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PRIOR PRINTER'S NO. 2194 PRINTER'S NO. 2206
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1788
Session of
2025
INTRODUCED BY DOUGHERTY, NEILSON, HOHENSTEIN, GUZMAN, BELLMON,
SHUSTERMAN, J. HARRIS, GREEN, WAXMAN, CEPHAS, GALLAGHER,
SAPPEY, FIEDLER, O'MARA, GIRAL, ISAACSON, BURGOS, MERSKI,
PARKER, SOLOMON, MULLINS AND KHAN, AUGUST 6, 2025
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
AUGUST 11, 2025
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1513 of Title 74 of the Pennsylvania
Consolidated Statutes is amended by adding subsections to read:
§ 1513. Operating program.
* * *
(f.1) Additional minimum system performance criteria.--
(1) The department shall establish additional minimum
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system performance criteria for an applicable authority to
improve fare evasion, public-private transportation
partnerships and bus routes. The department shall promulgate
regulations, including temporary regulations, to establish
the minimum system performance criteria based upon comparison
of the award recipient to the applicable authority's past
performance and to the applicable authority's peers that an
award recipient must satisfy.
(2) Failure of the applicable authority to satisfy the
minimum system performance criteria established under
paragraph (1) shall result in application of the procedure in
subsection (g).
* * *
(i) Definition.--As used in this section, the term
"applicable authority" means the transportation authority of the
metropolitan area as defined in section 1701 (relating to
definitions) and the local transportation organization organized
and existing under the act of April 6, 1956 (1955 P.L.1414,
No.465), known as the Second Class County Port Authority Act.
Section 2. Title 74 is amended by adding a section to read:
§ 1787. Supplemental performance reporting.
(a) Review.--In addition to any audits or financial
statements required by the Federal or State Government or a
county in this Commonwealth, an applicable authority shall be
subject to the following performance reporting requirements:
(1) At least once annually, the Legislative Budget and
Finance Committee shall review the procedures and audits of
the applicable authority and produce a report on its
findings.
(2) The Legislative Budget and Finance Committee shall
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make the report under subsection (b) available to the public
on the publicly accessible Internet website of the
Legislative Budget and Finance Committee.
(b) Transmission.--The Legislative Budget and Finance
Committee, in collaboration with an applicable authority, shall
present a report to the Transportation Committee of the Senate
and the Transportation Committee of the House of Representatives
no later than February 1 of every other year. The report shall
include the following:
(1) The progress of the applicable authority on
achieving fiscal solvency or profitability.
(2) The usage of any funds appropriated by the
Commonwealth to the applicable authority.
(3) Any other information the Legislative Budget and
Finance Committee deems necessary.
(c) Construction.--This section shall not be construed to
prohibit more frequent reviews of an applicable authority's use
of funds appropriated.
(d) Definition.--As used in this section, the term
"applicable authority" means the transportation authority of the
metropolitan area as defined in section 1701 (relating to
definitions) and the local transportation organization organized
and existing under the act of April 6, 1956 (1955 P.L.1414,
No.465), known as the Second Class County Port Authority Act.
Section 3. Title 74 is amended by adding a chapter to read:
CHAPTER 19
PUBLIC TRANSPORTATION TRUST FUND
TRANSFER AND ANNUAL INCREASE
Sec.
1901. Scope of chapter.
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1902. Definitions.
1903. Transfers.
1904. Funds established.
1905. Issuance of bonds.
1906. Annual increase.
§ 1901. Scope of chapter.
This chapter relates to the Public Transportation Trust Fund
transfer and annual increase.
§ 1902. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." The Commonwealth Financing Authority.
"Board." The board of directors of the authority.
"Department." The Department of Transportation of the
Commonwealth.
"Local transportation organization." As defined in section
1503 (relating to definitions).
"Project fund." The Road and Bridge Project Fund established
under section 1904(a) (relating to funds established).
"Project sinking fund." The Road and Bridge Project Sinking
Fund established under section 1904(b).
"Secretary." The Secretary of Transportation of the
Commonwealth.
"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971.
§ 1903. Transfers.
Notwithstanding section 1506(c)(1) (relating to fund):
(1) 6.15% of the amount collected under Article II of
the Tax Reform Code shall be deposited into the Public
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Transportation Trust Fund annually by the 20th day of each
month for the preceding month.
(2) Subject to section 1904(c)(2) (relating to funds
established), up to 0.25% of the amount collected under
Article II of the Tax Reform Code shall be deposited into the
project sinking fund annually by the 20th day of each month
for the preceding month.
§ 1904. Funds established.
(a) Road and Bridge Project Fund.--The Road and Bridge
Project Fund is established in the State Treasury for the
purpose of funding projects related to the construction,
reconstruction, rehabilitation, maintenance and repair of roads
and bridges in this Commonwealth.
(b) Road and Bridge Project Sinking Fund.--The Road and
Bridge Project Sinking Fund is established in the State Treasury
for the purpose of the repayment of bonds issued under this
chapter.
