Senate of Pennsylvania

SENATE DEMOCRATIC WRAP-UP FOR THE 1995-1996 Legislative Session

FOR EDITORIAL BACKGROUND

Big headache items such as local tax reform and adequate funding for the state's schools and roads will remain migraines for the next two-year legislative session as the Pennsylvania Senate concluded floor action for the 1995-96 session November 26, 1996 without resolving these issues.

There were certain achievements. Machinery was put in place to deregulate the electric industry and state assistance for drug purchases by the elderly was expanded.

Generally, the accomplishments in the last few months of the session continued the pattern established early in Gov. Ridge's administration of enacting more tough-on-crime legislation and breaks for big business.

It was in the waning days of the session that major issues crowded the agenda only to wither away before final adjournment. Proposals for hiking the gas tax and registration fees, for establishing charter schools, for reforming local property taxes, and even for legitimizing slot machines, video poker and riverboat gambling, swirled through the legislative hallways during the late hours, but never came to a final vote.

The administration lobbied hard for a $408 million increase in the state's gasoline tax and auto registration fees to help pay for road and bridge maintenance and construction. Ridge wanted to increase the oil company franchise tax by 3.5 cents and raise car and truck registration fees by 50 percent -- from $24 to $36 for most cars.

Despite Republican majorities in the Senate and House, the Republican governor failed in his bid for the road tax hike because there were not enough Democratic votes to make the tax hike look bipartisan. Democrats balked at a last minute administration provision that would have allowed the privatization of highway maintenance. And the minority Democrats were also dissatisfied with insufficient fuel tax revenues going for mass transit.

Similarly, an administration initiative for charter schools failed to see the light of day. As part of his proclaimed plan for education reform, Ridge sought passage of legislation to allow groups of parents, teachers and others in communities to set up and run their own public schools. But the bill died in the Senate when the administration insisted on amendments to enable communities to bypass their local school boards and gain approval from a gubernatorial appointed commission to establish charter schools.

Earlier in the session, charter schools were part of a larger educational reform initiative advanced by Ridge that included tuition vouchers -- state subsidies for students who want to attend public schools outside their districts, or private schools. The controversial use of tax money to pay private school tuitions -- made more controversial by the administration's stagnant funding of public schools -- died struggling for votes in the House.

Local tax reform, considered essential to any eventual solution to adequate public school financing, remained an elusive goal as the curtain descended on the Senate and House ping ponging different proposals. The House wanted to abolish school property taxes completely, giving the legislature a year to come up with an alternative method of funding schools. The Senate insisted on a plan to allow referenda for local governments to choose their own tax mix. Maybe next year.

Tapping gambling proceeds to supplement tax revenues for education or senior citizen programs will also have to wait for another session. Late hour attempts in the Senate for a statewide referendum that would have allowed video poker machines in bars and for a measure that would have allowed up to 3,000 slot machines at each of the state's four race tracks were rejected. The House also turned back these proposals and another calling for a statewide referendum on allowing riverboat casinos. All were sweetened with provisions requiring a slice of the gambling profits to go for schools, senior citizens or to build sports stadiums.

Another measure which failed consideration before the legislature's sine die adjournment was an extension of a law requiring hospitals to get state approval before investing in expensive equipment or new buildings. The so-called certificate-of-need law expired amid controversy over a Senate Republican amendment to exempt five hospitals from proving a need for major expansion of facilities or services. Expiration of the law may mean an open season on construction of heart bypass surgery and other facilities.

Hospital deregulation may have been inadvertent, but opening up competition among the state's electric utilities was definitely intentional; in fact, hailed as a crowning achievement of the two-year session.

By the year 2001, all Pennsylvania consumers will be able to shop for the best deal in generated electricity. The transmission and distribution of electricity will remain a monopoly regulated by the Public Utility Commission, so there may be a frenetic unbundling of electric services in the next few years as companies split and merge to gain the most profitable edge. Some Democrats opposed the deregulation legislation because it carried no guarantees of lower rates for consumers.

The entire Senate did approve an expansion of the lottery supported Pharmaceutical Assistance Contract for the Elderly (PACE). Income eligibility was increased for elderly individuals and couples, many of whom were failing to qualify for the program because of cost-of-living increases in social security and other pensions. And a second tier was created to allow senior citizens with modestly higher incomes to get subsidized prescriptions after paying a yearly $500 deductible.

Electric deregulation and PACE were just part of the flurry of legislative activity that seems always to be stirred at the close of a session. The skyrocketing costs of medical malpractice insurance were confronted in legislation to reduce payments to a state-operated catastrophe loss fund and to discourage frivolous medical malpractice lawsuits. And in another bill, optometrists for the first time were given a limited right to treat patients with drugs.

Cracking down on crime, which received special attention earlier in the session, continued to preoccupy legislators up to the final day. A loophole was closed in the state's driving-under-the influence law that will permit the court use of blood alcohol tests taken up to three hours after an arrest. Hunting under the influence was made a crime. Tough penalties were instituted for telemarketing fraud and the theft and resale of compact discs. The Board of Probation and Parole was expanded from five to nine members, with more consideration to be given to crime victims. And same sex marriages were denied legal recognition in Pennsylvania.

Favorable treatment for corporate businesses remains as much a hallmark of the Republican controlled two-year session, and Ridge's first two years as governor, as was the special crime session that lengthened prison stays for a variety of offenses. About $300 million in business tax cuts were enacted and the state's 83-year-old worker's compensation law was changed to limit severely payments to injured workers. Despite these measures, the administration's economic forecasts for the state at the close of the year were quite flat.

And for consumers, interest rates on credit card purchases may soon slide upwards as the majority Republicans prevailed in removing an 18 percent cap on charges in one of the last batch of bills approved during 1995-96.

Most of the legislation briefly mentioned here and many other bills either approved by the Senate or enacted into law are described in more detail in this review.

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

INDEX

 

PAGE

Aging and Youth 61

Agriculture and Rural Affairs 83-85

Banking and Insurance 45-49

Budget and Finance 1-13

Communications and High Technology 61-62

Community and Economic Development 79-80

Consumer Protection and Professional Licensure 72-76

Education 13-16

Environmental Resources and Energy 16-21

Game and Fisheries 85-88

Intergovernmental Affairs 62

Judiciary 21-45

Labor and Industry 62-65

Law and Justice 76-77

Local Government 65-72

Military and Veterans Affairs 77-79

Public Health and Welfare 52-55

State Government 49-52

Transportation 55-61

Urban Affairs and Housing 80-83

Legislation is coded as follows:

* Senate passage

** Senate and House passage

*** Became law

V Vetoed by governor

Budget & Finance

*** 1996-97 State Budget -- A conference committee report on the major part of a $16.4 billion state general fund budget for 1996-97 drew some reluctant Democratic support as the Senate approved it 36-13, beating a June 30 deadline for a new budget by a couple of days.

All 29 Senate Republicans and seven Democrats voted for the new budget bill (SB 1583), which required no tax increases and called for a $15 million tax cut for businesses who create new jobs (See Community & Economic Development, HB 2668) and a $4 million sales tax exemption on the sale of race horses (See Veterans Affairs, SB 1251). Senate Bill 1583 was signed by the governor June 29, 1996 as Act 1A.

Senate Democrats berated the new budget for not providing any increased spending for basic education. The $3.4 billion basic education subsidy for the state's 501 school districts to help cover their instruction costs remained the same as the previous year. With the pressures of inflation, said Democrats, the increased school costs will likely have to be made up by local property tax hikes.

Further, Democrats noted, a lawsuit against the commonwealth by some 200 school districts who claim state aid is skewed against rural and urban school districts will gain new force because of the stagnant state education subsidy. This is a provocation, they said, for the courts to step in and mandate a more equitable distribution of state aid to the schools.

The Education Department's governmental operations costs were cut back $3.5 million from the previous year, a 17 percent loss. The effect has been a reduction in the number of personnel involved in calculating aid formulas, indicating a lack of intent by the administration to initiate more equitable funding formulas.

However, some Democrats, though not enamored by the budget, cast their votes for it, saying it was an improvement over the governor's original version which proposed $186 million less in spending.

Under this budget bill, they noted, funds for special education increased by $15.3 million -- from $537.4 million to $552.7 million. The governor had proposed a decrease of more than $4 million in special education funding.

Also, the early intervention program which provides therapy and special instruction for handicapped children under 3 received $75.9 million, or $3.6 million more than was proposed by the governor.

The governor had also called for the total elimination of an $18 million line item for the Home Emergency Mortgage Assistance program, which helps people suddenly unemployed pay their mortgages until they find new jobs. This budget restored $3 million for the program.

The Commission for Women, slated to lose its entire $346,000 appropriation, continued to operate with funding of $100,000.

Other funding cuts proposed by the governor that were restored included $40 million for sewage treatment plants, $220,000 to support the Keystone summer games, $700,000 for the state health care centers -- for a total appropriation of $16.1 million and some assurance they will not be privatized. Also scuttled was the governor's plan to cut $6 million by eliminating line items for such illnesses as hemophilia, sickle cell anemia, cystic fibrosis and services for children with special needs. Another plan to charge certain municipalities for state police protection was abandoned.

The budget package did increase slightly funding for the four state-related universities: Penn State, University of Pittsburgh, Temple and Lincoln universities. Funding for private universities continued at previous levels, contrary to the governor's proposal to halve the assistance.

