Senate of Pennsylvania

SENATE DEMOCRATIC WRAP-UP FOR THE 2003- 2004 Legislative Session

FOR EDITORIAL BACKGROUND

For nearly all of 2003, Senate Republicans doggedly obstructed attempts to adopt a reasonable spending plan or work in a bipartisan manner to solve problems.  In fact, their obstinacy forced the legislature into an extraordinary session that did not conclude until the waning days of the year, when the education-funding portion of the 2003-2004 state budget was finalized.

The year began with Gov. Ed Rendell proposing a two-part state budget (see House Bill 648, Appropriations). In his budget address, he explained that the initial bare-bones budget proposal was aimed at doing little more than meeting the state's Constitutional budget mandate. The spending plan, which Rendell said he "hated," demonstrated the kind of draconian cuts that would be necessary if lawmakers refused to seek additional revenues to fund his new and bold agenda -- and close the $2.4 billion budget hole he inherited from the previous Republican Administration.

In defiance, Republican lawmakers ignored the governor's request that they wait a few weeks for him to offer his alternative "Plan for a New Pennsylvania." Instead, they skipped the entire legislative budget hearing process and rushed the multi-billion dollar budget through in a matter of days. The spending plan was rife with painful funding cuts and freezes that Rendell and legislative Democrats opposed.

To help Republican reckoning, Rendell responded by vetoing the educational funding portion of the budget, intending to force the Republicans back to the negotiating table.  And thus, the standoff began.

Throughout the year, very few bills seemed immune from the protracted budget stalemate. The Governor's economic stimulus plan and strategy to legalize slots at racetracks (see House Bill 623, Consumer Protection) to fund local property tax cuts remains on the to-do list. Even the popular bipartisan measure (see House Bill 888, Aging and Youth) that made the Lottery-funded prescription drug programs available to 100,000 more senior citizens lingered until late October.

During the all-day-all-night flurry of activity on the final session day in December, Senators finalized the budget (see House Bill 1589 Appropriations) with a moderate income tax hike -- from 2.8 to 3.07 percent (see House Bill 200, Finance).  This enabled the state to increase school subsidies and restore some of the funding to numerous county social service agencies and libraries.  Another important feature of the bill helped quell the state's medical malpractice insurance crisis by hiking the cigarette tax by 35 cents.  Monies generated from this tax will primarily be used to abate doctors’ insurance premium costs.

Some of the highlights of 2003 included: re-establishing a $25 million grant program for volunteer fire departments and ambulance services (see House Bill 8, State Government); lowering the maximum blood-alcohol level at which a person could be charged with drunk driving from .10 percent to .08 percent (see Senate Bill 8, Judiciary); and repealing Pennsylvania’s 35-year-old requirement that motorcyclists and their passengers wear safety helmets (See Senate Bill 259, Transportation).

 

February, 2004

 

Legislation is coded as follows: a single asterisk indicates Senate passage, two asterisks indicate Senate and House passage and three asterisks indicate the measure became law.  A "V" means the governor vetoed the measure.

 

Aging and Youth




 


               * * * PACE Expansion  -- The Senate unanimously approved House Bill 888, which will make 100,000 more senior citizens eligible for Lottery-funded PACE and PACENET prescription drug benefits.

            Under the measure, the income limits for PACE and PACENET would be raised to the following:

The new law, Act 37 of 2003, also changes the $500 PACENET deductible to $40 per month to encourage more senior citizens to participate. The expansion was made possible through increase lottery sales and money received by the state through the Tobacco Settlement Fund.

  

               * * * Nursing Home Assessments -- By a 45-3 vote, the Senate approved House Bill 297, which provides for nursing facility assessments; and establishes the Kinship Care Program. This bill was signed into law as Act 25 of 2003.

 

 

AGRICULTURE AND RURAL AFFAIRS

 

            *** Hayes Center -- The Senate unanimously approved Senate Bill 340, which names a new Penn State facility the Samuel E. Hayes, Jr. Livestock Evaluation Center.  The bill was signed into law as Act 9 of 2003.

 

            * Loan Forgiveness for Ag Teachers -- The Senate unanimously approved Senate Bill 673, which would extend the benefits of the Agriculture Loan Forgiveness Act to teachers of agriculture education.  Currently, the program forgives loans up to $2,000 a year, with a maximum of $10,000, for agriculture and veterinary medicine graduates who return to the farm or practice large-animal veterinary medicine in Pennsylvania.  The bill was sent to the House, where it is now before the Appropriations Committee.

 

            * Tax-Exempt -- The Senate unanimously adopted Senate Bill 834, which would add a section on rollback taxes to Pennsylvania’s “Clean and Green” farmland/open space preservation law.  Under this measure, clean and green lands categorized as agricultural or forest reserve would not be subject to rollback taxes if the land is leased for passive, non-motorized recreational use.  The bill is now before the House Agriculture and Rural Affairs Committee.

 

            *** Rabies Prevention -- Act 27 of 2003 repeals an obsolete act dealing with the prevention and spread of rabies.  More up-to-date standards are contained in several other sections of state law.  The Senate unanimously approved this measure as House Bill 318.

 

            V Factory Farms -- The Governor vetoed legislation (see House Bill 1222, Judiciary) that would have curtailed the ability of municipalities to restrict large farming operations. Opponents said the measure would have deterred local officials from passing ordinances regulating large “factory farms.” Supporters said the bill merely would have required municipalities to reimburse legal fees if a farmer successfully challenged an illegal local ordinance. The measure was amended into a seemingly unrelated omnibus bill that addressed various penal issues.

 

APPROPRIATIONS

*** Rushed Budget - For the first time, the General Assembly passed a state budget with absolutely no public input or debate.  The Republican majority, in express defiance of the governor’s earnest request, rushed to approval at the earliest possible date precisely to avoid interference from their own constituents.

Drafted in response to the deficit, the $21 billion budget for 2003-2004 was merely the first step in the governor’s fiscal plan.  Later in March, he unveiled his Plan for a New Pennsylvania, which called for historic levels of education funding, property tax reform, and the leveraging of a $5 billion impact for economic development and job creation through the use of $2 billion in bonds.

Regardless, House Bill 648 passed the Senate in March by a party-line vote of 27-21. The governor signed the bill as Act 1A of 2003, but line-item vetoed the Education portion of the budget.  Many of the budget cuts included in Act 1A were restored by House Bill 1589 (Act 9A of 2003), and the education budget was restored and passed as Senate Bill 80 (Act 48 of 2003). 

