FOR EDITORIAL BACKGROUND

            On the heels of the March 10, 1994, death of veteran Allegheny County Democratic Sen. Eugene F. Scanlon -- and a federal judge's controversial invalidation of the Nov. 2, 1993 election of Philadelphia Sen. William G. Stinson -- Senate Republicans grabbed control of the operational apparatus of the Senate March 15.

            Using their 25 votes to the Democrats' 23 votes, with two seats empty at the time, the first order of business for the Republicans was to elect one of their own as president pro tempore.

            Just moments after the new Republican president pro tem had promised "a new beginning" and talked about reopening "communications" and reestablishing "cooperation," however, the Senate GOP proceeded to ram through new rules -- and then break them -- and cut off Senate debate on the people's business six times.

            What there was of any intent at bipartisanship on the day the Republicans took over quickly evaporated as they forced through (25-23) a resolution declaring that even though the 2nd District seat was empty it was, in their view, not vacant.              What's more, Democrats noted, the new rules (SR 102) -- requiring that members who are voted while on capitol leave must be tending to other legislative business within 10 miles of the Capitol -- were broken as a GOP senator running for governor was included in the Senate tally, on the first vote on the rules, while campaigning in Philadelphia.

            The political tension only heightened, meanwhile, in subsequent days as the Senate Republicans held what Democrats called a "kangaroo court," on a Republican appeal to the Senate of Sen. Stinson's election.  Absent legal representation on behalf of Sen. Stinson at an April 27 appeal hearing before a special 7-member, GOP-controlled Senate subcommittee, Republicans approved (4-3) the drafting of a resolution declaring GOP candidate Bruce Marks the new senator.  Over Democratic objections, that resolution was adopted by the 25 Senate Republicans the next day, and Marks was seated as the 26th GOP senator that very afternoon.         

            Aiding the Republican power play was an unprecedented federal court order, still under appeal as of this writing, that declared Marks a senator without an official vote count.  While there were charges of absentee ballot fraud, there was never a full accounting of which absentee ballots were properly or improperly cast.  The Nov. 2, 1993, had been called to fill the seat left vacant by the May 31, 1993, death of long-time Philadelphia Democratic Sen. Francis J. Lynch.

            Meanwhile, a May 10, 1994, special election in Allegheny County resulted in the election of Democratic Sen. Jack Wagner to fill the seat left vacant by the death of Sen. Scanlon, bringing to 24 the number of Senate seats currently held by Democrats.

            Democrats had controlled the Senate for 16 months (Nov. 13, 1993 to March 15, 1994) prior to Republicans regaining control.

            During that time period, more than 200 laws were enacted -- many of them landmark proposals -- including measures to provide health care for thousands of uninsured children, to maintain the solvency of the state's senior citizen state Lottery Fund, to guarantee people with physical disabilities equal access to institutions of higher education, to require that consumer contracts be written in plain language, to encourage the development of a statewide fiber-optics telecommunications network, to impose tough new criminal penalties on stalkers and car-jackers, and to provide a new dedicated funding stream to repair and improve state parks and recreation facilities.

            Other major successes under Senate Democratic control included early enactment, in May, of a no-tax-increase 1993-94 state budget, and the reform of Pennsylvania's workers' compensation system -- saving Pennsylvania's job-producing businesses an estimated $300 million in premium costs.

            Following the 1994 seesaw of organizational control to the Republicans, Democrats continued to work in a constructive fashion toward other accomplishments as well.

            The first half of the second year of the two year session witnessed the early enactment of a new 1994-95 state budget that -- not only held the line on taxes -- but provided tax relief for businesses and low-income working families.

            Welfare "reform" passed both houses and was signed by the governor, as were new Sunny Day appropriations to spur economic development and job growth.

            The Legislature also concluded first session approval of a proposed constitutional amendment that would allow for closed-circuit television testimony from children who are the victims of crime, and passed new laws cracking down on graffiti vandalism, promoting safety on rides at amusement parks, speeding up the permit review process at DER, and regulating out-of-state insurance companies that do business in Pennsylvania.

            These and many other new laws and bills are highlighted 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. 

 

BUDGET & FINANCE

            *** 1994-95 State Budget -- Business tax cuts for jobs and a measure that imposes tough new restrictions on welfare were the focal points of a 1994-95 state budget plan enacted two weeks in advance of the July 1 start of the new fiscal year.

            The final bipartisan compromise had been hammered out in negotiations between Senate Republicans, Senate Democrats, House Republicans and the governor's office.

            For the most part, except for some additional tax reductions and more money for schools, it largely resembled the budget blueprint proposed by Gov. Casey on Feb. 8, 1994.

            Getting the job done was accomplished when the Senate amended the provisions of the $15.646 billion General Fund spending plan and companion $188.4 million tax cut proposal into two House-passed bills.

            The 227-page spending document (HB 1262), which when combined with federal and other special funds totals some $30.5 billion, passed (42-8) the Senate June 14.  It was concurred in (141-58) by the House June 15 and signed by the governor as Act 6A/1994 on June 16.

Tax Reductions & Welfare Reform           

            The tax reduction measure (HB 868, Act 48/1994) -- which slashes the rate of the Corporate Net Income (CNI) tax from 12.25 percent to 9.99 percent over four years, restores the CNI Net Operating Loss (NOL) carry-forward provision and provides for a wide-range of additional business and other tax relief (see Tax Cuts, next article) -- was a key priority of many Democrats and Republicans alike.

            Further highlighting the 1994-95 budget debate was Gov. Casey's proposal to reduce welfare cash assistance to only two months every two years for recipients deemed able to work. 

            The final budget incorporated cost savings of approximately $90 million in fiscal 1994-95 as a result of the welfare reform proposal (HB 1392) approved by the Senate (38-11) and the House (141-59) and signed by the governor as Act 49 of 1994 (See Welfare Reform, Public Health & Welfare section).

             People Programs

            Even with the cuts, however, the 1994-95 General Fund calls for spending $5.2 billion on welfare department programs, an increase of some $216 million over fiscal 1993-94.  Of that amount, $3.3 billion has been allocated for medical assistance and cash assistance, with the lion's share for medical assistance.  Funding for cash grants totals $664.5 million, a decrease of $60.1 million from the prior year. 

            Coupled with an anticipated new stream of federal dollars, meanwhile, funding for county child welfare services was expected to total $357.5 million, a 6 percent increase over the prior year.

            The budget included $423.7 million, a 9.3 percent increase, for mental health services and $386.6 million, an 8 percent increase, for community mental retardation services.

            A total of $32.5 million was appropriated for the state's New Directions job training and placement program and $5 million for emergency homeless shelters.           

School Funding

            In the area of education, the budget provided more than $3.2 billion in school subsidies -- which includes an additional $123 million equity supplement for poorer and growing school districts.  The final equity supplement was $15 million higher than that originally proposed by the governor. 

