See other bills
under the
same topic
SENATE AMENDED
PRIOR PRINTER'S NOS. 1788, 2650, 2694,
2650, 2697, 2711
PRINTER'S NO. 2969
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1327
Session of
2015
INTRODUCED BY PEIFER, PICKETT, DUNBAR, DRISCOLL, W. KELLER,
BARRAR, MILLARD, THOMAS, A. HARRIS, ROZZI, D. COSTA, COHEN,
MILNE, BRADFORD, MARSICO, MAJOR, MULLERY, WHITE, DeLUCA AND
OBERLANDER, JUNE 11, 2015
AMENDMENTS TO HOUSE AMENDMENTS, IN SENATE, MARCH 15, 2016
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
as amended, "An act relating to the finances of the State
government; providing for the settlement, assessment,
collection, and lien of taxes, bonus, and all other accounts
due the Commonwealth, the collection and recovery of fees and
other money or property due or belonging to the Commonwealth,
or any agency thereof, including escheated property and the
proceeds of its sale, the custody and disbursement or other
disposition of funds and securities belonging to or in the
possession of the Commonwealth, and the settlement of claims
against the Commonwealth, the resettlement of accounts and
appeals to the courts, refunds of moneys erroneously paid to
the Commonwealth, auditing the accounts of the Commonwealth
and all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
every State depository and every debtor or creditor of the
Commonwealth,"
in financially distressed municipalities, providing for
financial recovery;
in oil and gas wells, providing for the Environmental
Stewardship Fund;
in tax credits, providing for Department of Community and
Economic Development;
in special funds, further providing for funding, for
State Workers' Insurance Board, for expiration and for other
grants and providing for allocations from the Pennsylvania
Racehorse Development Restricted Receipt Account;
in additional special funds, further providing for use of
the Tobacco Settlement Fund and for distributions from the
Pennsylvania Race Horse Development Fund and providing for
miscellaneous limitations and transfers and for the Natural
Gas Infrastructure Development Fund;
in general budget implementation, further providing for
the Department of Community and Economic Development, for the
Department of Environmental Protection, AND for the
Department of General Services, PROVIDING FOR THE
PENNSYLVANIA GAMING CONTROL BOARD, FURTHER PROVIDING for the
Department of Human Services, for the Pennsylvania State
Police and for the Environmental Quality Board and providing
for the Commonwealth Financing Authority;
providing for school district debt refinancing bonds;
providing for 2015-2016 budget implementation;
making A related repeals REPEAL; and
making editorial changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The General Assembly finds and declares as
follows:
(1) The intent of this act is to provide for the
implementation of the 2015-2016 Commonwealth budget.
(2) The Constitution of Pennsylvania confers numerous
express duties upon the General Assembly, including the
passage of a balanced budget for the Commonwealth.
(3) Section 24 of Article III of the Constitution of
Pennsylvania requires the General Assembly to adopt all
appropriations for the operation of government in the
Commonwealth, regardless of their source. The Supreme Court
20150HB1327PN2969 - 2 -
<--
<--
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
has repeatedly affirmed that, "It is fundamental within
Pennsylvania's tripartite system that the General Assembly
enacts the legislation establishing those programs which the
state provides for its citizens and appropriates the funds
necessary for their operation."
(4) Pursuant to section 13 of Article VIII of the
Constitution of Pennsylvania, the General Assembly is
explicitly required to adopt a balanced Commonwealth budget.
Given the unpredictability and potential insufficiency of
revenue collections, various changes in State law relating to
sources of revenue, the collection of revenue and the
implementation of statutes which impact revenue may be
required to discharge this constitutional obligation.
(5) Section 11 of Article III of the Constitution of
Pennsylvania requires the adoption of a general appropriation
act that embraces "nothing but appropriations." While actual
items of appropriation can be contained in a General
Appropriations Act, the achievement and implementation of a
comprehensive budget involves more than subjects of
appropriations and dollar amounts. Ultimately, the budget has
to be balanced under section 13 of Article VIII of the
Constitution of Pennsylvania. This may necessitate changes to
sources of funding and enactment of statutes to achieve full
compliance with these constitutional provisions.
(6) For the reasons set forth in paragraphs (1), (2),
(3), (4) and (5), it is the intent of the General Assembly
through this act to provide for the implementation of the
2015-2016 Commonwealth budget.
(7) Every provision of this act relates to the
implementation of the operating budget of the Commonwealth
20150HB1327PN2969 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
for this fiscal year, addressing in various ways the fiscal
operations, revenues and potential liabilities of the
Commonwealth. To that end, this act is intended to implement
the 2015-2016 Commonwealth budget without specifically
appropriating public money from the General Fund. This act
provides accountability for spending and makes transfers or
other changes necessary to impact the availability of revenue
in order to meet the requirements of section 13 of Article
VIII of the Constitution of Pennsylvania and to implement the
act of December 29, 2015 (P.L. , No.10A), known as the
General Appropriation Act of 2015, AND THE ACT OF , 2016
(P.L. , NO. ), KNOWN AS THE SUPPLEMENT TO THE GENERAL
APPROPRIATION ACT OF 2015.
Section 2. (Reserved).
Section 3. The act is amended by adding sections to read:
Section 1602-D.1. Financial recovery.
As of the date of the termination of distressed status under
the provisions of the act of July 10, 1987 (P.L.246, No.47),
known as the Municipalities Financial Recovery Act, a city of
the second class A that is levying, or had been authorized to
levy within the previous three fiscal years, a local services
tax in excess of $52 in accordance with the Municipalities
Financial Recovery Act, may, upon the termination of distressed
status, levy, without court approval, the local services tax at
a rate which does not exceed $156 per year, if a pension system
of the municipality is in moderate distress or severe distress
as defined by section 503(d) of the act of December 18, 1984
(P.L.1005, No.205), known as the Municipal Pension Plan Funding
Standard and Recovery Act, and the amount in excess of $52 is
used solely to defray the municipality's unfunded actuarial
20150HB1327PN2969 - 4 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
accrued pension liability. A local services tax in excess of $52
may not be levied in the same year that the income of
nonresidents is subject to a tax above maximum rates as provided
in section 607(f) of the Municipal Pension Plan Funding Standard
and Recovery Act.
Section 1608-E. Environmental Stewardship Fund.
(a) Transfer.--Notwithstanding 58 Pa.C.S. § 2505(b)(1)(ii)
(relating to funds), the amount transferred from the fund to the
Marcellus Legacy Fund for distribution to the Environmental
Stewardship Fund in fiscal year 2015-2016 shall be $20,000,000.
(b) Allocation of appropriation.--Money appropriated from
the Environmental Stewardship Fund under 27 Pa.C.S. § 6104(c)
(relating to fund) in fiscal year 2015-2016 shall be allocated
as follows:
(1) 23% to the department.
(2) 35.7% to the Department of Environmental Protection.
(3) 18.7% to the Department of Agriculture.
(4) 22.6% to the Pennsylvania Infrastructure Investment
Authority.
(c) Debt payments.--Nothing in this section shall affect
payments authorized under 27 Pa.C.S. § 6115 (relating to
Commonwealth indebtedness).
Section 1604-H. Department of Community and Economic
Development.
Tax credits awarded under Article XVII-F of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in
fiscal year 2015-2016 to a business firm making an approved
contribution to a scholarship organization, prekindergarten
scholarship organization, opportunity scholarship organization
or educational improvement organization may be used in the
20150HB1327PN2969 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
taxable year in which a completed application was submitted by
the business firm or the taxable year in which the contribution
was made by the business firm, as determined by the business
firm.
