HB 1364 — An Act providing for Public Transportation Trust Fund transfers and increases; establishing the Road and Bridge Project Fund and the Road and Bridge Project Sinking Fund; authorizing the Commonwealth Financing Authority to issue bonds for road and bridge projects; providing for allocation adjustment; establishing the Transportation Funding Advisory Commission; and imposing duties on the Department of Transportation.

(F) LIMITATION ON OBLIGATIONS.--BONDS ISSUED UNDER THE PROVISIONS OF THIS ACT SHALL NOT BE A DEBT OR LIABILITY OF THE COMMONWEALTH OR OF ANY OF ITS POLITICAL SUBDIVISIONS OTHER THAN THE AUTHORITY AND SHALL NOT CREATE OR CONSTITUTE ANY INDEBTEDNESS, LIABILITY OR OBLIGATION OF THE COMMONWEALTH OR OF ANY POLITICAL SUBDIVISION.

ALL BONDS SHALL BE PAYABLE SOLELY FROM REVENUES OR FUNDS PLEDGED OR AVAILABLE FOR THEIR PAYMENT AS AUTHORIZED IN THIS ACT, INCLUDING THE PROCEEDS OF ANY ISSUE OF BONDS.

EACH BOND SHALL CONTAIN ON ITS FACE A STATEMENT TO THE EFFECT THAT THE AUTHORITY IS OBLIGATED TO PAY THE PRINCIPAL THEREOF OR THE INTEREST THEREON ONLY FROM ITS REVENUES, RECEIPTS OR FUNDS PLEDGED OR AVAILABLE FOR THEIR PAYMENT AS AUTHORIZED IN THIS ACT, THAT NEITHER THE COMMONWEALTH NOR ANY POLITICAL SUBDIVISIONS ARE OBLIGATED TO PAY THE PRINCIPAL OR INTEREST AND THAT NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE COMMONWEALTH OR ANY POLITICAL SUBDIVISION IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR THE INTEREST ON THE BONDS.

20250HB1364PN1912 - 5 - (G) NATURE OF OBLIGATION AND PAYMENT.--EACH ISSUE OF BONDS MAY, IF IT IS DETERMINED BY THE AUTHORITY, BE GENERAL OBLIGATIONS OF THE AUTHORITY PAYABLE OUT OF ANY REVENUES, RECEIPTS OR FUNDS OF THE AUTHORITY, OR SPECIAL OBLIGATIONS PAYABLE OUT OF PARTICULAR REVENUES, RECEIPTS OR FUNDS, SUBJECT ONLY TO AGREEMENTS WITH THE HOLDERS OF THE BONDS.

BONDS MAY BE SECURED BY ONE OR MORE OF THE FOLLOWING:

(1) PLEDGES OF REVENUES AND OTHER RECEIPTS TO BE DERIVED FROM THE PAYMENT OF THE INTEREST ON AND ANY PRINCIPAL OF NOTES AND BONDS ISSUED BY ONE OR MORE GOVERNMENTAL UNITS AND PURCHASED BY THE AUTHORITY, AND ANY OTHER PAYMENT MADE TO THE AUTHORITY PURSUANT TO AGREEMENTS WITH ANY GOVERNMENTAL UNIT OR A PLEDGE OR ASSIGNMENT OF ANY NOTES AND BONDS OF ANY GOVERNMENTAL UNITS, AND THE RIGHTS AND INTEREST OF THE AUTHORITY THEREIN.

(2) PLEDGES OF LOAN PAYMENTS, RENTALS, OTHER REVENUES TO BE DERIVED FROM LOAN AGREEMENTS, LEASES OR OTHER CONTRACTUAL ARRANGEMENTS WITH ANY PERSON OR ENTITY, PUBLIC OR PRIVATE, OR A PLEDGED OR ASSIGNMENT OF ANY OF THE LOAN AGREEMENTS, LEASES OR OTHER CONTRACTUAL ARRANGEMENTS, AND THE RIGHTS AND INTEREST OF THE AUTHORITY THEREIN.

