2025 Pennsylvania Consolidated & Unconsolidated Statutes
Act 45 - FISCAL CODE - OMNIBUS AMENDMENTS

Session of 2025

No. 2025-45

 

HB 416

 

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 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 other moneys to the Commonwealth, or any agency thereof, every State depository and every debtor or creditor of the Commonwealth," providing for Child Care Staff Recruitment and Retention Program; in 911 Emergency Communication Services, further providing for surcharge; in Department of Revenue, further providing for exclusion from classes of income and providing for research and experimental expenditures and qualified production property, for report to General Assembly and for interest expense; in joint underwriting association, further providing for findings and for definitions, repealing provisions relating to sunset and providing for risk-based capital certification, for fund transfers, for association oversight and additional duties, for Joint Underwriting Association Board, for board meetings, for construction, for dissolution, for appropriations and for reports and hearings; in State Health Insurance Exchange Affordability Program, further providing for Exchange Affordability Assistance Account; providing for Rural Health Transformation Program; in Treasury Department, providing for waiver of interest, costs and fees; in procedure for disbursement of money from the State Treasury, further providing for use and appropriation of unused Commonwealth funds; in oil and gas wells, further providing for Oil and Gas Lease Fund; providing for advanced air mobility sites and for public transportation vehicles; in human services, further providing for resident care and related costs; in Attorney General, providing for home improvement contractor registration fee; providing for Rare Disease Advisory Council, for affordable housing tax credit and for working Pennsylvanians tax credit; in additional keystone opportunity expansion zones, providing for additional keystone opportunity expansion zones for certain counties of the fourth class; providing for additional extensions of keystone opportunity zones; in special funds, further providing for funding, for expiration and for other grants; in additional special funds and restricted accounts, further providing for establishment of special fund and account, for use of fund and for distributions from Pennsylvania Race Horse Development Fund and providing for refund of 2003 assessment by Insurance Department; in additional special funds and restricted accounts relating to Service and Infrastructure Improvement Fund, further providing for deposits and providing for Property Tax Relief Fund; in general budget implementation, further providing Executive Offices, for Department of Community and Economic Development, for Department of Environmental Protection, for Pennsylvania Fish and Boat Commission, for Pennsylvania Higher Education Assistance Agency and for Commonwealth Financing Authority, providing for stenography services, further providing for surcharges, for Federal and Commonwealth use of forest land and for Multimodal Transportation Fund and providing for State Sexual Offenders Assessment Board, for interest transfers, for fund transfers and for miscellaneous provisions; in 2024-2025 budget implementation, further providing for Department of Education, for Department of Environmental Protection and for Department of Human Services; in Streamlining Permits for Economic Expansion and Development Program, further providing for scope of article, for definitions and for the Streamlining Permits for Economic Expansion and Development Program, providing for review and determination of specific permits and for State agency permits and further providing for construction; providing for electricity load forecast accountability, for 2025-2026 budget implementation and for 2025-2026 restrictions on appropriations for funds and accounts; making repeals; and making editorial changes.

The General Assembly finds and declares as follows:

(1)  The intent of this act is to provide for the implementation of the 2025-2026 Commonwealth budget.

(2)  The Constitution of Pennsylvania confers numerous express duties upon the General Assembly, including the passage of a balanced budget for the Commonwealth.

(3)  Section 24 of Article III of the Constitution of Pennsylvania requires the General Assembly to adopt all appropriations for the operation of government in 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 under paragraphs (1), (2), (3), (4) and (5), it is the intent of the General Assembly through this act to provide for the implementation of the 2025-2026 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 2025-2026 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 November 12, 2025 (P.L.  , No.1A), known as the General Appropriation Act of 2025.

 

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

 

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-H.1

CHILD CARE STAFF RECRUITMENT AND RETENTION PROGRAM

Section 101-H.1.  Scope of article.

This article relates to the Child Care Staff Recruitment and Retention Program.

Section 102-H.1.  Definitions.

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

"Application."  An application by a qualified child care provider requesting a payment under this article.

"Department."  The Department of Human Services of the Commonwealth.

"Payment."  Money disbursed by the department under this article to a qualified child care provider for the program.

"Program."  The Child Care Staff Recruitment and Retention Program established under section 103-H.1(a).

"Qualified child care provider."  As follows:

(1)  A provider that meets all of the following criteria:

(i)  Is certified by the department as a children's institution that provides child care, a child care center or a family child care home under Article IX or X of the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code.

(ii)  Is operating on the date the provider submits an application.

(iii)  Has a child care subsidy agreement with the department on the date the provider submits an application.

(2)  The term does not include a provider that is under investigation for fraud, subject to a Commonwealth lien, has had a certificate of compliance revoked, denied or not renewed or holds a provisional certificate of compliance under section 1008(a) of the Human Services Code or 55 Pa. Code § 20.54(a) (relating to provisional certificate of compliance).

"Qualified staff."  As follows:

(1)  Any of the following:

(i)  An employee of a qualified child care provider who directly supervises children.

(ii)  An operator of a family child care home who directly supervises children.

(2)  The term does not include staff who do not directly supervise children, including center executives or owners, janitorial staff, food service staff or administrative or support staff.

Section 103-H.1.  Child Care Staff Recruitment and Retention Program.

(a)  Establishment.--The Child Care Staff Recruitment and Retention Program is established within the department. The program shall provide annual recruitment and retention payments to qualified child care providers. Payments received by   qualified child care providers under the program shall be distributed only for recruitment and retention payments to qualified staff.

(b)  Application.--The department shall develop an application form for qualified child care providers to apply for payments. The department shall post the application form on the department's publicly accessible Internet website. Applications shall be submitted in the form and manner determined by the department. A qualified child care provider must submit an application no later than 45 days after the application form is posted on the department's publicly accessible Internet website.

(c)  Determination.--The department shall approve or deny an application submitted under subsection (b) no later than 45 days after receipt. The department may not make a payment to an entity that is not a qualified child care provider.

(d)  Allocation of payments.--

(1)  The department shall allocate payments to administer an individual retention bonus of at least $450 per member of qualified staff.

(2)  After making the allocation under paragraph (1), the department shall allocate the remaining funds for recruitment payments to qualified staff based on provider type and licensed capacity.

(e)  Conditions.--

(1)  Payments received by a qualified child care provider may not supplant existing funds used for staff wages, bonuses or benefits.

(2)  Payments received by a qualified child care provider under this section shall be used only for the following purposes:

(i)  Hiring bonuses for newly employed qualified staff.

(ii)  Retention bonuses for qualified staff.

(3)  Payments received by a qualified child care provider shall be expended in the fiscal year in which the payment is made.

(f)  Compliance.--The department may recover a payment from a qualified child care provider that fails to comply with this article or other applicable Federal or State law or regulation. A qualified child care provider that receives a payment shall provide documents, records and other information related to the payment in the time, manner and format requested by the department or by another Commonwealth agency authorized to audit the provider or the payment.

(g)  Reporting.--No later than September 15, 2026, and each September 15 thereafter, the department shall submit a report 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, and shall post the report on the department's publicly accessible Internet website. The report shall include all of the following information:

(1)  The number of payments to qualified child care providers.

(2)  The county in which each payment is made.

(3)  The total number of applications received in the previous fiscal year.

(4)  Any other information the department deems necessary.

Section 104-H.1.  Regulations.

The department may promulgate regulations as necessary to implement this article.

Section 2.  Sections 102-K(a)(2) and 202.3 of the act are amended to read:

Section 102-K.  Surcharge.

(a)  Rates.--

* * *

(2)  After February 29, 2024, and before February 1, [2026] 2029, the surcharge under 35 Pa.C.S. § 5306.2(a) shall be $1.95.

* * *

Section 202.3.  Exclusion from Classes of Income.--Notwithstanding any other provision of law, [amounts] the following may not be included in any of the classes of income enumerated under section 303 of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971":

(1)  Amounts paid or incurred by an employer of an employe for dependent care assistance provided to the employe that are excludable under 26 U.S.C. § 129 (relating to dependent care assistance programs) [may not be included in any of the classes of income enumerated under section 303 of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971."].

(2)  Any amount received by a Holocaust survivor as part of Holocaust reparations.

Section 3.  The act is amended by adding sections to read:

Section 216.  Research and Experimental Expenditures and Qualified Production Property.--(a)  Notwithstanding section 401(3)1(a) of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971," taxable income as defined by section 401(3) of the "Tax Reform Code of 1971," shall include:

(1)  the amount of the amortization deduction for any research and experimental expenditures claimed and allowable under section 174 of the Internal Revenue Code of 1986 (26 U.S.C. § 174); and

(2)  the amount of the amortization deduction for any research and experimental expenditures claimed and allowable under section 59(e) of the Internal Revenue Code of 1986 (26 U.S.C. § 59(e)).

(b)  Notwithstanding section 401(3)1(a) of the "Tax Reform Code of 1971," if research and experimental expenditures were included in taxable income in accordance with subsection (a), an additional deduction for research and experimental expenditures shall be allowed from taxable income, as defined by section 401(3) of the "Tax Reform Code of 1971," until the total amount deductible under sections 174 and 59(e) of the Internal Revenue Code of 1986 (26 U.S.C. §§ 174 and 59(e)) for the tax year has been claimed. The additional deduction shall be equal to twenty per cent of the remaining unamortized qualified research and experimental expenditures allowable under sections 174 and 59(e) of the Internal Revenue Code of 1986 (26 U.S.C. §§ 174 and 59(e)). In no event shall the total of the additional deductions under this subsection be more than the remaining unamortized qualified research and experimental expenditures allowable under sections 174 and 59(e) of the Internal Revenue Code of 1986 (26 U.S.C. §§ 174 and 59(e)).

(c)  Notwithstanding section 401(3)1(a) of the "Tax Reform Code of 1971," taxable income, as defined by section 401(3) of the "Tax Reform Code of 1971," shall include:

(1)  the amount of the deduction for any research and experimental expenditures claimed and allowable under section 174A of the Internal Revenue Code of 1986 (26 U.S.C. § 174A); and

(2)  the amount of the amortization deduction for any research and experimental expenditures claimed and allowable under section 174A of the Internal Revenue Code of 1986 (26 U.S.C. § 174A).

(d)  Notwithstanding section 401(3)1(a) of the "Tax Reform Code of 1971," if research and experimental expenditures were included in taxable income in accordance with subsection (c), an additional deduction for research and experimental expenditures shall be allowed from taxable income, as defined by section 401(3) of the "Tax Reform Code of 1971," until the total amount deductible under section 174A of the Internal Revenue Code of 1986 (26 U.S.C. § 174A) for the tax year has been claimed. The additional deduction shall be equal to twenty per cent of the qualified research and experimental expenditures allowable under section 174A of the Internal Revenue Code of 1986 (26 U.S.C. § 174A). In no event shall the total of the additional deductions under this subsection be more than the qualified research and experimental expenditures allowable under section 174A of the Internal Revenue Code of 1986 (26 U.S.C. § 174A).

(e)  Notwithstanding section 401(3)1(a) of the "Tax Reform Code of 1971," taxable income, as defined by section 401(3) of the "Tax Reform Code of 1971," shall include the amount of any deduction claimed and allowable under section 481 of the Internal Revenue Code of 1986 (26 U.S.C. § 481) which relates to research and experimental expenditures originally made by the taxpayer in tax years beginning after December 31, 2021, and before tax years beginning after December 31, 2024.

(f)  Notwithstanding section 401(3)1(a) of the "Tax Reform Code of 1971," if amounts related to a change in the taxpayer's method of accounting for purposes of section 481 of the Internal Revenue Code of 1986 (26 U.S.C. § 481) were included in taxable income in accordance with subsection (e), an additional deduction shall be allowed from taxable income, as defined by section 401(3) of the "Tax Reform Code of 1971," until the total amount originally amortizable under section 174 of the Internal Revenue Code of 1986 (26 U.S.C. § 174) for the tax year has been claimed. The additional deduction shall be equal to twenty per cent of the remaining unamortized qualified research and experimental expenditures originally subject to amortization under section 174 of the Internal Revenue Code of 1986 (26 U.S.C. § 174). In no event shall the total of the additional deductions under this subsection be more than the remaining unamortized qualified research and experimental expenditures originally allowable under section 174 of the Internal Revenue Code of 1986 (26 U.S.C. § 174).

(g)  Notwithstanding section 401(3)1(a) of the "Tax Reform Code of 1971," taxable income, as defined by section 401(3) of the "Tax Reform Code of 1971," shall include the amount of the deduction for depreciation of qualified production property claimed and allowable under section 168(n) of the Internal Revenue Code of 1986 (26 U.S.C. § 168(n)).

(h)  Notwithstanding section 401(3)1(a) of the "Tax Reform Code of 1971," if a deduction for depreciation of qualified production property was included in taxable income in accordance with subsection (g), an additional deduction for depreciation of the qualified production property shall be allowed from taxable income, as defined by section 401(3) of the "Tax Reform Code of 1971," until the total amount included as taxable income under subsection (g) has been claimed. The additional deduction shall be equal to the depreciation on the qualified production property for the taxable year as determined in accordance with sections 167 and 168 of the Internal Revenue Code of 1986 (26 U.S.C. §§ 167 and 168), except that section 168(n) of the Internal Revenue Code of 1986 (26 U.S.C. § 168(n)) shall not apply.

(i)  For qualified production property which is sold or otherwise disposed of during a taxable year by a taxpayer and for which depreciation was included as taxable income under subsection (g), an additional deduction shall be allowed from taxable income, as defined by section 401(3) of the "Tax Reform Code of 1971," to the extent the amount of depreciation claimed under section 168(n) of the Internal Revenue Code of 1986 (26 U.S.C. § 168(n)) on the qualified production property has not been recovered through the additional deductions provided by subsection (h).

Section 216.1.  Report to General Assembly.--(a)  No later than December 31, 2026, the Department of Revenue shall submit a report to the chairperson and minority chairperson of the Appropriations Committee of the Senate, the chairperson and minority chairperson of the Appropriations Committee of the House of Representatives, the chairperson and minority chairperson of the Finance Committee of the Senate and the chairperson and minority chairperson of the Finance Committee of the House of Representatives indicating the impact of decoupling from certain Federal tax changes made by the One Big Beautiful Bill Act (Public Law 119-21, 139 Stat. 72) on the corporate net income tax imposed under Article IV of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971."

(b)  The report required under subsection (a) shall include the following information:

(1)  The direct effect decoupling from certain tax provisions contained in the One Big Beautiful Bill Act had on tax revenues received from taxes imposed under Article IV of the "Tax Reform Code of 1971," for the taxable year beginning after December 31, 2024.

(2)  The estimated effect that conforming to the Federal tax provisions under section 216(a) would have on tax revenues received from the tax imposed under Article IV of the "Tax Reform Code of 1971." The estimated effect under this paragraph shall be determined for five fiscal years beginning with fiscal year 2027-2028.

(3)  The number of taxpayers that were impacted by decoupling from Federal tax provisions under section 216(a) for the taxable year beginning after December 31, 2024.

(4)  The estimated reduction in taxes collected under Article IV of the "Tax Reform Code of 1971," by fiscal year, resulting from the annual decrease in the rate of tax under section 402 of the "Tax Reform Code of 1971" and the increase in the allowable net operating loss deduction under section 401.1 of the "Tax Reform Code of 1971," in comparison to the corporate net income tax rate and net operating loss provisions in effect for the 2022 tax year.

(5)  The effect on tax collections of the annual rate reduction under section 402 of the "Tax Reform Code of 1971" and the increase in the allowable net operating loss deduction under section 401.1 of the "Tax Reform Code of 1971," in comparison to the fiscal impact of the decoupling provisions under section 216(a).

Section 217.  Interest Expense.--Notwithstanding section 401(3)1(a) of the act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971," for tax years beginning after December 31, 2024, taxable income as defined by section 401(3) of the "Tax Reform Code of 1971," shall be calculated as if section 163(j) of the Internal Revenue Code of 1986 (26 U.S.C. § 163(j)) applied as section 163(j) of the Internal Revenue Code of 1986 was in effect on December 31, 2024.

Section 4.  Section 201-D of the act is amended to read:

Section 201-D.  [Findings] Declaration of policy.

The General Assembly finds as follows:

(1)  A review by the commissioner of the number of policies written by the joint underwriting association shows that medical professional liability coverage is readily available in this Commonwealth and that the association should be modernized to achieve economy and administrative efficiency.

[(1)] (2)  As a result of a decline in the need in this Commonwealth for the medical professional liability insurance policies offered by the joint underwriting association under Subchapter B of Chapter 7 of the Mcare Act, and a decline in the nature and amounts of claims paid out by the joint underwriting association under the policies, the joint underwriting association has money in excess of the amount reasonably required to fulfill its statutory mandate.

[(2)] (3)  Funds under the control of the joint underwriting association consist of premiums paid on the policies issued under Subchapter B of Chapter 7 of the Mcare Act and income from investment. The funds do not belong to any of the members of the joint underwriting association nor any of the insureds covered by the policies issued.

[(3)] (4)  The joint underwriting association is an instrumentality of the Commonwealth. Money under the control of the joint underwriting association belongs to the Commonwealth.

[(4)  At a time when revenue receipts are down and the economy is still recovering] (5) In periods of economic uncertainty, the Commonwealth is in need of revenue from all possible sources in order to continue to balance its budget and provide for the health, welfare and safety of the residents of this Commonwealth.

[(5)] (6)  The payment of money to the Commonwealth required under this article is in the best interest of the residents of this Commonwealth.

Section 5.  The definition of "joint underwriting association" in section 202-D of the act is amended and the section is amended by adding definitions to read:

Section 202-D.  Definitions.

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

"Board."  The Joint Underwriting Association Board established under section 211-D(a).

* * *

"Health care provider."  As defined in section 702 of the Mcare Act.

"Insurance Department Act."  The act of May 17, 1921 (P.L.789, No.285), known as The Insurance Department Act of 1921.

"Joint underwriting association[.]" or "association."  The Pennsylvania Professional Liability Joint Underwriting Association established under section 731 of the Mcare Act.

* * *

"Plan."  A plan of operation submitted to and approved by the commissioner under section 731(b)(1) of the Mcare Act or under this article.

Section 6.  Section 207-D of the act is repealed:

[Section 207-D.  Sunset.

In the event the payment required under section 203-D is not made by December 1, 2017, the provisions of Subchapter C of Chapter 7 of the Mcare Act shall expire on December 1, 2017. In that event, the following shall apply:

(1)  The joint underwriting association shall be abolished and the money in the possession or control of the joint underwriting association shall be transferred to the commissioner who shall deposit it in a special account within the department to be used and administered by the department in the same manner as the joint underwriting association was authorized or required to use and administer it prior to the expiration of Subchapter C of Chapter 7 of the Mcare Act.

(2)  Notwithstanding paragraph (1), the commissioner shall transfer $200,000,000 of the money received under paragraph (1) to the State Treasurer for deposit into the General Fund as soon as practicable after receipt. Thereafter, the commissioner shall annually transfer from the special account established under paragraph (1) to the General Fund any money the commissioner determines is in excess of the money needed to administer the funds as required under Subchapter C of Chapter 7 of the Mcare Act.]

Section 7.  The act is amended by adding sections to read:

Section 208-D.  Risk-based capital certification.

(a)  Certification.--Beginning June 1, 2026, and each year thereafter, if the joint underwriting association's risk-based capital exceeds 1,000% as shown in the prior year's annual statement, the commissioner shall submit to the General Assembly a report that certifies the association's risk-based capital exceeds 1,000% and states the amount, if any, the commissioner determines is available for transfer to the General Fund. The certified amount may not:

(1)  jeopardize the joint underwriting association's solvency; and

(2)  be so great that, if transferred during the prior year, the joint underwriting association's risk-based capital would have fallen below 1,000%.

(b)  Effect.--Pursuant to a transfer authorized under section 209-D, the joint underwriting association shall transfer money not to exceed the amount identified in subsection (a), to the General Fund.

Section 209-D.  Fund transfers.

(a)  Immediate transfer.--Notwithstanding section 208-D, within 30 days after the effective date of this subsection, the joint underwriting association shall transfer $100,000,000 to the General Fund. The transfer under this subsection shall be in addition to the payment required under section 203-D.

(b)  Use of money.--Money deposited into the General Fund under subsection (a) shall be available for expenditures in accordance with appropriations by the General Assembly to the Department of Human Services for medical assistance payments for capitation plans.

