AN ACT

 

1Amending the act of April 9, 1929 (P.L.343, No.176), entitled, 
2as amended, "An act relating to the finances of the State 
3government; providing for the settlement, assessment, 
4collection, and lien of taxes, bonus, and all other accounts 
5due the Commonwealth, the collection and recovery of fees and 
6other money or property due or belonging to the Commonwealth, 
7or any agency thereof, including escheated property and the 
8proceeds of its sale, the custody and disbursement or other 
9disposition of funds and securities belonging to or in the 
10possession of the Commonwealth, and the settlement of claims 
11against the Commonwealth, the resettlement of accounts and 
12appeals to the courts, refunds of moneys erroneously paid to 
13the Commonwealth, auditing the accounts of the Commonwealth 
14and all agencies thereof, of all public officers collecting 
15moneys payable to the Commonwealth, or any agency thereof, 
16and all receipts of appropriations from the Commonwealth, 
17authorizing the Commonwealth to issue tax anticipation notes 
18to defray current expenses, implementing the provisions of 
19section 7(a) of Article VIII of the Constitution of 
20Pennsylvania authorizing and restricting the incurring of 
21certain debt and imposing penalties; affecting every 
22department, board, commission, and officer of the State 
23government, every political subdivision of the State, and 
24certain officers of such subdivisions, every person, 
25association, and corporation required to pay, assess, or 
26collect taxes, or to make returns or reports under the laws 
27imposing taxes for State purposes, or to pay license fees or 
28other moneys to the Commonwealth, or any agency thereof, 
29every State depository and every debtor or creditor of the 
30Commonwealth," <-in Department of Revenue, providing for bank 
31shares tax surcharge; in Treasury Department, further
 

1providing for investment of <-money moneys; <-in resettlement of 
2accounts, review and appeal, providing for exclusive appeal 
3procedure for shares taxes; in disposition of abandoned and 
4unclaimed property, further providing for definitions, for 
5property held by financial institutions, for property held by 
6insurers, for property held by utilities, for property held 
7by business associations, for property held by fiduciaries, 
8for property held by courts and public officers and agencies, 
9for miscellaneous property held for or owing to another and 
10for report of property subject to custody and control of the 
11Commonwealth, providing for certificate of finder 
12registration, for revocation of finder registration and for 
13appeals, further providing for examination of records, for 
14proceeding to compel reporting or delivery and for penalties, 
15and providing for relation to Electronic Signatures in Global 
16and National Commerce Act; in inquisitorial powers of fiscal 
17officers, further providing for examination and adjustment of 
18public accounts and the collection of amounts due the 
19Commonwealth; in oil and gas wells, providing for legislative 
20findings and further providing for appropriation, for the 
21Department of Conservation and Natural Resources and for 
22additional transfers; in special funds, further providing for 
23funding, establishing the H2O PA Account, and providing for 
24other grants; in additional special funds, further providing 
25for use of fund, providing for termination, for transfer to 
26Public School Employees' Retirement System, and further 
27providing for distributions from Pennsylvania Race Horse 
28Development Fund; in general budget implementation, <-further 
29providing for Department of Community and Economic 
30Development and providing for Environmental Quality Board; 
31further providing for State Civil Service Commission; 
32providing for<- Environmental Quality Board, for surcharges and 
33for other agencies; providing for rural regional college for 
34underserved counties, for 2014-2015 budget implementation and 
35for 2014-2015 restrictions on appropriations for funds and 
36accounts; and making related repeals.

37The General Assembly of the Commonwealth of Pennsylvania
38hereby enacts as follows:

39Section 1. The General Assembly finds and declares as 
40follows:

41(1) The intent of this act is to provide for the
42implementation of the 2014-2015 Commonwealth budget.

43(2) The Constitution of Pennsylvania confers numerous
44express duties upon the General Assembly, including the
45passage of a balanced budget for the Commonwealth.

46(3) Section 24 of Article III of the Constitution of
47Pennsylvania requires the General Assembly to adopt all
48appropriations for the operation of government in the

1Commonwealth, regardless of their source. The Supreme Court
2has repeatedly affirmed that, "It is fundamental within
3Pennsylvania's tripartite system that the General Assembly
4enacts the legislation establishing those programs which the
5state provides for its citizens and appropriates the funds
6necessary for their operation."

7(4) Pursuant to section 13 of Article VIII of the
8Constitution of Pennsylvania, the General Assembly is
9explicitly required to adopt a balanced Commonwealth budget.
10Given the unpredictability and potential insufficiency of
11revenue collections, various changes in State law relating to
12sources of revenue, the collection of revenue and the
13implementation of statutes which impact revenue may be
14required to discharge this constitutional obligation.

15(5) Section 11 of Article III of the Constitution of
16Pennsylvania requires the adoption of a general appropriation
17bill that embraces "nothing but appropriations." While actual
18appropriations can be contained in a General Appropriations
19Act, the achievement and implementation of a comprehensive
20budget involves more than appropriations. Ultimately, the
21budget has to be balanced under section 13 of Article VIII of
22the Constitution of Pennsylvania. This may necessitate
23changes to sources of funding and enactment of statutes to
24achieve full compliance with these constitutional provisions.

25(6) For the reasons set forth in paragraphs (1), (2),
26(3), (4) and (5), it is the intent of the General Assembly
27through this act to provide for the implementation of the
282014-2015 Commonwealth budget.

29(7) Every provision of this act relates to the
30implementation of the operating budget of the Commonwealth

1for this fiscal year, addressing in various ways the fiscal
2operations, revenues and potential liabilities of the
3Commonwealth. To that end, this act places conditions on
4appropriations, provides for accountability for spending and
5makes any necessary transfers or other changes necessary to
6impact the availability of revenue or the fiscal conditions
7of the Commonwealth, in order to meet the requirements of
8section 13 of Article VIII of the Constitution of
9Pennsylvania and to implement the act of , 2014
10(P.L. , No. A), known as the General Appropriation Act of
112014.

<-12Section 1.1. The act is amended by adding a section to read:

13Section 215. Power and Duty of Department; Bank Shares Tax 
14Surcharge; Temporary Regulations.--(a) It is the intention of 
15the General Assembly that the restructuring of the bank shares 
16tax enacted by the act of July 9, 2013 (P.L.270, No.52), 
17entitled "An act amending the act of March 4, 1971 (P.L.6, 
18No.2), entitled 'An act relating to tax reform and State 
19taxation by codifying and enumerating certain subjects of 
20taxation and imposing taxes thereon; providing procedures for 
21the payment, collection, administration and enforcement thereof; 
22providing for tax credits in certain cases; conferring powers 
23and imposing duties upon the Department of Revenue, certain 
24employers, fiduciaries, individuals, persons, corporations and 
25other entities; prescribing crimes, offenses and penalties,' in 
26tax for education, further providing for definitions, for 
27exclusions from tax, for credit against tax, for licenses and 
28for local receivers of use tax; providing for remote sales 
29reports; providing for special taxing authority; in personal 
30income tax, further providing for definitions, for classes of
 

1income and for taxability of partners; providing for tax 
2treatment determined at partnership level and for tax imposed at 
3partnership level; further providing for income of a 
4Pennsylvania S corporation, for income taxes imposed by other 
5states and for operational provisions; providing for 
6contributions for the Children's Trust Fund and for 
7contributions for American Red Cross; further providing for 
8general rule, for return of Pennsylvania S corporation, for 
9requirements concerning returns, notices, records and statements 
10and for additions, penalties and fees; providing for citation 
11authority; in corporate net income tax, further providing for 
12definitions and for reports and payment of tax; in capital stock 
13and franchise tax, further providing for imposition and for 
14expiration; in bank and trust company shares tax, further 
15providing for imposition of tax, for ascertainment of taxable 
16amount and exclusion of United States obligations, for 
17apportionment and for definitions; in realty transfer tax, 
18further providing for definitions, for imposition of tax, for 
19excluded transactions and for acquired company; providing for 
20nonlicensed corporation pari-mutuel wagering tax; in film 
21production tax credit, further providing for definitions, for 
22credit for qualified film production expenses and for carryover, 
23carryback and assignment of credit; in educational opportunity 
24scholarship tax credit, further providing for scholarships; 
25repealing provisions relating to coal waste removal and 
26ultraclean fuels tax credit; in job creation tax credit, further 
27providing for tax credits; making an editorial change; providing 
28for city revitalization and improvement zones, for mobile 
29telecommunications broadband investment tax credit, for the 
30Innovate in PA Program, for neighborhood improvement zones and
 

1for Keystone Special Development Zone program; in inheritance 
2tax, further providing for transfers not subject to tax, for 
3exemption for poverty, for liabilities and for deductions not 
4allowed; in procedure and administration, further providing for 
5definitions and for petition for reassessment; providing for the 
6Board of Finance and Revenue; further providing for review by 
7the Board of Finance and Revenue; providing for a report 
8concerning the significant changes in the structure and 
9regulatory environment within the banking industry; and making 
10related repeals," be accomplished in a manner that maintains 
11revenues received from the bank shares tax at no less than 
12historic levels plus reasonable rates of growth. This section is 
13necessary to provide stable and predictable tax revenues to the 
14Commonwealth and to ensure that the total amount of revenues 
15received by the Commonwealth from the bank shares tax do not 
16fall below the amounts necessary for general budget 
17implementation.

18(b) By February 15, 2015, every institution subject to tax
19under Article VII of the act of March 4, 1971 (P.L.6, No.2), 
20known as the "Tax Reform Code of 1971," as of January 1, 2014,
21shall pay a tax surcharge for the 2014 calendar year determined
22by multiplying:

23(1) the institution's proportionate share of the total
24taxable amount of shares as determined by the Department of
25Revenue under subsection (d); by

26(2) the total amount of the surcharge as determined by the
27department under subsection (c).

28(b.1) By February 15, 2016, every institution subject to tax
29under Article VII of the act of March 4, 1971 (P.L.6, No.2), 
30known as the "Tax Reform Code of 1971," as of January 1, 2015,

1shall pay a tax surcharge for the 2015 calendar year determined
2by multiplying:

3(1) the institution's proportionate share of the total
4taxable amount of shares as determined by the department under
5subsection (d); by

6(2) the total amount of the surcharge as determined by the
7department under subsection (c.1).

8(c) The total amount of the surcharge for the 2014 calendar
9year shall be twenty million dollars ($20,000,000). The
10secretary may waive or reduce the amount of the surcharge for
11the calendar year if the tax receipts under Article VII of the
12"Tax Reform Code of 1971" exceed the revenue estimates for
13fiscal year 2014-2015 under section 618 of the act of April 9, 
141929 (P.L.177, No.175), known as "The Administrative Code of 
151929."

16(c.1) The total amount of the surcharge for the 2015
17calendar year shall be twenty million dollars ($20,000,000). The
18secretary may waive or reduce the amount of the surcharge for
19the calendar year if the tax receipts under Article VII of the
20"Tax Reform Code of 1971" exceed the revenue estimates for
21fiscal year 2015-2016 under section 618 of "The Administrative 
22Code of 1929."

23(d) An institution's proportionate share of the total
24taxable amount of shares shall be determined as follows:

25(1) Divide:

26(i) the institution's taxable amount of shares as reported
27and any additional taxable amount of shares assessed under
28Article VII of the "Tax Reform Code of 1971" for the 2014
29calendar year; by

30(ii) the total taxable amount of shares of all institutions

1as reported and any additional taxable amount of shares assessed
2for the 2014 calendar year.

3(2) For purposes of the computation under paragraph (1), the
4taxable amount of shares shall be the combined taxable amount of
5shares apportioned to this Commonwealth for the 2014 calendar
6year by the institution, its predecessor and any institution
7acquired by, merged into or combined or consolidated with the
8institution for the tax imposed under Article VII of the "Tax
9Reform Code of 1971."

10(e) The department shall assess each institution subject to
11the surcharge under subsection (c) by January 1, 2015.

12(e.1) The department shall assess each institution subject
13to the surcharge under subsection (c.1) by January 15, 2016.

14(f) The department shall prescribe forms and procedures for 
15filing and paying the tax surcharge amounts required by this 
16section. Parts III, IV, V, VI and VII of Article IV of the "Tax 
17Reform Code of 1971," are incorporated by reference into this 
18section insofar as they are consistent with this section and 
19applicable to the surcharge imposed under this section.

20(g) The department shall develop limited regulations
21necessary to implement this section and the amendments to
22Article VII of the "Tax Reform Code of 1971," enacted by the act
23of July 9, 2013 (P.L.270, No.52), as follows:

24(1) The limited regulations must be submitted to the
25Legislative Reference Bureau for publication within one hundred
26twenty (120) days of the effective date of this section.

27(2) The limited regulations shall not be subject to any of 
28the following:

29(i) Sections 201, 202, 203, 204 or 205 of the act of July 
3031, 1968 (P.L.769, No.240), referred to as the Commonwealth
 

1Documents Law.

2(ii) The act of June 25, 1982 (P.L.633, No.181), known as
3the "Regulatory Review Act."

4(iii) Section 204(b) of the act of October 15, 1980
5(P.L.950, No.164), known as the "Commonwealth Attorneys Act."

6(3) The limited regulations shall apply to the surcharge
7imposed under this section and the tax imposed for calendar
8years beginning after December 31, 2013, and ending before
9January 1, 2016, under Article VII of the "Tax Reform Code of
101971."

11(h) Regulations initiated after the limited regulations
12under subsection (g) shall be promulgated as provided by law.

13Section <-1.2 <-1.1. Section 301.1(i)(2) of the act, amended
14July 6, 2010 (P.L.279, No.46), is amended to read:

15Section 301.1. Investment of Moneys.--* * *

16(i) * * *

17(2) The authority to invest or reinvest the moneys of any
18fund pursuant to this subsection shall expire December 31,
19[2014] 2019. The Treasury Department may maintain investments
20pursuant to this subsection which are in existence on the
21expiration date in this paragraph for not more than two years
22following such expiration date.

<-23Section 1.3. The act is amended by adding a section to read:

24Section 1104.2. Exclusive Appeal Procedure; Shares Taxes.--
25(a) This section applies to bank share payments.

26(b) An institution may file a petition for refund of a bank
27share payment with the Department of Revenue. The petition must
28be filed within two years of the date of the payment.

29(c) Notwithstanding any provision of this act or any other 
30law to the contrary, the procedure set forth in this section
 

1shall constitute the exclusive method by which an appeal may be 
2taken from the assessment of:

3(1) the tax surcharge imposed under section 215; or

4(2) the tax imposed for calendar years beginning after
5December 31, 2013, and ending before January 1, 2016, under
6Article VII of the act of March 4, 1971 (P.L.6, No.2), known as
7the "Tax Reform Code of 1971."

8(d) As used in this section, the term "bank share payment"
9means a payment of:

10(1) the tax surcharge imposed under section 215; or

11(2) the tax imposed for calendar years beginning after
12December 31, 2013, and ending before January 1, 2016, under
13Article VII of the "Tax Reform Code of 1971."

14Section <-1.4 <-1.2. The definitions of "holder" and "owner" in
15section 1301.1 of the act, amended or added December 9, 1982 
16(P.L.1057, No.248), June 29, 2002 (P.L.614, No.91) and December 
1723, 2003 (P.L.243, No.45), are amended and the section is 
18amended by adding definitions to read:

19Section 1301.1. Definitions.--As used in this article,
20unless the context otherwise requires:

21* * *

22"Electronic" shall mean relating to technology having
23electrical, digital, magnetic, wireless, optical, electromagnet
24or similar capabilities.

25* * *

26"Holder" shall mean a person obligated to hold for the 
27account of or deliver or pay to the owner, property which is 
28subject to this article and shall include any person in
29possession of property subject to this article belonging to
30another, or who is a trustee in case of a trust, or is indebted

1to another on an obligation subject to this article [or any
2financial institution which has paid amounts and sums to the
3State Treasurer under subsection (c) of section 1301.13 of this
4article] and the agent or legal representative of the person 
5obligated, the person in possession, the trustee or the debtor.

6"Indicated an interest in property" shall mean any contact,
7communication or transaction, related to property, from the
8owner, or involving some affirmative action by the owner, which
9is documented in a contemporaneous record prepared by or on
10behalf of the holder or in the possession of the holder,
11including:

12(i) a written contact, communication or transaction;

13(ii) a secure or password-protected electronic contact,
14communication or transaction;

15(iii) a verbal contact, communication or transaction, in
16which the holder takes reasonable action to verify the identity
17of the owner; or

18(iv) a contact, communication or transaction, which is
19evidenced by other criteria provided by the State Treasurer.

20* * *

21"Owner" shall mean a person that has a legal or equitable 
22interest in property subject to this article or a person whose 
23name appears on the record of a holder as the person entitled to 
24property held, issued or owing by the holder and shall include a
25depositor in case of a deposit, a creditor, claimant or payee in
26case of other choses in action[, or any other person having a
27legal or equitable interest in property subject to this article,
28or his] and a legal representative of the person with the 
29interest, the entitled person, the depositor, the creditor, the 
30claimant or the payee.

1* * *

2"Record" shall mean information that is inscribed on a
3tangible medium or that is stored in an electronic or other
4medium and is retrievable in perceivable form.

5* * *

6Section 2. Section 1301.3 of the act, amended June 29, 2002
7(P.L.614, No.91) AND DECEMBER 23, 2003 (P.L.243, NO.45)<-, is
8amended to read:

9Section 1301.3. Property Held by Financial Institutions.--
10The following property held or owing by a financial institution
11is presumed abandoned and unclaimed:

121. Any demand, saving or matured time deposit in a financial
13institution, or any funds paid toward the purchase of shares or
14other interest in a savings association, savings and loan or
15building and loan association, excluding any charges that may
16lawfully be withheld, unless within the preceding [five (5)]
17three (3) years the owner has:

18(i) Increased the amount of the deposit, shares or claim,
19otherwise than by the crediting of accrued interest, or
20decreased it, or presented to the holder evidence of the
21deposit, shares or claim; or

22(ii) Corresponded in writing with the holder concerning the
23deposit, shares or claim; or

24(ii.1) Affirmatively, in written or electronic 
25communication, changed or assented to a change in the terms and 
26conditions under which the deposit, shares or claim is held; or

27(iii) Otherwise indicated an interest in the deposit, shares
28or claim as evidenced by a writing on file with the holder; or

29(iv) Received tax reports or regular statements of the
30deposits, shares or claim by certified mail or other method of

1communication that will provide the financial institution with a
2record that such report or statement was transmitted and
3received; or

4(v) Owned other property held by the financial institution
5to which subclause (i), (ii), (iii) or (iv) applies.

