Regular Session 2017-2018 House Bill 0453 P.N. 2258

SENATE AMENDED

PRIOR PRINTER'S NOS. 474, 1241, 1501

PRINTER'S NO. 2258

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

453

Session of

2017

INTRODUCED BY RYAN, CUTLER, DUNBAR, DUSH, GABLER, GROVE,

JOZWIAK, MILLARD, SAYLOR, SCHWEYER, WARD, CORR, ZIMMERMAN,

PHILLIPS-HILL, SOLOMON, STAATS, RABB, ROZZI, B. MILLER AND

GREINER, FEBRUARY 13, 2017

SENATOR BROWNE, APPROPRIATIONS, IN SENATE, RE-REPORTED AS

AMENDED, JULY 26, 2017

AN ACT

Amending the act of April 9, 1929 (P.L.343, No.176), entitled

"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,

every State depository and every debtor or creditor of the

Commonwealth," in department of the Auditor General, further

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providing for audits of agencies receiving State aid.

AMENDING THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), ENTITLED

"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,

EVERY STATE DEPOSITORY AND EVERY DEBTOR OR CREDITOR OF THE

COMMONWEALTH," IMPLEMENTING THE 2017-2018 COMMONWEALTH BUDGET

AND INSTITUTING FUTURE BUDGET IMPLEMENTATION: IN TREASURY

DEPARTMENT, PROVIDING FOR PROVISIONS FOR GENERAL ASSEMBLY; IN

DEPARTMENT OF AUDITOR GENERAL, FURTHER PROVIDING FOR AUDITS

OF AGENCIES RECEIVING STATE AID AND PROVIDING FOR AUDITS OF

INTERSTATE COMMISSIONS; IN PROCEDURE FOR THE DISBURSEMENT OF

MONEY FROM THE STATE TREASURY, FURTHER PROVIDING FOR

SETTLEMENT AGREEMENTS AND ENFORCEMENT ACTIONS; IN FINANCIALLY

DISTRESSED MUNICIPALITIES, PROVIDING FOR PAYROLL TAX; IN OIL

AND GAS WELLS, FURTHER PROVIDING FOR DEFINITIONS, PROVIDING

FOR OIL AND GAS LEASE FUND, REPEALING PROVISIONS RELATING TO

OIL AND GAS OPERATIONS IN THE SOUTH NEWARK BASIN AND

PROVIDING FOR TEMPORARY CESSATION OF OIL AND GAS WELLS; IN

TRANSPORTATION NETWORK COMPANIES AND MOTOR CARRIER COMPANIES,

PROVIDING FOR REGULATION OF TAXICABS AND LIMOUSINES BY

PARKING AUTHORITY OF CITY OF THE FIRST CLASS, FOR PENALTIES

AND FOR PROVISION OF TRANSPORTATION NETWORK SERVICE; IN

BUDGET STABILIZATION RESERVE FUND, FURTHER PROVIDING FOR

FUNDING; IN PENNSYLVANIA GAMING ECONOMIC DEVELOPMENT AND

TOURISM FUND, FURTHER PROVIDING FOR OTHER GRANTS; IN TOBACCO

SETTLEMENT FUND, FURTHER PROVIDING FOR USE OF FUND; IN

PENNSYLVANIA RACE HORSE DEVELOPMENT FUND, FURTHER PROVIDING

FOR DEFINITIONS, FOR FUND AND FOR DISTRIBUTIONS FROM FUND; IN

MISCELLANEOUS LIMITATIONS AND TRANSFERS, FURTHER PROVIDING

FOR DRUG AND ALCOHOL PROGRAMS AND PROVIDING FOR WORKERS'

COMPENSATION SECURITY FUND; IN NATURAL GAS INFRASTRUCTURE

DEVELOPMENT FUND, FURTHER PROVIDING FOR DEFINITIONS AND FOR

TRANSFER OF FUNDS; PROVIDING FOR FIRST CHANCE TRUST FUND; IN

2016-2017 RESTRICTIONS ON APPROPRIATIONS FOR FUNDS AND

ACCOUNTS, REPEALING PROVISIONS RELATING TO FUND TRANSFERS; IN

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GENERAL BUDGET IMPLEMENTATION, FURTHER PROVIDING FOR

DEPARTMENT OF AGRICULTURE, FOR DEPARTMENT OF COMMUNITY AND

ECONOMIC DEVELOPMENT, FOR DEPARTMENT OF EDUCATION, FOR

PENNSYLVANIA GAMING CONTROL BOARD, FOR DEPARTMENT OF HUMAN

SERVICES, FOR COMMONWEALTH FINANCING AUTHORITY RESTRICTED

REVENUE ACCOUNT AND FOR SURCHARGES, PROVIDING FOR MULTIMODAL

TRANSPORTATION FUND, FURTHER PROVIDING FOR PENNSYLVANIA

LIQUOR CONTROL BOARD AND PROVIDING FOR SALES BY DISTILLERIES,

FOR SUSPENSION FOR INSPECTION DEFICIENCIES, FOR STATE

EMPLOYEES' RETIREMENT SYSTEM RESTRICTED ACCOUNT AND FOR

PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM RESTRICTED

ACCOUNT; IN SCHOOL DISTRICT DEBT REFINANCING BONDS, FURTHER

PROVIDING FOR SINKING FUND CHARGES FOR SCHOOL BUILDING

PROJECTS AND FOR PUBLIC SCHOOL BUILDING CONSTRUCTION AND

RECONSTRUCTION ADVISORY COMMITTEE; REPEALING PROVISIONS

RELATING TO 2012-2013 BUDGET IMPLEMENTATION AND 2012-2013

RESTRICTIONS ON APPROPRIATIONS FOR FUNDS AND ACCOUNTS;

PROVIDING FOR 2017-2018 BUDGET IMPLEMENTATION AND FOR 2017-

2018 RESTRICTIONS ON APPROPRIATIONS FOR FUNDS AND ACCOUNTS;

MAKING AN EDITORIAL CHANGE; AND MAKING RELATED REPEALS.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 403 of the act of April 9, 1929 (P.L.343,

No.176), known as The Fiscal Code, is amended to read:

Section 403. Audits of Agencies Receiving State Aid.--The

Department of the Auditor General shall have the power, and its

duty shall be, to audit the accounts and records of every

person, association, corporation, and public agency, receiving

an appropriation of money, payable out of any fund in the State

Treasury, or entitled to receive any portion of any State tax

for any purpose whatsoever, as far as may be necessary to

satisfy the department that the money received was expended or

is being expended for no purpose other than that for which it

was paid. Copies of all such audits shall be furnished to the

Governor.

If at any time the department shall find that any money

received by any person, association, corporation, or public

agency, has been expended for any purpose other than that for

which it was paid, it shall forthwith notify the Governor, and

shall decline to approve any further requisition for the payment

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of any appropriation, or any further portion of any State tax,

to such person, association, corporation or public agency, until

an amount equal to that improperly expended shall have been

expended for the purpose for which the money improperly expended

was received from the State Treasury.

If an audit completed by the department under this section

makes recommendations, any person, association, corporation, or

public agency being audited shall submit a response to the

department detailing adoption of such recommendations, or the

reason why recommendations have not been adopted, within one

hundred and twenty business days of the publication of the

audit. The department shall provide notice to the subject of an

audit sixty business days after the date of the audit's

publication that future appropriations could be denied for the

person, association, corporation, or public agency if a response

is not made.

The department shall regularly notify the Governor and 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 responses received, accompanied by any

comments the department may wish to submit. The department shall

post responses to the department's publicly accessible Internet

website. The Governor and 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 may consider this

response when determining whether future appropriations to the

person, association, corporation, or public agency will be

considered.

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If the person, association, corporation, or public agency

does not respond to the department within one hundred and twenty

business days from the date of the publication of the audit, the

department shall notify the Governor and 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. The

Governor and 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 may consider a failure to respond to

the audit when determining whether future appropriations to the

person, association, corporation, or public agency will be

considered.

The department shall work with the Governor, 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 to

determine the most effective method to communicate information

concerning responses to the department's audit recommendations

based on the type of audit and significance of the

recommendations.

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

SECTION 1. THE GENERAL ASSEMBLY FINDS AND DECLARES AS

FOLLOWS:

(1) THE INTENT OF THIS ACT IS TO PROVIDE FOR THE

IMPLEMENTATION OF THE 2017-2018 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.

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(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 THIS

COMMONWEALTH, REGARDLESS OF THEIR SOURCE. THE SUPREME COURT

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

APPROPRIATION 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

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THROUGH THIS ACT TO PROVIDE FOR THE IMPLEMENTATION OF THE

2017-2018 COMMONWEALTH BUDGET.

(7) EVERY PROVISION OF THIS ACT RELATES TO THE

IMPLEMENTATION OF THE OPERATING BUDGET OF THE COMMONWEALTH

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 2017-2018 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 JULY 11, 2017 (P.L. , NO.1A), KNOWN AS THE GENERAL

APPROPRIATION ACT OF 2017.

