1Amending Titles 58 (Oil and Gas), 74 (Transportation) and 75
2(Vehicles) of the Pennsylvania Consolidated Statutes, in
3Title 58, repealing expiration; in Title 74, providing for
4organization; further providing for minority and women-owned
5business participation; in sustainable mobility options,
6further providing for definitions; further providing for the
7Public Transportation Trust Fund, for application and
8approval process, for report to Governor and General
9Assembly, for coordination and consolidation; for asset
10improvement program, for programs of Statewide significance
11and for capital improvements program; establishing the
12Alternative Energy Capital Investment Program; providing for
13multimodal transportation funding and for airport operation
14and zoning, providing for first class city consolidated car
15rental facility; providing for traffic signals, for the
16bridge bundling program; in Title 75, in financial
17responsibility, further providing for required financial
18responsibility; in fees, further providing for collection and
19disposition of fees and moneys, for driver's license and
20learner's permit, for certificate of title, for security
21interest, for information concerning drivers and vehicles,
22for certified copies of records and for certificate of
23inspection; in general provisions, further providing for
24obedience to traffic-control devices; in Pennsylvania
25Turnpike, further providing for definitions; repealing
26deposit and distribution of funds; in liquid fuels and fuels
27tax, further providing for definitions; in State highway
28maintenance, further providing for dirt and gravel road
29maintenance; in supplemental funding for municipal highway
30maintenance, further providing for supplemental funding for
31municipal highway maintenance; and in taxes for highway
32maintenance and construction, providing for imposition of tax
33and for allocation of proceeds.

34The General Assembly finds and declares as follows:

1(1) It is the purpose of this act to ensure that a safe
2and reliable system of transportation is available to the
3residents of this Commonwealth.

4(2) The Commonwealth's transportation system includes
5nearly 40,000 miles of roads and 25,000 bridges owned by the
6Commonwealth, nearly 77,000 miles of roads and 12,000 bridges
7owned by counties and municipal governments, 36 fixed-route
8public transportation agencies, 67 railroads, 133 public use
9airports, the Ports of Erie, Philadelphia and Pittsburgh, and
10numerous bicycle and pedestrian facilities.

11(3) The Commonwealth's transportation system provides
12for access to employment, educational services, medical care
13and other life-sustaining services for all residents of this
14Commonwealth, including senior citizens and people with
15disabilities.

16(4) The Department of Transportation of the Commonwealth
17has indicated that 9,000 miles of roads owned by the
18Commonwealth are in poor condition and that 4,400 bridges
19owned by the Commonwealth are rated structurally deficient.
20The State Transportation Advisory Committee has indicated
21that 2,189 bridges exceeding 20 feet in length owned by
22counties and municipalities are rated structurally deficient.

23(5) There is urgent public need to reduce congestion,
24increase capacity, improve safety and promote economic
25efficiency of transportation facilities throughout this
26Commonwealth.

27(6) The Commonwealth has limited resources to fund the
28maintenance and expansion of its transportation facilities.

29(7) The State Transportation Advisory Committee reported
30in 2010 that the Commonwealth's transportation system is

1underfunded by $3,500,000,000 and projected that amount will
2grow to $6,700,000,000 by 2020 without additional financial
3investment by the Commonwealth.

4(8) To ensure the needs of the public are adequately
5addressed, funding mechanisms must be enhanced to sustain the
6Commonwealth's transportation system in the future.

7(9) The utilization of user fees establishes a funding
8source for transportation needs that spreads the costs across
9those who benefit from the Commonwealth's transportation
10system.

11(10) Pursuant to section 11 of Article VIII of the
12Constitution of Pennsylvania, all highway and bridge user
13fees must be used solely for construction, reconstruction,
14maintenance and repair of and safety on public highways and
15bridges and costs and expenses incident thereto.

16(11) In order to ensure a safe and reliable system of
17public transportation, aviation, ports, rail and bicycle and
18pedestrian facilities, other transportation-related user fees
19must be deposited in the Public Transportation Trust Fund and
20the Multimodal Transportation Fund.

21(12) In furtherance of the Commonwealth's energy policy,
22which includes becoming independent from overreliance on
23foreign energy sources, programs must be established to
24promote reliance on or conversion to alternative energy
25sources, including the vast natural gas supply of this
26Commonwealth.

27(13) Recognition and furtherance of all these elements
28is essential to promoting the health, safety and welfare of
29the citizens of this Commonwealth.

30The General Assembly of the Commonwealth of Pennsylvania

1hereby enacts as follows:

2Section 1. Section 2318 of Title 58 of the Pennsylvania
3Consolidated Statutes is repealed:

4[§ 2318. Expiration.

5(a) Notice.--The Secretary of the Commonwealth shall, upon
6the imposition of a severance tax on unconventional gas wells in
7this Commonwealth, submit for publication in the Pennsylvania
8Bulletin notice of the imposition.

9(b) Date.--This chapter shall expire on the date of the
10publication of the notice under subsection (a).]

11Section 2. Title 74 of the Pennsylvania Consolidated
12Statutes is amended by adding a chapter to read:

13CHAPTER 2

14ORGANIZATION

15Sec.

16201. Definitions.

17202. Deputy secretaries.

18§ 201. Definitions.

19The following words and phrases when used in this chapter
20shall have the meanings given to them in this section unless the
21context clearly indicates otherwise:

22"Department." The Department of Transportation of the
23Commonwealth.

24"Secretary." The Secretary of Transportation of the
25Commonwealth.

26§ 202. Deputy secretaries.

27(a) Appointment.--The secretary shall appoint the following
28deputy secretaries:

29(1) Deputy Secretary for Administration.

30(2) Deputy Secretary for Driver and Vehicle Services.

1(3) Deputy Secretary for Highway Administration.

2(4) Deputy Secretary for Multimodal Transportation.

3(5) Deputy Secretary for Planning.

4(b) Administration.--The Deputy Secretary for Administration
5has the powers and duties of the department under law relating
6to all of the following:

7(1) Fiscal affairs.

8(2) Operations analysis and improvement.

9(3) Information services.

10(4) Office services.

11(5) Human resources.

12(6) Equal opportunity.

13(c) Driver and vehicle services.--The Deputy Secretary for
14Driver and Vehicle Services has the powers and duties of the
15department under law relating to all of the following:

16(1) Drivers.

17(2) Vehicles.

18(3) Vehicle and driver safety.

19(4) Services for other modes of transportation.

20(d) Highway administration.--The Deputy Secretary for
21Highway Administration has the powers and duties of the
22department under law relating to all of the following:

23(1) Design of highways and bridges.

24(2) Land acquisition for highways and bridges.

25(3) Construction and reconstruction of highways and
26bridges.

27(4) Maintenance and operation of highways and bridges.

28(5) Highway and bridge safety.

29(e) Multimodal transportation.--The Deputy Secretary for
30Multimodal Transportation has the powers and duties of the

1department under law relating to modes of transportation other
2than highways, except recreational boating and ferry licensing,
3including all of the following:

4(1) Local and public transportation.

5(2) Rail freight.

6(3) Ports and waterways.

7(4) Aviation and airports.

8(f) Planning.--The Deputy Secretary of Planning has the
9powers and duties of the department under law relating to all of
10the following:

11(1) Planning and research.

12(2) Program development and management.

13(3) Services to municipalities.

14Section 3. Section 303 of Title 74 of the Pennsylvania
15Consolidated Statutes is amended to read:

16§ 303. [Minority and women-owned] Diverse business
17participation.

18(a) General rule.--In [administering] bidding and awarding 
19contracts for transportation projects funded pursuant to the
20provisions of this title or Title 75 (relating to vehicles), the
21[department and any local transportation organization]
22contracting entities shall:

23(1) Be responsible for ensuring that all competitive
24contract opportunities issued by the [department or local
25transportation organization] contracting entities seek to
26maximize participation by [minority-owned and women-owned
27businesses and other disadvantaged] diverse businesses.

28(1.1) Include in information and bid documents released
29for bidding or solicitation on all competitive contracting
30opportunities notice to the bidder that:

1(i) The prime contractor shall document and submit
2to the applicable contracting entity all good faith
3efforts to solicit subcontractors from diverse businesses
4during the prebid and bidding process.

5(ii) The prime contractor shall include in the bid
6the name and business address of each subcontractor
7certified as a diverse business that has been solicited
8by the prime contractor in accordance with subparagraph
9(i) and that may or will perform work or render services
10to the prime contractor in connection with the
11performance of the contract. Nothing under this
12subparagraph shall be construed to preclude a prime
13contractor from including in the bid the name and
14business address of a contractor or subcontractor
15registered with the Federal government's System of Award
16Management as a diverse business.

17(iii) The prime contractor may use a joint venture
18with a diverse business or may subcontract work or
19services, including professional services, to a diverse
20business in order to comply with this section.

21(2) [Give] Include in the information and bid documents 
22released for bidding or solicitation under paragraph (1.1), 
23language encouraging contractors to utilize and give
24consideration[, when possible and cost effective,] to
25contractors offering to utilize [minority-owned and women-
26owned businesses and disadvantaged] diverse businesses in the
27selection and award of contracts.

28(3) Ensure that the [department's and local
29transportation organizations'] contracting entities'
30commitment to [the minority-owned and women-owned business

1program] participation by diverse businesses is clearly
2understood and appropriately implemented and enforced by all
3[department and local transportation organization employees]
4applicable contracting entities.

5(4) Designate a responsible official to supervise the
6[department and local transportation organization minority-
7owned and women-owned] contracting entities' diverse business
8program and ensure compliance within the [department or local
9transportation organization] contracting entities.

10(5) [Furnish the Department of General Services, upon
11request, all requested information or assistance.]
12(Reserved).

13(6) [Recommend sanctions to the Secretary of General
14Services,] Impose sanctions as may be appropriate under 62 
15Pa.C.S. § 531 (relating to debarment or suspension), against
16businesses that fail to comply with this section or the
17policies of the Commonwealth [minority-owned and women-owned]
18diverse business [program] programs. This paragraph shall not
19apply to a local transportation organization.

20(7) Ensure that each contract entered into with a prime
21contractor and any other entity engaged in business with a
22contracting entity pursuant to a contract awarded under this
23section includes provisions prohibiting discrimination in
24accordance with 62 Pa.C.S. § 3701 (relating to contract
25provisions prohibiting discrimination).

26(a.1) Additional duties of department.--The department, with
27the assistance of the Disadvantaged Business Enterprise
28Supportive Services Center, shall have the following duties:

29(1) Conduct the necessary and appropriate outreach,
30including using the database available on the Internet

1website of the Department of General Services and the Federal
2Government's System of Award Management database, for
3purposes of identifying diverse businesses in general
4construction, professional services and procurement capable
5of performing contracts subject to this section.

6(2) By October 1, 2014, and each October 1 thereafter,
7submit a report to the chairman and minority chairman of the
8Transportation Committee of the Senate and the chairman and
9minority chairman of the Transportation Committee of the
10House of Representatives summarizing the participation level
11of diverse businesses in all competitive contract
12opportunities issued by the contracting entities. The
13commission or local transportation organization shall
14cooperate with the department to complete the report. The
15report shall include:

16(i) The percentage of participation by diverse
17businesses.

18(ii) The total value of all contracts or
19subcontracts or other procurement contracts executed by
20diverse businesses pursuant to this section in the prior
21year.

22(iii) The number of businesses penalized for
23violating this section.

24(3) Transmit the report under paragraph (2) to the
25Minority Business Development Authority, established under
26the act of July 22, 1974 (P.L.598, No.206), known as the
27Pennsylvania Minority Business Development Authority Act. The
28authority shall review the report to assess the effectiveness
29in advancing this section and to make any recommendations for
30changes in this section deemed necessary or desirable to the

1secretary and the chairman and minority chairman of the
2Transportation Committee of the Senate and the chairman and
3minority chairman of the Transportation Committee of the
4House of Representatives.

5(a.2) Replacement of diverse business.--

6(1) If, at any time during the evaluation of a bid or 
7proposal, the construction of a project or the performance of
8a service pursuant to a bid or proposal being evaluated or a
9contract awarded under this section, it becomes necessary to
10replace a diverse business, the bidder, prime contractor or
11contractor, as appropriate, shall comply with all of the
12following:

13(i) Immediately notify the applicable contracting
14entity of the reason for replacement of the diverse
15business.

16(ii) Receive approval from the contracting entity to
17replace the diverse business. A request by a bidder,
18prime contractor or contractor to replace a diverse
19business shall be approved by the contracting entity
20within seven days of receipt of the request.

21(iii) Upon receipt of the contracting entity's
22approval, replace the diverse business with another 
23diverse business.

24(2) The notifications and approvals required under this
25subsection may be forwarded in writing by mail or by
26electronic mail, read receipt.

27(a.3) Applicability.--The following shall apply to
28contractors and contracts subject to subsection (a):

29(1) The provisions of 62 Pa.C.S. § 2108 (relating to
30compliance with Federal requirements).

1(2) Prompt payment policies between a contractor and
2subcontractor adopted by the Department of General Services
3pursuant to 62 Pa.C.S. Pt. II (relating to general
4procurement provisions).

5(b) Definitions.--As used in this section, the following
6words and phrases shall have the meanings given to them in this
7subsection:

8"Certified." A diverse business that has been validated by a
9third party certifying organization to ensure that the business
10is actually owned, controlled and operated by a diverse
11applicant.

12"Commission." As defined in section 8102 (relating to
13definitions).

14"Contract." As defined in 62 Pa.C.S. § 103 (relating to
15definitions).

16"Contracting entities." The following:

17(1) The Department of Transportation.

18(2) The commission.

19(3) A local transportation organization.

20"Disadvantaged business." A business that is owned or
21controlled by a majority of persons, not limited to members of
22minority groups, who are subject to racial or ethnic prejudice
23or cultural bias.

24"Diverse business." A disadvantaged business, minority-owned
25or women-owned business or service-disabled veteran-owned small
26business or veteran-owned small business. The term includes a
27diverse business certified under the Pennsylvania Unified
28Certification Program.

29"Local transportation organization." Any of the following:

30(1) A political subdivision or a public transportation

1authority, port authority or redevelopment authority
2organized under the laws of this Commonwealth or pursuant to
3an interstate compact or otherwise empowered to render,
4contract for the rendering of or assist in the rendering of
5transportation service in a limited area in this
6Commonwealth, even though it may also render or assist in
7rendering transportation service in adjacent states.

8(2) A nonprofit association that directly or indirectly
9provides public transportation service.

10(3) A nonprofit association of public transportation
11providers operating within this Commonwealth.

12"Minority-owned business." A business owned and controlled
13by a majority of individuals who are African Americans, Hispanic
14Americans, Native Americans, Asian Americans, Alaskans or
15Pacific Islanders.