(c) Operations generally.--
(1) All money deposited into the project fund and
interest and other earnings on the money in the project fund
are appropriated to the department on a continuing basis to
carry out the purposes described under subsection (a).
(2) All money deposited into the project sinking fund
and interest and other earnings on the money in the project
sinking fund are appropriated to the authority on a
continuing basis to carry out the purposes described under
subsection (b).
§ 1905. Issuance of bonds.
(a) Principal amounts.--The authority may issue its bonds,
notes or other obligations in principal amounts as in the
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judgment of the authority shall be necessary, but not to exceed
a total sum of $325,000,000, to provide sufficient money for:
(1) The payment, funding or refunding of the principal
of or interest or redemption premiums on any bonds issued by
the authority, whether the bonds to be funded or refunded
have or have not become due.
(2) The establishment or increase of reserves to secure
or to pay the bonds or interest on the bonds.
(3) All other costs or expenses of the authority
incident to and necessary to carry out the purposes under
this chapter.
(b) Negotiable instrument designation.--Whether or not the
bonds are of a form and character as to be negotiable
instruments under the terms of 13 Pa.C.S. (relating to
commercial code), the bonds are made negotiable instruments
within the meaning of and for the purposes of 13 Pa.C.S.,
subject only to the provisions of the bonds for registration.
(c) Resolution and terms of bonds.--Bonds shall be
authorized by resolution of the board, may be issued in one or
more series and shall bear any date or dates, mature at any time
or times, bear interest at any rate or rates or at variable
rates, be in any denomination or denominations, be in any form,
either coupon or registered, carry any conversion or
registration privileges, have any rank or priority, be executed
in any manner, be payable from such sources in any medium of
payment at any place or places within or without this
Commonwealth and be subject to any terms of redemption, purchase
or tender by the authority or the holders thereof, with our OR
without premium, as the resolution or resolutions may provide. A
resolution of the authority authorizing the issuance of bonds
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may provide that the bonds be secured by a trust indenture
between the authority and a trustee, vesting in the trustee any
property, rights, powers and duties in trust consistent with the
provisions of this act as the authority may determine. The
resolution may further provide for the acquisition of credit
enhancement devices such as bond insurance, letters of credit or
any other instruments to carry out the provisions of this
section.
(d) Public or private sale.--Bonds shall be sold initially
at public sale at any price or prices and in any manner as the
authority may determine, subject to the requirement that the
chairperson shall ensure that minority-owned or minority-
controlled firms shall have an opportunity to participate to a
significant degree in any bond sale activities. Any portion of
any bond issue so offered and not sold or subscribed for may be
disposed of by private sale by the authority in the manner and
at the prices as the authority shall direct.
(e) No prior preconditions on bond issuance.--Bonds may be
issued under this chapter without obtaining the consent of any
department, division, board, bureau or agency of the
Commonwealth and without any other proceeding or the happening
of any other conditions or other things than those proceedings,
conditions or things which are specifically required by this
chapter.
(f) Limitation on obligations.--Bonds issued this chapter
shall not be a debt or liability of the Commonwealth or of any
of its political subdivisions other than the authority and shall
not create or constitute any indebtedness, liability or
obligation of the Commonwealth or of any political subdivision.
All bonds shall be payable solely from revenues or funds pledged
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or available for their payment as authorized in this chapter,
including the proceeds of any issue of bonds. Each bond shall
contain on its face a statement to the effect that the authority
is obligated to pay the principal thereof or the interest
thereon only from its revenues, receipts or funds pledged or
available for their payment as authorized in this chapter, that
neither the Commonwealth nor any political subdivisions are
obligated to pay the principal or interest and that neither the
faith and credit nor the taxing power of the Commonwealth or any
political subdivision is pledged to the payment of the principal
of or the interest on the bonds.
(g) Nature of obligation and payment.--Each issue of bonds
may, if it is determined by the authority, be general
obligations of the authority payable out of any revenues,
receipts or funds of the authority, or special obligations
payable out of particular revenues, receipts or funds, subject
only to agreements with the holders of the bonds. Bonds may be
secured by one or more of the following:
(1) Pledges of revenues and other receipts to be derived
from the payment of the interest on and any principal of
notes and bonds issued by one or more governmental units and
purchased by the authority, and any other payment made to the
authority pursuant to agreements with any governmental unit
or a pledge or assignment of any notes and bonds of any
governmental units, and the rights and interest of the
authority therein.
(2) Pledges of loan payments, rentals, other revenues to
be derived from loan agreements, leases or other contractual
arrangements with any person or entity, public or private, or
a pledged PLEDGE or assignment of any of the loan agreements,
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leases or other contractual arrangements, and the rights and
interest of the authority therein.
(3) Pledges of grants, subsidies, contributions,
appropriations or other payments to be received from the
Federal Government or any instrumentality thereof or from the
Commonwealth, any Commonwealth agency or other governmental
unit.
(4) Pledges of all moneys, funds, accounts, securities
and other funds, including the proceeds of the bonds.