62. A deposit under clause 1 shall include any interest or
7dividend which the financial institution would pay to the owner
8upon claim therefor. The charges which may be excluded hereunder
9shall not include any charge due to inactivity imposed, directly
10or indirectly, after December 31, 1981 unless there is a valid
11and enforceable written contract between the financial
12institution and the owner of the deposit pursuant to which the
13financial institution may impose said charge.

143. Any sum payable on checks or on written instruments
15including, but not limited to, drafts, money orders and
16travelers checks, on which a financial institution is directly
17liable, and (i) which have been outstanding for more than [five
18(5)] three (3) years, or in the case of travelers checks,
19fifteen (15) years, or in the case of money orders, six (6)
20years in calendar year 2003 and seven (7) years in calendar year
212004 and thereafter, from the date payable or from the date of
22issuance if payable on demand; and (ii) the owner of which has
23not written to the financial institution concerning it, nor
24otherwise indicated an interest [as evidenced by a writing on
25file with the financial institution]. An indication of interest 
26in a check or instrument on which a financial institution is 
27directly liable shall be recognized if it is made with respect 
28to the interests of the remitter, the payee or a person entitled 
29to enforce the instrument.

304. Any funds or other personal property, tangible or

1intangible, removed from a safe deposit box or any other
2safekeeping repository in the Commonwealth on which the lease or
3rental period has expired due to nonpayment of rental charges or
4other reason, or any surplus amounts arising from the sale
5thereof pursuant to law, if the same has not been claimed by the
6owner for more than [five (5)] three (3) years from the date on
7which the rental period expired.

85. The following deposits described in clause 1 shall be
9excluded from the presumption of being abandoned and unclaimed
10only while the conditions described below are in effect:

11(i) Deposits during any period when withdrawals may be made
12only upon an order of a court of competent jurisdiction.

13(ii) Deposits established under 20 Pa.C.S. Ch. 53 (relating
14to Pennsylvania Uniform Transfers to Minors Act) or similar law
15concerning transfers to minors while the custodianship has not
16been terminated.

17(iii) Burial reserve accounts and similar deposits
18established under written agreements to provide for the funeral
19and/or burial expenses of a person while the person is still
20alive.

21Section 3. Section 1301.4 of the act, amended December 23,
222003 (P.L.243, No.45), is amended to read:

23Section 1301.4. Property Held by Insurers.--(a) In the case
24of life insurance, the following property held or owing by an
25insurer is presumed abandoned and unclaimed:

261. Any moneys held or owing by an insurer as established by
27its records under any contract of annuity or policy of life
28insurance including premiums returnable or dividends payable,
29unclaimed and unpaid for more than [five (5)] three (3) years
30after the moneys have or shall become due and payable under the

1provisions of such contract of annuity or policy of insurance. A
2life insurance policy not matured by actual proof of the death
3of the insured is deemed to be matured and the proceeds thereof
4are deemed to be due and payable if such policy was in force
5when the insured attained the limiting age under the mortality
6table on which the reserve is based, unless the person appearing
7entitled thereto has within the preceding [five (5)] three (3)
8years, (i) assigned, readjusted or paid premiums on the policy,
9or subjected the policy to loan, or (ii) corresponded in writing
10with the insurer concerning the policy.

112. If a person other than the insured or annuitant is
12entitled to the funds and no address of such person is known to
13the insurer or if it is not definite and certain from the
14records of the insurer what person is entitled to the funds, it
15is presumed that the last known address of the person entitled
16to the funds is the same as the last known address of the
17insured or annuitant according to the records of the insurer.

183. Moneys otherwise payable according to the records of the
19insurer are deemed due and payable although the policy or
20contract has not been surrendered as required.

214. Property distributable in the course of a demutualization
22or related reorganization of an insurance company is deemed
23abandoned two (2) years after the date of the demutualization or
24reorganization if instruments or statements reflecting the
25distribution are either mailed to the owner and returned by the
26post office as undeliverable or not mailed to the owner because
27of a known bad address on the books and records of the holder.

28(b) In the case of insurance other than life insurance, the
29following property held or owing by an insurer is presumed
30abandoned and unclaimed:

11. Any moneys held or owing by an insurer as established by
2its records under any contract of insurance other than annuity
3or life insurance, including premiums or deposits returnable or
4dividends payable to policy or contract holders or other persons
5entitled thereto, unclaimed and unpaid for more than [five (5)]
6three (3) years after the moneys have or shall become due and
7payable under the provisions of such contracts of insurance.

82. If a person other than the insured, the principal or the
9claimant is entitled to the funds and no address of such person
10is known to the insurer or if it is not definite and certain
11from the records of the insurer what person is entitled to the
12funds, it is presumed that the last known address of the person
13entitled to the funds is the same as the last known address of
14the insured, the principal or the claimant according to the
15records of the insurer.

16Section 4. Section 1301.5 of the act, amended June 29, 2002
17(P.L.614, No.91), is amended to read:

18Section 1301.5. Property Held by Utilities.--The following
19funds held or owing by any utility are presumed abandoned and
20unclaimed:

211. Any customer advance, toll, deposit or collateral
22security or any other property held by any utility if under the
23terms of an agreement the advance, toll, deposit, collateral
24security or other property is due to or demandable by the owner
25and has remained unclaimed for [five (5)] three (3) years or
26more from the date when it first became due to or demandable by
27the owner under the agreement.

282. Any sum which a utility has been ordered to refund, less
29any lawful deductions, and which has remained unclaimed by the
30person appearing on the records of the utility entitled thereto

1for two (2) years or more after the date it became payable in
2accordance with the final order providing for the refund.

3Section 5. Section 1301.6 of the act, amended JUNE 29, 2002<-
4(P.L.614, NO.91) AND November 9, 2006 (P.L.1335, No.138), is
5amended to read:

6Section 1301.6. Property Held by Business Associations.--The
7following property held or owing by a business association is
8presumed abandoned and unclaimed:

91. The consideration paid for a gift certificate or gift
10card which has remained unredeemed for two (2) years or more
11after its redemption period has expired or after the minimum 
12period specified in section 915(c) of the Consumer Credit 
13Protection Act (Public Law 90-321, 15 U.S.C. § 1693l-1(c)), 
14whichever occurs later, or for [five (5)] three (3) years or
15more from the date of issuance if no redemption period is
16specified. The provisions of this clause shall not apply to a
17qualified gift certificate.

182. Any certificate of stock or participating right in a
19business association, for which a certificate has been issued or
20is issuable but has not been delivered, whenever the owner
21thereof has not claimed or indicated an interest in such
22property[, or corresponded in writing with the business
23association concerning it,] within [five (5)] three (3) years
24after the date prescribed for delivery of the property to the
25owner.

263. Any sum due as a dividend, profit, distribution, payment
27or distributive share of principal held or owing by a business
28association, whenever the owner has not claimed or indicated an 
29interest in such sum [or corresponded in writing with the
30business association concerning it] within [five (5)] three (3)

1years after the date prescribed for payment or delivery.

24. Any sum due as principal or interest on the business
3association's bonds or debentures, or coupons attached thereto,
4whenever the owner has not claimed or indicated an interest in
5such sum [or corresponded in writing with the business
6association concerning it] within [five (5)] three (3) years
7after the date prescribed for payment.

85. Any sum or certificate or participating right due by a
9cooperative to a participating patron, whenever the owner has
10not claimed or indicated an interest in such property[, or
11corresponded with the cooperative concerning the same] within
12[five (5)] three (3) years after the date prescribed for payment
13or delivery.

14Section 6. Section 1301.8 of the act, amended June 29, 2002
15(P.L.614, No.91), is amended to read:

16Section 1301.8. Property Held by Fiduciaries.--The following
17property held by fiduciaries is presumed abandoned and
18unclaimed:

191. All property held in a fiduciary capacity for the benefit
20of another person, unless the owner, within [five (5)] three (3)
21years after it has or shall become payable or distributable, has
22increased or decreased the principal, accepted payment of
23principal or income[, corresponded in writing concerning the
24property] or otherwise indicated an interest [therein as
25evidenced by a writing on file with the fiduciary] in the 
26property or in other property of the owner in the possession, 
27custody or control of the holder.

282. For an individual retirement account, a retirement plan
29for self-employed individuals or a similar account or plan
30created pursuant to Federal internal revenue law or to the law

1of this Commonwealth and not subject to a mandatory distribution
2requirement, three (3) years after the owner has:

3(i) attained seventy and one half (70.5) years of age; or

4(ii) indicated an interest in the account or plan or in
5other property of the owner in the possession, custody or
6control of the holder.

7Section 7. Section 1301.9 of the act, amended November 9,
82006 (P.L.1335, No.138), is amended to read:

9Section 1301.9. Property Held by Courts and Public Officers
10and Agencies.--The following property is presumed abandoned and
11unclaimed:

121. Except as provided in clauses 2 and 2.1 or clause 6, all
13property held for the owner by any court, public corporation,
14public authority or instrumentality of the United States, the
15Commonwealth, or any other state, or by a public officer or
16political subdivision thereof, unclaimed by the owner for more
17than [five (5)] three (3) years from the date it first became
18demandable or distributable.

192. Bicycles held for the owner by a municipality unclaimed
20by the owner for more than ninety (90) days from the date it
21first became demandable or distributable.

222.1. All tangible property, other than bicycles, held for
23the owner by a municipality unclaimed by the owner for more than
24three (3) years from the date it first became demandable or
25distributable.

263. The bicycles held pursuant to clause 2 and tangible
27property held pursuant to clause 2.1 and which the State
28Treasurer refuses in writing to accept may be disposed of by the
29municipality to the highest bidder after due notice by
30advertisement for bids or at public auction at such time and

1place as may be designated by the municipality or the governing
2body may, by resolution, donate the bicycles or such tangible
3property to a charitable organization. Any proceeds from the
4sale of the bicycles or such tangible property shall be retained
5by the municipality and used for municipal purposes.

64. Bicycles held by or acquired by the Commonwealth for
7ninety (90) days may be disposed of at public auction at such
8time and place as may be designated by the State Treasurer.
9Proceeds of such sale or sales shall be deposited in the General
10Fund.

115. All property held by or subject to the control of any
12court, public corporation, public authority or instrumentality
13of the Commonwealth or by a public officer or political
14subdivision thereof, which is without a rightful or lawful
15owner, to the extent not otherwise provided for by law, held for
16more than one year.

176. Restitution held for the owner by any court, public
18corporation, public authority or instrumentality of the
19Commonwealth, or by a public officer or political subdivision
20thereof, unclaimed by the owner for more than [five (5)] three 
21(3) years from the date it first became demandable or
22distributable.

23Section 8. Section 1301.10 of the act, amended December 23,
242003 (P.L.243, No.45), is amended to read:

25Section 1301.10. Miscellaneous Property Held for or Owing to
26Another.--The following property, held or owing to any owner, is
27presumed abandoned and unclaimed:

281. All property, not otherwise covered by this article,
29[that] which is admitted in writing by the holder and
30adjudicated to be due, [that] which is held or owing in the

1ordinary course of the holder's business, [and that] which has
2remained unclaimed by the owner for more than [five (5)] three 
3(3) years after it became payable or distributable and in which 
4the owner has not indicated an interest, is presumed abandoned
5and unclaimed except for clause 2.

62. Wages or other compensation for personal services that
7have remained unclaimed by the owner for more than two (2) years
8after the wages or other compensation for personal services
9become payable or are distributed are presumed abandoned and
10unclaimed.

11Section 8.1. Section 1301.11(g) of the act, amended June 29,
122002 (P.L.614, No.91), is amended to read:

13Section 1301.11. Report of Property Subject to Custody and
14Control of the Commonwealth under this Article.--* * *

15(g) All agreements or powers of attorney to recover or
16collect abandoned and unclaimed property contained in the
17reports filed under this article shall be valid and enforceable
18only if the agreements:

191. are in writing and duly signed and acknowledged by the
20owner;

212. clearly state the fee or compensation to be paid, which
22shall not exceed fifteen per centum of the value of the
23abandoned and unclaimed property;

243. disclose the nature and value of the property; [and]

254. disclose the name and address of the holder and, if
26known, whether the abandoned and unclaimed property has been
27paid or delivered to the State Treasurer[.];

285. identify the name, address and telephone number of the
29person assisting in the location, delivery or recovery of the
30abandoned and unclaimed property; and

16. identify the valid certificate of registration number
2assigned to the person assisting in the location, delivery or
3recovery of the abandoned and unclaimed property under section
41301.11a.

5* * *

6Section 8.2. The act is amended by adding sections to read:

7Section 1301.11a. Certificate of Finder Registration.--(a)
8Except for a person who is admitted to practice law before a
9court of a Federal or State jurisdiction or subject to section
101301.11(i), a person may not on behalf of another:

111. engage in an activity for the purpose of locating,
12delivering, recovering or assisting in the recovery of abandoned
13or unclaimed property; and

142. receive a fee, compensation, commission or other
15remuneration for the activity under clause 1 without first
16obtaining a certificate of registration from the State Treasurer
17in accordance with this section.

18(b) An application for a certificate of registration shall
19be in writing and on the form prescribed by the State Treasurer
20and accompanied by a recent full face color photograph of the
21applicant. In addition to information that may be requested by
22the State Treasurer, the application shall provide the
23following:

241. the applicant's full name, telephone number, e-mail
25address, home address and work address;

262. a statement that the applicant has not, during the ten-
27year period immediately preceding the submission of the
28application, violated a provision of this article or has been
29convicted of a felony or an offense of:

30(i) theft or other related offenses against property as

1enumerated under 18 Pa.C.S. Ch. 39 (relating to theft and
2related offenses) or its equivalent if committed in another
3jurisdiction;

4(ii) forgery or other fraudulent practices as enumerated in
518 Pa.C.S. Ch. 41 (relating to forgery and fraudulent practices)
6or its equivalent if committed in another jurisdiction; or

7(iii) perjury, false swearing, fraud or other offense, as
8enumerated in 18 Pa.C.S. Ch. 49 Subch. A (relating to perjury
9and falsification in official matters) or its equivalent if
10committed in another jurisdiction;

113. A statement that, to the applicant's knowledge, the
12applicant is not the subject of an ongoing investigation or
13prosecution involving an alleged violation of a provision of
14this article or an offense of:

15(i) theft or other related offenses against property as
16enumerated under 18 Pa.C.S. Ch. 39 or its equivalent if
17committed in another jurisdiction;

18(ii) forgery or other fraudulent practices as enumerated in
1918 Pa.C.S. Ch. 41 or its equivalent if committed in another
20jurisdiction; or

21(iii) perjury, false swearing, fraud or other offense as
22enumerated in 18 Pa.C.S. Ch. 49 Subch. A or its equivalent if
23committed in another jurisdiction; and

244. The notarized signature of the applicant immediately
25following an acknowledgment that a false or perjured statement
26subjects the applicant to criminal liability.

27(c) Upon the filing of the application, the State Treasurer
28may investigate the applicant to verify the information provided
29in the application and to determine the applicant's eligibility
30for a certificate of registration under this section. False

1information on an application is grounds for a denial,
2nonrenewal, suspension or revocation of the applicant's
3certificate of registration.

4(d) A certificate of registration with a unique registration
5number may be issued to an applicant if the following conditions
6are met:

71. During the ten-year period immediately preceding the
8submission of the application, the applicant has not violated a
9provision of this article or has been convicted of a felony or
10an offense of:

11(i) theft or other related offenses against property as
12enumerated under 18 Pa.C.S. Ch. 39 or its equivalent if
13committed in another jurisdiction;

14(ii) forgery or other fraudulent practices as enumerated in
1518 Pa.C.S. Ch. 41 or its equivalent if committed in another
16jurisdiction; or

17(iii) perjury, false swearing, fraud or other offense as
18enumerated in 18 Pa.C.S. Ch. 49 Subch. A or its equivalent if
19committed in another jurisdiction; and

202. The applicant has executed a sworn statement that is a
21commitment to conduct his actions as a finder of abandoned and
22unclaimed property in compliance with this article and the
23regulations promulgated under this article.

24(e) The certificate of registration issued under this
25section is for a period of two (2) years and may be renewed
26every two (2) years if the following conditions are met:

271. The applicant submits a renewal application form
28prescribed by the State Treasurer.

292. The applicant meets the conditions set forth under
30subsection (d).

13. The applicant is not the subject of an ongoing
2investigation or order of revocation by the State Treasurer or
3the equivalent in another jurisdiction, or an ongoing
4investigation or prosecution by a law enforcement agency
5involving an offense enumerated under subsection (d)1.

6Section 1301.11b. Revocation of Finder Registration.--(a)
7After notice and an opportunity for a hearing, the State
8Treasurer may revoke, suspend or refuse to issue or renew a
9certificate of registration if the following are found:

101. The person violated a provision of this article, the
11regulations promulgated under this article or has been convicted
12of a felony or an offense of:

13(i) theft or other related offenses against property as
14enumerated under 18 Pa.C.S. Ch. 39 (relating to theft and
15related offenses) or its equivalent if committed in another
16jurisdiction;

17(ii) forgery or other fraudulent practices as enumerated in
1818 Pa.C.S. Ch. 41 (relating to forgery and fraudulent practices)
19or its equivalent if committed in another jurisdiction; or

20(iii) perjury, false swearing, fraud or other offense, as
21enumerated in 18 Pa.C.S. Ch. 49 Subch. A (relating to perjury
22and falsification in official matters) or its equivalent if
23committed in another jurisdiction.

242. In the opinion of the State Treasurer, the person's
25conduct as a finder of abandoned or unclaimed property
26undermines the confidence of the public or warrants the belief
27that the person's business will not be conducted honestly and
28fairly.

29(b) The State Treasurer may investigate an allegation or
30complaint of misconduct involving an applicant for or a person

1holding a certification of registration.

2(c) In conducting an investigation under this section, the
3State Treasurer may compel, by subpoena, witnesses to testify in
4relation to any alleged misconduct or complaint and may require
5the production of a book, record or other document pertaining to
6that matter. If a person fails to file a statement or report,
7obey a subpoena, give testimony, produce a book, record or other
8document as required by a subpoena, or permit photocopying of a
9book, record or other document subpoenaed, the Commonwealth
10Court, upon application made to it by the State Treasurer, may
11compel obedience by an attachment proceeding for contempt, as in
12the case of disobedience of the requirements of a subpoena
13issued by the court or a refusal to testify in the court.

14(d) If a person is engaged in an activity that constitutes a
15violation of this article or has attempted or committed an
16offense identified under subsection (a)1, the State Treasurer
17shall immediately revoke the certificate of registration of the
18person.

19Section 1301.11c. Appeals.--(a) The Commonwealth Court
20shall be vested with exclusive appellate jurisdiction to
21consider appeals of a final order, determination or decision of
22the State Treasurer involving the issuance, nonissuance,
23renewal, nonrenewal, revocation or suspension of a certification
24of registration under this article.