16"Professional services." An industry of infrequent,
17technical or unique functions performed by independent
18contractors or consultants whose occupation is the rendering of
19such services. The term includes:

20(1) Design professional services as defined in 62
21Pa.C.S. § 901 (relating to definitions).

22(2) Legal services.

23(3) Advertising or public relations services.

24(4) Accounting, auditing or actuarial services.

25(5) Security consultant services.

26(6) Computer and information technology services.

27(7) Insurance underwriting services.

28"Service-disabled veteran-owned small business." As defined
29in 51 Pa.C.S. § 9601 (relating to definitions).

30"Third party certifying organization." An organization that

1certifies a small business, minority-owned business, women-owned
2business or veteran-owned small business as a diverse business.
3The term includes:

4(1) The National Minority Supplier Development Council.

5(2) The Women's Business Enterprise National Council.

6(3) The Small Business Administration.

7(4) The Department of Veterans Affairs.

8"Veteran-owned small business." As defined in 51 Pa.C.S. §
99601 (relating to definitions).

10"Women-owned business." A business owned and controlled by a
11majority of individuals who are women.

12Section 4. The definitions of "base operating allocation"
13and "capital expenditures" in section 1503 of Title 74 are
14amended to read:

15§ 1503.  Definitions.

16The following words and phrases when used in this chapter
17shall have the meanings given to them in this section unless the
18context clearly indicates otherwise:

19* * *

20"Base operating allocation." The total amount of State
21operating assistance, reimbursement in lieu of fares for senior
22passengers and other assistance which was used for operating
23assistance as determined by the department in [fiscal year 2005-
242006] the last full fiscal year that the qualifying local 
25transportation organization received the assistance, including 
26the funds received under section 1517.1 (relating to Alternative 
27Energy Capital Investment Program).

28"Capital expenditures." All costs of capital projects,
29including, but not limited to, the costs of acquisition,
30construction, installation, start-up of operations, improvements

1and all work and materials incident thereto. At the discretion 
2of the department, preventive maintenance expenses, as defined 
3by the Federal Transit Administration, may be deemed eligible as 
4a capital expenditure based on written approval by the 
5department.

6* * *

7Section 5. Section 1506(b)(1), (c) and (e) of Title 74 are
8amended to read:

9§ 1506. Fund.

10* * *

11(b) Deposits to fund by department.--

12(1) The following apply:

13(i) Except as provided under subparagraph (ii), upon
14receipt, the department shall deposit into the fund the 
15revenues received by the department under 75 Pa.C.S. Ch. 
1689 (relating to Pennsylvania Turnpike) and the lease 
17agreement executed between the department and the 
18Pennsylvania Turnpike Commission under 75 Pa.C.S. § 
198915.3 (relating to lease of Interstate 80; related
20agreements) as follows:

21(A) For fiscal year 2007-2008, $250,000,000.

22(B) For fiscal year 2008-2009, $250,000,000.

23(C) For fiscal year 2009-2010, $250,000,000.

24(D) For fiscal year 2010-2011 and each fiscal
25year thereafter, the amount calculated for the
26previous fiscal year, increased by 2.5%.

27(ii) The deposits made to the fund under this
28subsection shall equal [$250,000,000 annually for each
29fiscal year commencing after the expiration of the
30conversion period if the conversion notice is not

1received by the secretary prior to expiration of the
2conversion period as set forth under 75 Pa.C.S. § 
38915.3(3).] $450,000,000 for fiscal years 2013-2014 
4through 2020-2021. No additional payments shall be due 
5following fiscal year 2020-2021.

6* * *

7(c) Other deposits.--The following shall be deposited into
8the fund annually:

9(1) 4.4% of the amount collected under Article II of the
10Tax Reform Code. Revenues under this paragraph shall be
11deposited into the fund by the 20th day of each month for the
12preceding month. The amount deposited under this paragraph is
13estimated to be equivalent to the money available to the
14department from the following sources:

15(i) The Supplemental Public Transportation Account
16established under former section 1310.1 (relating to
17supplemental public transportation assistance funding).

18(ii) The amount appropriated annually by the
19Commonwealth from the General Fund for mass transit
20programs pursuant to a General Appropriations Act.

21(2) An amount of proceeds of Commonwealth capital bonds
22as determined annually by the Secretary of the Budget.

23(3) Revenue in the Public Transportation Assistance Fund
24established under Article XXIII of the Tax Reform Code not
25otherwise dedicated pursuant to law.

26(3.1) If, by July 1, 2021, legislation is not enacted to
27replace the revenue deposited in the fund under subsection
28(b)(1), in fiscal year 2021-2022 and in each fiscal year
29thereafter, the following shall apply:

30(i) An amount equal to that revenue shall be

1deposited in the fund.

2(ii) Notwithstanding any other provision of law, the
3source of the revenue deposited in the fund under this
4paragraph shall be the receipts from the tax collected
5under section 238 of the Tax Reform Code on motor
6vehicles, trailers and semi-trailers.

7(3.2) The revenue deposited in the fund in accordance
8with 75 Pa.C.S. § 3111(a.1)(2)(ii) (relating to obedience to
9traffic control devices).

10(3.3) The revenue deposited in the fund under Chapter 16
11(relating to fair share funding for transportation).

12(3.4) The revenue deposited in the fund under 75 Pa.C.S.
13§ 1786 (relating to required financial responsibility).

14(4) Other appropriations, deposits or transfers to the
15fund.

16* * *

17(e) Program funding amounts.--Subject to available funds,
18the programs established under this chapter shall be funded
19annually as follows:

20(1) For the program established under section 1513
21(relating to operating program), the following amounts shall
22be allocated from the fund:

23(i) All revenues deposited in the fund under
24subsection (b)(1), after allocation of $20,000,000 to the 
25Multimodal Transportation Fund under section 2102(1) 
26(relating to deposits to fund).

27(ii) All revenues deposited in the fund under
28subsection (b)(2).

29(iii) [69.99%] 86.76% of the revenues deposited in
30the fund under subsection (c)(1).

1(iv) All revenues deposited into the fund under
2subsection (c)(3).

3(v) All the revenues deposited in the fund in
4accordance with 75 Pa.C.S. § 1904 (relating to collection
5and disposition of fees and moneys) after the allocation
6of 23% to the Multimodal Transportation Fund under
7section 2102(2).

8(vi) All revenues deposited in the fund under
9subsection (c)(3.1) and (3.4).

10(vii) Fifty percent of the revenues deposited in the
11fund under subsection (c)(3.3).

12(2) (i) [Except as provided under subparagraph (ii),
13for] For the program established under section 1514 (relating
14to asset improvement program):

15(A) By the proceeds of Commonwealth capital
16bonds deposited into the fund under subsection (c)
17(2).

18[(A.1) For fiscal year 2007-2008, $50,000,000
19from the revenues received by the department under 75 
20Pa.C.S. Ch. 89 and the lease agreement executed 
21between the department and the Pennsylvania Turnpike 
22Commission under 75 Pa.C.S. § 8915.3. The amount 
23received by the department under this section shall
24be deposited into the fund prior to distribution and
25shall be in addition to the amounts received under
26subsection (b)(1).

27(B) For fiscal year 2008-2009, $100,000,000 from 
28the revenues received by the department under 75 
29Pa.C.S. Ch. 89 and the lease agreement executed 
30between the department and the Pennsylvania Turnpike
 

1Commission under 75 Pa.C.S. § 8915.3. The amount 
2received by the department under this section shall 
3be deposited into the fund prior to distribution and
4shall be in addition to the amounts received under
5subsection (b)(1).

6(C) For fiscal year 2009-2010, $150,000,000 from
7the revenues received by the department under 75 
8Pa.C.S. Ch. 89 and the lease agreement executed 
9between the department and the Pennsylvania Turnpike 
10Commission under 75 Pa.C.S. § 8915.3. The amount 
11received by the department under this section shall
12be deposited into the fund prior to distribution and
13shall be in addition to the amounts received under
14subsection (b)(1).

15(D) For fiscal year 2010-2011 and each fiscal
16year thereafter, the amount calculated for the prior
17fiscal year increased by 2.5% from the revenues
18received by the department under 75 Pa.C.S. Ch. 89 
19and the lease agreement executed between the 
20department and the Pennsylvania Turnpike Commission 
21under 75 Pa.C.S. § 8915.3. The amount received by the 
22department under this section shall be deposited into 
23the fund prior to distribution and shall be in 
24addition to the amounts received under subsection (b)
25(1).]

26(E) Fifty percent of the revenue deposited in
27the fund under subsection (c)(3.3).

28(F) The revenue deposited in the fund under
29subsection (c)(3.2).

30[(ii) If the conversion notice is not received by

1the secretary prior to the end of the conversion period
2as set forth in 75 Pa.C.S. § 8915.3(3), no additional
3allocation shall be made under subparagraph (i).]

4(3) For the program established under section 1516
5(relating to programs of Statewide significance), 13.24% of
6the revenues deposited in the fund under subsection (c)(1)
7shall be allocated from the fund.

8[(4) For the program established under section 1517
9(relating to capital improvements program), 16.77% of the
10revenues deposited in the fund under subsection (c)(1).
11Additional funds for this program may be provided from the
12funds allocated but not distributed based on the limitation
13set forth under section 1513(c)(3).]

14(5) For the program established under section 1517.1
15(relating to Alternative Energy Capital Investments Program),
16no more than $60,000,000 of the revenues deposited in the
17fund under subsection (c) may be allocated from the fund.

18Section 6. Section 1507(a)(6) and (c) of Title 74 are
19amended and subsection (a) is amended by adding a paragraph to
20read:

21§ 1507. Application and approval process.

22(a) Application.--An eligible applicant that wishes to
23receive financial assistance under this chapter shall submit a
24written application to the department on a form developed by the
25department, which shall include the following:

26* * *

27(6) Evidence satisfactory to the department of the
28commitment for matching funds required under this chapter
29sufficient to match the projected financial assistance
30payments [at the same times that the financial assistance

1payments are to be provided.], provided no later than June 30 
2of the applicable fiscal year. If the evidence required under 
3this paragraph is not provided to the satisfaction of the 
4department, subsequent funding under section 1513 (relating 
5to operating program) shall be withheld until the applicant 
6meets the requirements of this paragraph.

7(6.1) A statement of policy outlining the basic
8principles for the adjustment of fare growth to meet the rate
9of inflation.

10* * *

11(c) Restriction on use of funds.--[Financial] Unless the 
12department grants the award recipient a waiver allowing the 
13funds to be used for a different purpose, financial assistance
14under this chapter shall be used only for activities set forth
15under the financial assistance agreement [unless the department
16grants the award recipient a waiver allowing the funds to be
17used for a different purpose]. The department's regulations
18shall describe circumstances under which it will consider waiver
19requests and shall set forth all information to be included in a
20waiver request. The maximum duration of a waiver shall be one
21year, and a waiver request shall include a plan of corrective
22action to demonstrate that the award recipient does not have an
23ongoing need to use financial assistance funds for activities
24other than those for which funds were originally awarded. The 
25duration of the waiver may not exceed the duration of the plan 
26of corrective action. The department shall monitor 
27implementation of the plan of corrective action. If the plan of 
28corrective action is not implemented by the local transportation 
29organization, the department shall rescind the waiver approval.

30Section 7. Sections 1511 and 1512 of Title 74 are amended to

1read:

2§ 1511. Report to Governor and General Assembly.

3[The following shall apply:

4(1) Except as provided in paragraph (2), the] The
5department shall submit a public passenger transportation
6performance report to the Governor and the General Assembly
7by April 30 of each year, covering the prior fiscal year.

8[(2) The report covering the 2005-2006 fiscal year shall
9be submitted by July 31, 2007.]

10§ 1512. Coordination and consolidation.

11(a) Coordination.--Coordination is required in regions where
12two or more award recipients have services or activities for
13which financial assistance is being provided under this chapter
14to assure that the services or activities are provided
15efficiently and effectively.

16(b) Consolidation and mutual cooperation.--

17(1) The department shall study the feasibility of
18consolidation and mutual cooperation of local transportation
19organizations as a means of reducing annual expense without
20loss of service to the communities. The study shall examine
21the creation of service regions or mutual cooperation pacts
22to determine whether either method would reduce annual
23expenses. The feasibility analysis is to include a cost-
24benefit analysis and operational analysis.

25(2) If the results of the feasibility analysis begun
26after the effective date of this subsection under paragraph
27(1) estimate a net annual savings of at least $2,000,000,
28including all costs associated with any merger, or 25% of the
29local match contribution under section 1513 (relating to
30operating program) at the time of completion of the study,

1the transportation organization and local government may
2implement the recommended action.

3(3) The department shall waive the match increase under
4section 1513 for five fiscal years for the transportation
5organization's participation in the recommended action under
6paragraph (2).

7(c) Funding for merger and consolidation incentives and
8mutual cooperation pacts.--A capital project that is needed to
9support a local transportation organization that has agreed to
10merge and consolidate operations and administration or share
11facilities or staff through a mutual cooperation pact to achieve
12cost and service efficiencies shall be eligible for financial
13assistance under this chapter. The application for financial
14assistance must:

15(1) identify the efficiencies in a merger and
16consolidation plan or mutual cooperation pact; and

17(2) include the expected net dollar savings that will
18result from the merger, consolidation or pact.

19Section 8. Section 1514 of Title 74 is amended by adding a
20subsection to read:

21§ 1514. Asset improvement program.

22* * *

23(e.1) Distribution.--The department shall allocate financial
24assistance under this section on a percentage basis of available
25funds each fiscal year as follows:

26(1) The local transportation organization organized and
27existing under Chapter 17 (relating to metropolitan
28transportation authorities) as the primary provider of public
29passenger transportation for the counties of Philadelphia,
30Bucks, Chester, Delaware and Montgomery shall receive 69.4%

1of the funds available for distribution under this section.

2(2) The local transportation organization organized and
3existing under the act of April 6, 1956 (1955 P.L.1414,
4No.465), known as the Second Class County Port Authority Act,
5as the primary provider of public transportation for the
6county of Allegheny, shall receive 22.6% of the funds
7available for distribution under this section.

8(3) Other local transportation organizations organized
9and existing as the primary providers of public passenger
10transportation for the counties of this Commonwealth not
11identified under paragraph (1) or (2) shall receive 8% of the
12funds available for distribution under this section. The
13department shall allocate the funds under this paragraph
14among the local transportation organizations.

15(4) Notwithstanding paragraphs (1), (2) and (3) and
16before distributing the funds under paragraph (1), (2) or
17(3), the department shall set aside 5% of the funds available
18for distribution under this section for discretionary use and
19distribution by the secretary.

20* * *

21Section 8.1. Section 1516(b) and (e) of Title 74 are amended
22and the section is amended by adding a subsection to read:

23§ 1516. Programs of Statewide significance.

