State Budget Among Many Issues OK'd by Senate

Several major bills approved during marathon session

Final approval of Pennsylvania's state budget for Fiscal Year 2008-09 and Senate passage of several major bills were the highlights of a marathon session that ran from June 23 daily through July 4, according to Senator Bob Robbins (R-50).

The main emphasis during that period was on final passage of a $28.2 billion general fund budget for Fiscal Year 2008-09 that represents a nearly $150 million decrease from the $28.35 billion in spending proposed by the Administration.

Overall, the proposed 3.98 percent increase in spending from FY 2007-08 is below the 4.4 percent rate of inflation and represents a significant reduction from the 4.2 percent increase proposed by the Administration.

While spending is reduced across the board in this budget, Senate Republicans also successfully fought to restore state support for essential services and programs such as neonatal hospitals, burn centers and critical care access hospitals.

One of the key elements in the final budget is a more equitable proposal for funding basic education in Pennsylvania. More than 100 of Pennsylvania's 501 school districts would have seen a minimal increase of 1.5 percent in their basic education subsidies under the Administration's proposal. Senate Republicans pushed for the current plan which ensures that every school district in Pennsylvania receive at least a 3 percent increase in its basic education subsidy.

Other bills approved by the Senate during the Session period included:

Senate Bill 4 would allow any individual enrolled in PACE or PACENET to remain eligible for their program if they exceed the maximum income limit due solely to a Social Security cost of living adjustment (COLA). Under Senate Bill 4, the exemption for PACENET would be retroactive to December 31, 2007, while the exemption would begin for PACE recipients on December 31, 2008. The exemption would be in effect until December 31, 2010.

Mortgage Reform Legislation (Senate Bills 483-486)

Senate Bill 483 would amend the Loan Interest and Protection Law of 1974 to increase the monetary cap in the Act from $50,000 to $217,873.

Senate Bill 484 would permit the Department of Banking to publicly release information on pending enforcement actions and fines levied against non-depository licensees.

Senate Bill 485 would amend the Real Estate Appraisers Certification Act regarding board membership, disciplinary measures and penalties.

Senate Bill 486 would amend the Housing Finance Agency Law to require lenders to send copies of foreclosure notices to the Pennsylvania Housing Finance Agency so that mortgage foreclosures can be monitored on a statewide basis.

Senate Bill 903, co-sponsored by Senator Robbins, would prohibit any state agency from contracting with outside individuals or firms to do consulting work, unless the contract is reviewed by the Attorney General for legality and conflict of interest, or is opened up to public competitive bidding. The bill applies to management consulting contracts designed to improve the effectiveness of management strategies, processes or operations, legal consulting services that provide legal opinions or assessments of agency conduct, other than those related to pending litigation, and the provision of legal services in connection with the sale or issuance of bonds.

Senate Bill 949 would create a new Board of Coal Mine Safety to keep Pennsylvania's mine safety standards regularly updated. The seven member board will be chaired by the Secretary of Environmental Protection, with equal representation from mine operators and mine workers. The legislation provides for greater legal responsibility for operators to ensure mine safety, and enables the state to establish a central database of mine maps. It also addresses responses to accidents, requiring mine operators to notify DEP within 15 minutes of an accident, and updates ventilation and roof support requirements. Pennsylvania is the fourth-largest coal producer in the United States, following Wyoming, West Virginia and Kentucky. Pennsylvania's mine safety statute was last updated in 1961.

Senate Bill 1000 would prevent any state government agency from regulating Voice over Internet Protocol or VoIP. VoIP allows telephone calls to be made via a broadband internet connection instead of a regular phone line.

Senate Bill 1015, co-sponsored by Senator Robbins, also known as the Taxpayer-Funded Advertising Transparency Act, requires all paid advertising by state government to bear the following disclaimer: "Paid for with Pennsylvania taxpayer dollars." It is estimated that state government annually spends tens of millions of taxpayer dollars advertising itself, a practice which needs more accountability and transparency.

Senate Bill 1062, co-sponsored by Senator Robbins, also known as the Brownfields Redevelopment Act, creates a program for reimbursing developers for up to 75 percent of the costs associated with the remediation of brownfields sites including sites impacted by mining activity. Remediation must be completed in accordance with Pennsylvania's award-winning Land Recycling Program (Act 2) or a cleanup plan that has been approved by the state Department of Environmental Protection. SB 1062 offers a new source of brownfields funding while being revenue-neutral with regard to the Commonwealth of Pennsylvania budget. Reimbursement to the developer is contingent on completion of the remediation, performance of the project, and generation of new tax revenue.

