THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HORNAMAN, DEASY, BARRAR, BOBACK, B. BOYLE, CALTAGIRONE, CARROLL, DeLUCA, FABRIZIO, FLECK, FREEMAN, GEORGE, GOODMAN, GROVE, HARHAI, HESS, JOHNSON, KORTZ, KOTIK, MAHONEY, MICOZZIE, MILLER, MIRABITO, MURPHY, PETRARCA, PYLE, REICHLEY, ROAE, SAINATO, SCAVELLO, SIMMONS, K. SMITH, STABACK, STURLA, SWANGER, READSHAW, SANTARSIERO, RAVENSTAHL, BROOKS, MURT, QUINN, GIBBONS, EVERETT, VULAKOVICH, DAVIS, FARRY AND ROCK, JANUARY 20, 2011

AS REPORTED FROM COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 1, 2011   

AN ACT

Providing for municipal volunteer fire company, volunteer

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ambulance service and volunteer rescue company service

incentives.

Amending Title 35 (Health and Safety) of the Pennsylvania

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Consolidated Statutes, providing for incentives for municipal

volunteers of fire companies and emergency medical services

agencies.

TABLE OF CONTENTS

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Chapter 1.  Preliminary Provisions

Section 101.  Short title.

Section 102.  Purpose.

Section 103.  Definitions.

Chapter 3.  Municipal Tax Credit

Section 301.  Program authorization.

Section 302.  Claim.

Section 302.1.  Real property tax credit.

Section 303.  Limitations.

Chapter 5.  Volunteer Service Credit

Section 501.  Volunteer service credit program.

Section 502.  Service record.

Section 503.  Certification.

Chapter 30.  Miscellaneous Provisions

Section 3001.  Penalties for false reporting.

Section 3002.  Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

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PRELIMINARY PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Municipal

Volunteers of Fire Companies, Ambulance Services and Rescue

Companies Incentive Act.

Section 102.  Purpose.

The purpose of this act is to authorize municipalities to

enact a tax credit against an active volunteer's earned income

and property tax liability as a financial incentive to:

(1)  Indicate the municipality's acknowledgment of the

value of and the absence of any public cost for volunteer

fire protection and ambulance and rescue services provided by

active volunteers.

(2)  To encourage other individuals to newly volunteer or

for former volunteers to consider rejoining as active

volunteers in a volunteer fire company, ambulance service or

rescue company.

Section 103.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Active volunteer."  A volunteer for a volunteer fire

company, volunteer ambulance service or volunteer rescue company 

who has complied with the requirements of the volunteer service

credit program and who is certified under section 503.

"Commissioner."  The State Fire Commissioner of the

Commonwealth.

"Department."  The Department of Revenue of the Commonwealth.

"Earned income tax."  A tax on earned income and net profits

levied under chapter 3 of the act of December 31, 1965 (P.L.

1257, No.511), known as The Local Tax Enabling Act.

"Governing body."  A city council, borough council,

incorporated town council, board of township commissioners,

board of township supervisors, governing council of a home rule

municipality or optional plan municipality or a governing

council of any similar purpose government which may be created

by statute after the effective date of this section.

"Local Tax Enabling Act."  The act of December 31, 1965 (P.L.

1257, No.511), known as The Local Tax Enabling Act.

"Municipality."  A city, borough, incorporated town or

township located in this Commonwealth.

"Tax credit."  The tax credit granted under section 301 or

302.1.

"Volunteer."  A member of a volunteer fire company, volunteer

ambulance service or volunteer rescue company.

"Volunteer ambulance service."  Any nonprofit chartered

corporation, association or organization located in this

Commonwealth, which is licensed by the Department of Health and

is not associated or affiliated with any hospital and which is

regularly engaged in the provision of emergency medical

services, including basic life support or advanced life support

services and advanced life support squads as defined in 28 Pa.

Code § 1005.1 (relating to general provisions). The term shall

not include any corporation, association or organization that is

primarily engaged in the operation of invalid coaches which are

intended for the routine transport of persons who are

convalescent or otherwise nonambulatory and do not ordinarily

require emergency medical treatment while in transit.

"Volunteer fire company."  A nonprofit chartered corporation,

association or organization located in this Commonwealth that

provides fire protection services and may offer other voluntary

emergency services within this Commonwealth.

"Volunteer rescue company."  A nonprofit chartered

corporation, association or organization located in this

Commonwealth that provides rescue services as part of the

response to fires and/or vehicle accidents within this

Commonwealth.

"Volunteer service credit program."  The program established

under section 501 to determine the active status of a volunteer.