The budget approved in March included $1.6 billion in cuts from almost every department and agency.  The March budget utilized more than $750 million in either increased revenues or shifted funds to close fiscal holes left by the outgoing Republican administration.  These include:

Some of the spending cuts were:

 

*** Fixing the Budget - By a vote of 42-7, the Senate passed House Bill 1589, which amends the 2003-2004 state budget to restore some of the funding that was cut when Republican lawmakers rushed the budget through in March.  Including federal monies, the bill contains about $5.5 billion in supplemental spending. Some of the key restorations include:

The bill was signed into law as Act 9A of 2003.

 

The Senate unanimously passed the following appropriations bills, all of which were signed into law:

*** Senate Bill 582 (Act 2 of 2003), authorizing $15,000,000 for construction and improvements of the DuPont Company’s Imaging Technologies project in Bradford County. 

*** Senate Bill 629 (Act 8A of 2003) appropriating $22.162 million from the State Employees’ Retirement Fund to provide for expenses of the State Employees’ Retirement Board for the 2003-04 fiscal year and for the payment of unpaid bills at the close of the 2002-03 fiscal year.

*** Senate Bill 630 (Act 2A of 2003)) appropriating $42.947 million from the Public School Employees’ Retirement Fund to provide for expenses of the Public School Employees’ Retirement Board for the 2003-04 fiscal year and for the payment of unpaid bills at the close of the 2002-03 fiscal year.  

*** Senate Bill 631 (Act 3A), appropriating $21.183 million from the Professional Licensure Augmentation Account within the General Fund for the 2003-04 state fiscal year to the Bureau of Professional and Occupational Affairs.  It also makes appropriations from various restricted revenue accounts within the General Fund to various boards within the Bureau for their operation in the 2003-04 fiscal year. 

*** Senate Bill 632 (Act 4A), transferring funds from the Workmen's Compensation Administration Fund to the Department of Labor and Industry to provide $55.006 million for administrative expenses for the 2003-04 fiscal year. The bill also appropriates $184,000 to the Department of Community and Economic Development to fund workers' compensation activities by the Small Business Advocate. 

*** Senate Bill 633 (Act 5A), appropriating $44.256 million from the restricted revenue account in the General Fund for the operation of the Pennsylvania Public Utility Commission for the 2003-04 fiscal year

*** Senate Bill 634 (Act 6A), appropriating $4.594 million from the restricted revenue account in the General Fund to the Office of Consumer Advocate within the Office of Attorney General for the 2003-04 fiscal year.

*** Senate Bill 635 (Act 7A), appropriating $973,000 from the restricted revenue account in the General Fund to the Office of Small Business Advocate in the Department of Community and Economic Development for the 2003-04 fiscal year.

 

The Senate failed to pass by the required two-thirds majority Senate Bill 636, appropriating $306,465,000 to the Pennsylvania State University, and Senate Bill 637, appropriating $163,336,000 to the University of Pittsburgh. Both bills failed on a 27-21 party-line vote.  The Senate later approved the appropriations as House Bills 1374 and 1375, respectively.

 

The Senate approved a package of non-preferred appropriations bills, making allocations to educational and medical institutions. The bills, which require a two-thirds vote to pass, were defeated in July on a party-line vote. The votes were reconsidered, and the bills remained on the table until December. The following bills were approved unanimously. The House concurred and the governor signed all of the measures.

*** House Bill 1374 (Act 10A of 2003), $307,844,000 to the Pennsylvania State University for the 2003-04 fiscal year.  The bill was amended in the Senate to increase the appropriation for rural education outreach.

*** House Bill 1375 (Act 11A of 2003), $163,386,000 to the University of Pittsburgh for the 2003-04 fiscal year. The bill was amended in the Senate to increase the appropriation for rural education outreach by $50,000.

*** House Bill 1376 (Act 12A of 2003), $164,941,000 to Temple University.  The Senate amended the bill to remove a provision requiring that 75% of the students receiving money through the act must be Pennsylvania residents.

*** House Bill 1377 (Act 13A) of 2003),  $12,155,000 to Lincoln University. A Senate amendment removed language specifying how much money would go to various programs. 

*** House Bill 1378 (Act 14A of 2003), $6,470,000 to Drexel University. The Senate amended the bill to remove a provision requiring 75% of the students receiving money appropriated through the act must be Pennsylvania residents.

*** House Bill 1379 (Act 15A of 2003), $42,946,000 to the University of Pennsylvania. The Senate amended the bill to remove a provision requiring 75% of the students receiving money appropriated through the act must be Pennsylvania residents.

*** House Bill 1380 (Act 16A of 2003), $12,003,000 to the Philadelphia Health and Education Corporation.  A Senate amendment removed a requirement that the medical school set aside 5% of the admissions for students who agree to practice at least four years in a medically underserved area of the Commonwealth.

*** House Bill 1381 (Act 17A of 2003), $9,178,000 to Thomas Jefferson University.  A Senate amendment removed a requirement that the medical school set aside 5% of the admissions for students who agree to practice at least four years in a medically underserved area of the Commonwealth.

*** House Bill 1382 (Act 18A of 2003), $4,650,000 to the Philadelphia College of Osteopathy. The Senate amended the bill to remove a provision requiring 75% of the students receiving money appropriated through the act must be Pennsylvania residents.

*** House Bill 1383 (Act 19A of 2003), $1,391,000 to the Philadelphia College of Optometry. The Senate amended the bill to remove a provision requiring 75% of the students receiving money appropriated through the act must be Pennsylvania residents.

*** House Bill 1384 (Act 20A of 2003), $1,122,000 to the Pennsylvania University of the Arts.  The Senate amended the bill to remove a provision requiring 75% of the students receiving money appropriated through the act must be Pennsylvania residents.

*** House Bill 1385 (Act 21A of 2003), $1,477,000 to the Bureau Training School. The Senate amended the bill to remove a provision requiring 75% of the students receiving money appropriated through the act must be Pennsylvania residents.

*** House Bill 1386 (Act 22A of 2003), $182,000 to the Johnson Technical Institute. The Senate amended the bill to remove a provision requiring 75% of the students receiving money appropriated through the act must be Pennsylvania residents.

*** House Bill 1387 (Act 23A of 2003), $65,000 to the Williamson Free School. The Senate amended the bill to remove a provision requiring 75% of the students receiving money appropriated through the act must be Pennsylvania residents.

