Senate of Pennsylvania

FOR EDITORIAL BACKGROUND

As the Senate of Pennsylvania concluded its 200th year, dozens of bills won enactment as the state's bicameral legislature wrapped up the 1989-90 two-year session.

Prior to December 10, 1790 -- the date of the first meeting of the Senate of Pennsylvania on the second floor of Independence Hall in Philadelphia -- the commonwealth was governed by a unicameral House of Representatives and a non-elected, 12-member Supreme Executive Council.

Two centuries later, and with final votes nine days before the official end of the two-year session at midnight November 30, the 1990 state Senate and House had made its mark on the future -- and in history -- by addressing issues of importance to Pennsylvanians today.

A total of 89 bills were passed and sent to the governor as the 1989-90 session came to a close.

Legislation to establish a comprehensive hazardous materials safety and emergency preparedness program, to better protect the public during times of chemical spills and industrial accidents, became law.

Coupled with the Democrat administration's trash recycling law, toxic waste cleanup law and Pennvest clean water program, the hazardous materials safety program was viewed as another key accomplishment in the continuing effort to protect the public health and preserve Pennsylvania's environment.

Also enacted in the post-election session were a series of bills to address the continuing problems of crime, drugs and prison overcrowding.

For the first time, Pennsylvania has a law on the books that requires -- beginning in the 1991-92 school year -- instruction in grades kindergarten through 12 on the dangers of drug, alcohol and tobacco abuse.

Also passed was a bill creating 24 new common pleas court judgeships in Pennsylvania (including five for a special "drug court" in Philadelphia), a measure providing for the eviction of drug traffickers from rental units and housing projects, and legislation providing for various alternatives to jail for non-violent criminals as well as the creation of military-style, motivational "boot camps" for young offenders.

Enacted earlier in the session was a far-reaching prison expansion bill to add 5,600 new cells to the state prison system and to provide matching grants to counties for local jail construction projects.

Other new laws permit municipalities to charge developers impact fees for necessary road and sewerage infrastructure improvements brought on by new development, require that lethal injection replace the electric chair as the method of execution under the state's death penalty statute, protect the confidentiality of people who are tested for AIDS so that fear of disclosure does not prevent detection, and protect the jobs and other rights of Pennsylvania National Guard and other military reserve personnel while they're away from home on active duty.

Major accomplishments earlier in 1989-90, meanwhile, included the enactment of Governor Casey's third and fourth no-tax-increase state budgets, passage of a sweeping auto insurance rate rollback law, approval of the so-called Medicare Overcharge Measure to prevent senior citizens from having to pay excess fees for health care services, first-session approval of a judicial reform constitutional amendment, passage of the most stringent anti-corporate takeover law in the country, and enactment of many new weapons in the war against drugs.

These and many other issues, new laws and bills are described in the summary that follows.

Legislation referred to 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 measure was vetoed by the governor.

*** 1990-91 State Budget -- For the fourth consecutive year under the Casey administration, the General Assembly enacted a no-tax-increase state spending plan for fiscal 1990-91.

Final legislative approval of the $12.2 billion ($12,210,554,000) General Fund came on a vote of 27 to 22 in the Senate at 3:20 a.m., Sunday, July 1. All 23 Senate Democrats and four Republicans voted for adoption of the budget conference committee report (HB 623). The measure, earlier adopted (132-68) by the House, was signed into law by the governor (Act 7A/1990) later that same morning.

Instead of raiding the pockets of taxpayers for more, Pennsylvania's new budget put the brake on spending growth. It was enacted without dipping into the state's $126 million tax stabilization account, or Rainy Day Fund -- a reserve held as a cushion to prevent future tax increases during times of economic decline.

Key elements of the budget included an overall spending increase of only 1.7 percent, but larger increases in critical areas.

State subsidies for basic education were increased by $85 million, or 3.2 percent, to a total of more than $2.7 billion in fiscal 1990-91.

Act 7A provided for a $50 increase, from $2,330 to $2,380, in the Factor for Educational Expense (FEE) portion of the state's complex subsidy formula, known as ESBE. Also, there was a $10 increase, from $105 to $115, in the Average Daily Membership (ADM) allowance for small school districts.

The budget provided a total $380 million for special education, a 9.1 percent increase over the prior year. Of that amount, $84 million was earmarked to pay off a special education debt to school districts in four installments during the fiscal year.

State-owned and state-related universities, meanwhile, were slated for a 4.5 percent increase in their instructional subsidies (see Non-Preferred Appropriations). Additional funding was provided through a $28 million tuition challenge grant program. The universities were to receive an additional $100 per student for keeping tuition increases under $100 per student, or six percent, whichever is greater.

Grants to full-time college students through the Pennsylvania Higher Education Assistance Agency were boosted by 10 percent, to $140 million.

Community colleges received a 12.5 percent increase in funding to more than $124 million.

In the human services area, the budget included a 19 percent increase in funding, to a total of $190.6 million, for county-operated children and youth service programs. Community-based services for the mentally retarded were increased by nearly 13 percent to $104.4 million.

State funding for domestic violence and rape crisis programs was increased by 30 percent to more than $8.2 million.

The budget doubled funding, to $7.5 million, for an expansion of the senior citizen Transitional Care and Family Caregiver program. Under the program, designed to keep senior citizens at home instead of in institutions, family members are given the help they need to care for older relatives. Also, the budget included a $10.3 million, or 20 percent, increase -- to $61.8 million -- for senior citizen personalized services under the state's PennCARE program.

On the economic development front, the budget maintained the state's commitment to boost job creation by finally utilizing the remaining $117 million of a voter-approved $190 million economic development bond issue. Although the bond issue was approved by Pennsylvania's voters more than six years ago, the state -- up till now -- had used mostly general fund tax dollars, coupled with $73 million of the bond authorization, to finance Pennsylvania Economic Revitalization Fund (PERF) job creation initiatives. Final utilization of the authorization was in keeping with what Pennsylvania's citizens overwhelmingly approved in April, 1984.

Receiving a double-digit increase in the budget was the state's Department of Corrections. Boosted by some $36 million or nearly 11 percent, the department's new budget of $369 million will facilitate the hiring of some 720 new guards and other personnel. Additionally, the legislature approved a separate proposal to significantly expand the state's overcrowded prison system (see Prison System Expansion below).

Another element of the budget continued the state's anti-drug "Pennfree" initiative at a funding level of $59.5 million in fiscal 1990-91.

In the area of transportation, a total of $239.7 million was allocated for mass transit assistance with the bulk of the funds, nearly $168 million, going to the state's largest system -- the Southeastern Pennsylvania Transportation Authority (SEPTA). A total of $60.7 million was provided Port Authority Transit (PAT) of Pittsburgh. The remainder was to be divided among 19 much smaller systems throughout the commonwealth.

Also included in Act 7A was a $1.6 billion ($1,589,136,000) Motor License Fund budget, financed largely by fuel taxes and various road user fees. The total is about $17 million more than the previous year. The budget included $627.2 million for highway maintenance, $167 million for highway construction and $158 million for local road maintenance and construction payments in fiscal 1990-91.

*** Prison System Expansion -- While the 1990-91 state budget provided for a major boost in funding for the operation of the state Department of Corrections, the final budget agreement also included the General Assembly's enactment of a far-reaching prison expansion bill (HB 2116), signed by the governor (Act 71, 1990).

The legislation was viewed as a beefed up attempt by both the governor and the General Assembly to deal with the vexing problem of prison overcrowding throughout the state.

In addition to expanding the state's prison system capacity by more than 5,600 new cells, the legislation called for a $200 million state bond issue to help counties finance local jail repair, construction, reconstruction, rehabilitation and expansion projects.

Approved by voters in a statewide ballot referendum November 6, 1990, the bond issue will enable the state to provide matching grants to counties for local jail construction projects.

The legislation, meanwhile, authorized the construction of four new state prisons and the expansion of others to increase state prison system capacity by a total of 5,612 new cells. Each of the four new state correctional institutions was to consist of 1,000 cells.

One maximum security prison was to be located in Greene County while a medium security facility was to be sited in Clearfield County. Locations for the remaining two new state prisons, medium security facilities, were not designated by the legislation. Three of the new state prisons were to be constructed by private developers and operated by the state under a lease-purchase agreement while the fourth was to be built under standard capital budget construction procedures.

*** House Transfer, Fees; Military Base Prohibition -- Approved as part of the final 1990-91 budget accord was legislation (HB 406, Act 67/1990) shifting $27 million in surplus funds from the House of Representatives back to the General Fund and providing for an increase in various fees to cover the actual cost of document filing, certain inspections, licenses and permits. The fee increases were expected to generate approximately $12 million.

The legislation also contained a provision prohibiting the use of military installations in Pennsylvania for the housing of prisoners.

*** Fund Transfers -- Passed as part of the 1990-91 budget compromise was House Bill 2618 (Act 68/1990) which authorized the transfer of $125 million in surplus revenues from the State Workmen's Insurance Fund (SWIF) to the General Fund for in-lieu-of tax payments to the commonwealth from 1985 through June 30, 1990. Under terms of the legislation, agreed to by the executive branch and the Pennsylvania Chamber of Business and Industry, an additional transfer of $37 million was also anticipated during fiscal 1990-91. Also in keeping the administration's agreement with business leaders, the legislation contained language that would allow for an expected 15 percent premium reduction for companies insured with SWIF.

Even with the SWIF transfers, the State Workers Insurance Fund -- an insurer of "last resort" for businesses that have difficulty in securing workers' insurance in the private sector --was expected to have an unassigned surplus of $127 million.

A similar $95 million SWIF Fund transfer was authorized in the prior year (HB 1687, Act 9A/1989) as was an $11.7 million transfer from the state's Unemployment Compensation Interest Fund (HB 1020, Act 22/1989). Not to be confused with the state's $1.5 billion UC Trust Fund, the UC Interest Fund was established years ago to make interest payments on the state's long-standing Unemployment Compensation debt to the federal government. Since the Casey administration repaid that debt, there was no longer a need for the UC Interest Fund.