Section 4. (Reserved).
Section 5. Section 1702-A of the act, amended July 10, 2014
(P.L.1053, No.126), is amended to read:
Section 1702-A. Funding.
(a) Intent.--It is hereby declared as the intent and goal of
the General Assembly to create a stabilization reserve in an
eventual amount of 6% of the revenues of the General Fund of the
Commonwealth.
(b) Transfer of portion of surplus.--
(1) Except as may be provided in paragraph (2), for
fiscal years beginning after June 30, 2002, the following
apply:
(i) Except as set forth in this paragraph, if the
Secretary of the Budget certifies that there is a surplus
in the General Fund for a specific fiscal year, 25% of
the surplus shall be deposited by the end of the next
succeeding quarter into the Budget Stabilization Reserve
Fund.
(ii) If the Secretary of the Budget certifies, after
June 30, 2005, that there is a surplus in the General
Fund for the fiscal year 2004-2005, 15% of the surplus
shall be deposited by the end of the next succeeding
quarter into the Budget Stabilization Reserve Fund.
(iii) No amount of the surplus in the General Fund
for fiscal year 2007-2008 may be deposited into the
Budget Stabilization Reserve Fund.
20150HB1327PN2969 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(iv) No amount of the surplus in the General Fund
for fiscal year 2010-2011 may be deposited into the
Budget Stabilization Reserve Fund.
(v) No amount of the surplus in the General Fund for
fiscal year 2011-2012 may be deposited into the Budget
Stabilization Reserve Fund.
(vi) No amount of the surplus in the General Fund
for fiscal year 2012-2013 may be deposited into the
Budget Stabilization Reserve Fund.
(vii) No amount of the surplus in the General Fund
for fiscal year 2013-2014 may be deposited into the
Budget Stabilization Reserve Fund.
(viii) No amount of the surplus in the General Fund
for fiscal year 2014-2015 may be deposited into the
Budget Stabilization Reserve Fund.
(2) If, at the end of any fiscal year, the ending
balance of the Budget Stabilization Reserve Fund equals or
exceeds 6% of the actual General Fund revenues received for
the fiscal year in which the surplus occurs, 10% of the
surplus shall be deposited by the end of the next succeeding
quarter into the Budget Reserve Stabilization Fund.
(c) Appropriated funds.--The General Assembly may at any
time provide additional amounts from any funds available to this
Commonwealth as an appropriation to the Budget Stabilization
Reserve Fund.
Section 6. The heading of Subarticle D of Article XVII-A of
the act, reenacted June 30, 2011 (P.L.159, No.26), is reenacted
to read:
SUBARTICLE D
INVESTMENTS
20150HB1327PN2969 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 7. Sections 1731-A and 1732-A of the act, reenacted
and amended June 30, 2011 (P.L.159, No.26), are reenacted and
amended to read:
Section 1731-A. State Workers' Insurance Board.
Notwithstanding any inconsistent provisions of section 1512
of the act of June 2, 1915 (P.L.736, No.338), known as the
Workers' Compensation Act, section 504 of the act of November
30, 1965 (P.L.847, No.356), known as the Banking Code of 1965,
[section 922 of the act of December 14, 1967 (P.L.746, No.345),
known as the Savings Association Code of 1967,] and any other
law of this Commonwealth, the power of the State Workers'
Insurance Board to invest money shall include the power to hold,
purchase, sell, assign, transfer and dispose of securities,
including common stock with the following restrictions:
(1) Investments in equities may not exceed the lesser
of:
(i) 15% of the State Workers' Insurance Fund's
assets; or
(ii) the State Workers' Insurance Fund's statutory
surplus after discount, except that, notwithstanding the
statutory surplus, the State Workers' Insurance Fund is
authorized to invest up to 7 1/2% of the book value of
its assets in equities.
(1.1) Investments in equities shall be made subject to
the prudent investor rule as provided for under 20 Pa.C.S. §
7203 (relating to prudent investor rule).
(2) The State Workers' Insurance Board shall establish a
policy for investments and shall meet at least annually to
develop a schedule for rebalancing its investments in
securities to meet the restriction of paragraph (1).
20150HB1327PN2969 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 1732-A. Expiration.
This subarticle shall expire June 30, [2015] 2018.
Section 8. Section 1774.1-A of the act, added July 18, 2013
(P.L.574, No.71), is amended to read:
Section 1774.1-A. Other grants.
(a) Water and sewer.--For [fiscal year 2013-2014] the
specified fiscal years, from funds available to the authority
under this act or under 58 Pa.C.S. § 2315(a.1) (4) (relating to
Statewide initiatives), that are unrelated to indebtedness
incurred for the program, the following apply:
(1) For fiscal year 2013-2014, the sum of $3,000,000
shall be available for water and sewer projects with a cost
of not less than $50,000 and not more than $150,000.
(2) For fiscal year 2015-2016 AND 2016-2017 , the sum of
$22,000,000 shall be available for distribution or
reimbursement for water and sewer projects with a cost of not
less than $30,000 and not more than $500,000.
(b) Guidelines.--The authority shall adopt guidelines for
the approval of applications under this section and shall ensure
that grants are made available to all geographic areas of this
Commonwealth.
Section 9. Sections 1713-A.1 and 1723-A.1 of the act,
amended July 10, 2014 (P.L.1053, No.126), are amended to read:
Section 1713-A.1. Use of fund.
(a) Annual report.--The Governor shall report on the fund in
the annual budget which shall include the amounts appropriated
to each program.
(b) Appropriations.--
(1) Except as otherwise provided in paragraphs (1.1)[,
(1.2) and (1.3)] through (1.5), the General Assembly
20150HB1327PN2969 - 9 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
appropriates moneys in the fund in accordance with the
following percentages based on the annual payment received in
each year:
(i) Thirteen percent for home and community-based
services pursuant to Chapter 5 of the Tobacco Settlement
Act.
(ii) Four and five-tenths percent for tobacco use
prevention and cessation programs pursuant to Chapter 7
of the Tobacco Settlement Act.
(iii) Twelve and six-tenths percent for health and
related research pursuant to section 906 of the Tobacco
Settlement Act.
(iv) One percent for health and related research
pursuant to section 909 of the Tobacco Settlement Act.
(v) Eight and eighteen one-hundredths percent for
the uncompensated care payment program pursuant to
Chapter 11 of the Tobacco Settlement Act.
(vi) Thirty percent for the purchase of Medicaid
benefits for workers with disabilities pursuant to
Chapter 15 of the Tobacco Settlement Act.
(vii) Eight percent for the expansion of the PACENET
program pursuant to Chapter 23 of the Tobacco Settlement
Act.
(viii) Twenty-two and seventy-two one-hundredths
percent shall remain in the fund to be separately
appropriated for health-related purposes.
(1.1) For fiscal year 2013-2014, the General Assembly
appropriates money in the fund in accordance with the
following percentage based on the annual payment received
each year:
20150HB1327PN2969 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(i) Thirteen percent for home-based and community-
based services under Chapter 5 of the Tobacco Settlement
Act.
(ii) Two and ninety-three [hundreths] hundredths
percent for tobacco use prevention and cessation programs
under Chapter 7 of the Tobacco Settlement Act.
(iii) Six and three-tenths percent for health and
related research under section 906 of the Tobacco
Settlement Act.
(iv) One-half percent for health and related
research under section 909 of the Tobacco Settlement Act.
