| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 1532, 1922, 2221 | PRINTER'S NO. 2232 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY EICHELBERGER, ERICKSON, STOUT AND WOZNIAK, DECEMBER 14, 2009 |
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| AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, SEPTEMBER 28, 2010 |
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| AN ACT |
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1 | Amending Title 16 (Counties) of the Pennsylvania Consolidated |
2 | Statutes, adding provisions for required fiscal security |
3 | through bonding, blanket bonding and insuring of elected and |
4 | appointed county officers and employees; providing for |
5 | determining the form, amount and payment of premiums for and |
6 | the filing and recording of the required security and, for | <-- |
7 | the subsequent issuance of official commissions, for the | <-- |
8 | effects of natural gas drilling and for a Marcellus Shale Job |
9 | Creation Tax Credit; and making related repeals. |
10 | TABLE OF CONTENTS |
11 | TITLE 16 |
12 | COUNTIES |
13 | PART I. PRELIMINARY PROVISIONS (Reserved) |
14 | PART II. CREATION, ALTERATION AND FUNCTIONS (Reserved) |
15 | PART III. GOVERNMENT AND ADMINISTRATION |
16 | Subpart A. General Provisions | <-- |
17 | SUBPART A. GENERAL PROVISIONS | <-- |
18 | Chapter 11. General Provisions |
19 | Subchapter A. (Reserved) |
20 | Subchapter B. Required Fiscal Security for Officers and |
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1 | Employees |
2 | § 1121. Short title and scope of subchapter. |
3 | § 1122. Definitions. |
4 | § 1123. Required security. |
5 | § 1124. Official security and officers. |
6 | § 1125. Other county officers and employees, deputies and other |
7 | appointees of county officers. |
8 | § 1126. County officers and employees acting as agents. |
9 | § 1127. Bonds or blanket bond as security coverage. |
10 | § 1128. Insurance as security coverage. |
11 | § 1129. Form of required security. |
12 | § 1130. Amount of coverage. |
13 | § 1131. Custody and filing of required security documents. |
14 | § 1132. Payment of premiums and commissions on collections. |
15 | § 1133. Other requirements, references and approvals. |
16 | PART IV. (Reserved) | <-- |
17 | PART V. REVENUE |
18 | Chapter 15. Effects of Natural Gas Drilling |
19 | § 1501. Short title and scope of chapter. |
20 | § 1502. Definitions. |
21 | § 1503. Imposition of tax. |
22 | § 1503.1. Tax rate adjustment. |
23 | § 1504. Return and payment. |
24 | § 1505. Natural gas severance tax registration. |
25 | § 1505.1. Meters. |
26 | § 1506. Assessments. |
27 | § 1507. Time for assessment. |
28 | § 1508. Extension of assessment period. |
29 | § 1509. Reassessments. |
30 | § 1510. Interest. |
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1 | § 1511. Penalties. |
2 | § 1512. Criminal acts. |
3 | § 1513. Abatement of additions or penalties. |
4 | § 1514. Bulk and auction sales. |
5 | § 1515. Collection upon failure to request reassessment, review |
6 | or appeal. |
7 | § 1516. Tax liens. |
8 | § 1517. Tax suit reciprocity. |
9 | § 1518. Service. |
10 | § 1519. Refunds. |
11 | § 1520. Refund petition. |
12 | § 1521. Rules and regulations. |
13 | § 1522. Recordkeeping. |
14 | § 1523. Examinations. |
15 | § 1524. Unauthorized disclosure. |
16 | § 1525. Cooperation with other governments. |
17 | § 1526. Bonds. |
18 | § 1527. Accounts established. |
19 | § 1528. Transfers and distributions. |
20 | § 1529. Appropriation. |
21 | Chapter 17. Marcellus Shale Job Creation Tax Credit |
22 | § 1701. Definitions. |
23 | § 1702. Eligibility. |
24 | § 1703. Application process. |
25 | § 1704. Tax credits. |
26 | § 1705. Prohibitions. |
27 | § 1706. Penalties. |
28 | § 1707. Annual reports. |
29 | § 1708. Notice of availability of tax credits. |
30 | The General Assembly of the Commonwealth of Pennsylvania |
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1 | hereby enacts as follows: |
2 | Section 1. Title 16 of the Pennsylvania Consolidated |
3 | Statutes is amended by adding parts to read: |
4 | Part | <-- |
5 | I. Preliminary Provisions (Reserved) |
6 | II. Creation, Alteration and Functions (Reserved) |
7 | III. Government and Administration |
8 | IV. (Reserved) |
9 | V. Revenue |
10 | PART I |
11 | PRELIMINARY PROVISIONS (Reserved) |
12 | PART II |
13 | CREATION, ALTERATION AND FUNCTIONS (Reserved) |
14 | PART III |
15 | GOVERNMENT AND ADMINISTRATION |
16 | Subpart |
17 | A. General Provisions |
18 | SUBPART A | <-- |
19 | PRELIMINARY PROVISIONS |
20 | Chapter |
21 | 11. General Provisions |
22 | CHAPTER 11 |
23 | GENERAL PROVISIONS |
24 | Subchapter |
25 | A. (Reserved) |
26 | B. Required Fiscal Security for Officers and Employees |
27 | SUBCHAPTER A | <-- |
28 | (Reserved) |
29 | SUBCHAPTER B |
30 | REQUIRED FISCAL SECURITY |
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1 | FOR OFFICERS AND EMPLOYEES |
2 | Sec. |
3 | 1121. Short title and scope of subchapter. |
4 | 1122. Definitions. |
5 | 1123. Required security. |
6 | 1124. Official security and officers. |
7 | 1125. Other county officers and employees, deputies and other |
8 | appointees of county officers. |
9 | 1126. County officers and employees acting as agents. |
10 | 1127. Bonds or blanket bond as security coverage. |
11 | 1128. Insurance as security coverage. |
12 | 1129. Form of required security. |
13 | 1130. Amount of coverage. |
14 | 1131. Custody and filing of required security documents. |
15 | 1132. Payment of premiums and commissions on collections. |
16 | 1133. Other requirements, references and approvals. |
17 | § 1121. Short title and scope of subchapter. |
18 | (a) Short title of subchapter.--This subchapter shall be |
19 | known and may be cited as the County Officer and Employee Fiscal |
20 | Security Act. |
21 | (b) Scope of subchapter.--This subchapter applies to |
22 | security coverage and additional coverage in the form of bonds, |
23 | blanket bonds or insurance, protecting against events of loss of |
24 | money or property as a result of misconduct by officers and |
25 | employees in counties of the second class, second class A, third |
26 | class, fourth class, fifth class, sixth class, seventh class or |
27 | eighth class, including counties of these classes which have |
28 | adopted a home rule charter or an optional plan. |
29 | (c) Inapplicability.--This subchapter shall not apply to |
30 | bonds of county treasurers acting as tax collectors as provided |
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1 | in section 4 of the act of May 25, 1945 (P.L.1050, No.394), |
2 | known as the Local Tax Collection Law. |
3 | § 1122. Definitions. |
4 | The following words and phrases when used in this subchapter |
5 | shall have the meanings given to them in this section unless the |
6 | context clearly indicates otherwise: |
7 | "Additional coverage." Insurance that covers each county |
8 | officer or employee who is required to receive, account for or |
9 | hold any money or property by virtue of his or her office or |
10 | employment and which, at a minimum, indemnifies the county |
11 | against the loss of money and property through robbery, burglary |
12 | and larceny. |
13 | "Blanket bond." Security coverage in the form of a bond for |
14 | county officers and employees as follows: |
15 | (1) for county officers and employees as a comprehensive |
16 | group; |
17 | (2) for a group of named county officers and employees; |
18 | or |
19 | (3) for county officers and employees in scheduled |
20 | positions. |
21 | "Bond." Security coverage under which a surety guarantees |
22 | the performance of a duty by a county officer or employee in |
23 | compliance with this subchapter. |
24 | "County." A county of the second class, second class A, |
25 | third class, fourth class, fifth class, sixth class, seventh |
26 | class or eighth class, including counties of these classes which |
27 | have adopted or may adopt a home rule charter or an optional |
28 | plan. |
29 | "County officers and employees." Elected and appointed |
30 | county officials, the deputies and other appointees of county |
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1 | elected and appointed officials and county employees, whether |
2 | acting on behalf of the county or as agents of a Commonwealth |
3 | agency or a governing authority, who are required to receive, |
4 | account for or hold any money or property by virtue of their |
5 | office or employment. |
6 | "Crime-fidelity insurance." Insurance that is endorsed with |
7 | faithful performance of duty coverage and which insures, at a |
8 | minimum, against events of loss of money or other property, |
9 | resulting from one or more fraudulent or dishonest acts, |
10 | including, but not limited to, embezzlement, theft, forgery, |
11 | similar acts of dishonesty or fraud by a county officer or |
12 | employee acting alone or in collusion with others, or from a |
13 | breach of fiduciary duty or a failure of a county officer or |
14 | employee to perform faithfully the officer's or employee's |
15 | duties or to account properly for all money and property |
16 | received, held or required to be accounted for, by virtue of |
17 | the officer's or employee's office or employment. |
18 | "Governing authority." Includes: |
19 | (1) The Supreme Court. |
20 | (2) Any agency or unit of the unified judicial system |
21 | exercising a power or performing a duty under 42 Pa.C.S. § |
22 | 1721 (relating to delegation of powers). |
23 | "Governing body." The county board of commissioners or the |
24 | body vested with the legislative authority of the county in |
25 | counties which have adopted a home rule charter or an optional |
26 | plan. |
27 | "Home rule charter." A charter adopted under 53 Pa.C.S. Pt. |
28 | III Subpt. E (relating to home rule and optional plan |
29 | government) or its predecessor, the former act of April 13, 1972 |
30 | (P.L.184, No.62), known as the Home Rule Charter and Optional |
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1 | Plans Law, or Article XXXI-C of the act of July 28, 1953 |
2 | (P.L.723, No.230), known as the Second Class County Code. |
3 | "Money." Coin or currency of the United States or of any |
4 | other country, travelers checks, personal checks, bank checks |
5 | and bank notes in current use and having a face value, money |
6 | orders and securities. |
7 | "Official security." Security on behalf of a county officer |
8 | to provide protection from events of loss or misconduct when the |
9 | officer fails to faithfully perform the duties of the office. |
10 | "Optional plan." An optional plan adopted under 53 Pa.C.S. |
11 | Pt. III Subpt. E (relating to home rule and optional plan |
12 | government) or its predecessor, the former act of April 13, 1972 |
13 | (P.L.184, No.62), known as the Home Rule Charter and Optional |
14 | Plans Law. |
15 | "Required security." Security coverage and additional |
16 | coverage provided in compliance with this subchapter. |
17 | "Securities." All negotiable and nonnegotiable instruments |
18 | or contracts representing either money or other property, |
19 | including revenue and other stamps in current use, tokens and |
20 | tickets and evidences of debt issued in connection with credit |
21 | or charge cards, which cards are not issued by the county. |
22 | "Security coverage." A bond, a blanket bond or a crime- |
23 | fidelity insurance policy, which is endorsed with faithful |
24 | performance of duty coverage, provided in compliance with this |
25 | subchapter for the purpose of protecting against the loss of |
26 | money and other property sustained as a result of one or more |
27 | fraudulent or dishonest acts, including, but not limited to, |
28 | embezzlement, theft, forgery, similar acts of dishonesty or |
29 | fraud by a county officer or employee acting alone or in |
30 | collusion with others or from a breach of fiduciary duty or a |
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1 | failure of a county officer or employee to perform faithfully |
2 | the officer's or employee's duties or to account properly for |
3 | all money and property received by virtue of the officer's or |
4 | employee's position or employment. |
5 | § 1123. Required security. |
6 | (a) In general.--A county shall obtain security coverage and |
7 | additional coverage for county officers and employees in |
8 | accordance with this subchapter. |
9 | (b) Security coverage.--Security coverage shall be provided |
10 | in accordance with the following: |
11 | (1) Section 1124 (relating to official security and |
12 | officers). |
13 | (2) Section 1125 (relating to other county officers and |
14 | employees; deputies and other appointees of county officers). |
15 | (3) Section 1126 (relating to county officers and |
16 | employees acting as agents). |
17 | (c) Additional coverage.--Supplemental to or as part of the |
18 | security coverage to be provided in accordance with this |
