PRINTER'S NO. 1233
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1177
Session of
2021
INTRODUCED BY KAUFER, ROTHMAN, PEIFER, MILLARD, RYAN, ZIMMERMAN
AND PICKETT, APRIL 14, 2021
REFERRED TO COMMITTEE ON TRANSPORTATION, APRIL 14, 2021
AN ACT
Establishing the Transportation Reinvestment and Improvement
Program and Transportation Reinvestment and Improvement
Program Fund; and providing for transfers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the
Transportation Reinvestment and Improvement Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Transportation of the
Commonwealth.
"Eligible tax." Any of the following taxes:
(1) Corporate net income tax, bank shares tax, personal
income tax paid by shareholders, members or partners of
Subchapter S corporations, limited liability companies,
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partnerships or sole proprietors on income other than passive
activity income as defined under section 469 of the Internal
Revenue Code of 1986 (Public Law 99-516, 26 U.S.C. ยง 1 et
seq.).
(2) Sales and use tax, only to the extent the tax is
related to the activity of a qualified business. The term
includes sales and use taxes on material used for
construction by the qualified business and business personal
property to be used by the qualified business.
(3) The hotel occupancy tax imposed under Part V of
Article II of the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971.
(4) Personal income tax withheld from its employees by a
qualified business for work performed by the qualified
business.
(5) All taxes paid to the Commonwealth, or an amount
equal to all of the taxes paid to the Commonwealth, related
to the purchase or sale of liquor, wine or malt or brewed
beverages by a licensee who is a qualified business.
"Fund." The Transportation Reinvestment and Improvement
Program Fund established under section 4.
"Office." The Office of the Budget.
"Program." The Transportation Reinvestment and Improvement
Program established under section 3.
"Qualified business." An entity that is awarded funding
through the program. The term does not include an agent, broker
or representative of a business.
Section 3. The Transportation Reinvestment and Improvement
Program.
(a) Establishment.--The Transportation Reinvestment and
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Improvement Program is established in the department.
(b) Certain costs funded by program.--The department shall
pay up to 80% of all fees, costs and expenses for a qualified
business which are incident to or arise from the qualified
business obtaining a highway occupancy permit from the
department, including inspection costs and the cost of related
highway improvements that increased traffic or surface drainage
may necessitate.
(c) Escrow.--The money paid to a qualified business by the
department under subsection (b) shall be held in escrow by the
qualified business unencumbered and maintained by the qualified
business until receipt of notice under section 7(c)(2).
(d) Application.--The department shall prescribe the form
and manner to apply to become a qualified business under the
program.
Section 4. Transportation Reinvestment and Improvement Program
Fund.
(a) Establishment.--A special fund is established within the
State Treasury to be known as the Transportation Reinvestment
and Improvement Program Fund.
(b) Initial transfer.--The General Assembly may appropriate
Federal money received by the Commonwealth under the American
Rescue Plan Act of 2021 (Public Law 117-2, 135 Stat. 4) to the
fund.
(c) Use of money in fund.--Money in the fund is appropriated
on a continuing basis to the department for the purpose of
administering the program.
Section 5. Report.
(a) Qualified business report.--No later than June 15 in the
year following a qualified business's approval and June 15 of
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each year thereafter, each qualified business shall file a
report with the Department of Revenue in a form or manner
required by the Department of Revenue which includes all of the
following:
(1) Amount of each eligible tax which was paid to the
Commonwealth by the qualified business in the prior calendar
year.
(2) Amount of each eligible tax refund received from the
Commonwealth in the prior calendar year by the qualified
business.
(b) Penalties.--
(1) Failure to file a timely and complete report under
subsection (a) may result in the imposition of a penalty of
the lesser of:
(i) 10% of all eligible tax due the taxing authority
in the prior calendar year; or
(ii) $1,000.
(2) A penalty for a violation of subsection (a) shall be
imposed, assessed and collected by the Department of Revenue
under the procedures of Article II of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
Money collected under this paragraph shall be deposited in
the fund.
Section 6. Certification.
By October 15 following the year of approval as a qualified
business, and October 15 of each year thereafter, the Department
of Revenue shall do the following for each qualified business
for the prior calendar year:
(1) For a qualified business which files a qualified
business report for the prior calendar year, determine an
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amount by subtracting the amount of eligible tax refunds
received from the amount of eligible tax paid.
(2) Certify to the office and the State Treasurer the
amount calculated under paragraph (1).
Section 7. Transfers.
(a) General.--Within 10 days of receiving the certified
amount from the Department of Revenue under section 6, the State
Treasurer shall transfer an amount equal to the amount certified
under section 6 from the General Fund to the fund in accordance
with subsection (b).
(b) State Treasurer.--The State Treasurer shall transfer to
the fund the amount directed under subsection (a) until an
amount equal to the amounts paid to qualified businesses under
section 3(b), plus an additional 10% of the amount, have been
transferred to the fund.
(c) Notice.--
(1) Within 10 days of the last transfer under this
section, the office shall notify the department.
(2) Within 10 days of receipt of the notice under
paragraph (1), the department shall notify the qualified
business that all conditions for maintaining the money in
escrow have been satisfied and the money is no longer
required to remain in escrow.
Section 8. Effective date.
This act shall take effect in 60 days.
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