(c)  Future transfers.--For fiscal years beginning on or after July 1, 2026, the following amounts, as certified available by the commissioner under section 208-D, shall be transferred from the joint underwriting association to the General Fund:

(1)  (Reserved).

(2)  (Reserved).

Section 210-D.  Association oversight and additional duties.

(a)  Oversight.--The joint underwriting association shall continue as an instrumentality of the Commonwealth and operate under the regulatory oversight of the department.

(b)  Additional duties.--In addition to the duties under Subchapter C of Chapter 7 of the Mcare Act, the joint underwriting association shall have the following duties:

(1)  Submit to the commissioner quarterly reports of premiums collected and claims paid for the preceding quarter.

(2)  Provide additional documents and information regarding the joint underwriting association's operations to the commissioner upon request.

(3)  Beginning January 1, 2026, and each year thereafter, submit a plan of operation to the commissioner for approval. The board may amend the plan, subject to the commissioner's approval, and the plan may not contain provisions inconsistent with this article. Except for the plan due January 1, 2026, the joint underwriting association may submit an affidavit attesting that the approved plan is unchanged.

(c)  Claims.--No member of the joint underwriting association or health care provider insured by a policy issued by the association has a claim against the association's current or future funds, profits, investments or losses, including upon dissolution.

Section 211-D.  Joint Underwriting Association Board.

(a)  Establishment and purpose.--The Joint Underwriting Association Board is established. The board shall govern the operations of the joint underwriting association and shall consist of the following members:

(1)  Three members appointed by the Governor with experience in insurance and medical professional liability.

(2)  One member appointed by each of the following:

(i)  The President pro tempore of the Senate.

(ii)  The Minority Leader of the Senate.

(iii)  The Speaker of the House of Representatives.

(iv)  The Minority Leader of the House of Representatives.

(b)  Chair.--The Governor shall designate the chair from among the members.

(c)  Terms and vacancies.--Members shall serve at the will of the appointing authority for a term of four years or until a successor is appointed and qualified. A vacancy shall be filled by the same appointing authority.

(d)  Quorum and action.--A majority of the members shall constitute a quorum. Board action shall require an affirmative vote of a majority of the members present.

(e)  Compensation.--Members shall serve without compensation but are entitled to reimbursement of expenses in accordance with the policies that govern reimbursement to Commonwealth executive agency personnel.

(f)  Staff.--The board may appoint an executive director and technical, professional and administrative staff responsible for day-to-day operations, who shall serve at the pleasure of the board. The following shall apply:

(1)  Salaries and benefits of employees of the board shall be set by the board.

(2)  Employees, including the executive director, shall not be public employees for purposes of the act of July 23, 1970 (P.L.563, No.195), known as the Public Employe Relations Act.

(3)  Employees, including the executive director, shall not be State employees for purposes of 71 Pa.C.S. Pt. XXV (relating to retirement for State employees and officers).

(g)  Powers and duties.--The board shall administer the plan of operation, set policy and exercise all reasonable and necessary powers relating to the operation of the joint underwriting association, including all of the following:

(1)  Adopt bylaws and guidelines.

(2)  Appoint committees and retain experts, advisors, consultants and agents as needed.

(3)  Enter into agreements and contracts necessary for administration of the plan consistent with this act and the applicable provisions of the Mcare Act.

(4)  Develop rates, rating plans, rating and underwriting rules and standards, rate classifications, rate territories, policy forms and riders in accordance with applicable Federal and State law and subject to approval under sections 712(f) and 731(b)(2) and (4) of the Mcare Act.

(5)  Invest, borrow and disburse funds, budget expenses, levy assessments, receive contributions, reinsure liabilities of the joint underwriting association and perform other duties necessary or incidental to proper administration of the plan.

(6)  If the board determines it is in the best interest of policyholders and the Commonwealth, and subject to the commissioner's approval, place a portion of the joint underwriting association's funds in a restricted receipt account in the State Treasury. The State Treasurer shall establish the restricted receipt account at the board's request.

(7)  Authorize the executive director to participate in scheduling conferences and other provisions of Article IX of The Insurance Department Act on behalf of the board.

Section 212-D.  Board meetings.

The board shall hold quarterly public meetings in accordance with 65 Pa.C.S. Ch. 7 (relating to open meetings) to discuss the actuarial and fiscal status of the joint underwriting association.

Section 213-D.  Construction.

The joint underwriting association shall be considered an independent agency of the Commonwealth for purposes of all of the following:

(1)  The act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act.

(2)  The act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

(3)  The act of June 30, 2011 (P.L.81, No.18), known as the Pennsylvania Web Accountability and Transparency (PennWATCH) Act.

(4)  62 Pa.C.S. Pt. I (relating to Commonwealth Procurement Code).

Section 214-D.  Dissolution.

The joint underwriting association may be dissolved only by act of the General Assembly.

Section 215-D.  Appropriations.

The operating costs of the joint underwriting association shall be paid from money appropriated by the General Assembly. Nothing in this section shall be construed to require an appropriation for the payment of claims under a policy written by the joint underwriting association.

Section 216-D.  Reports and hearings.

(a)  Budget estimates.--The joint underwriting association shall submit written estimates to the Secretary of the Budget as required for administrative departments, boards and commissions under section 615 of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929. Estimates shall be submitted as requested by the Governor, but no less than once each fiscal year.

(b)  Testimony.--

(1)  An agent of the joint underwriting association shall, upon request, appear at a public hearing of the Banking and Insurance Committee of the Senate and the Insurance Committee of the House of Representatives to testify regarding an estimate submitted under subsection (a).

(2)  An agent of the joint underwriting association shall, upon request, appear annually before the Appropriations Committee of the Senate and the Appropriations Committee of the House of Representatives to testify regarding the fiscal status of the association and to present any requests for appropriations.

Section 7.1.  Section 203-G of the act, added July 11, 2024 (P.L.550, No.54), is amended to read:

Section 203-G.  Exchange Affordability Assistance Account.

A restricted account is established in the State Treasury to be known as the Exchange Affordability Assistance Account. Money in the account shall include any of the following:

[(1)  Money received as part of a disbursement from the Joint Underwriters Association shall be deposited into the account to be used by the exchange in accordance with section 202-G.]

(2)  Money appropriated by the General Assembly.

[(3)  Up to $50,000,000 may be used each year for the program from funds received under paragraph (1).]

Section 8.  The act is amended by adding an article to read:

ARTICLE II-H

RURAL HEALTH TRANSFORMATION PROGRAM

Section 201-H.  Definitions.

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

"Department."  The Department of Human Services of the Commonwealth.

"Health care provider."  As defined in 42 U.S.C. § 1397ee(h) (9) (relating to payments to states).

"Program."  The Rural Health Transformation Program established under section 202-H.

"Qualified entity."  A hospital, health care provider, rural health facility, government agency, including the Rural Health Redesign Center Authority, community partner or other person that demonstrates its ability to administer a component of the department's Federally-approved application under 42 U.S.C. § 1397ee (relating to payments to states).

"Rural health facility."  As defined in 42 U.S.C. § 1397ee(h)(3)(D).

Section 202-H.  Rural Health Transformation Program.

The Rural Health Transformation Program is established within the department to distribute funding and implement a rural health transformation plan for health-related activities under 42 U.S.C. § 1397ee(h) (relating to payments to states) in accordance with the department's federally approved application. The department shall administer the program to the extent Federal funds are appropriated to, and received by, the department.

Section 203-H.  Powers and duties.

The department shall have the following powers and duties:

(1)  The department shall allocate and distribute program funding to a qualified entity through a contract, grant agreement, program payment, recruitment or retention payment or other funding mechanism via a request for funding, in a form and manner as prescribed by the department. A qualified entity shall use program funding distributed under this section in accordance with Federal and State law and the department's federally approved application.

(2)  The department may monitor, inspect and audit the records of a qualified entity and withhold, recover or reduce funding for a program violation.

(3)  The department shall prepare and submit an annual report 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. The report shall include:

(i)  The total amount of funds expended for the year.

(ii)  The total amount of funds expended since the program began.

(iii)  The amount of funding remaining.

(iv)  The total number of qualified entities receiving program funding.

(v)  Details of the program activities completed during the fiscal year.

Section 204-H.  Restricted account.

(a)  Establishment.--The Rural Health Transformation Program Restricted Account is established as a restricted account within the General Fund.

(b)  Deposits.--All money received from the Federal Government for the program, along with any other money appropriated by the General Assembly for the program, shall be deposited into the Rural Health Transformation Program Restricted Account.

(c)  Appropriation.--Money in the Rural Health Transformation Program Restricted Account is appropriated on a continuing basis to the department for use in accordance with subsection (d).

(d)  Use.--The department may use money in the Rural Health Transformation Program Restricted Account for the operation, and other administrative expenses, of the program in accordance with applicable Federal law and the department's federally approved application.

Section 9.  The act is amended by adding a section to read:

Section 313.  Waiver of Interest, Costs and Fees.--(a)  For fiscal year 2025-2026, the State Treasurer may waive or otherwise forgo, in the State Treasurer's sole discretion, the collection of any interest, costs or fees associated with an investment loan issued during a budget impasse pursuant to section 301.1 to any of the following:

(1)  The governing body of a county.

(2)  A domestic violence entity that receives a direct grant from the Department of Human Services from the appropriation for domestic violence programs.

(3)  A Head Start agency.

(4)  A rape crisis entity that receives a direct grant from the Department of Human Services from the appropriation for rape crisis programs.

(5)  An approved provider under the Pennsylvania Pre-K Counts Program that receives a direct grant from the Department of Education from the appropriation for the Pre-K Counts Program.

(b)  The State Treasurer's exercise of the waiver authority under this section shall not be deemed a violation of or otherwise inconsistent with the State Treasurer's fiduciary investment standard under section 301.1(h) and (i).

(c)  Beginning in fiscal year 2026-2027, the State Treasurer's authority to invest money pursuant to section 301.1 may not be construed to authorize the issuance of a loan to an entity impacted by a Commonwealth budget impasse for the purpose of replacing anticipated Commonwealth appropriations. A loan issued in violation of this subsection shall be deemed a violation and otherwise inconsistent with the State Treasurer's fiduciary investment standard under section 301.1(h) and (i).

Section 10.  Section 1508 of the act is amended to read:

Section 1508.  Use and Appropriation of Unused Commonwealth Funds.--(a)  Whenever the Governor has declared a disaster emergency, the Governor may transfer any unused funds which may have been appropriated for the ordinary expenses of the State government in the General Fund to such Commonwealth agencies as the Governor may direct to be expended for relief of disaster in such manner as the Governor shall approve, and the funds are hereby appropriated to the Governor for such purposes. The total of the transfers under this subsection shall not exceed [twenty million dollars ($20,000,000)] forty million dollars ($40,000,000) in any one fiscal year except by action of the General Assembly.

(b)  Whenever the Governor shall have proclaimed a disaster emergency [under 35 Pa.C.S. § 7301(c) (relating to general authority of Governor)] in accordance with section 20 of Article IV of the Constitution of Pennsylvania, the Governor shall have power to transfer any unused funds which may have been appropriated for the ordinary expenses of government in the General Fund to such Commonwealth agencies as he may direct to be expended for reimbursements as provided in 35 Pa.C.S. § 7705(a) and (b) (relating to special powers of local agencies). Such reimbursements shall be made in accordance with and to the extent permitted by regulations issued by such agency or agencies as the Governor may designate to administer the reimbursement programs established by 35 Pa.C.S. § 7705(a) and (b). The total of such transfers shall never exceed five million dollars ($5,000,000) in any one fiscal year except by action of the General Assembly.

(c)  Subject to subsection (d), if the funds available to the Department of Agriculture for the purposes under paragraphs (1) and (2) which have been expended or committed is less than $25,000,000, the Secretary of the Budget may transfer any unused funds which have been appropriated for the ordinary expenses of State government in the General Fund and reauthorize the funds for use by the Department of Agriculture. Funds reauthorized under this subsection are hereby appropriated to the Department of Agriculture for the following purposes related to preparing for and responding to an outbreak of highly pathogenic avian influenza:

(1)  Providing grants to offset income losses and cover costs associated with any of the following:

(i)  Workforce payroll and benefits.

(ii)  Mortgage interest and rent payments.

(iii)  Utility expenses.

(iv)  Delays in repopulating or reopening facilities.

(v)  Other losses or costs related to response efforts that are not otherwise eligible for or covered by Federal funding, insurance, contracts or other funding sources.

(2)  Establishing and operating a highly pathogenic avian influenza rapid response team.

(d)  In any one fiscal year, the total of the transfers under subsection (c) shall not exceed twenty-five million dollars ($25,000,000), and the amount utilized for purposes under subsection (c)(2) shall not exceed two million dollars ($2,000,000).

Section 11.  Section 1601.2-E(e)(1)(ii) of the act, amended July 11, 2024 (P.L.550, No.54), is amended to read:

Section 1601.2-E.  Oil and Gas Lease Fund.

* * *

(e)  Annual transfers.--The following apply:

(1)  * * *

(ii)  No amount shall be transferred from the fund to the Marcellus Legacy Fund for distribution to the Environmental Stewardship Fund for the 2019-2020, 2020-2021, 2021-2022, 2022-2023, 2023-2024 [and], 2024-2025 and 2025-2026 fiscal year.

* * *

Section 12.  The act is amended by adding articles to read:

ARTICLE XVI-Q.1

ADVANCED AIR MOBILITY SITES

Section 1601-Q.1.  Definitions.

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

"Advanced air mobility site."  A location authorized by the department for the testing, integration or demonstration of advanced air mobility systems.

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

"Supporting airport."  An airport, as defined in 74 Pa.C.S. § 5102 (relating to definitions), that provides facilities, services or airspace coordination for an advanced air mobility site.

Section 1602-Q.1.  Advanced air mobility sites.

(a)  Authorization.--The department shall authorize up to five advanced air mobility sites within this Commonwealth.

(b)  County of the fourth class.--No later than 90 days after the effective date of this subsection, the department shall authorize an advanced air mobility site in a county of the fourth class with a population between 133,000 and 134,000 under the most recent Federal decennial census.

(c)  Supporting airport requirement.--The department shall ensure that each advanced air mobility site has at least one supporting airport.

ARTICLE XVI-Q.2

PUBLIC TRANSPORTATION VEHICLES

Section 1601-Q.2.  Illuminated signs.

(a)  Permission.--A public transportation vehicle may carry on the rear or side of the vehicle illuminated signs, or surfaces designed to be illuminated signs, placed so as not to interfere with the vision of the driver through the rear window, if any, of the vehicle. Illuminated signs, or surfaces designed to be illuminated signs, shall be of a size and type designed not to interfere with or unduly distract drivers of other vehicles on the highway. The sign or surface shall include features that enhance road safety, including enhanced turn signals and brake lights, by connecting the sign or surface to a vehicle operation indicator. The sign or surface shall be able to communicate with the public through real-time, geofenced and global positioning system enabled technology by providing information and advertising to the public, including public service announcements and emergency alerts. The size and placement of the sign or surface must receive approval of the department or be a type approved by the department prior to use on the vehicle.

(b)  Regulations.--The department may within 180 days of the effective date of this subsection issue technical guidelines and promulgate regulations for the certification and use of illuminated signs.

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

"Public transportation vehicle."  A vehicle used for the purpose of public passenger transportation or a transportation system under 74 Pa.C.S. Chs. 15 (relating to sustainable mobility options) and 17 (relating to metropolitan transportation authorities) and operated by, or under an agreement with, a public entity, including an airport, port authority, public transit agency, State-owned institution or State-related institution or another Federal, State, county or local government entity or agency. The term includes a bus, light rail or train. The term does not include a school bus or vehicle used for charter or sightseeing services.

Section 13.  Section 1603-T(b)(5) of the act is amended to read:

Section 1603-T.  Resident care and related costs.

* * *

(b)  Penalty.--

* * *

(5)  Paragraph (4) shall expire December 31, [2025] 2026.

* * *

Section 14.  The act is amended by adding a section to read:

Section 1603-U.  Home improvement contractor registration fee.

Notwithstanding section 5(a) of the act of October 17, 2008 (P.L.1645, No.132), known as the Home Improvement Consumer Protection Act, the fee for an application for a certificate for a home improvement contractor or renewal of that certificate under section 5(a) of the Home Improvement Consumer Protection Act shall be $100. This section shall not apply on or after December 31, 2027.

Section 15.  The act is amended by adding articles to read:

ARTICLE XVI-V.1

RARE DISEASE ADVISORY COUNCIL

Section 1601-V.1.  Scope of article.

This article relates to the Rare Disease Advisory Council.

Section 1602-V.1.  Definitions.

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

"Advisory council."  The Rare Disease Advisory Council established in section 1603-V.1.

"Department."  The Department of Health of the Commonwealth.

"Rare disease."  A disease or condition that affects fewer than 200,000 individuals living in the United States.

"Secretary."  The Secretary of Health of the Commonwealth.

Section 1603-V.1.  Establishment and membership.

(a)  Establishment.--The Rare Disease Advisory Council is established.

(b)  Members.--The advisory council shall consist of the following members:

(1)  The secretary or a designee authorized to act on behalf of the secretary.

(2)  The heads of State agencies that may be concerned with the provision of care to persons with rare diseases or designees authorized to act on behalf of the agency heads. At a minimum, members under this paragraph shall include the Secretary of Human Services and the Secretary of Education or their respective designees.

(3)  The Insurance Commissioner or a designee authorized to act on behalf of the Insurance Commissioner.

(4)  Public members to be appointed by the secretary, who shall include:

(i)  Three physicians licensed to practice in this Commonwealth who have expertise in the diagnosis and management of patients with rare diseases, one of whom shall be a pediatrician who provides care to children with rare diseases.

(ii)  Two registered professional nurses or nurse practitioners licensed in this Commonwealth who have expertise in providing care to patients with rare diseases.

(iii)  An epidemiologist licensed in this Commonwealth who has expertise in the incidence, prevalence and control of rare diseases.

(iv)  Two representatives of hospitals in this Commonwealth, one of which must be a research hospital.

(v)  Two representatives of the health insurance industry.

(vi)  Two representatives involved in the biopharmaceutical industry.

(vii)  Two representatives of the scientific community who are engaged in rare disease research.

(viii)  Two parents, each of whom has a child with a rare disease, not of the same family.

(ix)  Two individuals with rare diseases.

(x)  Representatives of two rare disease-specific patient organizations that operate within this Commonwealth.

(5)  An individual appointed by the Majority Leader of the Senate.

(6)  An individual appointed by the Minority Leader of the Senate.

(7)  An individual appointed by the Majority Leader of the House of Representatives.

(8)  An individual appointed by the Minority Leader of the House of Representatives.

(c)  Additional members.--The advisory council may at any time advise the department on additional at-large appointments to the advisory council that may be necessary to carry out its duties. At-large appointees to the advisory council may serve on an ad hoc basis.

(d)  Vacancies.--Vacancies in the membership of the advisory council shall be filled in the same manner as provided for the original appointments.

(e)  Appointment of public members and chairperson.--The secretary shall appoint the public members of the advisory council and a chairperson of the advisory council within 60 days of the effective date of this subsection.

(f)  Compensation.--The public members of the advisory council shall serve without compensation but may be reimbursed for travel and other miscellaneous expenses necessary to perform their duties within the limits of funds made available to the advisory council for its purposes. Reimbursement for expenses incurred by public members of the advisory council shall be provided by the department according to standard criteria currently in existence.

(g)  Meetings.--The advisory council shall meet periodically, at a minimum of three times each year. A member may participate in a meeting by teleconference. The initial meeting of the advisory council shall be held within 90 days of the effective date of this subsection.

(h)  Assistance of other government agencies.--The advisory council shall be entitled to call to its assistance and avail itself of the services of the employees of any State or local government agency as it may require and as may be available to it for its purposes.

(i)  Staff.--The department may provide staff services to the advisory council, including providing a secretary to the advisory council.

Section 1604-V.1.  Purpose and duties.

(a)  Purpose.--The purpose of the advisory council is to:

(1)  Coordinate Statewide efforts for the study of the incidence and prevalence of rare diseases within this Commonwealth and the status of the rare disease community.

(2)  Act as the advisory body on rare diseases to the General Assembly and to all relevant State and private agencies that provide services to, or are charged with the care of, individuals with rare diseases.