(3) PLEDGES OF GRANTS, SUBSIDIES, CONTRIBUTIONS, APPROPRIATIONS OR OTHER PAYMENTS TO BE RECEIVED FROM THE FEDERAL GOVERNMENT OR ANY INSTRUMENTALITY THEREOF OR FROM THE COMMONWEALTH, ANY COMMONWEALTH AGENCY OR OTHER GOVERNMENTAL UNIT.

(4) PLEDGES OF ALL MONEYS, FUNDS, ACCOUNTS, SECURITIES AND OTHER FUNDS, INCLUDING THE PROCEEDS OF THE BONDS.

(5) MORTGAGES AND SECURITY INTERESTS COVERING ALL OR PART OF ANY PROJECT OR OTHER PROPERTY OF ANY PERSON OR 20250HB1364PN1912 - 6 - ENTITY, REAL OR PERSONAL, THEN OWNED OR THEREAFTER TO BE ACQUIRED, OR A PLEDGE OR ASSIGNMENT OF MORTGAGES AND SECURITY INTEREST MADE OR GRANTED TO THE AUTHORITY BY ANY PERSON OR ENTITY, AND THE RIGHTS AND INTERESTS OF THE AUTHORITY THEREIN.

(H) EXEMPTION FROM TAXATION.--ALL BONDS AND NOTES ISSUED UNDER THE PROVISIONS OF THIS SECTION SHALL BE EXEMPT FROM TAXATION FOR STATE AND LOCAL PURPOSES.

Section 4 6.

<-- Notwithstanding 74 Pa.C.S.

SECTIONSection 7.5.

ALLOCATION ADJUSTMENT.

<-- NOTWITHSTANDING SECTION 3 AND 74 PA.C.S.

§ 1506(C)(1) (RELATING TO FUND), BEGINNING JUNE 30, 2028, 7.9% OF THE AMOUNT COLLECTED UNDER ARTICLE II OF THE TAX REFORM CODE SHALL BE DEPOSITED INTO THE PUBLIC TRANSPORTATION TRUST FUND ANNUALLY BY THE 20TH DAY OF EACH MONTH FOR THE PRECEDING MONTH.

SECTION 8.

TRANSPORTATION FUNDING ADVISORY COMMISSION.

(A) ESTABLISHMENT AND PURPOSE.--THE TRANSPORTATION FUNDING ADVISORY COMMISSION IS ESTABLISHED WITHIN THE DEPARTMENT FOR THE PURPOSE OF DEVELOPING A COMPREHENSIVE, STRATEGIC PROPOSAL FOR ADDRESSING THE TRANSPORTATION FUNDING NEEDS OF THIS COMMONWEALTH.

(B) COMPOSITION.--THE COMMISSION SHALL CONSIST OF THE FOLLOWING MEMBERS:

20250HB1364PN1912 - 7 - (1) THE SECRETARY, WHO SHALL SERVE AS THE CHAIRPERSON OF THE COMMISSION.

(2) A MINIMUM OF 30 INDIVIDUALS AND A MAXIMUM OF 40 INDIVIDUALS WHO ARE APPOINTED BY, AND SERVING AT THE PLEASURE OF, THE GOVERNOR AND WHO REPRESENT, AMONG OTHER THINGS, THE INTERESTS OF ALL TRANSPORTATION MODES, THE ENVIRONMENTAL, ENERGY AND INDUSTRY SECTORS, THE COMMONWEALTH AND LOCAL GOVERNMENTS.

(3) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE SENATE.

(4) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(5) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE TRANSPORTATION COMMITTEE OF THE SENATE.

(6) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE TRANSPORTATION COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(C) TERMS OF MEMBERSHIP.-- (1) THE MEMBERS OF THE COMMISSION UNDER SUBSECTION (B) (2) SHALL SERVE FROM THE DATE OF THEIR APPOINTMENT UNTIL JANUARY 1, 2026, OR THEIR REMOVAL FROM THE COMMISSION BY THE GOVERNOR, WHICHEVER OCCURS FIRST.

(2) THE GOVERNOR MAY FILL VACANCIES THAT OCCUR IN THE COMMISSION AND MAY REMOVE ANY MEMBER FROM THE COMMISSION.

(D) COMPENSATION AND REIMBURSEMENT.-- (1) MEMBERS OF THE COMMISSION SHALL NOT RECEIVE COMPENSATION FOR THEIR SERVICE AS MEMBERS OF THE COMMISSION.