19 | subchapter, additional coverage in the form of adequate |
20 | insurance indemnifying against the loss of money and property |
21 | through robbery, burglary and larceny, shall be provided for |
22 | each county officer or employee who is required to receive, |
23 | account for or hold any money and other property by virtue of |
24 | the officer's or employee's office or employment. |
25 | (d) Primary liability.-- |
26 | (1) Except as provided in paragraph (2), the county |
27 | shall be primarily liable for a claim for the loss of money |
28 | and property which a county officer or employee is required |
29 | to receive, account for or hold by virtue of the officer's or |
30 | employee's office or employment, to the extent that the loss |
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1 | is or could have been the subject of required security under |
2 | this subchapter. |
3 | (2) The county shall not be primarily liable for a claim |
4 | for the loss of money and property under paragraph (1) to the |
5 | extent that recovery of the loss can be obtained from other |
6 | insurance or bond protection provided by the Commonwealth |
7 | agency or any other person or entity asserting a claim. |
8 | (3) With regard to the loss of money or property, |
9 | nothing in this subchapter shall be deemed to restrict or |
10 | diminish a county's right to reimbursement or subrogation or |
11 | to limit any right the county may have to be indemnified or |
12 | receive restitution for the loss. |
13 | § 1124. Official security and officers. |
14 | (a) Official security.--Each county shall obtain official |
15 | security in the form of bonds, a blanket bond or a crime- |
16 | fidelity insurance policy, which is endorsed with faithful |
17 | performance of duty coverage, on behalf of the officers set |
18 | forth in subsection (b) or the equivalent officers in home rule |
19 | or optional plans counties, whether elected, appointed or |
20 | appointed to fill a vacancy, before those officers begin their |
21 | official duties. |
22 | (b) Officers.--The following are the officers or equivalent |
23 | officers in home rule or optional plans counties upon whose |
24 | behalf official security shall be obtained in accordance with |
25 | subsection (a): |
26 | (1) Each county commissioner. |
27 | (2) The chief clerk of the county commissioners. |
28 | (3) The controller. |
29 | (4) The county treasurer. |
30 | (5) The prothonotary of the court of common pleas. |
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1 | (6) The sheriff. |
2 | (7) The coroner. |
3 | (8) The clerk of the courts of the court of common |
4 | pleas. |
5 | (9) The clerk of the orphans' court division of the |
6 | court of common pleas. |
7 | (10) The recorder of deeds. |
8 | (11) The register of wills. |
9 | (12) Probation and parole officers, if required by order |
10 | of court to obtain official security. |
11 | (13) The fire marshal and deputy fire marshals, if |
12 | required by law to obtain official security. |
13 | (14) The secretary of the board of health and the health |
14 | officer in a county in which the secretary is required by law |
15 | to obtain official security. |
16 | § 1125. Other county officers and employees. |
17 | A county shall obtain security coverage with faithful |
18 | performance of duty coverage for all county officers and |
19 | employees who are not subject to section 1124 (relating to |
20 | official security and officers), including deputies and other |
21 | appointees in each county office, who are required to receive, |
22 | account for or hold any money and other property by virtue of |
23 | their office or employment. |
24 | § 1126. County officers and employees acting as agents. |
25 | Each county shall obtain security coverage for county |
26 | officers and employees acting as agents of a Commonwealth agency |
27 | or governing authority in accordance with this subchapter or any |
28 | other law, regulation or rule requiring the posting of security |
29 | in the form of a bond or otherwise. |
30 | § 1127. Bonds or blanket bond as security coverage. |
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1 | (a) In general.--A county may comply with section 1123(b) |
2 | (relating to required security) by providing bonds or a blanket |
3 | bond in accordance with the following: |
4 | (1) The bond or blanket bond shall be joint and several, |
5 | with one or more surety companies authorized to do business |
6 | in this Commonwealth and licensed by the Insurance |
7 | Commissioner. |
8 | (2) The bond or blanket bond shall be conditioned upon |
9 | each of the following: |
10 | (i) The faithful performance of all duties required |
11 | of the person holding the office or position. |
12 | (ii) The just and faithful use, accounting or |
13 | payment over, according to law, of all moneys and |
14 | balances and other property, which is required to be |
15 | received, accounted for or held by the officer or |
16 | employee by virtue of the officer's or employee's office |
17 | or employment whether on behalf of the county, the |
18 | Commonwealth, a political subdivision or any other |
19 | person. |
20 | (iii) The delivery to the successor in office of all |
21 | books, papers, documents or other official things, whole, |
22 | safe and undefaced, held in right of the office. |
23 | (3) A bond or blanket bond shall be taken in the name of |
24 | the county and, in case of a breach of any of the conditions |
25 | thereof by the acts or neglect of a principal on the bond, |
26 | shall be for the use of the county, the Commonwealth, a |
27 | political subdivision or any other person as that person's |
28 | interest shall otherwise appear. |
29 | (4) The county, the Commonwealth, a political |
30 | subdivision or other interested persons may sue upon the bond |
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1 | in its name or for its own use. Acts of the General Assembly |
2 | pertaining to actions and limitations of actions upon |
3 | official bonds given to the Commonwealth shall apply to the |
4 | bonds provided for in this subchapter just as if they were |
5 | given to the Commonwealth, except as otherwise specifically |
6 | provided in this subchapter. |
7 | (b) Combined offices.--In counties in which one or more of |
8 | the county offices set forth in section 1123(b) are combined, if |
9 | officers are covered by individual bonds, a single bond covering |
10 | the combined offices shall suffice for the officer holding the |
11 | combined offices. |
12 | § 1128. Insurance as security coverage. |
13 | A county may comply with section 1123(b) (relating to |
14 | required security) by providing crime-fidelity insurance for |
15 | county officers or employees in accordance with this subchapter. |
16 | § 1129. Form of required security. |
17 | The form and contents of a bond, a blanket bond or insurance |
18 | obtained in compliance with this subchapter shall be approved by |
19 | the governing body of the county, after review by the county |
20 | solicitor and consultation with the county risk manager, if any. |
21 | In cases in which required security is being provided for a |
22 | county officer or employee who is acting as an agent for a |
23 | Commonwealth agency or the governing authority, the Commonwealth |
24 | agency or the governing authority may review and comment on the |
25 | form of the required security. The governing body may refer to |
26 | sample forms that may be made available by the Department of |
27 | State in the approval process. |
28 | § 1130. Amount of coverage. |
29 | (a) Governing body.--The governing body shall establish a |
30 | procedure pursuant to which the governing body shall annually |
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1 | determine the form and amount of required security that will be |
2 | reasonably sufficient to protect against the risks of loss in |
3 | compliance with this subchapter. |
4 | (b) Risk manager.--The governing body may appoint a risk |
5 | manager who, at the request of the governing body, shall compile |
6 | and submit information relevant to the determination of an |
7 | amount of required security under subsection (a). |
8 | (c) Consultation.--To determine the amount of security for a |
9 | county officer or employee who is acting as an agent for a |
10 | Commonwealth agency or governing authority, the governing body |
11 | may, or the risk manager shall, if directed by the governing |
12 | body, provide written notice to the secretary or head of the |
13 | Commonwealth agency or the governing authority. The Commonwealth |
14 | agency or governing authority may provide input concerning the |
15 | amount of security it believes is reasonably sufficient to |
16 | protect against the risks of loss required to comply with this |
17 | subchapter. Nothing in this subchapter shall impair the right of |
18 | a Commonwealth agency or governing authority from approving the |
19 | amount of required security, if it is explicitly authorized by |
20 | law to approve the amount of a bond or other security of a |
21 | county officer or employee acting as its agent. |
22 | § 1131. Custody and filing of required security documents. |
23 | (a) Custody.--The governing body shall direct the chief |
24 | clerk or equivalent officer in a home rule or optional plan |
25 | county to present the documents evidencing required security |
26 | obtained in accordance with this subchapter to the recorder of |
27 | deeds or equivalent officer in a home rule or optional plan |
28 | county for recording. No tax, fee or other charge shall be |
29 | imposed for the recording of documents in compliance with this |
30 | section. Following the recording, the documents shall be |
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1 | returned to the chief clerk or equivalent officer in a home rule |
2 | or optional plan county, who shall maintain the custody of these |
3 | documents on behalf of the governing body. |
4 | (b) Department of State filing.-- |
5 | (1) In compliance with section 809 of the act of April |
6 | 9, 1929 (P.L.177, No.175), known as The Administrative Code |
7 | of 1929, it shall be sufficient for a copy of the recorded |
8 | documents evidencing the required security for county |
9 | officers to be filed with the Department of State in |
10 | accordance with deadlines established by the department. |
11 | (2) No other filing or approvals, except as provided in |
12 | section 1133(c)(2) (relating to other requirements, |
13 | references and approvals) of documents evidencing the |
14 | required security for county officers, except that required |
15 | in accordance with paragraph (1), shall be required as a |
16 | condition for the issuance of commissions to elected county |
17 | officials by the Department of State. |
18 | (3) Notwithstanding the provision of any other law, no |
19 | tax, fee or other charge shall be imposed as a result of the |
20 | issuance of commissions to elected county officials, and no |
21 | fee may be imposed for the recording of required security |
22 | documents or commissions. |
23 | (c) Copies.--If requested by the Commonwealth agency or |
24 | governing authority on whose behalf a county officer or employee |
25 | is acting as an agent, a copy of recorded documents evidencing |
26 | the required security shall be provided by the chief clerk or |
27 | the equivalent officer in a home rule or optional plans county |
28 | to the Commonwealth agency or governing authority. No charge or |
29 | fee shall be imposed for any copy provided in accordance with |
30 | this subsection. |
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1 | (d) Filing by governing body.--The governing body shall have |
2 | the duty to file documents as required by this section. |
3 | (e) Retention of documents.--Documents evidencing required |
4 | security shall be held by the custodian thereof for the longer |
5 | of the following periods: |
6 | (1) For at least one year after the officer's term of |
7 | office or employee's period of employment and, in the case of |
8 | a county officer or employee who is acting as an agent for a |
9 | Commonwealth agency or governing authority, for at least one |
10 | year after the settlement of accounts with the Commonwealth |
11 | agency or the governing authority. |
12 | (2) For the period of time required by the act of August |
13 | 14, 1963 (P.L.839, No.407), entitled "An act creating a |
14 | county records committee; imposing powers and duties upon it; |
15 | authorizing the Pennsylvania Historical and Museum Commission |
16 | to assist and cooperate with it; defining county records; and |
17 | authorizing the disposition of certain county records by |
18 | county officers in counties of the second to eighth class," |
19 | or the rules and regulations adopted pursuant thereto. |
20 | (f) Evidence.--A copy of original documents evidencing |
