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        PRIOR PRINTER'S NOS. 1796, 2023, 2093,        PRINTER'S NO. 2302
        2232, 2291

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1297 Session of 2008


        INTRODUCED BY BROWNE, WOZNIAK, RAFFERTY, M. WHITE, FONTANA,
           WAUGH, TOMLINSON, C. WILLIAMS, FUMO, EARLL, BAKER,
           WONDERLING, MUSTO, COSTA, PIPPY, RHOADES, ARMSTRONG AND
           WASHINGTON, FEBRUARY 26, 2008

        SENATE AMENDMENTS TO HOUSE AMENDMENTS, JULY 3, 2008

                                     AN ACT

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


     1     investment policy, for annual investment report, for
     2     segregation of duties, for limitations on investment
     3     relationships and campaign contributions and for audit of
     4     securities deposited with State Treasurer; in disposition of
     5     abandoned and unclaimed property, further providing for
     6     judicial action upon determination; and making a related
     7     repeal. FURTHER PROVIDING FOR STATE TREASURY INVESTMENTS;      <--
     8     PROVIDING FOR AUDIT OF DEPOSITED SECURITIES; FURTHER
     9     PROVIDING, IN UNCLAIMED PROPERTY, FOR JUDICIAL ACTION;
    10     FURTHER PROVIDING FOR FUNDING OF SPECIAL FUNDS; ESTABLISHING
    11     THE HAZARDOUS SITES CLEANUP FUND; FURTHER PROVIDING FOR
    12     GENERAL BUDGET IMPLEMENTATION; PROVIDING FOR 2008-2009 BUDGET
    13     IMPLEMENTATION AND FOR 2008-2009 RESTRICTIONS ON
    14     APPROPRIATIONS FOR FUNDS AND ACCOUNTS; AND MAKING A RELATED
    15     REPEAL.

    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18     Section 1.  Section 301.1(i) of the act of April 9, 1929       <--
    19  (P.L.343, No.176), known as The Fiscal Code, amended November 9,
    20  2006 (P.L.1335, No.138), is amended to read:
    21     Section 301.1.  Investment of Moneys.--* * *
    22     (i)  (1)  Notwithstanding subsections (a) through (h), the
    23  Treasury Department shall have the exclusive management and full
    24  power to invest and reinvest the moneys of any fund as shall be
    25  accumulated beyond the ordinary needs of the various funds and
    26  which are not authorized by law to be invested by any board,
    27  commission or State officer, subject, however, to the [exercise
    28  of that degree of judgment and care under the circumstances then
    29  prevailing which persons of prudence, discretion and
    30  intelligence who are familiar with such matters exercise in the
    31  management of their own affairs not in regard to speculation but
    32  in regard to the permanent disposition of the funds, considering
    33  the probable income to be derived therefrom as well as the
    34  probable safety of their capital. The Treasury Department shall
    35  have the power to hold, purchase, sell, assign, transfer and
    36  dispose of any securities, including equity securities and
    37  mutual funds consisting in whole or in part of equity
    20080S1297B2302                  - 2 -     

     1  securities, and investments in any such fund as well as the
     2  proceeds of such investments and of the money belonging to any
     3  such fund. The Treasury Department shall, through the Governor,
     4  submit to the General Assembly annually, at the same time the
     5  Treasury Department submits its budget covering administrative
     6  expenses, a report identifying the nature and amount of all
     7  existing investments made pursuant to this section.] prudent
     8  investor standard.
     9     (1.1)  When  investing, reinvesting, purchasing, acquiring,
    10  exchanging, selling or managing public funds, the Treasury
    11  Department shall act as a fiduciary with care, skill, prudence
    12  and diligence under the circumstances then prevailing,
    13  specifically including, but not limited to, the general economic
    14  conditions and the anticipated needs of the funds, that a
    15  prudent person acting in a like capacity and with familiarity
    16  with those matters would use in the conduct of funds of a like
    17  character and with like objectives. The following shall apply:
    18     (i)  The primary objective of the Treasury Department shall
    19  be to safeguard the principal of the funds. The secondary
    20  objective shall be to meet the liquidity needs of the funds. The
    21  third objective shall be to achieve a return on the funds.
    22     (ii)  The prudent investor standard embraces the duty of
    23  loyalty whereby actions must be in accordance with the sole
    24  purpose doctrine to accomplish the prudent investor objectives
    25  and not in pursuit of other objectives except as otherwise
    26  provided by statute.
    27     (iii)  The prudent investor standard embraces the duty to
    28  monitor the ongoing circumstances of investments for ongoing
    29  appropriateness of investments to meet the prudent investor
    30  objectives.
    20080S1297B2302                  - 3 -     

     1     (iv)  The Treasury Department shall have the power and
     2  authority to invest in securities subject to the then prevailing
     3  standards that institutional investors employ in the context of
     4  investment decisions made with consideration of fiduciary
     5  standards.
     6     (v)  The Treasury Department shall maintain and publish a
     7  list of prohibited investments within its investment policy.
     8     (2)  The authority to invest or reinvest the moneys of any
     9  fund pursuant to this subsection shall expire [December 31,
    10  2008] December 31, 2010. The Treasury Department may maintain
    11  investments pursuant to this subsection which are in existence
    12  on the expiration date in this paragraph for not more than two
    13  years following such expiration date.
    14     Section 2.  The act is amended by adding sections to read:
    15     Section 301.2.  Investment Policy.--The State Treasurer shall
    16  maintain an investment policy. The investment policy shall
    17  include provisions on general investment principles including
    18  asset allocation, liquidity and operational cash management
    19  requirements, prohibited investment activity, investment
    20  performance review and any other item that the State Treasurer
    21  may include. The State Treasurer shall review and if necessary
    22  update the investment policy at least annually. The Treasury
    23  Department shall post, maintain and update the investment policy
    24  as necessary on its publicly accessible Internet website.
    25     Section 301.3.  Annual Investment Report.--By November 30,
    26  2008, and annually thereafter, the State Treasurer shall submit
    27  a report to the Governor and to the chair and minority chair of
    28  the Appropriations Committee of the Senate, the chair and
    29  minority chair of the Finance Committee of the Senate, the chair
    30  and minority chair of the Appropriations Committee of the House
    20080S1297B2302                  - 4 -     

     1  of Representatives and the chair and minority chair of the House
     2  of Representatives. The report shall cover the period consisting
     3  of the most recently ended fiscal year. The report shall provide
     4  for the following:
     5     (1)  An analysis of the status and performance of the current
     6  investments and transactions made over the last fiscal year.
     7     (2)  Targeted asset allocation and actual asset allocation on
     8  September 30, December 31, March 31 and June 30 of the previous
     9  fiscal year.
    10     (3)  The standards and measures of investment performance,
    11  including benchmarks for each asset class.
    12     (4)  Return for each asset class including a breakdown of the
    13  return versus the targeted benchmark calculated net of fees.
    14     (5)  A list of external managers including whether the
    15  manager was selected through competitive bid or as a sole source
    16  selection, the principals and key staff of the manager, the date
    17  of the manager's hire, the amount of fees received by the
    18  manager in the previous fiscal year and the return on the
    19  manager's portfolio as compared to their targeted benchmark.
    20     (6)  Brokerage fees.
    21     (7)  Securities lending information.
    22     (8)  Proxy voting information.
    23     (9)  Information on securities litigation.
    24     Section 301.4.  Segregation of Duties.--(a)  A person who
    25  provides financial services to the Treasury Department shall not
    26  benefit directly or indirectly from the investment actions of
    27  the Treasury Department except as provided in the contract for
    28  the provision of those services. No person providing financial
    29  services shall knowingly do indirectly that which is directly
    30  prohibited by this section.
    20080S1297B2302                  - 5 -     

     1     (b)  A violation of this section constitutes a misdemeanor of
     2  the third degree.
     3     (c)  For the purposes of this section, "financial services"
     4  shall include, but not be limited to, the providing of
     5  investment advice and management of investments.
     6     Section 311.  Limitations on Investment Relationships and
     7  Campaign Contributions.--(a)  (1)  The Treasury Department shall
     8  not enter into an investment relationship with a person who has
     9  solicited any contribution on behalf of or made any contribution
    10  to a candidate committee or election fund of the State Treasurer
    11  or any candidate for State Treasurer. This prohibition shall
    12  apply to solicitations and contributions made by the person, by
    13  an individual representing the person or by a political action
    14  committee controlled by the person.
    15     (2)  No person who has agreed to or entered into an
    16  investment relationship with the Treasury Department shall
    17  knowingly solicit or make any contribution to a candidate
    18  committee or election fund of the State Treasurer or any
    19  candidate for State Treasurer. This prohibition shall apply to
    20  solicitations and contributions made by the person, by an
    21  individual representing the person or by a political action
    22  committee controlled by the person.
    23     (b)  Subsection (a) shall apply to the time period which
    24  begins two years prior to the following dates and ends upon the
    25  termination of the investment relationship:
    26     (1)  the date upon which the Treasury Department first
    27  announces a procurement or search process that could lead to an
    28  investment relationship which can reasonably be expected to
    29  generate at least $25,000 annually in income, fees or other
    30  revenue to the person; or
    20080S1297B2302                  - 6 -     

     1     (2)  the date upon which a person approaches the Treasury
     2  Department with a proposal to enter into an investment
     3  relationship with the Treasury Department by discussing the
     4  specific facts and financial terms of a particular investment
     5  transaction or strategy.
     6     (c)  The State Ethics Commission shall cause an independent
     7  investigation to be performed for any reported violation of this
     8  section and report any documented violation to the State
     9  Treasurer for action within ten business days of the conclusion
    10  of the independent investigation. Copies of this report shall
    11  also be submitted to the chairman of the Appropriations
    12  Committee of the Senate and the chairman of the Appropriations
    13  Committee of the House of Representatives within ten business
    14  days of the conclusion of the independent investigation. The
    15  State Ethics Commission shall submit the report to the
    16  Legislative Reference Bureau for publication in the next
    17  succeeding publication of the Pennsylvania Bulletin.
    18     (d)  If a person seeking an investment relationship with the
    19  Treasury Department is found to be in violation of this section,
    20  the person shall be prohibited from engaging in an investment
    21  relationship with the Treasury Department for a period of two
    22  years. A person who has an existing investment relationship with
    23  the Treasury Department and who is found to be in violation of
    24  the provisions of this section shall be prohibited from
    25  providing any additional investment services for the Treasury
    26  Department for a period of two years.
    27     (e)  If a person voluntarily reports a violation of this
    28  section to the State Ethics Commission within 90 days of the
    29  contribution's being made, and it is established pursuant to an
    30  independent investigation that the violation was inadvertently,
    20080S1297B2302                  - 7 -     

     1  unintentionally or unknowingly made and the contribution was
     2  returned, the provisions of subsection (d) shall not apply.
     3     (f)  As used in this section, the following words and phrases
     4  shall have the meaning given to them in this subsection:
     5     "Contribution."  A contribution reportably by the recipient
     6  under Article XVI of the act of June 3, 1937 (P.L.1333, No.320),
     7  known as the "Pennsylvania Election Code."
     8     "Investment relationship."  A relationship between a person
     9  and the Treasury Department for the purpose of providing
    10  investment services such as legal services, investment banking
    11  services, investment advisory services, underwriting services,
    12  financial advisory services or brokerage firm services for
    13  brokerage, underwriting and financial advisory activities.
    14     "Person."  An individual, organization or partnership
    15  currently engaged in or seeking to engage in an investment
    16  relationship with the Treasury Department where the relationship
    17  can reasonably be expected to generate at least $25,000 annually
    18  in income, fees or other revenue to the individual, organization
    19  or partnership and shall specifically include:
    20     (1)  Authorized or key personnel as defined or identified by
    21  a contracting party by being attached to the contract.
    22     (2)  Persons who expect to or do experience a material
    23  financial effect on their economic interests, including salary,
    24  bonuses, options or other financial incentives directly deriving
    25  from an investment relationship.
    26     Section 409.  Audit of Securities Deposited with State
    27  Treasurer.--(a)  The Auditor General, through such agents as he
    28  may select, shall perform an annual audit of the bonds, stocks,
    29  mortgages, or other securities, which are deposited with the
    30  State Treasurer in whatever capacity, and shall audit the books
    20080S1297B2302                  - 8 -     

     1  in which a record is kept of such bonds, stocks, mortgages, or
     2  other securities; and, for this purpose, the Auditor General may
     3  employ such consultants, experts, accountants, or investigators
     4  as he may deem advisable. The audit may be conducted
     5  independently or as part of any other annual audit or audits
     6  conducted by the Auditor General.
     7     (b)  The State Treasurer shall, whenever demand is made upon
     8  him by the Auditor General, submit for the audit of the Auditor
     9  General, or his agents, all records in his possession relating
    10  to such bonds, stocks, mortgages, or other securities, including
    11  such records in the possession of any custodian or subcustodian
    12  engaged by him regarding such securities, and his failure so to
    13  do shall disqualify him from holding the office of State
    14  Treasurer.
    15     Section 3.  Section 1301.21 of the act, amended June 29, 2002
    16  (P.L.614, No.91), is amended to read:
    17     Section 1301.21.  Judicial Action upon Determinations.--[Any
    18  person aggrieved by a decision of the State Treasurer, or as to
    19  whose claim the State Treasurer has failed to act within ninety
    20  (90) days after the filing of the claim, may commence an action
    21  in the Commonwealth Court to establish his claim. The proceeding
    22  shall be brought within thirty (30) days after the decision of
    23  the State Treasurer or within one hundred twenty (120) days from
    24  the filing of the claim if the State Treasurer fails to act. The
    25  action shall be tried de novo without a jury.] (a)  Any person
    26  aggrieved by a decision of the State Treasurer may appeal to the
    27  Commonwealth Court. The appeal shall be filed within thirty (30)
    28  days after the decision of the State Treasurer. The case shall
    29  be heard in Commonwealth Court's appellate jurisdiction.
    30     (b)  Any person as to whose claim the State Treasurer has
    20080S1297B2302                  - 9 -     