SECTION 1.1. THE ACT OF APRIL 9, 1929 (P.L.343, NO.176),

KNOWN AS THE FISCAL CODE, IS AMENDED BY ADDING A SECTION TO

READ:

SECTION 311. PROVISIONS FOR GENERAL ASSEMBLY.--(A) FUNDS

AVAILABLE TO THE SENATE OR THE HOUSE OF REPRESENTATIVES THROUGH

A SHORT-TERM AGREEMENT OR OTHER INSTRUMENT EXECUTED WITH A

LENDING INSTITUTION SHALL BE CONSIDERED AUGMENTING REVENUES AND

ARE HEREBY APPROPRIATED FOR THE PAYMENT OF SALARIES, WAGES AND

ALL OTHER EXPENSES INCURRED IN THE OPERATION OF THE SENATE OR

THE HOUSE OF REPRESENTATIVES. THE AMOUNTS SHALL BE REMITTED TO

THE STATE TREASURER FOR DEPOSIT IN THE ACCOUNT AS THE CHIEF

CLERK OF THE SENATE OR THE CHIEF CLERK OF THE HOUSE OF

REPRESENTATIVES MAY DIRECT.

(B) UPON PRESENTATION OF REQUISITIONS BY THE CHIEF CLERK OF

THE SENATE OR THE CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES,

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THE REQUISITION SHALL BE PAID ON WARRANT OF THE STATE TREASURER

DIRECTLY TO AND IN FAVOR OF THE PERSONS DESIGNATED IN THE

REQUISITION AS ENTITLED TO RECEIVE THE COMPENSATION OR EXPENSES.

SECTION 1.2. SECTION 403 OF THE ACT IS AMENDED TO READ:

SECTION 403. AUDITS OF AGENCIES RECEIVING STATE AID.--THE

DEPARTMENT OF THE AUDITOR GENERAL SHALL HAVE THE POWER, AND ITS

DUTY SHALL BE, TO AUDIT THE ACCOUNTS AND RECORDS OF EVERY

PERSON, ASSOCIATION, CORPORATION, AND PUBLIC AGENCY, RECEIVING

AN APPROPRIATION OF MONEY, PAYABLE OUT OF ANY FUND IN THE STATE

TREASURY, OR ENTITLED TO RECEIVE ANY PORTION OF ANY STATE TAX

FOR ANY PURPOSE WHATSOEVER, AS FAR AS MAY BE NECESSARY TO

SATISFY THE DEPARTMENT THAT THE MONEY RECEIVED WAS EXPENDED OR

IS BEING EXPENDED FOR NO PURPOSE OTHER THAN THAT FOR WHICH IT

WAS PAID. COPIES OF ALL SUCH AUDITS SHALL BE FURNISHED TO THE

GOVERNOR.

IF AT ANY TIME THE DEPARTMENT SHALL FIND THAT ANY MONEY

RECEIVED BY ANY PERSON, ASSOCIATION, CORPORATION, OR PUBLIC

AGENCY, HAS BEEN EXPENDED FOR ANY PURPOSE OTHER THAN THAT FOR

WHICH IT WAS PAID, IT SHALL FORTHWITH NOTIFY THE GOVERNOR, AND

SHALL DECLINE TO APPROVE ANY FURTHER REQUISITION FOR THE PAYMENT

OF ANY APPROPRIATION, OR ANY FURTHER PORTION OF ANY STATE TAX,

TO SUCH PERSON, ASSOCIATION, CORPORATION OR PUBLIC AGENCY, UNTIL

AN AMOUNT EQUAL TO THAT IMPROPERLY EXPENDED SHALL HAVE BEEN

EXPENDED FOR THE PURPOSE FOR WHICH THE MONEY IMPROPERLY EXPENDED

WAS RECEIVED FROM THE STATE TREASURY.

IF AN AUDIT COMPLETED BY THE DEPARTMENT UNDER THIS SECTION

MAKES RECOMMENDATIONS, ANY PERSON, ASSOCIATION, CORPORATION, OR

PUBLIC AGENCY BEING AUDITED SHALL SUBMIT A RESPONSE TO THE

DEPARTMENT DETAILING ADOPTION OF SUCH RECOMMENDATIONS, OR THE

REASON WHY RECOMMENDATIONS HAVE NOT BEEN ADOPTED, WITHIN ONE

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HUNDRED AND TWENTY BUSINESS DAYS OF THE PUBLICATION OF THE

AUDIT. THE DEPARTMENT SHALL PROVIDE NOTICE TO THE SUBJECT OF AN

AUDIT SIXTY BUSINESS DAYS AFTER THE DATE OF THE AUDIT'S

PUBLICATION THAT FUTURE APPROPRIATIONS COULD BE DENIED FOR THE

PERSON, ASSOCIATION, CORPORATION OR PUBLIC AGENCY IF A RESPONSE

IS NOT MADE.

THE DEPARTMENT SHALL REGULARLY NOTIFY THE GOVERNOR, 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 RESPONSES RECEIVED, ACCOMPANIED BY ANY

COMMENTS THE DEPARTMENT MAY WISH TO SUBMIT. THE DEPARTMENT SHALL

POST RESPONSES TO THE DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET

WEBSITE. THE GOVERNOR, 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 MAY CONSIDER THIS

RESPONSE WHEN DETERMINING WHETHER FUTURE APPROPRIATIONS TO THE

PERSON, ASSOCIATION, CORPORATION OR PUBLIC AGENCY WILL BE

CONSIDERED.

IF THE PERSON, ASSOCIATION, CORPORATION OR PUBLIC AGENCY DOES

NOT RESPOND TO THE DEPARTMENT WITHIN ONE HUNDRED AND TWENTY

BUSINESS DAYS FROM THE DATE OF THE PUBLICATION OF THE AUDIT, THE

DEPARTMENT SHALL NOTIFY THE GOVERNOR, 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. THE

GOVERNOR, THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE SENATE AND THE CHAIRPERSON AND

MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE

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HOUSE OF REPRESENTATIVES MAY CONSIDER A FAILURE TO RESPOND TO

THE AUDIT WHEN DETERMINING WHETHER FUTURE APPROPRIATIONS TO THE

PERSON, ASSOCIATION, CORPORATION OR PUBLIC AGENCY WILL BE

CONSIDERED.

THE DEPARTMENT SHALL WORK WITH THE GOVERNOR, 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 TO

DETERMINE THE MOST EFFECTIVE METHOD TO COMMUNICATE INFORMATION

CONCERNING RESPONSES TO THE DEPARTMENT'S AUDIT RECOMMENDATIONS

BASED ON THE TYPE OF AUDIT AND SIGNIFICANCE OF THE

RECOMMENDATIONS.

SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 410. AUDITS OF INTERSTATE COMMISSIONS.--(A) FOR THE

PURPOSE OF SECTION 15.11 OF THE ACT OF JULY 17, 1968 (P.L.368,

NO.181), REFERRED TO AS THE SUSQUEHANNA RIVER BASIN COMPACT LAW,

THE AUDITOR GENERAL SHALL BE DEEMED TO BE A DULY AUTHORIZED

OFFICER ON BEHALF OF THE COMMONWEALTH AS A SIGNATORY PARTY FOR

THE EXCLUSIVE PURPOSE OF EXAMINING AND AUDITING ALL OF THE

BOOKS, DOCUMENTS, RECORDS, FILES AND ACCOUNTS AND ALL OTHER

PAPERS, THINGS OR PROPERTY OF THE COMMISSION. THE DESIGNATION

UNDER THIS SUBSECTION SHALL BE IN ADDITION TO ANY OTHER DULY

AUTHORIZED OFFICER OF THE COMMONWEALTH UNDER THE SUSQUEHANNA

RIVER BASIN COMPACT LAW.

(B) FOR THE PURPOSE OF SECTION 14.11 OF THE ACT OF JULY 7,

1961 (P.L.518, NO.268), KNOWN AS THE DELAWARE RIVER BASIN

COMPACT, THE AUDITOR GENERAL SHALL BE DEEMED TO BE A DULY

AUTHORIZED OFFICER ON BEHALF OF THE COMMONWEALTH AS A SIGNATORY

PARTY FOR THE EXCLUSIVE PURPOSE OF EXAMINING AND AUDITING ALL OF

THE BOOKS, DOCUMENTS, RECORDS, FILES AND ACCOUNTS AND ALL OTHER

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PAPERS, THINGS OR PROPERTY OF THE COMMISSION. THE DESIGNATION

UNDER THIS SUBSECTION SHALL BE IN ADDITION TO ANY OTHER DULY

AUTHORIZED OFFICER OF THE COMMONWEALTH UNDER THE DELAWARE RIVER

BASIN COMPACT.

SECTION 3. SECTION 1507.1 OF THE ACT IS AMENDED TO READ:

SECTION 1507.1. SETTLEMENT AGREEMENTS; ENFORCEMENT

ACTIONS.--(A) EXCEPT AS SET FORTH IN SUBSECTION (B) AND (B.1),

THE FOLLOWING APPLY:

(1) UNLESS OTHERWISE PROVIDED BY THIS SECTION OR ANOTHER

PROVISION OF LAW, MONEY RECEIVED BY AN AGENCY AS A RESULT OF A

SETTLEMENT, LITIGATION OR AN ENFORCEMENT ACTION SHALL BE DEEMED

FUNDS OF THE COMMONWEALTH AND SHALL, UPON RECEIPT, BE DEPOSITED

INTO THE GENERAL FUND.