            Under the subsidy and equity formula, school districts are provided a basic level of support of $4,700 per student, additional dollars are provided to districts with a high percentage of low income families, added funds go to districts that have witnessed a significant increase in enrollment, and every district is guaranteed at least a 1 percent increase in funding over fiscal 1993-94.  The budget also includes $5 million to aid districts declared financially distressed.

            Funding for special education was boosted by 6.1 percent to a total of nearly $590 million.  Funding for early intervention services was increased by 9.9 percent to $55.7 million.  Funding for approved private schools -- institutions that serve severely handicapped children -- totaled $49.07 million, approximately $8 million more than originally recommended by the governor.

              Higher Education

            In the area of higher education, the budget allocated $372.1 million for the state's 14 state-owned universities which make up the State System of Higher Education, $550.1 million for state-related universities (Penn State, Pitt, Temple & Lincoln), $147.6 million for the state's 15 community colleges and $71.2 million for eight Philadelphia area state-aided colleges and universities.

            The state-owned and state-related universities were to share an additional $31.8 million, equating to an extra $200 for each full-time Pennsylvania resident student, if they hold tuition increases -- under the state's Tuition Challenge Grant Program --to no more than 4.5 percent.           

            The budget also included a 10 percent increase in funds, to a total of $206.3 million, for Pennsylvania Higher Education Assistance Agency (PHEAA) grants to qualifying full-time students.

      Corrections

            Costs associated with an expanding state prison system and prison population continue to skyrocket.  The 1994-95 budget included a whopping 20 percent, or $117 million, increase in funds to keep criminals behind bars.  For the first time, the $721 million allocated in the new fiscal year for the operation of the state prison system outstrips the amount spent for welfare cash grants. 

            The budget included additional funds, as well, for intensified probation and parole services, youth development centers and $2.9 million for the state's operation of a new maximum security facility to house violent juvenile offenders.

         Economic Development, Transportation; Miscellaneous

            Other elements of the budget provided:

            -- $149.8 million for state economic development initiatives through the Department of Commerce, the Pennsylvania Economic Revitalization Fund and the newly constituted Ben Franklin/Industrial Resource Center Partnership Fund;

            -- $564 million for highway maintenance, $171.4 million for highway construction and $245 million for mass transit assistance;

            -- a new $4 million appropriation for an expansion of community based family centers, to aid in early childhood development and parenting skills;

            -- a 7.4 percent increase in funds, to a total of $16.2 million, for state health centers;

            -- a 38 percent increase in state funding, to a total of $7.4 million, for AIDS programs and services; and

            -- an 8 percent increase, to $7.9 million, for domestic violence programs as well as a 3 percent increase, to $3.3 million, for rape crisis centers; and

            -- additional funds for attendant care for older citizens and those with disabilities.

            Provisions of the 1994-95 budget also officially ended the practice, commenced during the prior Thornburgh administration, of borrowing from the state's senior citizen Lottery Fund to pay for Welfare Department nursing home costs.  With Gov. Casey's last budget, all nursing home costs were back to being funded by the General Fund.

 

            *** Tax Cuts -- Some $188.4 million in tax relief is on the way to businesses, low-income working families and others as a result of the Legislature's final approval of a tax reduction measure (HB 868).  Passed (49-1) by the Senate (49-1) and the House (181-18), the bill was signed into law (Act 48/1994) by the governor June 16.

            Aimed, in large part, at improving the state's tax climate for business growth and job development, the legislation cuts the state's highest-in-the-nation Corporate Net Income (CNI) rate from 12.25 percent to 9.99 percent over four years.

            Retroactive to the beginning of 1994, the CNI was reduced to 11.99 percent.  The legislation calls for the CNI's further reduction to 10.99 percent in 1995, to 10.75 percent in 1996, and to 9.99 percent in 1997 and thereafter.

            The legislation restored the state's CNI net operating loss (NOL) carry-forward provision with a $500,000 cap on losses that can be deducted in any given year.

            The legislation increased the allowable exemption under the capital stock and franchise tax from $50,000 to $75,000, a move which was viewed as particularly beneficial to small businesses.

            At the same time, the legislation closed a loophole in prior law that had enabled certain businesses to escape payment of corporate taxes through the formation of business trusts.  Effective in 1995, the new law will require business trusts, with the exception of regulated investment companies and real estate investment trusts, to pay the Corporate Net Income and Capital Stock and Franchise taxes.

            In addition to business tax relief, the legislation also included an estimated $52 million tax cut for the working poor by increasing, under the tax forgiveness provisions of the state income tax, the income exemption for family dependents.  The exemption was increased from $1,500 to $3,000 for the first dependent and from $1,000 to $3,000 for each additional dependent.

            As many as 500,000 additional low-income Pennsylvanians were expected to qualify for tax relief as a result of the expansion of the tax forgiveness eligibility guidelines.  For example, the change fully exempts a family of five, earning up to $18,300 a year, from any state income tax payment.  The extent of tax forgiveness varies depending on an individual's income and family size.

            The tax reduction measure also provided for the phased elimination of the so-called "widows tax", cutting the 6 percent levy on interspousal inheritance in half to 3 percent July 1, 1994, to 2 percent July 1, 1995, to 1 percent July 1, 1996 and totally eliminating the tax effective July 1, 1997.

            Among other provisions, the measure eliminated the state's 6 percent sales tax on magazine subscriptions and on office janitorial service labor costs.  The new law also requires suburban employers of Philadelphia residents to withhold and remit wage taxes owed the city.

 

            *** Glitch Fixed -- The Senate and House moved quickly to repair a drafting mistake in the tax reduction legislation that, if left uncorrected, threatened the loss of some $90 million in mass transit funding.

            The glitch had occurred when -- in the process of providing for the deletion of a 3 percent tax on the leasing of heavy trucks effective in April of 1995 -- the drafters of the original 70-page tax cut bill inadvertently suspended other taxes dedicated to funding mass transit.  The technical correction was contained in Senate Bill 713 which became Act 67/1994.

 

            *** Non-Preferred Appropriations -- As part of the 1994-95 state budget, the General Assembly approved 37 so-called non-preferred appropriations bills (HBs 2791-2827), which became Acts 13A-49A/1994, providing $629.1 million in state funding for state-related and state-aided colleges and universities, health and research centers, and museums.

            The bulk of the funding went to the four state-related universities (Penn State, Pitt, Temple and Lincoln) as well as the University of Pennsylvania.  Penn State received $259.2 million; Pitt, $139.8 million; Temple, $141.1 million; Lincoln, $10.1 million; and Penn, $35.5 million.

            The state-related schools were also expected to split an approximate $17 million in added funding, under the state's tuition challenge grant program, if they hold tuition increases for Pennsylvania resident students to less than 4.5 percent.