21 | required security, certified as true and correct by the |
22 | custodian thereof, or a copy of the recorded documents |
23 | evidencing required security, certified as true and correct by |
24 | the recorder of deeds, shall be competent evidence thereof in |
25 | any judicial proceeding, in the same manner as the original |
26 | would be if produced and offered in evidence. |
27 | (g) Sufficiency of filing and recording.--Notwithstanding |
28 | any other provision of law, it shall be sufficient to file and |
29 | record documents evidencing required security in accordance with |
30 | this subchapter without further acknowledgment, filing or |
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1 | recording of these documents with any other county officer or |
2 | with any other Commonwealth agency, except as required by this |
3 | subchapter. |
4 | § 1132. Payment of premiums and commissions on collections. |
5 | (a) Premiums and costs.--The premiums and costs for all |
6 | forms of required security for county officials and employees |
7 | shall be paid by the county. The requirement of this subchapter |
8 | that a county acquire and pay the premiums and costs for |
9 | required security shall not relieve a Commonwealth agency on |
10 | whose behalf a county officer or employee is acting as an agent |
11 | from an obligation, imposed by law, to procure insurance or |
12 | bonding protection. |
13 | (b) Commissions on collections.--Nothing in this subchapter |
14 | shall affect the right, provided for in any other law, of a |
15 | county officer or employee to retain a commission, for use of |
16 | the county, on amounts collected or transmitted as agent for a |
17 | Commonwealth agency. Notwithstanding the right to retain |
18 | commissions in accordance with this paragraph, no county officer |
19 | or employee shall be entitled to retain any additional sums from |
20 | amounts collected for or to be transmitted to the Commonwealth |
21 | agency for the purpose of paying premiums or costs related to |
22 | the acquisition of required security. |
23 | § 1133. Other requirements, references and approvals. |
24 | (a) Compliance.--A requirement in another law, regulation or |
25 | rule that a bond be provided by a county officer or employee to |
26 | secure the faithful performance of duty or to act as the agent |
27 | of a Commonwealth agency or governing authority may be satisfied |
28 | by including this obligation within the coverage of required |
29 | security supplied in accordance with this subchapter. |
30 | (b) Reference to bonds.--Reference to bonds of county |
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1 | officers and employees in any other law shall be construed and |
2 | read together with this subchapter, and if a conflict exists |
3 | between this subchapter and the reference to bonds of county |
4 | officers and employees in any other law, the provisions of this |
5 | subchapter shall prevail. |
6 | (c) Other approvals.--Notwithstanding any other provision of |
7 | law, the following shall apply to required security in the form |
8 | of a bond, a blanket bond or insurance: |
9 | (1) Except as provided in paragraph (2), when required |
10 | security is obtained in compliance with this subchapter, it |
11 | shall not require the approval of any Commonwealth agency or |
12 | the Governor as to form, content or amount. |
13 | (2) If any other law explicitly authorizes a |
14 | Commonwealth agency or the Governor to approve the amount of |
15 | a bond or other security of a county officer or employee, the |
16 | amount of required security under this subchapter shall be |
17 | subject to approval by the Commonwealth agency or the |
18 | Governor, which approval shall not be unreasonably withheld. |
19 | PART IV | <-- |
20 | (Reserved) |
21 | PART V |
22 | REVENUE |
23 | Chapter |
24 | 15. Effects of Natural Gas Drilling |
25 | 17. Marcellus Shale Job Creation Tax Credit |
26 | CHAPTER 15 |
27 | EFFECTS OF NATURAL GAS DRILLING |
28 | Sec. |
29 | 1501. Short title and scope of chapter. |
30 | 1502. Definitions. |
|
1 | 1503. Imposition of tax. |
2 | 1503.1. Tax rate adjustment. |
3 | 1504. Return and payment. |
4 | 1505. Natural gas severance tax registration. |
5 | 1505.1. Meters. |
6 | 1506. Assessments. |
7 | 1507. Time for assessment. |
8 | 1508. Extension of assessment period. |
9 | 1509. Reassessments. |
10 | 1510. Interest. |
11 | 1511. Penalties. |
12 | 1512. Criminal acts. |
13 | 1513. Abatement of additions or penalties. |
14 | 1514. Bulk and auction sales. |
15 | 1515. Collection upon failure to request reassessment, review |
16 | or appeal. |
17 | 1516. Tax liens. |
18 | 1517. Tax suit reciprocity. |
19 | 1518. Service. |
20 | 1519. Refunds. |
21 | 1520. Refund petition. |
22 | 1521. Rules and regulations. |
23 | 1522. Recordkeeping. |
24 | 1523. Examinations. |
25 | 1524. Unauthorized disclosure. |
26 | 1525. Cooperation with other governments. |
27 | 1526. Bonds. |
28 | 1527. Accounts established. |
29 | 1528. Transfers and distributions. |
30 | 1529. Appropriation. |
|
1 | § 1501. Short title and scope of chapter. |
2 | (a) Short title.--This chapter shall be known and may be |
3 | cited as the Natural Gas Severance Tax Act. |
4 | (b) Scope of chapter.--This chapter shall relate to the |
5 | ability of all counties within this Commonwealth to ameliorate |
6 | the effects of natural gas drilling that occurs within their |
7 | borders. |
8 | § 1502. Definitions. |
9 | The following words and phrases when used in this chapter |
10 | shall have the meanings given to them in this section unless the |
11 | context clearly indicates otherwise: |
12 | "Accredited laboratory." A facility engaged in the testing |
13 | and calibration of scientific measurement devices and certified |
14 | by the Department of Environmental Protection as having met the |
15 | department's standards for accreditation. |
16 | "Association." A partnership, limited partnership or any |
17 | other form of unincorporated enterprise owned or conducted by |
18 | two or more persons. |
19 | "Base rate." The rate under section 1503(a) (relating to |
20 | imposition of tax). |
21 | "Coal bed methane." Gas which can be produced from coal |
22 | beds, coal seams, mined-out areas or gob wells. |
23 | "Corporation." A corporation, joint stock association, |
24 | limited liability company, business trust or any other |
25 | incorporated enterprise organized under the laws of this |
26 | Commonwealth, the United States or any other state, territory or |
27 | foreign country or dependency. |
28 | "Department." The Department of Revenue of the Commonwealth. |
29 | "Fund." The Natural Gas Severance Tax Fund established under |
30 | section 1527 (relating to accounts established). |
|
1 | "Meter." A device to measure the passage of volumes of gases |
2 | or liquids past a certain point. |
3 | "Municipality." A city, borough, incorporated town or |
4 | township. |
5 | "Natural gas." A fossil fuel consisting of a mixture of |
6 | hydrocarbon gases, primarily methane, possibly including ethane, |
7 | propane, butane, pentane, carbon dioxide, oxygen, nitrogen and |
8 | hydrogen sulfide and other gas species. The term includes |
9 | natural gas from oil fields known as associated gas or casing |
10 | head gas, natural gas fields known as nonassociated gas, coal |
11 | beds, shale beds and other formations. The term does not include |
12 | coal bed methane. |
13 | "Nonproducing site." A point of severance that is not |
14 | capable of producing natural gas in paying quantities. |
15 | "Paying quantities." Profit to the producer, however small, |
16 | over the producer's current operating expenses. |
17 | "Person." A natural person or a corporation, fiduciary, |
18 | association or other entity, including the Commonwealth, its |
19 | political subdivisions, instrumentalities and authorities. When |
20 | the term is used in a clause prescribing and imposing a penalty |
21 | or imposing a fine or imprisonment, or both, the term shall |
22 | include the members, as applied to an association, and the |
23 | officers, as applied to a corporation. |
24 | "Producer." A person who engages or continues within this |
25 | Commonwealth in the business of severing natural gas for sale, |
26 | profit or commercial use. The term does not include a person who |
27 | severs natural gas from a storage field. |
28 | "Producing site." A point of severance capable of producing |
29 | natural gas in paying quantities. |
30 | "Reporting period." A calendar month in which natural gas is |
|
1 | severed. |
2 | "Secretary." The Secretary of Revenue of the Commonwealth. |
3 | "Sever." To extract or otherwise remove natural gas from the |
4 | soil or water of this Commonwealth. |
5 | "Severance." The extraction or other removal of natural gas |
6 | from the soil or water of this Commonwealth. |
7 | "Severing." Extracting or otherwise removing natural gas |
8 | from the soil or water of this Commonwealth. |
9 | "Storage field." A natural formation or other site that is |
10 | used to store natural gas that did not originate from and has |
11 | been injected into the formation or site. |
12 | "Stripper well." A producing site or a nonproducing site |
13 | that is not capable of producing and does not produce more than |
14 | 60,000 cubic feet of natural gas per day. |
15 | "Tax." The tax imposed under this chapter. |
16 | "Tax rate adjustment index." The amount calculated under |
17 | section 1503(b) (relating to imposition of tax) by which the |
18 | rate of the tax imposed under section 1503(a) is adjusted |
19 | annually. |
20 | "Taxpayer." A person subject to the tax imposed by this |
21 | chapter. |
22 | "Unit." A thousand cubic feet of natural gas measured at the |
23 | wellhead at a temperature of 60 degrees Fahrenheit and an |
24 | absolute pressure of 14.73 pounds per square inch in accordance |
25 | with American Gas Association Standards and according to Boyle's |
26 | Law for the measurement of gas under varying pressures with |
27 | deviations as follows: |
28 | (1) The average absolute atmospheric pressure shall be |
29 | assumed to be 14.4 pounds to the square inch, regardless of |
30 | elevation or location of point of delivery above sea level or |
|
1 | variations in atmospheric pressure from time to time. |
2 | (2) The temperature of the gas passing the meters shall |
3 | be determined by the continuous use of a recording |
4 | thermometer installed to properly record the temperature of |
5 | gas flowing through the meters. The arithmetic average of the |
6 | temperature recorded each 24-hour day shall be used in |
7 | computing gas volumes. If a recording thermometer is not |
8 | installed, or is installed and not operating properly, an |
9 | average flowing temperature of 60 degrees Fahrenheit shall be |
10 | used in computing gas volume. |
11 | (3) The specific gravity of the gas shall be determined |
12 | annually by tests made by the use of an Edwards or Acme |
13 | gravity balance, or at intervals as found necessary in |
14 | practice. Specific gravity determinations shall be used in |
15 | computing gas volumes. |
16 | (4) The deviation of the natural gas from Boyle's Law |
17 | shall be determined by annual tests or at other shorter |
18 | intervals as found necessary in practice. The apparatus and |
19 | method used in making the test shall be in accordance with |
20 | recommendations of the National Bureau of Standards or Report |
21 | No. 3 of the Gas Measurement Committee of the American Gas |
22 | Association, or amendments thereto. The results of the tests |
23 | shall be used in computing the volume of gas delivered under |
24 | this chapter. |
25 | "Wellhead meter." A meter placed at a producing or |
26 | nonproducing site to measure the volume of natural gas severed |
27 | for which a wellhead meter certification has been issued. |
28 | "Wellhead meter certification." A report issued by an |
29 | accredited laboratory certifying the accuracy of a wellhead |
30 | meter. |
|
1 | § 1503. Imposition of tax. |
2 | (a) Establishment.--Beginning January 1, 2011, there shall |
3 | be levied a natural gas severance tax on every producer. The tax |
4 | shall not be imposed on units severed from a stripper well |
5 | unless the following are true: |
6 | (1) The stripper well is one of multiple producing sites |
7 | or nonproducing sites, the combined volumes of gas produced |
8 | by all of which sites are measured by a single wellhead meter |
9 | as provided in section 1505.1 (relating to meters). |
10 | (2) The combined volumes of gas produced by all the |
11 | producing sites or nonproducing sites described in paragraph |
12 | (1) is more than 60,000 cubic feet of natural gas per day. |
13 | (a.1) Exemptions.--The tax shall not be imposed on the |
14 | following: |
15 | (1) Units severed by a producer and sold and delivered |
16 | to a manufacturer of tangible personal property, as defined |