(2) IF MONEY TO PURSUE A SETTLEMENT, LITIGATION OR

ENFORCEMENT ACTION WAS EXPENDED BY THE AGENCY FROM THE GENERAL

FUND OR OTHER FUND OR ACCOUNT ESTABLISHED BY LAW, THOSE COSTS

RECOVERED SHALL BE CREDITED TO THE APPROPRIATION, FUND OR

ACCOUNT FROM WHICH THE ORIGINAL COSTS WERE EXPENDED AND USED AS

PROVIDED BY LAW AND SHALL BE AVAILABLE FOR EXPENDITURE IN

ACCORDANCE WITH THE LAW GOVERNING THE EXPENDITURE.

(3) AMOUNTS THAT EXCEED THE ACTUAL COSTS OF A SETTLEMENT,

LITIGATION OR ENFORCEMENT ACTION AND ARE DEPOSITED IN THE

GENERAL FUND MAY BE REDIRECTED TO THE AGENCY THAT WAS THE PARTY

TO THE SETTLEMENT, LITIGATION OR ENFORCEMENT ACTION TO

SUPPLEMENT THE ACTIVITIES OF THE AGENCY UPON REQUEST OF THE

AGENCY AND APPROVAL OF THE SECRETARY OF THE BUDGET.

(4) IF THERE IS A REDIRECTION UNDER PARAGRAPH (3), THE

SECRETARY SHALL PROVIDE NOTICE OF THE TRANSFER TO THE CHAIR OF

THE APPROPRIATIONS COMMITTEE OF THE SENATE AND THE CHAIR OF THE

APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND

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INCLUDE A DETAILED DETERMINATION OF ACTUAL COSTS INCURRED BY THE

AGENCY AND THE IDENTIFICATION OF THE ASSOCIATED SETTLEMENT,

LITIGATION OR ENFORCEMENT ACTION.

(B) SUBSECTION (A) SHALL NOT APPLY AS FOLLOWS:

(1) THE RECOVERY OF FEDERAL MONEY SHALL BE DISPOSED OF IN

ACCORDANCE WITH THIS SECTION AND APPLICABLE FEDERAL OR STATE LAW

OR CONTRACT.

(2) NOTHING IN THIS SECTION SHALL SUPERSEDE ANY PAYMENTS,

INCLUDING RESTITUTION, ORDERED BY A COURT.

(B.1) NOTWITHSTANDING THE ACT OF JANUARY 8, 1960 (1959

P.L.2119, NO.787), KNOWN AS THE "AIR POLLUTION CONTROL ACT," OR

ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE SUM OF

$30,409,055, RECEIVED FROM A SETTLEMENT DURING THE 2017-2018

FISCAL YEAR, SHALL BE DEEMED FUNDS OF THE COMMONWEALTH AND

SHALL, UPON RECEIPT, BE DEPOSITED INTO THE GENERAL FUND TO BE

EXPENDED IN COMPLIANCE WITH THE COMMONWEALTH'S TRUSTEE DUTIES

UNDER SECTION 27 OF ARTICLE I OF THE CONSTITUTION OF

PENNSYLVANIA.

COMMONWEALTH AND AN AGENCY OR INSTRUMENTALITY OF THE

COMMONWEALTH.

SECTION 3.1. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 1603-D.1. PAYROLL TAX.

NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, IN THE

EVENT THAT THE RATE OF A PAYROLL TAX IMPOSED BY A CITY OF THE

SECOND CLASS A, OR A HOME RULE MUNICIPALITY THAT WAS PREVIOUSLY

A CITY OF THE SECOND CLASS A, UNDER SECTION 123(D)(2) OF THE ACT

OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE MUNICIPALITIES

FINANCIAL RECOVERY ACT, PRODUCES LESS THAN THE REVENUES

PROJECTED IN THE FIRST FULL YEAR AFTER THE IMPOSITION OF A

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PAYROLL TAX, THE CITY MAY, FOR A SECOND YEAR, ADJUST THE RATE TO

ONE THAT IS SUFFICIENT TO PRODUCE REVENUES EQUAL TO THE REVENUES

COLLECTED AS A RESULT OF THE MERCANTILE OR BUSINESS PRIVILEGE

TAX IN THE FINAL YEAR IT WAS LEVIED. THE CITY MAY LEVY THE

PAYROLL TAX IN ANY SUBSEQUENT YEAR AT A RATE NOT TO EXCEED THE

ADJUSTED RATE AUTHORIZED UNDER THIS SECTION.

SECTION 3.2. THE DEFINITION OF "FUND" IN SECTION 1601-E OF

THE ACT IS AMENDED TO READ:

SECTION 1601-E. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBARTICLE UNLESS

THE CONTEXT CLEARLY INDICATES OTHERWISE:

* * *

"FUND." [THE OIL AND GAS LEASE FUND ESTABLISHED UNDER THE

ACT OF DECEMBER 15, 1955 (P.L.865, NO.256), ENTITLED, "AN ACT

REQUIRING RENTS AND ROYALTIES FROM OIL AND GAS LEASES OF

COMMONWEALTH LAND TO BE PLACED IN A SPECIAL FUND TO BE USED FOR

CONSERVATION, RECREATION, DAMS, AND FLOOD CONTROL; AUTHORIZING

THE SECRETARY OF FORESTS AND WATERS TO DETERMINE THE NEED FOR

AND LOCATION OF SUCH PROJECTS AND TO ACQUIRE THE NECESSARY

LAND."] THE OIL AND GAS LEASE FUND.

* * *

SECTION 3.3. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 1601.2-E. OIL AND GAS LEASE FUND.

(A) CONTINUATION.--THE OIL AND GAS LEASE FUND IS CONTINUED

AS A SPECIAL FUND IN THE STATE TREASURY.

(B) SOURCES.--THE FOLLOWING SHALL BE DEPOSITED INTO THE

FUND:

(1) RENTS AND ROYALTIES FROM OIL AND GAS LEASES OF LAND

OWNED BY THE COMMONWEALTH, EXCEPT RENTS AND ROYALTIES

20170HB0453PN2258 - 13 -

RECEIVED FROM GAME AND FISH LANDS.

(2) AMOUNTS AS PROVIDED UNDER SECTION 5 OF THE ACT OF

OCTOBER 8, 2012 (P.L.1194, NO.147), KNOWN AS THE INDIGENOUS

MINERAL RESOURCES DEVELOPMENT ACT.

(3) ANY OTHER MONEY APPROPRIATED OR TRANSFERRED TO THE

FUND.

UNDER SUBSECTION (E) OR AS ANNUALLY APPROPRIATED BY THE GENERAL

ASSEMBLY. IN MAKING AN APPROPRIATION FROM THE FUND, THE GENERAL

ASSEMBLY SHALL CONSIDER THE COMMONWEALTH'S TRUSTEE DUTIES UNDER

SECTION 27 OF ARTICLE I OF THE CONSTITUTION OF PENNSYLVANIA.

(D) PRIORITY.--MONEY APPROPRIATED FROM THE FUND UNDER A

GENERAL APPROPRIATION ACT OR OTHER APPROPRIATION ACT SHALL BE

DISTRIBUTED PRIOR TO ALLOCATIONS UNDER SUBSECTION (E).

(E) ANNUAL TRANSFERS.--THE FOLLOWING APPLY:

(1) FOR THE 2017-2018 FISCAL YEAR AND EACH FISCAL YEAR

THEREAFTER, $20,000,000 SHALL BE TRANSFERRED FROM THE FUND TO

THE MARCELLUS LEGACY FUND FOR DISTRIBUTION TO THE

ENVIRONMENTAL STEWARDSHIP FUND.

(2) FOR THE 2017-2018 FISCAL YEAR AND EACH FISCAL YEAR

THEREAFTER, $15,000,000 SHALL BE TRANSFERRED FROM THE FUND TO

THE MARCELLUS LEGACY FUND FOR DISTRIBUTION TO THE HAZARDOUS

SITES CLEANUP FUND.

SECTION 4. SECTION 1607-E(C) OF THE ACT IS REPEALED:

SECTION 1607-E. OIL AND GAS OPERATIONS IN THE SOUTH NEWARK

BASIN.

* * *

[(C) EXPIRATION.--THIS SECTION SHALL EXPIRE JANUARY 1,

2018.]

SECTION 5. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

20170HB0453PN2258 - 14 -

SECTION 1610-E. TEMPORARY CESSATION OF OIL AND GAS WELLS.

(A) GENERAL RULE.--AN OIL AND GAS LESSOR SHALL BE DEEMED TO

ACKNOWLEDGE THAT A PERIOD OF NONPRODUCTION UNDER AN OIL AND GAS

LEASE IS A TEMPORARY CESSATION INSUFFICIENT TO TERMINATE THE

LEASE AND THE LESSOR WAIVES HIS RIGHT TO SEEK LEASE TERMINATION

UPON THOSE GROUNDS IF, PRIOR TO CLAIMING THE LEASE HAS

TERMINATED:

(1) PRODUCTION IS RECOMMENCED AND THE LESSOR ACCEPTS

ROYALTY PAYMENTS FOR THE PRODUCTION. ANY FIRST ROYALTY

PAYMENT FOLLOWING RECOMMENCEMENT OF PRODUCTION AFTER A PERIOD

OF MORE THAN ONE YEAR OF INACTIVITY SHALL BE ACCOMPANIED BY

AN EXPLANATION, IN PLAIN TERMS, THAT ACCEPTANCE OF THE

ROYALTY PAYMENT SHALL CONSTITUTE ACKNOWLEDGMENT OF AN

EXISTING LEASE WITH THE OPERATOR; OR

(2) THE OPERATOR, AFTER NOTIFYING THE LESSOR OF ITS

INTENT TO DRILL A NEW WELL AND GIVING THE LESSOR 90 DAYS

WITHIN WHICH TO OBJECT, DRILLS A NEW WELL UNDER THE LEASE.

