HB 416 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, 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.

(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 , 2025 (P.L.

, NO.

), KNOWN AS THE GENERAL APPROPRIATION ACT OF 2025.

20250HB0416PN2576 - 4 - The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 303(a.7)(2)(i) of the act of March 4, <-- 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended by adding a clause to read:

20250HB0416PN0392SECTION -1. 2 -

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.

20250HB0416PN2576 - 5 - "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 20250HB0416PN2576 - 6 - 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 20250HB0416PN2576 - 7 - 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 20250HB0416PN2576 - 8 - 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, 20250HB0416PN2576 - 9 - 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 20250HB0416PN2576 - 10 - 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).

20250HB0416PN2576 - 11 - (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 20250HB0416PN2576 - 12 - 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.--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 20250HB0416PN2576 - 13 - 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 20250HB0416PN2576 - 14 - 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 20250HB0416PN2576 - 15 - 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:

20250HB0416PN2576 - 16 - "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 20250HB0416PN2576 - 17 - 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 20250HB0416PN2576 - 18 - 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 20250HB0416PN2576 - 19 - 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 20250HB0416PN2576 - 20 - 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 20250HB0416PN2576 - 21 - 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.

20250HB0416PN2576 - 22 - (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).

20250HB0416PN2576 - 23 - (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, 2023 (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).

20250HB0416PN2576 - 24 - "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 20250HB0416PN2576 - 25 - 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 20250HB0416PN2576 - 26 - 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 20250HB0416PN2576 - 27 - 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 20250HB0416PN2576 - 28 - 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:

20250HB0416PN2576 - 29 - 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 20250HB0416PN2576 - 30 - 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 20250HB0416PN2576 - 31 - 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 20250HB0416PN2576 - 32 - UNDER SECTION 5(A) OF THE HOME IMPROVEMENT CONSUMER PROTECTION ACT SHALL BE $100.

THIS SUBSECTION 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 20250HB0416PN2576 - 33 - 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 20250HB0416PN2576 - 34 - 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, 20250HB0416PN2576 - 35 - 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 20250HB0416PN2576 - 36 - 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.

20250HB0416PN2576 - 37 - (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 20250HB0416PN2576 - 38 - 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 20250HB0416PN2576 - 39 - 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.