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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY MURT, DiGIROLAMO, GERBER, BARBIN, K. BOYLE, BRENNAN, CALTAGIRONE, CARROLL, COHEN, D. COSTA, CREIGHTON, CURRY, DALEY, DAVIDSON, DAVIS, DePASQUALE, J. EVANS, FLECK, FREEMAN, GIBBONS, GOODMAN, HARPER, HENNESSEY, HESS, HORNAMAN, JOSEPHS, W. KELLER, KILLION, KIRKLAND, KORTZ, KULA, MAHONEY, MICOZZIE, MIRABITO, MURPHY, D. O'BRIEN, M. O'BRIEN, O'NEILL, PASHINSKI, PAYTON, PETRI, READSHAW, REICHLEY, SANTARSIERO, SANTONI, SCAVELLO, K. SMITH, STURLA, TAYLOR, VITALI, WAGNER, WATERS, WATSON AND WILLIAMS, NOVEMBER 9, 2011 |
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| REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 9, 2011 |
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| AN ACT |
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1 | Amending Title 72 (Taxation and Fiscal Affairs) of the |
2 | Pennsylvania Consolidated Statutes, providing for a natural |
3 | gas severance tax; establishing accounts and funds; and |
4 | providing for use of revenue. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Title 72 of the Pennsylvania Consolidated |
8 | Statutes is amended by adding a chapter to read: |
9 | CHAPTER 15 |
10 | NATURAL GAS DRILLING TAX AND INVESTMENT |
11 | Subchapter |
12 | A. Preliminary Provisions |
13 | B. Tax |
14 | C. Accounts and Fund |
15 | D. Transfer, Distribution and Allocation |
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1 | SUBCHAPTER A |
2 | PRELIMINARY PROVISIONS |
3 | Sec. |
4 | 1501. Scope of chapter. |
5 | 1502. Definitions. |
6 | § 1501. Scope of chapter. |
7 | This chapter relates to a natural gas drilling tax and |
8 | investment. |
9 | § 1502. Definitions. |
10 | The following words and phrases when used in this chapter |
11 | shall have the meanings given to them in this section unless the |
12 | context clearly indicates otherwise: |
13 | "Account." The Natural Gas Severance Tax Account. |
14 | "Accredited laboratory." A facility engaged in the testing |
15 | and calibration of scientific measurement devices and certified |
16 | by the Department of Environmental Protection as having met the |
17 | Department of Revenue's standards for accreditation. |
18 | "Association." A partnership, limited partnership or any |
19 | other form of unincorporated enterprise owned or conducted by |
20 | two or more persons. |
21 | "Bi-fuel vehicle." A vehicle that operates on compressed |
22 | natural gas and gasoline or compressed natural gas and diesel |
23 | fuel and has a minimum fueling capacity of five gasoline gallon |
24 | equivalents of compressed natural gas. The term includes |
25 | original equipment manufacturer and retrofitted vehicles. |
26 | "Coal bed methane." Gas that can be produced from coal beds, |
27 | coal seams, mined-out areas or gob wells. |
28 | "Community integration." Living in a home or setting of an |
29 | individual's own choice where: |
30 | (1) a similarly situated individual without a disability |
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1 | would live; |
2 | (2) the individual is afforded opportunities to develop |
3 | relationships with other individuals who are not paid staff |
4 | and experience inclusion in the economic, political, social, |
5 | cultural and educational mainstream of society; |
6 | (3) the individual can exercise rights freely; and |
7 | (4) the individual can make decisions to live an |
8 | everyday life. |
9 | The term does not include an institution or other large |
10 | congregate setting. |
11 | "Compressed natural gas vehicle." A self-propelled, |
12 | dedicated vehicle operating on compressed natural gas designed |
13 | for transporting persons or property. |
14 | "Corporation." A corporation, joint stock association, |
15 | limited liability company, business trust or any other |
16 | incorporated enterprise organized under the laws of the United |
17 | States, this Commonwealth or any other state, territory or |
18 | foreign country or dependency. |
19 | "Critical waiting list." A waiting list for individuals who |
20 | will need community services from the Department of Public |
21 | Welfare in: |
22 | (1) more than six months; but |
23 | (2) less than two years. |
24 | "Dedicated compressed natural gas vehicle." A vehicle that |
25 | is produced by an original equipment manufacturer or a small |
26 | volume manufacturer that operates on 90% or more compressed |
27 | natural gas fuel and 10% or less on gasoline or 90% or more on |
28 | compressed natural gas fuel and 10% or less on diesel fuel. |
29 | "Department." The Department of Revenue of the Commonwealth. |
30 | "Emergency waiting list." A waiting list for individuals who |
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1 | will need community services from the Department of Public |
2 | Welfare within the next six months. |
3 | "Intellectual disability." A disability as defined by the |
4 | American Association of Intellectual and Developmental |
5 | Disabilities. |
6 | "Large mass transit authority." A mass transit authority |
7 | located in this Commonwealth that exceeds 245,000 revenue |
8 | vehicle hours for two consecutive years. |
9 | "Mass transit authority." An operator of regularly scheduled |
10 | transportation that is available to the general public and is |
11 | provided according to published schedules along designated |
12 | published routes with specified stopping points for the taking |
13 | on and discharging of passengers. The term does not include |
14 | exclusive ride taxi services, charter or sightseeing services, |
15 | nonpublic transportation or school bus or limousine services. |
16 | "Meter." A device to measure the passage of volumes of gases |
17 | or liquids past a certain point. |
18 | "Municipality." A city, borough, incorporated town or |
19 | township. |
20 | "Natural gas." A fossil fuel consisting of a mixture of |
21 | hydrocarbon gases, primarily methane, possibly including ethane, |
22 | propane, butane, pentane, carbon dioxide, oxygen, nitrogen and |
23 | hydrogen sulfide and other gas species. The term includes |
24 | natural gas from oil fields known as associated gas or casing |
25 | head gas, natural gas fields known as nonassociated gas, coal |
26 | beds, shale beds and other formations. The term does not include |
27 | coal bed methane. |
28 | "Natural gas well." A bore hole drilled or being drilled for |
29 | the purpose of or to be used for producing natural gas from |
30 | subsurface geological formations. |
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1 | "Nonproducing well." A natural gas well that does not |
2 | produce natural gas in excess of 60,000 cubic feet per day. |
3 | "Operator." A person who engages or continues within this |
4 | Commonwealth in the business of severing natural gas for sale, |
5 | profit or commercial use. The term does not include a person who |
6 | severs natural gas from a storage field. |
7 | "Person." A natural person or a corporation, fiduciary, |
8 | association or other entity, including the Commonwealth, its |
9 | political subdivisions, instrumentalities and authorities. If |
10 | the term is used in a provision prescribing and imposing a |
11 | penalty or imposing a fine or imprisonment, or both, the term |
12 | shall include a member of an association and an officer of a |
13 | corporation. |
14 | "Prioritization of Urgency of Need for Services." A system |
15 | administered by the Office of Developmental Disabilities which |
16 | employs a standardized survey, using consistent definitions and |
17 | data collection methods, to determine the number and |
18 | characteristics of individuals on the critical waiting list and |
19 | the emergency waiting list. |
20 | "Producing well." An unconventional natural gas well that |
21 | produces natural gas in excess of 60,000 cubic feet of natural |
22 | gas per day. |
23 | "Rate." The rate under section 1511(c) (relating to |
24 | imposition of tax). |
25 | "Reporting period." A calendar month in which natural gas is |
26 | severed. |
27 | "Secretary." The Secretary of Revenue of the Commonwealth. |
28 | "Sever." To extract or otherwise remove natural gas from the |
29 | soil or water of this Commonwealth. |
30 | "Severance." The extraction or other removal of natural gas |
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1 | from the soil or water of this Commonwealth. |
2 | "Severing." Extracting or otherwise removing natural gas |
3 | from the soil or water of this Commonwealth. |
4 | "Small mass transit authority." A mass transit authority |
5 | located in this Commonwealth that does not exceed 245,000 |
6 | revenue vehicle hours for two consecutive years. |
7 | "Storage field." A natural formation or other site that is |
8 | used to store natural gas that did not originate from and has |
9 | been injected into the formation or site. |
10 | "Tax." The natural gas severance tax imposed under this |
11 | chapter. |
12 | "Tax rate adjustment index." The amount calculated under |
13 | section 1511(c) (relating to imposition of tax) by which the |
14 | rate of the tax imposed under section 1511(c) is adjusted |
15 | annually. |
16 | "Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2), |
17 | known as the Tax Reform Code of 1971. |
18 | "Taxpayer." A person, including a well operator who is |
19 | subject to the tax imposed by this chapter. |
20 | "Unconventional gas well." A bore hole drilled or being |
21 | drilled for the purpose of or to be used for producing oil or |
22 | gas from a geologic formation existing below the base of the Elk |
23 | Sandstone or its geologic equivalent stratigraphic interval |
24 | where oil or gas generally cannot be produced at economic flow |
25 | rates or in economic volumes except by wells stimulated by |
26 | hydraulic fracture treatments, a horizontal well bore or by |
27 | using multilateral well bores or other techniques to expose more |