(B) LEASE PROVISIONS.--NOTHING IN THIS SECTION IS INTENDED

TO WAIVE LEASE REQUIREMENTS RELATED TO COMMENCEMENT OF

OPERATIONS DURING A LEASE'S PRIMARY TERM OR AFFECT A LEASE

PROVISION EXPRESSLY PROVIDING FOR LEASE TERMINATION FOLLOWING A

FIXED PERIOD OF NONPRODUCTION.

SECTION 5.1. THE HEADING OF ARTICLE XVI-M OF THE ACT, ADDED

JULY 13, 2016 (P.L.664, NO.85), IS AMENDED TO READ:

ARTICLE XVI-M

TRANSPORTATION NETWORK COMPANIES

[AND], MOTOR CARRIER COMPANIES AND PARKING AUTHORITY OF A CITY

OF THE FIRST CLASS

SECTION 5.2. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 1603-M. REGULATION OF TAXICABS AND LIMOUSINES BY

20170HB0453PN2258 - 15 -

PARKING AUTHORITY OF CITY OF THE FIRST CLASS.

FOR THE PURPOSE OF THE TEMPORARY AND FINAL-FORM REGULATIONS

REQUIRED UNDER 53 PA.C.S. § 57B02(C)(1) (RELATING TO REGULATION

OF TAXICABS AND LIMOUSINES) AND NOTWITHSTANDING 53 PA.C.S. §

5707 (RELATING TO BUDGET AND ASSESSMENTS), THE OWNER OF A

TAXICAB AUTHORIZED BY THE AUTHORITY TO PROVIDE TAXICAB SERVICE

IN A CITY OF THE FIRST CLASS SHALL PAY TO THE AUTHORITY AN

ASSESSMENT EQUAL TO 1% OF THE GROSS RECEIPTS FROM THE FARES

CHARGED TO PASSENGERS FOR TAXICAB SERVICE IN THE CITY OF THE

FIRST CLASS. THE AMOUNT ASSESSED MUST BE REMITTED ON A QUARTERLY

BASIS TO THE AUTHORITY.

SECTION 1604-M. PENALTIES.

(A) SUSPENSION OR REVOCATION.--IN ADDITION TO ANY OTHER

PENALTIES AUTHORIZED UNDER 53 PA.C.S. CH. 57A (RELATING TO

TRANSPORTATION NETWORK COMPANIES), THE AUTHORITY MAY SUSPEND OR

REVOKE THE LICENSE OF A TRANSPORTATION NETWORK COMPANY WHICH

FAILS TO COMPLY WITH 53 PA.C.S. § 57A16(N)(2) (RELATING TO

OPERATING REGULATIONS).

(B) 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:

"AUTHORITY." AS DEFINED IN 53 PA.C.S. § 57A01 (RELATING TO

DEFINITIONS).

"LICENSE." AS DEFINED IN 53 PA.C.S. § 57A01.

"TRANSPORTATION NETWORK COMPANY." AS DEFINED IN 53 PA.C.S. §

57A01.

SECTION 1605-M. PROVISION OF TRANSPORTATION NETWORK SERVICE.

NOTWITHSTANDING ANY PROVISION UNDER 53 PA.C.S. § 57A08(A)(5)

(RELATING TO VEHICLE OWNERSHIP AND STANDARDS) OR 66 PA.C.S. §

2606(B) (RELATING TO PERSONAL VEHICLE REQUIREMENTS) TO THE

20170HB0453PN2258 - 16 -

CONTRARY, A VEHICLE UP TO 15 MODEL YEARS OLD MAY BE USED TO

PROVIDE TRANSPORTATION NETWORK SERVICE.

SECTION 6. SECTION 1702-A OF THE ACT, AMENDED JULY 13, 2016

(P.L.664, NO.85), 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.

(IV) NO AMOUNT OF THE SURPLUS IN THE GENERAL FUND

FOR FISCAL YEAR 2010-2011 MAY BE DEPOSITED INTO THE

BUDGET STABILIZATION RESERVE FUND.

20170HB0453PN2258 - 17 -

(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.

(IX) NO AMOUNT OF THE SURPLUS IN THE GENERAL FUND

FOR FISCAL YEAR 2015-2016 MAY BE DEPOSITED INTO THE

BUDGET STABILIZATION RESERVE FUND.

(X) NO AMOUNT OF THE SURPLUS IN THE GENERAL FUND FOR

FISCAL YEAR 2016-2017 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.

TIME PROVIDE ADDITIONAL AMOUNTS FROM ANY FUNDS AVAILABLE TO THIS

COMMONWEALTH AS AN APPROPRIATION TO THE BUDGET STABILIZATION

RESERVE FUND.

SECTION 7. SECTION 1774.1-A OF THE ACT, AMENDED APRIL 25,

2016 (P.L.168, NO.25), IS AMENDED TO READ:

20170HB0453PN2258 - 18 -

SECTION 1774.1-A. OTHER GRANTS.

(A) WATER AND SEWER.--FOR 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.

(3) FOR FISCAL YEAR 2017-2018, THE SUM OF $15,000,000

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.

(A.1) ADDITIONAL WATER AND SEWER.--IN ADDITION TO THE FUNDS

AVAILABLE UNDER SUBSECTION (A)(3), FOR FISCAL YEAR 2017-2018,

THE SUM OF $10,000,000 FROM THE TRUST ACCOUNT ESTABLISHED UNDER

64 PA.C.S. § 1541 (RELATING TO TRUST ACCOUNTS) FOR THE BUILDING

PENNSYLVANIA PROGRAM SHALL BE TRANSFERRED TO THE AUTHORITY 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.

PROJECT UNDER THIS SECTION MAY NOT BE DEEMED INELIGIBLE IF THE

20170HB0453PN2258 - 19 -

PROJECT DETAILED IN THE APPLICATION IS FOR A PORTION OF A LARGER

PROJECT THE TOTAL COST OF WHICH EXCEEDS $500,000.

SECTION 8. SECTION 1713-A.1(B) OF THE ACT, AMENDED JULY 13,

2016 (P.L.664, NO.85), IS AMENDED TO READ:

SECTION 1713-A.1. USE OF FUND.

* * *

(B) APPROPRIATIONS.--

(1) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPHS (1.1),

(1.2), (1.3), (1.4) AND (1.5), THE GENERAL ASSEMBLY

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

20170HB0453PN2258 - 20 -

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:

(I) THIRTEEN PERCENT FOR HOME-BASED AND COMMUNITY-

BASED SERVICES UNDER CHAPTER 5 OF THE TOBACCO SETTLEMENT

ACT.

(II) TWO AND NINETY-THREE 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

20170HB0453PN2258 - 21 -

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

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 AND FISCAL YEAR 2016-

2017, MONEY IN THE FUND FROM A PAYMENT RECEIVED DUE TO THE

20170HB0453PN2258 - 22 -

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 [AND], FISCAL YEAR 2016-

2017 AND FISCAL YEAR 2017-2018, 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.

(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

20170HB0453PN2258 - 23 -

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.

* * *

SECTION 9. THE DEFINITIONS OF "COMMISSION," "PENNSYLVANIA

BREEDING FUND" AND "PENNSYLVANIA SIRE STAKES FUND" IN SECTION

1721-A.1 OF THE ACT, ADDED JULY 13, 2016 (P.L.664, NO.85), ARE

AMENDED TO READ:

SECTION 1721-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:

* * *

"COMMISSION." THE STATE HORSE RACING COMMISSION ESTABLISHED

UNDER [ARTICLE XXVIII-D OF THE ACT OF APRIL 9, 1929 (P.L.177,

NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929] 3 PA.C.S. §

9311 (RELATING TO STATE HORSE RACING COMMISSION).

* * *

"PENNSYLVANIA BREEDING FUND." THE RESTRICTED ACCOUNT IN THE

STATE RACING FUND ESTABLISHED UNDER [SECTION 2836-D OF THE ACT

OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE

CODE OF 1929] 3 PA.C.S. § 9336 (RELATING TO PENNSYLVANIA

BREEDING FUND).

"PENNSYLVANIA SIRE STAKES FUND." THE RESTRICTED ACCOUNT IN

THE STATE RACING FUND ESTABLISHED UNDER [SECTION 2837-D OF THE

ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE

ADMINISTRATIVE CODE OF 1929] 3 PA.C.S. § 9337 (RELATING TO

PENNSYLVANIA SIRE STAKES FUND).

SECTION 10. SECTIONS 1722-A.1(C), 1723-A.1(2) AND (3) AND

20170HB0453PN2258 - 24 -

1733-A.1 OF THE ACT, AMENDED JULY 13, 2016 (P.L.664, NO.85), ARE

AMENDED TO READ:

SECTION 1722-A.1. PENNSYLVANIA RACE HORSE DEVELOPMENT FUND.

