PRIOR PRINTER'S NO. 1627

PRINTER'S NO.  2351

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1263

Session of

2011

  

  

INTRODUCED BY BROWNE, SEPTEMBER 28, 2011

  

  

AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 29, 2012   

  

  

  

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," in general budget implementation, further

<--

31

providing for the Department of Labor and Industry. in

<--

32

general provisions, further providing for method of payment;

33

in Department of Revenue, further providing for transmission

34

of moneys; in Treasury Department, further providing for

 


1

replacement checks; in State Treasury disbursements,

2

providing for settlement agreements and enforcement actions;

3

in capital facilities debt, further providing for

4

definitions, for Neighborhood Improvement Zone Fund, for

5

Keystone Opportunity Zone and for Commonwealth pledges; in

6

financially distressed municipalities, further providing for

7

administrative oversight; in oil and gas wells, providing for

8

conventional gas well bonding and for oil and gas operations

9

in the South Newark Basin; in Keystone Special Development

10

Zones, further providing for definitions; in tax credits,

11

repealing provisions relating to the Department of Education,

12

the Department of Revenue and the Department of Community and

13

Economic Development; in permit extensions, further providing

14

for definitions; in special funds, further providing for

15

funding; in general budget implementation, further providing

16

for Auditor General, for Department of Labor and Industry and

17

for Department of Public Welfare; providing for 2012-2013

18

budget implementation; providing for 2012-2013 appropriations

19

restrictions; in audits, further providing for audits of Race

20

Horse Development Funds; and making related repeals.

21

The General Assembly of the Commonwealth of Pennsylvania

22

hereby enacts as follows:

23

Section 1.  Section 1727-E of the act of April 9, 1929

<--

24

(P.L.343, No.176), known as The Fiscal Code, added July 17, 2007

25

(P.L.141, No.42), is amended to read:

26

Section 1727-E.  Department of Labor and Industry [(Reserved)].

27

For the "Reed Act-Unemployment Insurance" and "Reed Act-

28

Employment Services and Unemployment Insurance" appropriations,

29

the total amount which may be obligated shall not exceed the

30

limitations under section 903 of the Social Security Act (49

31

Stat. 620, 42 U.S.C. § 1103).

32

Section 2.  This act shall take effect immediately.

33

Section 1.  Section 9 of the act of April 9, 1929 (P.L.343,

<--

34

No.176), known as The Fiscal Code, added November 21, 1990

35

(P.L.542, No.134), is amended to read:

36

Section 9.  Method of Payment.--(a)  Notwithstanding any

37

other provisions of this act or any other acts, the State

38

Treasurer and the Secretary of Revenue shall jointly prescribe

39

by regulation the method of payment of obligations due the

40

Commonwealth. Such regulations shall include:

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1

(1)  Requiring payment by electronic funds transfers (EFT)

2

which includes automated clearinghouse debit, automated

3

clearinghouse credit, wire transfer and any other means that may

4

be available to obtain funds due the Commonwealth in the most

5

expeditious manner. The payor shall select which method of

6

electronic funds transfer he wishes to utilize from among these

7

options.

8

(2)  Setting the date on which a payment is deemed to have

9

been received when a method other than mail is required.

10

(3)  Establishing procedures to be followed when a method

11

other than mail is required.

12

(4)  Any other provisions necessary to ensure the prompt

13

deposit of funds legally due the Commonwealth.

14

(5)  An option permitting payment by certified or cashier's

15

check delivered in person or by courier to the Department of

16

Revenue on or before the due date of the obligation, in lieu of

17

payment by electronic funds transfer.

18

(b)  The regulations shall not require:

19

(1)  Any payment to be posted to a Commonwealth account prior

20

to the due date, including grace periods, established by law or

21

regulations.

22

(2)  Changes to the method of payment for those payments made

23

by individuals under Article III of the act of March 4, 1971

24

(P.L.6, No.2), known as the "Tax Reform Code of 1971."

25

(3)  Changes to the method of payment when the payment is

26

less than [twenty thousand dollars ($20,000)] ten thousand

27

dollars ($10,000).

28

(4)  Automated clearinghouse debit as the sole and exclusive

29

means of complying with this act and the regulations promulgated

30

pursuant to this act.

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1

Section 2.  Section 209 of the act, amended June 1, 1931

2

(P.L.318, No.143), is amended to read:

3

Section 209.  Transmission of Moneys.--[All] (a)  Except as

4

provided in subsection (b), all moneys received by the

5

Department of Revenue during any day shall be transmitted

6

promptly to the Treasury Department, and the Treasury Department

7

shall forthwith issue its receipt to the Department of Revenue

8

for such moneys, and credit them to the fund and account

9

designated by the Department of Revenue.

10

Detailed statements of all moneys received shall be furnished

11

to the Treasury Department and the Department of the Auditor

12

General contemporaneously with the transmission of such moneys

13

to the Treasury Department.

14

(b)  The following apply to contracts:

15

(1)  The Department of Revenue may enter into contracts

16

allowing the contractor to be paid for products provided or

17

services rendered, on a contingent fee basis, for taxes,

18

interest, penalty or fees collected or refunds saved.

19

(2)  The money collected under paragraph (1) shall be

20

deposited into a restricted receipt account, out of which the

21

contingent fees shall be paid. By the last day of each month,

22

all money remaining in the restricted receipt account shall be

23

transferred to the General Fund.

24

(3)  The Department of Revenue shall submit an annual report

25

setting forth the number of contracts entered into under

26

paragraph (1), the amount collected, and the percentage of the

27

contingency.

28

Section 3.  Section 309 of the act, amended or added June 30,

29

1972 (P.L.717, No.165) and May 2, 1986 (P.L.145, No.45), is

30

amended to read:

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1

Section 309.  Replacement Checks.--(a)  Upon presentation for

2

payment of any check to the Treasury Department which is more

3

than [one year and not more than seven years] one hundred and

4

eighty days and not more than one year old, the Treasury

5

Department shall requisition and issue a replacement check to

6

the person entitled thereto [which shall be paid from an

7

executive authorization by the Governor made to the Treasury

8

Department for such purpose] from each of the various funds. All

9

reportable Commonwealth checks which have not been presented for

10

payment in excess of one year from the date issuance shall be

11

delivered to the custodial control of the State Treasurer as

12

abandoned or unclaimed property and shall be disposed of under

13

Article XIII.1.

14

(b)  The Treasury Department as of January 1, 1972, and on

15

each July 1 thereafter, shall take credit on its books and

16

calculate as cash to the credit of the proper funds all amounts

17

held in State depositories or otherwise for the payment of

18

nonreportable checks which on said dates had been issued for a

19

period of one year or more and which had not been presented for

20

payment.

21

Section 3.1.  The act is amended by adding a section to read:

22

Section 1507.1.  Settlement Agreements; Enforcement

23

Actions.--(a)  Except as set forth in subsection (b), the

24

following apply:

25

(1)  Unless otherwise provided by this section or another

26

provision of law, money received by an agency as a result of a

27

settlement, litigation or an enforcement action shall be deemed

28

funds of the Commonwealth and shall, upon receipt, be deposited

29

into the General Fund.

30

(2)  If money to pursue a settlement, litigation or

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1

enforcement action was expended by the agency from the General

2

Fund or other fund or account established by law, those costs

3

recovered shall be credited to the appropriation, fund or

4

account from which the original costs were expended and used as

5

provided by law and shall be available for expenditure in

6

accordance with the law governing the expenditure.

7

(3)  Amounts that exceed the actual costs of a settlement,

8

litigation or enforcement action and are deposited in the

9

General Fund may be redirected to the agency that was the party

10

to the settlement, litigation or enforcement action to

11

supplement the activities of the agency upon request of the

12

agency and approval of the Secretary of the Budget.

13

(4)  If there is a redirection under paragraph (3), the

14

secretary shall provide notice of the transfer to the chair of

15

the Appropriations Committee of the Senate and the chair of the

16

Appropriations Committee of the House of Representatives and

17

include a detailed determination of actual costs incurred by the

18

agency and the identification of the associated settlement,

19

litigation or enforcement action.

20

(b)  Subsection (a) shall not apply as follows:

21

(1)  The recovery of Federal money shall be disposed of in

22

accordance with this section and applicable Federal or State law

23

or contract.

24

(2)  Nothing in this section shall supersede any payments,

25

including restitution, ordered by a court.

26

(c)  Definition.--As used in this section, the term "Agency"

27

includes the Commonwealth and an agency or instrumentality of

28

the Commonwealth.

29

Section 4.  The definitions of "city" and "fund" in section

30

1602-B of the act, added October 9, 2009 (P.L.537, No.50), are

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1

amended and the section is amended by adding a definition to

2

read:

3

Section 1602-B.  Definitions.

4

The following words and phrases when used in this article

5

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

6

context clearly indicates otherwise:

7

* * *

8

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

9

date of this section] on the date of the designation of a

10

neighborhood improvement zone by the contracting authority, a

11

population of at least 106,000 [and not more than 107,000],

12

based on the [2000] most recent Federal decennial census.

13

* * *

14

"Earned income tax."  A tax or portion of a tax imposed on

15

earned income within a neighborhood improvement zone under the

16

act of December 31, 1965 (P.L.1257, No.511), known as The Local

17

Tax Enabling Act, which a city, or a school district contained

18

entirely within the boundaries of or coterminous with the city,

19

is entitled to receive.

20

* * *

21

"Fund."  [The] A Neighborhood Improvement Zone Fund

22

established under section 1604-B.

