data as may be requested by the office.

4

(e)  Civil action.--If information is not made available by a

5

Commonwealth agency or political subdivision within a reasonable

6

time, the director may make a written request to the agency

7

head, stating the authority to receive the information. The

8

agency head shall have ten days to respond. If the information

9

is not provided within ten days of the receipt of the agency

10

response, the director may bring a civil action to require the

11

agency head to provide the information.

12

Section 510-A.  Selection and organization committee.

13

(a)  Selection and organization committee.--There is

14

established a committee to organize the office and select the

15

director of the office consisting of the following:

16

(1)  The chairman and minority chairman of the

17

Appropriations Committee of the Senate and the chairman and

18

minority chairman of the Appropriations Committee of the

19

House of Representatives.

20

(2)  The Majority Leader and the Minority Leader of the

21

Senate and the Majority Leader and the Minority Leader of the

22

House of Representatives.

23

(3)  The President pro tempore of the Senate and the

24

Speaker of the House of Representatives.

25

(4)  The Governor.

26

(b)  Duties of committee.--The following shall apply:

27

(1)  By August 31, 2010, the selection and organization

28

committee shall deliberate the following:

29

(i)  The organizational structure of the office.

30

(ii)  The procedures to be adopted to select the

- 13 -

 


1

director of the office.

2

(iii)  The operational budget for the office.

3

(2)  By October 31, 2010, the selection and organization

4

committee shall submit a report to the Secretary of the

5

Budget, the chairman and minority chairman of the

6

Appropriations Committee and the chairman and minority

7

chairman of the Finance Committee of the Senate and the

8

chairman and minority chairman of the Appropriations

9

Committee and the chairman and minority chairman of the

10

Finance Committee of the House of Representatives setting

11

forth a plan to establish the office, including an

12

operational budget, and to select the director of the office.

13

Section 511-A.  Appointment.

14

(a)  Director.--The office shall be headed by a director

15

appointed by the selection committee under section 510-A. The

16

appointment shall be made without regard to political

17

affiliation and solely on the basis of fitness to perform the

18

duties of the office based on qualifications published by the

19

selection committee.

20

(b)  Deputy director.--The director shall appoint a deputy

21

director who shall perform such duties as assigned by the

22

director and who shall during the absence or incapacity of the

23

director or a vacancy act as the director.

24

(c)  Term.--The term of office of the director shall be six

25

years. An individual appointed as director to fill a vacancy

26

prior to the expiration of a term shall serve only for the

27

unexpired portion of that term. An individual serving as

28

director at the expiration of a term may continue to serve until

29

a successor is appointed.

30

(d)  Removal.--The director may be removed by a concurrent

- 14 -

 


1

resolution passed by the Senate and the House of

2

Representatives.

3

Section 512-A.  Powers and duties of director.

4

(a)  Personnel.--The director shall appoint and fix the

5

compensation of personnel necessary to carry out the duties and

6

functions of the office. All personnel shall be appointed

7

without regard to political affiliation and solely on the basis

8

of their fitness to perform their duties.

9

(b)  Experts and consultants.--In carrying out the duties and

10

functions of the office, the director may procure the temporary

11

or intermittent services of experts or consultants by contract.

12

Section 2.  Section 1301.12(c) and (d) of the act, amended

13

June 29, 2002 (P.L.614, No.91), are amended to read:

14

Section 1301.12.  Notice and Publication of Lists of Property

15

Subject to Custody and Control of the Commonwealth under this

16

Article.--* * *

17

(c)  The State Treasurer is not required to [publish in such

18

notice] include in such notice published in an English language

19

newspaper of general circulation any item of less than [one

20

hundred dollars ($100)] two hundred fifty dollars ($250) or to

21

include in such notice published in a legal newspaper any item

22

of less than two hundred fifty dollars ($250), unless the State

23

Treasurer, in either instance, deems such publication to be in

24

the public interest.

25

(d)  Within nine (9) months from the receipt of the report

26

required by section 1301.11, the State Treasurer shall mail a

27

notice to each person having an address listed who appears to be

28

entitled to property of the value of [one hundred dollars

29

($100)] two hundred fifty dollars ($250) or more subject to

30

custody and control of the Commonwealth under this article. The

- 15 -

 


1

mailed notice shall contain:

2

1.  A statement that, according to a report filed with the

3

State Treasurer, property is being held to which the addressee

4

appears entitled;

5

2.  The name and address of the holder of the property and

6

any necessary information regarding changes of name and address

7

of the holder;

8

3.  A statement that, if satisfactory proof of claim is not

9

presented by the owner to the holder by the date specified in

10

the published notice, claims should thereafter be filed with the

11

State Treasurer.

12

* * *

13

Section 3.  The act is amended by adding articles to read:

14

ARTICLE XVI-B

15

BORROWING FOR CAPITAL FACILITIES

16

Section 1601-B.  Scope.

17

This article relates to neighborhood improvement zones.

18

Section 1602-B.  Definitions.

19

The following words and phrases when used in this article

20

shall have the meanings given to them in this section unless the

21

context clearly indicates otherwise:

22

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

23

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

24

Enabling Act.

25

"City."  A city of the third class with, on the effective

26

date of this section, a population of at least 106,000 and not

27

more than 107,000, based on the 2000 Federal decennial census.

28

"Contracting authority."  An authority created under 53

29

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

30

purpose of designating a neighborhood improvement zone and

- 16 -

 


1

constructing a facility or other authority created under the

2

laws of this Commonwealth which is eligible to apply for and

3

receive redevelopment assistance capital grants under Chapter 3

4

of the act of February 9, 1999 (P.L.1, No.1), known as the

5

Capital Facilities Debt Enabling Act, and which is under a

6

contract with the Office of the Budget to receive those grants.

7

"Facility."  A stadium, arena or other structure owned or

8

leased by professional sports organization at which professional

9

athletic events are conducted in the presence of individuals who

10

pay admission to view the event constructed or operated by the

11

contracting authority.

12

"Facility complex."  A development or complex of residential,

13

commercial, exhibition, hospitality, conference, retail and

14

community uses which includes a stadium arena or other place

15

owned, leased or utilized by a professional sports organization

16

at which a professional athletic event or other events are

17

conducted in the presence of individuals who pay admission to

18

view the event.

19

"Fund."  The Neighborhood Improvement Zone Fund established

20

under section 1604-B.

21

"Neighborhood improvement zone."  A neighborhood improvement

22

zone designated by the contracting authority for the purposes of

23

neighborhood improvement and development within a city.

24

"Professional sports organization."  A sole proprietorship,

25

corporation, limited liability company, partnership or

26

association that meets all of the following:

27

(1)  Owns a professional sports franchise.

28

(2)  Conducts professional athletic events of the sports

29

franchise at a facility.

30

"Qualified business."  An entity authorized to conduct

- 17 -

 


1

business in this Commonwealth which is located or partially

2

located within a neighborhood improvement zone and is engaged in

3

the active conduct of a trade or business for the taxable year.

4

An agent, broker or representative of a business shall not be

5

considered to be in the active conduct of trade or business for

6

the business.

7

Section 1603-B.  Facility.

8

The contracting authority may designate a neighborhood

9

improvement zone of not greater than 130 acres, in which a

10

facility or facility complex may be constructed, and may borrow

11

funds for the purpose of improvement and development within the

12

neighborhood improvement zone and construction of a facility or

13

facility complex within the zone.

14

Section 1604-B.  Neighborhood Improvement Zone Fund.

15

(a)  Special fund.--There is established a special fund known

16

as the Neighborhood Improvement Zone Fund. Interest income

17

derived from investment of the money in the fund shall be

18

credited by the Treasury Department to the fund.

19

(b)  Calculation.--Within 60 days of the end of each quarter,

20

the Department of Revenue shall calculate the amounts under this

21

subsection for improvement and development in the neighborhood

22

improvement zone, the facility complex and the facility. The

23

contracting authority shall provide good faith estimates of

24

quarterly amounts to be calculated. The Department of Revenue

25

shall estimate the quarterly amounts, subject to an annual

26

reconciliation, and shall certify the amounts to the Office of

27

the Budget within 90 days of the end of a fiscal quarter. An

28

entity collecting a local tax within the neighborhood

29

improvement zone shall, within 30 days of the end of a fiscal

30

quarter, submit all of the local taxes collected that are to be

- 18 -

 


1

calculated under this subsection to the State Treasurer for

2

transfer to the fund under subsection (d). The following shall

3

be the amounts calculated:

4

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

5

capital stock and franchise tax, personal income tax,

6

business privilege tax, business privilege licensing fees and

7

earned income tax related to the ownership and operation of a

8

professional sports organization conducting professional

9

athletic events at the facility or facility complex.

10

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

11

(i)  All personal income tax, earned income tax and

12

local services tax withheld from its employees by a

13

professional sports organization conducting professional

14

athletic events at the facility or facility complex.

15

(ii)  All personal income tax, earned income tax and

16

local services tax withheld from the employees of any

17

provider of events at or services to, or any operator of

18

an enterprise in, the facility or facility complex.

19

(iii)  All personal income tax, earned income tax and

20

local services tax to which the Commonwealth would be

21

entitled from performers or other participants, including

22

visiting teams, at an event or activity at the facility

23

or facility complex.

24

(3)  An amount equal to all sales and use tax related to

25

the operation of the professional sports organization and the

26

facility and enterprises developed as part of the facility

27

complex. This paragraph shall include sales and use tax paid

28

by any provider of events or activities at or services to the

29

facility or facility complex, including sales and use tax

30

paid by vendors and concessionaires and contractors at the

- 19 -

 


1

facility or facility complex.

2

(4)  An amount equal to all tax paid to the Commonwealth

3

related to the sale of any liquor, wine or malt or brewed

4

beverage in the facility or facility complex.

5

(5)  The amount paid by the professional sports

6

organization or by any provider of events or activities at or

7

services to the facility or facility complex of any new tax

8

enacted by the Commonwealth following the effective date of

9

this section.

10

(6)  An amount equal to all personal income tax, earned

11

income tax and local services tax withheld from personnel by

12

the professional sports organization or by a contractor or

13

other entity involved in the construction of the facility or

14

facility complex.

15

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

16

materials and other construction costs, whether withheld or

17

paid by the professional sports organization or other entity,

18

directly related to the construction of the facility or

19

facility complex.

20

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

21

(i)  All corporate net income tax, capital stock and

22

franchise tax, personal income tax, business privilege

23

tax, business privilege licensing fees and earned income

24

tax related to the ownership and operation of any

25

qualified business within the neighborhood improvement

26

zone.

27

(ii)  All personal income tax, earned income tax and

28

local services tax withheld from its employees by a

29

qualified business within the neighborhood improvement

30

zone.

- 20 -

 


1

(iii)  All personal income tax, earned income tax and

2

local services tax withheld from the employees of a

3

qualified business that provides events, activities or

4

services in the neighborhood improvement zone.

5

(iv)  All personal income tax, earned income tax and

6

local services tax to which the Commonwealth would be

7

entitled from performers or other participants at an

8

event or activity in the neighborhood improvement zone.

9

(v)  All sales and use tax related to the operation

10

of a qualified business within the neighborhood

11

improvement zone. This subparagraph shall include sales

12

and use tax paid by a qualified business that provides

13

events, activities or services in the neighborhood

14

improvement zone.

15

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

16

Commonwealth related to the sale of any liquor, wine or

17

malt or brewed beverage within the neighborhood

18

improvement zone.

19

(vii)  The amount paid a qualified business within

20

the neighborhood improvement zone of any new tax enacted

21

by the Commonwealth following the effective date of this

22

section.

23

(viii)  All personal income tax, earned income tax

24

and local services tax withheld from personnel by a

25

qualified business involved in the improvement,

26

development or construction of the neighborhood

27

improvement zone.

28

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

29

other construction costs, whether withheld or paid by the

30

professional sports organization or other qualified

- 21 -

 


1

business, directly related to the improvement,

2

development or construction of the neighborhood

3

improvement zone.

4

(x)  An amount equal to any amusement tax paid by a

5

qualified business operating in the neighborhood

6

improvement zone. No political subdivision or other

7

entity authorized to collect amusement taxes may impose

8

or increase the rate of any tax on admissions to places

9

of entertainment, exhibition, amusement or upon athletic

10

events in the neighborhood improvement zone which are not

11

in effect on the date the neighborhood improvement zone

12

is designated by the contracting authority.

13

(9)  Except for a tax levied against real property, an

14

amount equal to any tax imposed by the Commonwealth or any of

15

its political subdivisions on a qualified business engaged in

16

an activity within the neighborhood improvement zone.

17

(c)  Income apportionment.--For the purpose of making the

18

calculations under subsection (b), the taxable income of a

19

corporation that is a qualified business shall be apportioned to

20

the neighborhood improvement zone by multiplying the

21

Pennsylvania taxable income by a fraction, the numerator of

22

which is the property factor plus the payroll factor plus the

23

sales factor and the denominator of which is three, in

24

accordance with the following:

25

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

26

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

27

tangible personal property owned or rented and used in the

28

neighborhood improvement zone during the tax period and the

29

denominator of which is the average value of all the

30

taxpayer's real and tangible personal property owned or

- 22 -

 


1

rented and used in this Commonwealth during the tax period

2

but shall not include the security interest of any

3

corporation as seller or lessor in personal property sold or

4

leased under a conditional sale, bailment lease, chattel

5

mortgage or other contract providing for the retention of a

6

lien or title as security for the sales price of the

7

property.

8

(2)  The following apply:

9

(i)  The payroll factor is a fraction, the numerator

10

of which is the total amount paid in the neighborhood

11

improvement zone during the tax period by the taxpayer

12

for compensation and the denominator of which is the

13

total compensation paid in this Commonwealth during the

14

tax period.

15

(ii)  Compensation is paid in the neighborhood

16

improvement zone if:

17

(A)  the person's service is performed entirely

18

within the neighborhood improvement zone;

19

(B)  the person's service is performed both

20

within and without the neighborhood improvement zone,

21

but the service performed without the neighborhood

22

improvement zone is incidental to the person's

23

service within the neighborhood improvement zone; or

24

(C)  some of the service is performed in the

25

neighborhood improvement zone and the base of

26

operations or, if there is no base of operations, the

27

place from which the service is directed or

28

controlled is in the neighborhood improvement zone,

29

or the base of operations or the place from which the

30

service is directed or controlled is not in any

- 23 -

 


1

location in which some part of the service is

2

performed, but the person's residence is in the

3

neighborhood improvement zone.

4

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

5

which is the total sales of the taxpayer in the neighborhood

6

improvement zone during the tax period and the denominator of

7

which is the total sales of the taxpayer in this Commonwealth

8

during the tax period.

9

(i)  Sales of tangible personal property are in the

10

neighborhood improvement zone if the property is

11

delivered or shipped to a purchaser that takes possession

12

within the neighborhood improvement zone regardless of

13

the F.O.B. point or other conditions of the sale.