24* * *

25(b) Persons with disabilities.--The department shall
26establish and administer a program providing reduced fares to
27persons with disabilities on community transportation services
28and to provide financial assistance for start-up, administrative
29and capital expenses related to reduced fares for persons with
30disabilities. All of the following shall apply:

1(1) A community transportation system operating in the
2Commonwealth other than in [counties of the first and second
3class] a county of the first class may apply for financial
4assistance under this subsection.

5(2) The department may award financial assistance under
6this subsection for program start-up and for continuing
7capital expenses to offset administrative and capital
8expenses. For community transportation trips made by eligible
9persons with disabilities, financial assistance may be
10awarded to an eligible community transportation system to
11reimburse the system for up to 85% of the fare established
12for the general public for each trip which is outside of
13fixed-route and paratransit service areas and not eligible
14for funding from any other program or funding source. The
15person making the trip or an approved third-party sponsor
16shall contribute the greater of 15% of the fare established
17for the general public or the Americans with Disabilities Act
18complementary paratransit fare.

19* * *

20(e) Technical assistance [and], demonstration and 
21emergency.--The department is authorized to provide financial
22assistance under this section for technical assistance, research
23and short-term demonstration or emergency projects. All of the
24following shall apply:

25(1) A local transportation organization or an agency or
26instrumentality of the Commonwealth may apply to the
27department for financial assistance under this subsection.

28(2) Financial assistance provided under this subsection
29may be used for reimbursement for any approved operating or
30capital costs related to technical assistance and

1demonstration program projects. Financial assistance for
2short-term demonstration projects may be provided at the
3department's discretion on an annual basis based on the level
4of financial commitment provided by the award recipient to
5provide ongoing future funding for the project as soon as the
6project meets the criteria established by the department and
7the award recipient. Financial assistance for this purpose
8shall not be provided for more than three fiscal years.
9Financial assistance may be provided to meet any short-term
10emergency need that requires immediate attention and cannot
11be funded through other sources.

12(3) Financial assistance under this subsection provided
13to a local transportation organization shall be matched by
14local or private cash funding in an amount not less than
153.33% of the amount of the financial assistance being
16provided. The sources of funds for the local match shall be
17subject to the requirements of section 1513(d)(3) (relating
18to operating program).

19(4) As follows:

20(i) For short-term demonstration projects awarded
21financial assistance under this subsection, the
22department shall determine if the demonstration project
23was successful based upon the performance criteria
24established prior to the commencement of the
25demonstration project and approved by the department.

26(ii) If the department determines that the
27demonstration project was successful, the local
28transportation organization or agency or instrumentality
29of the Commonwealth that conducted the demonstration
30project shall be eligible to apply for and receive funds

1under section 1513 to sustain and transition the
2demonstration project into regular public passenger
3transportation service.

4(iii) During the first year in which the
5demonstration project is eligible for and applies for
6financial assistance under section 1513, the local
7transportation organization or agency or instrumentality
8of the Commonwealth that conducted the demonstration
9project and transitioned it to regular public passenger
10transportation service shall be eligible to receive
11financial assistance up to 65% of the transportation
12service's prior fiscal year operating costs or expenses
13for the service as an initial base operating allocation.

14(iv) The initial base operating allocation shall be
15taken from the growth under section 1513 over the prior
16year before distributing the remainder of the formula
17described in section 1513.

18(f) Shared Ride Community Transportation Service Delivery
19Pilot Program.--

20(1) The department may develop and implement a pilot
21program to test and evaluate new models of paying for and
22delivering shared ride and community transportation. The
23goals of the program are as follows:

24(i) Develop a community transportation delivery
25model that can be managed to stay within budget.

26(ii) Develop community transportation service
27standards with need based priorities.

28(iii) Develop a business model and fare structure
29that work across funding programs.

30(iv) Maximize efficiency and effectiveness of the

1services.

2(2) The department shall establish a pilot advisory
3committee to provide guidance and input for pilot planning,
4start up, operations, data collection and post pilot
5evaluation. The committee shall be comprised of the
6following:

7(i) A member appointed by Majority Chair of the
8Transportation Committee of the Senate.

9(ii) A member appointed by Minority Chair of the
10Transportation Committee of the Senate.

11(iii) A member appointed by Majority Chair of
12the Transportation Committee of the House of
13Representatives.

14(iv) A member appointed by Minority Chair of the
15Transportation Committee of the House of
16Representatives.

17(v) Two members from the Pennsylvania Public
18Transit Association appointed by the secretary.

19(vi) A member appointed by the secretary to
20represent people with disabilities.

21(vii) A member appointed by the Secretary of
22Aging to represent senior citizens.

23(viii) A member appointed by the Secretary of
24Public Welfare to represent people using medical
25assistance transportation.

26(ix) A member of the County Commissioners
27Association appointed by the secretary.

28(x) The secretary or a designee.

29(xi) The Secretary of Aging or a designee.

30(xii) The Secretary of the Office of the Budget

1or a designee.

2(xiii) The Secretary of Public Welfare or a
3designee.

4(3) The department shall work with the committee to
5define potential pilot models within 12 months of the
6effective date of this subsection.

7(4) The department shall publish the notice of
8availability of the program models and framework in the
9Pennsylvania Bulletin and receive applications from counties
10and shared-ride community transportation systems interested
11in participating in the program within three months of the
12defining potential pilot models.

13(5) The department may work with the committee to
14redefine the basis for payment using lottery and other State
15funding sources currently used to support community
16transportation programs for selected pilot counties and
17shared-ride community transportation systems to test new
18methods of service delivery and payment. Each project must
19have a business plan with management controls, service
20standards and budget controls. The business plan shall be
21reviewed by the committee prior to being implemented.

22Section 9. Section 1517 of Title 74 is amended to read:

23§ 1517. Capital improvements program.

24(a) Eligibility.--A local transportation organization may
25apply for financial assistance under this section.

26(b) Applications.--The department shall establish the
27contents of the application for the program established under
28this section. The information shall be in addition to
29information required under section 1507 (relating to application
30and approval process).

1(c) Distribution formula.--The department shall award
2financial assistance under this section based on the number of
3passengers. The actual amount awarded to a local transportation
4organization under this subsection shall be calculated as
5follows:

6(1) Multiply the local transportation organization's
7passengers by the total amount of funding available under
8this section.

9(2) Divide the product under paragraph (1) by the sum of
10the passengers for all qualifying local transportation
11organizations.

12(d) Payments.--Financial assistance under this section shall
13be paid to local transportation organizations at least
14quarterly.

15(e) Reduction in financial assistance.--Financial assistance
16provided to a local transportation organization under this
17section shall be reduced by any financial assistance received
18previously under this section which has not been spent or
19committed in a contract within three years of its receipt.

20(f) Certification ends funding.--Financial assistance under
21this section shall cease when the secretary certifies that funds
22are no longer available for the program established under this
23section.

24Section 10. Title 74 is amended by adding a section to read:

25§ 1517.1. Alternative Energy Capital Investment Program.

26(a) Establishment.--The department is authorized to
27establish a competitive grant program to implement capital
28improvements deemed necessary to support conversion of a local
29transportation organization's fleet to an alternative energy
30source, including compressed natural gas.

1(b) Criteria.--The department shall establish criteria for
2awarding grants under this section. Criteria shall, at a
3minimum, include feasibility, cost/benefit analysis and project
4readiness.

5(c) Additional authorization.--Notwithstanding any other
6provisions of this section or other law, the department may use
7funds designated for the program established under subsection
8(a) to supplement a local transit organization's base operating
9allocation under section 1513 (relating to operating program) if
10necessary to stabilize an operating budget and ensure that
11efficient services may be sustained to support economic
12development and job creation and retention.

13Section 11. Title 74 is amended by adding chapters to read:

14CHAPTER 16

15FAIR SHARE FUNDING

16FOR TRANSPORTATION

17Sec.

181601. Scope of chapter.

191602. Definitions.

201603. Imposition of tax.

211604. Registration.

221605. Meters.

231606. Assessments.

241607. Time for assessment.

251608. Extension of assessment period.

261609. Reassessments.

271610. Interest.

281611. Penalties.

291612. Criminal acts.

301613. Abatement of additions or penalties.

11614. Bulk and auction sales.

21615. Collection upon failure to request reassessment, review
3or appeal.

41616. Tax liens.

51617. Tax suit reciprocity.

61618. Service.

71619. Refunds.

81620. Refund petition.

91621. Rules and regulations.

101622. Recordkeeping.

111623. Examinations.

121624. Unauthorized disclosure.

131625. Cooperation with other governments.

141626. Bonds.

151627. Appropriation.

161628. Deposit of proceeds.

17§ 1601. Scope of chapter.

18This chapter relates to additional funding for
19transportation.

20§ 1602. Definitions.

21The following words and phrases when used in this chapter
22shall have the meanings given to them in this section unless the
23context clearly indicates otherwise:

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

25"Natural gas." As defined in 58 Pa.C.S. § 2301 (relating to
26definitions).

27"Person." A natural person or a corporation, fiduciary,
28association or other entity, including the Commonwealth, its
29political subdivisions, instrumentalities and authorities. When
30the term is used to prescribe and impose a penalty or imposing a

1fine or imprisonment, or both, the term includes the members, as
2applied to an association, and the officers, as applied to a
3corporation.

4"Producer." As defined in 58 Pa.C.S. § 2301 (relating to
5definitions).

6"Reporting period." A calendar month in which natural gas is
7severed.

8"Sever." Extract or otherwise remove natural gas from the
9soil or water of this Commonwealth.

10"Taxpayer." A person subject to the tax imposed by this
11chapter.

12"Unconventional gas well." As defined in 58 Pa.C.S. § 2301
13(relating to definitions). The term shall not include a
14vertical gas well.

15"Unit." A thousand cubic feet of natural gas measured at the 
16wellhead at a temperature of 60 degrees Fahrenheit and an 
17absolute pressure of 14.73 pounds per square inch in accordance 
18with American Gas Association Standards and according to Boyle's 
19Law for the measurement of gas under varying pressures with 
20deviations as follows:

21(1) The average absolute atmospheric pressure shall be
22assumed to be 14.4 pounds to the square inch, regardless of
23elevation or location of point of delivery above sea level or
24variations in atmospheric pressure from time to time.

25(2) The temperature of the gas passing the meters shall
26be determined by the continuous use of a recording
27thermometer installed to properly record the temperature of
28gas flowing through the meters. The arithmetic average of the
29temperature recorded each 24-hour day shall be used in
30computing gas volumes. If a recording thermometer is not

1installed, or is installed and not operating properly, an
2average flowing temperature of 60 degrees Fahrenheit shall be
3used in computing gas volume.

4(3) The specific gravity of the gas shall be determined
5annually by tests made by the use of an Edwards or Acme
6gravity balance, or at intervals as found necessary in
7practice. Specific gravity determinations shall be used in
8computing gas volumes.

9(4) The deviation of the natural gas from Boyle's Law
10shall be determined by annual tests or at other shorter
11intervals as found necessary in practice. The apparatus and
12method used in making the test shall be in accordance with
13recommendations of the National Bureau of Standards or Report
14No. 3 of the Gas Measurement Committee of the American Gas
15Association, or amendments thereto. The results of the tests
16shall be used in computing the volume of gas delivered under
17this chapter.

18"Vertical gas well." As defined in 58 Pa.C.S. § 2301
19(relating to definitions).

20"Wellhead meter." A meter that measures the volume of
21natural gas severed from an unconventional gas well.

22§ 1603. Imposition of tax.

23(a) Establishment.--Beginning September 1, 2013, there shall
24be levied a natural gas severance tax payable on every
25unconventional gas well that is required to pay the fee payable
26under 58 Pa.C.S. Ch. 23 (relating to unconventional gas well
27fee).

28(b) Rate.--The tax imposed in subsection (a) shall be 5% of
29the gross value of units severed at the wellhead during a
30reporting period, plus 4¢ per unit severed.

1(c) Return and payment.--Every producer subject to the
2provisions of this chapter shall file a return with the
3department, on a form prescribed by the department, which shall
4include the following:

5(1) The number of natural gas units severed by the
6producer for the reporting period and the gross value
7thereof.

8(2) The amount of tax due under subsection (b).

9(3) Other information reasonably required by the
10department.

11(d) Filing.--The return required by subsection (c) must be
12filed with the department within 15 days following the end of a
13reporting period. The tax is due on the day the return is
14required to be filed under this subsection and becomes
15delinquent if not remitted to the department by the required
16date.

17§ 1604. Registration.

18(a) Application.--Before a producer severs natural gas or
19continues to sever natural gas in this Commonwealth after August
2031, 2013, the producer shall apply to the department for a
21registration certificate. The department may charge an
22application fee to cover the administrative costs associated
23with the application and registration process.

24(b) Issuance.--Except as provided in subsection (c), after
25the receipt of an application and the required application fee,
26the department shall issue a registration certificate to the
27producer. The registration certificate is nonassignable. A
28registrant is required to renew the registration certificate on
29a staggered renewal system established by the department. After
30the initial staggered renewal period, a registration certificate

1is valid for a period of five years.

2(c) Refusal, suspension or revocation.--The department may
3refuse to issue, suspend or revoke a registration certificate if
4the applicant or registrant has not filed required State tax
5reports and paid State taxes not subject to a timely perfected
6administrative or judicial appeal or subject to a duly
7authorized deferred payment plan. The department shall notify
8the applicant or registrant of any refusal, suspension or
9revocation. The notice shall contain a statement that the
10refusal, suspension or revocation may be made public. The notice
11shall be made by first class mail. An applicant or registrant
12aggrieved by the determination of the department may file an
13appeal under the provisions for administrative appeals in the
14act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
15of 1971. In the case of a suspension or revocation which is
16appealed, the registration certificate shall remain valid
17pending a final outcome of the appeals process. Notwithstanding
18sections 274, 353(f), 408(b), 603, 702, 802, 904 and 1102 of the
19Tax Reform Code of 1971 or any other provision of law, if no
20appeal is taken or if an appeal is taken and denied at the
21conclusion of the appeal process the department may disclose, by
22publication or otherwise, the identity of a producer and the
23fact that the producer's registration certificate has been
24refused, suspended or revoked under this subsection. Disclosure
25may include the basis for refusal, suspension or revocation.

26(d) Violation.--A person severing natural gas in this 
27Commonwealth in violation of subsection (a) shall be guilty of a 
28summary offense and shall, upon conviction, be sentenced to pay 
29a fine of not less than $300 nor more than $1,500. In the event 
30the person convicted defaults in the payment of the fine, he
 

1shall be sentenced to imprisonment for not less than five days 
2nor more than 30 days. The penalties imposed by this subsection 
3shall be in addition to any other penalties imposed by this 
4chapter. For purposes of this subsection, the severing of 
5natural gas during any calendar day shall constitute a separate 
6violation. The secretary may designate employees of the 
7department to enforce the provisions of this subsection. The 
8employees shall exhibit proof of and be within the scope of the 
9designation when instituting proceedings as provided by the 
10Pennsylvania Rules of Criminal Procedure.

