Regular Session 2019-2020 House Bill 1232 P.N. 3500

SENATE AMENDED

PRIOR PRINTER'S NO. 1444

PRINTER'S NO. 3500

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1232

Session of

2019

INTRODUCED BY DUNBAR, MILLARD, WHEELAND, GROVE, PICKETT, GAYDOS,

LAWRENCE AND MENTZER, APRIL 16, 2019

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

AMENDED, MARCH 25, 2020

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 cancer control, prevention and

research, for ambulatory surgical center data collection, for

the Joint Underwriting Association, for entertainment

business financial management firms, for private dam

financial assurance and for reinstatement of item vetoes;

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

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other moneys to the Commonwealth, or any agency thereof,

every State depository and every debtor or creditor of the

Commonwealth," PROVIDING FOR EMERGENCY FINANCE AND TAX

PROVISIONS; in additional special funds, providing for COVID-

19 RESPONSE TRANSFERS AND FOR the Enhanced Revenue Collection

Account; in 2018-2019 budget implementation, further

providing for Department of Revenue; and making an editorial

change.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The heading of Article XVII-A.1 of the act of

April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, is

amended to read:

SECTION 1. THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN

AS THE FISCAL CODE, IS AMENDED BY ADDING AN ARTICLE TO READ:

ARTICLE I-A

EMERGENCY FINANCE AND TAX PROVISIONS

SECTION 101-A. DECLARATION OF POLICY.

THE GENERAL ASSEMBLY FINDS AND DECLARES AS FOLLOWS:

(1) THERE ARE CIRCUMSTANCES UNDER WHICH IT IS IMPOSSIBLE

TO EFFECTIVELY COMPLY WITH LAW RELATING TO STATE FINANCE OR

STATE TAX.

(2) WHEN CIRCUMSTANCES UNDER PARAGRAPH (1) ARISE, IT IS

NECESSARY FOR COMMONWEALTH AGENCIES TO EXERCISE TEMPORARY

POWERS AND DUTIES SET FORTH IN THIS ARTICLE.

SECTION 102-A. DEPARTMENT OF REVENUE.

(A) SCOPE.--THIS SECTION PROVIDES TEMPORARY AUTHORITY TO THE

DEPARTMENT OF REVENUE TO DEAL WITH STATE TAXATION DURING THE

STATE OF DISASTER EMERGENCY ANNOUNCED BY THE GOVERNOR'S MARCH 6,

2020, PROCLAMATION OF DISASTER EMERGENCY.

(B) FILING AND PAYMENT DEADLINES.--DURING THE STATE OF

DISASTER EMERGENCY UNDER SUBSECTION (A), ALL OF THE FOLLOWING

APPLY:

(1) THE DEPARTMENT SHALL EXTEND FILING AND PAYMENT

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DEADLINES UNDER SECTIONS 325(D), (E), (F) AND (H), 326,

330.1(B) AND 335(C)(1), (D), (E) AND (F)(1) OF THE ACT OF

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

1971, AND RELATED STATUTORY AND REGULATORY PROVISIONS SO THAT

THE DEADLINES COINCIDE WITH THE FILING DEADLINE FOR A TAX

RETURN AND PAYMENT UNDER SECTION 330 OF THE TAX REFORM CODE

OF 1971.

(2) THE DEPARTMENT SHALL DISREGARD THE PERIOD AFTER

APRIL 14, 2020, AND BEFORE JULY 16, 2020, IN THE CALCULATION

OF INTEREST, A PENALTY OR AN ADDITION TO TAX FOR FAILURE TO

MEET THE EXTENDED DEADLINE UNDER PARAGRAPH (1).

SECTION 103-A. DEPARTMENT OF COMMUNITY AND ECONOMIC

DEVELOPMENT.

(A) SCOPE.--THIS SECTION PROVIDES TEMPORARY AUTHORITY TO THE

DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT TO DEAL WITH

LOCAL TAXATION DURING THE STATE OF DISASTER EMERGENCY ANNOUNCED

BY THE GOVERNOR'S MARCH 6, 2020, PROCLAMATION OF DISASTER

EMERGENCY.

(B) LOCAL TAXATION.--DURING THE STATE OF DISASTER EMERGENCY

UNDER SUBSECTION (A), THE DEPARTMENT SHALL COORDINATE WITH THE

GOVERNING BODIES AND LOCAL AGENCIES OF POLITICAL SUBDIVISIONS TO

DO ALL OF THE FOLLOWING:

(1) EXTEND FILING AND PAYMENT DEADLINES FOR LOCAL TAXES

UNDER CHAPTER 5 OF THE ACT OF DECEMBER 31, 1965 (P.L.1257,

NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, AND RELATED

STATUTORY PROVISIONS, ORDINANCES AND RESOLUTIONS SO THAT THE

DEADLINES COINCIDE WITH THE FILING DEADLINE FOR A TAX RETURN

AND PAYMENT UNDER SECTION 330 OF THE ACT OF MARCH 4, 1971

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

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(2) DISREGARD THE PERIOD AFTER APRIL 14, 2020, AND

BEFORE JULY 16, 2020, IN THE CALCULATION OF INTEREST, A

PENALTY OR AN ADDITION TO TAX FOR FAILURE TO MEET THE

EXTENDED DEADLINE UNDER PARAGRAPH (1).