23

* * *

24

Section 5.  Section 1604-B(a), (a.1)(3), (b) introductory

25

paragraph, (d), (e), (f) introductory paragraph and (g)

26

introductory paragraph of the act, amended or added October 9,

27

2009 (P.L.537, No.50) and June 30, 2011 (P.L.159, No.26), are

28

amended and the section is amended by adding a subsection to

29

read:

30

Section 1604-B.  Neighborhood Improvement Zone [Fund] Funds.

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1

(a)  Special [fund] funds.--[There is established a special

2

fund known as the Neighborhood Improvement Zone Fund.] Following

3

the designation of a neighborhood improvement zone, the

4

contracting authority shall, within ten days of making the

5

designation or, in the case of a neighborhood improvement zone

6

designated prior to July 1, 2012, within ten days of the

7

effective date of this subsection, notify the State Treasurer of

8

the designation. Upon the notice, the State Treasurer shall

9

establish a special fund for the benefit of each contracting

10

authority to be known as the "Neighborhood Improvement Zone

11

Fund." Interest income derived from investment of the money in

12

[the] each fund shall be credited by the Treasury Department to

13

the fund.

14

(a.1)  Certification.--

15

* * *

16

(3)  Any penalty imposed under this subsection shall be

17

imposed, assessed and collected by the department under the

18

provisions for imposing, assessing and collecting penalties

19

under Article II of the Tax Reform Code of 1971. When the

20

penalty is received, the money shall be transferred from the

21

General Fund to the fund of the contracting authority that

22

designated the neighborhood improvement zone in which the

23

qualifying business is located.

24

* * *

25

(a.2)  Transition.--

26

(1)  Subject to paragraphs (3) and (4), within 15 days of

27

the effective date of this subsection, the State Treasurer

28

shall:

29

(i)  determine the amount of money in the

30

Neighborhood Improvement Zone Fund existing on the

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1

effective date of this subsection which is attributable

2

to each neighborhood improvement zone; and

3

(ii)  transfer the amount of money in the

4

Neighborhood Improvement Zone Fund existing on the

5

effective date of this subsection to the fund for each

6

contracting authority for which money was deposited.

7

(2)  An entity collecting a local tax that, on the

8

effective date of this subsection, is in possession of money

9

attributable to a local tax not included in the amount to be

10

calculated and certified under subsection (b) shall promptly

11

remit that money to the local taxing authority entitled to

12

receive the money.

13

(3)  Transfer and repayment is subject to the following:

14

(i)  Before making the transfer under paragraph (1),

15

the State Treasurer shall:

16

(A)  determine the amount of money deposited in

17

the fund which was attributable to earned income

18

taxes that a contracting authority is not entitled to

19

receive under subsection (b); and

20

(B)  deduct the amount of money determined under

21

clause (A) from the money to be transferred under

22

paragraph (1).

23

(ii)  If any amount of the money under subparagraph

24

(i)(A) has already been transferred to a contracting

25

authority, the State Treasurer shall take action as

26

necessary to recover the money from the contracting

27

authority, including by way of setoff from money to be

28

paid to the contracting authority under paragraph (1).

29

The contracting authority shall comply with a demand made

30

by the State Treasurer for the repayment of money under

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1

this paragraph.

2

(4)  As to the money deducted or recovered under

3

paragraph (3), the State Treasurer shall:

4

(i)  identify the local taxing authorities that were

5

entitled to receive the money which was deposited in the

6

fund;

7

(ii)  determine the amount to which each local taxing

8

authority was entitled; and

9

(iii)  remit the amount under subparagraph (ii) to

10

the proper local taxing authority.

11

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

12

year, the department shall certify separately for each

13

neighborhood improvement zone the amounts of State taxes paid,

14

less any State tax refunds received, by the qualified businesses

15

filing reports under subsection (a.1)(1) to the Office of the

16

Budget. Beginning in [2012] the first full calendar year

17

following the designation of a neighborhood improvement zone and

18

in each calendar year thereafter, by November 1, the department

19

shall calculate, in accordance with this subsection, amounts of

20

State taxes actually received by the Commonwealth from each

21

qualified business that filed a report under subsection (a.1)(1)

22

in the prior calendar year, and the department shall certify the

23

amounts received to the office. An entity collecting a local tax

24

within the neighborhood improvement zone shall, within 30 days

25

of the end of each calendar year, submit all of the local taxes

26

that are to be calculated under this subsection and which were

27

paid in the prior calendar year, less any certified local tax

28

refunds received by a qualified business in the prior calendar

29

year, to the State Treasurer to be deposited in the fund under

30

subsection (d) of the contracting authority that established the

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1

neighborhood improvement zone. This subsection shall not apply

2

to any taxes subject to a valid pledge or security interest

3

entered into in order to secure debt service on bonds if the

4

pledge or security interest was entered into prior to May 1,

5

2011, or in the case of the neighborhood improvement zone

6

designated after July 1, 2011, on the date of the designation, 

7

and is still in effect. The following shall be the amounts

8

calculated and certified separately for each neighborhood

9

improvement zone

10

* * *

11

(d)  Transfers.--

12

(1)  Within ten days of receiving certification under

13

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

14

State Treasurer to, notwithstanding any other law, transfer

15

the amounts certified under subsection (b) for each

16

neighborhood improvement zone from the General Fund to the

17

fund of the contracting authority that established the

18

neighborhood improvement zone. Beginning in [2013] the second

19

calendar year following the designation of a neighborhood

20

improvement zone and in each year thereafter, the amounts

21

certified by the secretary to the State Treasurer and the

22

amounts transferred by the State Treasurer to the fund of

23

each contracting authority shall be determined as follows:

24

(i)  Add amounts certified by the department under

25

subsection (b) for the prior calendar year.

26

(ii)  Subtract from the sum under subparagraph (i)

27

any State tax refunds paid as certified by the department

28

under subsection (b).

29

(iii)  Add to the difference under subparagraph (ii)

30

any amounts certified under subsection (b) with respect

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1

to the second prior calendar year.

2

(iv)  Subtract from the sum under subparagraph (iii)

3

any amounts certified under subsection (b) which are less

4

than the amounts previously certified under subsection

5

(b) with respect to the second prior calendar year.

6

(2)  The State Treasurer shall provide an annual transfer

7

to the contracting authority until the bonds issued to

8

finance and refinance the improvement and development of the

9

neighborhood improvement zone and the construction of the

10

facility or facility complex are retired. Each annual

11

transfer to the contracting authority shall be equal to the

12

balance of the fund of the contracting authority on the date

13

of the transfer under paragraph (1).

14

(e)  Restriction on use of [funds.--Funds] money.--Money 

15

transferred under subsection (d) is subject to the following:

16

(1)  [May] The money may only be utilized [for] as

17

follows:

18

(i)  For payment of debt service, directly or

19

indirectly through a multitiered ownership structure or

20

other structure authorized by a contracting authority to

21

facilitate financing mechanisms, on bonds, or on

22

refinancing loans used to repay bonds, issued [for] to

23

finance or refinance:

24

(A)  the improvement and development of all or

25

any part of the neighborhood improvement zone; and

26

(B)  the [purpose of constructing] construction

27

of all or part of a facility or facility complex[,

28

for].

29

(ii)  For payment of debt service on bonds issued to

30

refund those bonds [and to replenish].

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1

(iii)  For replenishment of amounts required in any

2

debt service reserve funds established to pay debt

3

service on bonds.

4

(1.1)  The term of a bond to be refunded shall not exceed

5

the maximum term permitted for the original bond issued for

6

the improvement or development of the neighborhood

7

improvement zone and the construction of a facility or

8

facility complex.

9

(2)  [May] The money may not be utilized for purposes of

10

renovating or repairing a facility or facility complex,

11

except for capital maintenance and improvement projects.

12

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

13

collect a capital repair and improvement ticket surcharge, the

14

proceeds of which shall be deposited into the fund of each

15

contracting authority. The [funds] fund of each contracting

16

authority shall be maintained and utilized as follows:

17

* * *

18

(g)  Excess money.--Within 30 days of the end of each

19

calendar year, any money remaining in the fund of each

20

contracting authority at the end of the prior calendar year

21

after the required payments under subsection (d)(2) were made in

22

the prior calendar year shall be refunded in the following

23

manner:

24

* * *

25

Section 6.  Sections 1605-B, 1607-B and 1601-D.1 of the act,

26

amended or added June 30, 2011 (P.L.159, No.26), are amended to

27

read:

28

Section 1605-B.  Keystone Opportunity Zone.

29

[Before September 1, 2011, the] Within four months following

30

the designation of a neighborhood improvement zone, a city

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1

[shall] may apply to the Department of Community and Economic

2

Development to decertify and remove the designation of all or

3

part of the Keystone Opportunity Zone on behalf of all political

4

subdivisions. The provisions of section 309 of the act of

5

October 6, 1998 (P.L.705, No.92), known as the Keystone

6

Opportunity Zone, Keystone Opportunity Expansion Zone and

7

Keystone Opportunity Improvement Zone Act shall be deemed

8

satisfied as to all political subdivisions. The Department of

9

Community and Economic Development shall act on the application

10

within 30 days.

11

Section 1607-B.  Commonwealth pledges.

