PA Senate Floor Journal — 2026-06-25

The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Madam President, I request temporary Capitol leaves for Senator Muth, Senator Saval, and Senator Hughes, and legislative leaves for Senator Cappelletti, Senator Haywood, and Senator Kearney.

The Journal of the Session of May 6, 2026, is now in print. The Clerk proceeded to read the Journal of the Session of May 6, 2026. Senator PITTMAN. Madam President, I move that further reading of the Journal be dispensed with and that the Journal be approved. Will the Senate agree to the motion? (The Pledge of Allegiance was recited by those assembled.) The yeas and nays were required by Senator PITTMAN and were as follows, viz: YEA-50 The Clerk of the House of Representatives presented to the Senate the following bill for concurrence, which was referred to the committee indicated: June 24, 2026 HB 2264 -- Committee on Consumer Protection and Professional Licensure.

The Journal is approved. JUNE 25,

The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Madam President, I request a recess of the Senate for the purpose of a Senate Republican caucus, which will be held in the Rules room immediately.

For purposes of a Republican and Democratic caucus to be held in their respective caucus rooms, without objection, the Senate stands in recess.

Senator Coleman, Senator Saval, and Senator Mastriano have returned, and their temporary Capitol leaves are cancelled.

For the purpose of a meeting of the Committee on Appropriations, to be held off the floor in the Rules room immediately, without objection, the Senate stands in recess.

Senator Muth has returned, and her temporary Capitol leave is cancelled. SB 49 -- Without objection, the bill was passed over in its order at the request of Senator LANGERHOLC. HB 96 and SB 127 -- Without objection, the bills were passed over in their order at the request of Senator LANGERHOLC. SB 535 (Pr. No. 527) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of October 5, 1978 (P.L.1109, No.261), known as the Osteopathic Medical Practice Act, further providing for definitions and for genetic counselor. Upon motion of Senator LANGERHOLC, and agreed to by voice vote, the bill was laid on the table. SB 535 TAKEN FROM THE TABLE Senator LANGERHOLC. Madam President, I move that Senate Bill No. 535, Printer's No. 527, be taken from the table and placed on the Calendar. The motion was agreed to by voice vote.

The bill will be placed on the Calendar. SB 743, HB 852, HB 853, SB 923, SB 1133 and SB 1182 -Without objection, the bills were passed over in their order at the request of Senator LANGERHOLC. SB 1212 -- Without objection, the bill was passed over in its order temporarily at the request of Senator LANGERHOLC. SB 1262, HB 1286, SB 1334, SB 1368 and SB 1372 -- Without objection, the bills were passed over in their order at the request of Senator LANGERHOLC. SB 1400 (Pr. No. 1836) -- The Senate proceeded to consideration of the bill, entitled: An Act amending Titles 18 (Crimes and Offenses), 42 (Judiciary and Judicial Procedure) and 61 (Prisons and Parole) of the Pennsylvania Consolidated Statutes, in authorized disposition of offenders, further providing for sentence for murder, murder of unborn child and murder of law enforcement officer and providing for sentence for murder of the second degree; in sentencing, further providing for sentences for second and subsequent offenses and for life imprisonment for homicide; and, in motivational boot camp, further providing for definitions; in Pennsylvania Board of Probation and Parole, providing for parole eligibility for offenders sentenced to life for murder of the second degree and further providing for parole procedure and for victim statements, testimony and participation in hearing. Will the Senate agree to the bill on third consideration? STREET AMENDMENT A3900 OFFERED Senator STREET offered the following amendment No. A3900: lines and inserting: Amending Titles 18 (Crimes and Offenses) and 61 (Prisons and Parole) of the Pennsylvania Consolidated Statutes, in authorized disposition of offenders, further providing for sentence for murder, murder of unborn child and murder of law enforcement officer and for sentence of persons under the age of 18 for murder, murder of an unborn child and murder of a law enforcement officer; and, in Pennsylvania Board of Probation and Parole, further providing for parole power. 1 through 30; page 12, lines 1 through 23; by striking out all of said lines on said pages and inserting: Section 1. Sections 1102(b) and 1102.1(c) of Title 18 of the Pennsylvania Consolidated Statutes are amended to read: § 1102. Sentence for murder, murder of unborn child and murder of law enforcement officer. (b) Second degree.--Except as provided under section 1102.1, a person who has been convicted of murder of the second degree, of second degree murder of an unborn child or of second degree murder of a law enforcement officer shall be sentenced to a term of [life] imprisonment, the minimum of which shall be at least 25 years. § 1102.1. Sentence of persons under the age of 18 for murder, murder of an unborn child and murder of a law enforcement officer. (c) Second degree murder.--A person who has been convicted after June 24, 2012, of a murder of the second degree, second degree murder of an unborn child or murder of a law enforcement officer of the second degree and who was under the age of 18 at the time of the commission of the offense shall be sentenced as follows: (1) A person who at the time of the commission of the offense was 15 years of age or older shall be sentenced to a term of imprisonment the minimum of which shall be at least [30 years to life] 20 years. (2) A person who at the time of the commission of the offense was under 15 years of age shall be sentenced to a term of imprisonment the minimum of which shall be at least [20 years to life] 15 years. Section 2. Section 6137(a)(1) and (3) of Title 61 are amended to read: § 6137. Parole power. (a) General criteria for parole.-(1) The board may parole subject to consideration of guidelines established under 42 Pa.C.S. § 2154.5 (relating to adoption of guidelines for parole) or subject to section 6137.1 (relating to short sentence parole) and such information developed by or furnished to the board under section 6174 (relating to right of access to offenders), or both, and may release on parole any offender to whom the power to parole is granted to the board by this chapter, except an offender condemned to death or serving life imprisonment for first degree murder, whenever in its opinion: (i) The best interests of the offender justify or require that the offender be paroled. (ii) It does not appear that the interests of the Commonwealth will be injured by the offender's parole. (3) The power to parole granted under this section to the board may not be exercised in the board's discretion at any time before, but only after, the expiration of the minimum term of imprisonment fixed by the court in its sentence or by the Board of Pardons in a sentence which has been reduced by commutation[.], subject to the following: (i) Notwithstanding 42 Pa.C.S. § 9757 (relating to consecutive sentences of total confinement for multiple offenses) and except for an incarcerated person sentenced to life imprisonment under 42 Pa.C.S. § 9711 (relating to sentencing procedure for murder of the first degree), in the case of an incarcerated person sentenced to life imprisonment, the board may grant parole only after a period of at least 25 years has elapsed since the beginning date of the incarceration of the incarcerated person. (ii) Notwithstanding 42 Pa.C.S. § 9757, in the case of an incarcerated person sentenced under 18 Pa.C.S. § 1102.1(c)(1) (relating to sentence of persons under the age of 18 for murder, murder of an unborn child and murder of a law enforcement officer), the board may grant parole only after a period of at least 20 years has elapsed since the beginning date of the incarceration of the incarcerated person. (iii) Notwithstanding 42 Pa.C.S. § 9757, in the case of an incarcerated person sentenced under 18 Pa.C.S. § 1102.1(c)(2), the board may grant parole only after a period of at least 15 years has elapsed since the beginning date of the incarceration of the incarcerated person. (iv) Before parole may be granted under subparagraph (i), (ii) or (iii), the board must give primary consideration to the protection of the public and to victim safety. (v) In addition to the considerations required under 42 Pa.C.S. § 2154.5, when determining whether to grant parole under subparagraph (i), (ii) or (iii), the board shall consider the level of culpability of the person in the underlying murder, including whether the person directly caused or intended to cause a death. Section 3. This act shall take effect in 60 days. Will the Senate agree to the amendment?

The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Madam President, I request a legislative leave for Senator Yaw. JUNE 25,

Senator Pittman requests a legislative leave for Senator Yaw. Senator Costa requests a temporary Capitol leave for Senator Pisciottano. Without objection, the leaves will be granted. And the question recurring, Will the Senate agree to the amendment? STREET AMENDMENT A3900 TABLED

Senator Pittman moves that the amendment be laid upon the table. That motion is not debatable. Will the Senate agree to the motion?

Amendment A3900 will be laid upon the table. And the question recurring, Will the Senate agree to the bill on third consideration? It was agreed to. And the amendments made thereto having been printed as required by the Constitution,

The Chair recognizes the gentlewoman from Montgomery, Senator Collett. Senator COLLETT. Madam President, I want to start by saying something I think every Member of this Chamber agrees with and that I think every stakeholder in this conversation agrees with, too: someone convicted of a serious offense should face a sentence that reflects the gravity of their crime. That is not a point of disagreement. It has never been a point of disagreement. Prosecutors agree, reform advocates agree, we agree. The question Lee puts to us here in the legislature is a different one. The court did not say sentences cannot be serious. It said they have to be individual, that under Article I, Section 13, of our own Pennsylvania Constitution, a mandatory life without parole sentence for all felony murder convictions applied without any individualized assessment of culpability is cruel punishment. That holding is grounded in Pennsylvania's own Constitution, independent of Federal precedent. The court pointed toward a remedy as well, a parole-based framework that allows individualized review. Senate Bill No. 1400 falls far short of that. The bill leaves mandatory life without parole intact for certain aggravating factors and creates the illusion of a lower option--10 to 40 years--available only if a six-part test is met in full, with the burden of proof shifted onto the defendant rather than the prosecution. And one part of that test cannot be satisfied by the very nature of the conduct that results in a second-degree conviction. So, in practice, the bill still defaults to 35 to life in nearly every case. The lower sentence exists in the text; it does not exist in the application. On the Parole Board review of individuals already serving their sentence, the bill says the board need not rehear a request from someone eligible under Lee if it ruled on a prior parole request within the last 5 years. And while the board may decide to override that in practice, the default tells you what the policy assumes. It does not begin with the presumption that these individuals are entitled to the individualized review our Constitution requires and the court has made clear they deserve. I also want to say something about how this bill came to be, because I think it matters. Yesterday, in the Committee on Institutional Sustainability and Innovation, there was extended discussion about what good policy process looks like. The consistent principle, one the committee's chairman himself articulated, is that the best legislation reflects the input of all the stakeholders-POINT OF ORDER Senator PITTMAN. Madam President, point of order. I believe we may be getting a bit far afield on the piece of legislation in front of us. Senator COLLETT. Madam President, I would reply that I am absolutely talking about how this legislation was created, which impacts how the legislation will be enacted.

The Chair recognizes the gentleman from Bucks, Senator Santarsiero. Senator SANTARSIERO. Madam President, I, too, rise in opposition to Senate Bill No. 1400. I certainly appreciate, and I think there is broad recognition on both sides of the aisle, the need to act in light of the Supreme Court's decision in the Lee case. As my colleague from Montgomery County just said eloquently, that process should be a collaborative one, and I think if it were, we would ultimately come up with a piece of legislation that would enjoy broad bipartisan support and ultimately win the Governor's approval as well. That is not where we are at this moment. That does not mean we cannot get there yet, and I still hold out optimism that, ultimately, we will, despite the vote on this bill today. I think it is important, Madam President, to start with an understanding of what the Lee case stands for. In that case, the Supreme Court did not find that the crime of second-degree murder is unconstitutional, but, rather, that the mandatory sentencing that was or is associated with that crime was unconstitutional, an unconstitutional violation of the prohibition against cruel punishment. And, as a consequence, the court said because that is unconstitutional, we are going to give the legislature 120 days to come up with a new approach so that we can have these convictions and, ultimately, sentences in these cases that pass constitutional muster. Now, no one in this Chamber, I believe, would argue that there are some actors who commit heinous crimes, some who are charged with second-degree murder, who commit heinous acts, and, ultimately, deserve severe punishment. Indeed, the appellant in the Lee case was not blameless. The appellant in the Lee case undertook acts which I think most of us would find heinous. But what the court was saying was that a mandatory life imprisonment without the possibility of parole was cruel punishment under our State Constitution, and, therefore, violates that right that we all enjoy. So, what we need to do here is to find the right balance, and that is ultimately what this issue is about. It is about giving judges adequate discretion to be able to handle these cases that come in front of them that they try, that they hear the facts about, to make the correct determination as to what the sentencing ought to be. And what the legislature needs to do in light of the Lee case is to provide new guide rails for judges to assess those cases and ultimately determine what the appropriate sentence ought to be. Those guide rails need to be flexible enough so that when there is someone who is not as culpable--the proverbial getaway driver--that the law is not as draconian in those cases because there is an understanding that the punishment needs to fit the crime. At the same time, on the other end of the spectrum, judges need to have the ability to mete out the appropriate sentence for someone who is quite culpable, who has done something heinous, and who deserves a harsher penalty. No one is arguing to the contrary. The issue in front of us is how we strike that balance and exactly what those guardrails ought to be to assist judges when these cases come before them. Regrettably, this bill does not find that balance for the reasons that my colleague from Montgomery County articulated a few moments ago and, therefore, should be rejected, but that cannot be the end of the story. We do need to pass legislation on this issue, and I think legislation along the lines that my colleague from Philadelphia had proposed and attempted to amend into this bill earlier this morning would be the right direction in which to go. And that was truly a bipartisan effort, as he explained. We need to get this right, and we need to do it in about a month under the deadline that the court has set. So, I urge my colleagues to vote "no" on this measure today, and I stand willing and able to work with my colleagues on the other side of the aisle to make sure that we get this right and we do it in a timely way. Thank you, Madam President.

The Chair recognizes the gentleman from Jefferson, Senator Dush. Senator DUSH. Madam President, I rise in support of Senate Bill No. 1400. I have worked in the Department of Corrections for 16 years, 8 of which was actually dealing with inmate sentencing, Megan's Law, those sorts of things. I was there during the changes there, and I also worked for 8 years with the inmates as well. One of the things that we are faced here with this Lee case is the tremendous burden that is going to be put on the courts. We had a similar situation with the juveniles convicted as adults, and both the Department of Corrections and the courts around the Commonwealth had a tremendous impact imposed on them. What I like about this bill, one of the things that I do like about it, is that this is well thought out in a way that it prevents an undue burden on the courts. There are significantly more people incarcerated who would be impacted by this decision than that with the juveniles convicted as adults. But we are also dealing with the fact that each of these individuals has been convicted; they have been convicted of the crime. There are pre-sentence investigation reports, things that are also labeled as facts of crime, affidavits of probable cause, that are available to the probation and the parole office and the Department of Corrections. Every one of those inmates is going to be able to get the opportunity to make their case about the mitigating factors regarding their case, a case where they have already been convicted of participating in a particularly heinous act. Again, they have been convicted. The opportunity to present a defense, or mitigating factors is there for every inmate who has a minimum and maximum sentence. They get that opportunity already provided to them. What this does in relation to the Lee case is that opportunity had been denied to those convicted persons simply because it was a mandatory life sentence. They now have that opportunity. In going over this bill, I have not seen anything that is actually unconstitutional. The individuals were convicted--and that is the important point in this case--they have been convicted. What the court did was deal with the sentencing and the restructuring of the sentencing. Now these inmates have the opportunity to go before the Parole Board and present their mitigating factors. The board has been responsible in that they have actually taken those things into consideration in the past, and some inmates get surprised that they are getting let out. Some inmates I have known have gotten surprised because they have been kept, but that has to do with the facts of crime and the elements that the Parole Board takes into consideration regarding the inmate's incarceration. That opportunity is something that those inmates who were convicted for a life sentence never had the opportunity for. This gives them that opportunity while also prescribing a way that they get such an opportunity, again, that they did not have after they have been convicted of the facts of the crime. Thank you, Madam President.

The Chair recognizes the gentleman from Philadelphia, Senator Street, for a second time. Senator STREET. Madam President, on many of the points and the legal explanations that were offered by the gentleman from Cambria County, I agree, this legislation does address retroactivity, which is a positive. I moreover agree when he talks about the instructions given to a jury, but I want to illuminate for Members a little bit of what that would involve. A person must merely satisfy that they had the mens rea, or the mental requirement, to participate in a felony, not the knowledge that the felony is going to result in a murder or even have participated in the actual killing of someone. And that is a seminal issue in Lee, because there are many cases in which people did not realize, did not know that a person was going to die. They did not kill anyone. They participated in a felony, and for that they should be punished. But the severity of the punishment needs to match their mens rea and it needs to match the severity of their actions. And we are focusing on the lower end of the spectrum because that is where the injustice occurs. The person who has committed the most heinous crime is already serving life without parole, and they should not be released. But it is the person who is the getaway driver, who did not know, who was not present, it is that person that is the seminal issue at Lee and that person at their trial. The jury was given instructions only that that person need to have been found guilty of understanding that a felony was being convicted [committed] and then, circumstantially, that someone died as a result of that felony. That a murder occurred by somebody else, that satisfied the accomplice liability problem. And the issue with Senate Bill No. 1400 is for that person's justice, this bill does not go far enough in allowing that person to have justice, and we need to adopt legislation that addresses justice for each and every person. And, so, I certainly agree that those at the most serious end of the spectrum should remain in jail for life, and all versions of legislation offered by this Chamber do that. But we need to make sure that we also address that issue on the lower end of the spectrum for those who have been over-sentenced, who have already spent more years in jail than they should have, and this bill fails to go far enough. Moreover, we should work collaboratively in legislation that we can actually get to the Governor's desk. I just do not think this bill does it, and so I urge a "no" vote. Thank you, Madam President.

The Chair recognizes the gentleman from Cambria, Senator Langerholc. Senator LANGERHOLC. Madam President, I request a legislative leave for Senator Farry.

Senator Langerholc requests a legislative leave for Senator Farry. Senator Costa requests a temporary Capitol leave for Senator Hughes. Without objection, the leaves will be granted. And the question recurring, The yeas and nays were taken agreeably to the provisions of the Constitution and were as follows, viz: YEA-31 Argall Baker Bartolotta Boscola Brooks Brown Culver Dush Farry Flynn Gebhard Hutchinson Keefer Langerholc Laughlin Malone Martin Mastriano Miller Pennycuick Phillips-Hill Picozzi Pittman Robinson Rothman Stefano Vogel Ward, Judy Ward, Kim Williams, Anthony H. Yaw NAY-19 Cappelletti Coleman Collett Comitta Costa Fontana Haywood Hughes Kane Kearney Kim Muth Pisciottano Santarsiero Saval Schwank Street Tartaglione Williams, Lindsey A constitutional majority of all the Senators having voted "aye," the question was determined in the affirmative. Ordered, That the Secretary of the Senate present said bill to the House of Representatives for concurrence.