17 | in section 201(m) of the act of March 4, 1971 (P.L.6, No.2), |
18 | known as the Tax Reform Code of 1971, for the manufacturer's |
19 | use within this Commonwealth if the units have been severed |
20 | from one or more producing sites or nonproducing sites on |
21 | property owned by the manufacturer. |
22 | (2) Units provided free of charge to the owner of the |
23 | surface under which the gas is severed if the surface owner |
24 | is the end user of the gas. |
25 | (b) Rate.--Subject to the provisions of section 1503.1 |
26 | (relating to natural gas base rate adjustment), the rate shall |
27 | be 39¢ per unit severed at the wellhead. |
28 | § 1503.1. Tax rate adjustment. |
29 | (a) Annual adjustment.--The tax rate shall be adjusted |
30 | annually by the amount of the tax rate adjustment index as |
|
1 | calculated under subsection (c), provided that the tax rate |
2 | shall never be less than the base rate. The adjusted tax rate |
3 | shall be effective for the next year. |
4 | (b) Determination of adjustment.--On or before April 30 of |
5 | each year following the effective date of this section, the |
6 | secretary shall calculate and determine the amount of the tax |
7 | rate adjustment index. |
8 | (c) Calculation of adjustment.--The base rate adjustment |
9 | index shall be determined as follows: |
10 | (1) If 7% of the average of New York Mercantile Exchange |
11 | (NYMEX) Henry Hub settled price on the last trading day of |
12 | the month, as reported by the Wall Street Journal for the |
13 | previous 12-month period ending March 31, is less than the |
14 | base rate, the tax rate adjustment index shall be zero and |
15 | the adjusted tax rate shall be the base rate. |
16 | (2) If 7% of the average of the NYMEX Henry Hub settled |
17 | price on the last trading day of the month, as reported by |
18 | the Wall Street Journal for the previous 12-month period |
19 | ending March 31, is greater than the base rate, the tax rate |
20 | adjustment index shall be 50% of the difference between 7% of |
21 | the average of the NYMEX Henry Hub settled price on the last |
22 | trading day of the month, as reported in the Wall Street |
23 | Journal for the previous 12-month period ending March 31, and |
24 | the base rate. The adjusted tax rate shall be the resulting |
25 | tax rate adjustment index plus the base rate. |
26 | (d) Publication of adjustment.--The secretary shall forward |
27 | the amount of the tax rate adjustment index and the adjusted tax |
28 | rate, as determined under subsection (c), to the Legislative |
29 | Reference Bureau for publication in the Pennsylvania Bulletin by |
30 | May 1 of each year and shall simultaneously provide the |
|
1 | information to producers by written notice. Failure of the |
2 | amount of the tax rate adjustment index and the adjusted tax |
3 | rate to be published or provided to producers as required by |
4 | this subsection shall not affect the effectiveness of the |
5 | adjusted tax rate under subsection (b). |
6 | (e) Discontinuance of data.--If publication of the NYMEX |
7 | Henry Hub average monthly gas price data is discontinued, the |
8 | tax rate then in effect shall not be adjusted until a comparable |
9 | method for determining the tax rate adjustment index is adopted |
10 | by the General Assembly in legislation. |
11 | (f) Other adjustments.--If the base data of the NYMEX Henry |
12 | Hub average monthly gas price is substantially revised, the |
13 | secretary shall, when determining the amount of the tax rate |
14 | adjustment index under subsection (c), make appropriate changes |
15 | to ensure that the tax rate adjustment index is reasonably |
16 | consistent with the result which would have been attained had |
17 | the substantial revision not been made. If the secretary is |
18 | unable to make reasonable changes sufficient to ensure a |
19 | consistent result, the tax rate then in effect shall not be |
20 | adjusted until a comparable method for determining the tax rate |
21 | adjustment index is adopted by the General Assembly in |
22 | legislation. |
23 | (g) Application of rate determinations.--The provisions of |
24 | this section shall affect only the determination of the rate of |
25 | the tax on the severance units of natural gas imposed in section |
26 | 1503 (relating to imposition of tax). The provisions of this |
27 | section are not intended, nor shall they be construed, to affect |
28 | any other determination whatsoever, including, but not limited |
29 | to, the determination of royalty due under mineral leases. |
30 | Notwithstanding any other provision of law, the tax imposed by |
|
1 | this chapter shall not reduce any royalty payments due under |
2 | mineral leases and the producer may not recover any portion of |
3 | the tax paid from the royalty owner through other means of |
4 | deduction or reallocation, notwithstanding any provision in the |
5 | lease, contract or agreement. |
6 | § 1504. Return and payment. |
7 | (a) Requirement.--Every producer is required to file a |
8 | return with the department, on a form prescribed by the |
9 | department, which shall include all of the following: |
10 | (1) The number of natural gas units severed by the |
11 | producer for the reporting period. |
12 | (2) The number of producing sites used by the producer |
13 | for the severance of natural gas in each county and |
14 | municipality. |
15 | (3) The amount of tax due under section 1503 (relating |
16 | to imposition of tax). |
17 | (b) Filing.--The return required by subsection (a) shall be |
18 | filed with the department within 15 days following the end of a |
19 | reporting period. |
20 | (c) Deadline.--The tax imposed under section 1503 is due on |
21 | the day the return is required to be filed and becomes |
22 | delinquent if not remitted to the department by that date. |
23 | § 1505. Natural gas severance tax registration. |
24 | (a) Application.--Before a producer severs natural gas in |
25 | this Commonwealth, the producer shall apply to the department |
26 | for a natural gas severance tax registration certificate. |
27 | (a.1) Application fee.--The department may charge an |
28 | application fee to cover the administrative costs associated |
29 | with the application and registration process. If the department |
30 | charges an application fee, the department shall not issue a |
|
1 | registration certificate until the producer has paid the |
2 | application fee. |
3 | (a.2) Declaration.--The producer shall include in its |
4 | application a declaration of all producing sites and |
5 | nonproducing sites used by the producer for the severance of |
6 | natural gas. The declaration shall include copies of wellhead |
7 | meter certifications for each site. The producer is required to |
8 | update the declaration when the producer adds or removes a |
9 | producing site or nonproducing site in this Commonwealth or when |
10 | there is a change in the status of a producing site or |
11 | nonproducing site or when the producer uses a different |
12 | accredited laboratory to issue a wellhead meter certification. |
13 | The producer shall update the declaration within 30 days after a |
14 | calendar month in which a change to the declaration occurs. |
15 | (b) Issuance.--Except as provided in subsection (c), after |
16 | the receipt of an application, the department shall issue a |
17 | registration certificate under subsection (a). The registration |
18 | certificate shall be nonassignable. All registrants shall be |
19 | required to renew their registration certificates and wellhead |
20 | meter certifications on a staggered renewal system established |
21 | by the department. After the initial staggered renewal period, a |
22 | registration certificate or a wellhead meter certification |
23 | issued shall be valid for a period of five years. |
24 | (c) Refusal, suspension or revocation.--The department may |
25 | refuse to issue, suspend or revoke a registration certificate if |
26 | the applicant or registrant has not filed required State tax |
27 | reports and paid State taxes not subject to a timely perfected |
28 | administrative or judicial appeal or subject to a duly |
29 | authorized deferred payment plan. The department shall notify |
30 | the applicant or registrant of any refusal, suspension or |
|
1 | revocation. The notice shall contain a statement that the |
2 | refusal, suspension or revocation may be made public. The notice |
3 | shall be made by first class mail. An applicant or registrant |
4 | aggrieved by the determination of the department may file an |
5 | appeal under the provisions for administrative appeals in the |
6 | act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code |
7 | of 1971. In the case of a suspension or revocation which is |
8 | appealed, the registration certificate shall remain valid |
9 | pending a final outcome of the appeals process. Notwithstanding |
10 | sections 274, 353(f), 408(b), 603, 702, 802, 904 and 1102 of the |
11 | Tax Reform Code of 1971 or any other provision of law, if no |
12 | appeal is taken or if an appeal is taken and denied at the |
13 | conclusion of the appeal process the department may disclose, by |
14 | publication or otherwise, the identity of a producer and the |
15 | fact that the producer's registration certificate has been |
16 | refused, suspended or revoked under this subsection. Disclosure |
17 | may include the basis for refusal, suspension or revocation. |
18 | (d) Violation.--A person severing natural gas in this |
19 | Commonwealth without holding a valid registration certificate |
20 | under subsection (b) shall be guilty of a summary offense and |
21 | shall, upon conviction, be sentenced to pay a fine of not less |
22 | than $300 nor more than $1,500. In the event the person |
23 | convicted defaults in the payment of the fine, he shall be |
24 | sentenced to imprisonment for not less than five days nor more |
25 | than 30 days. The penalties imposed by this subsection shall be |
26 | in addition to any other penalties imposed by this chapter. For |
27 | purposes of this subsection, the severing of natural gas during |
28 | any calendar day shall constitute a separate violation. The |
29 | secretary may designate employees of the department to enforce |
30 | the provisions of this subsection. The employees shall exhibit |
|
1 | proof of and be within the scope of the designation when |
2 | instituting proceedings as provided by the Pennsylvania Rules of |
3 | Criminal Procedure. |
4 | (e) Failure to obtain registration certificate.--Failure to |
5 | obtain or hold a valid registration certificate does not relieve |
6 | a person from liability for the tax imposed by this chapter. |
7 | § 1505.1. Meters. |
8 | (a) General rule.--Except as provided in subsection (b), a |
9 | producer shall provide for and maintain a discrete wellhead |
10 | meter where natural gas is severed. A producer shall ensure that |
11 | the meters are maintained according to industry standards. Any |
12 | wellhead meter installed after the effective date of this |
13 | section shall be a digital meter. |
14 | (b) Exception.--If a producer has multiple producing sites |
15 | or nonproducing sites, the combined volumes of gas produced by |
16 | all of which sites are measured by a single wellhead meter, the |
17 | producer shall not be required to provide for a discrete |
18 | wellhead meter at any of those producing sites or nonproducing |
19 | sites that is also a stripper well. |
20 | § 1506. Assessments. |
21 | (a) Authorization and requirement.--The department is |
22 | authorized and shall make the inquiries, determinations and |
23 | assessments of the tax imposed under this chapter, including |
24 | interest, additions and penalties imposed under this chapter. |
25 | (b) Notice.--The notice of assessment and demand for payment |
26 | shall be mailed to the taxpayer. The notice shall set forth the |
27 | basis of the assessment. The department shall send the notice of |
28 | assessment to the taxpayer at its registered address via |
29 | certified mail if the assessment increases the taxpayer's tax |
30 | liability by $300. Otherwise, the notice of assessment may be |
|
1 | sent via regular mail. |
2 | § 1507. Time for assessment. |
3 | (a) Requirement.--An assessment as provided under section |
4 | 1506 (relating to assessments) shall be made within three years |
5 | after the date when the return provided for by section 1504 |
6 | (relating to return and payment) is filed or the end of the year |
7 | in which the tax liability arises, whichever shall occur last. |
8 | For the purposes of this subsection and subsection (b), a return |
9 | filed before the last day prescribed for the filing period shall |
10 | be considered as filed on the last day. |
11 | (b) Exception.--If the taxpayer underpays the correct amount |
12 | of the tax due by 25% or more, the tax may be assessed within |
13 | six years after the date the return was filed. |