14

(ii)  Sales other than sales of tangible personal

15

property are in the neighborhood improvement zone if:

16

(A)  the income-producing activity is performed

17

in the neighborhood improvement zone; or

18

(B)  the income-producing activity is performed

19

both within and without the neighborhood improvement

20

zone and a greater proportion of the income-producing

21

activity is performed in the neighborhood improvement

22

zone than in any other location, based on costs of

23

performance.

24

(d)  Transfers.--

25

(1)  Within ten days of receiving notification under

26

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

27

State Treasurer to, notwithstanding any other law, transfer

28

the amounts calculated under subsection (b) from the General

29

Fund to the fund.

30

(2)  The State Treasurer shall provide quarterly payments

- 24 -

 


1

to the contracting authority until the bonds issued to

2

finance the improvement and development of the neighborhood

3

improvement zone and the construction of the contracted

4

facility or facility complex are retired. The payment in each

5

quarter shall be equal to the balance of the fund on the last

6

day of the prior calendar quarter.

7

(e)  Restriction on use of funds.--Funds transferred under

8

subsection (d):

9

(1)  May only be utilized for payment of debt service on

10

bonds issued for the improvement and development of all or

11

any part of the neighborhood improvement zone and the purpose

12

of constructing a facility or facility complex.

13

(2)  May not be utilized for purposes of renovating or

14

repairing a facility or facility complex, except for capital

15

maintenance and improvement projects.

16

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

17

collect a capital repair and improvement ticket surcharge, the

18

proceeds of which shall be deposited into the fund. The funds

19

shall be maintained and utilized as follows:

20

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

21

encumbered for any reason and shall be transferred to the

22

entity for capital repair and improvement projects upon

23

request from the entity.

24

(2)  Upon the expiration of the neighborhood improvement

25

zone under section 1606-B, any and all portions of the fund

26

attributable to the ticket surcharge shall be immediately

27

transferred to the contracting authority to be held in escrow

28

where they shall be unencumbered and maintained by the

29

contracting authority in the same manner as the fund. Upon

30

the transfer, any ticket surcharge collected by the operating

- 25 -

 


1

entity shall thereafter be deposited in the account

2

maintained by the contracting authority and dispersed for a

3

capital repair and improvement project upon request by the

4

operating entity.

5

Section 1605-B.  Keystone Opportunity Zone.

6

Within 30 days of the effective date of this section, the

7

city shall apply to the department to decertify and remove the

8

designation of all or part of the Keystone Opportunity Zone in

9

accordance with section 309 of the act of October 6, 1998

10

(P.L.705, No.92), known as the Keystone Opportunity Zone,

11

Keystone Opportunity Expansion Zone and Keystone Opportunity

12

Improvement Zone Act. The department shall act on the

13

application within 30 days.

14

Section 1606-B.  Duration.

15

The neighborhood improvement zone shall be in effect for a

16

period equal to the length of time of the bonds that are

17

initially issued.

18

ARTICLE XVI-E

19

OIL AND GAS WELLS

20

SUBARTICLE A

21

PRELIMINARY PROVISIONS

22

Section 1601-E.  Definitions.

23

The following words and phrases when used in this article

24

shall have the meanings given to them in this subarticle unless

25

the context clearly indicates otherwise:

26

"Active production well."  An oil, gas or coal bed methane

27

well which is certified by the Department of Environmental

28

Protection as a well from which oil, gas or coal bed methane was

29

extracted during the fiscal year.

30

"Commonwealth lands."  Land owned by the Commonwealth. The

- 26 -

 


1

term does not include land owned by the Commonwealth

2

administered by the Pennsylvania Game Commission or the

3

Pennsylvania Fish and Boat Commission.

4

"Department."  The Department of Conservation and Natural

5

Resources.

6

"Fund."  The Oil and Gas Lease Fund established under the act

7

of December 15, 1955 (P.L.865, No.256), entitled, "An act

8

requiring rents and royalties from oil and gas leases of

9

Commonwealth land to be placed in a special fund to be used for

10

conservation, recreation, dams, and flood control; authorizing

11

the Secretary of Forests and Waters to determine the need for

12

and location of such projects and to acquire the necessary

13

land."

14

"Marcellus well."  An active production well certified by the

15

Department of Environmental Protection as a well from which gas

16

from the Marcellus Shale formation as determined by the United

17

States Geological Survey was extracted during the fiscal year,

18

including wells on Commonwealth and non-Commonwealth land.

19

"Responsible bidder."  The term shall have the same meaning

20

as the term "responsible bidder" as defined in 62 Pa.C.S. § 103

21

(relating to definitions).

22

SUBARTICLE B

23

ADMINISTRATION

24

Section 1611-E.  Contracts.

25

In fiscal year 2009-2010 and in fiscal year 2010-2011, the

26

department shall conduct a competitive public auction to lease

27

State forest land each year for the production of Marcellus

28

Shale gas reserves in an amount that generates the amount

29

required to be transferred to the General Fund under section

30

1615-E. The department shall advertise each auction of Marcellus

- 27 -

 


1

Shale gas reserves once a week for three weeks in at least two

2

newspapers of general circulation published nearest to the

3

locality of the State forest land to be leased and in the

4

Pennsylvania Bulletin. The department may not accept a bid for

5

the rights to explore and develop Marcellus Shale gas reserves

6

unless the bid is in an amount that reflects a reasonable market

7

price and maximizes revenues for the Commonwealth and is at

8

least $2,500 per acre. A lease contract shall be awarded to the

9

highest responsible bidder and shall require the posting of a

10

bond and carry a primary term of ten years, which may be

11

extended. Each lease contract shall reserve as royalty payable

12

to the Commonwealth not less than 16% of the market value of all

13

marketable gas produced at each wellhead. Nothing in this

14

section shall prevent the department from establishing a higher

15

minimum price or higher royalty in any request for or

16

solicitation of bids. Lease and royalty payments received by the

17

Commonwealth under a lease awarded under this paragraph shall be

18

deposited into the fund.

19

Section 1611.1-E.  Wellhead meter.

20

Each active production well leased under section 1611-E shall

21

be equipped with a wellhead meter maintained according to

22

industry standards and accessible to the department.

23

Section 1612-E.  Reports.

24

By June 1 of each year, the department, in cooperation with

25

the Department of Environmental Protection, shall certify to the

26

State Treasurer the number of Marcellus wells located in each

27

municipality on the first day of May of each year.

28

Section 1613-E.  Fund.

29

Lease payments received by the Oil and Gas Lease Fund for the

30

development or storage of oil and gas reserves shall be

- 28 -

 


1

deposited into a separate lease account in the fund. Royalty

2

payments received by the Oil and Gas Lease Fund from the

3

production of oil and gas from active production wells on

4

Commonwealth lands shall be deposited into a separate royalties

5

account in the fund.

6

Section 1614-E.  Appropriation.

7

Notwithstanding any other provision of law, beginning in

8

fiscal year 2010-2011, all money in the royalties account may

9

not be expended unless appropriated by the General Assembly.

10

Beginning in fiscal year 2010-2011, the sum of $30,000,000 from

11

the royalties account is appropriated annually to the department

12

to carry out the purposes set forth in the act of December 15,

13

1955 (P.L.865, No.256), entitled "An act requiring rents and

14

royalties from oil and gas leases of Commonwealth land to be

15

placed in a special fund to be used for conservation,

16

recreation, dams, and flood control; authorizing the Secretary

17

of Forests and Waters to determine the need for and location of

18

such projects and to acquire the necessary land."

19

Section 1615-E.  Use.

20

(a)  Local distribution.--Notwithstanding any other provision

21

of law, beginning in fiscal year 2012-2013, 15% of the money in

22

the account for royalties in the fund, up to $50,000,000, shall

23

be distributed annually to municipalities impacted by the

24

operation of Marcellus wells in accordance with an allocation

25

plan and procedures adopted in a statute by the General

26

Assembly.

27

(b)  Transfers from lease account.--Notwithstanding any other

28

provision of law, the following shall apply:

29

(1)  In fiscal year 2009-2010, the amount of $60,000,000

30

shall be transferred from the lease account to the General

- 29 -

 


1

Fund.

2

(2)  In fiscal year 2010-2011, the amount of $180,000,000

3

shall be transferred from the lease account to the General

4

Fund.

5

Section 3.1.  Article XVII-A of the act is amended by adding

6

subarticles to read:

7

SUBARTICLE H

8

PENNSYLVANIA GAMING ECONOMIC DEVELOPMENT

9

AND TOURISM FUND

10

Section 1771-A.  Definitions.

11

The following words and phrases when used in this subarticle

12

shall have the meanings given to them in this section unless the

13

context clearly indicates otherwise:

14

"Affiliated entity."  Any of the following:

15

(1)  A subsidiary or holding company of a lobbying firm

16

or other business entity owned in whole or in part by a

17

lobbying firm.

18

(2)  An organization recognized by the Internal Revenue

19

Service as a tax-exempt organization under section 501(c) of

20

the Internal Revenue Code of 1986 (Public Law 99-514, 26

21

U.S.C. § 501(c)) established by a lobbyist or lobbying firm

22

or an affiliated entity.

23

"Authority."  The Commonwealth Financing Authority.

24

"Eligible applicant."  As defined in the H2O PA Act.

25

"H2O PA Act."  The act of July 9, 2008 (P.L.908, No.63),

26

known as the H2O PA Act.

27

"High hazard unsafe dam."  As defined in the H2O PA Act.

28

"Lobbying."  The term shall have the meaning given to it in

29

65 Pa.C.S. § 13A03 (relating to definitions). The term shall

30

also include an effort to influence the action of the authority

- 30 -

 


1

or the Department of Community and Economic Development relating

2

to the approval, award, receipt or denial of a grant under the

3

H2O PA Act.

4

"Project."  As defined in the H2O PA Act.

5

Section 1772-A.  Certification of funds.

6

On or before January 1 of each year, the Secretary of the

7

Budget shall certify to the authority and the State Treasurer

8

the amount of funds available for transfer from the Gaming

9

Economic Development and Tourism Fund under the provisions of

10

section 301 of the H2O PA Act, for the next fiscal year.

11

Section 1773-A.  Request for appropriation.

12

If inadequate funds are available to the authority to pay all

13

the costs related to indebtedness incurred to fund projects

14

under the H2O PA Act after the transfer of funds from the Gaming

15

Economic Development and Tourism Fund under section 301 of the

16

H2O PA Act, the Secretary of the Budget on behalf of the

17

authority shall seek an appropriation from the General Fund to

18

fully pay the costs.

19

Section 1774-A.  Amount of grants.

20

Notwithstanding the provisions of section 501(d) of the H2O

21

PA Act, grants shall be made as follows:

22

(1)  A minimum of $85,000,000 shall be awarded to flood

23

control projects.

24

(2)  A minimum of $50,000,000 shall be awarded to high-

25

hazard unsafe dam projects. No more than $20,000,000 may go

26

to an eligible applicant that is the Commonwealth or an

27

independent agency.

28

Section 1775-A.  Eligible applicants.

29

Notwithstanding any other provision of the H2O PA Act to the

30

contrary, a not-for-profit organization that owns a high-hazard

- 31 -

 


1

unsafe dam and has filed with the authority an application for a

2

grant under section 502(a)(3) of the H2O PA Act prior to the

3

effective date of this section shall be an eligible applicant

4

for a grant under section 502(a)(3) of the H2O PA Act.

5

Section 1776-A.  Prohibited activities.

6

(a)  Limitation on giving compensation.--A person or its

7

affiliated entity may not compensate or incur an obligation to

8

compensate a person to engage in lobbying for compensation

9

contingent in whole or in part upon the approval, award, receipt

10

or denial of a grant under Chapters 1 through 7 of the H2O PA

11

Act.

12

(b)  Limitation on receiving compensation.--A person or its

13

affiliated entity may not engage in or agree to engage in

14

lobbying for compensation contingent in whole or in part upon

15

the approval, award, receipt or denial of any grant under

16

Chapters 1 through 7 of the H2O PA Act.

17

(c)  Inapplicability.--The provisions of this section shall

18

not apply to an eligible applicant that compensates a person to

19

prepare or assist in the preparation of a grant application and

20

related materials for submission to the authority under the H2O

21

PA Act if the following requirements are met:

22

(1)  The person is not identified in the submitted

23

application.

24

(2)  The person has no direct contact with the authority,

25

unless the person is responding to requests for additional

26

information or clarification.

27

(3)  The person is paid a fixed fee for the preparation

28

or assistance or a percentage of the amount of any grant

29

approved, awarded or received of up to .5%.

30

(d)  Violation.--A violation of this section shall be

- 32 -

 


1

considered an intentional violation of 65 Pa.C.S. § 13A09(e)

2

(relating to penalties).

3

SUBARTICLE I

4

WATER AND SEWER SYSTEMS

5

ASSISTANCE BOND FUND

6

Section 1781-A.  Definitions.

7

The following words and phrases when used in this subarticle

8

shall have the meanings given to them in this section unless the

9

context clearly indicates otherwise:

10

"Assistance Act."  The act of July 9, 2008 (P.L.915, No.64),

11

known as the Water and Sewer Systems Assistance Act.

12

"Fund."  The Water and Sewer Systems Assistance Bond Fund.

13

"Issuing officials."  The Governor, the Auditor General and

14

the State Treasurer.

15

"Nutrient credit."  As defined in the Assistance Act.

16

"Project."  As defined in the Assistance Act.

17

"Municipality."  As defined in the Assistance Act.

18

Section 1782-A.  Water and Sewer Systems Assistance Bond Fund.

19

(a)  Establishment.--The Water and Sewer Systems Assistance

20

Bond Fund, which is created in the State Treasury, shall be the

21

source from which all payments are authorized, with the approval

22

of the Governor, to carry out the purposes of this section and

23

as otherwise provided for in the Assistance Act.

24

(b)  Purpose of fund.--The money in the fund shall only be

25

utilized in accordance with the provisions of the Assistance Act

26

for grants and loans to municipalities, public utilities and

27

other entities implementing eligible projects and for the

28

purchase or trading of nutrient credits.

29

(c)  Exemption.--Money in the fund is exempt and not to be

30

considered under the limitations of section 5(c)(2) of the act

- 33 -

 


1

of March 1, 1988 (P.L.82, No.16), known as the Pennsylvania

2

Infrastructure Investment Authority Act.

3

Section 1783-A.  Commonwealth indebtedness.

4

(a)  Borrowing authorized.--

5

(1)  If the electorate approves a referendum question, in

6

accordance with the provisions of the Assistance Act, for

7

incurring indebtedness in the amount and for the purposes

8

prescribed in the Assistance Act and this article, the

9

issuing officials, pursuant to the provisions of section 7(a)

10

(3) of Article VIII of the Constitution of Pennsylvania, are

11

authorized and directed to borrow, on the credit of the

12

Commonwealth, money not exceeding in the aggregate the sum of

13

$400,000,000, in increments of not more than $150,000,000

14

every year over a three-year period after the effective date

15

of this section, not including money borrowed to refund

16

outstanding bonds, notes or replacement notes, as may be

17

found necessary to carry out the purposes of the Assistance

18

Act.