25(b) Notwithstanding law to the contrary, orders,
26determinations or decisions of the State Treasurer involving the
27issuance, nonissuance, renewal, nonrenewal, revocation or
28suspension of a certification of registration under this article
29shall be affirmed unless it is found that the State Treasurer
30committed an error of law or that the order, determination or

1decision was arbitrary and there was a capricious disregard of
2the evidence.

3Section 8.3. Section 1301.23 of the act, amended June 29,
42002 (P.L.614, No.91), is amended to read:

5Section 1301.23. Examination of Records.--[(a) If the State
6Treasurer has reason to believe that any holder has failed to
7report property that should have been reported pursuant to this
8article, the State Treasurer may, at reasonable times and upon
9reasonable notice, examine the records of such person with
10respect to such property.

11(b) If a holder fails after the effective date of this
12subsection to maintain the records required or the records of
13the holder available for the periods subject to this act are
14insufficient to permit the preparation of a report, the State
15Treasurer may require the holder to report and pay the amount
16the State Treasurer may reasonably estimate on the basis of any
17available records of the holder or on the basis of any other
18reasonable method of estimation that the State Treasurer may
19select.]

20(a) The State Treasurer may require a person who has not
21filed a report, or a person who the State Treasurer believes has
22filed an inaccurate, incomplete or false report, to file a
23verified report in a form specified by the State Treasurer. The
24report must state whether the holder, or agent thereof, is
25holding property reportable under this article, describe
26property not previously reported or as to which the State
27Treasurer has made inquiry and specifically identify and state
28the amounts of property that may be in issue.

29(b) The State Treasurer, at reasonable times and upon
30reasonable notice, may examine the records of any person or

1agent thereof to determine whether the person has complied with
2this article. The administrator may conduct the examination even
3if the person believes it is not in possession of any property
4that must be reported, paid or delivered under this article. The
5State Treasurer may contract with any other person to conduct
6the examination on behalf of the State Treasurer, the selection
7of whom shall not be questioned.

8(c) The State Treasurer at reasonable times may examine the
9records of an agent, including a dividend disbursing agent or
10transfer agent, of a business association or financial
11association that is the holder of property presumed abandoned if
12the administrator has given the notice required by subsection
13(b) to both the association or organization and the agent at
14least 90 days before the examination.

15(d) Documents and working papers obtained or compiled by the
16State Treasurer, or the State Treasurer's agents, employees or
17designated representatives, in the course of conducting an
18examination are confidential and are not public records, but the
19documents and papers may be:

201. used by the State Treasurer in the course of an action to
21collect unclaimed property or otherwise enforce this article;

222. used in joint examinations conduced with or pursuant to
23an agreement with another state, the Federal Government or any
24other governmental subdivision, agency or instrumentality;

253. produced pursuant to subpoena or court order; or

264. disclosed to the abandoned property office of another
27state for that state's use in circumstances equivalent to those
28described in this subdivision, if the other state is bound to
29keep the documents and papers confidential.

30(e) If an examination of the records of a holder results in

1the disclosure of property reportable under this article, the
2State Treasurer may assess the cost of the examination against
3the holder at the rate of $200 a day for each examiner, or a
4greater amount that is reasonable and was incurred, but the
5assessment may not exceed the value of the property found to be
6reportable. The cost of an examination made pursuant to
7subsection (c) may be assessed only against the business
8association or financial institution.

9(f) If, after the effective date of this section, a holder
10does not maintain the adequate records and the records of the
11holder that are available are insufficient to permit the
12preparation of a report, the State Treasurer may require the
13holder to report and pay to the State Treasurer the amount the
14State Treasurer reasonably estimates, on the basis of any
15available records of the holder or by any other reasonable
16method of estimation that the State Treasurer may select.

17Section 8.4. Sections 1301.24 and 1301.25 of the act are
18amended by adding subsections to read:

19Section 1301.24. Proceeding to Compel Reporting or
20Delivery.--* * *

21(c) If a holder fails, without proper cause, to report or to
22pay and deliver to the State Treasurer property subject to
23custody and control of the Commonwealth under this article, the
24holder shall pay a penalty not to exceed one thousand dollars
25($1,000) per day to the State Treasurer beginning with the day
26after the report should have been filed and continuing each day
27thereafter until a proper report is filed with the State
28Treasurer. The State Treasurer may waive all or a portion of the
29penalty for good cause.

30Section 1301.25. Penalties.--* * *

1(d) A person who is found to have violated section 1301.11
2or 1301.11a, in addition to other sanctions under this article,
3shall be guilty of a misdemeanor of the third degree and shall,
4upon conviction, be sentenced to pay a fine not to exceed one
5thousand dollars ($1,000) for the first offense. A person who is
6found guilty of a subsequent offense shall be subject to a fine
7not to exceed five thousand dollars ($5,000).

8Section 8.5. The act is amended by adding a section to read:

9Section 1301.28b. Relation to Electronic Signatures in
10Global and National Commerce Act.--(a) Except as set forth in
11subsection (b), this article modifies, limits and supersedes the
12Electronic Signatures in Global and National Commerce Act
13(Public Law 106-229, 15 U.S.C. § 7001 et seq.).

14(b) This article does not:

151. modify, limit or supersede section 101(c) of the
16Electronic Signatures in Global and National Commerce Act (15
17U.S.C. § 7001(c)); or

182. authorize electronic delivery of the notice described in
19section 103(b) of the Electronic Signatures in Global and
20National Commerce Act (15 U.S.S. § 7003(b)).

21Section 8.6. Section 1602(a) and (b) of the act are amended
22to read:

23Section 1602. In the Examination and Adjustment of Public
24Accounts and the Collection of Amounts Due the Commonwealth.--

25(a) To enable the Auditor General to examine and adjust the
26public accounts, the State Treasurer to examine and revise the
27same and abandoned and unclaimed property accounts, and the
28Secretary of Revenue to settle or otherwise determine the amount
29of and collect taxes, or collect other amounts due the
30Commonwealth, each of said officers is severally hereby invested

1with power to compel all persons, in the receipt or possession
2of public moneys, to render to him their accounts, and to
3enforce the attendance (in the manner hereinafter pointed out)
4at his office of such persons, whether parties or witnesses,
5whom he may deem necessary to examine in the investigation of
6any public account, and to administer all necessary oaths or
7affirmations; and each of said officers is hereby also invested
8with power to compel the exhibition or delivery to him (as the
9case may be), by any person possessing the same, in the manner
10hereinafter pointed out, of all official or public books,
11accounts, documents, or papers, which have any relation to or
12connection with any public account or abandoned and unclaimed 
13property account, and which he may deem necessary in the
14investigation, adjustment, or collection of the same: Provided,
15however, That if by reason of the distance of residence from the
16seat of government, or from any sufficient cause satisfactory to
17the Auditor General, the State Treasurer, or the Secretary of
18Revenue, as the case may be, if it be found impracticable or
19difficult to procure the attendance of such person at the office
20of such officer for the purpose of giving information respecting
21any public account or abandoned and unclaimed property account,
22it is hereby made the duty of such officer to procure the
23testimony of all such persons to be taken before any judge of a
24court of common pleas, or justice of the peace, on a commission,
25with interrogatories annexed, issued under the hand and seal of
26office of such officer.

27(b) In order to procure the attendance of such persons as
28the Auditor General, the State Treasurer, or the Secretary of
29Revenue, may deem necessary in relation to any public account or 
30abandoned and unclaimed property account, already furnished or

1to be furnished, he, the said Auditor General, State Treasurer,
2or Secretary of Revenue, shall issue his writ, directed to and
3commanding the sheriff of the county wherein such person or
4persons reside, whom he may summon to cause the attendance at
5the office of the Auditor General, the State Treasurer, or the
6Secretary of Revenue, as the case may be, of such person or
7persons; and, if, after thirty days from the time the said
8person or persons ought to have appeared in the office of the
9Auditor General, the State Treasurer, or the Secretary of
10Revenue, agreeably to the said summons, such person or persons
11neglect or refuse to appear, he, the said Auditor General, State
12Treasurer, or Secretary of Revenue, may issue his writ of
13attachment, commanding the sheriff to commit such person or
14persons, so neglecting or refusing to appear, to the common jail
15of the county, there to remain until he or they shall consent to
16comply with this act or shall be discharged by due course of
17law.

18* * *

19Section 8.7. The act is amended by adding a section to read:

20Section 1601.1-E. Legislative findings.

21The General Assembly finds and declares as follows:

22(1) Revenue from the leasing of State land to extract
23natural gas is necessary to obtain the revenue necessary to
24effectuate the 2014-2015 General Appropriations Act.

25(2) Leases utilized by the department include provisions
26that are highly protective of the ecological integrity of
27State forest lands and carefully crafted to minimize <-impacts 
28to rare and endangered plants, wildlife and their habitat and
29the vast number of streams and watersheds that are part of
30State forest and park lands.

1(3) Leases utilized by the department for shale-gas
2provide for enhanced environmental and surface protections,
3including:

4(i) Increased setback distances from critical
5recreation infrastructure, streams and water features,
6State parks and designated wild and natural areas.

7(ii) Limiting the amount of surface area disturbed,
8prohibiting shallow well drilling and authorizing the
9application of strict forestry resource management
10principles.

11(iii) Limiting the number of well pads allowed to be
12constructed on the lease tract; providing for deep
13drilling insurance; and prohibiting the development of
14the ecologically sensitive areas, including designated
15wild and natural areas and areas of special
16consideration, without the department's prior written
17approval.

18(4) The department continually updates and employs best
19management practices when managing oil and gas activities on
20State forest lands to ensure that shale-gas activities are
21consistent with the recreational and ecological uses of State
22forest.

23(5) The department has implemented a Shale-Gas
24Monitoring Program to monitor, evaluate and report any
25impacts of shale-gas development on the State forest system.

26(6) The fund is not a constitutional trust.

27(7) Money in the fund has increased exponentially from
28the extraction of shale gas and the implementation of new gas
29extraction techniques.

30(8) The Commonwealth's role as trustee of the public's

1natural resources is broader and more comprehensive than just
2conserving the State forest of parks.

3(9) The General Assembly affirms its intent that:

4(i) The department should continue the operation of
5the shale-gas monitoring activities program to monitor,
6evaluate and report the impacts of shale-gas activities
7in State forest and, in consultation with the Governor's
8Office, utilize data received from ongoing monitoring to
9adjust its management planning and practices.

10(ii) The department should consider the State forest
11and park lands as one of the Commonwealth's interests
12when considering whether or not to lease additional State
13forest and park lands and determining what is in the best
14interests of the Commonwealth. Interest involved in
15decisions relating to leasing State forest and park lands
16should not be made to the exclusion of all other
17interests of the Commonwealth.

18(iii) Notwithstanding any other law to the contrary,
19it is in the best interest of the Commonwealth to lease
20oil and gas rights in State forests and parks if the
21department:

22(A) in consultation with the Governor, continues
23strong and effective lease protections, best
24management practices and ongoing monitoring programs
25on the impact of gas operations; and

26(B) maintains a balance of money in the fund to
27carry out the department's statutory obligation to
28protect State forest and park land and other
29environmental activities.

30(10) If a balance in the funds is adequate to achieve

1the purposes of paragraph (9), transfers to the General Fund
2are permissible.

3Section 8.8. Sections 1602-E and 1603-E of the act, added
4October 9, 2009 (P.L.537, No.50), are amended to read:

5Section 1602-E. Appropriation.

6Notwithstanding any other provision of law and except as
7provided in section 1603-E, no money in the fund from royalties
8may be expended unless appropriated or transferred to the 
9General Fund by the General Assembly from the fund. In making
10appropriations, the General Assembly shall consider the adoption
11of an allocation to municipalities impacted by a Marcellus well.

12Section 1603-E. Department of Conservation and Natural
13Resources.

14Subject to the availability of money in the fund following 
15transfers, up to $50,000,000 from the fund from royalties shall 
16be appropriated annually to the department to carry out the 
17purposes set forth in the act of December 15, 1955 (P.L.865, 
18No.256), entitled "An act requiring rents and royalties from oil 
19and gas leases of Commonwealth land to be placed in a special 
20fund to be used for conservation, recreation, dams, and flood 
21control; authorizing the Secretary of Forests and Waters to 
22determine the need for and location of such projects and to 
23acquire the necessary land." The department shall give 
24preference to the operation and maintenance of State parks and 
25forests.

26Section 8.9. Section 1605-E of the act, added July 6, 2010 
27P.L.279, No.46), is amended to read:.

28Section 1605-E. Additional [transfer] transfers.

29(a) Fiscal year 2010-2011.--Notwithstanding section 1603-E
30or any other provision of law, in fiscal year 2010-2011, the

1amount of $180,000,000 shall be transferred from the fund to the
2General Fund.

3(b) Fiscal year 2014-2015.--Notwithstanding section 1603-E
4or any other provision of law, in fiscal year 2014-2015, the
5amount of $95,000,000 shall be transferred from the fund to the
6General Fund.

7Section 9. Section 1702-A of the act, amended July 18, 2013
8(P.L.574, No.71), is amended to read:

9Section 1702-A. Funding.

10(a) Intent.--It is hereby declared as the intent and goal of
11the General Assembly to create a stabilization reserve in an
12eventual amount of 6% of the revenues of the General Fund of the
13Commonwealth.

14(b) Transfer of portion of surplus.--

15(1) Except as may be provided in paragraph (2), for
16fiscal years beginning after June 30, 2002, the following
17apply:

18(i) Except as set forth in this paragraph, if the
19Secretary of the Budget certifies that there is a surplus
20in the General Fund for a specific fiscal year, 25% of
21the surplus shall be deposited by the end of the next
22succeeding quarter into the Budget Stabilization Reserve
23Fund.

24(ii) If the Secretary of the Budget certifies, after
25June 30, 2005, that there is a surplus in the General
26Fund for the fiscal year 2004-2005, 15% of the surplus
27shall be deposited by the end of the next succeeding
28quarter into the Budget Stabilization Reserve Fund.

29(iii) No amount of the surplus in the General Fund
30for fiscal year 2007-2008 may be deposited into the

1Budget Stabilization Reserve Fund.

2(iv) No amount of the surplus in the General Fund
3for fiscal year 2010-2011 may be deposited into the
4Budget Stabilization Reserve Fund.

5(v) No amount of the surplus in the General Fund for
6fiscal year 2011-2012 may be deposited into the Budget
7Stabilization Reserve Fund.

8(vi) No amount of the surplus in the General Fund
9for fiscal year 2012-2013 may be deposited into the
10Budget Stabilization Reserve Fund.

11(vii) No amount of the surplus in the General Fund
12for fiscal year 2013-2014 may be deposited into the
13Budget Stabilization Reserve Fund.

14(2) If, at the end of any fiscal year, the ending
15balance of the Budget Stabilization Reserve Fund equals or
16exceeds 6% of the actual General Fund revenues received for
17the fiscal year in which the surplus occurs, 10% of the
18surplus shall be deposited by the end of the next succeeding
19quarter into the Budget Reserve Stabilization Fund.

20(c) Appropriated funds.--The General Assembly may at any
21time provide additional amounts from any funds available to this
22Commonwealth as an appropriation to the Budget Stabilization
23Reserve Fund.

24Section 10. The act is amended by adding sections to read:

25Section 1772.1-A. H2O PA Account.

26(a) Establishment.--There is hereby established in the
27Gaming Economic Development and Tourism Fund a restricted
28account to be known as the H2O PA Account, which shall contain
29the following:

30(1) Moneys available from transfers under section 1772-A

1and Ch. 5 of the act of July 9, 2008 (P.L.908, No.63), known
2as the H2O PA Act.

3(2) Moneys available from transfers under 58 Pa.C.S. §
42315(a.1)(4) (relating to Statewide initiatives).

5(3) Other appropriations or transfers made to the
6account.

7(b) Purpose.--Money in the account shall be used for
8payments of debt and grants made under the program.

9(c) Nonlapse.--Money in the account is continuously
10appropriated for debt service or grants in accordance with
11section 1774.1-A and Chapter 5 of the H2O PA Act.

12Section 1774.2-A. Other grants.

13Money in the account may be used for grants awarded under
14section 1774.1-A.

15Section 11. Section 1713-A.1 of the act, added July 18, 2013
16(P.L.574, No.71), is amended to read:

17Section 1713-A.1. Use of fund.

18(a) Annual report.--The Governor shall report on the fund in
19the annual budget which shall include the amounts appropriated
20to each program.

21(b) Appropriations.--

22(1) [The] Except as otherwise provided in paragraphs 
23(1.1), (1.2) and (1.3), the General Assembly appropriates
24moneys in the fund in accordance with the following
25percentages based on the annual payment received in each
26year:

27(i) Thirteen percent for home and community-based
28services pursuant to Chapter 5 of the Tobacco Settlement
29Act.

30(ii) Four and five-tenths percent for tobacco use

1prevention and cessation programs pursuant to Chapter 7
2of the Tobacco Settlement Act.

3(iii) Twelve and six-tenths percent for health and
4related research pursuant to section 906 of the Tobacco
5Settlement Act.

6(iv) One percent for health and related research
7pursuant to section 909 of the Tobacco Settlement Act.

8(v) Eight and eighteen one-hundredths percent for
9the uncompensated care payment program pursuant to
10Chapter 11 of the Tobacco Settlement Act.

11(vi) Thirty percent for the purchase of Medicaid
12benefits for workers with disabilities pursuant to
13Chapter 15 of the Tobacco Settlement Act.

14(vii) Eight percent for the expansion of the PACENET
15program pursuant to Chapter 23 of the Tobacco Settlement
16Act.

17(viii) Twenty-two and seventy-two one-hundredths
18percent shall remain in the fund to be separately
19appropriated for health-related purposes.

20(1.1) For fiscal year 2013-2014, the General Assembly
21appropriates money in the fund in accordance with the
22following percentage based on the annual payment received
23each year:

24(i) Thirteen percent for home-based and community-
25based services under Chapter 5 of the Tobacco Settlement
26Act.

27(ii) Two and ninety-three hundreths percent for
28tobacco use prevention and cessation programs under
29Chapter 7 of the Tobacco Settlement Act.

30(iii) Six and three-tenths percent for health and

1related research under section 906 of the Tobacco
2Settlement Act.

3(iv) One-half percent for health and related
4research under section 909 of the Tobacco Settlement Act.

5(v) Four and nine-hundredths percent for the
6uncompensated care payment program under Chapter 11 of
7the Tobacco Settlement Act.