14 | (c) Intent to evade.--Where no return is filed or where the |
15 | taxpayer files a false or fraudulent return with intent to evade |
16 | the tax imposed by this chapter, the assessment may be made at |
17 | any time. |
18 | (d) Erroneous credit or refund.--Within three years of the |
19 | granting of a refund or credit or within the period in which an |
20 | assessment or reassessment may have been issued by the |
21 | department for the taxable period for which the refund was |
22 | granted, whichever period shall last occur, the department may |
23 | issue an assessment to recover a refund or credit made or |
24 | allowed erroneously. |
25 | § 1508. Extension of assessment period. |
26 | Notwithstanding the provisions of this chapter, the |
27 | assessment period may be extended in the event a taxpayer has |
28 | provided written consent before the expiration of the period |
29 | provided in section 1507 (relating to time for assessment) for a |
30 | tax assessment. The amount of tax due may be assessed at any |
|
1 | time within the extended period. The period may be extended |
2 | further by subsequent written consents made before the |
3 | expiration of the extended period. |
4 | § 1509. Reassessments. |
5 | A taxpayer against whom an assessment is made may petition |
6 | the department for a reassessment under Article XXVII of the act |
7 | of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of |
8 | 1971. |
9 | § 1510. Interest. |
10 | The department shall assess interest on any delinquent tax at |
11 | the rate prescribed under section 806 of the act of April 9, |
12 | 1929 (P.L.343, No.176), known as The Fiscal Code. |
13 | § 1511. Penalties. |
14 | The department shall enforce the following penalties: |
15 | (1) A penalty against a producer without a natural gas |
16 | severance tax registration certificate. The penalty shall be |
17 | $1 for every unit severed without a valid registration |
18 | certificate. The department may assess this penalty |
19 | separately from or in conjunction with any assessment of the |
20 | natural gas severance tax. |
21 | (2) A penalty against a producer for failure to timely |
22 | file a return as required under section 1504 (relating to |
23 | return and payment). The penalty shall be 5% of the tax |
24 | liability to be reported on the return for each day beyond |
25 | the due date that the return is not filed. |
26 | (3) In addition to the penalty under paragraph (2), a |
27 | penalty against the producer for a willful failure to timely |
28 | file a return. The penalty shall be 200% of the tax liability |
29 | required to be reported on the return. |
30 | (4) A penalty against a producer for failure to timely |
|
1 | pay the tax as required by section 1504(c). The penalty shall |
2 | be 5% of the amount of tax due for each day beyond the |
3 | payment date that the tax is not paid. |
4 | § 1512. Criminal acts. |
5 | (a) Fraudulent return.--Any person with intent to defraud |
6 | the Commonwealth, who willfully makes or causes to be made a |
7 | return required by this chapter which is false, is guilty of a |
8 | misdemeanor and shall, upon conviction, be sentenced to pay a |
9 | fine of not more than $2,000 or to imprisonment for not more |
10 | than three years, or both. |
11 | (b) Other crimes.-- |
12 | (1) Except as otherwise provided by subsection (a), a |
13 | person is guilty of a misdemeanor and shall, upon conviction, |
14 | be sentenced to pay a fine of not more than $1,000 and costs |
15 | of prosecution or to imprisonment for not more than one year, |
16 | or both, for any of the following: |
17 | (i) Willfully failing to timely remit the tax to the |
18 | department. |
19 | (ii) Willfully failing or neglecting to timely file |
20 | a return or report required by this chapter. |
21 | (iii) Refusing to timely pay a tax, penalty or |
22 | interest imposed or provided for by this chapter. |
23 | (iv) Willfully failing to preserve its books, papers |
24 | and records as directed by the department. |
25 | (v) Refusing to permit the department or its |
26 | authorized agents to examine its books, records or |
27 | papers. |
28 | (vi) Knowingly making any incomplete, false or |
29 | fraudulent return or report. |
30 | (vii) Preventing or attempting to prevent the full |
|
1 | disclosure of the amount of natural gas severance tax |
2 | due. |
3 | (viii) Providing any person with a false statement |
4 | as to the payment of the tax imposed under this chapter |
5 | with respect to any pertinent facts. |
6 | (ix) Making, uttering or issuing a false or |
7 | fraudulent statement. |
8 | (2) The penalties imposed by this section shall be in |
9 | addition to other penalties imposed by this chapter. |
10 | § 1513. Abatement of additions or penalties. |
11 | Upon the filing of a petition for reassessment or a petition |
12 | for refund by a taxpayer as provided under this chapter, |
13 | additions or penalties imposed upon the taxpayer by this chapter |
14 | may be waived or abated in whole or in part where the petitioner |
15 | establishes that he acted in good faith, without negligence and |
16 | with no intent to defraud. |
17 | § 1514. Bulk and auction sales. |
18 | A person that sells or causes to be sold at auction, or that |
19 | sells or transfers in bulk, 51% or more of a stock of goods, |
20 | wares or merchandise of any kind, fixtures, machinery, |
21 | equipment, buildings or real estate involved in a business for |
22 | which the person holds a registration certificate or is required |
23 | to obtain a registration certificate under the provisions of |
24 | this chapter shall be subject to the provisions of section 1403 |
25 | of the act of April 9, 1929 (P.L.343, No.176), known as The |
26 | Fiscal Code. |
27 | § 1515. Collection upon failure to request reassessment, review |
28 | or appeal. |
29 | (a) Power of department.--The department may collect the tax |
30 | imposed under this chapter: |
|
1 | (1) If an assessment of the tax is not paid within 30 |
2 | days after notice to the taxpayer when no petition for |
3 | reassessment has been filed. |
4 | (2) Within 60 days of the reassessment, if no petition |
5 | for review has been filed. |
6 | (3) If no appeal has been made, within 30 days of: |
7 | (i) the Board of Finance and Revenue's decision of a |
8 | petition for review; or |
9 | (ii) the expiration of the board's time for acting |
10 | upon the petition. |
11 | (4) In all cases of judicial sales, receiverships, |
12 | assignments or bankruptcies. |
13 | (b) Prohibition.--In a case for the collection of taxes |
14 | under subsection (a), the taxpayer against whom they were |
15 | assessed shall not be permitted to set up a ground of defense |
16 | that might have been determined by the department, the Board of |
17 | Finance and Revenue or the courts, provided that the defense of |
18 | failure of the department to mail notice of assessment or |
19 | reassessment to the taxpayer and the defense of payment of |
20 | assessment or reassessment may be raised in proceedings for |
21 | collection by a motion to stay the proceedings. |
22 | § 1516. Tax liens. |
23 | (a) Lien imposed.--If any taxpayer neglects or refuses to |
24 | pay the tax imposed under this chapter for which the taxpayer is |
25 | liable under this chapter after demand, the amount, including |
26 | interest, addition or penalty, together with additional costs |
27 | that may accrue, shall be a lien in favor of the Commonwealth |
28 | upon the real and personal property of the taxpayer but only |
29 | after the same has been entered and docketed of record by the |
30 | prothonotary of the county where the property is situated. The |
|
1 | department may, at any time, transmit to the prothonotaries of |
2 | the respective counties certified copies of all liens imposed by |
3 | this section. It shall be the duty of the prothonotary receiving |
4 | the lien to enter and docket the same of record to the office of |
5 | the prothonotary. The lien shall be indexed as judgments are now |
6 | indexed. No prothonotary shall require as a condition precedent |
7 | to the entry of the lien the payment of costs incidental to its |
8 | entry. |
9 | (b) Priority of lien and effect on judicial sale.--Except |
10 | for the costs of the sale and the writ upon which the sale was |
11 | made and real estate taxes and municipal claims against the |
12 | property, a lien imposed under this section shall have priority |
13 | from the date of its recording and shall be fully paid and |
14 | satisfied out of the proceeds of any judicial sale of property |
15 | subject to the lien, before any other obligation, judgment, |
16 | claim, lien or estate to which the property may subsequently |
17 | become subject, but shall be subordinate to mortgages and other |
18 | liens existing and duly recorded or entered of record prior to |
19 | the recording of the lien. |
20 | (c) No discharge by sale on junior lien.--In the case of a |
21 | judicial sale of property subject to a lien imposed under this |
22 | section, upon a lien or claim over which the lien imposed under |
23 | this section has priority, the sale shall discharge the lien |
24 | imposed under this section to the extent only that the proceeds |
25 | are applied to its payment, and the lien shall continue in full |
26 | force and effect as to the balance remaining unpaid. There shall |
27 | be no inquisition or condemnation upon any judicial sale of real |
28 | estate made by the Commonwealth under the provisions of this |
29 | chapter. The lien shall continue as provided in the act of April |
30 | 9, 1929 (P.L.343, No.176), known as The Fiscal Code, and a writ |
|
1 | of execution may directly issue upon the lien without the |
2 | issuance and prosecution to judgment of a writ of scire facias, |
3 | provided that not less than ten days before issuance of any |
4 | execution on the lien, notice of the filing and the effect of |
5 | the lien shall be sent by registered mail to the taxpayer at its |
6 | last known post office address, provided further that the lien |
7 | shall have no effect upon any stock of goods, wares or |
8 | merchandise regularly sold or leased in the ordinary course of |
9 | business by the taxpayer against whom the lien has been entered, |
10 | unless and until a writ of execution has been issued and a levy |
11 | made upon the stock of goods, wares and merchandise. |
12 | (d) Duty of prothonotary.--Any willful failure of any |
13 | prothonotary to carry out any duty imposed upon him by this |
14 | section shall be a misdemeanor. Upon conviction, he shall be |
15 | sentenced to pay a fine of not more than $1,000 and costs of |
16 | prosecution or to imprisonment for not more than one year, or |
17 | both. |
18 | (e) Priority.--Except as provided in this chapter, the |
19 | distribution, voluntary or compulsory, in receivership, |
20 | bankruptcy or otherwise of the property or estate of any person, |
21 | all taxes imposed by this chapter which are due and unpaid and |
22 | are not collectible under the provisions of section 225 of the |
23 | act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code |
24 | of 1971, shall be paid from the first money available for |
25 | distribution in priority to all other claims and liens, except |
26 | as the laws of the United States may give priority to a claim to |
27 | the Federal Government. A person charged with the administration |
28 | or distribution of the property or estate who violates the |
29 | provisions of this section shall be personally liable for the |
30 | taxes imposed by this chapter which are accrued and unpaid and |
|
1 | chargeable against the person whose property or estate is being |
2 | administered or distributed. |
3 | (f) Other remedies.--Subject to the limitations contained in |
4 | this chapter as to the assessment of taxes, nothing contained in |
5 | this section shall be construed to restrict, prohibit or limit |
6 | the use by the department in collecting taxes due and payable of |
7 | another remedy or procedure available at law or equity for the |
8 | collection of debts. |
9 | § 1517. Tax suit reciprocity. |
10 | The courts of this Commonwealth shall recognize and enforce |
11 | liabilities for natural gas severance or extraction taxes |
12 | lawfully imposed by any other state, provided that the other |
13 | state recognizes and enforces the tax imposed under this |
14 | chapter. |
15 | § 1518. Service. |
16 | A producer is deemed to have appointed the Secretary of the |
17 | Commonwealth its agent for the acceptance of service of process |
18 | or notice in a proceeding for the enforcement of the civil |
19 | provisions of this chapter and service made upon the Secretary |
20 | of the Commonwealth as agent shall be of the same legal force |
21 | and validity as if the service had been personally made upon the |
22 | producer. Where service cannot be made upon the producer in the |