*** Capital Budgets -- Passed by the General Assembly were various capital budget bills authorizing bond-financed public improvement projects (HB 2556), highway projects (HB 2463, Act 218/1990), bridge projects (HB 235, Act 200/1990) and mass transit capital expenditures (HB 2470, Act 117/1990).

House Bill 2556 itemized project authorizations totaling nearly $2.2 billion ($2,161,738,100) with $1,178,183,000 for public improvements, $47,487,100 for furniture and equipment, $279,009,000 in transportation assistance, $137,555,000 for flood control and $519,504,000 in redevelopment assistance. While the governor signed the bill into law, he line-item vetoed certain projects.

House Bill 2463 detailed highway improvement project authorizations totaling nearly $2.9 billion ($2,884,676,000).

House Bill 235 included authorization for bridge repair, rehabilitation and replacement projects totaling more than $4.2 billion ($4,228,748,950).

House Bill 2470 authorized $75,548,000 for mass transit improvement projects and $1,278,000 for public improvement projects. A large chunk of that authorization was for an overhaul of transit and rail vehicles operated by the Southeastern Pennsylvania Transportation Authority or SEPTA, $35 million, and by Port Authority Transit (PAT) of Allegheny County, $13.7 million. A total of $4.5 million was authorized for the overhaul of vehicles operated by other local mass transit agencies in Pennsylvania.

Additionally, the legislation called for a total of $22.3 million for various improvement projects at 39 municipal airports throughout the state.

And the legislation included $1,088,000 for heating and lighting improvements at the State Farm Show Complex in Harrisburg.

*** Non-Preferred Appropriations -- Enacted were 40 so- called non-preferred appropriations bills (HBs 2515-2554), which became Acts 13A-52A/1990, providing more than $608 million ($608,466,000) to state-related and state-aided colleges and universities, health and charitable institutions, and museums in fiscal 1990-91.

The bulk of the total went to institutions of higher education and, in particular, to Pennsylvania's four state-related universities as follows: Penn State ($243,635,000), Pitt ($133,822,000), Temple ($136,518,000) and Lincoln ($9,896,000). The largest non-state related higher education appropriation was $37,628,000 for the University of Pennsylvania.

*** "Sunny Day" Awards -- As recommended by the governor, the General Assembly in 1989-90 approved a total of $54.5 million in Sunny Day Fund appropriations for business startups and expansions around the commonwealth.

The special low-interest loans were expected to result in the creation of more than 5,000 new jobs.

Senate Bill 516 (Act 53A/1990), approved near the end of the two-year session, provided $6.5 million in financing as follows:

-- $4 million to Koppel Steel Corporation for the purchase of machinery and equipment at its steel works and rolling mills facilities in Beaver County, expected to create 650 new jobs; and

-- $2.5 million for the construction of a Consolidated Rail Corporation customer service center in Allegheny County, expected to create 400 new jobs.

Enacted earlier was House Bill 2571 (Act 12A/1990) which provided for a total of $38 million in Sunny Day loans as follows:

-- $10 million for the location of Sony Corporation at the old VW plant in Westmoreland County, expected to create 1,000 new jobs;

-- $5 million to May Department Stores Company for the establishment of a regional distribution center in Wilkes-Barre, expected to create 350 new jobs;

-- $2.5 million to Ambridge Marine Inc. for the establishment of a manufacturing facility in Ambridge Borough, Beaver County, expected to create 350 new jobs;

-- $3 million to Enzymatics, Inc. to purchase machinery and equipment for its manufacturing facility in Montgomery County, expected to create 332 new jobs;

-- $9 million to Children's Hospital in Philadelphia to establish a research and development center, expected to create up to 600 new jobs; and

-- $8.5 million to Centocor, Inc. to renovate and expand its pharmaceutical manufacturing facility in Malvern, Chester County, expected to create up to 1,000 jobs.

In 1989, the General Assembly approved a $10 million Sunny Day loan (HB 2125, Act 51A/1989) to Piper Aircraft for the reestablishment of operations in Lock Haven, Clinton County -- a project which was expected to create 670 new jobs.

The state's Sunny Day Fund, first established in 1985, provides low-cost financing to encourage major job-producing businesses to locate or expand their operations in Pennsylvania. Projects for Sunny Day funding must be recommended by the governor and win at least a two-thirds vote of approval in both houses of the General Assembly.

*** Sunny Day Extension -- Enacted was a bill (HB 2579, Act 6A/1990) extending the time period for the award of Sunny Day funds for Glass Adventures Inc., renamed U.S. Glass Inc., from June 30, 1990 to June 30, 1991. The company was approved for $6 million in Sunny Day financing in 1988 for the location of a glass manufacturing facility at Donora, Washington County. The project was expected to result in 500 new jobs within three years of the facility's operation.

*** PUC, Consumer Advocate; Small Business Advocate Budgets -- At approximately 4 percent more than the previous year's funding level, the Public Utility Commission's 1990-91 operating budget was set at $31,276,000 by House Bill 2312 (Act 9A/1990). The legislation, however, designated that $4.6 million of the total be appropriated to the PUC's Bureau of Safety and Enforcement. The legislation appropriated $411,000 to pay for the salaries and expenses of the PUC commissioners -- $65,000 below what was appropriated for that part of the PUC budget in 1989-90.

House Bill 2313, which became Act 10A/1990, established a $3,173,000 operating budget for the Office of Consumer Advocate in fiscal 1990-91. That compares with $2,964,000 in 1989-90.

Also passed without fanfare was House Bill 2314 (Act 2A/1990) which provides $483,000 in fiscal 1990-91 for the state's Small Business Advocate.

The Office of Consumer Advocate represents average citizens in utility rate cases before the Public Utility Commission while the state's Small Business Advocate represents small business concerns in many of the same cases. Although the legislature establishes the budgets for the PUC, the Office of Consumer Advocate and the Small Business Advocate, funds for their operations come from assessments on public utilities.

*** Miscellaneous Budgets -- Enacted were a series of bills providing for an $8,294,000 budget for the administration of the State Employees' Retirement System in 1990-91 (SB 1544, Act 4A/1990), a $14,385,000 budget for the administration of the Public School Employees' Retirement System in 1990-91 (HB 2462, Act 3A/1990), a $19,789,000 budget for the administration of the state's workers' compensation program in 1990-91 (HB 2458, Act 11A/1990), a $14,287,000 operating budget for the Bureau of Professional and Occupational Affairs, the state Board of Medicine, the state Board of Osteopathic Medicine, the state Board of Podiatry and the state Athletic Commission in 1990-91 (SB 1547, Act 8A/1990); and an appropriation of $60,000 from the Fish and Boat Funds to pay debt service obligations of the two funds in fiscal 1990-91 (SB 1549, Act 5A/1990).

Funding for the operation of both the state employees' and school employees' retirement systems comes from earnings on investments, while the administration of the workers' comp program is funded by assessments on insurers and self-insurers. Funding for the operation of the Bureau of Professional and Occupational Affairs and other professional boards comes from fees and fines on licensees.

***"V" 1989-90 Supplemental -- In what is usually a routine, bipartisan practice of passing a governor's supplemental appropriations budget request toward the end of every fiscal year, Senate Republicans turned the process in the Spring of 1990 into a full-fledged political football that had the effect of delaying vitally important medical assistance payments to hospitals for the care of low-income patients.

On a vote of 27 to 21 on May 1, 1990, with Senate Democrats voting in the negative, the Senate GOP passed a bloated 1989-90 supplemental appropriations bill (SB 904) that contained $36 million more than what the state had the ability to afford.

Because of the Senate GOP additions to the administration-backed, House-passed $136.7 million supplemental appropriations bill, the legislation -- which eventually became Act 1A of 1990

-- didn't arrive on the governor's desk until May 22. Payments to hospitals were interrupted during the week of May 7. In the end, the governor simply line-item vetoed the overspending proposed by Senate Republicans.

*** "Tax Increment" Economic Revitalization Tool -- In a further attempt to revitalize blighted neighborhoods in urban areas of the state and promote economic development, the General Assembly unanimously approved and Governor Casey signed legislation (HB 2179, Act 113/1990) providing for a new funding mechanism for redevelopment projects. Under the proposal, redevelopment authorities would be able to issue tax increment bonds to finance capital improvement projects in so-called tax increment districts. The tax increment financing would be based on revenues anticipated from tax dollars generated within the district after it undergoes redevelopment. New tax revenues generated after redevelopment would retire the tax increment bonds.

"V" Widows' Tax Repeal -- Legislation (SB 775) providing for an across-the-board elimination of the state's so-called widows' tax passed both houses of the General Assembly but was vetoed by Governor Casey.

A motion to override the governor's veto, which requires a two-thirds majority of 34 votes in the Senate, failed on a vote of 27 to 18.

In his veto message, Casey said that the legislation to totally repeal the state's six percent inheritance tax on interspousal transfers of property actually amounted to "a huge giveaway to the rich, masquerading as a bill for the poor." He noted that property held jointly or in the name of both spouses is already exempt from the state's inheritance tax. Most lower and middle-income couples, the governor said, own their homes and other assets jointly and, therefore, will pay no inheritance tax when one spouse dies. "Some of the wealthiest people in Pennsylvania", according to Casey, would be the primary beneficiaries of an across-the-board repeal of the tax.

Senate Bill 775 would have reduced the inheritance tax on interspousal transfers of property, beginning on July 1, 1991, by one percent annually until July 1, 1996 when the levy would have been totally eliminated.

By 1996, total repeal of the levy would have resulted in an estimated $60 million annual revenue loss to the state.

Instead of Senate Bill 775, Casey has urged the General Assembly to send him another measure that provides relief "to those people for whom this tax constitutes an unconscionable economic burden at the traumatic time of loss of a spouse."

"V" Video Poker -- In an effort to offset the need for increases in municipal and school district real estate taxes, the Senate voted (28-20) to send Governor Casey a bill (SB 1136) that -- subject to local voter approval -- would have permitted video poker machines in liquor-licensed restaurants, bars, hotels or clubs. The bill was vetoed by the governor.

Under the measure, which had earlier passed the House (107-88), municipalities and school districts would have split profits generated by video poker with machine owners, licensed liquor establishments, the state Lottery and the state attorney general's office.

