The State Budget

***General Fund Budget -- A $6.4 billion general fund budget to finance most state government operations for 1980-81 was signed by the governor after he cut some $38.6 million, alleging the reduction was needed to bring the budget into balance with declining revenue estimates. The budget measure, HB 1623, became Act 17 with the governor's signature June 18.

The budget represents a 6.5 percent increase in spending over the previous year and requires no new or increased general fund taxes. However, its passage was keyed to a motor license fund revenue raising measure also approved and signed by the governor the same day. That measure, SB 10, raises an additional $95 million in truck and various car registration fees.

It also raises the weight limit for trucks to 40 tons.

The general fund budget was inserted into a Conference Committee Report on HB 1623, a $92 million deficiency measure for 1979-80. It cleared the Senate by, a vote of 33-15 after adoption by the House.

As cleared by the General Assembly, the document differed from the governor's proposed budget in that $12.5 million was appropriated to the Department of Aging for senior citizen programs. A supplemental $2.3 million appropriation was approved later in October. The governor had recommended this funding come from the state lottery, a recommendation severely challenged
by senators who felt an unpredictable funding base would jeopardize all senior citizen programs.

The Senate had also added some $11.5 million to the budget for in lieu of tax payments to various municipalities that contain state facilities.

This municipal overburden appropriation was part of the governor's $38.6 million veto. It would have meant an additional $6 million for Philadelphia, $4 million for Allegheny County, $428,000 for Scranton and lesser amounts to a number of other municipalities.

The new budget includes $24 million for county court costs, which in the past were paid by federal revenue sharing funds. Other features of the budget include, reducing aid to the state's nine general hospitals from $5 million to $2 million; increasing the appropriation for the Pennsylvania
Industrial Development Authority from $15 million to $18 million; and setting basic school subsidies for the state's 505 school districts at $1.494 billion, or 42 percent of total costs.

The $6 billion general fund budget for 1979-80 was contained in SB 499, a measure gutted in a conference committee and amended to become the budget document. It was approved by the House 103-94 and the Senate 47-2 four days after the fiscal year June 30 deadline had passed. It was signed by the governor July 4.

Unlike the general fund budget for 1980-81, the 1979-80 budget encountered stiff Democratic opposition before passage. The budget depended on reenactment of the 2.2 percent personal income tax and the 10.5 percent corporate net income tax. These were to revert to 2 and 9.5 percent respectively by January 1, 1980. Democrats at least won a concession to have the taxes revert to these lower levels by January 1, 1982. The budget for 1981-82 should take this into account.

Also unlike the general fund budget for 1980-81, the 1979-80 budget transferred $57 million to the 1979-80 motor license fund for emergency road repairs.

***Non-Preferred Appropriations -- Besides appropriations for general government operations, the Senate approved a series of non-preferred appropriation bills totaling some $337 million for state related educational, health and cultural institutions for 1980-81.

In signing the bills, the governor declared that he was heading into a $33 million deficit next year. Though obligated to trim these requests to balance the budget, the governor chose instead to threaten a 10 percent reduction in the non-preferreds if certain revenue raising measures were not approved by the legislature and the Liquor Control Board.

The governor sought passage of HB 2597, a measure to raise various licensing fees by $15 million. This bill died on the table in the House. The governor also sought an additional $26 million from the LCB through an added 10-cent bottle handling charge and a reduction of discount rates. This was refused on the basis that it circumvented the legislature to impose a thinly disguised tax increase. Instead, the LCB agreed to revise its prices, upward and downward, to improve profits.

With this agreement, the governor rescinded his order to cut the non-preferred appropriations by 10 percent by October 1 through reenactment of the non-preferred appropriation bills. Among the major appropriations are: $127 million for Pennsylvania State University, up from $120.1 million last year; $79.4 million for Temple University, compared to $75.5 million last year; University of Pittsburgh, $71 million, compared to $67.5 million; Lincoln University, $4.2 million, compared to $3.7 million; Drexel university, $3.8 million, compared to $3.6 million; and the University of Pennsylvania, $20.4 million, compared to $19.1 million.

The non-preferred appropriations for 1979-80 totaled $315.5 million.

***Motor License Fund -- On June 30, the governor signed the $996.8 million road budget for 1980-81 which became Act 22A. Earlier that same day, the Senate had unanimously concurred with House amendments to SB 1240, the document for the motor license fund budget. It is 6.4 percent less than the past year's $1.053 billion budget, despite the addition of $95 million in new revenue.

The highway budget was dependent on earlier passage of SB 10, the measure which will raise an additional $95 million through increased truck and car registration fees. This legislation also permits heavier and longer trucks on the state's roads.

Money for bridge and road maintenance is to be distributed according to a formula based on need after a base allocation of $485 million is made. However, the new budget allocates $385.2 million for highway repairs, well below the formula-triggering amount and below the $411.6 million
allocated last year. Some $71.3 million is earmarked for new construction compared to $73.4 million last year.

State Police will receive $100 million, compared to $94.6 million last year. Another $44.8 million will go to the State Police from the general fund budget. No money will be transferred from the general fund to the highway fund this year. Last year, such a transfer added $57 million for road maintenance.

Also provided in the budget is $167.4 million for debt service payments for debts incurred in the 1960s for new highway construction.

A $1.1 billion fund to repair the state's roads and bridges in 1979-80 was contained in SB 498, which the governor signed after line item vetoing nearly $68 million.

The 1979-80 highway budget was beefed up by an additional $115 million from the two-cent-a-gallon increase in the gasoline tax which now stands at 11 cents a gallon. This added revenue plus a $57 million transfer from the general fund pumped $172 million in new money into the highway fund.

***Urban and Rural Mass Transit Aid -- The high cost of gasoline and cars in recent years has increased the importance of our mass transit systems. To this end the Senate approved SB 881 which would expand state aid for mass transit systems from the current $113 million up to $234 million annually within five years. The measure was signed by the governor as Act 101 on July 10.

Essentially, the new law increases state aid from a maximum of two-thirds to three-fourths of the non-federal share of the operating losses for each public transit system. A major impact of the bill expands the use of lottery funds by $13 million for the senior citizen mass transit program, whereby senior citizens use the transit system at free or reduced fares during off peak hours. The added $13 million will go to counties other than Philadelphia and Allegheny -- where the program already exists -- to contract with private carriers to provide this service for senior citizens.

In signing the bill, however, the governor vetoed some $8.6 million earmarked for emergency transit aid. About $5.4 million was to go to Philadelphia's SEPTA, $2.6 million for Pittsburgh's PAT, and a total of $687,000 to other transit systems throughout the state.

**Capital Budget -- The capital budget for 1980-81, HB 2920, was approved by the Senate 48-1 and concurred in by the House 176-10 Nov. 19.

It authorizes $378.5 million for projects at various state colleges and office buildings.

Included in the measure authorizing the sale of bonds to finance the improvement and construction projects are a $22.6 million authorization to rebuild Philadelphia's coal pier 124 and $10 million for Erie's coal port. The facilities are to be acquired from and leased back to Conrail to
retire the debt service. These projects are expected to boost coal loading capacities more than threefold, a development that should stimulate mining in all the coal regions of the commonwealth.

Some $5 million will be used to make improvements in and around the state's Farm Show complex in Harrisburg.