Although the budget did include a new appropriation of $33 million for schools to purchase computers, Democrats remained critical of the freeze on aid for basic and higher education. Funding for the State System of Higher Education's 14 universities remained at about $398 million, and $152.1 million for community colleges.

Further, the budget contained no increase in funding for Pennsylvania Higher Education Assistance grants for the first time in a decade, keeping the appropriation at $233 million.

Also, $37.8 million in educational opportunity grants were eliminated as were $1.44 million in teacher development programs; funding for intermediate units was cut in half from $11 million to $5.5 million; funding for pupil transportation was increased $15.88 million, from $313.58 million to $329.47 million; and nonpublic school transportation was increased from $37.8 million to $38.21 million.

The overall flat support for education, said Democrats, characterized a budget that lacked any vision for the future, nor compassion for society's less fortunate.

They noted that the budget was built on recent legislation to remove some 220,000 working poor from health care coverage, cutting state costs by $210 million (See Public Health & Welfare, SB 1441).

But, instead of using the savings for such things as education, the money was ploughed into a ten percent increase for state prisons, boosting its appropriation to $933 million.

Priorities in this budget were wrong, said Democrats, who preferred an emphasis on prevention and education, rather than on punishment.

The governor and his allies in the Legislature delivered much rhetoric on how the budget would help economic development. They pointed to a new $25 million Opportunity Grant Fund

that would be used for business expansions. However, it was unclear how the grants would be disbursed, or who would be eligible.

And while the budget created this fund, it faded out a longstanding program to lure new businesses into Pennsylvania. The Sunny Day Fund, a Democratic initiative of the early 1980's, gave financial help to businesses planning to locate or expand in the commonwealth. Such financial aid required two-thirds approval by the Legislature, a safeguard against the majority party monopolizing business development in its members districts. Two years ago, $25 million was appropriated for the Sunny Day Fund. Last year, it was $15 million. And in the new fiscal year, nothing.

The budget package also included a $1.9 billion Motor License Fund to finance road maintenance and most of the state police operating costs. The new fiscal year's highway budget included an expenditure of $61 million to rehabilitate roads damaged by the January, 1996 floods. It also earmarked $255 million for mass transportation assistance, the same as the last fiscal year.

The total $1.9 billion highway budget expenditure was about the same as the previous year. It is supported by gas tax and license and registration fee revenues. The administration had pushed for a 6.5 cent increase in the gas tax to support the new budget, but it never materialized. Then, nearly halfway into the 1996-97 fiscal year, the administration again lobbied for more money -- about $408 million -- through a 3.5 cent increase in the oil company franchise tax and a 50 percent increase in car and truck registration fees. The 1996 session ended without their enactment.

*** Non-Preferred Appropriations -- As part of the overall budget package for the new fiscal year, the Senate overwhelmingly approved 36 so-called non-preferred appropriation bills for state-related and private universities and health and cultural institutions. They were contained in HBs 2720 through 2755, which became Acts 9A-44A.

The non-preferred appropriations, which totaled about $665 million, must be approved as separate bills by a two-thirds vote of the legislature because they represent spending on institutions not under the direct control of state government.

In his original budget proposal, the governor had proposed maintaining current spending levels for the four state-related universities -- Penn State, Pitt, Temple and Lincoln-- and halving the appropriations for private universities such as the University of Pennsylvania and Drexel, saving about $35 million.

However, the Senate restored the spending for the private institutions to current levels and increased slightly the funding for the state-related schools. Some of the larger non-preferreds were:

House Bill 2752, Penn State, $281 million, compared to $277 million the previous year; HB 2755, University of Pittsburgh, $149 million, compared to $147 million; HB 2753, Temple, $149 million, compared to $147 million; HB 2754, Lincoln, $10.3 million, compared to $10.2 million; HB 2742, University of Pennsylvania, $35.5 million; HB 2745, Thomas Jefferson University, $10 million; and Hahnemann Medical College, $10.3 million.

On the last day, another non-preferred (HB 2768, Act 45A) was unanimously approved that appropriated $160,000 to the Arsenal Family and Children's Center.

*** PUC Budget -- The Pennsylvania Utility Commission budget for 1996-97 of about $37 million was unanimously approved by the Senate (SB 1485) and signed by the governor July 10, 1996 as Act 46A.

It was slightly less than the previous year's $37.4 million budget. This funding is derived from assessments on utilities regulated by the PUC.

*** Consumer Advocate -- Senate Bill 753, approved unanimously by the Senate and signed July 2, 1996 as Act 2A, appropriated $3.9 million to the Office of Consumer Advocate in the attorney general's office for 1996-97. The funding, derived from utility company assessments, was about $64,000 more than the previous year.

*** Business Advocate -- Senate Bill 1487, approved unanimously by the Senate and signed July 2, 1996 as Act 8A, appropriated $823,000 for the Office of Small Business Advocate in the Commerce Department for 1996-97, a $123,000 decrease from the previous year. This money is derived from assessments on utilities regulated by the Public Utility Commission.

*** Capital Budget -- A $517 million capital budget for 1996-97 (SB 1496) was unanimously approved by the Senate and signed July 11, 1996 as Act 101.

This budget, which authorizes the size of debt that can be incurred for capital projects in the new fiscal year, permits $189 million in public improvement projects, $140 million for transportation assistance, $90 million for redevelopment assistance, $13 million for flood control and $85 million for highway projects.

A provision in an earlier version of this bill would have required bond counselors, underwriters and others involved in bond issues to bid their services competitively. This language was stricken from the legislation, which means the administration can continue to award contracts as it sees fit.

The capital budget authorization for 1995-96 was for $526 million.

***Network Upgrade -- A $179 million supplemental capital budget for 1996-97 (SB 857) to install a modernized communications network to improve public safety was approved unanimously by the Senate and signed by the governor December 5, 1996 as Act 148.

The statewide, digital radio network will allow the state police and other state agencies to communicate more efficiently during emergencies. The project is expected to take four years to complete and includes building radio towers equipped with transmitters. County and local governments will have access to the new equipment.

The network's new digital signal is expected to be more resistant to static interference than signals from older technology. Also, state officials said that signals for data transmission will be tougher to intercept and decipher.

*** Flood Repair -- Special session legislation (SS HB 3, Act 9) to appropriate $53.8 million for capital projects to repair highway and railroad bridges damaged by the January, 1996 flood was unanimously approved by the Senate and signed by the governor July 11, 1996. These projects are being financed by revenues in the Motor License Fund. This legislation also appropriates $1.8 million for various railroad projects, and $4.9 million for public transit authorities.

*** Flood Protection and Repair -- Flood control and hazard mitigation projects throughout the commonwealth are itemized in special session HB 2, signed July 11, 1996 as Act 10. This legislation, unanimously approved by the Senate, authorizes nearly a $392 million debt to pay for the projects. Any federal money committed to the itemized projects will not be reduced by the amount of bond-financed money appropriated.

*** Board Budget -- A $15,980,000 budget to cover administrative costs for the State Employees' Retirement Board for 1996-97 is in SB 1480, unanimously approved by the Senate and enacted July 2, 1996 as Act 3A. This is about a $100,000 increase over the previous year.

*** School Retirement Board -- Senate Bill 1481, signed July 2, 1996 as Act 4A, appropriated $24,256,000 to the Public School Employees Retirement Board for fiscal 1996-97, a decrease of about $150,000 from the previous year.

*** Workers Comp Budget -- Senate Bill 1482, signed July 2, 1996 as Act 5A, transferred $42.688 million from the Workmen's Compensation Administration Fund for administrative costs for the Department of Labor and Industry to operate the fund, and $180,000 to the Department of Economic and Community Development to fund workers' compensation activity by the Small Business Advocate. This was about a $40,000 increase over the previous year to operate the fund. The Small Business Advocate received $85,000 less than the previous year.

*** Workers' Comp Budget -- Senate Bill 863, approved unanimously by the Senate and signed December 18, 1996 as Act 47A increased to $48,588,000 the appropriation from the Workers' Compensation Administration Fund to the Department of Labor and Industry for costs to administer the fund for fiscal 1996-97.

*** License Boards Budgets -- Senate Bill 1483, unanimously approved by the Senate and signed July 2, 1996 as Act 6A, appropriated for 1996-97 $15,396,000 to the Department of State's Bureau of Professional and Occupational Affairs, $2,756,000 to the State Board of Medicine, $138,000 to the State Board of Podiatry, $410,000 to the State Board of Osteopathic Medicine, and $224,000 to the State Athletic Commission.

*** Flood Forecasting -- The Senate unanimously approved special session HB 37 which appropriated $120,000 in fiscal 1996-97 to the Susquehanna River Basin Commission to computerize new flood stage forecast maps for use by municipalities and the Pennsylvania Emergency Management Agency. It was signed June 28, 1996 as Act 1A.

*** 1995-96 State Budget -- A 1995-96 state general fund budget, characterized by Senate Democrats as stuffed with payoffs for Republican votes and deficient in spending for human resources, passed the Senate by a mostly party line vote of 30-20.

House Bill 1169, which included the $16.1 billion general fund budget for 1995-96, earlier passed the House 126-77. It was signed into Act 5A by the governor June 30, 1995.

Overall, it increased state spending by about $426 million, or 2.7 percent more than 1994-95.

General fund state spending actually totaled about $16.2 billion because another $650 million in non-preferred appropriations were approved in separate bills for Penn State, Pint and other state related and private educational, health and cultural institutions.