(v) Four and nine-hundredths percent for the
uncompensated care payment program under Chapter 11 of
the Tobacco Settlement Act.
(vi) Thirty percent for the purchase of Medicaid
benefits for workers with disabilities under Chapter 15
of the Tobacco Settlement Act.
(vii) Forty-three and eighteen hundredths percent
shall remain in the fund to be separately appropriated
for health-related purposes.
(1.2) For fiscal year 2014-2015, money in the fund from
a payment received due to the recalculation of a prior annual
payment shall remain in the fund to be separately
appropriated for health-related purposes.
(1.3) For fiscal year 2014-2015, the General Assembly
appropriates money in the fund in accordance with the
following percentages based on the annual payment received
each year:
(i) Thirteen percent for home-based and community-
based services under Chapter 5 of the Tobacco Settlement
20150HB1327PN2969 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Act.
(ii) Four and five-tenths percent for tobacco use
prevention and cessation programs under Chapter 7 of the
Tobacco Settlement Act.
(iii) Twelve and six-tenths percent for health and
related research under section 906 of the Tobacco
Settlement Act.
(iv) One percent for health and related research
under section 909 of the Tobacco Settlement Act.
(v) Eight and eighteen hundredths percent for the
uncompensated care payment program under Chapter 11 of
the Tobacco Settlement Act.
(vi) Fifteen and twelve hundredths percent for the
purchase of Medicaid benefits for workers with
disabilities under Chapter 15 of the Tobacco Settlement
Act.
(vii) Forty-five and six-tenths percent shall remain
in the fund to be separately appropriated for health-
related purposes.
(1.4) For fiscal year 2015-2016, money in the fund from
a payment received due to the recalculation of a prior annual
payment shall remain in the fund to be separately
appropriated for health-related purposes.
(1.5) For fiscal year 2015-2016, the General Assembly
appropriates money in the fund in accordance with the
following percentages based on the annual payment received
each year:
(i) Thirteen percent for home-based and community-
based services under Chapter 5 of the Tobacco Settlement
Act.
20150HB1327PN2969 - 12 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(ii) Four and five-tenths percent for tobacco use
prevention and cessation programs under Chapter 7 of the
Tobacco Settlement Act.
(iii) Twelve and six-tenths percent for health and
related research under section 906 of the Tobacco
Settlement Act.
(iv) One percent for health and related research
under section 909 of the Tobacco Settlement Act.
(v) Eight and eighteen hundredths percent for the
uncompensated care payment program under Chapter 11 of
the Tobacco Settlement Act.
(vi) Thirty percent for the purchase of Medicaid
benefits for workers with disabilities under Chapter 15
of the Tobacco Settlement Act.
(vii) Thirty and seventy-two hundredths percent
shall remain in the fund to be separately appropriated
for health-related purposes.
(2) In addition, any Federal funds received for any of
these programs are specifically appropriated to those
programs.
(3) All other payments and revenue received in the fund
other than the annual payment shall remain in the fund and
are available to be appropriated for health-related purposes.
(c) Lapses.--Lapses shall remain in the fund except that
lapses from money provided for the home and community-based care
services shall be reallocated to the home and community-based
care program for use in succeeding years.
(d) Lobbying restrictions.--No money derived from
appropriations made by the General Assembly from the fund may be
used for the lobbying of any State public official.
20150HB1327PN2969 - 13 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(f) Allocation of local program funding.--
(1) Funding for local programs under section 708(b) of
the Tobacco Settlement Act shall be allocated as follows:
(i) Thirty percent of grant funding to primary
contractors for local programs shall be allocated equally
among each of the 67 counties.
(ii) The remaining 70% of the grant funding to
primary contractors for local programs shall be allocated
on a per capita basis of each county with a population
greater than 60,000. The per capita formula shall be
applied only to that portion of the population that is
greater than 60,000 for each county.
(2) Budgets shall be developed by each primary
contractor to reflect service planning and expenditures in
each county. Each primary contractor shall ensure that
services are available to residents of each county and must
expend the allocated funds on a per-county basis pursuant to
paragraph (1) and this paragraph.
(3) The Department of Health shall compile a detailed
annual report of expenditures per county and the specific
programs offered in each region. This report shall be made
available on the Department of Health's publicly available
Internet website within 60 days following the close of each
fiscal year.
(4) During the third quarter of the fiscal year, funds
which have not been spent within a service area may be
reallocated to support programming in the same region.
(g) Transfer.--The strategic contribution payment received
in fiscal year 2012-2013, and all assets and cash in the Health
Account, shall be transferred to the fund by August 1, 2013.
20150HB1327PN2969 - 14 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 1723-A.1. Distributions from Pennsylvania Race Horse
Development Fund.
Funds in the fund are appropriated to the department on a
continuing basis for the purposes set forth in this subsection
and shall be distributed to each active and operating Category 1
licensee conducting live racing as follows:
(1) An amount equal to 18% of the daily gross terminal
revenue of each Category 1 licensee shall be distributed to
each active and operating Category 1 licensee conducting live
racing unless the daily assessments are affected by the daily
assessment cap provided for in 4 Pa.C.S. § 1405(c) (relating
to Pennsylvania Race Horse Development Fund). In cases in
which the daily assessment cap affects daily assessments, the
distribution to each active and operating Category 1 licensee
conducting live racing for that day shall be a percentage of
the total daily assessments paid into the fund for that day
equal to the gross terminal revenue of each active and
operating Category 1 licensee conducting live racing for that
day divided by the total gross terminal revenue of all active
and operating Category 1 licensees conducting live racing for
that day. Except as provided in paragraphs (2) and (2.1), the
distributions to licensed racing entities from the fund shall
be allocated as follows:
(i) Eighty percent shall be deposited weekly into a
separate, interest-bearing purse account to be
established by and for the benefit of the horsemen. The
earned interest on the account shall be credited to the
purse account. Licensees shall combine these funds with
revenues from existing purse agreements to fund purses
for live races consistent with those agreements with the
20150HB1327PN2969 - 15 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
advice and consent of the horsemen.
(ii) For thoroughbred tracks, 16% shall be deposited
on a monthly basis into the Pennsylvania Breeding Fund as
defined in section 223 of the Race Horse Industry Reform
Act. For standardbred tracks, 8% shall be deposited on a
monthly basis in the Pennsylvania Sire Stakes Fund as
defined in section 224 of the Race Horse Industry Reform
Act, and 8% shall be deposited on a monthly basis into a
restricted account in the State Racing Fund to be known
as the Pennsylvania Standardbred Breeders Development
Fund. The State Harness Racing Commission shall, in
consultation with the Secretary of Agriculture, by rule
or by regulation, adopt a standardbred breeders program
that will include the administration of the Pennsylvania
Stallion Award, the Pennsylvania Bred Award and the
Pennsylvania Sired and Bred Award.
(iii) Four percent shall be used to fund health and
pension benefits for the members of the horsemen's
organizations representing the owners and trainers at the
racetrack at which the licensed racing entity operates
for the benefit of the organization's members, their
families, employees and others in accordance with the
rules and eligibility requirements of the organization,
as approved by the State Horse Racing Commission or the
State Harness Racing Commission. This amount shall be
deposited within five business days of the end of each
month into a separate account to be established by each
respective horsemen's organization at a banking
institution of its choice. Of this amount, $250,000 shall
be paid annually by the horsemen's organization to the
20150HB1327PN2969 - 16 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
thoroughbred jockeys or standardbred drivers organization
at the racetrack at which the licensed racing entity
operates for health insurance, life insurance or other
benefits to active and disabled thoroughbred jockeys or
standardbred drivers in accordance with the rules and
eligibility requirements of that organization.