The machines would only have been permitted in a municipality if approved by local voters in a referendum -- a fact skirted in the governor's veto message.

No one under the age of 21 would have been permitted to play the machines.

The legislation would have established a five-member Video Poker Machine Control Commission to oversee licensing and regulation of video poker. The measure contained a list of licensing fees including $300 annually per machine for licensed establishments. No more than three machines would have been permitted per establishment.

The proposal required that the video poker machines have a win -- or payout -- percentage of at least 80 percent. The machines would not have directly dispensed cash. Winners would have received credit tickets or receipts for free games or for redemption into cash. Individual cash rewards could not have exceeded $500.

Profits generated from the machines would have been divided as follows: 34 percent for machine owners, 34 percent for the establishment, 14 percent for the local municipality, 11 percent for the local school district, 5 percent for the state's senior citizen Lottery Fund and 2 percent for the state Attorney General.

The bill also stipulated that $1 million annually be designated for the treatment of compulsive behavior.

*** Games of Chance -- The Senate concurred (37-11) in House amendments to a bill (SB 1140, Act 195/1990) allowing additional not-for-profit civic and community service organizations to conduct "small games of chance" for fund-raising purposes.

The General Assembly first authorized small games of chance for volunteer fire and ambulance companies, veterans groups, religious and charitable organizations in 1988.

Awaiting the governor's action as of this writing, Senate Bill 1140 would permit auxiliary groups, such as band and football boosters, sportsmen's groups and others, to conduct small games of chance. Certain groups that do not own or lease buildings or do not have liquor licenses would also be eligible to conduct games.

*** Tax Replacement; Employer Credits; Realty Tax Exemption -- On votes of 29 to 20 in the Senate and 104 to 96 in the House, the General Assembly adopted and the governor signed a conference committee report on legislation (HB 285, Act 21/1989) providing for a replacement levy for the state's bank shares tax which was invalidated by the state Supreme Court in February, 1989.

The legislation also extended for a longer period of time a higher mutual thrift tax rate established in the 1987-88 legislative session to make up for revenue lost as a result of a separate, but similar, 1987 court ruling affecting taxes paid by savings and loan associations.

Companion measures to House Bill 285 were also enacted. House Bill 31, which became Act 20/1989, established a procedure and time frame for banks which were due refunds as a result of the court's ruling to file an appeal with the state Board of Finance and Revenue. House Bill 1373, which became Act 23/1989, established a tax credit for banks which were not in existence before January 1, 1979. The credit was intended to aid banks that were being forced to pay a higher tax even though they were not chartered when the unconstitutional tax was in effect and were not due any refunds.

Meanwhile, another provision of House Bill 1373 extended, until June 30, 1993, a program of tax credits to businesses that hire welfare recipients as well as individuals who receive Aid to Families with Dependent Children (AFDC). The program, which first began in 1982, entitles employers to a state tax credit of up to $3,600 for each cash assistance or AFDC recipient they employ over a three-year period.

The conference report on House Bill 285 also contained a provision to exempt certain land transfers designed to protect open-space and preserve historic, recreational, scenic or agricultural areas from the state's realty transfer tax.

*** Brewers' Tax Credit, Farmers' Tax Filing; Clergy Tax Withholding Exemption -- The General Assembly passed and the governor signed a measure (HB 1435, Act 110/1989) reenacting a special tax credit to assist the state's beer industry, providing for a more convenient state income tax filing schedule for farmers, and eliminating state income tax withholding for members of the clergy.

The beer industry tax credit, which was first enacted in 1974, actually went out of existence on December 31, 1988 -- just days after Governor Casey, on constitutional grounds, had vetoed an earlier extension bill (SB 114/1988) approved by the General Assembly. The earlier bill would have applied the tax credit to only brewers with headquarters in Pennsylvania, a provision Casey contended violated the Commerce Clause of the United States Constitution.

The new law, which has the effect of extending the credit until December 31, 1993 and making it retroactive to 1974, does not contain the requirement that brewers receiving the credit must be headquartered in Pennsylvania. It does, however, stipulate that the tax credit, up to a maximum of $200,000 annually, be for the purchase of plant, equipment and machinery for use in Pennsylvania. Additionally, the credit is only available to those brewers with an annual production of 300,000 barrels or less.

Also enacted as part of House Bill 1435 was a long-sought provision, supported by the Pennsylvania Farmers Association, to make it easier for farmers who also hold other non-farming jobs to declare themselves as self-employed, make estimated tax payments, and not have state income tax withheld from their wages.

Specifically, the change in the law allows farmers with at least two-thirds gross income from farming (previous law stipulated at least two-thirds "taxable" income from farming) to file an estimated tax any time on or before January 15 of the succeeding year or file a final return and pay the entire tax by March 1.

The new legislation also conformed state and federal law so that state income tax is not required to be withheld from compensation for certain services when federal income tax is not required to be withheld. While the measure was not intended to reduce anyone's tax liability, it eliminated a requirement of withholding of state income tax from compensation for members of the clergy, certain agricultural labor, domestic service and delivery of newspapers by persons under the age of 18.

*** Tax Audit for Drug Convicts -- Legislation (SB 625) intended to encourage state audits of tax returns of persons convicted of selling, distributing, delivering, manufacturing or possessing illicit drugs was enacted (Act 98/1989).

The new law requires the clerk of courts of each county to report the names of individuals convicted of selling or possessing illegal drugs valued at more than $1,000 to the state Department of Revenue.

*** Electronic Funds Transfers -- Passing the General Assembly was a bill (SB 1324) signed by the governor (Act 134/1990) providing for electronic or wire transfer of business-related tax payments in excess of $20,000. The measure, supported by the state treasurer, will enable the state to garner immediate interest earnings on large tax payments -- earnings that previously were lost when the payments were sent by mail. The new law also enables taxpayers owed refunds in excess of $20,000 to receive those refunds via electronic funds transfers as well.

* Late Payments to Municipalities -- Legislation (SB 374) that would have required the state to pay interest to municipalities for late payments of funds the commonwealth owes municipalities cleared the Senate (49-0) but died in the House.

* Fund-Raising Sales Tax Exemption -- Passing the Senate (50-0) was a bill (SB 365) that would have exempted fund-raising sales conducted by school-related organizations, such as parent teacher organizations (PTOs) and home and school councils, from the state's six percent sales tax. Similarly, sales of items sold by volunteer fire companies and ambulance and rescue organizations would also have been sales tax exempt under the measure. Final House action never materialized.

* Silver & Gold Sales Tax Break -- The retail sale of gold, silver or other coins, or gold and silver bullion, would have been exempt from the state's six percent sales tax under a measure (SB 1008) which cleared the Senate (31-17). The legislation, which could have resulted in a $9 million annual revenue loss to the state, died in the House.

* Horse Sales Tax Exemption -- Over the objections of Senate Democrats, Senate Republicans voted (27-22) to pass a special interest tax exemption bill (SB 1396) that would have cost the state $3.5 million in lost revenue in fiscal 1990-91. Under the measure, the sale of horses and feed, supplies and other equipment used in the care of horses would be exempt from the state's six percent sales tax. The bill was not considered by the House.

* Prefab/Mobile Home Sales Tax Reduction -- Again over Democrat objections, Senate Republicans passed (27-22) a fiscally irresponsible bill (SB 1116) that would have cut the state sales tax rate on purchases of prefab housing and modular and mobile homes from 6 percent to 3.6 percent. The measure, while potentially for a laudable purpose, would have resulted in an unbudgeted state revenue loss of $14.6 million in fiscal 1990-91.

* Volunteer Firefighter Retirement Benefits -- Passed (48-0) by the Senate was a bill (SB 403) that would have given volunteer fire companies the option of establishing retirement benefit plans for their members. The bill died in the House Local Government Committee.

* Cigarette Tax Designation -- A portion of the state's cigarette tax would have been designated to assist volunteer fire companies under a bill (SB 715) passed by the Senate (50-0).

Under the proposal, slightly more than half a penny ($.0055) of the state's 18 cents per pack tax on cigarettes (approximately $6.9 million annually) would have been designated for a Volunteer Fire Company Challenge Grant Program. State matching grants of up to $2,500 would have been awarded based on the success of a fire company's local fund-raising effort. The House did not act on the bill.

*** Fire Tax Distribution -- Enacted was a measure (SB 929, Act 119/1990) changing the distribution formula of funds from the state's foreign fire insurance premium tax. The change was designed to permit some additional funding for volunteer fire companies in approximately 33 municipalities.

* Aid to Long-Time Volunteers -- Passed (50-0) by the Senate was a bill (SB 1506) providing for financial assistance to long-time volunteer fire fighters who have reached the age of 65. The bill would have allowed volunteer firemen's relief associations to use revenues generated by the state's tax on foreign fire insurance premiums to provide assistance to elderly volunteers who have 20 years of active service. The bill died in the House.

*** Ben Franklin's Will -- Unanimously passed by the General Assembly was legislation (SB 1135, Act 173/1990) that would appropriate monies left to the commonwealth in the wills of Benjamin Franklin and Scottish druggist John Scott. Franklin, who died in April 1790, left bequests to Philadelphia and Boston as well as to the states of Pennsylvania and Massachusetts to be distributed at 100 and 200 year intervals after his death.

Under Senate Bill 1135, an estimated $1.7 million will be divided equally between the Franklin Institute in Philadelphia and Commonwealth Community Foundations for the purpose of supporting educational and employment training programs throughout the state.

* Philly Wage Tax Political Ploy -- Senate Democrats objected as the Senate Republican majority voted (27-21) to pass a bill (SB 1580), sponsored by the two members of the Republican caucus from Philadelphia, designed to handcuff Philadelphia's ability to solve its own fiscal problems.

The measure, motivated by the political goal of trying to make a Democrat-turned-Republican Philadelphia senator look good to his constituency in an election year, would have capped the Philadelphia wage tax rate for city residents at its current level of 4.96 percent. The popular sounding proposal -- pronounced "DOA" upon arrival in the Democrat-controlled state House -- would actually have had the effect of limiting the city's taxing options; thereby adversely affecting the city's already shaky credit rating on Wall Street.

