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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY BOYD, CALTAGIRONE, CREIGHTON, CUTLER, GEIST, GIBBONS, HICKERNELL, KAUFFMAN, LONGIETTI, MAHER, MICOZZIE, MURT, O'NEILL, QUINN, RAPP, REICHLEY, ROCK, SCAVELLO, TRUE, VULAKOVICH AND WATSON, MARCH 13, 2009 |
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| REFERRED TO COMMITTEE ON FINANCE, MARCH 13, 2009 |
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| AN ACT |
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1 | Providing for a tax credit program to support community-based |
2 | mental retardation services in this Commonwealth. |
3 | The General Assembly finds and declares as follows: |
4 | (1) In July 1999, the Supreme Court issued the Olmstead |
5 | v. L.C. decision that clearly challenges Federal, state and |
6 | local governments to develop more opportunities for |
7 | individuals with disabilities through more accessible systems |
8 | of cost-effective community-based services. |
9 | (2) The Olmstead decision interpreted Title II of the |
10 | Americans with Disabilities Act of 1990 (Public Law 101-336, |
11 | 104 Stat. 327) and its implementing regulation, requiring |
12 | states to administer their services, programs and activities |
13 | in the most integrated setting appropriate to the needs of |
14 | qualified individuals with disabilities. |
15 | (3) In Pennsylvania, services for individuals with |
16 | mental retardation are evolving from a system comprised of |
17 | large public and private residential facilities to a system |
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1 | of community supports and services so that individuals may |
2 | remain in their homes and communities. |
3 | (4) Community services include a variety of residential |
4 | and day support services which are either administered or |
5 | operated by county mental health and mental retardation |
6 | offices, contracted private residential intermediate care |
7 | facilities for persons with mental retardation (ICF/MR) and |
8 | contracted private providers of community-based services. |
9 | (5) In 1999, the Office of Mental Retardation of the |
10 | Department of Public Welfare released a report with a long- |
11 | term plan to address the waiting list for mental retardation |
12 | services in Pennsylvania. |
13 | (6) The waiting list is comprised of three categories: |
14 | the emergency category, for individuals who need services |
15 | immediately; the critical list, for individuals who will need |
16 | services within one year; and the planning category, for |
17 | individuals who will need services in five years. |
18 | (7) In 1999, a total of 14,083 persons were on the |
19 | waiting list for services. As of December 2004, the Office of |
20 | Mental Retardation reported that there are 20,652 individuals |
21 | on the waiting list for mental retardation services. Of that |
22 | group, 2,180 individuals are in the emergency category, 8,000 |
23 | individuals are in the critical category and 10,000 |
24 | individuals are in the planning category. |
25 | (8) Since 2001, decreasing revenues and rising Medicaid |
26 | costs have impacted state budgets across the United States |
27 | with the results that Federal and State funding has been |
28 | insufficient to meet the needs of the growing number of |
29 | individuals with mental retardation waiting for community- |
30 | based services. |
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1 | (9) It is critical to access other sources of revenue to |
2 | address the waiting list for services. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | Section 1. Short title. |
6 | This act shall be known and may be cited as the Mental |
7 | Retardation Services Tax Credit Act. |
8 | Section 2. Definitions. |
9 | The following words and phrases when used in this act shall |
10 | have the meanings given to them in this section unless the |
11 | context clearly indicates otherwise: |
12 | "Business firm." An entity authorized to do business in this |
13 | Commonwealth and subject to taxes imposed under Article III, IV, |
14 | VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6, |
15 | No.2), known as the Tax Reform Code of 1971. |
16 | "Contribution." A donation of cash, personal property or |
17 | services, the value of which is the net cost of the donation to |
18 | the donor or the pro rata hourly wage, including benefits, of |
19 | the individual performing the service. |
20 | "Department." The Department of Community and Economic |
21 | Development of the Commonwealth. |
22 | "Individual." An individual who is eligible for community- |
23 | based services funded through the Office of Mental Retardation |
24 | of the Department of Public Welfare. |
25 | "Provider." A nonprofit entity that: |
26 | (1) Provides community-based services to individuals |
27 | with mental retardation, including, but not limited to, |
28 | community residential options and nonresidential services, |
29 | such as supported employment, training and recreation, |
30 | mobility training, employment training and opportunities and |
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1 | adult day care. |