     1  failed to take action within ninety (90) days after the filing
     2  of the claim, may commence an action in the Commonwealth Court
     3  to establish his claim within one hundred twenty (120) days from
     4  the filing of the claim. The action shall be tried de novo
     5  without a jury.
     6     Section 4.  Repeals are as follows:
     7         (1)  The General Assembly declares that the repeal under
     8     paragraph (2) is necessary to effectuate the addition of
     9     section 409 of the act.
    10         (2)  The act of May 21, 1923 (P.L.288, No.184), entitled
    11     "An act to better secure all bonds, stocks, mortgages, or
    12     other securities deposited with the State Treasurer, by
    13     providing for their inspection, examination, and
    14     verification, and the verification of the books, containing a
    15     record of such bonds, stocks, mortgages, or other securities,
    16     by the Auditor General or his agents," is repealed.
    17     Section 5.  This act shall take effect immediately.
    18     SECTION 1.  SECTION 301.1(I) OF THE ACT OF APRIL 9, 1929       <--
    19  (P.L.343, NO.176), KNOWN AS THE FISCAL CODE, AMENDED NOVEMBER 9,
    20  2006 (P.L.1335, NO.138), IS AMENDED TO READ:
    21     SECTION 301.1.  INVESTMENT OF MONEYS.--* * *
    22     (I)  (1)  NOTWITHSTANDING SUBSECTIONS (A) THROUGH (H), THE
    23  TREASURY DEPARTMENT SHALL HAVE THE EXCLUSIVE MANAGEMENT AND FULL
    24  POWER TO INVEST AND REINVEST THE MONEYS OF ANY FUND AS SHALL BE
    25  ACCUMULATED BEYOND THE ORDINARY NEEDS OF THE VARIOUS FUNDS AND
    26  WHICH ARE NOT AUTHORIZED BY LAW TO BE INVESTED BY ANY BOARD,
    27  COMMISSION OR STATE OFFICER, SUBJECT, HOWEVER, TO THE [EXERCISE
    28  OF THAT DEGREE OF JUDGMENT AND CARE UNDER THE CIRCUMSTANCES THEN
    29  PREVAILING WHICH PERSONS OF PRUDENCE, DISCRETION AND
    30  INTELLIGENCE WHO ARE FAMILIAR WITH SUCH MATTERS EXERCISE IN THE
    20080S1297B2302                 - 10 -     

     1  MANAGEMENT OF THEIR OWN AFFAIRS NOT IN REGARD TO SPECULATION BUT
     2  IN REGARD TO THE PERMANENT DISPOSITION OF THE FUNDS, CONSIDERING
     3  THE PROBABLE INCOME TO BE DERIVED THEREFROM AS WELL AS THE
     4  PROBABLE SAFETY OF THEIR CAPITAL. THE TREASURY DEPARTMENT SHALL
     5  HAVE THE POWER TO HOLD, PURCHASE, SELL, ASSIGN, TRANSFER AND
     6  DISPOSE OF ANY SECURITIES, INCLUDING EQUITY SECURITIES AND
     7  MUTUAL FUNDS CONSISTING IN WHOLE OR IN PART OF EQUITY
     8  SECURITIES, AND INVESTMENTS IN ANY SUCH FUND AS WELL AS THE
     9  PROCEEDS OF SUCH INVESTMENTS AND OF THE MONEY BELONGING TO ANY
    10  SUCH FUND. THE TREASURY DEPARTMENT SHALL, THROUGH THE GOVERNOR,
    11  SUBMIT TO THE GENERAL ASSEMBLY ANNUALLY, AT THE SAME TIME THE
    12  TREASURY DEPARTMENT SUBMITS ITS BUDGET COVERING ADMINISTRATIVE
    13  EXPENSES, A REPORT IDENTIFYING THE NATURE AND AMOUNT OF ALL
    14  EXISTING INVESTMENTS MADE PURSUANT TO THIS SECTION.] PRUDENT
    15  INVESTOR STANDARD.
    16     (1.1)  WHEN INVESTING, REINVESTING, PURCHASING, ACQUIRING,
    17  EXCHANGING, SELLING OR MANAGING PUBLIC FUNDS, THE TREASURY
    18  DEPARTMENT SHALL ACT AS A FIDUCIARY WITH CARE, SKILL, PRUDENCE
    19  AND DILIGENCE UNDER THE CIRCUMSTANCES THEN PREVAILING,
    20  SPECIFICALLY INCLUDING, BUT NOT LIMITED TO, THE GENERAL ECONOMIC
    21  CONDITIONS AND THE ANTICIPATED NEEDS OF THE FUNDS, THAT A
    22  PRUDENT PERSON ACTING IN A LIKE CAPACITY AND WITH FAMILIARITY
    23  WITH THOSE MATTERS WOULD USE IN THE CONDUCT OF FUNDS OF A LIKE
    24  CHARACTER AND WITH LIKE OBJECTIVES. THE FOLLOWING SHALL APPLY:
    25     (I)  THE PRIMARY OBJECTIVE OF THE TREASURY DEPARTMENT SHALL
    26  BE TO SAFEGUARD THE PRINCIPAL OF THE FUNDS. THE SECONDARY
    27  OBJECTIVE SHALL BE TO MEET THE LIQUIDITY NEEDS OF THE FUNDS. THE
    28  THIRD OBJECTIVE SHALL BE TO ACHIEVE A RETURN ON THE FUNDS.
    29     (II)  THE PRUDENT INVESTOR STANDARD EMBRACES THE DUTY OF
    30  LOYALTY WHEREBY ACTIONS MUST BE IN ACCORDANCE WITH THE SOLE
    20080S1297B2302                 - 11 -     

     1  PURPOSE DOCTRINE TO ACCOMPLISH THE PRUDENT INVESTOR OBJECTIVES
     2  AND NOT IN PURSUIT OF OTHER OBJECTIVES EXCEPT AS OTHERWISE
     3  PROVIDED BY STATUTE.
     4     (III)  THE PRUDENT INVESTOR STANDARD EMBRACES THE DUTY TO
     5  MONITOR THE ONGOING CIRCUMSTANCES OF INVESTMENTS FOR ONGOING
     6  APPROPRIATENESS OF INVESTMENTS TO MEET THE PRUDENT INVESTOR
     7  OBJECTIVES.
     8     (IV)  THE TREASURY DEPARTMENT SHALL HAVE THE POWER AND
     9  AUTHORITY TO INVEST IN SECURITIES SUBJECT TO THE THEN PREVAILING
    10  STANDARDS THAT INSTITUTIONAL INVESTORS EMPLOY IN THE CONTEXT OF
    11  INVESTMENT DECISIONS MADE WITH CONSIDERATION OF FIDUCIARY
    12  STANDARDS.
    13     (V)  THE TREASURY DEPARTMENT SHALL MAINTAIN AND PUBLISH A
    14  LIST OF PROHIBITED INVESTMENTS WITHIN ITS INVESTMENT POLICY.
    15     (2)  THE AUTHORITY TO INVEST OR REINVEST THE MONEYS OF ANY
    16  FUND PURSUANT TO THIS SUBSECTION SHALL EXPIRE [DECEMBER 31,
    17  2008] DECEMBER 31, 2010. THE TREASURY DEPARTMENT MAY MAINTAIN
    18  INVESTMENTS PURSUANT TO THIS SUBSECTION WHICH ARE IN EXISTENCE
    19  ON THE EXPIRATION DATE IN THIS PARAGRAPH FOR NOT MORE THAN TWO
    20  YEARS FOLLOWING SUCH EXPIRATION DATE.
    21     SECTION 2.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
    22     SECTION 301.2.  INVESTMENT POLICY.--THE STATE TREASURER SHALL
    23  MAINTAIN AN INVESTMENT POLICY. THE INVESTMENT POLICY SHALL
    24  INCLUDE PROVISIONS ON GENERAL INVESTMENT PRINCIPLES INCLUDING
    25  ASSET ALLOCATION, LIQUIDITY AND OPERATIONAL CASH MANAGEMENT
    26  REQUIREMENTS, PROHIBITED INVESTMENT ACTIVITY, INVESTMENT
    27  PERFORMANCE REVIEW AND ANY OTHER ITEM THAT THE STATE TREASURER
    28  MAY INCLUDE. THE STATE TREASURER SHALL REVIEW AND IF NECESSARY
    29  UPDATE THE INVESTMENT POLICY AT LEAST ANNUALLY. THE TREASURY
    30  DEPARTMENT SHALL POST, MAINTAIN AND UPDATE THE INVESTMENT POLICY
    20080S1297B2302                 - 12 -     

     1  AS NECESSARY ON ITS PUBLICLY ACCESSIBLE INTERNET WEBSITE.
     2     SECTION 301.3.  ANNUAL INVESTMENT REPORT.--BY NOVEMBER 30,
     3  2008, AND ANNUALLY THEREAFTER, THE STATE TREASURER SHALL SUBMIT
     4  A REPORT TO THE GOVERNOR AND TO THE CHAIR AND MINORITY CHAIR OF
     5  THE APPROPRIATIONS COMMITTEE OF THE SENATE, THE CHAIR AND
     6  MINORITY CHAIR OF THE FINANCE COMMITTEE OF THE SENATE, THE CHAIR
     7  AND MINORITY CHAIR OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE
     8  OF REPRESENTATIVES AND THE CHAIR AND MINORITY CHAIR OF THE
     9  FINANCE COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE REPORT
    10  SHALL COVER THE PERIOD CONSISTING OF THE MOST RECENTLY ENDED
    11  FISCAL YEAR. THE REPORT SHALL PROVIDE FOR THE FOLLOWING:
    12     (1)  AN ANALYSIS OF THE STATUS AND PERFORMANCE OF THE CURRENT
    13  INVESTMENTS AND TRANSACTIONS MADE OVER THE LAST FISCAL YEAR.
    14     (2)  TARGETED ASSET ALLOCATION AND ACTUAL ASSET ALLOCATION ON
    15  SEPTEMBER 30, DECEMBER 31, MARCH 31 AND JUNE 30 OF THE PREVIOUS
    16  FISCAL YEAR.
    17     (3)  THE STANDARDS AND MEASURES OF INVESTMENT PERFORMANCE,
    18  INCLUDING BENCHMARKS FOR EACH ASSET CLASS.
    19     (4)  RETURN FOR EACH ASSET CLASS INCLUDING A BREAKDOWN OF THE
    20  RETURN VERSUS THE TARGETED BENCHMARK CALCULATED NET OF FEES.
    21     (5)  A LIST OF EXTERNAL MANAGERS INCLUDING WHETHER THE
    22  MANAGER WAS SELECTED THROUGH COMPETITIVE BID OR AS A SOLE SOURCE
    23  SELECTION, THE PRINCIPALS AND KEY STAFF OF THE MANAGER, THE DATE
    24  OF THE MANAGER'S HIRE, THE AMOUNT OF FEES RECEIVED BY THE
    25  MANAGER IN THE PREVIOUS FISCAL YEAR AND THE RETURN ON THE
    26  MANAGER'S PORTFOLIO VERSUS HIS TARGETED BENCHMARK.
    27     (6)  BROKERAGE FEES.
    28     (7)  SECURITIES LENDING INFORMATION.
    29     (8)  PROXY VOTING INFORMATION.
    30     (9)  INFORMATION ON SECURITIES LITIGATION.
    20080S1297B2302                 - 13 -     

     1     SECTION 301.4.  SEGREGATION OF DUTIES.--(A)  A PERSON WHO
     2  PROVIDES FINANCIAL SERVICES TO THE TREASURY DEPARTMENT SHALL NOT
     3  BENEFIT DIRECTLY OR INDIRECTLY FROM THE INVESTMENT ACTIONS OF
     4  THE TREASURY DEPARTMENT EXCEPT AS PROVIDED IN THE CONTRACT FOR
     5  THE PROVISION OF THOSE SERVICES. NO PERSON PROVIDING FINANCIAL
     6  SERVICES SHALL KNOWINGLY DO INDIRECTLY THAT WHICH IS DIRECTLY
     7  PROHIBITED BY THIS SECTION.
     8     (B)  A VIOLATION OF THIS SECTION CONSTITUTES A MISDEMEANOR OF
     9  THE THIRD DEGREE.
    10     (C)  FOR THE PURPOSES OF THIS SECTION, "FINANCIAL SERVICES"
    11  SHALL INCLUDE, BUT NOT BE LIMITED TO, THE PROVIDING OF
    12  INVESTMENT ADVICE AND MANAGEMENT OF INVESTMENTS.
    13     SECTION 409.  AUDIT OF SECURITIES DEPOSITED WITH STATE
    14  TREASURER.--(A)  THE AUDITOR GENERAL, THROUGH SUCH AGENTS AS HE
    15  MAY SELECT, SHALL PERFORM AN ANNUAL AUDIT OF THE BONDS, STOCKS,
    16  MORTGAGES, OR OTHER SECURITIES, WHICH ARE DEPOSITED WITH THE
    17  STATE TREASURER IN WHATEVER CAPACITY, AND SHALL AUDIT THE BOOKS
    18  IN WHICH A RECORD IS KEPT OF SUCH BONDS, STOCKS, MORTGAGES, OR
    19  OTHER SECURITIES; AND, FOR THIS PURPOSE, THE AUDITOR GENERAL MAY
    20  EMPLOY SUCH CONSULTANTS, EXPERTS, ACCOUNTANTS, OR INVESTIGATORS
    21  AS HE MAY DEEM ADVISABLE. THE AUDIT MAY BE CONDUCTED
    22  INDEPENDENTLY OR AS PART OF ANY OTHER ANNUAL AUDIT OR AUDITS
    23  CONDUCTED BY THE AUDITOR GENERAL.
    24     (B)  THE STATE TREASURER SHALL, WHENEVER DEMAND IS MADE UPON
    25  HIM BY THE AUDITOR GENERAL, SUBMIT FOR THE AUDIT OF THE AUDITOR
    26  GENERAL, OR HIS AGENTS, ALL RECORDS IN HIS POSSESSION RELATING
    27  TO SUCH BONDS, STOCKS, MORTGAGES, OR OTHER SECURITIES, INCLUDING
    28  SUCH RECORDS IN THE POSSESSION OF ANY CUSTODIAN OR SUBCUSTODIAN
    29  ENGAGED BY HIM REGARDING SUCH SECURITIES, AND HIS FAILURE SO TO
    30  DO SHALL DISQUALIFY HIM FROM HOLDING THE OFFICE OF STATE
    20080S1297B2302                 - 14 -     