23 | manner provided by other laws of this Commonwealth relating to |
24 | service of process, service may be made upon the Secretary of |
25 | the Commonwealth. In that case, a copy of the process or notice |
26 | shall be personally served upon any agent or representative of |
27 | the producer who may be found within this Commonwealth or, where |
28 | no agent or representative may be found, a copy of the process |
29 | or notice shall be sent via registered mail to the producer at |
30 | the last known address of its principal place of business, home |
|
1 | office or residence. |
2 | § 1519. Refunds. |
3 | Under Article XXVII of the act of March 4, 1971 (P.L.6, |
4 | No.2), known as the Tax Reform Code of 1971, the department |
5 | shall refund all taxes, interest and penalties paid to the |
6 | Commonwealth under the provisions of this chapter to which the |
7 | Commonwealth is not rightfully entitled. The refunds shall be |
8 | made to the person or the person's heirs, successors, assigns or |
9 | other personal representatives who paid the tax, provided that |
10 | no refund shall be made under this section regarding a payment |
11 | made by reason of an assessment where a taxpayer has filed a |
12 | petition for reassessment under section 2702 of the Tax Reform |
13 | Code of 1971 to the extent the petition is adverse to the |
14 | taxpayer by a decision which is no longer subject to further |
15 | review or appeal. Nothing in this chapter shall prohibit a |
16 | taxpayer who has filed a timely petition for reassessment from |
17 | amending it to a petition for refund where the petitioner paid |
18 | the tax assessed. |
19 | § 1520. Refund petition. |
20 | (a) General rule.--Except as provided for in subsection (b), |
21 | the refund or credit of tax, interest or penalty provided for by |
22 | section 1519 (relating to refunds) shall be made only where the |
23 | person who has paid the tax files a petition for refund with the |
24 | department under Article XXVII of the act of March 4, 1971 |
25 | (P.L.6, No.2), known as the Tax Reform Code of 1971, within the |
26 | time limits of section 3003.1 of the Tax Reform Code of 1971. |
27 | (b) Natural gas severance tax.--A refund or credit of tax, |
28 | interest or penalty paid as a result of an assessment made by |
29 | the department under section 1505 (relating to natural gas |
30 | severance tax registration) shall be made only where the person |
|
1 | who has paid the tax files with the department a petition for a |
2 | refund with the department under Article XXVII of the Tax Reform |
3 | Code of 1971 within the time limits of section 3003.1 of the Tax |
4 | Reform Code of 1971. The filing of a petition for refund, under |
5 | the provisions of this subsection, shall not affect the |
6 | abatement of interest, additions or penalties to which the |
7 | person may be entitled by reason of his payment of the |
8 | assessment. |
9 | § 1521. Rules and regulations. |
10 | The department is charged with the enforcement of the |
11 | provisions of this chapter and is authorized and empowered to |
12 | prescribe, adopt, promulgate and enforce rules and regulations |
13 | not inconsistent with the provisions of this chapter relating to |
14 | any matter or thing pertaining to the administration and |
15 | enforcement of the provisions of this chapter and the collection |
16 | of taxes, penalties and interest imposed by this chapter. The |
17 | department may prescribe the extent, if any, to which any of the |
18 | rules and regulations shall be applied without retroactive |
19 | effect. |
20 | § 1522. Recordkeeping. |
21 | (a) General rule.--Every person liable for any tax imposed |
22 | by this chapter, or for the collection of the tax, shall keep |
23 | records, including those enumerated in subsection (b), render |
24 | statements, make returns and comply with the rules and |
25 | regulations as the department may prescribe regarding matters |
26 | pertinent to the person's business. Whenever it is necessary, |
27 | the department may require a person, by notice served upon the |
28 | person or by regulations, to make returns, render statements or |
29 | keep records as the department deems sufficient to show whether |
30 | or not a person is liable to pay tax under this chapter. |
|
1 | (a.1) Records.--Records to be maintained are: |
2 | (1) Wellhead meter charts for each reporting period and |
3 | the meter calibration and maintenance records. If turbine |
4 | meters are in use, the maintenance records will be made |
5 | available to the department upon request. |
6 | (2) Records, statements and other instruments furnished |
7 | to a producer by a person to whom the producer delivers for |
8 | sale, transport or delivery of natural gas. |
9 | (3) Records, statements and other instruments as the |
10 | department may prescribe by regulation. |
11 | (b) Records of nonresidents.--A nonresident who does |
12 | business in this Commonwealth as a producer shall keep adequate |
13 | records of the business and of the tax due as a result. The |
14 | records shall be retained within this Commonwealth unless |
15 | retention outside this Commonwealth is authorized by the |
16 | department. The department may require a taxpayer who desires to |
17 | retain records outside this Commonwealth to assume reasonable |
18 | out-of-State audit expenses. |
19 | (c) Keeping of separate records.--A producer who is engaged |
20 | in another business or businesses which do not involve the |
21 | severing of natural gas taxable under this chapter shall keep |
22 | separate books and records of the businesses so as to show the |
23 | taxable severing of natural gas under this chapter separately |
24 | from other business activities not taxable hereunder. If any |
25 | person fails to keep separate books and records, the person |
26 | shall be liable for a penalty equaling 100% of tax due under |
27 | this chapter for the period where separate records were not |
28 | maintained. |
29 | § 1523. Examinations. |
30 | The department or any of its authorized agents are authorized |
|
1 | to examine the books, papers and records of any taxpayer in |
2 | order to verify the accuracy and completeness of any return made |
3 | or, if no return was made, to ascertain and assess the tax |
4 | imposed by this chapter. The department may require the |
5 | preservation of all books, papers and records for any period |
6 | deemed proper by it but not to exceed three years from the end |
7 | of the calendar year to which the records relate. Every taxpayer |
8 | is required to give to the department or its agent the means, |
9 | facilities and opportunity for examinations and investigation |
10 | under this section. The department is further authorized to |
11 | examine any person, under oath, concerning the taxable severing |
12 | of natural gas by any taxpayer or concerning any other matter |
13 | relating to the enforcement or administration of this chapter, |
14 | and to this end may compel the production of books, papers and |
15 | records and the attendance of all persons whether as parties or |
16 | witnesses whom it believes to have knowledge of relevant |
17 | matters. The procedure for the hearings or examinations shall be |
18 | the same as that provided by the act of April 9, 1929 (P.L.343, |
19 | No. 176), known as The Fiscal Code. |
20 | § 1524. Unauthorized disclosure. |
21 | Any information gained by the department as a result of any |
22 | return, examination, investigation, hearing or verification |
23 | required or authorized by this chapter shall be confidential |
24 | except for official purposes and except in accordance with |
25 | proper judicial order or as otherwise provided by law, and any |
26 | person unlawfully divulging the information shall be guilty of a |
27 | misdemeanor and shall, upon conviction, be sentenced to pay a |
28 | fine of not more than $1,000 and costs of prosecution or to |
29 | imprisonment for not more than one year, or both. |
30 | § 1525. Cooperation with other governments. |
|
1 | Notwithstanding the provisions of section 1517 (relating to |
2 | tax suit reciprocity), the department may permit the |
3 | Commissioner of the Internal Revenue Service of the United |
4 | States, the proper officer of any state or the authorized |
5 | representative of either of them to inspect the tax returns of |
6 | any taxpayer, or may furnish to the commissioner or officer or |
7 | to either of their authorized representative an abstract of the |
8 | return of any taxpayer, or supply him with information |
9 | concerning any item contained in any return or disclosed by the |
10 | report of any examination or investigation of the return of any |
11 | taxpayer. This permission shall be granted only if the laws of |
12 | the United States or another state grant substantially similar |
13 | privileges to the proper officer of the Commonwealth charged |
14 | with the administration of this chapter. |
15 | § 1526. Bonds. |
16 | (a) Taxpayer to file bond.--The department may require a |
17 | nonresident natural person or any foreign corporation, |
18 | association, fiduciary or other entity, not authorized to do |
19 | business within this Commonwealth or not having an established |
20 | place of business in this Commonwealth and subject to the tax |
21 | imposed by section 1503 (relating to imposition of tax), to file |
22 | a bond issued by a surety company authorized to do business in |
23 | this Commonwealth and approved by the Insurance Commissioner as |
24 | to solvency and responsibility, in amounts as it may fix, to |
25 | secure the payment of any tax or penalties due or which may |
26 | become due from a nonresident natural person, corporation, |
27 | association, fiduciary or other entity whenever it deems it |
28 | necessary to protect the revenues obtained under this chapter. |
29 | The department may also require a bond of a person petitioning |
30 | the department for reassessment in the case of any assessment |
|
1 | over $500 or where, in its opinion, the ultimate collection is |
2 | in jeopardy. For a period of three years, the department may |
3 | require a bond of any person who has, on three or more occasions |
4 | within a 12-month period, either filed a return or made payment |
5 | to the department more than 30 days late. In the event the |
6 | department determines a taxpayer is required to file a bond, it |
7 | shall give notice to the taxpayer specifying the amount of the |
8 | bond required. The taxpayer shall file the bond within five days |
9 | after notice is given by the department unless, within five |
10 | days, the taxpayer shall request in writing a hearing before the |
11 | secretary or his representative. At the hearing, the necessity, |
12 | propriety and amount of the bond shall be determined by the |
13 | secretary or the secretary's representative. The determination |
14 | shall be final and the taxpayer shall comply with it within 15 |
15 | days after notice is mailed to the taxpayer. |
16 | (b) Securities in lieu of bond.--In lieu of the bond |
17 | required by this section securities approved by the department |
18 | or cash in a prescribed amount may be deposited. The securities |
19 | or cash shall be kept in the custody of the department. The |
20 | department may apply the securities or cash to the tax imposed |
21 | by this chapter and interest or penalties due without notice to |
22 | the depositor. The securities may be sold by the department to |
23 | pay the tax and/or interest or penalties due at public or |
24 | private sale upon five days' written notice to the depositor. |
25 | (c) Failure to file bond.--The department may file a lien |
26 | under section 1516 (relating to tax liens) against any taxpayer |
27 | who fails to file a bond when required to do so under this |
28 | section. All funds received upon execution of the judgment on |
29 | the lien shall be refunded to the taxpayer with 3% interest, |
30 | should a final determination be made that it does not owe any |
|
1 | payment to the department. |
2 | § 1527. Accounts established. |
3 | (a) Natural Gas Severance Tax Account.-- |
4 | (1) The Natural Gas Severance Tax Account is established |
5 | as a restricted account within the General Fund. |
6 | (2) The proceeds of the tax imposed under section 1503 |
7 | (relating to imposition of tax) and penalties and interest |
8 | imposed under this chapter, less the amounts appropriated |
9 | under section 1529 (relating to appropriation), shall be |
10 | deposited into the account. |
11 | (3) The money in the account shall only be used in |
12 | accordance with section 1528 (relating to transfers and |
13 | distributions). |
14 | (b) Local Government Services Account.-- |
15 | (1) The Local Government Services Account is established |
16 | as a restricted account within the General Fund. |
17 | (2) The allocation under section 1528(b)(3) shall be |
18 | deposited into the Local Government Services Account and |