28 | of the formation of the well bore. |
29 | "Unit." A thousand cubic feet of natural gas measured at a |
30 | wellhead at a temperature of 60 degrees Fahrenheit and an |
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1 | absolute pressure of 14.73 pounds per square inch in accordance |
2 | with American Gas Association Standards and according to Boyle's |
3 | Law for the measurement of gas under varying pressures with |
4 | deviations as follows: |
5 | (1) The average absolute atmospheric pressure shall be |
6 | assumed to be 14.4 pounds to the square inch, regardless of |
7 | elevation or location of point of delivery above sea level or |
8 | variations in atmospheric pressure from time to time. |
9 | (2) The temperature of the gas passing a wellhead meter |
10 | shall be determined by the continuous use of a recording |
11 | thermometer installed to properly record the temperature of |
12 | gas flowing through the wellhead meter. The arithmetic |
13 | average of the temperature recorded each 24-hour day shall be |
14 | used in computing gas volumes. If a recording thermometer is |
15 | not installed or is installed and not operating properly, an |
16 | average flowing temperature of 60 degrees Fahrenheit shall be |
17 | used in computing gas volume. |
18 | (3) The specific gravity of the gas shall be determined |
19 | by annual tests made by the use of an Edwards or Acme gravity |
20 | balance, or at intervals as found necessary in practice. |
21 | Specific gravity determinations shall be used in computing |
22 | gas volumes. |
23 | (4) The deviation of the natural gas from Boyle's Law |
24 | shall be determined by annual tests or at other shorter |
25 | intervals as found necessary in practice. The apparatus and |
26 | method used in making the test shall be in accordance with |
27 | recommendations of the National Bureau of Standards or Report |
28 | No. 3 of the Gas Measurement Committee of the American Gas |
29 | Association, or amendments to the recommendations or report. |
30 | The results of the tests shall be used in computing the |
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1 | volume of gas delivered under this chapter. |
2 | "Wellhead meter." A meter placed at a producing or |
3 | nonproducing site to measure the volume of natural gas severed |
4 | for which a wellhead meter certification has been issued. |
5 | "Wellhead meter certification." A report issued by an |
6 | accredited laboratory certifying the accuracy of a wellhead |
7 | meter. |
8 | SUBCHAPTER B |
9 | TAX |
10 | Sec. |
11 | 1511. Imposition of tax. |
12 | 1512. Return and payment. |
13 | 1513. Natural gas severance tax registration. |
14 | 1514. Assessments. |
15 | 1515. Time for assessment. |
16 | 1516. Extension of assessment period. |
17 | 1517. Reassessments. |
18 | 1518. Interest. |
19 | 1519. Penalties. |
20 | 1520. Criminal acts. |
21 | 1521. Abatement of additions or penalties. |
22 | 1522. Bulk and auction sales. |
23 | 1523. Collection upon failure to request reassessment, review |
24 | or appeal. |
25 | 1524. Tax liens. |
26 | 1525. Tax suit reciprocity. |
27 | 1526. Service. |
28 | 1527. Refunds. |
29 | 1528. Refund petition. |
30 | 1529. Rules and regulations. |
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1 | 1530. Recordkeeping and meters. |
2 | 1531. Examinations. |
3 | 1532. Unauthorized disclosure. |
4 | 1533. Cooperation with other governments. |
5 | 1534. Bonds. |
6 | § 1511. Imposition of tax. |
7 | (a) Establishment.--Except as provided under subsection (b), |
8 | a natural gas severance tax shall be levied on every operator |
9 | that severs natural gas from a producing unconventional gas well |
10 | in this Commonwealth. |
11 | (b) Exemptions.--The tax shall not be imposed on the |
12 | following: |
13 | (1) Units severed, sold and delivered by an operator at |
14 | or within five miles of the producing unconventional gas well |
15 | for the processing or manufacture of tangible personal |
16 | property, as defined under section 201 of the Tax Reform |
17 | Code, within this Commonwealth. |
18 | (2) Units provided free of charge to the owner of the |
19 | surface under which the gas is severed, if the surface owner |
20 | is the end user of the gas. |
21 | (c) Rate.--The tax imposed under subsection (a) shall be |
22 | 4.9% of the gross value of units severed at the wellhead during |
23 | a reporting period thereafter for each producing well. |
24 | (d) Application of rate determinations.--This section shall |
25 | affect only the determination of the rate of the tax on the |
26 | severance units of natural gas imposed under this section. This |
27 | section is not intended, nor shall be construed, to affect any |
28 | other determination including the determination of royalty due |
29 | under mineral leases. Notwithstanding any other provision of |
30 | law, the tax imposed under this chapter shall not reduce any |
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1 | royalty payments due under mineral leases and the producer may |
2 | not recover any portion of the tax paid from the royalty owner |
3 | through other means of deduction or reallocation, |
4 | notwithstanding any provision in the lease, contract or |
5 | agreement. |
6 | § 1512. Return and payment. |
7 | (a) Requirement.--An operator shall file a return with the |
8 | department, on a form prescribed by the department, which shall |
9 | include the number of natural gas units severed by the operator |
10 | for the reporting period and the amount of tax due. |
11 | (b) Filing.--The return required under subsection (a) shall |
12 | be filed with the department within 30 days following the end of |
13 | a reporting period. |
14 | (c) Deadline.--The tax shall be due on the day the return is |
15 | required to be filed and becomes delinquent if not remitted to |
16 | the department by that date. |
17 | § 1513. Natural gas severance tax registration. |
18 | (a) Application.--Before an operator severs natural gas in |
19 | this Commonwealth, the operator shall apply to the department |
20 | for a natural gas severance tax registration certificate. |
21 | (b) Application fee.--The department may charge an |
22 | application fee to cover the administrative costs associated |
23 | with the application and registration process. If the department |
24 | charges a fee, it may not issue a registration certificate until |
25 | the operator has paid the application fee. |
26 | (c) Declaration.-- |
27 | (1) The operator shall include in its application a |
28 | declaration of all producing wells and nonproducing wells |
29 | used by the operator for the severance of natural gas. The |
30 | declaration shall include copies of wellhead meter |
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1 | certifications for each site. |
2 | (2) The operator shall update the declaration when: |
3 | (i) the operator adds or removes a producing well or |
4 | nonproducing well in this Commonwealth; |
5 | (ii) there is a change in the status of a producing |
6 | well or nonproducing well; or |
7 | (iii) the operator uses a different accredited |
8 | laboratory to issue a wellhead meter certification. |
9 | (3) The operator shall update the declaration within 30 |
10 | days after a calendar month in which a change to the |
11 | declaration occurs. |
12 | (d) Issuance.-- |
13 | (1) Except as provided under subsection (e), after the |
14 | receipt of an application, the department shall issue a |
15 | registration certificate under subsection (a). The |
16 | registration certificate shall be nonassignable. |
17 | (2) All registrants shall renew their registration |
18 | certificates and wellhead meter certifications on a staggered |
19 | renewal system established by the department. |
20 | (3) After the initial staggered renewal period, a |
21 | registration certificate or a wellhead meter certification |
22 | issued shall be valid for a period of five years. |
23 | (e) Refusal, suspension or revocation.-- |
24 | (1) The department may refuse to issue, suspend or |
25 | revoke a registration certificate if the applicant or |
26 | registrant has not filed required State tax reports and paid |
27 | State taxes not subject to a timely perfected administrative |
28 | or judicial appeal or subject to a duly authorized deferred |
29 | payment plan. |
30 | (2) The department shall notify the applicant or |
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1 | registrant of any refusal, suspension or revocation. The |
2 | notice shall contain a statement that the refusal, suspension |
3 | or revocation may be made public. The notice shall be made by |
4 | first class mail. |
5 | (3) An applicant or registrant aggrieved by the |
6 | determination of the department may file an appeal under the |
7 | provisions for administrative appeals provided under the Tax |
8 | Reform Code. |
9 | (4) If a suspension or revocation is appealed, the |
10 | registration certificate shall remain valid pending a final |
11 | outcome of the appeals process. |
12 | (5) Notwithstanding sections 274, 353(f), 408(b), 603, |
13 | 702, 802, 904 and 1102 of the Tax Reform Code or any other |
14 | provision of law, if no appeal is taken or if an appeal is |
15 | taken and denied at the conclusion of the appeal process, the |
16 | department may disclose, by publication or otherwise, the |
17 | identity of an operator and the fact that the operator's |
18 | registration certificate has been refused, suspended or |
19 | revoked under this subsection. Disclosure may include the |
20 | basis for refusal, suspension or revocation. |
21 | (f) Violation.-- |
22 | (1) A person severing natural gas in this Commonwealth |
23 | without holding a valid registration certificate under |
24 | subsection (d) commits a summary offense and shall, upon |
25 | conviction, be sentenced to pay a fine of not less than $300 |
26 | nor more than $1,500. Each day in which a person commits a |