     1  TREASURER.
     2     SECTION 3.  SECTION 1301.21 OF THE ACT, AMENDED JUNE 29, 2002
     3  (P.L.614, NO.91), IS AMENDED TO READ:
     4     SECTION 1301.21.  JUDICIAL ACTION UPON DETERMINATIONS.--[ANY
     5  PERSON AGGRIEVED BY A DECISION OF THE STATE TREASURER, OR AS TO
     6  WHOSE CLAIM THE STATE TREASURER HAS FAILED TO ACT WITHIN NINETY
     7  (90) DAYS AFTER THE FILING OF THE CLAIM, MAY COMMENCE AN ACTION
     8  IN THE COMMONWEALTH COURT TO ESTABLISH HIS CLAIM. THE PROCEEDING
     9  SHALL BE BROUGHT WITHIN THIRTY (30) DAYS AFTER THE DECISION OF
    10  THE STATE TREASURER OR WITHIN ONE HUNDRED TWENTY (120) DAYS FROM
    11  THE FILING OF THE CLAIM IF THE STATE TREASURER FAILS TO ACT. THE
    12  ACTION SHALL BE TRIED DE NOVO WITHOUT A JURY.] (A)  ANY PERSON
    13  AGGRIEVED BY A DECISION OF THE STATE TREASURER MAY APPEAL TO THE
    14  COMMONWEALTH COURT. THE APPEAL SHALL BE FILED WITHIN THIRTY (30)
    15  DAYS AFTER THE DECISION OF THE STATE TREASURER. THE CASE SHALL
    16  BE HEARD IN COMMONWEALTH COURT'S APPELLATE JURISDICTION.
    17     (B)  ANY PERSON AS TO WHOSE CLAIM THE STATE TREASURER HAS
    18  FAILED TO TAKE ACTION WITHIN NINETY (90) DAYS AFTER THE FILING
    19  OF THE CLAIM, MAY COMMENCE AN ACTION IN THE COMMONWEALTH COURT
    20  TO ESTABLISH HIS CLAIM WITHIN ONE HUNDRED TWENTY (120) DAYS FROM
    21  THE FILING OF THE CLAIM. THE ACTION SHALL BE TRIED DE NOVO
    22  WITHOUT A JURY.
    23     SECTION 4.  SECTION 1702-A OF THE ACT, AMENDED OR ADDED JUNE
    24  29, 2002 (P.L.614, NO.91), AND JULY 7, 2005 (P.L.174, NO.41), IS
    25  AMENDED TO READ:
    26  SECTION 1702-A.  FUNDING.
    27     (A)  INTENT.--IT IS HEREBY DECLARED AS THE INTENT AND GOAL OF
    28  THE GENERAL ASSEMBLY TO CREATE A STABILIZATION RESERVE IN AN
    29  EVENTUAL AMOUNT OF 6% OF THE REVENUES OF THE GENERAL FUND OF THE
    30  COMMONWEALTH.
    20080S1297B2302                 - 15 -     

     1     (B)  TRANSFER OF PORTION OF SURPLUS.--
     2         (1)  EXCEPT AS MAY BE PROVIDED IN PARAGRAPH (2), FOR
     3     FISCAL YEARS BEGINNING AFTER JUNE 30, 2002, THE FOLLOWING
     4     APPLY:
     5             (I)  EXCEPT AS SET FORTH IN [SUBPARAGRAPH (II)] THIS
     6         PARAGRAPH, IF THE SECRETARY OF THE BUDGET CERTIFIES THAT
     7         THERE IS A SURPLUS IN THE GENERAL FUND FOR A SPECIFIC
     8         FISCAL YEAR, 25% OF THE SURPLUS SHALL BE DEPOSITED BY THE
     9         END OF THE NEXT SUCCEEDING QUARTER INTO THE BUDGET
    10         STABILIZATION RESERVE FUND.
    11             (II)  IF THE SECRETARY OF THE BUDGET CERTIFIES, AFTER
    12         JUNE 30, 2005, THAT THERE IS A SURPLUS IN THE GENERAL
    13         FUND FOR THE FISCAL YEAR 2004-2005, 15% OF THE SURPLUS
    14         SHALL BE DEPOSITED BY THE END OF THE NEXT SUCCEEDING
    15         QUARTER INTO THE BUDGET STABILIZATION RESERVE FUND.
    16             (III)  NO AMOUNT OF THE SURPLUS IN THE GENERAL FUND
    17         FOR FISCAL YEAR 2007-2008 MAY BE DEPOSITED INTO THE
    18         BUDGET STABILIZATION RESERVE FUND.
    19         (2)  IF, AT THE END OF ANY FISCAL YEAR, THE ENDING
    20     BALANCE OF THE BUDGET STABILIZATION RESERVE FUND EQUALS OR
    21     EXCEEDS 6% OF THE ACTUAL GENERAL FUND REVENUES RECEIVED FOR
    22     THE FISCAL YEAR IN WHICH THE SURPLUS OCCURS, 10% OF THE
    23     SURPLUS SHALL BE DEPOSITED BY THE END OF THE NEXT SUCCEEDING
    24     QUARTER INTO THE BUDGET RESERVE STABILIZATION FUND.
    25     (C)  APPROPRIATED FUNDS.--THE GENERAL ASSEMBLY MAY AT ANY
    26  TIME PROVIDE ADDITIONAL AMOUNTS FROM ANY FUNDS AVAILABLE TO THIS
    27  COMMONWEALTH AS AN APPROPRIATION TO THE BUDGET STABILIZATION
    28  RESERVE FUND.
    29     SECTION 5.  ARTICLE XVII-A OF THE ACT IS AMENDED BY ADDING A
    30  SUBARTICLE TO READ:
    20080S1297B2302                 - 16 -     

     1                            SUBARTICLE G
     2                    HAZARDOUS SITES CLEANUP FUND
     3  SECTION 1761-A.  ESTABLISHMENT OF HAZARDOUS SITES CLEANUP FUND.
     4     THERE IS HEREBY ESTABLISHED A SPECIAL FUND TO BE KNOWN AS THE
     5  HAZARDOUS SITES CLEANUP FUND.
     6     SECTION 6.  SUBARTICLE D OF ARTICLE XVII-E OF THE ACT, ADDED
     7  JULY 17, 2007 (P.L.141, NO.42), IS REPEALED:
     8                           [SUBARTICLE D
     9                        JUDICIAL DEPARTMENT
    10  SECTION 1781-E.  SUPREME COURT (RESERVED).
    11  SECTION 1782-E.  SUPERIOR COURT (RESERVED).
    12  SECTION 1783-E.  COMMONWEALTH COURT (RESERVED).
    13  SECTION 1784-E.  COURTS OF COMMON PLEAS (RESERVED).
    14  SECTION 1785-E.  COMMUNITY COURTS - MAGISTERIAL DISTRICT JUDGES
    15                     (RESERVED).
    16  SECTION 1786-E.  PHILADELPHIA TRAFFIC COURT (RESERVED).
    17  SECTION 1787-E.  PHILADELPHIA MUNICIPAL COURT (RESERVED).
    18  SECTION 1788-E.  JUDICIAL CONDUCT BOARD (RESERVED).
    19  SECTION 1789-E.  COURT OF JUDICIAL DISCIPLINE (RESERVED).
    20  SECTION 1790-E.  JUROR COST REIMBURSEMENT (RESERVED).
    21  SECTION 1791-E.  COUNTY COURT REIMBURSEMENT (RESERVED).
    22  SECTION 1792-E.  SENIOR JUDGES (RESERVED).
    23  SECTION 1793-E.  TRANSFER OF FUNDS BY SUPREME COURT (RESERVED).]
    24     SECTION 7.  ARTICLE XVII-E OF THE ACT IS AMENDED BY ADDING A
    25  SUBARTICLE TO READ:
    26                            SUBARTICLE D
    27                        JUDICIAL DEPARTMENT
    28  SECTION 1781-E.  SUPREME COURT.
    29     (A)  ADMINISTRATIVE OFFICE.--FUNDS APPROPRIATED FOR THE
    30  ADMINISTRATIVE OFFICE OF PENNSYLVANIA COURTS MAY BE USED FOR THE
    20080S1297B2302                 - 17 -     

     1  OPERATION OF THE PENNSYLVANIA BOARD OF LAW EXAMINERS. FUNDS
     2  PROVIDED TO THE BOARD SHALL BE REPAID IN FULL TO THE OFFICE,
     3  WITHOUT INTEREST OR CHARGES, FROM REVENUES OF THE BOARD.
     4     (B)  COUNTY COURT ADMINISTRATORS.--NO FUNDS FROM ANY
     5  APPROPRIATION OTHER THAN THE APPROPRIATION FOR COUNTY COURT
     6  ADMINISTRATORS FOR THE UNIFIED JUDICIAL SYSTEM MAY BE USED TO
     7  SUPPLEMENT PAYMENTS TO COUNTY COURT ADMINISTRATORS.
     8  SECTION 1782-E.  SUPERIOR COURT (RESERVED).
     9  SECTION 1783-E.  COMMONWEALTH COURT (RESERVED).
    10  SECTION 1784-E.  COURTS OF COMMON PLEAS.
    11     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE COURTS OF
    12  COMMON PLEAS IN THE GENERAL APPROPRIATION ACT.
    13         (1)  NO PAYMENT MAY BE MADE FROM THE APPROPRIATION FOR
    14     SALARIES AND EXPENSES OF COURTS OF COMMON PLEAS JUDGES FOR
    15     PRINTING, POSTAGE, TELEPHONE OR SUPPLIES.
    16         (2)  NO PAYMENT MAY BE MADE FOR EXPENSES OF ANY KIND
    17     RELATING TO EDUCATION.
    18  SECTION 1785-E.  COMMUNITY COURTS AND MAGISTERIAL DISTRICT
    19                     JUDGES.
    20     ALL OF THE FOLLOWING SHALL APPLY TO THE APPROPRIATION IN EACH
    21  GENERAL APPROPRIATION ACT FOR SALARIES AND EXPENSES OF COMMUNITY
    22  COURT JUDGES AND MAGISTERIAL DISTRICT JUDGES:
    23         (1)  EXCEPT FOR PRINTING COSTS UNDER 42 PA.C.S. § 3532
    24     (RELATING TO EXPENSES), NO OTHER COSTS FOR PRINTING, POSTAGE,
    25     TELEPHONE OR SUPPLIES MAY BE PAID FROM THE APPROPRIATION.
    26         (2)  NO EXPENSES OF ANY KIND RELATING TO EDUCATION MAY BE
    27     PAID FROM THE APPROPRIATION.
    28  SECTION 1786-E.  PHILADELPHIA TRAFFIC COURT (RESERVED).
    29  SECTION 1787-E.  PHILADELPHIA MUNICIPAL COURT (RESERVED).
    30  SECTION 1788-E.  JUDICIAL CONDUCT BOARD (RESERVED).
    20080S1297B2302                 - 18 -     

     1  SECTION 1789-E.  COURT OF JUDICIAL DISCIPLINE (RESERVED).
     2  SECTION 1790-E.  JUROR COST REIMBURSEMENT (RESERVED).
     3  SECTION 1791-E.  COUNTY COURT REIMBURSEMENT.
     4     COUNTY COURT REIMBURSEMENTS SHALL BE AS FOLLOWS:
     5         (1)  REIMBURSEMENT TO COUNTIES FOR COSTS INCURRED IN THE
     6     ADMINISTRATION AND OPERATION OF COURTS OF COMMON PLEAS SHALL
     7     BE PAID AS FOLLOWS:
     8             (I)  FOR EACH COMMON PLEAS COURT JUDGE, FILLED OR
     9         VACANT, $70,000 PER AUTHORIZED POSITION.
    10             (II)  JUDICIAL DISTRICTS COMPRISING MORE THAN ONE
    11         COUNTY SHALL RECEIVE $70,000 PER AUTHORIZED POSITION. THE
    12         AMOUNT PAYABLE TO EACH COUNTY SHALL BE DETERMINED BY THE
    13         PROPORTION OF THE COUNTY'S POPULATION IN RELATION TO THE
    14         POPULATION OF THE ENTIRE JUDICIAL DISTRICT.
    15             (III)  NO COUNTY SHALL BE REIMBURSED FOR COSTS ABOVE
    16         THE ACTUAL DIRECT COSTS, EXCLUDING CAPITAL OUTLAYS,
    17         INCURRED TO OPERATE THE COURTS OF COMMON PLEAS.
    18             (IV)  NO COUNTY SHALL RECEIVE LESS THAN 77.5% OF THE
    19         ACTUAL REIMBURSEMENT FOR COURT COSTS APPROPRIATED IN
    20         FISCAL YEAR 1980-1981.
    21             (V)  REIMBURSEMENT SHALL BE MADE TO THE COUNTY
    22         TREASURER AND, IN CITIES OF THE FIRST CLASS COTERMINOUS
    23         WITH COUNTIES OF THE FIRST CLASS, TO THE CITY TREASURER.
    24         (2)  (RESERVED).
    25  SECTION 1792-E.  SENIOR JUDGES.
    26     SENIOR JUDGES OF THE COURTS OF COMMON PLEAS SHALL NOT BE
    27  ASSIGNED UNLESS ADEQUATE FUNDS ARE APPROPRIATED TO PROVIDE
    28  COMPENSATION. A SENIOR JUDGE ASSIGNED IN EXCESS OF EXISTING
    29  APPROPRIATIONS SHALL BE COMPENSATED FROM THE APPROPRIATION FOR
    30  THE SUPREME COURT.
    20080S1297B2302                 - 19 -     