(5) Mortgages and security interests covering all or
part of any project or other property of any person or
entity, real or personal, then owned or thereafter to be
acquired, or a pledge or assignment of mortgages and security
interest made or granted to the authority by any person or
entity, and the rights and interests of the authority
therein.
(h) Exemption from taxation.--All bonds and notes issued
under this section shall be exempt from taxation for State and
local purposes.
§ 1906. Annual increase.
Notwithstanding section 1513(c)(3) and (d)(2) (relating to
operating program), the total financial assistance provided to
each local transportation organization may exceed 20% of the
prior year allocation and the secretary may adjust and hold
harmless the amount of annual increase in local match under
section 1513(d)(2) for a period of five fiscal years beginning
in fiscal year 2025-2026.
Section 4. Title 74 is amended by adding a section to read:
§ 9107.1. Applicable authority.
(a) Duty to submit projects to board.--Not later than 90
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days after the effective date of this section, an applicable
authority shall submit one or more transportation projects to
the board for consideration involving one or more transportation
facilities.
(b) Definition.--As used in this section, the term
"applicable authority" means the transportation authority of the
metropolitan area as defined in section 1701 (relating to
definitions) and the local transportation organization organized
and existing under the act of April 6, 1956 (1955 P.L.1414,
No.465), known as the Second Class County Port Authority Act.
Section 5. Section 4307(g) of Title 75 is amended by adding
a definition and the section is amended by adding a subsection
to read:
§ 4307. Use and display of illuminated signs.
* * *
(f.2) Public transportation vehicles.--
(1) A public transportation vehicle may carry on the
rear or side of the vehicle illuminated signs, or surfaces
designed to be illuminated signs, placed so as not to
interfere with the vision of the driver through the rear
window, if any, of the vehicle.
(2) Illuminated signs, or surfaces designed to be
illuminated signs, placed under paragraph (1) shall be of a
size and type designed not to interfere with or unduly
distract drivers of other vehicles on the highway. The sign
or surface may:
(i) Include features that enhance road safety,
including enhanced turn signals and brake lights, by
connecting the sign or surface to a vehicle operation
indicator.
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(ii) Be able to communicate with the public through
real-time, geofenced and global-positioning-system-
enabled technology by providing information and
advertising to the public, including public service
announcements and emergency alerts.
(3) The size and placement of the sign or surface must
be approved by the department or be of a type approved by the
department prior to use on the vehicle.
(g) Definitions.--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:
* * *
"Public transportation vehicle." A vehicle used for the
purpose of public passenger transportation or a transportation
system under 74 Pa.C.S. Chs. 15 (relating to sustainable
mobility options) and 17 (relating to metropolitan
transportation authorities) and operated by, or under an
agreement with, a public entity, including an airport, a port
authority, a public transit agency, a State-owned institution or
a State-related institution or another Federal, State, county or
local government entity or agency. The term includes a bus,
light rail or a train. The term does not include a school bus or
a vehicle used for charter or sightseeing services.
Section 6. Section 9511.12 of Title 75 is amended to read:
§ 9511.12. [(Reserved).] Supplemental funding for three and
four digit highway construction.
(a) Three and Four Digit State Route Account established.--
The Three and Four Digit State Route Account is established as a
restricted account in the Motor License Fund. Money in the
account is appropriated to the department on the continuing
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basis for use consistent with this section.
(b) Deposits.--The following shall be deposited into the
account:
(1) All interest earned on the money in the account.
(2) Money transferred from the Motor License Fund under
subsection (c).
(c) Transfers.--
(1) Not later than 15 days after the effective date of
this subsection, the Secretary of the Budget shall transfer
unrestricted revenue in the Motor License Fund to the account
in an amount equal to $150,000,000.
(2) Not later than July 15, 2026, the Secretary of the
Budget shall transfer unrestricted revenue in the Motor
License Fund to the account in an amount equal to
$125,000,000.
(d) Use.--
(1) Money in the account shall be used to supplement and
not supplant money otherwise available for eligible highway
and bridge projects.
(2) The department shall prioritize eligible highway and
bridge projects funded through the account based on condition
and prepare a plan to deliver projects in an equitable manner
and in conformance with this section. The department shall
post the eligible highway and bridge projects and plan on the
department's publicly accessible Internet website.
(3) Eligible highway and bridge projects funded through
the account must be bid using the department's engineering
and construction management system.
(4) Eligible highway and bridge projects shall be
completed within five years.
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(5) Money in the account may not be used for bridge
maintenance.
(e) Definitions.--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:
"Account." The Three and Four Digit State Route Account
established in subsection (a).
"Eligible highway and bridge project." A project to
construct, reconstruct or resurface a highway or bridge within
the department's three or four digit State Route highway system.
The term shall include necessary design costs.
Section 7. This act shall take effect as follows:
(1) The amendment or addition of 74 Pa.C.S. §§ 1513(f.1)
and (i), 1787 and 9107.1 and 75 Pa.C.S. §§ 4307(f.2) and (g)
and 9511.12 shall take effect in 60 days.
(2) The remainder of this act shall take effect
immediately.
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