8(vi) Thirty percent for the purchase of Medicaid
9benefits for workers with disabilities under Chapter 15
10of the Tobacco Settlement Act.

11(vii) Forty-three and eighteen hundredths percent
12shall remain in the fund to be separately appropriated
13for health-related purposes.

14(1.2) For fiscal year 2014-2015, money in the fund from
15a payment received due to the recalculation of a prior annual
16payment shall remain in the fund to be separately
17appropriated for health-related purposes.

18(1.3) For fiscal year 2014-2015, the General Assembly
19appropriates money in the fund in accordance with the
20following percentages based on the annual payment received
21each year:

22(i) Thirteen percent for home-based and community-
23based services under Chapter 5 of the Tobacco Settlement
24Act.

25(ii) Four and five-tenths percent for tobacco use
26prevention and cessation programs under Chapter 7 of the
27Tobacco Settlement Act.

28(iii) Twelve and six-tenths percent for health and
29related research under section 906 of the Tobacco
30Settlement Act.

1(iv) One percent for health and related research
2under section 909 of the Tobacco Settlement Act.

3(v) Eight and eighteen hundredths percent for the
4uncompensated care payment program under Chapter 11 of
5the Tobacco Settlement Act.

6(vi) Fifteen and twelve hundredths percent for the
7purchase of Medicaid benefits for workers with
8disabilities under Chapter 15 of the Tobacco Settlement
9Act.

10(vii) Forty-five and six-tenths percent shall remain
11in the fund to be separately appropriated for health-
12related purposes.

13(2) In addition, any Federal funds received for any of
14these programs are specifically appropriated to those
15programs.

16(3) All other payments and revenue received in the fund
17other than the annual payment shall remain in the fund and
18are available to be appropriated for health-related purposes.

19(c) Lapses.--Lapses shall remain in the fund except that
20lapses from money provided for the home and community-based care
21services shall be reallocated to the home and community-based
22care program for use in succeeding years.

23(d) Lobbying restrictions.--No money derived from
24appropriations made by the General Assembly from the fund may be
25used for the lobbying of any State public official.

26[(e) Health venture investment account.--Notwithstanding
27Chapter 3 of the Tobacco Settlement Act, all assets, nonliquid
28investments, contractually obligated money, return on
29investments and any other money or assets in the Health Venture
30Investment Account shall be retained in that account. The

1requirements for venture capital investments outlined in section
2305(f) of the Tobacco Settlement Act shall be maintained. The
3board shall not enter into any partnerships or long-term
4investments through June 30, 2014.]

5(f) Allocation of local program funding.--

6(1) Funding for local programs under section 708(b) of
7the Tobacco Settlement Act shall be allocated as follows:

8(i) Thirty percent of grant funding to primary
9contractors for local programs shall be allocated equally
10among each of the 67 counties.

11(ii) The remaining 70% of the grant funding to
12primary contractors for local programs shall be allocated
13on a per capita basis of each county with a population
14greater than 60,000. The per capita formula shall be
15applied only to that portion of the population that is
16greater than 60,000 for each county.

17(2) Budgets shall be developed by each primary
18contractor to reflect service planning and expenditures in
19each county. Each primary contractor shall ensure that
20services are available to residents of each county and must
21expend the allocated funds on a per-county basis pursuant to
22paragraph (1) and this paragraph.

23(3) The Department of Health shall compile a detailed
24annual report of expenditures per county and the specific
25programs offered in each region. This report shall be made
26available on the Department of Health's publicly available
27Internet website within 60 days following the close of each
28fiscal year.

29(4) During the third quarter of the fiscal year, funds
30which have not been spent within a service area may be

1reallocated to support programming in the same region.

2(g) Transfer.--The strategic contribution payment received
3in fiscal year 2012-2013, and all assets and cash in the Health
4Account, shall be transferred to the fund by August 1, 2013.

5Section 12. The act is amended by adding sections to read:

6Section 1714-A.1. Termination.

7(a) Termination.--The Health Endowment Account for Long-Term
8Hope and Health Venture Investment Account shall terminate and
9close January 1, 2015.

10(b) Transfer of assets.--Notwithstanding Chapter 3 of the
11Tobacco Settlement Act or other law to the contrary, all assets,
12nonliquid investments, contractually obligated money, return on
13investments and any other money or assets in the Health
14Endowment Account for Long-Term Hope and the Health Venture
15Investment Account shall be retained in the accounts until
16distributed under section 1715-A.1.

17(c) Investments.--Beginning July 1, 2014, the Tobacco
18Settlement Investment Board shall not enter into any
19partnerships or investments.

20Section 1715-A.1. Transfer to Public School Employees'
21Retirement System.

22(a) Payments.--Notwithstanding 24 Pa.C.S. § 8326(c)
23(relating to contributions by the Commonwealth), no later than
24December 31, 2014, the Tobacco Settlement Investment Board shall
25make each of the following one-time payments or transfers
26directly to the Public School Employees' Retirement System to
27pay amounts required to be contributed by the Commonwealth under
2824 Pa.C.S. §§ 8328 (relating to actuarial cost method) and 8535
29(relating to payments to school entities by Commonwealth) for
30fiscal year 2014-2015:

1(1) any and all assets, nonliquid investments,
2contractually obligated money, return on investments and all
3other money, cash or assets in the accounts.

4(2) any and all nonliquid investments over which the
5Tobacco Settlement Investment Board has management control or
6authority that are in the Tobacco Settlement Fund; and

7(3) the dollar amount of cash from the Tobacco
8Settlement Fund which is the difference calculated by taking
9$225,000,000 and subtracting the following from that amount:

10(i) the value of only the nonliquid investments
11under paragraphs (1) and (2) valued as of the latest
12valuation report received by the Tobacco Settlement
13Investment Board prior to the date of the transfers under
14paragraphs (1) and (2);

15(ii) the dollar amount of cash transferred from the
16Health Venture Investment Account under paragraph (1);
17and

18(iii) the dollar amount of cash transferred from the
19Health Endowment Account under paragraph (1).

20(b) Duty of board.--The Public School Employees' Retirement
21Board shall:

22(1) accept the transfer made under subsection (a);

23(2) credit the value of the transfer under subsection
24(a) to the system's State accumulation account; and

25(3) apply the value of the transfer as a credit to the
26system's employers on a pro rata basis, as the board deems
27appropriate.

28(c) Immunity.--Notwithstanding any other provision of law,
29fiduciary requirement, actuarial standard of practice or other
30requirement, members of the Public School Employees' Retirement

1Board and its actuaries and employees may not be held liable or
2in breach or violation of any law or standards as individuals,
3in their official capacity or as a governmental or corporate
4entity, for any action taken or calculation made under this
5section.

6(d) Report.--No later than 15 days after the transfer of
7funds under subsection (a), the Secretary of the Budget shall
8notify the chairman and minority chairman of the Appropriations
9Committee of the Senate and the chairman and minority chairman
10of the Appropriations Committee of the House of Representatives
11of the date on which the transfers were made and a detailed
12statement of the assets, nonliquid investments, contractually
13obligated money, return on investments and any other money, cash
14or assets transferred.

15Section 13. Section 1723-A.1 of the act, amended or added
16July 18, 2013 (P.L.574, No.71) and April 10, 2014 (P.L.408,
17No.30), is amended to read:

18Section 1723-A.1. Distributions from Pennsylvania Race Horse
19Development Fund.

20Funds in the fund are appropriated to the department on a
21continuing basis for the purposes set forth in this subsection
22and shall be distributed to each active and operating Category 1
23licensee conducting live racing as follows:

24(1) An amount equal to 18% of the daily gross terminal
25revenue of each Category 1 licensee shall be distributed to
26each active and operating Category 1 licensee conducting live
27racing unless the daily assessments are affected by the daily
28assessment cap provided for in 4 Pa.C.S. § 1405(c) (relating
29to Pennsylvania Race Horse Development Fund). In cases in
30which the daily assessment cap affects daily assessments, the

1distribution to each active and operating Category 1 licensee
2conducting live racing for that day shall be a percentage of
3the total daily assessments paid into the fund for that day
4equal to the gross terminal revenue of each active and
5operating Category 1 licensee conducting live racing for that
6day divided by the total gross terminal revenue of all active
7and operating Category 1 licensees conducting live racing for
8that day. Except as provided in paragraphs (2) and (2.1), the
9distributions to licensed racing entities from the fund shall
10be allocated as follows:

11(i) Eighty percent shall be deposited weekly into a
12separate, interest-bearing purse account to be
13established by and for the benefit of the horsemen. The
14earned interest on the account shall be credited to the
15purse account. Licensees shall combine these funds with
16revenues from existing purse agreements to fund purses
17for live races consistent with those agreements with the
18advice and consent of the horsemen.

19(ii) For thoroughbred tracks, 16% shall be deposited
20on a monthly basis into the Pennsylvania Breeding Fund as
21defined in section 223 of the Race Horse Industry Reform
22Act. For standardbred tracks, 8% shall be deposited on a
23monthly basis in the Pennsylvania Sire Stakes Fund as
24defined in section 224 of the Race Horse Industry Reform
25Act, and 8% shall be deposited on a monthly basis into a
26restricted account in the State Racing Fund to be known
27as the Pennsylvania Standardbred Breeders Development
28Fund. The State Harness Racing Commission shall, in
29consultation with the Secretary of Agriculture, by rule
30or by regulation, adopt a standardbred breeders program

1that will include the administration of the Pennsylvania
2Stallion Award, the Pennsylvania Bred Award and the
3Pennsylvania Sired and Bred Award.

4(iii) Four percent shall be used to fund health and
5pension benefits for the members of the horsemen's
6organizations representing the owners and trainers at the
7racetrack at which the licensed racing entity operates
8for the benefit of the organization's members, their
9families, employees and others in accordance with the
10rules and eligibility requirements of the organization,
11as approved by the State Horse Racing Commission or the
12State Harness Racing Commission. This amount shall be
13deposited within five business days of the end of each
14month into a separate account to be established by each
15respective horsemen's organization at a banking
16institution of its choice. Of this amount, $250,000 shall
17be paid annually by the horsemen's organization to the
18thoroughbred jockeys or standardbred drivers organization
19at the racetrack at which the licensed racing entity
20operates for health insurance, life insurance or other
21benefits to active and disabled thoroughbred jockeys or
22standardbred drivers in accordance with the rules and
23eligibility requirements of that organization.

24(2) Distributions from the fund shall be allocated as
25follows:

26(i) For fiscal [year] years 2013-2014 and 2014-2015, 
27each week, $802,682 in the fund shall be transferred to 
28the account. This transfer shall not exceed $17,659,000 
29annually.

30(i.1) In addition to the transfer under subparagraph
 

1(i), for a total of 14 weeks from the effective date of 
2this subparagraph, each week, $300,000 shall be 
3transferred from the fund, for a total amount of 
4$4,200,000, to the State Racing Fund to be used
5exclusively for the enforcement of the act of December
617, 1981 (P.L.435, No.135), known as the Race Horse
7Industry Reform Act. Moneys transferred pursuant to this
8subparagraph shall not be transferred subsequently to any
9other State fund or account for any purpose.

10(ii) [For fiscal year 2013-2014, each] Each week,
11the money remaining in the fund after any transfer under
12subparagraphs (i) and (i.1) shall be distributed to each
13active and operating Category 1 licensee conducting live
14racing in accordance with the following formula:

15(A) Divide:

16(I) the total daily assessments paid, by
17each active and operating Category 1 licensee
18conducting live racing, into the fund for that
19week; by

20(II) the total daily assessments paid, by
21all active and operating Category 1 licensees
22conducting live racing, into the fund for that
23week.

24(B) Multiply the quotient under clause (A) by
25the amount to be distributed under this subparagraph.

26(iii) The distribution under subparagraph (ii) shall
27be allocated as follows:

28(A) The greater of 4% of the amount to be
29distributed under subparagraph (ii) or $220,000 shall
30be used to fund health and pension benefits for the

1members of the horsemen's organizations representing
2the owners and trainers at the racetrack at which the
3licensed racing entity operates for the benefit of
4the organization's members, their families, employees
5and others in accordance with the rules and
6eligibility requirements of the organization, as
7approved by the State Horse Racing Commission or the
8State Harness Racing Commission. This amount shall be
9deposited within five business days of the end of
10each week into a separate account to be established
11by each respective horsemen's organization at a
12banking institution of its choice. Of this amount, a
13minimum of $250,000 shall be paid annually by the
14horsemen's organization to the thoroughbred jockeys
15or standardbred drivers organization at the racetrack
16at which the licensed racing entity operates for
17health insurance, life insurance or other benefits to
18active and disabled thoroughbred jockeys or
19standardbred drivers in accordance with the rules and
20eligibility requirements of that organization. The
21total distribution under this clause in any fiscal
22year shall not exceed $11,400,000.

23(B) Of the money remaining to be distributed
24under subparagraph (ii) after application of clause
25(A), the following disbursements shall be made:

26(I) Eighty-three and one-third percent of
27the money to be distributed under this clause
28shall be deposited on a weekly basis into a
29separate, interest-bearing purse account to be
30established by and for the benefit of the

1horsemen. The earned interest on the account
2shall be credited to the purse account. Licensees
3shall combine these funds with revenues from
4existing purse agreements to fund purses for live
5races consistent with those agreements with the
6advice and consent of the horsemen.

7(II) For thoroughbred tracks, 16 and 2/3% of
8the money to be distributed under this clause
9shall be deposited on a weekly basis into the
10Pennsylvania Breeding Fund established in section
11223 of the Race Horse Industry Reform Act. For
12standardbred tracks, 8 and 1/3% of the money to
13be distributed under this clause shall be
14deposited on a weekly basis into the Pennsylvania
15Sire Stakes Fund as defined in section 224 of the
16Race Horse Industry Reform Act; and 8 and 1/3% of
17the money to be distributed under this clause
18shall be deposited on a weekly basis into a
19restricted account in the State Racing Fund to be
20known as the Pennsylvania Standardbred Breeders
21Development Fund. The State Harness Racing
22Commission shall, in consultation with the
23Secretary of Agriculture, promulgate regulations
24adopting a standardbred breeders program that
25will include the administration of the
26Pennsylvania Stallion Award, the Pennsylvania
27Bred Award and the Pennsylvania Sired and Bred
28Award.

<-29Section 13.1. Section 1719-E of the act, added July 17, 2007 
30(P.L.141, No.42), is amended to read:

1Section 1719-E. Department of Community and Economic
2Development.

3The following shall apply to appropriations for the
4Department of Community and Economic Development:

5(1) No more than 20% of funds appropriated for grants
6under the act of May 20, 1949 (P.L.1633, No.493), known as
7the Housing and Redevelopment Assistance Law, shall be
8allocated to any one political subdivision.

9(2) [(Reserved).] For purposes of Article XVIII-C of
10the act of March 4, 1971 (P.L.6, No.2), known as the Tax
11Reform Code of 1971, the term "contracting authority" shall
12include an authority that establishes a pilot zone in
13accordance with Article XVIII-C of the Tax Reform Code of
141971.

15(2.1) A township or borough or a group of townships or
16boroughs may establish a contracting authority to designate a
17pilot zone under Article XVIII-C of the Tax Reform Code of
181971.

19(3) A city revitalization and improvement zone may
20include up to 40 acres in a contiguous municipality as part
21of the 130-acre total.

22(4) In addition to city revitalization and improvement
23zones authorized under section 1804-C(c)(1) and (2) of the
24Tax Reform Code of 1971:

25(i) Three city revitalization and improvement zones
26and two pilot zones may be approved in 2014.

27(ii) Two city revitalization and improvement zones
28and two pilot zones may be approved in 2015.

29(iii) No additional zones may be approved after
30December 30, 2015.

1(5) By June 1, 2017, the Independent Fiscal Office, the
2Department of Community and Economic Development and the
3Office of the Budget shall complete a review and analysis of
4all city revitalization and improvement zones, including any
5pilot zones.

6Section <-13.2 <-13.1. Section 1734-E of the act, added July 17,
72007 (P.L.141, No.42), is amended to read:

8Section 1734-E. State Civil Service Commission.

9(a) Appropriation.--Funds appropriated to the State Civil
10Service Commission shall include any funds collected by the
11commission for the administration of the merit system for
12employees under the act of August 5, 1941 (P.L.752, No.286),
13known as the Civil Service Act.

14(b) Contracts.--From funds appropriated for the operation
15and administration of the State Civil Service Commission, the
16commission may enter into contracts for the production of
17physical copies of examinations or tests, including the
18questions or other material used in the examinations or tests.
19Contracts shall require the contractor to maintain security over
20the examinations or tests to prevent unauthorized persons from
21gaining access to them while in the contractor's possession.

22(c) Agreements.--From funds appropriated for the operation
23of the commission, the commission may enter into cooperative
24agreements with departments, boards, commissions and other
25agencies to provide services, including budget preparation,
26fiscal oversight, human resources and personnel services,
27technology services, procurement, courier and mailing and other
28services. Notwithstanding 62 Pa.C.S. (relating to procurement),
29the commission may use the Department of General Services as its
30purchasing agency. The commission shall retain authority over

1commission work under the cooperative agreement.

2Section <-13.3 <-13.2. The act is amended by adding sections to
3read:

4Section 1741.1-E. Environmental Quality Board.

5(a) Regulations.--From funds appropriated to the
6Environmental Quality Board, the board shall promulgate proposed
7regulations and regulations under 58 Pa.C.S. (relating to oil
8and gas) or other laws of this Commonwealth relating to
9conventional oil and gas wells separately from proposed
10regulations and regulations relating to unconventional gas
11wells. All regulations under 58 Pa.C.S. shall differentiate
12between conventional oil and gas wells and unconventional gas
13wells. Regulations promulgated under this section shall apply to
14regulations promulgated on or after the effective date of this
15section.

16(b) Definitions.--As used in this section, the following
17words and phrases shall have the meanings given to them in this
18subsection unless the context clearly indicates otherwise:

19"Conventional oil and gas well." A bore hole drilled for the
20purpose of producing oil or gas from a conventional formation.
21The term includes any of the following:

22(1) A well drilled to produce oil.

23(2) A well drilled to produce natural gas from
24formations other than shale formations.

25(3) A well drilled to produce natural gas from shale
26formations located above the base of the Elk Group or its
27stratigraphic equivalent.

28(4) A well drilled to produce natural gas from shale
29formations located below the base of the Elk Group where
30natural gas can be produced at economic flow rates or in

1economic volumes without the use of vertical or nonvertical
2well bores stimulated by hydraulic fracture treatments or by
3using multilateral well bores or other techniques to expose
4more of the formation to the well bore.

5(5) Irrespective of formation, a well drilled for
6collateral purposes, such as monitoring, geologic logging,
7secondary and tertiary recovery or disposal injection.