     1  SECTION 1793-E.  TRANSFER OF FUNDS BY SUPREME COURT.
     2     THE SUPREME COURT MAY TRANSFER TO THE JUDICIAL DEPARTMENT
     3  DURING THE FISCAL YEAR FUNDS APPROPRIATED IN ARTICLE II OF EACH
     4  GENERAL APPROPRIATION ACT RELATING TO THE JUDICIAL DEPARTMENT
     5  AMONG ANY OF THE LINE ITEMS CONTAINED WITHIN THOSE SECTIONS
     6  EXCEPT FOR LINE ITEMS FOR THE JUDICIAL CONDUCT BOARD AND THE
     7  COURT OF JUDICIAL DISCIPLINE. IN ORDER TO AVOID A DEFICIT IN ANY
     8  LINE ITEMS IN THOSE SECTIONS, THE SUPREME COURT MAY ALSO
     9  TRANSFER FUNDS DEPOSITED INTO THE JUDICIAL COMPUTER SYSTEM
    10  AUGMENTATION ACCOUNT TO ANY LINE ITEMS IN THOSE SECTIONS. THE
    11  SUPREME COURT MAY ALSO TRANSFER EXCESS FUNDS APPROPRIATED IN
    12  THOSE SECTIONS TO THE JUDICIAL COMPUTER SYSTEM AUGMENTATION
    13  ACCOUNT DURING THE LAST MONTH OF EACH FISCAL YEAR. IF THE
    14  SUPREME COURT MAKES A TRANSFER UNDER THIS SECTION, THE SUPREME
    15  COURT SHALL GIVE WRITTEN NOTIFICATION TO THE SECRETARY OF THE
    16  BUDGET AND CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS
    17  COMMITTEE OF THE SENATE AND THE CHAIRMAN AND MINORITY CHAIRMAN
    18  OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES
    19  TEN DAYS PRIOR TO ANY TRANSFER. THIS SECTION SHALL NOT APPLY TO
    20  THE APPROPRIATION RELATING TO COUNTY COURT REIMBURSEMENT OF EACH
    21  GENERAL APPROPRIATION ACT FOR GUN COURTS.
    22     SECTION 8.  THE ACT IS AMENDED BY ADDING ARTICLES TO READ:
    23                           ARTICLE XVII-H
    24                  2008-2009 BUDGET IMPLEMENTATION
    25                            SUBARTICLE A
    26                       PRELIMINARY PROVISIONS
    27  SECTION 1701-H.  APPLICABILITY.
    28     EXCEPT AS SPECIFICALLY PROVIDED IN THIS ARTICLE, THIS ARTICLE
    29  APPLIES TO THE GENERAL APPROPRIATION ACT OF 2008 AND, AS
    30  APPROPRIATE, ALL OTHER APPROPRIATION ACTS OF 2008.
    20080S1297B2302                 - 20 -     

     1  SECTION 1702-H.  DEFINITIONS AND ABBREVIATIONS.
     2     (A)  DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES WHEN USED
     3  IN THIS ARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
     4  SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
     5     "GENERAL APPROPRIATION ACT."  THE ACT OF       , 2008 (P.L.
     6    , NO.  ), KNOWN AS THE GENERAL APPROPRIATION ACT OF 2008.
     7     "SECRETARY."  THE SECRETARY OF THE BUDGET OF THE
     8  COMMONWEALTH.
     9     (B)  ABBREVIATIONS.--THE FOLLOWING ABBREVIATIONS WHEN USED IN
    10  THIS ARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
    11  SECTION:
    12     "AIDS."  ACQUIRED IMMUNE DEFICIENCY SYNDROME.
    13     "ARC."  APPALACHIAN REGIONAL COMMISSION.
    14     "BG."  BLOCK GRANT.
    15     "CCDFBG."  CHILD CARE AND DEVELOPMENT FUND BLOCK GRANT.
    16     "CSBG."  COMMUNITY SERVICES BLOCK GRANT.
    17     "DCSI."  DRUG CONTROL AND SYSTEMS IMPROVEMENT FORMULA GRANT
    18  PROGRAM.
    19     "DFSC."  DRUG FREE SCHOOLS AND COMMUNITIES ACT.
    20     "DOE."  DEPARTMENT OF ENERGY.
    21     "EEOC."  EQUAL EMPLOYMENT OPPORTUNITY COMMISSION.
    22     "EPA."  ENVIRONMENTAL PROTECTION AGENCY.
    23     "ESEA."  ELEMENTARY AND SECONDARY EDUCATION ACT.
    24     "FEMA."  FEDERAL EMERGENCY MANAGEMENT AGENCY.
    25     "FTA."  FEDERAL TRANSIT ADMINISTRATION.
    26     "HUD."  DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.
    27     "LIHEABG."  LOW-INCOME HOME ENERGY ASSISTANCE BLOCK GRANT.
    28     "LSTA."  LIBRARY SERVICES AND TECHNOLOGY ACT.
    29     "MCHSBG."  MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT.
    30     "MHSBG."  MENTAL HEALTH SERVICES BLOCK GRANT.
    20080S1297B2302                 - 21 -     

     1     "MR."  MENTAL RETARDATION.
     2     "PAFE."  PENNSYLVANIA AGRICULTURAL FOOD EXPOSITION.
     3     "PHHSBG."  PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT.
     4     "RSAT."  RESIDENTIAL SUBSTANCE ABUSE TREATMENT.
     5     "SABG."  SUBSTANCE ABUSE BLOCK GRANT.
     6     "SCDBG."  SMALL COMMUNITIES DEVELOPMENT BLOCK GRANT.
     7     "SDA."  SERVICE DELIVERY AREA.
     8     "SSBG."  SOCIAL SERVICES BLOCK GRANT.
     9     "TANF."  TEMPORARY ASSISTANCE FOR NEEDY FAMILIES.
    10     "TANFBG."  TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK
    11  GRANT.
    12     "TEFAP."  TEMPORARY EMERGENCY FOOD ASSISTANCE PROGRAM.
    13     "WIA."  WORKFORCE INVESTMENT ACT.
    14     "WIC."  WOMEN, INFANTS AND CHILDREN PROGRAM.
    15  SECTION 1703-H.  WARRANTS (RESERVED).
    16                            SUBARTICLE B
    17                        EXECUTIVE DEPARTMENT
    18  SECTION 1711-H.  GOVERNOR (RESERVED).
    19  SECTION 1712-H.  EXECUTIVE OFFICES (RESERVED).
    20  SECTION 1713-H.  LIEUTENANT GOVERNOR (RESERVED).
    21  SECTION 1714-H.  ATTORNEY GENERAL (RESERVED).
    22  SECTION 1715-H.  AUDITOR GENERAL (RESERVED).
    23  SECTION 1716-H.  TREASURY DEPARTMENT.
    24     IN MAKING EXPENDITURES FROM THE APPROPRIATION FOR GENERAL
    25  GOVERNMENT OPERATIONS, NO MORE THAN 50% OF THE APPROPRIATION MAY
    26  BE SPENT PRIOR TO JANUARY 21, 2009.
    27  SECTION 1717-H.  DEPARTMENT OF AGING (RESERVED).
    28  SECTION 1718-H.  DEPARTMENT OF AGRICULTURE (RESERVED).
    29  SECTION 1719-H.  DEPARTMENT OF COMMUNITY AND ECONOMIC
    30                     DEVELOPMENT.
    20080S1297B2302                 - 22 -     

     1     (A)  APPROPRIATIONS.--THE FOLLOWING SHALL APPLY TO
     2  APPROPRIATIONS FOR THE DEPARTMENT OF COMMUNITY AND ECONOMIC
     3  DEVELOPMENT IN THE GENERAL APPROPRIATION ACT:
     4         (1)  GRANTS FROM FUNDS APPROPRIATED FOR COMMUNITY
     5     REVITALIZATION AND ASSISTANCE SHALL BE AWARDED ONLY AFTER
     6     PROGRAM GUIDELINES, SCHEDULES AND APPLICATION PROCEDURES ARE
     7     ESTABLISHED BY THE DEPARTMENT AND PUBLISHED IN THE
     8     PENNSYLVANIA BULLETIN.
     9         (2)  FUNDS APPROPRIATED FOR SMALL BUSINESS DEVELOPMENT
    10     CENTERS SHALL BE ALLOCATED TO THE SMALL BUSINESS DEVELOPMENT
    11     CENTERS AND THE STATE DIRECTOR'S OFFICE IN THE SAME
    12     PROPORTION AS ALLOCATED FOR FISCAL YEAR 2007-2008.
    13     (B)  BIOTECHNOLOGY COMMERCIALIZATION.--
    14         (1)  THERE IS ESTABLISHED WITHIN THE TOBACCO SETTLEMENT
    15     FUND THE BIOTECHNOLOGY COMMERCIALIZATION ACCOUNT.
    16         (2)  MONEY IN THE ACCOUNT SHALL BE DISTRIBUTED TO CENTERS
    17     IN EQUAL AMOUNTS. THE DEPARTMENT MAY APPROVE APPLICATIONS TO
    18     AWARD MONEY IN THE ACCOUNT FOR INVESTMENTS IN OR GRANTS TO
    19     CENTERS TO SUPPORT THEIR COMMERCIALIZATION ACTIVITIES IN
    20     ACCORDANCE WITH STANDARDS FOR INVESTMENT SET FORTH IN SECTION
    21     305 OF THE ACT OF JUNE 26, 2001 (P.L.755, NO.77), KNOWN AS
    22     THE TOBACCO SETTLEMENT ACT. IF A CENTER RECEIVES AN
    23     INVESTMENT OR GRANT UNDER THIS PARAGRAPH, THE ANNUAL REPORT
    24     SUBMITTED UNDER SECTION 1703(J)(2) OF THE TOBACCO SETTLEMENT
    25     ACT BY THE CENTER SHALL INCLUDE THE FOLLOWING:
    26             (I)  A LIST OF ACTIVITIES UNDERTAKEN BY THE CENTER IN
    27         THE PRIOR YEAR TO ENTER OR DEVELOP MARKETS FOR
    28         INVENTIONS, PATENTS, PRODUCTS OR OTHER INTELLECTUAL
    29         PROPERTY.
    30             (II)  THE AMOUNT OF MONEY EXPENDED BY EACH FOR-PROFIT
    20080S1297B2302                 - 23 -     

     1         OR NONPROFIT ORGANIZATION IN THE PRECEDING YEAR ON
     2         COMMERCIALIZATION SUPPORTED BY THE CENTER AND THE AMOUNT
     3         OF ANY RETURN OF INVESTMENT RECEIVED BY THE CENTER FROM
     4         THE EXPENDITURES.
     5             (III)  THE AMOUNT OF MONEY EACH FOR-PROFIT OR
     6         NONPROFIT ORGANIZATION ANTICIPATES SPENDING ON A
     7         COMMERCIALIZATION ACTIVITY SUPPORTED BY THE CENTER IN THE
     8         CURRENT YEAR AND THE ANTICIPATED RETURN ON INVESTMENT TO
     9         THE CENTER FROM THE MONEY SPENT.
    10             (IV)  THE NAME OF ANY OTHER ORGANIZATION THAT HAS
    11         COMMITTED FUNDING TO COMMERCIALIZATION PROJECTS OF THE
    12         CENTER AND TYPE AND AMOUNT OF THE FUNDING.
    13             (V)  A LIST OF POTENTIAL MARKETS FOR EACH BIOSCIENCE
    14         PRODUCT SUPPORTED BY THE CENTER AND ALL TARGET
    15         POPULATIONS THAT MAY BENEFIT FROM COMMERCIALIZATION OF
    16         THE PRODUCT.
    17             (VI)  OTHER INFORMATION DEEMED APPROPRIATE BY THE
    18         DEPARTMENT.
    19         (3)  EARNINGS OF CENTERS IN EXCESS OF $100,000,000 SHALL
    20     BE REALLOCATED TO THE ACCOUNT FOR USE IN SUCCEEDING YEARS.
    21         (4)  THE FOLLOWING APPLY TO THE TOBACCO SETTLEMENT
    22     INVESTMENT BOARD:
    23             (I)  THE BOARD SHALL ESTABLISH REASONABLE
    24         REQUIREMENTS FOR THE PRUDENT INVESTMENT OF THE FUNDS IN
    25         THE ACCOUNT AND IN THE HEALTH ENDOWMENT ACCOUNT FOR LONG-
    26         TERM HOPE.
    27             (II)  FUNDS RECEIVED FROM HEALTH VENTURE INVESTMENT
    28         FROM THE HEALTH VENTURE INVESTMENT ACCOUNT SHALL BE
    29         ALLOCATED TO THE HEALTH ENDOWMENT ACCOUNT FOR LONG-TERM
    30         HOPE FOR ALTERNATIVE INVESTMENTS IN SUCCEEDING YEARS BY
    20080S1297B2302                 - 24 -     

     1         THE BOARD.
     2         (5)  THE SUM OF $6,000,000 FROM THE MACHINERY AND
     3     EQUIPMENT LOAN FUND IS TRANSFERRED TO THE ACCOUNT AND IS
     4     APPROPRIATED TO THE DEPARTMENT FOR THE PURPOSES SET FORTH IN
     5     PARAGRAPH (2). THE SUM OF $6,000,000 IS TRANSFERRED FROM THE
     6     FUND TO THE HEALTH VENTURE INVESTMENT ACCOUNT AND IS
     7     APPROPRIATED FOR THE PURPOSES SET FORTH UNDER PARAGRAPH
     8     (4)(II).
     9         (6)  DEFINITIONS.--AS USED IN THIS SUBSECTION, THE
    10     FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO
    11     THEM IN THIS PARAGRAPH:
    12         "ACCOUNT."  THE BIOTECHNOLOGY COMMERCIALIZATION ACCOUNT
    13     ESTABLISHED IN PARAGRAPH (1).
    14         "CENTER."  A REGIONAL BIOTECHNOLOGY RESEARCH CENTER
    15     ESTABLISHED UNDER CHAPTER 17 OF THE ACT OF JUNE 26, 2001
    16     (P.L.755, NO.77), KNOWN AS THE TOBACCO SETTLEMENT ACT.
    17         "COMMERCIALIZATION."  AN ACTIVITY WHICH ASSISTS A FOR-
    18     PROFIT OR NOT-FOR-PROFIT BIOSCIENCE ORGANIZATION IN THE
    19     JURISDICTION OF A CENTER IN THE TESTING, PRODUCTION,
    20     MARKETING, LICENSING OR SALE OF A BIOSCIENCE PRODUCT OR WHICH
    21     LEADS TO TESTING, ENHANCES ACCESS TO OR CREATES MARKETS FOR
    22     PRODUCTION, LICENSING OR SALE OF A BIOSCIENCE PRODUCT. THE
    23     TERM INCLUDES LEGAL AND BUSINESS CONSULTING SERVICES AND
    24     EXPENSES, ASSESSMENT OF THE PATENTABILITY OF BIOSCIENCE
    25     PRODUCTS, OBTAINING PATENT PROTECTION IN THE UNITED STATES
    26     AND INTERNATIONALLY AND NEGOTIATING LICENSING OR
    27     COMMERCIALIZATION AGREEMENTS WITH LICENSEES AND DEVELOPMENT
    28     OF NEW TECHNOLOGY TRANSFER PROGRAMS.
    29  SECTION 1720-H.  DEPARTMENT OF CONSERVATION AND NATURAL
    30                     RESOURCES (RESERVED).
    20080S1297B2302                 - 25 -     