*** House Bill 1388 (Act 24A of 2003), $776,00 to the Fox Chase Institute for Cancer Research.

*** House Bill 1389 (Act 25A of 2003), $306,000 to the Wistar Institute.

*** House Bill 1390 (Act 26A of 2003), $130,000 to the Central Penn Oncology Group.

*** House Bill 1391 (Act 27A of 2003), $49,000 to the Lancaster Cleft Palate Clinic.

*** House Bill 1392 (Act 28A of 2003), $49,000 to the Pittsburgh Cleft Palate Clinic.

*** House Bill 1393 (Act 29A of 2003), $418,000 to the Burn Foundation.

*** House Bill 1394 (Act 30A of 2003), $781,000 to the Children’s Institute of Pittsburgh.

*** House Bill 1395 (Act 31A of 2003), $451,000 to the Children’s Hospital of Philadelphia.

*** House Bill 1396 (Act 32A of 2003), $117,000 to the Beacon Lodge Blind Services.

*** House Bill 1397 (Act 33A of 2003), $143,000 to the Arsenal Family and Children’s Center.

 

* Agriculture Operations - The Senate unanimously passed Senate Bill 779, which would appropriate $1 million from the Agricultural Farm Operations Account within the General Fund to the State Farm Products Show Fund. The bill is now in the House Appropriations Committee.

 

BANKING AND INSURANCE

*** Insurance Company Law - By a unanimous vote, the Senate approved Senate Bill 483, which amended the Insurance Company Law to require employers who are providing life insurance benefits to their employees to notify them and obtain written consent of any intent to purchase a life insurance policy on the employee. The bill also extended the sunset date for the Health Insurance Portability and Accessibility Act (HIPAA) an additional three years until December 31, 2006. The bill was signed into law as Act 50 of 2003.

 

COMMUNICATIONS AND TECHNOLOGY

*** 911 Centers - The Senate adopted a conference committee report on House Bill 1018, the Public Safety Emergency Telephone Act. The measure established a system by which county 911 centers can accurately trace the location and phone number of someone calling for emergency assistance from a wireless phone. The system is funded by a monthly $1 surcharge on wireless telephones that are registered in Pennsylvania.  The bill also:

The governor signed the bill as Act 56 of 2003.

 

* Access for the Blind - The Senate unanimously passed Senate Bill 79, which would amend the Dual Party Relay Service and Telecommunications Device Distribution Program Act. The legislation would allow blind individuals to participate in the Print Media Access System Program, which is a telephone service that provides access to national and local newspapers over the telephone. The bill remains in the House Committee on Consumer Affairs.

 

* Wireless Emergency Tracing - By a 48 to 1 vote, the Senate approved Senate Bill 432, which would amend the Public Safety Emergency Telephone Act to establish an enhanced wireless E-911 emergency telephone system to allow county 911 centers to accurately pinpoint the location and number of a person who is calling 911 for emergency assistance. The bill was referred to the House Committee on Veterans Affairs and Emergency Preparedness, but the provisions of the bill were amended into House Bill 1018 (Act 56).

 

Community and Economic Development

* Economic Enhancement Act -- Senate Bill 10, the Republican version of an economic stimulus package—introduced as a counter to Gov. Rendell’s jobs package contained in The Plan for a New Pennsylvania—unanimously passed the Senate. The act would create an Economic Enhancement Financing Authority to stimulate economic growth in targeted distressed areas throughout the state.

Under the act, the governor would designate deteriorated properties as tax incentive districts for a period of not more than 20 years. Persons owning property located within the district would be eligible to receive grants and loans for projects that increase and diversify the manufacturing base, aid in the expansion of existing private companies, attract new industries and products, and promote environmental abatement, remediation and disposal of pollutants. The bill was sent to the House for action.

 

* Deputy Secretary for Local Government Services – By a 47-1 vote, the Senate approved Senate Bill 230, which would create the Deputy Secretary for Local Government Services within the Department of Community and Economic Development. The new office would be responsible for the administration of the Center for Local Government Services as well as other functions and duties authorized by the governor. The bill was sent to the House for action.

 

Consumer Protection

*** Engineering Licensure -- By a unanimous vote, the Senate passed House Bill 106, which amends the “Engineer, Land Surveyor and Geologist Registration Law” by providing a credit toward the four-year engineering experience requirement for licensure. Under the new law, Act 35 of 2003, a year of engineering experience can be credited for each post-graduate degree obtained in engineering, up to a maximum of two years.

* * No-Call Telephone Solicitation List -- The Senate unanimously approved an amended version of Senate Bill 276, which expanded the registration on the state’s “Do Not Call List” to include protection under the state’s list as well as the National Registry. The measure, enacted as Act 22 of 2003, also provides protection for wireless users and takes additional steps against those who engage in deceptive or abusive telemarketing practices.

* * Slot Machines at Racetracks -- By 27-22 vote, the Senate approved House Bill 623, which would permit up to 5,000 slot machines at the state’s horse racing tracks. Under the bill, track owners would pay a $50 million licensing fee, and receive 46 percent of slot revenue. The state would receive a daily 36 percent share.

The governor estimated that the state could eventually reap up to $800 million annually in slots revenue and proposed using the funds to lower property taxes and enhance education in public schools. Those arguing in support of the bill said it would preserve Pennsylvania’s 35,000 horse racing-related jobs, bring in 15,000 new jobs, and keep home a share of gambling proceeds that have been flowing into neighboring states for years. It is estimated that Pennsylvanians spend more than $3 billion every year on legalized gambling in neighboring New Jersey, Delaware and West Virginia.

To allay fears of increased gambling addiction, the bill would set up strict regulatory controls at the tracks, earmark $1.5 million annually for gambling addiction programs, and limit the use of automatic teller machines and credit cards at the tracks.

The bill is back in the Senate following House amendments.

 

* * * Reciprocal Real Estate Licenses -- The Senate unanimously approved House Bill 1000, which amends the Real Estate Licensing and Registration Act to provide reciprocal licenses for qualified out-of-state real estate licensees.  The measure, enacted as Act 58 of 2003, also adds two prohibited acts to the list currently set forth in the law. These would be any violation of the new reciprocity provisions set forth in the act and any discipline meted out under a real estate licensing law of another jurisdiction.

