HB 1788 — An Act amending Titles 74 (Transportation) and 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in sustainable mobility options, further providing for operating program; in metropolitan transportation authorities, providing for supplemental performance reporting; providing for Public Transportation Trust Fund transfer and annual increase; establishing the Road and Bridge Project Fund and the Road and Bridge Project Sinking Fund; in public-private transportation partnerships, providing for applicable authority projects; in lighting equipment, further providing for use and display of illuminating signs; in taxes for highway maintenance and construction, further providing for supplemental funding for three and four digit highway construction; and establishing the Three and Four Digit State Route Account.

PRINTER'S NO.     2194

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 1788
                                                 Session of
                                                   2025

     INTRODUCED BY DOUGHERTY, AUGUST 6, 2025

     REFERRED TO COMMITTEE ON TRANSPORTATION, AUGUST 6, 2025


                                      AN ACT
 1   Amending Titles 74 (Transportation) and 75 (Vehicles) of the
 2      Pennsylvania Consolidated Statutes, in sustainable mobility
 3      options, further providing for operating program; in
 4      metropolitan transportation authorities, providing for
 5      supplemental performance reporting; providing for Public
 6      Transportation Trust Fund transfer and annual increase;
 7      establishing the Road and Bridge Project Fund and the Road
 8      and Bridge Project Sinking Fund; in public-private
 9      transportation partnerships, providing for applicable
10      authority projects; in lighting equipment, further providing
11      for use and display of illuminating signs; in taxes for
12      highway maintenance and construction, further providing for
13      supplemental funding for three and four digit highway
14      construction; and establishing the Three and Four Digit State
15      Route Account.
16      The General Assembly of the Commonwealth of Pennsylvania
17   hereby enacts as follows:
18      Section 1.     Section 1513 of Title 74 of the Pennsylvania
19   Consolidated Statutes is amended by adding subsections to read:
20   § 1513.    Operating program.
21      * * *
22      (f.1)    Additional minimum system performance criteria.--
23             (1)   The department shall establish additional minimum
24      system performance criteria for an applicable authority to
25      improve fare evasion, public-private transportation
 1      partnerships and bus routes. The department shall promulgate
 2      regulations, including temporary regulations, to establish
 3      the minimum system performance criteria based upon comparison
 4      of the award recipient to the applicable authority's past
 5      performance and to the applicable authority's peers that an
 6      award recipient must satisfy.
 7             (2)   Failure of the applicable authority to satisfy the
 8      minimum system performance criteria established under
 9      paragraph (1) shall result in application of the procedure in
10      subsection (g).
11      * * *
12      (i)    Definition.--As used in this section, the term
13   "applicable authority" means the transportation authority of the
14   metropolitan area as defined in section 1701 (relating to
15   definitions) and the local transportation organization organized
16   and existing under the act of April 6, 1956 (1955 P.L.1414,
17   No.465), known as the Second Class County Port Authority Act.
18      Section 2.     Title 74 is amended by adding a section to read:
19   § 1787.    Supplemental performance reporting.
20      (a)    Review.--In addition to any audits or financial
21   statements required by the Federal or State Government or a
22   county in this Commonwealth, an applicable authority shall be
23   subject to the following performance reporting requirements:
24             (1)   At least once annually, the Legislative Budget and
25      Finance Committee shall review the procedures and audits of
26      the applicable authority and produce a report on its
27      findings.
28             (2)   The Legislative Budget and Finance Committee shall
29      make the report under subsection (b) available to the public
30      on the publicly accessible Internet website of the