     1  SECTION 1721-H.  DEPARTMENT OF CORRECTIONS.
     2     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE
     3  DEPARTMENT OF CORRECTIONS IN THE GENERAL APPROPRIATION ACT:
     4         (1)  WHEN MAKING EXPENDITURES FROM APPROPRIATIONS FOR THE
     5     OPERATION OF STATE CORRECTIONAL INSTITUTIONS, THE DEPARTMENT
     6     SHALL GIVE CONSIDERATION TO MINIMUM RELIEF FACTOR VALUES
     7     CALCULATED WHEN DETERMINING STAFFING LEVELS FOR CORRECTIONS
     8     OFFICERS AND FOOD SERVICE INSTRUCTORS AT EACH STATE
     9     CORRECTIONAL INSTITUTION.
    10         (2)  (RESERVED).
    11  SECTION 1722-H.  DEPARTMENT OF EDUCATION.
    12     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE
    13  DEPARTMENT OF EDUCATION IN THE GENERAL APPROPRIATION ACT:
    14         (1)  ANNUAL PAYMENTS FROM INSTITUTIONS OF HIGHER LEARNING
    15     FOR DEFRAYING THE EXPENSES OF DEAF OR BLIND STUDENTS SHALL
    16     NOT EXCEED $500 PER STUDENT.
    17         (2)  (RESERVED).
    18  SECTION 1723-H.  DEPARTMENT OF ENVIRONMENTAL PROTECTION.
    19     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE
    20  DEPARTMENT OF ENVIRONMENTAL PROTECTION IN THE GENERAL
    21  APPROPRIATION ACT:
    22         (1)  APPROPRIATIONS INCLUDE FUNDS FOR THE WATER RESOURCES
    23     TECHNICAL ASSISTANCE CENTER IN AN AMOUNT TO BE DETERMINED BY
    24     THE DEPARTMENT IN COOPERATION WITH THE WATER CONSERVATION
    25     SUBCOMMITTEE OF THE STATEWIDE WATER RESOURCES COMMITTEE.
    26         (2)  (RESERVED).
    27  SECTION 1724-H.  DEPARTMENT OF GENERAL SERVICES (RESERVED).
    28  SECTION 1725-H.  DEPARTMENT OF HEALTH.
    29     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE
    30  DEPARTMENT OF HEALTH IN THE GENERAL APPROPRIATION ACT:
    20080S1297B2302                 - 26 -     

     1         (1)  FUNDS APPROPRIATED FOR LUPUS PROGRAMS SHALL BE
     2     DISTRIBUTED IN THE SAME PROPORTION AS DISTRIBUTED IN FISCAL
     3     YEAR 2007-2008.
     4         (2)  FUNDS APPROPRIATED FOR ARTHRITIS OUTREACH AND
     5     EDUCATION SHALL BE EQUITABLY DISTRIBUTED AMONG THE CENTRAL,
     6     WESTERN AND EASTERN REGIONS OF THIS COMMONWEALTH BASED ON THE
     7     RATIO OF POPULATION SERVED IN EACH REGION TO THE TOTAL
     8     POPULATION SERVED IN THIS COMMONWEALTH.
     9  SECTION 1726-H.  INSURANCE DEPARTMENT (RESERVED).
    10  SECTION 1727-H.  DEPARTMENT OF LABOR AND INDUSTRY.
    11     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE
    12  DEPARTMENT OF LABOR AND INDUSTRY IN THE GENERAL APPROPRIATION
    13  ACT:
    14         (1)  THE APPROPRIATION FOR PAYMENT TO THE VOCATIONAL
    15     REHABILITATION FUND FOR WORK OF THE STATE BOARD OF VOCATIONAL
    16     REHABILITATION INCLUDES $2,584,000 FOR A STATEWIDE
    17     PROFESSIONAL SERVICE PROVIDER ASSOCIATION FOR THE BLIND TO
    18     PROVIDE SPECIALIZED SERVICES AND PREVENTION OF BLINDNESS
    19     SERVICES AND $518,000 TO PROVIDE SPECIALIZED SERVICES AND
    20     PREVENTION OF BLINDNESS SERVICES IN CITIES OF THE FIRST
    21     CLASS.
    22         (2)  FOR THE "REED ACT-UNEMPLOYMENT INSURANCE" AND "REED
    23     ACT-EMPLOYMENT SERVICES AND UNEMPLOYMENT INSURANCE"
    24     APPROPRIATIONS, THE TOTAL AMOUNT WHICH MAY BE OBLIGATED SHALL
    25     NOT EXCEED THE LIMITATIONS UNDER SECTION 903 OF THE SOCIAL
    26     SECURITY ACT (49 STAT. 620, 42 U.S.C. § 1103).
    27  SECTION 1728-H.  DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
    28                     (RESERVED).
    29  SECTION 1729-H.  DEPARTMENT OF PUBLIC WELFARE.
    30     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE
    20080S1297B2302                 - 27 -     

     1  DEPARTMENT OF PUBLIC WELFARE FROM THE GENERAL APPROPRIATION ACT:
     2         (1)  AUTHORIZED TRANSFERS FOR CHILD-CARE SERVICES. THE
     3     FOLLOWING SHALL APPLY:
     4             (I)  THE DEPARTMENT, UPON APPROVAL OF THE SECRETARY,
     5         MAY TRANSFER FEDERAL FUNDS APPROPRIATED FOR TANFBG CHILD
     6         CARE ASSISTANCE TO THE CCDFBG CHILD CARE SERVICES
     7         APPROPRIATION TO PROVIDE CHILD-CARE SERVICES TO
     8         ADDITIONAL LOW-INCOME FAMILIES IF THE TRANSFER OF FUNDS
     9         WILL NOT RESULT IN A DEFICIT IN THE APPROPRIATION. THE
    10         SECRETARY SHALL PROVIDE NOTICE TEN DAYS PRIOR TO A
    11         TRANSFER UNDER THIS SUBPARAGRAPH TO THE CHAIRMAN AND
    12         MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE
    13         SENATE AND THE CHAIRMAN AND MINORITY CHAIRMAN OF THE
    14         APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
    15             (II)  THE DEPARTMENT, UPON APPROVAL OF THE SECRETARY,
    16         MAY TRANSFER FEDERAL FUNDS APPROPRIATED FOR CCDFBG CHILD
    17         CARE ASSISTANCE TO THE CCDFBG CHILD CARE SERVICES
    18         APPROPRIATION TO PROVIDE CHILD-CARE SERVICES TO
    19         ADDITIONAL LOW INCOME FAMILIES PROVIDED THAT THE TRANSFER
    20         OF FUNDS WILL NOT RESULT IN A DEFICIT IN THE
    21         APPROPRIATION. THE SECRETARY SHALL PROVIDE NOTICE TEN
    22         DAYS PRIOR TO A TRANSFER UNDER THIS SUBPARAGRAPH TO THE
    23         CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS
    24         COMMITTEE OF THE SENATE AND THE CHAIRMAN AND THE MINORITY
    25         CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF
    26         REPRESENTATIVES.
    27         (2)  FEDERAL AND STATE MEDICAL ASSISTANCE PAYMENTS. THE
    28     FOLLOWING SHALL APPLY:
    29             (I)  WHEN MAKING PAYMENTS FOR MEDICAL ASSISTANCE
    30         OUTPATIENT OR CAPITATION SERVICES, THE DEPARTMENT SHALL
    20080S1297B2302                 - 28 -     

     1         NOT REQUIRE A RECIPIENT TO OBTAIN A PHYSICIAN REFERRAL IN
     2         ORDER TO RECEIVE CHIROPRACTIC SERVICES.
     3             (II)  NO FUNDS APPROPRIATED FOR APPROVED CAPITATION
     4         PLANS SHALL BE USED TO PAY A PROVIDER WHO FAILS TO SUPPLY
     5         INFORMATION IN A FORM REQUIRED BY THE DEPARTMENT IN ORDER
     6         TO FACILITATE CLAIMS FOR FEDERAL FINANCIAL PARTICIPATION
     7         FOR SERVICES RENDERED TO GENERAL ASSISTANCE CLIENTS.
     8             (III)  FOR FISCAL YEAR 2008-2009, ADDITIONAL FEDERAL
     9         AND STATE INPATIENT FUNDING IS INCLUDED TO PROVIDE FOR
    10         COMMUNITY ACCESS FUND PAYMENTS. PAYMENTS TO HOSPITALS FOR
    11         COMMUNITY ACCESS FUND GRANTS SHALL BE DISTRIBUTED UNDER
    12         THE FORMULAS UTILIZED FOR THESE GRANTS IN FISCAL YEAR
    13         2007-2008.
    14             (IV)  QUALIFYING STATE-RELATED ACADEMIC MEDICAL
    15         CENTERS SHALL NOT RECEIVE ANY LESS FUNDING THAN RECEIVED
    16         FOR THE FISCAL YEAR 2004-2005 STATE APPROPRIATION LEVEL
    17         IF FEDERAL FUNDING FOR ACADEMIC MEDICAL CENTERS IS NOT
    18         MADE AVAILABLE TO THOSE ACADEMIC MEDICAL CENTERS DURING
    19         FISCAL YEAR 2008-2009.
    20             (V)  IF SUPPLEMENTAL FEDERAL FUNDING FOR PHYSICIAN
    21         PRACTICE PLANS IS NOT MADE AVAILABLE DURING FISCAL YEAR
    22         2008-2009, QUALIFYING UNIVERSITIES AND AFFILIATED
    23         PHYSICIAN PRACTICE PLANS SHALL NOT RECEIVE ANY LESS
    24         FUNDING THAN THE AMOUNT RECEIVED FOR THE FISCAL YEAR
    25         2007-2008 STATE APPROPRIATION LEVEL.
    26             (VI)  FUNDS APPROPRIATED FOR MEDICAL ASSISTANCE
    27         TRANSPORTATION SHALL ONLY BE UTILIZED AS A PAYMENT OF
    28         LAST RESORT FOR TRANSPORTATION FOR ELIGIBLE MEDICAL
    29         ASSISTANCE RECIPIENTS.
    30             (VII)  THE DEPARTMENT SHALL CONSIDER PHARMACEUTICAL
    20080S1297B2302                 - 29 -     

     1         SERVICES A COVERED BENEFIT FOR RECIPIENTS WHO ARE
     2         ELIGIBLE FOR SUCH SERVICES AND WHOSE CARE IS MANAGED
     3         THROUGH CONTRACTS BETWEEN THE DEPARTMENT AND MANAGED CARE
     4         CONTRACTORS. PHARMACEUTICAL BENEFITS SHALL REMAIN A
     5         COVERED BENEFIT IN THE CONTRACTS BETWEEN THE DEPARTMENT
     6         AND MANAGED CARE CONTRACTORS FOR FISCAL YEARS 2007-2008
     7         AND 2008-2009. IF THE DEPARTMENT ELECTS TO BID A CONTRACT
     8         FOR FISCAL YEAR 2009-2010 THAT DOES NOT INCLUDE
     9         PHARMACEUTICAL SERVICES AS A COVERED BENEFIT FOR
    10         RECIPIENTS WHOSE CARE IS MANAGED THROUGH CONTRACTS
    11         BETWEEN THE DEPARTMENT AND MANAGED CARE CONTRACTORS, THE
    12         SECRETARY OF PUBLIC WELFARE SHALL DO ALL OF THE
    13         FOLLOWING:
    14                 (A)  BY MARCH 30, NOTIFY IN WRITING THE CHAIR AND
    15             MINORITY CHAIR OF THE APPROPRIATIONS COMMITTEE OF THE
    16             SENATE, THE CHAIR AND MINORITY CHAIR OF THE
    17             APPROPRIATIONS COMMITTEE OF THE HOUSE OF
    18             REPRESENTATIVES, THE CHAIR AND MINORITY CHAIR OF THE
    19             PUBLIC HEALTH AND WELFARE COMMITTEE OF THE SENATE AND
    20             THE CHAIR AND MINORITY CHAIR OF THE HEALTH AND HUMAN
    21             SERVICES COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
    22                 (B)  ADDITIONALLY BID A CONTRACT FOR FISCAL YEAR
    23             2009-2010 THAT DOES INCLUDE PHARMACEUTICAL SERVICES
    24             AS A COVERED BENEFIT FOR RECIPIENTS WHO ARE ELIGIBLE
    25             FOR SUCH SERVICES AND WHOSE CARE IS MANAGED THROUGH
    26             CONTRACTS BETWEEN THE DEPARTMENT AND MANAGED CARE
    27             CONTRACTORS.
    28                 (C)  CONDUCT ANY PROCUREMENT FOR EXISTING OR NEW
    29             ZONES IN A PUBLIC MANNER, INCLUDING PUBLICATION OF
    30             ANY REQUEST FOR PROPOSAL ON THE DEPARTMENT OF PUBLIC
    20080S1297B2302                 - 30 -     

     1             WELFARE'S PUBLICLY ACCESSIBLE INTERNET WEBSITE.
     2             (VIII)  AMOUNTS ALLOCATED FROM FUNDS APPROPRIATED FOR
     3         MEDICAL ASSISTANCE OUTPATIENT SERVICES FOR THE SELECT
     4         PLAN FOR WOMEN PREVENTATIVE HEALTH SERVICES SHALL BE USED
     5         FOR WOMEN'S MEDICAL SERVICES, INCLUDING NONINVASIVE
     6         CONTRACEPTION SUPPLIES.
     7             (IX)  FEDERAL OR STATE FUNDS APPROPRIATED UNDER THE
     8         ACT OF MARCH 24, 2004 (P.L.148, NO.15), KNOWN AS THE
     9         PENNSYLVANIA TRAUMA SYSTEMS STABILIZATION ACT, NOT USED
    10         TO MAKE PAYMENTS TO HOSPITALS QUALIFYING AS LEVEL III
    11         TRAUMA CENTERS SHALL BE USED TO MAKE PAYMENTS TO
    12         HOSPITALS QUALIFYING AS LEVEL I AND II TRAUMA CENTERS.
    13         (3)  BREAST CANCER SCREENING. THE FOLLOWING SHALL APPLY:
    14             (I)  FUNDS APPROPRIATED FOR BREAST CANCER SCREENING
    15         MAY BE USED FOR WOMEN'S MEDICAL SERVICES, INCLUDING
    16         NONINVASIVE CONTRACEPTION SUPPLIES.
    17             (II)  (RESERVED).
    18         (4)  WOMEN'S SERVICE PROGRAMS. THE FOLLOWING SHALL APPLY:
    19             (I)  FUNDS APPROPRIATED FOR WOMEN'S SERVICE PROGRAMS
    20         GRANTS TO NONPROFIT AGENCIES WHOSE PRIMARY FUNCTION IS TO
    21         PROVIDE ALTERNATIVES TO ABORTION SHALL BE EXPENDED TO
    22         PROVIDE SERVICES TO WOMEN UNTIL CHILDBIRTH AND FOR UP TO
    23         12 MONTHS THEREAFTER, INCLUDING FOOD, SHELTER, CLOTHING,
    24         HEALTH CARE, COUNSELING, ADOPTION SERVICES, PARENTING
    25         CLASSES, ASSISTANCE FOR POSTDELIVERY STRESS AND OTHER
    26         SUPPORTIVE PROGRAMS AND SERVICES AND FOR RELATED OUTREACH
    27         PROGRAMS. AGENCIES MAY SUBCONTRACT WITH OTHER NONPROFIT
    28         ENTITIES WHICH OPERATE PROJECTS DESIGNED SPECIFICALLY TO
    29         PROVIDE ALL OR A PORTION OF THESE SERVICES. PROJECTS
    30         RECEIVING FUNDS REFERRED TO IN THIS SUBPARAGRAPH SHALL
    20080S1297B2302                 - 31 -     