19

(2)  As evidence of the indebtedness, general obligation

20

bonds of the Commonwealth shall be issued to provide money

21

necessary to carry out the purposes of the Assistance Act for

22

the total amounts, in the form, in the denominations and

23

subject to the terms and conditions of issue, redemption and

24

maturity, rate of interest and time of payment of interest,

25

as the issuing officials direct, except that the latest

26

stated maturity date shall not exceed 20 years from the date

27

of the first obligation issued to evidence the debt.

28

(3)  All bonds and notes issued under the authority of

29

the Assistance Act must bear facsimile signatures of the

30

issuing officials and a facsimile of the Great Seal of the

- 34 -

 


1

Commonwealth and must be countersigned by an authorized

2

officer of an authorized loan and transfer agent of the

3

Commonwealth.

4

(4)  All bonds and notes issued in accordance with the

5

provisions of this section shall be direct obligations of the

6

Commonwealth, and the full faith and credit of the

7

Commonwealth is pledged for the payment of the interest on

8

them, as it becomes due, and for the payment of the principal

9

at maturity. The principal of and interest on the bonds and

10

notes shall be payable in lawful money of the United States.

11

(5)  All bonds and notes issued under the provisions of

12

this section shall be exempt from taxation for State and

13

local purposes.

14

(6)  The bonds may be issued as coupon bonds or

15

registered as to both principal and interest as the issuing

16

officials determine. If interest coupons are attached, they

17

shall contain the facsimile signature of the State Treasurer.

18

(7)  The issuing officials shall provide for amortization

19

of the bonds in substantial and regular amounts over the term

20

of the debt so that the bonds of each issue allocated to the

21

project to be funded from the bond issue shall mature within

22

a period not to exceed the appropriate amortization period

23

for each project as specified by the issuing officials, but

24

in no case in excess of 20 years. The first retirement of

25

principal shall be stated to mature prior to the expiration

26

of a period of time equal to one-tenth of the time from the

27

date of the first obligation issued to evidence the debt to

28

the date of the expiration of the term of the debt.

29

Retirements of principal shall be regular and substantial if

30

made in annual or semiannual amounts, whether by stated

- 35 -

 


1

serial maturities or by mandatory sinking fund retirements.

2

(8)  The issuing officials are authorized to provide by

3

resolution for the issuance of refunding bonds for the

4

purpose of refunding any debt issued under the provisions of

5

the Assistance Act and this article and outstanding, either

6

by voluntary exchange with the holders of the outstanding

7

debt or by providing funds to redeem and retire the

8

outstanding debt with accrued interest, any premium payable

9

on the debt and the costs of issuance and retirement of the

10

debt, at maturity or at any call date. The issuance of the

11

refunding bonds, the maturities and other details of the

12

refunding bonds, the rights of the holders of the refunding

13

bonds and the duties of the issuing official in respect to

14

the refunding bonds shall be governed by the applicable

15

provisions of this section. Refunding bonds, which are not

16

subject to the aggregate limitation of $400,000,000 of debt

17

to be issued under the Assistance Act, may be issued by the

18

issuing officials to refund debt originally issued or to

19

refund bonds previously issued for refunding purposes.

20

(9)  If action is to be taken or decision made by the

21

issuing officials and the issuing officials are not able

22

unanimously to agree, the action or decision of the Governor

23

and either the Auditor General or the State Treasurer shall

24

be binding and final.

25

(b)  Sale of bonds.--

26

(1)  When bonds are issued, they shall be offered for

27

sale at not less than 98% of the principal amount and accrued

28

interest and shall be sold by the issuing officials to the

29

highest and best bidder or bidders after due public

30

advertisement on the terms and conditions and upon open

- 36 -

 


1

competitive bidding as the issuing officials direct. The

2

manner and character of the advertisement and the time of

3

advertising shall be prescribed by the issuing officials. No

4

commission shall be allowed or paid for the sale of any bonds

5

issued under the authority of the Assistance Act and this

6

article.

7

(2)  Any portion of any bond issue so offered and not

8

sold or subscribed for at public sale may be disposed of by

9

private sale by the issuing officials in the manner and at

10

prices, not less than 98% of the principal amount and accrued

11

interest, as the Governor directs. No commission shall be

12

allowed or paid for the sale of any bonds issued under the

13

authority of the Assistance Act.

14

(3)  When bonds are issued, the bonds of each issue shall

15

constitute a separate series to be designated by the issuing

16

officials or may be combined for sale as one series with

17

other general obligation bonds of the Commonwealth.

18

(4)  Until permanent bonds can be prepared, the issuing

19

officials may issue, in lieu of permanent bonds, temporary

20

bonds in the form and with the privileges as to registration

21

and exchange for permanent bonds as determined by the issuing

22

officials.

23

(5)  The proceeds realized from the sale of bonds and

24

notes, except refunding bonds and replacement notes, under

25

the provisions of the Assistance Act and this article shall

26

be paid into the fund. The proceeds shall be paid by the

27

State Treasurer periodically to those Commonwealth officers

28

and Commonwealth agencies authorized to expend them at the

29

times and in the amounts necessary to satisfy the funding

30

needs of those Commonwealth agencies. The proceeds of the

- 37 -

 


1

sale of refunding bonds and replacement notes shall be paid

2

to the State Treasurer and applied to the payment of

3

principal, any accrued interest and premium and the cost of

4

redemption of the bonds and notes for which the obligations

5

shall have been issued.

6

(6)  Pending application for the purposes authorized,

7

money held or deposited by the State Treasurer may be

8

invested or reinvested as are other funds in the custody of

9

the State Treasurer in the manner provided by law. All

10

earnings received from the investment or deposit of the funds

11

shall be paid into the State Treasury to the credit of the

12

fund. The earnings in excess of bond discounts allowed,

13

expenses paid for the issuance of bonds and notes and

14

interest arbitrage rebates due to the Federal Government

15

shall be transferred annually to the fund. Any interest or

16

investment income shall be applied to assist in the payment

17

of the debt service incurred in connection with the

18

Assistance Act and this article.

19

(7)  The Auditor General shall prepare the necessary

20

registry book to be kept in the office of the authorized loan

21

and transfer agent of the Commonwealth for the registration

22

of any bonds, at the request of owners of the bonds,

23

according to the terms and conditions of issue directed by

24

the issuing officials.

25

(8)  There is appropriated to the State Treasurer from

26

the fund as much money as may be necessary for all costs and

27

expenses in connection with the issue of and sale and

28

registration of the bonds and notes in connection with the

29

Assistance Act and this article and the payment of interest

30

arbitrage rebates or proceeds of the bonds and notes.

- 38 -

 


1

(c)  Temporary financing authorization.--

2

(1)  Pending the authorized issuance of bonds of the

3

Commonwealth, the issuing officials are authorized, in

4

accordance with the provisions of the Assistance Act and this

5

article and on the credit of the Commonwealth, to make

6

temporary borrowings not to exceed three years in

7

anticipation of the issue of bonds in order to provide funds

8

in the amounts deemed advisable prior to the issue of bonds.

9

In order to provide for and in connection with the temporary

10

borrowings, the issuing officials are authorized in the name

11

and on behalf of the Commonwealth to enter into any purchase,

12

loan or credit agreement or other agreement with any bank,

13

trust company or other lending institution, investment

14

banking firm or person, in the United States having power to

15

enter into the agreement. The agreement may contain

16

provisions which are not inconsistent with the provisions of

17

the Assistance Act or this article and authorized by the

18

issuing officials.

19

(2)  All temporary borrowings made under this section

20

shall be evidenced by notes of the Commonwealth, which shall

21

be issued for amounts not exceeding in the aggregate the

22

applicable statutory and constitutional debt limitation in

23

the form and denominations and subject to terms and

24

conditions of sale and issue, prepayment or redemption and

25

maturity, rate of interest and time of payment of interest as

26

the issuing officials authorize and direct in accordance with

27

the Assistance Act and this article. The authorization and

28

direction may provide for the subsequent issuance of

29

replacement notes to refund outstanding notes or replacement

30

notes. The replacement notes shall, upon issuance, evidence

- 39 -

 


1

the borrowing and may specify other terms and conditions with

2

respect to the notes and replacement notes as the issuing

3

officials determine and direct.

4

(3)  If the authorization and direction of the issuing

5

officials provide for the issuance of replacement notes, the

6

following shall apply:

7

(i)  The issuing officials may, on behalf of the

8

Commonwealth, issue, enter into or authorize and direct

9

the State Treasurer to enter into an agreement with any

10

bank, trust company, investment banking firm or other

11

institution or person, in the United States having the

12

power to enter the agreement:

13

(A)  To purchase or underwrite an issue or series

14

of issues or notes.

15

(B)  To credit, enter into a purchase, loan or

16

credit agreement, draw money pursuant to the

17

agreement on the terms and conditions set forth in

18

the agreement and issue notes as evidence of

19

borrowings made under the agreements.

20

(C)  To appoint an issuing and payment agent or

21

agents with respect to the notes.

22

(D)  To do other acts necessary or appropriate to

23

provide for the payment, when due, of the interest on

24

and the principal of the notes.

25

(ii)  The agreements may provide for the compensation

26

of purchasers or underwriters of notes or replacement

27

notes by discounting the purchase price of the notes or

28

by payment of a fixed fee or commission at the time of

29

issuance. All other costs and expenses, including fees

30

for agreements related to the notes, issuing and paying

- 40 -

 


1

agent costs and costs and expenses of issuance, may be

2

paid from the proceeds of the notes.

3

(4)  If the issuing officials provide for the issuance of

4

replacement notes all subject to the authorization and

5

direction of the issuing officials, the following apply:

6

(i)  At or prior to the time of delivery of the notes

7

or replacement notes, the State Treasurer shall determine

8

the principal amount, date of issue, interest rate or

9

procedure for establishing interest rate, rate of

10

discount, denominations and all other terms and

11

conditions relating to the issuance.

12

(ii)  The State Treasurer shall perform all acts

13

necessary to pay or cause to be paid, when due, all

14

principal of and interest on the notes being refunded by

15

replacement notes and to assure that the replacement

16

notes may draw upon any money available for that purpose

17

pursuant to any purchase, loan or credit agreement

18

established with respect to the replacement notes.

19

(5)  Outstanding notes evidencing the borrowings may be

20

funded and retired by the issuance and sale of the bonds of

21

the Commonwealth as authorized in this subarticle. The

22

refunding bonds shall be issued and sold no later than a date

23

three years after the date of issuance of the first notes

24

evidencing the borrowings to the extent that payment of the

25

notes has not otherwise been made or provided for by sources

26

other than proceeds of replacement notes.

27

(6)  The proceeds of all the temporary borrowing shall be

28

paid to the State Treasurer to be held and disposed of in

29

accordance with the provisions of the Assistance Act and this

30

article.

- 41 -

 


1

(d)  Debt retirement.--

2

(1)  All bonds issued under the Assistance Act and this

3

article shall be redeemed at maturity, together with all

4

interest due on the bonds; and these principal and interest

5

payments shall be paid from the Water and Sewer Systems

6

Assistance Bond Sinking Fund, which is created. For the

7

specific purpose of redeeming the bonds at maturity and

8

paying all interest on the bonds in accordance with the

9

information received from the Governor, the General Assembly

10

shall appropriate money to the Water and Sewer Systems

11

Assistance Bond Sinking Fund for the payment of interest on

12

the bonds and notes and their principal at maturity. All

13

money paid into the Water and Sewer Systems Assistance Bond

14

Sinking Fund and all of the money not necessary to pay

15

accruing interest shall be invested by the State Treasurer in

16

the securities as are provided by law for the investment of

17

the sinking funds of the Commonwealth.

18

(2)  The State Treasurer, with the approval of the

19

Governor, may use any of the money in the fund not necessary

20

to conduct the referendum authorizing the indebtedness

21

necessary to carry out the Assistance Act and this article to

22

purchase and retire of all or part of the bonds and notes

23

issued pursuant to the Assistance Act and this article. If

24

all or part of the bonds and notes are purchased, they shall

25

be canceled and returned to the loan and transfer agent as

26

canceled and paid bonds and notes. Following the purchase,

27

all payments of interest on the bonds and notes shall cease.

28

The canceled bonds, notes and coupons, together with any

29

other canceled bonds, notes and coupons, shall be destroyed

30

as promptly as possible, but no later than two years after

- 42 -

 


1

cancellation. A certification evidencing the destruction of

2

the canceled bonds, notes and coupons shall be provided by

3

the loan and transfer agent to the issuing officials. All

4

canceled bonds, notes and coupons shall be marked to make the

5

canceled bonds, notes and coupons nonnegotiable.

6

(3)  The State Treasurer shall determine and report to

7

the Secretary of the Budget by November 1 of each year the

8

amount of money necessary for the payment of interest on

9

outstanding obligations and the principal of the obligations,

10

if any, for the following fiscal year and the times and

11

amounts of the payments. The Governor shall include in every

12

budget submitted to the General Assembly full information

13

relating to the issuance of bonds and notes under the

14

Assistance Act and this article and the status of the Water

15

and Sewer Systems Assistance Bond Sinking Fund for the

16

payment of interest on the bonds and notes and their

17

principal at maturity.

18

(4)  The General Assembly shall appropriate an amount

19

equal to the sums necessary to meet repayment obligations for

20

principal and interest for deposit into the Water and Sewer

21

Systems Assistance Bond Sinking Fund.

22

(e)  Expiration.--Authorization to issue bonds and notes, not

23

including refunding bonds and replacement notes, for the purpose

24

of the Assistance Act and this article shall expire ten years

25

from the effective date of this section.

26

Section 4.  Sections 1721-E, 1722-E, 1723-E, 1733-E and 1735-

27

E of the act, added July 17, 2007 (P.L.141, No.42), are amended

28

to read:

29

Section 1721-E.  Department of Corrections [(Reserved)].

30

The following shall apply to appropriations for the

- 43 -

 


1

Department of Corrections:

2

(1)  When making expenditures from appropriations for the

3

operation of State correctional institutions, the Department

4

of Corrections shall give consideration to minimum relief

5

factor values calculated when determining staffing levels for

6

corrections officers and food service instructors at each

7

State correctional institution.

8

(2)  (Reserved).

9

Section 1722-E.  Department of Education [(Reserved)].

10

(a)  General rule.--For the 2010-2011 school year and every

11

school year thereafter, payments under section 1376.1(b.2) of

12

the act of March 10, 1949 (P.L.30, No.14), known as the Public

13

School Code of 1949, for a chartered school that establishes a

14

satellite campus with the approval of the department for the

15

purpose of enrolling students previously enrolled in a school

16

for the deaf formerly operated by the Commonwealth shall, in

17

addition to any amount otherwise calculated under section

18

1376.1(b.2), include the amount provided in fiscal year

19

2009-2010 pursuant to section 1722-J(10)(ii). The total shall be

20

subject to the annual adjustment under section 1376.1(b.2)(1) of

21

the Public School Code of 1949.