            For the first time, the non-preferred appropriations bills required Penn State, Pitt, Temple and Lincoln to disclose, with the exception of individual faculty and staff salaries, their expenses.  Private colleges that receive substantial state assistance were also required to add state appointees to their boards of trustees.  Some portions of the appropriations were also specifically earmarked for minority higher education enrichment programs.

 

            *** Sunny Day -- During the course of just over six months, the Legislature enacted three separate bills providing some $85 million in Sunny Day financing for 16 major economic development projects expected to create nearly 6,400 new jobs throughout the commonwealth.

            Senate Bill 1192, which became Act 50A/1994 on July 1, allocated $10 million for three projects as follows:

            -- $2.5 million to J & L Specialty Steel Inc. to assist in the purchase of machinery and equipment for a facility in Beaver County, expected to produce 120 jobs; 

            -- $5 million to Starbucks Coffee Company for the construction of a new facility in either Franklin or York counties, expected to create 275 new jobs;

            -- $2.5 million to Mascotech Sintered Components, Inc. for the purchase of machinery and equipment for a facility in Ridgway, Elk County, expected to result in the creation of 110 jobs.

            House Bill 2679, when signed as Act 3A/1994 on April 22, appropriated $45.2 million for five projects as follows:

            -- $15 million to BRW Steel Corporation to assist in the company's acquisition and modernization of portions of Bethlehem Steel's former Bar, Rod and Wire Division in Johnstown, Cambria County, expected to create 1,000 jobs;

            -- $10.75 million to National Westminster Bancorp (NatWest) to assist the world banking company in relocating components of its New York operations to Montage Business Park, Lackawanna County, expected to create 1,800 jobs;

            -- $10 million to Cephalon Inc., a biotechnology research and development company, for permanent location of its world headquarters at Brandywine Business Center, Chester County, expected to create 650 jobs;

            -- $5 million to Buffalo Molded Plastics Inc., a plastic injection molding operation, for expansion of its operations in Vernon Township, Crawford County, expected to create 243 jobs; and

            -- $4.5 million to C-COR Electronics Inc., an advanced technology manufacturer of communications equipment, for an expansion of its Centre County facilities, expected to create 385 jobs.

            House Bill 1692, when signed as Act 47A/1993 on December 22, 1993, provided nearly $30 million for eight projects as follows:

            -- $7 million to AEG Westinghouse Transportation Systems Inc. for the consolidation of its propulsion and automatic train control equipment manufacturing operations at the Southpointe Business Park in Washington County, expected to create 350 new jobs;

            -- $2.4 million to Agramer Ceramics, Inc. for the location of a new ceramic tile manufacturing facility in Hopewell Township, Beaver County, expected to create 160 new jobs;

            -- $4.5 million to Union Switch and Signal for

construction of a new engineering and research facility at the Pittsburgh Technology Center, expected to create 250 jobs;

            -- $1.5 million to BioScience Contract Production Corporation for the purchase of machinery and equipment at a new facility to be located at the Penn State Research Park, Centre County, expected to create 100 jobs;

            -- $3 million to Carol Cable for the expansion of its Montoursville, Lycoming County, facility to accommodate new product lines, expected to create 200 jobs;

            -- $2.7 million to Mack Trucks Inc. for the purchase, upgrade and installation of machinery and equipment at its assembly plant in Lower Macungie Township, Lehigh County, expected to create 140 jobs;

            -- $2 million to Saratan, Inc. for the purchase of machinery and equipment to be used at a new facility in Allegheny Industrial Park, McKean County, expected to create 139 jobs; and

            -- $6.825 million to CONFAB/ICD Industries to start up a new diaper line and consolidate existing operations to a new facility in King of Prussia, Montgomery County, expected to create 455 new jobs.

            The state's Sunny Day Fund provides financial incentive, in the form of low-interest loans, to large firms that agree to locate or expand their operations in Pennsylvania.  Sunny Day appropriations must be recommended by the governor and approved by a two-thirds vote in both houses of the General Assembly. To qualify for a Sunny Day loan, a project must cost at least $10 million and create at least 100 jobs.

 

            *** (Item Veto) Capital Budget -- A fiscal 1994-95 capital budget bill (SB 690) authorizing more than $2.2 billion for some 650 infrastructure and public facility improvement projects was trimmed to $1.06 billion for a total of 310 projects by the governor's item veto.

            Before signing the measure as Act 74/1994, the governor slashed $1.19 billion from the bill and totally eliminated funding for 338 projects -- citing fiscal constraints and/or duplication of authorization in previous capital budget acts.

            The capital budget is separate from the state's General Fund and is primarily financed through the sale of government bonds.

            As finally approved, the measure authorizes $424.8 million for public improvement projects, $13.4 million for furniture and equipment, $178.9 million for transportation assistance, $394.3 million for redevelopment assistance, and $27 million for flood control projects.

            On a related matter, the Senate passed (50-0) a bill (SB 1591) authorizing more than $1.2 billion in highway capital projects.  That bill was still awaiting action by the House.

 

            *** 1994-95 Debt Limit -- Enacted was legislation (HB 1992, Act 50/1994) setting the maximum amount of debt which can be issued in fiscal 1994-95.  The measure authorizes the sale of bonds throughout the year, up to a maximum of $474 million, for capital projects which are already under design or construction.

 

            *** PUC, Consumer Advocate; Miscellaneous Budgets -- Enacted were a series of bills providing for the 1994-95 operating budgets of the Public Utility Commission (HB 2624, Act 7A/1994), the Office of Consumer Advocate (HB 2625, Act 4A/1994), the Office of Small Business Advocate (HB 2626, Act 5A/1994), the State Employees Retirement System (HB 2828, Act 8A/1994), the Public School Employees Retirement System (HB 2829, Act 9A/1994)), the state's workers' compensation program (HB 2830, Act 10A/1994), and the state Bureau of Professional and Occupational Affairs and other professional licensure boards (HB 2831, Act 11A/1994).

            House Bill 2624 established a $37,032,000 operating budget

for the PUC, a 6.43 percent increase over the prior year's $34,795,000 budget.  

            House Bill 2625 authorized the consumer advocate's budget at $3,803,000, an increase of $73,000 over the prior year.

            House Bill 2626 set the small business advocate's budget at $788,000, an increase of $49,000 over 1993-94.

            House Bill 2828 gave the State Employees Retirement System a budget of $14.8 million while House Bill 2829 established the Public School Employees' Retirement System budget at $23.7 million. 

            Nearly $41.6 million was appropriated to the workers' compensation program under House Bill 2830. 

            House Bill 2831 appropriated $14.8 million for the operation of the Bureau of Professional and Occupational Affairs, $2.2 million to the State Board of Medicine, $444,000 to the State Board of Osteopathic Medicine, $139,000 to the State Board of Podiatry and $262,000 to the State Athletic Commission. 

            Funding for the PUC, the consumer advocate and small business advocate comes from assessments on regulated utilities.  The budgets of the state and school retirement systems are financed by earnings on investments.  Workers' compensation program costs are paid for by assessments on insurers and self-insurers.  The professional boards are financed by fines and fees paid by licensees.