* State Funds for Federal Program -- Without saying what existing state programs they would cut or what taxes they would increase, Senate Republicans pushed through (28-19) a bill (SB 1259) to spend millions in state tax dollars to fill the gap in the federal government's underfunding of the Head Start program for low-income children in Pennsylvania. The bill would have cost the state $5.8 million in fiscal 1990-91 and more than $29 million annually by fiscal 1994-95. Action in the House never materialized.

* Cancer Research Check-Off -- Clearing the Senate (50-0) was a bill (SB 121) that would have established a check-off system on state income tax returns allowing taxpayers to donate one dollar of any state tax refund they are owed for cancer research. The bill, which never passed the House, had been amended in the House to permit riverboat gambling.

* Housing Co-op Transfers -- Passing the Senate (49-0) was a bill (SB 332) that would have exempted certain transfers of ownership, stockholder or membership interests in cooperative housing units from the state's realty transfer tax. Final House action never materialized.

** "MacBride Principles" -- Clearing the Senate in the form of an amendment to a House-passed bill (HB 1069) was a proposal to restrict future investment by the state employees' and public school employees' retirement systems in companies that practice religious job discrimination in Northern Ireland.

The measure would have resulted in the state's adoption of the so-called "MacBride Principles" -- a set of nine guidelines of equal employment opportunity designed to encourage companies in Northern Ireland to end alleged ethnic and religious discrimination in employment and hiring practices. The guidelines are named after Nobel Peace Prize winner Sean MacBride.

This and other provisions of House Bill 1069, however, failed to win enactment as the House did not act to concur in Senate amendments to the bill.

* Early Retirement -- Clearing the Senate (50-0) was a bill (SB 364) that would have allowed an estimated 340 state Board of Probation and Parole officers and some 190 law enforcement personnel within the state attorney general's office to retire at age 50 with full benefits from the State Employee's Retirement System. A similar "early retirement" benefit is already in existence for state police officers, state correctional officers and LCB enforcement officers and investigators. With the exception of an existing early retirement "window" for state employees who have reached the age of 53 and have 30 years of service, the normal state employee retirement age for full pension benefits is age 60. Senate Bill 363 died in the House.

* Retiree Substitute Teaching -- Passing the Senate (50-0) was a bill (SB 258) that would have increased the number of days a retired teacher may substitute without losing pension benefits from 75 days per school year to 90 days. Final House action never materialized.

* District Justice Buy Back -- The Senate passed (50-0), but the House never took final action on, a measure (SB 287) that would have allowed an estimated 270 district justices who are now members of the State Employees Retirement System (SERS) to buy back as creditable time their service as justices of the peace prior to 1970. A 1968 constitutional amendment paved the way for district justices to be considered state employees and therefore members of SERS.

* Cadet Nurse Buy Back -- The Senate passed (48-0) a bill (SB 266) that would have allowed members of the Public School Employees Retirement System to buy back time spent in training in the Cadet Nurse Corps as creditable nonschool service. The bill died in the House.

*** Federal Lien Filing -- Enacted was a bill (HB 709, Act 69/1989) providing for a uniform system for the filing of all federal liens. The new law authorizes the filing of federal tax liens as well as other federal liens on property in the prothonotary's office of the county in which the property is located.

*** Fish Hatcheries -- Signed by the governor was a bill (HB 2725, Act 162/1990) authorizing $2,630,000 from the state's Fish Fund for fish hatchery capital improvement projects in Clinton, Erie and Forest Counties.

-- EDUCATION --

*** Drug Education; Teacher Background Checks -- Students in grades kindergarten through 12 will be taught about the dangers of drug, alcohol and tobacco use under legislation (HB 1810, Act 211/1990) overwhelmingly approved by the General Assembly. The measure also addresses a variety of other educational issues, including background checks for school employees, and day care centers in school buildings.

The drug, alcohol and tobacco use instruction will be integrated, where possible, into existing health courses and will be required in all grades in all public elementary and secondary schools beginning in the 1991-92 school year.

The legislation also amends existing law requiring background checks to allow Pennsylvania residents to work on a provisional basis for up to 30 days while a background check is under way (out-of-state residents could work for 90 days). Provisional workers could not be employed during a strike.

Additionally, the measure makes it easier to operate day care centers in school buildings. Such centers are to be "deemed" to comply with state Department of Public Welfare regulations concerning physical site requirements.

House Bill 1810 also provided for higher education equipment grants and authorized continued operation of the Thaddeus Stevens State School of Technology.

*** Student Steroid Use Prohibited -- Enacted was a measure (SB 454, Act 93/1989) requiring schools throughout the commonwealth to prohibit the use of anabolic steroids, except for valid medical purposes, by any pupil involved in school-related athletics. Body building, muscle enhancement, increasing muscle bulk or strength or the enhancement of athletic ability would not be a valid medical purpose. Minimum penalties for violation of the ban include suspension from school athletics for the remainder of the season on a first offense, for the remainder of the season and the following season for a second offense, and permanent suspension for a third violation.

The legislation also requires schools to include education regarding the dangers of anabolic steroids with other drug and alcohol education programs.

*** Telephone Pager Ban -- Public school students cannot possess telephone paging devices or beepers under legislation

(HB 810) signed into law as Act 103 on Dec. 22, 1989.

Authorities contend that such devices have been used by students hired as drug runners.

School districts may allow exceptions for students who are members of volunteer fire companies, ambulance associations or rescue squads; and for students who need pagers due to the medical condition of an immediate family member.

*** ESBE Formula -- Changes in the Equalized Subsidy for Basic Education (ESBE) for fiscal 1990-91 were provided for in the state budget bill (See Budget & Finance, HB 623, Act 7A/1990).

In the prior 1989-90 fiscal year, a separate ESBE measure (SB 252, Act 43/1989) was enacted. That legislation, for the first time, fully funded at a 100 percent level the state's commitment to schools through ESBE.

Act 43 of 1989 also repaid a $99 million debt to school districts for special education costs, changed the mid-term appointment process for school directors, clarified eligibility requirements for higher education equipment grants, added the position of business administrator to the school code, made group health insurance available to some school retirees and changed the Approved Private School funding formula.

The legislation requires school districts to use the same mid-term appointment process as municipal governments. Vacancies in municipal government must appear on the ballot if they occur 60 days prior to a municipal election. School board vacancies under prior law did not have to appear on the ballot unless they were filled 60 days prior to an election.

*** PHEAA Scholarship Increase -- An increase in scholarships awarded through the Pennsylvania Higher Education Assistance Agency was authorized by legislation signed into law as Act 80 on Dec. 20, 1989.

House Bill 689 permits annual scholarships of up to $2,500 if sufficient funds are available. The previous limit was $2,000.

*** Professional Standards and Practices Commission -- Legislation which re-established the Professional Standards and Practices Commission was signed into law as Act 71 on Dec. 14, 1989.

Senate Bill 253 changed the commission's membership and gave it disciplinary powers over the state's teachers, administrators and educational specialists.

The commission will discipline professional educators found guilty of immorality, incompetency, intemperance, habitual use of drugs or narcotics, cruelty, negligence or violation of the certification law. It will establish procedures for conducting disciplinary hearings.

Disciplinary actions will include private or public reprimands and the suspension or revocation of teaching certificates.

The commission may also make recommendations to the State Board of Education.

*** Early Intervention Services -- Unanimously passed in both the Senate and House was legislation (HB 1861, Act 212/1990) to create a comprehensive statewide program of early intervention services for children.

The multidisciplinary, interagency program created under the measure was to include the earliest possible intervention; referral services for families of eligible children; continuing assessment of at-risk children and descriptions of all agencies providing early intervention services.

The Department of Welfare will distribute funds to county mental health/mental retardation offices for services to children from birth to age 2. The Department of Education is responsible for services to children from age 3 until they reach a school district's minimum age for admission to first grade.

The legislation created a 15-member Interagency Coordinating Council to make recommendations concerning the state's early intervention programs.

*** English Fluency -- Pennsylvania institutions of higher education must certify that their instructors are fluent in English under legislation (SB 539) signed into law as Act 76 on July 9, 1990.

The fluency requirements will be enforced by the Department of Education. Institutions which fail to certify their instructors' English fluency will be fined $10,000 for each course taught by an uncertified faculty member.

Courses taught predominately in a foreign language would not be affected by the legislation.

*** Adult Literacy Eligibility -- People who have graduated from high school or have a General Education Development (GED) diploma will be eligible for adult literacy programs under a bill signed into law as Act 44 on May 31, 1990.

Adult literacy programs were previously open only to people who did not have a high school diploma or its equivalent.

House Bill 98 also changed the criteria used to evaluate proposals for adult literacy programs and added a requirement that the Education Department provide outreach and referral activities.

*** Library Aid to Distressed Municipalities -- Legislation which helps local libraries supported by economically distressed municipalities qualify for basic equalization aid was signed into law as Act 18 on June 30, 1989.

Senate Bill 842 allows such libraries to qualify for aid even if they fail to maintain or exceed their financial effort from the preceding year. Aid is approved if the State Librarian accepts evidence that the library or municipality did not attempt to substitute state funds for local effort.

* Mobile Classrooms -- The Senate unanimously approved legislation which would have provided partial reimbursement for mobile classrooms. Senate Bill 257 based the reimbursement on the lower of either the actual cost of the classroom or the product of the rate pupil capacity times $1,100.

The bill was in the House Education Committee when the session ended.

*** Higher Education Equal Opportunity Act -- Part time students can receive assistance through the Higher Education Equal Opportunity Act under legislation (HB 691) signed into law as Act 41 on July 7, 1989.

The act previously applied only to full time students. It provides economically, culturally or academically disadvantaged students with programs such as remedial learning services, counseling and tutoring.

*** Engineering School Equipment Act -- The General Assembly approved three bills which extended the Engineering School Equipment Act. House Bill 1302 -- signed into law as Act 53 on July 11, 1989 -- extended the act until June 30, 1990. House Bill 2465 -- signed into law as Act 72 on July 1, 1990 -- would have extended the act until June 30, 1990, but it was signed a day late. Senate Bill 1825, Act 177/1990, extended the act until June 30, 1993.