(3)  Coordinate the performance of the advisory council's duties with those of other rare disease advisory bodies and community-based organizations and other public and private organizations within this Commonwealth for the purpose of ensuring greater cooperation between the entities within this Commonwealth and Federal agencies regarding the research, diagnosis and treatment of rare diseases. For purposes of this paragraph, Federal agencies may include, but are not limited to, the National Institutes of Health and the Food and Drug Administration. The coordination shall require, when appropriate:

(i)  Disseminating the outcomes of the advisory council's research, identified best practices and policy recommendations.

(ii)  Utilizing common research collection and dissemination procedures.

(b)  Duties.--The duties of the advisory council are to:

(1)  Research and determine the most appropriate method to collect rare disease data and information concerning individuals with rare diseases, as the advisory council deems necessary and appropriate to conduct comprehensive surveys of rare diseases diagnosed in this Commonwealth, subject to all applicable privacy laws and protections.

(2)  Ensure that the duties described in subsection (a)(1) are carried out in a manner that is coordinated and interoperable with other similar research being conducted at the Federal and State level.

(3)  Research and identify priorities relating to the quality and cost effectiveness of and access to treatment and other services provided to individuals with rare diseases in this Commonwealth and develop policy recommendations on those issues.

(4)  Identify best practices in other states and at the national level for rare disease management, monitoring and surveillance, education, detection, diagnosis, information and care to improve these functions and capabilities relative to rare diseases within this Commonwealth.

(5)  Develop effective strategies to raise public awareness of rare diseases within this Commonwealth.

(6)  Coordinate the development of a task force, comprised of members of the advisory council and other individuals as may be necessary and appropriate to facilitate the development and publication of the report specified in section 1606-V.1(b).

(c)  Construction.--Nothing in this article shall be construed to prohibit the advisory council from issuing interim reports or taking interim actions should these seem appropriate.

Section 1605-V.1.  Funding.

(a)  Report to General Assembly.--Prior to appointing members of the advisory council, the department shall research and report to the General Assembly within 30 days of the effective date of this subsection existing sources of funding that may be used to finance the formation and operation of the advisory council.

(b)  Grant and other funding.--The advisory council shall apply for, and is authorized to accept, a grant of money from the Federal Government, a private foundation or any other source which may be available for programs related to rare diseases.

Section 1606-V.1.  Reports.

(a)  Preliminary report.--Within 12 months of the effective date of this subsection, the advisory council shall deliver to the Health and Human Services Committee of the Senate and the Health Committee of the House of Representatives a preliminary report on the work of the advisory council. The report shall be made available to the public. The report shall include a summary of the accomplishments of the advisory council since its formation and the status of its work in preparation of the report required under subsection (b).

(b)  Report.--Within two years of the effective date of this subsection, the advisory council shall deliver to the Health and Human Services Committee of the Senate and the Health Committee of the House of Representatives a comprehensive report. The report shall be made available to the public. The report shall include the following:

(1)  The incidence and prevalence of rare diseases within this Commonwealth.

(2)  The needs of the rare disease community within this Commonwealth and the actions necessary and feasible to address those needs.

(c)  Biennial reports.--The advisory council shall report biennially to the department, the Health and Human Services Committee of the Senate and the Health Committee of the House of Representatives on the activities of the advisory council and its findings and recommendations on issues relating to the management, monitoring and surveillance, education, detection, diagnosis, information and care regarding rare diseases in this Commonwealth, including the quality and cost effectiveness of care, access to treatment and other relevant services for individuals affected by rare diseases.

Section 1607-V.1.  Expiration.

This article shall expire July 1, 2028.

ARTICLE XVI-W.1

AFFORDABLE HOUSING TAX CREDIT

Section 1601-W.1.  Scope of article.

This article establishes the affordable housing tax credit, the Affordable Housing Tax Credit Program and the Affordable Housing Tax Credit Program Fund.

Section 1602-W.1.  Purpose.

The Affordable Housing Tax Credit Program is established to encourage the development, rehabilitation and preservation of qualified low-income housing projects in this Commonwealth.

Section 1603-W.1.  Definitions.

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

"Agency."  The Pennsylvania Housing Finance Agency.

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

"Eligible project."  A building or buildings to be constructed, rehabilitated or preserved in a qualified low-income housing project.

"Federal housing tax credit."  The Federal tax credit created under section 42 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 42).

"Fund."  The Affordable Housing Tax Credit Program Fund established under section 1606-W.1.

"Pass-through entity."  Any of the following:

(1)  A partnership as defined in section 301(n.0) of the Tax Reform Code.

(2)  A Pennsylvania S corporation as defined in section 301(n.1) of the Tax Reform Code.

(3)  An unincorporated entity subject to section 307.21 of the Tax Reform Code.

"Program."  The Affordable Housing Tax Credit Program established under section 1604-W.1.

"Qualified low-income housing project."  The term shall have the same meaning as provided under section 42(g)(1) of the Internal Revenue Code of 1986.

"Qualified tax liability."  The tax liability imposed on a taxpayer under Article III, IV, VI, VII, VIII, IX, XI or XV of the Tax Reform Code, excluding any tax withheld by an employer under Article III of the Tax Reform Code.

"Qualified taxpayer."  Any natural person, business firm, corporation, business trust, limited liability company, partnership, limited liability partnership, association or any other form of legal business entity that:

(1)  is subject to a tax imposed under Article III, IV, VI, VII, VIII, IX, XI or XV of the Tax Reform Code, excluding any tax withheld by an employer under Article III of the Tax Reform Code; and

(2)  meets the criteria provided in guidelines established by the agency.

"Tax credit."  The affordable housing tax credit established under this article.

"Tax credit certificates."  The document provided by the agency to the qualified taxpayer evidencing the allocation of tax credits under section 1607-W.1.

"Tax Reform Code."  The act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

Section 1604-W.1.  Affordable Housing Tax Credit Program.

(a)  Establishment.--The Affordable Housing Tax Credit Program is established as a program of the agency.

(b)  Administration.--The program shall be administered by the agency in accordance with section 1605-W.1 and with guidelines adopted and promulgated under this article.

Section 1605-W.1.  Program administration.

(a)  Authorization.--The agency is authorized to perform all necessary and convenient actions to implement the program.

(b)  Application.--Qualified taxpayers may apply to the agency for program funding for an eligible project. The agency shall promulgate guidelines for applying for program funding under this section.

(c)  Selection.--The agency shall review applications submitted for program funds and, in accordance with the procedures established in the agency guidelines, shall select and conditionally commit program funds to the eligible projects. Qualified taxpayers shall provide the agency with all program requirements necessary for closing and funding of the eligible project in a form and a timely manner as determined by the agency.

(d)  Disbursement.--Funds shall be disbursed to the eligible project owner as determined by the agency.

(e)  Monitoring and cost certification.--The agency shall establish procedures for the monitoring of the use of funds and for a cost certification process at the end of the construction or rehabilitation process.

(f)  Agency guidelines.--Within 180 days of the effective date of this subsection, the agency shall perform the following:

(1)  Adopt guidelines establishing the agency's priorities.

(2)  Establish a method for:

(i)  applying and distributing program funds;

(ii)  the sale of the tax credits under section 1607-W.1;

(iii)  achieving geographic diversity in the allocation of credits under this article; and

(iv)  prioritizing projects that include at least 10% of units as affordable to individuals at not more than 30% of the median income for the area that includes the project.

(g)  Notice and comment.--The agency shall transmit proposed guidelines, including a comment response document, to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin and shall publish the guidelines and comment response document on the agency's publicly accessible Internet website for public comments no later than 45 days prior to adoption. All comments submitted to the agency in writing shall be public records and shall be incorporated into the comment response document.

(h)  Report.--Within 90 days following the close of the first calendar year in which tax credits are made available, and by July 1 of each year thereafter, the agency, in consultation with the department, shall issue a report containing:

(1)  A financial statement.

(2)  An itemized list of the following:

(i)  projects funded;

(ii)  qualified taxpayers applying for tax credits; and

(iii)  tax credit certificates issued.

(3)  A description of other expenditures in the preceding calendar year.

(i)  Submission of report.--The report under subsection (h) shall constitute a public record and shall be published on the agency's publicly accessible Internet website and submitted to the following:

(1)  The Governor.

(2)  The Auditor General.

(3)  The chairperson and minority chairperson of the Urban Affairs and Housing Committee of the Senate.

(4)  The chairperson and minority chairperson of the Housing and Community Development Committee of the House of Representatives.

Section 1606-W.1.  Affordable Housing Tax Credit Program Fund.

(a)  Establishment.--The Affordable Housing Tax Credit Program Fund is established as a separate account within the agency for the sole purpose of implementing the provisions of this article.

(b)  Prohibition.--No other agency funds, money or interest earnings shall be utilized for purposes of this article.

(c)  Deposit.--All money allocated or appropriated to the program shall be deposited into the fund and shall be appropriated to the agency on a continuing basis to carry out the provisions of this article.

(d)  Funds.--The fund shall include money and proceeds generated through the sale and allocation of tax credits, capital investments, penalties, fees and costs, interest and earnings under this article as well as grants or donations from other sources and any funds that may be appropriated for these purposes by the General Assembly under this article. Interest and any other earnings shall remain in the fund.

(e)  Use of money.--The agency may use any available money in the fund for administrative costs and for purposes consistent with this article.

Section 1607-W.1.  Affordable housing tax credits.

(a)  Tax credit authority.--For purposes, and in accordance with the provisions of this article, the agency may allocate an amount not to exceed $10,000,000 in each fiscal year in tax credits and is directed to deposit proceeds and earnings derived from the sale into the fund.

(b)  Establishment and authorization.--The agency shall have the authority to perform actions necessary or convenient to establish protocols and procedures to sell and distribute tax credits, directly or indirectly, to achieve the purposes of the program.

(c)  Limitations.--A qualified taxpayer may only purchase tax credits from the agency, which may only be applied against the qualified taxpayer's qualified tax liability in accordance with this article.

(d)  Sale procedures.--Tax credits may be offered by the agency through direct or negotiated sale to qualified taxpayers.

(e)  Procedures.--The agency shall adopt procedures and application criteria that shall be designed to deliver the tax credits in the manner deemed most appropriate to maximize the highest yield to the Commonwealth, to achieve a timely and equitable execution of the delivery of tax credits and to achieve the goals and purposes of the program. Procedures for the sale and application criteria proposed by the agency shall be made available for public comment in a manner consistent with section 1605-W.1.

(f)  Application.--A qualified taxpayer seeking to purchase tax credits may apply to the agency in the manner prescribed by the agency as specified in the guidelines adopted under this article. The agency may require applicants to provide evidence of the taxpayer's qualifications.

Section 1608-W.1.  Payment for tax credits.

(a)  Payment of capital.--Capital committed by a qualified taxpayer shall be paid to the agency for deposit into the fund. The agency may establish an installment payment schedule for payments to be made by the qualified taxpayer in accordance with guidelines established by the agency.

(b)  Issuance of tax credit certificates.--Beginning July 1, 2025, the agency shall issue to each qualified taxpayer a tax credit certificate upon receipt of payment of capital.

(c)  Certificate form.--The agency shall issue tax credit certificates to qualified taxpayers in a form determined by the agency in consultation with the department.

(d)  Contents.--The tax credit certificate shall contain all of the following:

(1)  The total amount of tax credits that a qualified taxpayer may claim.

(2)  The amount of capital that the qualified taxpayer has contributed or agreed to contribute to return for the issuance of the tax credit certificate.

(3)  The possible penalties or other remedies for noncompliance.

(4)  The requirements for transferring the tax credits to other qualified taxpayers.

(5)  Limitations and procedures for carryover of the tax credit.

(6)  Reporting requirements.

(7)  Any other requirements or content the agency, in consultation with the department, considers appropriate.

Section 1609-W.1.  Failure to make contribution of capital and reallocation.

(a)  Prohibition.--A tax credit certificate under section 1608-W.1 may not be issued to a qualified taxpayer who fails to comply with agency guidelines.

(b)  Penalty.--After the agency issues a tax credit certificate, a qualified taxpayer who fails to contribute capital in accordance with the agreed upon schedule of payments, or other conditions as determined by the agency, shall be subject to a penalty equal to 10% of the amount of capital that remains unpaid and assessment of costs and fees by the agency. The penalty shall be paid to the agency within 30 days after demand. A qualified taxpayer who fails to make a contribution within the specified time period may be subject to Commonwealth debarment, forfeiture or liquidation of any pledged collateral or to such other actions as deemed appropriate by the agency. All penalties, fees and costs shall be deposited into the fund to be used for the program.

(c)  Reallocation.--The agency may, under guidelines promulgated by the agency, recapture and redeploy any defaulted capital. The agency shall make the credit available to other qualified taxpayers with minimal delay and cost to the program.

(d)  Avoidance of penalty.--The agency may allow a qualified taxpayer that fails to make a contribution of capital within the time specified to avoid a penalty by transferring the allocation of tax credits to another qualified taxpayer within 30 days after the due date of the defaulted installment. Any transferee of an allocation of tax credits of a defaulting qualified taxpayer under this subsection shall be subject to all requirements of the agency and must agree to make the required contribution of capital within 30 days after the date of the transfer.

Section 1610-W.1.  Claiming the tax credit.

(a)  Claiming tax credit.--Upon presenting a tax credit certificate issued and verified by the agency to the department, the qualified taxpayer may claim a tax credit against the qualified tax liability of the qualified taxpayer.

(b)  Time period.--Presentation must be made no later than the last day of the second calendar month of the calendar year in which the tax credit is available. No tax credit shall be provided unless the qualified taxpayer provides presentation to both the agency and to the department.

Section 1611-W.1.  Carryover, carry back and assignment of tax credit.

(a)  Guidelines required.--The agency, in consultation with the department, shall establish guidelines that include procedures for the carryover, assignment and transfer of tax credits and reports on utilization.

(b)  Carryover.--If a qualified taxpayer cannot use the entire amount of the tax credit for the taxable year in which the tax credit is first approved, the excess credit may be carried over to subsequent taxable years and used as a credit against the qualified tax liability of the qualified taxpayer for those taxable years. Each time the tax credit is carried over to a succeeding taxable year, it shall be reduced by the amount that was used as a credit during the immediately preceding taxable year. In no event shall tax credits provided by this article be carried over and applied to succeeding taxable years more than seven taxable years following the first taxable year for which the qualified taxpayer was entitled to claim the tax credit.

(c)  Application.--A tax credit received by the department in a taxable year shall first be applied against the qualified taxpayer's qualified tax liability for the current taxable year as of the date on which the tax credit was issued before any carried over tax credits can be applied against any qualified tax liability.

(d)  No carry back or refund.--A qualified taxpayer may not carry back or obtain a refund of all or any portion of an unused tax credit granted to the qualified taxpayer under this article.

(e)  Sale or assignment.--A qualified taxpayer, upon application and approval by the agency and in conformance with the agency's guidelines, may sell or assign, in whole or in part, a tax credit granted to the qualified taxpayer under this article.

(f)  Purchasers and assignees.--The purchaser or assignee of all or a portion of a tax credit obtained under subsection (e) must be a qualified taxpayer and must immediately claim the credit in the taxable year in which the purchase or assignment is made. The purchaser or assignee may not carry over, carry back or obtain a refund or otherwise sell or assign the tax credit. The purchaser or assignee shall notify the agency of the utilization of the tax credit in compliance with procedures specified by the agency.

(g)  Pass-through entity distributions.--

(1)  A pass-through entity may elect, in writing, according to procedures established by the agency, to transfer all or a portion of unused tax credits to shareholders, members or partners in proportion to the share of the entity's distributive income to which the shareholder, member or partner is entitled.

(2)  A pass-through entity and a shareholder, member or partner of a pass-through entity shall not claim the credit under paragraph (1) for the same qualified expenditures.

(3)  A shareholder, member or partner of a pass-through entity to whom a credit is transferred under paragraph (1) must claim the credit in the taxable year in which the transfer is made. The shareholder, member or partner may not carry over, carry back, obtain a refund of or sell or assign the credit.

ARTICLE XVI-W.2

WORKING PENNSYLVANIANS TAX CREDIT

Section 1601-W.2.  Scope of article.

This article relates to the working Pennsylvanians tax credit.

Section 1602-W.2.  Definitions.

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

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

"Federal earned income tax credit."  The earned income tax credit provided under 26 U.S.C. § 32 (relating to earned income).

"Qualified taxpayer."  A taxpayer eligible to receive a tax credit under section 1604-W.2.

"Tax credit."  The working Pennsylvanians tax credit provided under this article.

"Tax liability."  Tax liability under Article III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

"Taxpayer."  An individual subject to the tax under Article III of the Tax Reform Code of 1971.

Section 1603-W.2.  Working Pennsylvanians tax credit.

(a)  Application of tax credit.--A qualified taxpayer may apply the tax credit against the qualified taxpayer's tax liability.

(b)  Spouses who file separately.--In the case of spouses who are both eligible to receive the tax credit and who file a joint Federal tax return but who elect to determine their taxes separately, the tax credit may only be used by the spouse with the greater tax otherwise due, computed without regard to the tax credit.

(c)  Amount of tax credit.--The tax credit shall be equal to 10% of the Federal earned income tax credit received by the taxpayer for the same taxable year.

(d)  Credit refundable.--If the amount of credit which the qualified taxpayer is eligible to receive under this section exceeds the qualified taxpayer's tax liability, the department shall refund the excess amount to the qualified taxpayer.

(e)  Claim of tax credit.--A qualified taxpayer shall claim a tax credit under this section on a return filed under section 330 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

(f)  Administration of tax credit.--The administration of the tax credit under this article shall be subject to Article XVII-A.1 of the Tax Reform Code of 1971.

Section 1604-W.2.  Eligibility.

A taxpayer is eligible to receive a tax credit if the taxpayer claimed the Federal earned income tax credit during the same taxable year.

Section 1605-W.2.  Regulations.

(a)  Rules and regulations.--The department may promulgate rules and regulations to administer and enforce this article.

(b)  Guidelines.--The department may develop written guidelines for the implementation of this article. The guidelines shall be in effect until the department promulgates rules and regulations for the implementation of the provisions of this article.

Section 1606-W.2.  Applicability.

This article shall apply to taxable years beginning after December 31, 2024.

Section 16.  The act is amended by adding a section to read:

Section 1612-X.  Additional keystone opportunity expansion zones for certain counties of the fourth class.

(a)  Establishment.--In addition to any designations under this article, Article XIX-D of the Tax Reform Code of 1971 or the KOZ Act, the department may designate one additional keystone opportunity expansion zone that includes an area in a county that has a population of at least 130,000 but less than 135,000 based on the 2020 Federal decennial census.

(b)  Criteria.--Notwithstanding Article XIX-D of the Tax Reform Code of 1971 and the KOZ Act, the additional keystone opportunity expansion zone under subsection (a):

(1)  May not be less than 10 acres in size.

(2)  May not exceed, in the aggregate, a total of 300

acres.

(3)  Shall be composed of at least 40 acres within a

city of the third class in the county.

(c)  Authorization.--

(1)  Businesses and affiliates of those businesses located within an additional keystone opportunity expansion zone authorized under this section shall be entitled to all tax exemptions, deductions, abatements or credits under Chapter 5 of the KOZ Act for a period of 10 years.

(2)  Exemptions for sales and use taxes under section 511(a) of the KOZ Act shall commence upon designation of the keystone opportunity expansion zone by the department and shall continue for 10 years.

(d)  Application.--

(1)  In order to receive a designation under this section, the department must receive an application from an economic development authority, or an economic development authority's designee, no later than October 1, 2026. The application must contain the information required under section 302(a)(1) and (2)(i) and (ix) of the KOZ Act.

(2)  The department, in consultation with the Department of Revenue, shall review the application and, if approved, issue a certification of all tax exemptions, deductions, abatements or credits under Chapter 5 of the KOZ Act consistent with subsection (c) within three months of receipt of the application.

(3)  The department shall act on an application for a designation under this section no later than December 31, 2026.

(e)  Applicability.--

(1)  The exemptions, deductions, abatements or credits authorized under Chapter 7 of the KOZ Act shall not apply to this section.

(2)  The department may not require that the political subdivision in which the additional keystone opportunity
expansion zone under this section is located approve an
application submitted under subsection (d).

(3)  The provisions of section 902 of the KOZ Act shall apply to an additional keystone opportunity expansion zone approved under this section.

Section 17.  The act is amended by adding an article to read:

ARTICLE XVI-X.1

ADDITIONAL EXTENSIONS OF KEYSTONE OPPORTUNITY ZONES

Section 1601-X.1.  Definitions.