12

If and to the extent that the contracting authority pledges

13

amounts required to be transferred to the fund of the

14

contracting authority under section 1604-B for the payment of

15

bonds issued by the contracting authority, until all bonds

16

secured by the pledge of the contracting authority, together

17

with the interest on the bonds, are fully paid or provided for,

18

the Commonwealth pledges to and agrees with any person, firm,

19

corporation or government agency, whether in this Commonwealth

20

or elsewhere, and to and with any Federal agency subscribing to

21

or acquiring the bonds issued by the contracting authority that

22

the Commonwealth itself will not, nor will it authorize any

23

government entity to, abolish or reduce the size of the

24

neighborhood improvement zone; to amend or repeal section 1604-

25

B(a.1), (b) or (d); to limit or alter the rights vested in the

26

contracting authority in a manner inconsistent with the

27

obligations of the contracting authority with respect to the

28

bonds issued by the contracting authority; or to otherwise

29

impair revenues to be paid under this article to the contracting

30

authority necessary to pay debt service on bonds. Nothing in

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1

this section shall limit the authority of the Commonwealth or

2

any government entity to change the rate, tax bases or any

3

subject of any specific tax or repealing or enacting any tax.

4

Section 1601-D.1.  Administrative oversight.

5

(a)  Scope of article.--This section applies to a city of the

6

third class which is determined to be financially distressed

7

under section 203 of the act of July 10, 1987 (P.L.246, No.47),

8

known as the Municipalities Financial Recovery Act.

9

(b)  Limitation on bankruptcy.--Notwithstanding any other

10

provision of law, including section 261 of the Municipalities

11

Financial Recovery Act, no distressed city may file a petition

12

for relief under 11 U.S.C. Ch. 9 (relating to adjustment of

13

debts of a municipality) or any other Federal bankruptcy law,

14

and no government agency may authorize the distressed city to

15

become a debtor under 11 U.S.C. Ch. 9 or any other Federal

16

bankruptcy law.

17

(c)  Penalty.--If a city subject to this section fails to

18

comply with subsection (b), all Commonwealth funding to the city

19

shall be suspended.

20

(d)  Expiration.--This section shall expire [July 1, 2012]

21

November 30, 2012.

22

Section 7.  (Reserved).

23

Section 8.  (Reserved).

24

Section 9.  The act is amended by adding sections to read:

25

Section 1606-E.  Conventional oil and gas well bonding.

26

(a)  Requirement.--Notwithstanding 58 Pa.C.S. § 3225(a)(1)

27

(relating to bonding), the bond amount for conventional oil or

28

gas wells shall be $2,500 per well or a blanket bond of $25,000.

29

The Environmental Quality Board shall undertake a review of the

30

existing bond requirements for conventional oil and gas wells.

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1

Nothing in this section shall be construed to alter or repeal

2

section 1934-A of the act of April 9, 1929 (P.L.177, No.175),

3

known as The Administrative Code of 1929.

4

(b)  Definition.--As used in this section, the term

5

"conventional oil or gas well" means any oil or gas well which

6

is not an unconventional well as defined in 58 Pa.C.S. § 3203

7

(relating to definitions).

8

Section 1607-E.  Oil and gas operations in the South Newark

9

Basin.

10

(a)  Legislative findings.--The General Assembly finds and

11

declares that:

12

(1)  The United States Geological Survey issued a report

13

in June of 2012, entitled "Assessment of Undiscovered Oil and

14

Gas Resources of the East Coast Mesozoic Basins of the

15

Piedmont, Blue Ridge Thrust Belt, Atlantic Coastal Plain, and

16

New England Provinces, 2011."

17

(2)  The report under paragraph (1) revealed a mean

18

average of 876,000,000,000 cubic feet of total undiscovered

19

natural gas resources in the South Newark Basin assessment

20

unit.

21

(3)  The unique geologic and geochemical characteristics

22

of the South Newark Basin evaluated in the report under

23

paragraph (1) have not been adequately evaluated by the

24

Commonwealth and are deserving of further study.

25

(b)  Well permits.--The Department of Environmental

26

Protection may not issue well permits under 58 Pa.C.S. Ch. 32

27

(relating to development) to engage in oil and gas operations

28

within the geographic boundaries of the South Newark Basin, as

29

defined by the report under subsection (a), until all of the

30

following has occurred:

- 16 -

 


1

(1)  A study is completed by the Department of

2

Conservation and Natural Resources, in consultation with the

3

municipalities located in the South Newark Basin, evaluating

4

the practical resource recovery implications of the report

5

under subsection (a) and the fiscal impact of oil and gas

6

operations on the South Newark Basin.

7

(2)  Legislation authorizes the governing body of a

8

county situated in whole or in part within the South Newark

9

Basin that has spud a gas well located within its borders to

10

elect whether to impose a fee on gas wells pursuant to 58

11

Pa.C.S. Ch. 23 (relating to unconventional gas well fee).

12

(c)  Expiration.--This section shall expire January 1, 2018.

13

Section 10.  Section 1602-F of the act, added June 30, 2011

14

(P.L.159, No.26), is amended to read:

15

Section 1602-F.  Definitions.

16

The following words and phrases when used in this article

17

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

18

context clearly indicates otherwise:

19

"Affiliate."  As follows:

20

(1)  an entity which is part of the same "affiliated

21

group," as defined in section 1504(a) of the Internal Revenue

22

Code of 1986 (Public Law 99-514, 26 U.S.C. § 1504(a)), as a

23

Keystone Special Development Zone employer; or

24

(2)  an entity that would be part of the same "affiliated

25

group" except that the entity or the Keystone Special

26

Development employer is not a corporation.

27

"Department."  The Department of Community and Economic

28

Development of the Commonwealth.

29

"Employee."  An individual who:

30

(1)  is employed in this Commonwealth by a Keystone

- 17 -

 


1

Special Development Zone employer, or its predecessor, after

2

the effective date of this article;

3

(2)  is employed for at least 35 hours per week by a

4

Keystone Special Development Zone employer; and

5

(3)  spends at least 90% of his or her working time for

6

the Keystone Special Development Zone employer at the

7

Keystone Special Development Zone location.

8

"Full-time equivalent employee."  The whole number of

9

employees, rounded down, that equals the sum of:

10

(1)  the total paid hours, including paid time off and

11

family leave under the Family and Medical Leave Act of 1993

12

(Public Law 103-3, 29 U.S.C. § 2601 et seq.), of all of a

13

Keystone Special Development Zone employer's employees

14

classified as nonexempt during the Keystone Special

15

Development Zone employer's tax year divided by 2000; and

16

(2)  a total number arrived at by adding, for each

17

Keystone Special Development Zone employer's employee

18

classified as exempt scheduled to work at least 35 hours per

19

week, the fraction equal to the portion of the year the

20

exempt employee was paid by the Keystone Special Development

21

Zone employer. Whether an employee shall be classified as

22

exempt or nonexempt shall be determined under the Fair Labor

23

Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et

24

seq.).

25

The calculation under this definition excludes employees

26

previously employed by an affiliate and employees previously

27

employed by the Keystone Special Development Zone employer

28

outside of a Keystone Special Development Zone.

29

"Keystone Special Development Zone."  A parcel of real

30

property that meets all of the following:

- 18 -

 


1

(1)  On July 1, 2011, was within a special industrial

2

area, as described in section 305(a) of the act of May 19,

3

1995 (P.L.4, No.2), known as the Land Recycling and

4

Environmental Remediation Standards Act, for which the

5

Department of Environmental Protection has executed a special

6

industrial area consent order and agreement, as provided

7

under section 502(a) of the Land Recycling and Environmental

8

Remediation Standards Act.

9

(2)  On July 1, 2011[,]:

10

(i)  had no permanent vertical structures affixed to

11

it; or

12

(ii)  had a permanent vertical structure affixed to

13

it which has been deteriorated or abandoned for at least

14

20 years.

15

(3)  Is certified by the Department of Environmental

16

Protection as meeting the requirements of paragraphs (1) and

17

(2).

18

"Keystone Special Development Zone employer."  A person or

19

entity subject to the taxes imposed under Article III, IV, VI,

20

VII, VIII or XV of the act of March 4, 1971 (P.L.6, No.2) known

21

as the Tax Reform Code of 1971, who employs one or more

22

employees at a Keystone Special Development Zone. The term shall

23

include a pass-through entity. The term shall not include any of

24

the following:

25

(1)  An employer who, after January 1, 1990,

26

intentionally or negligently caused or contributed to, in any

27

material respect, a level of regulated substance above the

28

cleanup standards in the act of May 19, 1995 (P.L.4, No.2),

29

known as the Land Recycling and Environmental Remediation

30

Standards Act, on, in or under the Keystone Special

- 19 -

 


1

Development Zone at which an employee is employed.

2

(2)  An employer engaged in construction improvements on

3

a Keystone Special Development Zone.

4

"Pass-through entity."  A partnership as defined in section

5

301(n.0) of the act of March 4, 1971 (P.L.6, No.2), known as the

6

Tax Reform Code of 1971, or a Pennsylvania S corporation as

7

defined in section 301(n.1) of the Tax Reform Code of 1971.

8

"Qualified tax liability."  Any tax owed by a Keystone

9

Special Development Zone employer attributable to a business

10

activity conducted within a Keystone Special Development Zone

11

for a tax year under Article III, IV, VI, VII, VIII or XV of the

12

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

13

of 1971.

14

Section 10.1.  Section 1601-H of the act, added July 6, 2010

15

(P.L.279, No.46), is repealed:

16

[Section 1601-H.  Department of Education.

17

(a)  Applicability.--This section shall apply to Educational

18

Improvement Tax Credits awarded in fiscal year 2010-2011.

19

(b)  Restoration.--Notwithstanding Articles XVII-F and XXIX-E

20

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

21

Reform Code of 1971, for the tax credit established under

22

Article XVII-F of the Tax Reform Code of 1971, the amount

23

available to be awarded pursuant to section 1706-F(a) of the Tax

24

Reform Code of 1971 shall be $60,000,000 in fiscal year

25

2010-2011. The amount available to be awarded under section

26

1706-F(a)(1) and (2) of the Tax Reform Code of 1971 shall be as

27

follows:

28

(1)  The total aggregate amount of all tax credits

29

approved shall not exceed $53,604,000 in fiscal year

30

2010-2011. No less than $40,202,400 of the total aggregate

- 20 -

 


1

amount shall be used to provide tax credits for contributions

2

from business firms to scholarship organizations. No less

3

than $13,401,600 of the total aggregate amount shall be used

4

to provide tax credits for contributions from business firms

5

to educational improvement organizations.