House Bill 1169 included $43 million for a tuition voucher program that would pay parents up to $1,000 to send their children to public, private or parochial schools of their choice. However, the legislation to authorize spending for the program never was approved.

When this money is added to $460.2 million the governor certified as surplus at the close of the 1994-95 fiscal year, the result was a budget flush with extra dollars despite provisions for a $284 million reduction in business taxes (See Taxes).

Senate Democrats raised constitutional objections to the budget's inclusion of nearly $32 million for various projects or organizations spread throughout districts of legislators who were ready to support the governor's school tuition voucher proposal. They represented improper payoffs, Democrats charged.

And the charges had validity. In November 1995, Commonwealth Court stopped $13.2 million of these questionable appropriations from going to 145 individually named service and charitable organizations. Without contesting their merit, the court said the general fund budget could not designate funds for specific organizations not under the direct control of government. Such appropriations must be passed as separate bills by a two-thirds vote of the legislature.

Senate Democrats also objected to a budget that hoarded more than $1/2 billion in uncommitted funds.

Democrats had advocated returning some of the surplus to taxpayers in the form of a cut in the personal income tax rate and in pumping needed funds into local school districts, higher education, health programs and the job producing infrastructure.

However, Democrats were refused an opportunity to amend the governor's budget.

Ironically, six months later in December, 1995 the governor's midfiscal year briefing on the state's finances showed the $500 million surplus had just about disappeared. He attributed this to reduced revenues from a sluggish economy and greatly accelerated prison costs.

The 1995-96 budget did restore funds to a $38.4 million program to support the operation of municipal sewage plants. The governor had proposed eliminating the program which, since 1953, has provided municipalities with stipends equal to 2 percent of the construction cost for a sewer plant to help cover operation costs. Senate Democrats wanted the funding restored so local sewer rates would not increase.

Also, the budget increased the basic education subsidy to local school districts by $143 million, increasing the appropriation from $3.21 billion to $3.36 billion (See Education).

However, because of the great disparity between wealthy and poor school districts in the amount spent on each student, Senate Democrats wanted an additional $42.3 million targeted to the poorer school districts. Special subsidies to level the playing field between school districts were contained in the last two state budgets, but discontinued in the Ridge budget for 1995-96.

For higher education, the State System of Higher Education's 14 universities were held to $388 million, the same funding as in 1994-95.

These universities and the state related schools -- Penn State, Pitt, Temple and Lincoln -- were able to qualify for an extra $100 per student by holding tuition increases to no more than 4.5 percent. The governor had proposed $15 million for this program, but it was increased to $24 million in the final budget.

The only substantial increase in educational spending went for college aid grants, which actually benefit private colleges the most. About $233 million was appropriated to the Higher Education Assistance Agency which administers the scholarship grants. This was an increase of $27 million or 13 percent over 1994-95.

But spending for public education overall increased only minimally.

By contrast, the Corrections Department appropriation was boosted from $721 million to $818 million, making it one of the fastest growing expenditures in the state budget.

The state planned to spend $92 million to build four new prisons, three of them for violent juveniles. This followed the largest prison construction project in state history, initiated by the previous administration, which added 7 new prisons and 10,000 new cells to the prison system.

Prison building was about the only type of economic development activity contained in the 1995-96 budget. The Pennsylvania Economic Revitalization Fund (PERF), which received $42.5 million in 1994-95 and consolidated most of the state's economic assistance programs, was abolished.

Welfare recipients were squeezed with an $81.5 million reduction in the cash grant program (See Welfare, HB 2), which eliminated a $360 payment the transitionally needy were getting over two-year periods. The total cash grant appropriation of $593 million was considerably less than the rapidly rising medical assistance appropriation, which was about $1.3 billion for 1995-96.

The governor did veto language in the budget bill, effectively restoring a $2.03 million appropriation for family planning centers. The language would have denied the money to the centers if they counseled pregnant women.

Besides the general fund which covers the operations of state agencies, the budget included several special funds such as the motor license fund which pays for highway related costs.

The $1.9 billion motor license fund for 1995-96 represented about a $39 million increase over the 1994-95 budget of $1.88 billion. Of that, highway maintenance and construction costs were $1.4 billion, an increase of $45 million. Also, the state police were given a $22 million increase to $252 million in 1995-96.

An appropriation of $37,439,000 was authorized for the Public Utility Commission for 1995-96, about $400,000 more than the previous year. This funding is derived from assessments on utilities regulated by the PUC.

When federal funds are added, the total state budget for 1995-96 was about $31.2 billion.

*** Taxes --As part of the 1995-96 budget package, the legislature approved a measure cutting business and other taxes by some $284 million.

House Bill 39, which also included a tax amnesty feature, was approved 44-6 in the Senate, concurred in by the House 180-21, and signed by the governor June 30, 1995 as Act 21.

The original provisions of the bill to repeal a 2 percent insurance premium tax for annuities and set a tax amnesty for 90 days during 1995-96 were retained after the measure was heavily amended to provide corporate and other tax cuts.

Attempts by Senate Democrats to include tax cuts to benefit working people and small businesses were rebuffed by majority Republicans when the measure was considered earlier by the Appropriations Committee.

Democrats, who were blocked from offering amendments on the Senate floor, wanted to reduce the personal income tax from 2.8 to 2.5 percent by January 1, 1996. They argued that working people and the thousands of small businesses in the state should also share in a tax break made possible by a $500 million surplus that had accumulated in the general fund.

Small businesses and subchapter S corporations, which comprise some 98 percent of Pennsylvania's 231,000 businesses, pay personal income taxes, not corporate net income taxes, said Senate Democrats, and would have stood to benefit from a reduction in the PIT.

Elimination of the four-year-old 2 percent tax on insurance annuities reduced revenues by $24.7 million.

The largest cut of $163 million stemmed from reducing the corporate net income tax from 10.99 to 9.99 percent retroactive to January 1, 1995. The CNI had been slated to drop to that level by 1997.

The CNI was also reduced by $40.7 million for multi-state corporations who do business in the state because the legislation double weights their sales factor in the calculation of their Pennsylvania CNI payments.

Other tax reductions resulted from:

-- Increasing the net operating loss carry forward maximum for corporations from $1/2 million to $1 million;

-- Increasing the exemption for the capital stock and franchise tax from $75,000 to $100,000;

-- Eliminating the inheritance tax paid by surviving spouses;

-- Eliminating the gross receipts tax for intrastate rail freight and providing tax exemptions for apiary manufacturing equipment, coin operated phone calls, video programming service, and a number of other services.

The governor had originally proposed tax cuts amounting to about $214 million. The additional cuts were balanced by projected revenues from the tax amnesty program.

*** Sunny Day -- A Sunny Day Fund measure (SB 933) to provide $9 million in loans to two companies planning to expand in Pennsylvania was signed by the governor June 13, 1995 into Act 1A.

The legislation authorized a $2 million loan to Bush Industries to construct a new furniture distribution and manufacturing facility in Erie and a $7 million loan to Berg Electronics to construct a manufacturing facility in Huntingdon County.

The Sunny Day Fund was established more than ten years ago to provide low interest loans to attract new industries or encourage their expansion in Pennsylvania. As the loans are repaid, funds become available for new projects. Legislation approving each project requires a two-thirds vote of the General Assembly.

Before final passage, this bill became embroiled in controversy because of concern by Democrats over the solvency of the fund. In April, 1995 the fund showed commitments totaling $62.7 million and a negative balance of $10 million.

By May, 1995 the governor was able to assure Democrats that approved commitments would not be jeopardized by the new loans, and the bill cleared both chambers unanimously.

*** More Sunny Day -- The Senate unanimously approved HB 2222, a measure appropriating $19.5 million from fiscal 1995-96's Sunny Day Fund for low interest loans to three companies to locate expanded operations in Pennsylvania. It was signed by the governor Dec. 21, 1995 into Act 48A.

The bill gave Lockhead Martin $15 million to locate a new facility in Bucks County, expected to create 1,500 jobs. Sony Electronics received $3 million for operations in Westmoreland County, expected to create 500 jobs; and Genesis Health Ventures received $1.5 million for operations in Chester County, expected to create 230 jobs.

*** Cable TV Operators Get Competition -- Cable TV operators will have some competition thanks to HB 1297, which was signed into law as Act 37 on July 6, 1995.

Under the new law, entities such as telephone companies can offer video programming services to residents. Their services will be subject to a 5 percent sales tax to the local municipality in which they are offered, the same tax paid by cable TV.

*** Personal Property Tax -- Counties were given more flexibility in levying a personal property tax in legislation (HB 1488) approved unanimously in the Senate and signed by the governor October 31, 1995, into Act 54.

Previously, counties choosing to impose the tax had to establish a fixed rate of 4 percent. The new law permits any rate up to 4 percent.

Personal property taxes can be imposed on certain mortgages, bonds and stock. This legislation excludes from the tax stock held as part of an employee's stock purchase plan.

*** Local Governments Prohibited from Using Pension Funds -- Legislation (HB 1973), unanimously approved by the Senate and signed March 29, 1996, as Act 14 prohibits local governments from using pension funds as security for bonds or notes issued to fund their pension plans.

*** Real Estate Tax Relief for the Elderly -- Philadelphia can now provide real estate tax relief for the elderly, poor and disabled under legislation (HB 2223) signed into law July 2, 1996, as Act 91. Any future increases in the real estate tax will be partially paid for or forgiven for Philadelphia's elderly, disabled and poor.