(2) Distributions from the fund shall be allocated as
follows:
(i) For fiscal years 2013-2014 and 2014-2015, each
week, $802,682 in the fund shall be transferred to the
account. This transfer shall not exceed $17,659,000
annually.
(i.1) In addition to the transfer under subparagraph
(i), for a total of 14 weeks from the effective date of
this subparagraph, each week, $300,000 shall be
transferred from the fund, for a total amount of
$4,200,000, to the State Racing Fund to be used
exclusively for the enforcement of the act of December
17, 1981 (P.L.435, No.135), known as the Race Horse
Industry Reform Act. Moneys transferred pursuant to this
subparagraph shall not be transferred subsequently to any
other State fund or account for any purpose.
(i.2) For fiscal year 2015-2016, each week for 20
weeks, beginning on the effective date of this
subparagraph, $1,300,000 in the fund shall be transferred
to the account. The transfer shall not exceed $25,759,000
annually. BEGINNING ON THE EFFECTIVE DATE OF THIS
SUBPARAGRAPH, THE SUM OF $25,759,000 IN THE FUND SHALL BE
TRANSFERRED TO THE ACCOUNT IN EQUAL WEEKLY AMOUNTS
SUFFICIENT TO COMPLETE THE TRANSFER BY JUNE 30, 2016.
20150HB1327PN2969 - 17 -
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(ii) Each week, the money remaining in the fund
after any transfer under subparagraphs (i) [and], (i.1)
and (i.2) shall be distributed to each active and
operating Category 1 licensee conducting live racing in
accordance with the following formula:
(A) Divide:
(I) the total daily assessments paid, by
each active and operating Category 1 licensee
conducting live racing, into the fund for that
week; by
(II) the total daily assessments paid, by
all active and operating Category 1 licensees
conducting live racing, into the fund for that
week.
(B) Multiply the quotient under clause (A) by
the amount to be distributed under this subparagraph.
(iii) The distribution under subparagraph (ii) shall
be allocated as follows:
(A) The greater of 4% of the amount to be
distributed under subparagraph (ii) or $220,000 shall
be used to fund health and pension benefits for the
members of the horsemen's organizations representing
the owners and trainers at the racetrack at which the
licensed racing entity operates for the benefit of
the organization's members, their families, employees
and others in accordance with the rules and
eligibility requirements of the organization, as
approved by the State Horse Racing Commission or the
State Harness Racing Commission. This amount shall be
deposited within five business days of the end of
20150HB1327PN2969 - 18 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
each week into a separate account to be established
by each respective horsemen's organization at a
banking institution of its choice. Of this amount, a
minimum of $250,000 shall be paid annually by the
horsemen's organization to the thoroughbred jockeys
or standardbred drivers organization at the racetrack
at which the licensed racing entity operates for
health insurance, life insurance or other benefits to
active and disabled thoroughbred jockeys or
standardbred drivers in accordance with the rules and
eligibility requirements of that organization. The
total distribution under this clause in any fiscal
year shall not exceed $11,400,000.
(B) Of the money remaining to be distributed
under subparagraph (ii) after application of clause
(A), the following disbursements shall be made:
(I) Eighty-three and one-third percent of
the money to be distributed under this clause
shall be deposited on a weekly basis into a
separate, interest-bearing purse account to be
established by and for the benefit of the
horsemen. The earned interest on the account
shall be credited to the purse account. Licensees
shall combine these funds with revenues from
existing purse agreements to fund purses for live
races consistent with those agreements with the
advice and consent of the horsemen.
(II) For thoroughbred tracks, 16 and 2/3% of
the money to be distributed under this clause
shall be deposited on a weekly basis into the
20150HB1327PN2969 - 19 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Pennsylvania Breeding Fund established in section
223 of the Race Horse Industry Reform Act. For
standardbred tracks, 8 and 1/3% of the money to
be distributed under this clause shall be
deposited on a weekly basis into the Pennsylvania
Sire Stakes Fund as defined in section 224 of the
Race Horse Industry Reform Act; and 8 and 1/3% of
the money to be distributed under this clause
shall be deposited on a weekly basis into a
restricted account in the State Racing Fund to be
known as the Pennsylvania Standardbred Breeders
Development Fund. The State Harness Racing
Commission shall, in consultation with the
Secretary of Agriculture, promulgate regulations
adopting a standardbred breeders program that
will include the administration of the
Pennsylvania Stallion Award, the Pennsylvania
Bred Award and the Pennsylvania Sired and Bred
Award.
Section 9.1. The act is amended by adding a section to read:
Section 1724-A.1. Allocations from Pennsylvania Race Horse
Development Restricted Receipt Account.
(a) General rule.--Except as otherwise provided under
subsection (b), money transferred to the Pennsylvania Race Horse
Development Restricted Receipt Account each fiscal year shall
only be used as appropriated by the General Assembly.
(b) Exception.--For the 2015-2016 fiscal year, money in the
account shall be distributed as follows:
(1) Nineteen and forty-one hundredths percent shall be
transferred to the State Farm Products Show Fund.
20150HB1327PN2969 - 20 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(2) Twenty and seventy-seven hundredths percent is
hereby appropriated upon approval of the Governor for use by
the Animal Health Commission.
(3) Twenty and sixty-one hundredths percent is hereby
appropriated upon approval of the Governor for use by the
Pennsylvania Veterinary Laboratory System.
(4) Fifteen and fifty-three hundredths percent is hereby
appropriated upon approval of the Governor for use for
payments to Pennsylvania fairs.
(5) Twenty-three and sixty-eight hundredths percent
shall be transferred to the Racing Fund.
Section 10. Article XVII-A.1 of the act is amended by adding
subarticles to read:
SUBARTICLE D
MISCELLANEOUS LIMITATIONS AND TRANSFERS
Section 1731-A.1. (Reserved).
Section 1732-A.1. (Reserved).
Section 1733-A.1. Workmen's Compensation Administration Fund.
Within 30 days of the effective date of this section,
$3,100,000 shall be transferred from the Workmen's Compensation
Administration Fund to the Uninsured Employers Guarantee Fund.
Section 1734-A.1. Dormitory sprinklers.
By June 1, 2016, $4,500,000 shall be transferred from the
account established in section 3(b) of the act of December 20,
2001 (P.L.969, No.116), known as the Dormitory Sprinkler System
Act to the General Fund.
Section 1735-A.1. Drug and Alcohol Programs.
For fiscal year 2015-2016, $2,500,000 from the sale of liquor
and alcohol shall be transferred to the Department of Drug and
Alcohol Programs for the purposes set forth in section 802(c) of
20150HB1327PN2969 - 21 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE Liquor
Code.
SUBARTICLE E
NATURAL GAS INFRASTRUCTURE DEVELOPMENT FUND
Section 1741-A.1. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." The Commonwealth Financing Authority.
"Fund." The Natural Gas Infrastructure Development Fund.
Section 1742-A.1. Natural Gas Infrastructure Development Fund.
The Natural Gas Infrastructure Development Fund is
established in the State Treasury.
Section 1743-A.1. Transfer of funds.
The sum of $12,000,000 allocated under section 307(c) of the
act of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known as the
Alternative Energy Investment Act, shall be transferred to the
fund for use by the authority.
Section 1744-A.1. Use of funds.
