PRINTER'S NO. 3269
No. 2456 Session of 1998
INTRODUCED BY ROBERTS, MELIO, PESCI, GIGLIOTTI, TIGUE, TRELLO,
GORDNER, READSHAW, YOUNGBLOOD, ARGALL, STABACK, WOJNAROSKI,
BELFANTI, ROBINSON AND STEELMAN, MARCH 24, 1998
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
MARCH 24, 1998
AN ACT
1 Providing for the return to counties of a portion of the State
2 sales and use tax to fund infrastructure improvements;
3 providing for powers and duties of the Department of
4 Community and Economic Development and the Department of
5 Revenue; requiring counties to account for funds and the
6 status of infrastructure improvements; and requiring an
7 independent audit of funds received by counties.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Short title.
11 This act shall be known and may be cited as the County
12 Infrastructure Improvements Assistance Act.
13 Section 2. Definitions.
14 The following words and phrases when used in this act shall
15 have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Center." The Center for Local Government Services within
18 the Department of Community and Economic Development.
19 "County." A county of the Commonwealth regardless of class.
1 "Department." The Department of Community and Economic
2 Development of the Commonwealth.
3 "Fund." The County Infrastructure Improvements Fund created
4 in section 3.
5 "Infrastructure improvements."
6 (1) The term includes:
7 (i) Construction or rehabilitation of the following:
8 (A) Roads, bridges, sewage facilities and lines
9 and water facilities and lines.
10 (B) Ports and rails whether publicly owned or
11 constructed or rehabilitated for purposes of resale.
12 (C) Roads, bridges, sewer lines and water lines
13 to support multiowner public, private or combined
14 public and private tourist attractions.
15 (ii) Acquisition of land, rights-of-way and
16 easements necessary for economic development.
17 (iii) Capital expenditures for economic development,
18 such as shell buildings and industrial park improvements.
19 (iv) The public share of telecommunication capital
20 expenditures to support specific economic development
21 projects.
22 (v) Capital expenditures for community colleges,
23 including acquisition of major equipment.
24 (2) The term does not include:
25 (i) Airport construction or rehabilitation.
26 (ii) Preparation of brochures or other printed
27 materials.
28 (iii) Operating expenses.
29 (iv) Consulting fees.
30 (v) Design fees except when incurred for an
19980H2456B3269 - 2 -
1 infrastructure improvement.
2 (vi) Market or planning studies.
3 (vii) Housing construction or rehabilitation.
4 (viii) Improvements to public buildings.
5 (ix) Purchase or lease of equipment by a
6 municipality.
7 (x) Appropriations to police departments or fire or
8 ambulance departments or companies.
9 "Tax." The sales and use tax levied under Article II of the
10 act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
11 of 1971.
12 Section 3. Return of tax.
13 (a) Amount.--The Department of Revenue shall set aside 0.25%
14 of the total tax revenues received during each fiscal year for
15 disbursement to counties under this act. A change in the rate or
16 levy of the tax shall not affect the amount required to be set
17 aside under this subsection.
18 (b) Deposit into fund.--The amount set aside under
19 subsection (a) shall be deposited by the Department of Revenue
20 into a special fund in the Treasury Department, to be known as
21 the County Infrastructure Improvements Fund.
22 Section 4. Disbursements from fund.
23 (a) Formula.--Moneys in the fund shall be apportioned among
24 all counties upon the basis that a county's population bears to
25 the total population of this Commonwealth. Population shall be
26 determined according to the most recent official Federal census.
27 (b) Frequency.--The State Treasurer shall remit the funds to
28 each county on a quarterly basis.
29 Section 5. Use of funds.
30 (a) General rule.--Funds received by a county shall be
19980H2456B3269 - 3 -
1 expended for infrastructure improvements and for no other
2 purpose. Each county shall deposit disbursements received under
3 this act in a special, restricted account. Any interest earned
4 by the special account shall be credited to the account.
5 Amounts remaining in a special fund at the close of a county's
6 fiscal year shall not lapse.
7 (b) Limitation.--A county shall not make an appropriation
8 from the special fund for the same infrastructure improvement
9 for more than three consecutive fiscal years. An infrastructure
10 improvement must be completed within 15 months of the last
11 appropriation for the infrastructure improvement, and a report
12 of its completion shall be transmitted to the center.
13 Section 6. Reports and audit.
14 (a) Annual report.--Each county shall transmit to the
15 department on or before October 1 of each year a report
16 containing the following:
17 (1) An enumeration of the infrastructure improvements
18 financed under this act.
19 (2) A detailed statement of the actual or projected cost
20 of each infrastructure improvement.
21 (3) The status of each infrastructure improvement,
22 including the completion date or if the infrastructure
23 improvement has not been completed, the projected completion
24 date.
25 (4) Such other information as the department may
26 require.
27 (b) Audit.--Each county shall submit a triennial audit of
28 funds received under this act. The audit shall be performed by a
29 certified public accountant or certified public accounting firm
30 selected by the governing body of the county from a list of ten
19980H2456B3269 - 4 -
1 qualified persons or firms prepared by the center. The audit
2 shall contain an opinion on the county's compliance with this
3 act and a verification of information contained in reports
4 submitted by the county under subsection (a).
5 Section 7. Administration and enforcement.
6 The department with the assistance of the center shall
7 promulgate rules and regulations to administer and enforce this
8 act. The department shall, however, have no power to adopt a
9 rule or regulation that requires a county to submit plans or
10 proposals as a condition for receipt of funds under this act.
11 Section 8. Recovery of certain funds.
12 The department may recover from a county funds attributable
13 to an infrastructure improvement that is not completed within
14 the period provided in section 5(b).
15 Section 9. Applicability.
16 This act shall apply to the Commonwealth fiscal year
17 beginning on July 1, 1999.
18 Section 10. Effective date.
19 This act shall take effect immediately.
B10L16WMB/19980H2456B3269 - 5 -