House Bill 1150, as amended by the Banking and Insurance Committee, would ensure the state has regulatory authority over the proposed merger of Highmark and Independence Blue Cross, the two largest health care insurance companies in the Commonwealth. The bill also would require insurers to provide coverage of autism services and colorectal cancer screenings.

Coverage for autism services would begin one year after the bill is signed into law and be capped at $36,000 per year. The cap would be adjusted on an annual basis based on the rate of inflation. Coverage would be required for businesses having 51 or more employees, a standard used by Florida, South Carolina and other states that require coverage. Companies with 50 or less employees would not be required, but could voluntarily purchase coverage.

Another key provision in HB 1150 is a requirement that any merger involving the "Blues" be subject to approval by the Department of Insurance. While the Insurance Department would hold final approval -- or denial -- authority for a merger of non-profit health insurance companies, the bill empowers the Senate Banking and Insurance Committee and the House Insurance Committee to receive and review all filings submitted to the Department and to develop written comments and recommendations on the merger filings.

Senate Bill 1158 would allow the Commonwealth and regional transportation authorities to enter into agreements with the private sector to design, construct, manage or maintain new or expanded transportation options through Public Private Partnerships (P3s). State and local transportation systems are facing critical maintenance issues, particularly with aging and deteriorating structures and skyrocketing construction costs. If the legislation is approved by the General Assembly, Pennsylvania would join 22 other states that have already authorized the use of P3s. The partnerships authorize the use of private capital or private management expertise on transportation projects.

Senate Bill 1247 would set specific limits regarding when a local government can reassess property. The bills would limit local taxing districts' ability to appeal an assessment only if a property is subdivided or when improvements are added or removed. Currently, Pennsylvania's Real Estate Assessment Law precludes a taxing body from appealing a property's assessed value following a purchase. However, when the purchase price of a property is dramatically different than its assessed value, a local government can argue to increase the assessed value of the property. A number of school districts have used this loophole to impose property tax increases on homeowners.

Senate Bill 1266, co-sponsored by Senator Robbins, would require government agencies to report data breaches involving personal information within one week. The legislation also requires government agencies to report data breaches to the Attorney General within three business days. It would authorize the Attorney General to investigate all breaches to determine the cause, review existing procedures, and make recommendations to prevent future incidents.

Senate Bill 1330, co-sponsored by Senator Robbins, calls for the creation of a three-member Coal Bed Methane Review Board to consider objections and attempt to reach an agreement on issues such as the location of coal bed methane wells and/or access roads.

Currently, disputes between surface land owners and the holders of mineral rights for those properties are often resolved in county courts of common pleas. Senate Bill 1330 is not intended to change the respective rights and obligations of either party, but rather to create a timely, less expensive process.

Senate Bill 1341 would authorize a voter referendum on a $400 million bond for construction, rehabilitation, and improvement of Pennsylvania's drinking water supplies and sewage treatment systems has cleared the Senate. If the referendum is approved, the bond money would be administered through the Pennsylvania Infrastructure Investment Authority (PENNVEST). Financial assistance would be in the form of grants and low-interest loans.

Senate Bill 1412, co-sponsored by Senator Robbins, would reauthorize Pennsylvania's Keystone Opportunity Zone program, extending the tax-free status for unoccupied zones for an additional seven years, beyond the current Dec. 31, 2008 expiration date. The bill also authorizes the creation of seven new Keystone Opportunity Expansion Zones of up to 350 acres and some less than 10 acres, if they are contiguous to a current zone.

Senate Bill 1497, co-sponsored by Senator Robbins, would amend the Public Welfare Code to require the Department of Public Welfare to consider pharmaceutical services as a covered benefit under both mandatory and voluntary managed care which shall be provided and continued under contracts with managed care contractors unless termination of this benefit is approved by the General Assembly.

Senate Bill 1499 would bring accountability to the use of state vehicles. If enacted, the legislation would require any state employee assigned a state vehicle would be required to maintain a monthly mileage log and reimburse the state for insurance and gasoline, based proportionally on personal usage. In addition, no state employee would receive a long-term assignment of a state vehicle unless he drives an average of 1,200 miles per month on official business and vehicles would be required to bear an "official use" license plate, unless the employee performs undercover law enforcement duties.

Contact:

Michael Hengst
(717) 787-1322