The Senate will be at ease. [The Senate was at ease.] The PRESIDING OFFICER (Senator Elder A. Vogel, Jr.) in the Chair. RECONSIDERATION OF SB 1400 SB 1400 (Pr. No. 1836) -- Senator COSTA. Mr. President, I move that the Senate do now reconsider the vote by which Senate Bill No. 1400, Printer's No. 1836, just passed finally. A voice vote having been taken, the question was determined in the affirmative. And the question recurring, The yeas and nays were taken agreeably to the provisions of the Constitution and were as follows, viz: YEA-30 Argall Baker Bartolotta Boscola Brooks Brown Culver Dush Farry Flynn Gebhard Hutchinson Keefer Langerholc Laughlin Malone Martin Mastriano Miller Pennycuick Phillips-Hill Picozzi Pittman Robinson Rothman Stefano Vogel Ward, Judy Ward, Kim Yaw NAY-20 Cappelletti Coleman Collett Comitta Costa Fontana Haywood Hughes Kane Kearney Kim Muth Pisciottano Santarsiero Saval Schwank Street Tartaglione Williams, Anthony H. Williams, Lindsey A constitutional majority of all the Senators having voted "aye," the question was determined in the affirmative. Ordered, That the Secretary of the Senate present said bill to the House of Representatives for concurrence. SB 1212 CALLED UP SB 1212 (Pr. No. 1499) -- Without objection, the bill, which previously went over in its order temporarily, was called up, from page 3 of the Third Consideration Calendar, by Senator PITTMAN. SB 1212 (Pr. No. 1499) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of November 29, 2006 (P.L.1471, No.165), known as the Sexual Assault Testing and Evidence Collection Act, further providing for definitions. Considered the third time and agreed to, JUNE 25, The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Montgomery, Senator Pennycuick. Senator PENNYCUICK. Mr. President, I rise today in support of Senate Bill No. 1212. When sexual assault evidence is collected, it should be handled consistently, promptly, and with the seriousness that survivors deserve. Pennsylvania has made meaningful progress in recent years. Through Act 122 of 2024, we created a statewide sexual assault evidence tracking system so survivors could have greater transparency and know where their kit is in the process. That was a really important step forward, but our work is not finished. The most recent report shows that at the end of 2024, there were still 233 backlogged sexual assault kits awaiting testing in Pennsylvania. These are not just numbers on a page. Each kit represents a survivor, an investigation, and the possibility of justice delayed. As we know, Pennsylvania has a large, decentralized law enforcement and healthcare landscape with different procedures that can lead to inconsistent handling of evidence, especially when the law itself leaves room for different interpretations. That is the problem that Senate Bill No. 1212 is designed to solve. Under current law, the definition of "awaiting testing" includes language allowing a local law enforcement agency to determine whether a kit should undergo DNA or other appropriate forensic analysis. PCCD specifically identified this discretionary language as a barrier to consistency across jurisdictions. Senate Bill No. 1212 removes that language and establishes a clearer statewide expectation that if a sexual assault evidence has been collected and has not yet received DNA or other appropriate forensic analysis, it should be treated consistently and expediently under the law. Just as importantly, this bill does not take away a survivor's right to decline testing. That protection will remain in place. This bill is about making sure that eligible evidence does not fall through the cracks because of inconsistent local practices or uncertainty in the statute. We owe survivors a system that is clear, accountable, and built around justice rather than delay. Senate Bill No. 1212 strengthens investigative integrity, supports victims' rights, and continues Pennsylvania's ongoing work to eliminate rape kit backlog. I want to thank my co-prime sponsors, Senator Brown and Senator Langerholc, for their partnership on this important legislation and their dedicated work in reducing the backlog. Thank you, Mr. President. I ask for an affirmative vote. And the question recurring, The yeas and nays were taken agreeably to the provisions of the Constitution and were as follows, viz: YEA-50 Argall Baker Bartolotta Boscola Brooks Brown Farry Flynn Fontana Gebhard Haywood Hughes Malone Martin Mastriano Miller Muth Pennycuick Santarsiero Saval Schwank Stefano Street Tartaglione Cappelletti Coleman Collett Comitta Costa Culver Dush Hutchinson Kane Kearney Keefer Kim Langerholc Laughlin Phillips-Hill Picozzi Pisciottano Pittman Robinson Rothman Vogel Ward, Judy Ward, Kim Williams, Anthony H. Williams, Lindsey Yaw NAY-0 A constitutional majority of all the Senators having voted "aye," the question was determined in the affirmative. Ordered, That the Secretary of the Senate present said bill to the House of Representatives for concurrence. The PRESIDING OFFICER. The Senate will be at ease. [The Senate was at ease.] HB 1442, HB 1646, HB 1830, HB 1860 and HB 2017 -Without objection, the bills were passed over in their order at the request of Senator PITTMAN. HB 69 (Pr. No. 3487) -- The Senate proceeded to consideration of the bill, entitled: SB 357 (Pr. No. 546) -- The Senate proceeded to consideration of the bill, entitled: An Act amending Titles 18 (Crimes and Offenses), 23 (Domestic Relations) and 34 (Game) of the Pennsylvania Consolidated Statutes, in inchoate crimes, further providing for the offense of possession of firearm or other dangerous weapon in court facility; in firearms and other dangerous articles, further providing for relinquishment of firearms and firearm licenses by convicted persons, repealing provisions relating to firearms not to be carried without a license and to carrying loaded weapons other than firearms, providing for license not required, further providing for prohibited conduct during emergency, repealing provisions relating to carrying firearms on public streets or public property in Philadelphia, providing for sportsman's firearm permit and further providing for licenses, for sale or transfer of firearms, for antique firearms and for proof of license and exception; in protection from abuse, further providing for relief; in hunting and furtaking, further providing for cooperation after lawfully killing big game; in protection of property and persons, further providing for loaded firearms in vehicles; and making editorial changes. Without objection, the bill was passed over in its order at the request of Senator PITTMAN. Pursuant to Senate Rule 9, the bill was laid on the table. SB 406, SB 599, SB 720, SB 746 and SB 857 -- Without objection, the bills were passed over in their order at the request of Senator PITTMAN. An Act amending the act of May 13, 2008 (P.L.139, No.14), known as the Cancer Drug Repository Program Act, further providing for title and short title of act, for definitions, for establishment, for restocking and dispensing of cancer drugs, for storage, distribution and fees and for immunity; providing for annual report, for list of approved participating pharmacies and for limitations; further providing for regulations; and imposing duties on the State Board of Pharmacy. SB 890 (Pr. No. 1837) -- The Senate proceeded to consideration of the bill, entitled: Considered the second time and agreed to, Ordered, To be printed on the Calendar for third consideration. Upon motion of Senator PITTMAN, and agreed to by voice vote, the bill just considered was rereferred to the Committee on Appropriations. Considered the second time and agreed to, Ordered, To be printed on the Calendar for third consideration. HB 78 (Pr. No. 3688) -- The Senate proceeded to consideration of the bill, entitled: An Act providing for consumer data privacy, for duties of controllers and for duties of processors; and imposing penalties. Considered the second time and agreed to, Ordered, To be printed on the Calendar for third consideration. SB 142 -- Without objection, the bill was passed over in its order at the request of Senator PITTMAN. An Act amending Title 20 (Decedents, Estates and Fiduciaries) of the Pennsylvania Consolidated Statutes, providing for uniform partition of heirs property and for uniform real property transfer on death. SB 907 (Pr. No. 1692) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of February 19, 1980 (P.L.15, No.9), entitled "An act establishing the State Real Estate Commission and providing for the licensing of real estate brokers and salesmen," in definitions, further providing for definitions and for State Real Estate Commission; in application of the act and penalties, further providing for unlawful to conduct business without license or registration certificate, for civil suits, for criminal penalties and for civil penalty; in powers and duties of the State Real Estate Commission - general, further providing for duty to issue licenses and registration certificates and for approval of schools, providing for continuing education for licensed home inspectors and further providing for administration and enforcement; in qualifications and applications for licenses and registration certificates, further providing for reputation and inactive licensee and revoked license and providing for home inspector license and home inspector-in-training registration; in duties of licensees, further providing for reciprocal licenses and for broker price opinion; making a repeal; and making an editorial change. Without objection, the bill was passed over in its order at the request of Senator PITTMAN. Pursuant to Senate Rule 9, the bill was laid on the table. SB 911 (Pr. No. 1841) -- The Senate proceeded to consideration of the bill, entitled: An Act amending Title 44 (Law and Justice) of the Pennsylvania Consolidated Statutes, providing for miscellaneous provisions and for violent incident clearance and technological investigative methods; establishing the Violent Incident Clearance and Technological Investigative Methods Program; and imposing duties on the Pennsylvania Commission on Crime and Delinquency. Considered the second time and agreed to, Ordered, To be printed on the Calendar for third consideration. HB 928 and HB 1102 -- Without objection, the bills were passed over in their order at the request of Senator PITTMAN. HB 1117 (Pr. No. 3692) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, in powers and duties of the Department of Drug and Alcohol Programs, further providing for powers and duties. Considered the second time and agreed to, Ordered, To be printed on the Calendar for third consideration. Upon motion of Senator PITTMAN, and agreed to by voice vote, the bill just considered was rereferred to the Committee on Appropriations. SB 1215 -- Without objection, the bill was passed over in its order at the request of Senator PITTMAN. SB 1321 (Pr. No. 1675) -- The Senate proceeded to consideration of the bill, entitled: JUNE 25, SB 1321 TAKEN FROM THE TABLE Senator PITTMAN. Mr. President, I move that Senate Bill No. 1321, Printer's No. 1675, be taken from the table and placed on the Calendar. The motion was agreed to by voice vote. The PRESIDING OFFICER. The bill will be placed on the Calendar. The PRESIDING OFFICER. Senator Hughes has returned, and his temporary Capitol leave is cancelled. SB 1324 (Pr. No. 1679) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of October 17, 2008 (P.L.1645, No.132), known as the Home Improvement Consumer Protection Act, further providing for definitions, for registration of contractors, for procedures for registration as a contractor, for application fees, for home improvement contracts and for home improvement fraud; and making a repeal. Without objection, the bill was passed over in its order at the request of Senator PITTMAN. Pursuant to Senate Rule 9, the bill was laid on the table. HB 1460, HB 1541 and HB 1600 -- Without objection, the bills were passed over in their order at the request of Senator PITTMAN. HB 1851 (Pr. No. 2716) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of June 29, 1953 (P.L.304, No.66), known as the Vital Statistics Law of 1953, in general provisions, further providing for definitions; and, in death and fetal death registration, further providing for information for certificates and for coroner referrals. An Act providing for eligibility for State funds; imposing duties on the Department of Human Services; providing for investigations by the Department of Human Services and the Office of Attorney General; and imposing penalties. Considered the second time and agreed to, Ordered, To be printed on the Calendar for third consideration. Upon motion of Senator PITTMAN, and agreed to by voice vote, the bill just considered was rereferred to the Committee on Appropriations. Upon motion of Senator PITTMAN, and agreed to by voice vote, the bill was laid on the table. HB 1972 (Pr. No. 3550) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of December 20, 1983 (P.L.260, No.72), referred to as the Public Adjuster Licensing Law, further providing for definitions, for license, for written disclosure of financial interest and for bond; providing for fees, for requirements and prohibitions and for separate pre-contract disclosure; and further providing for contract and for revocation, etc., of license. SUPPLEMENTAL CALENDAR No. 1 Considered the second time and agreed to, Ordered, To be printed on the Calendar for third consideration. Upon motion of Senator PITTMAN, and agreed to by voice vote, the bill just considered was rereferred to the Committee on Appropriations. MOTION NOTWITHSTANDING SENATE RULE 12 HB 2540 (Pr. No. 3513) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, in public assistance, providing for transition to chip-enabled access cards. Considered the second time and agreed to, Ordered, To be printed on the Calendar for third consideration. Upon motion of Senator PITTMAN, and agreed to by voice vote, the bill just considered was rereferred to the Committee on Appropriations. Senator PITTMAN. Mr. President, may we be at ease? The PRESIDING OFFICER. The Senate will be at ease. [The Senate was at ease.] The PRESIDING OFFICER. The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Mr. President, I request a recess of the Senate for a Republican caucus to be held immediately in the Rules room. The PRESIDING OFFICER. The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Mr. President, Senate Democrats will meet around the podium for a brief caucus as well. The PRESIDING OFFICER. For purposes of Republican and Democratic caucuses to be held in their respective caucus rooms, without objection, the Senate stands in recess. The PRESIDING OFFICER. The time of recess having expired, the Senate will come to order. Senator MARTIN, from the Committee on Appropriations, reported the following bill: HB 1667 (Pr. No. 3708) (Amended) (Rereported) An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax and for establishment of revenue-neutral reconciliation; in manufacturing and investment tax credit, further providing for business firms and for tax credit certificates; prohibiting the imposition of a tax on gross receipts received from the sale of electric energy; imposing a penalty; and making a repeal. The PRESIDING OFFICER. The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Mr. President, as a special order of business, I call up Senate Supplemental Calendar No. 1 and move that the Senate do proceed to consider House Bill No. 1667, notwithstanding the provisions of Senate Rule 12(m)(2). Will the Senate agree to the motion? The yeas and nays were required by Senator PITTMAN and were as follows, viz: YEA-46 Argall Baker Bartolotta Boscola Brooks Brown Cappelletti Coleman Collett Comitta Costa Culver Dush Farry Flynn Fontana Gebhard Haywood Hughes Kane Kearney Keefer Kim Langerholc Laughlin Malone Martin Mastriano Miller Pennycuick Phillips-Hill Picozzi Pisciottano Pittman Robinson Rothman Santarsiero Schwank Stefano Street Tartaglione Vogel Ward, Judy Ward, Kim Williams, Anthony H. Yaw NAY-4 Hutchinson Muth Saval Williams, Lindsey A constitutional majority of all the Senators having voted "aye," the question was determined in the affirmative. HB 1667 (Pr. No. 3708) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax and for establishment of revenue-neutral reconciliation; in manufacturing and investment tax credit, further providing for business firms and for tax credit certificates; prohibiting the imposition of a tax on gross receipts received from the sale of electric energy; imposing a penalty; and making a repeal. Will the Senate agree to the bill on third consideration? BOSCOLA AMENDMENT A3968 ADOPTED Senator BOSCOLA offered the following amendment No. A3968: in sales and use tax, further providing for exclusions from tax; lines and inserting: Section 1. Section 204(58) of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended and the section is amended by adding a clause to read: Section 204. Exclusions from Tax.--The tax imposed by section 202 shall not be imposed upon any of the following: (58) The sale at retail or use of a personal computer, a tablet, a personal digital assistant, a peripheral device or an Internet access device, or a service contract or single-user licensed software purchased in conjunction with a personal computer, tablet, personal digital assistant, peripheral device or Internet access device, with a sales price of not more than one thousand five hundred dollars ($1,500), during the exclusion period by an individual purchaser for nonbusiness use. The exclusion does not include a sale at retail or use of, leasing, rental or repair of a personal computer, tablet, personal digital assistant, peripheral device or Internet access device; mainframe computers; network servers; local area network hubs; routers and network cabling; network operating systems; multiple-user licensed software; minicomputers; [hand-held computers; personal digital assistants without Internet access;] hardware word processors; graphical calculators; video game consoles; telephones; digital cameras; pagers; compact discs encoded with music or movies; and digital versatile discs encoded with music or movies. For purposes of this clause, the phrase "exclusion period" means the period of time from [August 5, 2001, to and including August 12, 2001, and from February 17, 2002, to and including February 24, 2002.] the first Saturday in August to and including the third Saturday in August. For purposes of this clause, "purchaser" means an individual who places an order and pays the purchase price by cash or credit during the exclusion period even if delivery takes place after the exclusion period. (77) The sale at retail or use of school supplies during the exclusion period for nonbusiness purposes. For the purposes of this clause: (i) The following terms or phrases shall have the following meanings: "Art supplies" shall mean clay and glazes, paints, paintbrushes, sketch and drawing pads and watercolors. "Exclusion period" shall mean the first Saturday in August to and including the third Saturday in August. "Instructional materials" shall mean reference books, reference maps and globes, textbooks and workbooks. "School supplies" shall mean items such as book bags, pens, pencils, pencil sharpeners, markers, highlighters, erasers, crayons, blackboard chalk, notebooks, binders, folders, paper, index cards, glue, tape, rulers, scissors, staplers, staples, paper clips, printer ink, calculators, compasses, protractors, lunch boxes, school supply boxes, personal organizers, art supplies, clipboards, dry erase markers, sticky notes, bulletin board paper, educational posters and games and instructional materials with a sales price of fifty dollars ($50) or less per item. (ii) The department may promulgate regulations to include other similar items in the definitions of "art supplies," "instructional materials" and "school supplies" under this clause. Section 1.1. Section 1101(b) and (h) of the act are amended and the section is amended by adding a subsection to read: Will the Senate agree to the amendment? The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Northampton, Senator Boscola. Senator BOSCOLA. Mr. President, this amendment would add a limited back-to-school sales tax holiday for families across Pennsylvania. Inflation is really hitting families hard, and I do not need to tell anyone that prices are up--gas is, groceries, everything--but for families with kids, it is worse. Back-to-school shopping is another expense that, in a few months, families will not have the budget for this type of supplies. Prices on school supplies are not immune from the recent price increases. This tax JUNE 25, holiday is about giving families a break so they can afford to buy what they need for their kids' education without the extra hit of the sales tax. It is just that simple. The amendment establishes a two-week sales tax holiday across Pennsylvania that would take place from the first Saturday to the third Saturday in August. School supplies, art materials, and instructional items under $50 would be tax-free. Personal computers and tablets under [$]1,500 would also be exempt. So, we are thinking about school supplies and tax-free--that includes bags; pencils; crayons; markers; highlighters; glue; art materials: clay, glazes, paints, paint brushes and drawing pads and watercolors; instruction items, such as reference books, reference maps and globes, textbooks, and workbooks. These are the things that we can do here in Pennsylvania to help working families at a time--and we need to get serious about doing it. The average elementary school student's back-toschool list in Pennsylvania contains 16 to 17 items. This tax holiday is not going to fix everything, Mr. President, but it will give families a little bit of breathing room at the exact time when they need it most: before school starts. At least 12 States have sales tax holidays on school supplies, including Florida, Virginia, and Tennessee. So, we are not really breaking any ground here. This amendment will have a limited impact on our State's budget, but it will be a big, big help to families and teachers across Pennsylvania. Thank you, Mr. President. And the question recurring, Will the Senate agree to the amendment? The yeas and nays were required by Senator BOSCOLA and were as follows, viz: YEA-50 Argall Baker Bartolotta Boscola Brooks Brown Cappelletti Coleman Collett Comitta Costa Culver Dush Farry Flynn Fontana Gebhard Haywood Hughes Hutchinson Kane Kearney Keefer Kim Langerholc Laughlin Malone Martin Mastriano Miller Muth Pennycuick Phillips-Hill Picozzi Pisciottano Pittman Robinson Rothman Santarsiero Saval Schwank Stefano Street Tartaglione Vogel Ward, Judy Ward, Kim Williams, Anthony H. Williams, Lindsey Yaw NAY-0 A majority of the Senators having voted "aye," the question was determined in the affirmative. The PRESIDING OFFICER. The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Mr. President, I request a legislative leave for Senator Fontana. The PRESIDING OFFICER. Senator Costa requests a legislative leave for Senator Fontana. Without objection, the leave will be granted. Will the Senate agree to the bill on third consideration, as amended? COSTA AMENDMENT A3969 ADOPTED Senator COSTA offered the following amendment No. A3969: repealing provisions relating to Computer Data Center Equipment Incentive Program; in general provisions, providing for data centers; Section 3.1. Article XXIX-D of the act is repealed: [ARTICLE XXIX-D Section 2901-D. Definitions. The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Blockchain." A distributed ledger technology in which the data is: (1) shared across a network that creates a digital ledger of verified transactions or information among network participants; and (2) typically linked using cryptography to maintain the integrity of the digital ledger and execute other functions, including the transfer of ownership or value. "Computer data center." All or part of a facility that may be composed of one or more businesses, owners or tenants, that is or will be predominantly used to house working servers or similar data storage systems and that may have uninterruptible energy supply or generator backup power, or both, cooling systems, towers and other temperature control infrastructure. "Computer data center equipment." Equipment that is used to outfit, operate or benefit a computer data center and component parts, installations, refreshments, replacements and upgrades to the equipment, whether any of the equipment is affixed to or incorporated into real property, including: (1) All equipment necessary for the transformation, generation, distribution or management of electricity that is required to operate computer servers or similar data storage equipment, including generators, uninterruptible energy supplies, conduit, gaseous fuel piping, cabling, duct banks, switches, switchboards, batteries and testing equipment. (2) All equipment necessary to cool and maintain a controlled environment for the operation of the computer servers or data storage systems and other components of the computer data center, including mechanical equipment, refrigerant piping, gaseous fuel piping, adiabatic and free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting and filters. (3) All water conservation systems, including facilities or mechanisms that are designed to collect, conserve and reuse water. (4) All software, including, but not limited to, enabling software and licensing agreements, computer servers or similar data storage equipment, chassis, networking equipment, switches, racks, cabling, trays and conduits. (5) All monitoring equipment and security systems. (6) Modular data centers and preassembled components of any item described in this definition, including components used in the manufacturing of modular data centers. (7) Other tangible personal property that is essential to the operations of a computer data center. "Department." The Department of Revenue of the Commonwealth. "Facility." One or more parcels of land in this Commonwealth and any structures and personal property contained on the land. "New investment." Construction, expansion or build out of data center space at either a new or an existing computer data center on or after January 1, 2014, and the purchase and installation of computer data center equipment, except for items described under paragraph (4) of the definition of "computer data center equipment." "Owner or operator." Includes a single entity, multiple entities or affiliated entities. "Proof of work crypto-asset mining." The process of performing computations to add a valid block of data to a blockchain, excluding computations required to validate individual transactions, typically in exchange for a reward or fee. "Qualification period." Except as provided under sections 2931D(d), 2935-D(b) and 2937-D(c), as follows: (1) With respect to the owner or operator of a computer data center certified under this article, a period of time beginning on the date of certification of the computer data center and expiring at the end of the fifteenth full calendar year following the calendar year in which the owner or operator filed an application for certification. (2) With respect to a qualified tenant of the owner or operator of a computer data center certified under this article, a period of time beginning on the date that the qualified tenant enters into an agreement concerning the use or occupancy of the computer data center and expiring at the earlier of the expiration of the term of the agreement or the end of the 10th full calendar year following the calendar year in which the qualified tenant enters into the agreement. "Qualified tenant." An entity that contracts with the owner or operator of a computer data center that is certified pursuant to this article to use or occupy part of the computer data center for at least 100 kilowatts per month for two or more years. "Tax exemption." The tax exemption provided under Subarticle C. "Tax refund." The tax refund provided for under Subarticle B. "Telecommunications provider." A provider of telecommunications services as defined in 61 Pa. Code § 60.20 (relating to telecommunications service). "Tenant." An entity that contracts with the owner or operator of a computer data center to use or occupy part of the computer data center. Section 2911-D. Sales and use tax refund. (a) Application.--Beginning July 1, 2017, an owner or operator or qualified tenant of a computer data center certified under this article may apply for a tax refund of taxes paid under Article II upon the sale at retail or use of computer data center equipment for installation in a computer data center, purchased by: (1) An owner or operator of a computer data center certified under this article. (2) A qualified tenant certified under this article. (b) Applicability.--Taxes paid under Article II during the qualification period shall be eligible for a refund under this article. (c) Exclusions.--The following do not qualify for a tax refund: (1) Computer data center equipment used by the computer data center to: (i) generate electricity for resale purposes to a power utility, except for sales incidental to the primary sale to computer data centers and which qualify under subparagraph (ii); or (ii) generate, provide or sell more than 5% of its electricity outside of the computer data center. (2) (Reserved). Section 2912-D. Application for certification. To be considered for a certification, an owner or operator of a computer data center shall submit to the department an application on a form prescribed by the department that includes the following: (1) The owner's or operator's name, address and telephone number. (2) The address of the site where the facility is or will be located, including, if applicable, information sufficient to identify the specific portion or portions of the facility comprising the computer data center. (3) If the computer data center is to qualify under section 2915D(1), the following information: (i) The anticipated investment associated with the computer data center for which the certification is being sought. (ii) An affirmation, signed by an authorized executive representing the owner or operator, that the computer data center is expected to satisfy the certification requirements prescribed in section 2915-D(1). (4) If the computer data center is to qualify under section 2915D(2), an affirmation, signed by an authorized executive representing the owner or operator, that the computer data center has satisfied, or will satisfy, the certification requirements prescribed in section 2915-D(2). (5) The department shall begin accepting applications no later than 90 days after the effective date of this section. Section 2913-D. Review of application. (a) General rule.--Within 60 days after receiving a complete and correct application, the department shall review the application and either issue a written certification that the computer data center qualifies for the certification or provide written reasons for its denial. (b) Deemed approval.--Failure of the department to approve or deny an application within 60 days after the date the owner or operator of a computer data center submits the application to the department constitutes certification of the computer data center, and the department shall issue written certification to the owner or operator within 14 days. The department may not certify any computer data center after December 31, 2021. Section 2914-D. Separation of facilities. (a) Separate certification.--An owner or operator of a computer data center may separate a facility into one or more computer data centers, which may each receive a separate certification, if each computer data center individually meets the requirements prescribed in section 2915-D. (b) Limitation.--A portion of a facility or an article of computer data equipment shall not be deemed to be a part of more than one computer data center. (c) Aggregation.--An owner or operator may aggregate one or more parcels, buildings or condominiums in a facility into a single computer data center if, in the aggregate, the parcels, buildings and condominiums meet the requirements of this article. Section 2915-D. Eligibility requirements. A computer data center must meet one of the following requirements, after taking into account the combined investments made and annual compensation paid by the owner or operator of the computer data center or the qualified tenant: (1) On or before the fourth anniversary of certification, the computer data center creates a minimum investment of: (i) At least $25,000,000 of new investment if the computer data center is located in a county with a population of 250,000 or fewer individuals; or (ii) At least $50,000,000 of new investment if the computer data center is located in a county with a population of more than 250,000 individuals. (2) One or more taxpayers operating or occupying a computer data center, in the aggregate, pay annual compensation of at least $1,000,000 to employees at the certified computer data center site for each year of the certification after the fourth anniversary of certification. Section 2916-D. Notification. (a) Requirements satisfied.--On or before the fourth anniversary of the certification of a computer data center, the owner or operator of a computer data center shall notify the department in writing whether the computer data center for which the certification is requested has satisfied the requirements prescribed in section 2915-D. (b) Records.--Until a computer data center satisfies the requirements prescribed in section 2915-D, the owner, operator and qualified tenants shall maintain detailed records of all investments created by the computer data center, including costs of buildings and computer data center equipment, and all tax refunds directly received by the owner, operator or qualified tenant. Section 2917-D. Revocation of certification. (a) Revocation.--If the department determines that the requirements of section 2915-D have not been satisfied, the department may revoke the certification of a computer data center. (b) Appeal.--The owner or operator of the computer data center may appeal the revocation. Appeals filed under this section shall be governed by Article II. (c) Recapture.