 

            ** Local Tax Reform Constitutional Amend -- Returned to the House for concurrence in Senate amendments was a proposed constitutional amendment (HB 217) that, if finally approved in two legislative sessions and okayed by the voters in a statewide referendum, would allow for a homestead or universal property tax exemption on a portion of the market value of real estate.

            The proposal, which cleared the Senate (50-0), was but one part of a renewed effort aimed at restructuring Pennsylvania's local tax system.  

            The constitutional provision would alter the state's so-called "uniformity clause" to permit certain exclusions from real estate taxes when and if the burden of local taxation is shifted from real estate taxes to a greater reliance on individual citizen wage or personal income taxes.

            The constitutional amendment is aimed at assuring that large business property owners do not gain an unfair, windfall tax break when and if the tax shift from real estate taxes occurs.

            Actual local tax reform legislation (HB 2202), meanwhile, stumbled in the Senate, in part, because its provisions were not conditioned on prior approval of the homestead or universal exemption constitutional guarantee.  Just prior to the Senate's adjournment for the summer, House Bill 2202 was rejected on a bipartisan vote (26-24) and laid on the table.

 

            *** Park & Recreation Funding -- By a two to one margin in the November 2, 1993 election, voters throughout Pennsylvania approved a ballot referendum, dubbed "Key 93," authorizing a $50 million bond issue to help pay for long-overdue repairs and improvements to state and community parks, recreation facilities, forest lands, public libraries, historic sites, and zoos.

            Placement of the bond issue question before the voters was contained in legislation (HB 52, Act 50/1993) which also stipulated dedication of 15 percent of revenues from the state's Realty Transfer tax, effective July 31, 1994, to a special Keystone Recreation, Park and Conservation Fund.  The bond issue was designed to fund immediate improvements while dedication of an estimated $20 million annually from the state's Realty Transfer tax was intended to provide long-term financing.

 

 

            *** Allegheny County Sales Tax -- Enacted was a measure (HB 659, Act 77/1993) granting Allegheny County the optional authority to impose a 1 percent county sales tax to finance regional assets and to eliminate or reduce nuisance and other taxes.

            Final approval came on a 34 to 13 vote in the Senate and a 122 to 76 vote in the House.

            Prior to its enactment, Philadelphia had been the only other county in Pennsylvania authorized to impose a 1 percent local sales tax. 

            Act 77 of 1993 requires that Allegheny County use 50 percent, or $53 million, of the estimated $106 million in new annual revenue from the county sales tax to support regional assets such as the Pittsburgh Zoo, the National Aviary in Pittsburgh, the Conservatory, Three Rivers Stadium, the Carnegie Library System and other Pittsburgh area cultural amenities and attractions.   

            The bill called for the creation of a 7-member Regional Asset District (RAD) board, appointed by the county commissioners and the mayor of Pittsburgh, to distribute funds to the regional assets. 

            The legislation required that the other 50 percent of the revenue raised, which would be divided equally between the county government and its municipalities, be used to eliminate all personal property taxes in the county, slash Pittsburgh's amusement tax from 10 percent to 5 percent or less, freeze real estate tax assessments for long-time senior citizen homeowners with incomes under $15,000 annually, and -- to the extent possible -- provide for other county, city and municipal tax reductions.

            In the first full calendar year of local sales tax disbursements, the county and city of Pittsburgh are required to use all of their allocations to reduce taxes.  Other municipalities would be required to use at least two-thirds of their allocations for tax relief.

            The county levy will be collected and distributed back to the county by the state.  And like the state's sales tax, the purchase of food, clothing and other items of necessity are exempt.

            While intended to eliminate or reduce unpopular local taxes, a primary goal of the measure was to broaden the base of financial support for Pittsburgh and Allegheny County-based tourist attractions. 

            As much as 25 percent of the new local sales tax revenue, or $26.5 million, was expected to come from out-of-town visitors to Pittsburgh and Allegheny County.

            The new method of support for Pittsburgh area cultural, recreational, sports and other attractions was also expected to free up money in both city and county budgets for public safety and other essential services.          

            Prior to the county sales tax option, Pittsburgh and Allegheny County taxpayers provided as much as $40 million annually to support regional assets.

 

            "V" Allegheny County Reassessment "Cap Trap" -- Despite Senate Democratic concerns over the true impact of the measure, the Republican-controlled Senate passed (25-23) a bill (HB 2495) that could have had the effect of only exacerbating inequities in property assessments in Allegheny County.

            As approved and sent to the governor, the bill -- as applied and implemented in conjunction with an existing Allegheny County ordinance -- would have placed an arbitrary, countywide 5 percent cap on increases in property assessments for people who have lived in their homes for three years or more.

            Although not as draconian as an earlier Senate Republican proposal that top lawyers said would have violated the uniformity clause of the state constitution, the final version of the legislation still raised serious questions as to whether it would have granted an unfair tax break to a small number of wealthy homeowners in affluent areas whose homes are significantly underassessed.

            The governor agreed and vetoed the bill.

            House Bill 2495 would have altered a 1988 law, authorized by a 1984 constitutional amendment, that granted Philadelphia and Allegheny counties the ability to provide special tax relief to longtime homeowners in areas where property values have skyrocketed because of surrounding redevelopment and refurbishment of properties.

            A longtime homeowner under House Bill 2495, however, would have been defined as anyone who had lived in their home for only three years or more, instead of the existing definition of 10 years or more. 

            Further, the measure would have required all school districts and municipalities in Allegheny County to abide by the across-the-board 5 percent assessment cap as provided for in the existing county ordinance.  Currently, the so-called gentrification program is not a mandate -- municipalities and school districts are instead given the option to participate.

            The legislative broadening of the program's guidelines, Senate Democrats warned, could have had the effect of undermining the original intent of the gentrification program -- that of granting real tax relief to those most in need.

            In fact, they said, House Bill 2495 -- if it would have been enacted -- could have boosted the actual tax burden on many of those the gentrification law was supposed to help by emasculating efforts to achieve accurate assessments and granting unjustified tax breaks in affluent areas of the county.

 

            * Cap Windfall Reassessment Revenues Instead -- Without opposition, the Senate passed a bill (SB 709) that would require Allegheny County, its municipalities and school districts to lower tax rates if reassessment of property values generated more than a 3 percent increase in tax revenues over the prior year. 

            The bill, intended to prevent any Allegheny County taxing jurisdiction from gaining an automatic "windfall" in tax revenues as a direct result of property reassessments, would also have extended the time period for appeals of Allegheny County property assessments for the current tax year.  Passed on a vote of 46 to 0 by the Senate, final House action was still pending.

 

            *** Tax Exemptions -- Non-profit organizations that support youth athletics and people who have investments in certain mutual funds were granted tax exemptions under legislation (SB 565) unanimously approved by the Senate and House and signed into law (Act 68/1993).