8"Unconventional gas well." As defined in 58 Pa.C.S. § 2301
9(relating to definitions).

10Section 1795.1-E. Surcharges.

11(a) Legislative finding.--Due to reductions in revenue
12available to the Commonwealth, it is necessary to increase
13certain fees or surcharges to adequately fund the Unified
14Judicial System.

15(b) Imposition.--In addition to the fee under 42 Pa.C.S. §
163733.1(a)(1) (relating to surcharge), an additional surcharge of
17$10 shall be charged and collected by a division of the Unified
18Judicial System. This subsection shall expire December 31, 2017.

19Section <-13.4 <-13.3. Article XVII-E of the act is amended by
20adding a subarticle to read:

21SUBARTICLE F

22OTHER AGENCIES

23Section 1799.1-E. Pennsylvania Liquor Control Board.

24In order to encourage applications for licensure for tavern 
25gaming, the Pennsylvania Liquor Control Board may reduce the 
26license fee under section 905(c) of the act of December 19, 1988 
27(P.L.1262, No.156), known as the Local Option Small Games of 
28Chance Act, to $500 upon approval of the license.

29Section 14. Repeals are as follows:

30(1) The General Assembly finds and declares as follows:

1(i) Each year, articles on budget implementation are
2added to the act of April 9, 1929 (P.L.343, No.176),
3known as The Fiscal Code.

4(ii) These articles are temporary in nature but are
5placed permanently into the act, utilizing article
6numbers and section numbers.

7(iii) Reusing article numbers and section numbers
8will keep the text of the act more concise.

9(iv) The repeals under paragraph (2) are necessary
10to effectuate subparagraph (iii).

11(2) Articles XVII-J and XVII-K of the act, added October
129, 2009 (P.L.537, No.50), are repealed.

13Section 15. The act is amended by adding articles to read:

14ARTICLE XVII-E.1

15RURAL REGIONAL COLLEGE

16FOR UNDERSERVED COUNTIES

17Section 1701-E.1. Applicability.

18This article applies to appropriations from every General
19Appropriation Act.

20Section 1702-E.1. Scope of article.

21This article provides for the establishment of a rural
22regional college in a multicounty rural area that is underserved
23by comprehensive community college education and work force
24development.

25Section 1703-E.1. Definitions.

26The following words and phrases when used in this article
27shall have the meanings given to them in this section unless the
28context clearly indicates otherwise:

29"Annual." A 12-month period coterminous with the
30Commonwealth's fiscal year beginning July 1 and ending June 30.

1"Board of trustees." The board of trustees of a rural
2regional college established under this article.

3"County." Any county in this Commonwealth.

4"Certified public accountant." A member of the American
5Institute of Certified Public Accountants who has a minimum of
6five years' verifiable experience in performing audits of
7government funds for nonprofit organizations with a comparable
8or larger annual budget.

9"Middle States." The Middle States Association of Colleges
10and Schools.

11"Partner institution." One or more Middle States-accredited
12institutions of higher education.

13"Rural regional college." A public institution of higher
14education which is established in a rural area and operated in
15accordance with the provisions of this article as a college
16which provides up to a two-year, postsecondary education not to
17exceed the level of an associate of arts or sciences degree and
18which is active in work force development.

19"Rural regional college plan" or "plan." A plan for the
20establishment and operation of a rural regional college under
21this article.

22"Secretary." The Secretary of Education of the Commonwealth
23or such person as the secretary may designate to act on behalf
24of the secretary with regard to any of the duties and
25prerogatives imposed by this article.

26"State Board." The State Board of Education.

27Section 1704-E.1. Designations by secretary.

28(a) Duties of secretary.--

29(1) Within 30 days of the effective date of this
30section, the secretary shall designate an established

1nonprofit organization as defined under section 501(c)(3) of
2the Internal Revenue Code of 1986 (Public Law 99-514, 26
3U.S.C. § 501(c)(3)), which represents a rural multicounty
4region underserved by a comprehensive community college
5program, including work force development, to assist the
6secretary with the designation under paragraph (2).

7(2) Within 30 days of the designation under paragraph
8(1), the secretary shall, in consultation with the nonprofit
9organization, designate contiguous counties or parts of
10contiguous counties to be served by establishment of a rural
11regional college.

12(b) Changes.--No sooner than four years after the effective
13date of this section, the secretary, with approval of the board
14of trustees, may add counties or parts of counties to be served
15by the rural regional college.

16Section 1705-E.1. Designation and board of trustees.

17Within 60 days of the secretary's designation under section
181704-E.1(a)(2), a board of trustees shall be appointed to
19establish a rural regional college. The board of trustees shall
20consist of not fewer than seven members nor more than 15 members
21appointed by the secretary in consultation and jointly with the
22nonprofit organization designated under section 1704-E.1(a)(1).
23The following shall apply to the board of trustees established
24under this section:

25(1) Members of the board of trustees shall be
26representative of the area designated under section 1704-
27E.1(a)(2) and may include school administrators, community
28education council officials, business leaders and government
29officials.

30(2) Members of the board of trustees shall be appointed

1for terms of three years each, except that those persons
2initially appointed shall draw lots to determine which
3trustees shall serve for a term of three years, which
4trustees shall serve for a term of two years and which
5trustees shall serve for a term of one year. To the extent
6practicable, from those trustees initially appointed, an
7equal number shall draw lots to serve for a term of three
8years, for a term of two years and for a term of one year.
9Thereafter, all members shall be appointed for terms of three
10years each.

11(3) Vacancies on the board shall be filled by the
12existing board. A trustee may succeed himself, provided that
13no member shall serve for longer than ten years.

14(4) The secretary shall convene an initial meeting of
15the board of trustees within 30 days of the secretary's
16appointment of a board of trustees under this section. After
17the initial meeting, the board of trustees shall meet at such
18times each year as the board of trustees determines to be
19necessary to satisfy the requirements of this article.

20(5) The board of trustees shall adopt standing operating
21rules and procedures, by laws and articles of incorporation.

22(6) The board of trustees shall establish an advisory
23council of presidents, or their designees, from institutions
24with postsecondary education programs within the region
25designated under section 1704-E.1(a)(2). The advisory council
26shall meet quarterly to discuss employer and work force
27needs, new educational offerings and general coordination of
28service and facilities. One advisory council member
29representing a community college and one advisory council
30member that is a president of a college or university shall

1serve as co-chairs.

2(7) The board of trustees shall choose from among its
3members a chairman, vice chairman and secretary.

4(8) A majority of the members of the board of trustees
5shall constitute a quorum.

6(9) Trustees shall serve without compensation, except
7that they shall be reimbursed by the rural regional college
8for their actual and necessary expenses incurred in the
9performance of their duties.

10Section 1706-E.1. Establishment.

11(a) General rule.--Within one year of its initial meeting,
12the board of trustees appointed under section 1705-E.1 shall
13submit to the secretary a proposed rural regional college plan
14in such form and containing such information as the secretary
15may require. In addition to other information which may be
16required by the secretary, the plan shall include the following:

17(1) A designation of the name of the proposed rural
18regional college which shall be the "Rural Regional College
19of " or " Rural Regional
20College."

21(2) A survey of the educational, vocational and
22occupational needs of the area and the means by which the
23proposed rural regional college will meet those needs, re-
24engage high school dropouts to earn their secondary
25credentials and postsecondary credentials or industry
26certification, reduce unemployment and improve the employable
27skills of residents of the area to be served by the rural
28regional college.

29(3) An operating and financial plan for the proposed
30rural regional college, including a plan for the capital

1needs and expenses of the proposed rural regional college.

2(4) A plan by which the rural regional college shall
3seek accreditation by an accrediting association which is
4recognized by the United States Department of Education.

5(b) Submission of plan.--Within 60 days of the submission of
6the rural regional college plan to the secretary, the secretary
7shall issue an approval or rejection of the plan. A rejection of
8the plan shall be accompanied by a written statement of the
9reasons for the rejection of the plan. If the plan is rejected,
10the board of trustees shall submit a revised plan to the
11secretary within 60 days of the plan's rejection.

12(c) Plan approval.--Upon the approval of the plan by the
13secretary, the rural regional college shall be considered
14established.

15Section 1707-E.1. Powers and duties of board of trustees.

16(a) General rule.--The board of trustees appointed under
17section 1705-E.1 shall administer and supervise the affairs of
18the rural regional college established under this article.
19Subject to any other law and to any regulations promulgated by
20the State Board pertaining to rural regional colleges, the board
21of trustees shall have the following powers and duties:

22(1) To advance the mission of the rural regional
23college in service to residents of the region designated
24under section 1704-E.1(a)(2).

25(2) To appoint and fix the salary of a president of the
26rural regional college.

27(3) To appoint and fix the salary of a chief financial
28officer of the rural regional college.

29(4) To hold, rent, lease, sell, purchase and improve
30land, buildings, furnishings, equipment, materials, books and

1supplies.

2(5) To enter into contracts for services with community
3education councils, schools, colleges or universities, or
4with school districts or municipalities, and other applicable
5or appropriate agencies and organizations, to effectuate the
6purposes of this article.

7(6) To accept and receive gifts of real and personal
8property and Federal, State and local moneys, loans and
9grants, and to expend the same.

10(7) To make policies providing for the admission and
11expulsion of students, the courses of instruction, the
12tuition and fees to be charged and for all matters related to
13the government and administration of the rural regional
14college, provided that policies related to admission, tuition
15and fees give preference to residents of the area designated
16by the secretary pursuant to section 1704-E.1(a)(2).

17(8) To submit to the secretary for approval proposed
18amendments to the rural regional college plan.

19(9) To enter into contracts for services to high schools
20located in the area designated by the secretary under section
211704-E.1 to provide services, including area vocational-
22technical education services.

23(10) To approve an annual budget to be submitted to the
24secretary for funding.

25(11) To exercise such other powers and perform such
26other duties as are necessary to effectuate the purposes of
27this article.

28(b) Duties of board.--The board of trustees shall enter into
29contracts, hold property and take other actions in the name of
30the rural regional college.

1(c) Initial partnership.--

2(1) The board of trustees shall select initially a
3partner institution to develop and offer accredited courses
4and programs of study at the approved sites of operation.

5(2) The partner institution shall select programs only
6with approval of the board of trustees and consistent with
7the partner institution's accreditation and shall be
8responsible for staffing and evaluation and provision of
9other support services as may be required for students.

10(3) The board of trustees may contract with other
11colleges to provide curricula not available through the
12partner institution.

13(4) As the rural regional college is able to operate on
14its own, a transition plan and budget shall be included in
15the contract between the rural regional college and the
16partner institution to efficiently expedite the transition.

17(5) Nothing in this article shall be construed to
18preclude the board of trustees from contracting for specific
19services or programs following the transition from the
20initial partner institution.

21Section 1708-E.1. Officers of rural regional college.

22(a) President.--The president shall be the chief executive
23and administrative officer of the rural regional college and
24shall perform all duties which the board of trustees may
25prescribe. The president shall have the right to attend meetings
26of the board of trustees and to be heard on all matters before
27it, but shall have no right to vote on any matter.

28(b) Chief financial officer.--The chief financial officer of
29the rural regional college shall give a proper bond in such
30amount and with such corporate surety as is approved by the

1board of trustees. The chief financial officer shall file the
2bond with the board of trustees. The account of the chief
3financial officer shall be audited annually by a certified
4public accountant or other qualified public accountant selected
5by the board of trustees.

6Section 1709-E.1. Students.

7Any individual may apply for admission to the rural regional
8college established under this article, provided that preference
9in admissions, tuition and fees may be given to residents of the
10multicounty area designated by the secretary pursuant to section
111704-E.1(a)(2). In considering applicants for admission, the
12rural regional college shall not discriminate on the basis of
13race, color, gender, marital status, ethnic group or religion.

14Section 1710-E.1. Tuition.

15The tuition and fees charged by the rural regional college
16shall be an amount determined by the board of trustees, in
17accordance with the budget submitted to the secretary. The board
18of trustees shall annually establish a separate schedule of
19tuition and fees for students that reside inside the region
20designated under section 1704-E.1(a)(2) and students that reside
21outside said region.

22Section 1711-E.1. Dissolution and transition of rural regional
23college.

24The rural regional college established under this article may
25not be dissolved without the approval of the secretary. Upon
26dissolution of the rural regional college, the Commonwealth
27shall assume all assets and liabilities of the rural regional
28college, except that such assets that are the property of any
29partner institution that may be operating for and within the
30rural regional college shall remain the property of the partner

1institution.

2Section 1712-E.1. Degrees.

3The rural regional college established under this article may
4award any type of diploma, technical or career training
5certificate or associate degrees in the arts, sciences,
6technologies or general education upon successful completion of
7programs authorized by the board of trustees. As long as the
8partner institution provides the accredited curricula and
9courses under contract to the rural regional college, the
10requirements of the accrediting agency shall pertain to the
11granting of such awards.

12Section 1713-E.1. Funding.

13The rural regional college established under this article
14shall be funded by tuition and fees established by the board of
15trustees, and may accept appropriations from the General
16Assembly, grants from the Federal Government, grants from the
17Commonwealth, grants from private foundations or any combination
18thereof.

19Section 1714-E.1. Financial aid.

20(a) Initial partnership period.--During the rural regional
21college's initial partnership with a partner institution, a
22student enrolled in the rural regional college shall be eligible
23for consideration for a Pennsylvania State Grant and other
24Commonwealth-funded financial aid administered by the
25Pennsylvania Higher Education Assistance Agency, provided that
26the partner institution is an institution of higher education as
27approved by and in accordance with rules and regulations of the
28Pennsylvania Higher Education Assistance Agency.

29(b) Post-transition period.--Upon the rural regional college
30operating on its own without a partner institution, a student

1shall only be eligible for consideration for a Pennsylvania
2State Grant and any other Commonwealth-funded financial aid if
3the rural regional college is approved by the Department of
4Education and is accredited or a recognized candidate for
5accreditation with an accrediting body recognized under rules
6and regulations of the Pennsylvania Higher Education Assistance
7Agency and satisfies any other institutional and administrative
8program requirements as the Pennsylvania Higher Education
9Assistance Agency may require.

10Section 1715-E.1. Regulations.

11The State Board may promulgate regulations pursuant to the
12act of June 25, 1982 (P.L.633, No.181), known as the Regulatory
13Review Act, as necessary to implement this article.

14Section 1716-E.1. Reports.

15The Legislative Budget and Finance Committee shall prepare
16and submit to the General Assembly written interim and final
17reports evaluating the operation of this article. The interim
18report shall be submitted by June 30, 2018, and the final report
19shall be submitted by June 30, 2022. Each report shall include,
20but may not be limited to, the following:

21(1) A review of the success of the rural regional
22college established under this article in satisfying the
23goals set forth in the rural regional college plan approved
24by the secretary and in satisfying the needs of the
25multicounty area the rural regional college was established
26to serve.

27(2) Demographic and program data, including the
28following:

29(i) Numbers of full-time and part-time faculty and
30student enrollments, in total and within curricular

1areas.

2(ii) Dual enrollment participation.

3(iii) Credit hours taught by faculty.

4(iv) Distance learning courses offered.

5(v) Articulation agreements with higher education
6institutions.

7(vi) Lists of courses with fewer than 20 students.

8(vii) Lists of courses with more than 50 students.

9Where available, student data shall be disaggregated by
10categories, including gender, race and age.

11(3) Student progress and achievement measures, including
12the following:

13(i) Retention rates related to student goals.

14(ii) Graduation and completion rates after two,
15three and four years.

16(iii) Passing rates on certification and licensure
17examinations.

18(iv) Number of students employed within one year of
19program completion.

20(v) Placement into additional education or
21employment in the student's field of study.

22Where available, data shall be disaggregated by categories,
23including gender, race and age.

24(4) Economic and work force development measures,
25including:

26(i) Employer satisfaction.

27(ii) Customized job training offerings.

28(iii) Employment status.

29(iv) Numbers of businesses and organizations served.

30(5) Recommendations for future legislation.

1Section 1717-E.1. Transfers of credits.

2For purposes of facilitating the transfer of credits attained
3by students of the rural regional college, the rural regional
4college shall be considered a public institution of higher
5education as defined in section 2001-C of the act of March 10,
61949 (P.L.30, No.14), known as the Public School Code of 1949,
7and, upon the rural regional college being able to operate on
8its own, shall be required to fulfill all the duties and obtain
9for its students all the benefits of Article XX-C of the Public
10School Code of 1949, within two years of operation of the
11established rural regional college.

12ARTICLE XVII-J

132014-2015 BUDGET IMPLEMENTATION

14SUBARTICLE A

15PRELIMINARY PROVISIONS

16Section 1701-J. Applicability.

17Except as specifically provided in this article, this article
18applies to the General Appropriation Act and all other
19appropriation acts of 2014.

20Section 1702-J. Definitions.

21(a) Definitions.--The following words and phrases when used
22in this article shall have the meanings given to them in this
23section unless the context clearly indicates otherwise:

24"General Appropriation Act." The act of , 2014 (P.L. ,
25No. A), known as the General Appropriation Act of 2014.

26"Public School Code of 1949." The act of March 10, 1949
27(P.L.30, No.14), known as the Public School Code of 1949.

28"Secretary." The Secretary of the Budget of the
29Commonwealth.

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

1this article shall have the meanings given to them in this
2section:

3"AIDS." Acquired Immune Deficiency Syndrome.

4"ARC." Appalachian Regional Commission.

5"ARRA." The American Recovery and Reinvestment Act of 2009
6(Public Law 111-5, 123 Stat. 115).

7"BG." Block Grant.

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

9"CSBG." Community Services Block Grant.

10"DCSI." Drug Control and Systems Improvement Formula Grant
11Program.

12"DFSC." The Safe and Drug-Free Schools and Communities Act
13(Public Law 107-110, 20 U.S.C. § 7101 et seq.).

14"DOE." Department of Energy.

15"EEOC." Equal Employment Opportunity Commission.

16"EPA." Environmental Protection Agency.

17"ESEA." The Elementary and Secondary Education Act of 1965
18(Public Law 89-10, 20 U.S.C. § 6301 et seq.).

19"FEMA." Federal Emergency Management Agency.

20"FTA." Federal Transit Administration.

21"HUD." Department of Housing and Urban Development.

22"ID." Intellectual Disability.

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

24"LSTA." The Library Services and Technology Act (Public Law
25104-208, 20 U.S.C. § 9101 et seq.).

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

27"MHSBG." Mental Health Services Block Grant.

28"PAFE." Pennsylvania Agricultural Food Exposition.

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

30"RSAT." Residential Substance Abuse Treatment.

1"SABG." Substance Abuse Block Grant.