19 | shall be distributed as provided in section 1528(c). |
20 | (c) Oil and Gas Environmental Disaster Recovery Account.-- |
21 | (1) The Oil and Gas Environmental Disaster Recovery |
22 | Account is established as a restricted account within the |
23 | General Fund. |
24 | (2) The money in the account shall only be used to |
25 | provide money to fund recovery costs associated with an |
26 | environmental disaster occurring as a result of oil and gas |
27 | drilling within this Commonwealth and shall only be expended |
28 | upon appropriation by the General Assembly. |
29 | § 1528. Transfers and distributions. |
30 | (a) Initial transfers.-- |
|
1 | (1) During fiscal years 2010-2011, 2011-2012 and |
2 | 2012-2013, the State Treasurer shall transfer the first |
3 | $75,000,000 of revenue deposited into the Natural Gas |
4 | Severance Tax Account as follows: |
5 | (i) Five million dollars to the General Fund, which |
6 | is hereby appropriated to the Department of Labor and |
7 | Industry on a continuing basis for job training for |
8 | skills identified by the Department of Labor and Industry |
9 | with the natural gas producing industry. The Department |
10 | of Labor and Industry shall contract with existing public |
11 | institutions of higher education, including community |
12 | colleges, in regions where natural gas drilling occurs |
13 | for these job training programs. |
14 | (ii) Seventy million dollars to the General Fund. |
15 | (2) After the transfers under paragraph (1) are made, |
16 | the money remaining in the account shall be transferred and |
17 | distributed under subsections (b) and (c). |
18 | (b) Monthly transfers and distributions.--Following the |
19 | transfers under subsection (a), on the last business day of each |
20 | calendar month, the State Treasurer shall make the following |
21 | transfers and distributions of the money in the Natural Gas |
22 | Severance Tax Account: |
23 | (1) Sixty Forty percent to the General Fund. | <-- |
24 | (2) Twelve Thirty-two percent to the Environmental | <-- |
25 | Stewardship Fund. |
26 | (3) Sixteen percent to the Local Government Services |
27 | Account, to be further distributed by the State Treasurer |
28 | under subsection (c). |
29 | (4) One and six-tenths percent to the Hazardous Sites |
30 | Cleanup Fund. |
|
1 | (5) Two and four-tenths percent to the Conservation |
2 | District Fund for distribution to county conservation |
3 | districts pursuant to guidelines established by the State |
4 | Conservation Commission. |
5 | (6) One and six-tenths percent to the Pennsylvania Game |
6 | Commission. |
7 | (7) Two One and four-tenths percent to the Pennsylvania | <-- |
8 | Fish and Boat Commission. |
9 | (8) One and six-tenths percent to the Department of |
10 | Public Welfare to provide cash and crisis grants to low- |
11 | income households under the Low Income Home Energy Assistance |
12 | Program. |
13 | (9) One and six-tenths percent to the Oil and Gas |
14 | Environmental Disaster Recovery Account. |
15 | (10) Eight-tenths of one percent to the Department of |
16 | Environmental Protection for State dam removal, restoration |
17 | and repair projects. |
18 | (11) One percent for operation and administration of the | <-- |
19 | Environmental Hearing Board. |
20 | (c) Quarterly distributions.--Following the transfers under |
21 | subsection (a), on the last business day of each period of three |
22 | calendar months, the State Treasurer shall make the following |
23 | distributions from the money in the Local Government Services |
24 | Account: |
25 | (1) Thirty percent to counties with producing sites to |
26 | be used as provided in subsection (d). The money under this |
27 | subparagraph shall be distributed to each eligible county |
28 | based on the following formula: |
29 | (i) Divide: |
30 | (A) the number of producing sites in the county; |
|
1 | by |
2 | (B) the total number of producing sites in all |
3 | the counties in this Commonwealth. |
4 | (ii) Multiply: |
5 | (A) the quotient under subparagraph (i); by |
6 | (B) the amount of money available for |
7 | distribution under this paragraph. |
8 | (2) Forty-five percent to municipalities with producing |
9 | sites. Subject to paragraph (3), the money under this |
10 | subparagraph shall be distributed to each eligible |
11 | municipality based on the following formula: |
12 | (i) Divide: |
13 | (A) the number of producing sites in the |
14 | municipality; by |
15 | (B) the total number of producing sites in all |
16 | municipalities in this Commonwealth. |
17 | (ii) Multiply: |
18 | (A) the quotient under subparagraph (i); by |
19 | (B) the amount of money available for |
20 | distribution under this paragraph. |
21 | (3) All of the following apply to the distribution under |
22 | paragraph (2): |
23 | (i) The amount distributed to a municipality shall |
24 | not exceed 50% of the municipality's total budget for |
25 | fiscal year 2010-2011, adjusted for inflation in |
26 | subsequent years by an amount not to exceed an annual |
27 | cost-of-living adjustment calculated by applying the |
28 | Annual Percent Change in the Consumer Price Index for all |
29 | Urban Consumers immediately prior to the date the |
30 | adjustment is due to take effect. The amount distributed |
|
1 | under this subparagraph shall be used for the following |
2 | purposes: |
3 | (A) Reconstruction, maintenance and repair of |
4 | municipal roadways and bridges, which the |
5 | municipality has determined have been or are being |
6 | used extensively to transport natural gas or |
7 | equipment related to the production of natural gas. |
8 | (B) Preservation and improvement of municipal |
9 | water supplies. |
10 | (C) Maintenance and capital improvements to |
11 | municipal waste and sewage systems. |
12 | (D) Preservation and reclamation of the surface |
13 | waters of the municipality. |
14 | (E) Other lawful purposes reasonably related to |
15 | the health, welfare and safety consequences of |
16 | severing natural gas in the municipality. |
17 | (ii) Any funds not distributed to the municipalities |
18 | in a county because of the budgetary limitations under |
19 | subparagraph (i) shall be distributed to the county to be |
20 | used solely for grants to municipalities to defer the |
21 | cost of regional cooperation endeavors undertaken by the |
22 | municipalities within the county. |
23 | (4) Fifteen percent to municipalities with no producing |
24 | sites located in a county with producing sites. Subject to |
25 | paragraph (5), the money under this subparagraph shall be |
26 | distributed to each eligible municipality based on the |
27 | following formula: |
28 | (i) Divide: |
29 | (A) the number of producing sites in the county; |
30 | by |
|
1 | (B) the total number of producing sites in all |
2 | counties in this Commonwealth. |
3 | (ii) Multiply: |
4 | (A) the quotient under subparagraph (i); by |
5 | (B) the amount of money available for |
6 | distribution under this paragraph. |
7 | (5) All of the following apply to the distribution under |
8 | paragraph (4): |
9 | (i) Subject to the limitation in subparagraph (ii), |
10 | the State Treasurer shall distribute an equal share to |
11 | each eligible municipality within the same county. |
12 | (ii) The amount distributed to a municipality shall |
13 | not exceed 50% of the municipality's total budget for |
14 | fiscal year 2010-2011, adjusted for inflation in |
15 | subsequent years by an amount not to exceed an annual |
16 | cost-of-living adjustment calculated by applying the |
17 | Annual Percent Change in the Consumer Price Index for all |
18 | Urban Consumers immediately prior to the date the |
19 | adjustment is due to take effect. The amount distributed |
20 | under this subparagraph shall be used for the following |
21 | purposes: |
22 | (A) Reconstruction, maintenance and repair of |
23 | municipal roadways and bridges, which the |
24 | municipality has determined have been, or are being, |
25 | used extensively to transport natural gas or |
26 | equipment related to the production of natural gas. |
27 | (B) Preservation and improvement of municipal |
28 | water supplies. |
29 | (C) Maintenance and capital improvements to |
30 | municipal waste and sewage systems. |
|
1 | (D) Preservation and reclamation of surface |
2 | waters of the municipality. |
3 | (E) Other lawful purposes reasonably related to |
4 | the health, welfare and safety consequences of |
5 | severing natural gas in municipalities within the |
6 | county. |
7 | (iii) Any funds not distributed to the |
8 | municipalities in a county because of the budgetary |
9 | limitations under subparagraph (ii) shall be distributed |
10 | to the county to be used solely for grants to |
11 | municipalities to defer the cost of regional cooperation |
12 | endeavors undertaken by the municipalities within the |
13 | county. |
14 | (6) Ten percent to the Pennsylvania Emergency Management |
15 | Agency to be distributed to fire and ambulance services in |
16 | counties with producing sites in accordance with the |
17 | procedures established in the act of July 31, 2003 (P.L.73, |
18 | No.17), known as the Volunteer Fire Company and Volunteer |
19 | Ambulance Service Grant Act. |
20 | (7) Only producing sites and nonproducing sites on which |
21 | the tax is levied under section 1503(a) (relating to |
22 | imposition of tax) during the three-month period for which |
23 | transfers and distributions are made shall be included in any |
24 | of the calculations made under paragraphs (1), (2) and (4) |
25 | for that three-month period. |
26 | (d) Distributions to counties.-- |
27 | (1) The governing body of counties receiving |
28 | distributions under subsection (c)(1) shall administer the |
29 | funds received. The governing body shall give priority to the |
30 | reconstruction, repair and maintenance of county roadways and |
|
1 | bridges, which the governing body has determined have been or |
2 | are being used to transport natural gas or equipment related |
3 | to the production of natural gas. The governing body shall |
4 | allocate the remainder to the county or its municipalities |
5 | for any of the purposes enumerated in subsection (c)(3) or |
6 | (5). A simple majority vote of all of the members of the |
7 | governing body shall be required for any action under this |
8 | paragraph. |
9 | (2) Commencing in 2012, before February 1, each county |
10 | receiving distributions under subsection (c)(1) shall prepare |
11 | and deliver a report to the Governor, the Secretary of the |
12 | Senate and the Chief Clerk of the House of Representatives |
13 | detailing the expenditure of funds. The Department of |
14 | Community and Economic Development shall have the authority |
15 | to audit a county's use of such funds and each county |
16 | receiving funds shall make their financial records and other |
17 | documents relating to its use of funds available to the |
18 | department. |
19 | (e) Distributions to municipalities.-- |
20 | (1) Commencing in 2012, before February 1, each |
21 | municipality receiving distributions under subsection (c)(2) |
22 | or (4) shall prepare and deliver a report to the Governor, |
23 | the Secretary of the Senate and the Chief Clerk of the House |
24 | of Representatives detailing the expenditure of funds. |
25 | (2) The Department of Community and Economic Development |
26 | shall have the authority to audit a municipality's use of the |
27 | funds. Each municipality receiving funds shall make financial |
28 | records and other documents relating to its use of the funds |
29 | available to to the Department of Community and Economic |
30 | Development. |
|
1 | (f) Administration.--The department shall make the |
2 | calculations required for the transfers and distributions under |
3 | this section and shall submit the calculations to the State |
4 | Treasurer in sufficient time for the State Treasurer to make the |
5 | transfers and distributions as required by this section. |
6 | § 1529. Appropriation. |
7 | The amount of the proceeds from the tax imposed by this |
8 | chapter as shall be necessary for the payment of refunds, |
9 | enforcement or administration under this chapter is hereby |
10 | appropriated to the department for those purposes. |
11 | CHAPTER 17 |
12 | MARCELLUS SHALE JOB CREATION TAX CREDIT |
13 | Sec. |
14 | 1701. Definitions. |
15 | 1702. Eligibility. |
16 | 1703. Application process. |
17 | 1704. Tax credits. |
18 | 1705. Prohibitions. |
19 | 1706. Penalties. |
20 | 1707. Annual reports. |
21 | 1708. Notice of availability of tax credits. |
22 | § 1701. Definitions. |
23 | The following words and phrases when used in this chapter |
24 | shall have the meanings given to them in this section unless the |
25 | context clearly indicates otherwise: |
26 | "Base period." As follows: |
27 | (1) Except as set forth in paragraph (2), the three |
28 | years immediately preceding the date on which a company may |