            The measure exempts food and beverages sold by non-profit school sports and youth athletic organizations from the six percent state sales tax.

            The legislation also excludes the payment of state income tax on earnings from mutual fund investments in tax-exempt government bonds.  Under prior Pennsylvania law, earnings from U.S. government obligations were not subject to state tax if held directly by individuals or corporations, but were subject to taxation if received as a distribution from a mutual fund.

 

            *** Out-Of-State Lottery Tickets -- Passed by both houses and signed into law was legislation (HB 559, Act 8/1993) intended to protect lottery-funded senior citizen programs by prohibiting the sale of out-of-state lottery game receipts in Pennsylvania.              As of early 1994, however, implementation of the ban on out-of-state lottery receipts had been thwarted by a federal court order. 

            The legislation marked an attempt to stop the drain of up to $1 million or more annually in lost revenues to the state's Lottery Fund because of the unregulated sale of out-of-state lottery receipts at some 300 locations throughout Pennsylvania.

            Although the sale of the actual ticket from an out-of-state lottery was previously prohibited, a loophole in the prior law permitted the sale of receipts for tickets purchased in other states.

            House Bill 559 provided that such sales would be strictly prohibited in Pennsylvania unless reciprocal compacts are established with other states that agree to allow the sale of Pennsylvania lottery tickets within their borders.

            The measure also increased the fine for violations of lottery ticket sale laws from a maximum of $500 to $2,000.

 

            * Lottery Raid Ban -- Future governors would be barred from raiding the state's senior citizen state Lottery Fund to pay for general government, General Fund programs under legislation (SB 242) passed (48-0) by the Senate.

            The measure, still pending in the House, would prevent the kind of action that occurred under former Gov. Dick Thornburgh when the prior Republican administration used monies from the Lottery Fund to pay for Welfare Department nursing home costs.  Since taking office in 1987, the Casey administration has been transferring nursing home costs back to the General Fund where they belong. 

            Gov. Casey's 1994-95 state budget, his administration's last, finally ended the nursing home cost drain on the Lottery Fund in its entirety.

 

            *** Discounted Cigarettes -- Passed by the Senate (46-2) and by the House (199-1) was legislation (Act 46/1993) increasing penalties for the sale of under-priced cigarettes.  The law prohibits retailers from purchasing cigarettes below the state's "minimum price."

 

            *** Suburban Philly Employer Withholding -- The Senate voted (26-23) to pass a bill (SB 753) requiring suburban employers of Philadelphia residents to withhold and remit wage taxes owed the city. 

            Although Senate Bill 753 was still pending in the House, its provisions were inserted as part of the tax reduction measure (HB 868, Act 48/1994) enacted as part of the 1994-95 state budget.  The proposed mandatory withholding provision for those who live in the city but don't work there is part of Philadelphia's five-year financial recovery plan, approved by the Pennsylvania Intergovernmental Cooperation Authority.

            While all workers who live in Philadelphia are required to pay the city's wage tax, the automatic withholding of the tax by suburban employers was expected to promote compliance with the law.  The measure could help to generate as much as $8 million annually for the city.

 

            *** Erie "Sunny Day" -- Enacted as Act 2A of 1994 was a bill (SB 1237) expanding authorization for a previously enacted (Act 1A/1992) Sunny Day loan to Plastek Industries for the construction of a new plastic injection molding plant in Erie County.  Originally authorized for location in the city of Erie, Senate Bill 1237 allowed the company to use the funding to build its plant in Millcreek Township, Erie County, instead.  The Plastek project was expected to result in the creation of 500 new jobs.

 

            ** Tax Returns, Unpaid Municipal Bills, etc. -- Still awaiting a concurrence vote by the House was legislation (HB 353) making numerous changes in the state's fiscal code, including a provision authorizing the state Department of Revenue to permit the electronic filing of any tax return or document. 

            The bill also provides for new penalties for filing late or fraudulent returns or for the failure by certain entities to make payments via electronic fund transfer.

            The measure requires local governments and school districts that are 45 days late in making payments for contracted goods and services from small businesses to make interest payments on the principal amount of the late bill.  The interest rate for such late payments would be established by the state Secretary of Revenue.  Exempt from the latter requirement would be bills that haven't been paid because of the failure of either the state or federal governments to provide funds for a specific project or if the municipality or school district was designated as financially distressed. 

            The bill, as amended by the Senate, would also change the definition of the "basic cost" of cigarettes for state tax purposes from the invoiced cost less trade discount to the manufacturer's list price to the dealer plus federal taxes, freight and handling charges.

 

            * Finance & Revenue Board Makeup -- The state secretary of revenue would be removed as a member of the state Board of Finance and Revenue under legislation (SB 1371) passed (48-1) by the Senate.  Removal of the revenue secretary marks an attempt to eliminate the potential for a conflict of interest on the board since many of the board's judgements involve settlements between taxpayers and the Department of Revenue.  The bill, however, adds the governor's general counsel as a member of the six-member board.  House action was still pending.

 

            "V" Capitol Annex Restoration -- Passed unanimously by both houses, but vetoed by the governor, was a bill (SB 248) that would have transferred responsibility for the restoration and preservation of the state Capitol Annex, adjacent to the main Capitol Building, from the state Department of General Services to the Capitol Preservation Committee.

 

            * Retirement Buy-Back for Law Info Unit -- Passed by the Senate was a measure (SB 1660) that would allow employees of a federally-funded law enforcement information system under the state attorney general's office, known as the Middle Atlantic-Great Lakes Organized Crime Law Enforcement Network (MAGLOCLEN), to buy additional retirement credit in the Pennsylvania Employees' Retirement System for the time when they were employees of the New Jersey State Police.  All additional costs would be borne by the employees and the federal government.  Final House action was still pending.

 

            *** Defense Supply Access Road -- Enacted was a bill (SB 1404, Act 11/1994) granting PennDOT specific funding authorization for construction of a truck access road to service central Pennsylvania's Defense Distribution Region East (DDRE) complex, formerly the New Cumberland Army Depot.            The measure provided $400,000 in state matching funds to draw down as much as $1.6 million in federal highway funding and another $5.7 million U.S. Department of Defense funding to build the access road connecting the Pennsylvania Turnpike with the Fairview Township, York County, military supply facility.  The project was viewed as critical to protect some 4,000 jobs and the future viability of the facility. 

 

PUBLIC HEALTH & WELFARE  

            *** Welfare "Reform" -- A controversial proposal (HB 1392) imposing tough new restrictions on welfare benefits passed the Senate (38-11) and the House (141-59) and was signed into law (Act 49/1994) by the governor.

            Gov. Casey had argued that without system changes and benefit reductions, soaring costs could eventually lead to the total elimination of the safety net for the neediest of citizens.

            The proposal was expected to save an approximate $90 million in fiscal 1994-95, and reduce budget costs by as much as $112 million the following year.