Renovation projects totaling about $145 million are slated for the various state colleges. Also, the Department of Environmental Resources is authorized to raise $54.4 million for state park improvement projects.

Another project is a new state office Building in Harrisburg's Harristown area that would be restricted for state office use only. The cost would be $43.3 million. A total of $37.4 million is authorized for improvement projects at state prisons, and $42.5 million for projects at state hospitals. Transportation assistance projects throughout the commonwealth would total about $46 million. The last day for action by the governor on this legislation is Dec. 20.

Another capital budget measure for 1980-81, ***HB 2919, totaling $138 million, was approved by the General Assembly and signed by the governor.

Of the total, $113 million is for public improvement projects by the Department of General Services and $25 million for transportation assistance projects.

***Federal Revenue Sharing -- Passage of HB 2794 by a unanimous vote in the Senate and concurrence by the House cleared the way for an expenditure of $57.8 million in federal revenue sharing funds for 1980-81.

The measure, which the governor signed on December 5, appropriates $43.8 million in federal revenue sharing funds to school districts and intermediate units for aid to exceptional children. Another $14 million in federal funds will go to municipalities for the construction and repair of sewage treatment plants.

The bill also provides for additional appropriations from the general fund for 1980-81. These include $1.3 million for general government operations of the state Emergency Management Agency and an additional $200,000 for the Pennsylvania Crime Commission, boosting the commission's appropriation for 1980-81 to $2 million.

A total $985,000 is appropriated from the Motor License Fund for liquid fuel tax refunds in cases where vehicles were used for agricultural purposes.

Federal revenue sharing funds for 1979-80 totaled $110.8 million which were allocated in ***HB 1328.

***Federal Augmentation -- HB 2724, now Act 23 A, appropriates $2.2 billion in federal augmentation money for the state's 1980-81 budget.

This includes $168,756,000 for Title XX health and welfare programs. Some $30,141,000 derives from the Comprehensive Employment and Training Act (CETA) and funds public service employment programs for the hard core unemployed.

Another $7.8 million comes from the Law Enforcement Assistance Act (LEAA) and funds various programs to deter crime.

The federal augmentation for the 1979-80 budget totaled $1.5 billion and was contained in ***HB 1300. It was amended to add another $140 million by the passage of ***HB 1905. Included in these funds was an appropriation of $84 million for energy assistance to low-income citizens.

**Funding For PUC -- The Public Utility Commission was given a $17.26 million budget for 1980-81, or a four percent increase over the previous year. The PUC budget is currently set by the lowest of three recommendations made by the House and Senate appropriations committees and
the governor. In this case, the lowest recommendation which took precedence came from the governor.

However, a conference committee report on HB 1787, adopted by the Senate and House Nov. 19 and upon which the governor has until Dec. 20 to act, will make the PUC budget subject to approval by the General Assembly.

This measure to make the PUC's budgetary process similar to other state agencies -- through the passage of appropriation legislation -- originated as a Senate amendment to HB 1787.

The PUC budget, which is funded through assessments on utilities, was thought by most senators to require a 12 percent increase in its budget, if various consumer protection services, initiated in recent years, were to be preserved. The Senate noted that rate increase requests from all major utilities have been flooding the PUC. Also, the agency has been bogged down with proceedings against Metropolitan Edison Co., stemming from the 1979 accident at the company's Three Mile Island nuclear power plant.

Therefore, the Senate felt a fairer budget for the PUC could be shaped if it went through the same legislative process as the general fund and motor license fund budgets.

***Special Election Funds -- Decisions by the governor and the state House Speaker to hold eight special elections before the April 22 primary necessitated legislation to appropriate $550,000 to reimburse county boards for special election costs.

The out-registered Republicans evidently sought a political advantage in holding elections before rather than during the April 22 primary because voter turnout would be less. The Senate majority Democrats, expressing strong disapproval of this tactic, nevertheless approved HB 2123 so that the counties would not be victimized financially by the special elections.

The measure (Act 5A), signed by the governor May 19, appropriated $300,000 to county boards of elections to cover costs for seven special state House elections March 11. Another $250,000 went to counties in the 11th congressional district for an April 9 election.

**Revised Public Library Funding -- A bill to revamp the state's aid formula for public libraries was approved by the General Assembly and sent to the governor Nov. 19. The new formula, contained in SB 455, will permit full use of the current fiscal year's $9.8 million appropriation for public libraries.

The old formula for aid to various local, district and county libraries had become a barrier to distributing the full amount of aid as annual appropriations increased. If the old formula were not changed, it is estimated that nearly $2 million of the 1980-81 appropriation would lapse.

Under the new formula, ceilings are converted to minimums. For example, aid to qualifying local libraries, previously limited to 25 cents per person living in the library's district, would now be at least 25 cents per capita.

Also, a certain percentage of the total state allocation would now go to small local and district libraries.

**Cancer Fund and Money for the Aged -- The governor has until Dec. 20 to act on HB 1786 which amends the general fund budget for 1980-81 to provide $500,000 to establish a state tumor registry. It also increases this year's appropriation to the Department of Aging by $2.3 million. Reductions for institutional and non-institutional medical assistance payments were made to offset increases to the Department of Aging. The measure also appropriates $10,000 to the Museum Commission for use by the Franklin Institute to write a history of Pennsylvania's contribution to aviation.

TAXES AND FINANCE

***Increased Truck Weights and Fees -- Passage of the state's general and highway fund budgets this year was keyed to the passage of legislation to add $95 million in state highway revenues. Senate Bill 10, which raises truck and various car registration fees, also increases the allowable truck weight from 73,280 pounds to 80,000 pounds and truck length by five feet.

A conference committee report on the bill was adopted by the Senate June 3 by a narrow 26-22 margin, and it became Act 68 with the governor's signature June 8.

The larger truck aspect of the bill drew negative votes from most western senators, who claimed the additional money would be more then wiped out by excessive road damage. They also feared safety hazards on the hilly western roads.

An attempt was made to appease western opposition by including a formula in the bill that would allocate a portion of the highway maintenance money on the basis of need. However, that formula will not be triggered by this year's allocation.

Of the $95 million in new revenue, $30.6 million will come from increased truck fees based on weight classifications. Other fee increases and the amount of revenue expected are, out-of-state truck markers, $2 to $25, $11.4 million; title fees, $5 to $15,$28 million; temporary license fees, $1
to $5, $4.4 million; information concerning drivers and vehicles, $2.50 to $5, $4.7 million; inspection sticker fees, 25 cents to $1, $11 million; and a new fee to have suspended licenses reinstated, $25, $5 million.

Soon after the new law went into effect, the trucking industry entered suit in federal court seeking to have declared unconstitutional a provision of the law requiring trucks entering Pennsylvania to have inspection stickers either from Pennsylvania or another state.

A temporary restraining order was granted, suspending the inspection requirement, and the order was continued following a hearing Nov. 3, 1980, in federal court in Harrisburg. A final ruling on whether or not the injunction will be made permanent is not expected until January or February of 1981.

***Personal, Corporate and Gasoline Taxes -- Two general fund taxes were continued at their current rate and the gasoline tax was increased with the enactment of HB 404, the tax package pushed by the Republican administration to support the general fund and motor license fund budgets for 1979-80.

The budgets were approved July 4, four days after the close of the previous fiscal year.