* * *

D AND 2874-D OF THE ADMINISTRATIVE CODE OF 1929] 3 PA.C.S. §§

9313 (RELATING TO BUDGET) AND 9374 (RELATING TO COSTS OF

ENFORCEMENT OF MEDICATION RULES OR REGULATIONS), AND IN

ACCORDANCE WITH SECTION 1723-A.1, THE DEPARTMENT SHALL MAKE

DISTRIBUTIONS FROM THE FUND TO EACH OF THE ACTIVE AND OPERATING

CATEGORY 1 LICENSEES CONDUCTING LIVE RACING.

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:

* * *

(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

20170HB0453PN2258 - 25 -

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, 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.

(I.3) FOR FISCAL YEAR 2016-2017, THE SUM OF

$19,659,000 IN THE FUND SHALL BE TRANSFERRED TO THE

ACCOUNT IN 22 EQUAL WEEKLY AMOUNTS BEGINNING ON THE

EFFECTIVE DATE OF THIS SUBPARAGRAPH.

(I.4) FOR FISCAL YEAR 2017-2018, THE SUM OF

$19,659,000 IN THE FUND SHALL BE TRANSFERRED TO THE

ACCOUNT IN 22 EQUAL WEEKLY AMOUNTS BEGINNING ON THE

EFFECTIVE DATE OF THIS SUBPARAGRAPH.

(II) EACH WEEK, THE MONEY REMAINING IN THE FUND

AFTER ANY TRANSFER UNDER SUBPARAGRAPHS (I), (I.1), (I.2)

[AND], (I.3) AND (I.4) 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

20170HB0453PN2258 - 26 -

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 COMMISSION. THIS AMOUNT SHALL BE

DEPOSITED WITHIN FIVE BUSINESS DAYS OF THE END OF

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

20170HB0453PN2258 - 27 -

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

PENNSYLVANIA BREEDING FUND. 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; 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 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

20170HB0453PN2258 - 28 -

PENNSYLVANIA SIRED AND BRED AWARD.

(3) THE FOLLOWING SHALL APPLY:

(I) FOR FISCAL YEAR 2016-2017, THE DEPARTMENT SHALL

TRANSFER $8,555,255 FROM THE FUND TO THE STATE RACING

FUND PURSUANT TO SECTION 2874-D OF THE ADMINISTRATIVE

CODE OF 1929.

(II) FOR FISCAL YEAR 2017-2018, THE DEPARTMENT SHALL

TRANSFER $10,066,000 FROM THE FUND TO THE STATE RACING

FUND PURSUANT TO 3 PA.C.S. § 9374 (RELATING TO COSTS OF

ENFORCEMENT OF MEDICATION RULES OR REGULATIONS).

SECTION 1733-A.1. DRUG AND ALCOHOL PROGRAMS.

FOR FISCAL YEAR 2015-2016 [AND], FISCAL YEAR 2016-2017 AND

FISCAL YEAR 2017-2018, $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

THE ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR

CODE.

SECTION 10.1. THE ACT IS AMENDED BY ADDING A SECTION TO

READ:

SECTION 1734-A.1. WORKERS' COMPENSATION SECURITY FUND.

NOTWITHSTANDING SECTION 2112 OF THE ACT OF JULY 12, 2016

(P.L.1577, NO.16A), KNOWN AS THE GENERAL APPROPRIATION ACT OF

2016, OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY AMOUNT

TRANSFERRED FROM THE WORKERS' COMPENSATION SECURITY FUND

PURSUANT TO SECTION 2112 SHALL BE REPAID TO THE WORKERS'

COMPENSATION SECURITY FUND BY JULY 1, 2019.

SECTION 11. SECTION 1741-A.1 OF THE ACT, ADDED APRIL 25,

2016 (P.L.168, NO.25), IS AMENDED TO READ:

SECTION 1741-A.1. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS SUBARTICLE

20170HB0453PN2258 - 29 -

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

"AUTHORITY." THE COMMONWEALTH FINANCING AUTHORITY

ESTABLISHED UNDER 64 PA.C.S. CH. 15 (RELATING TO COMMONWEALTH

FINANCING AUTHORITY).

"FUND." THE NATURAL GAS INFRASTRUCTURE DEVELOPMENT FUND.

SECTION 12. SECTION 1743-A.1 OF THE ACT IS AMENDED BY ADDING

A SUBSECTION TO READ:

SECTION 1743-A.1. TRANSFER OF FUNDS.

* * *

SUM OF $6,000,000 FROM THE TRUST ACCOUNT ESTABLISHED UNDER 64

PA.C.S. § 1541 (RELATING TO TRUST ACCOUNTS) FOR THE BUILDING

PENNSYLVANIA PROGRAM SHALL BE TRANSFERRED TO THE FUND FOR USE BY

THE AUTHORITY.

SECTION 12.1. ARTICLE XVII-A.1 OF THE ACT IS AMENDED BY

ADDING A SUBARTICLE TO READ:

SUBARTICLE F

FIRST CHANCE TRUST FUND

SECTION 1751-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:

"ANNUAL CONTRACT AMOUNT." THE AMOUNT OF REVENUE PAID TO A

CONTRACTOR IN THE FISCAL YEAR.

"CHILD." A CHILD UNDER 18 YEARS OF AGE WHO RESIDES IN THIS

COMMONWEALTH.

"COMMISSION." THE PENNSYLVANIA COMMISSION ON CRIME AND

DELINQUENCY.

"COMMONWEALTH AGENCY." AN EXECUTIVE AGENCY, AN INDEPENDENT

20170HB0453PN2258 - 30 -

AGENCY OR A STATE-AFFILIATED ENTITY.

"DEPARTMENT." THE DEPARTMENT OF CORRECTIONS OF THE

COMMONWEALTH.

"FUND." THE FIRST CHANCE TRUST FUND ESTABLISHED UNDER

SECTION 1752-A.1.

"PROGRAM." AN EVIDENCE-BASED OR OUTCOME-BASED PROGRAM FOR

CHILDREN WHO MEET THE ELIGIBILITY REQUIREMENTS DETERMINED BY THE

COMMISSION, AIMED AT REDUCING RISK FACTORS AND PRODUCING

POSITIVE OUTCOMES, WHICH MAY INCLUDE MENTORING, INDIVIDUAL

COUNSELING AND THERAPEUTIC SERVICES AND FAMILY-STRENGTHENING

ACTIVITIES.

"SCHOLARSHIP PROGRAM." A PROGRAM WHICH ASSISTS STUDENTS IN

OBTAINING EDUCATION OR OTHER VOCATIONAL TRAINING WHO MEET ALL OF

THE FOLLOWING CRITERIA:

(1) THE STUDENTS RESIDE WITHIN THIS COMMONWEALTH AND

ATTEND AN EDUCATIONAL OR VOCATIONAL TRAINING INSTITUTION

LOCATED IN THIS COMMONWEALTH.

(2) THE STUDENTS ARE 24 YEARS OF AGE OR YOUNGER.

(3) THE STUDENTS MEET OTHER ELIGIBILITY REQUIREMENTS AS

DETERMINED BY THE COMMISSION IN ACCORDANCE WITH THIS

SUBARTICLE.

SECTION 1752-A.1. FIRST CHANCE TRUST FUND.

THE FIRST CHANCE TRUST FUND IS ESTABLISHED AS A RESTRICTED

ACCOUNT IN THE GENERAL FUND.

SECTION 1753-A.1. USE OF FUND.

(A) SOURCE OF REVENUE.--THE FUND SHALL INCLUDE REVENUES FROM

THE FOLLOWING:

(1) CONTRIBUTIONS FROM SELECTED CONTRACTORS OF

DESIGNATED CONTRACTS AS SPECIFIED UNDER SECTION 1754-A.1.

(2) GRANTS, GIFTS, DONATIONS AND OTHER PAYMENTS FROM AN

20170HB0453PN2258 - 31 -

INDIVIDUAL, A PERSON, A BUSINESS ENTITY, A NONPROFIT ENTITY

OR A GOVERNMENT ENTITY.

(3) MONEY APPROPRIATED INTO THE FUND.

(B) APPROPRIATION.--MONEY IN THE FUND IS APPROPRIATED TO THE

COMMISSION ON A CONTINUING BASIS FOR PURPOSES SET FORTH UNDER

SUBSECTION (C).

FROM THE FUND FOR THE FOLLOWING PURPOSES:

(1) ESTABLISHING AND OPERATING A SCHOLARSHIP PROGRAM FOR

STUDENTS IN THOSE REGIONS OF THIS COMMONWEALTH WHICH HAVE

STATISTICALLY HIGHER HIGH SCHOOL DROPOUT RATES OR

INCARCERATION RATES AS DETERMINED BY THE COMMISSION.

(2) PROVIDING GRANTS TO PROGRAMS THAT BENEFIT CHILDREN

IN THOSE REGIONS OF THIS COMMONWEALTH WHICH HAVE

STATISTICALLY HIGHER HIGH SCHOOL DROPOUT RATES OR

INCARCERATION RATES AS DETERMINED BY THE COMMISSION.

(D) CONTRIBUTIONS.--THE COMMISSION MAY SOLICIT AND ACCEPT

GIFTS, DONATIONS, LEGACIES AND OTHER REVENUES FOR DEPOSIT INTO

THE FUND FROM A PERSON OR GOVERNMENT ENTITY.