            Provisions of the new law provided for the following:

            -- the elimination of age as a factor for chronically needy assistance, cutting year-round monthly benefits for so-called able-bodied adults between the ages of 45 and 65 to only two months of cash assistance every two years;

            -- a reduction in benefits for those previously identified as transitionally needy, or able-bodied, from three months of cash assistance every year to only two months of assistance every two years (retroactive to apply to those who received benefits in the prior 12 months);

            -- a restructuring of the chronically needy category to include and provide full cash assistance benefits to persons with serious physical or mental handicaps, parental caretakers in two-parent homes, caretakers of seriously ill or disabled individuals in the home, pregnant women, students between 18 and 21 enrolled full-time in a secondary school, domestic violence victims, and persons being treated for substance abuse (domestic violence victims and persons being treated for substance abuse would be limited to only nine months of assistance);

            -- the elimination of prescription assistance for the transitionally needy;

            -- an end to coverage for dental services and medical supplies for all general assistance recipients;

            -- the abolishment of medical assistance coverage for infertility therapy;

            -- a 60 day Pennsylvania residency requirement for those seeking assistance;

            -- a requirement that welfare recipients sign agreements stating they will meet certain stipulated conditions in order to receive assistance;

            -- a "Learnfare" demonstration program in seven urban, rural and suburban areas of the state whereby Aid to Families with Dependent Children (AFDC) payments could be reduced by $65 for each child with a poor record of school attendance;

            -- creation of a pilot computer fingerprint program for recipients in three areas of the state;

            -- an increase in penalties and fines for welfare fraud;

            -- an exemption of educational savings accounts from income eligibility limits for general assistance; and

            -- reenactment of the state's tax credit program for businesses that hire welfare recipients, extending the program through 1999.

            Enacted as part of the 1994-95 state budget, Senate Democrats secured provisions appropriating $5 million for emergency homeless shelters in an effort to cushion the impact of the welfare cuts.  More money was included in the budget, as well, for job training and placement.

            Estimates indicated that the bill would reduce or eliminate cash assistance benefits for some 68,000 recipients.

 

            *** Welfare Liens Abolished -- Jobless individuals who are forced to seek public assistance will no longer have a welfare lien placed against their homes under legislation (HB 200) signed by the governor (Act 17/1993).

            Proponents of House Bill 200 had contended Pennsylvania's prior welfare lien requirement was punitive and unfair.  Only homeowner-recipients were faced with repaying their benefits, while others who rented or had other living arrangements had never been required to make repayments.  What's more, such liens had often prevented homeowners who had temporarily received public assistance from being able to obtain credit to make home repairs even after they were back to work.

            Passage of the repeal legislation, on votes of 39 to 8 in the Senate and 127 to 70 in the House, followed a 15 year effort.  When enactment finally came, only two other states still imposed welfare liens. 

            While the law prevents new welfare liens from being imposed, the state Department of Public Welfare announced in December, 1993, that it had removed all prior years' liens against the property of homeowners who had received public assistance. 

            Originally expected to take as long as five years, the department said it had completed removal of a total of 165,000 liens of record totaling $700 million within four months of enactment of the new law.

 

            *** Drug & Alcohol Treatment-- The governor signed into law legislation (SB 263, Act 65/1993) mandating that the Department of Health fund residential drug and alcohol treatment programs for addicted pregnant women and mothers with dependent children.

            Treatment programs receiving funds must be licensed and provide a wide array of services aimed at treating the mother's addiction, teaching the mother to be a better parent, preventing the child from also becoming an addict or alcoholic in later life, and helping the mother re-enter society as a productive member through education, job training and after-care services.

            Senate Bill 263 also called for the establishment of demonstration programs to train staff of certain social service and public health agencies in identifying pregnant women and mothers addicted to drugs and alcohol and to develop referral networks so that women identified as addicted can be referred to the proper treatment program.

 

            * Unexplained Child Deaths -- Passed unanimously by the Senate was a bill (SB 569) that would establish a Child Death Review Panel in the Department of Health to investigate unexplained and/or unexpected deaths of children under the age of 15.  The intended purpose is to find out more about cases of Sudden Infant Death Syndrome and other unexpected deaths of children to help prevent future occurrences where and whenever possible.  Senate Bill 569 is in the House Aging and Youth Committee.     

 

            *** Health Care Cost Containment Council Continued -- The governor signed into law legislation (SB 1052, Act 34/1993) which will continue The Health Care Cost Containment Council until June 30, 2003.  Without the reauthorization, the council was scheduled to sunset on June 30, 1993.

            Senate Bill 1052 also required that meetings of the Health Care Cost Containment Council are subject to the Sunshine Act and, therefore, open to the public. 

 

            * DES Info Program-- Passed (46-0) by the Senate was a bill (SB 1396) to establish a Department of Health public information and education program on Diethylstilbestrol, or DES.

            DES was a drug taken by an estimated 4.8 million women in the United States between 1941 and 1971 to help prevent miscarriages.

            Today, after being linked to reproductive health problems and cancer in the offspring of women who took the drug, it is no longer prescribed for such purposes.

            Senate Bill 1396 provides for the establishment of a voluntary statewide registry for women who took DES and their children, for the purpose of education, screening and follow-up care and treatment of long-term problems associated with exposure to Diethylstilbestrol.

            The measure also prohibits insurance companies from canceling or refusing to renew health care policies for persons who have been exposed to DES.  Final House action is still pending.

 

            ** Human Services Development Fund Established -- Returned to the House for concurrence in Senate amendments was a bill (HB 287) that would establish the Human Services Development Fund as a separate entity administered by the Department of Public Welfare.  The measure would allow county officials to determine and meet local social service needs, including categorical, generic and specialized services.

 

            ** EMT & Paramedic Training -- Passed by the Senate was legislation (HB 1474) providing for a continuing education and training program for paramedics and emergency medical technicians.  The bill was returned to the House for concurrence in Senate amendments.

 

EDUCATION

            *** School Subsidies -- The 1994-95 state budget included a $3.09 billion basic education subsidy to schools districts, plus an extra $123 million equity supplement bringing the total to more than $3.2 billion.  The subsidy formula was contained in the General Fund appropriations measure (See 1994-95 State Budget, Budget & Finance Section).

 

            *** Help With Winter, Telecommunications Gear -- Pennsylvania schools got some flexibility to deal with this past year's harsh winter -- and some help establishing distance learning programs

-- under legislation signed into law as Act 12 of 1994.

            State law requires schools to be in session for 180 days in order to receive full state reimbursement.  State law also requires 900 hours of instructional time for elementary students and 990 hours for secondary students.

            Senate Bill 375 gave school districts two new options which applied only to the 1993-94 school year.

            The first option let schools schedule classes on one Saturday per month.  The second let schools compute instructional time on an hourly basis.  In practice, the second option let schools add time to their school day, and did not penalize schools which provide the required hours of instruction but fail to get in 180 days.