CHAPTER 3

MUNICIPAL TAX CREDIT

Section 301.  Program authorization.

(a)  Establishment.--A municipality that levies an earned

income tax may establish by ordinance a tax credit against an

individual's liability imposed under chapter 3 of the Local Tax

Enabling Act for active service as a volunteer.

(b)  Amount.--A municipality must set forth in the ordinance

the amount of the tax credit. If the total earned income tax

liability is less than the amount established by the

municipality, the tax credit shall equal the remaining tax

liability.

(c)  Public notice.--At least 30 days prior to adoption of

the ordinance, the governing body of a municipality shall give

public notice of its intent to adopt an ordinance to establish a

tax credit and conduct at least one public hearing on the issue.

(d)  Specific notice.--A municipality that establishes a tax

credit under subsection (a) shall notify the commissioner in the

manner and pursuant to any schedule prescribed by the

commissioner.

Section 302.  Claim.

(a)  Eligibility.--An individual who satisfies all of the

following criteria may claim a tax credit established under

section 301:

(1)  The individual is subject to an earned income tax

imposed by a municipality that has established a tax credit

under section 301.

(2)  The individual is certified under section 503.

(b)  Return.--A husband or wife may claim any tax credit

provided for under this act when filing a joint return. The tax

return form shall provide a mechanism for separating the

liability of an individual for any earned income tax imposed by

the school district of residence from the liability of an

individual for any earned income tax imposed by the municipality

so that the tax credit may be applied against the individual's

liability for taxes imposed by the municipality.

Section 302.1.  Real property tax credit.

The governing body of a school district may provide, by

ordinance, for a tax credit against real property taxes to be

granted to active volunteer firefighters. The tax credit shall

apply to taxes levied on residential real property owned and

occupied by an active volunteer firefighter who is certified

under section 503. The amount of the tax credit shall be

equivalent to no more than 20% of the tax liability of the

active volunteer firefighter. 

Section 303.  Limitations.

A tax credit established under this act may be used against

only the individual's earned income tax or property tax

liability for the current taxable year.

CHAPTER 5

VOLUNTEER SERVICE CREDIT

Section 501.  Volunteer service credit program.

(a)  Establishment.--Within 90 days of the effective date of

this section, the commissioner shall establish a volunteer

service credit program that establishes the annual requirements

for the designation of a volunteer in active service at a

volunteer fire company, volunteer ambulance service or volunteer

rescue company.

(b)  Activities.--The volunteer service credit system shall

consider the following activities in determining credit toward a

designation of active service:

(1)  The number of emergency calls to which a volunteer

responds.

(2)  The level of training and participation in formal

training and drills for a volunteer.

(3)  The total amount of time expended by a volunteer on

administrative and other support services, including

fundraising and facility or equipment maintenance.

(4)  The involvement in other events or projects that aid

the financial viability, emergency response or operational

readiness of a volunteer fire company, volunteer ambulance

service or volunteer rescue company.

(c)  Guidelines.--The commissioner shall adopt guidelines,

including forms, necessary to implement this section.

Section 502.  Service record.

(a)  Log.--The chief of a volunteer fire company, the

supervisor or chief of a volunteer ambulance service or

volunteer rescue company or their designees shall establish and

maintain a service log that documents the activities of each

volunteer that qualifies for credit toward active service under

the volunteer service credit system and the calculation of the

total credits earned for each volunteer in the volunteer fire

company, volunteer ambulance service or volunteer rescue

company.

(b)  Review.--Service logs established and maintained by

volunteer fire companies, volunteer ambulance services or

volunteer rescue companies shall be subject to periodic review

by the Auditor General, the department, the governing body of

the municipality where the volunteer fire company, volunteer

ambulance service or volunteer rescue company is located and the

governing body of a municipality where the volunteer fire

company, volunteer ambulance service or volunteer rescue company 

provides services.

Section 503.  Certification.

(a)  Self-certification.--The active volunteer shall sign and

submit the application to the chief of the volunteer fire

company or the supervisor or chief of the volunteer ambulance

service or volunteer rescue company where the volunteer serves.

(b)  Local sign-off.--The chief and another officer of the

volunteer fire company, the supervisor or chief and another

officer of the volunteer ambulance service or volunteer rescue

company shall sign the application attesting to the individual's

status as an active volunteer. The application shall then be

forwarded to the municipality for final review and processing.

CHAPTER 30

MISCELLANEOUS PROVISIONS

Section 3001.  Penalties for false reporting.

The following shall apply:

(1)  Any person who knowingly makes or conspires to make

a false service record report under this act to the

commissioner commits a misdemeanor of the first degree 

punishable by a fine of $2,500.