(E) OPERATION.--THE FOLLOWING APPLY:

(1) THE COMMISSION SHALL ADOPT A STATEMENT OF POLICY FOR

THE MAINTENANCE AND USE OF THE FUND WITHIN 60 DAYS OF THE

EFFECTIVE DATE OF THIS SECTION. THE POLICY SHALL BE PUBLISHED

AS A NOTICE IN THE PENNSYLVANIA BULLETIN, BUT SHALL NOT BE

SUBJECT TO REVIEW UNDER ANY OF THE FOLLOWING:

(I) SECTION 205 OF THE ACT OF JULY 31, 1968

(P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH

DOCUMENTS LAW.

(II) SECTIONS 204(B) AND 301(10) OF THE ACT OF

OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE

20170HB0453PN2258 - 32 -

COMMONWEALTH ATTORNEYS ACT.

(III) THE ACT OF JUNE 25, 1982 (P.L.633, NO.181),

KNOWN AS THE REGULATORY REVIEW ACT.

(2) NO PAYMENT SHALL BE MADE FROM THE FUND BEFORE THE

STATEMENT OF POLICY HAS BEEN PUBLISHED AS PROVIDED FOR UNDER

THIS SUBSECTION.

(F) REPORT.--BY JULY 31, 2018, AND EVERY YEAR THEREAFTER,

THE COMMISSION SHALL SUBMIT A REPORT TO THE CHAIRPERSON AND

MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE

SENATE, THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

JUDICIARY COMMITTEE OF THE SENATE, THE CHAIRPERSON AND MINORITY

CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF

REPRESENTATIVES AND THE CHAIRPERSON AND MINORITY CHAIRPERSON OF

THE JUDICIARY COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE

REPORT SHALL SPECIFY ALL OF THE FOLLOWING:

(1) THE FUND'S REVENUES AND EXPENDITURES IN THE PRIOR

FISCAL YEAR.

(2) THE NUMBER OF ACADEMIC SCHOLARSHIPS AWARDED AND THE

NAME AND THE COUNTY OF RESIDENCE OF THE RECIPIENTS OF

ACADEMIC SCHOLARSHIPS.

(3) THE NUMBER OF GRANTS AWARDED AND THE NAME AND COUNTY

OF RESIDENCE OF THE GRANTEES.

(G) AUDIT.--THE AUDITOR GENERAL SHALL CONDUCT AN AUDIT OF

THE FUND'S REVENUES AND EXPENDITURES NO LATER THAN THREE YEARS

AFTER THE EFFECTIVE DATE OF THIS SECTION. THE AUDITOR GENERAL

SHALL CONDUCT SUBSEQUENT AUDITS OF THE FUND'S REVENUES AND

EXPENDITURES NO MORE THAN ONCE EVERY THREE YEARS FROM THE DATE

OF THE PRECEDING AUDIT. THE AUDITOR GENERAL SHALL SUBMIT A

REPORT OF EACH AUDIT TO THE GOVERNOR, THE CHAIRPERSON AND

MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE

20170HB0453PN2258 - 33 -

SENATE AND THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

SECTION 1754-A.1. CONTRIBUTIONS TO THE FUND.

(A) DEPARTMENT PROCUREMENT.--THE FOLLOWING APPLY:

(1) WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS

SECTION, THE DEPARTMENT SHALL INCLUDE A REQUIREMENT IN A

NOTICE FOR INVITATIONS FOR BIDS UNDER 62 PA.C.S. § 512

(RELATING TO COMPETITIVE SEALED BIDDING), A NOTICE OF REQUEST

FOR PROPOSALS UNDER 62 PA.C.S. § 513 (RELATING TO COMPETITIVE

SEALED PROPOSALS) AND A NOTICE FOR SOLE SOURCE PROCUREMENT

UNDER 62 PA.C.S. § 515 (RELATING TO SOLE SOURCE PROCUREMENT),

IF THE CONTRACT DOLLAR THRESHOLD IS EXPECTED TO EXCEED

$5,000,000 ANNUALLY, THAT THE SELECTED CONTRACTOR CONTRIBUTE

THE EQUIVALENT VALUE OF 1% OF THE ANNUAL CONTRACT AMOUNT TO

THE FUND NO LATER THAN JUNE 30 OF ANY FISCAL YEAR WHEN THE

CONTRACT IS IN EFFECT. THE DEPARTMENT MAY WITHHOLD THE

EQUIVALENT OF 1% OF THE ANNUAL CONTRACT AMOUNT AND REMIT THE

MONEY TO THE FUND ON BEHALF OF THE SELECTED CONTRACTOR IN

ORDER TO EFFECTUATE THE CONTRIBUTION.

(2) UPON PRIOR APPROVAL BY THE SECRETARY OF CORRECTIONS,

THE DEPARTMENT MAY WAIVE THE CONTRIBUTION REQUIREMENT UNDER

PARAGRAPH (1).

(B) COMMONWEALTH AGENCY PROCUREMENT.--WITHIN SIX MONTHS OF

THE EFFECTIVE DATE OF THIS SECTION, A COMMONWEALTH AGENCY MAY

INCLUDE A REQUIREMENT IN A NOTICE FOR INVITATIONS FOR BIDS UNDER

62 PA.C.S. § 512, A NOTICE OF REQUEST FOR PROPOSALS UNDER 62

PA.C.S. § 513 AND A NOTICE FOR SOLE SOURCE PROCUREMENT UNDER 62

PA.C.S. § 515, IF THE CONTRACT DOLLAR THRESHOLD IS EXPECTED TO

EXCEED $5,000,000 ANNUALLY, THAT THE SELECTED CONTRACTOR

CONTRIBUTE THE EQUIVALENT VALUE OF 1% OF THE ANNUAL CONTRACT

20170HB0453PN2258 - 34 -

AMOUNT TO THE FUND NO LATER THAN JUNE 30 OF ANY FISCAL YEAR WHEN

THE CONTRACT IS IN EFFECT. THE COMMONWEALTH AGENCY MAY WITHHOLD

PAYMENT EQUIVALENT OF 1% OF THE ANNUAL CONTRACT AMOUNT AND REMIT

THE PAYMENT TO THE FUND ON BEHALF OF THE SELECTED CONTRACTOR IN

ORDER TO EFFECTUATE THE CONTRIBUTION.

BE DEPOSITED INTO THE FUND AND SHALL ONLY BE USED FOR THE

PURPOSES SET FORTH IN SECTION 1753-A.1(C).

(D) DEPOSITS.--WITHIN 15 DAYS OF THE LAST DAY OF EACH MONTH,

THE COMMISSION AND THE OFFICE OF THE BUDGET, IN CONSULTATION

WITH THE STATE TREASURER, SHALL COMPUTE THE TOTAL AMOUNT OF

REVENUE FROM ALL SOURCES RECEIVED BY THE COMMONWEALTH DURING THE

IMMEDIATELY PRECEDING MONTH WHICH SHALL BE DEPOSITED INTO THE

FUND BY THE STATE TREASURER IN ACCORDANCE WITH THIS SUBARTICLE.

SECTION 13. SECTION 1726-C(6) OF THE ACT IS REPEALED:

SECTION 1726-C. FUND TRANSFERS.

THE FOLLOWING SHALL APPLY:

* * *

[(6) NOTWITHSTANDING SUBCHAPTER C OF CHAPTER 7 OF THE

ACT OF MARCH 20, 2002 (P.L.154, NO.13), KNOWN AS THE MEDICAL

CARE AVAILABILITY AND REDUCTION OF ERROR (MCARE) ACT, THE SUM

OF $200,000,000 SHALL BE TRANSFERRED FROM THE UNAPPROPRIATED

SURPLUS OF THE PENNSYLVANIA PROFESSIONAL LIABILITY JOINT

UNDERWRITING ASSOCIATION TO THE GENERAL FUND. THE SUM

TRANSFERRED UNDER THIS SECTION SHALL BE REPAID TO THE

PENNSYLVANIA PROFESSIONAL LIABILITY JOINT UNDERWRITING

ASSOCIATION OVER A FIVE-YEAR PERIOD COMMENCING JULY 1, 2018.

AN ANNUAL PAYMENT AMOUNT SHALL BE INCLUDED IN THE BUDGET

SUBMISSION REQUIRED UNDER SECTION 613 OF THE ACT OF APRIL 9,

1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF

20170HB0453PN2258 - 35 -

1929.]

* * *

SECTION 14. SECTIONS 1718-E AND 1719-E OF THE ACT ARE

AMENDED TO READ:

SECTION 1718-E. DEPARTMENT OF AGRICULTURE.

(A) APPROPRIATIONS.--THE FOLLOWING SHALL APPLY TO

APPROPRIATIONS FOR THE DEPARTMENT OF AGRICULTURE:

(1) NO EXPENDITURES MAY BE MADE FROM THE APPROPRIATION

FOR THE PAYMENT TO THE STATE FARM PRODUCTS SHOW FUND OR FROM

THE STATE FARM PRODUCTS SHOW FUND FOR ANY ACTIVITIES

ASSOCIATED WITH THE PAFE UNLESS SUCH ACTIVITIES TAKE PLACE ON

THE PREMISES OF THE FARM SHOW COMPLEX, HARRISBURG,

PENNSYLVANIA.