2"SCDBG." Small Communities Development Block Grant.

3"SDA." Service Delivery Area.

4"SSBG." Social Services Block Grant.

5"TANF." Temporary Assistance for Needy Families.

6"TANFBG." Temporary Assistance for Needy Families Block
7Grant.

8"TEFAP." Temporary Emergency Food Assistance Program.

9"WIA." The Workforce Investment Act of 1998 (Public Law 105-
10220, 112 Stat. 936).

11"WIC." Women, Infants and Children Program.

12SUBARTICLE B

13EXECUTIVE DEPARTMENTS

14Section 1711-J. Governor (Reserved).

15Section 1712-J. Executive offices.

16(1) Funds appropriated to the Pennsylvania Commission on
17Crime and Delinquency for intermediate punishment treatment
18programs shall be distributed competitively to counties for
19offenders sentenced to intermediate punishment programs. The
20portion of funds for drug and alcohol treatment programs
21shall be based on national statistics that identify the
22percentage of incarcerated individuals that are in need of
23treatment for substance issues but in no case shall be less
24than 80% of the amount appropriated.

25(2) From funds appropriated to the commission, at least
26$285,000 shall be used to support the Statewide Automated
27Victim Information and Notification System (SAVIN) to provide
28offender information through county jails and $200,000 shall
29be used for a residential treatment community facility for
30at-risk youth located in a county of the fifth class.

1(3) From funds appropriated for violence prevention
2programs, at least $250,000 shall be used for programs in a
3city of the second class and at least $450,000 shall be used
4for a blueprint mentoring program that addresses reducing
5youth violence in cities of the first, second and third
6class.

7(4) From funds appropriated for child advocacy centers,
8$250,000 shall be used for a mobile child advocacy center.

9Section 1713-J. Lieutenant Governor (Reserved).

10Section 1714-J. Attorney General (Reserved).

11Section 1715-J. Auditor General (Reserved).

12Section 1716-J. Treasury Department.

13From funds appropriated for intergovernmental organizations,
14$45,000 shall be allocated for payment of dues for fiscal years
152013-2014 and 2014-2015 to a commission of the Atlantic coastal
16states that coordinates the conservation and management of near-
17shore fish species.

18Section 1717-J. Department of Aging (Reserved).

19Section 1718-J. Department of Agriculture.

20(1) From funds appropriated for agricultural research,
21at least $300,000 shall be used for an agricultural resource
22center in conjunction with a land-grant university.

23(2) At least 80% of the funds appropriated for hardwoods
24research and promotion shall be equally distributed among the
25hardwood utilization groups of this Commonwealth established
26prior to the effective date of this section.

27(3) From funds appropriated for general government
28operations, $250,000 shall be transferred to the Dog Law
29Restricted Account.

30Section 1719-J. Department of Community and Economic

1Development.

2The following shall apply to appropriations for the
3Department of Community and Economic Development:

4(1) For fiscal year 2014-2015, $250,000 of the funds
5appropriated for Keystone Communities shall be used for the
6restoration of a historic property to provide affordable
7housing in a county of the fourth class with a population,
8based on the most recent Federal decennial census, of at
9least 150,000 but not more than 155,000 and $500,000 shall be
10used for a downtown revitalization project including
11installation of new lighting systems, signal upgrade and
12sidewalk replacements in a city of the third class in a
13county of the fifth class. The remaining funds include an
14allocation for the Main Street and Elm Street programs which
15are distributed in the same proportion as amounts allocated
16in fiscal year 2012-2013.

17(2) The sum of $4,700,000 of the funds appropriated for
18marketing to attract tourists includes an allocation to plan
19and market a biennial arts and cultural activity which
20generates Statewide and regional economic impact, allocations
21to promote annual arts and cultural activities and an
22allocation of $300,000 for an annual Statewide competition
23serving approximately 2,000 athletes with intellectual
24disabilities from across this Commonwealth to be held in a
25county of the fourth class.

26(3) From funds appropriated for intergovernmental
27cooperation authority, $300,000 to cities of the second class
28for purposes determined by the board to be necessary to
29achieve or sustain fiscal recovery.

30Section 1720-J. Department of Conservation and Natural

1Resources.

2The following shall apply to appropriations from the
3Department of Conservation and Natural Resources in the General
4Appropriation Act:

5(1) From funds appropriated for Heritage and other
6parks, $500,000 shall be used for the operation and
7maintenance of the Washington Crossing Historical Park.

8(2) (Reserved).

9Section 1721-J. Department of Corrections (Reserved).

10Section 1722-J. Department of Education.

11The following shall apply to appropriations for the
12Department of Education in the General Appropriation Act:

13(1) From funds appropriated for general government
14operations, $50,000 shall be allocated to promote a national
15veteran's education program.

16(2) From an appropriation for adult and family literacy
17programs, summer reading programs and the adult high school
18diplomas program, $400,000 shall be allocated for an after-
19school learning program servicing low-income students located
20in a county of the sixth class with a population, based on
21the most recent Federal decennial census, of at least 60,000
22but not more than 70,000.

23(3) From funds appropriated for mobile science and math
24education programs, $50,000 shall be allocated for a math
25education program that targets middle school students,
26$150,000 shall be allocated to a nautical science center in a
27county of the second class, $14,000 shall be allocated for a
28math laboratory in a school district in a city of the third
29class located in a county of the third class, $500,000 shall
30be allocated for the construction of a National Aeronautics

1and Space Administration-sponsored science, technology,
2engineering and mathematics center in a township of the
3second class in a county of the sixth class, and $500,000
4shall be allocated for a regional science, technology,
5engineering and mathematics center serving sixth through
6twelfth grade students located in a township of the first
7class in a county of the third class.

8(4) Notwithstanding any other provision of law, funds
9appropriated for community education councils shall be
10distributed as follows:

11(i) Each community education council which received
12funding in fiscal year 2013-2014 shall receive an amount
13equal to the amount it received in that fiscal year and a
14pro rata share of $50,000.

15(ii) No less than $480,000 for an education
16consortium serving Cameron, Clarion, Clearfield,
17Crawford, Elk, Forest, Jefferson, McKean, Potter, Venango
18and Warren counties.

19(5) From funds appropriated for regional community
20college services, $500,000 shall be distributed to a
21community college in a county of the fourth class with a
22population, based on the most recent Federal decennial
23census, of at least 175,000, but not more than 190,000, and
24$1,200,000 shall be distributed to a rural regional college
25serving multiple rural communities or parts of rural
26communities.

27(6) From funds appropriated for Pennsylvania Charter
28Schools for the Deaf and Blind, $1,100,000 shall be
29distributed pro rata based on each school's increased share
30of required contributions for public school employees'

1retirement.

2(7) Notwithstanding section 1724-A of the Public School
3Code of 1949 or 24 Pa.C.S. § 8329 (relating to payments on
4account of social security deductions from appropriations),
5no payments shall be made to charter schools or cyber charter
6schools authorized under Article XVII-A of the Public School
7Code of 1949 from funds appropriated for school employees'
8Social Security.

9(8) Notwithstanding any other provision of law, the
10following shall apply to school building construction and
11reconstruction projects for which reimbursement from the
12appropriation for payments on account of annual rental or
13sinking fund charges on school buildings, or charter schools
14is being sought:

15(i) For a school district that has received approval
16from the department for reimbursement, but fails to
17submit all additional project documentation requested
18within 90 days of the request, the department shall move
19the project back in the reimbursement order until such
20time as the school district complies with the information
21request and shall move other projects up in the
22reimbursement order.

23(ii) The Secretary of Education may grant waivers to
24school districts that fail to submit requested
25documentation under subparagraph (i) and are in the
26process of reconciling financial records, or are facing
27litigation or bond refinancing delays.

28(9) Notwithstanding section 1724-A of the Public School
29Code of 1949 or 24 Pa.C.S. §§ 8326 (relating to contributions
30by the Commonwealth) and 8535 (relating to payments to school

1entities by Commonwealth), no payments shall be made to
2charter schools or cyber charter schools authorized under
3Article XVII-A of the Public School Code of 1949 from funds
4appropriated for payment of required contributions for public
5school employees' retirement.

6(10) From the appropriation for payments on account of
7special education for exceptional children, the amount of the
8appropriation allocated for payments to school districts
9shall be distributed as follows:

10(i) Each school district shall receive an amount
11equal to the amount paid during the 2013-2014 school year
12under section 2509.5(aaa) of the Public School Code of
131949.

14(ii) A student-based allocation to be calculated as
15follows:

16(A) Multiply the sum of the school district's
17weighted special education student headcount and its
18sparsity/size adjustment by its market value/income
19aid ratio and its equalized millage multiplier.

20(B) Multiply the product in clause (A) by
21$19,800,000.

22(C) Divide the product from clause (B) by the
23sum of the products in clause (A) for all school
24districts.

25(11) For the purposes of paragraph (10):

26(i) The weighted special education student headcount
27shall be calculated for each school district as follows:

28(A) Multiply the number of special education
29students who reside in the school district for which
30the annual expenditure is less than $25,000, which

1shall be known as Category 1, by 1.51.

2(B) Multiply the number of special education
3students that reside in the school district for which
4the annual expenditure is equal to or greater than
5$25,000 but less than $50,000, which shall be known
6as Category 2, by 3.77.

7(C) Multiply the number of special education
8students who reside in the school district for which
9the annual expenditure is equal to or greater than
10$50,000, which shall be known as Category 3, by 7.46.

11(D) Add the products in clauses (A), (B) and
12(C).

13The annual expenditure amount used to calculate funding
14shall be based on the information reported to the
15department under section 1372(8) of the Public School
16Code of 1949.

17(ii) The sparsity ratio shall be calculated for each
18school district as follows:

19(A) Divide the school district's average daily
20membership per square mile by the State's average
21daily membership per square mile.

22(B) Multiply the quotient of clause (A) by 0.5.

23(C) Subtract the product in clause (B) from 1.

24(iii) The size ratio for each school district shall
25be calculated as follows:

26(A) Divide the school district's average daily
27membership by the average of the average daily
28membership of all school districts.

29(B) Multiply the quotient of clause (A) by 0.5.

30(C) Subtract the product in clause (B) from 1.

1(iv) The sparsity/size ratio for each school
2district shall be calculated by adding 40% of the
3sparsity ratio and 60% of the size ratio.

4(v) The sparsity/size adjustment for each school
5district shall be calculated as follows:

6(A) For a school district with a sparsity/size
7ratio less than or equal to the sparsity/size ratio
8that represents the 70th percentile of the
9sparsity/size ratio of all school districts, the
10school district's sparsity/size adjustment shall be
110.

12(B) For a school district with a sparsity/size
13ratio greater than the sparsity/size ratio that
14represents the 70th percentile of the sparsity/size
15ratio of all school districts, the school district's
16sparsity/size adjustment shall be calculated as
17follows:

18(I) Divide the school district's
19sparsity/size ratio by the sparsity/size ratio
20that represents the 70th percentile of the
21sparsity/size ratio of all school districts.

22(II) Subtract 1 from the quotient in
23subclause (I).

24(III) Multiply the remainder in subclause
25(II) by 0.5.

26(IV) Multiply the product in subclause (III)
27by the school district's weighted special
28education student headcount.

29(vi) The equalized millage multiplier for each
30school district shall be calculated as follows:

1(A) For a school district with an equalized
2millage rate greater than or equal to the equalized
3millage rate that represents the 70th percentile of
4the equalized millage rate of all school districts,
5the school district's equalized millage multiplier
6shall be 1.

7(B) For a school district with an equalized
8millage rate less than the equalized millage rate
9that represents the 70th percentile of the equalized
10millage rate of all school districts, the school
11district's equalized millage multiplier shall be
12calculated as follows:

13(I) Divide the school district's equalized
14millage rate by the equalized millage rate that
15represents the 70th percentile of the equalized
16millage rate of all school districts.

17(II) (Reserved).

18(12) The data used to calculate the weighted special
19education student headcount in paragraph (11)(i) shall be
20based on information from the most recent year for which data
21is available as determined by the department. The data used
22to calculate the provisions in paragraph (11)(ii), (iii),
23(iv), (v) and (vi) shall be averaged for the three most
24recent years for which data is available as determined by the
25department.

26(13) From the appropriation for payments on account of
27special education of exceptional children, the amount of the
28appropriation allocated to intermediate units on account of
29special education services shall remain the same as allocated
30in fiscal year 2013-2014 under section 2509.1(c.1) of the

1Public School Code of 1949 and shall be distributed as
2follows:

3(i) Thirty-five percent of the amount shall be
4distributed to each intermediate unit equally among all
5intermediate units.

6(ii) The remaining 65% of the amount shall be
7distributed on a pro rata basis to each intermediate unit
8based on its component school districts' average daily
9membership.

10(14) (i) Notwithstanding any provisions contained in 
11section 2509.8 of the Public School Code of 1949, from 
12the appropriation for payments on account of special 
13education for exceptional children, 1% of the special 
14education appropriation shall be distributed to school 
15districts and charter schools for extraordinary expenses 
16incurred in providing a special education program or 
17service to one or more students with disabilities as 
18approved by the Secretary of Education. Such special 
19education program or service shall include, but not be 
20limited to, the transportation of students with 
21disabilities; services related to occupational therapy, 
22physical therapy, speech and language, hearing 
23impairments or visual impairments; or training in 
24orientation and mobility for children who are visually 
25impaired or blind.

26(ii) Funds distributed to a school district or
27charter school under this paragraph shall be allocated
28for students for which expenses are incurred on an annual
29basis that are equal to or greater than $75,000 as
30follows:

1(A) For a student for whom expenses are equal to
2or greater than $75,000 and less than or equal to
3$100,000, subtract the State subsidies paid on behalf
4of the student to the school district or, for a
5student enrolled in a charter school, the charter
6school payment received by the charter school where
7the child is enrolled from the expense incurred for
8the student and multiply the difference by the school
9district's or charter school's market value/personal
10income aid ratio.

11(B) For a student for which expenses are greater
12than $100,000, subtract the State subsidies paid on
13behalf of the student to the school district or, for
14a student enrolled in a charter school, the charter
15school payment received by the charter school where
16the child is enrolled from the expense incurred for
17the student.

18(iii) No school district or charter school shall in
19any school year receive an amount under subparagraph (i)
20which exceeds the total amount of funding available
21multiplied by the percentage equal to the greatest
22percentage of the State's special education students
23enrolled in a school district or charter school.

24(15) Funds from the set-aside under paragraph (14) shall
25be allocated to each approved private school with a day
26tuition rate determined to be less than $32,000 during the
272010-2011 school year. The allocation shall be determined as
28follows:

29(i) Subtract:

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

1school year day tuition rate; from

2(B) $38,072.

3(ii) Multiply:

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

5(B) the number of approved students enrolled in
6the approved private school during the 2010-2011
7school year.

8(16) (i) Funds appropriated for basic education funding
9to school districts shall be distributed to each school
10district in an amount equal to the amount paid for the
112012-2013 school year under section 2502.52 of the Public
12School Code of 1949.

13(ii) Any funds remaining in the appropriation for
14basic education funding to school districts after
15distribution under subparagraph (i) shall be deposited in
16the Financial Recovery School District Transitional Loan
17Account.

18(17) Notwithstanding any other provision of law, from
19the appropriation for payment of approved operating expenses
20for community colleges, each community college shall receive
21an amount equal to the amount paid during the 2013-2014
22fiscal year under section 1913-A(b)(1.6) of the Public School
23Code of 1949 and a prorata share of $3,500,000.

24(18) Notwithstanding any other provision of law, the
25following apply to libraries:

26(i) Funds appropriated for libraries for the 2014-
272015 fiscal year shall be distributed to each library
28under the following formula:

29(A) Divide the amount of funding the library
30received in fiscal year 2013-2014 under 24 Pa.C.S. §

19342(k) (relating to special rules for specific
2fiscal years), by the total State aid subsidy for
3fiscal year 2013-2014.

4(B) Multiply the quotient under clause (A) by
5the total State aid subsidy for fiscal year 2014-
62015.

7(ii) Following the distribution of funds
8appropriated for State aid to libraries under
9subparagraph (i), any remaining funds may be distributed
10to libraries at the discretion of the State Librarian.

11(iii) If funds appropriated for State aid to
12libraries in fiscal year 2014-2015 are less than funds
13appropriated in fiscal year 2002-2003, the State
14Librarian may waive standards as prescribed under 24
15Pa.C.S. § 9332 (relating to waiver of standards).

16(iv) (A) Each library receiving State aid under
17this paragraph may distribute the local library share
18of that aid in a manner as determined by the board of
19directors of the library system.

20(B) In the case of a library system that
21contains a library operating in a city of the second
22class, changes to the distribution of State aid to
23the library shall be made by mutual agreement between
24the library and the library system.

25(v) In the event of a change in district library
26center population prior to the effective date of this
27section as a result of a city, borough, town, township,
28school district or county moving from one library center
29to another or a transfer of district library status to a
30county library system, funding of district center aid

1shall be paid based on the population of the newly
2established or reconfigured district library center.

3(19) The department may utilize up to $4,500,000 of
4undistributed funds not expended, encumbered or committed
5from appropriations for grants and subsidies made to the
6department to assist school districts declared to be in
7financial recovery status under section 621-A of the Public
8School Code of 1949 or identified for financial watch status
9under section 611-A of the Public School Code of 1949. The
10funds shall be transferred by the Secretary of the Budget to
11a restricted account as necessary to make payments under this
12paragraph and, when transferred, are hereby appropriated to
13carry out the provisions of this paragraph.

14(20) Notwithstanding any provision of law, in order to
15supplement funds appropriated to the department for general
16government operations and to defray the costs of
17administration and oversight activities associated with
18alternative education programs:

19(i) A school district, combination of school
20districts or charter school that makes an application to
21establish an alternative education program under Article
22XIX-C of the Public School Code of 1949 shall submit
23initial and renewal applications along with a fee of $400
24as prescribed by the department.

25(ii) A private alternative education institution
26that makes an application for approval to operate under
27Article XIX-E of the Public School Code of 1949 shall
28submit initial and renewal applications along with a fee
29of $1,000 as prescribed by the department.

30(iii) The funds collected in paragraphs (i) and (ii)

1shall be deposited into a restricted account in the
2General Fund to be known as the Alternative Education
3Program Account and are hereby appropriated to the
4department.

5(21) From the appropriation for the Ready to Learn Block
6Grant, funds shall be distributed to school entities as
7follows:

8(i) Each school entity shall receive an amount equal
9to the amount paid during the 2013-2014 school year under
10section 2599.2 of the Public School Code of 1949.

11(ii) A Ready to Learn Block Grant subsidy as
12follows:

13(A) A base amount equal to $231.