--If certification is revoked pursuant to this section, the qualification period of any owner, operator or qualified tenant of the JUNE 25, computer data center expires, and the department may recapture from the owner, operator or qualified tenant all or part of the tax refund provided directly to the owner or operator or qualified tenant. The department may give special consideration or allow a temporary exemption from recapture of the tax refund if there is extraordinary hardship due to factors beyond the control of the owner or operator or qualified tenant. Section 2918-D. Guidelines. The department shall publish guidelines and prescribe forms and procedures as necessary for the purposes of this article. Section 2919-D. Confidential information. Proprietary business information contained in the application form described in section 2912-D and the written notice described in section 2916-D, as well as information concerning the identity of a qualified tenant, are confidential and may not be disclosed to the public. The department may disclose the name of a computer data center that has been certified under this article. Section 2920-D. List of tenants. An owner or operator of a computer data center shall provide, to the extent permissible under Federal law, the department with a list of qualified tenants, including the commencement and expiration dates of each qualified tenant's agreement to use or occupy part of the computer data center. The list shall be provided to the department annually, upon request by the department. Section 2921-D. Sale or transfer. Except as provided in section 2917-D, a computer data center retains its certification regardless of a transfer, sale or other disposition, directly or indirectly, of the computer data center. Section 2922-D. Application. (a) General rule.--An owner, operator or qualified tenant may apply for a tax refund under this article on or before July 30, 2017, and each July 30 thereafter. (b) Notification.--No later than September 30, 2017, and each September 30 thereafter, the department shall notify each applicant of the amount of tax refund approved by the department. Section 2923-D. Limitations. (a) Total.--The total amount of State tax refunds approved by the department under this article shall not exceed $7,000,000 in any fiscal year. (b) Allocation.--If the total amount of tax refunds approved for all applicants exceeds the limitation on the amount of tax refunds in subsection (a) in a fiscal year, the tax refund to be received by each applicant shall be determined as follows: (1) Divide: (i) the tax refund approved for the applicant; by (ii) the total of all tax refunds approved for all applicants. (2) Multiply: (i) the amount under subsection (a); by (ii) the quotient under paragraph (1). (3) The algebraic form of the calculation under this subsection is: Taxpayer's tax refund = amount allocated for those tax refunds X (tax refund approved for the applicant/total of all tax refunds approved for all applicants). Section 2924-D. Applicability. Notwithstanding any other provision of this article, the department may not issue a tax refund under this subarticle for the tax imposed upon the sale at retail or use of computer data center equipment purchased after December 31, 2021. Section 2931-D. Sales and use tax exemption. (a) Sales and use tax.--Beginning January 1, 2022, the tax imposed under Article II shall not be imposed upon the sale at retail or use of computer data center equipment purchased for installation in a certified computer data center, if purchased by any of the following: (1) An owner or operator of a computer data center certified under this subarticle. (2) A qualified tenant of a computer data center certified under this subarticle. (b) Applicability.--A tax exemption approved under this subarticle shall apply during the qualification period as provided under section 2942-D. tion: (c) Exclusions.--The following shall not qualify for a tax exemp- (1) A telecommunications provider's computer data center that does not have retail or wholesale customers being billed or paying for services and does provide a majority of services for internal use or use by the telecommunications provider's subsidiaries. (2) Computer data center equipment used by the certified computer data center for any of the following purposes: (i) Generating electricity for resale purposes to a power utility. (ii) Generating, providing or selling more than 5% of its electricity outside of the certified computer data center. (iii) Proof of work crypto-asset mining. (3) Laptop computers, handheld devices and motor vehicles for use both inside and outside the computer data center. (d) Definition.--As used in this section, the term "qualification period" shall mean the following: (1) With respect to the owner or operator of a computer data center certified under this article, a period of time beginning on the date of certification of the computer data center and expiring at the end of the 25th full calendar year following the calendar year in which the owner or operator filed an application for certification. (2) With respect to a qualified tenant of the owner or operator of a computer data center certified under this article, a period of time beginning on the date that the qualified tenant enters into an agreement concerning the use or occupancy of the computer data center and expiring at the earlier of the expiration of the term of the agreement or the end of the 10th full calendar year following the calendar year in which the qualified tenant enters into the agreement. Section 2932-D. Application for certification. (a) Application.--To be considered for a certification, an owner or operator of a computer data center shall submit to the department an application on a form prescribed by the department that includes all of the following: (1) The owner's or operator's name, address and telephone number. (2) The address of the site where the computer data center is or will be located, including, if applicable, information sufficient to identify the specific portion of a facility comprising the computer data center. (3) An affirmation, signed by an authorized executive representing the owner or operator, that the computer data center is expected to satisfy the certification requirements prescribed under section 2935-D. (b) Acceptance.--The department shall begin accepting applications no later than 60 days after the effective date of this section. (c) Compliance in reporting.--An owner or operator or qualified tenant eligible for a certification shall comply with all reporting, filing and compliance requirements under this act. (d) Compliance in tax laws.--No owner or operator or qualified tenant may receive a certification under this subarticle unless that owner or operator or qualified tenant is in full compliance with all State tax laws. Section 2933-D. Review of application. (a) General rule.--Within 60 days after receiving a complete and correct application, the department shall review the application and either issue a written certification that the computer data center qualifies for the certification or provide written reasons for its denial. (b) Deemed approval.--Failure of the department to approve or deny an application that has been acknowledged as received by the department within 60 days after the date the owner or operator of a computer data center submits the application to the department shall constitute certification of the computer data center, and the department shall issue written certification to the owner or operator within 14 days. Section 2934-D. Separation of facilities. (a) Separate certification.--An owner or operator of a computer data center may separate a facility into one or more computer data centers, which may each receive a separate certification, if each computer data center individually meets the requirements prescribed in section 2935-D. (b) Limitation.--A portion of a facility or an article of computer data equipment shall not be deemed to be a part of more than one computer data center for certification under this subarticle. (c) Aggregation.--An owner or operator may aggregate one or more parcels, buildings or condominiums in a facility into a single computer data center for certification under this subarticle if, in the aggregate, the parcels, buildings and condominiums meet the requirements prescribed in section 2935-D. Section 2935-D. Eligibility requirements. (a) General rule.--In order to be certified under this subarticle, an owner or operator of a computer data center must meet all of the following requirements: (1) On or before the fourth anniversary of certification, the combined investment, in the aggregate, of the owner or operator or qualified tenant of the computer data center must total a minimum of any of the following: (i) At least $75,000,000 of new investment if the computer data center is located in a county with a population of 250,000 or fewer individuals and creates 25 new jobs. (ii) At least $100,000,000 of new investment if the computer data center is located in a county with a population of more than 250,000 individuals and creates 45 new jobs. (2) On or before the fourth anniversary of certification, the owner or operator or qualified tenant of a computer data center, in the aggregate, must pay annual compensation of at least $1,000,000 to employees at the certified computer data center site for each year of the certification after the fourth anniversary of certification. (b) Prior applications.--A computer data center that has met the eligibility requirements as prescribed under section 2915-D and has, prior to July 1, 2021, been certified under section 2913-D shall be deemed to meet the certification requirements of this section. The certification shall not be revoked, except as provided under section 2917-D, and shall remain in effect for the remainder of the qualification period, as defined in section 2931-D(d). (c) Limitation.--The department may not certify any computer data center under this subarticle after December 31, 2032. (d) Definition.--As used in this section, the term "new investment" means construction, expansion or build out of data center space at either a new or an existing computer data center on or after January 1, 2022, and the purchase and installation of computer data center equipment, except for items described under paragraph (4) of the definition of "computer data center equipment" in section 2901-D. Section 2936-D. Notification and records. (a) Requirements satisfied.--On or before the fourth anniversary of the certification of a computer data center, the owner or operator of the computer data center shall notify the department in writing whether the computer data center for which the certification is requested has satisfied the requirements prescribed under section 2935-D. (b) Records.--The owner or operator or qualified tenant shall: (1) Maintain detailed records of all investments created by the computer data center, including costs of buildings and computer data center equipment and all tax exemptions received by the owner or operator or qualified tenant. (2) Maintain purchase journals for examination by the department. Section 2937-D. Revocation of certification. (a) Revocation.--If the department determines that the requirements of section 2935-D have not been satisfied, the department may revoke the certification of a computer data center. (b) Appeal.--The owner or operator of the computer data center may appeal the revocation. Appeals filed under this section shall be governed by Article II. (c) Recapture.--If certification is revoked under this section, the qualification period, as defined in section 2931-D(d), of any owner or operator or qualified tenant of the computer data center shall expire and the department may recapture from the owner or operator or qualified tenant all or part of the tax exemption received by the owner or operator or qualified tenant under section 2942-D. The department may give special consideration or allow a temporary exemption from recapture of the tax exemption if there is extraordinary hardship due to factors beyond the control of the owner or operator or qualified tenant. The department may require the owner or operator or qualified tenant to file appropriate amended tax returns in order to reflect any recapture of the tax exemption. (d) Limitation on assessment.--Notwithstanding the limitation on assessment and collection in section 258, the department shall assess any tax determined not to be properly exempted under this subarticle within five years from the date an owner or operator or qualified tenant of a computer data center purchases property exempt from a tax. A taxpayer may consent to an extension of the period as set forth in section 261. Section 2938-D. Guidelines. The department shall publish guidelines and prescribe forms and procedures as necessary for the purposes of this article. Section 2939-D. Confidential information. Proprietary business information contained in the application form described under section 2932-D and the written notice described under section 2936-D, as well as information concerning the identity of a qualified tenant, shall be confidential and may not be disclosed to the public. The department may disclose the name of a computer data center that has been certified under this subarticle. Section 2940-D. List of tenants. An owner or operator of a certified computer data center shall provide, to the extent permissible under Federal law, the department with a list of qualified tenants, including the commencement and expiration dates of each qualified tenant's agreement to use or occupy part of the certified computer data center. The list shall be provided to the department annually, upon request by the department. Section 2941-D. Sale or transfer. Except as provided under section 2937-D, a computer data center retains its certification regardless of a transfer, sale or other disposition, directly or indirectly, of the computer data center. Section 2942-D. Certificate of exemption. (a) General rule.--A qualified owner or operator or qualified tenant of a computer data center certified under this subarticle may submit for a sales and use tax certificate of exemption in a manner prescribed by the department on or before October 1, 2021, and renew each October 1 thereafter. The following shall apply: (1) The owner or operator or qualified tenant of a certified computer data center eligible for a sales and use tax certificate of exemption shall comply with all reporting, filing and compliance requirements under this act. (2) No owner or operator or qualified tenant may receive a sales and use tax certificate of exemption under this subarticle unless that owner or operator or qualified tenant is in full compliance with all State tax laws. (b) Notification.--No later than 60 days after the submission under subsection (a) for a sales and use tax certificate of exemption, the department shall issue a sales and use tax certificate of exemption to each applicant approved by the department. (c) Exempt purchases.--The owner or operator or qualified tenant of a certified computer data center shall prepare and deliver a properly executed sales and use tax certificate of exemption to a vendor from which the owner or operator or qualified tenant purchases exempt computer data center equipment.] Section 3.2. The act is amended by adding a section to read: Section 3003.26. Data Centers.--(a) Unless certified under Article XXIX-D prior to February 3, 2026, a computer data center shall not be eligible for tax benefits under Article XVIII-C or XIX-B or the act of October 6, 1998 (P.L.705, No.92), known as the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act. (b) As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Computer data center." All or part of a facility that may be composed of one or more businesses, owners or tenants, that is or will be predominantly used to house working servers or similar data storage systems and that may have uninterruptible energy supply or generator backup power, or both, cooling systems, towers and other temperature control infrastructure. Will the Senate agree to the amendment? JUNE 25, The PRESIDING OFFICER. The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Mr. President, this amendment that I am offering today reflects what passed earlier today in the House of Representatives. House Bill No. 2198, which came to us earlier today by a vote of 197-5, would repeal the sales and use tax exemption for data centers. This bill provides that unless a computer data center received a sales and use tax exemption certificate issued prior to February 3, 2026, the data center cannot receive the tax benefits in accordance with the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone, and Keystone Opportunity Investment [Improvement] Zone Act. As I mentioned, this bill passed 197-5 earlier today and would be effective immediately. By eliminating this exemption, it will allow the Commonwealth to offset, in this particular case, the revenue losses that we will be examining here later today as it relates to the underlying bill, which talks about the gross receipts tax on electricity bills. Estimated revenues to the Commonwealth by eliminating the sales and use tax exemption for data centers would go from $168 million this fiscal year--'26-'27--rise to [$]517 million in 20302031. These revenue estimates certainly come from the Governor's budget book and is something we think is important as we work to address some of the things that are taking place in this Commonwealth: relative data centers and the like. This measure is intended to mitigate against some of the revenue losses I mentioned, and I ask my colleagues to join me in an affirmative vote. Thank you, Mr. President. And the question recurring, Will the Senate agree to the amendment? The yeas and nays were required by Senator COSTA and were as follows, viz: YEA-47 Argall Baker Bartolotta Boscola Brooks Brown Cappelletti Collett Comitta Costa Culver Dush Farry Flynn Fontana Gebhard Haywood Hughes Kane Kearney Keefer Kim Langerholc Laughlin Malone Martin Miller Muth Pennycuick Phillips-Hill Picozzi Pisciottano Pittman Robinson Rothman Santarsiero Saval Schwank Stefano Street Tartaglione Vogel Ward, Judy Ward, Kim Williams, Anthony H. Williams, Lindsey Yaw NAY-3 Coleman Hutchinson Mastriano A majority of the Senators having voted "aye," the question was determined in the affirmative. And the question recurring, Will the Senate agree to the bill on third consideration, as amended? L. WILLIAMS AMENDMENT A3972 OFFERED Senator L. WILLIAMS offered the following amendment No. A3972: lines and inserting: Section 1. Section 1101(a), (b) and (h) of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are amended and the section is amended by adding subsections to read: (a) General Rule.--Every pipeline company, conduit company, steamboat company, canal company, slack water navigation company, transportation company, and every other company, association, jointstock association, or limited partnership, now or hereafter incorporated or organized by or under any law of this Commonwealth, or now or hereafter organized or incorporated by any other state or by the United States or any foreign government, and doing business in this Commonwealth, and every copartnership, person or persons owing, operating or leasing to or from another corporation, company, association, joint-stock association, limited partnership, copartnership, person or persons, any pipeline, conduit, steamboat, canal, slack water navigation, or other device for the transportation of freight, passengers, baggage, or oil, except motor vehicles and railroads, and every limited partnership, association, joint-stock association, corporation or company engaged in, or hereinafter engaged in, the transportation of freight or oil within this State, and every telephone company, telegraph company or provider of mobile telecommunications services now or hereafter incorporated or organized by or under any law of this Commonwealth, or now or hereafter organized or incorporated by any other state or by the United States or any foreign government and doing business in this Commonwealth, and every limited partnership, association, joint-stock association, copartnership, person or persons, engaged in telephone or telegraph business or providing mobile telecommunications services in this Commonwealth, and every limited partnership, association, joint-stock association, corporation or company providing digital advertising services in this Commonwealth, shall pay to the State Treasurer, through the Department of Revenue, a tax of fortyfive mills with a surtax equal to five mills upon each dollar of the gross receipts of the corporation, company or association, limited partnership, joint-stock association, copartnership, person or persons received from: (1) passengers, baggage, oil and freight transported wholly within this State; (2) telegraph or telephone messages transmitted wholly within this State and telegraph or telephone messages transmitted in interstate commerce where such messages originate or terminate in this State and the charges for such messages are billed to a service address in this State, except gross receipts derived from: (i) the sales of access to the Internet, as set forth in Article II, made to the ultimate consumer; (ii) the sales for resale to persons, partnerships, associations, corporations, or political subdivisions subject to the tax imposed by this article upon gross receipts derived from such resale of telecommunications services, including: (A) telecommunications exchange access to interconnect with a local exchange carrier's network; (B) network elements on an unbundled basis; and (C) sales of telecommunications services to interconnect with providers of mobile telecommunications services; and (iii) the sales of telephones, telephone handsets, modems, tablets and related accessories, including cases, chargers, holsters, clips, handsfree devices, screen protectors and batteries; [and] (3) mobile telecommunications services messages sourced to this Commonwealth based on the place of primary use standard set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. § 117), except gross receipts derived from: (i) the sales of access to the Internet, as set forth in Article II, made to the ultimate consumer; (ii) the sales for resale to persons, partnerships, associations, corporations or political subdivisions subject to the tax imposed by this article upon gross receipts derived from such resale of mobile telecommunications services, including sales of mobile telecommunications services to interconnect with providers of telecommunications services; and (iii) the sales of telephones, telephone handsets, modems, tablets and related accessories, including cases, chargers, holsters, clips, handsfree devices, screen protectors and batteries[.]; and (4) digital advertising services displayed to a user on a digital interface wholly within this Commonwealth, including banner advertising, search engine advertising, interstitial advertising and comparable advertising services that utilize the personal information of the users to whom the advertisements are served. As used in this clause, the following words and phrases shall have the meanings given to them in this clause: "Digital advertising services." The provision of advertisements displayed on a digital interface. "Digital interface." Any software, including an Internet website, part of an Internet website or application, accessible to a user. "User." An individual or other person accessing a digital interface via a device. (g.1) Exemption for Broadcast and News Media Entities.--The tax imposed under this section on gross receipts derived from digital advertising services shall not however be imposed on gross receipts from advertising services displayed on a digital interface owned or operated by a broadcast entity or news media entity. As used in this subsection, the following words and phrases shall have the meanings given to them in this subsection: "Broadcast entity." An entity primarily engaged in operating a broadcast television or radio station. "Digital advertising services." As defined in subsection (a)(4). "Digital interface." As defined in subsection (a)(4). "News media entity." An entity primarily engaged in newsgathering, reporting or publishing articles or commentary on news, current events, culture or other matters of public interest. (1) The amendment of section 1101(a) of the act shall apply to the taxable years beginning after December 31, 2025. (2) (3) (3) Will the Senate agree to the amendment? The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Allegheny, Senator Lindsey Williams. Senator L. WILLIAMS. Mr. President, this amendment would modernize the Tax Reform Code by taxing digital ads. Big tech profits are soaring, and Pennsylvanians are getting nothing in return. Google, Meta, and Amazon generate billions in advertising revenue directly targeting Pennsylvania residents, revenue built entirely on harvesting our constituents' personal data without paying State taxes on it. This amendment closes that gap. This amendment does not cost regular Pennsylvanians a penny. The tax is imposed on the platforms selling ads, not on consumers buying goods or businesses placing ads. This is a corporate revenue tax, not a tax passed through to families. Pennsylvania's Tax Code was written in 1971; the digital advertising economy did not exist then. This amendment modernizes the code to reflect how the largest corporations in the world actually make money today. This is a direct and fair way to help close our $6 billion budget gap. We must make big tech pay for the digital ads that clutter our screens and target our wallets, because the wealthiest corporations are taking a ride on our dime and it is long past time we put an end to it. I encourage my colleagues to support this amendment. Thank you. And the question recurring, Will the Senate agree to the amendment? L. WILLIAMS AMENDMENT A3972 TABLED The PRESIDING OFFICER. The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Mr. President, I move the amendment be laid upon the table. The PRESIDING OFFICER. Senator Pittman moves that the amendment be laid upon the table. The motion is not debatable. Will the Senate agree to the motion? The yeas and nays were required by Senator PITTMAN and were as follows, viz: YEA-27 Argall Baker Bartolotta Brooks Brown Coleman Culver Dush Farry Gebhard Hutchinson Keefer Langerholc Laughlin Martin Mastriano Pennycuick Phillips-Hill Picozzi Pittman Robinson Rothman Stefano Vogel Ward, Judy Ward, Kim Yaw NAY-23 Boscola Cappelletti Collett Comitta Costa Flynn Fontana Haywood Hughes Kane Kearney Kim Malone Miller Muth Pisciottano Santarsiero Saval Schwank Street Tartaglione Williams, Anthony H. Williams, Lindsey A majority of the Senators having voted "aye," the question was determined in the affirmative. The PRESIDING OFFICER. Amendment A3972 will be laid on the table. And the question recurring, Will the Senate agree to the bill on third consideration, as amended? MUTH AMENDMENT A3974 OFFERED Senator MUTH offered the following amendment No. A3974: in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; in general provisions, further providing for underpayment of estimated tax; lines and inserting: Section 1. Section 401(3)1(a), (b) and (t) and (5) of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are JUNE 25, amended, (3)2(a)(9)(A) is amended by adding a unit, (3)1 and (3)4 are amended by adding phrases and the section is amended by adding clauses to read: Section 401. Definitions.--The following words, terms, and phrases, when used in this article, shall have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning: (3) "Taxable income." 1. (a) In case the entire business of the corporation is transacted within this Commonwealth, for any taxable year which begins on or after January 1, 1971, taxable income for the calendar year or fiscal year as returned to and ascertained by the Federal Government before special deductions provided for in sections 241, 243, 245, 246, 247, 248, 249 and 250 of the Internal Revenue Code of 1986 (26 U.S.C. §§ 241, 243, 245, 246, 247, 248, 249 and 250), or in the case of a corporation participating in the filing of consolidated returns to the Federal Government or that is not required to file a return with the Federal Government, the taxable income which would have been returned to and ascertained by the Federal Government before special deductions provided for in sections 241, 243, 245, 246, 247, 248, 249 and 250 of the Internal Revenue Code of 1986 (26 U.S.C. §§ 241, 243, 245, 246, 247, 248, 249 and 250) if separate returns had been made to the Federal Government for the current and prior taxable years, subject, however, to any correction thereof, for fraud, evasion, or error as finally ascertained by the Federal Government. (b) Additional deductions shall be allowed from taxable income on account of any dividends received from any other corporation but only to the extent that such dividends are included in taxable income as returned to and ascertained by the Federal Government. For tax years beginning on or after January 1, 1991, additional deductions shall only be allowed for amounts included, under section 78 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 78), in taxable income returned to and ascertained by the Federal Government and for the amount of any dividends received from a foreign corporation included in taxable income to the extent such dividends would be deductible in arriving at Federal taxable income if received from a domestic corporation. For taxable years beginning after December 31, 2026, the additional deduction with respect to dividends shall not be allowed for dividends between members of a unitary group. (p.1) For taxable years after December 31, 2026, in the case of a corporation that is a member of a unitary business, the term "taxable income" shall mean the combined unitary income of the unitary business, as determined on a water's-edge basis. (t) (1) Except as provided in paragraph (2), (3) or (4) for taxable years beginning after December 31, 2014, and in addition to any authority the department has on the effective date of this paragraph to deny a deduction related to a fraudulent or sham transaction, no deduction shall be allowed for an intangible expense or cost, or an interest expense or cost, paid, accrued or incurred directly or indirectly in connection with one or more transactions with an affiliated entity. In calculating taxable income under this paragraph, when the taxpayer is engaged in one or more transactions with an affiliated entity that was subject to tax in this Commonwealth or another state or possession of the United States on a tax base that included the intangible expense or cost, or the interest expense or cost, paid, accrued or incurred by the taxpayer, the taxpayer shall receive a credit against tax due in this Commonwealth in an amount equal to the apportionment factor of the taxpayer in this Commonwealth multiplied by the greater of the following: (A) the tax liability of the affiliated entity with respect to the portion of its income representing the intangible expense or cost, or the interest expense or cost, paid, accrued or incurred by the taxpayer; or (B) the tax liability that would have been paid by the affiliated entity under subparagraph (A) if that tax liability had not been offset by a credit. The credit issued under this paragraph shall not exceed the taxpayer's liability in this Commonwealth attributable to the net income taxed as a result of the adjustment required by this paragraph. (2) The adjustment required by paragraph (1) shall not apply to a transaction that did not have as [the] a principal purpose the avoidance of tax due under this article and was done at arm's length rates and terms. (3) The adjustment required by paragraph (1) shall not apply to a transaction between a taxpayer and an affiliated entity domiciled in a foreign nation which has in force a comprehensive income tax treaty with the United States providing for the allocation of all categories of income subject to taxation, or the withholding of tax, on royalties, licenses, fees and interest for the prevention of double taxation of the respective nations' residents and the sharing of information. (4) The adjustment required by paragraph (1) shall not apply to a transaction where an affiliated entity directly or indirectly paid, accrued or incurred a payment to a person who is not an affiliated entity, if the payment is paid, accrued or incurred on the intangible expense or cost, or interest expense or cost, and is equal to or less than the taxpayer's proportional share of the transaction. The taxpayer's proportional share shall be based on relative sales, assets, liabilities or another reasonable method. (5) The adjustment required under paragraph (1) shall not apply to a transaction between the taxpayer and an affiliated entity, where the taxpayer and the affiliated entity file a combined annual report in this State. 