SECTION 1.1. THE HEADING OF ARTICLE XVII-A.1 OF THE ACT IS

AMENDED TO READ:

ARTICLE XVII-A.1

ADDITIONAL SPECIAL FUNDS AND RESTRICTED ACCOUNTS

SECTION 1.2. SUBARTICLE D OF ARTICLE XVII-A.1 IS AMENDED BY

ADDING SECTIONS TO READ:

SECTION 1735-A.1. COVID-19 RESPONSE TRANSFERS FOR ASSISTANCE TO

THE COMMONWEALTH'S HEALTH CARE SYSTEM.

(A) TRANSFERS.--NOTWITHSTANDING ANY OTHER PROVISION OF LAW

TO THE CONTRARY, THE SECRETARY OF THE BUDGET MAY TRANSFER THE

SUM OF $50,000,000 FROM SPECIAL FUNDS UNDER THE GOVERNOR'S

JURISDICTION TO A RESTRICTED ACCOUNT AS PROVIDED UNDER

SUBSECTION (B). THESE FUNDS SHALL BE USED TO ACQUIRE MEDICAL

EQUIPMENT AND SUPPLIES FOR HEALTH CARE ENTITIES TO MEET URGENT

PATIENT AND STAFF NEEDS TO ADDRESS SURGE DEMAND. HEALTH CARE

ENTITIES SHALL INCLUDE, BUT NOT BE LIMITED TO, HOSPITALS,

NURSING FACILITIES AND EMERGENCY MEDICAL SERVICES.

(B) DEPOSIT.--THE FUNDS TRANSFERRED UNDER SUBSECTION (A)

SHALL BE DEPOSITED BY THE SECRETARY OF THE BUDGET INTO A

RESTRICTED ACCOUNT WITHIN THE GENERAL FUND OF THE STATE TREASURY

AS NECESSARY TO MAKE PAYMENTS UNDER THIS SECTION AND, WHEN

TRANSFERRED, ARE HEREBY APPROPRIATED TO CARRY OUT THE PROVISIONS

OF THIS SECTION RELATED TO THE COMMONWEALTH ' S COVID-19 RESPONSE.

TRANSFER OF FUNDS IF THE TRANSFER WOULD RESULT IN A DEFICIT IN

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ANY OF THE FUNDS.

(D) AUTHORIZATION.--THE SECRETARY OF THE BUDGET SHALL ONLY

BE AUTHORIZED TO MAKE TRANSFERS UNDER SUBSECTION (A) TO THE

EXTENT THAT FUNDING AUTHORIZED BY THE FEDERAL GOVERNMENT AND THE

GOVERNOR ' S DISASTER PROCLAMATION ARE INSUFFICIENT TO MEET THE

NEEDS OF THE COMMONWEALTH ' S COVID-19 RESPONSE.

(E) NOTIFICATION.--THE SECRETARY OF THE BUDGET SHALL PROVIDE

NOTIFICATION 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 24 HOURS PRIOR TO MAKING ANY TRANSFERS

UNDER SUBSECTION (A). THE NOTIFICATION SHALL INCLUDE THE NAME OF

THE SPECIAL FUND AND THE DOLLAR AMOUNT TO BE TRANSFERRED.

(F) REPORT.--BEGINNING JUNE 1, 2020, AND THE FIRST DAY OF

EACH MONTH THEREAFTER, THE SECRETARY OF THE BUDGET SHALL PROVIDE

A REPORT DETAILING ALL SPENDING RELATED TO THE COVID-19 RESPONSE

THE COMMONWEALTH HAS MADE DURING THE PRECEDING MONTH, INCLUDING

ANY FUNDING MADE AVAILABLE THROUGH THE FEDERAL GOVERNMENT, THE

GOVERNOR ' S DISASTER PROCLAMATION, AN AGENCY BUDGET OR THE

TRANSFERS UNDER THIS SECTION. THE REPORT SHALL INCLUDE THE

RECIPIENT, THE DOLLAR AMOUNT AND A DETAILED EXPLANATION OF THE

PURPOSE OF THE SPENDING. THE SECRETARY OF THE BUDGET SHALL

PROVIDE THE REPORT TO THE MAJORITY LEADER AND MINORITY LEADER OF

THE SENATE, THE MAJORITY LEADER AND MINORITY LEADER OF THE HOUSE

OF REPRESENTATIVES, 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.