6

(2)  The total aggregate amount of all tax credits

7

approved for contributions from business firms to

8

prekindergarten scholarship programs shall not exceed

9

$6,396,000 in fiscal year 2010-2011.]

10

Section 10.1a.  Sections 1602-H and 1603-H, added June 30,

11

2011 (P.L.159, No.26), are repealed:  

12

[Section 1602-H.  Department of Revenue.

13

For fiscal year 2011-2012 and each fiscal year thereafter and

14

notwithstanding section 1709-B(a) of the act of March 4, 1971

15

(P.L.6, No.2), known as the Tax Reform Code of 1971, the amount

16

of credits approved by the Department of Revenue under Article

17

XVII-B of the Tax Reform Code of 1971 shall not exceed

18

$55,000,000 in a fiscal year, and $11,000,000 of that amount

19

shall be allocated exclusively for small business. As used in

20

this section, the term "small business" has the meaning ascribed

21

in section 1702-B of the Tax Reform Code of 1971.

22

Section 1603-H.  Department of Community and Economic

23

Development.

24

For fiscal year 2011-2012 and each fiscal year thereafter,

25

the Department of Community and Economic Development may approve

26

tax credits as follows:

27

(1)  Notwithstanding section 1707-D(a) of the act of

28

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

29

1971, the aggregate amount of tax credits awarded under

30

Article XVII-D of the Tax Reform Code of 1971 shall not

- 21 -

 


1

exceed $60,000,000 in a fiscal year.

2

(2)  Notwithstanding section 1804-B(e) of the Tax Reform

3

Code of 1971, awards by the department shall not exceed

4

$10,100,000 in tax credits under Article XVIII-B of the Tax

5

Reform Code of 1971.]

6

Section 10.2.  The definition of "extension period" in

7

section 1602-I of the act, added July 6, 2010 (P.L.279, No.46),

8

is amended to read:

9

Section 1602-I.  Definitions.

10

The following words and phrases when used in this article

11

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

12

context clearly indicates otherwise:

13

* * *

14

"Extension period."  The period beginning after December 31,

15

2008, and ending before July 2, [2013] 2016.

16

* * *

17

Section 11.  Sections 1702-A and 1715-E of the act, amended

18

June 30, 2011 (P.L.159, No.26), are amended to read:

19

Section 1702-A.  Funding.

20

(a)  Intent.--It is hereby declared as the intent and goal of

21

the General Assembly to create a stabilization reserve in an

22

eventual amount of 6% of the revenues of the General Fund of the

23

Commonwealth.

24

(b)  Transfer of portion of surplus.--

25

(1)  Except as may be provided in paragraph (2), for

26

fiscal years beginning after June 30, 2002, the following

27

apply:

28

(i)  Except as set forth in this paragraph, if the

29

Secretary of the Budget certifies that there is a surplus

30

in the General Fund for a specific fiscal year, 25% of

- 22 -

 


1

the surplus shall be deposited by the end of the next

2

succeeding quarter into the Budget Stabilization Reserve

3

Fund.

4

(ii)  If the Secretary of the Budget certifies, after

5

June 30, 2005, that there is a surplus in the General

6

Fund for the fiscal year 2004-2005, 15% of the surplus

7

shall be deposited by the end of the next succeeding

8

quarter into the Budget Stabilization Reserve Fund.

9

(iii)  No amount of the surplus in the General Fund

10

for fiscal year 2007-2008 may be deposited into the

11

Budget Stabilization Reserve Fund.

12

(iv)  No amount of the surplus in the General Fund

13

for fiscal year 2010-2011 may be deposited into the

14

Budget Stabilization Reserve Fund.

15

(v)  No amount of the surplus in the General Fund for

16

fiscal year 2011-2012 may be deposited into the Budget

17

Stabilization Reserve Fund.

18

(2)  If, at the end of any fiscal year, the ending

19

balance of the Budget Stabilization Reserve Fund equals or

20

exceeds 6% of the actual General Fund revenues received for

21

the fiscal year in which the surplus occurs, 10% of the

22

surplus shall be deposited by the end of the next succeeding

23

quarter into the Budget Reserve Stabilization Fund.

24

(c)  Appropriated funds.--The General Assembly may at any

25

time provide additional amounts from any funds available to this

26

Commonwealth as an appropriation to the Budget Stabilization

27

Reserve Fund.

28

Section 1715-E.  Auditor General.

29

The following shall apply to appropriations to the Auditor

30

General:

- 23 -

 


1

(1)  Funds appropriated to the Department of the Auditor

2

General shall be for the purpose of performing postaudits in

3

accordance with generally accepted government auditing

4

standards.

5

(2)  [If] By March 31, the Auditor General [fails to]

6

shall deliver [an] to the Office of the Budget a complete 

7

annual audit of Commonwealth-managed federally funded

8

programs [by March 31, 2012, and each March 31 thereafter,]

9

in accordance with the Single Audit Act of 1984 (Public Law

10

98-502, 31 U.S.C. § 7501 et seq.) and related guidance issued

11

by the [United States] Office of Management and Budget; or

12

the Auditor General and the Office of the Budget must agree

13

in writing that extenuating circumstances prevent the Auditor

14

General from completing the audit by the specified date. If

15

there is noncompliance with this paragraph, the State

16

Treasurer shall not authorize the release of any funds

17

appropriated to the Auditor General in the quarter following

18

the failure of the Auditor General to deliver the audit until

19

the Auditor General completes the audit and delivers it to

20

the Office of the Budget. The Auditor General shall not bill

21

any Commonwealth agency to make up for any funding deficiency

22

caused by the State Treasurer withholding payments under this

23

paragraph.

24

(3)  The Auditor General shall provide the Office of the

25

Budget a Single Audit Engagement Letter, including the total

26

cost to perform the audit and a timeline each year for annual

27

funding approval.

28

Section 12.  Sections 1727-E and 1729-E(2)(i) of the act,

29

added July 17, 2007 (P.L.141, No.42), are amended to read:

30

Section 1727-E.  Department of Labor and Industry [(Reserved)].

- 24 -

 


1

For the "Reed Act-Unemployment Insurance" and "Reed Act-

2

Employment Services and Unemployment Insurance" appropriations,

3

the total amount which may be obligated shall not exceed the

4

limitations under section 903 of the Social Security Act (49

5

Stat. 620, 42 U.S.C. § 1103).

6

Section 1729-E.  Department of Public Welfare.

7

The following shall apply to appropriations for the

8

Department of Public Welfare:

9

* * *

10

(2)  Federal and State medical assistance payments. The

11

following shall apply:

12

(i)  [(Reserved).] No funds appropriated for approved

13

capitation plans shall be used to pay a provider who

14

fails to supply information in a form required by the

15

department in order to facilitate claims for Federal

16

financial participation for services rendered to general

17

assistance clients.

18

* * *

19

Section 13.  Repeals are as follows:

20

(1)  The General Assembly finds and declares as follows:

21

(i)  Each year, articles on budget implementation are

22

added to the act.

23

(ii)  These articles are temporary in nature but are

24

placed permanently into the act, utilizing article

25

numbers and section numbers.

26

(iii)  Reusing article numbers and section numbers

27

will keep the text of the act more concise.

28

(iv)  The repeal under paragraph (2) is necessary to

29

effectuate subparagraph (iii).

30

(2)  Articles XVII-F and XVII-G of the act, added July

- 25 -

 


1

17, 2007 (P.L.141, No.42), are repealed.

2

Section 14.  The act is amended by adding articles to read:

3

ARTICLE XVII-F

4

2012-2013 BUDGET IMPLEMENTATION

5

SUBARTICLE A

6

PRELIMINARY PROVISIONS

7

Section 1701-F.  Applicability.

8

Except as specifically provided in this article, this article

9

applies to the General Appropriation Act and all other

10

appropriation acts of 2012.

11

Section 1702-F.  Definitions and abbreviations.

12

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

13

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

14

section unless the context clearly indicates otherwise:

15

"General Appropriation Act."  The act of     , 2012 (P.L.   ,

16

No.   A), known as the General Appropriation Act of 2012.

17

"Secretary."  The Secretary of the Budget of the

18

Commonwealth.

19

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

20

this article shall have the meanings given to them in this

21

section:

22

"AIDS."  Acquired Immune Deficiency Syndrome.

23

"ARC."  Appalachian Regional Commission.

24

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

25

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

26

"BG."  Block Grant.

27

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

28

"CSBG."  Community Services Block Grant.

29

"DCSI."  Drug Control and Systems Improvement Formula Grant

30

Program.

- 26 -

 


1

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

2

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

3

"DOE."  Department of Energy.

4

"EEOC."  Equal Employment Opportunity Commission.

5

"EPA."  Environmental Protection Agency.

6

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

7

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

8

"FEMA."  Federal Emergency Management Agency.

9

"FTA."  Federal Transit Administration.

10

"HUD."  Department of Housing and Urban Development.

11

"ID."  Intellectual Disability.

12

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

13

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

14

104-208, 20 U.S.C. § 9101 et seq.).

15

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

16

"MHSBG."  Mental Health Services Block Grant.

17

"PAFE."  Pennsylvania Agricultural Food Exposition.