2. In case the entire business of any corporation, other than a corporation engaged in doing business as a regulated investment company as defined by the Internal Revenue Code of 1986, is not transacted within this Commonwealth, the tax imposed by this article shall be based upon such portion of the taxable income of such corporation for the fiscal or calendar year, as defined in subclause 1 hereof, and may be determined as follows: (a) Division of Income. (9) (A) Except as provided in subparagraph (B): (vi) (a) For taxable years beginning after December 31, 2026, all business income of a unitary business shall be apportioned to this State by multiplying the income by the member's sales factor, the numerator of which shall be the member's total sales in this State, and the denominator of which shall be the combined total sales of all members of the unitary business everywhere. In computing the sales of each member for purposes of apportionment, the following sales are excluded from the numerator and denominator: (I) sales from transactions between or among members of the unitary business that are deferred under 26 CFR 1.1502-13 (relating to intercompany transactions) for Federal taxable income purposes; and (II) the sales of each member that are excluded from the unitary business pursuant to the definition of water's-edge basis. (b) The Pennsylvania sales of each nontaxable member shall be determined based upon the apportionment rules applicable to the member and shall be aggregated. Each taxable member of the group shall include in its sales factor numerator a portion of the aggregate Pennsylvania sales of nontaxable members based on a ratio, the numerator of which is the taxable member's Pennsylvania sales and the denominator of which is the aggregate Pennsylvania sales of all the taxable members of the group. (c) Nonbusiness income of each member of a unitary business shall be allocated as provided in paragraphs (5) through (8) of phrase (a) of subclause 2 of this definition. A member of the unitary business is subject to tax on its apportioned share of all business income of the unitary business, plus its nonbusiness income or loss allocated to this State, minus the member's net loss deduction. (d) The Secretary of Revenue has the authority to distribute, apportion or allocate gross income, deductions, credits or allowances between and among two or more corporations, persons, entities, members or unitary businesses, whether or not incorporated, whether or not organized in the United States and whether or not affiliated, if: (I) the corporations, persons, entities, members or unitary businesses are owned or controlled directly or indirectly by the same interests within the meaning of section 482 of the Internal Revenue Code (26 U.S.C. § 482); and (II) the Secretary of Revenue determines that the distribution, apportionment or allocation is necessary in order to reflect an arm's length standard within the meaning of 26 CFR 1.482-1 (relating to allocation of income and deductions among taxpayers) and to reflect clearly the income of those corporations, persons, entities, members or unitary businesses. (e) The Secretary of Revenue shall apply the administrative and judicial interpretations of section 482 of the Internal Revenue Code (26 U.S.C. § 482) in administering this section. (f) For taxable years beginning after December 31, 2026, any member of a unitary group that would otherwise apportion its business income under phrase (b), (c), (d) or (e) of subclause 2 of this definition shall determine its apportionment formula using a single sales fraction. 4. * * * (h) Subject to the limitations of this subclause, any member of a unitary business that has unused net loss from taxable years that began prior to January 1, 2027, or that generates net losses while a member of a unitary business may only take the net loss deduction for taxable years beginning after December 31, 2025, to the extent of the member's share of combined unitary income after apportionment and the net losses may not be used by other members of the same unitary business. (i) Any net loss realized for a taxable year unused by a corporation which subsequently becomes a member of another unitary business, may only be used by that corporation. (5) "Taxable year." [The taxable year which the corporation, or any consolidated group with which the corporation participates in the filing of consolidated returns, actually uses in reporting taxable income to the Federal Government. With regard to the tax imposed by Article IV of this act (relating to the Corporate Net Income Tax), the terms "annual year," "fiscal year," "annual or fiscal year," "tax year" and "tax period" shall be the same as the corporation's taxable year, as defined in this paragraph.] 1. Except as set forth in subclause 2, the taxable year which the corporation, or any consolidated group with which the corporation participates in the filing of consolidated returns, actually uses in reporting taxable income to the Federal Government, or which the corporation would have used in reporting taxable income to the Federal Government had it been required to report its taxable income to the Federal Government. With regard to the tax imposed by Article IV, the terms "annual year," "fiscal year," "annual or fiscal year," "tax year" and "tax period" shall be the same as the corporation's taxable year, as defined in this subclause or subclause 2. 2. All members of a unitary business shall have a common taxable year for purposes of computing tax due under this article. The taxable year for such purposes is the common taxable year adopted, in a manner prescribed by the department, by all members of the unitary business. The common taxable year must be used by all members of the unitary business in the year of adoption and all future years unless otherwise permitted by the department. (12) "Tax haven." Means any of the following: 1. Andorra. 2. Anguilla. 3. Antigua and Barbuda. 4. Aruba. 5. The Bahamas. 6. Bahrain. 7. Barbados. 8. Belize. 9. Bermuda. 10. Bonaire. 11. The British Virgin Islands. 12. The Cayman Islands. 13. The Cook Islands. 14. Curacao. 15. Cyprus. 16. Dominica. 17. Gibraltar. 18. Grenada. 19. Guernsey-Sark-Alderney. 20. Ireland. 21. The Isle of Man. 22. Jersey. 23. Liberia. 24. Liechtenstein. 25. Luxembourg. 26. Malta. 27. The Marshall Islands. 28. Mauritius. 29. Monaco. 30. Montserrat. 31. Nauru. 32. Netherlands. 33. Niue. 34. Panama. 35. Saba. 36. Samoa. 37. San Marino. 38. Seychelles. 39. Singapore. 40. Sint Eustatius. 41. Sint Maarten. 42. St. Kitts and Nevis. 43. St. Lucia. 44. St. Vincent and the Grenadines. 45. Switzerland. 46. Turks and Caicos Islands. 47. Vanuatu. 48. A jurisdiction that is identified as a tax haven by the Organization for Economic Co-operation and Development. (13) "Unitary business." A single economic enterprise that is made up of separate parts of a single corporation, of a commonly controlled group of corporations, or both, that are sufficiently interdependent, integrated and interrelated through their activities so as to provide a synergy and mutual benefit that produces a sharing or exchange of value among them and a flow of value to the separate parts. A unitary business includes all those parts and corporations that are included in a unitary business under the Constitution of the United States. (14) "Water's-edge basis." A system of reporting that includes the income and apportionment factors of certain members of a unitary business, described as follows: 1. Any member incorporated in the United States or formed under the laws of any state of the United States, the District of Columbia, any territory or possession of the United States or the Commonwealth of Puerto Rico. 2. Any member, regardless of the place incorporated or formed, if at least twenty per cent of the member's sales factor is within the United States, and the following shall apply: (a) For purposes of determining whether at least twenty per cent of a member's sales factor is within the United States, the calculation must be performed on a stand-alone basis. Sales shall be gross figures without eliminations for transactions with other members of any unitary business. (b) Whether sales are within the United States is based on the sales factor sourcing provisions contained in clause (3). 3. Any member which is one of the following: (a) A domestic international sales corporation as described in sections 991, 992, 993 and 994 of the Internal Revenue Code of 1986 (26 U.S.C. §§ 991, 992, 993 and 994). (b) A foreign sales corporation as described in former sections 921, 922, 923, 924, 925, 926 and 927 of the Internal Revenue Code of 1986 (26 U.S.C. §§ 921, 922, 923, 924, 925, 926 and 927). (c) An export trade corporation as described in sections 970 and 971 of the Internal Revenue Code of 1986 (26 U.S.C. §§ 970 and 971). 4. Any member not described in subclause 1, 2 or 3 shall include the portion of the member's taxable income derived from or attributable to sources within the United States, as determined under the Internal Revenue Code of 1986 (26 U.S.C. § 1 et seq.) without regard to Federal treaties, and its apportionment factors related thereto. 5. Any member that is a "controlled foreign corporation" as defined in section 957 of the Internal Revenue Code of 1986 (26 U.S.C. § 957), to the extent the income of that member is income defined in section 952 of the Internal Revenue Code of 1986 (26 U.S.C. § 952) as Subpart F income, not excluding lower-tier subsidiaries' distributions of such income which were previously taxed, determined without regard to Federal treaties, and the apportionment factors related to that income; any item of income received by a controlled foreign corporation and the apportionment factors related to such income shall be excluded if the corporation establishes to the satisfaction of the Secretary of Revenue that such income was subject to an effective rate of income tax imposed by a foreign country greater than ninety per cent of the maximum rate of tax specified in section 11 of the Internal Revenue Code of 1986 (26 U.S.C. § 11). The effective rate of income tax determination shall be based upon JUNE 25, the methodology set forth under 26 CFR 1.954-1 (relating to foreign base company income). 6. Any member that is incorporated in or is doing business in a tax haven. The income and apportionment factors of a member doing business in a tax haven shall be excluded if the member establishes to the satisfaction of the Secretary of Revenue that the member's income was subject to an effective rate of income tax imposed by a country greater than ninety per cent of the maximum rate of tax specified in section 11 of the Internal Revenue Code of 1986 (26 U.S.C. § 11). (15) "Commonly controlled group." For a corporation, the corporation is a member of a group of two or more corporations and more than fifty per cent of the voting stock or controlling interest of each member of the group is directly or indirectly owned by a common owner or by common owners, either corporate or noncorporate, or by one or more of the member corporations of the group. (16) "Combined unitary income." The aggregate taxable income or loss of all members of a unitary business, subject to apportionment, except: 1. Income from an intercompany transaction between members of a unitary business shall be deferred in a manner similar to 26 CFR 1.1502-13 (relating to intercompany transactions) for Federal taxable income purposes. 2. Dividends paid by one member of a unitary business to another. 3. Income of the following members is not included in the determination of combined unitary income: (a) any member subject to taxation under Article VII, VIII, IX or XV; (b) any member specified in the definition of "institution" in section 701.5 that would be subject to taxation under Article VII, were it doing business in this State, as defined in section 701.5; (c) any member commonly known as a title insurance company that would be subject to taxation under Article VIII, were it incorporated in this State; (d) any member specified as an insurance company, association or exchange in Article IX that would be subject to taxation under Article IX, were it transacting insurance business in this State; (e) any member specified in the definition of "institution" in section 1501 that would be subject to taxation under Article XV, were it located, as defined in section 1501, in this State; or (f) any member that is a small corporation as defined in section 301(s.2) except to the extent of such small corporation's net recognized built-in gain to the extent of and as determined for Federal income tax purposes under section 1374(d)(2) of the Internal Revenue Code of 1986 (26 U.S.C. § 1374(d)(2)). (17) "Member." A corporation that is a member of a unitary business. The term does not include a corporation listed in subclause 3 of clause (16). Section 2. Section 402(b) of the act is amended to read: Section 402. Imposition of Tax.--* * * (b) The annual rate of tax on corporate net income imposed by subsection (a) for taxable years beginning for the calendar year or fiscal year on or after the dates set forth shall be as follows: Taxable Year Tax Rate January 1, 1995, through December 31, 2022 9.99% January 1, 2023, through December 31, 2023 8.99% January 1, 2024, through December 31, 2024 8.49% January 1, 2025, through December 7.99% 31, 2025 January 1, 2026, [through December 31, 2026] and each taxable year [7.49%] 4% thereafter [January 1, 2027, through December 31, 2027 6.99% January 1, 2028, through December 31, 2028 6.49% January 1, 2029, through December 31, 2029 5.99% January 1, 2030, through December 5.49% 31, 2030 January 1, 2031, and each taxable year 4.99%] thereafter Section 3. Section 403 of the act is amended by adding subsections to read: Section 403. Reports and Payment of Tax.--* * * (a.1) (1) Each corporation that is a member of a unitary business that consists of two or more corporations, unless excluded by the provisions of this article, shall file as part of a combined annual report. The member of the unitary business shall designate one member that is subject to tax under this article to file the combined annual report and to act as agent on behalf of all other members of the unitary business. Each corporation that is a member of a unitary business is liable for its tax liability under this article. The agent is also liable for the aggregate amount of the unitary business' tax liability pursuant to this article. (2) The oath or affirmation of the designated member's president, vice president, treasurer, assistant treasurer or other authorized officer shall constitute the oath or affirmation of each corporation that is a member of that unitary business. (3) The designated member shall transmit to the department upon a form prescribed by the department a combined annual report under oath or affirmation of the member's president, vice president, treasurer, assistant treasurer or other authorized officer. (4) In addition to the information required in subsection (a), the combined annual report shall set forth: (i) All members included in the unitary business. (ii) All necessary data, both in the aggregate and for each member of the unitary business, that sets forth the determination of tax liability for each member of the unitary business. (iii) Any other information that the department may require. (a.2) A member of a unitary business of two or more corporations must determine the member's income and apportionment factors on a water's-edge basis. Section 4. Section 404 of the act is amended to read: Section 404. Consolidated Reports.--The department shall not permit any corporation owning or controlling, directly or indirectly, any of the voting capital stock of another corporation or of other corporations, subject to the provisions of this article, to make a consolidated report[, showing the combined net income]. Section 5. Section 1101(b) and (h) of the act are amended and the section is amended by adding a subsection to read: first time and inserting: Section 8. Section 3003.3(d) of the act is amended and the section is amended by adding a subsection to read: Section 3003.3. Underpayment of Estimated Tax.--* * * (d) Notwithstanding the provisions of [the preceding subsections,] this section, other than as set forth in subsection (d.1), interest with respect to any underpayment of any installment of estimated tax shall not be imposed if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of such installment equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were an amount equal to the tax computed at the rates applicable to the taxable year, including any minimum tax imposed, but otherwise on the basis of the facts shown on the report of the taxpayer for, and the law applicable to, the safe harbor base year, adjusted for any changes to sections 401, 601, 602 and 1101 enacted for the taxable year, if a report showing a liability for tax was filed by the taxpayer for the safe harbor base year. If the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of such installment does not equal or exceed the amount required to be paid per the preceding sentence, but such amount is paid after the date the installment was required to be paid, then the period of underpayment shall run from the date the installment was required to be paid to the date the amount required to be paid per the preceding sentence is paid. Provided, that if the total tax for the safe harbor base year exceeds the tax shown on such report by ten per cent or more, the total tax adjusted to reflect the current tax rate shall be used for purposes of this subsection. In the event that the total tax for the safe harbor base year exceeds the tax shown on the report by ten per cent or more, interest resulting from the utilization of such total tax in the application of the provisions of this subsection shall not be imposed if, within forty-five days of the mailing date of each assessment, payments are made such that the total amount of all payments of estimated tax equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were an amount equal to the total tax adjusted to reflect the current tax rate. In any case in which the taxable year for which an underpayment of estimated tax may exist is a short taxable year, in determining the tax shown on the report or the total tax for the safe harbor base year, the tax will be reduced by multiplying it by the ratio of the number of installment payments made in the short taxable year to the number of installment payments required to be made for the full taxable year. (d.1) With respect to any underpayment of an installment of estimated corporate net income tax for any tax year that begins in taxable year 2026 or 2027 by a corporation required to file a combined annual report pursuant to section 403(a.1)(1), interest shall not be imposed if the total amount of all payments of estimated corporate net income tax made on or before the last date prescribed for the payment of such installment equals or exceeds the amount which would have been required to be paid on or before such date if the estimated tax were an amount equal to the combined tax shown on the reports of all the members of the unitary business for the safe harbor base year computed at the rate applicable to the taxable year. (1) The amendment of sections 401, 403, 404 and 3003.3 of the act shall apply to taxable years beginning after December 31, 2026. (2) (3) (3) 9 and 10 Will the Senate agree to the amendment? The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Montgomery, Senator Muth. Senator MUTH. Mr. President, my amendment includes the language of Senate Bill No. 1208, which I introduced with Senator Lindsey Williams and Senator Saval to establish a system of combined reporting to ensure that all corporations that do business in Pennsylvania are paying their fair share in taxes. There are currently 28 other States and the District of Columbia that require combined reporting. This amendment would ensure that multistate businesses file a single return featuring the income and expenses of parent companies and their affiliates, regardless of location. For way too long, working families, small businesses, and local communities have carried the tax burden while some of the largest corporations in the world have exploited these tax loopholes and avoided contributing their fair share to the Commonwealth that helps make their profits possible. Combined reporting is a commonsense reform already used in many States across the country that closes these loopholes, creating a level playing field and ensures that companies compete based on the quality of their products and services, not on their ability of their army of accountants to figure out how to game our tax system. A shift to combine reporting levels, the playing field for Pennsylvania businesses that are playing by the rules, it helps stop corporate tax avoidance and modernizes our tax system, and it helps bring in additional revenue by increasing the amount of businesses subject to our corporate net income tax. When corporations benefit from Pennsylvania's workforce, infrastructure, and consumers, they should contribute to Pennsylvania's future. It is time that our Commonwealth established a system of combined reporting, and I ask my colleagues for an affirmative vote on my amendment. Thank you, Mr. President. The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Philadelphia, Senator Tartaglione. Senator TARTAGLIONE. Mr. President, I rise in support of this amendment. Pennsylvanians are facing affordability crisis from all sides, whether it is gas, housing, groceries, healthcare, utility bills, entertainment. The cost of living has ballooned, and our people have been under immense stress since the pandemic. And the notch has turned up even further under the disastrous and unserious Federal government that has made mistake after mistake, sometimes intentionally, all the while downplaying and washing their hands of the burden placed on ordinary Pennsylvanians. That is why it is my great hope that, in the absence of Federal leadership, our State legislature can start taking affordability serious. As the House passed unanimously, and our Chamber is likely to do today, we can make an appropriate step by eliminating the gross receipts tax, which will shave some dollars off exorbitant electric bills, but we can do more. Since 2002, I have had legislation that closes the Delaware loophole; that is the mechanism by which corporations establish themselves in Delaware and, in the absence of effective State laws, pay nothing in taxes even though they do business across the country. Pennsylvania is in the minority of the States that have chosen not to close the loophole, and, as a result, 73 percent of corporations--73 percent of corporations--do not pay a single dime in corporate taxes here. That is, frankly, absurd, especially considering that States as diverse as California, Texas, and even West Virginia already have implemented combined reporting. The underlying repeal on gross receipts puts money back in the pockets of Pennsylvanians who need it more than ever, but with an estimated $1.7 billion loss in State revenue as a result. We need to explore how we close this gap, and it is certainly not by taking more money from our citizens. The revenue gap should be closed by making the corporations who profit from our market pay their fair share of tax in the JUNE 25, State. If we take a step towards affordability seriously, this amendment is necessary, and I urge an affirmative vote. Thank you, Mr. President. And the question recurring, Will the Senate agree to the amendment? MUTH AMENDMENT A3974 TABLED The PRESIDING OFFICER. The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Mr. President, I move the amendment be laid upon the table. The PRESIDING OFFICER. Senator Pittman moves that the amendment be laid upon the table. The motion is not debatable. On the question. Will the Senate agree to the motion? The yeas and nays were required by Senator PITTMAN and were as follows, viz: YEA-27 Argall Baker Bartolotta Brooks Brown Coleman Culver Dush Farry Gebhard Hutchinson Keefer Langerholc Laughlin Martin Mastriano Pennycuick Phillips-Hill Picozzi Pittman Robinson Rothman Stefano Vogel Ward, Judy Ward, Kim Yaw NAY-23 Boscola Cappelletti Collett Comitta Costa Flynn Fontana Haywood Hughes Kane Kearney Kim Malone Miller Muth Pisciottano Santarsiero Saval Schwank Street Tartaglione Williams, Anthony H. Williams, Lindsey A majority of the Senators having voted "aye," the question was determined in the affirmative. The PRESIDING OFFICER. Amendment A3974 will be laid on the table. The PRESIDING OFFICER. The Senate will be at ease. [The Senate was at ease.] And the question recurring, Will the Senate agree to the bill on third consideration, as amended? J. WARD AMENDMENT A3975 ADOPTED Senator J. WARD offered the following amendment No. A3975: providing for educational tax credits; repeals 1101.2 AND 1828-G(C) OF THE ACT ARE" in line 3 and all of line 4 and inserting: Section 1101.2 of the act is amended to read: Section 3. The act is amended by adding an article to read: ARTICLE XVII-F Section 1701-F. Scope of article. This article establishes the educational improvement and opportunity scholarship tax credits. Section 1702-F. Definitions. The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Applicable taxes." Any of the taxes due under Article III, IV, VI, VII, VIII, IX, XV or XX or a tax under Article XVI of the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921. "Applicant." An eligible student who applies for a scholarship. "Assessment." The Pennsylvania System of School Assessment test, the Keystone Exam, an equivalent local assessment or another test established or approved by the State Board of Education or the General Assembly to meet the requirements of section 2603-B(d)(10)(i) of the Public School Code of 1949, or required under the Every Student Succeeds Act (Public Law 114-95, 129 Stat. 1802) or its successor statute or another test required to achieve other standards established by the Department of Education for the public school or school district under 22 Pa. Code § 403.3 (relating to single accountability system). "Attendance boundary." A geographic area of residence used by a school district to assign a student to a public school. "Average daily membership." As defined in section 2501(3) of the Public School Code of 1949. "Business firm." An entity authorized to do business in this Commonwealth and subject to taxes imposed under Article III, IV, VI, VII, VIII, IX, XV or XX or a tax under Article XVI of The Insurance Company Law of 1921. The term includes a pass-through entity, including a pass-through entity, the purpose of which is the making of contributions under this article and whose shareholders, partners or members are composed of owners or employes of other business firms. "Career and technical school." A public secondary school established under the provisions of Article XVIII of the Public School Code of 1949. "Contribution." A donation of cash, personal property or services, the value of which is the net cost of the donation to the donor or the pro rata hourly wage, including benefits, of the individual performing the services. "Department." The Department of Community and Economic Development of the Commonwealth. "Economically disadvantaged school." Any school within this Commonwealth at which at least 51% of the students attending the school in the immediately preceding school year received a scholarship pursuant to this article in the following amounts: (1) for a pre-kindergarten, kindergarten or elementary school, at least $500; and (2) for a secondary school, at least $1,000. "Educational improvement organization." A nonprofit entity which: (1) is exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.); and (2) contributes at least 90% of its annual receipts as grants to a public school, a chartered school as defined in section 1376.1 of the Public School Code of 1949, or a private school approved under section 1376 of the Public School Code of 1949, for innovative educational programs. For purposes of this definition, a nonprofit entity "contributes" its annual cash receipts when it expends or otherwise irrevocably encumbers those funds for expenditure during the then-current fiscal year of the nonprofit entity or during the next succeeding fiscal year of the nonprofit entity. A nonprofit entity shall include a school district foundation, public school foundation, charter school foundation or cyber charter school foundation. "Elementary school." A school which is not a secondary school. "Eligible pre-kindergarten student." A student, including an eligible student with a disability, who is enrolled in a pre-kindergarten program and is a member of a household with a maximum annual household income as increased by the applicable income allowance. "Eligible student." A school-age student, including an eligible student with a disability, who is enrolled in a school and is a member of a household with a maximum annual household income as increased by the applicable income allowance. "Eligible student with a disability." A pre-kindergarten student or a school-age student who meets all of the following: (1) Is enrolled in a special education school or has otherwise been identified, in accordance with 22 Pa. Code Ch. 14 (relating to special education services and programs), as a "child with a disability," as defined in 34 CFR § 300.8 (relating to child with a disability). (2) Needs special education and related services. (3) Is enrolled in a pre-kindergarten program or in a school. (4) Is a member of a household with a household income of not more than the maximum annual household income. "Fiscal year." The Commonwealth's fiscal year beginning July 1 and ending June 30. "Household." An individual living alone or with the following: a spouse, parent and their unemancipated minor children, other unemancipated minor children who are related by blood or marriage or other adults or unemancipated minor children living in the household who are dependent upon the individual. "Household income." All money or property received of whatever nature and from whatever source derived. The term does not include the following: (1) Periodic payments for sickness and disability other than regular wages received during a period of sickness or disability. (2) Disability, retirement or other payments arising under workers' compensation acts, occupational disease acts and similar legislation by any government. (3) Payments commonly recognized as old-age or retirement benefits paid to persons retired from service after reaching a specific age or after a stated period of employment. (4) Payments commonly known as public assistance or unemployment compensation payments by a governmental agency. (5) Payments to reimburse actual expenses. (6) Payments made by employers or labor unions for programs covering hospitalization, sickness, disability or death, supplemental unemployment benefits, strike benefits, Social Security and retirement. (7) Compensation received by United States servicemen serving in a combat zone. (8) Payments received from a governmental agency to relieve the economic effects of the COVID-19 pandemic. "Income allowance." The base amount of $15,000 for each eligible student, eligible pre-kindergarten student and dependent member of the household. Beginning July 1, 2014, the department shall annually adjust the base amount to reflect upward changes in the Consumer Price Index for All Urban Consumers for the Pennsylvania, New Jersey, Delaware and Maryland area for the preceding 12 months. The department shall immediately transmit the adjusted amounts to the Legislative Reference Bureau for publication as a notice in the next available issue of the Pennsylvania Bulletin. "Innovative educational program." An advanced academic or similar program that is not part of the regular academic program of a public school but that enhances the curriculum or academic program of the public school, chartered school or private school or provides pre-kindergarten programs to public school students, students of a chartered school or students of a private school. For the purposes of this definition, a chartered school shall mean a chartered school as defined in section 1376.1 of the Public School Code of 1949, and a private school shall mean a private school approved under section 1376 of the Public School Code of 1949. "Kindergarten." A one-year formal educational program that occurs during the school year immediately prior to first grade. The term includes a part-time and a full-time program. "Low-achieving school." A public school that ranked in the lowest 15% of the school's designation as an elementary school or a secondary school based on combined mathematics and reading scores from the annual assessment administered in the previous school year and for which the Department of Education has posted results on the Department of Education's publicly accessible Internet website. The term does not include a charter school, cyber charter school or area career and technical school. "Maximum annual household income." (1) Subject to adjustment under paragraphs (2) and (3), the amount of $90,000, plus the applicable income allowance. (2) With respect to an eligible student with a disability, as calculated by multiplying: (i) the applicable amount under paragraph (1); by (ii) the applicable support level factor according to the following table: Support Level Support Level Factor 1.50 2.993 (3) Beginning July 1, 2014, the department shall annually adjust the income amounts under paragraphs (1) and (2) to reflect any upward changes in the Consumer Price Index for All Urban Consumers for the Pennsylvania, New Jersey, Delaware and Maryland area in the preceding 12 months and shall immediately transmit the adjusted amounts to the Legislative Reference Bureau for publication as a notice in the next available issue of the Pennsylvania Bulletin. "Nonpublic school." A school which is a nonprofit organization and which is located in this Commonwealth. The term does not include a public school. "Opportunity scholarship." An award given to an applicant to pay tuition and school-related fees necessary to attend a participating nonpublic school or a participating public school located in a school district which is not the recipient's school district of residence. "Opportunity scholarship organization." A nonprofit entity which: (1) is exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.); and (2) contributes at least 90% of the entity's annual cash receipts to an opportunity scholarship program or at least 85% of the annual cash receipts if the entity reports an annual IRS program expense percentage of greater than 90% on its IRS 990 tax filing. For the purposes of this definition, a nonprofit entity contributes the entity's cash receipts to an opportunity scholarship program when the entity expends or otherwise irrevocably encumbers those funds for distribution during the then-current fiscal year of the nonprofit entity or during the next succeeding fiscal year of the nonprofit entity. "Opportunity scholarship program." A program to provide opportunity scholarships to eligible students who reside within the attendance area of a low-achieving school. "Parent." An individual who: (1) is a resident of this Commonwealth; and (2) either: (i) has legal custody or guardianship of a student; or (ii) keeps in the individual's home a student and supports the student gratis as if the student were a lineal descendant of the individual. "Participating nonpublic school." A nonpublic school which notifies the Department of Education under section 1711-F that the school wishes to accept opportunity scholarship recipients. "Participating public school." A public school in a school district which notifies the Department of Education under section 1711-F that the school wishes to accept opportunity scholarship recipients. The term does not include a low-achieving school. "Pass-through entity." A partnership as defined in section 301(n.0), a single-member limited liability company