22

(b)  Additional funding.--For the 2010-2011 and 2011-2012

23

school years, in addition to any other funds provided to it, the

24

department shall provide to a chartered school that establishes

25

a satellite campus with approval of the department for the

26

purpose of enrolling students previously enrolled in a school

27

for the deaf formerly operated by the Commonwealth, out of funds

28

appropriated to the department, an amount equal to $500,000

29

annually to the extent appropriated by the General Assembly.

30

Section 1723-E.  Department of Environmental Protection

- 44 -

 


1

[(Reserved)].

2

The Department of Environmental Protection may assess a fee

3

to applicants who apply for funds under section 306 of the act

4

of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known as the

5

Alternative Energy Investment Act. The department shall publish

6

the fee on its publicly accessible Internet website. Proceeds

7

from the fee shall be used to administer the provision of loans,

8

grants, reimbursements or rebates under section 306 of the

9

Alternative Energy Investment Act. No fee authorized under this

10

section may exceed $150 for commercial applicants and $100 for

11

residential applicants.

12

Section 1733-E.  Pennsylvania State Police [(Reserved)].

13

The following shall apply to appropriations for the

14

Pennsylvania State Police:

15

(1)  The Pennsylvania State Police may not close a

16

barracks until the Pennsylvania State Police conducts a

17

public hearing and provides 30 days' notice, which shall be

18

published in the Pennsylvania Bulletin and in at least two

19

local newspapers.

20

(2)  (Reserved).

21

Section 1735-E.  Pennsylvania Emergency Management Agency

22

[(Reserved)].

23

The Pennsylvania Emergency Management Agency shall provide

24

semiannual reports of all grants awarded by the Pennsylvania

25

Emergency Management Agency from Federal disaster assistance or

26

relief funds, homeland security and defense funds, avian

27

flu/pandemic preparedness or other public health emergency funds

28

to the chairman and minority chairman of the Appropriations

29

Committee of the Senate and the chairman and minority chairman

30

of the Appropriations Committee of the House of Representatives.

- 45 -

 


1

The reports shall include information relating to the entity

2

receiving grant money from the agency, including the name and

3

address of the entity, the amount of the grant, the date of

4

issuance and the purpose of the grant. Reports shall be

5

submitted by August 15 for grants awarded during the period from

6

January 1 through June 30 and by February 15 for grants awarded

7

during the period from July 1 through December 31.

8

Section 5.  The act is amended by adding articles to read:

9

ARTICLE XVII-J

10

2009-2010 BUDGET IMPLEMENTATION

11

SUBARTICLE A

12

PRELIMINARY PROVISIONS

13

Section 1701-J.  Applicability.

14

Except as specifically provided in this article, this article

15

applies to the General Appropriation Act of 2009, the

16

Supplemental Appropriation Act of 2009 and, as appropriate, all

17

other appropriation acts of 2009.

18

Section 1702-J.  Definitions and abbreviations.

19

(a)  Definitions.--The following words and phrases when used

20

in this article shall have the meanings given to them in this

21

section unless the context clearly indicates otherwise:

22

"General Appropriation Act."  The act of August 5, 2009 (P.L.

23

, No.1A), known as the General Appropriation Act of 2009, and

24

the act of      , 2009 (P.L.    , No.    ), known as the

25

Supplemental Appropriation Act of 2009.

26

"Secretary."  The Secretary of the Budget of the

27

Commonwealth.

28

(b)  Abbreviations.--The following abbreviations when used in

29

this article shall have the meanings given to them in this

30

section:

- 46 -

 


1

"AIDS."  Acquired Immune Deficiency Syndrome.

2

"ARC."  Appalachian Regional Commission.

3

"ARRA."  The American Recovery and Reinvestment Act of 2009

4

(Public Law 111-5, 123 Stat. 115).

5

"BG."  Block Grant.

6

"CCDFBG."  Child Care and Development Fund Block Grant.

7

"Chartered school."  A school chartered by the Commonwealth.

8

"CSBG."  Community Services Block Grant.

9

"DCSI."  Drug Control and Systems Improvement Formula Grant

10

Program.

11

"DFSC."  The Safe and Drug-Free Schools and Communities Act

12

(Public Law 107-110, 20 U.S.C. § 7101 et seq.).

13

"DOE."  Department of Energy.

14

"EEOC."  Equal Employment Opportunity Commission.

15

"EPA."  Environmental Protection Agency.

16

"ESEA."  The Elementary and Secondary Education Act of 1965

17

(Public Law 89-10, 20 U.S.C. § 6301 et seq.).

18

"FEMA."  Federal Emergency Management Agency.

19

"FTA."  Federal Transit Administration.

20

"HUD."  Department of Housing and Urban Development.

21

"LIHEABG."  Low-Income Home Energy Assistance Block Grant.

22

"LSTA."  The Library Services and Technology Act (Public Law

23

104-208, 20 U.S.C. § 9101 et seq.).

24

"MCHSBG."  Maternal and Child Health Services Block Grant.

25

"MHSBG."  Mental Health Services Block Grant.

26

"MR."  Mental Retardation.

27

"PAFE."  Pennsylvania Agricultural Food Exposition.

28

"PHHSBG."  Preventive Health and Health Services Block Grant.

29

"RSAT."  Residential Substance Abuse Treatment.

30

"SABG."  Substance Abuse Block Grant.

- 47 -

 


1

"SCDBG."  Small Communities Development Block Grant.

2

"SDA."  Service Delivery Area.

3

"SSBG."  Social Services Block Grant.

4

"TANF."  Temporary Assistance for Needy Families.

5

"TANFBG."  Temporary Assistance for Needy Families Block

6

Grant.

7

"TEFAP."  Temporary Emergency Food Assistance Program.

8

"WIA."  The Workforce Investment Act of 1998 (Public Law

9

105-220, 112 Stat. 936).

10

"WIC."  Women, Infants and Children Program.

11

Section 1703-J.  Warrants (Reserved).

12

SUBARTICLE B

13

EXECUTIVE DEPARTMENT

14

Section 1711-J.  Governor (Reserved).

15

Section 1712-J.  Executive Offices.

16

The following shall apply to appropriations for the Executive

17

Offices:

18

(1)  Funds appropriated for public television station

19

grants shall be paid in an amount equal to the formula award

20

amount determined by the Pennsylvania Public Television

21

Commission for fiscal year 2008-2009. If insufficient funds

22

are appropriated, such payments shall be paid on a pro rata

23

basis.

24

(2)  (Reserved).

25

Section 1713-J.  Lieutenant Governor (Reserved).

26

Section 1714-J.  Attorney General (Reserved).

27

Section 1715-J.  Auditor General (Reserved).

28

Section 1716-J.  Treasury Department (Reserved).

29

Section 1717-J.  Department of Aging (Reserved).

30

Section 1718-J.  Department of Agriculture (Reserved).

- 48 -

 


1

Section 1719-J.  Department of Community and Economic

2

Development.

3

The sum of $12,000,000 shall be transferred from the Small

4

Business First Fund to the Machinery and Equipment Loan Fund to

5

be used in accordance with 12 Pa.C.S. § 2905 (relating to

6

eligibility for loans; terms and conditions).

7

Section 1720-J.  Department of Conservation and Natural

8

Resources (Reserved).

9

Section 1721-J.  Department of Corrections (Reserved).

10

Section 1722-J.  Department of Education.

11

The following shall apply to appropriations for the

12

Department of Education from the General Appropriation Act:

13

(1)  Notwithstanding any other provision of law, funds

14

received under the ARRA shall be spent in accordance with the

15

ARRA and applicable rules and guidelines developed by the

16

Federal Government.

17

(2)  Notwithstanding any other provision of law, a board

18

of school directors of a school district may reopen its

19

2009-2010 budget to reflect Federal and State allocations for

20

fiscal year 2009-2010 provided by the General Appropriation

21

Act.

22

(3)  Annual payments from the appropriation to

23

institutions of higher learning for defraying the expenses of

24

hearing-impaired or sight-impaired students shall not exceed

25

$500 per student.

26

(4)  Notwithstanding any other provision of law, Federal

27

and State funds shall be distributed to each community

28

college in an amount equal to the amount paid under section

29

1913-A(b)(1.6) of the act of March 10, 1949 (P.L.30, No.14),

30

known as the Public School Code of 1949, during the 2008-2009

- 49 -

 


1

fiscal year. If insufficient funds are appropriated, the

2

payments shall be made on a pro rata basis.

3

(5)  Funds appropriated for special education payments to

4

school districts shall be distributed to each school district

5

in an amount equal to the amount paid during the 2008-2009

6

school year under section 2509.5(zz) of the Public School

7

Code of 1949. If insufficient funds are appropriated, the

8

payments shall be made on a pro rata basis.

9

(6)  (i)  Funds appropriated for the Educational

10

Assistance Program shall be distributed to each school

11

entity in an amount equal to the amount paid during the

12

2008-2009 school year. If insufficient funds are

13

appropriated, the payments shall be made on a pro rata

14

basis.

15

(ii)  For purposes of the Educational Assistance

16

Program established in section 1502-C of the Public

17

School Code of 1949 and this paragraph, "school entity"

18

shall mean any of the following located in this

19

Commonwealth: a school district, joint school district,

20

area vocational-technical school or independent school.

21

(7)  Funds appropriated for Pennsylvania accountability

22

grants shall be distributed to each school district in an

23

amount equal to the amount paid during the 2008-2009 school

24

year. If insufficient funds are appropriated, the payments

25

shall be made on a pro rata basis.

26

(8)  The following shall apply to professional and

27

temporary professional employees of a school formerly

28

operated by the Commonwealth:

29

(i)  The Commonwealth shall create a pool for each

30

school comprised of the professional and temporary

- 50 -

 


1

professional employees who have received formal notice of

2

suspension from the Commonwealth as a result of the

3

Commonwealth's decision to cease Commonwealth operation

4

of the school.

5

(ii)  For the three school years immediately

6

following the formal notice of suspension from the

7

Commonwealth, employees in a pool created under

8

subparagraph (i) shall be offered employment by each

9

eligible school entity as determined under subparagraph

10

(iv) associated with the applicable pool created under

11

subparagraph (i), when that eligible school entity has a

12

vacancy for a position that an employee in the applicable

13

pool is properly certified to fill, provided that no

14

employee of the eligible school entity in which the

15

vacancy exists, including a suspended or demoted

16

employee, has a right to the vacancy under the Public

17

School Code of 1949 or the collective bargaining

18

agreement of the respective eligible school entity.

19

(iii)  For the three school years immediately

20

following the formal notice of suspension from the

21

Commonwealth, no new employee shall be hired by an

22

eligible school entity as determined under subparagraph

23

(iv) associated with the applicable pool created under

24

subparagraph (i), until the position has been offered, in

25

order of seniority, to all properly certified members of

26

the applicable pool created under subparagraph (i).

27

(iv)  For the purpose of subparagraphs (ii) and

28

(iii), an "eligible school entity" shall be determined as

29

follows:

30

(A)  a school district, vocational-technical

- 51 -

 


1

school or intermediate unit, the administration

2

building of which is 17 miles or less from the

3

administration building of a school formerly operated

4

by the Commonwealth or which is adjacent to the

5

school district in which a school formerly operated

6

by the Commonwealth was situate; or

7

(B)  a school district with average daily

8

membership greater than or equal to 8,000, the

9

administration building of which is 45 miles or less

10

from the administration building of a school formerly

11

operated by the Commonwealth, and which relies on

12

State revenue for no less than 50% of the school

13

district's total budget in the most recent year for

14

which data has been published on the Department of

15

Education's public Internet website.

16

(9)  (i)  Employees hired from a pool under paragraph (8)

17

and former employees of a school formerly operated by the

18

Commonwealth who resigned from a school formerly operated

19

by the Commonwealth within the six months prior to the

20

effective date of an act of the General Assembly

21

declining to fund the school and who accepted employment

22

at a school district, intermediate unit or vocational-

23

technical school shall be credited by the hiring school

24

district, intermediate unit or vocational-technical

25

school for all sick leave accumulated in the school and

26

shall be credited for years of service in the school for

27

purposes of salary schedule placement. Employees shall

28

further be credited for their years of service in the

29

school for purposes of sabbatical leave eligibility,

30

suspension and realignment rights and eligibility for any

- 52 -

 


1

retirement incentives or severance payments in a hiring

2

school district, intermediate unit or vocational-

3

technical school.

4

(ii)  Nothing in this paragraph shall be construed to

5

supersede or preempt any provision of an individual

6

employment agreement between a school district,

7

intermediate unit or vocational-technical school and an

8

employee entered into prior to the effective date of this

9

paragraph, or any provision of a collective bargaining

10

agreement in effect as of the effective date of this

11

paragraph and negotiated by a school entity and an

12

exclusive representative of the employees in accordance

13

with the act of July 23, 1970 (P.L.563, No.195), known as

14

the Public Employe Relations Act.

15

(10)  The appropriation for the Scranton State School for

16

the Deaf - Transition funding shall be distributed as

17

follows:

18

(i)  In addition to any other funding provided

19

pursuant to section 1376.1(b.2) of the Public School Code

20

of 1949, the Department of Education shall provide to

21

each chartered school in the 2009-2010 school year for

22

enrollment during the 2009-2010 school year for one or

23

more students who were enrolled as of May 1, 2009, in a

24

school for the deaf formerly operated by the

25

Commonwealth, an amount equal to the product of the

26

following:

27

(A)  The number of students enrolled in the

28

chartered school as of October 1, 2009, who were

29

enrolled as of May 1, 2009, in a school for the deaf

30

formerly operated by the Commonwealth, divided by the

- 53 -

 


1

total number of such students enrolled in all

2

chartered schools as of October 1, 2009, who were

3

enrolled as of May 1, 2009, in a school for the deaf

4

formerly operated by the Commonwealth.

5

(B)  Three million three hundred thousand

6

dollars.

7

(ii)  In addition to any other funds provided to a

8

chartered school under subparagraph (i), the department

9

shall provide to each chartered school that establishes a

10

satellite campus with approval of the department for the

11

purpose of enrolling students previously enrolled in a

12

school for the deaf formerly operated by the

13

Commonwealth, the amount of $27,273 multiplied by the

14

number of students enrolled in the chartered school as of

15

October 1, 2009, who were enrolled as of May 1, 2009, in

16

a school for the deaf formerly operated by the

17

Commonwealth, provided that the total amount under this

18

subparagraph shall not exceed $2,100,000.

19

(11)  The Department of Education, with assistance from

20

the Department of Public Welfare and the Juvenile Court

21

Judges Commission, shall submit a report to the General

22

Assembly by June 1, 2010, detailing the costs to school

23

districts and the Commonwealth to provide educational

24

services to children who are adjudicated delinquent and

25

committed to nonpublic residential facilities pursuant to 42

26

Pa.C.S. § 6352 (relating to disposition of delinquent child)

27

for the 2008-2009 school year. The report shall identify the

28

following information relating to each facility:

29

(i)  Facility location.