18

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

19

"RSAT."  Residential Substance Abuse Treatment.

20

"SABG."  Substance Abuse Block Grant.

21

"SCDBG."  Small Communities Development Block Grant.

22

"SDA."  Service Delivery Area.

23

"SSBG."  Social Services Block Grant.

24

"TANF."  Temporary Assistance for Needy Families.

25

"TANFBG."  Temporary Assistance for Needy Families Block

26

Grant.

27

"TEFAP."  Temporary Emergency Food Assistance Program.

28

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

29

105-220, 112 Stat. 936).

30

"WIC."  Women, Infants and Children Program.

- 27 -

 


1

SUBARTICLE B

2

EXECUTIVE DEPARTMENTS

3

Section 1711-F.  Governor (Reserved).

4

Section 1712-F.  Executive Offices.

5

(1)  Money appropriated to the Pennsylvania Commission on

6

Crime and Delinquency for intermediate punishment treatment

7

programs shall be allocated in the same proportion as funding

8

provided in fiscal year 2011-2012 for intermediate punishment

9

programs and for intermediate punishment drug and alcohol

10

treatment.

11

(2)  From money appropriated to the commission, at least

12

$85,000 shall be used to support the Statewide Automated

13

Victim Information and Notification System (SAVIN) to provide

14

offender information through county jails.

15

(3)  From money appropriated to the commission, at least

16

$50,000 shall be used for gang violence prevention

17

initiatives in counties of the third class.

18

(4)  From money appropriated for violence prevention

19

programs, at least $250,000 shall be used for programs in a

20

city of the first class.

21

Section 1713-F.  Lieutenant Governor (Reserved).

22

Section 1714-F.  Attorney General (Reserved).

23

Section 1715-F.  Auditor General (Reserved).

24

Section 1716-F.  Treasury Department (Reserved).

25

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

26

Section 1718-F.  Department of Agriculture.

27

At least 80% of the funds appropriated for hardwoods research

28

and promotion shall be equally distributed among the hardwood

29

utilization groups of this Commonwealth established prior to the

30

effective date of this section.

- 28 -

 


1

Section 1719-F.  Department of Community and Economic

2

Development.

3

The following shall apply to appropriations for the

4

Department of Community and Economic Development:

5

(1)  For fiscal year 2012-2013, money appropriated for

6

the Keystone Communities shall include allocations for the

7

Main Street and Elm Street programs in the same proportion as

8

amounts allocated in fiscal year 2011-2012.

9

(2)  Money appropriated for PennPORTS for fiscal year

10

2012-2013 shall be allocated as follows:

11

(i)  Six and ninety-seven hundredths percent for

12

PennPORTS operation.

13

(ii)  Eight percent for the Port of Pittsburgh.

14

(iii)  Twenty-three and three hundredths percent for

15

the Port of Erie.

16

(iv)  Sixty-two percent for the operating and

17

administrative expenses of the Philadelphia Regional Port

18

Authority.

19

(3)  Money appropriated for marketing to attract tourists

20

includes an allocation to market a biennial arts and cultural

21

activity which generates regional and Statewide economic

22

impact and allocations to promote annual arts and cultural

23

activities.

24

(4)  From money appropriated for Pennsylvania First,

25

$800,000 shall be distributed through a pilot program to

26

purchase mobile imaging and cardiovascular hospital

27

equipment.

28

Section 1720-F.  Department of Conservation and Natural

29

Resources (Reserved).

30

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

- 29 -

 


1

Section 1722-F.  Department of Education.

2

The following shall apply to appropriations for the

3

Department of Education in the General Appropriation Act:

4

(1)  Notwithstanding section 1905-D of the act of March

5

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

6

1949, funds appropriated for community education councils

7

shall be distributed as follows:

8

(i)  Each community education council which received

9

funding in fiscal year 2011-2012 shall receive an amount

10

equal to the amount it received in that fiscal year and a

11

pro rata share of $170,000.

12

(ii)  In addition to the funds received under

13

subparagraph (i), a grant in an amount not less than

14

$100,000 shall be awarded to a community education

15

council located in Potter County.

16

(iii)  No less than $350,000 shall be awarded to an

17

education consortium serving Cameron, Clarion,

18

Clearfield, Crawford, Elk, Forest, Jefferson, McKean,

19

Potter, Venango and Warren Counties.

20

(iv)  No less than $50,000 shall be awarded to an

21

education partnership located in Lackawanna County that

22

previously received funding from the department for a

23

postsecondary career training grant and is currently

24

providing community education services which support

25

business education partnerships.

26

(v)  No less than $50,000 shall be awarded to a

27

community education council located in Wayne County.

28

(2)  From funds appropriated for regional community

29

college services, $500,000 shall be distributed to a

30

community college in a county of the fourth class with a

- 30 -

 


1

population, based on the most recent Federal decennial

2

census, of at least 165,000 but not more than 180,000.

3

(3)  From funds appropriated for approved private

4

schools, $700,000 shall be allocated to a school which has

5

received approval from the department to begin serving

6

students as an approved private school for the 2012-2013

7

school year.

8

(4)  Notwithstanding 24 Pa.C.S. § 8329(a) (relating to

9

payments on account of social security deductions from

10

appropriations), when calculating payments by the

11

Commonwealth under 24 Pa.C.S. § 8329, the department shall

12

treat the following as covered wages which are not federally

13

funded:

14

(i)  Wages paid out of the ARRA State Stabilization

15

Fund.

16

(ii)  Wages paid out of the ARRA funds appropriated

17

for individuals with disabilities education (Part B -

18

preschool age 3-5).

19

(iii)  Wages paid out of the Education Jobs Fund

20

Grant.

21

(5)  For Federal funds redistributed to the department

22

from the act of August 10, 2010 (Public Law 111-226, 124

23

Stat. 2389), each district shall receive a pro rata share of

24

the Federal education job funds based on the amount of the

25

allocation it received in accordance with section 1722-L(14).

26

If a district notifies the department that it will refuse its

27

pro rata share of these funds, the department shall include

28

those refused funds in the pro rata distribution among the

29

remaining districts. This shall apply to appropriations made

30

to the department under Part XIX of the General Appropriation

- 31 -

 


1

Act.

2

(6)  Notwithstanding section 1724-A of the Public School

3

Code of 1949 or 24 Pa.C.S. § 8329, no payments shall be made

4

to charter schools or cyber charter schools authorized under

5

Article XVII-A of the Public School Code of 1949, from funds

6

appropriated for school employee's Social Security.

7

(7)  Notwithstanding any other provision of law, funds

8

from the set-aside under section 2509.8(e) of the Public

9

School Code of 1949 shall be allocated to each approved

10

private school with a day tuition rate determined to be less

11

than $32,000 during the 2010-2011 school year. The allocation

12

shall be determined as follows:

13

(i)  Subtract:

14

(A)  the approved private school's 2010-2011

15

school year day tuition rate; from

16

(B)  $38,072.

17

(ii)  Multiply:

18

(A)  the difference under subparagraph (i); by

19

(B)  the number of approved students enrolled in

20

the approved private school during the 2010-2011

21

school year.

22

(8)  From funds appropriated for Pennsylvania Charter

23

Schools for the Deaf and Blind, $750,000 shall be distributed

24

pro rata based on each school's share of required

25

contributions for public school employees' retirement.

26

(9)  Notwithstanding any other provision of law, the

27

department may directly distribute money from funds

28

appropriated in Part XIX of the General Appropriations Act

29

for basic education formula enhancement on behalf of a school

30

district located in a home rule county that was formerly a

- 32 -

 


1

county of the second class A and which has, as of June 30,

2

2012, outstanding statutory and accounts payable obligations

3

for the 2011-2012 fiscal year.

4

Section 1723-F.  Department of Environmental Protection.

5

The following shall apply to appropriations for the

6

Department of Environmental Protection in the General

7

Appropriation Act:

8

(1)  Notwithstanding section 502 of the act of July 9,

9

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

10

Energy Investment Act, in fiscal year 2012-2013, no funds

11

shall be appropriated from the General Fund to the department

12

for the Consumer Energy Program. Any appropriation for fiscal

13

year 2012-2013 is revoked.

14

(2)  (Reserved).

15

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

16

Section 1725-F.  Department of Health.

17

(1)  Funds appropriated for lupus programs shall be

18

distributed in the same proportion as distributed in fiscal

19

year 2011-2012.

20

(2)  Funds appropriated for biotechnology research

21

include allocations for regenerative medicine research; for

22

hepatitis and viral research; for drug research and clinical

23

trials related to cancer; and for genetic and molecular

24

research for disease identification and eradication.

25

Section 1726-F.  Insurance Department (Reserved).

26

Section 1727-F.  Department of Labor and Industry.

27

The following shall apply to appropriations for the

28

Department of Labor and Industry from the General Appropriation

29

Act:

30

(1)  The appropriation for payment to the Vocational

- 33 -

 


1

Rehabilitation Fund for work of the State Board of Vocational

2

Rehabilitation includes $2,153,000 for a Statewide

3

professional service provider association for the blind to

4

provide specialized services and prevention of blindness

5

services and $431,000 to provide specialized services and

6

prevention of blindness services in cities of the first

7

class.

8

(2)  From funds appropriated to the department for

9

general government operations, $250,000 shall be used for the

10

purchase of transportation assistance for job retention, job

11

training and job search activities for displaced, unemployed

12

and disabled individuals and families in counties of the

13

second class.

14

Section 1728-F.  Department of Military and Veterans Affairs

15

(Reserved).

16

Section 1729-F.  Department of Public Welfare.