*** Pension Funds for Regional Police Departments -- Regional police departments covering two or more municipalities will be required to establish a pension fund or annuity for their officers, under a measure (SB 633) passed unanimously by the Senate and signed into law May 10, 1996 as Act 33.

Also, the bill allows service credits to be transferred for a full time officer appointed from a municipal police force to a regional force.

*** Pittsburgh Stock Brokers Exemption -- Pittsburgh stock brokers will be exempt from the city’s business privilege and mercantile tax under legislation unanimously approved by the Senate and signed into law July 11, 1996, as Act 102. Senate Bill 1600 prohibits the city from imposing a business tax, mercantile license tax or any other tax on the gross receipts of a regulated financial institution.

*** PACE EXPANSION --More senior citizens will be included in a state subsidized drug prescription plan under legislation (HB 544) approved unanimously by the Senate, but which some Democrats worried was only a temporary solution to a recurring eligibility problem.

The measure, signed into law by the governor November 21, 1996 as Act 134, is expected to add 75,000 senior citizens to the lottery supported Pharmaceutical Assistance Contract for the Elderly (PACE). However, many of them will have to spend $500 on prescriptions before qualifying for assistance.

Previously, under PACE, senior citizens earning less than $13,000 a year individually or $16,200 per couple could buy prescriptions for $6 each.

This bill raised the income limits for the first time in five years to $14,000 for individuals and $17,200 for couples. It also created a second, PACENET tier whereby individuals earning between $14,000 and $16,000 and couples earning between $17,200 and $19,200 can get subsidized prescription drugs after spending a $500-per-person deductible. Instead of spending $6 for drugs, senior citizens in the PACENET tier will pay $8 for generic drugs and $15 for brand name drugs.

The new law discourages the use of brand name drugs by requiring, besides a higher copayment, that the purchaser pay 70 percent of the wholesale cost of the brand name drug.

Since 1988, when more than 477,000 senior citizens were enrolled in PACE, some 200,000 have been dropped from the program because cost-of-living increases in social security and other pensions pushed them over the program's income limits.

Senate Democrats this session unsuccessfully introduced measures to raise the income eligibility limits, with some advocating a built-in cost-of-living adjustment so that seniors would no longer be bumped because of social security increases.

Democrats contended the cost of raising income eligibility limits could be covered by eliminating periodic transfers of lottery funds to support general government expenditures that are supposed to be covered strictly by tax revenues.

Also, Democrats proposed raising the income limits without imposing any deductibles. The $500 deductible requirement in the PACENET tier will apply to more and more senior citizens as inflation adjustments drive their pensions higher, Democrats noted.

This expansion of PACE is expected to cost the lottery fund an additional $43 million, most of which, according to the governor, will be covered by less payments to pharmacists and drug manufacturers.

Under the legislation, pharmacists will be reimbursed for only 90 percent of the average wholesale costs of prescription drugs, plus a dispensing fee of at least $3.50. Previously, the program paid full price for prescriptions plus a $2.75 dispensing fee. Generic drugs are mandated unless they are unavailable. Another savings is expected by requiring drug manufacturers to rebate the state 17 percent of the cost of brand name or generic drugs. Previously, manufacturers rebated 15 percent of brand name costs and 11 percent of generic costs.

Originally, HB 544 would have placed a one-year moratorium, beginning December, 1995, on eliminating senior citizens from PACE whose pension increases were making them ineligible for the program. The moratorium was never enacted and the legislation became the vehicle for an expansion of the program.

** Local Tax Reform -- Local tax reform remained an elusive goal as the Senate amended a House version of the legislation, sending it to die in a House committee as the two-year 1995-96 session ended.

Last year, the Senate approved SB 2, a measure to permit counties, municipalities and school districts to abolish nuisance taxes and shift from a reliance on property taxes to an increased personal or earned income tax.

The House amended the bill, narrowing its scope to only school property taxes. It later gutted the bill, and inserted a simple provision to abolish school property taxes completely, giving the legislature a year to come up with an alternate method of funding schools.

When this version was returned to the Senate during the last week of session, senators voted 38-12 to restore the bill's original tax shifting provisions, bouncing it back to the House. But the House adjourned without further action.

The restored Senate version would have allowed voters in a particular municipality, county or school district to vote on a new tax structure. Once approved, the new set of local taxes would be in place and any decision to increase the property tax portion of the mix would have to be approved in subsequent referenda.

Proponents said the plan would give homeowners long sought relief from skyrocketing property taxes. Opponents said the bill was slanted toward business, and feared homeowners and wage earners would have to take up the slack and end up with a greater tax burden.

Opponents also felt the referendum requirement for any future tax increases would actually discourage local taxing bodies from opting into a new plan.

The Senate version would have let counties impose a 0.5 percent personal income or earned income tax. Counties could have imposed a 1 percent sales tax, to be shared with their municipalities and school districts.

Municipalities could have replaced nuisance taxes with up to a 1 percent personal or earned income tax. And school districts could have shifted to a personal or earned income tax of up to 2 percent, with surpluses used to reduce property taxes.

The Senate and House did approve a related constitutional amendment this session (SB 284) to permit local governments to exempt a portion of the residential property tax, known as the homestead exemption. This is considered necessary to true tax reform because it would give local governments the flexibility to reduce residential property taxes while maintaining a higher level of business property taxes. The constitutional amendment will have to be approved again in the next session and by voters before it takes effect.

* Public Charities Defined -- Legislation (SB 355) passed the Senate, 35-15, that would lower the requirements for nonprofit organizations to qualify for tax exempt status as charities. Organizations that benefit a community culturally, spiritually or emotionally could be considered charities.

Under the Senate passed bill, tax exempt charities would have to show that they advance a charitable purpose; benefit people who truly need help; relieve government of a burden; do not make a profit; and donate their services generously. The bill would eliminate tax exempt status for charities that pay their chief executive officers more than $100,000. It would let state-related universities seek certification as purely public charities. But they would be prohibited from using their tax-exempt status to compete unfairly with small businesses.

The measure was amended in House committees but never considered by the full House.

*** COLAs for Retired Officers -- Legislation was unanimously passed by the Senate that would grant cost of living adjustments (COLAs) to retired firefighters and policemen without causing them to lose their state contribution to their local pension funds.

Under SB 388, "fiscally sound" municipalities--those that are at least 50 percent funded--would be allowed to grant COLAs without losing the state contribution. The measure would amend the Special Ad Hoc Municipal Police and Firefighter Postretirement Adjustment Act which currently says that state contributions made to local pension funds are correspondingly reduced by the amounts of COLAs given.

The bill was unanimously approved by the House and signed December 18, 1996 as Act 152.

*** Organ Donor Fund -- The Senate unanimously approved a $300,000 appropriation for a fund to facilitate organ donations for transplant surgery.

The appropriation contained in SB 1303 is for the Organ Donation Awareness Trust Fund, which administers the state's Organ Donor Card program. The legislation was signed by the governor December 20, 1995 into Act 47A.

*** Prison Conversion -- A measure to finance the conversion of Somerset State Hospital into a state prison was approved 47-1 in the Senate and signed by the governor November 17, 1995 into Act 34.

Special Session SB 109 authorized a $1.9 million bond-financed expenditure to convert the hospital into a 1,350-inmate medium security prison for men.

The conversion involves the purchase and installation of two perimeter fences and an electronic detection system.

Before enactment, the bill had been amended by the House to include a $10.6 million appropriation to renovate the Quehanna Motivational Boot Camp in Clearfield County and permit the boot camp to receive prisoners from county prisons around the state. The Senate removed this amendment.

*** Pay Scale Change -- The state Senate concurred 26-22 in a conference committee report (SB 1074) that for the first time since 1987 increased salaries for the governor, his cabinet, judges and legislators. It was concurred in by the House 104-91 and signed by the governor October 19, 1995 into Act 51.

Under the bill, the governor's salary was increased from $105,000 to $125,000 and the lieutenant governor from $83,000 to $105,000. The attorney general, auditor general and treasurer had their pay increased from $84,000 to $104,000. Pay for cabinet officers increased an average of about $18,000, and members of the state judiciary received 8 percent boosts, with the chief justice of the Supreme Court getting $123,000.

Legislators, whose base salary of $47,000 was less than the average of tenured teachers in the commonwealth, had their pay increased to $55,800.

Though legislators had not had an increase in eight years, the raise approved in the bill was calculated on the basis of rising costs experienced in the economy since 1990.

The governor had expressed difficulty in forming his cabinet early in 1995 because of an inability to compete with benefits corporate executives and professionals are receiving. Similarly in the legislature, a number of lawmakers had left in recent years, citing financial hardships.

Included in the legislation were provisions for subsequent cost-of-living adjustments.

*** Taxpayers' Bill of Rights -- The so-called taxpayers' Bill of Rights (HB 2572), requiring the Department of Revenue to provide more information when dealing with taxpayers was signed into law December 20, 1996 as Act 195.

Under the bill, the Revenue Department must provide a taxpayer with a list of a taxpayer's rights and obligations during an audit.

Also, under the bill, payments will be applied to reducing tax liability first, thereby reducing the total amount of interest owed.

Taxpayers will also have the right to have an audio recording of their interviews with the Revenue Department.