     1         NOT PROMOTE, REFER FOR OR PERFORM ABORTIONS OR ENGAGE IN
     2         ANY COUNSELING WHICH IS INCONSISTENT WITH THE
     3         APPROPRIATION REFERRED TO IN THIS SUBPARAGRAPH AND SHALL
     4         BE PHYSICALLY AND FINANCIALLY SEPARATE FROM ANY COMPONENT
     5         OF ANY LEGAL ENTITY ENGAGING IN SUCH ACTIVITIES.
     6             (II)  FUNDS APPROPRIATED FOR WOMEN'S SERVICE PROGRAMS
     7         SHALL BE USED FOR WOMEN'S MEDICAL SERVICES, INCLUDING
     8         NONINVASIVE CONTRACEPTION SUPPLIES.
     9             (III)  FEDERAL FUNDS APPROPRIATED FOR TANFBG
    10         ALTERNATIVES TO ABORTION SHALL BE UTILIZED SOLELY FOR
    11         SERVICES TO WOMEN WHOSE GROSS FAMILY INCOME IS BELOW 185%
    12         OF THE FEDERAL POVERTY GUIDELINES.
    13         (5)  BEHAVIORAL HEALTH SERVICES. ALL AVAILABLE
    14     INTERGOVERNMENTAL TRANSFER FUNDS APPROPRIATED TO AUGMENT
    15     APPROPRIATIONS, INCLUDING PRIOR YEAR CARRYOVER FUNDS, SHALL
    16     BE SPENT PRIOR TO COMMONWEALTH FUNDS.
    17         (6)  COUNTY CHILDREN AND YOUTH PROGRAMS. THE FOLLOWING
    18     SHALL APPLY:
    19             (I)  NO MORE THAN 50% OF FUNDS ALLOCATED FROM THE
    20         STATE APPROPRIATION FOR COUNTY CHILDREN AND YOUTH
    21         PROGRAMS TO EACH COUNTY SHALL BE EXPENDED UNTIL EACH
    22         COUNTY SUBMITS TO THE DEPARTMENT DATA FOR THE PRIOR STATE
    23         FISCAL YEAR, AND UPDATED QUARTERLY, ON THE UNDUPLICATED
    24         CASELOADS, UNDUPLICATED SERVICES AND NUMBER OF
    25         CASEWORKERS BY COUNTY PROGRAM. DATA SHALL BE SUBMITTED IN
    26         A FORM ACCEPTABLE TO THE DEPARTMENT. A COPY OF THE DATA
    27         SHALL BE SENT TO THE CHAIRMAN AND MINORITY CHAIRMAN OF
    28         THE APPROPRIATIONS COMMITTEE OF THE SENATE AND TO THE
    29         CHAIRMAN AND THE MINORITY CHAIRMAN OF THE APPROPRIATIONS
    30         COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
    20080S1297B2302                 - 32 -     

     1             (II)  REIMBURSEMENT FOR CHILDREN AND YOUTH SERVICES
     2         MADE PURSUANT TO SECTION 704.1 OF THE ACT OF JUNE 13,
     3         1967 (P.L.31, NO.21), KNOWN AS THE PUBLIC WELFARE CODE,
     4         SHALL NOT EXCEED THE AMOUNT OF STATE FUNDS APPROPRIATED.
     5         IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT COUNTIES DO
     6         NOT EXPERIENCE ANY ADVERSE FISCAL IMPACT DUE TO THE
     7         DEPARTMENT'S MAXIMIZATION EFFORTS.
     8         (7)  COMMUNITY-BASED FAMILY CENTERS. NO FUNDS
     9     APPROPRIATED FOR COMMUNITY-BASED FAMILY CENTERS MAY BE
    10     CONSIDERED AS PART OF THE BASE FOR CALCULATION OF THE COUNTY
    11     CHILD WELFARE NEEDS-BASED BUDGET FOR A FISCAL YEAR.
    12  SECTION 1730-H.  DEPARTMENT OF REVENUE.
    13     (A)  STATE LOTTERY.--NOTWITHSTANDING THE PROVISIONS OF
    14  SECTION 303(A)(11)(IV) OF THE ACT OF AUGUST 26, 1971 (P.L.351,
    15  NO.91), KNOWN AS THE STATE LOTTERY LAW, THE DEPARTMENT OF
    16  REVENUE MAY DETERMINE AND IMPLEMENT A MIX OF ON-LINE AND INSTANT
    17  GAMES TO MAXIMIZE THE TOTAL DOLLAR AMOUNT OF NET LOTTERY
    18  PROCEEDS FOR THE PURPOSE OF PROVIDING GRANTS OR SERVICES TO
    19  ELIGIBLE PERSONS PURSUANT TO LOTTERY-FUNDED PROGRAMS IN AMOUNTS
    20  NO LESS THAN THE AMOUNTS AUTHORIZED BY THE GOVERNOR FOR THE
    21  FISCAL YEAR OR AS APPROPRIATED IN THE GENERAL APPROPRIATION ACT
    22  FOR THAT FISCAL YEAR IF ALL OF THE FOLLOWING ARE MET:
    23         (1)  THE DEPARTMENT SHALL SUBMIT A REPORT TO THE GOVERNOR
    24     AND THE CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS
    25     COMMITTEE OF THE SENATE AND THE CHAIRMAN AND MINORITY
    26     CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF
    27     REPRESENTATIVES AND THE CHAIRMAN AND MINORITY CHAIRMAN OF THE
    28     AGING AND YOUTH COMMITTEE OF THE SENATE AND THE CHAIRMAN AND
    29     MINORITY CHAIRMAN OF THE AGING AND OLDER ADULT SERVICES
    30     COMMITTEE OF THE HOUSE OF REPRESENTATIVES BY JUNE 1 OF EACH
    20080S1297B2302                 - 33 -     

     1     YEAR. THE REPORT SHALL SET FORTH CURRENT LOTTERY PROFITS AND
     2     THE STATE LOTTERY'S PLAN FOR INCREASING FUTURE PROFITS. THIS
     3     REPORT SHALL BE POSTED ON THE DEPARTMENT'S PUBLICLY
     4     ACCESSIBLE INTERNET WEBSITE.
     5         (2)  THE DEPARTMENT SHALL ENSURE THAT NO LESS THAN 27% OF
     6     TOTAL REVENUE ACCRUING FROM THE SALE OF LOTTERY TICKETS OR
     7     SHARES IS AVAILABLE FOR PROGRAM EXPENDITURES.
     8         (3)  MONTHLY AND ANNUAL FINANCIAL STATEMENTS SHALL BE
     9     HANDLED AS FOLLOWS:
    10             (I)  THE OFFICE OF THE BUDGET, WORKING JOINTLY WITH
    11         THE DEPARTMENT, SHALL MAKE AVAILABLE TO THE GENERAL
    12         ASSEMBLY FINANCIAL STATEMENTS AS OF THE LAST DAY OF EACH
    13         MONTH FOR THE STATE LOTTERY FUND. THE FINANCIAL
    14         STATEMENTS SHALL INCLUDE THE FOLLOWING:
    15                 (A)  A BALANCE SHEET PREPARED USING THE SAME
    16             METHOD OF ACCOUNTING USED TO PRESENT THE FUND IN THE
    17             GOVERNOR'S EXECUTIVE BUDGET.
    18                 (B)  COMPARATIVE MONTHLY BALANCE SHEETS LISTING
    19             THE AMOUNTS FOR THE CURRENT FISCAL YEAR AND THE
    20             AMOUNTS FOR THE SAME MONTH OF THE PRIOR FISCAL YEAR.
    21                 (C)  A MONTHLY STATEMENT OF REVENUES,
    22             EXPENDITURES AND CHANGES IN FUND BALANCE.
    23                 (D)  COMPARATIVE STATEMENTS OF REVENUES,
    24             EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE
    25             FISCAL YEAR-TO-DATE AND PRIOR FISCAL YEAR-TO-DATE.
    26                 (E)  STATEMENTS OF FUNDS AVAILABLE FOR THE MONTH
    27             ENDED AND FOR THE FISCAL YEAR-TO-DATE.
    28                 (F)  A MODIFIED CASH INCOME STATEMENT.
    29             (II)  ANNUAL FINANCIAL STATEMENTS PREPARED IN
    30         ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
    20080S1297B2302                 - 34 -     

     1             (III)  THE MONTHLY AND ANNUAL FINANCIAL STATEMENTS
     2         SHALL BE MADE AVAILABLE ELECTRONICALLY BY THE OFFICE OF
     3         THE BUDGET WITHIN 20 DAYS AFTER THE IMMEDIATELY PRECEDING
     4         MONTH OR WITHIN 90 DAYS OF THE CLOSE OF THE FISCAL YEAR,
     5         AS APPLICABLE.
     6     (B)  EXPIRATION.--EXCEPT FOR SUBSECTION (A)(3), THIS SECTION
     7  SHALL EXPIRE JUNE 30, 2011.
     8  SECTION 1731-H.  DEPARTMENT OF STATE (RESERVED).
     9  SECTION 1732-H.  DEPARTMENT OF TRANSPORTATION (RESERVED).
    10  SECTION 1733-H.  PENNSYLVANIA STATE POLICE.
    11     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE
    12  PENNSYLVANIA STATE POLICE FROM THE GENERAL APPROPRIATION ACT:
    13         (1)  DURING FISCAL YEAR 2008-2009, THE PENNSYLVANIA STATE
    14     POLICE MAY NOT CLOSE A BARRACKS UNTIL THE PENNSYLVANIA STATE
    15     POLICE CONDUCT A PUBLIC HEARING AND PROVIDE 30 DAYS' NOTICE,
    16     WHICH SHALL BE PUBLISHED IN THE PENNSYLVANIA BULLETIN AND IN
    17     AT LEAST TWO LOCAL NEWSPAPERS.
    18         (2)  (RESERVED).
    19  SECTION 1734-H.  STATE CIVIL SERVICE COMMISSION (RESERVED).
    20  SECTION 1735-H.  PENNSYLVANIA EMERGENCY MANAGEMENT AGENCY.
    21     THE PENNSYLVANIA EMERGENCY MANAGEMENT AGENCY SHALL PROVIDE
    22  SEMIANNUAL REPORTS OF ALL GRANTS AWARDED BY THE PENNSYLVANIA
    23  EMERGENCY MANAGEMENT AGENCY FROM FEDERAL DISASTER ASSISTANCE OR
    24  RELIEF FUNDS, HOMELAND SECURITY AND DEFENSE FUNDS, AVIAN
    25  FLU/PANDEMIC PREPAREDNESS OR OTHER PUBLIC HEALTH EMERGENCY FUNDS
    26  TO THE CHAIRMAN AND MINORITY CHAIRMAN OF THE APPROPRIATIONS
    27  COMMITTEE OF THE SENATE AND THE CHAIRMAN AND MINORITY CHAIRMAN
    28  OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
    29  THE REPORTS SHALL INCLUDE INFORMATION RELATING TO THE ENTITY
    30  RECEIVING GRANT MONEY FROM THE PENNSYLVANIA EMERGENCY MANAGEMENT
    20080S1297B2302                 - 35 -     

     1  AGENCY, INCLUDING THE NAME AND ADDRESS OF THE ENTITY, THE AMOUNT
     2  OF THE GRANT, THE DATE OF ISSUANCE AND THE PURPOSE OF THE GRANT.
     3  REPORTS SHALL BE SUBMITTED ON OR BEFORE AUGUST 15 OF EACH YEAR
     4  FOR GRANTS AWARDED DURING THE PERIOD FROM JANUARY 1 THROUGH JUNE
     5  30 AND ON OR BEFORE FEBRUARY 15 OF EACH YEAR FOR GRANTS AWARDED
     6  DURING THE PERIOD FROM JULY 1 THROUGH DECEMBER 31.
     7  SECTION 1736-H.  PENNSYLVANIA FISH AND BOAT COMMISSION
     8                     (RESERVED).
     9  SECTION 1737-H.  STATE SYSTEM OF HIGHER EDUCATION (RESERVED).
    10  SECTION 1738-H.  PENNSYLVANIA HIGHER EDUCATION ASSISTANCE
    11                     AGENCY.
    12     THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE
    13  PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY FROM THE GENERAL
    14  APPROPRIATION ACT:
    15         (1)  MAXIMIZATION OF FUNDS. THE AGENCY SHALL USE FUNDS
    16     APPROPRIATED FOR MATCHING PAYMENTS FOR STUDENT AID FUNDS TO
    17     MAXIMIZE THE RECEIPT OF FEDERAL FUNDS TO THE FULLEST EXTENT
    18     POSSIBLE.
    19         (2)  LIMITATION. NO COLLEGE, UNIVERSITY OR INSTITUTION
    20     RECEIVING A DIRECT APPROPRIATION FROM THE COMMONWEALTH SHALL
    21     BE ELIGIBLE TO PARTICIPATE IN THE INSTITUTIONAL ASSISTANCE
    22     GRANTS PROGRAM.
    23         (3)  AGRICULTURAL LOAN FORGIVENESS. IN DISTRIBUTING FUNDS
    24     APPROPRIATED FOR AGRICULTURAL LOAN FORGIVENESS, THE AGENCY
    25     SHALL GIVE PREFERENCE TO RENEWAL APPLICANTS.
    26  SECTION 1739-H.  PENNSYLVANIA HISTORICAL AND MUSEUM COMMISSION
    27                     (RESERVED).
    28  SECTION 1740-H.  PENNSYLVANIA INFRASTRUCTURE INVESTMENT
    29                     AUTHORITY (RESERVED).
    30  SECTION 1741-H.  ENVIRONMENTAL HEARING BOARD (RESERVED).
    20080S1297B2302                 - 36 -     