* * * Health Care Facilities -- The Senate unanimously approved House Bill 1580, which amends the Health Care Facilities Act to authorize health care practitioners to practice the healing arts as employees or independent contractors in health care facilities.  The bill was signed into law as Act 42 of 2003.

* Fake Airbags -- The Senate unanimously passed Senate Bill 45, which would make it a criminal misdemeanor to knowingly purchase, sell, install or reinstall a “fake” air bag in a motor vehicle. The measure, which would carry a maximum penalty of $10,000 and five years in jail, is in response to a growing scam where unscrupulous repair shops and dealers do not replace the air bag after a vehicle has been in an accident; or simply remove an airbag in order to resell it. It is estimated that one in every 25 cars has a fake airbag.  The bill is before the House Consumer Affairs Committee.

* * Credit Card Marketing -- By a unanimous vote, the Senate approved Senate Bill 157, which would compel colleges to adopt policies to regulate credit card marketing on college campuses. Following House amendments, the bill is now back in the Senate.

* Licensing Interpreters -- The Senate unanimously approved Senate Bill 297, which would establish the “Sign Language Interpreters State Certification Act” to require the licensing of people who provide interpreting or transliteration services to the deaf or hard of hearing. The House is now considering the bill.

 

* Broadband Law -- By a unanimous vote, the Senate amended and approved Senate Bill 677, which would extend the sunset date for the complex Chapter 30 broadband law to December 31, 2004. Chapter 30 guides the statewide implementation of modern telecommunications and broadband Internet services. The measure would also eliminate the Public Utility Commission’s (PUC) Office of Trial Staff, which is an attempt to streamline and modernize the commission’s structure to reflect today’s deregulated and competitive utility services.

 As a result, the commission itself would have the statutory authority to establish bureaus, offices and positions at its discretion. The bill is now in the House.

* Respiratory Care -- The Senate unanimously approved Senate Bill 751, which would mandate continuing education for respiratory care practitioners and list offenses that could result in the State Board of Medicine refusing, suspending or revoking a license. The bill is now in the House.

            * Osteopathic Disciplinary Actions -- By a unanimous vote, the Senate approved Senate Bill 752, which would establish a continuing education requirement for respiratory care practitioners. The measure also lists various causes, ranging from drug offenses to fraud, for disciplinary actions by the State Board of Osteopathic Medicine. The bill is now before the House Professional Licensure Committee.

 

Environmental Resources and Energy

*** Local Tax Withholding for State Employees -- By a 35-14 vote, the Senate passed House Bill 172. The legislation amends the Administrative Code of 1929 to add a section permitting the state to withhold local tax fees for state employees.  

In addition, the bill provides for fees chargeable by the Departments of Agriculture, Health, Insurance and Labor and Industry and allows Pennsylvania’s school administrators in first-class cities to use collective bargaining to designate the terms and conditions of their employment contracts. The bill also requires the Department of General Services to establish energy profiles for certain state buildings, listing the source and type and amount of fuel used, as well as other key building information, to monitor energy use.  The Governor signed the bill into law as Act 47 of 2003.

 

* Hybrid Fuel Vehicle Reimbursement -- Senate Bill 255, passed unanimously in the Senate, would increase the reimbursement rates for maintaining or purchasing alternative fuel vehicles used by schools, municipal authorities, political subdivisions and nonprofits. Reimbursement rates would range from 20 to 50 percent.

The measure would also create a rebate program for state residents who purchase a hybrid vehicle and would allow for more renewable energy projects to receive state grants. This program would be funded through an existing gross receipts tax on utilities.  The bill is now before the House Environmental Resources and Energy Committee.

 

Education

* School Budget Surplus - The Senate unanimously passed Senate Bill 680, which would regulate the amount of money school districts can keep in reserve while adopting a tax increase.  The bill was amended by Senate Democratic Leader Robert J. Mellow to ease the restrictions on smaller school districts.  Most school districts will be limited to budget surpluses of eight percent.  Mellow’s amendment would allow higher percentages on a sliding scale for districts with budgets of less than $19 million. The bill was sent to the House where it remains in the Education Committee.

 

* Character Education - The Senate passed Senate Bill 596, which is aimed at helping school districts across the state develop programs to reduce truancy, violence and delinquency by teaching children not just to be better students, but better citizens as well.  The measure, which passed 42-7, would establish a grant program in the Department of Education to help districts implement character education. It was sent to the House, where it is now before the Appropriations Committee.

 

* Parental Involvement - The Senate unanimously passed Senate Bill 498, which would create a framework for parent involvement in Pennsylvania schools. The federal “No Child Left Behind Act” requires schools and school districts to adopt parent involvement policies to integrate certain parental involvement strategies and resources in school activities.  The bill is now in the House Appropriations Committee.

 

*Academic Improvement - Senate Bill 503 would direct intermediate units to provide support and to coordinate academic improvement programs for certain school districts.  The bill passed unanimously and is now before the House Education Committee.

 

* Head Start - Senate Democrats fought to prevent passage of this weak Republican-backed Head Start initiative.

            While support among Democrats for Head Start has not wavered, the watered-down Republican bill doesn’t go far enough to provide early childhood education opportunities and represents a pale imitation of the governor’s proposed reforms.  Under Senate Bill 60, which passed 37-12, more than 30,000 children eligible for Head Start would still not have the opportunity.  The bill does not make Head Start available to any child not already enrolled, and does not guarantee full-day Head Start even for those who are enrolled.  The bill would pay only day care for the half-day those students aren’t in Head Start.  Democrats also argued that Republicans did not disclose a revenue source even for the anemic $15 million called for in the bill.

The bill stalled in the House as leaders negotiated improved school funding with the governor.

 

* School funding - Over the objections of Democratic leaders, state Senate Republicans adjourned in July without a spending plan for schools and without any new ideas for education and tax reform.

Despite the governor’s warning that their weak and watered down proposal would be vetoed if it reached his desk, the majority passed House Bill 564 before saying “our work is done,” and heading home.

House Bill 564 was a summer re-run of previous Republican education proposals that carried a nominal increase in education funding and ignored the reform measures endorsed by Pennsylvanians when they voted for governor last fall.  The bill contained no provisions for early childhood education, full-day kindergarten, and ignores the public’s cry for tax reform.  The bill stalled in the House.