treated as a disregarded entity for Federal income tax purposes or a Pennsylvania S corporation as defined in section 301(n.1). The term includes a pass-through entity that owns an interest in a pass-through entity. The term also includes a qualified Subchapter S trust. "Pre-kindergarten program." A program of instruction for threeyear-old, four-year-old, five-year-old or six-year-old students, other than JUNE 25, a kindergarten, that utilizes a curriculum aligned with the curriculum of the school with which it is affiliated and which provides one of the following: (1) A minimum of two hours of instructional and developmental activities per day at least 60 days per school year. (2) A minimum of two hours of instructional and developmental activities per day at least 20 days over the summer recess. "Pre-kindergarten scholarship organization." A nonprofit entity which: (1) is exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code of 1986 or is operated as a separate segregated fund by a scholarship organization that has been qualified under section 1703-F; and (2) contributes at least 90% of its annual cash receipts to a prekindergarten scholarship program by expending or otherwise irrevocably encumbering those funds for distribution during the then-current fiscal year of the organization or during the next succeeding fiscal year of the organization or at least 85% of the annual cash receipts if the entity reports an annual IRS program expense percentage of greater than 90% on its IRS 990 tax filing. "Pre-kindergarten scholarship program." A program to provide tuition to eligible pre-kindergarten students to attend a pre-kindergarten program operated by or in conjunction with a school located in this Commonwealth and that includes an application and review process for the purpose of making awards to eligible pre-kindergarten students and awards scholarships to eligible pre-kindergarten students without limiting availability to only students of one school or one building within a school district or nonpublic school entity. "Public school." A public pre-kindergarten where compulsory attendance requirements do not apply or a public kindergarten, elementary school, secondary school or career and technical school at which the compulsory attendance requirements of this Commonwealth may be met and which meets the applicable requirements of Title VI of the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241). "Public School Code of 1949." The act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949. "Qualified Subchapter S trust." As defined in section 1361(d)(3) of the Internal Revenue Code of 1986. "Recipient." An applicant who receives a scholarship. "Scholarship." An award under a scholarship program to pay tuition and school-related fees to attend a school. "Scholarship organization." A nonprofit entity which: (1) is exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code of 1986; and (2) contributes at least 90% of its annual cash receipts to a scholarship program or at least 85% of the annual cash receipts if the entity reports an annual IRS program expense percentage of greater than 90% on its IRS 990 tax filing. For purposes of this definition, a nonprofit entity "contributes" its annual cash receipts to a scholarship program when it expends or otherwise irrevocably encumbers those funds for distribution during the then-current fiscal year of the nonprofit entity or during the next succeeding fiscal year of the nonprofit entity. "Scholarship program." A program to provide tuition and schoolrelated fees to eligible students to attend a school located in this Commonwealth. A scholarship program must include an application and review process for the purpose of making awards to eligible students. The award of scholarships to eligible students shall be made without limiting availability to only students of one school or one building within a school district or nonpublic school entity. "School." A public or nonpublic pre-kindergarten, kindergarten, elementary school or secondary school at which the compulsory attendance requirements of the Commonwealth may be met and which meets the applicable requirements of Title VI of the Civil Rights Act of 1964. "School age." Children from the earliest admission age to a school's pre-kindergarten or kindergarten program or, when no pre-kindergarten or kindergarten program is provided, the school's earliest admission age for beginners, until the end of the school year, the student attains 21 years of age or graduation from high school, whichever occurs first. "School district of residence." The school district in which the student's primary domicile is located. "School-related fees." Fees charged by a school to all students for books, instructional materials, technology equipment and services, uniforms, activities and concurrent enrollment programs under Article XVIB of the Public School Code of 1949. "Secondary school." A school with an eleventh grade. "Special education school." A school or program within a school that is designated specifically and exclusively for students with any of the disabilities listed in 34 CFR 300.8 and meets one of the following: (1) Is licensed under the act of January 28, 1988 (P.L.24, No.11), known as the Private Academic Schools Act. (2) Is accredited by an accrediting association approved by the State Board of Education. (3) Is a school for the blind or deaf receiving Commonwealth appropriations. (4) Is operated by or under the authority of a bona fide religious institution or by the Commonwealth or any political subdivision thereof. "Student." An individual who meets all of the following: (1) Is school age. (2) Is a resident of this Commonwealth. (3) Attends or is about to attend a school. "Support level." The level of support needed by an eligible student with a disability, as set forth in the following matrix: Support Level 1 - The student is not enrolled in a special education school. Support Level 2 - The student is enrolled as a student in a special education school. "Tax year." A taxpayer's annual accounting period or, if a return is made for a period of less than 12 months, the period for which the return is made. Section 1703-F. Qualification and application by organizations. (a) Establishment.--In accordance with section 14 of Article III of the Constitution of Pennsylvania, the educational improvement and opportunity scholarship tax credit programs are established to enhance the educational opportunities available to all students in this Commonwealth. (b) Information.--In order to qualify under this article, an educational improvement organization, a scholarship organization, a pre-kindergarten scholarship organization or an opportunity scholarship organization must submit information to the department that enables the department to confirm that the organization is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986. (c) Scholarship organizations and pre-kindergarten scholarship organizations.--A scholarship organization or pre-kindergarten scholarship organization must certify to the department that the organization is eligible to participate in the educational improvement tax credit program established under this article and must agree to annually report the following information based on the immediately preceding fiscal year to the department by November 1 of each year: (1) For each fiscal year through the 2024-2025 fiscal year: (i) The number of scholarships awarded during the immediately preceding school year to eligible pre-kindergarten students. (ii) The total and average amounts of the scholarships awarded during the immediately preceding school year to eligible pre-kindergarten students. (iii) The number of scholarships awarded during the immediately preceding school year to eligible students in grades kindergarten through eight. (iv) The total and average amounts of the scholarships awarded during the immediately preceding school year to eligible students in grades kindergarten through eight. (v) The number of scholarships awarded during the immediately preceding school year to eligible students in grades nine through 12. (vi) The total and average amounts of the scholarships awarded during the immediately preceding school year to eligible students in grades nine through 12. (vii) Where the scholarship organization or pre-kindergarten scholarship organization collects information on a countyby-county basis, the total number and the total amount of scholarships awarded during the immediately preceding school year to residents of each county in which the scholarship organization or pre-kindergarten scholarship organization awarded scholarships. (viii) The total number of scholarship applications processed and the amounts of any application fees charged, either per scholarship application or in the aggregate through a thirdparty processor. (ix) The organization's Federal Form 990 or other Federal form indicating the tax status of the organization for Federal tax purposes, if any, and a copy of a compilation, review or audit of the organization's financial statements conducted by a certified public accounting firm. (1.1) For the 2025-2026 fiscal year and each fiscal year thereafter: (i) For each scholarship award given to an applicant: (A) An indicator of whether the applicant was an eligible student or an eligible student with a disability. (B) An indicator of whether the applicant was in grades kindergarten through eight or grades nine through 12. (C) The dollar amount of the scholarship award. (D) For the year in which the scholarship award was used: (I) The name of the applicant's school district of residence. (II) The name of the school entity that the applicant attended. (ii) The information provided under subparagraph (i) shall not include personally identifiable information. (2) The information required under paragraphs (1) and (1.1) shall be submitted on a form provided by the department. No later than September 1 of each year, the department shall annually distribute such sample forms, together with the forms on which the reports are required to be made, to each listed scholarship organization and pre-kindergarten scholarship organization. (2.1) Beginning with the annual report due November 1, 2026, the department shall annually post the information required under paragraph (1.1) in a downloadable spreadsheet on the department's publicly accessible Internet website. (3) The department may not require any other information to be provided by scholarship organizations or pre-kindergarten scholarship organizations, except as expressly authorized in this article. (d) Educational improvement organization.-(1) An application submitted by an educational improvement organization must describe its proposed innovative educational program or programs in a form prescribed by the department. The department shall consult with the Department of Education as necessary. The department shall review and approve or disapprove the application. In order to be eligible to participate in the educational improvement tax credit program established under this article, an educational improvement organization must agree to annually report the following information to the department by November 1 of each year: (i) The name of the innovative educational program or programs and the total amount of the grant or grants made to those programs during the immediately preceding school year. (ii) A description of how each grant was utilized during the immediately preceding school year and a description of any demonstrated or expected innovative educational improvements. (iii) The names of the public schools and school districts where innovative educational programs that received grants during the immediately preceding school year were implemented. (iv) Where the educational improvement organization collects information on a county-by-county basis, the total number and the total amount of grants made during the immediately preceding school year for programs at public schools in each county in which the educational improvement organization made grants. (v) The organization's Federal Form 990 or other Federal form indicating the tax status of the organization for Federal tax purposes, if any, and a copy of a compilation, review or audit of the organization's financial statements conducted by a certified public accounting firm. (2) The information required under paragraph (1) shall be submitted on a form provided by the department. No later than September 1 of each year, the department shall annually distribute such sample forms, together with the forms on which the reports are required to be made, to each listed educational improvement organization. (2.1) The department shall annually post the information required under paragraph (1)(i), (ii), (iii) and (iv) in a downloadable spreadsheet on the department's publicly accessible Internet website. (3) The department may not require any other information to be provided by educational improvement organizations, except as expressly authorized in this article. (d.1) Opportunity scholarship organizations.-(1) An opportunity scholarship organization must enhance the educational opportunities available to students in this Commonwealth by providing opportunity scholarships to eligible students who reside within the attendance boundary of low-achieving schools to attend schools which are not low-achieving schools and which are not public schools within the eligible student's school district of residence. By February 15 of each year, an opportunity scholarship organization must certify to the department that the organization is eligible to participate in the opportunity scholarship tax credit program. (2) For each fiscal year through the 2024-2025 fiscal year, an opportunity scholarship organization must agree to report the following information on a form provided by the department by November 1 of each year: (i) The total number of applications for opportunity scholarships received during the immediately preceding school year from eligible students in grades kindergarten through eight. (ii) The number of opportunity scholarships awarded during the immediately preceding school year to eligible students in grades kindergarten through eight. (iii) The total and average amounts of the opportunity scholarships awarded during the immediately preceding school year to eligible students in grades kindergarten through eight. (iv) The total number of applications for opportunity scholarships received during the immediately preceding school year from eligible students in grades nine through 12. (v) The number of opportunity scholarships awarded during the immediately preceding school year to eligible students in grades nine through 12. (vi) The total and average amounts of the opportunity scholarships awarded during the immediately preceding school year to eligible students in grades nine through 12. (vii) Where the opportunity scholarship organization collects information on a county-by-county basis, the total number and the total amount of opportunity scholarships awarded during the immediately preceding school year to residents of each county in which the opportunity scholarship organization awarded opportunity scholarships. (viii) The number of opportunity scholarships awarded during the immediately preceding school year to applicants with a household income that does not exceed 185% of the Federal poverty level. (ix) The total and average amounts of opportunity scholarships awarded during the immediately preceding school year to applicants with a household income that does not exceed 185% of the Federal poverty level. (x) The number of opportunity scholarships awarded during the immediately preceding school year to applicants with a household income that does not exceed 185% of the Federal poverty level and who reside within a first class school district. (xi) The total and average amounts of opportunity scholarships awarded during the immediately preceding school year to applicants with a household income that does not exceed 185% of the Federal poverty level and who reside within a first class school district. JUNE 25, (xii) The number of opportunity scholarships awarded during the immediately preceding school year to applicants with a household income that does not exceed 185% of the Federal poverty level and who reside within a school district that was designated as a financial recovery school district under Article VI-A of the Public School Code of 1949 at the time of the award. (xiii) The total and average amounts of opportunity scholarships awarded during the immediately preceding school year to applicants with a household income that does not exceed 185% of the Federal poverty level and who reside within a school district that was designated as a financial recovery school district under Article VI-A of the Public School Code of 1949 at the time of the award. (xiv) The total number of opportunity scholarship applications processed and the amounts of any application fees charged either per opportunity scholarship application or in the aggregate through a third-party processor. (xv) The opportunity scholarship organization's Federal Form 990 or other Federal form indicating the tax status of the opportunity scholarship organization for Federal tax purposes, if any, and a copy of a compilation, review or audit of the opportunity scholarship organization's financial statements conducted by a certified public accounting firm. (2.1) For the 2025-2026 fiscal year and each fiscal year thereafter, an opportunity scholarship organization must agree to report the following information on a form provided by the department by November 1 of each year: (i) For each scholarship award given to an applicant: (A) An indicator of whether the applicant was an eligible student or an eligible student with a disability. (B) An indicator of whether the applicant was in grades kindergarten through eight or grades nine through 12. (C) The dollar amount of the scholarship award. (D) For the year in which the scholarship award was used: (I) The name of the applicant's school district of residence. (II) The name of the school entity that the applicant attended. (ii) The information provided under subparagraph (i) may not include personally identifiable information. (3) No later than September 1 of each year, the department shall annually distribute such sample forms, together with the forms on which the reports are required to be made, to each listed opportunity scholarship organization. (3.1) Beginning with the annual report due November 1, 2026, the department shall annually post the information required under paragraph (2.1) in a downloadable spreadsheet on the department's publicly accessible Internet website. (4) The department may not require other information to be provided by opportunity scholarship organizations, except as expressly authorized in this article. (d.2) Verification of income.--Each scholarship organization, prekindergarten scholarship organization and opportunity scholarship organization shall provide for an application and review process for scholarship applicants that includes a means of verification of household income, which may include submission of the household members' most recently available Federal or State tax returns, if required to be filed by the household members. (d.3) Scholarship organization for economically disadvantaged schools.-(1) Effective July 1, 2022, in addition to the other requirements of this article, a scholarship organization that intends to provide scholarship awards to applicants of economically disadvantaged schools must demonstrate a history of serving schools throughout this Commonwealth and the capacity to distribute scholarships Statewide to applicants of economically disadvantaged schools. (2) A scholarship organization must agree to distribute scholarships to applicants of economically disadvantaged schools not later than December 15 of the applicable school year. (3) Notwithstanding any other provision of this article to the contrary, the department may not for any school year qualify more than one scholarship organization for the provision of scholarships to applicants of economically disadvantaged schools. (4) A scholarship organization for economically disadvantaged schools shall annually report the following information to the department by January 15 of each year: (i) Scholarship awards by family household income. (ii) The school district where the scholarship recipient currently resides. (iii) The school that the student attended in the year prior to the scholarship award. (iv) The total number, amount and average scholarship awarded. (4.1) A scholarship organization for economically disadvantaged schools shall contribute at least 99% of its annual receipts for economically disadvantaged schools for scholarships. (5) The department may not require additional information to be provided by a scholarship organization for economically disadvantaged schools except as expressly authorized under this article. (e) Notification.--The department shall notify the scholarship organization, pre-kindergarten scholarship organization, educational improvement organization or opportunity scholarship organization that the organization meets the requirements of and is qualified under this article no later than 60 days after the organization has submitted the information required under this section. (f) Publication.--The department shall annually transmit a list of each scholarship organization, pre-kindergarten scholarship organization, educational improvement organization and opportunity scholarship organization qualified under this section to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin. The list shall also be posted and updated as necessary on the publicly accessible Internet website of the department. The list shall separately identify the opportunity scholarship organization that qualifies under subsection (d.3). Section 1704-F. Application by business firms. (a) Scholarship organization, pre-kindergarten scholarship organization or opportunity scholarship organization.-(1) A business firm shall apply to the department for a tax credit for contributions to a scholarship organization, pre-kindergarten scholarship organization or opportunity scholarship organization under section 1705-F. (2) A business firm that intends to apply to the department for a tax credit for contributions for students attending an economically disadvantaged school must submit an application separate from an application for tax credits to another scholarship organization, prekindergarten scholarship organization or opportunity scholarship organization. The contribution shall be made to the designated scholarship organization for the economically disadvantaged schools and shall be separately accounted for and distributed by the designated scholarship organization. (3) A business firm shall receive a tax credit under this article if the scholarship organization, pre-kindergarten scholarship organization or opportunity scholarship organization that receives the contribution appears on the list established under section 1703-F(f), subject to the limitations in sections 1705-F and 1706-F. (b) Educational improvement organization.--A business firm must apply to the department for a credit for a contribution to an educational improvement organization under section 1705-F. A business firm shall receive a tax credit under this article if the department has approved the program provided by the educational improvement organization that receives the contribution, subject to the limitations in sections 1705-F and 1706-F. (c) Availability of tax credits.--Tax credits under this article shall be made available by the department on a first-come, first-served basis within the limitation established under section 1706-F(a). (d) Contributions.--A contribution by a business firm to a scholarship organization, pre-kindergarten scholarship organization, opportunity scholarship organization or educational improvement organization shall be made no later than 60 days following the approval of an application under subsection (a) or (b). In the event a business firm does not make a minimum of 50% of the full amount of the approved contribution and has not notified the department of the amount of unused contributions within 14 days of approval, the business firm's application may not be approved in the immediately succeeding fiscal year for more than 150% of the actual amount contributed in the previous fiscal year. (e) Application in the alternative.--At the time of application for an educational improvement or opportunity scholarship tax credit, the department shall advise a business firm that the firm may elect that its application for a particular credit will, in the alternative, be deemed an application received by the department on the same date as the preferred application, but for a different tax credit authorized under this section if the business firm's preferred choice of tax credit is not available. When a business firm does not receive its preferred choice of tax credit, the department shall promptly consider the business firm's application in the alternative for a different tax credit authorized under this section. Section 1705-F. Tax credits. (a) Scholarship or educational improvement organizations.--In accordance with section 1706-F, the Department of Revenue shall grant a tax credit against any applicable tax to a business firm providing proof of a contribution to a scholarship organization or educational improvement organization in the taxable year in which the contribution is made in accordance with the following: (1) The tax credit shall not exceed 75% or, in the case of a contribution to the scholarship organization for economically disadvantaged schools, 85% of the total amount contributed during the taxable year by the business firm. (2) For fiscal year 2014-2015, the tax credit shall not exceed $750,000 annually per business firm for contributions made to scholarship organizations or educational improvement organizations except as provided under subsection (i). (3) For fiscal year 2024-2025 and each fiscal year thereafter, the $750,000 annual tax credit limitation in paragraph (2) shall not apply for contributions made by a business firm to the scholarship organization for economically disadvantaged schools. (a.1) Opportunity scholarship organizations.--In accordance with section 1706-F, the Department of Revenue shall grant a tax credit against any applicable tax to a business firm providing proof of a contribution to an opportunity scholarship organization in the taxable year in which the contribution is made in accordance with the following: (1) The tax credit shall not exceed 75% of the total amount contributed during the taxable year by the business firm. (2) For fiscal year 2014-2015, and each fiscal year thereafter, the tax credit shall not exceed $750,000 annually per business firm for contributions made to opportunity scholarship organizations, except as provided in subsection (i). (b) Additional amount.--Notwithstanding subsections (a)(1) and (a.1)(1), in accordance with section 1706-F, the Department of Revenue shall grant a tax credit of up to 90% or, in the case of a contribution to the scholarship organization for economically disadvantaged schools, 99% of the total amount contributed during the taxable year if the business firm provides a written commitment to provide the scholarship organization, educational improvement organization or opportunity scholarship organization with the same amount of contribution for two consecutive tax years. The business firm must provide the written commitment under this subsection to the department at the time of application. (c) Pre-kindergarten scholarship organizations.--In accordance with section 1706-F, the Department of Revenue shall grant a tax credit against any applicable tax to a business firm providing proof of a contribution to a pre-kindergarten scholarship organization in the taxable year in which the contribution is made in accordance with the following: (1) The tax credit shall be equal to 100% of the first $10,000 contributed during the taxable year by the business firm and shall not exceed 90% of the remaining amount contributed during the taxable year by the business firm. At the time of application, a business firm may provide a written commitment to the department to provide the pre-kindergarten scholarship organization with at least the same amount of contribution for two consecutive years. (2) The tax credit shall not exceed $200,000 annually per business firm for contributions made to pre-kindergarten scholarship organizations, except as provided in subsection (i). (d) Combination of tax credits.--In accordance with section 1706F, a business firm may receive tax credits from the Department of Revenue in any tax year for any combination of contributions under subsection (a), (a.1), (b) or (c). Except as provided in subsection (i), in no case may a business firm receive tax credits in any tax year in excess of the following: (1) $750,000 for combined contributions to scholarship organizations, other than the scholarship organization for economically disadvantaged schools, and educational improvement organizations under subsections (a) and (b). (2) $750,000 for contributions to opportunity scholarship organizations under subsections (a.1) and (b). (3) $200,000 for contributions to pre-kindergarten scholarship organizations under subsection (c). (e) Pass-through entity.-(1) If a pass-through entity does not intend to use all approved tax credits under this section, it may elect in writing to distribute for no consideration all or a portion of the credit to shareholders, members or partners in proportion to the percentage interest of the shareholder, member or partner in distributions from the pass-through entity, which credits may be used by the shareholders, members or partners in the taxable year in which the contribution is made or in the taxable year immediately following the year in which the contribution is made. The election shall designate the year in which the distributed credits are to be used and shall be made according to procedures established by the Department of Revenue. A pass-through entity that received a distribution from a pass-through entity under this paragraph may make a distribution under this paragraph. (2) A pass-through entity and a shareholder, member or partner of a pass-through entity shall not claim the credit under this section for the same contribution. (3) The shareholder, member or partner may not carry forward, carry back, obtain a refund of or sell or assign the credit. (4) An individual shareholder, partner or member may apply a credit distributed under this section to income taxable under Article III to the shareholder, partner or member, to the spouse of the shareholder, partner or member or to both, if both the shareholder, partner or member and the spouse report income on a joint personal income tax return. (f) Restriction on applicability of credits.--No credits granted under this section shall be applied against any tax withheld by an employer from an employee under Article III. (g) Time of application for credits.-(1) Except as provided in paragraph (2), the department may accept applications for tax credits available during a fiscal year no earlier than July 1 of each fiscal year. (2) The application of any business firm for tax credits available during a fiscal year as part of the second year of a two-year commitment or as a renewal of a two-year commitment which was fulfilled in the previous fiscal year may be accepted no earlier than May 15 preceding the fiscal year. In order to be eligible for the early application date under this paragraph, the contributions included in the second year of a two-year commitment or renewal of a two-year commitment must be made to the same type of organization. (3) Applications for tax credits submitted on July 1 under paragraph (1) for a two-year commitment by a business firm that applied for and was denied credits in the prior fiscal year and that had been approved for tax credits in a prior fiscal year shall be considered prior to an application from a business firm that does not meet the criteria in this paragraph. A business firm seeking preference under this paragraph shall include proof of prior approval tax credits in its July 1 application. (g.1) Approval of tax credits.--Unless otherwise requested by the business firm and agreed to by both the business firm and the department, and unless all authorized credits have already been awarded: (1) For fiscal year 2016-2017, and each fiscal year thereafter, the department shall give written notice of its approval to each business firm that submitted a completed application under subsection (g) by August 15, or 30 days following receipt of the completed application, whichever is later. (2) For fiscal year 2016-2017, and each fiscal year thereafter, the department shall give written notice of its approval to each business firm that submitted a completed application under subsection (j)(2) within 30 days following receipt of the completed application. JUNE 25, (3) Should the department fail, for a period of at least 10 days, to timely transmit any of the written notices required by this subsection, the affected business may bring an action for injunction or other appropriate relief in Commonwealth Court. (h) Waiting list.--The department shall maintain a waiting list consisting of each business firm which chooses to be included on the list and whose application has not been approved because all available tax credits have been awarded. A business firm that was not awarded a tax credit due to a lack of available tax credits shall be notified of and offered a place on the waiting list. When tax credits become available, the department shall award the tax credits to the business firms in the order in which the business firms were placed on the waiting list. (i) Temporary increase in maximum tax credits available.