     1  SECTION 1742-H.  PENNSYLVANIA BOARD OF PROBATION AND PAROLE.
     2     THE FOLLOWING SHALL APPLY TO THE APPROPRIATION FOR THE
     3  PENNSYLVANIA BOARD OF PROBATION AND PAROLE FROM THE GENERAL
     4  APPROPRIATION ACT:
     5         (1)  (RESERVED).
     6         (2)  (RESERVED).
     7  SECTION 1743-H.  PENNSYLVANIA PUBLIC TELEVISION NETWORK
     8                     COMMISSION (RESERVED).
     9  SECTION 1744-H.  PENNSYLVANIA SECURITIES COMMISSION (RESERVED).
    10  SECTION 1745-H.  STATE TAX EQUALIZATION BOARD (RESERVED).
    11  SECTION 1746-H.  HEALTH CARE COST CONTAINMENT COUNCIL.
    12     THE HEALTH CARE COST CONTAINMENT COUNCIL SHALL SUBMIT A
    13  REPORT TO THE CHAIRMAN AND MINORITY CHAIRMAN OF THE
    14  APPROPRIATIONS COMMITTEE OF THE SENATE AND THE CHAIRMAN AND
    15  MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE
    16  OF REPRESENTATIVES SPECIFYING THE AMOUNT AND SOURCE OF PROCEEDS
    17  RECEIVED FROM THE SALE OF DATA BY THE COUNCIL. PROCEEDS RECEIVED
    18  FROM THE SALE SHALL BE DEPOSITED IN THE GENERAL FUND AND SHALL
    19  NOT BE EXPENDED UNLESS APPROPRIATED BY THE GENERAL ASSEMBLY. THE
    20  REPORT SHALL SUPPLEMENT THE ANNUAL REPORT OF FINANCIAL
    21  EXPENDITURES REQUIRED UNDER SECTION 17.1 OF THE ACT OF JULY 8,
    22  1986 (P.L.408, NO.89), KNOWN AS THE HEALTH CARE COST CONTAINMENT
    23  ACT.
    24  SECTION 1747-H.  STATE ETHICS COMMISSION (RESERVED).
    25  SECTION 1748-H.  STATE EMPLOYEES' RETIREMENT SYSTEM (RESERVED).
    26  SECTION 1749-H.  THADDEUS STEVENS COLLEGE OF TECHNOLOGY
    27                     (RESERVED).
    28  SECTION 1750-H.  PENNSYLVANIA HOUSING FINANCE AGENCY (RESERVED).
    29  SECTION 1751-H.  LIHEABG (RESERVED).
    30  SECTION 1752-H.  BUDGET STABILIZATION RESERVE FUND (RESERVED).
    20080S1297B2302                 - 37 -     

     1                            SUBARTICLE C
     2                       LEGISLATIVE DEPARTMENT
     3                             (RESERVED)
     4                            SUBARTICLE D
     5                        JUDICIAL DEPARTMENT
     6                             (RESERVED)
     7                           ARTICLE XVII-I
     8              2008-2009 RESTRICTIONS ON APPROPRIATIONS
     9                       FOR FUNDS AND ACCOUNTS
    10  SECTION 1701-I.  APPLICABILITY.
    11     EXCEPT AS SPECIFICALLY PROVIDED IN THIS ARTICLE, THIS ARTICLE
    12  APPLIES TO THE GENERAL APPROPRIATION ACT OF 2008 AND, AS
    13  APPROPRIATE, TO ALL OTHER APPROPRIATION ACTS OF 2008.
    14  SECTION 1702-I.  STATE LOTTERY FUND.
    15         (1)  FUNDS APPROPRIATED FOR PENNCARE SHALL NOT BE
    16     UTILIZED FOR ADMINISTRATIVE COSTS BY THE DEPARTMENT OF AGING.
    17         (2)  (RESERVED).
    18  SECTION 1703-I.  ENERGY CONSERVATION AND ASSISTANCE FUND.
    19     NO LESS THAN 75% OF THE APPROPRIATION FOR ENERGY CONSERVATION
    20  PROGRAMS UNDER THE ACT OF JULY 10, 1986 (P.L.1398, NO.122),
    21  KNOWN AS THE ENERGY CONSERVATION AND ASSISTANCE ACT, SHALL BE
    22  USED FOR PROGRAMS LISTED AS PRIORITIES IN SECTION 7(B) OF THE
    23  ENERGY CONSERVATION AND ASSISTANCE ACT.
    24  SECTION 1704-I.  JUDICIAL COMPUTER SYSTEM AUGMENTATION ACCOUNT.
    25     THE SUPREME COURT AND THE COURT ADMINISTRATOR OF PENNSYLVANIA
    26  ARE PROHIBITED FROM AUGMENTING THE AMOUNT APPROPRIATED TO THE
    27  JUDICIAL COMPUTER SYSTEM AUGMENTATION ACCOUNT BY BILLINGS TO
    28  OTHER APPROPRIATIONS TO THE JUDICIAL BRANCH FOR THE STATEWIDE
    29  JUDICIAL COMPUTER SYSTEM OR FOR ANY OTHER PURPOSE.
    30  SECTION 1705-I.  EMERGENCY MEDICAL SERVICES OPERATING FUND
    20080S1297B2302                 - 38 -     

     1                     (RESERVED).
     2  SECTION 1706-I.  STATE STORES FUND (RESERVED).
     3  SECTION 1707-I.  MOTOR LICENSE FUND (RESERVED).
     4  SECTION 1708-I.  HAZARDOUS MATERIAL RESPONSE FUND (RESERVED).
     5  SECTION 1709-I.  MILK MARKETING FUND (RESERVED).
     6  SECTION 1710-I.  HOME INVESTMENT TRUST FUND (RESERVED).
     7  SECTION 1711-I.  TUITION PAYMENT FUND (RESERVED).
     8  SECTION 1712-I.  BANKING DEPARTMENT FUND (RESERVED).
     9  SECTION 1713-I.  FIREARM RECORDS CHECK FUND (RESERVED).
    10  SECTION 1714-I.  BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY
    11                     FUND.
    12     FUNDS ALLOCATED FROM THE APPROPRIATION FOR THE BEN FRANKLIN
    13  CENTERS FOR FISCAL YEAR 2008-2009 SHALL NOT BE LESS THAN THE
    14  ALLOCATION FOR FISCAL YEAR 2007-2008.
    15  SECTION 1715-I.  TOBACCO SETTLEMENT FUND.
    16     (A)  DEPOSITS.--
    17         (1)  NOTWITHSTANDING SECTIONS 303(B)(3) AND (4) AND 306
    18     OF THE ACT OF JUNE 26, 2001 (P.L.755, NO.77), KNOWN AS THE
    19     TOBACCO SETTLEMENT ACT, THE FOLLOWING SHALL APPLY:
    20             (I)  FOR FISCAL YEAR 2008-2009, $15,000,000 OF THE
    21         FUNDS DERIVED UNDER SECTION 303(B)(3) OF THE TOBACCO
    22         SETTLEMENT ACT SHALL BE DEPOSITED INTO THE TOBACCO
    23         SETTLEMENT FUND.
    24             (II)  FOR FISCAL YEAR 2008-2009, $50,000,000 OF THE
    25         FUNDS DERIVED UNDER SECTION 303(B)(4) OF THE TOBACCO
    26         SETTLEMENT ACT SHALL BE DEPOSITED INTO THE FUND.
    27             (III)  FOR FISCAL YEAR 2008-2009, ONE-FOURTH OF THE
    28         MONEY APPROPRIATED UNDER SECTION 306(B)(1)(III) OF THE
    29         TOBACCO SETTLEMENT ACT MAY NOT BE EXPENDED, TRANSFERRED
    30         OR LAPSED BUT SHALL REMAIN IN THE FUND.
    20080S1297B2302                 - 39 -     

     1             (IV)  FOR FISCAL YEAR 2008-2009, ONE-THIRD OF THE
     2         MONEY APPROPRIATED UNDER SECTION 306(B)(1)(VI) OF THE
     3         TOBACCO SETTLEMENT ACT MAY NOT BE EXPENDED, TRANSFERRED
     4         OR LAPSED BUT SHALL REMAIN IN THE FUND.
     5         (2)  MONEY DEPOSITED INTO THE FUND UNDER PARAGRAPH (1)
     6     SHALL BE APPROPRIATED FOR HEALTH-RELATED PURPOSES. IF
     7     APPLICABLE, THE AMOUNT APPROPRIATED UNDER THIS PARAGRAPH
     8     SHALL BE MATCHED BY APPROPRIATED FEDERAL AUGMENTING FUNDS.
     9     (B)  ALLOCATION.--FUNDING FOR LOCAL PROGRAMS UNDER SECTION
    10  708(B) OF THE TOBACCO SETTLEMENT ACT SHALL BE ALLOCATED AS
    11  FOLLOWS:
    12         (1)  THIRTY PERCENT OF GRANT FUNDING TO PRIMARY
    13     CONTRACTORS FOR LOCAL PROGRAMS SHALL BE ALLOCATED EQUALLY
    14     AMONG EACH OF THE 67 COUNTIES.
    15         (2)  THE REMAINING 70% OF GRANT FUNDING TO PRIMARY
    16     CONTRACTORS FOR LOCAL PROGRAMS SHALL BE ALLOCATED ON A PER
    17     CAPITA BASIS OF EACH COUNTY WITH A POPULATION GREATER THAN
    18     60,000. THE PER CAPITA FORMULA SHALL BE APPLIED ONLY TO THAT
    19     PORTION OF THE POPULATION THAT IS GREATER THAN 60,000 FOR
    20     EACH COUNTY.
    21         (3)  BUDGETS SHALL BE DEVELOPED BY EACH PRIMARY
    22     CONTRACTOR TO REFLECT SERVICE PLANNING AND EXPENDITURES IN
    23     EACH COUNTY. EACH PRIMARY CONTRACTOR WILL ENSURE THAT
    24     SERVICES ARE AVAILABLE TO RESIDENTS OF EACH COUNTY AND MUST
    25     EXPEND THE ALLOCATED FUNDS ON A PER-COUNTY BASIS PURSUANT TO
    26     PARAGRAPHS (1) AND (2).
    27         (4)  THE DEPARTMENT OF HEALTH SHALL COMPILE A DETAILED
    28     ANNUAL REPORT OF EXPENDITURES PER COUNTY AND THE SPECIFIC
    29     PROGRAMS OFFERED IN EACH REGION. THIS REPORT SHALL BE MADE
    30     AVAILABLE ON THE DEPARTMENT'S PUBLICLY AVAILABLE INTERNET
    20080S1297B2302                 - 40 -     

     1     WEBSITE 60 DAYS FOLLOWING THE CLOSE OF EACH FISCAL YEAR.
     2         (5)  DURING THE THIRD QUARTER OF THE FISCAL YEAR, FUNDS
     3     WHICH HAVE NOT BEEN SPENT WITHIN A SERVICE AREA MAY BE
     4     REALLOCATED TO SUPPORT PROGRAMMING IN THE SAME REGION.
     5     (C)  TOBACCO SETTLEMENT FUND.--NOTWITHSTANDING SECTION 303(B)
     6  OF THE ACT OF JUNE 26, 2001 (P.L.755, NO.77), KNOWN AS THE
     7  TOBACCO SETTLEMENT ACT, STRATEGIC CONTRIBUTION PAYMENTS RECEIVED
     8  PURSUANT TO THE TOBACCO MASTER SETTLEMENT AGREEMENT SHALL BE
     9  DEPOSITED IN THE FUND AND SHALL BE APPROPRIATED FOR HEALTH-
    10  RELATED PURPOSES. A STRATEGIC CONTRIBUTION PAYMENT RECEIVED IN
    11  FISCAL YEAR 2007-2008 SHALL BE TRANSFERRED FROM THE ENDOWMENT
    12  ACCOUNT FOR LONG-TERM HOPE TO THE FUND AND SHALL BE APPROPRIATED
    13  FOR HEALTH-RELATED PURPOSES. IF APPLICABLE, THE AMOUNT
    14  APPROPRIATED UNDER THIS SUBSECTION SHALL BE MATCHED BY
    15  APPROPRIATED FEDERAL AUGMENTING FUNDS.
    16     (D)  USE OF MONEY FOR LOBBYING PROHIBITED.--NO MONEY DERIVED
    17  FROM AN APPROPRIATION BY THE GENERAL ASSEMBLY FROM THE TOBACCO
    18  SETTLEMENT FUND MAY BE USED FOR THE LOBBYING OF ANY STATE PUBLIC
    19  OFFICIAL.
    20  SECTION 1716-I.  COMMUNITY HEALTH REINVESTMENT RESTRICTED
    21                     ACCOUNT.
    22     (A)  ESTABLISHMENT.--THERE IS ESTABLISHED IN THE STATE
    23  TREASURY A RESTRICTED RECEIPTS ACCOUNT IN THE TOBACCO SETTLEMENT
    24  FUND TO BE KNOWN AS THE COMMUNITY HEALTH REINVESTMENT RESTRICTED
    25  ACCOUNT. INTEREST EARNED ON MONEY IN THE ACCOUNT SHALL REMAIN IN
    26  THE ACCOUNT.
    27     (B)  AGREEMENT ON COMMUNITY HEALTH REINVESTMENT.--EACH
    28  CALENDAR YEAR, A CORPORATION UNDER 40 PA.C.S. CH. 61 (RELATING
    29  TO HOSPITAL PLAN CORPORATIONS) OR 63 (RELATING TO PROFESSIONAL
    30  HEALTH SERVICES PLAN CORPORATIONS) THAT IS A PARTY TO THE
    20080S1297B2302                 - 41 -     