            Students were excused from the additional class time permitted under Senate Bill 375 if they participated in a program of advanced learning, leadership development activities, an academic or skills competition or observing or participating in a religious activity or function.

            Senate Bill 375 also expanded the state's efforts to encourage distance learning.  The bill created a Center for Rural Pennsylvania to coordinate distance learning programs and train teachers, school administrators and business people.  The center can provide grants to institutions to provide local technical support and training coordination.

            The measure gave school districts the authority to contract with the state Public School Building Authority to lease, purchase, install, operate or maintain school buildings and education telecommunications and distance learning equipment. School districts may also lease equipment from government or nonprofit organizations.

 

            *** Distance Learning -- Schools were encouraged to offer "distance learning" programs under legislation (SB 801) signed into law as Act 45 of 1993.

            Distance learning programs are intended to use modern technology for audio and video links between classrooms in different parts of the state.  Senate Bill 801 permits contractual agreements for distance learning programs between the Department of Education, school districts, intermediate units, educational institutions, businesses and other appropriate agencies.

 

            *** Engineering School Equipment -- Legislation (HB 1609) that extends a state program which lets the Department of Commerce give engineering schools grants to buy or upgrade equipment was signed into law as Act 41 of 1993.

            The Engineering School Equipment Act is administered by the Ben Franklin Partnership Board. The legislation extends (until June 30, 1995) the board's ability to reallocate unused funds allocated for the program.

 

            *** Computer Grant Program Renewed -- A grant program which helps school districts purchase computer equipment and train teachers was reenacted under legislation signed into law as Act 80 on Dec. 22, 1993.

            House Bill 1512 reenacts the 1984 Information Technology Education Act.  The grant program will be administered by the Pennsylvania Higher Education Assistance Agency (PHEAA). 

            PHEAA will be required to establish regional computer resource centers to help school districts buy and use computer equipment and train teachers.  The 1993-94 General Fund budget contains $2 million to fund the program.

 

            *** Child Care Worker Loan Forgiveness -- College graduates who work full-time in a state-approved child care center or group day care home could have portions of their guaranteed student loans forgiven under legislation signed into law as Act 73 on Dec. 17, 1993.

            Under Senate Bill 880, full-time employees of state-approved child care centers or group day care homes may have portions of their guaranteed student loans forgiven.  The bill created the Early Childhood Education Professional Loan Forgiveness Program.  The program will forgive up to $2,500 a year of a Pennsylvania Higher Education Assistance Agency Guaranteed Student Loan.  The maximum total loan forgiveness will be $10,000.

            Participants in the loan forgiveness program must successfully complete an undergraduate program at an accredited college or university; have a bachelor's degree and state certificate in Early Childhood Education or associate's degree in early childhood education or child development; have borrowed money through PHEAA's Guaranteed Student Loan Program; be a Pennsylvania resident; earn less than $18,500 per year; and not be in default on a student loan.

 

            * Business College Licensing -- Pennsylvania business colleges would be licensed and regulated under legislation approved by the Senate, 47-1.

            Senate Bill 813 would require the state Board of Education to adopt regulations for business colleges. The colleges would have to be certified by the state Department of Education, have net assets of $500,000, post a $500,000 bond with the state and have a faculty consisting of at least eight regular time professors.

            The bill is now in the House Education Committee.

 

            * Geographic Alliance Recognized -- The Pennsylvania Geographic Alliance would be formally recognized and funded under legislation unanimously approved by the Pennsylvania Senate.

            Senate Bill 1022 would recognize the Pennsylvania Geographic Alliance as the entity to lead and promote geography education throughout the state and give it a $150,000 state appropriation.  The Alliance would have primary responsibility for in-service training, increasing public awareness, developing educational materials and targeting new populations for geography education.

            The Pennsylvania Geographic Alliance is based at Indiana University of Pennsylvania.

            Senate Bill 1022 would also conditionally exempt gas stations in moderate ozone nonattainment areas from complying with federal regulations concerning fuel vapor emissions.

            The bill is now in the House Appropriations Committee.

 

            ** Expanded Eligibility for PHEAA Scholarships -- The Senate has unanimously approved legislation which would expand eligibility for Pennsylvania Higher Education Assistance Agency scholarships.

            House Bill 2372 would let half-time students apply for PHEAA scholarships.  It would also let students enrolled in five-year undergraduate programs receive aid for their fifth year of school.

            The measure would prohibit scholarships for prison inmates.  It is the House Rules Committee.

 

            * Campus Police Logs -- College and university campus police would have to maintain a daily activities log, and make the log available to the public, under legislation unanimously approved by the Senate.

            Senate Bill 638 would require that the log contain the names and addresses of individuals charged and arrested by the campus police as well as those arrested on campus by other law enforcement agencies.  Juveniles would not be listed in the logs unless charged as an adult.

            The bill is in the House Education Committee.

 

            * Independent Counsel for SSHE -- The State System of Higher Education could appoint its own legal counsel under legislation unanimously approved by the Senate.

            Senate Bill 660 amends the Commonwealth Attorneys Act to make SSHE an independent agency.  The bill is in the House Education Committee.

 

            * Expanded Eligibility for Scotland School -- Legislation (SB 910) that would expand the eligibility guidelines for admission to the Scotland School for Veterans' Children in Franklin County passed the Senate, 49-0.

            The south-central Pennsylvania school provides education, room and board for children of war veterans, orphans and underprivileged children.

            The bill would open school admission to children from age 7 to 15.  Currently, the maximum age for admittance is 13.

            The measure would also lessen from 5 to 3 years the amount of time a custodial parent or legal guardian of a child applying for admission must have resided in the state.  Eligibility for admission would also be extended to children who had family members, other than their parents, serve in the armed forces.

            The bill is in the House Appropriations Committee.

 

            *** Insurance for Children at Scotland School -- Children at the Scotland School for Veterans' Children will be eligible for coverage by the State Insurance Fund under legislation signed into law as Act 33 of 1994.

            House Bill 464 makes the estate or funds of children attending the school property of the state.  The superintendent of the school will be the trustee for every student.

 

TRANSPORTATION

            *** Tougher Child Passenger Restraint Law -- Legislation which strengthens Pennsylvania's motor vehicle child passenger restraint system law was signed into law as Act 22 of 1993.

            House Bill 461 extends Pennsylvania's existing child restraint law to children under the age of 4, no matter where they are seated in a motor vehicle. 

            The bill also applies the child restraint law to all vehicles operated in Pennsylvania.  Prior law applied only to vehicles registered in Pennsylvania.

 

            *** Liquid Fuels Money for Curb Ramps -- Municipalities and counties could use state Liquid Fuels allocations to build curb ramps under legislation (SB 1214 and HB 1080) signed into law as Act 42 of 1994 and Act 57 of 1994, respectively.      The ramps are required under the federal Americans with Disabilities Act.