The tax package continued for two years the 2.2 percent personal income tax and the 10.5 percent corporate net income tax. They are scheduled to revert to 2 and 9.5 percent respectively Jan. 1, 1982.

The measure also hiked the nine-cent-a-gallon gasoline tax by two cents, pumping an additional $115 million into the 1979-80 highway fund. It also added a surcharge to the utility realty tax to recover $180 million that would have been lost because of an unfavorable court decision on the utility tax law.

**(Constitutional Amendment) Real Estate Tax Break -- House Bill 1, upon approval by a voter referendum, will give a tax break to Pittsburgh and Philadelphia property owners who can't cope with rising real estate values caused by urban renewal projects. Long-time residents of neighborhoods sudden IT made fashionable often find they can't meet the subsequently skyrocketing real estate values, brought on by renovation. Under this constitutional amendment, those residents will be given a 'freeze' on their real estate taxes (until the homes are either sold or transferred in an estate) .

The Conference Committee Report on House Bill 1 was signed in the House on July 8 and in the Senate on July 9. It must be approved by the next session of the General Assembly before voters decide whether to amend the constitution

***Exemption For Gasohol -- The production of gasohol may be encouraged in Pennsylvania with the passage of Senate Bill 1011 (Act 129). The measure exempts alcohol manufacturers from paying an annual $2,500 license fee if their product is for machines instead of people. Instead, they will have to pay a $25 registration fee.

**Utilities Gross Receipts Tax "Freeze" -- The legislative session that ended .November 19 saw an attempt by the Senate and House to place a "cap" on the gross receipts tax paid by customers of the state's utilities.

This provision was part of House Bill 769 which cleared both houses (the Senate on October 1, 1980, and the House on May 7, 1980) but died when the House failed to concur or non-concur on a Senate amendment before the session ended.

The gross utilities tax "freeze" would have empowered the Public Utility Commission to adjust the tax rate (now 4.5 percent) to produce revenue that would be equal to that due and payable for the 1979-80 fiscal year, or about $370 million. Such an adjustment would have resulted in an estimated revenue loss to the commonwealth of $37 million in the  1980-81 fiscal year.

The bill also would have eliminated the gross receipts tax on revenues resulting from higher purchased energy costs stemming from an unscheduled outage lasting two or more months at a nuclear generating facility. In addition, House Bill 769 would have revised the definition of "taxable income" for purposes of the corporate net income tax.

A Senate amendment would have excluded from the state sales tax the sale at retail of supplies and materials to tourist promotion agencies.

Loss to the state from this exemption was estimated at about $223,000 for the 1980-81 fiscal year.

***State Payments to County Agencies -- House Bill 571 became Act 132 when signed into law on December 24, 1979. This bill provides for all state checks to various county agencies to be made payable to the county commissioners. Amended into the measure by the Senate were changes requiring funds to be credited to the proper agency and used only for the stated purpose. It also provides that in Philadelphia the checks be sent to the city treasurer.

**Sales Tax Exemptions -- Awaiting signature by the governor to become law is House Bill 606, passed by both the Senate and House

The bill amends the "Tax Reform Code of 1971" by exempting from the state sales tax such items as firewood sold at retail and intended for use as a fuel to heat residential dwellings, circulating wood burning or coal burning heaters, wood or coal furnaces manufactured in this country,
and the installation and retail costs of solar energy devices and the installation and retail cost of windmills or wind-powered devices.

The Senate amended the bill to exempt also from the sales tax the retail sale of supplies and materials to tourist promotion agencies which receive grants from the commonwealth. The House concurred in the amendment.

***State Investment Options -- Senate Bill 419, which became law (Act 115) on July 11, 1980, was part of a multi-bill package aimed at revamping investment policies of the Treasury Department.

The bill amends the "Fiscal Code" to expand the investment options of the Treasury Department to include the purchase of uncollateralized Certificates of Deposit from commercial banks and savings and loan associations domiciled in Pennsylvania.

The bill provides that investment regulations are to be adopted by the Board of Finance and Revenue, with the governor approving any move by the board with respect to the total amount invested. A House amendment (concurred in by the Senate) included the provision that Treasury, when purchasing CD's, shall take into account the differences, if any, in competitive bids, the financial strength of each of the bidders and the services provided to or at the request of the commonwealth or any of its agencies by each of the bidders.

***Utility Services-Tax Repeal -- Repeal of the 4.5 percent gross receipts tax on out-of-state sale of utility services (such as electricity) is provided for in House Bill 852 which was passed by both houses and became law (Act 107) on December 11, 1979.

***Tax Reform Code Amendments -- House Bill 1252, signed by the governor Dec. 8, 1980,represents a two-fold amendment of the Tax Reform Code of 1971. Revenue loss to the state from one amendment figures to be minimal; another provision of the bill could result in a sizeable income loss to the state.

The bill would exempt certain fish feed from the sales tax, with anticipated revenue loss seen as negligible.

An amendment to the bill provides for the deduction and carryover of the net operating loss in determining taxable income for corporate income taxes. The effect of this provision of the measure could produce a loss to the commonwealth of $16.5 million in the 1981-82 fiscal period, increasing to an estimated $28.4 million in 1984-85.

The House passed the bill on Dec. 4, 1979. An amended version was passed by the Senate on October 1, 1980, with the House later concurring in the Senate amendment.

***Railroad Tax Credits -- Senate Bill 915 became Act 24 on March 27, 1980. It grants a tax credit to railroads investing in roadbed improvements.

Twenty-five percent of the amount spent on maintaining or improving railroad rights-of-way in the state can be credited against the 4.5 percent gross receipts tax. The credit cannot exceed the amount of the tax due. The tax savings realized by the railroads must be used in the following year for maintenance of rights-of-ways.

**Tax Incentive to Industry -- Senate Bill 1172 is seen as an incentive to encourage Pennsylvania industries to expand and modernize facilities and also to lure out-of-state businesses to the commonwealth.

The measure, passed by the Senate on September 16, 1980 and by the House on November 18, 1980, would exempt industries from having to pay the state sales tax on the cost of constructing foundations for new plants which would house machinery and manufacturing equipment.

The bill was sent to the governor for his signature.

TRANSPORTATION

***Tri-Axle Truck Weights -- House Bill 34 became Act 147 when it was signed by the governor on October 10, 1980. In its final form, the bill amends the Pennsylvania Motor Vehicle Code to provide for weight distribution on tri-axle trucks and sets maximum gross weights and maximum axle weights. It establishes a three percent tolerance per axle when a vehicle is weighed with portable scales.

The bill limits maximum weight on a steering axle to 18,000 pounds, but on certain vehicles the maximum weight on adjacent axles is increased from 18,000 pounds to 22,400 pounds. Fines are provided for vehicles determined to be in excess of the axle weight limits. The bill also stipulates
that portable scales are to be calibrated every 30 days by the state Department of Agriculture.

The original purposes of the bill remain intact. It authorizes any person who is physically limited by a cardiopulmonary condition to apply for a special vehicle registration tag; forbids parking or leaving unattended a vehicle on private property without the consent of the owner (except in emergencies or in the event of a disablement) and establishes a 15-mile-per-hour speed limit in school zones.

The bill also provides that a tow truck used commercially must have the name of the business, or persons operating the truck, displayed on signs on both sides of the truck.