11(e) Failure to obtain registration certificate.--Failure to
12obtain or hold a valid registration certificate does not relieve
13a person from liability for the tax imposed by this chapter.

14§ 1605. Meters.

15A producer shall provide for and maintain a discrete wellhead 
16meter where natural gas is severed. A producer shall ensure that 
17the meters are maintained according to industry standards. Any 
18wellhead meter installed after the effective date of this 
19section shall be a digital meter.

20§ 1606. Assessments.

21(a) Authorization and requirement.--The department is
22authorized and shall make the inquiries, determinations and
23assessments of the tax imposed under this chapter, including
24interest, additions and penalties imposed under this chapter.

25(b) Notice.--The notice of assessment and demand for payment 
26shall be mailed to the taxpayer. The notice shall set forth the 
27basis of the assessment. The department shall send the notice of 
28assessment to the taxpayer at its registered address via 
29certified mail if the assessment increases the taxpayer's tax 
30liability by $300. Otherwise, the notice of assessment may be
 

1sent via regular mail.

2§ 1607. Time for assessment.

3(a) Requirement.--An assessment as provided under section
41606 (relating to assessments) shall be made within three years
5after the date when the return provided for by section 1603(c)
6(relating to return and payment) is filed or the end of the year
7in which the tax liability arises, whichever shall occur last.
8For the purposes of this subsection and subsection (b), a return
9filed before the last day prescribed for the filing period shall
10be considered as filed on the last day.

11(b) Exception.--If the taxpayer underpays the correct amount
12of the tax due by 25% or more, the tax may be assessed within
13six years after the date the return was filed.

14(c) Intent to evade.--Where no return is filed or where the
15taxpayer files a false or fraudulent return with intent to evade
16the tax imposed by this chapter, the assessment may be made at
17any time.

18(d) Erroneous credit or refund.--Within three years of the
19granting of a refund or credit or within the period in which an
20assessment or reassessment may have been issued by the
21department for the taxable period for which the refund was
22granted, whichever period shall last occur, the department may
23issue an assessment to recover a refund or credit made or
24allowed erroneously.

25§ 1608. Extension of assessment period.

26Notwithstanding the provisions of this chapter, the 
27assessment period may be extended in the event a taxpayer has 
28provided written consent before the expiration of the period 
29provided in section 1607 (relating to time for assessment) for a 
30tax assessment. The amount of tax due may be assessed at any
 

1time within the extended period. The period may be extended 
2further by subsequent written consents made before the 
3expiration of the extended period.

4§ 1609. Reassessments.

5A taxpayer against whom an assessment is made may petition 
6the department for a reassessment under Article XXVII of the act 
7of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 
81971.

9§ 1610. Interest.

10The department shall assess interest on any delinquent tax at
11the rate prescribed under section 806 of the act of April 9,
121929 (P.L.343, No.176), known as The Fiscal Code.

13§ 1611. Penalties.

14The department shall enforce the following penalties:

15(1) A penalty against a producer without a registration 
16certificate required under section 1604 (relating to 
17registration). The penalty shall be $1 for every unit severed 
18without a valid registration certificate. The department may 
19assess this penalty separately from or in conjunction with 
20any assessment of the natural gas severance tax.

21(2) A penalty against a producer for failure to timely
22file a return as required under section 1603(c) (relating to
23return and payment). The penalty shall be 5% of the tax
24liability to be reported on the return for each day beyond
25the due date that the return is not filed.

26(3) In addition to the penalty under paragraph (2), a
27penalty against the producer for a willful failure to timely
28file a return. The penalty shall be 200% of the tax liability
29required to be reported on the return.

30(4) A penalty against a producer for failure to timely

1pay the tax as required by section 1603(d). The penalty shall
2be 5% of the amount of tax due for each day beyond the
3payment date that the tax is not paid.

4§ 1612. Criminal acts.

5(a) Fraudulent return.--Any person with intent to defraud
6the Commonwealth, who willfully makes or causes to be made a
7return required by this chapter which is false, is guilty of a
8misdemeanor and shall, upon conviction, be sentenced to pay a
9fine of not more than $2,000 or to imprisonment for not more
10than three years, or both.

11(b) Other crimes.--

12(1) Except as otherwise provided by subsection (a), a 
13person is guilty of a misdemeanor and shall, upon conviction, 
14be sentenced to pay a fine of not more than $1,000 and costs 
15of prosecution or to imprisonment for not more than one year, 
16or both, for any of the following:

17(i) Willfully failing to timely remit the tax to the
18department.

19(ii) Willfully failing or neglecting to timely file
20a return or report required by this chapter.

21(iii) Refusing to timely pay a tax, penalty or
22interest imposed or provided for by this chapter.

23(iv) Willfully failing to preserve its books, papers
24and records as directed by the department.

25(v) Refusing to permit the department or its
26authorized agents to examine its books, records or
27papers.

28(vi) Knowingly making any incomplete, false or 
29fraudulent return or report.

30(vii) Preventing or attempting to prevent the full

1disclosure of the amount of natural gas severance tax
2due.

3(viii) Providing any person with a false statement 
4as to the payment of the tax imposed under this chapter 
5with respect to any pertinent facts.

6(ix) Making, uttering or issuing a false or
7fraudulent statement.

8(2) The penalties imposed by this section shall be in
9addition to other penalties imposed by this chapter.

10§ 1613. Abatement of additions or penalties.

11Upon the filing of a petition for reassessment or a petition
12for refund by a taxpayer as provided under this chapter,
13additions or penalties imposed upon the taxpayer by this chapter
14may be waived or abated in whole or in part where the petitioner
15establishes that he acted in good faith, without negligence and
16with no intent to defraud.

17§ 1614. Bulk and auction sales.

18A person that sells or causes to be sold at auction, or that 
19sells or transfers in bulk, 51% or more of a stock of goods, 
20wares or merchandise of any kind, fixtures, machinery, 
21equipment, buildings or real estate involved in a business for 
22which the person holds a registration certificate or is required 
23to obtain a registration certificate under the provisions of 
24this chapter shall be subject to the provisions of section 1403 
25of the act of April 9, 1929 (P.L.343, No.176), known as The 
26Fiscal Code.

27§ 1615. Collection upon failure to request reassessment, review
28or appeal.

29(a) Power of department.--The department may collect the tax 
30imposed under this chapter:

1(1) If an assessment of the tax is not paid within 30
2days after notice to the taxpayer when no petition for
3reassessment has been filed.

4(2) Within 60 days of the reassessment, if no petition
5for review has been filed.

6(3) If no appeal has been made, within 30 days of:

7(i) the Board of Finance and Revenue's decision of a
8petition for review; or

9(ii) the expiration of the board's time for acting
10upon the petition.

11(4) In all cases of judicial sales, receiverships,
12assignments or bankruptcies.

13(b) Prohibition.--In a case for the collection of taxes 
14under subsection (a), the taxpayer against whom they were 
15assessed shall not be permitted to set up a ground of defense 
16that might have been determined by the department, the Board of 
17Finance and Revenue or the courts, provided that the defense of 
18failure of the department to mail notice of assessment or 
19reassessment to the taxpayer and the defense of payment of 
20assessment or reassessment may be raised in proceedings for 
21collection by a motion to stay the proceedings.

22§ 1616. Tax liens.

23(a) Lien imposed.--If any taxpayer neglects or refuses to 
24pay the tax imposed under this chapter for which the taxpayer is 
25liable under this chapter after demand, the amount, including 
26interest, addition or penalty, together with additional costs 
27that may accrue, shall be a lien in favor of the Commonwealth 
28upon the real and personal property of the taxpayer but only 
29after the same has been entered and docketed of record by the 
30prothonotary of the county where the property is situated. The
 

1department may, at any time, transmit to the prothonotaries of 
2the respective counties certified copies of all liens imposed by 
3this section. It shall be the duty of the prothonotary receiving 
4the lien to enter and docket the same of record to the office of 
5the prothonotary. The lien shall be indexed as judgments are now 
6indexed. No prothonotary shall require as a condition precedent 
7to the entry of the lien the payment of costs incidental to its 
8entry.

9(b) Priority of lien and effect on judicial sale.--Except
10for the costs of the sale and the writ upon which the sale was
11made and real estate taxes and municipal claims against the
12property, a lien imposed under this section shall have priority
13from the date of its recording and shall be fully paid and
14satisfied out of the proceeds of any judicial sale of property
15subject to the lien, before any other obligation, judgment,
16claim, lien or estate to which the property may subsequently
17become subject, but shall be subordinate to mortgages and other
18liens existing and duly recorded or entered of record prior to
19the recording of the lien.

20(c) No discharge by sale on junior lien.--In the case of a
21judicial sale of property subject to a lien imposed under this
22section, upon a lien or claim over which the lien imposed under
23this section has priority, the sale shall discharge the lien
24imposed under this section to the extent only that the proceeds
25are applied to its payment, and the lien shall continue in full
26force and effect as to the balance remaining unpaid. There shall
27be no inquisition or condemnation upon any judicial sale of real
28estate made by the Commonwealth under the provisions of this
29chapter. The lien shall continue as provided in the act of April
309, 1929 (P.L.343, No.176), known as The Fiscal Code, and a writ

1of execution may directly issue upon the lien without the
2issuance and prosecution to judgment of a writ of scire facias,
3provided that not less than ten days before issuance of any
4execution on the lien, notice of the filing and the effect of
5the lien shall be sent by registered mail to the taxpayer at its
6last known post office address, provided further that the lien
7shall have no effect upon any stock of goods, wares or
8merchandise regularly sold or leased in the ordinary course of
9business by the taxpayer against whom the lien has been entered,
10unless and until a writ of execution has been issued and a levy
11made upon the stock of goods, wares and merchandise.

12(d) Duty of prothonotary.--Any willful failure of any
13prothonotary to carry out any duty imposed upon him by this
14section shall be a misdemeanor. Upon conviction, he shall be
15sentenced to pay a fine of not more than $1,000 and costs of
16prosecution or to imprisonment for not more than one year, or
17both.

18(e) Priority.--Except as provided in this chapter, the
19distribution, voluntary or compulsory, in receivership,
20bankruptcy or otherwise of the property or estate of any person,
21all taxes imposed by this chapter which are due and unpaid and
22are not collectible under the provisions of section 225 of the
23act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
24of 1971, shall be paid from the first money available for
25distribution in priority to all other claims and liens, except
26as the laws of the United States may give priority to a claim to
27the Federal Government. A person charged with the administration
28or distribution of the property or estate who violates the
29provisions of this section shall be personally liable for the
30taxes imposed by this chapter which are accrued and unpaid and

1chargeable against the person whose property or estate is being
2administered or distributed.

3(f) Other remedies.--Subject to the limitations contained in
4this chapter as to the assessment of taxes, nothing contained in
5this section shall be construed to restrict, prohibit or limit
6the use by the department in collecting taxes due and payable of
7another remedy or procedure available at law or equity for the
8collection of debts.

9§ 1617. Tax suit reciprocity.

10The courts of this Commonwealth shall recognize and enforce 
11liabilities for natural gas severance or extraction taxes 
12lawfully imposed by any other state, provided that the other 
13state recognizes and enforces the tax imposed under this 
14chapter.

15§ 1618. Service.

16A producer is deemed to have appointed the Secretary of the 
17Commonwealth its agent for the acceptance of service of process 
18or notice in a proceeding for the enforcement of the civil 
19provisions of this chapter and service made upon the Secretary 
20of the Commonwealth as agent shall be of the same legal force 
21and validity as if the service had been personally made upon the 
22producer. Where service cannot be made upon the producer in the 
23manner provided by other laws of this Commonwealth relating to 
24service of process, service may be made upon the Secretary of 
25the Commonwealth. In that case, a copy of the process or notice 
26shall be personally served upon any agent or representative of 
27the producer who may be found within this Commonwealth or, where 
28no agent or representative may be found, a copy of the process 
29or notice shall be sent via registered mail to the producer at 
30the last known address of its principal place of business, home
 

1office or residence.

2§ 1619. Refunds.

3Under Article XXVII of the act of March 4, 1971 (P.L.6,
4No.2), known as the Tax Reform Code of 1971, the department
5shall refund all taxes, interest and penalties paid to the
6Commonwealth under the provisions of this chapter to which the
7Commonwealth is not rightfully entitled. The refunds shall be
8made to the person or the person's heirs, successors, assigns or
9other personal representatives who paid the tax, provided that
10no refund shall be made under this section regarding a payment
11made by reason of an assessment where a taxpayer has filed a
12petition for reassessment under section 2702 of the Tax Reform
13Code of 1971 to the extent the petition is adverse to the
14taxpayer by a decision which is no longer subject to further
15review or appeal. Nothing in this chapter shall prohibit a
16taxpayer who has filed a timely petition for reassessment from
17amending it to a petition for refund where the petitioner paid
18the tax assessed.

19§ 1620. Refund petition.

20(a) General rule.--Except as provided for in subsection (b),
21the refund or credit of tax, interest or penalty provided for by
22section 1519 (relating to refunds) shall be made only where the
23person who has paid the tax files a petition for refund with the
24department under Article XXVII of the act of March 4, 1971
25(P.L.6, No.2), known as the Tax Reform Code of 1971, within the
26time limits of section 3003.1 of the Tax Reform Code of 1971.

27(b) Natural gas severance tax.--A refund or credit of tax, 
28interest or penalty paid as a result of an assessment made by 
29the department under section 1606 (relating to assessment) shall 
30be made only where the person who has paid the tax files with
 

1the department a petition for a refund with the department under 
2Article XXVII of the Tax Reform Code of 1971 within the time 
3limits of section 3003.1 of the Tax Reform Code of 1971. The 
4filing of a petition for refund under the provisions of this 
5subsection shall not affect the abatement of interest, additions 
6or penalties to which the person may be entitled by reason of 
7his payment of the assessment.

8§ 1621. Rules and regulations.

9The department is charged with the enforcement of the
10provisions of this chapter and is authorized and empowered to
11prescribe, adopt, promulgate and enforce rules and regulations
12not inconsistent with the provisions of this chapter relating to
13any matter or thing pertaining to the administration and
14enforcement of the provisions of this chapter and the collection
15of taxes, penalties and interest imposed by this chapter. The
16department may prescribe the extent, if any, to which any of the
17rules and regulations shall be applied without retroactive
18effect.

19§ 1622. Recordkeeping.

