HB 429 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in special funds, further providing for disposition of Budget Stabilization Reserve Fund; and making interfund transfers.

PRINTER'S NO.   403

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



                      HOUSE BILL
                      No. 429
                                             Session of
                                               2025

     INTRODUCED BY CIRESI, PROBST, HILL-EVANS, FREEMAN, KENYATTA,
        OTTEN, MERSKI, GIRAL, SANCHEZ, D. WILLIAMS, CERRATO AND
        GREEN, JANUARY 31, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, JANUARY 31, 2025


                                  AN ACT
 1   Amending the act of April 9, 1929 (P.L.343, No.176), entitled
 2      "An act relating to the finances of the State government;
 3      providing for cancer control, prevention and research, for
 4      ambulatory surgical center data collection, for the Joint
 5      Underwriting Association, for entertainment business
 6      financial management firms, for private dam financial
 7      assurance and for reinstatement of item vetoes; providing for
 8      the settlement, assessment, collection, and lien of taxes,
 9      bonus, and all other accounts due the Commonwealth, the
10      collection and recovery of fees and other money or property
11      due or belonging to the Commonwealth, or any agency thereof,
12      including escheated property and the proceeds of its sale,
13      the custody and disbursement or other disposition of funds
14      and securities belonging to or in the possession of the
15      Commonwealth, and the settlement of claims against the
16      Commonwealth, the resettlement of accounts and appeals to the
17      courts, refunds of moneys erroneously paid to the
18      Commonwealth, auditing the accounts of the Commonwealth and
19      all agencies thereof, of all public officers collecting
20      moneys payable to the Commonwealth, or any agency thereof,
21      and all receipts of appropriations from the Commonwealth,
22      authorizing the Commonwealth to issue tax anticipation notes
23      to defray current expenses, implementing the provisions of
24      section 7(a) of Article VIII of the Constitution of
25      Pennsylvania authorizing and restricting the incurring of
26      certain debt and imposing penalties; affecting every
27      department, board, commission, and officer of the State
28      government, every political subdivision of the State, and
29      certain officers of such subdivisions, every person,
30      association, and corporation required to pay, assess, or
31      collect taxes, or to make returns or reports under the laws
32      imposing taxes for State purposes, or to pay license fees or
33      other moneys to the Commonwealth, or any agency thereof,
 1      every State depository and every debtor or creditor of the
 2      Commonwealth," in special funds, further providing for
 3      disposition of Budget Stabilization Reserve Fund; and making
 4      interfund transfers.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.     Section 1703-A of the act of April 9, 1929
 8   (P.L.343, No.176), known as The Fiscal Code, is amended to read:
 9   Section 1703-A.        Disposition of Budget Stabilization Reserve
10                  Fund.
11      (a)   Purpose.--[It] Except as otherwise provided in
12   subsection (d), it is the intent of the General Assembly that:
13            (1)   Money from the Budget Stabilization Reserve Fund be
14      appropriated only when emergencies involving the health,
15      safety or welfare of the residents of this Commonwealth or
16      downturns in the economy resulting in significant
17      unanticipated revenue shortfalls cannot be dealt with through
18      the normal budget process.
19            (2)   Money in the Budget Stabilization Reserve Fund shall
20      not be used to begin new programs but to provide for the
21      continuation of vital public programs in danger of being
22      eliminated or severely reduced due to financial problems
23      resulting from the economy.
24      (b)   Appropriation.--Except as provided under subsection (c)
25   or (d), whenever the Governor determines that an appropriation
26   from the Budget Stabilization Reserve Fund is necessary to meet
27   emergencies involving the health, safety or welfare of the
28   residents of this Commonwealth or to counterbalance downturns of
29   the economy which result in significant unanticipated revenue
30   shortfalls, the Governor shall present a request for an
31   appropriation which may include the specifics of the proposal
32   and suggested ancillary and substantive legislation as may be

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 1   necessary to the chairman of Appropriations Committee of the
 2   Senate and the chairman of the Appropriations Committee of the
 3   House of Representatives. The General Assembly may then through
 4   approval of a separate appropriation bill by a vote of two-
 5   thirds of the members elected to the Senate and the House of
 6   Representatives appropriate money from the Budget Stabilization
 7   Reserve Fund to meet the needs identified in the Governor's
 8   proposal. Any money appropriated according to this section which
 9   has then lapsed shall be returned to the Budget Stabilization
10   Reserve Fund.
11      (c)   Transfer.--No later than November 30, 2020, $100,000,000
12   shall be transferred from the Budget Stabilization Reserve Fund
13   to the General Fund and shall be available for appropriation by
14   the General Assembly.
15      (d)   Transfers for pension liabilities.--No later than
16   January 1, 2026:
17            (1)   $670,000,000 shall be transferred from the Budget
18      Stabilization Reserve Fund to the Public School Employees'
19      Retirement Fund as a one-time supplemental transfer for the
20      purpose of reducing the unfunded actuarial accrued liability
21      of the Public School Employees' Retirement System.
22            (2)   $330,000,000 shall be transferred from the Budget
23      Stabilization Reserve Fund to the State Employees' Retirement
24      Fund as a one-time supplemental transfer for the purpose of
25      reducing the unfunded actuarial accrued liability of the
26      State Employees' Retirement System.
27      Section 2.    This act shall take effect immediately.




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