*** Municipalities Remain Eligible for State Aid -- Legislation (HB 2579) was signed into law as Act 150 on December 10,1996 that protects municipalities that have borrowed money to eliminate an unfunded liability in their pension systems. The new law clarifies that municipalities incurring such a debt will still qualify for state aid.

*** Postretirement Adjustments Made for Military Service -- Under legislation (HB 168) signed into law December 18, 1996 as Act 167, certain Public School Employees' Retirement System members and State Employees' Retirement System members will receive special supplemental postretirement adjustments for certain military service. The adjustments apply to those who retired between October 1, 1975, and January 1, 1985, (PSERS) or between February 28, 1974, and January 1, 1985, (SERS).

Education

*** 1995-96 Education Funding -- A measure authorizing state spending for education in 1995-96 was approved by the Senate, 44-6, and signed into law as Act 26 on June 30, 1995.

House Bill 20 allocates funding for basic education, special education, community colleges, distance learning grants and nonpublic school transportation. It also creates a "safe schools" office in the Department of Education to combat violence and prohibits weapons on school property.

The bill restores $4 million in temporary aid to seven distressed school districts that was eliminated from the 1995-96 budget. It cuts special education funding for Philadelphia and Pittsburgh.

All districts in the state receive aid for special students, including the severely handicapped and the gifted, based on the number of such students served. The two largest school districts, Philadelphia and Pittsburgh, received a direct supplement of $40 million for special education this past fiscal year which the governor wanted to cut in half. House Bill 20 cuts the funding by $10 million -- $7.5 million for Philadelphia and $2.5 million for Pittsburgh.

The bill eliminates funding for the Connelley Adult Education Center and the Bidwell Training Center, both in Pittsburgh, which serve disadvantaged and needy people.

House Bill 20 contains the formula for the state's $3.357 billion basic education subsidy for the next fiscal year, which increases by $144.4 million over the current year ($23 million more than the governor had proposed). All school districts will get at least a 1 percent increase in subsidies, with poorer schools getting as much as 4 percent more. Schools with rapidly growing enrollments will get an even greater percentage increase.

Also, under the bill, students bringing weapons onto school property or a school bus can be expelled for one year.

The "safe schools" office established by the legislation will collect and disseminate information about school violence and encourage schools to establish programs such as conflict resolution and classroom management.

*** Sabbatical Limits -- Legislation that limits teacher sabbaticals was signed into law as Act 66 on June 25, 1996. It was approved by the Senate, 35-14.

Under House Bill 1031, teachers may take sabbaticals for professional development or health reasons. The bill eliminates sabbaticals for travel, severance pay or early retirement. School boards will have sole authority to adopt and enforce sabbatical policies.

School boards can authorize classroom occupational exchanges that will let professional employees take leaves of absence to work in business, industry or government. School districts will be reimbursed by the participating business, industry or government entity for the cost of salary, wages, benefits and pensions.

Professional development leaves will have to be directly related to an employee’s professional responsibilities as determined by the school board. Employees seeking a sabbatical leave must to submit a detailed plan describing their proposed professional development activities and provide evidence that the plan was followed during a leave.

*** Safe Schools Legislation -- Students who habitually skip school could lose their drivers’ licenses under legislation signed into law as Act 29 on Nov. 17, 1995. Special Session Senate Bill 98 also increases penalties for truancy. Parents of truant children, and the children themselves, will face fines of up to $300. Parents may be required to attend a parenting education program.

Truant students will lose their operating privileges for 90 days for a first offense and for six months for subsequent offenses. Insurers may not increase premiums or cancel insurance for such suspensions. The bill also requires the Department of Education to develop recommendations for community-based antitruancy pilot programs. It requires schools to report chronically truant children under age 13 to a county youth agency.

A companion bill in a "Safe Schools" package requires that school principals be notified when juveniles are adjudicated delinquent. Special Session Senate Bill 99 was signed into law as Act 30 on Nov. 17, 1995.

The bill requires that public, private and parochial school principals receive specific information about adjudicated students. The information may be used solely to protect school personnel and will have to be maintained separately from a student’s official school record. The information may not be used for admissions or disciplinary decisions unless the acts occurred on or within 1,500 feet of school property.

Principals will inform a child’s teacher of all information received about a student.

A third bill, Special Session Senate Bill 96, would have given schools a new tool to deal with "disruptive students." The bill would have let school districts create Disruptive Student Programs that would remove disruptive students from regular classrooms and give them instruction and counseling services. It was in the House Education Committee when the Special Session ended.

*** Resident Tuition for Military -- Civilian personnel and their dependents assigned to active military duty in Pennsylvania will be entitled to Pennsylvania resident tuition rates at state colleges and universities under legislation (HB 2305) signed into law as Act 60 on June 28, 1996.

The less expensive resident tuition rates will apply to state community colleges, state-owned and state-related institutions.

*** Limits on Government Role in School Assignment -- The Pennsylvania Human Relations Commission cannot determine pupil school assignments under legislation signed into law as Act 117 on July 12, 1996.

House Bill 1689 is commonly known as the Neighborhood School Bill. Under the bill, pupil assignments will be determined only by local education authorities unless changes are needed to remedy a violation of the equal protection clause of the 14th Amendment to the U.S. Constitution.

The bill also expands the definition of "housing for older persons" to include a requirement that housing complies with regulations promulgated by the Human Relations Commission.

*** Special Ed Funding, Computer Grants, etc. -- Special education funding for the 1996-97 school year was increased to $1,115 for mildly impaired students and $13,125 for severely impaired students under legislation signed into law as Act 107 on July 11, 1996. House Bill 837 also establishes other state funding for schools for the 1996-97 school year.

The bill creates Project Link to Learn, which will help schools buy computer equipment, and establishes a standard employment application for all Pennsylvania school districts. It allocates $1.45 million to help school districts experiencing severe financial problems, provides temporary aid to districts that lose tax revenue due to reductions in assessed valuation, limits basic education funding to that received in the 1995-95 school year and increases the full-time equivalent student reimbursement factor for community colleges to $1,210.

The state will no longer help school districts pay for children placed by a court in a private residential rehabilitative institution. School district liability for such placements will be limited to 150 percent of a district’s tuition charge.

*** Private Licensed School Definition -- Hospital-based allied education programs operated by a hospital under the Health Care Facilities Act were exempted from the definition of Private Licensed Schools under legislation signed into law as Act 81 on July 2, 1996.

House Bill 2680 requires that such programs be accredited by a regional or national accreditation agency.

*** Teacher Tenure and Termination -- Public school teachers must wait an additional year before qualifying for tenure under legislation signed into law as Act 16 on March 29, 1996.

Senate Bill 708 makes teachers eligible for tenure after three years. Tenure could be granted after two years under prior law.

The bill also establishes additional causes for the termination of teachers, including unsatisfactory teaching performance, physical or mental disability that substantially interferes with the ability to perform essential functions, conviction of a felony and persistent and willful violation of school laws.

*** Make-up Days for Storm -- Schools were permitted to hold classes on one Saturday each month to make up days lost due to bad weather under legislation signed into law as Act 28 on May 6, 1996.

House Bill 2339 did not permit tests to be given during the Saturday sessions. It required that schools use all available days to meet the state’s 180 day instructional requirement and let schools compute instruction time on an hourly, rather than daily, basis. Schools were required to offer 900 hours of instruction for elementary students and 990 hours for secondary students

 

* Expulsion for Students With Weapons -- Students who bring weapons to school would face a one-year expulsion under legislation unanimously approved by the Senate.

House Bill 38 would expel students for at least a year if they bring a weapon onto school property, to a school-sponsored activity or on a vehicle providing transportation to school. School superintendents could recommend punishment short of expulsion on a case-by-case basis.

The bill defines weapons as firearms, knives, nunchaku and any other instrument capable of inflicting serious bodily injury.

School districts would be required to develop written policies regarding expulsions for possession of weapons. They would report incidents involving weapons and acts of violence to a new Office for Safe Schools in the state Education Department.

House Bill 38 is in the House Rules Committee.

* Academic Standards -- Legislation that would create a 12-member State Education Standards Commission was unanimously approved by the Senate. The commission would recommend academic standards to the State Board of Education by Dec. 1, 1996. The board would then have 90 days to review the recommendations and promulgate proposed regulations.

Standards established under Senate Bill 1352 the bill would include, but not be limited to, mathematics, science, reading and writing. The standards commission would consist of the Secretary of Education, seven members appointed by the governor, two members appointed by the President Pro Tempore of the Senate and two members appointed by the Speaker of the House.

Senate Bill 1352 would also repeal the Sept. 30, 1996, deadline for school districts to submit strategic plans. The bill is in the House Appropriations Committee.

* Public Hearing for Board Vacancies -- School boards would have to hold a public hearing before filling a board vacancy under legislation (SB 239) unanimously approved by the Senate.

The public hearing provision would apply to second, third and fourth class school districts. A board vacancy would have to be filled within 30 days. Vacancies in first class districts would be filled by the local Court of Common Pleas.

The bill is in the House Education Committee.

* Adult Literacy -- Legislation that would coordinate Pennsylvania’s efforts to promote adult literacy was approved by the Senate, 48-0.

Senate Bill 975 is an effort to better reach the four million Pennsylvanians in need of adult literacy services. It would coordinate adult literacy funding and programs across state agencies and create an Interagency Coordinating Council to promote public awareness of literacy challenges and solutions.

The bill is in the House Education Committee.