 

Finance

*** State/School District Employee Pension Fund Extension—The Senate unanimously passed House Bill 85, which extends the time period from 10 to 30 years for state and school district employer payments to Pennsylvania’s two biggest pension funds: State Employees and Public School Employees. Over the next three years, the measure is expected to save school districts $1.7 billion and the Commonwealth $2.3 billion.

In addition, the bill amends Title 24 (Education) to designate an actuarial cost method to calculate the total amount employers must contribute to the retirement funds of Pennsylvania’s education system employees. The measure also amends Title 71 (State Government) to allow state employees appointed to the position of bail commissioner of the Philadelphia Municipal Court to elect a Class E-2 service credit.

            The Governor signed the bill into law as Act 40 of 2003.

 

*** Personal Income Tax Increase – Pennsylvania is expected to generate $301 million this fiscal year and $729 million the following year with the passage of House Bill 200. The legislation amends the Pennsylvania Tax Reform Code to allow for an increase in the personal income tax (PIT) from 2.8 percent to 3.07 percent. The Senate approved the bill by a 30-19 vote.

Additionally, the bill increases the state cigarette tax from $1 a pack to $1.35. The increase is expected to generate an additional $255.7 million, which will be used to abate physicians’ payments to the state’s MCare insurance fund. The tax package also places a new 6 percent levy on cell phone and long distance bills to modernize Pennsylvania’s telecommunications tax structure.

The new law slows down the phase-out of the Capital Stock and Franchise Tax. The rate decreases from 7.24 mills to 6.99 mills in 2004, and then decreases by one mill each year thereafter until the tax is eliminated. Another provision raises the cap on the Research and Development Tax Credit from $15 million to $30 million for tax credits issued in December 2004.

The governor signed the bill into law as Act 46 of 2003.

 

*** Keystone Opportunity Zone Amendments -- By a 48-1 vote, the Senate approved House Bill 521. This legislation outlines criteria for the application, review and authorization of lands designated under the Keystone Opportunity Zone and Keystone Opportunity and Expansion Zone Act in Title 12 of the Pennsylvania Consolidated Statutes.

Other amendments include an extension of the application and designation deadlines for enhancing existing subzones and expansion subzones, as well as a listing of requirements for tax exemption, business relocation, and the apportionment of taxable income to subzones.

The governor signed the bill into law as Act 51 of 2003.

 

*** Enhanced Vesting Rights for County Employees --             The Senate approved House Bill 545 by a 48-1 vote, amending the County Pension Law to change vesting rights and provide additional class options for county employees.

            House Bill 545 allows county employees to become “vested” in a county’s retirement fund after five years of service instead of eight years, as mandated in the current law. The legislation would also authorize county retirement boards to establish a one-fiftieth-employment class or a one-fortieth-employment class. Each new class of members would be required to contribute 9 percent of their gross income to the retirement fund. The governor signed the bill into law as Act 43 of 2003. 

               


               *** Crime Victims Compensation Fund Enhancement -- By a unanimous vote, 
he Senate passed House Bill 1133, amending the Fiscal Code to designate that unclaimed
 restitution collected from Pennsylvania counties be submitted annually to the Crime Victims 
Compensation Fund at the Pennsylvania Commission on Crime and Delinquency.  
The governor signed the bill into law as Act 45 of 2003.

 

*** Amendments to the General County Assessment Law -- The Senate unanimously passed House Bill 1854, which amends the General County Assessment Law. The legislation requires property assessors to consider additional factors when calculating the actual value of real property. Additional factors include: rent restrictions, affordability requirements and any other related federal or state program controls. Federal and state income tax credits are not considered “real property” under the amendment. 

               The governor signed the bill into law as Act 39 of 2003.

 

** Property Tax Referendum – The Senate voted 27-22 in favor of Senate Bill 100. Senate Republicans claimed that the measure would reduce property taxes by allowing local voters to decide through a referendum whether to exchange property tax cuts for increases in the earned income tax. Unlike the state income tax, the earned income tax does not include investment earnings.

By supporting this bill, Senate Republicans ignored facts that show their plan simply would not work alone and ignored an amendment proposed by Democratic Leader Robert J. Mellow.  The amendment, modeled after the governor’s “Plan for a New Pennsylvania,” would have provided homeowners with $1.5 billion in property tax cuts by increasing the personal income tax and using revenue from slot machines at racetracks. Then, as provided in Senate Bill 100, voters could decide in November whether they wanted more property tax cuts through local wage tax increases.

The Mellow amendment failed in a party line vote (28-21). The Senate Bill 100 was amended in the House and was returned to the Senate for concurrence.

 

* Keystone Innovation Zones -- Senate Bill 778, another measure crafted to stimulate Pennsylvania's economy, passed unanimously in the Senate. The bill would create Keystone Innovation Zones (KIZ) within a five-mile radius of colleges and universities.

KIZs would provide joint business partnerships with colleges and universities within the state, giving qualified employers grants to begin their businesses as long as the employers meet certain requirements. One requirement includes providing employment opportunities. Keystone Innovation Zones would be eligible for the same tax abatement periods and tax exemptions available to Keystone Opportunity Zones and Keystone Expansion Zones.

The bill is now before the House Finance Committee.

 

*** Tobacco Product Manufacturer Certification – By a 47-1 vote, the Senate passed Senate Bill 924, the Tobacco Product Manufacturers Directory Act. This legislation requires tobacco product manufacturers to file certification with the Office of the Attorney General and set up escrow accounts before selling cigarettes in Pennsylvania.

            The measure also authorizes the Attorney General to establish a directory of cigarette brands and manufacturers approved for sale in Pennsylvania. Any person found guilty of selling, distributing, possessing or transporting tobacco products not listed on the directory could be charged with a third-degree misdemeanor.  The governor signed the bill into law as Act 64 of 2003.

 

V Fiscal Relief for Pittsburgh – The Senate voted 41-8 in favor of Senate Bill 940. The legislation, which was ultimately vetoed by the governor, would have established an intergovernmental cooperation authority (ICA) to assist Pittsburgh with its fiscal problems.

This measure was modeled after the PICA legislation that assisted Philadelphia in 1993. The ICA would have consisted of a five-member governing board, with one member appointed by each of the state legislative caucuses and one appointed by the governor. The ICA would have been authorized to review the City of Pittsburgh’s annual budgets and five-year financial plans and, afterward, recommend actions such as consolidation or merger of services, agreements with other governmental entities, sale of assets and other budgetary practices. By suspending the use of Act 47 of 1987, a law for financially distressed municipalities, the measure would have restricted the ICA from recommending spending cuts and new revenue sources.