-(1) If all tax credits authorized under this article for contributions to the category of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations have not been awarded as of October 1 of any fiscal year, then for applications accepted by the department from October 1 through November 30 of such fiscal year, the limitations set forth in subsections (a), (a.1), (c) and (d) relating to the maximum amount of tax credits a business firm can receive during a fiscal year for contributions to each such category of organizations shall not apply. Under this paragraph, the department may accept applications under section 1704-F from October 1 through November 30 as follows: (i) A business firm, including a business firm that already applied for the maximum tax credits available pursuant to subsections (a) and (d), may apply under section 1704-F(a) for up to the total amount of tax credits remaining available for contributions to scholarship organizations for the fiscal year as set forth in section 1706-F(a)(1). (ii) A business firm, including a business firm that already applied for the maximum tax credits available pursuant to subsections (a.1) and (d), may apply under section 1704-F(a) for up to the total amount of tax credits remaining available for contributions to opportunity scholarship organizations for the fiscal year as set forth in section 1706-F(a)(3). (iii) A business firm, including a business firm that already applied for the maximum tax credits available pursuant to subsections (c) and (d), may apply under section 1704-F(a) for up to the total amount of tax credits remaining available for contributions to pre-kindergarten scholarship organizations for the fiscal year as set forth in section 1706-F(a)(2). (2) The provisions of subsection (b) shall not apply to applications for tax credits made under this subsection. Tax credits awarded under this subsection shall not exceed 75% of the total amount contributed during the taxable year by a business firm pursuant to an application filed under this subsection. (3) Prior to the award of tax credits applied for under this subsection, the department shall first award tax credits applied for by a business firm during the period October 1 through November 30 in an amount no greater than the maximum amount of tax credits for which a business firm is eligible under subsections (a), (a.1), (c) and (d). The tax credits shall be awarded on a first-come, first-served basis as set forth in section 1704-F(c). (4) After the department has awarded tax credits under paragraph (3), any tax credits remaining available within the category of scholarship organizations, opportunity scholarship organizations and pre-kindergarten scholarship organizations shall be awarded based on the total amount of tax credits within each category of organization for which applications are received under this subsection from October 1 through November 30 of the fiscal year as follows: (i) If the total amount of tax credits applied for by all business firms under this subsection does not exceed the total amount of tax credits that remained available for award within a category as of October 1, less those tax credits awarded under paragraph (3), then each business firm may be awarded the full amount of tax credits applied for. (ii) If the total amount of tax credits applied for by all business firms under this subsection exceeds the total amount of tax credits that remained available for award within a category as of October 1, less those tax credits awarded under paragraph (3), then each business firm may be awarded an amount of tax credits determined by multiplying the amount of tax credits applied for by the business firm by a ratio, the numerator of which is the total amount of tax credits that remained available for award within the category as of October 1, less those awarded as set forth in paragraph (3), and the denominator of which is the total amount of tax credits applied for by all business firms under this subsection. (4.1) If all tax credits authorized under this article for contributions to the category of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations have not been awarded as of November 30 of any fiscal year, then for applications accepted by the department from December 1 through the end of the fiscal year, the limitations set forth in subsections (a), (a.1), (c) and (d) relating to the maximum amount of tax credits a business firm can receive during a fiscal year for contributions to each such category of organizations shall not apply. Under this paragraph, the department may accept applications under section 1704-F from December 1 through the end of the fiscal year and shall award tax credits under this article for contributions to the category of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations on a firstcome, first-served basis until all tax credits available for the fiscal year have been exhausted. (5) Notwithstanding a temporary increase in maximum tax credits available under this subsection, the limitations set forth in subsections (a), (a.1), (c) and (d) relating to the maximum amount of tax credits a business firm can receive during a year for contributions to a category of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations shall be reinstated for all applications accepted by the department after June 30 of the fiscal year. (j) Reallocation of tax credits.-(1) Beginning on January 1 of any fiscal year, if any tax credits authorized under this article for contributions to any of the categories of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations remain unawarded, such unawarded tax credits may be reallocated to any of the categories of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations for which all available tax credits have been awarded. The department shall, within 10 business days, inform each business firm on the waiting list maintained by the department under subsection (h) that tax credits remain available under another category for which the business firm has not yet applied. If a business firm notified under this paragraph elects, the department shall reallocate available tax credits for award to the business firm in the business firm's preferred tax credit category, notwithstanding the limitations contained in section 1706F(a). Each business firm shall have 10 business days from the date of the department's notice to elect a reallocation of tax credits under this paragraph. The department shall award tax credits on a firstcome, first-served basis. (2) After the department has awarded tax credits under paragraph (1), the department shall accept new applications for reallocation of tax credits from any of the categories of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations for which tax credits remain available to the applicant's preferred category of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations for which all available tax credits have been awarded, notwithstanding any limitations contained in section 1706-F(a) or the limitations in subsections (a), (a.1), (c) and (d). The department shall award tax credits on a first-come, first-served basis. (2.1) In any fiscal year, the first $10,000,000 in tax credits available for reallocation under paragraphs (1) and (2) shall be set aside for contributions to pre-kindergarten scholarship organizations. If $10,000,000 in tax credits have not been awarded to prekindergarten scholarship organizations under paragraphs (1) and (2) prior to March 1 of any fiscal year, the remaining tax credits available for reallocation under paragraphs (1) and (2) shall be made available for contributions to any of the categories of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations. (3) No tax credits shall be awarded under this subsection until the department has completed the award of tax credits for applications made under subsection (i). (4) The department shall not reallocate tax credits from any of the categories of scholarship organizations, opportunity scholarship organizations or pre-kindergarten scholarship organizations to the category of educational improvement organizations. (5) Subsections (b) and (g) shall not apply to an application for reallocation of tax credits under this subsection. Section 1706-F. Limitations. (a) Amount.-(1) The total aggregate amount of all tax credits approved for contributions from business firms to scholarship organizations, educational improvement organizations and pre-kindergarten scholarship organizations shall not exceed $615,000,000 in a fiscal year. The following shall apply: (i) No less than $400,000,000 of the total aggregate amount shall be used to provide tax credits for contributions from business firms to scholarship organizations. (ii) No less than $74,500,000 of the total aggregate amount shall be used to provide tax credits for contributions from business firms to educational improvement organizations. (iii) The total aggregate amount of all tax credits approved for contributions from business firms to pre-kindergarten scholarship organizations shall not exceed $30,500,000 in a fiscal year. (iv) No less than $110,000,000 of the total aggregate amount shall be used to provide tax credits for contributions from business firms to increase the scholarship or pre-kindergarten scholarship by up to $2,000 or, in the case of a scholarship for a student attending a secondary school, by up to $4,000, for a student attending an economically disadvantaged school, to the extent that the total amount of scholarships, pre-kindergarten scholarships and opportunity scholarships will not exceed the lesser of $8,500 or the school's tuition. (2) The total aggregate amount of all tax credits approved for contributions from business firms to opportunity scholarship organizations shall not exceed $90,000,000 in a fiscal year. (b) Activities.--No tax credit shall be approved for activities that are a part of a business firm's normal course of business. (c) Tax liability.-(1) Except as provided in paragraph (2), a tax credit granted for any one taxable year may not exceed the tax liability of a business firm. (2) In the case of a credit granted to a pass-through entity which elects to distribute the credit according to section 1705-F(e), a tax credit granted for any one taxable year and distributed to a shareholder, member or partner may not exceed the tax liability of the shareholder, member or partner. (d) Use.--Subject to subsection (d.1), a tax credit not used by the applicant in the taxable year the contribution was made or in the year designated by the shareholder, member or partner to whom the credit was transferred under section 1705-F(e) may not be carried forward or carried back and is not refundable or transferable. (d.1) Pandemic relief.-(1) A tax credit awarded to a business firm during the 20202021 or 2021-2022 fiscal year that cannot be used by the business firm during the fiscal year in which awarded may be carried forward and used during the two taxable years following the taxable year in which the tax credit was awarded. (2) Tax credits that are carried forward under this subsection shall not diminish the total amount of tax credits that may otherwise be awarded to a business firm under section 1705-F or that may be awarded to all business firms in the aggregate under subsection (a). (e) Nontaxable income.--A scholarship from any category of organization received by an eligible student or eligible pre-kindergarten student shall not be considered to be taxable income for the purposes of Article III. (f) Financial assistance.--A scholarship from any category of organization received by an eligible student or eligible pre-kindergarten student shall not constitute an appropriation or financial assistance to the school attended by the recipient. Section 1707-F. Lists. The Department of Revenue shall provide a list of all scholarship organizations, pre-kindergarten scholarship organizations, educational improvement organizations and opportunity scholarship organizations receiving contributions from business firms granted a tax credit under this article to the General Assembly by June 30 of each year. Section 1708-F. Guidelines. The department in consultation with the Department of Education shall develop guidelines to determine the eligibility of an innovative educational program. Section 1709-F. Opportunity scholarships. (a) Notice.--By February 1 of each year, the department shall provide all opportunity scholarship organizations with a list of the lowachieving schools located within each school district. (b) Award.--An opportunity scholarship organization may award an opportunity scholarship to an applicant who resides within the attendance boundary of a low-achieving school to attend a participating public school or a participating nonpublic school selected by the parent of the applicant. If an applicant who received an opportunity scholarship for the prior school year resides within the attendance boundary of a school that was removed from the list of low-achieving schools provided by the department under subsection (a), the applicant may receive an opportunity scholarship. The opportunity scholarship may be for each year of enrollment in a participating public school or participating nonpublic school for up to the lesser of five years or until completion of grade 12, provided the applicant otherwise remains eligible. In awarding scholarships, an opportunity scholarship organization shall give preference to any of the following: (1) An applicant who received an opportunity scholarship for the prior school year. (2) An applicant of a household with a household income that does not exceed 185% of the Federal poverty level for the school year preceding the school year for which the application is being made. (3) An applicant of a household with a household income that does not exceed 185% of the Federal poverty level for the school year preceding the school year for which the application is being made and who resides within any of the following: (i) A first class school district. (ii) A school district designated as a financial recovery school district under Article VI-A of the Public School Code of 1949 for the year for which the award is made. (c) Home schooling.--An opportunity scholarship organization shall not award an opportunity scholarship to an applicant for enrollment in a home education program under section 1327.1 of the Public School Code of 1949. (d) Funding.--The aggregate amount of opportunity scholarships shall not exceed the aggregate amount of contributions made by business firms to the opportunity scholarship organization. (e) Amount.-(1) The maximum amount of an opportunity scholarship awarded to an applicant without a disability shall be $8,500. (2) The maximum amount of an opportunity scholarship awarded to an applicant with a disability shall be $15,000. (3) In no case shall the combined amount of the opportunity scholarship awarded to a recipient and any additional financial assistance provided to the recipient exceed the tuition rate and schoolrelated fees for the participating public school or participating nonpublic school that the recipient will attend. Section 1709.1-F. Economically disadvantaged school scholarships. (a) Reports.-(1) Each school that desires to be designated as an economically disadvantaged school for a school year must report the following information to the scholarship organization for economically disadvantaged schools by the January 1 preceding the applicable school year: (i) The total number of students who attend the school as of the date of the report and are the recipients of a scholarship under this article in an amount, exclusive of any amount received under section 1706-F(a)(1)(iv), for a pre-kindergarten, kindergarten or elementary school of at least $500 and for a secondary school of at least $1,000. JUNE 25, (ii) The total number of students attending the school as of the date of the report. (2) The information required under paragraph (1) shall be submitted on a form provided by the scholarship organization for economically disadvantaged schools. No later than the October 15 preceding each school year, the scholarship organization for economically disadvantaged schools shall annually distribute or make available electronically to each school in this Commonwealth the forms on which the reports are required to be made. (3) The scholarship organization for economically disadvantaged schools shall submit the school's information to the department by the February 1 preceding the school year. (b) Notice of designation.-(1) No later than March 1 after the scholarship organization for economically disadvantaged schools has submitted the information received under subsection (a)(1) to the department, the department shall notify the school and the scholarship organization for economically disadvantaged schools whether the school meets the requirements of, and will be designated as, an economically disadvantaged school for the applicable school year. (2) The department shall annually transmit notice of a list of each school designated as an economically disadvantaged school under this section to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin. The list shall be posted and updated as necessary on the department's publicly accessible Internet website. (c) Administration.-(1) Each school that has been designated by the department as an economically disadvantaged school for an applicable school year shall notify the scholarship organization for economically disadvantaged schools no later than November 15 of the applicable school year of the following information for each recipient of a scholarship registered to attend the school for the applicable school year: (i) The recipient's name and address. (ii) The grade of the recipient for the school year with respect to which the scholarship and tuition grant shall be received. (iii) The type and amount of scholarships under this article entitled to educational tax credits that were received by the recipient, exclusive of any amount received under section 1706F(a)(1)(iv). (iv) The names and addresses of the recipient's parents or guardians. (v) The amount of tuition charged. (2) The scholarship organization for economically disadvantaged schools shall distribute the money on a pro rata basis among all students in accordance with section 1703-F(d.3). (3) Information submitted under this section by a school designated as an economically disadvantaged school shall remain confidential and shall not be accessible for inspections and duplication in accordance with the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law. The information may be used for administration of the program. (d) References.--A scholarship award under this article paid to an economically disadvantaged school may be referred to as a scholarship supplement. Section 1710-F. Low-achieving schools. (a) List of low-achieving schools.--By February 1 of each year, the Department of Education shall publish on the Department of Education's publicly accessible Internet website a list of the low-achieving schools for the following school year. The Department of Education shall transmit notice of the list to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin. (b) Notice.--By February 1 of each year, the Department of Education shall notify every school district identified as having at least one low-achieving school of such identification and shall furnish the school district with a list of the low-achieving schools located within the school district. (c) Publication.--Within 15 days of receipt of a notification under subsection (b), a school district shall post on the district's publicly accessible Internet website notice of all of the following: (1) A description of the opportunity scholarship program. (2) Instructions for applying for an opportunity scholarship. (3) A list of schools in the school district that have been designated by the Department of Education as low-achieving schools. (4) Notice that a parent must directly contact a school district of a participating public school or a participating nonpublic school if the parent seeks to enroll the student in the opportunity scholarship program. (d) Notification to parents.-(1) Within 15 days of receipt of a notification under subsection (b), a school district shall notify the parents of each student who is currently attending or residing within the attendance boundary of a low-achieving school during the school year of the school's designation. (2) Upon registration of a kindergarten student, a school district shall notify the parents of the kindergarten student that the student will be assigned to a low-achieving school during the school year of the school's designation. (3) The notice shall be in a form provided by the Department of Education and shall provide the following information regarding the opportunity scholarship program: (i) A description of the opportunity scholarship program. (ii) Instructions for obtaining information about applying for an opportunity scholarship under the opportunity scholarship program. (iii) Notice of the parent's responsibilities with regard to applying to a school district of a participating public school or a participating nonpublic school if the parent seeks to enroll the student in the opportunity scholarship program. (e) Average daily membership.-(1) Notwithstanding any other provision of law to the contrary, a recipient who was enrolled in the recipient's resident school district or in a charter school, regional charter school or cyber charter school when the recipient first received an opportunity scholarship shall continue to be counted in the average daily membership of the school district for a period of one year after enrolling in a participating public school or a participating nonpublic school. (2) During the year referenced in paragraph (1) and each school year thereafter, a school district of a participating public school in which the recipient is enrolled shall not include the recipient in the school district's average daily membership. Section 1711-F. School participation in program. (a) Election.-(1) By February 15 of each year, a nonpublic school may elect to participate in the opportunity scholarship program for the following school year. (2) By February 15 of each year, a school district may elect to participate in the opportunity scholarship program for the following school year. (b) Notice.-(1) A school district or nonpublic school that elects to participate under subsection (a) must notify the Department of Education of the district's or nonpublic school's intent to participate. (2) For a school district, the notice under paragraph (1) must be submitted on a form developed by the Department of Education and shall specify all of the following: (i) Each school within the school district which the school district intends to make a participating public school. (ii) The amount of tuition and school-related fees attributable to each available seat. The amount under this subparagraph shall not exceed the amount calculated under section 2561 of the Public School Code of 1949. (3) For a nonpublic school, the notice under paragraph (1) must be submitted on a form developed by the Department of Education and shall specify the amount of tuition and school-related fees attributable to an available seat. (c) Tuition rates.-(1) No school district of a participating public school or participating nonpublic school may charge a recipient a higher tuition rate or school-related fee than the school district of the participating public school or participating nonpublic school would have charged to a similarly situated student who is not receiving an opportunity scholarship. (2) Notwithstanding the provisions of section 2561 of the Public School Code of 1949, a school district of a participating public school may charge a recipient a tuition rate that is lower than that charged to students who are not recipients of opportunity scholarships. (d) Participating public school criteria.--The following criteria apply to a participating public school: (1) Except as otherwise provided in this article, a school district shall enroll students in a participating public school on a lottery basis from a pool of recipients who meet the application deadline set by the Department of Education until the participating public school fills the school's available seats. The pool may not include a recipient who: (i) Has been expelled or is in the process of being expelled under section 1317.2, 1318 or 1318.1 of the Public School Code of 1949 and applicable regulations of the State Board of Education. (ii) Has been recruited by the school district or its representatives for athletic purposes. (2) The enrollment of recipients may not place the school district in violation of a valid and binding desegregation order. (3) Priority shall be given to: (i) An existing recipient. (ii) A recipient who is a sibling of a student currently enrolled in the school district. (e) Participating nonpublic school criteria.--The following criteria apply to a participating nonpublic school: (1) The participating nonpublic school may not discriminate on a basis which is illegal under Federal or State laws applicable to nonpublic schools. (2) The participating nonpublic school shall comply with section 1521 of the Public School Code of 1949. (3) The participating nonpublic school or its representatives may not recruit a student for athletic purposes. (f) Student rules, policies and procedures.-(1) Prior to enrollment of a recipient, a school district of a participating public school or a participating nonpublic school shall inform the parent of a recipient of any and all rules, policies and procedures of the participating public school or participating nonpublic school, including any academic policies, disciplinary rules and administrative procedures of the participating public school or participating nonpublic school. (2) Enrollment of a recipient in a participating public school or participating nonpublic school shall constitute acceptance of any rules, policies and procedures of the participating public school or participating nonpublic school. (g) Transportation.-(1) Transportation of recipients shall be provided under section 1361 of the Public School Code of 1949. (2) Reimbursement shall be as follows: (i) Transportation of a recipient attending a participating public school shall be subject to reimbursement under section 2541 of the Public School Code of 1949. (ii) Transportation of a recipient attending a participating nonpublic school shall be subject to reimbursement under sections 2509.3 and 2541 of the Public School Code of 1949. (h) Construction.--Nothing in this article shall be construed to: (1) Prohibit a participating nonpublic school from limiting admission to a particular grade level, a single gender or areas of concentration of the participating nonpublic school, including mathematics, science and the arts. (2) Authorize the Commonwealth or any of its agencies or officers or political subdivisions to impose any additional requirements on a participating nonpublic school which are not otherwise authorized under the laws of this Commonwealth or to require a participating nonpublic school to enroll a recipient if the participating nonpublic school does not offer appropriate programs or is not structured or equipped with the necessary facilities to meet the special needs of the recipient or does not offer a particular program requested. Section 1712-F. Tuition grants by school districts. (a) General rule.--The board of school directors of a school district may use funds received from the Commonwealth for educational purposes to establish a program of tuition grants to provide for the education of students who reside within the district and attend or will attend a public or nonpublic school on a tuition-paying basis. (b) Nonpublic school grant amount.--For students who attend or will attend a nonpublic school, the grant amount for each student shall not exceed the amount of the per pupil State subsidy for basic education of the school district of residence. (c) Average daily membership.-(1) A student who receives a tuition grant under this section shall be included in the average daily membership for purposes of determining the school district of residence's basic education funding. (2) A student who receives a grant under this section to attend a public school outside the school district awarding the tuition grant shall not be included in the average daily membership of the school district the student attends. (d) Guidelines.-(1) The board of school directors of a school district shall prepare guidelines on all the following: (i) Establishment of an application form and approval process. (ii) Standards for verification of the accuracy of application information. (iii) Confirmation of attendance by a student who receives a tuition grant. (iv) Restrictive endorsement of grant checks by parents to the school chosen by the parents. (v) Pro rata refunds of grants for students who withdraw during the school year. (vi) Repayment of refunded grants to the school district. (vii) Reasonable deadline dates for submission of grant applications. (2) The board of school directors of a school shall announce the award of grants no later than August 1 of the school year in which the grants will be utilized. (3) Upon receipt of written confirmation of enrollment from the student's school of choice, grants shall be paid to the parents of a student by a check that may only be endorsed to the selected school. (4) In the event a student is no longer enrolled prior to the completion of the school term, the school shall send written notice to the school district. (e) Nontaxable.--Grants awarded to students under this section shall not: (1) Be considered taxable income for purposes of a local taxing ordinance or for purposes of Article III. (2) Constitute financial assistance or appropriations to the school attended by the student. (f) Construction.--Nothing in this section shall be construed to empower the Commonwealth or a school district or any of their agencies or officers to do any of the following: (1) Prescribe the course content or admissions criteria for any religiously affiliated school. (2) Compel any private school to accept or enroll a student. (3) Impose any additional requirements on any private school that are not otherwise authorized. (4) Require any school to accept or retain a student if the school does not offer programs or is not structured or equipped with the necessary facilities to meet the special needs of the student or does not offer a particular program requested. Section 1713-F. Original jurisdiction. The Pennsylvania Supreme Court shall have exclusive and original jurisdiction to hear a challenge or to render a declaratory judgment concerning the constitutionality of this article. The Pennsylvania Supreme Court may take such action as the court deems appropriate, consistent with the Pennsylvania Supreme Court's retaining jurisdiction over such a matter, to find facts or to expedite a final judgment in connection with a challenge or request for declaratory relief. Section 3.1. Section 1828-G(c) of the act is amended to read: JUNE 25, first time and inserting: 3.2 (3) The General Assembly declares that the repeal under paragraph (4) is necessary to effectuate the addition of Article XVII-F of the act. (4) Article XX-B of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, is repealed. Section 5.1. The addition of Article XVII-F of the act is a continuation of Article XX-B of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949. The following apply: (1) Except as otherwise provided in Article XVII-F of the act, all activities initiated under Article XX-B of the Public School Code of 1949 shall continue and remain in full force and effect and may be completed under Article XVII-F of the act. Orders, regulations, rules and decisions which were made under Article XX-B of the Public School Code of 1949 and which are in effect on the effective date of section 4 of this act shall remain in full force and effect until revoked, vacated or modified under Article XVII-F of the act. Contracts, obligations and collective bargaining agreements entered into under Article XX-B of the Public School Code of 1949 are not affected nor impaired by the repeal of Article XX-B of the Public School Code of 1949. (3) The amendment of section 1101(b) and 1101.2 of the act and paragraph (2) shall apply retroactively to July 1, 2026. and Article XVII-F Will the Senate agree to the amendment? The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Blair, Senator Judy Ward. Senator J. WARD. Mr. President, this amendment transfers EITC from the School Code to the Tax Code, and it increases scholarships by $25 million. Thank you, Mr. President. The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Allegheny, Senator Lindsey Williams. Senator L. WILLIAMS. Mr. President, here we go again: increasing voucher money to unaccountable private schools before we meet our constitutional obligations to fully fund our public schools. I encourage my colleagues to be a "no" vote. Thank you. And the question recurring, Will the Senate agree to the amendment? The yeas and nays were required by Senator J. WARD and were as follows, viz: YEA-29 Argall Baker Bartolotta Boscola Brooks Brown Coleman Culver Dush Farry Gebhard Hutchinson Keefer Langerholc Laughlin Martin Mastriano Miller Pennycuick Phillips-Hill Picozzi Pittman Robinson Rothman Stefano Vogel Ward, Judy Ward, Kim Yaw NAY-21 Cappelletti Haywood Malone Schwank Collett Comitta Costa Flynn Fontana Hughes Kane Kearney Kim Muth Pisciottano Santarsiero Saval Street Tartaglione Williams, Anthony H. Williams, Lindsey A majority of the Senators having voted "aye," the question was determined in the affirmative. And the question recurring, Will the Senate agree to the bill on third consideration, as amended? COLEMAN AMENDMENT A3980 OFFERED Senator COLEMAN offered the following amendment No. A3980: repealing provisions relating to computer data center equipment incentive program; in general provisions, providing for transfer of tax from certain sale of computer data equipment; establishing a restricted account in the Motor License Fund; Section 3.1. Article XXIX-D of the act is repealed: [ARTICLE XXIX-D Section 2901-D. Definitions. The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Blockchain." A distributed ledger technology in which the data is: (1) shared across a network that creates a digital ledger of verified transactions or information among network participants; and (2) typically linked using cryptography to maintain the integrity of the digital ledger and execute other functions, including the transfer of ownership or value. "Computer data center." All or part of a facility that may be composed of one or more businesses, owners or tenants, that is or will be predominantly used to house working servers or similar data storage systems and that may have uninterruptible energy supply or generator backup power, or both, cooling systems, towers and other temperature control infrastructure. "Computer data center equipment." Equipment that is used to outfit, operate or benefit a computer data center and component parts, installations, refreshments, replacements and upgrades to the equipment, whether any of the equipment is affixed to or incorporated into real property, including: (1) All equipment necessary for the transformation, generation, distribution or management of electricity that is required to operate computer servers or similar data storage equipment, including generators, uninterruptible energy supplies, conduit, gaseous fuel piping, cabling, duct banks, switches, switchboards, batteries and testing equipment. (2) All equipment necessary to cool and maintain a controlled environment for the operation of the computer servers or data storage systems and other components of the computer data center, including mechanical equipment, refrigerant piping, gaseous fuel piping, adiabatic and free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting and filters. (3) All water conservation systems, including facilities or mechanisms that are designed to collect, conserve and reuse water. (4) All software, including, but not limited to, enabling software and licensing agreements, computer servers or similar data storage equipment, chassis, networking equipment, switches, racks, cabling, trays and conduits. (5) All monitoring equipment and security systems. (6) Modular data centers and preassembled components of any item described in this definition, including components used in the manufacturing of modular data centers. (7) Other tangible personal property that is essential to the operations of a computer data center. "Department." The Department of Revenue of the Commonwealth. "Facility." One or more parcels of land in this Commonwealth and any structures and personal property contained on the land. "New investment." Construction, expansion or build out of data center space at either a new or an existing computer data center on or after January 1, 2014, and the purchase and installation of computer data center equipment, except for items described under paragraph (4) of the definition of "computer data center equipment." "Owner or operator." Includes a single entity, multiple entities or affiliated entities. "Proof of work crypto-asset mining." The process of performing computations to add a valid block of data to a blockchain, excluding computations required to validate individual transactions, typically in exchange for a reward or fee. "Qualification period." Except as provided under sections 2931D(d), 2935-D(b) and 2937-D(c), as follows: (1) With respect to the owner or operator of a computer data center certified under this article, a period of time beginning on the date of certification of the computer data center and expiring at the end of the fifteenth full calendar year following the calendar year in which the owner or operator filed an application for certification. (2) With respect to a qualified tenant of the owner or operator of a computer data center certified under this article, a period of time beginning on the date that the qualified tenant enters into an agreement concerning the use or occupancy of the computer data center and expiring at the earlier of the expiration of the term of the agreement or the end of the 10th full calendar year following the calendar year in which the qualified tenant enters into the agreement. "Qualified tenant." An entity that contracts with the owner or operator of a computer data center that is certified pursuant to this article to use or occupy part of the computer data center for at least 100 kilowatts per month for two or more years. "Tax exemption." The tax exemption provided under Subarticle C. "Tax refund." The tax refund provided for under Subarticle B. "Telecommunications provider." A provider of telecommunications services as defined in 61 Pa. Code § 60.20 (relating to telecommunications service). "Tenant." An entity that contracts with the owner or operator of a computer data center to use or occupy part of the computer data center. Section 2911-D. Sales and use tax refund. (a) Application.