Environmental Resources and Energy

*** DER Split -- Legislation that eliminates the state Department of Environmental Resources and divides its responsibilities between two new departments -- the Department of Environmental Protection and the Department of Conservation and Natural Resources -- was signed into law as Act 18 on June 28, 1995.

House Bill 1400 was unanimously approved by Senate. The House concurred in Senate amendments on a vote of 194-9.

The new Department of Conservation and Natural Resources will be responsible for state parks, forestry programs, community recreation, river conservation and similar activities. It will have approximately 1,300 salaried and 1,400 seasonal employees and an annual budget of approximately $177 million.

The Department of Environmental Protection will enforce environmental regulations and be responsible for waste management, deep mine safety, drinking water and other similar activities. It will have approximately 3,000 employees and an annual budget of approximately $442 million.

The state Health Department will take over regulation of swimming pools and bathing places.

House Bill 1400 will continue the state’s Environmental Quality Board.

*** Industrial Site Redevelopment -- A three-bill legislative package intended to encourage the cleanup and redevelopment of old industrial sites has been signed into law.

The industrial site reuse bills simplify the way Pennsylvania sets environmental standards for industrial properties and limit the liability of new owners who did not cause pollution.

The centerpiece of the package is Senate Bill 1 (Act 2/1995) -- the Land Recycling and Environmental Remediation Standards Act. The bill establishes the overall process for cleaning and reusing industrial sites. Other provisions of the bill set requirements for public notice and public review of cleanup plans, which are not now part of most state cleanup programs, and for limiting cleanup liability when a site owner meets the cleanup standard. The bill includes special provisions that encourage the cleanup and reuse of truly abandoned sites and areas in state-designated enterprise zones.

Senate Bill 1 also creates a $15 million Industrial Sites Cleanup Fund to help pay for environmental studies and cleanup plans. The fund will make grants and loans to people who didn’t cause pollution on a property and agree to clean it up. The fund will also support redevelopment efforts by political subdivisions and local development agencies.

The second bill in the package, Senate Bill 11 (Act 3/1995), will protect financial institutions, economic development agencies and municipalities from cleanup liability if they are merely providing financing for a project and if they hold other interests in the property but do not cause pollution on it.

The final bill, Senate Bill 12 (Act 4/1995), will create a special fund to finance environmental assessments by economic development agencies.

*** Tire Recycling -- Legislation that will encourage tire recycling and ban the disposal of whole waste tires in landfills was signed into law as Act 190 on Dec. 19, 1996. House Bill 1929 also creates a program to reduce pollution by small businesses and households.

The measure establishes an investment tax credit program for companies that recycle waste tires and provides funding for the cleanup of waste tire sites. The Department of Environmental Protection will be required to develop a list of waste tire sites. A grant program funded by the state Recycling Fund will help fund efforts to remove waste tire piles.

The bill creates a program to educate small businesses and the general public about ways to prevent pollution and manage solid and hazardous wastes. It establishes procedures for household hazardous waste collection programs.

*** Storage Tank Law Changes -- Legislation that makes several changes to the state’s Storage Tank and Spill Prevention Act was signed into law as Act 16 on June 26, 1995.

House Bill 825 exempts aboveground tanks of 1,100 gallons or less used to store motor fuel for noncommercial purposes or motor oil; expands the exemption for underground commercial heating oil storage tanks; provides for the optional participation of such tanks in the Underground Storage Tank Indemnification Fund; adds members to the Storage Tank Advisory Committee and Indemnification Board: requires DER to reimburse owners of underground storage tanks for the costs of some testing, monitoring and studies; and requires that owners of

some noncommercial farm tanks used to store diesel fuel pay the same insurance fee as owners of gasoline storage tanks.

*** In-lieu-of-tax Payments Double -- In-lieu-of-tax payments to counties, townships and school districts were doubled under legislation signed into law as Act 49 on July 6, 1995.

House Bill 861 increases the payment to $1.20 per acre. The payments are made by the state Department of Environmental Resources, which will see its annual costs rise to $2.4 million, and by the state Game Commission, which will see its costs rise to $1.64 million.

*** Deadline Extended for Well Bonding -- The deadline for some wells to comply with bonding requirements of the Oil and Gas Act was extended under legislation signed into law as Act 41 on June 28, 1995.

House Bill 1639 gives operators of unbonded wells drilled before 1956 another three years to comply with the bonding requirements. The new compliance deadline is August 1998.

*** Capital Park Projects -- Legislation that itemizes 1995-96 capital projects under the Keystone Recreation, Park and Conservation Program was signed into law as Act 56 on Oct. 31, 1995.

Senate Bill 858 authorizes DER to use $14,930,000 for capital projects at the following state parks:

Bendigo State Park, $1,500,000

Codorus State Park, $1,200,000

French Creek State Park, $1,000,000

Neshaminy State Park, $1,500,000

Prince Gallitzin State Park, $1,900,000

Raccoon Creek State Park, $2,000,000

R.B. Winter State Park, $1,500,000

Yellow Creek State Park, $1,000,000

Pool repairs at Sizerville,

Hyner Run, Bendigo, Reeds Gap

and Mt. Pisgah state parks, $ 630,000

Moraine State Park, $ 900,000

Caledonia State Park, $1,200,000

Frances Slocum State Park, $ 600,000

*** Dust Control in Second Class Townships -- Legislation that establishes exemptions from dust control requirements for some highways in Second Class Township was signed into law as Act 68 on Nov. 28, 1995.

The exemption created by House Bill 490 applies to highways where no businesses or residents are located.

*** Phosphate Ban Extended -- Legislation that extends the sunset date of the Phosphate Detergent Act from December 31, 1995, to December 31, 1998, was signed into law as Act 78 on Dec. 20, 1995.

House Bill 2189 also establishes an additional exception to the prohibition on phosphorous content, allowing for a total amount not exceeding 0.5% phosphorous that is incidental to manufacturing or that is added to stabilize the cleaning agent or its packaging.

*** Rainy Day Fund, Tree Harvesting, Department Shifts -- Legislation that transferred $57 million from the General Fund to the Tax Stabilization Reserve (or Rainy Day) Fund and $7 million from the Capital Loan Fund to the Machinery and Equipment Loan Fund was signed into law as Act 10 on Feb. 23, 1996.

House Bill 272 began as a measure that requires the Department of Conservation and Natural Resources to study its tree harvesting practices in state forests. That provision remains in the bill, along with a variety of unrelated provisions that:

-- redefine "surplus property" and revise the process by which the state disposes of it;

-- appropriate $2 million from the Energy Conservation Assistance fund to the Department of Environmental Protection for fiscal year 1995-96;

-- require that lapsed Energy Conservation and Assistance Fund money be reappropriated to the program that lapsed the funds;

-- transfer administration of the Anaerobic Manure Digesters Act from the Pennsylvania Energy Office to the Department of Agriculture;

-- require the state Health Department to designate a Health Care Policy Board that would be responsible for the Certificate of Need Program and licensing of facilities established under the Health Care Facilities Act;

-- give the Department of Labor and Industry authority to regulate modeling and theatrical agencies; and,

-- create a joint select committee under the Joint State Government Commission to investigate the financial integrity of the State Workmen’s Insurance Fund.

*** Diesel Equipment in Coal Mines -- Diesel powered equipment can be used in bituminous coal mines under legislation signed into law as Act 182 on Dec. 19, 1966.

House Bill 2828 will allow the use of diesel equipment underground if the equipment uses an engine approved or certified by the federal Mine Safety and Health Administration. The equipment must be attended while in operation.

*** Storage Tank Changes -- Legislation that would make several changes to the Storage Tank and Spill Prevention Act was signed into law as Act 34 on May 10, 1996.

Senate Bill 638 changes the definitions of aboveground storage tank and storage tank facility, changes the out-of-service inspection frequency requirements for aboveground storage tanks and limits third party civil actions. It requires the Underground Storage Tank Indemnification Board to conduct a study to determine the feasibility of a low interest loan program from the Underground Storage Tank Indemnification Fund. The loan program will be used by owners of underground storage tanks to bring the tanks into compliance with technical standards and corrective action.

*** Mining Bonds, Water Loss -- Legislation signed into law as Act 43 on May 22, 1996 revises requirements for payments in lieu of bond for remining operations and reclamation bond credits and changes the criteria dealing with rebuttable presumption for water loss in areas near mining operations.

House Bill 1940 also makes several corrective technical changes to the Surface Mining Conservation and Reclamation Act dealing with remining incentives and government-financed reclamation contracts.

*** Guaranteed Energy Savings Contracts -- State and local governments can enter into Guaranteed Energy Savings Contracts under legislation (SB 1083) signed into law as Act 29 on May 10, 1996.

The contracts will allow energy saving improvements to be made based on a guarantee that the savings will offset the cost of the improvements.

*** Cable Television Lines at Ohiopyle -- The state can approve a restricted right-of-way for cable television lines through Ohiopyle State Park under legislation (HB 76) signed into law as Act 2 on Feb. 7, 1996. The cable lines would serve the Borough of Ohiopyle, which is surrounded by the park.

* Negotiated Rulemaking -- The Senate has unanimously approved legislation that would establish a process for negotiating environmental regulations and policy guidance and create a uniform policy for public access to Department of Environmental Protection documents.