2 | (2) Is exempt from Federal taxation under section 501(c) |
3 | (3) of the Internal Revenue Code of 1986 (Public Law 99-514, |
4 | 26 U.S.C. § 1 et seq.). |
5 | Section 3. Mental retardation services tax credit program. |
6 | (a) Establishment.--A mental retardation services tax credit |
7 | program is hereby established to supplement, not supplant, |
8 | existing Federal and State funding for community-based services |
9 | for individuals with mental retardation in this Commonwealth. |
10 | (b) Information.--In order to qualify under this act, a |
11 | provider must submit information to the department that enables |
12 | the department to confirm that the provider is exempt from |
13 | taxation under section 501(c)(3) of the Internal Revenue Code of |
14 | 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.). |
15 | (c) Provider application.-- |
16 | (1) An application submitted to the department by the |
17 | provider must describe the community-based services it |
18 | provides to individuals with mental retardation on a form |
19 | provided by the department. |
20 | (2) The department shall consult with the Department of |
21 | Public Welfare as necessary to determine that the provider |
22 | provides community-based services for individuals with mental |
23 | retardation. The department shall review and approve or |
24 | disapprove the application. |
25 | (d) Notification.--The department shall notify the provider |
26 | that the provider meets the requirements under this act for that |
27 | fiscal year no later than 60 days after the provider has |
28 | submitted the application required under this section. |
29 | (e) Publication.--The department shall annually publish a |
30 | list of each provider qualified under this section in the |
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1 | Pennsylvania Bulletin. The list shall also be posted and updated |
2 | as necessary on the publicly accessible Internet website of the |
3 | department. |
4 | Section 4. Availability of tax credits. |
5 | (a) Application.--A business firm may apply to the |
6 | department for a tax credit under section 5. A business firm |
7 | shall receive a tax credit under this act if the provider that |
8 | receives the contribution from the business firm appears on the |
9 | list under section 3(e). |
10 | (b) Availability of tax credits.--Tax credits under this |
11 | section shall be made available by the department on a first- |
12 | come-first-served basis within the limitation established under |
13 | section 6(a). |
14 | (c) Contributions.--A contribution by a business firm to a |
15 | provider shall be made no later than 60 days following the |
16 | approval of an application under subsection (a). |
17 | Section 5. Grant of tax credits. |
18 | (a) General rule.--In accordance with section (6)(a), the |
19 | Department of Revenue shall grant a tax credit against a tax |
20 | liability owed to the Department of Revenue by a business firm |
21 | that provides proof of a contribution to a provider in the |
22 | taxable year in which the contribution is made. The business |
23 | firm may apply the credit against any tax due under Article III, |
24 | IV, VI, VII, VIII, IX or XV of the act of March 4, 1971 (P.L.6, |
25 | No.2), known as the Tax Reform Code of 1971. |
26 | (b) Limitation.--The tax credit shall not exceed 50% of the |
27 | total amount contributed by a business firm to a provider during |
28 | the taxable year of the business firm. The tax credit shall not |
29 | exceed $100,000 annually per business firm. |
30 | (c) Additional amount.-- |
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1 | (1) A business firm that contributes to a provider in |
2 | two or more consecutive years shall qualify for a 75% tax |
3 | credit for the contributions made in the second year and |
4 | every consecutive year of making a contribution to a |
5 | provider. |
6 | (2) Nothing in this section shall be construed to |
7 | require a business firm to contribute to the same provider |
8 | every year in order for the business firm to qualify for a |
9 | tax credit under this subsection. |
10 | Section 6. Amount of tax credits. |
11 | (a) General rule.--The total aggregate amount of all tax |
12 | credits approved shall not exceed $30,000,000 in a fiscal year. |
13 | (b) Activities.--No tax credit shall be approved for |
14 | activities that are part of a business firm's normal course of |
15 | business. |
16 | (c) Tax liability.--A tax credit granted for any one taxable |
17 | year may not exceed the tax liability of a business firm. |
18 | (d) Use.--A tax credit not used in the taxable year the |
19 | contribution was made may not be carried forward or carried back |
20 | and is not refundable or transferable. |
21 | Section 7. Report to General Assembly. |
22 | The Department of Revenue shall provide a list of all |
23 | providers receiving contributions from business firms granted a |
24 | tax credit under this act to the General Assembly by June 30 of |
25 | each year. |
26 | Section 8. Effective date. |
27 | This act shall take effect in 60 days. |
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