V Elimination of Driver's License Photograph -- There were two legislative attempts during the last session of the General Assembly to eliminate a provision requiring photographs as part of the state's driver's license. The Senate passed Senate Bill 837 but the measure never was
reported out of the House Transportation Committee.

The provision also was incorporated in House Bill 739 which passed both the House and Senate. However, the governor vetoed this bill and the House twice sustained the veto, first on January 22, 1980, and again on February 27, 1980. The photo license program will cost state drivers an additional $11 million a year.

***Expanded Free Transit Service For Elderly -- Monies from the state lottery fund will be earmarked for transportation companies, county transit systems and local transit organizations to subsidize free or reduced fare transit service for senior citizens under provisions of House Bill 2254.

This measure and a companion bill, House Bill 2255, were approved by the General Assembly and signed by the governor Oct. 17 into Acts 183 and 184. House Bill 2255 amends the state lottery law to permit the subsidization grants which are estimated to cost $3.8 million.

House Bill 2254 provides for grants to all counties in the commonwealth, other than First and Second Class counties, in 1980-81 and 1981-82 to develop mass transit systems to be used by persons 65 or over on a reduced or free basis. The amount granted for each fiscal year will be computed by multiplying a certain dollar amount by the number of elderly persons in the county. The multiplier is $9.50 for the first fiscal year and $4.75 for the second year. Philadelphia and Allegheny counties were not included because they already provide subsidized transportation for senior citizens.

***Interstate Rail Council -- House Bill 2231 became Act 75 when signed into law June 22, 1980. It established an Interstate Rail Passenger Advisory Council to promote improved rail service between Pennsylvania, Ohio, West Virginia, Indiana, Illinois, Michigan and Kentucky. The council consists of two representatives from each participating state, appointed by the Senate President Pro Tempore and the House Speaker.

***Handicapped and Veterans Parking -- Senate Bill 68 was signed into law on July 11, 1980, becoming Act 113. It provides for issuing special parking placards to handicapped persons and disabled veterans. The placards are to be displayed in the front window of a vehicle used by the person for transportation. The law also prohibits vehicles from parking in spaces
designated for the handicapped unless they bear handicapped or disabled veteran registration plates or parking placards.

**Pooled Bus Acquisition Program -- Senate Bill 381 passed the Senate October 7, 1980, and the House on November 19, 1980. It is awaiting the governor's signature to become law.
The measure provides for the commonwealth's participation in a pooled bus acquisition program by amending the Pennsylvania Urban Mass Transportation Assistance Law of 1967. It will permit PennDOT to participate in the program with transportation companies and the federal government,
with the latter providing four-fifths of the funding. Remaining costs will be shared by the state (one-sixth) and local sources (one-thirteenth).

The pooled bus purchase -program will enable 16 mass transportation authorities in the -state to purchase 1,000 new buses, with the cost to the commonwealth not to exceed $37.2 million. Purchase of spare parts also is included.

***Inspection Exemptions -- Senate Bill 508 was signed into law on June 18, 1980, becoming Act 67. It adds a number of vehicles to the list of those exempt from state inspection requirements. These include:  Trailers 3,000 pounds or less; mopeds; vehicles being repossessed
through the use of various motor vehicle business registration plates; new vehicles being tested.

The law also requires state inspections for mass transit vehicles which transport 15 or more persons.

***Studded Tires -- Senate Bill 696 became Act 95 on November 10, 1979, without the governor's signature. This law permits motorists to use tires with ice grips, or studs, for a six month period from  November until April 1, unless the period would be extended for safety reasons.

The law also provides penalties for violating the time limit.

*Passenger Safety -- The Senate passed Senate Bill 703 (49-0) on July 2, 1979. This bill was aimed at ensuring the safety of passengers on public passenger terminals.

The bill also would have prohibited disorderly conduct aboard public conveyances and authorized the removal of disorderly or intoxicated passengers from public vehicles and terminals, along with prohibiting possession of explosives or deadly weapons in terminals or public vehicles.

The bill died in the House Transportation Committee. *Evasion of Turnpike Tolls -- Senate Bill 804 was directed at persons attempting to evade payment of turnpike tolls, providing penalties for those apprehended. The bill passed the Senate (45-0) on October 15, 1979. The bill was reported out from the House Transportation Committee, then re-committed to that committee where it died.

***Philadelphia Parking Fines -- Senate Bill 1005 became Act 8 on February 15, 1980. This law prohibits the City of Philadelphia from collecting a $10 charge for costs from any person who pays the $15 parking fine within eight days of receiving a ticket.

*Blood Test for Alcohol -- The Senate passed Senate Bill 1060 on June 3, 1980 by a 48-1 vote. Under this measure, refusal by a person to submit to a breath or blood test to determine the amount of alcohol in his or her body could be admitted as evidence if that person was arrested. It also fixed at 0.10 percent the amount of alcohol in the bloodstream that would make a person under the influence to a point that renders him incapable of driving safely. The bill never was reported out of the House Transportation Committee.

**Turnpike Commission Salary Hike -- The Senate and House passed House Bill 2327 and the bill now awaits the governor's signature.

Initially, the bill authorized the Department of General Services to sell to the Turnpike Commission a tract of land in Bensalem Township, Bucks County, to provide for the construction of additional toll booths at the Philadelphia Interchange. It was amended in the Senate to include the
salary increase for appointed Turnpike Commission members.

If the bill is signed into law, it will increase the compensation of the commission chairman to $25,000 annually (from the present $17,000).

Other appointed members will receive $23,000 annually (present salary is $15,000). In addition, salaries of the secretary and treasurer will be increased to $24,000. The higher salaries apply only to newly-appointed commission members or those re-appointed to new terms.

LABOR AND INDUSTRY

***Unemployment Compensation --The severe recession of 1974-75, which sent Pennsylvania's economy reeling with the highest unemployment since the Depression of the 1930s, put the state's unemployment compensation fund in the red. The debt to the federal government reached $1.4 billion by 1980.

A measure to raise an additional $550 million next year to begin repaying the debt cleared the Senate by a 31-17 vote and was signed into Act 108 by the governor July 10. The unemployment compensation proposal inserted in the Senate into HB 1673 will provide about $400 million in increased business taxes and about $150 million through cuts in benefits. Actually, the $400 million business tax increase will be offset by increases in the federal portion of the UC tax. An anticipated loss of .6 percent in credit for the federal UC tax will mean an additional $160 million in taxes businesses would have had to pay whether or not HB 1673 was passed. This amount will now be included in the $400 million state UC tax increase.

The proposal as it came out of the Senate Rules Committee totaled $500 million, but amendments on the floor to add $50 million through more benefit cuts discouraged most Senate Democrats from backing the measure.

The new law increases the state UC maximum tax rate from 4 to 4.75 percent the first year, then up to 4.9 percent every year thereafter. Also added is a 1 percent surtax and a credit or penalty based on the unemployment record that pushes the total tax ceiling to 6.5 percent.

The current state UC tax is applied to the first $6,000 of an employee's earnings. The amended legislation increases the wage base to $6,300 for 1980-81 and $6,600 thereafter.