(a) Grants.--The authority shall use the fund to provide
grants to obtain access to natural gas to any of the following:
(1) Hospitals.
(2) Businesses.
(3) Economic development organizations.
(4) Municipalities.
(5) Counties.
(6) School districts.
(b) Eligible uses.--Grants awarded under this section may be
used for projects which expand access to natural gas
infrastructure, including costs associated with limiting
20150HB1327PN2969 - 22 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
environmental impacts and protecting public lands.
(c) Guidelines.--The authority shall develop guidelines for
the following:
(1) Selecting eligible projects to receive grants.
(2) Use of money by applicants that receive grants.
Section 1745-A.1. Amount of grant.
The authority may provide a grant for not more than the
lesser of:
(1) 50% of the cost of a project; or
(2) $1,000,000.
Section 1746-A.1. Guidelines for applications.
The authority shall:
(1) develop guidelines for submitting applications for a
grant; and
(2) give priority to applications that will result in
adjoining residential and nonresidential properties obtaining
natural gas.
Section 11. Section 1719-E of the act, added July 17, 2007
(P.L.141, No.42), is amended to read:
Section 1719-E. Department of Community and Economic
Development.
(a) Appropriations.--The following shall apply to
appropriations for the Department of Community and Economic
Development:
(1) No more than 20% of funds appropriated for grants
under the act of May 20, 1949 (P.L.1633, No.493), known as
the Housing and Redevelopment Assistance Law, shall be
allocated to any one political subdivision.
(2) (Reserved).
(b) Limitation.--The Secretary of Community and Economic
20150HB1327PN2969 - 23 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Development is prohibited from certifying that the
Intergovernmental Cooperation Authority is no longer necessary
under section 204 of the act of February 12, 2004 (P.L.73,
No.11), known as the Intergovernmental Cooperation Authority Act
for Cities of the Second Class, until oversight is terminated
pursuant to the act of July 10, 1987 (P.L.246, No.47), known as
the Municipalities Financial Recovery Act.
Section 12. Section 1723-E of the act, amended October 9,
2009 (P.L.537, No.50), is amended to read:
Section 1723-E. Department of Environmental Protection.
(a) Fee.--The Department of Environmental Protection may
assess a fee to applicants who apply for funds under section 306
of the act of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known
as the Alternative Energy Investment Act. The department shall
publish the fee on its publicly accessible Internet website.
Proceeds from the fee shall be used to administer the provision
of loans, grants, reimbursements or rebates under section 306 of
the Alternative Energy Investment Act. No fee authorized under
this section may exceed $150 for commercial applicants and $100
for residential applicants.
(b) Submission of State plan for greenhouse gas
regulation.--This subsection is intended to address changes in
State plan submission deadlines adopted by the EPA which occur
in fiscal year 2015-2016 MADE NECESSARY BY THE STAY OF THE CLEAN
POWER PLAN BY THE UNITED STATES SUPREME COURT IN FISCAL YEAR
2015-2016 in order to allow the General Assembly adequate time
to respond to the State plan by coordinating this article and
Articles XVII-L and XVII-M with the act of October 22, 2014
(P.L.2873, No.175), known as the Pennsylvania Greenhouse Gas
Regulation Implementation Act. The following apply:
20150HB1327PN2969 - 24 -
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) Not less than 180 days prior to the department
submitting the State plan to the EPA for approval, the
department shall transmit the plan to the General Assembly
for approval.
(2) Upon transmission under paragraph (1), the State
plan shall be:
(i) proposed as a resolution in each chamber;
(ii) placed on the calendar of each chamber for the
next legislative day following transmission; and
(iii) c onsidered by each chamber within 20 days
after placement under subparagraph (ii).
(3) If each chamber of the General Assembly adopts the
resolution under paragraph (2), the department may submit the
State plan to the EPA for consideration.
(4) If either chamber of the General Assembly
disapproves the resolution under paragraph (2), the
department may not submit the State plan to the EPA for
consideration. The department shall do all of the following:
(i) Determine the reasons for disapproval and modify
the State plan.
(ii) Cause the State plan to be resubmitted to the
General Assembly utilizing the process delineated under
paragraph (2) within 60 days of the disapproval.
(iii) If necessary, request an extension of time
from the EPA by submitting an initial State plan by
September 6, 2016, THE INITIAL STATE PLAN SUBMISSION
DEADLINE UNDER 40 CFR § 60.5760 (RELATING TO TIMING
REQUIREMENTS FOR PLAN SUBMISSION) that meets the minimum
requirements for an initial State plan, as specified in
the plan guidelines published by the EPA. The department
20150HB1327PN2969 - 25 -
<--<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
shall transmit the following message with its submittal
under this subparagraph:
Be advised that the State plan submitted by the
Pennsylvania Department of Environmental
Protection has not yet met the requirements of
the Pennsylvania Greenhouse Gas Regulation
Implementation Act requiring affirmative approval
of the General Assembly. It is the intention of
the Commonwealth of Pennsylvania to submit a
State plan which conforms to this rulemaking.
Under section 111(d) of the Clean Air Act, states
must be given an opportunity to meet Federal
environmental standards set forth by the
Environmental Protection Agency. The Commonwealth
of Pennsylvania hereby invokes the authority
provided to it under section 111(d) of the Clean
Air Act, and, in accordance with the Pennsylvania
Greenhouse Gas Implementation Act, will be making
a further filing with the agency.
(5) If no vote is taken by either chamber of the General
Assembly to approve or disapprove the resolution under
paragraph (2) before August 22, 2016 AT LEAST 14 DAYS PRIOR
TO THE FINAL STATE PLAN SUBMISSION DEADLINE UNDER 40 CFR §
60.5760 , the State plan shall be deemed approved and shall be
submitted to the EPA immediately.
(6) If either chamber of the General Assembly fails to
approve a resubmitted plan under paragraph (4)(ii) within 60
days of the FINAL STATE PLAN SUBMISSION extension deadline
under 40 CFR § 60.5760 (relating to timing requirements for
plan submission), the resubmitted plan shall be deemed
20150HB1327PN2969 - 26 -
<--
<--<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
approved.
(c) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"EPA." The Environmental Protection Agency or the
Administrator of the Environmental Protection Agency.
"Clean Power Plan." The EPA regulatory package entitled
"Carbon Pollution Emission Guidelines for Existing Stationary
Sources: Electric Utility Generating Units," published at 80 FR
64662-01 (October 23, 2015).
"State plan." The state plan authorized by the Clean Power
Plan under docket EPA-HQ-OAR-2013-0602-36051.
Section 13. Section 1724-E of the act, added July 17, 2007
(P.L.141, No.42), is amended to read:
Section 1724-E. Department of General Services [(Reserved)].
The General Assembly shall provide annual appropriations to
support the provision of fire services to the Capitol Complex in
the City of Harrisburg.
SECTION 13.1. THE ACT IS AMENDED BY ADDING A SECTION TO
READ:
SECTION 1724.1-E. PENNSYLVANIA GAMING CONTROL BOARD.
NOTWITHSTANDING 4 PA.C.S. PT. II (RELATING TO GAMING) OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, ANY PAYMENT OF A SLOT
MACHINE LICENSE FEE UNDER 4 PA.C.S. § 1209 (RELATING TO SLOT
MACHINE LICENSE FEE) RECEIVED BY THE PENNSYLVANIA GAMING CONTROL
BOARD AFTER JUNE 30, 2014, SHALL BE DEPOSITED IN AND CREDITED TO
THE GENERAL FUND.