            Senate Bill 1214 applies to municipalities.  House Bill 1080 applies to counties.  House Bill 1080 also permits the use of liquid fuels funds for vehicle insurance and utilities and the transfer of liquid fuels taxes generated by off-highway recreational to the Department of Environmental Resources for trail construction.

 

            *** Penalties for Lack of Car Insurance -- Legislation which would clarify penalties for vehicle owners who don't have valid insurance was signed into law as Act 2 of 1994.

            House Bill 299 authorizes PennDOT to suspend vehicle registrations for up to 90 days in cases where there has been a lapse in insurance coverage of more than 30 days.  The bill was prompted by recent court decisions which had made it difficult for PennDOT to enforce the state's insurance requirements.

            The legislation also contains a "trigger" mechanism which would let Pennsylvania react to future changes in federal laws which govern the state's decentralized enhanced emission inspection program.

            Other provisions of the bill require that portable scales be certified every 30 days by the state Department of General Services, define vehicles such as boat transporters to comply with federal law, expand the definition of the "Miscellaneous Motor Vehicle Business" registration plate and waive school bus driver recertification driving tests until Nov. 30, 1994.

 

            *** Drug Users to Lose Drivers' Licenses -- Pennsylvanians who are convicted of federal or state drug offenses would lose their driver's licenses under legislation signed into law as Act 3 of 1994.

            House Bill 878 brings Pennsylvania into compliance with a 1992 federal law which requires that states revoke or suspend operating privileges when people are convicted of violating federal or state drug laws.  Pennsylvania had previously suspended the operating privileges of people convicted of violating the state's Controlled Substance, Drug, Device and Cosmetic Act.

            The bill also revises SEPTA's governance statute, guarantees that bonds issued by the Pennsylvania Turnpike are backed by the Turnpike's portion of the oil franchise fee and provides that funds for county mass transit programs will not lapse.

 

            *** Vehicle Code Changes -- Two bills (SB 970 and HB 986) which made a variety of changes to the state Vehicle Code were signed into law as Acts 33 and 58 of 1993, respectively.

            The bills will:

            -- establish a range of penalties for the late submission of vehicle titlework, and differentiate between fraudulent and

non-fraudulent conduct;

            -- designate Route 476 (the Blue Route) as a scenic byway and restrict the advertising which may be erected along it;

            -- make it illegal to leave small children unattended in cars parked at malls, shopping centers or other private lots (similar legislation signed into law in 1992 did not contain specific language applying to parking lots);

            -- extend the expiration date for transfers by the governor between the Workers Compensation Security Fund and the Catastrophic Loss Benefits Continuation Fund;

            -- let PennDOT use documentation received by electronic transmission as evidence admissible in a court of law;

            -- require the inclusion of Social Security numbers on applications for drivers licenses;

            -- provide for fee exemptions for volunteer emergency service personnel who require a certified driving record;

            -- suspend the driving privileges of people convicted of a drug offense in state or federal court;

            -- let mechanics road test vehicles on private property without obtaining a commercial drivers license;

            -- require nonresident ATV or snowmobile owners to obtain registration to operate their vehicles in Pennsylvania (an exemption is included for states which recognize Pennsylvania registrations);

            -- include station wagons, multi-purpose vehicles and vans which have easily removable seats under the definition of "passenger car;"

            -- authorize the construction of tourist oriented directional signs on state highways; and,

            -- let the Pennsylvania Turnpike Commission use a dedicated funding source (the oil company franchise tax) for highway maintenance and construction.

 

            *** Mass Transit Fund Allocation -- Local transportation organizations and transportation companies will have more freedom to spend state funds on asset maintenance under legislation signed into law as Act 81 on Dec. 22, 1993.

            Senate Bill 315 amends a 1991 law which created a dedicated funding source for mass transit and for highway construction projects.  The law assumed that $200 million would be available for mass transit; actual annual revenues have totaled about $130 million. 

            Senate Bill 315 modifies formulas which specify how the mass transit funds can be spent to reflect the money actually available.  The bill also lets funds for community transportation programs carry over from one fiscal year to another.           

            An unrelated section of the legislation includes a railroad or street railway police officer as an authorized person who must be obeyed in an emergency situation.

 

            *** License Plate Reissue -- Legislation which would let the Department of Transportation reissue personal license plates which have been inactive for five years was signed into law as Act 25 of 1994.  The plates were previously reserved indefinitely, even if they were no longer used on a vehicle.

            House Bill 1488 also authorizes PennDOT to issue handicapped access decals and disabled veterans decals for motorcycles.  It allows the use of motorcycles in high occupancy vehicle lanes and allows the issuance of antique motorcycle plates.

            Other provisions of the bill let the transportation secretary and the Turnpike Commission enter into multi-jurisdictional agreements and allow the use of driver-visible television equipment and electronic navigation equipment in safety and law enforcement vehicles.

 

            *** Exemption for Live Tree Transporters -- Vehicles which transport live trees were exempted from state regulations pertaining to projecting loads under legislation signed into law as Act 10 of 1993.

            Senate Bill 295 applies to nursery vehicles designed to dig up live trees and transport them for transplanting.  The bill will also let school chartered buses transport school children to special school-related events.  The provision will let schools provide for the transportation of special needs children as necessary under the Americans With Disabilities Act of 1990.

            The bill will also extend the window for school districts to apply for omnibus license plates for vehicles which carry 11 to 15 students, modify regulations governing farm equipment and implements of husbandry, specify when reconstructed vehicle titles are needed, permit increases in the cost of accident reports and let drivers of fire vehicles use communication equipment.

 

            *** Delaware River Pilotage Rates -- Legislation (SBs 502 and 503) signed into law as Acts 26 and 27 of 1993, respectively, will increase pilotage fees for vessels on the Delaware River, provide for two new classes of pilots, establish civil penalties for unlicensed practice and provide for disciplinary action.

            Senate Bill 502 will phase in pilotage increases beginning in January 1994.  The ship communication charge for vessels transiting the Delaware River will increase effective Jan. 1, 1993.

            Senate Bill 503 will increase the number of classes of pilots from four to six and require pilots on ships over 100 tons.  A civil penalty of up to twice the amount of pilotage may be assessed for operating a vessel without a license or with an expired license.

 

            *** Legislative Access to PennDOT Records -- Members of the General Assembly and Congress (or their employees) and messenger services will continue to have access to PennDOT records under legislation (SB 383) signed into law as Act 3 of 1993.

            PennDOT had traditionally allowed such access, but announced plans to change its policy because it was not specifically permitted under prior law.

 

            *** I-279 Dedication -- A portion of I-279 in Pittsburgh was dedicated to people and businesses who were displaced during the road's construction under legislation (SB 60) signed into law as Act 9 of 1993.

            A monument was to be erected to mark a section of I-279 between the Veterans' Bridge and Pittsburgh's border with Ross Township.