 

GAME AND FISHERIES

            *** New Hunting License Provisions -- The Senate unanimously concurred in House amendments to Senate Bill 586, which creates a Resident Military Personnel hunting license and provides for eligibility and a fee.  The bill also adds the negligent or careless killing for whitetail deer to the list of “unlawful killings.”  Another provision narrows the list of offenses that could result in the revocation or denial of a license.  The bill was signed into law as Act 63 of 2003.

 

            *** Hunting Permits – The Senate unanimously adopted House Bill 235, which allows Pennsylvanians who are 16 or older to hold falconry permits.  The bill also expands the eligibility requirements for obtaining a disabled-person hunting permit.  The measure was signed into law as Act 5 of 2003.

 

            *** Crossbow Use – The Senate unanimously approved House Bill 331, which allows disabled hunters to use a crossbow through issuance of a temporary or lifetime permit.  The bill was signed into law as Act 6 of 2003.

 

Health and Welfare

* * * Federal Exemption -- The Senate unanimously passed House Bill 44, which amends the Public Welfare Code by exempting individuals who have been convicted of a felony drug offense from the federal ban on cash assistance and food stamps. The bill has been signed into law as Act 44 of 2003.

  

               * * * Reflex Sympathetic Dystrophy Syndrome  - The Senate unanimously passed 
House Bill 999, which would direct the Department of Health to establish an education program 
to promote public awareness of Reflex Sympathetic Dystrophy Syndrome (RSDS), its causes, 
the value of early detection, and available treatments. This bill was signed into law as Act 62 of 2003.


 


               * * * Medicare Payments - Coaldale Borough and Butler Township in Schuylkill 
County have been designated as rural areas for the purpose of receiving increased Medicare
 inpatient hospital services payments under House Bill 1406, passed unanimously by the Senate. 
This bill was signed into law as Act 7 of 2003.

 

* * * Licensed Psychologists  - The Senate unanimously passed Senate Bill 265, which created the “Consumers' Continuity of Care Act.” The act provides for treatment of psychological problems in health care facilities by allowing hospitals to grant clinical privileges to licensed psychologists. The bill was signed into law as Act 28 of 2003. 

 


               * * * Health Care Cost Containment Council - The sunset date of the Pennsylvania 
Health Care Cost Containment Council was extended from June 30, 2003 to June 30, 2008, 
unless reenacted prior to September 1, 2007, under Senate Bill 387, which was passed 
unanimously by the Senate. The bill was signed into law as Act 14 of 2003.


 


               *  Medical Consent  - The Senate unanimously passed Senate Bill 137, which 
would amend the “Allowing Minors to Consent to Medical Care Act of 1970” by clarifying 
the rights of minors and their parents when consenting to mental health treatment. The measure 
also would provide for a procedure to resolve conflicts. The bill is now in the House Health 
and Human Services Committee.


 

Judiciary

* * * Desecrating Burial Places -- By a 47-2 vote, the Senate approved House Bill 46, which toughened penalties against those who desecrate historical burial places. Under the new law, Act 41 of 2003, the crime has been upgraded from a second-degree misdemeanor (up to two years in jail and $5,000 fine) to a first-degree misdemeanor (up to five years in jail and a $10,000 fine).

 

* * * 9-11 Terrorist Attacks -- By a unanimous vote, the Senate approved House Bill 89, which amends Pennsylvania’s estate law to give a special inheritance privilege for people whose spouses died in the Sept. 11, 2001, terrorist attacks. Under the new law, Act 26 of 2003, the surviving spouse will receive the full amount of compensation, rather than the first $30,000 plus one-half the balance of the estate stipulated in the existing law.

           

 

* * * Ecstasy Dealing -- By a unanimous vote, the Senate approved House Bill 266, which makes the maximum penalty (15 years in prison and a $250,000 fine) for dealing the designer drug “Ecstasy” consistent between the Crimes Code and the Controlled Substance, Drug, Device and Cosmetic Act. The measure was enacted as Act 3 of 2003.

 

            * * * Ecstasy Variations – The Senate unanimously approved House Bill 267, which amends the Crimes Code to add several compounds that are chemically similar and have similar effects to Ecstasy to the list of illegal drugs.  The bill was signed into law as Act 4 of 2003.

 

* * * Summary Harassment Fines -- The Senate unanimously approved House Bill 485, which amends the Judicial Code to restore a municipality’s authority to retain the municipal portion of fines imposed for summary harassment offenses that occur in the municipality.  The measure, enacted as Act 61 of 2003, also gives parole officers certain immunity when assisting federal law enforcement officers.

 

* * * Power of Attorney -- The Senate unanimously approved House Bill 786, which amends the Probate Code to provide an exemption from the notice provisions for power of attorney. The new subsection exempts dealers licensed under the Board of Vehicles Act when they use a power-of-attorney to sell, purchase, or transfer a vehicle in accordance with Section 1119 of the Vehicle Code. The bill was signed into law as Act 36 of 2003.

 

V Law Enforcement Records -- By a 46-3 vote, the Senate approved House Bill 1222, which would amend the Judicial Code to revise processes resulting when a judgment debtor is incorrectly identified; to amend multiple summary offenses involving vehicles; to require that a DNA sample be taken of a person convicted of stalking for inclusion in the state DNA Data Base; to stipulate when law enforcement records of juveniles can be released; to create a new civil cause of action for a person who is aggrieved by the enactment or enforcement of an unauthorized local ordinance governing normal agricultural operations.

Objecting to a so-called “factory farm” agricultural provision that was tacked on to the bill, the governor vetoed the measure.

 

* * * Tobacco Settlement  -- The Senate unanimously approved House Bill 1718, which amended the Tobacco Settlement Act to place limits on “supersedes” bond requirements. The new law, enacted as Act 55 of 2003, imposes limits on the amount of an appeal bond involving tobacco litigation in order to secure and protect the monies received by the Master Settlement Agreement. The law’s intent is to protect the state’s share of the tobacco settlement to ensure that the Commonwealth will continue to receive funds in the event that a tobacco company that is a party to the Master Settlement Agreement becomes involved in litigation that results in a large judgment-verdict.