30

(ii)  School district where each facility is located.

- 54 -

 


1

(iii)  Provider of educational services at each

2

facility, including whether those services are under

3

contract or provided by an entity other than the

4

facility.

5

(iv)  Department of Education's classification of the

6

education program at each facility.

7

(v)  Number of students committed by the court

8

receiving educational services at each facility.

9

(vi)  School district of residence for each student

10

committed by the court at each facility.

11

(vii)  Tuition fee charged by the educational

12

services provider per student committed by the court at

13

each facility.

14

(viii)  Entity responsible for each tuition payment

15

for each student committed by the court at each facility.

16

The term "facility" shall mean any nonpublic program

17

supervised or licensed pursuant to the act of June 13, 1967

18

(P.L.31, No.21), known as the Public Welfare Code, that

19

provides out-of-home, residential services to a child who is

20

adjudicated delinquent.

21

(12)  (i)  Each school district shall take such steps as

22

necessary during fiscal year 2009-2010 in order to have

23

or maintain a certified safety committee by December 31,

24

2010, for the purposes of section 1002(b) of the act of

25

June 2, 1915 (P.L.736, No.338), known as the Workers'

26

Compensation Act. The Department of Labor and Industry

27

shall provide the Department of Education with the list

28

of school districts who have a certified safety

29

committee. In the case of a school district that does not

30

submit evidence to the Department of Education that

- 55 -

 


1

complies with this paragraph, the Department of Education

2

shall deduct from any allocation from the Commonwealth to

3

which the school district is entitled the amount of the

4

discount the school district would otherwise receive

5

under section 1002(b) of the Workers' Compensation Act.

6

(ii)  Subparagraph (i) shall not apply to a school

7

district that cannot receive a premium discount under

8

section 1002(b) of the Workers' Compensation Act, or an

9

equivalent reduction in contribution rates, by

10

establishing and maintaining a certified safety committee

11

because it is authorized to self-insure its liabilities

12

under section 305 of the Workers' Compensation Act or

13

pool its liabilities under section 802 of the Workers'

14

Compensation Act.

15

(13)  Notwithstanding the provisions of 24 Pa.C.S. §

16

8329(a) (relating to payments on account of social security

17

deductions from appropriations) when calculating payments by

18

the Commonwealth under 24 Pa.C.S. § 8329, the Department of

19

Education shall treat wages paid out of the ARRA State

20

Stabilization Fund or out of ARRA funds appropriated for

21

Individual with Disabilities Education (Part B - Preschool -

22

Age 3-5) as covered wages which are not federally funded.

23

(14)  The following apply to libraries:

24

(i)  Funds appropriated for libraries shall be

25

distributed to each library under the following formula:

26

(A)  Divide the sum of the amount of funding that

27

the library received in fiscal year 2007-2008 under

28

section 2316 of the Public School Code of 1949 by the

29

total State-aid subsidy for fiscal year 2007-2008.

30

(B)  Multiply the quotient under clause (A) by

- 56 -

 


1

the total State-aid subsidy for 2009-2010.

2

(ii)  Following distribution of funds appropriated

3

for State aid to libraries, any remaining funds may be

4

distributed at the discretion of the State Librarian.

5

(iii)  If funds appropriated for State aid to

6

libraries in fiscal year 2009-2010 are less than funds

7

appropriated in fiscal year 2002-2003, the State

8

Librarian may waive standards as prescribed in section

9

103 of the act of June 14, 1961 (P.L.324, No.188), known

10

as The Library Code, relating to hours of operation,

11

continuing professional development, collections,

12

expenditures and other aspects of library operation.

13

(iv)  (A)  Each library system receiving State aid

14

under this subsection may distribute the local

15

library share of that aid in a manner as determined

16

by the board of directors of the library system.

17

(B)  This subparagraph shall not apply to a

18

library system operating in a county of the second

19

class.

20

(15)  (i)  The Department of Education may utilize up to

21

$4,500,000 of undistributed funds not expended,

22

encumbered or committed from appropriations for grants

23

and subsidies made to the department to assist school

24

districts certified as an education empowerment district

25

under section 1705-B(h)(3) of the Public School Code of

26

1949.

27

(ii)  There is hereby established a restricted

28

account in the State Treasury from which payments under

29

this paragraph shall be paid. Funds shall be transferred

30

by the Secretary of the Budget to the restricted account

- 57 -

 


1

to the extent necessary to make payments under this

2

paragraph. Funds in the restricted account are hereby

3

appropriated to carry out the purposes of this paragraph.

4

The subsidy payment from this restricted account shall be

5

utilized to supplement the operational budget of the

6

eligible school districts.

7

(16)  Notwithstanding section 2510.1 of the Public School

8

Code of 1949, payments made to school districts for the

9

instruction of homebound children shall only be made to the

10

extent funds are appropriated for this purpose.

11

(17)  The appropriation for basic education funding shall

12

be distributed as follows:

13

(i)  The Commonwealth shall pay to each school

14

district a basic education funding allocation for the

15

2008-2009 school year which shall consist of the sum of

16

the following:

17

(A)  An amount equal to the allocations received

18

by the school district for the 2007-2008 school year

19

under section 2502.48(d)(1) and (2) and (e) of the

20

Public School Code of 1949.

21

(B)  If a school district has been declared a

22

Commonwealth partnership school district under

23

Article XVII-B of the Public School Code of 1949, an

24

amount equal to $2,000,000.

25

(C)  (I)  For a school district subject to

26

section 2502.48(d)(3)(i) of the Public School

27

Code of 1949, 27.82% of the amount determined

28

under section 2502.48(c)(1) of the Public School

29

Code of 1949.

30

(II)  For a school district subject to

- 58 -

 


1

section 2502.48(d)(3)(ii) of the Public School

2

Code of 1949, 21.4% of the amount determined

3

under section 2502.48(c)(1) of the Public School

4

Code of 1949.

5

(III)  Any additional amount required so that

6

the total amount provided under clause (A) and

7

this clause equals 2% greater than the amount

8

provided under section 2502.48(d) and (e) of the

9

Public School Code of 1949.

10

(ii)  For the purpose of the calculation under

11

section 2502.48(c)(1) of the Public School Code of 1949,

12

for payments made under this subsection:

13

(A)  The amount per student under section

14

2502.48(a) of the Public School Code of 1949 shall be

15

increased by the index for the school year in which

16

funding will be paid. The term "index" shall have the

17

meaning given to it under section 2501 of the Public

18

School Code of 1949.

19

(B)  The number used for the purpose of each

20

school district's calculation under section

21

2502.48(b)(5)(ii)(B) of the Public School Code of

22

1949 shall not be less than one.

23

(iii)  Any increase in basic education funding under

24

this subsection shall qualify as an increase in basic

25

education funding for the purpose of section 2502.49 of

26

the Public School Code of 1949. The Department of

27

Education may grant a waiver for the use of up to 25% of

28

the funds subject to section 2502.49(a)(1) of the Public

29

School Code of 1949 if all of the following apply:

30

(A)  The school district would otherwise be

- 59 -

 


1

required to reduce or eliminate one or more of the

2

programs listed under section 2502.49(a)(1) of the

3

Public School Code of 1949 due to a projected budget

4

shortfall.

5

(B)  The funds subject to the waiver will be used

6

to maintain one or more existing programs listed

7

under section 2502.49(a)(1) of the Public School Code

8

of 1949.

9

(C)  The school district has, in the

10

determination of the Department of Education, pursued

11

alternative opportunities for greater efficiency and

12

internal savings in order to fund the program or

13

programs without need for a waiver.

14

(D)  The program to be maintained addresses a

15

significant need of the school district's students

16

and has demonstrated effectiveness at increasing

17

student achievement in the school district, in the

18

determination of the Department of Education.

19

(iv)  The decision to grant a waiver shall be at the

20

sole discretion of the Department of Education and shall

21

not be subject to appeal.

22

(18)  Community colleges shall comply with the

23

provisions of section 1737-J.

24

(b)  Definitions.--The words and phrases used in this section

25

shall have the meanings given to them in the Public School Code

26

of 1949.

27

Section 1723-J.  Department of Environmental Protection.

28

The following shall apply to appropriations for the

29

Department of Environmental Protection in the General

30

Appropriation Act:

- 60 -

 


1

(1)  Appropriations include funds for the Water Resources

2

Technical Assistance Center in an amount to be determined by

3

the department in cooperation with the Water Conservation

4

Subcommittee of the Statewide Water Resources Committee.

5

(2)  Notwithstanding the provisions of section 502 of the

6

act of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known as

7

the Alternative Energy Investment Act, in fiscal year

8

2009-2010, no funds shall be appropriated from the General

9

Fund to the department for the Consumer Energy Program. The

10

appropriation for fiscal year 2009-2010 is revoked.

11

Section 1724-J.  Department of General Services (Reserved).

12

Section 1725-J.  Department of Health.

13

The following shall apply to appropriations for the

14

Department of Health in the General Appropriation Act:

15

(1)  Funds appropriated for lupus programs shall be

16

distributed in the same proportion as distributed in fiscal

17

year 2007-2008.

18

(2)  Funds appropriated for arthritis outreach and

19

education shall be equitably distributed among the central,

20

western and eastern regions of this Commonwealth based on the

21

ratio of population served in each region to the total

22

population served in this Commonwealth.

23

(3)  Funds appropriated for biotechnology research

24

include $1,100,000 for a regenerative medicine center located

25

in a county of the second class and $1,500,000 for an

26

institution for hepatitis and virus research located in

27

county of the second class-A, which conducts research related

28

to developing new therapies for viral hepatitis and liver

29

cancer.

30

Section 1726-J.  Insurance Department (Reserved).

- 61 -

 


1

Section 1727-J.  Department of Labor and Industry.

2

The following shall apply to appropriations for the

3

Department of Labor and Industry in the General Appropriation

4

Act:

5

(1)  The appropriation for payment to the Vocational

6

Rehabilitation Fund for work of the State Board of Vocational

7

Rehabilitation includes $2,153,000 for a Statewide

8

professional service provider association for the blind to

9

provide specialized services and prevention of blindness

10

services and $431,000 to provide specialized services and

11

prevention of blindness services in cities of the first

12

class.

13

(2)  For the "Reed Act-Unemployment Insurance" and "Reed

14

Act-Employment Services and Unemployment Insurance"

15

appropriations, the total amount which may be obligated shall

16

not exceed the limitations under section 903 of the Social

17

Security Act (49 Stat. 620, 42 U.S.C. § 1103).

18

Section 1728-J.  Department of Military and Veterans Affairs

19

(Reserved).

20

Section 1729-J.  Department of Public Welfare.

21

The following shall apply to appropriations for the

22

Department of Public Welfare from the General Appropriation Act:

23

(1)  Authorized transfers for child-care services. The

24

following shall apply:

25

(i)  The department, upon approval of the secretary,

26

may transfer Federal funds appropriated for TANFBG Child

27

Care Assistance to the CCDFBG Child Care Services

28

appropriation to provide child-care services to

29

additional low-income families if the transfer of funds

30

will not result in a deficit in the appropriation. The

- 62 -

 


1

secretary shall provide notice ten days prior to a

2

transfer under this subparagraph to the chairman and

3

minority chairman of the Appropriations Committee of the

4

Senate and the chairman and minority chairman of the

5

Appropriations Committee of the House of Representatives.

6

(ii)  The department, upon approval of the secretary,

7

may transfer Federal funds appropriated for CCDFBG Child

8

Care Assistance to the CCDFBG Child Care Services

9

appropriation to provide child-care services to

10

additional low-income families provided that the transfer

11

of funds will not result in a deficit in the

12

appropriation. The secretary shall provide notice ten

13

days prior to a transfer under this subparagraph to the

14

chairman and minority chairman of the Appropriations

15

Committee of the Senate and the chairman and minority

16

chairman of the Appropriations Committee of the House of

17

Representatives.

18

(2)  Federal and State medical assistance payments. The

19

following shall apply:

20

(i)  When making payments for medical assistance

21

outpatient or capitation services, the department shall

22

not require a recipient to obtain a physician referral in

23

order to receive chiropractic services.

24

(ii)  No funds appropriated for approved capitation

25

plans shall be used to pay a provider who fails to supply

26

information in a form required by the department in order

27

to facilitate claims for Federal financial participation

28

for services rendered to general assistance clients.

29

(iii)  For fiscal year 2009-2010, additional Federal

30

and State inpatient funding is included to provide for

- 63 -

 


1

Community Access Fund payments. Payments to hospitals for

2

Community Access Fund grants shall be distributed under

3

the formulas utilized for these grants in fiscal year

4

2008-2009. If the total funding available for Community

5

Access Fund payments in fiscal year 2009-2010 is less

6

than that available in fiscal year 2008-2009, payments

7

shall be made on a pro rata basis.

8

(iv)  Qualifying State-related academic medical

9

centers shall not receive any less funding than received

10

for the fiscal year 2004-2005 State appropriation level

11

if Federal funding for academic medical centers is not

12

made available to those academic medical centers during

13

fiscal year 2009-2010.

14

(v)  If supplemental Federal funding for physician

15

practice plans is not made available during fiscal year

16

2009-2010, qualifying universities and affiliated

17

physician practice plans shall not receive any less

18

funding than the amount received for the fiscal year

19

2007-2008 State appropriation level.

20

(vi)  Funds appropriated for medical assistance

21

transportation shall only be utilized as a payment of

22

last resort for transportation for eligible medical

23

assistance recipients.

24

(vii)  The department shall consider pharmaceutical

25

services a covered benefit for recipients who are

26

eligible for such services and whose care is managed

27

through contracts between the department and managed care

28

contractors. Pharmaceutical benefits shall remain a

29

covered benefit in the contracts between the department

30

and managed care contractors for fiscal years 2008-2009

- 64 -

 


1

and 2009-2010. If the department elects to bid a contract

2

for fiscal year 2010-2011 that does not include

3

pharmaceutical services as a covered benefit for

4

recipients whose care is managed through contracts

5

between the department and managed care contractors, the

6

Secretary of Public Welfare shall do all of the

7

following:

8

(A)  By March 30, notify in writing the chair and

9

minority chair of the Appropriations Committee of the

10

Senate, the chair and minority chair of the

11

Appropriations Committee of the House of

12

Representatives, the chair and minority chair of the

13

Public Health and Welfare Committee of the Senate and

14

the chair and minority chair of the Health and Human

15

Services Committee of the House of Representatives.

16

(B)  Additionally bid a contract for fiscal year

17

2010-2011 that does include pharmaceutical services

18

as a covered benefit for recipients who are eligible

19

for such services and whose care is managed through

20

contracts between the department and managed care

21

contractors.

22

(C)  Conduct any procurement for existing or new

23

zones in a public manner, including publication of

24

any request for proposal on the Department of Public

25

Welfare's publicly accessible Internet website.