27 | summary offense under this section shall be deemed to be a |
28 | separate violation. |
29 | (2) If the person convicted defaults in the payment of |
30 | the fine, the person shall be sentenced to a term of |
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1 | imprisonment of not less than five days nor more than 30 |
2 | days. |
3 | (3) The penalties imposed under this subsection shall be |
4 | in addition to any other penalties imposed under this |
5 | chapter. |
6 | (4) For purposes of this subsection, the severing of |
7 | natural gas during any calendar day shall constitute a |
8 | separate violation. |
9 | (5) The secretary may designate employees of the |
10 | department to enforce this subsection. The employees shall |
11 | exhibit proof of and be within the scope of the designation |
12 | when instituting proceedings as provided by the Pennsylvania |
13 | Rules of Criminal Procedure. |
14 | (g) Failure to obtain registration certificate.--Failure to |
15 | obtain or hold a valid registration certificate shall not |
16 | relieve a person from liability for the tax. |
17 | § 1514. Assessments. |
18 | (a) Authorization and requirement.--The department shall |
19 | make the inquiries, determinations and assessments of the tax, |
20 | including interest, additions and penalties imposed under this |
21 | chapter. |
22 | (b) Notice.--The notice of assessment and demand for payment |
23 | shall be mailed to the taxpayer. The notice shall state the |
24 | basis of the assessment. The department shall send the notice of |
25 | assessment to the taxpayer by regular mail or, if the assessment |
26 | increases the taxpayer's tax liability by at least $300, to its |
27 | registered address by certified mail. |
28 | § 1515. Time for assessment. |
29 | (a) Requirement.-- |
30 | (1) An assessment provided under section 1514 (relating |
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1 | to assessments) shall be made within three years after the |
2 | date when the return provided for under section 1512 |
3 | (relating to return and payment) is filed or the end of the |
4 | year in which the tax liability arises, whichever shall occur |
5 | last. |
6 | (2) For the purposes of this subsection and subsection |
7 | (b), a return filed before the last day prescribed for the |
8 | filing period shall be considered as filed on the last day. |
9 | (b) Exception.--If the taxpayer underpays the correct amount |
10 | of the tax due by 25% or more, the tax may be assessed within |
11 | six years after the date the return was filed. |
12 | (c) Intent to evade.--If no return is filed or if the |
13 | taxpayer files a false or fraudulent return with intent to evade |
14 | the tax, the assessment may be made at any time. |
15 | (d) Erroneous credit or refund.--Within three years of the |
16 | granting of a refund or credit or within the period in which an |
17 | assessment or reassessment may have been issued by the |
18 | department for the taxable period for which the refund was |
19 | granted, whichever period shall last occur, the department may |
20 | issue an assessment to recover a refund or credit made or |
21 | allowed erroneously. |
22 | § 1516. Extension of assessment period. |
23 | Notwithstanding any other provision of this chapter, the |
24 | assessment period may be extended if a taxpayer has provided |
25 | written consent before the expiration of the period provided |
26 | under section 1515 (relating to time for assessment) for a tax |
27 | assessment. The amount of tax due may be assessed at any time |
28 | within the extended period. The period may be extended further |
29 | by subsequent written consents made before the expiration of the |
30 | extended period. |
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1 | § 1517. Reassessments. |
2 | A taxpayer against whom an assessment is made may petition |
3 | the department for a reassessment under Article XXVII of the Tax |
4 | Reform Code. |
5 | § 1518. Interest. |
6 | The department shall assess interest on any delinquent tax at |
7 | the rate prescribed under section 806 of the act of April 9, |
8 | 1929 (P.L.343, No.176), known as The Fiscal Code. |
9 | § 1519. Penalties. |
10 | The department shall enforce the following penalties: |
11 | (1) The penalty against an operator for severing natural |
12 | gas without a natural gas severance tax registration |
13 | certificate shall be $1 for every unit severed without a |
14 | valid registration certificate. The department may assess the |
15 | penalty separately from or in conjunction with any assessment |
16 | of the natural gas tax. |
17 | (2) The penalty against an operator for failure to |
18 | timely file a return as required under section 1512 (relating |
19 | to return and payment) or for failure to timely pay the tax |
20 | as required by section 1512(c) shall be 5% of the tax |
21 | liability to be reported on the return for each day beyond |
22 | the due date that the return is not filed or tax is not paid. |
23 | (3) In addition to the penalty prescribed under |
24 | paragraph (2), the penalty against an operator for a willful |
25 | failure to file a timely return shall be 200% of the tax |
26 | liability required to be reported on the return. |
27 | § 1520. Criminal acts. |
28 | (a) Fraudulent return.--Any person, with intent to defraud |
29 | the Commonwealth, who willfully makes or causes to be made a |
30 | return required under this chapter which is false commits a |
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1 | misdemeanor of the third degree and shall, upon conviction, be |
2 | sentenced to pay a fine of not more than $2,000 or to |
3 | imprisonment for not more than three years, or both. |
4 | (b) Other crimes.-- |
5 | (1) Except as provided under subsection (a), a person |
6 | commits a misdemeanor of the third degree and shall, upon |
7 | conviction, be sentenced to pay a fine of not more than |
8 | $1,000 and costs of prosecution or to imprisonment for not |
9 | more than one year, or both, for any of the following: |
10 | (i) Willfully failing to timely remit the tax to the |
11 | department. |
12 | (ii) Willfully failing or neglecting to timely file |
13 | a return or report required under this chapter. |
14 | (iii) Refusing to timely pay a tax, penalty or |
15 | interest imposed or provided for under this chapter. |
16 | (iv) Willfully failing to preserve its books, papers |
17 | and records as directed by the department. |
18 | (v) Refusing to permit the department or its |
19 | authorized agents to examine its books, records or |
20 | papers. |
21 | (vi) Knowingly making any incomplete, false or |
22 | fraudulent return or report. |
23 | (vii) Preventing or attempting to prevent the full |
24 | disclosure of the amount of tax due. |
25 | (viii) Providing any person with a false statement |
26 | as to the payment of the tax with respect to any |
27 | pertinent facts. |
28 | (ix) Making, uttering or issuing a false or |
29 | fraudulent statement. |
30 | (2) The penalties imposed under this section shall be in |
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1 | addition to other penalties imposed under this chapter. |
2 | § 1521. Abatement of additions or penalties. |
3 | Upon the filing of a petition for reassessment or a petition |
4 | for refund by a taxpayer as provided under this chapter, |
5 | additions or penalties imposed upon the taxpayer under this |
6 | chapter may be waived or abated in whole or in part if the |
7 | petitioner establishes that the petitioner acted in good faith, |
8 | without negligence and with no intent to defraud. |
9 | § 1522. Bulk and auction sales. |
10 | A person who sells or causes to be sold at auction or sells |
11 | or transfers in bulk 51% or more of a stock of goods, wares or |
12 | merchandise of any kind, fixtures, machinery, equipment, |
13 | buildings or real estate involved in a business for which the |
14 | person holds a registration certificate or is required to obtain |
15 | a registration certificate under this chapter shall be subject |
16 | to section 1403 of the act of April 9, 1929 (P.L.343, No.176), |
17 | known as The Fiscal Code. |
18 | § 1523. Collection upon failure to request reassessment, review |
19 | or appeal. |
20 | (a) Power of department.--The department may collect the |
21 | tax: |
22 | (1) If an assessment of the tax is not paid within 30 |
23 | days and no petition for reassessment has been filed, after |
24 | notice to the taxpayer. |
25 | (2) Within 60 days of a reassessment, if no petition for |
26 | review has been filed. |
27 | (3) If no appeal has been made, within 30 days of: |
28 | (i) the Board of Finance and Revenue's decision of a |
29 | petition for review; or |
30 | (ii) the expiration of the Board of Finance and |
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1 | Revenue's time for acting upon a petition for review. |
2 | (4) In all cases of judicial sales, receiverships, |
3 | assignments or bankruptcies. |
4 | (b) Limitation of defenses.--In a case for the collection of |
5 | taxes under subsection (a), the taxpayer against whom the taxes |
6 | were assessed may not set up a ground of defense that might have |
7 | been determined by the department, the Board of Finance and |
8 | Revenue or the courts, except that the defense of failure of the |
9 | department to mail notice of assessment or reassessment to the |
10 | taxpayer and the defense of payment of assessment or |
11 | reassessment may be raised in proceedings for collection by a |
12 | motion to stay the proceedings. |
13 | § 1524. Tax liens. |
14 | (a) Lien imposed.-- |
15 | (1) If a taxpayer neglects or refuses to pay the tax for |
16 | which the taxpayer is liable under this chapter after demand, |
17 | the amount, including interest, addition or penalty, together |
18 | with additional costs that may accrue, shall be a lien in |
19 | favor of the Commonwealth upon the real and personal property |