14(B) A per-student factor equal to the base
15amount multiplied by the product of a school entity's
16average daily membership and its market value/income
17aid ratio.

18(C) An English language learner factor equal to:

19(I) The base amount multiplied by 0.15.

20(II) The product under subclause (I)
21multiplied by the product of students in the
22school entity identified as limited English
23proficient and its market value/income aid ratio.

24(D) A poverty factor equal to:

25(I) The base amount multiplied by 0.25.

26(II) The product under subclause (I)
27multiplied by the product of students in the
28school entity identified as economically
29disadvantaged and its market value/income aid
30ratio.

1(E) The amounts under subclauses (B), (C) and
2(D) shall be added.

3(F) If insufficient or additional funds are
4available to make Commonwealth payments under this
5subparagraph, after distribution of funding under
6subparagraph (i), the payments shall be made on a pro
7rata basis.

8(G) To determine the calculation contained in
9this subparagraph, the department shall use the most
10recent data available.

11(iii) Funding received by a school entity under
12subparagraph (i) shall be used in accordance with section
132599.2 of the Public School Code of 1949, or as allowed
14under subparagraph (v).

15(iv) To be eligible to receive funding under
16subparagraph (ii), each school entity shall submit a plan
17for approval to the department outlining how the funding
18will be used to maintain and improve academic
19performance.

20(v) Funds distributed under subparagraph (ii) shall
21be used for the following purposes:

22(A) Prekindergarten through grade 3 curriculum
23alignment with the current academic standards.

24(B) Teacher training and professional
25development opportunities aligned with the current
26academic standards designed to improve early literacy
27and STEM education in prekindergarten through grade 3
28classes.

29(C) Prekindergarten through grade 3 extended
30learning opportunities that allow for additional

1classroom instruction before, during and after
2school.

3(D) Establishing, maintaining or expanding a
4quality prekindergarten program aligned with the
5current academic standards.

6(E) Establishing, maintaining or expanding a
7quality full-day kindergarten program aligned with
8current academic standards.

9(F) Supplemental instruction and instructional
10coaches for the current Keystone Exams.

11(G) Implementation of the Pennsylvania
12Comprehensive Literacy Plan.

13(H) Efforts that improve student outcomes in
14STEM education, including STEM training and
15professional development for educators.

16(I) Establishing, maintaining or expanding
17hybrid learning models.

18(J) Researching, establishing, maintaining or
19expanding competency-based learning models.

20(K) Uses allowed under section 2599.2 of the
21Public School Code of 1949.

22(L) Other uses as approved by the department.

23(vi) For the purpose of this paragraph, a school
24entity shall be a school district, charter school or
25cyber charter school.

26(22) Notwithstanding any provision of law to the
27contrary, the revenues received by a school district under
28paragraph (21)(ii) shall not be included in the school
29district's budgeted total expenditure per average daily
30membership used to calculate the amount to be paid to a

1charter school under section 1725-A(a)(2) and (3) of the
2Public School Code of 1949.

3(23) From funds appropriated for vocational education
4equipment, grants shall be distributed to each area
5vocational-technical school and school district with an
6approved vocational program that applies to and is approved
7by the department for funding for the purchase of equipment
8that meets industry standards as follows:

9(i) A base amount of $3,000.

10(ii) A per-student amount calculated as follows:

11(A) Multiply the 2013-2014 average daily
12membership in approved vocational education programs
13for each area vocational-technical school or school
14district that has been approved for funding by the
15department by the difference between $3,000,000 and
16the sum of the funding distributed under subparagraph
17(i).

18(B) Divide the product from clause (A) by the
19sum of the 2013-2014 average daily membership in
20approved vocational education programs for all
21vocational-technical schools and school districts
22that have been approved for funding by the
23department.

24(24) The following apply:

25(i) For the purposes of paragraph (23), the
26application to apply for funding shall be developed by
27the department within 30 days of the effective date of
28this section and only require the following, which may be
29collected electronically:

30(A) Name, address, e-mail address and telephone

1number of the area vocational-technical school or
2school district.

3(B) Name, e-mail address and telephone number of
4an employee of the area vocational-technical school
5or school district who will be available to answer
6questions regarding the funding application.

7(C) Description of the equipment for which the
8requested funding will be used, the career and
9technical education program in which the equipment
10will be used, the date on which the occupational
11advisory committee recommended the purchase of the
12equipment and verification that the equipment will be
13used for technical classroom instruction. For
14purposes of this subclause, "occupational advisory
15committee" shall mean an occupational advisory
16committee established pursuant to 22 Pa. Code Ch. 339
17(relating to vocational education).

18(ii) The department may not request and consider any
19information other than the information provided in the
20funding application.

21(iii) Each area vocational-technical school or
22school district with an approved vocational program that
23submits a completed funding application shall receive
24funding in the amount determined under paragraph (23).

<-25(25) From the appropriation for basic education formula
26enhancements, funds shall be allocated as follows:

27(i) The amount of $1,450,000 shall be paid to a
28school district that has a 2012-2013 market value/income
29aid ratio greater than 0.7500 and a 2012-2013 adjusted
30average daily membership greater than 18,250.

1(ii) The provisions calculated under subparagraph
2(i) shall be based on data available from the Department
3of Education on June 26, 2014.

4Section 1723-J. Department of Environmental Protection.

5The following shall apply to appropriations for the
6Department of Environmental Protection in the General
7Appropriation Act:

8(1) Notwithstanding section 502 of the act of July 9,
92008 (1st Sp. Sess., P.L.1873, No.1), known as the
10Alternative Energy Investment Act, in fiscal year 2014-2015,
11no funds shall be appropriated from the General Fund to the
12department for the Consumer Energy Program. Any appropriation
13for fiscal year 2014-2015 is revoked.

14(2) From funds appropriated for sewage facilities
15planning grants, up to $35,600 shall be distributed for
16reimbursement of costs incurred by a borough in a county of
17the third class. Up to $54,600 shall be distributed for
18reimbursement of costs incurred by a township of the first
19class in a county of the second class A. Five hundred
20thousand dollars shall be distributed for upgrades at an
21existing wastewater pumping station operated by a joint sewer
22authority serving a third class city in a county of the fifth
23class.

24(3) Not later than 60 days after the effective date of
25this section, the department shall pay or transfer $8,672,845
26of the unexpended Alternative Energy Series 2010B proceeds
27allocated to the department under section 304(a) of the act
28of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known as the
29Alternative Energy Investment Act, to the Commonwealth
30Financing Authority for the payment of interest due during

1fiscal year 2014-2015 on the authority's alternative energy
2tax-exempt bond issues.

3(4) From funds appropriated for environmental program 
4management, $150,000 shall be used for independent research 
5of natural gas drilling.

<-6(5) The provisions of 25 Pa. Code § 94.11(a) (relating
7to sewer extensions) shall not apply in a municipality that
8is a signatory to the Administrative Consent Order dated
9January 28, 2004, if the municipality is in compliance with
10the provisions of the Administrative Consent Order.

<-11(5) The provisions of 25 Pa. Code §§ 94.11 (relating to
12sewer extensions), 94.21 (relating to existing overload),
1394.22(2) (relating to projected overload), 94.31 (relating to
14organic or hydraulic overload) and 94.32 (relating to
15public health hazard or pollution) shall not apply in a
16municipality that is party to a 2004 Administrative Consent
17Order with a health department located in a county of the
18second class. The department shall grant to municipalities
19that signed the order exceptions under 25 Pa. Code § 94.51
20(relating to request for exception) or otherwise remove other
21bans issued during calendar year 2014 under 25 Pa. Code Ch.
2294 (relating to municipal wasteload management).

23Section 1724-J. Department of General Services.

24From funds appropriated for rental, relocation and municipal
25charges, $2,500,000 shall be transferred to the Senate for
26distribution upon approval of the President pro tempore of the
27Senate and the Majority Leader of the Senate and $2,500,000
28shall be transferred to the House of Representatives for
29distribution upon approval of the Speaker of the House of
30Representatives and the Majority Leader of the House of

1Representatives.

2Section 1725-J. Department of Health.

3(1) From funds appropriated for general government
4operations, $50,000 is included for outreach to identify
5children in need of professional eye examination and eye
6care; sufficient funds are included for the coordination of
7donated dental services; and $50,000 is included for outreach
8Charcot-Marie-Tooth syndrome.

9(2) From funds appropriated for newborn screening,
10$150,000 shall be allocated to establish a new referral
11center for abnormal metabolic screenings at a children's
12hospital in a county of the eighth class.

13(3) From funds appropriated for adult cystic fibrosis
14and other chronic respiratory illnesses, at least $200,000
15shall be used for a program promoting cystic fibrosis
16research in a county of the second class; and $100,000 shall
17be used for research related to childhood cystic fibrosis in
18a city of the first class with a hospital that is nationally
19accredited as a cystic fibrosis treatment center and
20specializes in the treatment of children.

21(4) Funds appropriated for lupus programs shall be
22distributed in the same proportion as distributed in fiscal
23year 2013-2014.

24(5) Funds appropriated for biotechnology research
25include allocations for regenerative medicine research, for
26regenerative medicine medical technology, for hepatitis and
27viral research, for drug research and clinical trials related
28to cancer, for genetic and molecular research for disease
29identification and eradication, for a study related to
30nanotechnology and for the commercialization of applied

1research.

2Section 1726-J. Insurance Department (Reserved).

3Section 1727-J. Department of Labor and Industry.

4The following shall apply to appropriations for the
5Department of Labor and Industry from the General Appropriation
6Act:

7(1) From funds appropriated to the department for
8general government operations, $250,000 shall be used for the
9purchase of transportation assistance for job retention, job
10training and job search activities for displaced, unemployed
11and disabled individuals and families in counties of the
12second class.

13(2) The appropriation for payment to the Vocational
14Rehabilitation Fund for work of the State Board of Vocational
15Rehabilitation includes $2,153,000 for a Statewide
16professional service provider association for the blind to
17provide specialized services and prevention of blindness
18services and $431,000 to provide specialized services and
19prevention of blindness services in cities of the first
20class.

21(3) From funds appropriated for Industry Partnerships,
22$200,000 shall be allocated for a work force development
23program that links veterans with employment in a home rule
24county that was formerly a county of the second class A.

25(4) From funds appropriated for workforce development
26services for displaced homemakers, single parents, low-income
27heads of households and women in transition, a grantee or
28subgrantee shall provide to the Department of Labor and
29Industry all of the following information:

30(i) A statistical report of the number of

1participants served.

2(ii) A financial statement.

3(iii) A projected budget.

4Section 1728-J. Department of Military and Veterans Affairs.

5From funds appropriated for veterans outreach, at least
6$750,000 shall be used for programs providing treatment for
7post-traumatic stress disorder for veterans.

8Section 1729-J. Department of Public Welfare.

9The following shall apply to appropriations for the
10Department of Public Welfare from the General Appropriation Act:

11(1) Authorized transfers for child-care services. The
12following shall apply:

13(i) The department, upon approval of the secretary,
14may transfer Federal funds appropriated for TANFBG Child
15Care Assistance to the CCDFBG Child Care Services
16appropriation to provide child-care services to
17additional low-income families if the transfer of funds
18will not result in a deficit in the appropriation. The
19secretary shall provide notice ten days prior to a
20transfer under this subparagraph to the chairman and
21minority chairman of the Appropriations Committee of the
22Senate and the chairman and minority chairman of the
23Appropriations Committee of the House of Representatives.

24(ii) The department, upon approval of the secretary,
25may transfer Federal funds appropriated for CCDFBG Child
26Care Assistance to the CCDFBG Child Care Services
27appropriation to provide child-care services to
28additional low-income families, provided that the
29transfer of funds will not result in a deficit in the
30appropriation. The secretary shall provide notice ten

1days prior to a transfer under this subparagraph to the
2chairman and minority chairman of the Appropriations
3Committee of the Senate and the chairman and minority
4chairman of the Appropriations Committee of the House of
5Representatives.

6(2) Federal and State medical assistance payments. The
7following shall apply:

8(i) For fiscal year 2014-2015, payments to hospitals
9for Community Access Fund grants shall be distributed
10under the formulas utilized for these grants in fiscal
11year 2013-2014. If the total funding available under this
12subparagraph is less than that available in fiscal year
132013-2014, payments shall be made on a pro rata basis.

14(ii) Funds appropriated for medical assistance
15transportation shall only be utilized as a payment of
16last resort for transportation for eligible medical
17assistance recipients.

18(iii) Amounts allocated from funds appropriated for
19medical assistance outpatient services for the Select
20Plan for Women Preventative Health Services shall be used
21for women's medical services, including noninvasive
22contraception supplies.

23(iv) Federal or State funds appropriated under the
24General Appropriation Act in accordance with Article
25VIII-H of the act of June 13, 1967 (P.L.31, No.21), known
26as the Public Welfare Code, not used to make payments to
27hospitals qualifying as level III trauma centers or
28seeking accreditation as level III trauma centers shall
29be used to make payments to hospitals qualifying as
30levels I and II trauma centers.

1(v) Qualifying university-affiliated physician
2practice plans which received funds for fiscal year 2013-
32014 shall not receive any less than the State
4appropriation made available to those university-
5affiliated physician practice plans during fiscal year
62013-2014. From funds appropriated for physician practice
7plans:

8(A) $1,500,000 shall be distributed to a
9physician practice plan serving a health system
10located in a city of the first class and a contiguous
11county of the second class A which did receive
12funding during fiscal year 2013-2014;

13(B) at least $500,000 shall be distributed to a
14physician practice plan serving a hospital located in
15a county of the second class A which did receive
16funding in fiscal year 2013-2014; and

17(C) at least $500,000 shall be distributed to a
18physician practice plan serving a health system
19located in a city of the first class and two
20contiguous counties of the second class A, that has
21an independent academic center which did receive
22funding during fiscal year 2013-2014.

23(vi) Qualifying academic medical centers which
24received funds for fiscal year 2013-2014 shall not
25receive any less than the State appropriation made
26available to those academic medical centers during fiscal
27year 2013-2014. From funds appropriated for qualifying
28academic medical centers, a qualifying academic medical
29center located in a third class county with a population
30between 279,000 and 282,000 under the 2010 Federal

1decennial census shall receive an additional $300,000 and
2an academic medical center located in a city of the first
3class that did not receive funding during fiscal year
42010-2011 shall receive an additional $300,000.

5(vii) Notwithstanding any other law, funds
6appropriated for medical assistance payments for
7inpatient care, exclusive of inpatient services provided
8through capitation plans, shall include sufficient funds
9for two separate All Patient Refined Diagnostic Related
10Group payments for inpatient acute care general hospital
11stays for:

12(A) normal newborn care; and

13(B) mothers' obstetrical delivery.

14(viii) From funds appropriated for medical
15assistance payments for inpatient care, $150,000 shall be
16used for treatment of cleft palates and other
17craniofacial anomalies.

18(ix) From funds appropriated for medical assistance
19inpatient care, $1,000,000 shall be distributed to an
20acute care hospital in a city of the third class in a
21county of the sixth class, $300,000 shall be distributed
22for improvements to an intensive care facility in an
23acute care hospital located in a city of the first class
24and $3,000,000 shall be distributed for a hospital in a
25city of the third class in a home rule county of the
26second class-A.

27(x) From funds appropriated for medical assistance
28capitation, $150,000 shall be used for prevention and
29treatment of depression and its complications in older
30Pennsylvanians in a county of the second class.

1(xi) From funds appropriated for medical assistance
2long-term care, $2,000,000 shall be distributed to county
3nursing homes, located in a home rule county that was
4formerly a county of the second class A, which have a
5medical assistance occupancy rate of at least 85%.

6(xii) Subject to Federal approval of necessary
7amendments of the Title XIX State Plan; from funds
8appropriated for medical assistance long-term care,
9$8,000,000 is allocated for quarterly medical assistance
10day-one incentive payments to qualified nonpublic nursing
11facilities under methodology and criteria under section
12443.1(7)(v) of the Public Welfare Code.

13(xiii) Money appropriated for critical access
14hospitals shall be distributed for reimbursement in
15accordance with a formula established by the department.

16The department may consider the feasibility of<-
17reimbursing a "critical access hospital," as defined in
18section 1861(mm)(1) of the Social Security Act (49 Stat.
19620, 42 U.S.C. § 1395x(mm)(1)), which is qualified to
20participate under Title XIX of the Social Security Act
21(42 U.S.C. § 1396 et seq.) at 101% of medical assistance
22allowable costs for:

23(A) "Inpatient critical access hospital 
24services," as defined in section 1861(mm)(2) of the 
25Social Security Act (42 U.S.C. 1395x(mm)(2)), 
26provided to a medical assistance recipient.

27(B) "Outpatient critical access hospital 
28services," as defined in section 1861(mm)(3) of the 
29Social Security Act (42 U.S.C. § 1395x(mm)(3)), 
30provided to a medical assistance recipient.

1(C) The payments to the critical access
2hospitals shall be the sum of the difference between
3101% of medical assistance allowable cost and medical
4assistance payments received toward those costs as
5calculated for each critical access hospital, in the
6most recent year for which complete data are
7available.

8(3) Breast cancer screening. The following shall apply:

9(i) Funds appropriated for breast cancer screening
10may be used for women's medical services, including
11noninvasive contraception supplies.

12(ii) (Reserved).

13(4) Women's service programs. The following shall apply:

14(i) Funds appropriated for women's service programs
15grants to nonprofit agencies whose primary function is to
16promote childbirth and provide alternatives to abortion
17shall be expended to provide services to women until
18childbirth and for up to 12 months thereafter, including
19food, shelter, clothing, health care, counseling,
20adoption services, parenting classes, assistance for
21postdelivery stress and other supportive programs and
22services and for related outreach programs. Agencies may
23subcontract with other nonprofit entities which operate
24projects designed specifically to provide all or a
25portion of these services. Projects receiving funds
26referred to in this subparagraph shall not promote, refer
27for or perform abortions or engage in any counseling
28which is inconsistent with the appropriation referred to
29in this subparagraph and shall be physically and
30financially separate from any component of any legal

1entity engaging in such activities.

2(ii) Federal funds appropriated for TANFBG
3Alternatives to Abortion shall be utilized solely for
4services to women whose gross family income is below 185%
5of the Federal poverty guidelines.

6(5) The provisions of 8 U.S.C. §§ 1611 (relating to
7aliens who are not qualified aliens ineligible for Federal
8public benefits), 1612 (relating to limited eligibility of
9qualified aliens for certain Federal programs) and 1642
10(relating to verification of eligibility for Federal public
11benefits) shall apply to payments and providers.