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

"Affiliate."  As defined in section 1912-D(f) of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.

"Business."  As defined in section 103 of the KOZ Act.

"Department."  The Department of Community and Economic Development of the Commonwealth.

"Keystone opportunity expansion zone."  As defined in section 103 of the KOZ Act.

"Keystone opportunity zone."  As defined in section 103 of the KOZ Act.

"KOZ Act."  The act of October 6, 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act.

"Political subdivision."  As defined in section 103 of the KOZ Act.

"Qualified business."  As defined in section 103 of the KOZ Act.

"Qualified political subdivision."  As defined in section 103 of the KOZ Act.

"Subzone."  As defined in section 103 of the KOZ Act.

Section 1602-X.1.  Additional extensions.

(a)  Approval and effect.--

(1)  Unless another act of the General Assembly expressly provides for an additional extension of a keystone opportunity zone, keystone opportunity expansion zone or keystone opportunity improvement zone, the department shall approve an application to grant an additional extension for a parcel located within a keystone opportunity zone, keystone opportunity expansion zone or keystone opportunity improvement zone if:

(i)  The parcel was already granted an extension under this act, the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, or the KOZ Act.

(ii)  The parcel, as of the date the application is submitted:

(A)  is located within a city and county of the first class;

(B)  is no more than 20 acres in the aggregate, regardless of being composed of different real estate tax parcels; and

(C)  is entirely owned by the applicant, an affiliate of the applicant or both.

(iii)  The application is submitted by one or more qualified businesses currently operating within the keystone opportunity zone, keystone opportunity expansion zone or keystone opportunity improvement zone.

(iv)  The application under subparagraph (iii) includes a written statement from the applicant providing substantive information on the positive economic impact that is anticipated to result from extension of the keystone opportunity zone, keystone opportunity expansion zone or keystone opportunity improvement zone.

(v)  The applicant enters into an agreement committing the applicant and its affiliates to all of the following:

(A)  Making a minimum capital investment in this Commonwealth of $150,000,000 within four years of a date as determined by the department.

(B)  Creating 450 full-time direct jobs at the continued parcel or parcels within five years of a date as determined by the department and maintaining those jobs for an additional eight years thereafter.

(C)  Creating 600 full-time direct jobs in a county of second class A with a population of 600,000 to 650,000 according to the 2020 Federal decennial census within five years of a date as determined by the department and maintaining those jobs for an additional eight years thereafter.

(D)  Retaining jobs in the following areas of this Commonwealth in which jobs exist at the time the application is submitted, and maintaining the jobs for a period of eight years from a date as determined by the department:

(I)  In an unincorporated community in a county of the second class A.

(II)  In the parcels being continued under this section.

(III)  In a second class township in a county of the second class A.

(IV)  In a second class township in a county of the sixth class.

(E)  Otherwise being in compliance with the provisions of the KOZ Act.

(2)  State tax exemptions, deductions, abatements and credits authorized under Chapter 5 of the KOZ Act shall be extended to the parcel for an additional period of 10 years following the expiration date of the existing keystone opportunity zone, keystone opportunity expansion zone or keystone opportunity improvement zone or subzone.

(b)  Affiliates.--If an affiliate of a qualified business whose extension application under subsection (a) was approved and the affiliate locates within an extended parcel before the expiration of the certification issued under subsection (c)(2), the affiliate is entitled to the State tax exemptions, deductions, abatements or credits specified under this section, provided the affiliate meets the requirements of section 307(a) of the KOZ Act.

(c)  Application.--

(1)  In order to receive approval under subsection (a)(1), the department must receive an application no later than three months prior to the expiration date of the existing zone.

(2)  The department, in consultation with the Department of Revenue, shall review the application and, if approved, issue a certification of State tax exemptions, deductions, abatements or credits authorized under Chapter 5 of the KOZ Act for the extended parcel within three months of receipt of the application, subject to the requirements of this section. If the department determines that all qualifications and requirements under this section and the KOZ Act have been met, a certification for the extension period shall be issued within 90 days of receipt of the application.

(3)  The certification under paragraph (2) shall be effective as of the day following the expiration date of the existing zone and shall be effective for an additional period of 10 years.

(d)  Qualifications.--

(1)  The department shall issue to each qualified business that is approved as part of the application submitted under subsection (a) a certification as described under section 307 of the KOZ Act.

(2)  Each qualified business that fails to meet the requirements under this section shall refund to the Commonwealth the amount of the exemptions, deductions, abatements and credits under Chapter 5 of the KOZ Act which were received by that business during the continuation of the zone.

(e)  Expiration.--

(1)  All continuations shall expire no later than 10 years following the effective date of certification by the department. Parcels continued under this section shall not be eligible for any additional future continuations.

(2)  If the qualified business that is a sole applicant removes itself from the continued parcel or parcels prior to the expiration of the continuation, the continuation shall expire upon the date of departure of that qualified business.

(3)  If two or more qualified businesses submit an application under subsection (a) as joint applicants, this subsection shall apply only if all the qualified businesses that are the joint applicants remove themselves from the parcel prior to the expiration of the continuation. If all the qualified businesses that are the joint applicants remove themselves from the parcel prior to the expiration of the continuation, the continuation shall expire upon the date of departure of the last qualified business.

(4)  If the applicant fails to satisfy the commitment made in the agreement as outlined in subsection (a)(1)(v), the continuation granted under this section shall terminate immediately.

(f)  Applicability.--

(1)  This section applies only to existing zones that expire in the years 2028 and 2035.

(2)  This section does not apply to exemptions, deductions, abatements or credits authorized under Chapter 7 of the KOZ Act, and the department may not require that the qualified political subdivision in which the continued parcel or parcels are located approve any application submitted under subsection (c).

(3)  The exemptions, deductions, abatements or credits authorized under Chapter 5 of the KOZ Act apply only to business activity carried out within the parcel or parcels which are approved for extension.

Section 18.  Section 1702-A(b)(1) of the act is amended by adding a subparagraph to read:

Section 1702-A.  Funding.

* * *

(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:

* * *

(xiv)  No amount of the surplus in the General Fund for fiscal year 2024-2025 may be deposited into the Budget Stabilization Reserve Fund.

* * *

Section 19.  Section 1732-A of the act is amended to read:

Section 1732-A.  Expiration.

This subarticle shall expire December 31, [2025] 2028.

Section 20.  Section 1774.1-A(a) of the act is amended by adding a paragraph and the section is amended by adding a subsection to read:

Section 1774.1-A.  Other grants.

(a)  Water and sewer projects.--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:

* * *

(5)  For fiscal year 2025-2026, the sum of $45,269,814 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. In determining the grant amount for the purpose of this paragraph, the authority shall not include the matching funds requirement in the calculation of the cost of the project.

* * *

(a.5)  Additional water and sewer projects.--In addition to any funds available for projects under subsection (a)(5), for fiscal year 2025-2026, the following shall be available 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:

(1)  The sum of $5,709,187 of the funds available to the authority for the H2O PA program established in the act of July 9, 2008 (P.L.908, No.63), known as the H2O PA Act.

(2)  (Reserved).

* * *

Section 21.  Section 1712-A.1(a)(2)(ii) of the act, amended July 11, 2024 (P.L.550, No.54), is amended to read:

Section 1712-A.1.  Establishment of special fund and account.

(a)  Tobacco Settlement Fund.--

* * *

(2)  The following shall be deposited into the Tobacco Settlement Fund:

* * *

(ii)  For fiscal years 2019-2020, 2020-2021, 2021-2022, 2022-2023, 2023-2024 [and], 2024-2025 and 2025-2026, an amount equal to the annual debt service due in the fiscal year as certified by the Secretary of the Budget pursuant to section 2804 of the Tax Reform Code of 1971, as published in the Pennsylvania Bulletin on March 3, 2018, at 48 Pa.B. 1406, shall be transferred to the fund from the taxes collected under Article XII of the Tax Reform Code of 1971 by April 30 following the beginning of the fiscal year. A deposit under this paragraph shall occur prior to the deposits and transfers under section 1296 of the Tax Reform Code of 1971.

* * *

Section 22.  Section 1713-A.1(b)(1.8) introductory paragraph and (ii)(B)(II) of the act, amended July 11, 2024 (P.L.550, No.54), are amended and subsection (b) is amended by adding a paragraph to read:

Section 1713-A.1.  Use of fund.

* * *

(b)  Appropriations.--The following shall apply:

* * *

(1.8)  For fiscal years 2021-2022, 2022-2023, 2023-2024 [and], 2024-2025 and 2025-2026, the General Assembly shall appropriate money in the fund in accordance with the following percentages based on the sum of the portion of the annual payment deposited and the amount deposited under section 1712-A.1(a)(2)(ii) in the fiscal year:

* * *

(ii)  Twelve and six-tenths percent to be allocated as follows:

* * *

(B)  Thirty percent as follows:

* * *

(II)  From the amount remaining after the amount under subclause (I) has been determined and notwithstanding any provisions of Chapter 9 of the Tobacco Settlement Act to the contrary:

(a)  Seventy-five percent for pediatric cancer research institutions within this Commonwealth that are equipped and actively conducting pediatric cancer research designated by the Secretary of Health to be eligible to receive contributions. No more than $2,500,000 in a fiscal year shall be made available to any one pediatric cancer research institution.

(b)  For fiscal years 2021-2022, 2022-2023 and 2023-2024, twenty-five percent for capital and equipment grants to an entity or entities engaging in biotechnology research, including an entity or entities engaging in regenerative medicine research, regenerative medicine medical technology research, hepatitis and viral research, drug research and clinical trials related to cancer, research relating to pulmonary embolism and deep vein thrombosis, genetic and molecular research for disease identification and eradication, vaccine immune response diagnostics, nanotechnology research and the commercialization of applied research, as designated by the Secretary of Health.

(c)  Beginning in fiscal year 2024-2025 and each year thereafter, twenty-five percent for research grants for biomedical research institutions to research Amyotrophic Lateral Sclerosis, Alzheimer's disease, Huntington's disease, Parkinson's disease and other neurodegenerative diseases, as designated by the Secretary of Health.

(d)  Money appropriated for Amyotrophic Lateral Sclerosis Support Services shall be distributed to grantees in the same proportion as distributed in fiscal year 2024-2025.

* * *

(1.9)  In addition to the grant period provided for in section 904 of the Tobacco Settlement Act, the department may approve a one year extension for each pediatric cancer research grant awarded prior to fiscal year 2025-2026 under Chapter 9 of the Tobacco Settlement Act.

* * *

Section 23.  Section 1723-A.1(b) of the act is reenacted and amended and subsection (a)(3) is amended by adding a subparagraph to read:

Section 1723-A.1.  Distributions from Pennsylvania Race Horse Development Fund.

(a)  Distributions.--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:

* * *

(3)  The following shall apply:

* * *

(x)  For fiscal year 2025-2026, the department shall transfer $15,305,000 from the fund to the State Racing Fund under subsection (b).

(b)  Annual transfers to State Racing Fund.--The General Assembly shall authorize the transfer of funds from the fund to the State Racing Fund to provide for each cost associated with the collection and research of and testing for medication, which shall include the cost of necessary personnel, equipment, supplies and facilities, except holding barns or stables, to be located at horse race facilities, grounds or enclosures or at other locations designated by the commission. All such costs shall be reviewed and approved by the commission. The transfer shall be made in 52 equal weekly installments during the fiscal year before any other distribution from the fund. This subsection shall expire on June 30, [2025] 2028.

Section 24.  The act is amended by adding a section to read:

Section 1739.1-A.1.  Refund of 2003 assessment by Insurance Department.

(a)  Refund.--A carrier may submit a form developed under subsection (c) to the Insurance Department for a refund of the assessment paid by the carrier as required by the Insurance Department in calendar year 2003 under section 9(1) of the act of July 1, 1937 (P.L.2532, No.470), known as the Workers' Compensation Security Fund Act, and 31 Pa. Code § 165.7 (relating to assessment). The amount of the refund shall equal the amount of the assessment.

(b)  Submission.--Within 30 days of the effective date of this subsection, the Insurance Department shall submit notice to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin advising carriers of the availability of a refund. The notice shall include all of the following information:

(1)  The name of each carrier eligible for a refund.

(2)  The names, addresses, email addresses and telephone numbers of Insurance Department officials responsible for responding to questions regarding the refund.

(3)  An Internet link to the Insurance Department's form.

(4)  The form submission process and the date on which forms are due to the Insurance Department.

(c)  Form.--The Insurance Department shall develop the form to be used by a carrier requesting a refund. The form shall require sufficient information for the Insurance Department to verify the information submitted by the carrier.

(d)  Eligibility.--To be eligible to receive a refund under this section, the carrier must submit the form by the close of business on the date established by the Insurance Department.

(e)  Issuance.--The Insurance Department shall issue a refund to the carrier within 60 days of receipt of the form for the amount of assessment verified by the Insurance Department in accordance with this section.

(f)  Carriers in liquidation.--A carrier in liquidation in calendar year 2003 may not receive a refund under this section.

(g)  Report.--No later than 180 days after the final refund under subsection (e) is made, the Insurance Department shall report the aggregate amount of refunds requested and made under this section to the following:

(1)  The chairperson and minority chairperson of the Appropriations Committee of the Senate.

(2)  The chairperson and minority chairperson of the Appropriations Committee of the House of Representatives.

(3)  The chairperson and minority chairperson of the Banking and Insurance Committee of the Senate.

(4)  The chairperson and minority chairperson of the Insurance Committee of the House of Representatives.

(h)  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:

"Carrier."  As defined in section 2 of the Workers' Compensation Security Fund Act.

Section 25.  Section 1742-A.2(a) of the act is amended by adding a paragraph to read:

Section 1742-A.2.  Deposits.

(a)  Deposits.--From the contributions paid under section 301.4 of the Unemployment Compensation Law, the following amounts shall be deposited into the fund:

* * *

(3)  For the fiscal year beginning July 1, 2025, the amount to be deposited into the fund under this subsection shall be $104,354,000.

* * *

Section 26.  Article XVII-A.2 of the act is amended by adding a subarticle to read:

SUBARTICLE F

PROPERTY TAX RELIEF FUND

Section 1751-A.2.  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:

"Fund."  The Property Tax Relief Fund established under 4 Pa.C.S. § 1409(a) (relating to Property Tax Relief Fund).

"Taxpayer Relief Act."  The act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.

Section 1752-A.2.  Transfers to State Lottery.

Notwithstanding section 1308(b)(4) of the Taxpayer Relief Act, for fiscal year 2025-2026 and each fiscal year thereafter, the Secretary of the Budget shall transfer from the fund to the State Lottery only the following amounts:

(1)  The sum of the amounts of the approved claims to be paid in the next fiscal year under section 1304(a)(2)(i) and (3) of the Taxpayer Relief Act, including the adjustments required under section 1304(a)(4) of the Taxpayer Relief Act.

(2)  The sum of the amounts of the approved claims to be paid in the next fiscal year under sections 704 and 1304(a)(2)(ii) of the Taxpayer Relief Act, including the adjustments required under section 1304(a)(4) of the Taxpayer Relief Act, if any.

Section 27.  Section 1712-E(e) and (f)(2) of the act, added July 11, 2024 (P.L.550, No.54), are amended and subsections (a) and (f) are amended by adding paragraphs to read:

Section 1712-E.  Executive Offices.

(a)  Appropriations.--The following shall apply to appropriations for the Executive Offices:

* * *

(6)  Funds allocated prior to fiscal year 2025-2026 for nonnarcotic medication substance use disorder treatment for eligible offenders that remain unexpended and uncommitted may be used by the Pennsylvania Commission on Crime and Delinquency for grants to counties to provide medication-assisted treatment, in combination with comprehensive substance use disorder treatment, to eligible offenders who meet the clinical criteria for an opioid use disorder or an alcohol use disorder, as determined by a physician, while incarcerated and upon release from a county correctional institution. As used in this paragraph, the term "medication-assisted treatment" means the use of United States Food and Drug Administration-approved medications, together with nonmedication treatment, as clinically indicated, to treat substance use disorders, including opioid use disorders and alcohol use disorders.

(7)  Notwithstanding section 902(c)(4) of the act of April 17, 2016 (P.L.84, No.16), known as the Medical Marijuana Act, the Pennsylvania Commission on Crime and Delinquency may use money allocated under section 902 of the Medical Marijuana Act to distribute grants to police departments and accredited forensic crime laboratories that demonstrate a need relating to enforcement of the Medical Marijuana Act and to provide services to crime victims.

(8)  Any uncommitted money available to the Pennsylvania Commission on Crime and Delinquency under section 902(c)(4) of the Medical Marijuana Act through the 2025-2026 fiscal year shall be transferred to the Crime Victim Services and Compensation Fund.

* * *

(e)  Transfers to Department of Corrections.--The Secretary of the Budget shall have the following duties:

(1)  Provide notice to the State Treasurer that money received by the Commonwealth under the American Rescue Plan Act of 2021 (Public Law 117-2, 135 Stat. 4) that was deposited in and appropriated from the COVID-19 Response Restricted Account for use by State agencies which remains unexpended, or becomes uncommitted or unencumbered [as of December 20, 2024], shall be transferred by the State Treasurer to the Department of Corrections by December 30, 2024, and each quarter thereafter until December 31, 2026. All funds transferred shall be allocated for payroll expenses or [similar] other qualifying expenses incurred by the Department of Corrections on or after March 3, 2021, as specified in the guidance issued by the United States Department of the Treasury.

(2)  By December 31, 2024, and each quarter thereafter until December 31, 2026, submit a report in writing 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 concerning all transfers made under paragraph (1). The report under this paragraph shall identify each COVID-19 Response Restricted Account appropriation from which money is transferred to the Department of Corrections, the amount transferred from each appropriation, the total amount of money allocated to the Department of Corrections and any other relevant information as determined by the Secretary of the Budget.

(f)  Enterprise and Technology Restricted Account.--

* * *

(1.1)  For fiscal year 2025-2026 no later than 60 days after the effective date of this paragraph, the Secretary of the Budget shall transfer $59,250,000 to the account from money appropriated to agencies for operating expenses under the Governor's jurisdiction for fiscal years 2024-2025 and prior, which remains unexpended, unencumbered or uncommitted. Money in the account is appropriated on a continuing basis as follows:

(i)  $20,000,000 for the Enterprise Systems Lifecycle Project in the Office of the Budget.

(ii)  $6,900,000 for the Commonwealth Office of Digital Experience in the Office of Administration.

(iii)  $10,000,000 for Enhanced Enterprise Cybersecurity Projects in the Office of Administration.

(iv)  $15,266,000 for the Space Optimization and Utilization Improvement Project in the Department of General Services.

(v)  $6,000,000 for audiovisual upgrades at the Pennsylvania Emergency Management Agency.

(vi)  $504,000 for audiovisual upgrades at the Department of Military and Veterans Affairs.

(vii)  $80,000 for information technology enhancements at the Office of Victim Advocate.

(viii)  $300,000 for the Case Management System Project in the Office of General Counsel.

(ix)  $200,000 for climate controlled system upgrades at the State Library.

(2)  No later than 10 days before the transfer under [paragraph (1)] paragraphs (1) and (1.1), the Secretary of the Budget shall provide a list of appropriations and the amounts transferred 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.

Section 28.  Section 1719-E(a.3) of the act, amended July 11, 2024 (P.L.550, No.54), is amended to read:

Section 1719-E.  Department of Community and Economic Development.

* * *

(a.3)  Designation.--[Notwithstanding the provisions of the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, a business operating within any portion of any real property designated as a Keystone Opportunity Zone, Keystone Opportunity Expansion Zone or Keystone Opportunity Improvement Zone under the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act which would otherwise qualify as a "qualified business" as defined in the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, and any owner of any portion of the real property shall, for a time period not to expire until the actual expiration of all of the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone designations of any portion of the entire real property, be entitled to the same State tax benefits and relief afforded to such parties as if the real property in question were entirely designated as a Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone. The real property must:

(1)  be located within a city and county of the first class;

(2)  be at least 1,200 acres in the aggregate, regardless of being comprised of different real estate tax parcels;

(3)  be entirely owned by one entity and/or an affiliate; and

(4)  have over 50% of its acreage designated as a Keystone Opportunity Zone, Keystone Opportunity Expansion Zone or Keystone Opportunity Improvement Zone.] The Keystone Opportunity Zone, Keystone Opportunity Expansion Zone And Keystone Opportunity Improvement Zone Act is herein referred to as the "KOZ Act" and each of the three zones mentioned in the name of, and defined in, the KOZ Act is referred to herein as a "zone" or collectively, as "zones". Notwithstanding the provisions of the KOZ Act, a business operating anywhere within the external boundaries of the real property resulting from the aggregation of the parcels of land which satisfied, as of May 1, 2025, the parameters set forth in paragraphs (1), (2), (3) and (4) which business would, if its operations on such real property were occurring completely within a zone, otherwise qualify as a "qualified business" as defined in the KOZ Act, and any owner of any portion of said real property shall, for a time period not to expire until the actual expiration of all of the KOZ Act zone designations of every portion of said real property, be entitled to the same State tax benefits and relief afforded to such parties as if the entire real property were designated as being in zones. The real property must have:

(1)  been located within a city and county of the first class;

(2)  been at least 1,200 acres in the aggregate, regardless of being comprised of different real estate tax parcels;

(3)  been entirely owned by one entity and/or its affiliates; and

(4)  had over 50% of its acreage designated as a keystone opportunity zone, keystone opportunity expansion zone or keystone opportunity improvement zone.