Under the new law, a person must work a minimum of 18 weeks at $50 a week to qualify for unemployment benefits. Persons who worked 18 to 23 weeks In a given year would be entitled to 26 weeks of benefits. Persons working 24 weeks or more would qualify for 30 weeks benefits. until now, 30 weeks of benefits applied to anyone unemployed.

Also, under the measure pension payments will be subtracted dollar for dollar from unemployment compensation payments. Additionally, the one week waiting period for benefits is reinstated. Workers will receive benefits for the first week if they are unemployed four or more weeks during the base year.

***Workmen's Comp for Emergencies -- House Bill 421 was signed into law July 11, 1980 and became Act 121. It extends Workmen's Compensation Insurance protection to volunteer firemen and ambulance corpsmen while enroute to or from emergencies. Existing law covered those volunteers when they were traveling between their stations and the scene of an emergency. The new law adds coverage if they respond to the emergency directly from their homes or places of business. It also covers paid firefighters who are members of a volunteer fire unit during off-duty hours.

In the past, they had been excluded from such coverage.

***Children in Motion Pictures -- House Bill 2527 (now Act 62) updates the Child Labor Law as it applies to motion pictures. It provides for special permits to be issued by the Department of Labor and Industry for minor children age seven to under 18 years of age to perform in motion
pictures. Their work would be limited to eight hours in one day or 44 hours in one week. The restrictions may be waived by the department if it is deemed necessary to preserve the artistic integrity of the film, without impairing the health or welfare of the child. The bill became law on June 7, 1980.

**Working Hours for Minors -- Senate Bill 1454 was passed by the Senate on July 1, 1980 and by the House on Nov. 18, 1980. It is awaiting the governor's signature to become law. Under this measure, children under 18 will be able to work until midnight on school days. Currently,
these minors are permitted to work only until 11 p.m. The bill also would permit 16 and 17 year olds to work until 1 a.m. on Friday and Saturday nights and on school vacation nights. At present, they are allowed to work only until midnight on such nights.

*Agency Shop -- The "agency shop" bill was passed by the Senate (27-20) on June 27, 1980 but died in the House State Government Committee.

It would have permitted public employee unions to negotiate for "agency shops". This would have required non-union members to pay dues to the union representing their bargaining unit.   Senate Bill 1445 would not have mandated the agency shop, only permitted it to be negotiated

BUSINESS AND COMMERCE

***Aid to Small Business - Senate Bill 1200 (Act 49) expands the role of the Pennsylvania Industrial Development Authority specifically to aid small businesses in their struggle to remain competitive with larger corporate establishments.

Low-cost PIDA loans are to be made available to small businesses for expansion and renovation and the amount of the loans to small businesses could reach 70 percent of a project's cost depending on unemployment statistics in the area. The previous maximum amount loaned by PIDA to any business was 40 percent of project cost.

A small business is now defined as any industrial, manufacturing, research and development, or agricultural enterprise that employs less than 50 full-time workers. It is estimated that out of Pennsylvania's 202,000 employers a large majority - 180,000 - employ less then 50 full-time workers.

***Bank Loans - House Bill 1805 (Act 51) provided for an increase in the maximum interest rate commercial banks may charge for direct consumer loans.

Such institutions now have the ability to charge a maximum interest rate of the federal discount rate plus five percent. Previously, the maximum allowable interest rate was the federal discount rate plus one percent.

Additionally, the legislation granted state chartered commercial banks and mutual savings banks the authorization to provide for variable interest rate mortgages, skip payment mortgages, graduated payment mortgages and reverse annuity mortgages - similar to the authority previously granted to savings and loan associations.

***Auto Financing - House Bill 2393 (Act 53) provided for an increase in the maximum finance charge auto dealers may levy for dealership financing of new car purchases by consumers.

The new maximum finance charge is tied to a formula indexed to the federal discount rate and applies to dealer direct financing for all new cars and trucks under 15,000 pounds.

The previous maximum finance charge for dealer direct financing totaled seven percent - which translated to an annual interest rate of 12.83 percent for a three year car loan.

Car dealers maintained the increase was necessary in order to maintain dealer direct financing of new car purchases as a viable alternative to other financing options.

**Second Mortgages - Senate Bill 1425, which was awaiting only the governor's initial action, would authorize, define, and regulate secondary mortgage loans in Pennsylvania.

It would permit banks and savings and loan associations to offer such second mortgages regardless of whether or not they are the holder of the first mortgage on the property.

The measure would permit secondary mortgages of $50,000 or less on residential property only.

It would allow qualifying financial institutions or other licensed persons to charge a maximum annual interest rate of 17.4 percent on such secondary mortgages.

***NOW Accounts - Senate Bill 1288 (Act 96) authorizes state-chartered savings and loan associations to offer interest bearing checking accounts - commonly referred to as NOW (negotiable order of withdrawal) accounts.

It becomes effective January 1, 1981 - the same date that federally chartered savings and loan associations are being permitted under federal law to begin NOW account service.

**Credit unions - Senate Bills 1427, 1428, 1429 all relate to state chartered credit unions. They were awaiting only the governor's final action.

Senate Bill 1427 would ease reserve requirements for state chartered credit unions. Such requirements would now be based on gross income rather than on a basis of net earnings.

Senate Bill 1428 is intended to provide state chartered credit unions with a reliable source of credit to meet cash flow needs by allowing them to invest in an insured central-type credit union to any amount, as determined by the board of directors.

Senate Bill 1429 would allow state chartered credit unions to increase interest rates on consumer loans to 15 percent if approved by at least two-thirds of the credit union's board of directors. The bill stipulates, however, that the authority to increase the interest rate above the existing 12 percent maximum will expire April 1, 1981. Unless continued by further legislation, the maximum interest rate would revert to 12 percent at that time.

*Retail Aid - Senate Bills 1494 and 1495 which passed the Senate, but failed to win consideration by the state House were part of a five-bill legislative package proposed by a special Senate committee which investigated 1979's rash of food store closings in Pennsylvania.

The two bills that cleared the Senate would have:
            --directed the state Department of Commerce to expand its programs of tracking and monitoring to determine those businesses - "including retail and wholesale operations" - which are likely to experience job cutbacks; and
            --granted tax exemptions to businesses, including retail, that revitalize deteriorated business property in urban areas.

***Movie Industry - Senate Bill 702 (Act 14 of 1979) established new procedures for the bidding and negotiation for motion pictures to be shown in Pennsylvania.

It prohibited the process of "blind bidding" whereby theater owners were in some cases being forced to make large deposits and sign contracts for films that had not been "trade screened" or given ratings.

***Home Improvement Loans - Senate Bill 825 and 826 (Acts 115 and 116 of 1979) allowed savings and loan associations and mutual savings banks to make home improvement loans at the same interest rate as that charged on Federal Housing Administration home improvement loans.

JUDICIARY

***Divorce Reform - House Bill 640 (Act 26) provides for the first substantial change in Pennsylvania's divorce statutes since 1785. It was one of the most controversial and emotional issue to be addressed by the General Assembly this session.

Key elements of the new law provide for mutual consent and unilateral no fault grounds for divorce, alimony to the dependent spouse where appropriate, and the equitable division of marital property after divorce.

Mutual consent no fault divorce would be granted three months after both parties file a complaint mutually agreeing or alleging that their marriage is irretrievably broken.