20(a) General rule.--Every person liable for any tax imposed
21by this chapter, or for the collection of the tax, shall keep
22records, including those enumerated in subsection (b), render
23statements, make returns and comply with the rules and
24regulations as the department may prescribe regarding matters
25pertinent to the person's business. Whenever it is necessary,
26the department may require a person, by notice served upon the
27person or by regulations, to make returns, render statements or
28keep records as the department deems sufficient to show whether
29or not a person is liable to pay tax under this chapter.

30(a.1) Records.--Records to be maintained are:

1(1) Wellhead meter charts for each reporting period and
2the meter calibration and maintenance records. If turbine
3meters are in use, the maintenance records will be made
4available to the department upon request.

5(2) Records, statements and other instruments furnished
6to a producer by a person to whom the producer delivers for
7sale, transport or delivery of natural gas.

8(3) Records, statements and other instruments as the
9department may prescribe by regulation.

10(b) Records of nonresidents.--A nonresident who does
11business in this Commonwealth as a producer shall keep adequate
12records of the business and of the tax due as a result. The
13records shall be retained within this Commonwealth unless
14retention outside this Commonwealth is authorized by the
15department. The department may require a taxpayer who desires to
16retain records outside this Commonwealth to assume reasonable
17out-of-State audit expenses.

18(c) Keeping of separate records.--A producer who is engaged
19in another business or businesses which do not involve the
20severing of natural gas taxable under this chapter shall keep
21separate books and records of the businesses so as to show the
22taxable severing of natural gas under this chapter separately
23from other business activities not taxable hereunder. If any
24person fails to keep separate books and records, the person
25shall be liable for a penalty equaling 100% of tax due under
26this chapter for the period where separate records were not
27maintained.

28§ 1623. Examinations.

29The department or any of its authorized agents are authorized
30to examine the books, papers and records of any taxpayer in

1order to verify the accuracy and completeness of any return made
2or, if no return was made, to ascertain and assess the tax
3imposed by this chapter. The department may require the
4preservation of all books, papers and records for any period
5deemed proper by it but not to exceed three years from the end
6of the calendar year to which the records relate. Every taxpayer
7is required to give to the department or its agent the means,
8facilities and opportunity for examinations and investigations
9under this section. The department is further authorized to
10examine any person, under oath, concerning the taxable severing
11of natural gas by any taxpayer or concerning any other matter
12relating to the enforcement or administration of this chapter,
13and to this end may compel the production of books, papers and
14records and the attendance of all persons whether as parties or
15witnesses whom it believes to have knowledge of relevant
16matters. The procedure for the hearings or examinations shall be
17the same as that provided by the act of April 9, 1929 (P.L.343,
18No. 176), known as The Fiscal Code.

19§ 1624. Unauthorized disclosure.

20Any information gained by the department as a result of any
21return, examination, investigation, hearing or verification
22required or authorized by this chapter shall be confidential
23except for official purposes and except in accordance with
24proper judicial order or as otherwise provided by law, and any
25person unlawfully divulging the information shall be guilty of a
26misdemeanor and shall, upon conviction, be sentenced to pay a
27fine of not more than $1,000 and costs of prosecution or to
28imprisonment for not more than one year, or both.

29§ 1625. Cooperation with other governments.

30Notwithstanding the provisions of section 1617 (relating to
 

1tax suit reciprocity), the department may permit the 
2Commissioner of the Internal Revenue Service of the United 
3States, the proper officer of any state or the authorized 
4representative of either of them to inspect the tax returns of 
5any taxpayer, or may furnish to the commissioner or officer or 
6to either of their authorized representative an abstract of the 
7return of any taxpayer, or supply him with information 
8concerning any item contained in any return or disclosed by the 
9report of any examination or investigation of the return of any 
10taxpayer. This permission shall be granted only if the laws of 
11the United States or another state grant substantially similar 
12privileges to the proper officer of the Commonwealth charged 
13with the administration of this chapter.

14§ 1626. Bonds.

15(a) Taxpayer to file bond.--The department may require a 
16nonresident natural person or any foreign corporation, 
17association, fiduciary or other entity, not authorized to do 
18business within this Commonwealth or not having an established 
19place of business in this Commonwealth and subject to the tax 
20imposed by section 1603 (relating to imposition of tax), to file 
21a bond issued by a surety company authorized to do business in 
22this Commonwealth and approved by the Insurance Commissioner as 
23to solvency and responsibility, in amounts as it may fix, to 
24secure the payment of any tax or penalties due or which may 
25become due from a nonresident natural person, corporation, 
26association, fiduciary or other entity whenever it deems it 
27necessary to protect the revenues obtained under this chapter. 
28The department may also require a bond of a person petitioning 
29the department for reassessment in the case of any assessment 
30over $500 or where, in its opinion, the ultimate collection is
 

1in jeopardy. For a period of three years, the department may 
2require a bond of any person who has, on three or more occasions 
3within a 12-month period, either filed a return or made payment 
4to the department more than 30 days late. In the event the 
5department determines a taxpayer is required to file a bond, it 
6shall give notice to the taxpayer specifying the amount of the 
7bond required. The taxpayer shall file the bond within five days 
8after notice is given by the department unless, within five 
9days, the taxpayer shall request in writing a hearing before the 
10secretary or his representative. At the hearing, the necessity, 
11propriety and amount of the bond shall be determined by the 
12secretary or the secretary's representative. The determination 
13shall be final and the taxpayer shall comply with it within 15 
14days after notice is mailed to the taxpayer.

15(b) Securities in lieu of bond.--In lieu of the bond 
16required by this section securities approved by the department 
17or cash in a prescribed amount may be deposited. The securities 
18or cash shall be kept in the custody of the department. The 
19department may apply the securities or cash to the tax imposed 
20by this chapter and interest or penalties due without notice to 
21the depositor. The securities may be sold by the department to 
22pay the tax and/or interest or penalties due at public or 
23private sale upon five days' written notice to the depositor.

24(c) Failure to file bond.--The department may file a lien
25under section 1616 (relating to tax liens) against any taxpayer
26who fails to file a bond when required to do so under this
27section. All funds received upon execution of the judgment on
28the lien shall be refunded to the taxpayer with 3% interest,
29should a final determination be made that it does not owe any
30payment to the department.

1§ 1627. Appropriation.

2The amount of the proceeds from the tax imposed by this
3chapter as shall be necessary for the payment of refunds,
4enforcement or administration under this chapter is hereby
5appropriated to the department for those purposes.

6§ 1628. Deposit of proceeds.

7The proceeds of the tax imposed under section 1603 (relating
8to imposition of tax) and penalties and interest imposed under
9this chapter, less the amounts appropriated under section 1627
10(relating to appropriation) shall be deposited into the Public
11Transportation Trust Fund established in section 1506 (relating
12to fund).

13CHAPTER 21

14MULTIMODAL TRANSPORTATION FUNDING

15Sec.

162101. Multimodal Transportation Fund.

172102. Deposits to fund.

182103. Use of revenue.

192104. Distribution of revenue.

202105. Project selection criteria and agreement.

212106. Local match.

22§ 2101. Multimodal Transportation Fund.

23A special fund is established within the State Treasury to be
24known as the Multimodal Transportation Fund. Money in the fund
25is appropriated to the department for the purposes authorized
26under this chapter.

27§ 2102. Deposits to fund.

28The following shall be deposited in the Multimodal
29Transportation Fund:

30(1) Twenty million dollars annually of the revenue

1deposited in the Public Transportation Trust Fund under
2section 1506(b)(1)(relating to fund).

3(2) Twenty three percent annually of the revenue
4deposited in the fund in accordance with 75 Pa.C.S. § 1904
5(b)(2) (relating to collection and disposition of fees and
6moneys).

7(3) For fiscal year 2015-2016 and each fiscal year
8thereafter, the amount authorized from the oil company
9franchise tax imposed under 75 Pa.C.S. § 9502 (relating to
10imposition of tax) to be expended in accordance with section
1111 of Article VIII of the Constitution of Pennsylvania.

12(4) Other appropriations, deposits or transfers to the
13fund.

14(5) The interest earned on money in the fund.

15§ 2103. Use of revenue.

16Subject to the provisions of section 2104 (relating to
17distribution of revenue), the money in the fund shall be used by
18the department as follows:

19(1) To provide grants through the department's programs
20relating to aviation, rail freight, passenger rail, port and
21waterway, bicycle and pedestrian facilities, road and bridge
22and other transportation modes.

23(2) For costs incurred by the department in the
24administration of programs specified under paragraph (1).

25(3) To incur costs for activities initiated or
26undertaken directly by the department related to the programs
27under paragraph (1).

28§ 2104. Distribution of revenue.

29Upon agreement of the chairman and minority chairman of the
30Transportation Committee of the Senate and the chairman and

1minority chairman of the Transportation Committee of the House
2of Representatives the revenue deposited in the fund shall be
3distributed annually as follows:

4(1) Three million dollars shall be designated for
5programs related to aviation.

6(2) Six million dollars shall be designated for programs
7related to rail freight.

8(3) Six million dollars shall be designated for programs
9related to rail passengers.

10(4) Eight million dollars shall be designated for
11programs related to ports and waterways.

12(5) Two million dollars for programs related to bicycle
13and pedestrian facilities.

14(6) The remaining revenue shall be designated for
15eligible programs under this chapter.

16(7) The department may provide grants from money
17available under paragraph (6) for the following:

18(i) Projects which coordinate local land use with
19transportation assets to enhance existing communities.

20(ii) Streetscape, lighting, sidewalk enhancement,
21pedestrian safety and related projects.

22(iii) Projects improving connectivity or utilization
23of existing transportation assets.

24§ 2105. Project selection criteria and agreement.

25The department shall award grants under this chapter on a
26competitive basis. The department may not reserve, designate or
27set aside a specific level of funds or percentage of funds to an
28applicant prior to the completion of the application process,
29nor may the department designate a set percentage of funds to an
30applicant.

1§ 2106. Local match.

2Financial assistance under section 2104 (relating to
3distribution of revenues) shall be matched by county, municipal
4or private funding in an amount not less than 30% of the non-
5Federal share of the project cost. Matching funds from a county
6or municipality shall only consist of cash contributions
7provided by one or more counties or municipalities.

8Section 12. Chapter 59 of Title 74 is amended by adding a
9subchapter to read:

10SUBCHAPTER C

11FIRST CLASS CITY CONSOLIDATED

12CAR RENTAL FACILITY

13Sec.

145931. Scope of subchapter.

155932. Definitions.

165933. Customer facility charge and rental facility agreement.

17§ 5931. Scope of subchapter.

18This subchapter relates to first class city consolidated
19rental car facilities.

20§ 5932. Definitions.

21The following words and phrases when used in this subchapter
22shall have the meanings given to them in this section unless the
23context clearly indicates otherwise:

24"Airport." A public international airport located partially
25in a city of the first class and partially in an adjacent
26municipality.

27"Airport owner." Any of the following:

28(1) A city which owns and operates an airport.

29(2) An authority created by a city of the first class to
30own and operate an airport or any portion or activity of the

1airport.

2"Airport property." Property owned and operated by an
3airport owner, including property that is leased, licensed or
4made available for use by the airport owner.

5"City." A city of the first class.

6"Concession agreement." A regulation, contract, permit,
7license or other agreement entered into between an airport owner
8and a vehicle rental company which includes the terms and
9conditions under which the company may conduct any aspect of its
10rental vehicle business at the airport or through the use of
11airport property, including a vehicle rental company which
12provides a customer access to a vehicle or executes a rental
13contract either on or off of airport property.

14"Customer facility charge." A fee assessed on each motor
15vehicle rental under this subchapter used for the purposes
16described under section 5933(i) (relating to customer facility
17charge and rental facility agreement).

18"Motor vehicle." A private passenger motor vehicle that
19meets all of the following:

20(1) Is designed to transport not more than 15
21passengers.

22(2) Is rented for not more than 30 days without a
23driver.

24(3) Is part of a fleet of at least five passenger
25vehicles used for the purpose under paragraph (2).

26"Rental facility." A consolidated facility for the use of a
27vehicle rental company to conduct business on airport property.

28"Rental facility agreement." A written agreement entered
29into between an airport owner and a vehicle rental company which
30shall include:

1(1) The location, scope of operations and general design
2of the rental facility, a rental facility improvement and a
3transportation system which connects to a terminal or related
4structure.

5(2) The manner in which the proceeds of the customer
6facility charge are to be used as provided under section
75933(i).

8(3) A procedure and requirement for a consultation
9regarding the implementation of this chapter for the
10disclosure to a vehicle rental company of information
11relating to the collection and use of the customer facility
12charge.

13(4) A methodology and procedure by which the amount of
14the customer facility charge will be calculated and adjusted.

15"Rental facility improvement." A facility or structure on
16airport property needed for development or use of the rental
17facility. The term shall include a cost necessary for planning,
18finance, design, construction, equipping or furnishing of a
19rental facility improvement.

20"Rental facility operations and maintenance expenses." The
21cost of operating and maintaining the rental facility, including
22day-to-day costs.

23"Transportation system." A system which transports an
24arriving or departing vehicle rental customer between a terminal
25or related structure and the rental facility.

26"Transportation system costs." The portion of total cost
27incurred to design, finance, construct, operate and maintain a
28transportation system which reflects the usage or benefit of the
29system to vehicle rental companies and their customers.

30"Vehicle rental company." A person engaged in the business

1of renting a motor vehicle in this Commonwealth that provides a
2motor vehicle rental to a customer which utilizes airport
3property in any aspect of its business, including to do any of
4the following:

5(1) Contact customers or pick up or drop off customers
6on airport property.

7(2) Advertise the availability of a vehicle rental
8service, notwithstanding if other aspects of the rental
9company business are not conducted on airport property.

10§ 5933. Customer facility charge and rental facility agreement.

11(a) Rental facility agreement.--A rental facility agreement
12shall be enforceable if it is executed by the airport owner and
13at least 80% of the vehicle rental companies which utilized
14airport property and which provided at least 90% of the motor
15vehicle rentals conducted utilizing airport property in the most
16recently completed calendar year.

17(b) Imposition of customer facility charge.--

18(1) Except as provided under paragraph (2), a city may
19impose a customer facility charge of not more than $8 per
20rental day on a customer renting a motor vehicle from a
21vehicle rental company doing business at an airport. The
22charge may:

23(i) be imposed notwithstanding the absence of
24authority in a regulation or concession agreement; and

25(ii) not affect the validity or enforceability of a
26concession agreement.

27(2) Notwithstanding paragraph (1), a rental facility
28agreement may provide for a customer facility charge which
29exceeds $8 per rental day.

30(3) A city may unilaterally decrease the customer

1facility charge provided in a rental facility agreement or
2otherwise provided. An increase in the customer facility
3charge, decreased under this paragraph, shall require an
4amendment of the rental facility agreement if the increase
5will cause the customer facility charge to exceed the
6original amount.

