Bill > HB416

Introduced Session

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An <-- act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in personal income tax, further providing for classes of income. 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 , 2025 (P.L. , NO. ), KNOWN AS THE GENERAL APPROPRIATION ACT OF 2025.

AI Summary

Committee Categories

Tarik Khan (D)*,  Tim Brennan (D),  Tina Davis (D),  Dan Frankel (D),  Bob Freeman (D),  Roni Green (D),  Liz Hanbidge (D),  Keith Harris (D),  Carol Hill-Evans (D),  Danielle Otten (D),  Chris Pielli (D),  Steve Samuelson (D),  Mike Schlossberg (D),  Jared Solomon (D),  Joseph Webster (D), 

Act No. 45 of 2025 (on 11/12/2025)

Official Document