(G) EXPIRATION.--THE AUTHORITY TO TRANSFER FUNDS UNDER

SUBSECTION (A) SHALL EXPIRE ON SEPTEMBER 30, 2020.

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(H) DEFINITIONS.--AS USED IN THIS SECTION, THE TERM " COVID-

19 " SHALL MEAN THE NOVEL CORONAVIRUS AS IDENTIFIED IN THE

GOVERNOR ' S PROCLAMATION OF DISASTER EMERGENCY ISSUED ON MARCH 6,

2020.

SECTION 1736-A.1. EXTENSION OF TEMPORARY REGULATIONS.

NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE TEMPORARY

REGULATIONS AUTHORIZED AND PUBLISHED UNDER SECTIONS 1107 AND

2004 OF THE ACT OF APRIL 17, 2016 (P.L.84, NO.16), KNOWN AS THE

MEDICAL MARIJUANA ACT, SHALL REMAIN IN EFFECT AND SHALL NOT

EXPIRE UNTIL NOVEMBER 20, 2021, OR UPON THE PUBLICATION OF THE

FINAL-FORM REGULATIONS BY THE DEPARTMENT OF HEALTH, WHICHEVER IS

SOONER.

Section 2. Article XVII-A.1 of the act is amended by adding

a subarticle to read:

SUBARTICLE G

ENHANCED REVENUE COLLECTION ACCOUNT

Section 1761-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:

"Account." The Enhanced Revenue Collection Account continued

under section 1762-A.1.

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

Section 1762-A.1. Enhanced Revenue Collection Account.

The Enhanced Revenue Collection Account is continued as a

restricted account within the General Fund. Revenues collected

and the amount of refunds avoided as a result of expanded tax

return reviews and tax collection activities by the department

shall be deposited into the account.

Section 1763-A.1. Use of account.

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(a) Appropriation.--The General Assembly may appropriate

money in the account to the department to fund the costs

associated with expanded tax return reviews and tax collection

activities.

(b) Return.--Except for amounts appropriated under

subsection (a), money in the account shall be returned

proportionately to the General Fund revenue or refund accounts

that were the source of the money no later than the 28th day of

each month of the fiscal year.

Section 1764-A.1. Report.

The department shall issue a report to 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 by June 1 5 , 2020, and each June 1 thereafter,

with the following information:

(1) A detailed breakdown of the department's

administrative costs in implementing expanded tax return

reviews and tax collection activities.

(2) The amount of revenue collected and the amount of

refunds avoided as a result of the expanded tax return

reviews and tax collection activities, including the type of

tax generating the revenue and avoided refunds.

Section 3. Section 1730-H of the act, repealed and added

June 22, 2018 (P.L.281, No.42) AND AMENDED JUNE 28, 2019

(P.L.173, NO.20), is amended REENACTED to read:

Section 1730-H. Department of Revenue.

The following apply to appropriations for the Department of

Revenue:

(1) The Enhanced Revenue Collection Account shall

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continue as a restricted account within the General Fund

through fiscal year [2019-2020] 2018-2019 2018-2019. Revenues

collected and the amount of refunds avoided as a result of

expanded tax return reviews and tax collection activities

shall be deposited into the restricted account. The following

shall apply:

(i) Of the money transferred under this paragraph in

the account, for fiscal years 2018-2019 [and 2019-2020],

up to $30,000,000 is appropriated to the department to

fund the costs associated with expanded tax return

reviews and tax collection activities. The balance of the

money in the account shall be returned proportionately to

the General Fund revenue or refund accounts that were the

source of the money no later than the 28th day of each

month of the fiscal year.

(ii) The department shall issue a report to the

Governor, the chairperson and the minority chairperson of

the Appropriations Committee of the Senate and the

chairperson and minority chairperson of the

Appropriations Committee of the House of Representatives

by June 1, 2019, [and by each June 1 thereafter,] with

the following information:

(A) A detailed breakdown of the department's

administrative costs in implementing expanded tax

return reviews and tax collection activities.

(B) The amount of revenue collected and the

amount of refunds avoided as a result of the expanded

tax return reviews and tax collection activities,

including the type of tax generating the revenue and

avoided refunds.

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(2) (Reserved).

Section 4. This act shall take effect July 1, 2019, or

immediately, whichever occurs later. AS FOLLOWS:

(1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT

IMMEDIATELY:

(I) THE ADDITION OF ARTICLE I-A OF THE ACT.

(II) THIS SECTION.

(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JULY 1,

2019, OR IMMEDIATELY, WHICHEVER OCCURS LATER.

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