(2) NONGOVERNMENT MEMBERS OF THE COMMISSION SHALL BE REIMBURSED FOR TRAVEL AND RELATED EXPENSES IN ACCORDANCE WITH 4 PA.

CODE CH.

40 (RELATING TO TRAVEL AND SUBSISTENCE).

(E) STAFFING.--THE DEPARTMENT SHALL PROVIDE ADMINISTRATIVE 20250HB1364PN1912 - 8 - STAFF RESOURCES TO SUPPORT THE COMMISSION.

(F) COOPERATION BY STATE AGENCIES.--ALL AGENCIES UNDER THE GOVERNOR'S JURISDICTION SHALL COOPERATE WITH AND PROVIDE ASSISTANCE AND SUPPORT AS NEEDED BY THE COMMISSION TO EFFECTIVELY CARRY OUT THE FUNCTIONS OF THE COMMISSION.

(G) MEETINGS.-- (1) THE CHAIRPERSON OF THE COMMISSION SHALL CONVENE THE FIRST MEETING OF THE COMMISSION NO LATER THAN AUGUST 1, 2025.

(2) SUBSEQUENT MEETINGS OF THE COMMISSION SHALL BE DETERMINED BY THE MEMBERS OF THE COMMISSION.

(3) A SIMPLE MAJORITY OF THE MEMBERS OF THE COMMISSION SHALL CONSTITUTE A QUORUM TO CONDUCT OFFICIAL BUSINESS.

(H) POWERS AND DUTIES.--THE COMMISSION SHALL:

(1) STUDY AND PREPARE A COMPREHENSIVE LIST OF POTENTIAL REVENUE SOURCES AVAILABLE FOR CURRENT AND FUTURE FUNDING OF TRANSPORTATION IN THIS COMMONWEALTH FOR ALL MODES OF TRANSPORTATION.

THE FUNDING SOURCES MUST BE RELIABLE, DEDICATED, INFLATION SENSITIVE AND ADAPTIVE TO CHANGING ENVIRONMENTAL FACTORS.

(2) STUDY AND PREPARE A COMPREHENSIVE LIST OF POTENTIAL COST SAVINGS AS IT RELATES TO THE CURRENT AND FUTURE ADMINISTRATION AND OPERATION OF TRANSPORTATION SERVICES AND INFRASTRUCTURE IN THIS COMMONWEALTH FOR ALL MODES OF TRANSPORTATION.

THE COST SAVINGS MAY INCLUDE THE USE OF PUBLIC-PRIVATE PARTNERSHIPS AND OPPORTUNITIES TO FURTHER DEVELOP TRANSPORTATION SERVICES AND INFRASTRUCTURE IN PARTNERSHIP WITH THE PRIVATE SECTOR.

(3) PREPARE A COMPREHENSIVE, STRATEGIC COMMONWEALTH TRANSPORTATION FUNDING PROPOSAL.

(4) PROVIDE REPORTS IN ACCORDANCE WITH SUBSECTION (I).

20250HB1364PN1912 - 9 - (5) ADOPT RULES OF PROCEDURE CONSISTENT WITH THE PROVISIONS OF THIS SECTION.

(I) REPORTS.-- (1) THE COMMISSION SHALL PROVIDE INTERIM REPORTS AND RECOMMENDATIONS, AS DETERMINED TO BE APPROPRIATE BY THE CHAIRPERSON OF THE COMMISSION.

(2) NO LATER THAN JANUARY 1, 2026, THE COMMISSION SHALL ISSUE A FINAL REPORT ON THE ACTIVITIES OF THE COMMISSION, AS DETERMINED TO BE APPROPRIATE BY THE CHAIRPERSON OF THE COMMISSION.

(3) EACH INTERIM REPORT OR FINAL REPORT UNDER THIS SUBSECTION SHALL BE SUBMITTED TO THE GOVERNOR AND THE GENERAL ASSEMBLY.

(J) EXPIRATION.--THIS SECTION SHALL EXPIRE JANUARY 1, 2026.

Section 5 9.

<-- This act shall take effect immediately.

20250HB1364PN191220250HB1364PN1556 - 102 -