 

* * * Lower Drunk Driving Level -- By a 47 to 1 vote, the state Senate adopted the conference committee report on Senate Bill 8, which established a tougher blood-alcohol standard for determining drunk driving. Under the new law, Act 24 of 2003, the maximum blood-alcohol level at which a person can be charged with drunk driving has been lowered from .10 percent to .08 percent. This comprehensive approach, which also expands treatment programs, uses a three-tiered penalty system that imposes tougher penalties on motorists with higher blood-alcohol levels.

 Enactment enables Pennsylvania to comply with a federal requirement that state enact the tougher drunk driving standard by October 1, 2003, or forfeit about 2 percent of federal highway dollars. More than 40 percent of Pennsylvania’s highway deaths are alcohol-related.

 

* Death Penalty -- By a 48 to 1 vote, the Senate approved Senate Bill 26, which would bar prosecutors from seeking the death penalty against mentally retarded suspects. Under the legislation, judges would be required to decide if a suspect is retarded prior to trial by considering criteria ranging from the suspect’s IQ (less than 70) to adaptive skills and the age that the retardation became evident.  A U.S. Supreme Court ruling last year prompted the bill. The justices concluded that executing mentally retarded murderers was unconstitutional and akin to “cruel and unusual punishment.” The bill is now in the House.

 

* * * Child Video Testimony -- The Senate unanimously approved Senate Bill 55, a joint resolution that would change the state’s Constitution to allow traumatized children to testify in court by closed-circuit television or videotape. Following legislative approval in two consecutive legislative sessions, the voters overwhelmingly approved the two ballot questions that allowed for the change to the state’s constitution.

Under the measure, Pamphlet Law Resolution Number 1, a judge could allow a child to testify by television or videotape if the judge believes that testifying in open court could traumatize the child. A 1986 law, and a 1995 Constitutional amendment allowing the television testimony were both overturned by the Supreme Court on Constitutional grounds.

The General Assembly may now craft "authorizing" legislation that would establish the procedures for using such testimonial aids.

 

* Aggravating Circumstances for Death Penalty -- A bill that would expand the list of aggravating circumstances under which a prosecutor may seek the death penalty passed the Senate by a vote of 38-10.  Senate Bill 57 would allow a prosecutor to seek the death penalty in case where the defendant committed first-degree murder in order to collect life insurance proceeds.

Currently, the maximum penalty for such a murder is life imprisonment. Under state law, in order to impose the death penalty, a jury unanimously must find at least one aggravating circumstance and no mitigating circumstances, or that the aggravating circumstances outweigh the mitigating circumstances. The bill is now in the House.

 

* * Tougher Penalty -- By a 35-13 vote, the Senate approved Senate Bill 72, which would make it a first-degree felony (up to 20 years in prison and a fine of up to $25,000) to cause serious bodily injury to a utility worker or employee of a county Children and Youth agency. There are 27 other categories of workers who are already listed under the increased penalty grading status. Following House amendments, the bill is back in the Senate.

 

* Deficiency Judgments -- By a unanimous vote, the Senate approved Senate Bill 92, which would institute a petition for re-determination of the fair market value of property sold in connection with execution proceedings in a deficiency judgment action where the real property collateral lies in multiple counties. Under the legislation, the judgment creditor could file the valuation petition in one county if the property is located in more than one county. Following House amendments, the bill is back in the Senate.

 

* Greyhound Racing -- The Senate unanimously approved Senate Bill 93, which would specifically outlaw greyhound racing in Pennsylvania. Currently, no provision in state law regulates the activity, other than “cruelty to animals” statutes. The bill establishes the offense of greyhound racing and makes it a third-degree felony to hold, conduct or operate a greyhound race for public exhibition or money.  The bill is now in the House.

 

* Divorce Law -- The Senate unanimously approved Senate Bill 95, which would make several changes to the state’s divorce law. Some of the key provisions in the bill would: Define "separate and apart" for the purposes of commencing the two-year period of separation for a divorce; Provide statutory rules on prenuptial agreements; remove automatic bifurcation of divorce and equitable distribution of property proceedings. Such issues could be considered in the same proceedings unless parties opt to separate them in bifurcated proceedings; disallow one’s death to end divorce/equitable distribution proceedings; and make various changes to the Domestic Relations Code on the valuation of marital property and non-marital property and the tax consequences of equitable distribution and property valuations.

The Joint State Government Commission Advisory Committee on Domestic Relations Law recommended the changes. The bill is now in the House.

 

* Juror Notes -- By a 48-1 vote, the Senate approved Senate Bill 97, which would allow jurors to take notes if the judge approves or if the court contestants agree. The measure would enable jurors to take notes during criminal or civil trials and use the notes during deliberation. The bill is now being considered in the House.

 

* * Juvenile Records -- The Senate unanimously approved Senate Bill 109, which would specify when law enforcement records on children could be disclosed to the public. Under the bill, a record could be made public if a minor has been adjudicated delinquent for a felony offense; or if the child is being charged for rape, kidnapping, murder, robbery, arson, burglary or drug dealing. Following House amendments, the bill is back in the Senate.

 

* Habitual Drunk Drivers -- The Senate this week unanimously approved Senate Bill 133, which would toughen penalties against habitual drunk drivers. Under the measure, the time basis for classifying motorists as “habitual offenders” would be extended from five to seven years. Drivers would face license revocation for 10 years if they accumulate three DUI (driving under the influence) convictions in a seven-year period; or if they have three DUI convictions and one of those offenses is for homicide or aggravated assault while drunk driving.

The bill would also increase the DUI penalty from a first-degree misdemeanor to a third-degree felony if the offender has more than three drunk driving convictions during the last seven years; or if the offender was previously convicted of a homicide or aggravated assault while driving drunk during the last seven years.

            The legislation would also authorize courts to require installation of ignition interlock devices on all vehicles owned by a convicted drunk driver; and would mandate the devices for offenders with two or more DUI convictions. The bill is now in the House.

           

* Trade Secrets -- The Senate unanimously approved Senate Bill 152, which would set civil penalties for misappropriating trade secrets that were acquired or disclosed improperly. The bill authorizes money damages for actual losses and/or unjust enrichment to the person who misappropriated the trade secret. The measure is now in the House.

 

* Corporate Board Members -- The Senate voted 47-2 in favor of Senate Bill 153, which would allow 16 and 17 year olds to serve on the board of directors for a nonprofit corporation under certain conditions. The bill is now in the House.