*** Pennsylvania College of Technology -- Legislation

(HB 1086) which allowed Williamsport Area Community College to become the Pennsylvania College of Technology was signed into law as Act 27 on July 1, 1989.

The new college is an affiliate of Penn State.

* Tuition Account Program -- Legislation intended to let people buy tomorrow's college tuition at today's prices split the Senate along party lines.

Senate Bill 2 would have created a Tuition Account Program (TAP). The measure would have allowed college tuition credits to be purchased at current tuition rates and redeemed seven or more years later, regardless of the rates then in effect. The bill was approved, 26-22, on a straight party-line vote.

Democrats compared TAP to the ill-fated CAT insurance fund, which faces millions of dollars in unfunded liabilities, and argued that the program would do nothing to contain the skyrocketing cost of college tuition. Democrats also suggested that the Republican TAP program would primarily benefit the wealthy who could afford to make a single lump sum tuition credit payment in advance.

Whether the program would have met federal tax-exempt status was also uncertain.

The bill was on the table in the House when the session ended.

*** Private Licensed Schools -- A restricted revenue account was created for license fees, fines and penalties paid by Private Licensed Schools under legislation (HB 1694) signed into law as Act 58 on July 11, 1989. Money paid by the schools previously went into the General Fund.

Money from the new account will be used to pay expenses incurred by the State Board of Private Licensed Schools.

* Technical Institutes -- Legislation (SB 398) which would have created a funding mechanism to establish Technical Institutes was approved by the Senate, 32-18.

Intended to provide technical training in specific job skills, the institutes would have been located at area vocational-technical schools and community colleges. The state would have paid one-third of the institutes' cost, up to $2,700 per student. Local sponsors and students would pay the rest.

The cost of Senate Bill 398 was estimated at up to $17 million. The bill was in the House Education Committee when the session ended.

* College Library Grants -- The Senate unanimously approved a bill which would appropriate $20 million for grants to libraries of community colleges, state-related institutions, institutions of the State System of Higher Education and independent nonprofit institutions of higher education.

Grants under Senate Bill 899 could be used to acquire books, reference materials, and automation and management systems. The money could also help fund preservation and conservation programs.

The bill was in the House Education Committee when the session ended.

* Latch Key Program -- The Senate unanimously approved legislation which would help public schools establish extended school daycare programs for "latch key" children.

Senate Bill 633 would require the Department of Education to fund demonstration programs for children age 5 through 12. It included a $1.5 million appropriation.

The bill was in the House Appropriations Committee when the session ended.

* Sign Language Courses -- Courses in sign language could be offered in public and private secondary schools under legislation (SB 699) unanimously approved by the Senate.

The bill would have allowed sign language to be offered as an elective course for credit. It was in the House Appropriations Committee when the session ended.

* Philadelphia City Controller -- Legislation which would have expanded the powers of the Philadelphia City Controller was approved by the Senate on a party-line vote (27-23).

Democratic opposition to Senate Bill 605 was based on the bill's merits and on the fact that it was sponsored by a Republican Senator who was seeking election as Philadelphia City Controller. Democrats called the bill a "blatant political power grab" by a candidate for the controller's office.

The bill was in the House Education Committee when the session ended.

* "At-Risk" Students -- Schools would be required to provide programs for students "at-risk" from drug and alcohol abuse under legislation unanimously approved by the Senate.

Under Senate Bill 614, schools would have to implement programs to identify and refer students at-risk. The state Department of Education would work with the Department of Health to develop instructional materials to train student assistance personnel.

The bill was in the House Education Committee when the session ended.

* Individual Transition Plans -- Individual transition plans would be required for handicapped students under legislation unanimously approved by the Senate.

Senate Bill 927 would require transition plans for students with mental, physical or multiple handicaps. The plans would help ensure that students are prepared to make the transition from school to community living and employment.

Transition plans would be mandatory beginning at age 14, and would be developed by an interdisciplinary team. The plans would be revised annually until students graduate or reach age 21.

The bill was in the House Appropriations Committee when the session ended.

*** Driver Training Vehicles -- The House and Senate have unanimously approved legislation (SB 933, Act 146/1990) which allows driver training vehicles to remain in service for five years or 50,000 miles, whichever occurs later.

*** State System of Higher Education -- Legislation which expands the State System of Higher Education's authority to sell property and undertake maintenance and construction projects -- and creates a non-discrimination policy -- was signed into law as Act 103 on July 11, 1990.

House Bill 1083 will let SSHE directly undertake and administer design, construction, repair, renovation and maintenance projects. It will also allow contracts for professional services from engineers and architects to be awarded through a merit selection process. All other contracts over $5,000 will have to be bid.

The Department of General Services must be notified about projects which involve buildings erected by the department.

The law requires equal opportunity to educational access, contracting and employment, and requires the system's board to develop a plan to assure nondiscrimination.

* Nurse Loan Forgiveness -- The Senate unanimously approved legislation (SB 41) which would create a loan forgiveness program for nurses modeled on the Urban and Rural Teacher Loan Forgiveness Act.

The program would be open to nurses who borrowed money through the Pennsylvania Higher Education Assistance Agency's guaranteed student loan program.

To qualify for the program, nurses would have to be licensed under Pennsylvania law and employed full-time in a Pennsylvania hospital, nursing home or other institution providing medical services. The bill was in the House Education Committee when the session ended.

*** School Bid Threshold -- School districts may purchase goods and services valued at up to $10,000 without advertising for bids as a result of legislation (SB 747) signed into law as Act 38 on May 4, 1990. The current bid threshold is $4,000. It was last increased in 1982.

School districts must request three price quotations for purchases which exceed $4,000 but are less than $10,000.

* Head Start Funding -- The Senate approved legislation which would use state funds to fill the gap in the federal government's underfunding of the Head Start program for low-income children in Pennsylvania. The vote was 28-19.

Senate Bill 1259 would have cost the state $5.8 million in the upcoming fiscal year and more than $29 million annually by fiscal 1994-95.

The bill was in the House Education Committee when the session ended.

*** School Tax Hearings -- Legislation which will let school district treasurers hold hearings on tax issues before cases are appealed to court was signed into law as Act 23 on April 4, 1990. Senate Bill 1335 also changed Pittsburgh School District's delinquent tax penalties to make the penalties consistent with those assessed by the City of Pittsburgh.

* Bus Safety Education -- The Senate unanimously approved legislation which would mandate regular instruction on school bus safety. Students would be taught appropriate behavior while on a school bus and proper procedures to follow when exiting or crossing in front of a bus.

Senate Bill 1432 required that safety instruction be offered as part of the school bus fire and emergency evacuation drills required under existing law. Those drills must be held twice a year.

The bill was in the House Education Committee when the session ended.

* Education Support Services System -- Students at risk would be helped by an Education Support Services System under legislation approved (49-1) by the Senate.

Senate Bill 1630 would let school districts provide a support service system to help students identified as being at risk of not achieving their academic or developmental potential. Districts could receive additional state funding to pay for additional services to at risk students. The estimated maximum cost of the bill was $4.8 million.

The bill was in the House Education Committee when the session ended.

*** Drivers Get Grace Period -- The state's new automobile insurance law cracked down on drivers who failed to obtain coverage for their vehicles. Lapsed insurance resulted in thousands of drivers losing their operator's licenses and/or registration tags. Legislation (SB 278) passed in the waning days of the 1989-90 session and signed by the governor

(Act 164/1990) eases this problem by giving drivers a 20-day grace period to purchase or renew insurance coverage before licenses and registrations are suspended. The bill makes the grace period retroactive to July 1, 1990. Those who fail to renew lapsed policies after the grace period face a three-month suspension and a $50 reinstatement charge.

In view of the Persian Gulf crisis, the legislature granted an exemption to vehicle owners who are members of the armed forces and who are called to temporary active duty. They will have 30 days after returning from duty to obtain insurance if it lapsed during their absence.

This legislation also contains a prohibition against discharging, disciplining or discriminating against an employee who refuses to operate a commercial motor vehicle because the vehicle does not comply with existing safety laws.

SB 278 also amends the Vehicle Code to approve the use of symbols on pedestrian traffic control devices. The word "walk" could be replaced with a "walking person" symbol while the words "don't walk" could be replaced with an "upraised hand" symbol.

*** Rail Property Disposition -- Gov. Casey has signed into law legislation (HB 560) which requires a railroad to give local municipalities the opportunity to purchase property previously used as a roadbed right-of-way. If a municipality is not interested, or if the utility rejects an offer, it then is required to offer the property for sale to the state Department of Transportation, the Department of Environmental Resources, the Game Commission or the Fish Commission. The bill was signed by the governor on Nov. 29, becoming Act 151 of 1990.

* Shared Ride Program Funding -- Legislation (Senate Bill 1271) that would have boosted spending limitations for county-operated shared ride programs passed the Senate late in the two-year session but failed to receive House action. Had the bill become law, the annual added cost to the Lottery Fund was pegged at $2 million. An additional $4 million would have been needed from the General Fund.

* Funeral Processions -- The House failed to act on Senate Bill 1350, legislation that would have permitted drivers in funeral processions to proceed through a red traffic signal, or stop sign, if the first vehicle had entered an intersection when a light was green, or if the first vehicle had first come to a complete stop where traffic is controlled by a sign.

*** Traffic Fines Boosted -- A defunct CAT Fund with a huge unfunded debt and a rash of accidents in highway construction and maintenance zones triggered legislation in 1989 that lightens the wallets of motorists cited for traffic violations.

Signed into law by the governor were bills that impose surcharges to pay off the state's $300 million-plus CAT Fund debt and double the fines for moving traffic violations in construction/maintenance work areas.

Senate Bill 274 became the vehicle for legislation creating the Catastrophic Loss Benefits Continuation Fund. Provisions of the bill became effective on July 1, the day it was signed into

law as Act 24 of 1989.

SB 274 provided for surcharges added to fines levied for a variety of moving traffic violations. The state Department of Revenue said the surcharges would net the fund more than $30 million a year.