The modified unilateral no fault divorce provision would permit one party to obtain such a divorce over the objections of the other spouse, but based on the following conditions:
            --both parties had lived separate and apart for at least three years,
            --counseling options had been exhausted,
            --and, depending on whether the court found, following a hearing on both parties' arguments, that the marriage is irretrievably broken with no reasonable prospects for reconciliation.

Counseling under the unilateral no fault provision would be mandatory if either party requested it. If there are children under the age of 16, the court would have the power to order counseling for the husband and wife regardless of whether or not either party requested it.

The division of marital property, and whether or not there is to be an award of alimony to the dependent spouse, would be based on a wide range of factors - including, but not limited to, the homemaker's contribution to the marriage.

Additionally, the new law retains some previous law which will allow for the continuation of fault grounds for divorce in those cases where there is an injured and innocent spouse. An injured or innocent spouse will still be able to obtain a fault divorce if there are grounds of desertion, adultery, cruel and barbarous treatment, bigamy, imprisonment for a crime and indignities.

***Juvenile Crime -- House Bill 1850 (Act 12) marked a legislative attempt to give judges more authority to treat violent juvenile offenders as adults.

The new law makes clear that juveniles with no prior adjudications can be transferred to adult court depending on the seriousness of the crime committed and the degree of criminal sophistication.

Additionally, the measure allows for the fingerprinting and photographing of juveniles alleged to have committed felonies or firearms violations.

Fingerprints and photographs are to be expunged if the juvenile is not adjudicated.

***School Violence/Pornography -- The Senate and House adopted, and the governor signed into law (Act 167) a conference committee report on Senate Bill 544 dealing with the separate issues of school violence and pornography.

In an effort to deter assaults on teachers and other violence on school property, the measure makes it a misdemeanor of the first degree, punishable by a prison sentence of up to five years, for assaults on teachers, school board members, or other school employees. The same penalty would apply to anyone found with a weapon on school property. Repeat offenders could face a jail term of up to seven years.

The anti-smut provisions of the new law seek to:
            --make it possible for law enforcement officials to make arrests on obscenity charges without the need for a court injunction banning a particular item;
            --prohibit bookshops, movie theaters and other businesses from displaying "explicit sexual" materials "where minors, as a part of the general public or otherwise, are or will probably be exposed to view all or any part of such materials";
            --increase from two to five years the maximum term of imprisonment for persons convicted of obscenity charges.

**Deadly Force -- House Bill 401 would make it justifiable for homeowners to use deadly force to protect their lives and property if they believed an intruder had made an unlawful entry into their home and if they felt anything less than deadly force was inadequate to terminate the entry.

The bill was awaiting final action by the governor.

Under existing law, it is justifiable for a homeowner to use deadly force against an intruder only if he believed the intruder was going to commit a felony and that deadly force was necessary to prevent it.

***Drug Paraphernalia -- Senate Bill 634 seeks to crack down on so-called "head shops" by prohibiting the possession, manufacture, and sale of drug related paraphernalia.

The measure won final legislative approval in the last week of the session when the Senate voted to accept House amendments to an earlier version. The governor signed the bill Dec. 4, 1980.

Under the bill, persons found guilty of using, possessing, delivering, or advertising drug paraphernalia would face a fine of up to $2,500 and/or a jail term of up to one year.

Persons 21 years of age or older found guilty of delivering drug paraphernalia to persons under the age of 18 would face a fine of up to $5,000 and/or a jail term of up to two years.

The bill defines such paraphernalia as equipment related to the production and use of illegal drugs and it lists numerous examples. The courts are given guidelines to determine whether an item is a drug related device.

***Attorney General Powers -- House Bill 962 (Act 164) delineates and defines the duties and powers of Pennsylvania's new office of elected attorney general.

It provides that the elected attorney general will continue to exercise all of the criminal investigation and prosecution powers as his appointed predecessors, including the power to supersede a local district attorney when the state attorney general can prove that the local DA had abused his office by refusing to prosecute.

The attorney general would represent the state in all litigation and would defend the constitutionality of statutes.

In addition, the attorney general would have the following powers and duties:
            --to administer the consumer protection laws and to appoint the Consumer Advocate and the Director of the Bureau of Consumer Protection;
            --to render legal advice which shall only be binding on state agencies when such advice was requested by the agency;
            --to review for form and legality, all proposed rules, regulations, deeds, leases, contracts and bonds;
            --to serve as a member of the Board of Pardons, the Joint Committee on Documents, the Hazardous Substances Transportation Board, the Board of Finance and Revenue, the Pa. Commission on Crime and Delinquency, the Pa. Emergency Management Agency, the Civil Disorder Commission, and the Municipal Police Officers Education and Training Commission.

The attorney general's salary is set at $55,000.

In addition to establishing the new duties and powers of the state attorney general, the new law also provides for the creation of an Office of General Counsel which would be administered by an attorney appointed by the governor.

The general counsel would advise the governor and appoint assistant~ to advise each "executive agency".

In matters of litigation, the governor's general counsel has been given the authority to intervene at the trial level along with the attorney general.

The general counsel would also serve as chief administrative officer for several agencies, boards, and commissions which previously were within the jurisdiction of the attorney general.

The general counsel would have jurisdiction over the Bureau of Corrections; the Juvenile Court Judges! Commission; Administrator for Arbitration Panels for Health care; Crime Victims Compensation Board; Board of Commissioners on Uniform State Laws; and the State Health Facility Hearing Board.

The general counsel would also have the following powers and duties:
            --to initiate or defend legal actions where the attorney general fails to do so;
            --to defend litigation brought by the attorney general against the governor or any executive agency;
            --to appeal any adverse decisions of the attorney general affecting any executive agency;
            --to issue necessary rules and regulations.

The general counsel would also sit on the State Board of Finance and Revenue as would the attorney general.

The general counsel would have the power to review for form and legality, all proposed rules, regulations, deeds, leases, contracts and bonds along with the attorney general.

***Superior Court Expansion -- House Bill 2000 (Act 63) implemented the November, 1979 voter approval of a constitutional amendment which authorized an increase in the size of the. state Superior Court.

The legislation expanded the Superior Court by eight members from its previous seven judges to 15.

The law provides that the eight additional judges are to be appointed by the governor and subject to Senate confirmation. Not more than four of the eight appointees can be members of the same political party. (As of the end of the session, six nominees - three Democrats; three Republicans - had been confirmed by the Senate.)

***Supreme Court -- House Bill 2184 (Act 137) was intended to help reduce the workload of the state Supreme Court.

The measure limits the mandatory appellate jurisdiction of the state's high court.

Orphan's court matters were to be transferred to the jurisdiction of the recently expanded state Superior Court. Cases of direct criminal contempt were to be transferred either to the state Superior or Commonwealth Courts depending on the nature of the original action.

The state Supreme Court will continue to have exclusive appellate jurisdiction in the following matters:
            --homicide where the death penalty has been imposed;
            --the right to public office;
            --supercession of a district attorney;
            --power of state and local government to create debt;
            --constitutionality of state or federal laws;
            --attorney discipline.

***Jury Selection Reform -- House Bill 227 (Act 78) increases compensation for jurors and provides for comprehensive jury selection reform.

Under the compensation provisions jurors would receive the existing $9 per day for only the first three days of jury service and $25 per day for each day of jury service thereafter during the course of any given year.