20 | of the taxpayer but only after the lien has been entered and |
21 | docketed of record by the prothonotary of the county where |
22 | the property is situated. |
23 | (2) The department may, at any time, transmit to the |
24 | prothonotaries of the respective counties certified copies of |
25 | all liens imposed by this section. |
26 | (3) The following shall apply: |
27 | (i) The prothonotary who receives the lien shall |
28 | enter and docket the same of record to the office of the |
29 | prothonotary. The lien shall be indexed as judgments are |
30 | indexed. |
|
1 | (ii) No prothonotary shall require as a condition |
2 | precedent to the entry of the lien the payment of costs |
3 | incidental to its entry. |
4 | (b) Priority of lien and effect on judicial sale.--Except |
5 | for the costs of the sale and the writ upon which the sale was |
6 | made and real estate taxes and municipal claims against the |
7 | property, a lien imposed under this section shall: |
8 | (1) Have priority from the date of its recording and |
9 | shall be fully paid and satisfied out of the proceeds of any |
10 | judicial sale of property subject to the lien before any |
11 | other obligation, judgment, claim, lien or estate to which |
12 | the property may subsequently become subject. |
13 | (2) Be subordinate to mortgages and other liens existing |
14 | and duly recorded or entered of record prior to the recording |
15 | of the lien. |
16 | (c) No discharge by sale on junior lien.-- |
17 | (1) In the case of a judicial sale of property subject |
18 | to a lien imposed under this section, upon a lien or claim |
19 | over which the lien imposed under this section has priority, |
20 | the sale shall discharge the lien imposed under this section |
21 | to the extent only that the proceeds are applied to its |
22 | payment, and the lien shall continue in full force and effect |
23 | as to the balance remaining unpaid. |
24 | (2) There shall be no inquisition or condemnation upon |
25 | any judicial sale of real estate made by the Commonwealth |
26 | under this chapter. The lien shall continue as provided under |
27 | the act of April 9, 1929 (P.L.343, No.176), known as The |
28 | Fiscal Code, and a writ of execution may directly issue upon |
29 | the lien without the issuance and prosecution to judgment of |
30 | a writ of scire facias, subject to the following: |
|
1 | (i) Not less than ten days before issuance of any |
2 | execution on the lien, notice of the filing and the |
3 | effect of the lien shall be sent by registered mail to |
4 | the taxpayer at its last known post office address. |
5 | (ii) The lien shall have no effect upon any stock of |
6 | goods, wares or merchandise regularly sold or leased in |
7 | the ordinary course of business by the taxpayer against |
8 | whom the lien has been entered, unless and until a writ |
9 | of execution has been issued and a levy made upon the |
10 | stock of goods, wares and merchandise. |
11 | (d) Violation by prothonotary.--A willful failure of a |
12 | prothonotary to carry out any duty imposed on the prothonotary |
13 | under this section shall be a misdemeanor of the third degree |
14 | and, upon conviction, the prothonotary shall be sentenced to pay |
15 | a fine of not more than $1,000 and costs of prosecution or to |
16 | imprisonment for not more than one year, or both. |
17 | (e) Priority.-- |
18 | (1) Except as provided under this chapter, the |
19 | distribution, voluntary or compulsory, in receivership, |
20 | bankruptcy or otherwise of the property or estate of any |
21 | person, all taxes which are due and unpaid and are not |
22 | collectible under section 225 of the Tax Reform Code shall be |
23 | paid from the first money available for distribution in |
24 | priority to all other claims and liens, except as the laws of |
25 | the United States may give priority to a claim to the Federal |
26 | Government. |
27 | (2) A person required to administer or distribute the |
28 | property or estate who violates this section shall be |
29 | personally liable for the taxes which are accrued and unpaid |
30 | and chargeable against the person whose property or estate is |
|
1 | being administered or distributed. |
2 | (f) Construction.--Subject to the limitations contained |
3 | under this chapter as to the assessment of taxes, nothing |
4 | contained under this section shall be construed to restrict, |
5 | prohibit or limit the use by the department in collecting taxes |
6 | due and payable of another remedy or procedure available at law |
7 | or equity for the collection of debts. |
8 | § 1525. Tax suit reciprocity. |
9 | The courts of this Commonwealth shall recognize and enforce |
10 | liabilities for natural gas severance or extraction taxes |
11 | lawfully imposed by any other state, if the other state |
12 | recognizes and enforces the tax imposed under this chapter. |
13 | § 1526. Service. |
14 | (a) Rule.-- |
15 | (1) Service shall be made upon the operator. |
16 | (2) If service cannot be made upon the operator as |
17 | provided under law, service may be made upon the Secretary of |
18 | the Commonwealth. |
19 | (3) If service is made under paragraph (2), a copy of |
20 | the process or notice shall be personally served upon any |
21 | agent or representative of the operator who may be found |
22 | within this Commonwealth or, if no agent or representative |
23 | may be found, a copy of the process or notice shall be sent |
24 | by registered mail to the operator at the last known address |
25 | of its principal place of business, home office or residence. |
26 | (b) Appointment of Secretary of the Commonwealth.--An |
27 | operator shall be deemed to have appointed the Secretary of the |
28 | Commonwealth its agent for the acceptance of service of process |
29 | or notice in a proceeding for the enforcement of the civil |
30 | provisions of this chapter and service made upon the Secretary |
|
1 | of the Commonwealth as agent shall be of the same legal force |
2 | and validity as if the service had been personally made upon the |
3 | operator. |
4 | § 1527. Refunds. |
5 | (a) Duty.--Under Article XXVII of the Tax Reform Code, the |
6 | department shall refund all taxes, interest and penalties paid |
7 | to the Commonwealth under this chapter to which the Commonwealth |
8 | is not rightfully entitled. |
9 | (b) Payment of refunds.-- |
10 | (1) Except as provided under paragraph (2), the refunds |
11 | under subsection (a) shall be paid to the person or the |
12 | person's heirs, successors, assigns or other personal |
13 | representatives who paid the tax. |
14 | (2) No refund shall be made under this section regarding |
15 | a payment made by reason of an assessment if a taxpayer has |
16 | filed a petition for reassessment under section 2702 of the |
17 | Tax Reform Code to the extent the petition is adverse to the |
18 | taxpayer by a decision which is no longer subject to further |
19 | review or appeal. |
20 | (c) Construction.--Nothing under this chapter shall be |
21 | construed to prohibit a taxpayer who has filed a timely petition |
22 | for reassessment from amending it to a petition for refund where |
23 | the petitioner paid the tax assessed. |
24 | § 1528. Refund petition. |
25 | (a) General rule.--Except as provided under subsection (b), |
26 | the refund or credit of tax, interest or penalty provided for |
27 | under section 1527 (relating to refunds) shall be made if the |
28 | person who has paid the tax files a petition for refund with the |
29 | department under Article XXVII of the Tax Reform Code within the |
30 | time limits of section 3003.1 of the Tax Reform Code. |
|
1 | (b) Natural gas severance tax.-- |
2 | (1) A refund or credit of tax, interest or penalty paid |
3 | as a result of an assessment made by the department under |
4 | section 1513 (relating to natural gas severance tax |
5 | registration) shall be made if the person who has paid the |
6 | tax files with the department a petition for a refund under |
7 | Article XXVII of the Tax Reform Code within the time limits |
8 | of section 3003.1 of the Tax Reform Code. |
9 | (2) The filing of a petition for a refund under this |
10 | subsection shall not affect the abatement of interest, |
11 | additions or penalties to which the person may be entitled by |
12 | reason of the person's payment of the assessment. |
13 | § 1529. Rules and regulations. |
14 | The department shall enforce this chapter and may prescribe, |
15 | adopt, promulgate and enforce rules and regulations not |
16 | inconsistent with this chapter relating to the administration |
17 | and enforcement of this chapter and the collection of taxes, |
18 | penalties and interest imposed under this chapter. The |
19 | department may prescribe the extent to which any of the rules |
20 | and regulations shall be applied without retroactive effect. |
21 | § 1530. Recordkeeping and meters. |
22 | (a) Duty to maintain records.-- |
23 | (1) Every person liable for the tax or for the |
24 | collection of the tax shall keep records, including those |
25 | enumerated under subsection (b), render statements, make |
26 | returns and comply with the rules and regulations as the |
27 | department may prescribe regarding matters pertinent to the |
28 | person's business. |
29 | (2) Whenever it is necessary, the department may require |
30 | a person, by notice served upon the person or by regulations, |
|
1 | to make returns, render statements or keep records as the |
2 | department deems sufficient to show whether or not the person |
3 | is liable to pay the tax. |
4 | (b) Records.--Every person liable for the tax shall maintain |
5 | the following records: |
6 | (1) Wellhead meter charts for each reporting period and |
7 | the meter calibration and maintenance records. If turbine |
8 | meters are in use, the maintenance records shall be made |
9 | available to the department upon request. |
10 | (2) Records, statements and other instruments furnished |