* * *

Section 29.  Section 1723-E of the act is amended by adding a subsection to read:

Section 1723-E.  Department of Environmental Protection.

* * *

(c)  Inflation Reduction Act - Solar For All.--

(1)  Federal money appropriated for Inflation Reduction Act - Solar For All, is appropriated to the Pennsylvania Energy Development Authority. The authority may encumber, commit or expend the funds to eligible projects.

(2)  For Federal money appropriated for Inflation Reduction Act - Solar For All prior to fiscal year 2025-2026, any remaining amounts uncommitted, unencumbered or unexpended as of June 30, 2025, shall be appropriated to the Pennsylvania Energy Development Authority to be used for eligible projects pursuant to paragraph (1).

(3)  For the purposes of this subsection, the term "eligible projects" shall mean projects consistent with Federal guidance for the program and have been submitted by the Pennsylvania Energy Development Authority to the Commonwealth Financing Authority for approval by the Commonwealth Financing Authority.

Section 30.  Sections 1736-E and 1738-E(b)(5) of the act are amended to read:

Section 1736-E.  Pennsylvania Fish and Boat Commission [(Reserved)].

(a)  Fish Fund.--Notwithstanding 30 Pa.C.S. § 521 (relating to establishment and use of Fish Fund), money in the Fish Fund may be used for expenses incurred by the Pennsylvania Fish and Boat Commission for activities related to boats and boating that benefit fish and fishing. The Pennsylvania Fish and Boat Commission shall have the following duties:

(1)  Maintain a record of all expenditures made under this subsection and the purpose of each expenditure.

(2)  Submit an annual report detailing expenditures made under this subsection and their respective purposes to all of the following:

(i)  The chairperson and minority chairperson of the Appropriations Committee of the Senate.

(ii)  The chairperson and minority chairperson of the Appropriations Committee of the House of Representatives.

(iii)  The chairperson and minority chairperson of the Game and Fisheries Committee of the Senate.

(iv)  The chairperson and minority chairperson of the Game and Fisheries Committee of the House of Representatives.

(3)  Submit the annual report under paragraph (2) no later than January 31 of each year for expenditures made during the preceding fiscal year.

(4)  Include the information under this subsection in the report required under 30 Pa.C.S. § 503(b) (relating to auditing and reporting requirements) as the Pennsylvania Fish and Boat Commission deems appropriate.

(b)  Boat Fund.--Notwithstanding 30 Pa.C.S. § 531 (relating to establishment and use of Boat Fund), money in the Boat Fund may be used for expenses incurred by the Pennsylvania Fish and Boat Commission for activities related to fish and fishing that benefit boats and boating. The Pennsylvania Fish and Boat Commission shall have the following duties:

(1)  Maintain a record of all expenditures made under this subsection and the purpose of each expenditure.

(2)  Submit an annual report detailing expenditures made under this subsection and their respective purposes to all of the following:

(i)  The chairperson and minority chairperson of the Appropriations Committee of the Senate.

(ii)  The chairperson and minority chairperson of the Appropriations Committee of the House of Representatives.

(iii)  The chairperson and minority chairperson of the Game and Fisheries Committee of the Senate.

(iv)  The chairperson and minority chairperson of the Game and Fisheries Committee of the House of Representatives.

(3)  Submit the annual report under paragraph (2) no later than January 31 of each year for expenditures made during the preceding fiscal year.

(4)  Include the information under this subsection in the report required under 30 Pa.C.S. § 503(b) as the Pennsylvania Fish and Boat Commission deems appropriate.

Section 1738-E.  Pennsylvania Higher Education Assistance Agency.

* * *

(b)  Blind and deaf student program.--

* * *

(5)  Beginning July 1, 2011, the rights, powers and duties exercised by the Secretary of Education under the former act of August 31, 1971 (P.L.423, No.101), known as the Higher Education Equal Opportunity Act, are transferred to and shall be exercised by the Pennsylvania Higher Education Assistance Agency. Existing regulations promulgated under the former Higher Education Equal Opportunity Act shall continue in full force and effect by the Pennsylvania Higher Education Assistance Agency until the agency promulgates new or additional regulations. For purposes of identifying eligible students for the program authorized under this paragraph, the Pennsylvania Higher Education Assistance Agency shall determine a demonstration of a level of financial need that may include information gathered from the Free Application for Federal Student Aid and resulting Federal need analysis and aid eligibility.

* * *

Section 31.  Section 1753.2-E(b.1) of the act, added July 11, 2024 (P.L.550, No.54), is amended, subsection (h) is amended by adding a paragraph and the section is amended by adding a subsection to read:

Section 1753.2-E.  Commonwealth Financing Authority.

* * *

(b.1)  Solar for schools eligibility.--Beginning in fiscal year 2024-2025, a project approved by the department under the Solar for Schools Grant Program shall be an eligible project. The board shall approve funding from funds available for the Solar for Schools Grant Program. The Department of Community and Economic Development shall use up to 3% of the money available for the Solar for Schools Grant Program to pay direct administrative costs, including providing technical assistance to eligible applicants.

* * *

(h)  Funding.--

* * *

(5)  From money transferred to the authority in fiscal year 2025-2026 for Transfer to Public School Facility Improvement Grant Program - Commonwealth Financing Authority, no less than $25,000,000 shall be used to fund projects recommended by the department under subsection (b.1).

* * *

(m.1)  Transfer.--

(1)  Within 30 days of the effective date of this subsection, the Secretary of the Budget shall transfer $25,000,000 from the following funds or programs to the restricted account established by section 1705-E.2:

(i)  $15,851,838 from the Alternative and Clean Energy Program.

(ii)  $438,540 from the Renewable Energy Program.

(iii)  $5,346,332 from the Solar Energy Program.

(iv)  $3,363,290 from the Building PA Program.

(2)  Upon deposit in the restricted account, the funds under paragraph (1) are appropriated to the Department of Education to be expended for the purpose of paying costs due to school districts for a PlanCon project as defined in section 1701-E.2.

* * *

Section 31.1.  The act is amended by adding a section to read:

Section 1755-E.  Stenography services.

(a)  Prohibition.--Money appropriated for stenography services for administrative proceedings shall not be used to create a stenographic transcript of an administrative proceeding that is solely and exclusively created by artificial intelligence without the presence of a human stenographer in the administrative proceeding, either in person or virtually.

(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:

"Administrative proceeding."  An action, proceeding or appeal before an executive branch agency.

"Artificial intelligence."  As follows:

(1)  A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments, including the ability to:

(i)  perceive real and virtual environments;

(ii)  abstract perceptions made under subparagraph (i) into models through analysis in an automated manner; and

(iii)  use model inference to formulate options for information or action based on outcomes under subparagraphs (i) and (ii).

(2)  The term shall include generative artificial intelligence.

"Stenographic transcript."  The verbatim transcription of spoken words to text to be used in an administrative proceeding for the purpose of creating a written record.

Section 32.  Section 1795.1-E(c)(1)(ii) and (2) of the act are amended to read:

Section 1795.1-E.  Surcharges.

* * *

(c)  Other surcharge and fees.--

(1)  In addition to the fees imposed under 42 Pa.C.S. §§ 3733(a.1) and 3733.1 (relating to surcharge), except as set forth in paragraph (2), the following apply:

(ii)  A permanent fee of [$2.50] $3.50 shall be charged and collected.

* * *

(2)  [Paragraph (1)] The fee authorized under paragraph (1)(iii) does not apply to a conviction or guilty plea based on the filing of a traffic citation charging an offense under 75 Pa.C.S. (relating to vehicles) that is classified as a summary offense under a State statute or local ordinance as provided in the Pennsylvania Rules of Criminal Procedure.

* * *

Section 33.  Sections 1798.1-E(b) introductory paragraph and 1798.3-E(d) of the act, amended July 11, 2024 (P.L.550, No.54), are amended to read:

Section 1798.1-E.  Federal and Commonwealth use of forest land.

* * *

(b)  Charge.--Except as provided under subsection [(f)] (g), the following shall apply:

* * *

Section 1798.3-E.  Multimodal Transportation Fund.

* * *

(d)  Expiration.--This section shall expire December 31, [2025] 2026.

Section 34.  The act is amended by adding a section to read:

Section 1799.11-E.  State Sexual Offenders Assessment Board.

(a)  Compensation for assessments.--Notwithstanding 42 Pa.C.S. § 9799.35(d) (relating to board), members of the State Sexual Offenders Assessment Board shall be compensated at a rate of $500 per assessment.

(b)  Other compensation for assessments.--Notwithstanding 42 Pa.C.S. § 9799.69(d) (relating to board), members of the State Sexual Offenders Assessment Board shall be compensated at a rate of $500 per assessment.

Section 35.  Article XVII-E of the act is amended by adding subarticles to read:

SUBARTICLE G

INTEREST TRANSFERS

Section 1799.21-E.  Special fund interest transfer to the General Fund.

(a)  Transfer.--Notwithstanding any other provision of law, for the 2026-2027 fiscal year, the secretary shall transfer $100,000,000 of interest earned from special funds to the General Fund.

(b)  Evaluation.--Notwithstanding any other provision of law, beginning December 1, 2026, and annually thereafter, the secretary shall conduct an evaluation of each special fund to determine the feasibility of transferring up to $100,000,000 of interest earned from special funds to the General Fund in the next fiscal year thereafter. In conducting the evaluation, the secretary shall analyze potential interest gains and investment performance to determine if a transfer under this section may be effectuated without placing the solvency of any of the special funds at risk. After conducting the evaluation under this subsection, the secretary shall certify the amount of interest available to be transferred to the General Fund without jeopardizing the solvency of the special funds.

(c)  Transmittal.--No later than December 31 of each year that an evaluation is conducted under subsection (b), the secretary shall transmit a copy of the evaluation and interest certification 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.

(d)  Construction.--Nothing in this section shall be construed to authorize the transfer of money from a special fund to the General Fund, if the transfer is otherwise prohibited by Federal law or regulation.

(e)  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:

"Special fund."  The term shall include all special funds and restricted accounts of the Commonwealth except the following:

(1)  The fund established under section 1701-A.

(2)  Special funds and restricted accounts that support programs administered by the Department of Environmental Protection or the Department of Conservation and Natural Resources.

SUBARTICLE H

FUND TRANSFERS

Section 1799.31-E.  Transfer to Lottery Fund.

Beginning in fiscal year 2025-2026 and each year thereafter, from money in the account created pursuant to 4 Pa.C.S. § 13B52(d)(2)(ii) (relating to interactive gaming tax), the sum of $91,000,000 shall be transferred to the Lottery Fund.

SUBARTICLE I

MISCELLANEOUS PROVISIONS

Section 1799.41-E.  Local Economic Revitalization Tax.

(a)  County of the second class or city of the second class.--Notwithstanding section 5(b)(1) of the act of December 1, 1977 (P.L.237, No.76), known as the Local Economic Revitalization Tax Assistance Act, in a county of the second class or a city of the second class, the length of the schedule of taxes exempted under the Local Economic Revitalization Tax Assistance Act shall not exceed 20 years.

(b)  City of the first class.--

(1)  Notwithstanding section 5(b)(1) of the Local Economic Revitalization Tax Assistance Act, the length of schedule of taxes exempted in connection with improvements that convert deteriorated property into residential housing units in a city of the first class under the Local Economic Revitalization Tax Assistance Act shall not exceed 20 years.

(2)  The local taxing authority in this subsection may, by ordinance or resolution, adopt requirements applicable to the construction of improvements to property subject to this section which shall be no more restrictive than the provisions of section 1724.1-E(e.1)(4).

(c)  (Reserved).

(d)  (Reserved).

(e)  Definitions.--As used in this section, the term "deteriorated property" shall mean any industrial, commercial or other business property, or property previously used for government purposes, including a school, owned by an individual, association or corporation and located in a deteriorating area, any property which has been the subject of an order by a government agency requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations or any of such property that is no longer in use and must be demolished to make residential use economically viable.

Section 36.  Section 1723-H of the act is amended by adding a paragraph to read:

Section 1723-H.  Department of Education.

The following apply to appropriations to the Department of Education:

* * *

(26)  From money appropriated for payment for tuition to school districts providing education to nonresident orphaned children placed in private homes by the court and nonresident inmates of children's institutions, the department shall pay to an intermediate unit in a county of the second class no less than $2,900,000 to operate alternative education for disruptive youth programs approved by the department.

Section 36.1.  Section 1724-H of the act, repealed and added July 11, 2024 (P.L.550, No.54), is amended to read:

Section 1724-H.  Department of Environmental Protection (Reserved).

[From Federal money appropriated for IRA - Solar For All, no money shall be encumbered, committed or expended unless authorized by State law on or after the effective date of this section.]

Section 37.  Section 1730-H(5)(x) of the act, repealed and added July 11, 2024 (P.L.550, No.54), is amended to read:

Section 1730-H.  Department of Human Services.

The following apply to appropriations for the Department of Human Services:

* * *

(5)  The following shall apply to amounts appropriated for medical assistance fee-for-service:

* * *

(x)  No less than $1,250,000 shall be distributed to a hospital in a city of the second class in a county of the second class that has [between 500 and 530 patient beds] a Level 1 trauma center, a comprehensive burn center and a nursing school.

* * *

Section 38.  Article XVIII of the act is amended by adding a subarticle heading immediately preceding section 1801 to read:

SUBARTICLE A

PRELIMINARY PROVISIONS

Section 39.  Section 1801 of the act, added July 11, 2024 (P.L.550, No.54), is amended to read:

Section 1801.  Scope of article.

This article relates to the expedited review of permit applications [submitted to the department].

Section 40.  Article XVIII of the act is amended by adding a subarticle heading immediately preceding section 1802 to read:

SUBARTICLE B

DEPARTMENT OF ENVIRONMENTAL PROTECTION PERMITS

Section 41.  Section 1802 introductory paragraph of the act, added July 11, 2024 (P.L.550, No.54), is amended to read:

Section 1802.  Definitions.

The following words and phrases when used in this [article] subarticle shall have the meanings given to them in this section unless the context clearly indicates otherwise:

* * *

Section 42.  Section 1803(b) of the act, added July 11, 2024 (P.L.550, No.54), is amended and subsection (c) is amended by adding paragraphs to read:

Section 1803.  The Streamlining Permits for Economic Expansion and Development Program.

* * *

(b)  Process.--Within 60 days of the effective date of this subsection, the department, in consultation with the Department of General Services, shall establish a process to, and within 90 days shall, issue [requests for proposals] a procurement to engage qualified professionals to provide expedited reviews of eligible permits.

(c)  Eligible permit.--A permit identified by the department as eligible for the program, including, but not limited to, the following:

* * *

(4)  A storage tank site specific installation permit issued under 25 Pa. Code §§ 245.231 (relating to scope), 245.232 (relating to general requirements), 245.233 (relating to mapping requirements), 245.234 (relating to siting requirements), 245.235 (relating to Environmental assessment), 245.236 (relating to public notice) and 245.237 (relating to public hearings).

(5)  A short-term construction mining general permit issued under section 26(b) of the act of December 19, 1984 (P.L.1093, No.219), known as the Noncoal Surface Mining Conservation and Reclamation Act, and 25 Pa. Code Ch. 77 Subch. J (relating to general permits).

(6)  A concentrated animal feeding operation permit issued under 25 Pa. Code § 92a.49 (relating to CAFO).

* * *

Section 43.  Article XVIII of the act is amended by adding subarticles to read:

SUBARTICLE C

REVIEW AND DETERMINATION OF SPECIFIC PERMITS

Section 1805.  Duty to review and issue determination on permits.

(a)  Air pollution.--

(1)  Notwithstanding any other provision of law, the department shall respond to an application for coverage under a general plan approval or general permit submitted under section 6.1 of the act of January 8, 1960 (1959 P.L.2119, No.787), known as the Air Pollution Control Act, with any technical deficiencies within 20 days of submission.

(2)  If the applicant addresses each identified technical deficiency within 25 days of submission, the department shall issue a final determination on the application within 30 days of submission. If the applicant does not address each identified technical deficiency within 25 days of submission, the department shall deny the application.

(3)  If the department has not issued a final determination on the application for the plan approval or permit within 30 days of submission, the application shall be approved and the applicant may proceed under the provisions of the plan approval or permit.

(4)  The permittee shall be subject and adhere to statutes and regulations applicable to the plan approval or permit.

(5)  This subsection shall apply to general plan approvals or general permits which were published for use prior to the effective date of this subsection and subsequent revisions to the general plan approvals or general permits. New plan approvals or general permits published on or after the effective date of this subsection shall be reviewed under section 6.1 of the Air Pollution Control Act.

(b)  Extension.--The 30-day time period under subsection (a)(3) may be extended one time, by an additional five days, with the consent of the applicant.

(c)  Water quality.--

(1)  Notwithstanding any other provision of law, the department shall respond to an application for a renewal of a National Pollutant Discharge Elimination System general permit issued under 25 Pa. Code § 92a.54 (relating to general permits) with any technical deficiencies within 40 days of submission.

(2)  If the applicant addresses each identified technical deficiency within 50 days of submission, the department shall issue a final determination on the renewal application within 60 days of submission. If the applicant does not address each identified technical deficiency within 50 days of submission, the department shall deny the renewal application.

(3)  If the department has not issued a final determination on the renewal application within 60 days of submission, the renewal application shall be approved and the applicant may proceed under the provisions of the general permit unless the department has received prior agreement from the applicant to extend the review time period.

(4)  The permittee shall be subject and adhere to statutes and regulations applicable to the general permit or plan approval.

(5)  This subsection shall apply to National Pollutant Discharge Elimination System general permits for the following clearly and specifically described categories of point sources:

(i)  Discharges of storm water associated with industrial activities.

(ii)  Discharges from small-flow treatment facilities.

(iii)  Discharges from petroleum product contaminated groundwater remediation systems.

(iv)  Wet weather overflow discharges from combined sewer systems.

SUBARTICLE D

STATE AGENCY PERMITS

Section 1806.  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:

"Application."  A submission to a State agency by an applicant which seeks any of the following:

(1)  A new permit.

(2)  A permit renewal.

(3)  A permit amendment.

(4)  A permit modification.

(5)  A permit transfer.

(6)  A change of ownership of a permit.

"Permit."  An authorization issued by a State agency which approves the performance of a regulated activity. The term includes authorization permits, certificates of public convenience, plan approvals and registrations under a general permit.

"State agency."  An office, department, independent agency, authority, board or commission of the executive branch that issues permits.

Section 1807.  Compilation of permits.

(a)  List of permits.--A State agency shall compile, maintain and make available a complete list of all types of permits issued by the State agency. The list for each State agency shall be posted on a webpage on the Commonwealth's publicly accessible Internet website. The list shall include the following information:

(1)  The program under which each permit is issued.

(2)  The statutory and regulatory authority for each permit.

(3)  The time frame when the State agency must issue each permit.

(4)  The average time frame within which each permit is actually issued.

(b)  Time limit.--A State agency shall, not later than 90 days after the effective date of this subsection, complete the initial list required under subsection (a).

(c)  Annual update.--Not later than January 31 of each year, each State agency shall post the list under subsection (a) on a webpage on the Commonwealth's publicly accessible Internet website.

Section 1808.  Tracking system for permit application.

(a)  Establishment.--A State agency shall establish, maintain and make available a secure tracking system for applicants to track the status of applications on the State agency's publicly accessible Internet website. If, on the effective date of this subsection, a State agency:

(1)  Accepts permit applications in an electronic format and has an indexed electronic database system, the State agency must make available a secure tracking system within six months of the effective date of this subsection.