12(6) From funds appropriated for autism intervention and
13services, $450,000 shall be distributed to a behavioral
14health facility located in a fifth class county with a
15population between 130,000 and 135,000 under the 2010 Federal
16decennial census that operates a center for autism and
17developmental disabilities, $240,000 shall be distributed to
18an institution of higher education which provides autism
19education and diagnostic curriculum located in a city of the
20first class that operates a center for autism in a county of
21the second class A, $240,000 shall be distributed to an
22institution of higher education which provides autism
23education and diagnostic curriculum and is located in a
24county of the second class and $200,000 shall be allocated to
25programs to promote the health and fitness of persons with
26developmental disabilities located in a city of the first
27class.

28(6.1) Community-based family centers. Funds appropriated
29for community-based family centers may not be considered as
30part of the base for calculation of the county child welfare

1needs-based budget for a fiscal year.

2(7) Child welfare services. For fiscal year 2014-2015, a
3provider of 24-hour, out-of-home, community-based or
4institutional care and supervision of a child, with the care
5and supervision being paid for or provided by a county using
6Federal or State funds disbursed under Article VII of the
7Public Welfare Code, shall submit documentation to the
8department of its costs of providing out-of-home placement
9services. The department shall use such documentation, to the
10extent necessary to support the department's claim for
11Federal funding and for State reimbursement for allowable
12direct and indirect costs incurred in the provision of out-
13of-home placement services.

14(8) From funds appropriated for mental health services
15or from Federal funds, at least $310,000 shall be used for
16the continued operation and maintenance of the existing
17network of web portals that provides comprehensive referral
18services, support and information for early intervention,
19prevention and support for those with mental illness or
20substance abuse, their families, county mental health
21offices, providers and others involved in mental health
22treatment.

23(9) A hospital in a county of the fourth class with a
24population between 168,000 and 170,500 under the 2010 Federal
25decennial census shall, for purposes of Medicare
26reimbursement, be designated by the Commonwealth as a rural
27hospital under section 1886(d)(8)(E)(ii)(II) of the Social
28Security Act (42 U.S.C. § 1395 ww(d)(8)(E)(ii)(II)).

29(10) To supplement the funds appropriated to the
30department for medical assistance for workers with

1disabilities, in addition to the monthly premium established
2under section 1503(b)(1) of the act of June 26, 2001 
3(P.L.755, No.77), known as the Tobacco Settlement Act, the 
4department may adjust the percentage of the premium upon 
5approval of the Centers for Medicaid Services as authorized 
6under federal requirements. Failure to make payments in 
7accordance with this paragraph or section 1503(b)(1) of the 
8Tobacco Settlement Act shall result in the termination of 
9medical assistance coverage.

10Section 1730-J. Department of Revenue.

11The following shall apply to appropriations for the
12Department of Revenue in the General Appropriation Act:

13(1) The Enhanced Revenue Collection Account created
14under section 1730-L for fiscal years 2010-2011 and 2011-2012
15shall continue through fiscal year 2019-2020. Revenues
16collected and the amount of refunds avoided as a result of
17expanded tax return reviews and tax collection activities
18shall be deposited into the account. The following shall
19apply:

20(i) Of the funds in the account, for each of the
21fiscal years 2014-2015 through 2019-2020, up to
22$25,000,000 is appropriated to the department to fund the
23costs associated with increased tax collection
24enforcement and reduction in tax refund errors. The
25balance of the funds in the account on June 15, 2014, and
26each June 15 thereafter, shall be transferred to the
27General Fund or another authorized fund.

28(ii) The department shall issue a report to the
29Governor, the chairman and the minority chairman of the
30Appropriations Committee of the Senate and the chairman

1and minority chairman of the Appropriations Committee of
2the House of Representatives by June 1, 2015, and by each
3June 1 thereafter, with the following information:

4(A) A detailed breakdown of the department's
5administrative costs in implementing the activities
6described under this section.

7(B) The amount of revenue collected and the
8amount of refunds avoided as a result of the
9activities described under this paragraph, including
10details of the type of tax generating the revenue and
11avoided refunds.

12(2) (Reserved).

13Section 1731-J. Department of State (Reserved).

14Section 1732-J. Department of Transportation.

15The following shall apply to appropriations for the
16Department of Transportation in the General Appropriation Act:

17(1) From funds available to the Department of
18Transportation under 74 Pa.C.S. § 2104(a)(2) (relating to use
19of money in fund), the match under 74 Pa.C.S. § 2106
20(relating to local match) may be waived by the Secretary of
21Transportation for good cause shown. This paragraph shall
22expire in six months.

23(2) (Reserved).

24Section 1733-J. Pennsylvania State Police.

25Payments made to municipalities under 53 Pa.C.S. § 2170
26(relating to reimbursement of expenses) shall be limited to
27money available. If money is not available to make full
28payments, the Municipal Police Officers' Education and Training
29Commission shall make payments on a pro rata basis.

30Section 1734-J. (Reserved).

1Section 1735-J. Pennsylvania Emergency Management Agency.

2The following shall apply to appropriations for the
3Pennsylvania Emergency Management Agency in the General
4Appropriation Act:

5(1) From funds appropriated for general government
6operations, $100,000 shall be distributed to a nonprofit
7entity located in a county of the second class and in a
8borough with a population based on the most recent Federal
9decennial census of at least 4,000 but not more than 5,000
10that provides emergency disaster services in a multicounty
11region.

12(2) From funds appropriated for local municipal
13emergency relief, $1,000,000 shall be appropriated to a
14multicounty provider of emergency services that serves a
15portion of a county of the second class A and portion of a
16county of the third class.

17(3) From funds appropriated for local municipal
18emergency relief, $2,000,000 shall be used to create a State
19program to provide assistance to individuals and political
20subdivisions directly affected by natural and man-made
21disasters. State assistance will be limited to grants for
22projects that do not qualify for Federal assistance to help
23repair damages to primary residences, personal property and
24public facilities. Grants will be made available in a
25disaster emergency area only when a Presidential disaster
26declaration is not covering the area.

27(4) Funds appropriated for search and rescue programs
28shall be used to support programs related to training working
29service dogs focusing on rescue and public safety at a center
30located in a city of the first class.

1Section 1736-J. Pennsylvania Fish and Boat Commission
2(Reserved).

3Section 1737-J. State System of Higher Education (Reserved).

4Section 1737.1-J. State-related institutions (Reserved).

5Section 1738-J. Pennsylvania Higher Education Assistance
6Agency.

7(a) General rule.--The following shall apply to
8appropriations for the Pennsylvania Higher Education Assistance
9Agency in the General Appropriations Act:

10(1) From funds appropriated for the Ready to Succeed
11Scholarship Program, the Pennsylvania Higher Education
12Assistance Agency shall develop a program in consultation
13with the Department of Education to provide scholarships to
14eligible resident students to defray the cost of attending a
15State grant-approved institution of higher education that is
16domiciled and headquartered with its principal location in
17this Commonwealth.

18(2) The eligibility criteria developed for the receipt
19of a scholarship under paragraph (1) shall at a minimum
20require the following:

21(i) Total annual household income not to exceed
22$110,000.

23(ii) At least half-time enrollment in an approved
24course of study.

25(iii) Demonstration of outstanding academic
26achievement.

27(iv) Compliance with all aspects of the State grant
28program, except financial need.

29(3) A student may be eligible to receive a scholarship
30under paragraph (1) provided the scholarship award in

1combination with a State grant award for the same academic
2year does not exceed the annually established maximum amount
3for the Ready to Succeed Scholarship Program as established
4by the agency.

5(4) The agency shall make all scholarship awards under
6paragraph (1) in its sole discretion.

7(b) Definitions.--As used in this section, "State grant"
8shall mean a grant or scholarship awarded under the act of
9January 25, 1966 (1965 P.L.1546, No.541), referred to as the
10Higher Education Scholarship Law.

11Section 1739-J. Pennsylvania Historical and Museum Commission.

12The Department of Conservation and Natural Resources shall
13commence its operation of the Washington Crossing Historic Park
14within 60 days of the effective date of this section. The
15Pennsylvania Historical and Museum Commission shall continue to
16operate the visitor's center and oversee operations through
17December 31, 2014, including conducting the annual Christmas Day
18Crossing. Nothing in this section shall prohibit the Department
19of Conservation and Natural Resources from entering into an
20agreement for the visitor's center and adjacent historical
21buildings with the Pennsylvania Historical and Museum
22Commission, if deemed approved by the Department of Conservation
23and Natural Resources, whereby the Pennsylvania Historical and
24Museum Commission shall interpret the site. Management of the
25visitor's center and adjoining buildings shall be the
26responsibility of the Department of Conservation and Natural
27Resources. The Pennsylvania Historical and Museum Commission
28shall continue to consult with the Department of Conservation
29and Natural Resources regarding historic interpretation and
30preservation as mandated by 37 Pa.C.S. (relating to historical
 

1and museums).

2Section 1740-J. Pennsylvania Infrastructure Investment
3Authority (Reserved).

4Section 1741-J. Environmental Hearing Board (Reserved).

5Section 1742-J. Pennsylvania Board of Probation and Parole
6(Reserved).

7Section 1743-J. Pennsylvania Gaming Control Board.

8(1) Notwithstanding 4 Pa.C.S. Pt. II (relating to
9gaming) or any other provision of law to the contrary, any
10payment of a slot machine license fee under 4 Pa.C.S. § 1209
11(relating to slot machine license fee) received by the
12Pennsylvania Gaming Control Board after June 30, 2014, shall
13be deposited in and credited to the General Fund.

14(2) <-Within 90 days after the effective date of this
15paragraph, the Pennsylvania Gaming Control Board shall
16transfer the sum of $8,000,000 from amounts previously
17appropriated to the board pursuant to 4 Pa.C.S. § 1408(c)
18(relating to transfers from State Gaming Fund) to the General
19Fund. <-(Reserved).

20Section 1744-J. (Reserved).

21Section 1745-J. (Reserved).

22Section 1746-J. (Reserved).

23Section 1747-J. (Reserved).

24Section 1748-J. Commonwealth Financing Authority (Reserved).

25Section 1749-J. Thaddeus Stevens College of Technology
26(Reserved).

27Section 1750-J. Pennsylvania Housing Finance Agency (Reserved).

28Section 1751-J. LIHEABG (Reserved).

29SUBARTICLE C

30STATE GOVERNMENT SUPPORT AGENCIES

1Section 1761-J. Health Care Cost Containment Council
2(Reserved).

3Section 1762-J. State Ethics Commission (Reserved).

4Section 1763-J. Legislative Reference Bureau (Reserved).

5Section 1764-J. Legislative Budget and Finance Committee
6(Reserved).

7Section 1765-J. Legislative Data Processing Committee
8(Reserved).

9Section 1766-J. Joint State Government Commission (Reserved).

10Section 1767-J. Joint Legislative Air and Water Pollution
11Control and Conservation Committee (Reserved).

12Section 1768-J. Legislative Audit Advisory Commission
13(Reserved).

14Section 1769-J. Independent Regulatory Review Commission
15(Reserved).

16Section 1770-J. Capitol Preservation Committee (Reserved).

17Section 1771-J. Pennsylvania Commission on Sentencing
18(Reserved).

19Section 1772-J. Center for Rural Pennsylvania (Reserved).

20Section 1773-J. Commonwealth Mail Processing Center (Reserved).

21Section 1774-J. Transfers (Reserved).

22SUBARTICLE D

23JUDICIAL DEPARTMENT

24Section 1781-J. Supreme Court (Reserved).

25Section 1782-J. Superior Court (Reserved).

26Section 1783-J. Commonwealth Court (Reserved).

27Section 1784-J. Courts of common pleas (Reserved).

28Section 1785-J. Community courts; magisterial district judges
29(Reserved).

30Section 1786-J. Philadelphia Traffic Court (Reserved).

1Section 1787-J. Philadelphia Municipal Court (Reserved).

2Section 1788-J. Judicial Conduct Board (Reserved).

3Section 1789-J. Court of Judicial Discipline (Reserved).

4Section 1790-J. Juror cost reimbursement (Reserved).

5Section 1791-J. County court reimbursement (Reserved).

6Section 1792-J. Senior judges (Reserved).

7Section 1793-J. Transfer of funds by Supreme Court (Reserved).

8SUBARTICLE E

9GENERAL ASSEMBLY

10(Reserved)

11ARTICLE XVII-K

122014-2015 RESTRICTIONS ON APPROPRIATIONS

13FOR FUNDS AND ACCOUNTS

14Section 1701-K. Applicability.

15Except as specifically provided in this article, this article
16applies to the act of , 2014 (P.L. No. A), known as the
17General Appropriation Act of 2014, and all other appropriation
18acts of 2014.

19Section 1702-K. State Lottery Fund.

20(1) Funds appropriated for PENNCARE shall not be
21utilized for administrative costs by the Department of Aging.

22(2) (Reserved).

23Section 1703-K. Energy Conservation and Assistance Fund
24(Reserved).

25Section 1704-K. Judicial Computer System Augmentation Account
26(Reserved).

27Section 1704.1-K. Access to Justice Account (Reserved).

28Section 1705-K. Emergency Medical Services Operating Fund
29(Reserved).

30Section 1706-K. The State Stores Fund (Reserved).

1Section 1707-K. Motor License Fund (Reserved).

2Section 1708-K. Hazardous Material Response Fund (Reserved).

3Section 1709-K. Milk Marketing Fund (Reserved).

4Section 1710-K. HOME Investment Trust Fund (Reserved).

5Section 1711-K. Tuition Payment Fund (Reserved).

6Section 1712-K. Banking Department Fund (Reserved).

7Section 1713-K. Firearm Records Check Fund (Reserved).

8Section 1714-K. Ben Franklin Technology Development Authority
9Fund (Reserved).

10Section 1715-K. Tobacco Settlement Fund (Reserved).

11Section 1716-K. (Reserved).

12Section 1717-K. Restricted receipt accounts.

13(a) General provisions.--The secretary may create restricted
14receipt accounts for the purpose of administering Federal grants
15only for the purposes designated in this section.

16(b) Department of Community and Economic Development.--The
17following restricted receipt accounts may be established for the
18Department of Community and Economic Development:

19(1) ARC Housing Revolving Loan Program.

20(2) (Reserved).

21(c) Department of Conservation and Natural Resources.--The
22following restricted receipt accounts may be established for the
23Department of Conservation and Natural Resources:

24(1) Federal Aid to Volunteer Fire Companies.

25(2) Federal Land and Water Conservation Fund Act.

26(3) National Forest Reserve Allotment.

27(4) Federal Land and Water Conservation Fund Act -
28Conservation and Natural Resources.

29(d) Department of Education.--The following restricted
30receipt accounts may be established for the Department of

1Education:

2(1) Education of the Disabled - Part C.

3(2) LSTA - Library Grants.

4(3) The Pennsylvania State University Federal Aid.

5(4) Emergency Immigration Education Assistance.

6(5) Education of the Disabled - Part D.

7(6) Homeless Adult Assistance Program.

8(7) Severely Handicapped.

9(8) Medical Assistance Reimbursements to Local Education
10Agencies.

11(e) Department of Environmental Protection.--The following
12restricted receipt accounts may be established for the
13Department of Environmental Protection:

14(1) Federal Water Resources Planning Act.

15(2) Flood Control Payments.

16(3) Soil and Water Conservation Act - Inventory of
17Programs.

18(f) Department of Drug and Alcohol Programs.--The following
19restricted receipt accounts may be established for the
20Department of Drug and Alcohol Programs:

21(1) Share Loan Program.

22(2) (Reserved).

23(g) Department of Transportation.--The following restricted
24receipt accounts may be established for the Department of
25Transportation:

26(1) Capital Assistance Elderly and Handicapped Programs.

27(2) Railroad Rehabilitation and Improvement Assistance.

28(3) Ridesharing/Van Pool Program - Acquisition.

29(h) Pennsylvania Emergency Management Agency.--The following
30restricted receipt accounts may be established for the

1Pennsylvania Emergency Management Agency:

2(1) Receipts from Federal Government - Disaster Relief -
3Disaster Relief Assistance to State and Political
4Subdivisions.

5(2) (Reserved).

6(i) Pennsylvania Historical and Museum Commission.--The
7following restricted receipt accounts may be established for the
8Pennsylvania Historical and Museum Commission:

9(1) Federal Grant - National Historic Preservation Act.

10(2) (Reserved).

11(j) Executive Offices.--The following restricted receipt
12accounts may be established for the Executive Offices:

13(1) Retired Employees Medicare Part D.

14(2) Justice Assistance.

15(3) Juvenile Accountability Incentive.

16(4) Early Retiree Reinsurance Program.

17Section 1718.1-K. Gaming Economic Development and Tourism Fund.

18Notwithstanding the provisions of 4 Pa.C.S. Pt. II (relating
19to gaming) and the act of July 9, 2008 (P.L.908, No.63), known
20as the H2O PA Act, $5,676,000 is hereby appropriated from the
21Gaming Economic Development and Tourism Fund to the Department
22of General Services to meet additional payment obligations for
23the project itemized in section 3(2)(i)(D) of the act of July
2425, 2007 (P.L.342, No.53), known as the Pennsylvania Gaming
25Economic Development and Tourism Fund Capital Budget Itemization
26Act of 2007.

27Section 1719-K. Veterans' Trust Fund (Reserved).

28Section 1720-K. State Farm Products Show Fund (Reserved).

29Section 1721-K. Pennsylvania Race Horse Development Fund
30(Reserved).

1Section 16. Repeals are as follows:

2(1) The General Assembly declares that the repeals under
3paragraph (2) are necessary to effectuate the addition of
<-4Subarticle D of Article XVII-A.1 sections 1714-A.1 and 1715-
5A.1 of the act.

6(2) Sections 304 and 305 of the act of June 26, 2001
7(P.L.755, No.77), known as the Tobacco Settlement Act, are
8repealed.

9(3) The General Assembly finds that the repeal under
10paragraph (4) is necessary to effectuate the addition of
11section 1722-J(10) of the act.

12(4) Section 2509.14 of the act of March 10, 1949 
13(P.L.30, No.14), known as the Public School Code of 1949, is 
14repealed.

<-15Section 17. The following provisions shall apply
16retroactively to taxable years beginning after December 31,
172013:

18(1) The addition of section 215 of the act.

19(2) The addition of section 1104.2 of the act.

20Section <-18 <-17. This act shall take effect as follows:

21(1) The amendment of section 301.1(i)(2) of the act
22shall take effect in 60 days.

23(2) The amendment or addition of sections 1301.11(g),
241301.11a, 1301.11b and 1301.25 of the act shall take effect
25in 180 days.

26(3) Section 16(2) of this act shall take effect January
271, 2015.

28(4) The remainder of this act shall take effect 
29immediately.

 

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