(2) THE DEPARTMENT MAY MAKE ALLOCATIONS OF

APPROPRIATIONS FOR DEVELOPMENT AND OPERATION OF AN OPEN

LIVESTOCK SHOW, FOR PLANNING AND STAGING OF AN OPEN DAIRY

SHOW AND FOR PROMOTION AND HOLDING OF ANNUAL LOCAL, REGIONAL

AND STATE 4H CLUBS AND FUTURE FARMERS OF AMERICA DAIRY SHOWS

AS IT DEEMS APPROPRIATE, TO AN ASSOCIATION WHOSE PURPOSES ARE

IN ACCORD WITH THE PURPOSES AND INTENT OF THE APPROPRIATIONS.

ALLOCATIONS UNDER THIS PARAGRAPH SHALL BE USED FOR THE

DEVELOPMENT AND OPERATION OF LIVESTOCK, DAIRY AND JUNIOR

DAIRY SHOWS IN THE PENNSYLVANIA FARM SHOW COMPLEX, PROVIDED

THAT THE FUNDS ALLOCATED BY THE DEPARTMENT SHALL ONLY BE USED

FOR THE SPECIFIC ITEMS APPROVED BY THE DEPARTMENT IN ADVANCE.

(B) PENNSYLVANIA MALT AND BREWED BEVERAGES INDUSTRY

PROMOTION BOARD.--THE MEMBERS OF THE PENNSYLVANIA MALT AND

BREWED BEVERAGES INDUSTRY PROMOTION BOARD ESTABLISHED UNDER

SECTION 446.1 OF THE ACT OF APRIL 12, 1951 (P.L.90, NO.21),

KNOWN AS THE LIQUOR CODE, SHALL BE ENTITLED TO REIMBURSEMENT

20170HB0453PN2258 - 36 -

FROM THE DEPARTMENT OF AGRICULTURE FOR REASONABLE AND NECESSARY

EXPENSES INCURRED IN CONNECTION WITH THE PERFORMANCE OF THEIR

DUTIES AS MEMBERS OF THE BOARD.

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) EXPENDITURES FOR MEDIA ADVERTISING.--THE PROVISIONS OF

THE ACT OF DECEMBER 20, 2015 (P.L.497, NO.90), KNOWN AS THE

TAXPAYER-FUNDED ADVERTISING TRANSPARENCY ACT, SHALL NOT APPLY TO

EXPENDITURES FOR MEDIA ADVERTISING AUTHORIZED FOR THE DEPARTMENT

OF COMMUNITY AND ECONOMIC DEVELOPMENT UNDER SECTION 4 OR 5 OF

THE ACT OF MAY 10, 1939 (P.L.111, NO.51), KNOWN AS THE COMMERCE

LAW.

CONTRARY, IN ADDITION TO THE POWERS GRANTED TO AN AUTHORITY

UNDER 53 PA.C.S. § 5607 (RELATING TO PURPOSES AND POWERS), AN

AUTHORITY MAY:

(1) PERFORM THE REPLACEMENT OR REMEDIATION OF PRIVATE

WATER LATERALS AND PRIVATE SEWER LATERALS FOR CUSTOMERS OF

THE AUTHORITY IF THE AUTHORITY DETERMINES THAT THE

REPLACEMENT OR REMEDIATION WILL BENEFIT THE PUBLIC HEALTH,

PUBLIC WATER SUPPLY SYSTEM OR PUBLIC SEWER SYSTEM. NO

AUTHORITY THAT HAS PERFORMED A REPLACEMENT OR REMEDIATION

20170HB0453PN2258 - 37 -

SHALL BE DEEMED TO BE THE OWNER OF A PRIVATE WATER LATERAL OR

PRIVATE SEWER LATERAL OR BE OBLIGATED TO PERFORM ANY OTHER

DUTIES UNLESS DETERMINED NECESSARY BY THE AUTHORITY.

(2) USE PUBLIC FUNDS AND UTILIZE AUTHORITY EMPLOYEES FOR

THE REPLACEMENT OR REMEDIATION OF PRIVATE WATER LATERALS AND

PRIVATE SEWER LATERALS IF THE AUTHORITY DETERMINES THAT THE

REPLACEMENT OR REMEDIATION WILL BENEFIT THE PUBLIC HEALTH,

PUBLIC WATER SUPPLY SYSTEM OR PUBLIC SEWER SYSTEM. BEFORE

USING PUBLIC FUNDS THE AUTHORITY SHALL CONSIDER THE

AVAILABILITY OF PUBLIC FUNDS, EQUIPMENT, PERSONNEL AND

FACILITIES AND THE COMPETING DEMANDS OF THE AUTHORITY FOR

PUBLIC FUNDS, EQUIPMENT, PERSONNEL AND FACILITIES.

(3) CONSTRUCT AND MAINTAIN WATER OR SANITARY SEWER PUMP

STATIONS, PUBLIC WATER DISTRIBUTION SYSTEMS, PUBLIC SEWER

COLLECTION SYSTEMS OR SIMILAR GENERAL CONSTRUCTION SERVICES

WITHIN THE SERVICE AREA OF THE AUTHORITY OR BY CONTRACT OR

AGREEMENT WITH THE AUTHORITY.

(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 OTHERWISE:

"AUTHORITY." AN AUTHORITY INCORPORATED UNDER 53 PA.C.S. CH.

56 (RELATING TO MUNICIPAL AUTHORITIES).

"PRIVATE SEWER LATERAL." A LINE ON A PROPERTY UPON WHICH A

BUILDING OR STRUCTURE IS LOCATED THAT CONNECTS TO A PUBLIC SEWER

SYSTEM.

"PRIVATE WATER LATERAL." A LINE ON A PROPERTY UPON WHICH A

BUILDING OR STRUCTURE IS LOCATED THAT CONNECTS TO A PUBLIC WATER

SYSTEM.

SECTION 14.1. SECTION 1722-E OF THE ACT IS AMENDED BY ADDING

A SUBSECTION TO READ:

20170HB0453PN2258 - 38 -

SECTION 1722-E. DEPARTMENT OF EDUCATION.

* * *

EDUCATIONAL ACCESS PROGRAM FUNDING RECEIVED IN THE 2017-2018

FISCAL YEAR BY A SCHOOL DISTRICT IDENTIFIED FOR FINANCIAL WATCH

STATUS UNDER SECTION 694-A OF THE ACT OF MARCH 10, 1949 (P.L.30,

NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, DURING THE

2016-2017 SCHOOL YEAR SHALL BE DEEMED TO BE A PART OF THE SCHOOL

DISTRICT'S ALLOCATION AMOUNT UNDER SECTION 2502.53(B)(1) OF THE

PUBLIC SCHOOL CODE OF 1949 FOR THE 2017-2018 SCHOOL YEAR AND

EACH SCHOOL YEAR THEREAFTER.

(D) MAXIMUM SCHOOL DISTRICT MARKET VALUE.--BEGINNING JULY 1,

2017, FOR THE PURPOSES OF THE CALCULATIONS DESCRIBED IN SECTION

2501(14) AND (14.1) OF THE ACT OF MARCH 10, 1949 (P.L.30,

NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, A SCHOOL

DISTRICT'S MARKET VALUE SHALL NOT EXCEED $47,000,000,000 AND, IN

EACH SUBSEQUENT YEAR, THE MAXIMUM MARKET VALUE SHALL BE

INCREASED BY THE PERCENTAGE INCREASE IN MARKET VALUE FOR ALL

SCHOOL DISTRICTS.

SECTION 15. SECTION 1724.1-E OF THE ACT, AMENDED JULY 13,

2016 (P.L.664, NO.85), IS AMENDED TO READ:

SECTION 1724.1-E. PENNSYLVANIA GAMING CONTROL BOARD.

(A) REQUIRED DEPOSIT.--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.

(B) 2016-2017 FISCAL YEAR.--NOTWITHSTANDING 4 PA.C.S. PT. II

OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, FOR ANY SLOT

20170HB0453PN2258 - 39 -

MACHINE LICENSE ISSUED IN THE 2016-2017 FISCAL YEAR THE

[PENNSYLVANIA GAMING CONTROL BOARD] BOARD SHALL REQUIRE THE SLOT

MACHINE LICENSE FEE UNDER SUBSECTION (A) AND THE FEE UNDER 4

PA.C.S. § 13A61 (RELATING TO TABLE GAME AUTHORIZATION FEE) TO BE

PAID IN FULL NO LATER THAN JUNE 30, 2017.

OR ANY OTHER PROVISION OF LAW TO THE CONTRARY, FOR ANY SLOT

MACHINE LICENSE ISSUED IN THE 2017-2018 FISCAL YEAR THE BOARD

SHALL REQUIRE THE SLOT MACHINE LICENSE FEE UNDER SUBSECTION (A)

AND THE FEE UNDER 4 PA.C.S. § 13A61 TO BE PAID IN FULL NO LATER

THAN JUNE 30, 2018.

SECTION 15.1. SECTION 1729-E(2)(II) AND (3)(I) OF THE ACT,

AMENDED APRIL 25, 2016 (P.L.168, NO.25), ARE AMENDED TO READ:

SECTION 1729-E. DEPARTMENT OF HUMAN SERVICES.