20250HB1788PN2194                     - 2 -
 1      Legislative Budget and Finance Committee.
 2      (b)    Transmission.--The Legislative Budget and Finance
 3   Committee, in collaboration with an applicable authority, shall
 4   present a report to the Transportation Committee of the Senate
 5   and the Transportation Committee of the House of Representatives
 6   no later than February 1 of every other year. The report shall
 7   include the following:
 8            (1)   The progress of the applicable authority on
 9      achieving fiscal solvency or profitability.
10            (2)   The usage of any funds appropriated by the
11      Commonwealth to the applicable authority.
12            (3)   Any other information the Legislative Budget and
13      Finance Committee deems necessary.
14      (c)    Construction.--This section shall not be construed to
15   prohibit more frequent reviews of an applicable authority's use
16   of funds appropriated.
17      (d)    Definition.--As used in this section, the term
18   "applicable authority" means the transportation authority of the
19   metropolitan area as defined in section 1701 (relating to
20   definitions) and the local transportation organization organized
21   and existing under the act of April 6, 1956 (1955 P.L.1414,
22   No.465), known as the Second Class County Port Authority Act.
23      Section 3.    Title 74 is amended by adding a chapter to read:
24                                  CHAPTER 19
25                      PUBLIC TRANSPORTATION TRUST FUND
26                         TRANSFER AND ANNUAL INCREASE
27   Sec.
28   1901.    Scope of chapter.
29   1902.    Definitions.
30   1903.    Transfers.

20250HB1788PN2194                     - 3 -
 1   1904.   Funds established.
 2   1905.   Issuance of bonds.
 3   1906.   Annual increase.
 4   § 1901.    Scope of chapter.
 5      This chapter relates to the Public Transportation Trust Fund
 6   transfer and annual increase.
 7   § 1902.    Definitions.
 8      The following words and phrases when used in this chapter
 9   shall have the meanings given to them in this section unless the
10   context clearly indicates otherwise:
11      "Authority."     The Commonwealth Financing Authority.
12      "Board."     The board of directors of the authority.
13      "Department."     The Department of Transportation of the
14   Commonwealth.
15      "Local transportation organization."     As defined in section
16   1503 (relating to definitions).
17      "Project fund."      The Road and Bridge Project Fund established
18   under section 1904(a) (relating to funds established).
19      "Project sinking fund."      The Road and Bridge Project Sinking
20   Fund established under section 1904(b).
21      "Secretary."     The Secretary of Transportation of the
22   Commonwealth.
23      "Tax Reform Code."      The act of March 4, 1971 (P.L.6, No.2),
24   known as the Tax Reform Code of 1971.
25   § 1903.    Transfers.
26      Notwithstanding section 1506(c)(1) (relating to fund):
27             (1)   6.15% of the amount collected under Article II of
28      the Tax Reform Code     shall be deposited into the Public
29      Transportation Trust Fund annually by the 20th day of each
30      month for the preceding month.

20250HB1788PN2194                     - 4 -
 1             (2)   Subject to section 1904(c)(2) (relating to funds
 2      established), up to 0.25% of the amount collected under
 3      Article II of the Tax Reform Code shall be deposited into the
 4      project sinking fund annually by the 20th day of each month
 5      for the preceding month.
 6   § 1904.    Funds established.
 7      (a)     Road and Bridge Project Fund.--The Road and Bridge
 8   Project Fund is established in the State Treasury for the
 9   purpose of funding projects related to the construction,
10   reconstruction, rehabilitation, maintenance and repair of roads
11   and bridges in this Commonwealth.
12      (b)     Road and Bridge Project Sinking Fund.--The Road and
13   Bridge Project Sinking Fund is established in the State Treasury
14   for the purpose of the repayment of bonds issued under this
15   chapter.
16      (c)     Operations generally.--
17             (1)   All money deposited into the project fund and
18      interest and other earnings on the money in the project fund
19      are appropriated to the department on a continuing basis to
20      carry out the purposes described under subsection (a).
21             (2)   All money deposited into the project sinking fund
22      and interest and other earnings on the money in the project
23      sinking fund are appropriated to the authority on a
24      continuing basis to carry out the purposes described under
25      subsection (b).
26   § 1905.    Issuance of bonds.
27      (a)     Principal amounts.--The authority may issue its bonds,
28   notes or other obligations in principal amounts as in the
29   judgment of the authority shall be necessary, but not to exceed
30   a total sum of $325,000,000, to provide sufficient money for:

20250HB1788PN2194                     - 5 -
 1            (1)   The payment, funding or refunding of the principal
 2      of or interest or redemption premiums on any bonds issued by
 3      the authority, whether the bonds to be funded or refunded
 4      have or have not become due.
 5            (2)   The establishment or increase of reserves to secure
 6      or to pay the bonds or interest on the bonds.
 7            (3)   All other costs or expenses of the authority
 8      incident to and necessary to carry out the purposes under
 9      this chapter.
10      (b)   Negotiable instrument designation.--Whether or not the
11   bonds are of a form and character as to be negotiable
12   instruments under the terms of 13 Pa.C.S. (relating to
13   commercial code), the bonds are made negotiable instruments
14   within the meaning of and for the purposes of 13 Pa.C.S.,
15   subject only to the provisions of the bonds for registration.
16      (c)   Resolution and terms of bonds.--Bonds shall be
17   authorized by resolution of the board, may be issued in one or
18   more series and shall bear any date or dates, mature at any time
19   or times, bear interest at any rate or rates or at variable
20   rates, be in any denomination or denominations, be in any form,
21   either coupon or registered, carry any conversion or
22   registration privileges, have any rank or priority, be executed
23   in any manner, be payable from such sources in any medium of
24   payment at any place or places within or without this
25   Commonwealth and be subject to any terms of redemption, purchase
26   or tender by the authority or the holders thereof, with our
27   without premium, as the resolution or resolutions may provide. A
28   resolution of the authority authorizing the issuance of bonds
29   may provide that the bonds be secured by a trust indenture
30   between the authority and a trustee, vesting in the trustee any

20250HB1788PN2194                    - 6 -
 1   property, rights, powers and duties in trust consistent with the
 2   provisions of this act as the authority may determine. The
 3   resolution may further provide for the acquisition of credit
 4   enhancement devices such as bond insurance, letters of credit or
 5   any other instruments to carry out the provisions of this
 6   section.
 7      (d)     Public or private sale.--Bonds shall be sold initially
 8   at public sale at any price or prices and in any manner as the
 9   authority may determine, subject to the requirement that the
10   chairperson shall ensure that minority-owned or minority-
11   controlled firms shall have an opportunity to participate to a
12   significant degree in any bond sale activities. Any portion of
13   any bond issue so offered and not sold or subscribed for may be
14   disposed of by private sale by the authority in the manner and
15   at the prices as the authority shall direct.
16      (e)     No prior preconditions on bond issuance.--Bonds may be
17   issued under this chapter without obtaining the consent of any
18   department, division, board, bureau or agency of the
19   Commonwealth and without any other proceeding or the happening
20   of any other conditions or other things than those proceedings,
21   conditions or things which are specifically required by this
22   chapter.
23      (f)     Limitation on obligations.--Bonds issued this chapter
24   shall not be a debt or liability of the Commonwealth or of any
25   of its political subdivisions other than the authority and shall
26   not create or constitute any indebtedness, liability or
27   obligation of the Commonwealth or of any political subdivision.
28   All bonds shall be payable solely from revenues or funds pledged
29   or available for their payment as authorized in this chapter,
30   including the proceeds of any issue of bonds. Each bond shall