11 | to an operator by a person to whom the operator delivers for |
12 | sale, transport or delivery of natural gas. |
13 | (3) Records, statements and other instruments as the |
14 | department may prescribe by regulation. |
15 | (c) Records of nonresidents.-- |
16 | (1) A nonresident who does business in this Commonwealth |
17 | as an operator shall keep adequate records of the business |
18 | and of the tax due as a result. The records shall be retained |
19 | within this Commonwealth unless retention outside this |
20 | Commonwealth is authorized by the department. |
21 | (2) The department may require a taxpayer who desires to |
22 | retain records outside this Commonwealth to assume reasonable |
23 | out-of-State audit expenses. |
24 | (d) Keeping of separate records.-- |
25 | (1) An operator who is engaged in another business which |
26 | does not involve the severing of natural gas taxable under |
27 | this chapter shall keep separate books and records of the |
28 | businesses showing the taxable severing of natural gas under |
29 | this chapter separately from other business activities not |
30 | taxable under this chapter. |
|
1 | (2) If any person fails to keep separate books and |
2 | records under paragraph (1), the person shall be liable for a |
3 | penalty equaling 100% of tax due for the period when separate |
4 | records were not maintained. |
5 | (e) Type of meters required.--An operator shall provide for |
6 | and maintain, according to industry standards, a discrete |
7 | wellhead meter where natural gas is severed. Any wellhead meter |
8 | installed after the effective date of this section must be a |
9 | digital meter. |
10 | § 1531. Examinations. |
11 | (a) Powers of department.--The department or any of its |
12 | authorized agents may: |
13 | (1) Examine the books, papers and records of any |
14 | taxpayer in order to verify the accuracy and completeness of |
15 | any return made or, if no return was made, to ascertain and |
16 | assess the tax. |
17 | (2) Require the preservation of all books, papers and |
18 | records for any period deemed proper by it but not to exceed |
19 | three years from the end of the calendar year to which the |
20 | records relate. |
21 | (3) Examine any person, under oath, concerning the |
22 | taxable severing of natural gas by any taxpayer or concerning |
23 | any other matter relating to the enforcement or |
24 | administration of this chapter. The department may compel the |
25 | production of books, papers and records and the attendance of |
26 | all persons whether as parties or witnesses whom it believes |
27 | to have knowledge of relevant matters to accomplish its |
28 | powers under this paragraph. The procedure for the hearings |
29 | or examinations shall be the same as provided under the act |
30 | of April 9, 1929 (P.L.343, No. 176), known as The Fiscal |
|
1 | Code. |
2 | (b) Duties of taxpayers.--Every taxpayer shall provide the |
3 | department or its agent with the means, facilities and |
4 | opportunity for examinations and investigations under this |
5 | section. |
6 | § 1532. Unauthorized disclosure. |
7 | (a) General rule.--Any information gained by the department |
8 | as a result of any return, examination, investigation, hearing |
9 | or verification required or authorized under this chapter shall |
10 | be confidential except for official purposes and except in |
11 | accordance with proper judicial order or as otherwise provided |
12 | by law. |
13 | (b) Penalty for violation.--Any person unlawfully divulging |
14 | the information commits a misdemeanor of the third degree and |
15 | shall, upon conviction, be sentenced to pay a fine of not more |
16 | than $1,000 and costs of prosecution or to a term of |
17 | imprisonment for not more than one year, or both. |
18 | § 1533. Cooperation with other governments. |
19 | (a) General rule.--Notwithstanding section 1525 (relating to |
20 | tax suit reciprocity), the department may do any of the |
21 | following with regard to the Commissioner's Office of the |
22 | Internal Revenue Service, the proper officer of any state or the |
23 | authorized representative of either of them: |
24 | (1) Permit the inspection of the tax returns of any |
25 | taxpayer. |
26 | (2) Furnish an abstract of the return of a taxpayer. |
27 | (3) Supply information concerning any item contained in |
28 | a return or disclosed by the report of an examination or |
29 | investigation of the return of a taxpayer. |
30 | (b) Applicability.--Subsection (a) shall apply if the laws |
|
1 | of the United States or another state grant substantially |
2 | similar privileges to the proper officer of the Commonwealth |
3 | charged with the administration of this chapter. |
4 | § 1534. Bonds. |
5 | (a) Taxpayer to file bond.-- |
6 | (1) The department may require the following entities |
7 | subject to the tax to file a bond issued by a surety company |
8 | authorized to do business in this Commonwealth and approved |
9 | by the Insurance Commissioner as to solvency and |
10 | responsibility, in amounts the department may fix, to secure |
11 | the payment of any tax or penalties due or which may become |
12 | due if the department deems it necessary to protect the |
13 | revenues obtained under this chapter: |
14 | (i) A nonresident natural person. |
15 | (ii) A foreign corporation, association, fiduciary |
16 | or other entity not authorized to do business within this |
17 | Commonwealth or not having an established place of |
18 | business in this Commonwealth. |
19 | (2) The department may require a bond of a person |
20 | petitioning the department for reassessment in the case of an |
21 | assessment over $500 or if, in the department's opinion, the |
22 | ultimate collection is in jeopardy. |
23 | (3) For a period of three years, the department may |
24 | require a bond of any person who has, on three or more |
25 | occasions within a 12-month period, either filed a return or |
26 | made payment to the department more than 30 days late. |
27 | (4) The following apply: |
28 | (i) If the department determines a taxpayer must |
29 | file a bond, the department shall give notice to the |
30 | taxpayer specifying the amount of the bond required. |
|
1 | (ii) The taxpayer shall file the bond within five |
2 | days after notice is given by the department unless, |
3 | within five days of receiving the notice, the taxpayer |
4 | requests in writing a hearing before the secretary or the |
5 | secretary's representative. |
6 | (iii) At the hearing under subparagraph (ii), the |
7 | necessity, propriety and amount of the bond shall be |
8 | determined by the secretary or the secretary's |
9 | representative. |
10 | (iv) The determination under subparagraph (iii) |
11 | shall be final and the taxpayer shall comply with the |
12 | determination within 15 days after notice is mailed to |
13 | the taxpayer. |
14 | (b) Securities in lieu of bond.-- |
15 | (1) In lieu of the bond required under this section, |
16 | securities approved by the department or cash in a prescribed |
17 | amount may be deposited. |
18 | (2) The securities or cash shall be kept in the custody |
19 | of the department. The department may apply the securities or |
20 | cash to the tax and interest or penalties due without notice |
21 | to the depositor. The securities may be sold by the |
22 | department to pay the tax, interest or penalties, or any |
23 | combination of tax, interest or penalties, due at public or |
24 | private sale upon five days' written notice to the depositor. |
25 | (c) Failure to file bond.-- |
26 | (1) The department may file a lien under section 1524 |
27 | (relating to tax liens) against a taxpayer who fails to file |
28 | a bond when required to do so under this section. |
29 | (2) All funds received upon execution of the judgment on |
30 | the lien shall be refunded to the taxpayer with 3% interest, |
|
1 | if the department makes a final determination that the |
2 | taxpayer does not owe any payment to the department. |
3 | SUBCHAPTER C |
4 | ACCOUNTS AND FUNDS |
5 | Sec. |
6 | 1541. Natural Gas Severance Tax Account. |
7 | 1542. Local Government Services Account. |
8 | 1543. Keystone Strategic Economic Development Fund. |
9 | 1544. Community Services Integration Fund. |
10 | 1545. Emergency Addiction Treatment Fund. |
11 | 1546. Keystone Transit Program. |
12 | 1547. Clean Transit Program. |
13 | 1548. Shale Alliance for Energy Research. |
14 | § 1541. Natural Gas Severance Tax Account. |
15 | (a) Establishment.--The Natural Gas Severance Tax Account is |
16 | established as a restricted account within the General Fund. |
17 | (b) Source of funds.--The proceeds of the tax and penalties |
18 | and interest imposed under this chapter, less the amounts |
19 | appropriated under Subchapter D (relating to transfer, |
20 | distribution and allocation), shall be deposited into the |
21 | account. |
22 | (c) Use.--The money in the account may only be used in |
23 | accordance with Subchapter D. |
24 | (d) Nonlapse.--The money in the fund is continuously |
25 | appropriated into the fund. This appropriation shall not lapse |
26 | at the end of any fiscal year. |
27 | § 1542. Local Government Services Account. |
28 | The Local Government Services Account is established as a |
29 | restricted account within the General Fund. |
30 | § 1543. Keystone Strategic Economic Development Fund. |
|
1 | (a) Establishment.--The Keystone Strategic Economic |
2 | Development Fund is established as a restricted fund within the |
3 | General Fund. |
4 | (b) Purposes.--The Department of Community and Economic |
5 | Development shall use the fund for the following purposes: |
6 | (1) Create and develop an Industry Partnerships for High |
7 | Performance and Innovation Program that parallels the |
8 | Industry Partnerships Program in the Department of Labor and |
9 | Industry. The program shall award grants on a competitive |