(2)  Any person who knowingly provides or conspires to

provide false information that is used to compile a service

record report under this act commits a misdemeanor of the

first degree punishable by a fine of $2,500.

Section 3002.  Effective date.

This act shall take effect in 60 days.

Section 1.  Title 35 of the Pennsylvania Consolidated

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Statutes is amended by adding a chapter to read:

CHAPTER 79

INCENTIVES FOR MUNICIPAL VOLUNTEERS OF FIRE COMPANIES AND

EMERGENCY MEDICAL SERVICES AGENCIES

Subchapter

A.  Preliminary Provisions

B.  Tax Credits

C.  Volunteer Service Credit

D.  Miscellaneous Provisions

SUBCHAPTER A

PRELIMINARY PROVISIONS

Sec.

7901.  Scope of chapter.

7902.  Purpose.

7903.  Definitions.

§ 7901.  Scope of chapter.

This chapter relates to incentives for municipal volunteers

of fire companies and emergency medical services agencies.

§ 7902.  Purpose.

The purpose of this chapter is to authorize municipalities to

enact a tax credit against an active volunteer's earned income

and property tax liability as a financial incentive to:

(1)  Indicate the municipality's acknowledgment of the

value of and the absence of any public cost for volunteer

fire protection and emergency medical services provided by

active volunteers.

(2)  Encourage other individuals to newly volunteer or

for former volunteers to consider rejoining as active

volunteers in a volunteer fire company or emergency medical

services agency.

§ 7903.  Definitions.

The following words and phrases when used in this chapter

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

context clearly indicates otherwise:

"Active volunteer."  A volunteer for a volunteer fire company 

or emergency medical services agency who has complied with the

requirements of the volunteer service credit program and who is

certified under section 7923 (relating to certification).

"Commissioner."  The State Fire Commissioner of the

Commonwealth.

"Earned income tax."  A tax on earned income and net profits

levied under Chapter 3 of the act of December 31, 1965

(P.L.1257, No.511), known as The Local Tax Enabling Act.

"Emergency medical services agency."  As defined in section

8103 (relating to definitions).

"Governing body."  A county council, county board of

commissioners, city council, borough council, incorporated town

council, board of township commissioners, board of township

supervisors, governing council of a home rule municipality or

optional plan municipality, a school district board of directors

or a governing council of any similar purpose government which

may be created by statute after the effective date of this

section and which has adopted a tax credit under this chapter.

"Local Tax Enabling Act."  The act of December 31, 1965

(P.L.1257, No.511), known as The Local Tax Enabling Act.

"Municipality."  A city, borough, incorporated town or

township located in this Commonwealth.

"Tax credit."  The tax credit granted under section 7911

(relating to program authorization) or 7912.1 (relating to real

property tax credit).

"Volunteer."  A member of a volunteer fire company or an

emergency medical services agency.

"Volunteer fire company."  A nonprofit chartered corporation,

association or organization located in this Commonwealth that

provides fire protection services and may offer other voluntary

emergency services within this Commonwealth.

"Volunteer service credit program."  The program established

under section 7921 (relating to volunteer service credit

program) to determine the active status of a volunteer.

SUBCHAPTER B

TAX CREDITS

Sec.

7911.  Program authorization.

7912.  Claim.

7912.1.  Real property tax credit.

7913.  Limitations.

§ 7911.  Program authorization.

(a)  Establishment.--A municipality or school district that

levies an earned income tax may establish by ordinance or

resolution a tax credit against an individual's liability

imposed under Chapter 3 of the act of December 31, 1965

(P.L.1257, No.511), known as The Local Tax Enabling Act, for

active service as a volunteer.

(b)  Amount.--A municipality or school district must set

forth in the ordinance or resolution the amount of the tax

credit. If the total earned income tax liability is less than

the amount established, the tax credit shall equal the remaining

tax liability.

(c)  Public notice.--At least 30 days prior to adoption of

the ordinance or resolution, the governing body shall give

public notice of its intent to adopt an ordinance or resolution

to establish a tax credit and conduct at least one public

hearing on the issue.

(d)  Specific notice.--A municipality or school district that

establishes a tax credit under this chapter shall notify the

commissioner in the manner and pursuant to any schedule

prescribed by the commissioner.

§ 7912.  Claim.

(a)  Eligibility.--An individual who satisfies all of the

following criteria may claim a tax credit established under

section 7911 (relating to program authorization):

(1)  The individual is subject to an earned income tax

that has established a tax credit under section 7911.