20250HB1788PN2194                    - 7 -
 1   contain on its face a statement to the effect that the authority
 2   is obligated to pay the principal thereof or the interest
 3   thereon only from its revenues, receipts or funds pledged or
 4   available for their payment as authorized in this chapter, that
 5   neither the Commonwealth nor any political subdivisions are
 6   obligated to pay the principal or interest and that neither the
 7   faith and credit nor the taxing power of the Commonwealth or any
 8   political subdivision is pledged to the payment of the principal
 9   of or the interest on the bonds.
10      (g)   Nature of obligation and payment.--Each issue of bonds
11   may, if it is determined by the authority, be general
12   obligations of the authority payable out of any revenues,
13   receipts or funds of the authority, or special obligations
14   payable out of particular revenues, receipts or funds, subject
15   only to agreements with the holders of the bonds. Bonds may be
16   secured by one or more of the following:
17            (1)   Pledges of revenues and other receipts to be derived
18      from the payment of the interest on and any principal of
19      notes and bonds issued by one or more governmental units and
20      purchased by the authority, and any other payment made to the
21      authority pursuant to agreements with any governmental unit
22      or a pledge or assignment of any notes and bonds of any
23      governmental units, and the rights and interest of the
24      authority therein.
25            (2)   Pledges of loan payments, rentals, other revenues to
26      be derived from loan agreements, leases or other contractual
27      arrangements with any person or entity, public or private, or
28      a pledged or assignment of any of the loan agreements, leases
29      or other contractual arrangements, and the rights and
30      interest of the authority therein.

20250HB1788PN2194                    - 8 -
 1             (3)    Pledges of grants, subsidies, contributions,
 2      appropriations or other payments to be received from the
 3      Federal Government or any instrumentality thereof or from the
 4      Commonwealth, any Commonwealth agency or other governmental
 5      unit.
 6             (4)    Pledges of all moneys, funds, accounts, securities
 7      and other funds, including the proceeds of the bonds.
 8             (5)    Mortgages and security interests covering all or
 9      part of any project or other property of any person or
10      entity, real or personal, then owned or thereafter to be
11      acquired, or a pledge or assignment of mortgages and security
12      interest made or granted to the authority by any person or
13      entity, and the rights and interests of the authority
14      therein.
15      (h)    Exemption from taxation.--All bonds and notes issued
16   under this section shall be exempt from taxation for State and
17   local purposes.
18   § 1906.    Annual increase.
19      Notwithstanding section 1513(c)(3) and (d)(2) (relating to
20   operating program), the total financial assistance provided to
21   each local transportation organization may exceed 20% of the
22   prior year allocation and the secretary may adjust and hold
23   harmless the amount of annual increase in local match under
24   section 1513(d)(2) for a period of five fiscal years beginning
25   in fiscal year 2025-2026.
26      Section 4.       Title 74 is amended by adding a section to read:
27   § 9107.1.       Applicable authority.
28      (a)    Duty to submit projects to board.--Not later than 90
29   days after the effective date of this section, an applicable
30   authority shall submit one or more transportation projects to

20250HB1788PN2194                      - 9 -
 1   the board for consideration involving one or more transportation
 2   facilities.
 3      (b)     Definition.--As used in this section, the term
 4   "applicable authority" means the transportation authority of the
 5   metropolitan area as defined in section 1701 (relating to
 6   definitions) and the local transportation organization organized
 7   and existing under the act of April 6, 1956 (1955 P.L.1414,
 8   No.465), known as the Second Class County Port Authority Act.
 9      Section 5.         Section 4307(g) of Title 75 is amended by adding
10   a definition and the section is amended by adding a subsection
11   to read:
12   § 4307.    Use and display of illuminated signs.
13      * * *
14      (f.2)     Public transportation vehicles.--
15             (1)   A public transportation vehicle may carry on the
16      rear or side of the vehicle illuminated signs, or surfaces
17      designed to be illuminated signs, placed so as not to
18      interfere with the vision of the driver through the rear
19      window, if any, of the vehicle.
20             (2)   Illuminated signs, or surfaces designed to be
21      illuminated signs, placed under paragraph (1) shall be of a
22      size and type designed not to interfere with or unduly
23      distract drivers of other vehicles on the highway. The sign
24      or surface may:
25                   (i)    Include features that enhance road safety,
26             including enhanced turn signals and brake lights, by
27             connecting the sign or surface to a vehicle operation
28             indicator.
29                   (ii)    Be able to communicate with the public through
30             real-time, geofenced and global-positioning-system-