17

The following shall apply to appropriations for the

18

Department of Public Welfare from the General Appropriation Act:

19

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

20

following shall apply:

21

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

22

may transfer Federal funds appropriated for TANFBG Child

23

Care Assistance to the CCDFBG Child Care Services

24

appropriation to provide child-care services to

25

additional low-income families if the transfer of funds

26

will not result in a deficit in the appropriation. The

27

secretary shall provide notice ten days prior to a

28

transfer under this subparagraph to the chairman and

29

minority chairman of the Appropriations Committee of the

30

Senate and the chairman and minority chairman of the

- 34 -

 


1

Appropriations Committee of the House of Representatives.

2

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

3

may transfer Federal funds appropriated for CCDFBG Child

4

Care Assistance to the CCDFBG Child Care Services

5

appropriation to provide child-care services to

6

additional low-income families, provided that the

7

transfer of funds will not result in a deficit in the

8

appropriation. The secretary shall provide notice ten

9

days prior to a transfer under this subparagraph to the

10

chairman and minority chairman of the Appropriations

11

Committee of the Senate and the chairman and minority

12

chairman of the Appropriations Committee of the House of

13

Representatives.

14

(2)  Federal and State medical assistance payments. The

15

following shall apply:

16

(i)  For fiscal year 2012-2013, payments to hospitals

17

for Community Access Fund grants shall be distributed

18

under the formulas utilized for these grants in fiscal

19

year 2011-2012. If the total funding available under this

20

subparagraph is less than that available in fiscal year

21

2011-2012, payments shall be made on a pro rata basis.

22

(ii)  Funds appropriated for medical assistance

23

transportation shall only be utilized as a payment of

24

last resort for transportation for eligible medical

25

assistance recipients.

26

(iii)  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.

- 35 -

 


1

(iv)  Federal or State funds appropriated under the

2

General Appropriation Act in accordance with Article

3

VIII-H of the act of June 13, 1967 (P.L.31, No.21), known

4

as the Public Welfare Code, not used to make payments to

5

hospitals qualifying as Level III trauma centers or

6

seeking accreditation as Level III trauma centers shall

7

be used to make payments to hospitals qualifying as

8

Levels I and II trauma centers.

9

(v)  Qualifying university-affiliated physician

10

practice plans which received funds for the fiscal year

11

2011-2012 shall not receive any less than the State

12

appropriation made available to those university-

13

affiliated physician practice plans during fiscal year

14

2011-2012. From funds appropriated for physician practice

15

plans, $1,500,000 shall be distributed to a physician

16

practice plan serving a health system located in a city

17

of the first class and a contiguous county of the second

18

class A which did not receive funding during fiscal year

19

2011-2012.

20

(vi)  Qualifying academic medical centers which

21

received funds for the fiscal year 2011-2012 shall not

22

receive any less than the State appropriation made

23

available to those academic medical centers during fiscal

24

year 2011-2012. From funds appropriated for qualifying

25

academic medical centers:

26

(A)  $2,000,000 shall be distributed to an

27

academic medical center located in a third class

28

county with a population between 210,000 and 215,000

29

under the 2010 Federal decennial census;

30

(B)  $500,000 shall be distributed to an academic

- 36 -

 


1

medical center located in a third class county with a

2

population between 279,000 and 282,000 under the 2010

3

Federal decennial census; and

4

(C)  $500,000 shall be distributed to an academic

5

medical center located in a city of the first class

6

that did not receive funding during fiscal year

7

2010-2011.

8

(vii)  Notwithstanding any other law, funds

9

appropriated for medical assistance payments-inpatient,

10

exclusive of inpatient services provided through

11

capitation plans, shall include sufficient funds for two

12

separate All Patient Refined Diagnostic Related Group

13

payments for inpatient acute care general hospital stays

14

for:

15

(A)  normal newborn care; and

16

(B)  mothers obstetrical delivery.

17

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

18

(i)  Funds appropriated for breast cancer screening

19

may be used for women's medical services, including

20

noninvasive contraception supplies.

21

(ii)  (Reserved).

22

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

23

(i)  Funds appropriated for women's service programs

24

grants to nonprofit agencies whose primary function is to

25

promote childbirth and provide alternatives to abortion

26

shall be expended to provide services to women until

27

childbirth and for up to 12 months thereafter, including

28

food, shelter, clothing, health care, counseling,

29

adoption services, parenting classes, assistance for

30

postdelivery stress and other supportive programs and

- 37 -

 


1

services and for related outreach programs. Agencies may

2

subcontract with other nonprofit entities which operate

3

projects designed specifically to provide all or a

4

portion of these services. Projects receiving funds

5

referred to in this subparagraph shall not promote, refer

6

for or perform abortions or engage in any counseling

7

which is inconsistent with the appropriation referred to

8

in this subparagraph and shall be physically and

9

financially separate from any component of any legal

10

entity engaging in such activities.

11

(ii)  Federal funds appropriated for TANFBG

12

Alternatives to Abortion shall be utilized solely for

13

services to women whose gross family income is below 185%

14

of the Federal poverty guidelines.

15

(5)  County children and youth programs. The following

16

shall apply:

17

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

18

State appropriation for county children and youth

19

programs to each county shall be expended until each

20

county submits to the department data for the prior State

21

fiscal year, and updated quarterly, on the unduplicated

22

caseloads, unduplicated services and number of

23

caseworkers by county program. Data shall be submitted in

24

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

25

shall be sent to the chairman and minority chairman of

26

the Appropriations Committee of the Senate and to the

27

chairman and minority chairman of the Appropriations

28

Committee of the House of Representatives.

29

(ii)  Reimbursement for children and youth services

30

made under section 704.1 of the Public Welfare Code shall

- 38 -

 


1

not exceed the amount of State funds appropriated. It is

2

the intent of the General Assembly that counties do not

3

experience any adverse fiscal impact due to the

4

department's maximization efforts.

5

(6)  Community-based family centers. No funds

6

appropriated for community-based family centers may be

7

considered as part of the base for calculation of the county

8

child welfare needs-based budget for a fiscal year.

9

(7)  The provisions of 8 U.S.C. §§ 1611 (relating to

10

aliens who are not qualified aliens ineligible for Federal

11

public benefits), 1612 (relating to limited eligibility of

12

qualified aliens for certain Federal programs) and 1642

13

(relating to verification of eligibility for Federal public

14

benefits) shall apply to payments and providers.

15

(8)  To supplement the funds appropriated to the

16

department for medical assistance for workers with

17

disabilities, in addition to the monthly premium established

18

in section 1503(b)(1) of act of June 26, 2001 (P.L.755,

19

No.77), known as the Tobacco Settlement Act, the department

20

may adjust the percentage of the premium, upon approval of

21

the Centers for Medicare and Medicaid Services as authorized

22

under Federal requirements. Failure to make payments in

23

accordance with this paragraph or section 1503(b)(1) of the

24

Tobacco Settlement Act shall result in the termination of

25

medical assistance coverage.

26

(9)  From funds appropriated for autism intervention and

27

services, $450,000 shall be distributed to a behavioral

28

health facility located in a fifth class county with a

29

population between 130,000 and 135,000 under the 2010 Federal

30

decennial census that operates a center for autism and

- 39 -

 


1

developmental disabilities and $240,000 shall be distributed

2

to an institution of higher education which provides autism

3

education and diagnostic curriculum located in a city of the

4

first class that operates a center for autism in a county of

5

the second class A.

6

(10)  The department shall conduct a study to analyze the

7

impact of the current funding formula and the factors

8

weighted to determine Statewide distribution of funding unmet

9

needs; access to sexual assault victim services; and the

10

relationship of the funding to rural, urban and suburban

11

regions of this Commonwealth. The study shall include input

12

from a geographic cross section of the subgrantees operating

13

the rape crisis programs and providing direct services,

14

including programs which serve the majority of sexual assault

15

victims. The department shall, by January 31, 2013, report

16

its findings, including the rationale for the current

17

weighted formula and any recommendations for formula changes,

18

to the chair of the Appropriations Committee of the Senate

19

and the chair of the Appropriations Committee of the House of

20

Representatives. The Pennsylvania Coalition Against Rape

21

shall provide data and otherwise cooperate with the

22

department to conduct the study.

23

(11)  Notwithstanding any other law, for fiscal year

24

2012-2013, the department may reallocate State funds

25

resulting from any unspent funds allocated to counties for

26

fiscal year 2011-2012 for mental health and intellectual

27

disability services under the act of October 20, 1966 (3rd

28

Sp.Sess., P.L.96, No.6), known as the Mental Health and

29

Intellectual Disability Act of 1966, to other counties based

30

on criteria determined by the department.

- 40 -

 


1

(12)  The department shall conduct a study to develop a

2

new county funding formula that provides a more equitable

3

distribution of funds and considers the most recent

4

population data. By January 1, 2013, the department shall

5

submit a report including the new county funding formula, the

6

factors involved in developing the formula, the impact on

7

county allocations and recommendations regarding

8

implementation.

9

Section 1730-F.  Department of Revenue.

10

The following shall apply to appropriations for the

11

Department of Revenue in the General Appropriation Act:

12

(1)  The Enhanced Revenue Collection Account created

13

under section 1730-L for fiscal years 2010-2011 and 2011-2012

14

shall continue through fiscal year 2016-2017. Revenues

15

collected and the amount of refunds avoided as a result of

16

expanded tax return reviews and tax collection activities

17

shall be deposited into the account. The following shall

18

apply:

19

(i)  Of the funds in the account, for each of the

20

fiscal years 2012-2013 through fiscal year 2016-2017, up

21

to $10,000,000 is appropriated to the department to fund

22

the costs associated with increased tax collection

23

enforcement and reduction in tax refund errors. The

24

balance of the funds in the account on June 15, 2012, and

25

each June 15 thereafter shall be transferred to the

26

General Fund or other authorized fund.