26

(viii)  Amounts allocated from funds appropriated for

27

medical assistance outpatient services for the Select

28

Plan for Women Preventative Health Services shall be used

29

for women's medical services, including noninvasive

30

contraception supplies.

- 65 -

 


1

(ix)  Federal or State funds appropriated under the

2

General Appropriation Act in accordance with the act of

3

March 24, 2004 (P.L.148, No.15), known as the

4

Pennsylvania Trauma Systems Stabilization Act, not used

5

to make payments to hospitals qualifying as Level III

6

trauma centers shall be used to make payments to

7

hospitals qualifying as Level I and II trauma centers.

8

(3)  Breast cancer screening. The following shall apply:

9

(i)  Funds appropriated for breast cancer screening

10

may be used for women's medical services, including

11

noninvasive contraception supplies.

12

(ii)  (Reserved).

13

(4)  Women's service programs. The following shall apply:

14

(i)  Funds appropriated for women's service programs

15

grants to nonprofit agencies whose primary function is to

16

provide alternatives to abortion shall be expended to

17

provide services to women until childbirth and for up to

18

12 months thereafter, including food, shelter, clothing,

19

health care, counseling, adoption services, parenting

20

classes, assistance for postdelivery stress and other

21

supportive programs and services and for related outreach

22

programs. Agencies may subcontract with other nonprofit

23

entities which operate projects designed specifically to

24

provide all or a portion of these services. Projects

25

receiving funds referred to in this subparagraph shall

26

not promote, refer or perform abortions or engage in any

27

counseling which is inconsistent with the appropriation

28

referred to in this subparagraph and shall be physically

29

and financially separate from any component of any legal

30

entity engaging in such activities.

- 66 -

 


1

(ii)  Funds appropriated for women's service programs

2

shall be used for women's medical services, including

3

noninvasive contraception supplies.

4

(iii)  Federal funds appropriated for TANFBG

5

Alternatives to Abortion shall be utilized solely for

6

services to women whose gross family income is below 185%

7

of the Federal poverty guidelines.

8

(5)  County children and youth programs. The following

9

shall apply:

10

(i)  No more than 50% of funds allocated from the

11

State appropriation for county children and youth

12

programs to each county shall be expended until each

13

county submits to the department data for the prior State

14

fiscal year, and updated quarterly, on the unduplicated

15

caseloads, unduplicated services and number of

16

caseworkers by county program. Data shall be submitted in

17

a form acceptable to the department. A copy of the data

18

shall be sent to the chairman and minority chairman of

19

the Appropriations Committee of the Senate and to the

20

chairman and the minority chairman of the Appropriations

21

Committee of the House of Representatives.

22

(ii)  Reimbursement for children and youth services

23

made pursuant to section 704.1 of the act of June 13,

24

1967 (P.L.31, No.21), known as the Public Welfare Code,

25

shall not exceed the amount of State funds appropriated.

26

It is the intent of the General Assembly that counties do

27

not experience any adverse fiscal impact due to the

28

department's maximization efforts.

29

(6)  Community-based family centers. No funds

30

appropriated for community-based family centers may be

- 67 -

 


1

considered as part of the base for calculation of the county

2

child welfare needs-based budget for a fiscal year.

3

Section 1730-J.  Department of Revenue (Reserved).

4

Section 1731-J.  Department of State (Reserved).

5

Section 1732-J.  Department of Transportation (Reserved).

6

Section 1733-J.  Pennsylvania State Police.

7

The following shall apply to appropriations for the

8

Pennsylvania State Police from the General Appropriation Act:

9

(1)  Payments made to municipalities under 53 Pa.C.S. §

10

2170 (relating to reimbursement of expenses) shall be limited

11

to funds available. If funds are not available to make full

12

payments, the Municipal Police Officers' Education and

13

Training Commission shall make payments on a pro rata basis.

14

(2)  (Reserved).

15

Section 1734-J.  State Civil Service Commission (Reserved).

16

Section 1735-J.  Pennsylvania Emergency Management Agency

17

(Reserved).

18

Section 1736-J.  Pennsylvania Fish and Boat Commission

19

(Reserved).

20

Section 1737-J.  State System of Higher Education.

21

The following shall apply to appropriations for the State

22

System of Higher Education from the General Appropriation Act:

23

(1)  Each public institution of higher education as

24

defined in Article XX-C of the Public School Code of 1949

25

shall do all of the following:

26

(i)  Agree to accept with full junior standing the

27

Associate of Arts or Associate of Science degree into a

28

parallel baccalaureate program as outlined in

29

subparagraph (iii) by the timelines established by the

30

Transfer and Articulation Oversight Committee but no

- 68 -

 


1

later than December 31, 2011. For purposes of this

2

paragraph, an Associate of Arts or Associate of Science

3

degree is a degree designed primarily for transfer to a

4

baccalaureate institution and must contain a minimum of

5

60 credits.

6

(ii)  Submit to the Department of Education interim

7

reports outlining the actions that the public institution

8

of higher education has undertaken or intends to

9

undertake to comply with subparagraph (i), which shall be

10

filed by December 31, 2009, June 30, 2010, and December

11

31, 2010.

12

(iii)  As a member of the Transfer and Articulation

13

Oversight Committee established in section 2004-C of the

14

Public School Code of 1949:

15

(A)  By December 1, 2009, consult with the

16

Department of Education on a process and timeline,

17

subject to approval by the department, to identify

18

the Associate of Arts or Associate of Science degree

19

aligned with the graduation requirements of the

20

parallel baccalaureate degree in all public

21

institutions of higher education in consultation with

22

faculty and personnel.

23

(B)  Identify Associate of Arts or Associate of

24

Science degree programs for transfer with full junior

25

standing into a parallel baccalaureate degree in

26

consultation with faculty and personnel in those

27

degree programs by December 31, 2011.

28

(C)  Identify modifications that may be required

29

in existing associate or baccalaureate degrees to

30

satisfy external accreditation or licensure

- 69 -

 


1

requirements in consultation with faculty and

2

personnel. Approved modifications shall recognize all

3

competencies attained within either the associate or

4

baccalaureate programs.

5

(D)  Define requirements, in consultation with

6

faculty and personnel, for education degrees,

7

including Early Childhood Education degrees, leading

8

to certification to be included in an associate

9

degree and to be accepted for transfer with full

10

junior standing into a parallel baccalaureate degree

11

program.

12

(2)  (Reserved).

13

Section 1737.1-J.  State-related institutions.

14

The following shall apply to State-related institutions:

15

(1)  (i)  No later than June 15, 2010, each State-related

16

institution shall identify 30 credit hours of course

17

content from equivalent courses identified under Article

18

XX-C of the Public School Code of 1949 that it will

19

accept from a student accepted for transfer from an

20

institution of higher eduction participating in Article

21

XX-C of the Public School Code of 1949. A State-related

22

institution shall count a course in the same manner that

23

it would count the same or equivalent course if taken by

24

a student at the State-related institution.

25

(ii)  Each State-related institution shall make the

26

information identified in subparagraph (i) available to

27

the Department of Education for posting on the

28

department's publicly accessible Internet website.

29

(iii)  Nothing in this paragraph shall be construed

30

to:

- 70 -

 


1

(A)  Require a State-related institution to apply

2

a course to graduation or degree requirements if that

3

course or its equivalent course would not be applied

4

to graduation or degree requirements if taken at the

5

State-related institution.

6

(B)  Infringe on a State-related institution's

7

sole authority to accept a student for transfer, to

8

determine acceptance into a major, to determine the

9

campus assignment of such student or to determine how

10

many and which credit hours shall apply for the

11

transfer student toward the completion of a degree.

12

The manner in which accepted courses apply toward

13

completion of a degree and whether they are counted

14

for general education, major or free elective credit

15

shall be subject to the requirements established by

16

the accepting State-related institution for each

17

individual major or program of study.

18

(C)  Prohibit a State-related institution's

19

ability to enter into discussions with the Department

20

of Education to increase the number of credits

21

pursuant to subparagraph (i).

22

(iv)  For the purpose of this paragraph, "State-

23

related institution" shall have the meaning given to it

24

in Article XX-C of the Public School Code of 1949.

25

(2)  (Reserved).

26

Section 1738-J.  Pennsylvania Higher Education Assistance

27

Agency.

28

The following shall apply to appropriations for the

29

Pennsylvania Higher Education Assistance Agency from the General

30

Appropriation Act:

- 71 -

 


1

(1)  Maximization of funds. The Pennsylvania Higher

2

Education Assistance Agency shall use funds appropriated for

3

matching payments for student aid funds to maximize the

4

receipt of Federal funds to the fullest extent possible.

5

(2)  Limitation. No college, university or institution

6

receiving a direct appropriation from the Commonwealth shall

7

be eligible to participate in the institutional assistance

8

grants program.

9

(3)  Agricultural loan forgiveness. In distributing funds

10

appropriated for agricultural loan forgiveness, the agency

11

shall give preference to renewal applicants.

12

Section 1739-J.  Pennsylvania Historical and Museum Commission

13

(Reserved).

14

Section 1740-J.  Pennsylvania Infrastructure Investment

15

Authority (Reserved).

16

Section 1741-J.  Environmental Hearing Board (Reserved).

17

Section 1742-J.  Pennsylvania Board of Probation and Parole

18

(Reserved).

19

Section 1743-J.  Pennsylvania Public Television Network

20

Commission (Reserved).

21

Section 1744-J.  Pennsylvania Securities Commission (Reserved).

22

Section 1745-J.  State Tax Equalization Board (Reserved).

23

Section 1746-J.  Health Care Cost Containment Council.

24

(1)  The Health Care Cost Containment Council shall

25

submit a report to the chairman and minority chairman of the

26

Appropriations Committee of the Senate and the chairman and

27

minority chairman of the Appropriations Committee of the

28

House of Representatives specifying the amount and source of

29

proceeds received from the sale of data by the council. The

30

report shall supplement the annual report of financial

- 72 -

 


1

expenditures required under section 17.1 of the act of July

2

8, 1986 (P.L.408, No.89), known as the Health Care Cost

3

Containment Act. Twenty-five percent of the proceeds received

4

from the sale of data may be used for the operations of the

5

council. The remainder of the proceeds shall be deposited in

6

the General Fund and shall not be expended unless

7

appropriated by the General Assembly.

8

(2)  The sum of $2,300,000 is transferred from the Health

9

Care Cost Containment Council to the General Fund, to include

10

money appropriated to or received by the council prior to

11

2008-2009 that is unspent or uncommitted.

12

Section 1747-J.  State Ethics Commission (Reserved).

13

Section 1748-J.  State Employees' Retirement System (Reserved).

14

Section 1749-J.  Thaddeus Stevens College of Technology

15

(Reserved).

16

Section 1750-J.  Pennsylvania Housing Finance Agency (Reserved).

17

Section 1751-J.  LIHEABG (Reserved).

18

Section 1752-J.  Budget Stabilization Reserve Fund (Reserved).

19

SUBARTICLE C

20

LEGISLATIVE DEPARTMENT

21

(Reserved)

22

SUBARTICLE D

23

JUDICIAL DEPARTMENT

24

Section 1781-J.  Supreme Court (Reserved).

25

Section 1782-J.  Superior Court (Reserved).

26

Section 1783-J.  Commonwealth Court (Reserved).

27

Section 1784-J.  Courts of common pleas (Reserved).

28

Section 1785-J.  Community courts; magisterial district judges

29

(Reserved).

30

Section 1786-J.  Philadelphia Traffic Court (Reserved).

- 73 -

 


1

Section 1787-J.  Philadelphia Municipal Court (Reserved).

2

Section 1788-J.  Judicial Conduct Board (Reserved).

3

Section 1789-J.  Court of Judicial Discipline (Reserved).

4

Section 1790-J.  Juror cost reimbursement (Reserved).

5

Section 1791-J.  County court reimbursement (Reserved).

6

Section 1792-J.  Senior judges (Reserved).

7

Section 1793-J.  Transfer of funds by Supreme Court (Reserved).

8

ARTICLE XVII-K

9

2009-2010 RESTRICTIONS ON APPROPRIATIONS

10

FOR FUNDS AND ACCOUNTS

11

Section 1701-K.  Applicability.

12

Except as specifically provided in this article, this article

13

applies to the act of August 5, 2009 (P.L.    , No.1A), known as

14

the General Appropriation Act of 2009, the act of    , 2009

15

(P.L.    , No.    ), known as the Supplemental Appropriation Act

16

of 2009, and as appropriate, all other appropriation acts of

17

2009.

18

Section 1702-K.  State Lottery Fund.

19

(1)  Funds appropriated for PENNCARE shall not be

20

utilized for administrative costs by the Department of Aging.

21

(2)  (Reserved).

22

Section 1703-K.  Energy Conservation and Assistance Fund

23

(Reserved).

24

Section 1704-K.  Judicial Computer System Augmentation Account.

25

The Supreme Court and the Court Administrator of Pennsylvania

26

are prohibited from augmenting the amount appropriated to the

27

Judicial Computer System Augmentation Account by billings to

28

other appropriations to the judicial branch for the Statewide

29

Judicial Computer System or for any other purpose.

30

Section 1705-K.  Emergency Medical Services Operating Fund

- 74 -

 


1

(Reserved).

2

Section 1706-K.  State Stores Fund (Reserved).

3

Section 1707-K.  Motor License Fund (Reserved).

4

Section 1708-K.  Hazardous Material Response Fund (Reserved).

5

Section 1709-K.  Milk Marketing Fund (Reserved).

6

Section 1710-K.  Home Investment Trust Fund (Reserved).

7

Section 1711-K.  Tuition Payment Fund (Reserved).

8

Section 1712-K.  Banking Department Fund (Reserved).

9

Section 1713-K.  Firearm Records Check Fund (Reserved).

10

Section 1714-K.  Ben Franklin Technology Development Authority

11

Fund (Reserved).

12

Section 1715-K.  Tobacco Settlement Fund.

13

(a)  Deposits.--

14

(1)  Notwithstanding sections 303(b)(2), (3) and (4) and

15

306 of the act of June 26, 2001 (P.L.755, No.77), known as

16

the Tobacco Settlement Act, the following shall apply:

17

(i)  For fiscal year 2009-2010, the strategic

18

contribution payments received in fiscal year 2008-2009

19

pursuant to the Master Settlement Agreement shall be

20

deposited in the Tobacco Settlement Fund.

21

(ii)  For fiscal year 2009-2010, $15,000,000 of the

22

funds derived under section 303(b)(3) of the Tobacco

23

Settlement Act shall be deposited into the Tobacco

24

Settlement Fund.

25

(iii)  For fiscal year 2009-2010, $10,000,000 of the

26

funds derived under section 303(b)(4) of the Tobacco

27

Settlement Act shall be deposited into the Tobacco

28

Settlement Fund.

29

(iv)  For fiscal year 2009-2010, 25% of the money

30

appropriated under section 306(b)(1)(iii) of the Tobacco

- 75 -

 


1

Settlement Act may not be expended, transferred or lapsed

2

but shall remain in the Tobacco Settlement Fund.