7(c) Amendment of rental facility agreement.--The following
8shall apply:

9(1) An amendment to a rental facility agreement must be
10executed by the vehicle rental companies or their successors,
11which are a party to the original rental facility agreement.

12(2) The terms of the rental facility agreement may be
13amended no more than one time per calendar year to authorize
14the increase of the amount of the customer facility charge to
15fund the current costs authorized under the rental facility
16agreement.

17(d) Enforcement.--The terms of a rental facility agreement
18may be interpreted and enforced by a court of competent
19jurisdiction through the imposition of a mandatory or
20prohibitive injunction. A monetary damage may not be awarded to
21a vehicle rental company or to a person required to pay the
22customer facility charge for a violation of the terms and
23conditions of the rental facility agreement.

24(e) Limitation on use.--Notwithstanding the authorization
25for the use of the proceeds of the customer facility charge
26imposed under subsection (b)(1)(i) and, except as provided under
27subsection (f), until a rental facility agreement is executed,
28the proceeds of the customer facility charge may be used only
29for planning, design, feasibility studies and other preliminary
30expenses necessary for the uses authorized under subsection

1(b)(1)(i).

2(f) Time limitation.--If a rental facility agreement is not
3executed within two years of the date a vehicle rental company
4is required to begin collecting the customer facility charge, a
5city may continue to impose and collect the customer facility
6charge authorized under subsection (b)(1). After notice to the
7vehicle rental companies, the city may use the proceeds of the
8customer facility charge in the manner authorized under
9subsection (b)(1)(i), except that an expense imposed on a
10vehicle rental company for the purposes under subsection (e) may
11not exceed the proceeds of the customer facility charge.

12(g) Additional cost.--A customer facility charge shall be in
13addition to other motor vehicle rental fees and taxes imposed by
14law, except that the customer facility charge may not constitute
15part of the purchase price of a motor vehicle rental imposed
16under any of the following:

17(1) Article II of the act of March 4, 1971 (P.L.6,
18No.2), known as the Tax Reform Code of 1971.

19(2) The act of June 5, 1991 (P.L.9, No.6), known as the
20Pennsylvania Intergovernmental Cooperation Authority Act for
21Cities of the First Class.

22(3) A law similar to the statutes under paragraphs (1)
23and (2).

24(h) Collection.--The following shall apply:

25(1) A customer facility charge shall be:

26(i) collected from a customer by a vehicle rental
27company and held in a segregated trust fund for the
28benefit of the airport owner; and

29(ii) paid to the airport owner no later than the
30last day of the month following the month in which

1customer facility charge revenues are collected, or if
2necessary to facilitate a pledge of customer facility
3charge revenues under subsection (j), at an earlier date
4as designated by the airport owner, but not sooner than
5the 15th day of the month following the month in which
6the customer facility charges are collected.

7(2) A customer facility charge may not constitute gross
8receipts or income of a vehicle rental company for purposes
9of a tax imposed by the Commonwealth, the city or any other
10municipality.

11(3) A vehicle rental company may not pledge, subject to
12a lien, or encumber funds in a segregated trust fund under
13paragraph (1)(i).

14(i) Use.--The proceeds of the customer facility charge shall
15be deposited by the airport owner into a segregated account to
16be used for the planning, development, financing, construction
17and operation of:

18(1) a rental facility;

19(2) a rental facility improvement;

20(3) transportation system costs; or

21(4) a rental facility operation and maintenance expense.

22(j) Pledge.--An airport owner may pledge customer facility
23charge revenues for any of the following:

24(1) Any use authorized under subsection (i).

25(2) The creation and maintenance of a reasonable reserve
26and for the payment of debt service for any use authorized
27under subsection (i).

28(k) Administration.--An airport owner may do any of the
29following:

30(1) Require a vehicle rental company to provide it with

1periodic statements of account, file returns, authorize
2payments and maintain records, in accordance with its
3obligations under this subchapter.

4(2) Conduct an examination to ensure a vehicle rental
5company's compliance with its obligations under this
6subchapter and may do any of the following:

7(i) Collect an amount due.

8(ii) Impose a lien and file a suit to recover an
9amount due.

10(iii) Grant a refund.

11(iv) Require the payment of an authorized addition
12to a customer facility charge, interest and penalty.

13(v) Adopt reasonable rules and regulations to
14implement this section.

15(vi) Seek criminal penalties, as provided for a city
16of the first class for the collection of taxes, for
17failure to comply with the requirements of this
18subchapter.

19(l) Commonwealth pledge.--The Commonwealth pledges to and
20agrees with:

21(1) Any person, firm or corporation, government agency,
22whether in this Commonwealth or elsewhere, or Federal agency
23subscribing to or acquiring debt obligations secured by
24customer facility charges to be issued by an airport that the
25Commonwealth will not limit or alter the rights vested in the
26airport owner under this subchapter in a manner inconsistent
27with the obligations of the airport owner to the obligees of
28the airport owner until all debt obligations secured by
29customer facility charges and interest on the debt
30obligations are fully paid or provided for.

1(2) Any Federal agency that, if the Federal Agency
2contributes funds for the airport owner or project, the
3Commonwealth will not alter or limit the rights and powers of
4the airport owner in a manner which would be inconsistent
5with the due performance of an agreement between the airport
6owner and a Federal agency.

7Section 13. Title 74 is amended by adding chapters to read:

8CHAPTER 92

9TRAFFIC SIGNALS

10Sec.

119201. Definitions.

129202. Maintenance agreement.

13§ 9201. Definitions.

14The following words and phrases when used in this chapter
15shall have the meanings given to them in this section unless the
16context clearly indicates otherwise:

17"Critical corridor." A State highway segment intersecting
18with a limited access ramp or with bi-directional average annual
19daily traffic greater than 10,000 vehicles per day. The
20department's Roadway Management System shall identify the
21current average annual daily traffic.

22"Department." The Department of Transportation of the
23Commonwealth.

24"Existing agreement." An agreement between the department
25and a municipality on the maintenance of a traffic signal
26existing prior to the effective date of this section.

27"Municipality." A city, borough, town or township.

28"Maintenance." The activity of keeping a traffic signal in
29proper working condition during the useful life of the traffic
30signal.

1"Replace." The modernization of an existing traffic signal
2within a designated traffic corridor.

3"Synchronize." The coordination of all traffic signals
4within a designated traffic corridor for the purpose of
5operating as a single system.

6"Timing." The programming of traffic signals within a
7designated traffic corridor in order to synchronize the signals.

8§ 9202. Maintenance agreement.

9(a) Agreement.--A municipality may enter into an agreement
10with the department to replace, synchronize and time traffic
11signals located within a designated traffic corridor. The terms
12of the agreement may specify that the municipality provide
13services to the department. The agreement shall not exceed the
14time period of the useful life of the traffic signals. The
15municipality shall, during the duration of the agreement,
16properly maintain and time the traffic signals in accordance
17with the agreement.

18(b) Critical corridors.--A municipality shall enter into an
19agreement with the department under terms specified under
20subsection (a) for critical corridors. A municipality shall
21provide to the department in a timely manner all traffic and
22intersection data that the municipality maintains for critical
23corridors and establish and agree to an operations plan with the
24department on critical corridors.

25(c) Prioritization.--The department shall prioritize
26corridors where proper signalization will provide the most
27benefit to the traveling public and reduce congestion.
28Priorities shall be reevaluated and updated as part of the
29Planning Partner Transportation Improvement Plan cycle.

30(d) Intergovernmental cooperation.--Two or more

1municipalities may enter into an agreement with the department
2if a designated corridor is located in two or more
3municipalities.

4(e) Maintenance.--If the department determines that one or
5more traffic signals is not being maintained or timed in
6accordance with an agreement under subsection (a) or an existing
7agreement, the department shall provide written notice to all
8municipalities subject to the agreement no less than 60 days
9prior to taking any action to correct the improper maintenance
10and timing. The written notice shall specify the maintenance and
11timing deficiencies that are to be corrected.

12(1) A municipality subject to the agreement under
13subsection (a) shall have 60 days to correct the deficiencies
14contained in the written notice or to contest, in writing,
15the findings of the department within 30 days of receipt of
16the written notice.

17(2) The requirement that the municipality correct the
18deficiencies within 60 days of receipt of the written notice
19shall be temporarily stayed, if the municipality timely
20contests the department's findings in writing.

21(3) A municipality that contests the deficiencies
22specified in the written notice shall have 30 days to reach a
23written understanding with the department related to the
24deficiencies specified in the written notice.

25(4) If the department and the municipality do not reach
26a written understanding under paragraph (3), the department
27and the municipality shall select a civil engineer licensed
28by the Commonwealth who has substantial experience in traffic
29engineering to mediate the dispute. The engineer may not be
30under contract with the department or municipality or

1municipalities unless the contract is specifically related to
2traffic signal mediation.

3(f) Failure of municipality to perform.--If a municipality
4that has entered into an agreement with the department under
5subsection (a) fails to meet the requirements of subsection (c)
6(1) or (2), the department may take action to correct the
7deficiencies specified in the notice under subsection (c).

8(g) Payment for failure to correct deficiencies.--If the
9department takes action under subsection (c), the department may
10deduct the actual costs of correcting the deficiencies in
11maintenance and timing from the payments made to the
12municipality under the act of June 1, 1956 (1955 P.L.1944,
13No.655), referred to as the Liquid Fuels Tax Municipal
14Allocation Law, and 75 Pa.C.S. Chs. 89 (relating to Pennsylvania
15Turnpike) and 95 (relating to taxes for highway maintenance and
16construction).

17CHAPTER 93

18BRIDGE BUNDLING PROGRAM

19Sec.

209301. Definitions.

219302. Bundling authorization.

229303. Bridge Bundling Program.

239304. Grant limitation exceptions.

24§ 9301. Definitions.

25The following words and phrases when used in this chapter
26shall have the meanings given to them in this section unless the
27context clearly indicates otherwise:

28"Bridge budget act." The act of December 8, 1982 (P.L.848,
29No. 235), known as the Highway-Railroad and Highway Bridge
30Capital Budget Act for 1982-1983.

1"Department." The Department of Transportation of the
2Commonwealth.

3"Determination." A decision by the department as to the
4eligibility, recommendation and inclusion in the program.

5"Local government." A county, city, borough, town or
6township.

7"Program." The Bridge Bundling Program.

8§ 9302. Bundling authorization.

9Notwithstanding any other law, the department is authorized
10to bundle the design and construction of highway bridges owned
11by the Commonwealth or local governments as provided under this
12chapter.

13§ 9303. Bridge Bundling Program.

14(a) Establishment.--The Bridge Bundling Program is
15established within the department.

16(b) Purpose.--The purpose of the program is to save costs
17and time by allowing multiple highway bridges to be replaced or
18rehabilitated as one project for design and construction
19purposes.

20(c) Eligibility.--Bridges shall be eligible for the program
21if multiple bridges meet all of the following:

22(1) Are within geographical proximity to each other.

23(2) Are of similar size or design.

24(3) Inclusion in the program will meet the purpose of
25the program.

26(d) Implementation.--The department shall implement the
27program as follows:

28(1) The department shall annually develop a preliminary
29list from different regions of this Commonwealth, on a
30rotating basis, of bridges meeting eligibility requirements.

1(2) The department shall notify local governments owning
2bridges recommended for inclusion in that year's program.

3(3) Following receipt of notification from the
4department, the governing body of a local government shall
5have 60 days to agree or refuse participation in the program.
6Failure to respond in writing within 60 days shall be
7considered a refusal to participate in the program.

8(4) Based on the response from local governments under 
9paragraph (3), the department shall make a final 
10determination of bridges to be designed and constructed under 
11the program and provide a list to the appropriate planning 
12organizations for inclusion in lists of funded projects.

13(4.1) A determination shall not be:

14(i) considered to an adjudication under 2 Pa.C.S.
15Chs. 5 Subch. A (relating to practice and procedure of
16Commonwealth agencies) and 7 Subch. A (relating to
17judicial review of Commonwealth agency action); and

18(ii) appealable to the department or a court of law.

19(5) The following shall apply:

20(i) A local government that agrees to participate in 
21the program for one or more of its bridges that qualify 
22for the program must enter into an agreement with the 
23department. The agreement shall define the department's 
24responsibility for the design and construction of the 
25bridges and the continuing ownership and maintenance 
26responsibilities of the local government for the local 
27bridges replaced or rehabilitated under this program.

28(ii) The local government shall have 90 days from
29receipt of the agreement to execute the agreement.

30(iii) Failure to return an agreement executed by

1authorized local government officials shall be deemed a
2refusal to participate in the program.

3(6) Upon full execution of an agreement under the
4program, the department shall manage the project design and
5construction in a manner consistent with the purpose of the
6program.

7(f) Itemization.--Notwithstanding any other law, bridges
8determined to be eligible and recommended for the program by the
9department shall not require specific itemization in a capital
10budget.

11§ 9304. Grant limitation exceptions.

12(a) Exceptions.--Notwithstanding section 2(c) of the bridge
13budget act, the department shall agree to a reduction of the
14local share of costs associated with the design and construction
15of the bridge of up to 100% for a local government that
16participates in the program.

17(b) Nonparticipation.--Notwithstanding section 2(c) of the
18bridge budget act, a local government with bridges that are
19recommended for participation in the program which refuses to
20participate in the program shall be required to pay 30% of the
21non-Federal share of the costs for those local bridges.

22Section 14. Sections 1786(d) and 1904 of Title 75 are
23amended to read:

24§ 1786. Required financial responsibility.

25* * *

26(d) Suspension of registration and operating privilege.--

27(1) The Department of Transportation shall suspend the
28registration of a vehicle for a period of three months if it
29determines the required financial responsibility was not
30secured as required by this chapter and shall suspend the

1operating privilege of the owner or registrant for a period
2of three months if the department determines that the owner
3or registrant has operated or permitted the operation of the
4vehicle without the required financial responsibility. The
5operating privilege shall not be restored until the
6restoration fee for operating privilege provided by section
71960 (relating to reinstatement of operating privilege or
8vehicle registration) is paid.

9(1.1) In lieu of serving a registration suspension
10imposed under this section, an owner or registrant may pay to
11the department a civil penalty of $500, the restoration fee
12prescribed under section 1960 and furnish proof of financial
13responsibility in a manner determined by the department. An
14owner or registrant may exercise this option no more than
15once in a 12-month period.

16(2) Whenever the department revokes or suspends the
17registration of any vehicle under this chapter, the
18department shall not restore or transfer the registration
19until the suspension has been served or the civil penalty has 
20been paid to the department and the vehicle owner furnishes
21proof of financial responsibility in a manner determined by
22the department and submits an application for registration to
23the department, accompanied by the fee for restoration of
24registration provided by section 1960. This subsection shall
25not apply in the following circumstances:

26(i) The owner or registrant proves to the
27satisfaction of the department that the lapse in
28financial responsibility coverage was for a period of
29less than 31 days and that the owner or registrant did
30not operate or permit the operation of the vehicle during

1the period of lapse in financial responsibility.