Section 14. Section 1729-E of the act, amended or added July
17, 2007 (P.L.141, No.42) and July 2, 2012 (P.L.823, No.87), is
amended to read:
20150HB1327PN2969 - 27 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 1729-E. Department of [Public Welfare] Human Services.
The following shall apply to appropriations for the
Department of [Public Welfare] Human Services:
(1) Any rule, regulation or policy for the Federal or
State appropriations for the cash assistance, outpatient,
inpatient, capitation, behavioral health, long-term care and
Supplemental Grants to the Aged, Blind and Disabled, Child
Care and Attendant Care programs adopted by the Secretary of
[Public Welfare] Human Services during the fiscal year which
adds to the cost of any public assistance program shall be
effective only from and after the date upon which it is
approved as to the availability of funds by the Governor.
(2) Federal and State medical assistance payments. The
following shall apply:
(i) No funds appropriated for approved capitation
plans shall be used to pay a provider who fails to supply
information in a form required by the department in order
to facilitate claims for Federal financial participation
for services rendered to general assistance clients.
(ii) (Reserved).
(iii) (Reserved).
(iv) (Reserved).
(v) (Reserved).
(vi) (Reserved).
(vii) The following shall apply to eligibility
determinations for services under medical assistance:
(A) Unless the custodial parent or legally
responsible adult has provided to the department, at
application or redetermination, information required
by the department for inclusion in the annual report
20150HB1327PN2969 - 28 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
under clause (B), no funds from an appropriation for
medical assistance shall be used to pay for medical
assistance services for a child under 21 years of
age:
(I) who has a Supplemental Security Income
(SSI) level of disability; and
(II) whose parental income is not currently
considered in the eligibility determination
process.
(B) The department shall submit to the Public
Health and Welfare Committee of the Senate and the
Health Committee and Human Services Committee of the
House of Representatives an annual report including
the following data:
(I) Family size.
(II) Household income.
(III) County of residence.
(IV) Length of residence in this
Commonwealth.
(V) Third-party insurance information.
(VI) Diagnosis and type and cost of services
paid for by the medical assistance program on
behalf of each eligible and enrolled child
described in clause (A).
(3) The following shall apply:
(i) If, in any fiscal year, the annual appropriation
for payments to counties under section 704.1(a) of the
act of June 13, 1967 (P.L.31, No.21), known as the Human
Services Code, has not been enacted by September 1, an
amount shall be appropriated as of September 1 to the
20150HB1327PN2969 - 29 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Department of Human Services for the purpose of making
payments to counties under section 704.1(g)(5) and (g.1)
of the Human Services Code that is equal to the
difference between:
(A) the amount of funds specified as the
aggregate child welfare needs-based budget allocation
by the General Assembly under section 709.3(c.1) of
the Human Services Code in the general appropriation
act for the immediately preceding fiscal year as
necessary to fund child welfare services provided for
that fiscal year; and
(B) the amount of funds actually provided for
reimbursement to counties during that fiscal year.
(ii) The department may adjust any payment to a
county under section 704.1(g) of the Human Services Code
based on the amount of funds actually appropriated by the
General Assembly.
(iii) Within five days of executing the authority
granted in this paragraph and weekly thereafter, the
Secretary of the Budget shall inform the chairperson and
minority chairperson of the Appropriations Committee of
the Senate and the chairperson and minority chairperson
of the Appropriations Committee of the House of
Representatives of the amount of payments made to each
county under this section.
Section 15. Section 1733-E of the act, amended October 9,
2009 (P.L.537, No.50), is amended to read:
Section 1733-E. Pennsylvania State Police.
The following shall apply to appropriations for the
Pennsylvania State Police:
20150HB1327PN2969 - 30 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) The Pennsylvania State Police may not close a
barracks until the Pennsylvania State Police conducts a
public hearing and provides 30 days' notice, which shall be
published in the Pennsylvania Bulletin and in at least two
local newspapers.
(2) [(Reserved).] Payments made to municipalities under
53 Pa.C.S. § 2170 (relating to reimbursement of expenses)
shall be limited to money available. If money is not
available to make full payments, the Municipal Police
Officers' Education and Training Commission shall make
payments on a pro rata basis.
Section 16. Section 1741.1-E of the act, added July 10, 2014
(P.L.1053, No.126), is amended to read:
Section 1741.1-E. Environmental Quality Board.
(a) Regulations.--From funds appropriated to the
Environmental Quality Board, the board shall promulgate proposed
regulations and regulations under 58 Pa.C.S. (relating to oil
and gas) or other laws of this Commonwealth relating to
conventional oil and gas wells separately from proposed
regulations and regulations relating to unconventional gas
wells. All regulations under 58 Pa.C.S. shall differentiate
between conventional oil and gas wells and unconventional gas
wells. [Regulations promulgated under this section] This
subsection shall apply to regulations promulgated on or after
the effective date of this [section] subsection.
(b) Rulemaking prohibition.--
(1) The board may not adopt or promulgate:
(i) a revision of 25 Pa. Code Ch. 78 (relating to
oil and gas wells) applicable to the operation of
conventional oil and gas wells which was formulated or
20150HB1327PN2969 - 31 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
proposed in any form prior to the effective date of this
subsection; or
(ii) a regulation applicable to the operation of
conventional oil and gas wells which was formulated or
proposed in any form prior to the effective date of this
subsection.
(2) As to any rulemaking procedure concerning
conventional oil and gas wells which was published for the
board or the Department of Environmental Protection in the
Pennsylvania Bulletin after November 30, 2013, and before the
effective date of this paragraph, the General Assembly finds
and declares that, as to conventional oil and gas wells:
(i) The rulemaking procedure is invalid as not in
compliance with the rulemaking standards of the act of
June 25, 1982 (P.L.633, No.181), known as the Regulatory
Review Act.
(ii) Regulations promulgated under the rulemaking
procedure are abrogated. This subparagraph applies
regardless of the date of publication of final-form
rulemaking in the Pennsylvania Bulletin.
(c) Future rulemaking.--After the effective date of this
subsection, the board may initiate the formulation, adoption or
promulgation of regulations for operation of conventional oil
and gas wells in accordance with law. The formulation, adoption
or promulgation shall be accompanied by the submission of a
regulatory analysis form which is prepared following the
effective date of this paragraph.
[(b)] (d) Definitions.--As used in this section, the
following words and phrases shall have the meanings given to
them in this subsection unless the context clearly indicates
20150HB1327PN2969 - 32 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
otherwise:
"Conventional oil and gas well." A bore hole drilled for the
purpose of producing oil or gas from a conventional formation.
The term includes any of the following:
(1) A well drilled to produce oil.
(2) A well drilled to produce natural gas from
formations other than shale formations.
(3) A well drilled to produce natural gas from shale
formations located above the base of the Elk Group or its
stratigraphic equivalent.
(4) A well drilled to produce natural gas from shale
formations located below the base of the Elk Group where
natural gas can be produced at economic flow rates or in
economic volumes without the use of vertical or nonvertical
well bores stimulated by hydraulic fracture treatments or by
using multilateral well bores or other techniques to expose
more of the formation to the well bore.
(5) Irrespective of formation, a well drilled for
collateral purposes, such as monitoring, geologic logging,
secondary and tertiary recovery or disposal injection.
"Unconventional gas well." As defined in 58 Pa.C.S. § 2301
(relating to definitions).
Section 17. The act is amended by adding a section to read:
Section 1753-E. Commonwealth Financing Authority.