Here's an example of how the new law impacts on a motorist's pocketbook: Running a stop sign or red traffic signal previously carried a $25 fine, plus court costs; plus a $10 surcharge for the Emergency Medical Services Operating Fund. SB 274 adds $30 to the total.

For speeding violations, motorists pay a $30 surcharge if they exceed the maximum speed limit by six to 15 miles per hour; driving 16 to 25 miles per hour over the limit calls for a $40 surcharge and exceeding the maximum by 26 miles per hour or more adds $50 to the bill.

Drunk driving violations carry even heftier "fines" under the new law. The penalties range from $100 to $300, depending on how many times the offender has been nabbed.

Motorists tagged for overtime or illegal parking won't be hit with a surcharge; these violations are exempted.

When it first passed the Senate, SB 274 amended the Motor

Vehicle Code to permit the hauler of an oversize vehicle or load to carry a special permit in the towing vehicle, rather than requiring the permit to be attached to the truck. The CAT Fund "rescue" provision was amended into the bill by the House and approved by the Senate.

The state-operated Catastrophic Loss Trust Fund (CAT) was abolished by the General Assembly in 1989. Though it was gone, the controversial insurance program wasn't forgotten because it had rolled up an unfunded debt which the governor's office said was $364 million.

Although the CAT Fund is defunct, motorists still can purchase similar coverage from automobile insurers, thanks to Senate Bill 109 which became law in April, 1989. Insurers are required to offer "extraordinary medical benefit coverage" which can be purchased in increments of $100,000 up to $1 million.

An alarming increase in the number of highway construction/ maintenance zone mishaps prompted the passage of Senate Bill 400 which doubled the fines for moving traffic violations in those areas.

The bill, signed into law July 5 as Act 30 of 1989, increased the penalty for illegal passing, reckless driving or following too close from $25 to $50. Since the majority of these areas are posted for a 40 miles per hour speed limit, a driver traveling 20 miles per hour over that limit would be fined $130, double the former $65 penalty.

According to PennDOT, there were more than 1,500 accidents in work zones in 1988, resulting in 17 fatalities and 1,614 injuries. Nearly half of the fatalities were caused by drivers exceeding the speed limit.

*** Loans to 'CAT' Fund -- The defunct Catastrophic Loss Trust Fund remains obligated to pay bills for traffic injuries that occurred through 1989. However, the Catastrophic Loss Benefits Continuation Fund (see above) failed to generate enough money through a surcharge on traffic violations to meet expenses.

To close the gap between income and expenses, the legislature passed Senate Bill 1272 which became Act 70 on July 1, 1990. This bill authorizes loans to the continuation fund from the state Worker's Compensation Security Fund. The administration estimates that the amount needed over the next six years will exceed $30 million to pay the "extraordinary medical expenses" of "CAT"-covered accident victims. The law gives the administration authority to borrow from the compensation fund when it's determined that the cash balance in the continuation fund isn't enough to pay all bills due. The money will be repaid with interest.

The original intent of SB 1272 was to address a problem posed by persons who drive a motor vehicle over private property, notably farm land. This provision remained in the bill and subjects a person to a $100 fine if he operates a car or truck on a private road or driveway without the owner's consent. A person damaging property or driving over cultivated land could, upon conviction, be fined $500 for a first offense and $1,000, along with a six-month license suspension, for a subsequent offense. Emergency vehicles are exempted from these provisions.

*** Registration Fee 'Break' -- Legislation (HB 1294) signed into law (Act 84 of 1990) exempts non-profit organizations for the handicapped and elderly from paying the prevailing motor vehicle registration fee. These groups will be able to register their vehicles for a $10 processing fee. This provision was amended into the bill by the Senate. Left intact is the original intent of the measure giving local officials the authority to authorize handicapped persons and severely disabled veterans to issue "statements" to persons who improperly use parking spaces reserved for the handicapped. Another section of the bill increases the minimum fine for unauthorized parking in a "reserved for the handicapped" space from $15 to $50 and the maximum penalty from $50 to $200.

*** Street Rod Classification -- House Bill 1921 became Act 60 of 1990 when the governor signed it on June 29. The bill amends the Motor Vehicle Code so that a reproduced vehicle of the 1948 model year or older can be classified as a "street rod".

*** Language Clarified -- Legislation (HB 1955) clarifying language in the auto insurance reform law was signed into law on June 30 as Act 63 of 1990. The measure provides for the following:

> Makes it a misdemeanor if a person obtains a vehicle inspection certificate without proof of insurance;

> A person is to be charged with a summary offense (rather than a misdemeanor) if he or she fails to properly complete a state inspection record;

> Requires auto insurance policies to specify whether rental car coverage is provided;

> Recognizes an insurance department "ID" card, an insurance policy, certificate of financial responsibility, or a binder of insurance as proof of financial responsibility.

*** Bridge Bill Signed -- Legislation amending the 1982-83 Highway-Railroad and Highway Bridge Capital Budget Act was signed into law July 11 as Act 56 of 1989. The bill adds hundreds of additional projects to the list of bridges targeted for repair or replacement under provisions of the act, boosting spending authorization to $3.7 billion. House Bill 756 was amended in the Senate to provide for a special program authorizing PennDOT to use timber in the construction of certain bridges. Senate Bill 702 was similar to HB 756 but the legislature chose to act on the House version.

*** Letters of Credit -- House Bill 338 became Act 13 of 1989 when signed by the governor. The measure permits liquid fuels distributors to file letters of credit from a financial institution as acceptable security. Previously, provisions of the Liquid Fuels Tax Act required the distributor to deposit with the state treasurer federal or commonwealth bonds having a par value equal to the surety bond.

*** Pooled Bus Study -- Legislation (SB 866) authorizing PennDOT to initiate a study into the condition of buses purchased under the pooled bus acquisition program passed the Senate in June of 1989 and cleared the House in March of 1990. It became Act 19 of 1990 on March 28. The bill authorizes PennDOT to spend up to $100,000 for the project.

"V" Road Tax 'ID' Markers -- Senate Bill 498, which passed the Senate in 1989, would have authorized the Department of Revenue to designate parties to collect fees and issue temporary motor carrier road tax "ID" markers. The measure later became the vehicle for legislation aimed at bringing Pennsylvania into compliance with a 1986 federal law requiring standardized licensing of all commercial drivers in the state. However, the measure, after clearing the House and Senate, was vetoed by the governor because of a "special license" provision. The Senate overrode the veto, but the House sustained it. Provisions of the commercial drivers' bill later were amended into Senate Bill 682 (see below).

*** Standardized Licensing -- Pennsylvania's compliance with federal law requiring a standardized licensing system for commercial drivers occurred on May 30, 1990, when the governor signed Senate Bill 682 into law as Act 42. The measure contained most of the provisions of SB 498 (which was vetoed by the governor), with the major language change focusing on a section that determines who can and who cannot obtain a special "bread and butter" license following a suspension.

This bill bars a commercial driver who has been convicted of a major offense (such as drunk driving or accidents in which someone has been killed or injured) from receiving such a license. The prohibition would not apply to drivers convicted of speeding or other moving violations. When the governor vetoed SB 498, he said there were loopholes that would permit truck and bus drivers to obtain a limited-use license even though they had been convicted of a "serious" offense. The new law authorizes the state Department of Transportation to issue or deny the "special" license. Drivers applying for one would have to pay a $25 fee and take a written or oral test.

The aim of the federal law is to remove problem drivers from the road, improve highway safety, and establish a system that will prevent truck and bus drivers from having a license in more than one state. It stipulates that all states must provide for the testing and licensing of drivers of commercial vehicles (such as trucks and buses) by April of 1992. PennDOT says the re-testing is expected to cost about $16 million over a four-year period, with some of the expense to be recouped through higher fees for commercial licenses.

The new law also toughens standards for drunk driving, deeming a commercial driver to be considered legally intoxicated if the blood alcohol level is at or above .04 percent. When Senate Bill 682 passed the Senate in June of 1989, it contained language that would subject the owner of a vehicle to the same charges and penalties as the person driving the vehicle who is cited for a violation. This language was deleted from the bill when it became the vehicle for the commercial drivers' legislation.

*** Drinking Law Amended -- Senate Bill 681, signed into law June 16 as Act 8 of 1989, amends a 1988 law that took aim at underage drinking. That law called for the suspension of the driver's license of anyone under the age of 21 who is convicted of buying or possessing alcoholic beverages. However, the 1988 law inadvertently provided for a five-point penalty against those losing their driving privileges. SB 681 removed that penalty because arrest and conviction for underage drinking does not involve a traffic violation. Provisions of Act 8 of 1989 are retroactive to May 23, 1988.

*** Food/Garbage Hauling -- A Senate-House conference committee resolved differences between the two chambers on legislation (HB 331) that sends a message to trucking companies that use their vehicles to transport both garbage and food: Get caught and you'll be fined and lose your trucks.

This provision was amended into House Bill 331, legislation that more clearly defines the designation of emergency vehicles.

The amending legislation was prompted by disclosure that "backhauling"--the terminology used by the industry to describe the practice of hauling garbage and food on the same runs--was commonplace in most states.

House Bill 331 was signed into law on March 13, 1990, as Act 14. In addition to providing for seizure of a vehicle, the new law sets minimum and maximum fines of $1,000 and $10,000 for first offense convictions and even higher penalties--$5,000 and $25,000--for subsequent arrests and convictions. Proceeds from the sale of a seized truck would be deposited in the Solid Waste Abatement Fund.

In addition to cracking down on the dual hauling problem, HB 331 also takes aim at haulers whose cargoes spew debris along highways. Under the new law, loose and baled garbage must be properly secured and covered to prevent any material from escaping.

An unrelated provision of HB 331 permits labels or stickers to be placed on school buses if they have been approved by a school board as having "educational value".

* Stopping for School Buses -- The Senate passed and sent to the House Senate Bill 1341, legislation amending the Motor Vehicle Code with respect to school buses. This bill makes clear that a driver must stop his vehicle when the red signals of a school bus are flashing. The fact that a bus is not yet equipped with side stop signal arms does not exempt a driver from stopping until the bus moves on. (Note: Act 163 of 1988 requires all Pennsylvania school buses to have the new signal arms installed and in operation by July 1, 1994.) The House did not act on the bill prior to the end of the session.