10 | basis and create a public-private advisory board that shall |
11 | provide criteria for the awarding of grants and general |
12 | guidance. Eligible applicants for funds shall include |
13 | industry associations, economic development organizations, |
14 | chambers of commerce, industry supply chain organizations and |
15 | labor-management groups. Priority for awards shall be given |
16 | to proposed projects which demonstrate the greatest potential |
17 | to create jobs, economic output, productivity and income in |
18 | this Commonwealth. A portion of the funding shall be provided |
19 | to initiatives which increase the spin-off benefits of |
20 | unconventional gas well drilling, including assisting |
21 | manufacturers and other businesses switch to natural gas and |
22 | assisting groups of manufacturers that want to jointly |
23 | develop new industrial or other uses for natural gas by- |
24 | products. |
25 | (2) To be used by the Partnership for Regional Economic |
26 | Performance Program in the Department of Community and |
27 | Economic Development to provide all of the following: |
28 | (i) Grants to consortia of economic development |
29 | service providers. |
30 | (ii) Funding for cost-effective infrastructure |
|
1 | improvement. |
2 | (3) To target assistance to the Marcellus Shale and |
3 | other unconventional gas producing regions for economic |
4 | diversification. This funding shall be used to promote |
5 | economic diversification in the regions of this Commonwealth |
6 | which produce natural gas from the Marcellus Shale and other |
7 | unconventional gas formations. |
8 | (c) Sources.--The following are the sources of the fund: |
9 | (1) Money transferred under section 1560(b) (relating to |
10 | Keystone Strategic Economic Development Fund deposit). |
11 | (2) Appropriations. |
12 | (3) Return on the money in the fund. |
13 | (d) Nonlapse.--The money in the fund is continuously |
14 | appropriated into the fund. This appropriation shall not lapse |
15 | at the end of any fiscal year. |
16 | § 1544. Community Services Integration Fund. |
17 | (a) Establishment.--The Community Services Integration Fund |
18 | is established as a restricted fund within the General Fund. |
19 | (b) Purposes.-- |
20 | (1) The Department of Public Welfare shall use money in |
21 | the fund for the following purposes: |
22 | (i) To provide community services for adults with |
23 | intellectual disabilities who are considered to have |
24 | either an emergency need or critical need according to |
25 | the Prioritization of Urgency of Need for Service. |
26 | (ii) To supplant existing Commonwealth funds when: |
27 | (A) there are no adults with an emergency need |
28 | or critical need waiting for community services; and |
29 | (B) there are no adults living in an |
30 | intermediate care facility which is licensed to serve |
|
1 | more than four individuals who have not |
2 | affirmatively, in an informed manner, decided to |
3 | remain in such a facility. |
4 | (iii) To assist individuals living in the facilities |
5 | transition from the facility into a home with community |
6 | services. |
7 | (2) The fund shall not be used to support an individual |
8 | in a Commonwealth-operated or privately operated intermediate |
9 | care facility which is licensed to serve more than four |
10 | individuals. |
11 | (3) No more than 1.5% of the money under this subsection |
12 | shall be used for administration. |
13 | (c) Sources.--The following are the sources of the fund: |
14 | (1) Money deposited under section 1564(b) (relating to |
15 | Community Services Integration Fund). |
16 | (2) Appropriations. |
17 | (3) Return on money in the fund. |
18 | § 1545. Emergency Addiction Treatment Fund. |
19 | (a) Establishment.--The Emergency Addiction Treatment Fund |
20 | is established as a separate fund. |
21 | (b) Purposes and priorities.-- |
22 | (1) The Department of Drug and Alcohol Programs shall |
23 | use the fund to assist individuals in need of: |
24 | (i) nonhospital, residential detoxification |
25 | addiction treatment; |
26 | (ii) short-term and long-term residential addiction |
27 | treatment; and |
28 | (iii) halfway houses for individuals who: |
29 | (A) are on waiting lists for treatment under |
30 | subparagraph (i) or (ii); or |
|
1 | (B) have no other coverage for treatment under |
2 | subparagraph (i) or (ii) for these services. |
3 | (2) Priorities are in the following order: |
4 | (i) Individuals under 18 years of age. |
5 | (ii) Pregnant women. |
6 | (iii) Postpartum women. |
7 | (iv) Mothers. |
8 | (v) Senior citizens. |
9 | (vi) Individuals addicted to prescription |
10 | medications. |
11 | (vii) Criminal justice offenders who are eligible |
12 | for diversion programs or involved in drug courts. |
13 | (c) Sources.--The following are the sources of the fund: |
14 | (1) Money deposited under section 1565(b) (relating to |
15 | Emergency Addiction Treatment Fund deposit). |
16 | (2) Appropriations. |
17 | (3) Return on the money in the fund. |
18 | § 1546. Keystone Transit Program. |
19 | (a) Establishment.--The Department of Environmental |
20 | Protection shall develop a program to fund competitive grants |
21 | and loans available to small mass transit authorities for all of |
22 | the following: |
23 | (1) Conversion of buses to run solely on compressed |
24 | natural gas as a fuel source. |
25 | (2) Purchase of buses which solely use natural gas as a |
26 | fuel source. |
27 | (b) Funding.--The program shall be funded under section |
28 | 1562(c)(3) (relating to natural gas transportation and natural |
29 | gas refueling infrastructure investment). |
30 | § 1547. Clean Transit Program. |
|
1 | (a) Establishment.--The Department of Environmental |
2 | Protection shall develop a program to fund competitive grants |
3 | and loans available to large mass transit authorities for all of |
4 | the following: |
5 | (1) Conversion of buses to run solely on compressed |
6 | natural gas as a fuel source. |
7 | (2) Purchase of buses which solely use natural gas as a |
8 | fuel source. |
9 | (b) Funding.-- |
10 | (1) The program shall be funded under section 1562 |
11 | (c)(4) (relating to natural gas transportation and natural |
12 | gas refueling infrastructure investment). |
13 | (2) No more than 1.5% of the money under this subsection |
14 | shall be used for administration. |
15 | § 1548. Shale Alliance for Energy Research. |
16 | (a) Establishment.--The Shale Alliance for Energy Research |
17 | is comprised of The Pennsylvania State University, the |
18 | University of Pittsburgh and the Gas Technology Institute. |
19 | (b) Purposes.--The following are the purposes of the |
20 | alliance: |
21 | (1) Facilitate research to assist with the development, |
22 | demonstration and commercialization of technologies to |
23 | improve the environmental footprint and production |
24 | performance of Marcellus Shale and other unconventional gas |
25 | wells in this Commonwealth. |
26 | (2) Provide analysis, testing and education in a |
27 | collaborative and supporting format with: |
28 | (i) the academic community; |
29 | (ii) industry; |
30 | (iii) nonprofit organizations; and |
|
1 | (iv) Federal, State and local governments. |
2 | (c) Funding.--The alliance shall be funded under section |
3 | 1563(b) (relating to Shale Alliance for Energy Research |
4 | deposit). |
5 | (d) Administration.--The Pennsylvania State University has |
6 | the following powers and duties to administer the alliance: |
7 | (1) Serve as the fiscal agent. |
8 | (2) Have ultimate accounting and financial reporting |
9 | duties. |
10 | (3) Have sole legal authority related to the |
11 | contracting, administering and expending of funds. |
12 | (4) Manage and support the daily operations of the |
13 | alliance. |
14 | SUBCHAPTER D |
15 | TRANSFER, DISTRIBUTION AND ALLOCATION |
16 | Sec. |
17 | 1551. Transfers and distributions. |
18 | 1552. Local Government Services Account transfers and |
19 | distributions. |
20 | 1553. Affordable homes. |
21 | 1554. Conservation districts. |
22 | 1555. Environmental Stewardship Fund. |
23 | 1556. Chesapeake Bay watershed programs in Department of |
24 | Environmental Protection. |
25 | 1557. Hazardous Sites Cleanup Fund. |
26 | 1558. Pennsylvania Fish and Boat Commission. |
27 | 1559. Accountability Block Grants. |
28 | 1560. Keystone Strategic Economic Development Fund deposit. |
29 | 1561. Industry Partnerships Program. |
30 | 1562. Natural gas transportation and natural gas refueling |
|
1 | infrastructure investment. |
2 | 1563. Shale Alliance for Energy Research deposit. |
3 | 1564. Community Services Integration Fund. |
4 | 1565. Emergency Addiction Treatment Fund deposit. |
5 | 1566. Human Services Development Fund. |
6 | 1567. Behavioral Services Initiative. |
7 | 1568. Homeowners Emergency Mortgage Assistance Program. |
8 | 1569. Rape and domestic violence programs. |
9 | § 1551. Transfers and distributions. |
10 | On the last business day of each calendar month, the State |
11 | Treasurer shall make the transfers and distributions of the |
12 | money in the account as specified under this subchapter. |
13 | § 1552. Local Government Services Account transfers and |
14 | distributions. |
15 | (a) Transfer.--Twenty-five percent of the money in the |
16 | account shall be transferred to the Local Government Services |
17 | Account. |
18 | (b) Quarterly distributions from the Local Government |
19 | Services Account.--On the last business day of each period of |
20 | three calendar months, the State Treasurer shall make the |
21 | following distributions from the money in the Local Government |
22 | Services Account: |
23 | (1) Thirty percent to counties with producing sites to |
24 | be used at their discretion on eligible uses to address |
25 | problems and impacts associated with natural gas development. |
26 | Eligible uses shall include: |
27 | (i) Construction, repair and maintenance of roads, |