The following shall apply to the restricted receipts account
of the Commonwealth Financing Authority established under 4
Pa.C.S. § 1403(c)(2)(i)(D)(I) (relating to establishment of
State Gaming Fund and net slot machine revenue distribution):
(1) In addition to municipalities that are eligible to
receive grant funding under 4 Pa.C.S. § 1403(c)(2)(i)(D)(I),
20150HB1327PN2969 - 33 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
a county redevelopment authority within the county shall also
be eligible to receive grant funding to be used exclusively
for economic development projects or infrastructure. A county
redevelopment authority shall not be eligible to receive more
than 10% of the total grant funds awarded.
(2) Notwithstanding the act of February 9, 1999 (P.L.1,
No.1), known as the Capital Facilities Debt Enabling Act,
grants made under 4 Pa.C.S. § 1403(c)(2)(i)(D)(I) may be
utilized as local matching funds for other grants or loans
from the Commonwealth.
Section 17.1. The act is amended by adding an article to
read:
ARTICLE XVII-E.2
SCHOOL DISTRICT DEBT REFINANCING BONDS
Section 1701-E.2. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." The Commonwealth Financing Authority.
"Cost of a project." The term includes all items
reimbursable under law.
"Cost of PlanCon project." Approved reimbursable rentals and
approved reimbursable sinking fund charges, capital grants, any
necessary or appropriate reserves, costs of issuance and any
other financing costs related to a PlanCon project.
"Department." The Department of Education of the
Commonwealth.
"Finance." The lending or providing of funds to a school
district for payment of the cost of a project and the provision
of funds for a PlanCon project.
20150HB1327PN2969 - 34 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
"Financing Law." The provisions of 64 Pa.C.S. Ch. 15
(relating to Commonwealth Financing Authority).
"PlanCon project." The funding of approved reimbursable
rentals for approved leases and approved reimbursable sinking
fund charges authorized under section 2574 of the Public School
Code of 1949 and capital grants for a project authorized to be
approved under section 2574.4 of the Public School Code of 1949.
"Project." As defined in 64 Pa.C.S. Ch. 15 (relating to
Commonwealth Financing Authority) or any project of a school
district that is eligible for reimbursement by the Commonwealth
as required under Subarticle (f) of Article XXV of the Public
School Code of 1949 for approved rental or sinking fund charges.
"Public School Code of 1949." The act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949.
Section 1702-E.2. Bond issuance.
(a) Declaration of policy.--The General Assembly finds and
declares that:
(1) Funding the payment of reimbursements to school
districts for construction and reconstruction projects,
through the authority, is in the best interest of the
Commonwealth.
(2) The Financing Law is to be liberally construed to
effect the legislative and public purposes.
(3) One of those stated purposes is the protection of
"the health, safety and general welfare of the people of this
Commonwealth" pursuant to 64 Pa.C.S. § 1503(6) (relating to
findings and declaration of policy).
(4) In order to accomplish such a goal "it is desirable
to build, improve and finance facilities owned by
municipalities, municipal authorities and other authorities
20150HB1327PN2969 - 35 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
and instrumentalities of the Commonwealth," which includes
school districts, pursuant to 64 Pa.C.S. § 1503(7).
(b) Authority.--Notwithstanding any other law the authority
shall establish a program to issue bonds on behalf of school
districts to provide reimbursements from the Commonwealth as
required under Article XXV of the Public School Code of 1949 for
approved rental or sinking fund charges.
(c) Debt or liability.--
(1) Bonds issued under this article shall not be a debt
or liability of the Commonwealth and shall not create or
constitute any indebtedness, liability or obligation of the
Commonwealth.
(2) Bond obligations shall be payable solely from
revenues or funds pledged or available for repayment as
authorized under this article.
(3) Each bond must contain on its face a statement that:
(i) The authority is obligated to pay the principal
of or interest on the bonds only from the revenues or
funds pledged or available for repayment as authorized
under this article.
(ii) Neither the Commonwealth nor any school
district is obligated to pay the principal of or interest
on the bonds.
(iii) The full faith and credit of the Commonwealth
or of any school district is not pledged to the payment
of the principal of or the interest on the bonds.
(D) REVIEW FOR FORM AND LEGALITY.--FOR THE PURPOSES OF
ISSUING BONDS UNDER THIS ARTICLE, THE DUTIES OF THE ATTORNEY
GENERAL UNDER SECTION 204 OF THE ACT OF OCTOBER 15, 1980
(P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT,
20150HB1327PN2969 - 36 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
RELATING TO THE ISSUANCE OF BONDS MAY BE PERFORMED BY THE FIRST
DEPUTY ATTORNEY GENERAL.
(E) TIMING.--THE AUTHORITY SHALL ISSUE A REQUEST FOR
PROPOSALS FOR THE ISSUANCE OF BONDS NO LATER THAN APRIL 15,
2016. THE AUTHORITY SHALL THEN SELECT A QUALIFIED PROPOSAL FOR
THE ISSUANCE OF BONDS NO LATER THAN MAY 1, 2016.
Section 1703-E.2. Limitations on bond issuance.
The authority may issue bonds for a PlanCon project in an
aggregate principal amount not to exceed $2,500,000,000, unless
the authority and the department determine this amount is
insufficient to carry out the purposes of this article, then the
authority shall adopt a resolution to petition the Secretary of
the Budget to increase the maximum aggregate principal amount.
The Secretary of the Budget may approve the petition and, if
approved, shall publish notice of the approval in the
Pennsylvania Bulletin. The authority shall not issue any bonds
for the PlanCon project, except refunding bonds, after June 30,
2025. The authority, in consultation with the department and the
Office of the Budget, shall determine the principal amounts of
taxable and tax-exempt bonds to be issued during a fiscal year.
Notwithstanding any other limitation, the authority, at the
request of the department, may issue refunding bonds at any time
while bonds issued for the PlanCon project are outstanding,
provided that the final maturity of any series of bonds being
refunded shall not be extended. Interest on bonds issued for the
PlanCon project and refunding bonds authorized under this
section shall be payable at such time or times as the authority
shall determine in the resolution authorizing such bonds and
shall otherwise be subject to the other provisions of the
Financing Law. The aggregate principal amount of bonds set forth
20150HB1327PN2969 - 37 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
in this section shall not be subject to the debt limitations set
forth in 64 Pa.C.S. § 1543 (relating to indebtedness).
Section 1704-E.2. Service agreement authorized.
The authority and the department may enter into any agreement
or service agreement to effectuate the purposes of this article,
including an agreement to secure bonds issued for a PlanCon
project, pursuant to which the department shall agree to pay
service charges to the authority in each fiscal year that the
bonds or refunding bonds are outstanding in amounts sufficient
to timely pay in full the debt service and any other financing
costs due on the bonds issued for the PlanCon project. The
department's payment of such service charges shall be subject to
and dependent upon the appropriation of funds by the General
Assembly to the department for payment of the service charges.
The service agreement may be amended or supplemented by the
authority and the department in connection with the issuance of
any series of bonds or refunding bonds authorized in this
section.
Section 1705-E.2. Deposit of bond proceeds.
The net proceeds of bonds, other than refunding bonds,
exclusive of costs of issuance, reserves and any other financing
charges, shall be transferred by the authority to the State
Treasurer for deposit into a restricted account established in
the State Treasury and held solely for the purpose of paying
costs of a PlanCon project which are due to school districts.