 

* * * Good Samaritans -- By a 47-1 vote, the Senate concurred in House amendments to Senate Bill 164, which would gives civil immunity to anyone who assists a victim at the scene of a personal injury crime. The new law, Act 31 of 2003, also authorizes county children and youth services to petition courts for removal of a child from foster care if one of the foster parents has been convicted of an offense that would otherwise disqualify them from serving as a foster parent.

            * Name Change -- The Senate unanimously approved Senate Bill 296, which would do away with the requirement for a court order before name change information could be forwarded to the State Police when an adult adoptee is assuming the name of their adoptive parent or parents. The bill is now in the House.

 

* Debt Priority -- By a 27 to 20 party line vote, the Senate approved Senate Bill 304, which gives state and local governments more of a priority status when the assets of an estate are insufficient to pay all of its debts.  In opposing the bill, Democrats said it was wrong to give government entities a claims advantage over individual citizens.  The measure is now in the House.

 

* Interstate Juvenile Compact -- By a unanimous vote, the Senate approved Senate Bill 319, which would authorize Pennsylvania to join the Interstate Compact for Juveniles.
     The measure would also establish the State Council for Interstate Juvenile Supervision. The compact manages the interstate movement of adjudicated youth, the return of non-adjudicated runaway youth, and the return of youth to states where they were charged with delinquent acts. The bill is now in the House Appropriations Committee.

 

* Free Background Checks for Little League Volunteers -- The Senate unanimously passed Senate Bill 356, which would exempt uncompensated Little League baseball volunteers from paying the State Police’s $10 fee for conducting criminal background clearance checks. The measure is now in the House.

 

* Officiating Marriages -- The Senate voted 45-2 in favor of Senate Bill 441, which would authorize active, retired and senior bankruptcy judges of the U.S. Bankruptcy Courts of Pennsylvania to officiate marriages. The bill is now in the House.

 

* * * Violent Juvenile Sexual Offenders -- In a unanimous concurrence vote, the Senate approved Senate Bill 521, which permits courts to commit sexually violent juvenile offenders for up to 10 years.  An interim Department of Welfare facility has been designated for the commitment and treatment of sexually violent youth.  There had been no provision for the civil commitment of juvenile sex offenders after they reach the age of 21. The new law, Act 21 of 2003, determines how these offenders would be assessed and committed for one-year terms. The bill was introduced after the proposed release of a juvenile who expressed a desire to commit additional sexual crimes.

 

* Megan’s Law -- By a unanimous vote, the Senate approved Senate Bill 903, which would amend Megan’s Law to add the offense of “institutional sexual assault” to the list of crimes for which an offender must register his or her whereabouts. The bill is now in the House Judiciary Committee.

 

* Inmate Medications -- By a unanimous vote, the Senate approved Senate Bill 959, which would amend the Judicial Code to remove the requirement that a county correctional facility provide the county probation department with a 48-hour supply of medication for an inmate. The bill is now in the House Judiciary Committee.

 

Labor and Industry

*** Workers’ Compensation - Along party lines, the Senate passed House Bill 88, which creates a list of  “vocational experts” who decide how much an injured worker can collect on Worker’s Compensation.  Democrats opposed the bill because provided no assurance to workers that the expert has no connection with insurance companies.   An amendment by Sen. Allen Kukovich, D-Westmoreland, took some of the sting out of the bill by requiring that the experts abide by a code of conduct.  The bill was also approved by the House and signed into law by Governor Rendell as Act 53 of 2003

 

LAW AND JUSTICE  

*** Campus Police, School Residency -- The Senate voted 44-5 in favor of the much-amended Senate Bill 80.  The Senate originally adopted the bill several months earlier as a vehicle to define powers and duties of campus police who serve State System institutions.  The House amendments assign penalties when a child’s school residency documentation has been falsified.  The bill was signed into law as Act 48 of 2003.

 

*** Municipal Police Education -- The Senate unanimously concurred in House amendments to Senate Bill 145, which provides for municipal police education and training definitions, training, certification, and reimbursement.  The bill was signed into law as Act 65 of 2003.

 

            *** Liquor Code Updates -- Act 1 of 2003 details the circumstances under which minors may be permitted inside a facility holding a liquor license.  The law also sets forth the conditions for making special orders when a state liquor store does not carry specific items requested by a customer.  Another provision permits club licenses in addition to restaurant licenses on golf courses.  The Senate originally voted 45-4 to adopt this measure as Senate Bill 532.

 

            * Police and Politics -- The Senate voted 48-1 to approve Senate Bill 696, which would repeal existing language prohibiting a police officer subject to civil service from participating in political activity.  The measure is now before the House Appropriations Committee.

 

            ** No Felons on the Force -- The Senate unanimously adopted Senate Bill 877, which would prohibit the employment or continued employment of a law enforcement officer convicted of a felony or serious misdemeanor.  The bill was amended in the House and is now before the Senate Rules and Executive Nominations committee.

 

            *** Wine Events -- The Senate unanimously approved House Bill 782, which makes several changes to the state Liquor Code.  The bill authorizes the Liquor Control Board to participate in or sponsor wine events for the purpose of educating consumers as to the wines available in Pennsylvania.  The board also is authorized to determine where and what classes, varieties and brands of liquor and alcohol it shall make available to the public and at what locations they will be sold and is permitted to hold tastings at its headquarters or regional offices. The bill was signed into law as Act 15 of 2003.

 

            *** Bureau of Wine Abolished -- The Senate voted 47-2 to adopt House Bill 1279, which amends the state Liquor Code to abolish the Bureau of Wine. The law also expands hours for liquor sales on St. Patrick’s Day, and permits the Liquor Board to sell corkscrews, wine and liquor accessories, trade publications, and wine glasses in state liquor stores.  The measure enables a restaurant or hotel with a liquor license to allow customers to leave the facility with a partially consumed bottle of wine that has been resealed if it was purchased in conjunction with a meal consumed on the premises.  The bill was signed into law as Act 59 of 2003.

 

Local Government

* * * Sewer Flexibility - By a 48-1 vote, the Senate approved House Bill 51, which amends Title 53 (Municipalities Generally) regarding water and sewer connection fees.  The bill allows local municipal authorities more flexibility in defining design capacity for water and sewer systems. The bill was enacted as Act 57 of 2003.

 

* * * Home Rule Legislation - The Senate unanimously approved House Bill 77, which amends existing state municipal government law to provide a new home rule charter option when local voters initiate a consolidation or merger. The bill was signed into law as Act 29 of 2003.