In an effort to encourage expedient selection of jurors for trials, the state would reimburse the county 80 percent of the juror compensation cost beyond the first three days of service if the juror is participating in a trial by the fourth day.

In other words, the county would only have to pay $5 per day per juror instead of the full $25 per day per juror after the third day o~ a juror's service if the juror had been seated to hear a case by that time.

Additionally, jurors would be compensated for mileage at the rate of 17¢ per mile instead of the existing 7¢ per mile.

The new law also establishes a uniform jury selection procedure for all counties.

In all counties, with the exception of Philadelphia and home rule counties, jury selection commissions consisting of three members would be created to prepare master lists of prospective jurors and to select prospective jurors. The commission's chairman would be the President Judge of the county. The other two members would be elected by the voters.

Home rule counties would be able to choose the composition, method, and manner in which the three member jury selection commission panels would be chosen.

In Philadelphia, which is a home rule county, the jury selection commission could consist of a maximum of six members.

The legislation also provides for:
            --the establishment of qualifications for jurors. Primarily, a juror could be any citizen over the age of 18, except if he or she is incapacitated mentally or physically, does not speak English, or has been convicted of a serious crime.
            --the establishment of penalties for employers who seek to discourage or prohibit an employee from serving on a jury.
           --the establishment of penalties for juror tampering or attempted influence on a juror's deliberations of a case.

***Victim/Witness Intimidation -- Senate Bill 812, which was signed by the governor -December 4, 1980, makes Pennsylvania the first state in the nation to enact a clearly defined and stringent law to guard against the intimidation of witnesses and victims of crimes.

Under the measure - force, violence, deception, bribery and conspiracy are outlined as a means of witness/victim intimidation which would be treated as felonies of the third degree punishable by up to seven years imprisonment.

The legislation stipulates that a person would be guilty of witness/victim intimidation and of obstructing criminal justice if:
            --he prevents or attempts to prevent a witness or victim from reporting a crime to authorities;
            --he forces or attempts to force a witness or victim to give false or misleading information or testimony that would divert or corrupt the criminal justice system;
            --he induces or attempts to induce a witness or victim to hold back some of the information they may possess;
            --he influences or attempts to influence a witness or victim to avoid service of a subpoena or to ignore a request to come forward; and
            --he tampers or attempts to tamper with a witness or victim who is under subpoena to the point that he or she "skips town" to avoid testifying.

***Change of Venue Alternative -- House Bill 55 (Act 25) provides courts with the option of impaneling juries from outside the county and transferring them to the local county in criminal cases where the court determines that a fair and impartial jury cannot be impaneled locally.

This alternative to a change of venue for the entire trial is seen as a cost saving measure. Instead of transferring the entire trial - which would necessitate time and travel by witnesses, attorneys, etc. - this will afford local courts the option of having the trial go forward in the county where the crime occurred, while still answering objections to the selection of a jury. The jury would be selected from another county.

All costs for transportation of the jury from another county to the county of the trial would be paid for by the county where the charges were brought.

***Criminal Information -- House Bill 830 (Act 127 of 1979) provides for complete access to criminal history record information to anyone.

The information is limited to that collected by criminal justice agencies through criminal proceedings consisting of identification, and dates of arrests and charges, indictments and court decisions.

Intelligence, investigative and treatment information is not accessible.

This measure also provided that a sentencing court may require certain defendants to participate in community service programs as a condition for probation.

**English Rule -- Senate Bill 1367, which was awaiting the governor's final action, would abolish the so-called "English Rule", a 13th century English legal principle upheld by Pennsylvania case law.

In effect, the bill provides that a person who has been sued without probable cause may now be permitted to countersue for wrongful initiation of civil proceedings.

*Rape and Domestic Violence -- Senate Bills 744, 745, which passed the Senate but failed to win final consideration by the state House, would have established a statewide Office on Crime Victims with the specific intent of providing for a reliable source of funding for Pennsylvania's 45 local and regional rape crisis and domestic violence shelters.

Funding would have been made possible through the imposition of an . additional $10 fine on criminals coupled with a $5 increase in the fee charged for marriage licenses.

***Bus Driver Protection -- House Bill 1624 (Act 139) increases the criminal penalties for assaults on the operators of taxi cabs, buses and other public transportation vehicles.

Such an assault committed against a person operating a vehicle used in public transportation is now considered aggravated assault, subject to a maximum penalty of ten years in prison.

***Additional Judges -- House Bill 960 (Act 106) provides for an additional 14 judges in various judicial districts of Pennsylvania.

One additional judge would be seated in each of the following counties; Erie, Bucks, Westmoreland, Chester, York, Lycoming, Lehigh, Mercer, Montgomery, Monroe/Pike, Butler and Lebanon.

Two additional judges are authorized for Delaware County.

*Crime Should Not Pay -- Senate Bill 473, which passed the Senate but failed to win consideration by the state House, would have mandated that any money a convicted criminal receives from a publishing company or filmmaker for the so-called "inside story" of his crime would be turned over to the state's crime victim's compensation board for distribution to the victim of the crime.

HEALTH AND WELFARE

**Welfare Reform -- The Senate approved House Bill 2044, the welfare reform measure aimed at expanding job opportunities and reducing the number of able bodied recipients, by a vote of 42-5 on Oct. 7. The bill then died when the House failed to concur in Senate amendments.

The Senate-amended bill differed from the plan advanced by the governor and passed earlier in the Republican controlled House which called for the sudden termination of 93,000 people from general assistance whether or not they could find jobs to sustain them.

As approved by the Senate, HB 2044 provided that general assistance recipients would continue to receive the $172 a month dole unless they refused available jobs. Certain job incentive programs run by the state were to be expanded to give more welfare recipients the opportunity to drop off the rolls. A key amendment to the bill required all able bodied recipients to accept 50 hours a month of work at municipal, county, or state jobs in their home counties in exchange for their monthly welfare checks.

Another provision of the bill gave a 30 percent income tax credit to businesses that hire recipients.

The bill also contained a provision to appropriate $28 million to counties for state mandated child services programs. The Welfare Department appropriation for this program had been cut from $101 million in 1979-80 to $88 million in 1980-81, a cut which county officials have said imperils
continuation of their child services programs.

***Blood Donations -- Senate Bill 1003 enables 17 year olds to donate blood without having first to obtain parental permission. Before this measure became law, the age of consent in donating blood was 18. This bill was signed into law on June 7, 1980 as Act 58.

V Cutbacks and Closings -- Senate Bill 581 would have prohibited the closing of state nursing schools and hospitals, or the cutting back of services and staff without legislative approval .. The state Welfare Department would have to hold public hearings at least 30 days before making a
decision to close -- or transfer control of -- any hospital, nursing school or similar institution funded by the General Assembly. Plans to reduce services or staff by more than five percent would also be subject to public hearings. Cutbacks could not be made if either the House or the Senate disapproves.

This bill was introduced last year -- and approved by the Senate -- in direct response to Welfare Department plans to close three nursing schools
            --Ashland, Philipsburg, and Hazleton--in the hard coal region. The department was also floating plans to cut about 1,000 jobs by removing full-time chaplains and farming operations, which make up the services at state hospitals.

The department also said it planned to close Retreat State Hospital in Luzerne County, and transfer control of Scranton State Hospital to private hands. Those announcements triggered protests and demonstrations because residents of the affected areas feared the additional loss of jobs would further strain an already poor employment situation.