28 | bridges and other public infrastructure. |
29 | (ii) Water, storm water and sewer system |
30 | construction and repair. |
|
1 | (iii) Emergency response preparedness, training, |
2 | equipment and responder recruitment. |
3 | (iv) Preservation and reclamation of subsurface |
4 | water supplies. |
5 | (v) Records management, geographic information |
6 | systems and information technology. |
7 | (vi) Projects which increase the availability of |
8 | affordable housing for those residents whose income is |
9 | less than the median income of the county. |
10 | (vii) Delivery of social services, including |
11 | domestic relations, drug and alcohol addiction treatment, |
12 | job training and counseling. |
13 | (viii) Offsetting increased judicial system costs, |
14 | including training and processing. |
15 | (ix) County planning. |
16 | (x) Planning, acquisition, construction, repair or |
17 | rehabilitation of natural areas, conservation areas, |
18 | parks, recreational facilities, trails, greenways, river |
19 | corridors and conservation projects. |
20 | (1.1) The money under paragraph (1) shall be distributed |
21 | to each eligible county based on the following formula: |
22 | (i) Divide: |
23 | (A) the number of producing sites in the county; |
24 | by |
25 | (B) the total number of producing sites in all |
26 | counties of this Commonwealth. |
27 | (ii) Multiply: |
28 | (A) the quotient derived from subparagraph (i); |
29 | by |
30 | (B) the amount of money available for |
|
1 | distribution under paragraph (1). |
2 | (2) Forty-five percent to municipalities with producing |
3 | sites to be used at their discretion on eligible uses to |
4 | address problems or impacts associated with natural gas |
5 | development. Eligible uses shall include: |
6 | (i) Construction, repair and maintenance of roads, |
7 | bridges and other public infrastructure. |
8 | (ii) Water, storm water and sewer system |
9 | construction and repair. |
10 | (iii) Emergency response preparedness, training, |
11 | equipment and responder recruitment. |
12 | (iv) Preservation and reclamation of subsurface |
13 | water supplies. |
14 | (v) Records management, geographic information |
15 | systems and information technology. |
16 | (vi) Projects which increase the availability of |
17 | affordable housing for those residents whose income is |
18 | less than the median income of the county. |
19 | (vii) Delivery of social services, including |
20 | domestic relations, drug and alcohol addiction treatment, |
21 | job training and counseling. |
22 | (viii) Offsetting increased judicial system costs, |
23 | including training and processing. |
24 | (ix) Municipal planning. |
25 | (x) Planning, acquisition, construction, repair or |
26 | rehabilitation of natural areas, conservation areas, |
27 | parks, recreational facilities, trails, greenways, river |
28 | corridors and conservation projects. |
29 | (2.1) The money under paragraph (2) shall be distributed |
30 | to each eligible municipality based on the following formula: |
|
1 | (i) Divide: |
2 | (A) the number of producing sites in the |
3 | municipality; by |
4 | (B) the total number of producing sites in all |
5 | municipalities of this Commonwealth. |
6 | (ii) Multiply: |
7 | (A) the quotient derived from subparagraph (i); |
8 | by |
9 | (B) the amount of money available for |
10 | distribution under this paragraph. |
11 | (3) Fifteen percent to municipalities with no producing |
12 | sites located in a county with producing sites to be used at |
13 | their discretion on eligible uses to address problems and |
14 | impacts associated with natural gas development. Eligible |
15 | uses shall include: |
16 | (i) Construction, repair and maintenance of roads, |
17 | bridges and other public infrastructure. |
18 | (ii) Water, storm water and sewer system |
19 | construction and repair. |
20 | (iii) Emergency response preparedness, training, |
21 | equipment and responder recruitment. |
22 | (iv) Preservation and reclamation of subsurface |
23 | water supplies. |
24 | (v) Records management, geographic information |
25 | systems and information technology. |
26 | (vi) Projects which increase the availability of |
27 | affordable housing for those residents whose income is |
28 | less than the median income of the county. |
29 | (vii) Delivery of social services, including |
30 | domestic relations, drug and alcohol addiction treatment, |
|
1 | job training and counseling. |
2 | (viii) Offsetting increased judicial system costs, |
3 | including training and processing. |
4 | (ix) Municipal planning. |
5 | (x) Planning, acquisition, construction, repair or |
6 | rehabilitation of natural areas, conservation areas, |
7 | parks, recreational facilities, trails, greenways, river |
8 | corridors and conservation projects. |
9 | (3.1) The money under paragraph (3) shall be distributed |
10 | to each eligible municipality based on the following formula: |
11 | (i) Divide: |
12 | (A) the number of producing sites in the county; |
13 | by |
14 | (B) the total number of producing sites in all |
15 | counties in this Commonwealth. |
16 | (ii) Multiply: |
17 | (A) the quotient derived from subparagraph (i); |
18 | by |
19 | (B) the amount of money available for |
20 | distribution under this paragraph. |
21 | (4) Any funds not distributed by a county to its |
22 | municipalities shall be retained by the county to be used for |
23 | grants to municipalities to defer the cost of regional |
24 | cooperation endeavors undertaken by the municipalities within |
25 | the county. |
26 | (5) Ten percent to the Pennsylvania Emergency Management |
27 | Agency to be distributed to fire and ambulance services in |
28 | counties with producing sites in accordance with the |
29 | procedures established in 35 Pa.C.S. Ch. 78 (relating to |
30 | grants to volunteer fire companies and volunteer services). |
|
1 | (b.1) Applicability.--Only producing unconventional gas |
2 | wells on which the tax is levied during the three-month period |
3 | for which transfers and distributions are made shall be included |
4 | in any of the calculations made under subsection (b)(1), (1.1), |
5 | (2), (2.1) and (4) for that three-month period. |
6 | (c) Distributions to counties.--The following shall apply to |
7 | distributions to counties: |
8 | (1) The governing body of each county that receives |
9 | funds under subsection (b)(1) may expend the funds only by a |
10 | simple majority vote of all of the members of the governing |
11 | body. |
12 | (2) The following apply: |
13 | (i) Prior to February 1, 2013, and prior to each |
14 | February 1 thereafter, each county that receives funds |
15 | under subsection (b)(1) shall prepare and deliver a |
16 | report to the Governor, the Secretary of the Senate and |
17 | the Chief Clerk of the House of Representatives detailing |
18 | the expenditure of the funds. |
19 | (ii) The Department of Community and Economic |
20 | Development may audit a county's expenditure of the |
21 | funds. |
22 | (iii) A county that receives the funds shall make |
23 | its financial records and other documents relating to its |
24 | expenditure of the funds available to the department. |
25 | (d) Distributions to municipalities.--The following shall |
26 | apply to distributions to municipalities: |
27 | (1) Prior to February 1, 2013, and prior to each |
28 | February 1 thereafter, each municipality receiving |
29 | distributions under subsection (b)(2) or (3) shall prepare |
30 | and deliver a report to the Governor, the Secretary of the |
|
1 | Senate and the Chief Clerk of the House of Representatives |
2 | detailing the expenditure of funds. |
3 | (2) The following apply: |
4 | (i) The Department of Community and Economic |
5 | Development may audit a municipality's expenditure of the |
6 | funds. |
7 | (ii) A municipality that receives the funds shall |
8 | make financial records and other documents relating to |
9 | its expenditure of the funds available to the Department |
10 | of Community and Economic Development. |
11 | § 1553. Affordable homes. |
12 | (a) Scope.--Two percent of the money in the account shall be |
13 | allocated under this section. |
14 | (b) Optional affordable housing funding.--Forty percent of |
15 | the money subject to subsection (a) shall be allocated to |
16 | increasing the availability of affordable homes in counties with |
17 | producing sites in the following manner: |
18 | (1) The allocation to a county shall: |
19 | (i) except as set forth in subparagraph (ii), be |
20 | deposited into the county's optional affordable housing |
21 | fund; or |
22 | (ii) if the county does not have an optional county |
23 | affordable housing fund, be administered by the |
24 | Pennsylvania Housing Finance Agency under 53 Pa.C.S. Ch. |
25 | 60 (relating to optional affordable housing funding). |
26 | (2) Prior to expending money received under this |
27 | subsection, a county must: |
28 | (i) develop a plan which takes into account the |
29 | impact of drilling on the housing market, both for sale |
30 | and rental; and |
|
1 | (ii) prioritize expenditures for people who have |
2 | been displaced as a result of changes in the market. |
3 | (c) Housing Affordability and Rehabilitation Enhancement |
4 | Fund.--Sixty percent of the money subject to subsection (a) |
5 | shall be deposited in the Housing Affordability and |
6 | Rehabilitation Enhancement Fund to increase the availability of |
7 | quality affordable homes, either for sale or rental, under |
8 | Article IV-D of the act of December 3, 1959 (P.L.1688, No.621), |
9 | known as the Housing Finance Agency Law. The agency, as |
10 | administrator of the fund, may use the appropriation to pay debt |
11 | service on a revenue bond, the proceeds of which shall be |
12 | deposited into the fund. The appropriation under this paragraph |
13 | shall be distributed as follows: |
14 | (1) Sixty percent of the money available under this |