3

(v)  For fiscal year 2009-2010, 33.3% of the money

4

appropriated under section 306(b)(1)(vi) of the Tobacco

5

Settlement Act may not be expended, transferred or lapsed

6

but shall remain in the Tobacco Settlement Fund.

7

(2)  Money deposited into the fund under paragraph (1)

8

shall be appropriated for health-related purposes. If

9

applicable, the amount appropriated in accordance with this

10

paragraph shall be matched by appropriated Federal augmenting

11

funds.

12

(b)  Transfers.--

13

(1)  Notwithstanding sections 306 and 307 of the Tobacco

14

Settlement Act, the following shall apply.

15

(i)  For fiscal year 2009-2010, 37.5% of the money

16

appropriated under section 306(b)(1)(iii) of the Tobacco

17

Settlement Act is transferred from the Tobacco Settlement

18

Fund to the General Fund.

19

(ii)  For fiscal year 2010-2011, 37.5% of the money

20

appropriated under section 306(b)(1)(iii) of the Tobacco

21

Settlement Act is transferred from the Tobacco Settlement

22

Fund to the General Fund.

23

(iii)  For fiscal year 2009-2010, 100% of the money

24

received in fiscal year 2008-2009 appropriated under

25

section 306(b)(1)(i) of the Tobacco Settlement Act shall

26

be transferred from the Tobacco Endowment Account for

27

Long-Term Hope to the Tobacco Settlement Fund.

28

(iv)  For fiscal year 2009-2010, $150,000,000 is

29

transferred from the Tobacco Endowment Account for Long-

30

Term Hope to the General Fund.

- 76 -

 


1

(v)  For fiscal year 2010-2011, $250,000,000 is

2

transferred from the Tobacco Endowment Account for Long-

3

Term Hope to the General Fund.

4

(2)  Money transferred under paragraph (1)(iii) shall be

5

appropriated for health-related purposes. If applicable, the

6

amount appropriated in accordance with this paragraph shall

7

be matched by appropriated Federal augmenting funds.

8

(c)  Allocation.--Funding for local programs under section

9

708(b) of the Tobacco Settlement Act shall be allocated as

10

follows:

11

(1)  Thirty percent of grant funding to primary

12

contractors for local programs shall be allocated equally

13

among each of the 67 counties.

14

(2)  The remaining 70% of grant funding to primary

15

contractors for local programs shall be allocated on a per

16

capita basis of each county with a population greater than

17

60,000. The per capita formula shall be applied only to that

18

portion of the population that is greater than 60,000 for

19

each county.

20

(3)  Budgets shall be developed by each primary

21

contractor to reflect service planning and expenditures in

22

each county. Each primary contractor will ensure that

23

services are available to residents of each county and must

24

expend the allocated funds on a per-county basis pursuant to

25

paragraphs (1) and (2).

26

(4)  The Department of Health shall compile a detailed

27

annual report of expenditures per county and the specific

28

programs offered in each region. This report shall be made

29

available on the Department of Health's publicly available

30

Internet website 60 days following the close of each fiscal

- 77 -

 


1

year.

2

(5)  During the third quarter of the fiscal year, funds

3

which have not been spent within a service area may be

4

reallocated to support programming in the same region.

5

(d)  Use of money for lobbying prohibited.--No money derived

6

from an appropriation by the General Assembly from the Tobacco

7

Settlement Fund may be used for the lobbying of any State public

8

official.

9

Section 1716-K.  Community Health Reinvestment Restricted

10

Account.

11

(a)  Establishment.--There is established in the State

12

Treasury a restricted receipts account in the Tobacco Settlement

13

Fund to be known as the Community Health Reinvestment Restricted

14

Account. Interest earned on money in the account shall remain in

15

the account.

16

(b)  Agreement on community health reinvestment.--Each

17

calendar year, a corporation under 40 Pa.C.S. Ch. 61 (relating

18

to hospital plan corporations) or 63 (relating to professional

19

health services plan corporations) that is a party to the

20

Agreement on Community Health Reinvestment entered into February

21

2, 2005, by the Insurance Department and the Capital Blue Cross,

22

Highmark, Inc., Hospital Service Association of Northeastern

23

Pennsylvania and Independence Blue Cross, and published in the

24

Pennsylvania Bulletin at 35 Pa.B. 4155 (July 23, 2005), shall

25

pay to the account the amount calculated for such calendar year

26

in section 5 of the agreement, published at 35 Pa.B. 4156.

27

(c)  Appropriation.--The money in the account, including all

28

interest earned, is appropriated to the Insurance Department to

29

be used in accordance with the agreement on community health

30

reinvestment described in subsection (b).

- 78 -

 


1

Section 1717-K.  Health Care Provider Retention Account.

2

The sum of $708,000,000 is transferred from the Health Care

3

Provider Retention Account established under section 1112(a) of

4

the act of March 20, 2002 (P.L.154, No.13), known as the Medical

5

Care Availability and Reduction of Error (Mcare) Act, to the

6

General Fund.

7

Section 1717.1-K.  Medical Care Availability and Reduction of

8

Error Fund.

9

The sum of $100,000,000 is transferred from the Medical Care

10

Availability and Reduction of Error Fund established under

11

section 712 of the act of March 20, 2002 (P.L.154, No.13), known

12

as the Medical Care Availability and Reduction of Error (Mcare)

13

Act, to the General Fund.

14

Section 1717.2-K.  Catastrophic Loss Benefits Continuation Fund.

15

Notwithstanding any other law to the contrary, for fiscal

16

years 2009-2010 and 2010-2011, all surcharges deposited in the

17

Catastrophic Loss Benefits Continuation Fund under 75 Pa.C.S. §

18

6506 (relating to surcharge) shall be transferred to the General

19

Fund.

20

Section 1718-K.  Budget Stabilization Reserve Fund.

21

(a)  General provisions.--Notwithstanding section 1703-A(b),

22

the sum of $755,000,000 is transferred from the Budget

23

Stabilization Reserve Fund to the General Fund.

24

(b)  Surplus.--No amount of the surplus in the General Fund

25

in fiscal year 2009-2010 shall be deposited into the Budget

26

Stabilization Reserve Fund.

27

Section 1718.1-K.  Gaming Economic Development and Tourism Fund.

28

Notwithstanding the provisions of 4 Pa.C.S. Part II (relating

29

to gaming) and the act of July 9, 2008 (P.L.908, No.63), known

30

as the H2O PA Act, $5,080,000 is hereby appropriated from the

- 79 -

 


1

Gaming Economic Development and Tourism Fund to the Department

2

of General Services to meet additional payment obligations for

3

the project itemized in section 3(2)(i)(D) of the act of July

4

25, 2007 (P.L.342, No.53), known as the Pennsylvania Gaming

5

Economic Development and Tourism Fund Capital Budget Itemization

6

Act of 2007.

7

Section 1719-K.  Restricted Receipt Accounts.

8

(a)  General provisions.--The secretary may create restricted

9

receipt accounts for the purpose of administering Federal grants

10

only for the purposes designated in this section.

11

(b)  Department of Community and Economic Development.--The

12

following restricted receipt accounts may be established for the

13

Department of Community and Economic Development:

14

(1)  ARC Housing Revolving Loan Program.

15

(2)  (Reserved).

16

(c)  Department of Conservation and Natural Resources.--The

17

following restricted receipt accounts may be established for the

18

Department of Conservation and Natural Resources:

19

(1)  Federal Aid to Volunteer Fire Companies.

20

(2)  Federal Land and Water Conservation Fund Act.

21

(3)  National Forest Reserve Allotment.

22

(4)  Federal Land and Water Conservation Fund Act -

23

Conservation and Natural Resources.

24

(d)  Department of Education.--The following restricted

25

receipt accounts may be established for the Department of

26

Education:

27

(1)  Education of the Disabled - Part C.

28

(2)  LSTA - Library Grants.

29

(3)  The Pennsylvania State University Federal Aid.

30

(4)  Emergency Immigration Education Assistance.

- 80 -

 


1

(5)  Education of the Disabled - Part D.

2

(6)  Homeless Adult Assistance Program.

3

(7)  Severely Handicapped.

4

(8)  Medical Assistance Reimbursements to Local Education

5

Agencies.

6

(e)  Department of Environmental Protection.--The following

7

restricted receipt accounts may be established for the

8

Department of Environmental Protection:

9

(1)  Federal Water Resources Planning Act.

10

(2)  Flood Control Payments.

11

(3)  Soil and Water Conservation Act - Inventory of

12

Programs.

13

(f)  Department of Health.--The following restricted receipt

14

accounts may be established for the Department of Health:

15

(1)  Share Loan Program.

16

(2)  (Reserved).

17

(g)  Department of Transportation.--The following restricted

18

receipt accounts may be established for the Department of

19

Transportation:

20

(1)  Capital Assistance Elderly and Handicapped Programs.

21

(2)  Railroad Rehabilitation and Improvement Assistance.

22

(3)  Ridesharing/Van Pool Program - Acquisition.

23

(h)  Pennsylvania Emergency Management Agency.--The following

24

restricted receipt accounts may be established for the

25

Pennsylvania Emergency Management Agency:

26

(1)  Receipts from Federal Government - Disaster Relief -

27

Disaster Relief Assistance to State and Political

28

Subdivisions.

29

(2)  (Reserved).

30

(i)  Pennsylvania Historical and Museum Commission.--The

- 81 -

 


1

following restricted receipt accounts may be established for the

2

Pennsylvania Historical and Museum Commission:

3

(1)  Federal Grant - National Historic Preservation Act.

4

(2)  (Reserved).

5

(j)  Executive Offices.--The following restricted receipt

6

accounts may be established for the Executive Offices:

7

(1)  Retired Employees Medicare Part D.

8

(2)  Justice Assistance.

9

(3)  Juvenile Accountability Incentive.

10

Section 1720-K.  State Gaming Fund.

11

(a)  Deduction of certain appropriations.--Notwithstanding

12

the provisions of section 504(c)(1) of the act of June 27, 2006

13

(1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief

14

Act, funds appropriated to the Pennsylvania Gaming Control Board

15

from the State Gaming Fund shall be deducted from the amount

16

transferred to the Property Tax Relief Reserve Fund under

17

section 504(b) of the Taxpayer Relief Act and loaned to the

18

Pennsylvania Gaming Control Board for payment of the board's

19

administrative and operating expenses for the fiscal year

20

commencing July 1, 2009. Funds loaned to the board under this

21

section and sections 1720-G and 1720-I shall be repaid from the

22

accounts established under 4 Pa.C.S. § 1401 (relating to slot

23

machine licensee deposits) in accordance with subsection (b).

24

(b)  Assessment for repayment.--Notwithstanding the

25

provisions of 4 Pa.C.S. § 1901.1 (relating to repayments to

26

State Gaming Fund), the Pennsylvania Gaming Control Board shall

27

assess slot machine licensees for repayment of funds transferred

28

and loaned to the board under subsection (a) from the State

29

Gaming Fund in accordance with 4 Pa.C.S. § 1402 (relating to

30

gross terminal revenue deductions) for repayment to the Property

- 82 -

 


1

Tax Relief Reserve Fund at such time as at least 11 slot machine

2

licenses have been issued and 11 licensed gaming entities have

3

commenced the operation of slot machines. The board shall adopt

4

a repayment schedule that assesses to each slot machine licensee

5

costs for the repayment of amounts appropriated under this

6

section in an amount that is proportional to each slot machine

7

licensee's gross terminal revenue.

8

(c)  Property tax relief.--

9

(1)  Notwithstanding the provisions of section 504 of the

10

Taxpayer Relief Act, until the loan to the Pennsylvania

11

Gaming Control Board under subsection (a) is repaid, the

12

Secretary of the Budget is authorized to provide for property

13

tax relief under section 503(d) of the Taxpayer Relief Act,

14

regardless of whether the amount deposited in the Property

15

Tax Relief Reserve Fund is less than required by section 504

16

of the Taxpayer Relief Act.

17

(2)  Notwithstanding the provisions of 4 Pa.C.S. §

18

1901.1, beginning January 1, 2011, if the Secretary of the

19

Budget determines that the moneys in the Property Tax Relief

20

Reserve Fund are needed for property tax relief, the

21

secretary shall notify the Pennsylvania Gaming Control Board

22

and upon notification, the board shall immediately assess

23

each slot machine licensee for the repayment of the loan in

24

an amount that is proportional to each slot machine

25

licensee's gross terminal revenue.

26

(d)  Other appropriations solely from assessment.--

27

(1)  All funds for the operation of the Pennsylvania

28

State Police, Department of Revenue and Attorney General are

29

appropriated solely from an assessment on gross terminal

30

revenue from accounts under 4 Pa.C.S. § 1401 in an amount

- 83 -

 


1

equal to that appropriated by the General Assembly for fiscal

2

year 2009-2010. The Pennsylvania State Police, Attorney

3

General or Department of Revenue shall not assess any charge,

4

fee, cost of operations or other payment from a licensed

5

gaming entity in excess of amounts appropriated for fiscal

6

year 2009-2010, unless specifically authorized by law.

7

(2)  This subsection shall not apply to any voluntary

8

payment made by a new slot machine licensee in accordance

9

with similar payments voluntarily made by existing licensees.

10

Section 1721-K.  Pennsylvania Racehorse Development Fund.

11

(Reserved).

12

Section 1722-K.  Straw Purchase Prevention Education Fund.

13

Notwithstanding the provisions of 18 Pa.C.S. § 6187 (relating

14

to transfer for initial funding), in fiscal year 2009-2010, no

15

funds shall be transferred from the General Fund to the Straw

16

Purchase Prevention Education Fund established in 18 Pa.C.S. §

17

6186 (relating to Straw Purchase Prevention Education Fund).

18

Section 6.  Notwithstanding any other provision of law, the

19

Scranton State School for the Deaf and the Board of Trustees of

20

the Scranton State School for the Deaf are abolished.

21

Section 7.  Repeals are as follows:

22

(1)  The General Assembly declares that the repeal under

23

paragraph (2) is necessary to effectuate the addition of

24

Article V-A of the act.

25

(2)  Sections 618 and 618.1 of the act of April 9, 1929

26

(P.L.177, No.175), known as The Administrative Code of 1929,

27

are repealed.

28

(3)  The General Assembly declares that the repeals under

29

paragraph (4) are necessary to effectuate the addition of

30

section 1722-J(11) of the act.

- 84 -

 


1

(4)  The following acts or parts of acts are repealed

2

insofar as they are inconsistent with this act:

3

(i)  Sections 3 and 4 of the act of May 8, 1913

4

(P.L.163, No.112), entitled "An act providing for an

5

examination of the Pennsylvania Oral School for the Deaf,

6

at Scranton, Lackawanna County, Pennsylvania; providing

7

for the transfer, under certain conditions, of the said

8

Oral School for the Deaf to the Commonwealth; regulating

9

said school in the event of such transfer; and making an

10

appropriation to carry out the purposes of this act."