29 | begin creating new jobs which may be eligible for job |
30 | creation tax credits. |
|
1 | (2) If a company has been in business in this |
2 | Commonwealth for less than three years, the period which it |
3 | has been in business in this Commonwealth. |
4 | "Department." The Department of Community and Economic |
5 | Development of the Commonwealth. |
6 | "Job creation tax credits." Tax credits for job creation for |
7 | which the department has issued a certificate under this |
8 | chapter. |
9 | "New job." A full-time job, the average hourly rate, |
10 | excluding benefits, for which must be at least 350% of the |
11 | Federal minimum wage, created within a municipality located in |
12 | this Commonwealth by a company within three years from the start |
13 | date. The term includes a job which was previously held by a |
14 | nonresident and is filled by a resident. The term does not |
15 | include a temporary or seasonal job. |
16 | "Nonresident." An individual who does not reside in this |
17 | Commonwealth. |
18 | "Qualified apprenticeship training program." A program |
19 | registered with the Apprenticeship and Training Council within |
20 | the Department of Labor and Industry that is in compliance with |
21 | applicable Federal and State laws and regulations and which |
22 | requires at least 2,000 but not more than 10,000 hours of on- |
23 | the-job apprenticeship training. |
24 | "Resident." Any natural person who is considered a resident |
25 | of this Commonwealth under the act of March 4, 1971 (P.L.6, |
26 | No.2), known as the Tax Reform Code of 1971. |
27 | "Start date." The date on which a company may begin creating |
28 | new jobs which may be eligible for job creation tax credits. |
29 | "Year one." A one-year period immediately following the |
30 | start date. |
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1 | "Year three." A one-year period immediately following the |
2 | end of year two. |
3 | "Year two." A one-year period immediately following the end |
4 | of year one. |
5 | § 1702. Eligibility. |
6 | In order to be eligible to receive job creation tax credits |
7 | under this chapter, a company must demonstrate to the department |
8 | the following: |
9 | (1) The company's financial stability and the project's |
10 | financial viability. |
11 | (2) The company's express intent to maintain operations |
12 | in this Commonwealth for a period of five years from the date |
13 | the company submits its tax credit certificate to the |
14 | Department of Revenue. |
15 | (3) The company is in conformity with industry laws and |
16 | regulations overseen and enforced by the Department of |
17 | Environmental Protection. |
18 | § 1703. Application process. |
19 | (a) Application.--A company must complete and submit to the |
20 | department a job creation tax credit application along with a |
21 | copy of the permit issued by the Department of Environmental |
22 | Protection providing that the company has obtained the necessary |
23 | permit allowing the company to drill in this Commonwealth or a |
24 | statement from the Department of Environmental Protection |
25 | stating the same. The Department of Environmental Protection |
26 | shall notify the Department of Labor and Industry, the |
27 | Department of Revenue and the department upon suspension or |
28 | revocation of drilling permits or other changes that affect the |
29 | company's ability to continuously drill in this Commonwealth. |
30 | (b) Applicant priority.--The department shall give priority |
|
1 | to eligible applicants that will place the following workers in |
2 | new jobs: |
3 | (1) Workers who have completed a qualified |
4 | apprenticeship training program or a job training program |
5 | approved by the Department of Labor and Industry. |
6 | (2) Dislocated workers under the act of December 18, |
7 | 2001 (P.L.949, No.114), known as the Workforce Development |
8 | Act, who meet any one of the following conditions: |
9 | (i) Have been terminated or laid off or have |
10 | received notice of termination or layoff, and are |
11 | eligible for or have exhausted unemployment compensation |
12 | benefits. |
13 | (ii) Are unlikely to return to the industry or |
14 | occupation in which the individuals were employed. |
15 | (iii) Have been terminated or received notice of |
16 | termination as a result of the permanent closure or |
17 | relocation of a plant, facility or plant operation in |
18 | which the individuals were employed. |
19 | (iv) Are chronically unemployed. |
20 | (v) Have limited opportunities of employment in the |
21 | geographic area in which the individuals reside. |
22 | (vi) Are individuals who may face substantial |
23 | barriers to employment because of age or disability. |
24 | (3) Workers who have been unemployed for at least six |
25 | months. |
26 | (4) Underemployed workers who require skill training to |
27 | meet industry demands or increase employment opportunities. |
28 | (c) Approval.--If the department approves the company's |
29 | application, the department and the company shall execute a |
30 | commitment letter containing the following: |
|
1 | (1) A description of the project. |
2 | (2) The number of new jobs to be created. |
3 | (3) The amount of private capital investment in the |
4 | project. |
5 | (4) The maximum job creation tax credit amount the |
6 | company may claim. |
7 | (5) A signed statement that the company intends to |
8 | maintain its operation in this Commonwealth for five years |
9 | from the start date. |
10 | (6) A signed statement from the company that the company |
11 | will provide to the department a list of workers which |
12 | satisfies the requirements of subsection (b) for which the |
13 | company will claim tax credit, including documentation of |
14 | each worker's status as a resident of this Commonwealth. |
15 | (7) Other information as the department deems |
16 | appropriate. |
17 | (d) Commitment letter.--After a commitment letter has been |
18 | signed by both the Commonwealth and the company, the company |
19 | shall receive a job creation tax credit certificate and filing |
20 | information. |
21 | § 1704. Tax credits. |
22 | (a) Maximum amount.--A company may claim a tax credit of |
23 | $1,000 per new job created and up to the maximum job creation |
24 | tax credit amount specified in the commitment letter. |
25 | (b) Determination of new jobs created.-- |
26 | (1) New jobs shall be deemed created in year one to the |
27 | extent that the company's average employment by quarter |
28 | during year one exceeds the company's average employment |
29 | level during the company's base period, as adjusted for any |
30 | job held by a nonresident during the period which is no |
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1 | longer held by a nonresident. |
2 | (2) New jobs shall be deemed created in year two to the |
3 | extent that the company's average employment by quarter |
4 | during year two exceeds the company's average employment by |
5 | quarter during year one. |
6 | (3) New jobs shall be deemed created in year three to |
7 | the extent that the company's average employment by quarter |
8 | during year three exceeds the company's average employment by |
9 | quarter during year two. |
10 | (c) Applicable taxes.--A company may apply the tax credit to |
11 | 100% of the company's corporate net income tax, capital stock |
12 | and franchise tax or the capital stock and franchise tax of a |
13 | shareholder of the company if the company is a Pennsylvania S |
14 | corporation, personal income tax or the personal income tax of |
15 | shareholders of a Pennsylvania S corporation or any combination |
16 | thereof. |
17 | (d) Tax credit term.--A company may claim the job creation |
18 | tax credit for each new job created, as approved by the |
19 | department, for a period determined by the department but not to |
20 | exceed five years from the date the company first submits a job |
21 | creation tax credit certificate. |
22 | (e) Availability of tax credits.--Each fiscal year, |
23 | $10,000,000 in tax credits shall be made available to the |
24 | department and may be awarded by the department in accordance |
25 | with this chapter. |
26 | § 1705. Prohibitions. |
27 | The following actions with regard to job creation tax credits |
28 | are prohibited: |
29 | (1) Approval of jobs that have been created prior to the |
30 | start date, unless the job was held by a nonresident who has |
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1 | been replaced by a resident. |
2 | (2) The assignment, transfer or use of credits by any |
3 | other company, provided, however, that tax credits may be |
4 | assigned in whole or in part to an affiliated entity. As used |
5 | in this paragraph, the term "affiliated entity" means an |
6 | entity which is part of the same "affiliated group," as |
7 | defined by section 1504(a)(1) of the Internal Revenue Code of |
8 | 1986 (Public Law 99-514, 26 U.S.C. § 1504(a)(1)), as the |
9 | company awarded the credit. |
10 | § 1706. Penalties. |
11 | (a) Failure to create jobs.--A company which receives job |
12 | creation tax credits and fails to create the approved number of |
13 | new jobs within three years of the start date will be required |
14 | to refund to the Commonwealth the total amount of credit or |
15 | credits granted. |
16 | (b) Waiver.--The department may waive the penalties outlined |
17 | in subsection (a) if it is determined that a company's |
18 | operations were not maintained or the new jobs were not created |
19 | because of circumstances beyond the company's control. |
20 | Circumstances include natural disasters or unforeseen industry |
21 | trends. |
22 | § 1707. Annual reports. |
23 | (a) Contents.--The department shall provide an annual report |
24 | on job creation tax credits which at a minimum shall include: |
25 | (1) A list of all job creation tax credit certificates |
26 | provided during the previous fiscal year. |
27 | (2) The name and location of each company receiving job |
28 | creation tax credit certificates. |
29 | (3) An analysis of the job creation tax credits' ability |
30 | to create jobs in this Commonwealth. |
|
1 | (4) Any other information that may be deemed relevant by |
2 | the department. |
3 | (b) Submission.--The annual report shall be submitted to the |
4 | Governor, the Majority Leader of the Senate, the Minority Leader |
5 | of the Senate, the Majority Leader of the House of |
6 | Representatives and the Minority Leader of the House of |
7 | Representatives by March 1 of the first full year following the |
8 | effective date of this section and March 1 of each year |
9 | thereafter. |
10 | § 1708. Notice of availability of tax credits. |
11 | The department shall publish notice of the availability of |
12 | the job creation tax credit on its publicly accessible Internet |
13 | website and make information available annually to the |
14 | Department of Labor and Industry Workforce Investment Board for |
15 | distribution to local boards. |
16 | Section 2. Repeals are as follows: |
17 | (1) The General Assembly declares that the repeals under |
18 | paragraph (2) are necessary to effectuate the amendment or |
19 | addition of 16 Pa.C.S. Ch. 11 Subch. B. |
20 | (2) The following acts and parts of acts are repealed: |
21 | (i) Sections 420, 421, 422, 423, 424, 425, 426, 427, |
22 | 428, 429, 430, 431, 432, 433, 434, 435, 436, 437, 802, |
23 | 803, 804 of the act of August 9, 1955 (P.L.323, No.130), |
24 | known as The County Code. |
25 | (ii) Sections 420, 421, 422, 423, 424, 425, 426, |
26 | 427, 428, 429, 430, 431, 802, 803, 804, 1261 and 1262 of |
27 | the act of July 28, 1953 (P.L.723, No.230), known as the |
28 | Second Class County Code. |
29 | (iii) As much of section 3103 of the Second Class |
30 | County Code, as reads as follows: "The bond of the fire |
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1 | marshal shall be in the sum of ten thousand dollars |
2 | ($10,000) and the bonds of the deputy fire marshals shall |
3 | be in the sum of five thousand dollars ($5000)." |
4 | (3) All acts and parts of acts are repealed insofar as |
5 | they are inconsistent with this act. |
6 | Section 3. A county may, at any time after the effective |
7 | date of this section, obtain required security in accordance |
8 | with 16 Pa.C.S. Ch.11 Subch. B. A county shall have in place |
9 | required security in accordance with 16 Pa.C.S. Ch.11 Subch. B |
10 | prior to the time that any elected county official takes office |
11 | after the municipal election next following the effective date |
12 | of this section. Bonds and insurance, which, on the effective |
13 | date of this section, cover county officers and employees, shall |
14 | remain in force and effect until required security is purchased. |
15 | Section 4. This act shall take effect immediately. |
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