(2)  Accepts permit applications in a nonelectronic format or does not have an indexed electronic database system, the State agency must make available a secure tracking system within 18 months of the effective date of this subsection.

(b)  Notice.--Within five business days after receiving an application, a State agency shall notify an applicant in writing or by electronic means of the receipt and provide information instructing the applicant in the utilization of the tracking system established under subsection (a).

(c)  System contents.--A tracking system under subsection (a) shall include all of the following:

(1)  The processing time for each permit, the statutory and regulatory authority and the State agency policy establishing the processing time.

(2)  The dates associated with the receipt of each permit application, completeness review, technical review, elevated review, if necessary, and the final permit decision.

(3)  The estimated time remaining for each incomplete phase of the permit approval process.

(4)  The identity and contact information for the State agency employee assigned to answer questions about the application process.

Section 44.  Article XVIII of the act is amended by adding a subarticle heading immediately preceding former section 1805 to read:

SUBARTICLE E

MISCELLANEOUS PROVISIONS

Section 45.  Section 1805 of the act, added July 11, 2024 (P.L.550, No.54), is renumbered to read:

Section [1805] 1809.  Construction.

Nothing in this article shall be construed to:

(1)  limit or otherwise alter the department's authority to revoke a permit for failure to comply with the laws of this Commonwealth; or

(2)  require the department to operate the program in violation of Federal law or regulation.

Section 46.  The act is amended by adding articles to read:

ARTICLE XVIII-B

ELECTRICITY LOAD FORECAST ACCOUNTABILITY

Section 1801-B.  Scope of article.

This article relates to electricity load forecasts submitted to PJM.

Section 1802-B.  Findings and declaration of policy.

(a)  Findings.--The General Assembly finds and declares as follows:

(1)  PJM Interconnection, L.L.C., regional transmission organization (PJM) projects significant growth in electricity demand within the PJM footprint, including in this Commonwealth, driven by data centers, vehicle and building electrification and other large load additions.

(2)  PJM relies on load forecasts submitted by Pennsylvania utilities to plan system needs and set capacity requirements that affect costs to consumers.

(3)  Accurate forecasting is necessary to ensure adequate supply, maintain reliability and protect consumers from costs caused by overbuilding or underbuilding resources.

(4)  The current process by which utilities submit information to PJM lacks transparency for policymakers, regulators and stakeholders.

(5)  There is a need for oversight by the Pennsylvania Public Utility Commission to ensure accuracy and transparency of load-forecast inputs and to coordinate with PJM and other states to avoid duplicative counting of projects and customer contracts.

(b)  Declaration of policy.--It is the policy of the Commonwealth to authorize and require the Pennsylvania Public Utility Commission to:

(1)  review and validate load forecasts submitted by Pennsylvania utilities to PJM;

(2)  coordinate with PJM and other states so that system planning reflects accurate, nonduplicative information; and

(3)  obtain access to materials, including confidential agreements, that are necessary to perform this oversight.

Section 1803-B.  Definitions.

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

"Commission."  The Pennsylvania Public Utility Commission.

"Electric distribution company."  As defined in 66 Pa.C.S. § 2803 (relating to definitions).

"Load forecast."  Information used to estimate future peak demand within a utility service territory that is provided to and utilized by PJM to establish the reliability requirement used in the capacity market. The term does not include short-term or day-ahead forecasts used for market operations.

"PJM."  PJM Interconnection, L.L.C., regional transmission organization or its successor.

"Utility."  An electric distribution company.

Section 1804-B.  Commission oversight of load forecasting.

(a)  Investigation.--The commission shall investigate the methodologies, data and assumptions used by utilities when developing load forecasts submitted to PJM.

(b)  Conduct.--In conducting the investigation under subsection (a), the commission shall have the following duties:

(1)  Review materials, data sets and filings that utilities provide to PJM for load forecasting.

(2)  Evaluate the accuracy, consistency and transparency of forecasting methods and assumptions.

(3)  Review and audit specific large-load interconnection requests to ensure that only projects with a high likelihood of development are included in a forecast, including consideration of financial commitments made by an interconnecting customer.

(4)  Coordinate with PJM so that Pennsylvania forecasts are incorporated into regional planning on a fair, accurate and nonduplicative basis.

(5)  Collaborate with PJM and other state utility commissions within the PJM footprint to prevent double-counting of new large loads and customer contracts and to assess whether other state practices would improve this Commonwealth's approach.

(c)  Outcome.--The commission may issue or promulgate orders, guidance or regulations as necessary to implement this section.

Section 1805-B.  Access to confidential contracts and information.

(a)  Authority--In order to perform the commission's duties under this article, the commission, including the Bureau of Investigation and Enforcement of the commission, along with the Office of Small Business Advocate and the Office of Consumer Advocate, may review contracts, agreements and commitments between interconnecting customers and utilities that affect load-forecast assumptions.

(b)  Production.--Upon request by the commission, a utility shall provide the contracts, agreements or related materials to the commission for the purposes of this article.

(c)  Confidentiality and handling.--The handling, filing and disclosure of a record, report or information under this act shall be governed by 52 Pa. Code Ch. 102 (relating to confidential security information), and the record, report or information shall retain its confidential status in accordance with 52 Pa. Code Ch. 102 and the act of November 29, 2006 (P.L.1435, No.156), known as the Public Utility Confidential Security Information Disclosure Protection Act.

Section 1806-B.  Annual report.

(a)  Report.--No later than June 30 of each year, the commission shall submit a report to the chairperson and minority chairperson of the Consumer Protection and Professional Licensure Committee of the Senate and the chairperson and minority chairperson of the Consumer Protection, Technology and Utilities Committee of the House of Representatives on the implementation of this article and shall post the report on the commission's publicly accessible Internet website.

(b)  Contents.--The report shall describe all of the following:

(1)  Actions taken by the commission to implement this article during the prior fiscal year.

(2)  Findings from the commission's review of utility load-forecast processes and materials submitted to PJM.

(3)  Coordination with PJM and other states to prevent duplicative counting of projects and customer contracts.

(4)  Recommendations for statutory or regulatory changes to improve load-forecast oversight and reliability.

ARTICLE XIX

2025-2026 BUDGET IMPLEMENTATION

SUBARTICLE A

PRELIMINARY PROVISIONS

Section 1901.  Applicability.

Except as specifically provided in this article, this article applies to the General Appropriation Act of 2025 and all other appropriation acts of 2025.

Section 1902.  Definitions.

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

"General Appropriation Act of 2025."  The act of November 12, 2025 (P.L.  , No.1A), known as the General Appropriation Act of 2025.

"Human Services Code."  The act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code.

"Public School Code of 1949."  The act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949.

"Secretary."  The Secretary of the Budget of the Commonwealth.

"TANFBG."  Temporary Assistance for Needy Families Block Grant.

SUBARTICLE B

EXECUTIVE DEPARTMENTS

Section 1911.  Governor (Reserved).

Section 1912.  Executive offices.

The following apply to appropriations for the executive offices:

(1)  The following apply to money appropriated for the Pennsylvania Commission on Crime and Delinquency:

(i)  No less than the amount used in the 2014-2015 fiscal year shall be used to support the Statewide Automated Victim Information and Notification System (SAVIN) to provide offender information through county jails.

(ii)  No less than the amount used in the 2014-2015 fiscal year shall be used for a residential treatment community facility for at-risk youth located in a county of the fifth class.

(iii)  From the amount appropriated, $400,000 shall be used for an innovative police data sharing pointer index system that will allow participating law enforcement agencies access to incident report data.

(iv)  From the amount appropriated, $700,000 shall be used for a diversion program for first-time nonviolent offenders facing prison sentences. The diversion program must include education and employment services, case management and mentoring.

(v)  No less than $3,000,000 shall be available as a pilot program to offset costs incurred by a city of the first class and a county of the second class A that is also a home rule county in connection with hiring additional assistant district attorneys designated as a Special United States Attorney by a United States Attorney's office through participation in the Project Safe Neighborhoods program and who will exclusively prosecute crimes under 18 U.S.C. § 922(g) (relating to unlawful acts).

(vi)  $500,000 shall be used to support a Statewide child predator unit.

(vii)  $500,000 shall be used for training and equipment needs to support improvements in the identification, investigation and prosecution of 18 Pa.C.S. § 6312 (relating to sexual abuse of children).

(viii)  No less than $2,000,000 shall be distributed to a nonprofit organization specified in 61 Pa.C.S. § 3512 (relating to definitions) to monitor conditions in State and county correctional institutions, including through independent data collection and analysis of conditions, and to assist incarcerated individuals with concerns related to their health, safety and dignity.

(ix)  No less than $1,750,000 shall be used for medication substance use disorder treatment for eligible offenders. The Pennsylvania Commission on Crime and Delinquency shall use the money for grants to counties to provide medication-assisted treatment, in combination with comprehensive substance use disorder treatment, to eligible offenders who meet the clinical criteria for an opioid use disorder or an alcohol use disorder, as determined by a physician, while incarcerated and upon release from a county correctional institution. As used in this subparagraph, the term "medication-assisted treatment" means the use of United States Food and Drug Administration-approved medications, together with nonmedication treatment, as clinically indicated, to treat substance use disorders, including opioid use disorders and alcohol use disorders.

(2)  From money appropriated for violence and delinquency prevention programs:

(i)  No less than the amount used in the 2014-2015 fiscal year shall be used for programs in a city of the second class.

(ii)  No less than the amount used in the 2014-2015 fiscal year shall be used for blueprint mentoring programs that address reducing youth violence in cities of the first, second and third class with programs in cities of the second class and third class also receiving a proportional share of $350,000.

(3)  From money appropriated for violence intervention and prevention, no less than $11,500,000 shall be used by the School Safety and Security Committee to provide grants for out-of-school programming for at-risk school-age youth. An eligible grantee under this paragraph shall include any school district, area career and technical school, library, Statewide youth-serving nonprofit organization or community-based nonprofit organization that is not a member of a Statewide youth-serving nonprofit. Out-of-school programming under this paragraph shall include structured programs or activities with engaged mentors and evidence-based or evidence-informed practices provided to school-age youth before school, after school or during the summer to improve social, emotional, academic or career-readiness, prevent and reduce teenage pregnancies, reduce negative behaviors, provide safe out-of-school environments, engage in career exploration or formal or informal work-based learning or any other activity approved by the School Safety and Security Committee. Section 1306-B(b), (c), (d), (e), (g.1) and (g.2) of the Public School Code of 1949 shall apply to grants provided under this paragraph.

(4)  Money appropriated for county intermediate punishment shall be distributed to counties for county adult probation supervision and drug and alcohol and mental health treatment programs for offenders sentenced to restrictive conditions of probation imposed under 42 Pa.C.S. § 9763(c) or (d) (relating to conditions of probation) and are certified in accordance with 42 Pa.C.S. § 2154.1(b) (relating to adoption of guidelines for restrictive conditions). The portion of money for drug and alcohol and mental health treatment programs shall be based on national statistics that identify the percentage of incarcerated individuals that are in need of treatment for substance issues but in no case shall be less than 80% of the amount appropriated.

Section 1912.1.  Office of the Budget (Reserved).

Section 1913.  Lieutenant Governor (Reserved).

Section 1914.  Attorney General.

The following apply to appropriations to the Attorney General:

(1)  Up to $1,200,000 is included in the appropriation for general government operations for costs related to the implementation of 74 Pa.C.S. § 1786 (relating to special prosecutor for mass transit).

(2)  The sum of $8,431,000 shall be distributed between the Attorney General and the district attorney's office in a city of the first class for costs associated with the operation of the joint local-State firearm task force in the city of the first class. No more than 20% may be allocated for the district attorney's office in a city of the first class.

(3)  The sum of $3,110,308 shall be distributed to the Attorney General for costs associated with a joint local-State firearm task force in a city of the first class.

(4)  The sum of $1,537,952 shall be used to cover the costs associated with establishing and operating a joint local-State firearm task force in a county of the second class.

(5)  The sum of $889,692 shall be distributed to the Attorney General for operating and property costs related to the Joint Task Force as needed.

(6)  The Attorney General may expend money from the following restricted accounts for general government operations:

(i)  The Criminal Enforcement Restricted Account established under section 1713-A.1.

(ii)  The Collection Administration Account established under section 922.1 of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929.

(iii)  The restricted account established under section 1795.1-E(c)(3)(iii).

(iv)  The Straw Purchase Prevention Education Fund established under 18 Pa.C.S. § 6186 (relating to Straw Purchase Prevention Education Fund).

(v)  The restricted account established under section 4 of the act of December 4, 1996 (P.L.911, No.147), known as the Telemarketer Registration Act.

(vi)  The restricted account known as the Public Protection Law Enforcement Restricted Account.

(vii)  The State court awarded asset forfeiture restricted account as established by the Attorney General under 42 Pa.C.S. § 5803 (relating to asset forfeiture).

Section 1915.  Auditor General (Reserved).

Section 1916.  Treasury Department (Reserved).

Section 1917.  Department of Aging (Reserved).

Section 1918.  Department of Agriculture.

The following apply to appropriations for the Department of Agriculture:

(1)  From money appropriated for general government operations, no less than $250,000 shall be used for the Commission for Agricultural Education Excellence to assist in the development and implementation of agricultural education programming.

(2)  From money appropriated for agricultural preparedness and response, no less than $6,000,000 shall be used for costs incurred by the Pennsylvania Animal Diagnostic Laboratory System across this Commonwealth in preparing for and responding to an outbreak of highly pathogenic avian influenza.

(3)  From money appropriated for agricultural excellence, no less than $1,400,000 shall be used for beef excellence supported programs and initiatives.

(3.1)  From money appropriated for the Farmers Market Food Coupons:

(i)  $5,000,000 shall be used to reduce food waste and strengthen food access programs.

(ii)  $2,000,000 shall be used for administration and program costs associated with a benefit incentive program for Supplemental Nutrition Assistance Program participants to purchase fruits and vegetables at eligible food retailers.

(4)  From money appropriated for agricultural research, the following apply:

(i)  No less than $300,000 shall be used for an agricultural resource center.

(ii)  No less than $100,000 shall be used for agricultural law research programs, including those addressing energy development, in conjunction with a land-grant university.

(5)  From money appropriated for hardwoods research and promotion, at least 80% of the money shall be equally distributed among the hardwood utilization groups of this Commonwealth established prior to the effective date of this paragraph.

(6)  Money appropriated for the Animal Health and Diagnostic Commission shall be equally distributed to the animal diagnostic laboratory system laboratories located at a land-grant university and at a school of veterinary medicine located within this Commonwealth.

Section 1919.  Department of Community and Economic Development.

The following apply to appropriations for the Department of Community and Economic Development:

(1)  From money appropriated for general government operations, no less than $1,900,000 shall be used to support a manufacturing technology development effort, to assist Pennsylvania small businesses with enhanced cyber security and to test coal ash refuse extraction of rare earth metals for domestic chip manufacturing in a county of the fourth class with a population of at least 130,000, but not more than 135,000, under the most recent Federal decennial census.

(2)  From money appropriated for marketing to attract tourists, $19,315,000 shall be used to fund the activities of the tourism office within the department, including Statewide marketing efforts. Remaining funding shall include additional allocation to be used to plan, market and conduct a series of arts and cultural activities that generate Statewide and regional economic impact. The sum of $1,000,000 shall be used for regional athletic competitions, activities and costs relating to an annual Statewide competition serving approximately 2,000 athletes with intellectual disabilities from across this Commonwealth to be held in a county of the fourth class.

(3)  From money appropriated for Pennsylvania First, no less than $8,000,000 shall be used to fund the Workforce and Economic Development Network of Pennsylvania (WEDnetPA) for workforce training grants provided through an alliance of educational providers, including, but not limited to, State System of Higher Education universities, the Pennsylvania College of Technology and community colleges located in this Commonwealth.

(4)  Money appropriated for Keystone Communities shall be used for projects supporting economic growth, community development and municipal assistance throughout this Commonwealth.

(5)  Money appropriated for Main Street Matters shall support revitalization and community building efforts, including, but not limited to, planning, business support, aesthetic improvements, disability accessibility improvements and the increase of safety and security. Money appropriated for Main Street Matters may also be used to support the operations of Main Street Program or Elm Street Program as designated by the Department of Community and Economic Development.

(6)  Notwithstanding section 4(1) of the act of October 11, 1984 (P.L.906, No.179), known as the Community Development Block Grant Entitlement Program for Nonurban Counties and Certain Other Municipalities, the Commonwealth may use up to 3% of the money received pursuant to the Housing and Community Development Act of 1974 (Public Law 93-383, 88 Stat. 633) for administrative costs.

(7)  Money appropriated for local municipal relief shall include an allocation to provide State assistance to individuals, persons or political subdivisions directly affected by natural or manmade disasters, public safety emergencies, other situations that pose a public safety danger or other situations at the discretion of the department. State assistance may be limited to grants for projects that do not qualify for Federal assistance to help repair damages to primary residences, personal property and public facilities and structures. Grants shall be made available for reimbursement in a disaster emergency area only when a presidential disaster declaration does not cover the area or when the Department of Community and Economic Development determines that a public safety emergency has occurred.

(8)  Money appropriated for hospital and health system emergency relief shall include an allocation to provide State assistance for hospital and health care systems that experience financial distress. Money appropriated for hospital and health system emergency relief may also be used to provide funding for research to study rural health and alternative payment methods for rural health care, including data collection and modeling. As used in this paragraph, the term "hospital and health system" shall include a foundation, trust or nonprofit organization affiliated with a hospital or health system, which is authorized by the hospital or health system to apply for grants on behalf of the hospital or health system.

(9)  Money appropriated for community and economic assistance shall include an allocation to provide State assistance in the form of grants to assist in community and economic development, including projects in the public interest.

(10)  Money appropriated for workforce development shall be distributed in the same proportion as distributed in fiscal year 2022-2023.

Section 1920.  Department of Conservation and Natural Resources.

The following apply to appropriations for the Department of Conservation and Natural Resources:

(1)  Money appropriated for parks, forests and recreation projects shall be used for grants for projects to enhance parks, forests and recreation activities.

(2)  (Reserved).

Section 1921.  Department of Corrections (Reserved).

Section 1922.  Department of Drug and Alcohol Programs (Reserved).

Section 1923.  Department of Education.

The following apply to appropriations to the Department of Education:

(1)  From money appropriated for the Pre-K Counts Program, the per-student grant award amount for grants made under section 1514-D of the Public School Code of 1949 shall be increased by 2.36% over the amount paid in fiscal year 2024-2025.

(2)  From an appropriation for adult and family literacy programs, summer reading programs and the Adult High School Diplomas Program, the following apply:

(i)  No less than the amount allocated in the 2014-2015 fiscal year shall be allocated for an after-school learning program servicing low-income students located in a county of the sixth class with a population, based on the most recent Federal decennial census, of at least 64,730, but not more than 65,558.

(ii)  No less than the amount allocated in the 2016-2017 fiscal year shall be used for an after-school learning program servicing low-income students located in a county of the third class with a population, based on the most recent Federal decennial census, of at least 320,000, but not more than 330,000.

(iii)  From money appropriated for adult and family literacy, at least $1,050,000 shall be used to administer a program to subsidize the cost of high school equivalency testing that leads to a Commonwealth secondary school diploma credential for individuals who meet requirements established by the department.

(3)  The appropriation for pupil transportation may not be redirected for any purpose.

(4)  For money appropriated for Pennsylvania Chartered Schools for Deaf and Blind Children, the following apply:

(i)  Upon distribution of the final tuition payment for the fiscal year, the balance of the appropriation, excluding amounts under subparagraph (ii), shall be used to pay the schools' increased share of required contributions for public school employees' retirement and shall be distributed pro rata based on each school's contributions for the prior fiscal year.

(ii)  $1,000,000 is included for capital-related costs and deferred maintenance to be divided equally between each school.

(5)  The amount of money set aside under section 2509.8 of the Public School Code of 1949 shall be allocated to each approved private school with a day tuition determined to be less than $32,000 during the 2010-2011 school year. The allocation shall be no less than 175% of the amount allocated in the 2015-2016 fiscal year.

(6)  Money appropriated for regional community college services shall be distributed to each entity that received funding in fiscal year 2022-2023 in an amount equal to the amount received in that fiscal year.