*** Turnpike Interchanges -- Senate Bill 1368, signed into law July 11 as Act 124 of 1990, clears the way for the Pennsylvania Turnpike Commission to construct a private interchange directly connected to the New Cumberland Army Depot. This bill is necessary because the Turnpike Organization, Extension and Toll Road Conversion Act provided only for the commission to negotiate with the U. S. Department of Defense relative to the project. (Note: On July 21, Gov. Casey ordered the start of engineering and design work for the project which carries an estimated cost of $11 million, with the U. S. Department of Defense providing in excess of $5 million.) The bill also authorizes construction of a turnpike interchange on the Northeast Extension with state Route 903 in Carbon County.

*** Senator Honored -- Senate Bill 1588, signed into law Oct. 12, 1990, as Act 129, designates a portion of state Route 60--also known as the Beaver Valley Expressway--as the "James E. Ross Highway". Sen. Ross, of Beaver County, served in the Senate from 1973 until his retirement in February, 1990.

*** DUI Law Toughened -- Senate Bill 1193, signed into law July 11 as Act 122 of 1990, tightens requirements that must be met by persons convicted of drunk driving or driving under the influence of a controlled substance. Language in the bill is specific with respect to first or second and subsequent offenses. A first offense requires successful completion of an approved alcohol highway safety school; a second or subsequent offense requires treatment for alcohol or drug addiction. DUI offenders must satisfy all requirements of a counseling or treatment program before his or her operating privilege is restored. (These "requirements" also include payment of all court-imposed fines and costs as well as fees due for counseling or treatment.)

** Headgear for Young Bikers -- A Senate bill (SB 1373) that would have required young bicycle riders to wear a protective helmet became the vehicle for some two dozen amendments in the House and, though passed by that chamber, failed to receive a final review in the Senate. In its original form, the bill's main provision applied to a youngster five years old or younger who is riding as a passenger on a bicycle or in a trailer attached to the bike. The penalty, including assessments and court costs, would not have exceeded $50.

The Senate version also contained an amendment that would make it a summary offense for leaving a child under six years of age in an unattended vehicle "under circumstances which endanger the health or welfare of the child."

*** Overcrowding Addressed -- The governor signed into law as Act 29 of 1990 legislation (HB 704) that addresses, in a small way, prison overcrowding. Prior to this law, a person charged and convicted of a Motor Code violation could, with court approval, pay a fine on the installment plan. However, one's failure to comply with this agreement could have landed the violator in jail to serve at least one day for each $10 of the unpaid balance. This bill amends the code to provide a $40 credit toward the unpaid balance for each day served in jail.

*** Tinted Windows/Speed Limit Hike -- Concurrence by the House in Senate amendments positioned House Bill 240 to become law. Deleted by the Senate was a provision that would have allowed the speed limit to be increased from 55 mph to 65 mph on some sections of the Pennsylvania Turnpike. In its final form, the measure approves of tinted windows, or sunscreening, in a motor vehicle if the owner, or a person who is a regular passenger, suffers from a medical condition that warrants the equipment. This bill became Act 137 when signed by the governor on Nov. 21, 1990.

*** 'Chop Shops' Chopped -- Three bills clearing the legislature in 1990 and signed into law are aimed at clamping down on "chop shop" operations. Two bills--House Bill 421 (now Act 1 of 1990) and House Bill 423 (Act 2 of 1990) became law in February. HB 421 requires validation by the state police of an out-of-state vehicle's identification number (VIN) before a Pennsylvania title and registration can be obtained. Anyone falsely verifying a VIN or is not authorized to do so could be charged with a summary offense and, if convicted, fined $300.

HB 423 permits law enforcement officers to inspect the premises of a person dealing in salvage or junked cars without a search warrant if there is "probable cause" for the search. The new law also requires owners of such businesses to keep records pertaining to the final disposition of a vehicle for at least three years. Violations could bring a jail term of one year and a $2,500 fine.

The third bill in the package--House Bill 422 (Act 8 of 1990)--contains provisions to make it tougher for chop shop operators to illegally remove a VIN from a vehicle and transfer it to another one. Additionally, a person purchasing a vehicle that has been totalled in an accident must first obtain a "certificate of junk" from PennDOT. The same provision applies to an insurance company which has paid an owner the replacement value of a wrecked vehicle.

***Pearl Harbor License Plate -- Various sections of the Motor Vehicle Code are amended as a result of House Bill 334 (Act 83 of 1990) being signed into law. When this bill first cleared the House, it called for issuing a special registration plate designating the vehicle as belonging to a survivor of the Pearl Harbor attack. This provision remains in the bill. Applicants must pay $20 for the plate, in addition to the annual registration fee.

The measure was heavily amended to provide:

> For a special plate to be issued for trucks or truck tractors used to transport circus or carnival workers or equipment during the period of April 1 through Sept. 30. The plate would be issued at one-half the fee for a similar type vehicle and would be valid only for the period specified.

> For creation of the Motor Vehicle Transaction Recovery Fund. Aim of the measure is to protect the commonwealth and the consumer from dealers or agents who collect fees for vehicle transactions (such as the sales tax) and who fail to remit the money to the state. Dealers would be assessed an initial $60 fee. The bill further provides for an additional $50 assessment when the fund balance is below $500,000.

> Clarification of language in the 1990 Commercial Drivers License Act as it deals with the right to refuse to drive an unsafe commercial vehicle. Act 42 placed enforcement of this section under the Department of Labor and Industry which does not have the personnel to perform the work. This bill provides for the Public Utility Commission to enforce this particular area of Act 42.

> For cancellation of a driver's license when it has been intentionally altered or when a licensee voluntarily surrenders his or her driving privilege. In addition, it authorizes PennDOT to cancel a license during a driver's period of suspension in another state if that offense provides for a suspension in Pennsylvania.

> For titling and registering a snowmobile at the time the vehicle is purchased unless the buyer intends to restrict use of the vehicle to his or her private property.

* Nurse Honored -- The House failed to take action on legislation (SB 1652) which proposed naming a new bridge in Lackawanna County for Carol Drazba, an Army nurse and resident of the county who lost her life in the Vietnam conflict. The bridge will link Scranton's Minooka section with Taylor Borough.

*** House Speaker Honored -- The late James J. Manderino, who was Speaker of the House of Representatives at the time of his death in December of 1989, was honored by legislation (HB 2247) which was signed into law June 19 as Act 53 of 1990. The bill designates a section of Route 43 in Allegheny, Fayette and

Washington counties as the James J. Manderino Memorial Highway.

Also signed into law were two other bills which make special highway designations. House Bill 808 (Act 49 of 1990) designates state Route 88 in Allegheny and Washington counties as the 88th Infantry Division Highway; Senate Bill 29 (Act 74 of 1990) designates Interstate 476 in Montgomery County as the Veterans Memorial Highway.

*** Certification for Handicapped -- House Bill 1658, signed into law July 11 as Act 105 of 1990, permits a physician in a state contiguous to Pennsylvania to certify a handicapped person for a special license plate or parking placard.

** High-Speed Rail Plan -- Adjournment by the General Assembly derailed legislation that would have continued the state's involvement in a proposed high-speed "bullet train" system. Senate Bill 676 assigned development of the service to the state Department of Transportation and called for spending an additional $300,000 to study the idea. However, the bill and its remaining provisions died after the House-amended bill was amended further by the Senate on the day of adjournment. This bill had been sent to the House as legislation to exclude a motorized wheelchair from the current definition of "motor vehicle." Another provision would have changed the length of time that abandoned vehicles can remain on the Pennsylvania Turnpike, from 48 hours to 24 hours.

-- LAW AND JUSTICE --

*** Hearing Examiners Felled -- The Liquor Control Board's 12 hearing examiners will be losing their jobs--but not right away--in the wake of House Bill 1946 being signed into law by the governor. The bill will transfer the functions of the hearing examiners to the LCB's Office of Administration Law Judge. However, the present examiners will not be terminated until June 30, 1992. Coincidentally, the LCB is due to "sunset" on that date unless the General Assembly passes a bill renewing the agency.

House Bill 1946 also:

> Requires breweries that reduce the selling price of their product to keep the lower price in effect for at least 180 days;

> Tightens population quotas for beer distributor and bar licenses. Instead of one distributor license for every 15,000 residents in a county, the billprovides one for every 30,000 persons; retail beer and liquor licenses are limited to one for every 3,000 persons in a municipality, instead of 2,000, and

> Prohibits a bartender from drinking while on duty, and requires tavern patrons to leave the premises no later than 2:30 a.m. unless the licensee holds an extended hours food license. The bill signed by the governor becomes Act 160 of 1990.

* Fast 'ID' on Prints -- Although the Senate passed legislation (SB 417) providing startup funding for a state-of-the-art fingerprint "ID" system for the State Police, the action was rendered unnecessary by the governor's inclusion of funds in his 1989-90 budget.

SB 417 authorized a $900,000 appropriation for fiscal year 1989-90 to cover startup costs for the $8 million-plus system which, according to advocates, boasts a 99 percent accuracy rate and can do in minutes what now takes hours. The governor's budget provides $860,000 and negates the need for the House to proceed further with the legislation.

Supporters say the system will enable the State Police and other law enforcement agencies to spend less time on fingerprint ID work and more time on criminal investigation. The proposed system would have eight remote terminals that could be accessed by local police.

*** Beer Sales Okayed -- Beer can be sold at the Williamsport stadium during Class AA Eastern League games as the result of House Bill 49 being signed into law May 4 as Act 5 of 1989. The measure amended the Liquor Code by reducing the seating requirement necessary for the sale of alcohol in stadiums in third class cities. The law previously required a 7,000-seat stadium; HB 49 reduces the minimum to 4,000. The new law bans the sale of beer in one or more areas of the stadium that comprise at least 15 percent of its seating capacity.