2(ii) The owner or registrant is a member of the
3armed services of the United States, the owner or
4registrant has previously had the financial
5responsibility required by this chapter, financial
6responsibility had lapsed while the owner or registrant
7was on temporary, emergency duty and the vehicle was not
8operated during the period of lapse in financial
9responsibility. The exemption granted by this paragraph
10shall continue for 30 days after the owner or registrant
11returns from duty as long as the vehicle is not operated
12until the required financial responsibility has been
13established.

14(iii) The insurance coverage has terminated or
15financial responsibility has lapsed simultaneously with
16or subsequent to expiration of a seasonal registration,
17as provided in section 1307(a.1) (relating to period of
18registration).

19(3) An owner whose vehicle registration has been
20suspended under this subsection shall have the same right of
21appeal under section 1377 (relating to judicial review) as
22provided for in cases of the suspension of vehicle
23registration for other purposes. The filing of the appeal
24shall act as a supersedeas, and the suspension shall not be
25imposed until determination of the matter as provided in
26section 1377. The court's scope of review in an appeal from a
27vehicle registration suspension shall be limited to
28determining whether:

29(i) the vehicle is registered or of a type that is
30required to be registered under this title; and

1(ii) there has been either notice to the department
2of a lapse, termination or cancellation in the financial
3responsibility coverage as required by law for that
4vehicle or that the owner, registrant or driver was
5requested to provide proof of financial responsibility to
6the department, a police officer or another driver and
7failed to do so. Notice to the department of the lapse,
8termination or cancellation or the failure to provide the
9requested proof of financial responsibility shall create
10a presumption that the vehicle lacked the requisite
11financial responsibility. This presumption may be
12overcome by producing clear and convincing evidence that
13the vehicle was insured at all relevant times.

14(4) Where an owner or registrant's operating privilege
15has been suspended under this subsection, the owner or
16registrant shall have the same right of appeal under section
171550 (relating to judicial review) as provided for in cases
18of suspension for other reason. The court's scope of review
19in an appeal from an operating privilege suspension shall be
20limited to determining whether:

21(i) the vehicle was registered or of a type required
22to be registered under this title; and

23(ii) the owner or registrant operated or permitted
24the operation of the same vehicle when it was not covered
25by financial responsibility. The fact that an owner,
26registrant or operator of the motor vehicle failed to
27provide competent evidence of insurance or the fact that
28the department received notice of a lapse, termination or
29cancellation of insurance for the vehicle shall create a
30presumption that the vehicle lacked the requisite

1financial responsibility. This presumption may be
2overcome by producing clear and convincing evidence that
3the vehicle was insured at the time that it was driven.

4(5) An alleged lapse, cancellation or termination of a
5policy of insurance by an insurer may only be challenged by
6requesting review by the Insurance Commissioner pursuant to
7Article XX of the act of May 17, 1921 (P.L.682, No.284),
8known as The Insurance Company Law of 1921. Proof that a
9timely request has been made to the Insurance Commissioner
10for such a review shall act as a supersedeas, staying the
11suspension of registration or operating privilege under this
12section pending a determination pursuant to section 2009(a)
13of The Insurance Company Law of 1921 or, in the event that
14further review at a hearing is requested by either party, a
15final order pursuant to section 2009(i) of The Insurance
16Company Law of 1921.

17(6) The civil penalty under paragraph (1.1) shall be
18deposited into the Public Transportation Trust Fund.

19* * *

20§ 1904. Collection and disposition of fees and moneys.

21[The] (a) General rule.--Except as provided under subsection 
22(b), the department shall collect all fees payable under this
23title and all other moneys received in connection with the
24administration of this title and transmit them to the State
25Treasurer for deposit in the Motor License Fund. Moneys paid in
26error may be refunded by the department.

27(b) Disposition.--Fees collected under sections 1951(c)
28(relating to driver's license and learner's permit), 1952
29(relating to certificate of title), 1953 (relating to security
30interest), 1955 (relating to information concerning drivers and

1vehicles), 1956 (relating to certified copies of records) and
21958 (relating to certificate of inspection) shall be
3transmitted to the State Treasurer for deposit as follows:

4(1) For fiscal years 2013-2014 and 2014-2015:

5(i) 10% to the Public Transportation Trust Fund;

6(ii) 23% to the Multimodal Transportation Fund; and

7(iii) 67% to the Motor License Fund.

8(2) For fiscal years 2015-2016 and 2016-2017:

9(i) 43.6% percent to the Public Transportation Trust
10Fund;

11(ii) 23% to the Multimodal Transportation Fund; and

12(iii) 33.4% to the Motor License Fund.

13(3) For each fiscal year beginning after June 30, 2017:

14(i) 77% to the Public Transportation Trust Fund; and

15(ii) 23% to the Multimodal Transportation Fund.

16(c) Automatic four-year adjustment.--For the 48-month period
17beginning July 1, 2017, through June 30, 2021 and for each like
1848-month period thereafter, fees collected under sections
191951(c) (relating to driver's license and learner's permit),
201952 (relating to certificate of title), 1953 (relating to
21security interest), 1955 (relating to information concerning
22drivers and vehicles), 1956 (relating to certified copies of
23records) and 1958 (relating to certificate of inspection) shall
24be increased by an amount calculated by applying the percentage
25change in the Consumer Price Index for All Urban Consumers (CPI-
26U) for the most recent 48-month period, calculated from March 1
27through February 28, beginning on the date the fees charged
28under this title were last increased and for which figures have
29been officially reported by the United States Department of
30Labor, Bureau of Labor Statistics, immediately prior to the date

1the adjustment is due to take effect, to the then current fee
2amounts authorized.

3Section 15. Sections 1951(c), 1952, 1953, 1955(a), 1956(a)
4and 1958(a) of Title 75 are amended to read:

5§ 1951. Driver's license and learner's permit.

6* * *

7(c) Identification card.--The [fee for an] identification
8card fee shall be [$5] $19 plus the cost of the photograph.

9* * *

10§ 1952. Certificate of title.

11(a) General rule.--The fee for issuance of a certificate of
12title shall be [$22.50] $33.

13(b) Manufacturer's or dealer's notification.--The fee for a
14manufacturer's or dealer's notification of acquisition of a
15vehicle from another manufacturer or dealer for resale pursuant
16to section 1113 (relating to transfer to or from manufacturer or
17dealer) shall be [$3] $4.

18§ 1953. Security interest.

19The fee for recording or changing the amount of security
20interest on a certificate of title shall be [$5] $19.

21§ 1955. Information concerning drivers and vehicles.

22(a) Drivers, registrations, titles and security interests.--
23The fee for a copy of written or electronic information relating
24to a driver, registration, title or security interest shall be
25[$5] $14.

26* * *

27§ 1956. Certified copies of records.

28(a) Department records.--The fee for a certified copy of any
29department record which the department is authorized by law to
30furnish to the public shall be [$5] $19 for each form or

1supporting document comprising such record.

2* * *

3§ 1958. Certificate of inspection.

4(a) General rule.--The department shall charge [$2] $5 for
5each annual certificate of inspection [and $1], $2 for each
6semiannual certificate of inspection and $2 for each certificate 
7of exemption.

8* * *

9Section 16. Section 3111 of Title 75 is amended by adding a
10subsection to read:

11§ 3111. Obedience to traffic-control devices.

12* * *

13(a.1) Penalty.--

14(1) A person who violates this section commits a summary
15offense and shall, upon conviction, pay a fine of $75.

16(2) Notwithstanding 42 Pa.C.S. § 3733(a) (relating to
17deposits into account), a fine under paragraph (1) shall be
18distributed as follows:

19(i) Twenty-five dollars shall be deposited as
20provided under 42 Pa.C.S. § 3733(a).

21(ii) After deposit of the amount under subparagraph
22(i), the remaining portion of the fine shall be deposited
23into the Public Transportation Trust Fund.

24* * *

25Section 17. The definitions of "annual additional payments,"
26"annual base payments" and "scheduled annual commission 
27contributions" in section 8901 of Title 75 are amended to read:

28§ 8901. Definitions.

29The following words and phrases when used in this chapter
30shall have the meanings given to them in this section unless the

1context clearly indicates otherwise:

2"Annual additional payments." As follows:

3(1) During the conversion period and after the
4conversion date, an amount equal to the scheduled annual
5commission contribution, minus the sum of:

6(i) $200,000,000 paid as annual base payments;

7(ii) any Interstate 80 savings for that fiscal year.

8(2) If the conversion period has expired and a
9conversion notice has not been received by the secretary, in
10each subsequent fiscal year [until the end of the term of the 
11lease agreement] through fiscal year 2020-2021, the annual
12additional payments shall be $250,000,000. No annual 
13additional payments shall be due after fiscal year 2020-2021.

14"Annual base payments." An amount equal to the sum of the
15following:

16(1) Annual debt service on outstanding bonds issued
17under section 9511.2 (relating to special revenue bonds)
18payable as required pursuant to the bonds.

19(2) Two hundred million dollars payable annually in four
20equal installments each due the last business day of each
21July, October, January and April. No annual base payments 
22shall be due after fiscal year 2020-2021.

23* * *

24"Scheduled annual commission contribution." The following
25amounts:

26(1) $750,000,000 in fiscal year 2007-2008.

27(2) $850,000,000 in fiscal year 2008-2009.

28(3) $900,000,000 in fiscal year 2009-2010.

29(4) For fiscal year 2010-2011 and each fiscal year 
30thereafter, the amount shall be the amount calculated for the
 

1previous year increased by 2.5%, except that the amount shall 
2be equal to the annual base payments plus $250,000,000 if the 
3conversion notice is not received by the secretary prior to 
4the expiration of the conversion period. No scheduled annual 
5commission contribution shall be due after fiscal year 2020-
62021.

7Section 18. Section 8815.6 of Title 75 is repealed:

8[§ 8915.6. Deposit and distribution of funds.

9(a) Deposits.--Upon receipt by the department, the following
10amounts from the scheduled annual commission contribution shall
11be deposited in the Motor License Fund:

12(1) For fiscal year 2007-2008, $450,000,000.

13(2) For fiscal year 2008-2009, $500,000,000.

14(3) For fiscal year 2009-2010, $500,000,000.

15(4) For fiscal year 2010-2011 and each fiscal year
16thereafter, the amount calculated for the previous year
17increased by 2.5%.

18(b) Distribution.--The following shall apply:

19(1) Annually, 15% of the amount deposited in any fiscal
20year under subsection (a) shall be distributed at the
21discretion of the secretary.

22(2) Annually, $5,000,000 of the amount deposited in any
23fiscal year under subsection (a) shall be distributed to
24counties.

25(i) The distribution shall be in the ratio of:

26(A) the square footage of deck area of a
27county's county-owned bridges; to

28(B) the total square footage of deck area of
29county-owned bridges throughout this Commonwealth.

30(ii) The amount of square footage under subparagraph

1(i) shall be that reported as part of the National Bridge
2Inspection Standards Program.

3(3) Annually, $30,000,000 of the amount deposited in any
4fiscal year under subsection (a) shall be distributed to
5municipalities pursuant to the act of June 1, 1956 (1955 
6P.L.1944, No.655), referred to as the Liquid Fuels Tax
7Municipal Allocation Law.

8(4) Any funds deposited under subsection (a) but not
9distributed under paragraphs (1), (2) and (3) shall be
10distributed in accordance with needs-based formulas that are
11developed and subject to periodic revision based on
12consultation and collaboration among metropolitan planning
13organizations, rural planning organizations and the
14department.

15(c) Definitions.--The following words and phrases when used
16in this section shall have the meanings given to them in this
17subsection unless the context clearly indicates otherwise:

18"Metropolitan planning organization." The policy board of an
19organization created and designated to carry out the
20metropolitan transportation planning process.

21"Rural planning organization." The organization of counties
22with populations of less than 50,000 created and designated as
23local development districts and which carry out the rural
24transportation planning process.]

25Section 19. (Reserved).

26Section 20. The definition of "average wholesale price" in
27section 9002 of Title 75 is amended to read:

28§ 9002. Definitions.

29The following words and phrases when used in this chapter
30shall have the meanings given to them in this section unless the

1context clearly indicates otherwise:

2* * *

3"Average wholesale price." [The average wholesale price per
4gallon of all taxable liquid fuels and fuels, excluding the
5Federal excise tax and all liquid fuels taxes, as determined by
6the Department of Revenue for the 12-month period ending on the
7September 30 immediately prior to January 1 of the year for
8which the rate is to be set. In no case shall the average
9wholesale price be less than 90¢ nor more than $1.25 per
10gallon.] The average wholesale price per gallon of all taxable 
11liquid fuels and fuels, excluding the Federal excise tax and all 
12liquid fuels taxes shall be as follows:

13(1) For the period beginning July 1, 2013, and ending
14December 31, 2013, the average wholesale price shall be
15$1.87.

16(2) For the period beginning January 1, 2014, and ending
17December 31, 2014, the average wholesale price shall be
18$2.49.

19(3) For the period beginning January 1, 2015, and ending
20December 31, 2015, the average wholesale price shall be
21$3.11.

22(4) Beginning January 1, 2016, in no case shall the 
23average wholesale price be less than [90¢ nor more than 
24$1.25] $2.70 per gallon.

25Section 21. Section 9106 heading, (a) and (b) of Title 75 
26are amended to read:

27§ 9106. Dirt [and], gravel and low-volume road maintenance.

28(a) Statement of purpose.--It is the intent and purpose of
29this section:

30(1) To fund safe, efficient and environmentally sound

1maintenance of sections of dirt and gravel roads which have
2been identified as sources of dust and sediment pollution.

3(2) To establish a dedicated and earmarked funding
4mechanism that provides streamlined appropriation to the
5county level and enables local officials to establish fiscal
6and environmental controls.

7(3) To fund safe, efficient and environmentally sound
8maintenance of sections of low-volume roads that are sealed
9or paved with an average daily traffic count of 500 vehicles
10or less.

11(b) General rule.--Of the funds available under section
129502(a)(1) (relating to imposition of tax), [$1,000,000]
13$7,000,000 shall be annually distributed to the Department of
14Conservation and Natural Resources for the maintenance and
15mitigation of dust and sediment pollution from parks and
16forestry roads. Funds in the amount of [$4,000,000] $28,000,000
17shall be appropriated annually to the State Conservation
18Commission and administered in a nonlapsing, nontransferable
19account restricted to maintenance and improvement of dirt [and],
20gravel and low volume State and municipal roads. The State
21Conservation Commission shall apportion the funds based on
22written criteria it develops to establish priorities based on
23preventing dust and sediment pollution. In the first fiscal
24year, top priority shall be given to specific trouble spot
25locations already mapped by the Task Force on Dirt and Gravel
26Roads and available from the department. A minimum of $8,000,000 
27of the total appropriated annually shall be for maintenance and 
28improvement of low volume roads.