The governor's veto of SB 581 came as no surprise. As soon as the bill was introduced in the Senate, the governor made it known that he planned to veto the measure.

***Boarding Home Licensing; Welfare Fraud Crackdown -- House Bill 552 requires the state to enforce a 14 year old law on the licensing and regulation of Pennsylvania's 6000 personal care boarding homes. Homes in this state have not been inspected for the past 14 years.

Under this new law, the Pennsylvania Welfare Department has three months to submit a preliminary boarding home enforcement program to the legislature, and six months to submit a permanent plan. Under the 1966 law, homes had to be inspected annually. Under this new law, only 75 percent of all homes must be inspected every two years. No home will go more than three years without an inspection.

This law also has an extensive section on Medicaid abuse. It gives the state Welfare Department and the state Justice Department more power over Medicaid fraud. It cracks down on all providers (such as physicians, pharmacists, clinical labs, suppliers, etc.) and recipients who abuse the Medicaid system. It especially aims to curb fraud in shared health facilities. This law sets criminal and civil penalties for a wide variety of prohibited acts by specifying different kinds of fraud.
The governor signed this law on July 10, 1980 as Act 105.

***Health Care Facilities Inspections--House Bill 1683 coordinates state inspections of health care facilities other than personal care boarding homes. It establishes a single authority to handle the licensing of various health care facilities throughout the state, such as nursing homes, community hospitals and state hospitals. Until this new law there was much confusion created by the many different licensing laws governing the different types of facilities.

This law also updates the relatively new Certificate of Need -- a federally required law that gives the state final authority to approve hospital expansion projects. Its main thrust is to curb overbuilding of health care facilities and consequently rising hospital costs. Although just recently passed, the federal government has already laid down some new requirements for Certificate of Need. House Bill 1683 will satisfy those new requirements and save Pennsylvania the risk of losing federal health funds.

This law was signed by the governor on July 12, 1980 as Act 136.

***Wrestling, Boxing --" Senate Bill 226 enables 12 year olds to participate in amateur boxing and wrestling matches, provided they receive parental permission. This law also enables 16 year olds to wrestle or box in amateur competition if one state athletic commissioner approves. This bill was signed into law on July 11, 1980 as Act 114.

***Amending Public Welfare Code -- Senate Bill 502 deletes the requirement that the Commissioner of Mental Health have at least seven years training and experience in the care of patients and requires instead that the commissioner only have broad administrative experience in the mental health field. It also takes away the commissioner's entitlement boa five year term.

Secondly, this law stipulates that no general assistance shall be paid to any full-time student at a college or university who has not participated in a federally-subsidized program for dependent children within the past five years.

This law was signed on December 7, 1979 as Act 102.

**Drug, Alcohol Treatment -- Senate Bill 579 would require that alcohol and drug dependent persons receiving public assistance participate in existing treatment programs if they cannot work. The Senate non-concurred in House amendments and the House took no further action.

*More Welfare Crackdowns -- Senate Bills 587,588 and 589 deal with cracking down on public assistance fraud.

Senate Bill 587 would increase the penalties for public assistance fraud.

Senate Bill 588 would provide that the penalty provisions of public assistance fraud be printed on small cards and given to every applicant or recipient of public assistance and be read to the applicant by the caseworker.

Senate Bill 589 would provide that anyone convicted of giving false information on an application for public assistance will be ineligible for cash or medical assistance for one year.

These bills passed the Senate Nov. 1, 1979 and died in a House committee.

**Anti-Abortion Funding, Youth Service Funding -- Senate Bill 1436 would bar the state from funding abortions, except in cases of rape, incest or when a mother's life is in danger. It would also appropriate about $28 million to county children and youth services across the commonwealth. This bill was in the hands of the governor on November 19, 1980.

*Removing Welfare Liens -- Senate Bill 1 would remove all existing liens and prohibit future liens the Welfare Department places on the homes of people on general assistance or Aid for Families with Dependent Children.

It passed the Senate Nov. 14, 1979 and died in the House Appropriations Committee.

***Eastern Pa. Psychiatric Institute -- House Bill 396 -- a conference committee report -- authorizes the state Welfare Department to contract with one or more medical schools to operate the Eastern Pennsylvania Psychiatric Institute, located in Philadelphia. This bill also authorizes the leasing of certain property for the purposes of the institute. The governor approved this bill on December 3, 1980 as Act 185.

***Certificate of Need -- House Bill 308 implements requirements of the federal health facilities planning laws by establishing a central health planning agency (the Department of Health) and setting guidelines for a program to control hospital expenditures. permission of the department would be needed before a health facility could make a capital expenditure or add a new service. This measure was signed into law July 19, 1979 as Act 48.

***More Money for the Blind -- House Bill 1222 gives a $60 per year increase to blind Pennsylvanians receiving state blind pensions. The bill also raises the annual eligible income from $4200 to $4260. This bill was signed on April 6, 1980 as Act 37.

**Updating Optometry Licensing -- Senate Bill 770 essentially creates a new Optometric Licensing statute. This bill expands the powers and duties of the Board of Examiners. Under this law, beginning in 1982, optometrists applying for license renewal will have to submit proof that during the proceeding two years they have satisfactorily completed 24 hours of approved professional education. This bill was signed into law on June 6, 1980 as Act 57.

***Emergency Medical Systems -- House Bill 657 reenacts the , Emergency Medical Services Systems Act of 1976 to fulfill the requirements of a "sunset" provision in the original act. The act provided a grant program for aiding local emergency medical services such as ambulance services and hospital emergency rooms. This bill was signed into law on July 13, 1979 as Act 44.

***Flood Grant Extension -- Senate Bill 501 provided for an additional 60 days for applying for aid for victims of the 1977 Johnstown flood. The governor signed this bill on June 28, 1979 as Act 19. The deadline was extended to Sept., 1979.

***Mongolism -- House Bill 1845 forbids the use of the terms "mongolism" and "mongoloid" in any statute, ordinance, rule or regulation.

The term "Down's Syndrome" would be used instead. This bill was signed into law on Oct. 10, 1980 as Act 149.

**Health Maintenance Organizations -- Senate Bill 1509 would substantially enlarge the kind of entities that could run Health Maintenance Organizations. Health Maintenance Organizations will provide, for a premium (usually monthly), preventive-oriented health care services. As it is now, only non-profit organizations can run HMOs. Even hospitals are excluded.

SB 1509 would enable hospitals and other profit-oriented corporations to run HMOs. The governor has until December 20, 1980 to sign this bill.

AGING AND YOUTH

*Prescription Break For Elderly --Senate Bill 681 would help Pennsylvania's senior citizens to meet the rising cost of medication. Eligible senior citizens would pay only the first four dollars of a prescription's cost, and the state would pay the remainder. To qualify, a person would have to be at least 65 years old, and not already receiving aid under the Medicaid program

His income, if single, could not exceed $7500 a year, and, if married, could not exceed $9000 per year. The $64 million program would be funded by the general fund.

*Child Protection --Senate Bill 526 would extend to neglected children the same kinds of protection and treatment services now available to abused children. In addition, law enforcement officials would be given direct access to records in cases which result in a child's death, where sexual abuse is evi