Senate Bill 872 would let DEP and the Environmental Quality Board use negotiating committees to develop environmental regulations and policy. The committees would attempt to reach a consensus on a proposed regulation or policy. When a consensus is achieved, DEP and the EQB would be required to propose it. The final regulation or policy could be changed by DEP or EQB after additional public review.

The bill also authorizes DEP to create temporary or permanent advisory committees and stakeholder groups to help develop or discuss regulations or policy and to provide advice on implementing DEP programs.

DEP would be required to provide public access to its written policies, procedures, guidance, decision rules, guidelines, technical standards and specifications.

Senate Bill 872 is in the House Environmental Resources and Energy Committee.

* Submerged Lands Charges -- The Senate has unanimously approved legislation (SB 639) that would eliminate annual charges for use of the state’s "submerged lands." Easements, rights-of-way, leases and licenses for the use of submerged lands would instead be subject to a one-time fee that could not exceed the annual charge established in current DER regulations.

The bill is in the House Environmental Resources and Energy Committee.

* In-lieu-of-tax Payments for Parks -- The Senate unanimously approved legislation that would require DER to make annual in-lieu-of-tax payments to school districts for state park property that is leased for rental amounts nearly equivalent to fair market value. The amount of the payments would be equivalent to the tax that would be collected if the Commonwealth did not own the land.

Senate Bill 771 would also restrict the siting of methadone maintenance facilities and require that employees of the facilities undergo criminal background checks and periodic drug testing. The facilities could not be located within 1,000 feet of a school, church or playground.

The bill is in the House State Government Committee.

* Explosives Regulation -- Pennsylvania's outdated laws governing the use of explosives would be revised and updated under legislation unanimously approved by the Senate.

Senate Bill 868 would increase penalties for unsafe blasting activities, respond to changes in explosives technology and establish new licensing requirements for people who conduct blasting activities. The state Department of Environmental Protection would regulate the use, storage, purchase, sale and handling of explosive materials.

The legislation was in the House Environmental Resources and Energy Committee when the session ended.

** Recreational Land Use -- Landowners would be encouraged to make their property available for recreational use under legislation unanimously approved by the Senate.

Senate Bill 654 would expand the definition of "land" under the Recreational Use of Land and Water Act, which limits the liability of landowners who let their property be used for public recreation. It would also add field sports, basketball and horseback riding to the definition of "recreational purpose" under the act. The bill is a response to recent court decisions. It has returned to the House for a concurrence vote, and is in the House Rules Committee.

Judiciary

*** Gun Control -- Legislation to keep guns out of the hands of criminals was unanimously approved in the state Senate and signed into law as Act 17 on June 13, 1995.

Special Session HB 110 was hailed as a major victory by its Democratic sponsor, who described the measure as: "a model for the nation of a sensible resolution of the problem of keeping guns out of the hands of the wrong people."

The bill cracks down on illegal gun sales and prohibits people convicted of violent crimes or judged mentally or emotionally incompetent from possessing guns. It does not ban any weapons.

The new law will:

-- prohibit purchases of any type of firearms by people convicted of violent crimes such as rape, arson and so forth, even if they were juveniles when the crimes were committed;

-- prohibit gun purchases by people convicted of drug offenses, or three driving under the influence offenses within a five year period;

-- increase penalties for the illegal sale of handguns, rifles and shotguns;

-- expand the categories of convicted criminals prohibited from owning or possessing a firearm to include such crimes as aggravated assault, corruption of minors, illegal gun sales and so forth;

-- hold sellers criminally liable for criminal acts committed with an illegally sold gun;

-- and establish a computerized instant background check for individuals waiting to buy firearms in Pennsylvania. This will be funded by a $3 surcharge on all gun sales.

The bill eliminates Pennsylvania's 60-year-old law requiring a 48-hour cooling off period before someone could buy a handgun. The waiting period was deleted, with some senators arguing the electronic background checks would make the two-day waiting period unnecessary. Others regretted removal of the cooling off period, saying it was effective in preventing crimes of passion.

The bill also overturns a requirement in Philadelphia that people demonstrate a need before they are granted permits to carry concealed weapons.

*** Gun Law Amended -- Pennsylvania's new firearms law, designed to keep guns out of the hands of criminals and incompetents, had certain registration provisions loosened in an amendment approved 36-9 in the Senate and signed into law as Act 66 on Nov. 22, 1995.

The amending legislation was contained in a conference committee report on SB 282, which also toughens penalties for food stamp fraud and allows local referenda on the operation of bottle clubs.

Enacted in June, 1995, the state's Uniform Firearms Act provides for the creation of a computerized instant background check for people wishing to buy firearms. People with records of violent crime convictions or with histories of mental or emotional incompetence cannot have firearms under the new law.

The electronic background checks, however, will not be implemented by the state police until the end of 1999. In the meantime, the state developed regulations requiring gun dealers and patrons to complete and file a bewildering amount of paperwork. Dealers complained that sales were discouraged and buyers feared their names would remain on permanent police registration lists.

Senate Bill 282 amended the law to exempt purchasers of rifles and shotguns from having to undergo criminal background checks until Jan. 1, 1997.

After that date, long gun buyers will have to submit applications to the state police for background checks until the computerized system is in place for instant checks. Some legislators opposed the temporary scrapping of background checks on long gun buyers, saying it created a dangerous loophole in the law.

Under the legislation, state gun application forms will no longer be submitted to local sheriffs, only to the state police who must destroy the forms within 72 hours after completing the background checks. These checks must be completed within 14 days.

The amended law will also allow a gun sale to proceed if the instant background system is out of operation for longer than 48 hours. Gun dealers would be required to obtain a paper record that could be used to complete the check later.

Also, the new gun law eliminates a section that provided immunity for mental health professionals who report dangerous patients to law enforcement officials.

The original provisions in SB 282 to crack down on food stamp fraud and to let communities close bottle clubs were preserved with the gun law amendments.

Under the bill, anyone convicted of the unauthorized sale of federal food coupons valued at $1,000 or more will be subject to a third degree felony penalty of up to seven years in jail. Sales valued at less than $1,000 could result in a five-year jail sentence. Currently, food stamp fraud convictions can result in no more than a year in jail.

The bill also provides that bottle clubs -- places that do not have liquor licenses, but charge an entrance fee and provide liquor or permit patrons to bring their own bottles -- can be shut down by communities choosing to do so in a referendum. At least 25 percent of the community's voters would have to petition for the referendum.

Also, the bill prohibits the sale of butane to anyone under 18. Violators are subject to a first time fine of $250, and subsequent fines of $500.

*** Megan's Law Notification -- A plan to notify communities about released violent sexual offenders in their midst considered likely to repeat their crimes, known as "Megan's Law", was approved unanimously in the Senate. It was signed into law as Act 24  on Oct. 24, 1995.

Under Special Session SB 7, sexual offenders whose victims were minors or whose sexual assaults were violent, regardless of their victims ages, must register with the State Police for ten years. These include people convicted of rape, involuntary deviate sexual intercourse, aggravated indecent assault or spousal sexual abuse.

Upon conviction of a sexual offender, a state board will determine if the offender is a sexually violent predator -- that is, prone to repeat the crime. If the trial judge concurs, the sexual predator, upon release from prison, will have to keep the State Police notified of his or her whereabouts every 90 days. Further, neighbors and the community in which the predator locates will be so notified by their municipal police.

The so-called Megan's Law was named after 7-year-old Megan Kanka of New Jersey, who was raped and strangled in 1994 allegedly by a twice-convicted child molester.

Included in the notification process are colleges, schools, day care centers, preschool programs and the county children and youth agency.

*** Longer Terms for Repeat Offenders -- The Senate, in an attempt to reduce violent crime, approved "three strikes" legislation that imposes longer prison terms on repeat violent offenders.

Special Session HB 93, which also allows juvenile offenders to be held more than the previous 10-day maximum if hearing delays are caused by them or their attorneys, passed 45-2 after it was amended to include the "three strikes" provisions. The bill was signed into law as Act 21 on Oct. 11, 1995.

Under the measure, a third violent felony conviction will mean a sentence of 25 to 50 years, or life imprisonment without parole. A two-time violent offender will face at least 10 years in prison.

Before passage, Senate Democrats failed (17-30) to strengthen the bill with an amendment to mandate life imprisonment for a third violent felony conviction. Though they supported passage of the final version, Democrats characterized it as a watered down, "three strikes and you're benched" attack on violent crime.

Among the violent offenses that will trigger longer sentences are murder, rape, kidnaping, car jacking, burglary of an occupied home, and aggravated assault. Previously, murder was the only charge that carried a life sentence.

The bill mandates that anyone convicted of a second violent crime be given a 10 to 20 year sentence, unless the assumption that the offender is dangerous can be rebutted at a court hearing. If successfully rebutted, a minimum 5 year sentence would be imposed.

Second time violent offenders will be warned that a third violent felony conviction will mean at least a 25 year sentence, or life imprisonment without parole.

Juvenile convictions will not count as strikes, nor will prior offenses more than 7 years old.

The bill also mandates a minimum sentence of 5 years for possessing a firearm during the commission of a violent crime, and for committing such crime in or near public transportation facilities.

The new law was estimated to cost the state an additional $537,000 in the first year, based on an expected increase of 23 state prison inmates.

*** Cells for Juveniles -- As a follow-up to previous legislation to transfer certain juveniles to the adult criminal courts, the Senate passed Special Session SB 101, a measure to provide cell space for the anticipated new residents. The bill was signed into law as Act 19 on July 7, 1995.

