1Providing for the dedicated funding of higher education; and
2establishing the Higher Education Fund.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1.  Short title.

6This act shall be known and may be cited as the Higher
7Education Funding Act.

8Section 2.  Definitions.

9The following words and phrases when used in this act shall
10have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Department."  The Department of Revenue of the Commonwealth.

13"Fund."  The Higher Education Fund established in section 5.

14"State-related institution."  The Pennsylvania State
15University, the University of Pittsburgh, Lincoln University or
16Temple University.

17"Tax Reform Code."  The act of March 2, 1971 (P.L.6, No.2),
18known as the Tax Reform Code of 1971.

1Section 3.  Sales and use surtax.

2A surtax of 1% shall be imposed on the purchase price of
3property and services subject to taxation under Article II of
4the Tax Reform Code. The surtax shall be in addition to the tax
5imposed under Article II of the Tax Reform Code.

6Section 4.  Computation of sales and use tax and sales and use
7surtax.

8(a)  Schedule establishment.--Within 30 days of the effective
9date of this section, the department shall establish a schedule
10for the computation of the State sales and use tax under Article
11II of the Tax Reform Code and the sales and use surtax as
12established under this act.

13(b)  Schedule publication.--The department shall publish the
14schedule providing for the computation of the sales and use tax
15and the State sales and use surtax in the Pennsylvania Bulletin
16immediately succeeding the establishment of the schedule.

17Section 5.  Higher Education Fund.

18(a)  Fund established.--A special fund is established in the
19State Treasury to be known as the Higher Education Fund.
20Interest income derived from investment of the money in the fund
21shall be credited by the Treasury Department to the fund.

22(b)  Revenues.--Revenues deposited in the fund may only be
23used to fund the member institutions of the State System of
24Higher Education, community colleges, State-related institutions
25and the Thaddeus Stevens College of Technology.

26Section 6.  Transfer to fund.

27Within 30 days of the close of any calendar month, the
28revenue generated in the previous month from the sales and use
29surtax imposed under this act shall be transferred to the fund.

30Section 7.  Certification.

1(a)  Annual.--By April 15 of each fiscal year, the Secretary
2of the Budget shall certify the total amount of revenue that is
3reasonably projected to be deposited into the fund for the
4period through June 30 of the current fiscal year.

5(b)  Excess.--If the actual revenue deposited into the fund
6in any one fiscal year exceeds the amount certified in this
7section, any revenue in excess of projections may be used in the
8current fiscal year or in the certification for the subsequent
9fiscal year.

10Section 8.  Construction.

11The provisions of Article II of the Tax Reform Code shall
12apply to the imposition and implementation of the surtax.

13Section 20.  Effective date.

14This act shall take effect immediately.