(2)  The individual is certified under section 7923

(relating to certification).

(b)  Return.--An active volunteer may claim a tax credit

provided for under this subchapter when filing a joint return.

The tax return form shall provide a mechanism for separating the

liability of an individual for any earned income tax imposed by

the school district of residence from the liability of an

individual for any earned income tax imposed by the

municipality.

§ 7912.1.  Real property tax credit.

(a)  School district.--The governing body of a school

district may provide, by resolution, for a tax credit against

real property tax to be granted to an active volunteer. The tax

credit shall apply to tax levied on residential real property

owned and occupied by an active volunteer who is certified under

section 7923 (relating to certification). The amount of the tax

credit shall be equivalent to no more than 20% of the tax

liability of the active volunteer.

(b)  County.--The governing body of a county may provide, by

resolution, for a tax credit against real property taxes to be

granted to active volunteer firefighters. The tax credit shall

apply to taxes levied on residential real property owned and

occupied by an active volunteer firefighter who is certified

under section 7923. The amount of the tax credit shall be

equivalent to no more than 20% of the tax liability of the

active volunteer firefighter.

§ 7913.  Limitations.

A tax credit established under this subchapter may be used

against the active volunteer's earned income tax or property tax

liability for the current taxable year.

SUBCHAPTER C

VOLUNTEER SERVICE CREDIT

Sec.

7921.  Volunteer service credit program.

7922.  Service record.

7923.  Certification.

7924.  Rejection and appeal.

§ 7921.  Volunteer service credit program.

(a)  Establishment.--Within 90 days of the effective date of

this section, the commissioner shall establish a volunteer

service credit program that establishes the annual requirements

for the certification of a volunteer in active service at a

volunteer fire company or an emergency medical services agency.

(b)  Activities.--The volunteer service credit program shall

consider the following activities in determining credit toward a

certification of active service:

(1)  The number of emergency calls to which a volunteer

responds.

(2)  The level of training and participation in formal

training and drills for a volunteer.

(3)  The total amount of time expended by a volunteer on

administrative and other support services, including

fundraising and facility or equipment maintenance.

(4)  The involvement in other events or projects that aid

the financial viability, emergency response or operational

readiness of a volunteer fire company or an emergency medical

services agency.

(c)  Guidelines.--The commissioner shall adopt guidelines,

including forms and applications, necessary to implement this

section.

§ 7922.  Service record.

(a)  Log.--The chief of a volunteer fire company or the

supervisor or chief of an emergency medical services agency or

their designees shall establish and maintain a service log that

documents the activities of each volunteer that qualifies for

credit toward active service under the volunteer service credit

program and the calculation of the total credits earned for each

volunteer in the volunteer fire company or emergency medical

services agency.

(b)  Review.--Service logs established and maintained by

volunteer fire companies or emergency medical services agencies

shall be subject to periodic review by the Auditor General, the

governing body where the volunteer fire company or emergency

medical services agency is located and the governing body where

the volunteer fire company or emergency medical services agency

provides services.

§ 7923.  Certification.

(a)  Self-certification.--The active volunteer shall sign and

submit an application to the chief of the volunteer fire company

or the supervisor or chief of the emergency medical services

agency where the volunteer serves.

(b)  Local sign-off.--The chief and another officer of the

volunteer fire company, the supervisor or chief and another

officer of the emergency medical services agency shall sign the

application attesting to the individual's status as an active

volunteer. The application shall then be forwarded to the

county, municipality or school district, as appropriate, for

final review and processing.

§ 7924.  Rejection and appeal.

(a)  General rule.--A governing body that establishes a tax

credit under this chapter shall adopt, by ordinance or

resolution, a process for rejecting a claim by an active

volunteer who does not satisfy all of the criteria established

under this chapter for each type of tax credit provided under

this chapter.

(b)  Appeal.--An active volunteer shall have the right to

appeal a claim that has been rejected by a governing body. The

governing body shall establish, by ordinance or resolution, the

procedure by which a rejected claim can be appealed.

SUBCHAPTER D

MISCELLANEOUS PROVISIONS

Sec.

7931.  Penalties for false reporting.

§ 7931.  Penalties for false reporting.

The following shall apply:

(1)  Any person who knowingly makes or conspires to make

a false service record report under this chapter to the

commissioner commits a misdemeanor of the first degree

punishable by a fine of $2,500.

(2)  Any person who knowingly provides or conspires to

provide false information that is used to compile a service

record report under this chapter commits a misdemeanor of the

first degree punishable by a fine of $2,500.

Section 2.  This act shall take effect in 60 days.