27

(ii)  The department shall issue a report to the

28

Governor, the majority chair and the minority chair of

29

the Appropriations Committee of the Senate and the

30

majority chair and minority chair of the Appropriations

- 41 -

 


1

Committee of the House of Representatives by June 1,

2

2013, and by each June 1, thereafter, with the following

3

information:

4

(A)  A detailed breakdown of the department's

5

administrative costs in implementing the activities

6

described under this section.

7

(B)  The amount of revenue collected and the

8

amount of refunds avoided as a result of the

9

activities described under this paragraph, including

10

details of the type of tax generating the revenue and

11

avoided refunds.

12

(2)  (Reserved).

13

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

14

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

15

Section 1733-F.  Pennsylvania State Police.

16

The following shall apply to appropriations for the

17

Pennsylvania State Police from the General Appropriation Act:

18

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

19

2170 (relating to reimbursement of expenses) shall be limited

20

to money available. If money is not available to make full

21

payments, the Municipal Police Officers' Education and

22

Training Commission shall make payments on a pro rata basis.

23

(2)  Money appropriated for general government operations

24

shall include adequate funding for the recruitment, education

25

and training of a cadet class of not less than 100

26

individuals.

27

Section 1734-F.  (Reserved).

28

Section 1735-F.  Pennsylvania Emergency Management Agency

29

(Reserved).

30

Section 1736-F.  Pennsylvania Fish and Boat Commission

- 42 -

 


1

(Reserved).

2

Section 1737-F.  State System of Higher Education (Reserved).

3

Section 1737.1-F.  State-related institutions (Reserved). 

4

Section 1738-F.  Pennsylvania Higher Education Assistance Agency

5

(Reserved).

6

Section 1739-F.  Pennsylvania Historical and Museum Commission

7

(Reserved).

8

Section 1740-F.  Pennsylvania Infrastructure Investment

9

Authority (Reserved).

10

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

11

Section 1742-F.  Pennsylvania Board of Probation and Parole

12

(Reserved).

13

Section 1743-F.  (Reserved).

14

Section 1744-F.  (Reserved).

15

Section 1745-F.  (Reserved).

16

Section 1746-F.  (Reserved).

17

Section 1747-F.  (Reserved).

18

Section 1748-F.  Commonwealth Financing Authority.

19

The Board of the Commonwealth Financing Authority shall use

20

at least $5,500,000 of interest earned from the investment of

21

unexpended authority bond proceeds to pay the principal and

22

interest due to be paid for authority bonds during fiscal year

23

2012-2013.

24

Section 1749-F.  Thaddeus Stevens College of Technology

25

(Reserved).

26

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

27

Section 1751-F.  LIHEABG (Reserved).

28

SUBARTICLE C

29

STATE GOVERNMENT SUPPORT AGENCIES

30

Section 1761-F.  Health Care Cost Containment Council.

- 43 -

 


1

The Health Care Cost Containment Council shall submit a

2

report to the chairman and minority chairman of the

3

Appropriations Committee of the Senate and the chairman and

4

minority chairman of the Appropriations Committee of the House

5

of Representatives specifying the amount and source of proceeds

6

received from the sale of data by the council. The report shall

7

supplement the annual report of financial expenditures required

8

under section 17.1 of the act of July 8, 1986 (P.L.408, No.89),

9

known as the Health Care Cost Containment Act. The proceeds

10

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

11

the council.

12

Section 1762-F.  State Ethics Commission (Reserved).

13

Section 1763-F.  Legislative Reference Bureau (Reserved).

14

Section 1764-F.  Legislative Budget and Finance Committee.

15

(a)  Environmental study.--

16

(1)  The Legislative Budget and Finance Committee, in

17

consultation with the Pennsylvania Infrastructure Investment

18

Authority, shall conduct a study of how the Commonwealth can

19

meet nutrient reduction planning targets contained in any

20

watershed implementation plan.

21

(2)  Contents.--The study shall include:

22

(i)  A review of the cost, the environmental,

23

recreational and public health and safety impact and

24

other benefits realized by the Commonwealth and

25

municipalities from reductions of water quality

26

impairment from nutrients in major watersheds.

27

(ii)  An assessment of the use of competitive bidding

28

for long-term verified nutrient credits rather than

29

sector allocation targets in any watershed implementation

30

plan.

- 44 -

 


1

(iii)  An analysis of funding options, including use

2

of any available Federal, State or local funds for the

3

purchase of nutrient credits.

4

(3)  Results.--Results of the study shall be presented by

5

December 30, 2012, to all of the following:

6

(i)  The following committees of the Senate:

7

(A)  Agriculture and Rural Affairs.

8

(B)  Environmental Resources and Energy.

9

(C)  Local Government.

10

(ii)  The following committees of the House of

11

Representatives:

12

(A)  Agriculture and Rural Affairs.

13

(B)  Environmental Resources and Energy.

14

(C)  Local Government.

15

(iii)  The Secretary of Agriculture.

16

(iv)  The Secretary of Community and Economic

17

Development.

18

(v)  The Secretary of Environmental Protection.

19

(b)  (Reserved).

20

Section 1765-F.  Legislative Data Processing Committee

21

(Reserved).

22

Section 1766-F.  Joint State Government Commission (Reserved).

23

Section 1767-F.  Joint Legislative Air and Water Pollution

24

Control and Conservation Committee (Reserved).

25

Section 1768-F.  Legislative Audit Advisory Commission

26

(Reserved).

27

Section 1769-F.  Independent Regulatory Review Commission

28

(Reserved).

29

Section 1770-F.  Capitol Preservation Committee (Reserved).

30

Section 1771-F.  Pennsylvania Commission on Sentencing

- 45 -

 


1

(Reserved).

2

Section 1772-F.  Center for Rural Pennsylvania (Reserved).

3

Section 1773-F.  Commonwealth Mail Processing Center (Reserved).

4

Section 1774-F.  Transfers (Reserved).

5

SUBARTICLE D

6

JUDICIAL DEPARTMENT

7

Section 1781-F.  Supreme Court (Reserved).

8

Section 1782-F.  Superior Court (Reserved).

9

Section 1783-F.  Commonwealth Court (Reserved).

10

Section 1784-F.  Courts of common pleas.

11

(1)  The sum of $1,100,000 is appropriated for the

12

operations of the courts of common pleas, including the

13

salaries and expenses of judges. This amount shall be in

14

addition to funds appropriated to the courts of common pleas

15

in the General Appropriation Act.

16

(2)  Funds appropriated for court consolidation grants in

17

counties of the second class may be used by the county for

18

judicial expenses.

19

Section 1785-F.  Community courts; magisterial district judges

20

(Reserved).

21

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

22

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

23

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

24

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

25

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

26

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

27

Section 1792-F.  Senior judges (Reserved).

28

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

29

SUBARTICLE E

30

GENERAL ASSEMBLY

- 46 -

 


1

(Reserved)

2

ARTICLE XVII-G

3

2012-2013 RESTRICTIONS ON APPROPRIATIONS

4

FOR FUNDS AND ACCOUNTS

5

Section 1701-G.  Applicability.

6

Except as specifically provided in this article, this article

7

applies to the act of    , 2012 (P.L.   No.   A), known as the

8

General Appropriation Act of 2012 and all other appropriation

9

acts of 2012.

10

Section 1702-G.  State Lottery Fund.

11

(1)  Funds appropriated for PENNCARE shall not be

12

utilized for administrative costs by the Department of Aging.

13

(2)  (Reserved).

14

Section 1703-G.  Energy Conservation and Assistance Fund

15

(Reserved).

16

Section 1704-G.  Judicial Computer System Augmentation Account

17

(Reserved).

18

Section 1704.1-G.  Access to Justice Account (Reserved).

19

Section 1705-G.  Emergency Medical Services Operating Fund

20

(Reserved).

21

Section 1706-G.  The State Stores Fund (Reserved).

22

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

23

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

24

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

25

Section 1710-G.  HOME Investment Trust Fund (Reserved).

26

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

27

Section 1712-G.  Banking Department Fund (Reserved)

28

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

29

Section 1714-G.  Ben Franklin Technology Development Authority

30

Fund (Reserved).

- 47 -

 


1

Section 1715-G.  Tobacco Settlement Fund.

2

(a)  Deposits.--

3

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

4

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

5

the Tobacco Settlement Act, the following shall apply:

6

(i)  For fiscal year 2012-2013, the strategic

7

contribution payments received in fiscal year 2011-2012

8

under the Master Settlement Agreement shall remain in the

9

Tobacco Settlement Fund.

10

(ii)  For fiscal year 2012-2013, the funds

11

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

12

Settlement Act shall remain in the Tobacco Settlement

13

Fund.

14

(iii)  For fiscal year 2012-2013, 62.5% of the money

15

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

16

Settlement Act may not be expended, transferred or lapsed

17

but shall remain in the Tobacco Settlement Fund.

18

(iv)  For fiscal year 2012-2013, 30% of the money

19

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

20

Settlement Act for health-related research under section

21

906(2) and (3) of the Tobacco Settlement Act may not be

22

expended, transferred or lapsed but shall remain in the

23

Tobacco Settlement Fund.

24

(v)  For fiscal year 2012-2013, 18.2% of the money

25

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

26

Settlement Act may not be expended, transferred or lapsed

27

but shall remain in the Tobacco Settlement Fund.

28

(vi)  For fiscal year 2012-2013, 33.3% of the money

29

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

30

Settlement Act may not be expended, transferred or lapsed

- 48 -

 


1

but shall remain in the Tobacco Settlement Fund.