--Beginning July 1, 2017, an owner or operator or qualified tenant of a computer data center certified under this article may apply for a tax refund of taxes paid under Article II upon the sale at retail or use of computer data center equipment for installation in a computer data center, purchased by: (1) An owner or operator of a computer data center certified under this article. (2) A qualified tenant certified under this article. (b) Applicability.--Taxes paid under Article II during the qualification period shall be eligible for a refund under this article. (c) Exclusions.--The following do not qualify for a tax refund: (1) Computer data center equipment used by the computer data center to: (i) generate electricity for resale purposes to a power utility, except for sales incidental to the primary sale to computer data centers and which qualify under subparagraph (ii); or (ii) generate, provide or sell more than 5% of its electricity outside of the computer data center. (2) (Reserved). Section 2912-D. Application for certification. To be considered for a certification, an owner or operator of a computer data center shall submit to the department an application on a form prescribed by the department that includes the following: (1) The owner's or operator's name, address and telephone number. (2) The address of the site where the facility is or will be located, including, if applicable, information sufficient to identify the specific portion or portions of the facility comprising the computer data center. (3) If the computer data center is to qualify under section 2915D(1), the following information: (i) The anticipated investment associated with the computer data center for which the certification is being sought. (ii) An affirmation, signed by an authorized executive representing the owner or operator, that the computer data center is expected to satisfy the certification requirements prescribed in section 2915-D(1). (4) If the computer data center is to qualify under section 2915D(2), an affirmation, signed by an authorized executive representing the owner or operator, that the computer data center has satisfied, or will satisfy, the certification requirements prescribed in section 2915-D(2). (5) The department shall begin accepting applications no later than 90 days after the effective date of this section. Section 2913-D. Review of application. (a) General rule.--Within 60 days after receiving a complete and correct application, the department shall review the application and either issue a written certification that the computer data center qualifies for the certification or provide written reasons for its denial. (b) Deemed approval.--Failure of the department to approve or deny an application within 60 days after the date the owner or operator of a computer data center submits the application to the department constitutes certification of the computer data center, and the department shall issue written certification to the owner or operator within 14 days. The department may not certify any computer data center after December 31, 2021. Section 2914-D. Separation of facilities. (a) Separate certification.--An owner or operator of a computer data center may separate a facility into one or more computer data centers, which may each receive a separate certification, if each computer data center individually meets the requirements prescribed in section 2915-D. (b) Limitation.--A portion of a facility or an article of computer data equipment shall not be deemed to be a part of more than one computer data center. (c) Aggregation.--An owner or operator may aggregate one or more parcels, buildings or condominiums in a facility into a single computer data center if, in the aggregate, the parcels, buildings and condominiums meet the requirements of this article. Section 2915-D. Eligibility requirements. A computer data center must meet one of the following requirements, after taking into account the combined investments made and annual compensation paid by the owner or operator of the computer data center or the qualified tenant: (1) On or before the fourth anniversary of certification, the computer data center creates a minimum investment of: (i) At least $25,000,000 of new investment if the computer data center is located in a county with a population of 250,000 or fewer individuals; or (ii) At least $50,000,000 of new investment if the computer data center is located in a county with a population of more than 250,000 individuals. (2) One or more taxpayers operating or occupying a computer data center, in the aggregate, pay annual compensation of at least $1,000,000 to employees at the certified computer data center site for each year of the certification after the fourth anniversary of certification. Section 2916-D. Notification. (a) Requirements satisfied.--On or before the fourth anniversary of the certification of a computer data center, the owner or operator of a computer data center shall notify the department in writing whether the computer data center for which the certification is requested has satisfied the requirements prescribed in section 2915-D. (b) Records.--Until a computer data center satisfies the requirements prescribed in section 2915-D, the owner, operator and qualified tenants shall maintain detailed records of all investments created by the JUNE 25, computer data center, including costs of buildings and computer data center equipment, and all tax refunds directly received by the owner, operator or qualified tenant. Section 2917-D. Revocation of certification. (a) Revocation.--If the department determines that the requirements of section 2915-D have not been satisfied, the department may revoke the certification of a computer data center. (b) Appeal.--The owner or operator of the computer data center may appeal the revocation. Appeals filed under this section shall be governed by Article II. (c) Recapture.--If certification is revoked pursuant to this section, the qualification period of any owner, operator or qualified tenant of the computer data center expires, and the department may recapture from the owner, operator or qualified tenant all or part of the tax refund provided directly to the owner or operator or qualified tenant. The department may give special consideration or allow a temporary exemption from recapture of the tax refund if there is extraordinary hardship due to factors beyond the control of the owner or operator or qualified tenant. Section 2918-D. Guidelines. The department shall publish guidelines and prescribe forms and procedures as necessary for the purposes of this article. Section 2919-D. Confidential information. Proprietary business information contained in the application form described in section 2912-D and the written notice described in section 2916-D, as well as information concerning the identity of a qualified tenant, are confidential and may not be disclosed to the public. The department may disclose the name of a computer data center that has been certified under this article. Section 2920-D. List of tenants. An owner or operator of a computer data center shall provide, to the extent permissible under Federal law, the department with a list of qualified tenants, including the commencement and expiration dates of each qualified tenant's agreement to use or occupy part of the computer data center. The list shall be provided to the department annually, upon request by the department. Section 2921-D. Sale or transfer. Except as provided in section 2917-D, a computer data center retains its certification regardless of a transfer, sale or other disposition, directly or indirectly, of the computer data center. Section 2922-D. Application. (a) General rule.--An owner, operator or qualified tenant may apply for a tax refund under this article on or before July 30, 2017, and each July 30 thereafter. (b) Notification.--No later than September 30, 2017, and each September 30 thereafter, the department shall notify each applicant of the amount of tax refund approved by the department. Section 2923-D. Limitations. (a) Total.--The total amount of State tax refunds approved by the department under this article shall not exceed $7,000,000 in any fiscal year. (b) Allocation.--If the total amount of tax refunds approved for all applicants exceeds the limitation on the amount of tax refunds in subsection (a) in a fiscal year, the tax refund to be received by each applicant shall be determined as follows: (1) Divide: (i) the tax refund approved for the applicant; by (ii) the total of all tax refunds approved for all applicants. (2) Multiply: (i) the amount under subsection (a); by (ii) the quotient under paragraph (1). (3) The algebraic form of the calculation under this subsection is: Taxpayer's tax refund = amount allocated for those tax refunds X (tax refund approved for the applicant/total of all tax refunds approved for all applicants). Section 2924-D. Applicability. Notwithstanding any other provision of this article, the department may not issue a tax refund under this subarticle for the tax imposed upon the sale at retail or use of computer data center equipment purchased after December 31, 2021. Section 2931-D. Sales and use tax exemption. (a) Sales and use tax.--Beginning January 1, 2022, the tax imposed under Article II shall not be imposed upon the sale at retail or use of computer data center equipment purchased for installation in a certified computer data center, if purchased by any of the following: (1) An owner or operator of a computer data center certified under this subarticle. (2) A qualified tenant of a computer data center certified under this subarticle. (b) Applicability.--A tax exemption approved under this subarticle shall apply during the qualification period as provided under section 2942-D. (c) Exclusions.--The following shall not qualify for a tax exemption: (1) A telecommunications provider's computer data center that does not have retail or wholesale customers being billed or paying for services and does provide a majority of services for internal use or use by the telecommunications provider's subsidiaries. (2) Computer data center equipment used by the certified computer data center for any of the following purposes: (i) Generating electricity for resale purposes to a power utility. (ii) Generating, providing or selling more than 5% of its electricity outside of the certified computer data center. (iii) Proof of work crypto-asset mining. (3) Laptop computers, handheld devices and motor vehicles for use both inside and outside the computer data center. (d) Definition.--As used in this section, the term "qualification period" shall mean the following: (1) With respect to the owner or operator of a computer data center certified under this article, a period of time beginning on the date of certification of the computer data center and expiring at the end of the 25th full calendar year following the calendar year in which the owner or operator filed an application for certification. (2) With respect to a qualified tenant of the owner or operator of a computer data center certified under this article, a period of time beginning on the date that the qualified tenant enters into an agreement concerning the use or occupancy of the computer data center and expiring at the earlier of the expiration of the term of the agreement or the end of the 10th full calendar year following the calendar year in which the qualified tenant enters into the agreement. Section 2932-D. Application for certification. (a) Application.--To be considered for a certification, an owner or operator of a computer data center shall submit to the department an application on a form prescribed by the department that includes all of the following: (1) The owner's or operator's name, address and telephone number. (2) The address of the site where the computer data center is or will be located, including, if applicable, information sufficient to identify the specific portion of a facility comprising the computer data center. (3) An affirmation, signed by an authorized executive representing the owner or operator, that the computer data center is expected to satisfy the certification requirements prescribed under section 2935-D. (b) Acceptance.--The department shall begin accepting applications no later than 60 days after the effective date of this section. (c) Compliance in reporting.--An owner or operator or qualified tenant eligible for a certification shall comply with all reporting, filing and compliance requirements under this act. (d) Compliance in tax laws.--No owner or operator or qualified tenant may receive a certification under this subarticle unless that owner or operator or qualified tenant is in full compliance with all State tax laws. Section 2933-D. Review of application. (a) General rule.--Within 60 days after receiving a complete and correct application, the department shall review the application and either issue a written certification that the computer data center qualifies for the certification or provide written reasons for its denial. (b) Deemed approval.--Failure of the department to approve or deny an application that has been acknowledged as received by the department within 60 days after the date the owner or operator of a computer data center submits the application to the department shall constitute certification of the computer data center, and the department shall issue written certification to the owner or operator within 14 days. Section 2934-D. Separation of facilities. (a) Separate certification.--An owner or operator of a computer data center may separate a facility into one or more computer data centers, which may each receive a separate certification, if each computer data center individually meets the requirements prescribed in section 2935-D. (b) Limitation.--A portion of a facility or an article of computer data equipment shall not be deemed to be a part of more than one computer data center for certification under this subarticle. (c) Aggregation.--An owner or operator may aggregate one or more parcels, buildings or condominiums in a facility into a single computer data center for certification under this subarticle if, in the aggregate, the parcels, buildings and condominiums meet the requirements prescribed in section 2935-D. Section 2935-D. Eligibility requirements. (a) General rule.--In order to be certified under this subarticle, an owner or operator of a computer data center must meet all of the following requirements: (1) On or before the fourth anniversary of certification, the combined investment, in the aggregate, of the owner or operator or qualified tenant of the computer data center must total a minimum of any of the following: (i) At least $75,000,000 of new investment if the computer data center is located in a county with a population of 250,000 or fewer individuals and creates 25 new jobs. (ii) At least $100,000,000 of new investment if the computer data center is located in a county with a population of more than 250,000 individuals and creates 45 new jobs. (2) On or before the fourth anniversary of certification, the owner or operator or qualified tenant of a computer data center, in the aggregate, must pay annual compensation of at least $1,000,000 to employees at the certified computer data center site for each year of the certification after the fourth anniversary of certification. (b) Prior applications.--A computer data center that has met the eligibility requirements as prescribed under section 2915-D and has, prior to July 1, 2021, been certified under section 2913-D shall be deemed to meet the certification requirements of this section. The certification shall not be revoked, except as provided under section 2917-D, and shall remain in effect for the remainder of the qualification period, as defined in section 2931-D(d). (c) Limitation.--The department may not certify any computer data center under this subarticle after December 31, 2032. (d) Definition.--As used in this section, the term "new investment" means construction, expansion or build out of data center space at either a new or an existing computer data center on or after January 1, 2022, and the purchase and installation of computer data center equipment, except for items described under paragraph (4) of the definition of "computer data center equipment" in section 2901-D. Section 2936-D. Notification and records. (a) Requirements satisfied.--On or before the fourth anniversary of the certification of a computer data center, the owner or operator of the computer data center shall notify the department in writing whether the computer data center for which the certification is requested has satisfied the requirements prescribed under section 2935-D. (b) Records.--The owner or operator or qualified tenant shall: (1) Maintain detailed records of all investments created by the computer data center, including costs of buildings and computer data center equipment and all tax exemptions received by the owner or operator or qualified tenant. (2) Maintain purchase journals for examination by the department. Section 2937-D. Revocation of certification. (a) Revocation.--If the department determines that the requirements of section 2935-D have not been satisfied, the department may revoke the certification of a computer data center. (b) Appeal.--The owner or operator of the computer data center may appeal the revocation. Appeals filed under this section shall be governed by Article II. (c) Recapture.--If certification is revoked under this section, the qualification period, as defined in section 2931-D(d), of any owner or operator or qualified tenant of the computer data center shall expire and the department may recapture from the owner or operator or qualified tenant all or part of the tax exemption received by the owner or operator or qualified tenant under section 2942-D. The department may give special consideration or allow a temporary exemption from recapture of the tax exemption if there is extraordinary hardship due to factors beyond the control of the owner or operator or qualified tenant. The department may require the owner or operator or qualified tenant to file appropriate amended tax returns in order to reflect any recapture of the tax exemption. (d) Limitation on assessment.--Notwithstanding the limitation on assessment and collection in section 258, the department shall assess any tax determined not to be properly exempted under this subarticle within five years from the date an owner or operator or qualified tenant of a computer data center purchases property exempt from a tax. A taxpayer may consent to an extension of the period as set forth in section 261. Section 2938-D. Guidelines. The department shall publish guidelines and prescribe forms and procedures as necessary for the purposes of this article. Section 2939-D. Confidential information. Proprietary business information contained in the application form described under section 2932-D and the written notice described under section 2936-D, as well as information concerning the identity of a qualified tenant, shall be confidential and may not be disclosed to the public. The department may disclose the name of a computer data center that has been certified under this subarticle. Section 2940-D. List of tenants. An owner or operator of a certified computer data center shall provide, to the extent permissible under Federal law, the department with a list of qualified tenants, including the commencement and expiration dates of each qualified tenant's agreement to use or occupy part of the certified computer data center. The list shall be provided to the department annually, upon request by the department. Section 2941-D. Sale or transfer. Except as provided under section 2937-D, a computer data center retains its certification regardless of a transfer, sale or other disposition, directly or indirectly, of the computer data center. Section 2942-D. Certificate of exemption. (a) General rule.--A qualified owner or operator or qualified tenant of a computer data center certified under this subarticle may submit for a sales and use tax certificate of exemption in a manner prescribed by the department on or before October 1, 2021, and renew each October 1 thereafter. The following shall apply: (1) The owner or operator or qualified tenant of a certified computer data center eligible for a sales and use tax certificate of exemption shall comply with all reporting, filing and compliance requirements under this act. (2) No owner or operator or qualified tenant may receive a sales and use tax certificate of exemption under this subarticle unless that owner or operator or qualified tenant is in full compliance with all State tax laws. (b) Notification.--No later than 60 days after the submission under subsection (a) for a sales and use tax certificate of exemption, the department shall issue a sales and use tax certificate of exemption to each applicant approved by the department. (c) Exempt purchases.--The owner or operator or qualified tenant of a certified computer data center shall prepare and deliver a properly executed sales and use tax certificate of exemption to a vendor from which the owner or operator or qualified tenant purchases exempt computer data center equipment.] Section 3.2. The act is amended by adding a section to read: Section 3003.26. Transfer of Tax From Certain Sale of Computer Data Equipment.--(a) A restricted account is established within the Motor License Fund which shall be administered as provided in this section. (b) No later than September 30, 2027, and each September 30 thereafter, the Secretary of Revenue shall: (1) Provide the Office of the Budget, the State Treasurer and the General Assembly the total amount of tax collected, during the prior fiscal year, under Article II on a sale at retail or use of computer data center equipment for installation in a computer data center, purchased by an owner or operator of a computer data center or a tenant of a computer data center. JUNE 25, (2) Using the amount reported under paragraph (1), calculate a corresponding reduction in the tax rate for the next fiscal year of the oil company franchise tax for highway maintenance and construction tax imposed by 75 Pa.C.S. Ch. 90 (relating to liquid fuels and fuels tax). (3) Report the calculation under paragraph (2) to the General Assembly. (c) No later than ninety days after receipt of the amount provided by the Department of Revenue under subsection (b)(1), the State Treasurer shall transfer the amount from the General Fund to the restricted account established in subsection (a). The money in the restricted account may not be expended unless notice is published as provided in subsection (d). (d) The Secretary of the Commonwealth shall prepare a notice of enactment of an act that reduces the tax rate of the oil company franchise tax for highway maintenance and construction tax by at least the reduction reported under subsection (b)(2) and shall transmit the notice to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin. The Secretary of the Commonwealth shall transmit the notice no later than ten days after enactment of the act. (e) As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Computer data center." All or part of a facility that may be composed of one or more businesses, owners or tenants, that is or will be predominantly used to house working servers or similar data storage systems and that may have uninterruptible energy supply or generator backup power, or both, cooling systems, towers and other temperature control infrastructure. "Computer data center equipment." Equipment that is used to outfit, operate or benefit a computer data center and component parts, installations, refreshments, replacements and upgrades to the equipment, whether any of the equipment is affixed to or incorporated into real property, including: (1) All equipment necessary for the transformation, generation, distribution or management of electricity that is required to operate computer servers or similar data storage equipment, including generators, uninterruptible energy supplies, conduit, gaseous fuel piping, cabling, duct banks, switches, switchboards, batteries and testing equipment. (2) All equipment necessary to cool and maintain a controlled environment for the operation of the computer servers or data storage systems and other components of the computer data center, including mechanical equipment, refrigerant piping, gaseous fuel piping, adiabatic and free cooling systems, cooling towers, water softeners, air handling units, indoor direct exchange units, fans, ducting and filters. (3) All water conservation systems, including facilities or mechanisms that are designed to collect, conserve and reuse water. (4) All software, including, but not limited to, enabling software and licensing agreements, computer servers or similar data storage equipment, chassis, networking equipment, switches, racks, cabling, trays and conduits. (5) All monitoring equipment and security systems. (6) Modular data centers and preassembled components of any item described in this definition, including components used in the manufacturing of modular data centers. (7) Other tangible personal property that is essential to the operations of a computer data center. (3) The repeal or addition of Article XXIX-D and section 3003.26 shall take effect in 60 days. (4) Will the Senate agree to the amendment? The PRESIDING OFFICER. The Chair recognizes the gentleman from Lehigh, Senator Coleman. Senator COLEMAN. Mr. President, everyone is talking about affordability around here. One of the top issues on affordability I hear about is the gas tax. In fact, folks are often surprised to learn that our gas tax is one of the highest in the nation. Folks are also surprised to learn that we can actually take action here in Pennsylvania right here and now to change the gas tax; in fact, we could have for a long time. We just have to take action. This is not some nebulous concept. Another issue I hear about loud and clear from my constituents is data centers. Today, we can eliminate the tax exemption on big tech and use the revenue to offset the gas tax. Because of the structure of the amendment, there will be no negative impact to funding for roads and bridges or anything the current gas tax funds. It will simply bring a much-needed reprieve to our taxpayers. In essence, the taxes data centers will pay will offset our gas tax. To say it again, the amendment will not in any way impact our roads and bridges funding. The only difference, and the only thing that will impact, is who is going to pay for it. I want the data centers to pay for it; others want Pennsylvanians to pay for it. The Computer Data Center Equipment Exemption Program, enacted in Act 25 of 2021, incentivized data centers to locate to Pennsylvania by exempting computer data center equipment from sales and use tax when it is sold, used, or consumed in a certified data center by an owner, operator, or qualified tenant. Promoted by some as a means of generating investment in Pennsylvania data centers, the program has achieved that objective, with reports of more than 50 new data centers added and proposed in the State during this time. The Shapiro Administration recently revised upward its estimate for the tax revenue loss to the Commonwealth. Now [$]115 million in this fiscal year, and [$]188 million next fiscal year, ballooning to more than [$]500 million annually by 2030. Rather than continue to give a special tax incentive to the thriving data center industry, the amendment proposes the Computer Data Center Equipment Exemption Program be repealed, with the resulting revenue directed to the Motor License Fund for the sole purpose of reducing the oil company franchise tax, which adds about 58 cents to every gallon of gas, and 74 cents to every gallon of diesel purchased in Pennsylvania. Today, if we care about affordability more than a talking point, we can put our money where our mouth is and pass a reduction of the gas tax and address data centers at the same time. Thank you, and I would ask for an affirmative vote. COLEMAN AMENDMENT A3980 TABLED The PRESIDING OFFICER. The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Mr. President, I rise this afternoon to express a number of concerns that I have with this particular amendment. First and foremost, as it relates to our price of gas, I think everyone in this room and around this country understands the reason why our gas prices are going up. It is these unsubstantiated, uncalled-for wars that our President has put us into. That is just one concern that I have. That is the reason why we are where we are. Second point I want to raise, Mr. President, is the concern I have and draw the distinction between what is being proposed in this amendment and what was proposed and adopted by this Chamber hours ago as it related to the data center exemption as it relates to the gross receipts tax and how that is required. That reduction is required to make its way to the ratepayers' bills. So, ratepayers in Pennsylvania, to the tune of about $180-some million in '26-'27, rising to $500 million in '30-'31, they will see those reductions in their bills. In this particular instance, there is no guarantee whatsoever that the cost savings, as it relates to the gas tax reduction, will see its way to the pocketbooks of our consumers in Pennsylvania. What is going to happen is--this always happens when we talk about these gas tax reductions or freezes--what happens is that the oil companies pocket the difference. They do not pass it on to consumers. They keep it in their pockets and the rich oil companies get richer every single day that we have something like this in place. Those are just a couple of the reasons why we think this is an inappropriate amendment to the particular bill we have before us, and I move now to table this amendment. Thank you, and I ask my colleagues to join me in tabling it. The PRESIDING OFFICER. Senator Costa moves that the amendment be laid upon the table. The motion is not debatable. Will the Senate agree to the motion? The yeas and nays were required by Senator COSTA and were as follows, viz: YEA-27 Baker Bartolotta Boscola Cappelletti Collett Comitta Costa Flynn Fontana Haywood Hughes Kane Kearney Kim Malone Miller Muth Pennycuick Pisciottano Santarsiero Saval Schwank Street Tartaglione Ward, Judy Williams, Anthony H. Williams, Lindsey NAY-23 Argall Brooks