15 | subsection shall be used to increase the availability of |
16 | quality affordable homes, either for sale or rental, in |
17 | counties with producing sites. |
18 | (2) Forty percent of the money available under this |
19 | subsection shall be used to increase the availability of |
20 | quality affordable homes, either for sale or rental, on a |
21 | Statewide basis. |
22 | § 1554. Conservation districts. |
23 | (a) Scope.--Two percent of the money in the account shall be |
24 | deposited under this section. |
25 | (b) Deposit.--The money subject to subsection (a) shall be |
26 | deposited in the Conservation District Fund to be distributed to |
27 | county conservation districts by the State Conservation |
28 | Commission. The money shall be distributed in accordance with |
29 | the following formula: |
30 | (1) Fifty percent of the money available under this |
|
1 | subsection shall be distributed by dividing the amount |
2 | equally among conservation districts for any use consistent |
3 | with the act of May 15, 1945 (P.L.547, No.217), known as the |
4 | Conservation District Law. |
5 | (2) Fifty percent of the money available under this |
6 | subsection shall be distributed in a manner consistent with |
7 | the Conservation District Law and 25 Pa. Code Ch. 83 Subch. B |
8 | (relating to Conservation District Fund Allocation Program- |
9 | Statement of Policy). |
10 | § 1555. Environmental Stewardship Fund. |
11 | (a) Initial.--Before July 1, 2015, 23% of the money in the |
12 | account shall be deposited in the Environmental Stewardship |
13 | Fund. |
14 | (b) Subsequent.--After June 30, 2015, 15% of the money in |
15 | the account shall be deposited in the fund. |
16 | § 1556. Chesapeake Bay watershed programs in Department of |
17 | Environmental Protection. |
18 | (a) Scope.--Two percent of the money in the account shall be |
19 | transferred under this section. |
20 | (b) Department of Environmental Protection.-- |
21 | (1) The money subject to subsection (a) shall be |
22 | transferred to the Department of Environmental Protection to |
23 | provide funding for programs and projects which improve local |
24 | water quality in Pennsylvania's portion of the Chesapeake Bay |
25 | watershed as outlined in Pennsylvania's Chesapeake Watershed |
26 | Implementation Plan. |
27 | (2) The money subject to subsection (a) may be used in |
28 | coordination of existing resources to enhance the non-Federal |
29 | match requirement of Chesapeake Bay Implementation Grants for |
30 | projects that reduce nonpoint source nutrient and sediment |
|
1 | pollution. |
2 | § 1557. Hazardous Sites Cleanup Fund. |
3 | (a) Scope.--Eight percent of the money in the account shall |
4 | be deposited under this section. |
5 | (b) Deposit.--After June 30, 2015, the money subject to |
6 | subsection (a) shall be deposited in the the Hazardous Sites |
7 | Cleanup Fund. |
8 | § 1558. Pennsylvania Fish and Boat Commission. |
9 | (a) Scope.--Two percent of the money in the account shall be |
10 | transferred under this section. |
11 | (b) Transfer.--The money subject to subsection (a) shall be |
12 | transferred to the Pennsylvania Fish and Boat Commission. |
13 | § 1559. Accountability Block Grants. |
14 | (a) Scope.--Twelve percent of the money in the account shall |
15 | be transferred under this section. |
16 | (b) Transfer.--The money subject to subsection (a) shall be |
17 | transferred to the Department of Education for Accountability |
18 | Block Grants. |
19 | § 1560. Keystone Strategic Economic Development Fund deposit. |
20 | (a) Scope.--Five percent of money in the account shall be |
21 | transferred under this section. |
22 | (b) Transfer.--The money subject to subsection (a) shall be |
23 | transferred to the fund established in section 1543 (relating to |
24 | Keystone Strategic Economic Development Fund). |
25 | § 1561. Industry Partnerships Program. |
26 | (a) Scope.--Two percent of the money in the account shall be |
27 | transferred under this section. |
28 | (b) Transfer.--The money subject to subsection (a) shall be |
29 | transferred to the Department of Labor and Industry for the |
30 | Industry Partnerships Program. |
|
1 | § 1562. Natural gas transportation and natural gas refueling |
2 | infrastructure investment. |
3 | (a) Initial.--Before July 1, 2015, 4% of the money in the |
4 | account shall be allocated for natural gas transportation and |
5 | natural gas refueling infrastructure investment. |
6 | (b) Subsequent.--After June 30, 2015, 5% of the money in the |
7 | account shall be allocated for natural gas transportation and |
8 | natural gas refueling infrastructure investment. |
9 | (c) Distribution.-- |
10 | (1) Thirty percent of the money subject to this section |
11 | shall be deposited in the General Fund for reimbursement by |
12 | the Secretary of the Budget for legislative tax exclusions |
13 | for natural gas vehicle fleets. Any portion of the amount |
14 | subject to this paragraph which is not used shall be |
15 | allocated to the other purposes provided for in section 1552 |
16 | (relating to natural gas transportation and natural gas |
17 | refueling infrastructure investment). |
18 | (2) Twenty percent of the money subject to this section |
19 | shall be deposited in the General Fund for reimbursement by |
20 | the Secretary of the Budget for legislative tax exclusions |
21 | for natural gas corridor refueling stations. Any portion of |
22 | the amount subject to this paragraph which is not used shall |
23 | be allocated to the other purposes provided for in section |
24 | 1552. |
25 | (3) Ten percent of the money subject to this section |
26 | shall be used for the program under section 1546 (relating to |
27 | Keystone Transit Program). |
28 | (4) Twenty percent of the money subject to this section |
29 | shall be used for the program under section 1547 (relating to |
30 | Clean Transit Program). |
|
1 | (5) Twenty percent of the money subject to this section |
2 | shall be deposited in the Alternative Fuels Incentive Fund |
3 | administered by the Department of Environmental Protection |
4 | for distribution as follows: |
5 | (i) Ten percent of the money subject to this |
6 | paragraph shall be used for grants to taxi companies and |
7 | operators for incremental costs associated with |
8 | purchasing dedicated compressed natural gas taxis. |
9 | (ii) Sixty-five percent of the money subject to this |
10 | paragraph shall be used for grants to provide funding for |
11 | incremental costs associated with purchasing dedicated |
12 | compressed natural gas vehicles with a gross vehicle |
13 | weight rating of 14,000 pounds or more. Grants shall be |
14 | made in the following order of priority: |
15 | (A) First to: |
16 | (I) school districts; |
17 | (II) municipal authorities; and |
18 | (III) municipalities; |
19 | (B) Second to: |
20 | (I) nonprofit associations registered in |
21 | this Commonwealth; |
22 | (II) corporations incorporated in this |
23 | Commonwealth; |
24 | (III) limited liability companies registered |
25 | in this Commonwealth; and |
26 | (IV) partnerships registered in this |
27 | Commonwealth. |
28 | (iii) Twenty-five percent of the money subject to |
29 | this paragraph shall be used to offset legislative |
30 | credits against the tax under Article III of the Tax |
|
1 | Reform Code for the purchase of bi-fuel vehicles. |
2 | § 1563. Shale Alliance for Energy Research deposit. |
3 | (a) Scope.--One percent of the money in the account shall be |
4 | allocated under this section. |
5 | (b) Allocation.--The money subject to subsection (a) shall |
6 | be allocated through June 30, 2015, to the alliance under |
7 | section 1548 (relating to Shale Alliance for Energy Research). |
8 | § 1564. Community Services Integration Fund. |
9 | (a) Scope.--Five percent of the money in the account shall |
10 | be deposited under this section. |
11 | (b) Deposit.--The money subject to subsection (a) shall be |
12 | deposited in the fund under section 1554 (relating to |
13 | conservation districts). |
14 | § 1565. Emergency Addiction Treatment Fund deposit. |
15 | (a) Scope.--Six percent of the money in the account shall be |
16 | deposited under this section. |
17 | (b) Deposit.--The money subject to subsection (a) shall be |
18 | deposited in the fund under section 1545 (relating to Emergency |
19 | Addiction Treatment Fund). |
20 | § 1566. Human Services Development Fund. |
21 | (a) Scope.--Three percent of the money in the account shall |
22 | be deposited under this section. |
23 | (b) Deposit.--The money subject to subsection (a) shall be |
24 | deposited in the Human Services Development Fund in the |
25 | Department of Welfare. |
26 | § 1567. Behavioral Services Initiative. |
27 | (a) Scope.--Three percent of the money in the account shall |
28 | be transferred under this section. |
29 | (b) Transfer.--The money subject to subsection (a) shall be |
30 | transferred to the Behavioral Services Initiative in the |
|
1 | Department of Public Welfare to expand funding for this service. |
2 | § 1568. Homeowners Emergency Mortgage Assistance Program. |
3 | (a) Scope.--Two percent of the money in the account shall be |
4 | transferred under this section. |
5 | (b) Transfer.--The money subject to subsection (a) shall be |
6 | transferred to the Homeowners Emergency Mortgage Assistance |
7 | Program in the Pennsylvania Housing Finance Agency. |
8 | § 1569. Rape and domestic violence programs. |
9 | (a) Scope.--One percent of the money in the account shall be |
10 | transferred under this section. |
11 | (b) Transfer.--The money subject to subsection (a) shall be |
12 | transferred to the Department of Public Welfare for use for |
13 | victims of rape and domestic violence in accordance with section |
14 | 2333 of the act of April 9, 1929 (P.L.177, No.175), known as The |
15 | Administrative Code of 1929. |
16 | Section 2. This act shall take effect in 90 days. |
|