Payment by the department shall follow the process required by
Article VII of the Public School Code of 1949, unless the
department is specifically directed to follow a different
process by this article. The department shall requisition
payments due to school districts from that account. To pay for
20150HB1327PN2969 - 38 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
expenses related to its administration of this program, the
department, with the approval of the Governor and the authority,
may charge a fee against the proceeds deposited in the
restricted account.
Section 1706-E.2. Sinking fund charges for school building
projects.
The following shall apply:
(1) All school districts which submitted completed
applications to the department prior to the effective date of
this section, and which vote to proceed with construction and
awarded bids on their construction contracts no later than
July 1, 2019, shall, as permitted by law, either be awarded a
one-time capital grant, if available, for the approved
project in lieu of approved reimbursement payments or, if not
available, shall receive payments in the form of
reimbursements.
(2) The department shall administer the payments due and
payable under this section, and shall determine the amount of
the capital grant due each school district which shall not
exceed the maximum reimbursable project amount.
Section 1707-E.2. Limitation on new applications for Department
of Education approval of public school building
projects.
For the 2015-2016 and 2016-2017 school years, the Department
of Education shall not accept or approve new building
construction or reconstruction project applications. Completed
school building construction or reconstruction project
applications received by the Department of Education by February
APRIL 15, 2016, are not subject to this subsection.
Section 1708-E.2. Public School Building Construction and
20150HB1327PN2969 - 39 -
<--
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Reconstruction Advisory Committee.
(a) Establishment.--There is established an advisory
committee.
(b) Duties.--The committee shall review and make findings
and recommendations related to the program for State
reimbursement for construction and reconstruction and lease of
public school buildings.
(c) Membership.--The advisory committee shall consist of the
following:
(1) The Secretary of Education or a designee.
(2) One member appointed by the President pro tempore of
the Senate and the Speaker of the House of Representatives.
(3) A representative from each of the following:
(i) The Pennsylvania Association of School Business
Officials.
(ii) The Pennsylvania School Boards Association.
(4) The chairperson and minority chairperson of the
Appropriations Committee and Education Committee of the
Senate and the chairperson and minority chairperson of the
Appropriations Committee and Education Committee of the House
of Representatives.
(5) One member appointed by the President pro tempore of
the Senate.
(6) One member appointed by the Minority Leader of the
Senate.
(7) One member appointed by the Speaker of the House of
Representatives.
(8) One member appointed by the Minority Leader of the
House of Representatives.
(d) First meeting.--The committee shall hold its first
20150HB1327PN2969 - 40 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
meeting within 30 days of the effective date of this section
regardless of whether all of the committee members have been
appointed to the committee. At the first meeting, the Department
of Education shall present its report relating to the Statewide
analysis of school facilities and capital needs as required
under section 732.1 of the Public School Code of 1949.
(e) Chairperson.--The committee shall appoint a member to
serve as chairperson of the committee.
(f) Call of chairperson.--The committee shall hold meetings
at the call of the chairperson.
(g) Reimbursement.--The members may not receive compensation
for their services, but shall be reimbursed for all necessary
travel and other reasonable expenses incurred in connection with
the performance of their duties as members of the committee.
(h) Support.--The General Assembly shall provide
administrative support, meeting space and any other assistance
required by the committee to carry out its duties under this
section in cooperation with the department. The department shall
provide the committee with data, research and other information
upon request.
(i) Report.--The committee shall issue a report not later
than November 1, 2016 MAY 15, 2017 , of the committee's findings
to the Governor, the President pro tempore of the Senate, the
Majority Leader and Minority Leader of the Senate, the
Appropriations Committee and Education Committee of the Senate,
the Speaker of the House of Representatives, the Majority Leader
and Minority Leader of the House of Representatives, the
Appropriations Committee and Education Committee of the House of
Representatives and the Secretary of Education.
Section 1709-E.2. Public school building lease and debt service
20150HB1327PN2969 - 41 -
<--<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
reimbursements for fiscal year 2015-2016.
(a) General rule.--For the 2015-2016 fiscal year, the
Department of Education shall utilize undistributed funds not
expended as of December 20, 2015 MARCH 14, 2016 , from
appropriations for payment on account of annual rental or
sinking fund charges on school buildings, including charter
schools, to make reimbursements for school building leases and
debt service necessary to make payments in fiscal year 2015-2016
under this article.
(b) Exclusion.--This section shall not include reimbursement
for debt service meeting the criteria for bond issuance under
this article.
Section 1710-E.2. Posting of information by department.
No later than March JUNE 1, 2016, and every 90 days
thereafter, the Department of Education shall post and update on
its publicly accessible Internet website in a searchable and
sortable format the following information related to public
school construction and reconstruction projects, building
purchases and lease reimbursements submitted for the approval
of, or approved by, the department:
(1) The type of project, elementary school, middle
school, intermediate school, high school, charter school or
vocational technical school by school entity.
(2) The scope of project, new construction, renovation,
addition, purchase or lease.
(3) The date of receipt of each application.
(4) The date of department approval of each application.
(5) The date of approval or denial of any waiver or
exception granted by the department.
(6) The reason for approval or denial of any waiver or
20150HB1327PN2969 - 42 -
<--<--
<--<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
exception granted by the department.
(7) The date of submission of the application for each
step of the reimbursement process.
(8) The date of approval of the application for each
step of the reimbursement process.
(9) The anticipated total project cost.
(10) Whether the project reached the maximum
reimbursable project amount.
(11) The anticipated term of State reimbursement.
(12) The anticipated total reimbursement amount.
(13) The temporary reimbursable percentage.
(14) The permanent reimbursable percentage.
(15) The dates of expected State payments.
(16) The dates of expected school district payments.
(17) Whether the project was financed by cash.
(18) The date a project was voided, if applicable.
(19) A summary of the terms of the project's debt
service or lease.
(20) An analysis of the callability of the project's
debt service.
Section 1711-E.2. Documentation requirements.
Notwithstanding any other provision of law, the following
shall apply to school building construction and reconstruction
projects for which reimbursement from the appropriation for
payments on account of annual rental or sinking fund charges on
school buildings or charter schools is being sought:
(1) For a school district that has received approval
from the department for reimbursement but fails to submit all
additional project documentation requested within 90 days of
the request, the department shall move the project back in
20150HB1327PN2969 - 43 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the reimbursement order until such time as the school
district complies with the information request and shall move
other projects up in the reimbursement order.
(2) The Secretary of Education may grant waivers to
school districts that fail to submit requested documentation
under paragraph (1) and are in the process of reconciling
financial records, or are facing litigation or bond
refinancing delays.
Section 18. Repeals are as follows:
(1) The General Assembly finds and declares as follows:
(i) Each year, articles on budget implementation are
added to the act.
(ii) These articles are temporary in nature but are
placed permanently into the act, utilizing article
numbers and section numbers.
(iii) Reusing article numbers and section numbers
will keep the text of the act more concise.
(iv) The repeals under paragraph (2) are necessary
to effectuate subparagraph (iii).
(2) Articles XVII-L and XVII-M of the act, added July 6,
2010 (P.L.279, No.46), are repealed.
Section 19. The act is amended by adding articles to read:
ARTICLE XVII-L
2015-2016 BUDGET IMPLEMENTATION
SUBARTICLE A
PRELIMINARY PROVISIONS
Section 1701-L. Applicability.
Except as specifically provided in this article, this article
applies to the General Appropriation Act OF 2015, THE SUPPLEMENT
TO THE GENERAL APPROPRIATION ACT OF 2015 , all other
20150HB1327PN2969 - 44 -
<--
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30