THE FOLLOWING SHALL APPLY TO APPROPRIATIONS FOR THE

DEPARTMENT OF HUMAN SERVICES:

* * *

(2) FEDERAL AND STATE MEDICAL ASSISTANCE PAYMENTS. THE

FOLLOWING SHALL APPLY:

* * *

(II) [(RESERVED).] NOTWITHSTANDING ANY OTHER

PROVISION OF LAW, THE ASSESSMENT IMPLEMENTED UNDER

ARTICLE VIII-A OF THE ACT OF JUNE 13, 1967 (P.L.31,

NO.21), KNOWN AS THE HUMAN SERVICES CODE, SHALL BE

REMITTED ELECTRONICALLY IN PERIODIC SUBMISSIONS, AS

SPECIFIED BY THE DEPARTMENT OF HUMAN SERVICES, NOT TO

EXCEED FIVE TIMES PER YEAR. A NURSING FACILITY SHALL

REPORT THE TOTAL ASSESSMENT AMOUNT OWED ON FORMS AND IN

ACCORDANCE WITH INSTRUCTIONS PRESCRIBED BY THE

DEPARTMENT. THE NURSING FACILITY SHALL REMIT THE TOTAL

20170HB0453PN2258 - 40 -

ASSESSMENT AMOUNT OWED BY THE DUE DATE SPECIFIED BY THE

DEPARTMENT, WHICH SHALL NOT BE PRIOR TO 30 DAYS FROM THE

DATE OF THE SECOND NOTICE PUBLISHED UNDER SECTION 805-

A(A) OF THE HUMAN SERVICES CODE.

* * *

(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 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.

* * *

SECTION 15.2. SECTION 1753.1-E OF THE ACT, ADDED JULY 13,

2016 (P.L.664, NO.85), IS AMENDED TO READ:

SECTION 1753.1-E. COMMONWEALTH FINANCING AUTHORITY RESTRICTED

REVENUE ACCOUNT.

(A) ACCOUNT.--THERE IS ESTABLISHED A RESTRICTED REVENUE

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ACCOUNT WITHIN THE GENERAL FUND FOR THE PURPOSE OF MAKING

PRINCIPAL AND INTEREST PAYMENTS COMING DUE IN EACH FISCAL YEAR,

BEGINNING JULY 1, 2016, OR THEREAFTER, FOR OUTSTANDING

INDEBTEDNESS OF THE COMMONWEALTH FINANCING AUTHORITY. THE STATE

TREASURER, UPON CONSULTATION WITH THE SECRETARY OF THE BUDGET,

SHALL TRANSFER FROM THE GENERAL REVENUES OF THE COMMONWEALTH

COLLECTED UNDER ARTICLE II OF THE ACT OF MARCH 4, 1971 (P.L.6,

NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, TO THE RESTRICTED

REVENUE ACCOUNT SUCH AMOUNTS, AS MAY BE NECESSARY, TO MAKE

PAYMENT FOR PRINCIPAL AND INTEREST OBLIGATIONS. THE STATE

TREASURER AND THE SECRETARY OF THE BUDGET SHALL CONSIDER THE

TIMING OF PRINCIPAL AND INTEREST PAYMENTS AND GENERAL FUND CASH

FLOW WHEN DETERMINING TRANSFER AMOUNTS. TRANSFER OF GENERAL

REVENUES UNDER THIS SECTION SHALL NOT EXCEED THE AMOUNT

CERTIFIED UNDER 64 PA.C.S. § 1543(E) (RELATING TO INDEBTEDNESS).

(B) REPORTS.--WITHIN TEN DAYS OF THE EXPIRATION OF EACH

QUARTER OF EACH FISCAL YEAR, THE SECRETARY OF THE BUDGET SHALL

PROVIDE TO 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 A REPORT RELATING TO THE RESTRICTED

REVENUE ACCOUNT UNDER SUBSECTION (A) THAT INCLUDES AT LEAST ALL

OF THE FOLLOWING:

(1) A LIST OF TRANSFERS FROM THE GENERAL REVENUES OF THE

COMMONWEALTH COLLECTED UNDER ARTICLE II OF THE ACT OF MARCH

4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971,

TO THE RESTRICTED REVENUE ACCOUNT IN THE PRECEDING QUARTER.

(2) A LIST OF PROJECTED TRANSFERS FROM THE GENERAL

REVENUES OF THE COMMONWEALTH COLLECTED UNDER ARTICLE II OF

THE TAX REFORM CODE OF 1971 TO THE RESTRICTED REVENUE ACCOUNT

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THAT WILL BE MADE IN THE SUCCEEDING FOUR QUARTERS.

(3) AN ITEMIZED LIST OF THE PRINCIPAL AND INTEREST

PAYMENTS AND THE TIMING OF THOSE PAYMENTS MADE FROM THE

RESTRICTED REVENUE ACCOUNT IN THE PRECEDING QUARTER.

(4) AN ITEMIZED LIST OF THE PRINCIPAL AND INTEREST

PAYMENTS AND THE TIMING OF THOSE PAYMENTS TO BE PAID FROM THE

RESTRICTED REVENUE ACCOUNT IN THE SUCCEEDING FOUR QUARTERS.

(5) AN ESTIMATE OF THE TOTAL AMOUNT OF OUTSTANDING

COMMONWEALTH FINANCING AUTHORITY DEBT TO BE PAID FROM THE

RESTRICTED REVENUE ACCOUNT.

SECTION 16. SECTION 1795.1-E OF THE ACT IS AMENDED TO READ:

SECTION 1795.1-E. SURCHARGES.

(A) LEGISLATIVE FINDING.--DUE TO REDUCTIONS IN REVENUE

AVAILABLE TO THE COMMONWEALTH, IT IS NECESSARY TO INCREASE

CERTAIN FEES OR SURCHARGES TO ADEQUATELY FUND THE UNIFIED

JUDICIAL SYSTEM.

(B) IMPOSITION.--IN ADDITION TO THE FEE UNDER [42 PA.C.S. §

3733.1(A)(1) (RELATING TO SURCHARGE)] SECTION 2802-E(A)(1) OF

THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE

ADMINISTRATIVE CODE OF 1929, AN ADDITIONAL SURCHARGE OF $10

SHALL BE CHARGED AND COLLECTED BY A DIVISION OF THE UNIFIED

JUDICIAL SYSTEM. THE PROVISIONS OF SECTION 2802-E(B) OF THE

ADMINISTRATIVE CODE OF 1929 SHALL NOT APPLY TO THIS SUBSECTION.

THIS SUBSECTION SHALL EXPIRE DECEMBER 31, [2017] 2020.

SECTION 16.1. THE ACT IS AMENDED BY ADDING A SECTION TO

READ:

SECTION 1798.3-E. MULTIMODAL TRANSPORTATION FUND.

(A) DEPARTMENT OF TRANSPORTATION.--FROM FUNDS AVAILABLE TO

THE DEPARTMENT OF TRANSPORTATION UNDER 74 PA.C.S. § 2104(A)(2)

(RELATING TO USE OF MONEY IN FUND), THE LOCAL MATCH UNDER 74

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PA.C.S. § 2106 (RELATING TO LOCAL MATCH) MAY BE WAIVED BY THE

SECRETARY OF TRANSPORTATION FOR GOOD CAUSE IF THE APPLICANT FOR

ASSISTANCE IS A MUNICIPALITY.

(B) COMMONWEALTH FINANCING AUTHORITY.--NOTWITHSTANDING THE

PROVISIONS OF 74 PA.C.S. § 2106, A MUNICIPALITY RECEIVING

FINANCIAL ASSISTANCE UNDER 74 PA.C.S. § 2104(A)(4) MAY NOT BE

REQUIRED TO PROVIDE A LOCAL MATCH.

"MUNICIPALITY" SHALL MEAN A CITY, BOROUGH, INCORPORATED TOWN OR

TOWNSHIP.

(D) EXPIRATION.--THIS SECTION SHALL EXPIRE DECEMBER 31,

2018.

SECTION 16.2. SECTION 1799.1-E OF THE ACT IS AMENDED TO

READ:

SECTION 1799.1-E. PENNSYLVANIA LIQUOR CONTROL BOARD.

(A) LICENSE FEES.--IN ORDER TO ENCOURAGE APPLICATIONS FOR

LICENSURE FOR TAVERN GAMING, THE PENNSYLVANIA LIQUOR CONTROL

BOARD MAY REDUCE THE LICENSE FEE UNDER SECTION 905(C) OF THE ACT

OF DECEMBER 19, 1988 (P.L.1262, NO.156), KNOWN AS THE LOCAL

OPTION SMALL GAMES OF CHANCE ACT, TO $500 UPON APPROVAL OF THE

LICENSE.

(B) UNALLOCATED GRANT MONEY.--IN ANY FISCAL YEAR WHEN GRANT

MONEY AUTHORIZED UNDER SECTION 446.1 OF THE ACT OF APRIL 12,

1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, REMAINS

UNALLOCATED, THE REMAINING AMOUNT OF MONEY SHALL BE MADE

AVAILABLE FOR GRANTS IN SUBSEQUENT FISCAL YEARS.

SECTION 16.3. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 1799.5-E. SALES BY DISTILLERIES.

(A) GENERAL RULE.--NOTWITHSTANDING ANY PROVISION OF THE ACT

OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, TO

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