20250HB1788PN2194                        - 10 -
 1            enabled technology by providing information and
 2            advertising to the public, including public service
 3            announcements and emergency alerts.
 4            (3)   The size and placement of the sign or surface must
 5      be approved by the department or be of a type approved by the
 6      department prior to use on the vehicle.
 7      (g)   Definitions.--As used in this section, the following
 8   words and phrases shall have the meanings given to them in this
 9   subsection unless the context clearly indicates otherwise:
10      * * *
11      "Public transportation vehicle."       A vehicle used for the
12   purpose of public passenger transportation or a transportation
13   system under 74 Pa.C.S. Chs. 15 (relating to sustainable
14   mobility options) and 17 (relating to metropolitan
15   transportation authorities) and operated by, or under an
16   agreement with, a public entity, including an airport, a port
17   authority, a public transit agency, a State-owned institution or
18   a State-related institution or another Federal, State, county or
19   local government entity or agency. The term includes a bus,
20   light rail or a train. The term does not include a school bus or
21   a vehicle used for charter or sightseeing services.
22      Section 6.     Section 9511.12 of Title 75 is amended to read:
23   § 9511.12.     [(Reserved).] Supplemental funding for three and
24                  four digit highway construction.
25      (a)   Three and Four Digit State Route Account established.--
26   The Three and Four Digit State Route Account is established as a
27   restricted account in the Motor License Fund. Money in the
28   account is appropriated to the department on the continuing
29   basis for use consistent with this section.
30      (b)   Deposits.--The following shall be deposited into the

20250HB1788PN2194                     - 11 -
 1   account:
 2            (1)   All interest earned on the money in the account.
 3            (2)   Money transferred from the Motor License Fund under
 4      subsection (c).
 5      (c)     Transfers.--
 6            (1)   Not later than 15 days after the effective date of
 7      this subsection, the Secretary of the Budget shall transfer
 8      unrestricted revenue in the Motor License Fund to the account
 9      in an amount equal to $150,000,000.
10            (2)   Not later than July 15, 2026, the Secretary of the
11      Budget shall transfer unrestricted revenue in the Motor
12      License Fund to the account in an amount equal to
13      $125,000,000.
14      (d)     Use.--
15            (1)   Money in the account shall be used to supplement and
16      not supplant money otherwise available for eligible highway
17      and bridge projects.
18            (2)   The department shall prioritize eligible highway and
19      bridge projects funded through the account based on condition
20      and prepare a plan to deliver projects in an equitable manner
21      and in conformance with this section. The department shall
22      post the eligible highway and bridge projects and plan on the
23      department's publicly accessible Internet website.
24            (3)   Eligible highway and bridge projects funded through
25      the account must be bid using the department's engineering
26      and construction management system.
27            (4)   Eligible highway and bridge projects shall be
28      completed within five years.
29            (5)   Money in the account may not be used for bridge
30      maintenance.

20250HB1788PN2194                    - 12 -
 1      (e)   Definitions.--As used in this section, the following
 2   words and phrases shall have the meanings given to them in this
 3   subsection unless the context clearly indicates otherwise:
 4      "Account."    The Three and Four Digit State Route Account
 5   established in subsection (a).
 6      "Eligible highway and bridge project."    A project to
 7   construct, reconstruct or resurface a highway or bridge within
 8   the department's three or four digit State Route highway system.
 9   The term shall include necessary design costs.
10      Section 7.    This act shall take effect as follows:
11            (1)   The amendment or addition of 74 Pa.C.S. §§ 1513(f.1)
12      and (i), 1787 and 9107.1 and 75 Pa.C.S. §§ 4307(f.2) and (g)
13      and 9511.12 shall take effect in 60 days.
14            (2)   The remainder of this act shall take effect
15      immediately.




20250HB1788PN2194                    - 13 -