29* * *

30Section 27.1. (Reserved).

1Section 27.2. Sections 9301 and 9502(a) of Title 75 are 
2amended to read:

3§ 9301. Supplemental funding for municipal highway maintenance.

4(a) Annual appropriation.--The General Assembly shall
5annually appropriate, beginning with the 1980-1981 fiscal year,
6the sum of $5,000,000 for supplemental payments to
7municipalities to assist in the maintenance and construction
8costs of municipal roads. The moneys appropriated by authority
9of this section shall be distributed to municipalities in
10accordance with the provisions of the act of June 1, 1956 (1955 
11P.L.1944, No.655), entitled "An act providing a permanent
12allocation of a part of the fuels and liquids fuels tax proceeds
13to cities, boroughs, incorporated towns and townships, for their
14road, street and bridge purposes; conferring powers and imposing
15duties on local officers and the Department of Highways; and
16making an appropriation out of the Motor License Fund; and
17repealing existing legislation."

18(b) County allocation supplement.--The amount of $5,000,000
19is hereby appropriated out of the Motor License Fund to counties
20annually. The following shall apply:

21(1) The distribution shall be in the ratio of:

22(i) the square footage of deck area of a county's
23county-owned bridges; to

24(ii) the total square footage of deck area of
25county-owned bridges throughout this Commonwealth.

26(2) The amount of square footage under subparagraph (i)
27shall be that reported as part of the National Bridge
28Inspection Standards Program.

29(c) Additional allocation to municipalities.--An amount of
30$30,000,000 is hereby appropriated out of the Motor License Fund

1and shall be distributed to municipalities pursuant to the act
2of June 1, 1956 (1955 P.L.1944, No.655), referred to as the
3Liquid Fuels Tax Municipal Allocation Law.

4§ 9502. Imposition of tax.

5(a) General rule.--

6(1) An "oil company franchise tax for highway 
7maintenance and construction" which shall be an excise tax of 
860 mills is hereby imposed upon all liquid fuels and fuels as 
9defined and provided in Chapter 90 (relating to liquid fuels 
10and fuels tax), and such tax shall be collected as provided 
11in section 9004(b) (relating to imposition of tax, exemptions 
12and deductions). Of the amount collected in fiscal year 2015-
132016, and each fiscal year thereafter, at the discretion of 
14the secretary, a minimum of $20,000,000 and a maximum of 
15$35,000,000 shall be deposited in the Multimodal 
16Transportation Fund established under 74 Pa.C.S. § 2101 
17(relating to Multimodal Transportation Fund), to be expended 
18in accordance with section 11 of Article VIII of the 
19Constitution of Pennsylvania.

20(2) An additional 55 mills is hereby imposed on all
21liquid fuels and fuels as defined and provided in Chapter 90
22and such tax shall also be collected as provided in section
239004(b), the proceeds of which shall be distributed as
24follows:

25(i) [Forty-two] Twenty-nine percent to county
26maintenance districts for highway maintenance for fiscal 
27year 2013-2014 and 19% for fiscal year 2014-2015 and each 
28year thereafter. This allocation shall be made according
29to the formula provided in section 9102(b)(2) (relating
30to distribution of State highway maintenance funds). This

1allocation shall be made in addition to and not a
2replacement for amounts normally distributed to county
3maintenance districts under section 9102.

4(ii) [Seventeen] Thirty percent for highway capital
5projects[.] for fiscal year 2013-2014 and 40% for fiscal 
6year 2014-2015 and each year thereafter. Annually, until 
7fiscal year 2023-2024, an amount equal to 15% of all 
8appropriations to the department for highway and bridge 
9capital programs shall be distributed at the discretion 
10of the secretary from the amount distributed under this 
11subparagraph.

12(iii) Thirteen percent for bridges.

13(iv) Two percent for bridges identified as county 
14[or forestry] bridges. Distribution under this 
15subparagraph shall be in the ratio of:

16(A) the square footage of deck areas, as
17reported as part of the National Bridge Inspection
18Standards Program, of a county's county-owned
19bridges; to

20(B) the total square footage of deck area, as
21reported as part of the National Bridge Inspection
22Standards Program, of all county-owned bridges in
23this Commonwealth.

24(v) Twelve percent for local roads pursuant to
25section 9511(c) (relating to basic allocation to
26municipalities).

27(vi) Fourteen percent for toll roads designated
28pursuant to the act of September 30, 1985 (P.L.240, 
29No.61), known as the Turnpike Organization, Extension and
30Toll Road Conversion Act, to be appropriated under

1section 9511(h).

2(3) An additional 38.5 mills is hereby imposed upon all
3liquid fuels and fuels as defined and provided in Chapter 90,
4and such tax shall also be collected as provided in section
59004(b), the proceeds of which shall be deposited in The
6Motor License Fund and distributed as follows:

7(i) Twelve percent to municipalities on the basis of
8and subject to the provisions of the act of June 1, 1956 
9(1955 P.L.1944, No.655), referred to as the Liquid Fuels
10Tax Municipal Allocation Law, is appropriated.

11(ii) [Eighty-eight percent to the department is
12appropriated as follows:

13(A) Forty-seven percent for distribution in
14accordance with section 9102(b)(2) for fiscal year
151997-1998.

16(B) Fifty-three percent for a Statewide highway
17restoration, betterment and resurfacing program for
18fiscal year 1997-1998.

19(C) Fifty-seven percent for distribution in
20accordance with section 9102(b)(2) for fiscal year
211998-1999.

22(D) Forty-three percent for a Statewide highway
23restoration, betterment and resurfacing program for
24fiscal year 1998-1999.

25(E) Sixty-seven percent for distribution in
26accordance with section 9102(b)(2) for fiscal year
271999-2000.

28(F) Thirty-three percent for a Statewide highway
29restoration, betterment and resurfacing program for
30fiscal year 1999-2000.

1(G) Seventy-seven percent for distribution in
2accordance with section 9201(b)(2) for fiscal year
32000-2001.

4(H) Twenty-three percent for a Statewide highway
5restoration, betterment and resurfacing program for
6fiscal year 2000-2001.

7(I) One hundred percent for distribution in
8accordance with section 9102(b)(2) for fiscal year
92001-2002 and each year thereafter.

10(J) For any fiscal year beginning with 1997-1998
11through and including fiscal year 2000-2001, the
12department shall make supplemental maintenance
13program payments from the Statewide highway
14restoration betterment program to those county
15maintenance districts for which the total highway
16maintenance appropriations and executive
17authorizations in accordance with section 9102(b)
18would be less than the amount received in 1996-1997
19from the highway maintenance appropriation, the
20Secondary Roads-Maintenance and Resurfacing Executive
21Authorization, the Highway Maintenance Excise Tax
22Executive Authorization and the Highway Maintenance
23Supplemental Appropriation.

24The words and phrases used in this paragraph shall have the
25meanings given to them in section 9101 (relating to
26definitions). This one-time allocation shall be made in
27addition to and is not a replacement for amounts normally
28distributed to county maintenance districts under section
299102.] Fifty-three percent to the department for distribution 
30in accordance with section 9102(b)(2) for fiscal year 2013-

12014 and 40% for fiscal year 2014-2015 and each fiscal year 
2thereafter.

3(iii) Thirty-five percent to the department for
4expanded highway and bridge maintenance for fiscal year
52013-2014 and 48% for fiscal year 2014-2015 and each
6fiscal year thereafter to be distributed as follows:

7(A) Annually, 15% of the amount deposited in a
8fiscal year shall be distributed at the discretion of
9the secretary.

10(B) Any funds deposited but not distributed
11under clause (A) shall be distributed in accordance
12with the formula under section 9102(b)(2).

13(C) Temporary transfers of funds may be made
14between counties if required for project cash flow.

15(4) An additional 55 mills is hereby imposed upon all 
16fuels as defined and provided in chapter 90 and such tax 
17shall also be collected as provided in section 9004(b) upon 
18such fuels, the proceeds of which shall be deposited in The 
19Highway Bridge Improvement Restricted Account within the 
20Motor License Fund and is hereby appropriated.

21Section 28. Section 9511(b) and (g) of Title 75 are amended 
22and the section is amended by adding a subsection to read:

23§ 9511. Allocation of proceeds.

24* * *

25(b) State Highway Transfer Restoration Restricted Account
26and local bridges.--

27(1) The amount of the proceeds deposited in the Motor
28License Fund pursuant to this chapter which[, in fiscal year
291983-1984,] is attributable to [two] three mills of the tax
30imposed under section 9502(a) (relating to imposition of tax)

1[and which, in fiscal year 1984-1985 and thereafter, is
2attributable to three mills of the tax,] shall be deposited
3as follows:

4(i) For fiscal years 2013-2014 through fiscal year
52016-2017, as follows:

6(A) Twenty-seven million dollars shall be
7deposited in the State Highway Transfer Restoration
8Restricted Account within the Motor License Fund. The
9funds deposited in the State Highway Transfer
10Restoration Restricted Account shall be appropriated
11annually for expenditure as provided under subsection
12(g).

13(B) All funds not deposited in accordance with
14clause (A) shall be deposited in the Highway Bridge
15Improvement Restricted Account within the Motor
16License Fund for local bridges, notwithstanding if
17the project is administered by a county, municipality
18or the department.

19(ii) For fiscal year 2017-2018 and each fiscal year
20thereafter, as follows:

21(A) One and one-half mill shall be deposited in
22the State Highway Transfer Restoration Restricted
23Account within the Motor License Fund, which account
24is hereby created. The funds deposited in the State
25Highway Transfer Restoration Restricted Account are
26hereby annually appropriated out of the account upon
27authorization by the Governor for expenditure as
28provided in subsection (g).

29(B) One and one-half mill shall be deposited in
30the Highway Bridge Improvement Restricted Account

1within the Motor License Fund for local bridges,
2notwithstanding if the project is administered by a
3county, municipality or the department.

4(2) If funds are available to make payments under
5subsection (g)(1), the department may transfer funds
6deposited under subparagraphs (i) and (ii) between the State
7Highway Transfer Restoration Restricted Account and the
8Highway Bridge Improvement Restricted Account at the
9discretion of the secretary.

10* * *

11(g) Use of funds in the State Highway Transfer Restoration 
12Restricted Account.--The funds appropriated in subsection (b)
13for deposit in the State Highway Transfer Restoration Restricted 
14Account shall be used to pay for the costs of restoration of
15such highways as provided in Chapter 92 (relating to transfer of
16State highways) and annual payments to the municipalities for
17highway maintenance in accordance with the following:

18(1) Annual maintenance payments shall be at the rate of
19$4,000 per mile for each highway or portion of highway
20transferred under Chapter 92, section 222 of the act of June 
211, 1945 (P.L.1242, No.428), known as the State Highway Law,
22or any statute enacted in 1981.

23(2) Annual maintenance payments shall be paid at the
24same time as funds appropriated under the act of June 1, 1956 
25(1955 P.L.1944, No.655), referred to as the Liquid Fuels Tax
26Municipal Allocation Law, except that no maintenance payment
27shall be paid for a highway until after the year following
28its transfer to the municipality.

29(3) Annual maintenance payments under this subsection
30shall be in lieu of annual payments under the Liquid Fuels

1Tax Municipal Allocation Law.

2(4) Annual maintenance payments under this subsection
3shall be deposited into the municipality's liquid fuels tax
4account and may be used on any streets and highways in the
5municipality in the same manner and subject to the same
6restrictions as liquid fuels tax funds paid under the Liquid
7Fuels Tax Municipal Allocation Law or, in the case of a
8county, under section 10 of the act of May 21, 1931 (P.L.149, 
9No.105), known as The Liquid Fuels Tax Act.

10* * *

11(i) Refund to Pennsylvania Fish and Boat Commission.--

12(1) When the tax imposed by this chapter has been paid 
13and the fuel on which the tax has been imposed has been 
14consumed in the operation of motorboats or watercraft upon 
15the waters of this Commonwealth, including waterways 
16bordering on this Commonwealth, the full amount of the tax 
17shall be refunded to the Boat Fund on petition to the board 
18in accordance with prescribed procedures.

19(2) In accordance with such procedures, the Pennsylvania 
20Fish and Boat Commission shall biannually calculate the 
21amount of liquid fuels consumed by the motorcraft and furnish 
22the information relating to its calculations and data as 
23required by the board. The board shall review the petition 
24and motorboat fuel consumption calculations of the 
25commission, determine the amount of the oil company franchise 
26tax paid and certify to the State Treasurer to refund 
27annually to the Boat Fund the amount so determined. The 
28department shall be accorded the right to appear at the 
29proceedings and make its views known.

30(3) For the fiscal years commencing July 1, 2013, July
 

11, 2014, July 1, 2015, July 1, 2016, and July 1, 2017, the 
2money under paragraph (2) shall be used by the commission 
3acting by itself or by agreement with other Federal and State 
4agencies only for the improvement of hazardous dams 
5impounding waters of this Commonwealth on which boating is 
6permitted, including the development and construction of 
7boating areas and the dredging and clearing of water areas 
8where boats can be used. The commission shall present its 
9plan no later than September 30 of each year through 
10September 30, 2017, to the chairman and minority chairman of 
11the Transportation and Game and Fisheries Committees of the 
12Senate and the chairman and minority chairman of the 
13Transportation and Game and Fisheries Committees of the House 
14of Representatives regarding the use of the funds. For the 
15fiscal year commencing July 1, 2018, and for each fiscal year 
16thereafter, this money shall be used by the commission acting 
17by itself or by agreement with other Federal and State 
18agencies only for the improvement of the waters of this 
19Commonwealth on which motorboats are permitted to operate and 
20may be used for the development and construction of motorboat 
21areas; the dredging and clearing of water areas where 
22motorboats can be used; the placement and replacement of 
23navigational aids; the purchase, development and maintenance 
24of public access sites and facilities to and on waters where 
25motorboating is permitted; the patrolling of motorboating 
26waters; the publishing of nautical charts in those areas of 
27this Commonwealth not covered by nautical charts published by 
28the United States Coast and Geodetic Survey or the United 
29States Army Corps of Engineers and the administrative 
30expenses arising out of such activities; and other similar
 

1purposes.

2Section 25. The addition of 74 Pa.C.S. § 9202 shall apply to
3contracts entered into on or after the effective date of this
4section.

5Section 26. This act shall take effect as follows:

6(1) The following provisions shall take effect
7immediately:

8(i) This section.

9(ii) The addition of 74 Pa.C.S. Ch. 16.

10(iii) The addition of 74 Pa.C.S. Ch. 59 Subch. C.

11(2) The remainder of this act shall take effect in 30
12days.