(7)  Money appropriated for community education councils shall be distributed in a manner that each community education council which received funding in fiscal year 2022-2023 shall receive an amount equal to the amount received in that fiscal year.

(8)  From money appropriated for Parent Pathways, the Department of Education shall expand the Parent Pathways Learning Network Pilot Program to assist parenting students in pursuing postsecondary pathways to postsecondary degree or certificate completion. The Department of Education shall provide financial and technical assistance to postsecondary institutions to remove barriers to postsecondary degree or certificate completion and increase access to family-sustaining wages and in-demand occupations.

(9)  Money appropriated for job training and education programs shall be used for grants for job training, dual enrollment or educational programs.

(10)  From money appropriated for mobile science, mathematics and literacy programs, the following shall apply:

(i)  Money shall be used for grants to support mobile science and mathematics education programs.

(ii)  Money may also be used for grants under section 1507-N of the Public School Code of 1949.

Section 1924.  Department of Environmental Protection (Reserved).

Section 1925.  Department of General Services.

The following apply to appropriations to the Department of General Services:

(1)  From money appropriated to the Department of General Services for Capitol fire protection, the City of Harrisburg shall use the money to support the provisions of fire services to the Capitol Complex.

(2)  A portion of the money appropriated to the Department of General Services for rental, relocation and municipal charges may be distributed, upon approval of the secretary, to other State agencies to pay for changes in rent and other lease and building operations costs due to a State agency relocation or a change in the amount of space occupied by a State agency. The secretary shall provide notice at least 10 days before a distribution under this paragraph 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.

Section 1926.  Department of Health.

The following apply to appropriations for the Department of Health:

(1)  From money appropriated for general government operations, sufficient money is included for the coordination of donated dental services.

(2)  From money appropriated for primary health care practitioner, the following apply:

(i)  No less than $3,451,000 shall be used for Primary Care Loan Repayment Grant Awards.

(ii)  No less than $1,500,000 shall be used for the Pennsylvania Academy of Family Physicians Family Medicine Residency Expansion Program.

(iii)  No less than $1,300,000 shall be used for the Pennsylvania Academy of Family Physicians Family Medicine Physician Recruitment and Retention Programs.

(iv)  Grantees other than as provided under subparagraphs (i), (ii) and (iii) that received amounts in the 2022-2023 fiscal year shall receive the amount each grantee received in the 2022-2023 fiscal year.

(3)  Money appropriated for services for children with special needs shall be distributed to grantees in the same proportion as distributed in fiscal year 2019-2020.

(4)  From money appropriated for adult cystic fibrosis and other chronic respiratory illnesses, the following apply:

(i)  $212,000 shall be used for a program promoting cystic fibrosis research in a county of the second class.

(ii)  $106,000 shall be used for research related to childhood cystic fibrosis in a city of the first class with a hospital that is nationally accredited as a cystic fibrosis treatment center and specializes in the treatment of children.

(iii)  Any money not used under subparagraph (i) or (ii) shall be distributed to grantees in the same proportion as distributed in fiscal year 2019-2020.

(5)  Money appropriated for diagnosis and treatment for Cooley's anemia shall be distributed to grantees in the same proportion as distributed in fiscal year 2019-2020.

(6)  Money appropriated for hemophilia services shall be distributed to grantees in the same proportion as distributed in fiscal year 2019-2020.

(7)  Money appropriated for lupus programs shall be distributed proportionately to each entity that received funding in fiscal year 2018-2019.

(8)  From money appropriated for sickle cell anemia services, including camps for children with sickle cell anemia, the following shall apply:

(i)  Grantees which received amounts in fiscal year 2019-2020 shall receive an amount which is in the same proportion as distributed in fiscal year 2019-2020.

(ii)  $75,000 shall be distributed to a qualifying academic medical center located in a county of the third class with a population between 280,000 and 300,000 under the most recent Federal decennial census for expanded care of adult sickle cell disease.

(9)  Money appropriated for Lyme disease includes $1,000,000 for costs related to free tick testing for residents, including outreach and marketing and $1,000,000 for tick mitigation, both performed in conjunction with a university that is part of the State System of Higher Education.

(10)  Money appropriated for biotechnology research shall include allocations for regenerative medicine research, for regenerative medicine medical technology, for hepatitis and viral research, for drug research and clinical trials related to cancer, for genetic and molecular research for disease identification and eradication, for vaccine immune response diagnostics, for nanotechnology and for the commercialization of applied research.

(11)  Money appropriated for neurodegenerative disease research shall be used for grants to academic clinical medical centers conducting neurodegenerative disease research in this Commonwealth.

Section 1927.  Insurance Department (Reserved).

Section 1928.  Department of Labor and Industry.

The following apply to appropriations to the Department of Labor and Industry:

(1)  From money appropriated for Industry Partnerships, no less than the amount allocated in the 2014-2015 fiscal year shall be used for a work force development program that links veterans with employment in a home rule county that is a county of the second class A.

(2)  (Reserved).

Section 1929.  Department of Military and Veterans Affairs (Reserved).

Section 1930.  Department of Human Services.

The following apply to appropriations for the Department of Human Services:

(1)  From money appropriated for mental health services or from Federal money, $580,000 shall be used for the following:

(i)  The operation and maintenance of a network of web portals that provide comprehensive referral services, support and information relating to early intervention, prevention and support for individuals with mental health or substance abuse issues, county mental health offices, providers and others that provide mental and behavioral health treatment and related services.

(ii)  The expansion of the existing web portals, including services and resources for military veterans and their families, including comprehensive referral services for transitional, temporary and permanent housing, job placement and career counseling and other services for military veterans returning to civilian life.

(2)  From money appropriated for mental health services, $20,000,000 shall be used for county mental health services in addition to the county funding under the act of October 20, 1966 (3rd Sp. Sess., P.L.96, No.6), known as the Mental Health and Intellectual Disability Act of 1966, and the Human Services Block Grant Program under Article XIV-B of the Human Services Code. The following shall apply:

(i)  Money shall be allocated to individual counties and county local collaborative arrangements by using the most recent five-year estimate of the United States Census Bureau's American Community Survey, as available on the effective date of this subparagraph, in accordance with the following:

(A)  20% of the allocation shall be based on the percentage of a county's population.

(B)  40% of the allocation shall be based on the percentage of a county's population whose income level is above 125% of the Federal poverty level, but is not greater than 200% of the Federal poverty level.

(C)  40% of the allocation shall be based on the percentage of a county's uninsured population.

(ii)  County mental health services shall be provided and reported in accordance with the requirements of the Department of Human Services.

(iii)  Money received under this paragraph may not be included in the calculation of the allocation of money under the Human Services Block Grant Program.

(iv)  The provisions of this paragraph do not apply to behavioral health services appropriations.

(3)  Subject to the availability of Federal money and eligibility under Federal TANFBG rules, grantees who operated within the PA Workwear program in the prior fiscal year and who remain in operation shall be offered a grant for the fiscal year to continue service delivery in compliance with Federal TANFBG rules and reporting requirements under substantially similar terms as previous PA Workwear grants unless both parties agree to alternate terms. Nothing in this paragraph shall prohibit the Department of Human Services from offering a grant to a prospective PA Workwear provider to replace a prior grantee who chooses not to continue to operate in the program.

(4)  From money appropriated for medical assistance capitation, no less than the amount used in the 2014-2015 fiscal year shall be used for prevention and treatment of depression and its complications in older Pennsylvanians in a county of the second class.

(5)  The following shall apply to amounts appropriated for medical assistance fee-for-service:

(i)  Payments to hospitals for Community Access Fund grants shall be distributed under the formulas utilized for these grants in fiscal year 2014-2015. If the total funding available under this subparagraph is less than that available in fiscal year 2014-2015, payments shall be made on a pro rata basis.

(ii)  Amounts allocated from money appropriated for fee-for-service used for the SelectPlan for women's preventative health services shall be used for women's medical services, including noninvasive contraception supplies.

(iii)  Money appropriated for medical assistance payments for fee-for-service care, exclusive of inpatient services provided through capitation plans, shall include sufficient money for two separate All Patient Refined Diagnostic Related Group payments for inpatient acute care general hospital stays for:

(A)  normal newborn care; and

(B)  mothers' obstetrical delivery.

(iv)  No less than $405,000 shall be used for cleft palates and other craniofacial anomalies.

(v)  No less than $800,000 shall be distributed to a hospital for clinical ophthalmologic services located in a city of the first class.

(vi)  No less than $5,000,000 shall be distributed to acute care general hospitals impacted by the closure of a hospital in a city of the third class in a home rule county that is a county of the second class A, of which:

(A)  60% shall be distributed to an eligible hospital located in a township of the second class, in the same county as the closed hospital; and

(B)  40% shall be distributed to an eligible hospital located in contiguous boroughs in the same county as the closed hospital.

(vii)  No less than $2,000,000 shall be distributed to a university located in a city of the first class to research the impact of trauma-informed programs on community violence prevention and health disparities.

(viii)  No less than $3,000,000 shall be distributed to an enrolled outpatient therapy service provider located in a city of the second class in a county of the second class that provides behavioral health and medical rehabilitation pediatric outpatient services.

(ix)  No less than $1,250,000 shall be distributed to an acute care hospital in a city of the third class with a population between 14,000 and 15,000 according to the most recent Federal decennial census in a county of the third class with a population between 350,000 and 360,000 according to the most recent Federal decennial census.

(x)  The sum of $10,000,000 shall be used to make one-time inpatient supplemental payments to rural hospitals for the purpose of stabilization. The following shall apply to payments under this subparagraph:

(A)  The Department of Human Services, in consultation with the Hospital and Healthsystem Association and representatives of hospitals participating in the Pennsylvania Rural Health Model, shall develop a payment methodology for the supplemental payment. The payment methodology shall use a specified, audited MA-336 hospital cost report or other specified report identified by the Department of Human Services.

(B)  To be eligible for a payment under this subparagraph, a rural hospital shall meet the following criteria:

(I)  Be located in a county of the fourth, fifth, sixth, seventh or eighth class.

(II)  Be in operation and providing inpatient general acute care services as of the issuance date of a payment under this subparagraph.

(C)  A rural hospital that receives a payment under this subparagraph shall provide documentation to the Department of Human Services, in a manner and format specified by the Department of Human Services, for the purposes of an audit review, if requested.

(D)  The Department of Human Services shall seek Federal matching funds for the payments. To be eligible for Federal funds, a rural hospital shall meet Federal requirements.

(xi)  The sum of $1,000,000 shall be used to make a one-time payment to a provider in a city of the first class that, as of July 1, 2024, was enrolled in the medical assistance program as a federally qualified health center, with enrolled service locations in a federally designated service area in which there is no Federal grantee as of July 1, 2025.

(xii)  Subject to Federal approval, no less than $2,000,000 shall be distributed to a general acute care hospital in a city of the third class in a county of the third class as of the 2023-2024 fiscal year that operates campuses under the same license with acute care hospitals in a county of the sixth class. The general acute care hospital shall also be:

(A)  accredited as a Level 1 trauma center and be a member of the Children's Hospital Association, as determined by the department at the time of payment; and

(B)  a medical school.

(xiii)  The sum of $1,000,000 shall be distributed to a hospital that provides emergency department or hospital services in a home rule county that is a county of the second class A impacted by the closure of a hospital in a city of the third class located within the county.

(xiv)  The sum of $500,000 shall be distributed to a nonpublic inpatient behavioral health facility located in a county of the third class with a population of at least 325,000 but not more than 330,000 under the most recent Federal decennial census.

(6)  To supplement the money appropriated to the Department of Human Services for medical assistance for workers with disabilities, the following shall apply:

(i)  In addition to the monthly premium under section 1503(b)(1) of the act of June 26, 2001 (P.L.755, No.77), known as the Tobacco Settlement Act, the Department of Human Services may adjust the percentage of the premium upon approval of the Centers for Medicare and Medicaid Services as authorized under Federal requirements. Failure to make payments in accordance with this paragraph or section 1503(b)(1) of the Tobacco Settlement Act shall result in the termination of medical assistance coverage.

(ii)  The Department of Human Services shall request Federal approval from the Centers for Medicare and Medicaid Services to include the workers with job success category as an eligible category for Federal financial participation.

(7)  Qualifying physician practice plans that received money for fiscal year 2017-2018 shall not receive less than the State appropriation made available to those physician practice plans during fiscal year 2017-2018.

(8)  Federal or State money appropriated under the General Appropriation Act of 2025 in accordance with 35 Pa.C.S. § 8107.3 (relating to funding) not used to make payments to hospitals qualifying as Level III trauma centers or seeking accreditation as Level III trauma centers shall be used to make payments to hospitals qualifying as Levels I and II trauma centers.

(9)  Qualifying academic medical centers that received money for fiscal year 2017-2018 shall receive the same amount from the State appropriation made available to those academic medical centers during fiscal year 2017-2018.

(10)  Money appropriated for medical assistance transportation shall only be utilized as a payment of last resort for transportation for eligible medical assistance recipients.

(11)  From money appropriated for medical assistance long-term living:

(i)  No less than the amount distributed in the 2014-2015 fiscal year shall be distributed to a county nursing home located in a home rule county that is a county of the second class A with more than 725 beds and a Medicaid acuity at 0.79 as of August 1, 2015.

(ii)  No less than the amount used in the 2020-2021 fiscal year shall be distributed to a nonpublic nursing home located in a county of the first class with more than 395 beds and a Medicaid acuity at 1.06 as of August 1, 2022, to ensure access to necessary nursing care in that county.

(iii)  $2,500,000 shall be distributed to a nonpublic nursing home located in a county of the eighth class with more than 119 beds and a Medicaid acuity at 1.11 as of August 1, 2022, to ensure access to necessary nursing home care in that county.

(iv)  An additional $500,000 shall be paid in equal payments to nursing facilities which remain open as of the effective date of this subparagraph that qualified for supplemental ventilator care and tracheostomy care payments in fiscal year 2014-2015 with a percentage of medical assistance recipient residents who required medically necessary ventilator care or tracheostomy care greater than 90%.

(v)  (Reserved).

(vi)  An additional $250,000 shall be paid to a nursing facility located in a city of the first class which commenced operations after December 31, 2017, and which remains open as of the effective date of this subparagraph with a percentage of medical assistance recipient residents who required medically necessary ventilator care or tracheostomy care equal to or greater than 90% as of August 1, 2022.

(vii)  Subject to Federal approval of necessary amendments of the Title XIX State Plan, $21,000,000 is allocated for medical assistance day-one incentive payments to qualified nonpublic nursing facilities under methodology and criteria under section 443.1(7)(vi) of the Human Services Code. The Department of Human Services shall determine a nonpublic nursing facility's overall and medical assistance occupancy rate to qualify for a medical assistance day-one incentive payment for the fiscal year based on a nursing facility's resident day quarter ending December 31, 2019, for the first of two payments and a nursing facility's resident day quarter ending March 31, 2020, for the second of two payments.

(viii)  $1,500,000 shall be distributed to a nonpublic nursing home located in a home rule county that is a county of the second class A with more than 126 beds and a Medicaid acuity at 0.89 as of February 1, 2023, to ensure access to necessary nursing home care in that county.

(ix)  $1,500,000 shall be distributed to a nonprofit skilled nursing home located in a city of the second class A in a county of the third class with a Medicaid acuity at 1.11 as of February 1, 2023, to ensure access to necessary skilled nursing care in that county.

(12)  (Reserved).

(13)  (Reserved).

(14)  (Reserved).

(15)  From money appropriated for autism intervention and services:

(i)  $600,000 shall be allocated to a behavioral health facility located in a county of the fifth class with a population between 140,000 and 145,000 under the most recent Federal decennial census and shall be distributed to a health system that operates both a general acute care hospital and a behavioral health facility that has a center for autism and developmental disabilities located in a county of the fifth class with a population between 140,000 and 145,000 under the most recent Federal decennial census;

(ii)  $300,000 shall be allocated to an institution of higher education that provides autism education and diagnostic curriculum located in a city of the first class that operates a center for autism in a county of the second class A;

(iii)  $300,000 shall be allocated to an institution of higher education that provides autism education and diagnostic curriculum and is located in a county of the second class;

(iv)  no less than the amount distributed in the  2014-2015 fiscal year shall be allocated for programs to promote the health and fitness of persons with developmental disabilities located in a city of the first class; and

(v)  $600,000 shall be allocated for an entity that provides alternative educational services to individuals with autism and developmental disabilities in the county which was most recently designated as a county of the second class A.

(16)  Money appropriated for breast cancer screening may be used for women's medical services, including noninvasive contraception supplies.

(17)  From the appropriation for 2-1-1 Communications, $750,000 shall be allocated for a Statewide 2-1-1 System Grant Program.

(18)  The appropriation for services for the visually impaired shall include the following:

(i)  an allocation of $4,084,000 for a Statewide professional services provider association for the blind to provide training and supportive services for individuals who are blind and preschool vision screenings and eye safety education; and

(ii)  an allocation of $618,000 to provide specialized services and prevention of blindness services in cities of the first class.

(19)  The provisions of 8 U.S.C. §§ 1611 (relating to aliens who are not qualified aliens ineligible for Federal public benefits), 1612 (relating to limited eligibility of qualified aliens for certain Federal programs) and 1642 (relating to verification of eligibility for Federal public benefits) shall apply to payments and providers.

(20)  The Department of Human Services shall not add nonmedically necessary services to the medical assistance program that would result in the need for a supplemental appropriation without the approval of the General Assembly. Each proposed service shall be outlined in the Governor's Executive Budget or subsequent updates provided in writing to the General Assembly. No money appropriated to the department may be used to pay costs associated with adding nonmedically necessary services to the medical assistance program.

(21)  The following shall apply:

(i)  The Secretary of Human Services shall report on a quarterly basis in person 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 information documenting each of the following State appropriations and their associated Federal appropriations:

(A)  Medical Assistance - Capitation.

(B)  Medical Assistance - Fee-for-service.

(C)  Payment to Federal Government - Medicare Drug Program.

(D)  Medical Assistance - Workers with Disabilities.

(E)  Medical Assistance - Long-term living.

(F)  Medical Assistance - Community - HealthChoices.

(G)  Long-term Care Managed Care.

(H)  Intellectual Disabilities - Intermediate Care Facilities.

(I)  Intellectual Disabilities - Community Waiver Program.

(J)  Autism Intervention Service.

(K)  Early Intervention.

(ii)  The information included in a report under subparagraph (i) shall include the following:

(A)  Number of enrollees by month.

(B)  Average cost per enrollee.

(C)  Required payment amounts by appropriation during the fiscal year.

(D)  Revised estimate of the money needed by the appropriation to make required payments for the remainder of the fiscal year.

(iii)  If the revised estimates under subparagraph (ii)(D) indicate supplemental money may be necessary, the Secretary of Human Services shall provide a detailed explanation, in writing, of the reasons the revised estimates differ from the General Appropriation Act of 2025, or information provided previously under this paragraph.

Section 1931.  Department of Revenue (Reserved).

Section 1932.  Department of State (Reserved).

Section 1933.  Department of Transportation.

The following shall apply to appropriations for the Department of Transportation:

(1)  Beginning in the 2025-2026 fiscal year, the Secretary of Transportation or the secretary's designee shall, on a quarterly basis, meet in person with 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 to present a report on the status of the Motor License Fund and the Public Transportation Trust Fund, as follows:

(i)  For the Motor License Fund, the report shall provide a reconciliation from a budgetary basis to a cash basis and shall document actual and estimated expenditures, commitments and augmentations, including Federal money, by appropriation or executive authorization and by the fiscal year in which the appropriation or executive authorization was made.

(ii)  For the Public Transportation Trust Fund, the report shall provide a reconciliation from a budgetary basis to a cash basis and shall document actual and estimated expenditures, commitments and augmentations, including Federal money, by program, by the fiscal year in which the money was allocated for the program and by a local transportation organization.

(2)  (Reserved).

Section 1934.  Pennsylvania State Police (Reserved).

Section 1935.  Pennsylvania Emergency Management Agency.

The following shall apply to appropriations for the Pennsylvania Emergency Management Agency:

(1)  Money appropriated for search and rescue programs shall be used to support programs related to training working service dogs focusing on rescue and public safety.

(2)  Money appropriated for the State Fire Commissioner includes funding for a Statewide recruitment and retention coordinator and regional technical advisors to develop, implement and deliver recruitment and retention training programs and provide technical assistance to local fire organizations and local governments.