Brown Coleman Culver Dush Farry Gebhard Hutchinson Keefer Langerholc Laughlin Martin Mastriano Phillips-Hill Picozzi Pittman Robinson Rothman Stefano Vogel Ward, Kim Yaw A majority of the Senators having voted "aye," the question was determined in the affirmative. The PRESIDING OFFICER. Amendment A3980 will be laid upon the table. The PRESIDING OFFICER. The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Mr. President, I request temporary Capitol leaves for Senator Anthony Williams, Senator Boscola, and Senator Flynn. The PRESIDING OFFICER. Senator Costa requests temporary Capitol leaves for Senator Anthony Williams, Senator Boscola, and Senator Flynn. Without objection, the leaves will be granted. Senator COSTA. Mr. President, may we be at ease for one moment? The PRESIDING OFFICER. The Senate will be at ease. [The Senate was at ease.] And the question recurring, Will the Senate agree to the bill on third consideration, as amended? RECONSIDERATION OF AMENDMENT No. A3975 The PRESIDING OFFICER. The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Mr. President, I move to reconsider the vote by which amendment No. A3975 to House Bill No. 1667 was adopted. A voice vote having been taken, the question was determined in the affirmative. YEA-30 Mastriano Miller Pennycuick Phillips-Hill Picozzi Pittman Robinson Rothman Stefano Vogel Ward, Judy Ward, Kim Williams, Anthony H. Yaw Fontana Haywood Hughes Kane Kearney Kim Malone Muth Pisciottano Santarsiero The PRESIDING OFFICER. The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Mr. President, I request a temporary Capitol leave for Senator Argall, and a legislative leave for Senator Mastriano. The PRESIDING OFFICER. Senator Pittman requests a temporary Capitol leave for Senator Argall, and a legislative leave for Senator Mastriano. Without objection, the leaves will be granted. The PRESIDING OFFICER. The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Mr. President, as a special order of business, I call up Senate Supplemental Calendar No. 2 and move that the Senate proceed to consider House Bill No. 1667, notwithstanding the provisions of Senate Rule 12(p)(2)(ii). Will the Senate agree to the motion? The yeas and nays were taken agreeably to the provisions of the Constitution and were as follows, viz: NAY-20 Cappelletti Collett Comitta Costa Flynn MOTION NOTWITHSTANDING SENATE RULE 12 The yeas and nays were required by Senator J. WARD and were as follows, viz: Dush Farry Gebhard Hutchinson Keefer Langerholc Laughlin Martin The PRESIDING OFFICER. The Senate will be at ease for approximately 30 minutes until we get the bill reprinted and get it back to us. The Senate is at ease. [The Senate was at ease.] SUPPLEMENTAL CALENDAR No. 2 And the question recurring, Will the Senate agree to the amendment? Argall Baker Bartolotta Boscola Brooks Brown Coleman Culver JUNE 25, Saval Schwank Street Tartaglione Williams, Lindsey A majority of the Senators having voted "aye," the question was determined in the affirmative. And the question recurring, Will the Senate agree to the bill on third consideration, as amended? It was agreed to. Ordered, To be printed on the Calendar for final passage. The PRESIDING OFFICER. The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Mr. President, just for the information of the Members, I think we will be about 30 minutes at ease until the reprint occurs on the bill as amended. The PRESIDING OFFICER. The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Mr. President, I appreciate that information. In case the Members did not hear, 30-minute recess until we get the bill printed and back down to us. YEA-46 Argall Baker Bartolotta Boscola Brooks Brown Coleman Collett Comitta Costa Culver Dush Farry Flynn Fontana Gebhard Haywood Hughes Hutchinson Kane Kearney Keefer Kim Langerholc Laughlin Malone Martin Mastriano Miller Pennycuick Phillips-Hill Picozzi Pisciottano Pittman Robinson Rothman Santarsiero Schwank Stefano Street Tartaglione Vogel Ward, Judy Ward, Kim Williams, Anthony H. Yaw NAY-4 Cappelletti Muth Saval Williams, Lindsey A constitutional majority of all the Senators having voted "aye," the question was determined in the affirmative. HB 1667 (Pr. No. 3709) -- The Senate proceeded to consideration of the bill, entitled: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for exclusions from tax; in gross receipts tax, further providing for imposition of tax and for establishment of revenue-neutral reconciliation; providing for educational tax credits; in manufacturing and investment tax credit, further providing for business firms and for tax credit certificates; repealing provisions relating to Computer Data Center Equipment Incentive Program; in general provisions, providing for data centers; prohibiting the imposition of a tax on gross receipts received from the sale of electric energy; imposing a penalty; and making repeals. The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Allegheny, Senator Lindsey Williams. Senator L. WILLIAMS. Mr. President, I, like every other Member on this floor, want to save people money. I hear the pain of my constituents every day, but I want something real. I want to actually save them money. I want real help, not a political stunt like we are witnessing with House Bill No. 1667, waiving the Rules so no one has a chance to comprehend the full impact of what we are doing here today. But we do know one thing, we know that we are blowing an estimated $1.7 billion budget hole into our budget. That means no money for roads and bridges, no money for transit, no money for healthcare, no money for childcare, no money for education. The things we are consistently told we have no money to make better, we are actually going to make worse. This Chamber has considered no bills meaningfully regulating data centers, the true drivers of massive increases to our electric bills. There are a number of bills introduced in this Chamber, including my own Data Center Fair Share Act, that we could be moving, but we are not doing that. We are asking taxpayers to bear the brunt of this supposed savings by gutting the General Fund of almost $2 billion. This bill does not take money from mega corporations or billionaires who run them. It does not take those building massive data centers, it does not make them pay their fair share of the increases in your bill that has skyrocketed. This bill is designed to make it look like it is helping when it is actually hurting you. It is a shell game. You might, and I emphasize might, save a few dollars on your bill, if it is not tossed out in court, and the utility companies actually pass those savings on to you. But it will cost you many, many, many times more in other ways and other things that you lose to make up the billions we lost in the General Fund. That money has to come from somewhere. We could actually make a difference for people. We could pass a digital ads tax to make mega corporations like Meta, Google, and Microsoft pay their fair share. Those giant corporations are currently getting a free ride and could add hundreds of millions of dollars to the General Fund for us to spend on people in need. But, instead, we take this performative vote today. This will not cut taxes for people. Bills like this, bills that blow giant holes in our General Fund, should not happen outside of a larger budget negotiation. What taxes will go up to cover it? What services will we cut? No one is answering those questions, and no one will. All we know is that everyday people are hurting, everyday people are paying the price to line the pockets of billionaires, and this bill does not change it. It makes it worse. Thank you, Mr. President. The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Montgomery, Senator Muth. Senator MUTH. Mr. President, I rise today in opposition to House Bill No. 1667. I think it is important to inform the public for the record, in case they are just tuning in after their workday, that this bill was amended earlier today off the floor with no real public access, rules suspended multiple times so that this could be shoved along, and amendments galore. And, so, we all know June 30 is a deadline, right? We have known that due date--all of us have--and it seems that we are once again not going to meet that deadline. Instead, we have another piece of legislation that is chunked together with things that will be labeled as helpful, labeled as a savings to consumers. Eliminating the gross receipts tax on electric bills--sure--will save ratepayers some dollars a month depending on their usage and then also depending on their generation supply. And, so, if you pay that tax monthly and it is $10 times 12 is $120. Sure, that is certainly money that all of us would like to have back in our bank accounts, but I think it is important to note that this does not preclude future rate increases like the ones all of our ratepayers in every county of this Commonwealth have seen over the past 5 to 6 years annually because of the buildout of hyperscale data centers across the PJM network. So, nothing is going to stop those rate increases. Further, I think it is also important to mention that our electricity bills are too high. We have now this repeal of the data center sales and use tax exemption, which is very important. It is a positive part of this because it is, you know, eliminating these incentives for hyperscale data centers to come to the Commonwealth and buy out, you know, thousands of acres of land and maybe some of these companies will see that as a, you know, no longer a reason to build here in Pennsylvania, but I am pretty sure the big dogs will not have any problem paying that 6 percent sales tax. But these savings that are going to be alleged are crumbs. They are crumbs based on a House fiscal note on the same language that was passed in a separate bill. This proposal creates a $1.7 billion gap in the State budget for the '26-'27 fiscal year. So, I do not know if we are going to have, like, a garage sale or something to make up for this deficit, but that is a big chunk of change. I also think that it is important that, you know, amendments were voted to be tabled today; that would have increased our State revenue through the digital ad tax, through making corporations that are operating in multiple States pay their fair share in corporate net income tax. Unfortunately, those two amendments are not included in this final legislation. And, I just want to be clear, because there will be a lot of messaging on--just like the House of Representatives is, you know, celebrating some alleged successes over there--that the devil is always in the details. So, while the sales and use tax exemption for data center equipment may be repealed if this should become law--this bill--nothing in this bill protects people from having their wells dried up, from having a hyperscale data center being built from their homes within 200 feet, 50 feet, and also certainly does not make large load users pay their fair share for infrastructure build out to connect to the grid or, you know, for their power. We do not even know what they pay because they get to pay a different rate, and we never get to know about it. So, if we want to take steps to protect ratepayers and we want to strengthen our Commonwealth's fiscal perspective, this legislation is not the answer. And I think that, as we get closer to that June 30 deadline, maybe we better pick up the hustle and put some real substantive things forward that actually set up all of our constituents for success. So, I urge a "no" vote on this proposal. Thank you, Mr. President. The PRESIDING OFFICER. Senator Argall has returned, and his temporary Capitol leave is cancelled. And the question recurring, The PRESIDING OFFICER. The Chair recognizes the gentleman from Lancaster, Senator Martin. Senator MARTIN. Mr. President, I rise in support of House Bill No.1667. You know, I have sat here and listened for a long time to people talking about affordability and people talking about all the money that we have to spend here in the Commonwealth of Pennsylvania, and nothing gets me more excited when I hear individuals start talking about caring what our fiscal position is and the amount of revenues we have versus what we spend. I enjoy that. And, quite, frankly, Mr. President, I did not hear a lot of talk when this same bill came over here related to removing the gross receipts tax passed by the House of Representatives. And if people understand the impact of energy on every single thing that impacts our lives right now, every single ratepayer across this Commonwealth that pays electricity, who we all are hearing, whether we are Republicans or Democrats, we are hearing about an impact on their pocketbooks, on their cost of doing business, on their cost of food production, on their cost of running a hospital, on their cost of running an educational facility, and the list goes on and on because energy touches every single aspect of our lives. And if you really care about inflationary costs and wanting to make our Commonwealth more attractable and more affordable for our citizens, then we should talk about reducing energy wherever we can. And, boy, I love hearing the talk about data centers, but no one wants to talk about deals that were made that caused rates to go down for sister States in the PJM grid, but rose the costs for Pennsylvanians. No one wants to talk about the impact of the shutdowns of baseload capacity on our grid and the dangers that it provides to our citizens in case we have grid failure, and, more importantly, in terms of cost. Energy is critical to the economic growth and the sustainability and viability of our families here in this Commonwealth, and I do not scoff at 5.9 percent reduction across the board and what that means to every aspect of our lives and how it is interconnected. You know, we spent a lot of time wrestling money away, billions of dollars that have been previously allocated, not spent, being used for new projects that the General Assembly never approves. And we get to spend a lot of times trying to wrestle those things, special accounts that generate excess revenue and never spend what are in it and have tens and sometimes hundreds of millions of dollars sitting in them with no justification. But, wow, when I saw that the House of Representatives unanimously sent us a bill that could actually make a difference in the affordability of people's lives, and every single entity that is involved in production in Pennsylvania that involved in farming, involved in healthcare, that is involved in all things that we can think of, that if we have the ability to lower that for Pennsylvanians, is that not good for everybody? Mr. President, what really frustrates me is so often up in this building we get into the business of: we believe JUNE 25, in affordability, but we believe in affordability for a special segment of the population that we deem to be necessary. And how often do we get the ability to come together as Republicans and Democrats, a Senate and a House, and, hopefully, a Governor, and say we are actually going to pass something meaningful that everybody will benefit from. That opportunity is now. And when you add into that the ability that we can still make inroads on empowering families to do what is in the best interests of their kids, this is a great bill. I hope it is not a political ploy. I hope they take it seriously because, quite frankly, if it goes over there after passing 203 to nothing and just sits, I ask all of you, especially during budget negotiations, who is really playing politics? I ask for an affirmative vote. The PRESIDING OFFICER. The Chair recognizes the gentleman from Allegheny, Senator Costa. Senator COSTA. Mr. President, the term "affordability" was mentioned a number of times in the previous speaker's remarks, and I think, as many folks in this room know, our Senate Democratic Caucus, for a good period of time, has been talking about affordability measures that we need to encompass and be part of what we do here in Harrisburg, and, certainly, I intend to support this measure, and I think a number of Members on this side of the aisle intend to do that as well, particularly as it relates to the impact it is going to have on electric bills for our consumers. We think this is a positive step in the right direction. But, also, as it relates to the elimination of the sales and use tax as it relates to the exemption for our data centers. These are things that I think are important as part of a conversation about affordability. Today is only one piece of the conversation that is necessary. Earlier this week, Senator Nick Miller led us on a policy hearing on legislation and other ways in which we are able to continue to do things along those lines of affordability. And this measure came up, as I mentioned, in the Committee on Appropriations earlier today, where we unanimously supported this measure. But as it relates to other measures as well, our colleague, Senator John Kane, has a measure that we should be talking about. Senate Bill this process if it is given a chance on this floor, that will protect ratepayers. That will protect ratepayers who sign up for energytype programs that are a short period of time. At the end of that period of time, when they go from 75 cents per kilowatt, as was testified at the hearing, to 61 cents for a single mom who brought her bill to one of the community meetings because they did not pay attention, unfortunately, given the things that happen in life-kids, work, all those type of things--she missed a period of time to be able to decide what she wanted to do with respect to the extension of her rate. So, in lieu of going into default, she ended up going into this plan that was thrust upon her, quite frankly, by organizations, energy suppliers that take advantage of people like the person I referenced. And, by the way, had something like Senator Kane's bill been in place this past year--as was testified by folks who are at this hearing--a number of folks who testified talked about savings that we would have accrued to people across Pennsylvania in excess of $300 million in savings. Let me put it a different way, $300 million-plus that ratepayers paid unnecessarily because we did not have a provision to protect them as Senator Kane has proposed. That is just one example of a thing that can be done now that will directly impact ratepayers. Beyond that, the Governor proposed a grid proposal, which has passed the House and has come over here. There are elements of the grid proposal that passed that need to be part of the conversation. There are elements with respect to the Lightning Plan that the Governor proposed that we need to be talking about. Those are the type of things, not en masse, but they need to become part of a comprehensive approach of how we are going to create electric generation, which is going to address the issue with regard to availability of energy to be able to avoid some of the things that were mentioned earlier. We need to take steps to be able to make sure that we are protecting ratepayers, and the people, as it relates to data centers as we move forward, to ensure that the data centers are bringing their own power to the conversation, so we are able to protect ratepayers. These are some of the things that we need to be talking about in addition to what we are talking about today. But when we talk about affordability, I am proud of our Senate Democratic Caucus that has been talking about this for months and putting things in place, not only in the energy space, but, yesterday, we had a press conference yesterday on housing affordability. We have been talking about the minimum wage ad nauseam for years, trying to get that increased. It is the collective nature of all these things that we should be doing here in this Senate Chamber and bringing over to the House to allow them the opportunity to examine them and move them forward as well. Mr. President, I ask for an affirmative vote on this measure. Thank you, sir. The PRESIDING OFFICER. The Chair recognizes the gentleman from Jefferson, Senator Dush. Senator DUSH. Mr. President, if our Governor was actually interested in affordability, he would not have entered into an agreement that benefited the people of Virginia and Maryland at the expense of American ratepayers on our electric bills. The Senate pro temp produced an excellent video here recently that explains it in detail, and it is very easy to understand. This bill, we are going to eliminate the gross receipts tax, and it not only benefits the ratepayers, the individual ratepayers in the Commonwealth of Pennsylvania, it helps us start to balance the budget. The Department of Corrections has State correctional facilities around the State. Each one of those has the equivalent of a small town in its population. There is also additional electric requirements there because of all the security systems and everything else that goes along with having those facilities. Pennsylvania will not be paying that gross receipts tax because, basically, we are taxing ourselves. Others that benefit, look at our school districts. The local school districts, the local government buildings, some of our townships and boroughs, they have massive facilities that they have got to heat, that they have got to light, and those reductions are going to benefit the local tax base for the citizens of those cities, those townships, and those boroughs. Mr. President, we have an opportunity here to provide some break for the people of this Commonwealth. But until the Governor stops making unilateral decisions that benefit people in other States, people who he might be campaigning in 2 years from now, we are not going to see any benefit, especially when he is blocking access to the natural gas resources and others that are sitting underneath our State parks and our State forests that we do not even have to touch. They can be drilled under; they are doing 5.25-mile laterals now. You can park a rig outside the park and never disturb an inch of the ground or the water on any of these State parks and these State forests. I should know, I have got a ton of them. I have got more land than entire States in my district that are owned by the Commonwealth of Pennsylvania in one way or another. My folks up there are conservationists; we want to see that stuff remain beautiful and a place for people to come and visit and enjoy the outdoors. But until the Governor decides to break free from his predecessor's moratorium, we are not going to see those decreases in electric rates. This is one opportunity for at least us to put the brakes on it and hopefully help him come to his senses and that he will release the energy that we have to benefit the people of Pennsylvania. I encourage a "yes" vote on House Bill No. 1677 [1667]. Thank you. And the question recurring, The yeas and nays were taken agreeably to the provisions of the Constitution and were as follows, viz: YEA-44 Argall Baker Bartolotta Boscola Brooks Brown Coleman Collett Comitta Costa Culver Dush Farry Flynn Fontana Gebhard Hughes Hutchinson Kane Keefer Kim Langerholc Laughlin Malone Martin Mastriano Miller Pennycuick Phillips-Hill Picozzi Pisciottano Pittman Robinson Rothman Santarsiero Schwank Stefano Street Tartaglione Vogel Ward, Judy Ward, Kim Williams, Anthony H. Yaw NAY-6 Cappelletti Haywood Kearney Muth Saval Williams, Lindsey A constitutional majority of all the Senators having voted "aye," the question was determined in the affirmative. Ordered, That the Secretary of the Senate return said bill to the House of Representatives with information that the Senate has passed the same with amendments in which concurrence of the House is requested. The following announcements were read by the Secretary of the Senate: MONDAY, JUNE 29, 2026 Off the Floor APPROPRIATIONS (to consider Senate Bills 2400) Rules Committee Conference Room Off the Floor CONSUMER PROTECTION AND PROFESSIONAL LICENSURE (to consider House Bill No. 2426) Rules Committee Conference Room The PRESIDING OFFICER. The Chair recognizes the gentleman from Jefferson, Senator Dush. Senator DUSH. Mr. President, Benjamin Rush, a man whom John Adams declared was 1 of the 3 most influential men in the founding of America in our revolution and what happened after-Adams put him alongside Washington and Ben Franklin as the three most important people in the revolution. A signer of the Declaration [of Independence], one of the writers of Pennsylvania's Constitution, a physician, and known for over a century as the father of public schools--no, Mr. President, it was not John Dewey. He was the treasurer of the U.S. Mint, surgeon general of the Continental Army, and helped found the first anti-slavery society in America. Why is it that hardly a single public school student in Pennsylvania can tell you who he was? In 1798, regarding the Constitution, he said, "...the only foundation for a [useful education in a] republic is to be laid in Religion. Without this there can be no virtue, and without virtue there can be no liberty, and liberty is the object and life of all republican governments." Maybe that is why we do not hear of him after John Dewey. In The Founders' Bible, David Barton, a historian, collected some interesting writings, and I am going to read part of what he has that leads into another part of Benjamin Rush and his role in education in Pennsylvania. As God's people, we are preparing to enter the promised land, he told them what they would need to do in the future if they were to hold onto the land he had prepared for them. [Reading:] You shall therefore impress these words of mine onto [on] your heart, onto [and on] your soul; and you shall bind them as a sign to [on] your hand, and they shall be as frontals on your forehead. You shall teach them to your sons, talking of them when you sit in your house and when you walk along the road and when you lie down and when you rise up. You shall write them on the doorposts of your house and on your gates so that your days and the days of your sons may be multiplied in [on] the land… That is from Deuteronomy 11:18-21. The recipe for Israel's success, prosperity, and permanence, was, one, for adults to fix God's word firmly in their own hearts, and then, two, for them to thoroughly inculcate that word into their children, reinforcing it over and over through a variety of manners. This biblical directive for longevity in the land was not lost on American leaders. And, from the first, there was a strong emphasis on ensuring that America's youth had an intimate familiarity with God's word. This was evident in America's educational laws, institutions, and textbooks. Reflective on this conviction, Founder Benjamin Rush wrote an extensive policy paper on why the Bible should always remain the textbook of American schools. Again, Dr. Rush was known as the father of public schools under the Constitution. He is responsible for starting five universities and penning several textbooks. Notice some of the excerpts from his 1791 defense of the use of the Bible as a schoolbook. [Reading:] I promise[d] to give you my reasons for preferring the bible as a school book, to all other compositions. …I shall assume the five following propositions. I. That Christianity is the only true and perfect religion, and that in proportion as mankind adopt its principles, and obey its precepts, they will be wise and happy. JUNE 25, [II.] That a better knowledge of this religion is to be acquired by reading the bible, than [in] any other way. [III.] That the bible contains more knowledge necessary to man in his present state, than any other book in the world. [IV.] That knowledge is most durable, and religious instruction most useful, when imparted in early life. [V.] That the bible, when not read in schools, is seldom read in any subsequent period of life. My arguments in favor of the use of the bible as a school book are founded in the constitution of the human mind. [1.] The memory is the first faculty which opens in the minds of children. Of how much consequence, then, must it be, to impress it with the great truths of Christianity, before it is preoccupied with less interesting subjects! [2.] There is a peculiar aptitude in the minds of children for religious knowledge. I have constantly found them in the first six or seven years of their lives, more inquisitive upon the religious subjects, than upon any others: and an ingenious instructor of youth has informed me, that he has found young children more capable of receiving just ideas upon the most difficult tenets of religion, than upon the most simple branches of human knowledge. It would be strange if it were otherwise; for God creates all his means to suit all his ends. [4.] We are subject, by a general law in our natures, to what is called habit. Now if the study of the scriptures be necessary to our happiness at any time in our life [lives], the sooner we begin to read them, the more we shall be attached to them. [VIII.] There is a wonderful property in the memory, which enables it [in old age,] to recover the knowledge it had acquired in early life, after it has [had] been apparently forgotten for forty or fifty years. [Of] how much consequence, then, must it be, to fill the mind with that species of knowledge, in childhood and youth, which, when recalled in decline of life, will support the soul under the infirmities of age, and smooth the avenues of approaching death? The bible is the only book which is capable of affording this support to old age; and it is for this reason that we find it resorted to with so much diligence and pleasure by such old people as have read it [in] early in life. In contemplating the political institutions of the United States, I lament, that we waste so much time and money in punishing crimes, and take so little pains to prevent them. We profess to be republicans, and yet we neglect the only means of establishing and perpetuating our republican forms of government, that is, the universal education of our youth in the principles of Christianity, by means of the bible; for this divine book, above all others, favours that equality of [among] mankind, that respect for just laws, and all other [those] sober and frugal virtues, which constitute the soul of republicanism. Mr. President, I have been all over the northern hemisphere in places most people would not want to go, and I have been in places where people think that it is better than the United States. And, yet, if we just go to social media now, we can see those people from those places that a lot of folks say are better than what we have here in America, saying how blessed we are here in the United States of America. Mr. President, I think, as we begin to reflect on our 250th anniversary, it is incumbent on us to reflect on what helped us become what we have become and reflect on the words of the people who helped create what we have. Thank you, Mr. President. The PRESIDING OFFICER. The Chair recognizes the gentlewoman from Philadelphia, Senator Tartaglione. Senator TARTAGLIONE. Mr. President, I rise today because it has been 7,292 days since Pennsylvania last raised the minimum wage. I rise because Pennsylvania workers cannot afford to let another budget season come and go without finally raising the minimum wage. At this time of year, we spend a lot of time in this Chamber talking about affordability, about helping working families, and about building a State budget that reflects the needs of Pennsylvanians. But if we are serious about affordability, then we cannot keep ignoring one of the clearest economic issues facing workers across this Commonwealth. The people earning minimum wage are not asking for luxury. They are asking for dignity. They are asking for the ability to keep up with rent, buy groceries, fill a prescription, pay an electric bill, and make it to work without falling further behind every month. The House has already passed a minimum-wage bill and Senate Democrats have made it clear that this issue deserves action. But the bigger point is simple. Workers have waited long enough. If we are going to talk about lowering costs and supporting families during this budget season, then let us talk about wages. Let us talk about what it means to ask someone to survive on $7.25 an hour in 2026. Let us talk about the fact that Pennsylvania continues to lag behind every State around us, while working people pay the price. This budget season should not end the way so many others have ended: with plenty of speeches about helping workers but no actions to actually help them. Pennsylvania workers deserve better than that; they deserve a raise. Thank you, Mr. President. The PRESIDING OFFICER. The Chair recognizes the gentleman from Philadelphia, Senator Picozzi. Senator PICOZZI. Mr. President, I rise today to highlight Senate Bill No. 210, also known as the Bernard Gribbin's Law, which almost unanimously passed this Chamber with bipartisan support and now awaits consideration in the House Committee on Judiciary. This legislation honors the memory of Bernard Gribbin, a dedicated SEPTA bus operator, Army veteran, and public servant who was tragically killed while serving the people of Philadelphia. Transit operators play a critical role in keeping our communities moving, and they deserve to be protected while doing their jobs. Senate Bill No. 210 strengthens penalties for those who interfere with the operation of public transit vehicles and help deter violence against transit workers. With assaults on transit workers rising, these protections shield operators from violence, ultimately keeping routes active and safe for thousands of daily riders. I urge the House Committee on Judiciary to take up this important legislation and move it to the Governor's desk. Thank you, Mr. President. The PRESIDING OFFICER. The Chair recognizes the gentleman from Cambria, Senator Langerholc. Senator LANGERHOLC. Mr. President, I move that the Senate do now recess until the call of the President pro tempore. The motion was agreed to by voice vote. The PRESIDING OFFICER. Without objection, the Senate stands in recess to the call of the President pro tempore. The PRESIDENT (Lieutenant Governor Austin A. Davis) in the Chair.

The Chair recognizes the gentleman from Indiana, Senator Pittman. Senator PITTMAN. Mr. President, I move that the Senate do now recess until Monday, June 29, 2026, at 3:10 p.m., Eastern Daylight Saving Time, unless sooner recalled by the President pro tempore. The motion was agreed to by voice vote. The Senate recessed at 10:59 p.m., Eastern Daylight Saving Time.