11

(ii)  Sections 2 and 202 of the act of June 7, 1923

12

(P.L. 498, No. 274), known as The Administrative Code.

13

(iii)  Sections 202, 401 and 1311 of the act of April

14

9, 1929 (P.L.177, No.175), known as The Administrative

15

Code of 1929.

16

(iv)  Section 5.1 of the act of July 8, 1957

17

(P.L.579, No.321), entitled, "An act establishing minimum

18

compensation and increments for members of the faculty

19

and administration of the Thaddeus Stevens State School

20

of Technology, the Scotland School for Veterans'

21

Children, and the Scranton State School for the Deaf,

22

providing leave of absence with pay for faculty members

23

and the superintendent of schools and imposing duties on

24

the Board of Trustees of such schools and the Secretary

25

of Education."

26

(v)  Section 1.2 of the act of December 12, 1973

27

(P.L.397, No.141), known as the Professional Educator

28

Discipline Act.

29

(vi)  24 Pa.C.S. §§ 8102 and 8327.

30

(5)  Chapter 11 of the act of March 20, 2002 (P.L.154,

- 85 -

 


1

No.13), known as the Medical Care Availability and Reduction

2

of Error (Mcare) Act, is repealed.

3

(6)  The act of July 9, 2008 (P.L.908, No.63), known as

4

the H2O PA Act, is repealed insofar as it is inconsistent

5

with this act.

6

(7)  All other acts and parts of acts are repealed

7

insofar as they are inconsistent with this act.

8

(8)  The following appropriations in the act of August 5,

9

2009 (P.L.  , No.1A), known as the General Appropriation Act

10

of 2009, vetoed in part, are repealed:

11

(i)  The State appropriation for smoke free

12

Pennsylvania enforcement in section 215 of the act is

13

repealed.

14

(ii)  The State appropriation for a separate State-

15

funded vocational rehabilitation program to provide

16

vocational rehabilitation services leading to competitive

17

employment for OVR-eligible persons with disabilities

18

unable to receive services through the Federal Vocational

19

Rehabilitation Program in section 217 of the act is

20

repealed.

21

(iii)  The Federal appropriation for "Home Visitation

22

to Prevent Child Maltreatment" in section 219 of the act

23

is repealed.

24

(iv)  The Federal appropriation for "Emergency Food

25

Assistance" in section 1712 of the act is repealed.

26

(v)  The Federal and State appropriations for

27

payments for early intervention services, for

28

"Individuals with Disabilities Education," for "Food and

29

Nutrition - Local," for "Esea - Title I - Local" and for

30

"ARRA - Education for Homeless Children and Youth"  in

- 86 -

 


1

section 1714 of the act are repealed.

2

(vi)  The Federal appropriations for "Survey Studies"

3

and "State Energy Program (SEP)" in section 1715 of the

4

act are repealed.

5

(vii)  The Federal appropriations for "Programs for

6

the Aging - Title III," and "Programs for the Aging -

7

Title V" in section 1731 of the act are repealed.

8

Section 8.  The provisions of this act are severable. If any

9

provision of this act or its application to any person or

10

circumstance is held invalid, the invalidity shall not affect

11

other provisions or applications of this act which can be given

12

effect without the invalid provision or application.

13

Section 9.  This act shall apply as follows:

14

(1)  The addition of section 1776-A of the act shall

15

apply to contracts entered into on or after the effective

16

date of this paragraph.

17

(1.1)  The following provisions shall apply retroactively

18

to July 1, 2009:

19

(i)  The amendment of section 1721-E of the act.

20

(ii)  The amendment of section 1722-E of the act.

21

(iii)  The amendment of section 1733-E of the act.

22

(iv)  The amendment of section 1735-E of the act.

23

(v)  Except as set forth in paragraph (3), the

24

addition of Article XVII-J of the act.

25

(vi)  The addition of Article XVII-K of the act.

26

(2)  The amendment of section 1723-E of the act shall

27

apply retroactively to May 1, 2009.

28

(3)  Paragraph (1.1)(v) does not apply to the addition of

29

section 1722-J(8) and (9) of the act.

30

Section 10.  This act shall take effect as follows:

- 87 -

 


1

(1)  Notwithstanding paragraph (2)(i), the addition of

2

section 510-A of the act shall take effect July 1, 2010, or

3

immediately, whichever is later.

4

(2)  The following provisions shall take effect November

5

30, 2010:

6

(i)  Except as set forth in paragraph (1), the

7

addition of Article V-A of the act.

8

(ii)  Section 7(1) and (2) of this act.

9

(3)  The remainder of this act shall take effect

10

immediately.

11

Section 1.  Section 301.1(i) of the act of April 9, 1929

<--

12

(P.L.343, No.176), known as The Fiscal Code, amended July 4,

13

2008 (P.L.629, No.53), is amended to read:

14

Section 301.1.  Investment of Moneys.--* * *

15

(i)  (1)  Notwithstanding subsections (a) through (h), the

16

Treasury Department shall have the exclusive management and full

17

power to invest and reinvest the moneys of any fund as shall be

18

accumulated beyond the ordinary needs of the various funds and

19

which are not authorized by law to be invested by any board,

20

commission or State officer, subject, however, to the prudent

21

investor standard.

22

(1.1)  When investing, reinvesting, purchasing, acquiring,

23

exchanging, selling or managing public funds, the Treasury

24

Department shall act as a fiduciary with care, skill, prudence

25

and diligence under the circumstances then prevailing,

26

specifically including, but not limited to, the general economic

27

conditions and the anticipated needs of the funds, that a

28

prudent person acting in a like capacity and with familiarity

29

with those matters would use in the conduct of funds of a like

30

character and with like objectives. The following shall apply:

- 88 -

 


1

(i)  The primary objective of the Treasury Department shall

2

be to safeguard the principal of the funds. The secondary

3

objective shall be to meet the liquidity needs of the funds. The

4

third objective shall be to achieve a return on the funds.

5

(ii)  The prudent investor standard embraces the duty of

6

loyalty whereby actions must be in accordance with the sole

7

purpose doctrine to accomplish the prudent investor objectives

8

and not in pursuit of other objectives except as otherwise

9

provided by statute.

10

(iii)  The prudent investor standard embraces the duty to

11

monitor the ongoing circumstances of investments for ongoing

12

appropriateness of investments to meet the prudent investor

13

objectives.

14

(iv)  The Treasury Department shall have the power and

15

authority to invest in securities subject to the then prevailing

16

standards that institutional investors employ in the context of

17

investment decisions made with consideration of fiduciary

18

standards.

19

(v)  The Treasury Department shall maintain and publish a

20

list of prohibited investments within its investment policy.

21

(2)  The authority to invest or reinvest the moneys of any

22

fund pursuant to this subsection shall expire December 31,

23

[2010] 2014. The Treasury Department may maintain investments

24

pursuant to this subsection which are in existence on the

25

expiration date in this paragraph for not more than two years

26

following such expiration date.

27

Section 2.  Section 505(a) and (c) of the act, amended June

28

28, 1951 (P.L.601, No.152), December 14, 1967 (P.L.,810,

29

No.347), December 1, 1971 (P.L.581, No.151) and July 11, 1980

30

(P.L.554, No.115), are amended to read:

- 89 -

 


1

Section 505.  State Depositories.--The Board of Finance and

2

Revenue shall have the power, and its duty shall be,

3

(a)  To select and designate, as depositories for the State

4

moneys, banks, banking institutions, trust companies or savings

5

and loan associations, which are subject to national or State

6

supervision, and the accounts of which are insured by a

7

corporation organized under the Laws of the Commonwealth, or by

8

an instrumentality of the Federal Government, and each of which, 

9

1.  Has made written application to the State Treasurer for a

10

deposit of State moneys, designating the amount of deposit

11

solicited, and accompanying its application by a written

12

statement showing the amount of its capital actually paid in,

13

the amount of its surplus, the number of its stockholders, and

14

whether its stock is well distributed or largely held by a few

15

individuals, and the length of time that said institution has

16

been engaged in business under its charter. Each such statement

17

shall be verified by the oath or affirmation of the president,

18

cashier, or trust officer, as the case may be, and the State

19

Treasurer shall present the same to the board for its

20

consideration within thirty days after the receipt thereof.

21

2.  Shall, upon the receipt of notice of its selection as a

22

depository of State moneys, furnish a bond to secure payment of

23

deposits and interests to the Commonwealth of Pennsylvania, with

24

a proper warrant of attorney to confess judgment in favor of the

25

Commonwealth, secured by a surety company or individual sureties

26

to be approved by the board, in the amount of the deposit to be

27

made. If a corporate bond be given, no one surety company shall

28

be approved in an aggregate amount in excess of five times its

29

capital surplus, and reserve, and, whenever individual sureties

30

are presented for approval, they shall qualify in an aggregate

- 90 -

 


1

over and above their individual liabilities to three times the

2

amount of the deposit. No one person may qualify for more than

3

one-fourth of the total amount of the bond required: Provided,

4

That when any deposit of State moneys is insured with the

5

Federal Deposit Insurance Commissioner or any other corporation

6

hereafter organized by the United States for the purpose of

7

insuring deposits, such depository shall not be required to

8

furnish bond or security to cover the amount of such deposit so

9

insured: And provided further, That, in lieu of the surety bonds

10

of surety companies or of individuals as aforesaid, the deposit

11

of State moneys may be secured by the deposit with the State

12

Treasurer, with the Federal Reserve Bank of Philadelphia or

13

Pittsburgh, or with any bank or bank and trust company organized

14

under the laws of this Commonwealth or any national association

15

located in this Commonwealth which shall be approved by the

16

State Treasurer, subject to such regulations as may be

17

prescribed by the Board of Finance and Revenue or the State

18

Treasurer, or both, as the case may be, of bonds or notes of the

19

United States, or bonds or notes which the United States fully

20

guarantees both as to principal and interest, bonds of the

21

Delaware River Joint Commissions, bonds of the Pennsylvania

22

Turnpike Commission, bonds of the State Public School Building

23

Authority, bonds of The General State Authority, bonds of the

24

State Highway and Bridge Authority, bonds of the Pennsylvania

25

Housing Agency, bonds or tax anticipation notes of this

26

Commonwealth, or of any municipal subdivision, institution

27

district, or school district or county thereof, to be approved

28

by the board, in an amount measured by their actual market value

29

equal to the amount of deposit so secured and [twenty] two per

30

centum in addition thereto. Said bonds and any additions to and

- 91 -

 


1

substitutions and exchanges therefor shall be subject to proper

2

assignment, or right to sell, or power of attorney to transfer

3

the same, and said trust deposit of securities shall be

4

maintained, on request, at the amount aforesaid, in case of any

5

depreciation in the value thereof: Provided, That no bonds, or

6

other security, shall be required of State depositories for

7

State deposits to the extent, that such State deposits are

8

insured under the provisions of Section 12 B of the Federal

9

Reserve Act, approved the twenty-third day of December, one

10

thousand nine hundred and thirteen, its amendments and

11

supplements.

12

3.  Shall agree to pay interest upon all State deposits, at

13

the rate to be fixed every six months by the Board of Finance

14

and Revenue, having due regard to the then prevailing money

15

market: Provided, That such agreement is not in conflict with

16

law or any regulation of the Comptroller of the Currency, or of

17

the Federal Reserve Board of the United States. The said board

18

may fix different rates of interest for active and inactive

19

depositories, not in conflict with law or any regulation of the

20

Comptroller of the Currency, or of the Federal Reserve Board of

21

the United States, and may adopt and promulgate rules governing

22

the time when interest shall begin to run on deposits of

23

uncollected items. The board shall fix the specific day on which

24

any change in interest rate shall become effective, and shall

25

notify, in writing, every depository of such change and the

26

effective date thereof. Pending action by the board the interest

27

rates heretofore fixed by law shall remain in force. All

28

collections shall be made for the Commonwealth without cost or

29

compensation.

30

* * *

- 92 -

 


1

(c)  To designate [two banks or trust companies in Dauphin

2

County, two banks or trust companies in Allegheny County, two

3

banks or trust companies in Philadelphia County, and thirteen]

4

at least eight banks or trust companies in any part of the

5

Commonwealth, to be known as active depositories, in which shall

6

be deposited a sufficient amount of the daily receipts of the

7

State Treasury to transact the current business of the

8

Commonwealth. [The board may designate nine other banks or trust

9

companies, located anywhere in the Commonwealth, to be known as

10

active depositories, and to be used for the purpose above

11

mentioned.]

12

* * *

13

Section 2.1.  Section 1501 of the act, amended March 18, 1971

14

(P.L.109, No.4) and July 26, 1973 (P.L.223, No.56) and repealed

15

in part April 28, 1978 (P.L.202, No.53), is amended to read:

16

Section 1501.  Requisitions.--No money shall be paid out of

17

any fund in the State Treasury, except (1) the State Workmen's

18

Insurance Fund, and except (2) the Surplus Commodities Stamp

19

Fund, until a requisition therefor shall have been presented to

20

or prepared by the State Treasurer.

21

For money appropriated to the Governor or to the Executive

22

Board, the Governor shall prepare requisitions and present them

23

to the Treasury Department.

24

For money appropriated to the Lieutenant Governor he shall

25

prepare requisitions and present them to the Treasury

26

Department.

27

For money appropriated to administrative departments, or to

28

independent administrative boards or commissions, the respective

29

departments, boards, or commissions, shall prepare their

30

requisitions, with the written approval of their respective

- 93 -

 


1

department heads and departmental comptrollers noted thereon,

2

and present them to the Treasury Department.

3

Requisitions for payment shall be presented in such form,

4

whether paper, electronic or otherwise, in accordance with

5

generally commercially accepted methods. Requisitions for

6

payment may be presented to the Treasury Department by

7

electronic transmission which shall evidence the approval of the

8

comptroller and department head.

9

For money appropriated to departmental administrative boards

10

or commissions, or advisory boards or commissions, such boards

11

or commissions shall prepare requisitions, and forward them to

12

the departments with which they are respectively connected. Such

13

departments, if they approve the requisitions, shall so signify

14

in writing, and shall transmit them to the Treasury Department.

15

No requisition of a departmental administrative board or

16

commission, or of an advisory board or commission, shall be

17

valid without the approval in writing of the head and the

18

comptroller of the department with which such board or

19

commission is connected.

20

For money appropriated to a person, association, corporation,

21

or agency, not a part of the executive branch of the State

22

Government, the person, association, corporation, or agency, to

23

whom or to which the appropriation was made, shall prepare

24

requisitions and present them to the Treasury Department, but

25

whenever, in any such case, any other act of Assembly requires

26

the requisition to be approved by an administrative department

27

of the State Government, other than the Treasury Department, it

28

shall be forwarded to the Treasury Department through such other

29

administrative department.

30

For money appropriated for a purpose, without designation of

- 94 -

 


1

the expending agency, the Treasury Department shall prepare

2

requisitions except as to appropriations for the purposes of the

3

judiciary for which the Court Administrator of Pennsylvania

4

shall prepare, supervise or delegate preparation of requisitions