2

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

3

shall be appropriated for health-related purposes. If

4

applicable, the amount appropriated under this paragraph

5

shall be matched by appropriated Federal augmenting funds.

6

(b)  Use of funds.--Funds deposited in the Tobacco Settlement

7

Fund from payments received in April 2012 and April 2013 shall

8

be used to make appropriations under this section and section

9

306 of the Tobacco Settlement Act.

10

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

11

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

12

follows:

13

(1)  Thirty percent of grant funding to primary

14

contractors for local programs shall be allocated equally

15

among each of the 67 counties.

16

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

17

contractors for local programs shall be allocated on a per

18

capita basis of each county with a population greater than

19

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

20

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

21

each county.

22

(3)  Budgets shall be developed by each primary

23

contractor to reflect service planning and expenditures in

24

each county. Each primary contractor shall ensure that

25

services are available to residents of each county and must

26

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

27

paragraphs (1) and (2).

28

(4)  The Department of Health shall compile a detailed

29

annual report of expenditures per county and the specific

30

programs offered in each region. This report shall be made

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1

available on the department's publicly available Internet

2

website within 60 days following the close of each fiscal

3

year.

4

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

5

which have not been spent within a service area may be

6

reallocated to support programming in the same region.

7

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

8

from an appropriation by the General Assembly from the Tobacco

9

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

10

official.

11

(e)  Health Venture Investment Account investments.--

12

Notwithstanding Chapter 3 of the Tobacco Settlement Act, all

13

assets, nonliquid investments, contractually obligated money,

14

return on investments and any other money or assets in the

15

Health Venture Investment Account shall be retained in the

16

Health Venture Investment Account for continued investment by

17

the Tobacco Settlement Investment Board in health care,

18

biotechnology or any other health-related businesses which are

19

expected to grow substantially in the future. The requirements

20

for venture capital investments outlined in section 305(f) of

21

the Tobacco Settlement Act shall be maintained.

22

Section 1716-G.  (Reserved).

23

Section 1717-G.  Restricted receipt accounts.

24

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

25

receipt accounts for the purpose of administering Federal grants

26

only for the purposes designated in this section.

27

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

28

following restricted receipt accounts may be established for the

29

Department of Community and Economic Development:

30

(1)  ARC Housing Revolving Loan Program.

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1

(2)  (Reserved).

2

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

3

following restricted receipt accounts may be established for the

4

Department of Conservation and Natural Resources:

5

(1)  Federal Aid to Volunteer Fire Companies.

6

(2)  Federal Land and Water Conservation Fund Act.

7

(3)  National Forest Reserve Allotment.

8

(4)  Federal Land and Water Conservation Fund Act -

9

Conservation and Natural Resources.

10

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

11

receipt accounts may be established for the Department of

12

Education:

13

(1)  Education of the Disabled - Part C.

14

(2)  LSTA - Library Grants.

15

(3)  The Pennsylvania State University Federal Aid.

16

(4)  Emergency Immigration Education Assistance.

17

(5)  Education of the Disabled - Part D.

18

(6)  Homeless Adult Assistance Program.

19

(7)  Severely Handicapped.

20

(8)  Medical Assistance Reimbursements to Local Education

21

Agencies.

22

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

23

restricted receipt accounts may be established for the

24

Department of Environmental Protection:

25

(1)  Federal Water Resources Planning Act.

26

(2)  Flood Control Payments.

27

(3)  Soil and Water Conservation Act - Inventory of

28

Programs.

29

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

30

accounts may be established for the Department of Health:

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1

(1)  Share Loan Program.

2

(2)  (Reserved).

3

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

4

receipt accounts may be established for the Department of

5

Transportation:

6

(1)  Capital Assistance Elderly and Handicapped Programs.

7

(2)  Railroad Rehabilitation and Improvement Assistance.

8

(3)  Ridesharing/Van Pool Program - Acquisition.

9

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

10

restricted receipt accounts may be established for the

11

Pennsylvania Emergency Management Agency:

12

(1)  Receipts from Federal Government - Disaster Relief -

13

Disaster Relief Assistance to State and Political

14

Subdivisions.

15

(2)  (Reserved).

16

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

17

following restricted receipt accounts may be established for the

18

Pennsylvania Historical and Museum Commission:

19

(1)  Federal Grant - National Historic Preservation Act.

20

(2)  (Reserved).

21

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

22

accounts may be established for the Executive Offices:

23

(1)  Retired Employees Medicare Part D.

24

(2)  Justice Assistance.

25

(3)  Juvenile Accountability Incentive.

26

(4)  Early Retiree Reinsurance Program.

27

Section 1718-G.  State Gaming Fund (Reserved).

28

Section 1719-G.  Veterans' Trust Fund.

29

There is established a Veterans' Trust Fund in the State

30

Treasury. Upon the sale of lands, buildings or other real estate

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1

used for veterans services or programs under the jurisdiction of

2

the Department of Military and Veterans Affairs, $1,700,000

3

shall be transferred from the General Fund and deposited into

4

the Veterans' Trust Fund for veterans' services. The sum of

5

$700,000 is appropriated to the Department of Military and

6

Veterans Affairs for veterans' service organizations.

7

Section 1720-G.  State Farm Products Show Fund.

8

From money transferred to the State Farm Products Show Fund,

9

$2,000,000 shall be distributed to county fairs.

10

Section 1721-G.  Pennsylvania Race Horse Development Fund.

11

The transfer in the act of    , 2012 (P.L.   No.   A), known

12

as the General Appropriation Act of 2012, from the Pennsylvania

13

Race Horse Development Fund to the State Farm Products Show Fund

14

shall occur in four equal quarterly payments for the fiscal year

15

2012-2013.

16

Section 15.  Section 1701-O of the act, added June 30, 2011

17

(P.L.159, No.26), is amended to read:

18

Section 1701-O.  Audits of Race Horse Development Funds.

19

The following shall apply:

20

(1)  By December 31, 2011, and each December 31

21

thereafter, the [Department of Agriculture, in conjunction

22

with the] Office of the Budget[,] shall conduct a financial

23

audit of all funds distributed under 4 Pa.C.S. § [1406(a)] 

24

1406 (relating to distributions from Pennsylvania Race Horse

25

Development Fund) for the prior fiscal year. The audit shall

26

include recommendations for changes relating to the

27

maintenance, use or administration of these funds.

28

(2)  The audits and audited financial statements required

29

under this section [and 4 Pa.C.S. § 1406(e) for fiscal years

30

ending prior to June 30, 2011,] shall be open [for] to the 

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1

public [inspection and provided, within 60 days of the

2

effective date of this section, to the persons listed in

3

paragraph (5)].

4

(3)  The following apply:

5

(i)  [Notwithstanding 4 Pa.C.S. § 1406(e), each] Each 

6

horsemen's organization shall, within 90 days after the

7

end of the organization's fiscal year, prepare annual

8

financial statements in accordance with generally

9

accepted accounting principles for the horsemen's

10

organization and all of its affiliates.

11

(ii)  The financial statements required under

12

subparagraph (i) shall be prepared beginning in the

13

horsemen's organization fiscal year ending prior to June

14

30, 2011, and for each fiscal year thereafter.

15

(iii)  The financial statements required under

16

subparagraph (i) shall include additional information as

17

necessary to reconcile the information in the financial

18

statement to the amounts received by the horsemen's

19

organization during the same fiscal year and as otherwise

20

directed by the Office of the Budget.

21

(4)  The [department may] office shall engage independent

22

certified public accountants or actuaries to conduct the

23

audit under paragraph (1) and to audit the annual financial

24

statements and accompanying additional information filed

25

under paragraph (3) for each fiscal year. The [department]

26

office shall provide copies of each audit to the persons

27

listed in paragraph (5)(ii), (iii), (iv) and (v).

28

(5)  [The] Within ten days of completion of the audits

29

under paragraphs (1) and (4), the horsemen's organization

30

shall provide all financial statements, reports and

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1

additional information required under paragraph (3) to all of

2

the following within 90 days of the end of the organization's

3

fiscal year:

4

(i)  The [department] Department of Agriculture.

5

(ii)  The chairman and minority chairman of the

6

Community, Economic and Recreational Development

7

Committee of the Senate and the chairman and minority

8

chairman of the Gaming Oversight Committee of the House

9

of Representatives.

10

(iii)  The chairman and minority chairman of the

11

Agriculture and Rural Affairs Committee of the Senate and

12

the chairman and minority chairmen of the Agriculture and

13

Rural Affairs Committee of the House of Representatives.

14

(iv)  The Pennsylvania Gaming Control Board.

15

(v)  The State Horse Racing Commission and the State

16

Harness Racing Commission.

17

(6)  All distributions under 4 Pa.C.S. § 1406 shall be

18

suspended for any horsemen's organization that the

19

[department] office certifies is out of compliance with the

20

requirements of this section.

21

(7)  Each horsemen's organization shall cooperate fully

22

with all audits under this section and shall reimburse the

23

[department] office for all fees and costs to administer this

24

section. 

25

(8)  For the purposes of this section, the term

26

"horsemen's organization" shall have the same meaning as

27

defined under 4 Pa.C.S. § 1103 (relating to definitions).

28

Section 16.  The addition of section 1606-E of the act shall

29

apply retroactively to April 16, 2012.

30

Section 17.  Repeals are as follows:

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1

(1)  The General Assembly declares the repeal under

2

paragraph (2) is necessary to effectuate the amendment of

3

section 1701-O of the act.

4

(2)  The provisions of 4 Pa.C.S. § 1406(e) are repealed.

5

Section 18.  This act shall take effect immediately.

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