* More State Police -- Senate Bill 815 called for boosting the number of positions in the State Police from 3,940 to 4,440, excluding the Turnpike detail. The cost of adding 500 new troopers to the force would have been $25 million over five years. The measure passed the Senate in December of 1989 but died in the House State Government Committee.

"V" Resident Troopers -- Small municipalities that do not have police forces would have been able to "rent" a state trooper under House Bill 618 which passed the General Assembly but was vetoed by the governor. The measure provided for the hiring of 50 additional troopers to meet staffing requirements but stipulated that the number of personnel assigned to "resident trooper" duty would not be counted when determining the total number of officers on the state force (now limited to 3,940). A borough or first or second class township would have contracted for the service, with the trooper permanently assigned to and residing in the municipality or geographical area where he or she would have worked. This bill also called for creation of two state police underwater search teams, one assigned in the eastern part of the state and one in the west.

* Unlicensed Liquor Sales -- Owners of restaurants or clubs that do not have liquor licenses but which sell alcoholic beverages to customers would have faced stiffened fines upon conviction had Senate Bill 1351 become law. The bill cleared the Senate in December of 1989 but was never considered by the House Judiciary Committee. Before passing the bill, the Senate deleted a controversial provision that would have prohibited people from bringing alcoholic beverages into unlicensed restaurants.

*** Liquor Code Changes -- House concurrence in Senate amendments sent House Bill 1139 to the governor's office where it was signed into law as Act 48 of 1990. The measure came to the Senate as legislation reducing the seating requirement necessary for a performing arts facility to obtain a liquor license from 2,800 seats to 1,000 and reducing from two years to one the time a facility had to be in operation to acquire a license. Another provision of the bill reduces the seating requirement for non-profit facilities in third class cities from the current 1,000 to 650 (for license classification). Senate amendments provide for restaurant liquor licenses to be issued at pari-mutuel wagering sites and race tracks and for similar licenses to performing arts facilities in second class townships in fourth class counties. The latter amendment requires a seating capacity of at least 7,000 to accommodate the new Star Lake Amphitheater in Washington County.

-- INTERGOVERNMENTAL AFFAIRS --

*** Delaware River Port Authority -- Legislation (HB 2350) clearing the Senate and House in June is aimed at enhancing the economic development capacity of the Delaware River Port Authority. The bill was signed into law as Act 15 of 1990 and takes effect when concurring legislation is passed in New Jersey. Once New Jersey has acted, the authority will have the go-ahead to develop an international trade center in Camden, a regional internodal transfer facility in the eastern portion of Philadelphia and a regional port enhancement development project for the Port District (the district includes Delaware and Philadelphia counties in Pennsylvania and Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean and Salem counties in New Jersey).

*** Rebirth for Philadelphia Port -- House Bill 1450 (Act 50 of 1989) created the Philadelphia Regional Port Authority to oversee the operation and development of the Port of Philadelphia. The new authority, which has 11 members, assumed the functions and responsibilities of the Philadelphia Port Corp. When he signed the bill into law, the governor said the state was making available $33 million for port improvement projects. Under the law, authority members are appointed by the governor and by leaders of the majority and minority parties of the General Assembly. Members cannot be elected public officials.

* Incentive Program Eyed -- Legislation that would have benefited companies using the Pennsylvania Turnpike to transport goods destined for export from ports operated by the Philadelphia Regional Port Authority failed to win House approval prior to adjournment. The Senate passed the measure (SB 1499) in June, 1990. The bill would have established the Philadelphia Regional Port Authority Usage Incentive Program Act and appropriated $300,000 for the program. It proposed eliminating turnpike tolls for companies transporting goods via the turnpike to a PRPA port. The $300,000 appropriation would have been used to reimburse the Turnpike Commission for the lost tolls.

*** New Life for Program -- The state's Community Service Block Grant Program received a new lease on life when House Bill 1392 was signed into law (Act 49 of 1989). Had no action been taken by the legislature, the program would have "expired" on July 11, 1989. The new law extends the sunset date to Dec. 31, 1992.

*** Keeping Philadelphia's Sports Teams -- House Bill 103, signed into law as Act 88 of 1989, strengthened Philadelphia's hand in the city's bid to keep the Philadelphia Flyers hockey team and Philadelphia 76'ers basketball team from moving to New Jersey. HB 103 authorized real property tax exemptions for first class cities (Philadelphia) when public property is used for public purposes. In Philadelphia, Spectacor, operator of the Spectrum and owner of the hockey team, will be permitted to make an annual $2 million in-lieu-of-taxes payment to the city. Spectacor also would be shielded from any future increase in the city's amusement tax. The Casey administration will provide Philadelphia with $8.5 million in state funds to help finance the demolition of JFK Stadium and finance the construction of lighting and parking facilities if Spectacor builds a new sports arena on the stadium site.

-- LABOR AND INDUSTRY --

*** Child Labor Law Changes -- House concurrence in Senate amendments paved the way for House Bill 1573 to become law (Act 62/1989).

HB 1573 amended the Child Labor Law, affecting sections dealing with farm work, bowling alley employment and summer camp workers.

The legislation permits minors 14 and older to work in bowling alleys as snack bar attendants, porters, control desk clerks and scorer attendants. Previously, the law barred anyone under 16 from working in any capacity in a bowling alley.

The law further prohibits a minor under 14 from working on a farm unless he or she is employed by the farmer. Another change provides that a farm worker under 16 who is employed in a poultry operation by a person other than the farmer can work until 10 p.m. as long as he or she is not engaged in an operation considered hazardous.

Teenagers 16 and 17 who work for the summer at religious or scout camps, retreats or conferences must, under provisions of the law, receive one day of rest during every seven-day period.

*** Salaries for Board -- Senate Bill 872, signed into law (Act 11 of 1989), provides for salaries of the chairman and members of the Unemployment Compensation Board of Review to be set by the Executive Board. Previously, salaries were regulated by statute. Since 1963, the chairman has been paid $14,000 annually; the other two members have been receiving $13,000. The Executive Board consists of the governor, insurance commissioner, secretary of state, and the secretaries of the Departments of Community Affairs, Public Welfare, Revenue, and General Services.

*** Inspection of Files -- Legislation (SB 1313) amending a state law that authorizes employees to inspect their own personnel files has been signed into law as Act 149 of 1990. The new law, which is effective immediately, permits a designated agent of an employee to inspect the employee's personnel records. The bill also removes a provision in the earlier law that limited inspections to once a year.

*** Minimum Wage Law Changes -- Senate Bill 1458 provided for two changes in the state's Minimum Wage Law. The measure was signed into law as Act 79 of 1990. One change permits the Department of Labor and Industry to accept the federal certificate (required under the federal Fair Labor Standards Act) for a disabled worker whose earning capacity is impaired by physical or mental deficiencies. The second change addresses overtime exemption for trucking industry workers. Both changes are retroactive to Feb. 1, 1989, the effective date of the state's last minimum wage change.

*** Mediators Protected -- Legislation signed into law in 1990 (HB 1756/Act 41) provides for confidentiality of information disclosed to mediators during any court-ordered bargaining process or proceeding in which the mediator is involved. The new law is designed to protect a mediator's position if, for example, he or she is subpoenaed to testify.

*** 'Hazmat' Protection -- The Senate and House passed, without amendments, legislation (Senate Bill 1395) that will make volunteer members of hazardous materials response teams eligible for worker's compensation payments if they are injured in the line of duty. The measure was signed by the governor as Act 167 of 1990.

*** More Restrooms for Women -- House Bill 2033 was signed by the governor (Act 185/1990) after overwhelming approval by the Senate and House. The measure requires more restrooms for women in buildings owned or leased by state and local governments and in certain public facilities such as sports arenas. The provision applies only to new buildings and to those undergoing extensive renovation or rehabilitation.

*** Stuffed Toy Act Amended -- Also passed was Senate Bill 1676, legislation (Act 176/1990) amending the Stuffed Toy Manufacturing Act. The bill exempts from registration any person not regularly engaged in manufacturing, wholesaling or importing stuffed toys and would apply to those people who make the toys as a "leisure pursuit" and whose gross income from sales is less than $1,000 annually. The measure further authorizes the Department of Labor and Industry to establish fees through regulation.

*** Fees Set by L&I -- Senate Bill 1675, an amendment to the state's Fire and Panic Act, passed both chambers. The bill, which became Act 175/1990, authorizes the Department of Labor and Industry to establish fees for licensing motion picture projectionists and for the examination of architectural drawings (under previous law, fees were set by an act of the General Assembly).

"V" Bedding/Upholstery -- Senate Bill 1673 is another measure that provided for permit fees to be established by the Department of Labor and Industry, rather through legislation. This measure applied to the Bedding and Upholstery Law. The bill, which was vetoed by the governor, would have eliminated a requirement that an adhesive stamp be placed on every bedding and upholstery tag.

*** Dry Cleaning Law Rewritten -- Clearing the House and Senate was a bill (HB 2156, Act 214/1990) that rewrites the Dry Cleaning and Dyeing Act by updating its provisions and authorizing the Department of Labor and Industry to establish construction requirements. Primary aim of the measure is to protect the public and dry cleaning plant workers from fire and health hazards.

-- AGING AND YOUTH --

*** Senior Citizen Caregiver Support -- Passed by the General Assembly was legislation (HB 698, Act 204/1990) establishing a program of assistance for at-home care of functionally dependent persons 60 years of age or older and adults with a deteriorating mental condition (such as Alzheimer's Disease).

The legislation provides for the statewide implementation of an earlier pilot program of assistance to families who care for an older relative at home. By easing pressures on those who care for an older person, the program is intended to help prevent senior citizens from being institutionalized.

Services include education and benefits counseling and, for low-income families, financial help with the expenses of physical devices, supplies, home modifications and respite care.

A qualified caregiver -- in most cases, a family member -- would be eligible for monthly state stipends of up to $200 and one-time grants of up to $2,000 to pay for the services.

The 1990-91 state budget doubled funding, to a total of $7.5 million, for the senior citizen Transitional Care and Family Caregiver program.

*** Medicare Overcharge Measure -- Enacted was legislation (HB 700, Act 81/1990) to prevent seni