     1  AGREEMENT ON COMMUNITY HEALTH REINVESTMENT ENTERED INTO FEBRUARY
     2  2, 2005, BY THE INSURANCE DEPARTMENT AND THE CAPITAL BLUE CROSS,
     3  HIGHMARK, INC., HOSPITAL SERVICE ASSOCIATION OF NORTHEASTERN
     4  PENNSYLVANIA AND INDEPENDENCE BLUE CROSS, AND PUBLISHED IN THE
     5  PENNSYLVANIA BULLETIN AT 35 PA.B. 4155 (JULY 23, 2005), SHALL
     6  PAY TO THE ACCOUNT THE AMOUNT CALCULATED FOR SUCH CALENDAR YEAR
     7  IN SECTION 4 OF THE AGREEMENT, PUBLISHED AT 35 PA.B. 4156.
     8     (C)  APPROPRIATION.--THE MONEY IN THE ACCOUNT, INCLUDING ALL
     9  INTEREST EARNED, IS APPROPRIATED TO THE INSURANCE DEPARTMENT TO
    10  BE USED IN ACCORDANCE WITH THE AGREEMENT ON COMMUNITY HEALTH
    11  REINVESTMENT DESCRIBED IN SUBSECTION (B).
    12  SECTION 1717-I.  HEALTH CARE PROVIDER RETENTION ACCOUNT
    13                     (RESERVED).
    14  SECTION 1718-I.  (RESERVED).
    15  SECTION 1719-I.  RESTRICTED RECEIPT ACCOUNTS.
    16     (A)  GENERAL PROVISIONS.--THE SECRETARY MAY CREATE RESTRICTED
    17  RECEIPT ACCOUNTS FOR THE PURPOSE OF ADMINISTERING FEDERAL GRANTS
    18  ONLY FOR THE PURPOSES DESIGNATED IN THIS SECTION.
    19     (B)  DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT.--THE
    20  FOLLOWING RESTRICTED RECEIPT ACCOUNTS MAY BE ESTABLISHED FOR THE
    21  DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT:
    22         (1)  ARC HOUSING REVOLVING LOAN PROGRAM.
    23         (2)  (RESERVED).
    24     (C)  DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES.--THE
    25  FOLLOWING RESTRICTED RECEIPT ACCOUNTS MAY BE ESTABLISHED FOR THE
    26  DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES:
    27         (1)  FEDERAL AID TO VOLUNTEER FIRE COMPANIES.
    28         (2)  FEDERAL LAND AND WATER CONSERVATION FUND ACT.
    29         (3)  NATIONAL FOREST RESERVE ALLOTMENT.
    30         (4)  FEDERAL LAND AND WATER CONSERVATION FUND ACT -
    20080S1297B2302                 - 42 -     

     1     CONSERVATION AND NATURAL RESOURCES.
     2     (D)  DEPARTMENT OF EDUCATION.--THE FOLLOWING RESTRICTED
     3  RECEIPT ACCOUNTS MAY BE ESTABLISHED FOR THE DEPARTMENT OF
     4  EDUCATION:
     5         (1)  EDUCATION OF THE DISABLED - PART C.
     6         (2)  LSTA - LIBRARY GRANTS.
     7         (3)  THE PENNSYLVANIA STATE UNIVERSITY FEDERAL AID.
     8         (4)  EMERGENCY IMMIGRATION EDUCATION ASSISTANCE.
     9         (5)  EDUCATION OF THE DISABLED - PART D.
    10         (6)  HOMELESS ADULT ASSISTANCE PROGRAM.
    11         (7)  SEVERELY HANDICAPPED.
    12         (8)  MEDICAL ASSISTANCE REIMBURSEMENTS TO LOCAL EDUCATION
    13     AGENCIES.
    14     (E)  DEPARTMENT OF ENVIRONMENTAL PROTECTION.--THE FOLLOWING
    15  RESTRICTED RECEIPT ACCOUNTS MAY BE ESTABLISHED FOR THE
    16  DEPARTMENT OF ENVIRONMENTAL PROTECTION:
    17         (1)  FEDERAL WATER RESOURCES PLANNING ACT.
    18         (2)  FLOOD CONTROL PAYMENTS.
    19         (3)  SOIL AND WATER CONSERVATION ACT - INVENTORY OF
    20     PROGRAMS.
    21     (F)  DEPARTMENT OF HEALTH.--THE FOLLOWING RESTRICTED RECEIPT
    22  ACCOUNTS MAY BE ESTABLISHED FOR THE DEPARTMENT OF HEALTH:
    23         (1)  SHARE LOAN PROGRAM.
    24         (2)  (RESERVED).
    25     (G)  DEPARTMENT OF TRANSPORTATION.--THE FOLLOWING RESTRICTED
    26  RECEIPT ACCOUNTS MAY BE ESTABLISHED FOR THE DEPARTMENT OF
    27  TRANSPORTATION:
    28         (1)  CAPITAL ASSISTANCE ELDERLY AND HANDICAPPED PROGRAMS.
    29         (2)  RAILROAD REHABILITATION AND IMPROVEMENT ASSISTANCE.
    30         (3)  RIDESHARING/VAN POOL PROGRAM - ACQUISITION.
    20080S1297B2302                 - 43 -     

     1     (H)  PENNSYLVANIA EMERGENCY MANAGEMENT AGENCY.--THE FOLLOWING
     2  RESTRICTED RECEIPT ACCOUNTS MAY BE ESTABLISHED FOR THE
     3  PENNSYLVANIA EMERGENCY MANAGEMENT AGENCY:
     4         (1)  RECEIPTS FROM FEDERAL GOVERNMENT - DISASTER RELIEF -
     5     DISASTER RELIEF ASSISTANCE TO STATE AND POLITICAL
     6     SUBDIVISIONS.
     7         (2)  (RESERVED).
     8     (I)  PENNSYLVANIA HISTORICAL AND MUSEUM COMMISSION.--THE
     9  FOLLOWING RESTRICTED RECEIPT ACCOUNTS MAY BE ESTABLISHED FOR THE
    10  PENNSYLVANIA HISTORICAL AND MUSEUM COMMISSION:
    11         (1)  FEDERAL GRANT - NATIONAL HISTORIC PRESERVATION ACT
    12     (PUBLIC LAW 89-665, 80 STAT. 915).
    13         (2)  (RESERVED).
    14     (J)  EXECUTIVE OFFICES.--THE FOLLOWING RESTRICTED RECEIPT
    15  ACCOUNTS MAY BE ESTABLISHED FOR THE EXECUTIVE OFFICES:
    16         (1)  RETIRED EMPLOYEES MEDICARE PART D.
    17         (2)  JUSTICE ASSISTANCE.
    18         (3)  JUVENILE ACCOUNTABILITY INCENTIVE.
    19  SECTION 1720-I.  STATE GAMING FUND.
    20     (A)  DEDUCTION OF CERTAIN APPROPRIATIONS.--NOTWITHSTANDING
    21  THE PROVISIONS OF SECTION 504(C)(1) OF THE ACT OF JUNE 27, 2006
    22  (1ST SP.SESS., P.L.1873, NO.1), KNOWN AS THE TAXPAYER RELIEF
    23  ACT, UNRESTRICTED FUNDS APPROPRIATED TO THE PENNSYLVANIA GAMING
    24  CONTROL BOARD FROM THE STATE GAMING FUND SHALL BE DEDUCTED FROM
    25  THE AMOUNT TRANSFERRED TO THE PROPERTY TAX RELIEF RESERVE FUND
    26  UNDER SECTION 504(B) OF THE TAXPAYER RELIEF ACT AND LOANED TO
    27  THE PENNSYLVANIA GAMING CONTROL BOARD FOR PAYMENT OF THE BOARD'S
    28  ADMINISTRATIVE AND OPERATING EXPENSES FOR THE FISCAL YEAR
    29  COMMENCING JULY 1, 2008. FUNDS LOANED TO THE BOARD UNDER THIS
    30  SECTION AND SECTION 1720-G SHALL BE REPAID FROM THE ACCOUNTS
    20080S1297B2302                 - 44 -     

     1  ESTABLISHED UNDER 4 PA.C.S. § 1401 (RELATING TO SLOT MACHINE
     2  LICENSEE DEPOSITS) IN ACCORDANCE WITH SUBSECTION (B).
     3     (B)  ASSESSMENT FOR REPAYMENT.--NOTWITHSTANDING THE
     4  PROVISIONS OF 4 PA.C.S. § 1901.1 (RELATING TO REPAYMENTS TO
     5  STATE GAMING FUND), THE PENNSYLVANIA GAMING CONTROL BOARD SHALL
     6  ASSESS SLOT MACHINE LICENSEES FOR REPAYMENT OF FUNDS TRANSFERRED
     7  AND LOANED TO THE BOARD UNDER SUBSECTION (A) AND SECTION 1720-G
     8  FROM THE STATE GAMING FUND IN ACCORDANCE WITH 4 PA.C.S. § 1402
     9  (RELATING TO GROSS TERMINAL REVENUE DEDUCTIONS) FOR REPAYMENT TO
    10  THE PROPERTY TAX RELIEF RESERVE FUND AT SUCH TIME AS AT LEAST 11
    11  SLOT MACHINE LICENSES HAVE BEEN ISSUED AND 11 LICENSED GAMING
    12  ENTITIES HAVE COMMENCED THE OPERATION OF SLOT MACHINES. THE
    13  BOARD SHALL ADOPT A REPAYMENT SCHEDULE THAT ASSESSES TO EACH
    14  SLOT MACHINE LICENSEE COSTS FOR THE REPAYMENT OF AMOUNTS
    15  APPROPRIATED UNDER THIS SECTION IN AN AMOUNT THAT IS
    16  PROPORTIONAL TO EACH SLOT MACHINE LICENSEE'S GROSS TERMINAL
    17  REVENUE.
    18     (C)  PROPERTY TAX RELIEF.--
    19         (1)  NOTWITHSTANDING THE PROVISIONS OF SECTION 504 OF THE
    20     TAXPAYER RELIEF ACT, UNTIL THE LOAN TO THE PENNSYLVANIA
    21     GAMING CONTROL BOARD UNDER SUBSECTION (A) AND SECTION 1720-G
    22     IS REPAID, THE SECRETARY OF THE BUDGET IS AUTHORIZED TO
    23     PROVIDE FOR PROPERTY TAX RELIEF UNDER SECTION 503(D) OF THE
    24     TAXPAYER RELIEF ACT, REGARDLESS OF WHETHER THE AMOUNT
    25     DEPOSITED IN THE PROPERTY TAX RELIEF RESERVE FUND IS LESS
    26     THAN REQUIRED BY SECTION 504 OF THE TAXPAYER RELIEF ACT.
    27         (2)  NOTWITHSTANDING THE PROVISIONS OF 4 PA.C.S. §
    28     1901.1, BEGINNING JANUARY 1, 2011, IF THE SECRETARY OF THE
    29     BUDGET DETERMINES THAT THE MONEYS IN THE PROPERTY TAX RELIEF
    30     RESERVE FUND ARE NEEDED FOR PROPERTY TAX RELIEF, THE
    20080S1297B2302                 - 45 -     

     1     SECRETARY SHALL NOTIFY THE PENNSYLVANIA GAMING CONTROL BOARD
     2     AND UPON NOTIFICATION, THE BOARD SHALL IMMEDIATELY ASSESS
     3     EACH SLOT MACHINE LICENSEE FOR THE REPAYMENT OF OUTSTANDING
     4     LOANS IN AN AMOUNT THAT IS PROPORTIONAL TO EACH SLOT MACHINE
     5     LICENSEE'S GROSS TERMINAL REVENUE.
     6     (D)  OTHER APPROPRIATIONS SOLELY FROM ASSESSMENT.--
     7         (1)  ALL FUNDS FOR THE OPERATION OF THE PENNSYLVANIA
     8     STATE POLICE, DEPARTMENT OF REVENUE AND ATTORNEY GENERAL ARE
     9     APPROPRIATED SOLELY FROM AN ASSESSMENT ON GROSS TERMINAL
    10     REVENUE FROM ACCOUNTS UNDER 4 PA.C.S. § 1401 IN AN AMOUNT
    11     EQUAL TO THAT APPROPRIATED BY THE GENERAL ASSEMBLY FOR FISCAL
    12     YEAR 2008-2009. THE PENNSYLVANIA STATE POLICE, ATTORNEY
    13     GENERAL OR DEPARTMENT OF REVENUE SHALL NOT ASSESS ANY CHARGE,
    14     FEE, COST OF OPERATIONS OR OTHER PAYMENT FROM A LICENSED
    15     GAMING ENTITY IN EXCESS OF AMOUNTS APPROPRIATED FOR FISCAL
    16     YEAR 2008-2009, UNLESS SPECIFICALLY AUTHORIZED BY LAW.
    17         (2)  THIS SUBSECTION SHALL NOT APPLY TO ANY VOLUNTARY
    18     PAYMENT MADE BY A NEW SLOT MACHINE LICENSEE IN ACCORDANCE
    19     WITH SIMILAR PAYMENTS VOLUNTARILY MADE BY EXISTING LICENSEES.
    20     SECTION 9.  REPEALS ARE AS FOLLOWS:
    21         (1)  THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER
    22     PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE ADDITION OF
    23     SECTION 409 OF THE ACT.
    24         (2)  THE ACT OF MAY 21, 1923 (P.L.288, NO.184), ENTITLED
    25     "AN ACT TO BETTER SECURE ALL BONDS, STOCKS, MORTGAGES, OR
    26     OTHER SECURITIES DEPOSITED WITH THE STATE TREASURER, BY
    27     PROVIDING FOR THEIR INSPECTION, EXAMINATION, AND
    28     VERIFICATION, AND THE VERIFICATION OF THE BOOKS, CONTAINING A
    29     RECORD OF SUCH BONDS, STOCKS, MORTGAGES, OR OTHER SECURITIES,
    30     BY THE AUDITOR GENERAL OR HIS AGENTS," IS REPEALED.
    20080S1297B2302                 - 46 -     

     1     SECTION 10.  THIS ACT SHALL APPLY AS FOLLOWS:
     2         (1)  THE AMENDMENT OF SECTION 1702-A OF THE ACT SHALL
     3     APPLY RETROACTIVELY TO JUNE 30, 2008.
     4         (2)  THE ADDITION OF ARTICLE XVII-A, SUBARTICLE G OF THE
     5     ACT SHALL APPLY RETROACTIVELY TO DECEMBER 18, 2007.
     6     SECTION 11.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
















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