(3)  Money appropriated for State disaster assistance shall be used to provide disaster recovery assistance for emergencies and declared disasters. Amounts under this paragraph shall be used as follows:

(i)  Registration and disaster case management for impacted individuals, temporary housing for individuals, repair of residential property and immediate serious-needs assistance after an emergency or declared disaster. One-time serious-needs payments may be made to eligible households per disaster upon a verified damage assessment and in compliance with eligibility rules issued by the agency. A household shall not be eligible under this subparagraph if it received compensation from insurance or another funding source.

(ii)  Assistance to county and municipal governments to restore public infrastructure to predisaster condition, remove debris and take emergency protective measures that are not compensated by insurance or another funding source, in compliance with eligibility rules issued by the Pennsylvania Emergency Management Agency.

(iii)  Administrative costs of the Pennsylvania Emergency Management Agency directly related to administering this paragraph, in an amount not more than 2% of the appropriation.

(iv)  The Pennsylvania Emergency Management Agency shall develop guidelines to implement this paragraph and submit the guidelines to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin.

(4)  From money appropriated for urban search and rescue, up to $6,000,000 shall be distributed to the sponsoring agency of an urban search and rescue task force organized within a regional counterterrorism task force covering a county of the second class established under 35 Pa.C.S. Ch. 72 (relating to counterterrorism planning, preparedness and response). Money distributed under this paragraph shall be used for equipment, equipment storage and training necessary for the urban search and rescue task force to meet or exceed the minimum requirements of a Type 3 urban search and rescue task force as defined by the Federal Emergency Management Agency in the resource-typing definition contained in the National Incident Management System guidelines, document identification number 8-508-1262, published in September 2020.

Section 1936.  State-related universities (Reserved).

Section 1937.  State System of Higher Education.

The following shall apply to appropriations for the State System of Higher Education:

(1)  The sum of $5,000,000 is included in the appropriation, which shall be disbursed by the State System of Higher Education to the institution established under section 2002-A(a)(3) of the Public School Code of 1949, to develop and implement an enhanced transfer and workforce development initiative in partnership with a community college.

(2)  (Reserved).

Section 1938.  Pennsylvania Higher Education Assistance Agency.

The following shall apply to appropriations for the Pennsylvania Higher Education Assistance Agency:

(1)  The Pennsylvania Higher Education Assistance Agency shall allocate $500,000 from the Higher Education Assistance Fund for the Cheyney University Keystone Academy.

(2)  From money appropriated for payment of education assistance grants, the amount of $1,000,000 shall be allocated to a State-owned university located in Tioga County for merit scholarships.

(3)  From money appropriated for Pennsylvania Internship Program grants, funds may be used for internship and seminar programs.

Section 1939.  Thaddeus Stevens College of Technology.

The following shall apply to appropriations for the Thaddeus Stevens College of Technology:

(1)  From funds appropriated for Thaddeus Stevens College of Technology, the President of the college shall cause to be prepared and submitted to the Secretary of Education, the President pro tempore of the Senate, the Speaker of the House of Representatives, the Majority Leader and the Minority Leader of the Senate, the Majority Leader and the Minority Leader of the House of Representatives, the chairperson and minority chairperson of the Education Committee of the Senate and the chairperson and minority chairperson of the Education Committee of the House of Representatives a comprehensive report outlining the use of funds appropriated, to specifically include the strategies and use of funds to expand student enrollment.

(2)  (Reserved).

Section 1940.  Pennsylvania Historical and Museum Commission (Reserved).

Section 1941.  Environmental Hearing Board (Reserved).

Section 1942.  Health Care Cost Containment Council (Reserved).

Section 1943.  State Ethics Commission (Reserved).

Section 1944.  Commonwealth Financing Authority (Reserved).

SUBARTICLE C

STATE GOVERNMENT SUPPORT AGENCIES

Section 1951.  Legislative Reference Bureau (Reserved).

Section 1952.  Legislative Budget and Finance Committee (Reserved).

Section 1953.  Legislative Data Processing Committee (Reserved).

Section 1954.  Joint State Government Commission (Reserved).

Section 1955.  Local Government Commission (Reserved).

Section 1956.  Legislative Audit Advisory Commission (Reserved).

Section 1957.  Independent Regulatory Review Commission (Reserved).

Section 1958.  Capitol Preservation Committee (Reserved).

Section 1959.  Pennsylvania Commission on Sentencing (Reserved).

Section 1960.  Center for Rural Pennsylvania (Reserved).

Section 1961.  Commonwealth Mail Processing Center (Reserved).

Section 1962.  Legislative Reapportionment Commission (Reserved).

Section 1963.  Independent Fiscal Office (Reserved).

SUBARTICLE D

JUDICIAL DEPARTMENT

Section 1971.  Supreme Court (Reserved).

Section 1972.  Superior Court (Reserved).

Section 1973.  Commonwealth Court (Reserved).

Section 1974.  Courts of common pleas (Reserved).

Section 1975.  Community courts; magisterial district judges (Reserved).

Section 1976.  Philadelphia Municipal Court (Reserved).

Section 1977.  Judicial Conduct Board (Reserved).

Section 1978.  Court of Judicial Discipline (Reserved).

Section 1979.  Juror cost reimbursement (Reserved).

Section 1980.  County court reimbursement (Reserved).

SUBARTICLE E

GENERAL ASSEMBLY

(Reserved)

ARTICLE XIX-A

2025-2026 RESTRICTIONS ON APPROPRIATIONS

FOR FUNDS AND ACCOUNTS

Section 1901-A.  Applicability.

Except as specifically provided in this article, this article applies to the General Appropriation Act of 2025 and all other appropriation acts of 2025.

Section 1902-A.  Definitions.

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

"General Appropriation Act of 2025."  The act of November 12, 2025 (P.L.  , No.1A), known as the General Appropriation Act of 2025.

Section 1903-A.  State Lottery Fund.

The following apply:

(1)  Money appropriated for PENNCARE may not be utilized for administrative costs by the Department of Aging.

(2)  Money appropriated to the Department of Aging includes sufficient money for the operation of the Alzheimer's, Dementia and Related Disorders Office.

Section 1904-A.  Tobacco Settlement Fund (Reserved).

Section 1905-A.  Judicial Computer System Augmentation Account (Reserved).

Section 1906-A.  Emergency Medical Services Operating Fund (Reserved).

Section 1907-A.  The State Stores Fund (Reserved).

Section 1908-A.  Motor License Fund (Reserved).

Section 1909-A.  Aviation Restricted Account (Reserved).

Section 1910-A.  Hazardous Material Response Fund (Reserved).

Section 1911-A.  Milk Marketing Fund (Reserved).

Section 1912-A.  HOME Investment Trust Fund (Reserved).

Section 1913-A.  Tuition Account Guaranteed Savings Program Fund (Reserved).

Section 1914-A.  Banking Fund (Reserved).

Section 1915-A.  Firearm Records Check Fund (Reserved).

Section 1916-A.  Ben Franklin Technology Development Authority Fund (Reserved).

Section 1917-A.  Oil and Gas Lease Fund (Reserved).

Section 1918-A.  Home Improvement Account (Reserved).

Section 1919-A.  Cigarette Fire Safety and Firefighter Protection Act Enforcement Fund (Reserved).

Section 1920-A.  Insurance Regulation and Oversight Fund (Reserved).

Section 1921-A.  Pennsylvania Race Horse Development Restricted Receipts Account (Reserved).

Section 1922-A.  Justice Reinvestment Fund (Reserved).

Section 1923-A.  Multimodal Transportation Fund (Reserved).

Section 1924-A.  State Racing Fund (Reserved).

Section 1925-A.  ABLE Savings Program Fund (Reserved).

Section 1926-A.  Tourism Promotion Fund (Reserved).

Section 1927-A.  Enhanced Revenue Collection Account (Reserved).

Section 1928-A.  (Reserved).

Section 1929-A.  Opioid Settlement Restricted Account (Reserved).

Section 1930-A.  COVID-19 Response Restricted Account (Reserved).

Section 1931-A.  Pennsylvania Preferred® Trademark and Pennsylvania Preferred Organic® Trademark Licensing Fund.

Notwithstanding 3 Pa.C.S. § 4616 (relating to Pennsylvania Preferred® Trademark and Pennsylvania Preferred Organic® Trademark Licensing Fund), the Department of Agriculture may use money deposited into the Pennsylvania Preferred® Trademark and Pennsylvania Preferred Organic® Trademark Licensing Fund to promote one or more of the funding objectives under 3 Pa.C.S. § 4616(c) through the awarding of grants.

Section 1932-A.  Agricultural Conservation Easement Purchase Fund.

The following shall apply:

(1)  In addition to the uses provided in section 7.3 of the act of June 18, 1982 (P.L.549, No.159), entitled "An act providing for the administration of certain Commonwealth farmland within the Department of Agriculture," the Department of Agriculture may use up to a total of $165,000 in the Agricultural Conservation Easement Purchase Fund under section 7.1 of the act of June 18, 1982 (P.L.549, No.159), entitled "An act providing for the administration of certain Commonwealth farmland within the Department of Agriculture," to issue grants not to exceed $5,000 each for succession planning to ensure that agricultural operations continue on land subject to agricultural conservation easements. The Department of Agriculture, in consultation with the State Agricultural Land Preservation Board, shall establish eligibility criteria for awarding grants under this section.

(2)  (Reserved).

Section 1932.1-A.  Gaming Economic Development and Tourism Fund (Reserved).

Section 1933-A.  Restricted receipt accounts.

(a)  Authority.--The Secretary of the Budget may create restricted receipt accounts for the purpose of administering Federal grants only for the purposes designated in this section.

(b)  Department of Community and Economic Development.--The following restricted receipt accounts may be established for the Department of Community and Economic Development:

(1)  ARC Housing Revolving Loan Program.

(2)  Brownfields Revolving Loan Fund.

(c)  Department of Conservation and Natural Resources.--The following restricted receipt accounts may be established for the Department of Conservation and Natural Resources:

(1)  Federal Aid to volunteer fire companies.

(2)  Land and Water Conservation Fund Act of 1965 (Public Law 88-578, 16 U.S.C. § 460l-4 et seq.).

(3)  National Forest Reserve Allotment.

(d)  Department of Education.--The following restricted receipt accounts may be established for the Department of Education:

(1)  Education of the Disabled - Part C.

(2)  LSTA - Library Grants.

(3)  The Pennsylvania State University Federal Aid.

(4)  Emergency Immigration Education Assistance.

(5)  Education of the Disabled - Part D.

(6)  Homeless Adult Assistance Program.

(7)  Severely Handicapped.

(8)  Medical Assistance Reimbursements to Local Education Agencies.

(e)  Department of Environmental Protection.--The following restricted receipt accounts may be established for the Department of Environmental Protection:

(1)  Federal Water Resources Planning Act.

(2)  Flood Control Payments.

(3)  Soil and Water Conservation Act - Inventory of Programs.

(f)  Department of Drug and Alcohol Programs.--The following restricted receipt accounts may be established for the Department of Drug and Alcohol Programs:

(1)  Share Loan Program.

(2)  (Reserved).

(g)  Department of Transportation.--The following restricted receipt accounts may be established for the Department of Transportation:

(1)  Capital Assistance Elderly and Handicapped Programs.

(2)  Railroad Rehabilitation and Improvement Assistance.

(3)  Ridesharing/Van Pool Program - Acquisition.

(h)  Pennsylvania Emergency Management Agency.--The following restricted receipt accounts may be established for the Pennsylvania Emergency Management Agency:

(1)  Receipts from Federal Government - Disaster Relief - Disaster Relief Assistance to State and Political Subdivisions.

(2)  (Reserved).

(i)  Pennsylvania Historical and Museum Commission.--The following restricted receipt accounts may be established for the Pennsylvania Historical and Museum Commission:

(1)  Federal Grant - National Historic Preservation Act.

(2)  (Reserved).

(j)  Executive offices.--The following restricted receipt accounts may be established for the executive offices:

(1)  Retired Employees Medicare Part D.

(2)  Justice Assistance.

(3)  Juvenile Accountability Incentive.

(4)  Early Retiree Reinsurance Program.

Section 1934-A.  Fund transfers.

(a)  Transfer to Lottery Fund.--From money deposited into the Medical Marijuana Program Fund, $100,000,000 shall be transferred to the State Lottery Fund.

(b)  Transfer to Environmental Stewardship Fund.--From money received under the authority of Article III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, $3,016,000 shall be transferred to the Environmental Stewardship Fund.

(c)  Well Plugging Restricted Revenue Account.--For fiscal year 2025-2026, a total of $15,000,000 may be transferred to the Well Plugging Restricted Revenue Account from a combination of the following:

(1)  The Waste Transportation Safety Account.

(2)  The Alternative Fuels Incentive Fund.

(3)  The Used Tire Pile Remediation Account.

(4)  The Solid Waste Abatement Account.

(d)  Transfer to General Fund.--

(1)  During the 2025-2026 fiscal year, $670,000,000 shall be transferred from amounts available in special funds and restricted accounts to the General Fund. The transfers under this subsection shall be in accordance with the following:

(i)  The Secretary of the Budget shall transmit to the State Treasurer a list of amounts to be transferred from special funds and restricted accounts to the General Fund.

(ii)  No money may be transferred from the fund established under section 1701-A.

(iii)  Upon receipt of the list under subparagraph (i), the State Treasurer shall cause the transfers under this paragraph to occur.

(2)  (Reserved).

(e)  Transfer to the Tourism Promotion Fund.--From money in the State Gaming Fund, $50,000,000 shall be transferred to the Tourism Promotion Fund. Money transferred under this subsection is appropriated to the Department of Community and Economic Development to be used for the following:

(1)  No less than $10,000,000 to a designated tourism promotion agency located in a county of the second class that has been designated to manage and organize a professional sports league draft event.

(2)  Promotion and marketing of the 250th anniversary of the United States of America.

(3)  Planning, operation, safety, security or execution of events to celebrate the 250th anniversary of the United States of America, or the completion of infrastructure projects related to the celebration.

(4)  Planning, operation, safety, security or execution of events to occur in calendar year 2026 located within this Commonwealth.

Section 47.  Abrogations are as follows:

(1)  The General Assembly declares that the abrogation under paragraph (2) is necessary to budget implementation to ensure that revenue is available to meet the requirements of section 13 of Article VIII of the Constitution of Pennsylvania and to implement the act of November 12, 2025 (P.L.  , No.1A), known as the General Appropriation Act of 2025.

(2)  The provisions of 25 Pa. Code Ch. 145 Subch. E (relating to CO2 Budget Trading Program) are abrogated.

Section 48.  Repeals are as follows:

(1)  The General Assembly declares that the repeals under paragraphs (2) and (3) are necessary to effectuate the addition of sections 210-D, 211-D, 212-D, 213-D and 214-D of the act.

(2)  Article IX-A of the act of May 17, 1921 (P.L.789, No.285), known as the Insurance Department Act of 1921, is repealed.

(3)  Article XV-B of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, is repealed.

(3.1)  The General Assembly declares that the repeal under paragraph (3.2) is necessary to effectuate the addition of section 210-D of the act.

(3.2)  Section 731(c) of the act of March 20, 2002 (P.L.154, No.13), known as the Medical Care Availability and Reduction of Error (Mcare) Act, is repealed.

(4)  The General Assembly declares that the repeal under paragraph (5) is necessary to effectuate the addition of Article XVI-W.1.

(5)  Article XIX-G of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is repealed.

(6)  The General Assembly declares that the repeal under paragraph (7) is necessary to effectuate the addition of section 1752-A.2 of the act.

(7)  Section 1308(b)(4) of the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, is repealed insofar as it is inconsistent with the addition of section 1752-A.2 of the act.

(8)  The General Assembly declares that the repeal under paragraph (9) is necessary to effectuate the addition of section 1712-E(a)(7) of the act.

(9)  Section 902(c)(4) of the act of April 17, 2016 (P.L.84, No.16), known as the Medical Marijuana Act, is repealed insofar as it is inconsistent with the addition of section 1712-E(a)(7) of the act.

(10)  The General Assembly declares that the repeal under paragraph (11) is necessary to effectuate the amendment of section 1753.2-E(b.1) of the act.

(11)  Section 3(l) of the act of July 17, 2024 (P.L.813, No.68), known as the Solar for Schools Act, is repealed.

(12)  The General Assembly declares that the repeals under paragraph (13) are necessary to effectuate the addition of section 1799.11-E of the act.

(13)  The provisions of 42 Pa.C.S. §§ 9799.35(d) and 9799.69(d) are repealed insofar as they are inconsistent with the addition of section 1799.11-E of the act.

(14)  The General Assembly declares that the repeal under paragraph (15) is necessary to effectuate the addition of section 1919(6) of the act.

(15)  Section 4(1) of the act of October 11, 1984 (P.L.906, No.179), known as the Community Development Block Grant Entitlement Program for Nonurban Counties and Certain Other Municipalities, is repealed insofar as it inconsistent with the addition of section 1919(6) of the act.

(16)  The General Assembly declares that the repeal under paragraph (17) is necessary to effectuate the addition of section 1931-A of the act.

(17)  The provisions of 3 Pa.C.S. § 4616 are repealed insofar as they are inconsistent with the addition of section 1931-A of the act.

Section 49.  Continuation is as follows:

(1)  Orders, regulations, rules and decisions which were issued, promulgated or made by the Pennsylvania Professional Liability Joint Underwriting Association under the act of March 20, 2002 (P.L.154, No.13), known as the Medical Care Availability and Reduction of Error (Mcare) Act, in connection with Subchapter C of Chapter 7 of the Mcare Act, and which are in effect on the effective date of this section, shall remain applicable and in full force and effect until modified or terminated.

(2)  The following shall apply to administration and construction:

(i)  Activities initiated under Subchapter C of Chapter 7 of the Mcare Act shall continue and remain in full force and effect.

(ii)  Insurance policies issued and contracts entered into by the Pennsylvania Professional Liability Joint Underwriting Association prior to the effective date of this section are not affected nor impaired by the amendment of section 201-D, the amendment or addition of the definitions "board," health care provider," "Insurance Department Act," "Joint Underwriting Association" and "plan" of section 202-D and the amendment or addition of sections 207-D, 208-D, 209-D, 210-D, 211-D, 212-D, 213-D, 214-D, 215-D and 216-D.

(3)  The addition of Article XVI-V.1 of the act is a continuation of the former act of July 7, 2017 (P.L.285, No.14), known as the Rare Disease Advisory Council Act. Except as otherwise provided in Article XVI-V.1 of the act, all activities initiated under the Rare Disease Advisory Council Act shall continue and remain in full force and effect and may be completed under Article XVI-V.1 of the act. Orders, regulations, rules and decisions which were made under the Rare Disease Advisory Council Act and which are in effect on the effective date of this section shall remain in full force and effect until revoked, vacated or modified under Article XVI-V.1 of the act. Contracts, obligations and collective bargaining agreements entered into under the Rare Disease Advisory Council Act are not affected nor impaired by the addition of Article XVI-V.1 of the act.

(4)  The addition of Article XVI-W.1 is a continuation of Article XIX-G of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971. Except as otherwise provided in Article XVI-W.1, all activities, including tax credits, initiated under Article XIX-G of the Tax Reform Code of 1971 shall continue and remain in full force and effect and may be completed under Article XVI-W.1. Orders, regulations, rules and decisions which were made under Article XIX-G of the Tax Reform Code of 1971 and which are in effect on the effective date of this section shall remain in full force and effect until revoked, vacated or modified under Article XVI-W.1. Contracts and obligations entered into under Article XIX-G of the Tax Reform Code of 1971 are not affected nor impaired by the repeal of Article XIX-G of the Tax Reform Code of 1971.

Section 50.  The reenactment and amendment of section 1723-A.1(b) shall apply retroactively to June 30, 2025.

Section 51.  This act shall apply as follows:

(1)  The addition of section 216(a), (b), (c), (d), (e) and (f) of the act shall apply to taxable years beginning after December 31, 2024.

(2)  The addition of section 217 of the act shall apply retroactively to tax years beginning after December 31, 2024.

Section 52.  This act shall take effect as follows:

(1)  The following provisions shall take effect in 60 days:

(i)  The amendment, addition or repeal of sections 201-D, 202-D, 207-D, 210-D, 211-D, 212-D, 213-D, 214-D, 215-D and 216-D(b) of the act.

(ii)  Section 49(1) and (2) of this act.

(2)  The remainder of this act shall take effect immediately.

 

APPROVED--The 12th day of November, A.D. 2025.

 

JOSH SHAPIRO