It authorizes bond-financed expenditures of $145,785,000 for cell space for an additional 1,990 adult offenders and 500 juveniles sentenced as adults, and 100 Youth Detention Center beds for juveniles. It will also provide for jail renovations not associated with the additional cell space.

*** Prison Boot Camp to get New Draftees -- More prisoners will be eligible for motivational boot camp programs under legislation signed into law as Act 86 on July 2, 1996.

House Bill 2580 allows inmates serving minimum sentences of three years or less to participate in the Quehanna program when they are within two years of completing their minimum. Previously, only inmates with minimum sentences of two years or less were eligible.

The program is only operating at two-thirds capacity and this measure will increase the pool of potential eligibles by 1,400 to fill another 250 slots.

*** Child Protection -- Penalties for involuntarily causing the death of a child under age 12 were increased under legislation signed into law as Act 31 on July 7, 1995.

Special Session HB 578 makes involuntary manslaughter a second degree felony when the victim is under age 12, and when the person who causes the death has custody or control of the child.

The bill also makes a parent, guardian or other person supervising the welfare of a child under 18 subject to a first degree misdemeanor for knowingly endangering a child.

*** Ridge's First Law -- Special Session SB 19, unanimously approved by the Senate, was signed into law as Act 1 of 1995, the first law of the new administration.

The measure authorizes judges to review juvenile records when setting bail for juvenile offenders. The review is to be limited to documents relating to delinquency adjudications and dispositions, orders resulting from disposition review hearings and histories of bench warrants and escapes.

Ridge signed the measure on Feb. 22, 1995.

*** Hasten Death Warrants -- Another early priority that became law in the new session was Special Session HB 1, a bill that requires governors to sign death warrants within 90 days. It was approved by the Senate, 43-6, and signed into law as Act 4 on March 15, 1995.

The bill is similar to a measure passed by the General Assembly the previous year. That bill, which would have required a governor to sign warrants within 60 days, was vetoed by former Governor Casey.

The new law will force governors to sign death warrants within 90 days of a convicted killer's death sentence being upheld by the state Supreme Court. Advocates of the measure said without prompt action on death warrants, which set the dates of executions, inmates have no motivation to begin their federal and state appeals process.

If the governor fails to issue an execution warrant within 90 days, the Secretary of Corrections is empowered to sign the death warrant.

The bill also extends the list of aggravated circumstances a jury must consider in a first degree murder case to include previous murder or voluntary manslaughter convictions.

According to a Democratic staff analysis, implementing the measure will cost an additional $800,000 a year.

*** Pennsylvania "Son of Sam" Law -- Legislation that mandates restitution for crime victims and prevents criminals from exploiting their crimes for profit was signed into law as Act 12 on May 3, 1995.

Special Session HB 18 requires courts to order defendants to pay full restitution to their victims. A Senate amendment restricted the legislation to apply only to adult courts.

Criminals will also be responsible for money paid to a victim by any governmental agency such as the Crime Victim's Compensation Board or an insurance company. Restitution can be paid in a lump sum or in installments.

In response to "Son of Sam," a serial killer who received royalties on written and dramatized accounts of his case, and other notorious crimes, the new law requires the Crime Victim's Compensation Board to be notified of all commercial contracts signed with a defendant. The board or the victim could then file a civil suit to recover any profits made from the crime.

The Board is responsible for publicizing the existence of such profits so affected victims can be alerted to file their claims.

*** Victim Notification -- A Democratic sponsored bill to require that crime victims be notified when their assailants are released from county jails was signed into law as Act 2 on March 9, 1995.

Prior law had required victim notification when prisoners were about to be released from state correctional institutions. Special Session SB 14 extends that requirement to local jails. A local prison, under the bill, is one operated by one or several counties. Victims who suffered personal injuries will be notified when offenders are furloughed, paroled, given work release, placed in a community treatment center or escape.

*** Attempted Murder Penalty -- The ante has been raised for attempted murder convictions in a bill (Special Session SB 16) signed into law as Act 3 on March 19, 1995.

A conviction of attempted murder that results in serious bodily harm will carry a sentence of up to 40 years in prison. If no serious injury occurs, an attempted murder conviction will be punishable by a prison sentence of up to 20 years.

Previously, attempted murder carried a maximum sentence of 10 years.

The law also imposes a fine of up to $50,000 for murder or attempted murder.

*** Bail Amendment -- A constitutional amendment that would let judges deny bail to people considered a danger to the community was approved by the General Assembly and filed with the Department of State as Pamphlet Laws Resolution No. 3 on April 26, 1995.

Special Session SB 12 will have to be passed again in the next legislative session and approved in a referendum before going into effect. The bill, which passed the Senate 43-6, drew some Democratic opposition because of fears that a fundamental right of an accused to bail was being eroded.

Currently, bail can be denied to people charged with capital offenses, for which the maximum sentence is death or life imprisonment.

Under the proposed constitutional amendment, a judge could also deny bail when, in the judge's opinion, only imprisonment "will reasonably assure the safety of any person and the community."

*** Change in Pardon Board -- A constitutional amendment to require a unanimous recommendation by the Board of Pardons before a death or life imprisonment sentence could be commuted was approved by the General Assembly and filed as Pamphlet Laws Resolution No. 2 on April 26, 1995.

Special Session SB 4 must be approved again in the next session in a referendum before the constitution could be changed. Currently, only a majority board vote is needed to recommend a pardon or commutation by the governor.

The legislation was prompted by the release in 1994 of Reginald McFadden, a convicted murderer, who was subsequently arrested in New York on rape and murder charges.

In the Senate, an amendment to remove the lieutenant governor and attorney general from the five member board, replacing them with gubernatorial appointees, failed, 9-40. Proponents argued that the two elected officeholders were unlikely ever to vote to recommend a prisoner's release, making the prospect for a sentence commutation or pardon impossible because of the requirement for a unanimous board decision.

The bill would also change the composition of the board's appointed members, replacing a lawyer with a crime victim and a penologist with a corrections expert. The third appointed member would be a doctor or psychologist with expertise in predicting violent behavior.

*** Protect Child Victim's Testimony -- A constitutional amendment to remove the requirement that defendants meet their accusers face to face was approved in the 1994 and 1995 sessions of the General Assembly and in a referendum Nov. 7, 1995.

The constitutional amendment approved in special session SB 11 preserves the right of defendants to be confronted by witnesses against them, but that confrontation, in the case of child victims or witnesses, can be satisfied through the use of videotaped depositions or closed-circuit television.

Legislation (SB 1322) to implement the constitutional amendment was approved unanimously by the Senate and signed by the governor December 18, 1996 as Act 161.

Under the new law, the court must determine that testifying in the defendant's presence would cause the child serious emotional distress that would make him or her unable to communicate. The law applies to children under 16.

*** Juveniles to be Fingerprinted -- Juveniles arrested for misdemeanors or felonies may be photographed and fingerprinted under legislation unanimously approved by the Senate. Special Session SB 10 was signed into law March 15, 1995, as Act 6.

Information collected under the new law may be used by law enforcement officials for investigative purposes. It will be kept separately from adult records in a central repository maintained by the state police. The information will be destroyed if the juvenile is found innocent.

Approximately 10 additional state police employees will be needed to process an estimated 42,000 prints and files at a cost of about $266,000.

*** Stricter Control of Juvenile Records -- Legislation that places additional conditions on the expungement of juvenile records was signed by the governor March 5, 1995, as Act 7.

Under previous law, juvenile offenders could have their juvenile records expunged by court order at age 21. Special Session SB 20 lowers the age to 18, and requires the consent of an attorney for the Commonwealth in addition to a court order. It also requires a variety of factors to be considered such as offense, age, employment history, criminal activity, drug and alcohol problems and the effect on the public.

The measure requires that the district attorney receive 30 days notice of an expungement request, up from 10 days under previous law.

*** Assistance for Crime Victims -- An Office of Victim Advocate was created by legislation (Special Session HB 14) unanimously approved by the Senate and signed into law as Act 8 on March 21, 1995.

The office will be located within the Board of Probation and Parole and will represent the interests of crime victims before the Board. The victim advocate will be appointed by the governor to a six-year term, and will be subject to Senate confirmation.

The advocate will supervise the victim notification duties now conducted by the Board, coordinate the preparation of oral testimony and the submission of written comments by crime victims before a release decision and represent the interests of the crime victims.

Crime victims will be given at least 90 days notice of an impending parole date and the opportunity to submit a statement regarding parole or parole supervision. The victim, or the advocate, can appear before the Board or hearing examiner for comment before a release decision. Testimony will be confidential.

The Office of Victim Advocate will cost approximately $296,000.

*** Tougher Sentences and Fines for Murderers -- A measure to fine convicted murderers up to $50,000 and increase the prison term for a conviction of third degree murder was signed into law as Act 5 on March 15, 1995.

Special Session HB 16 increases the maximum term for third degree murder to 40 years. The previous maximum term was 20 years.

*** Combine Juvenile Offenses -- Juvenile court will exercise broader powers regarding certain offenses under Special Session HB 31, which was signed into law as Act 9 on March 31, 1995.

The bill expands the jurisdiction of juvenile court to include any offense arising from the same episode as any misdemeanor or felony. Now one court rather than two will decide the issue.

Prior law provided that juveniles charged with delinquent acts and summary offenses arising out of the same episode were under the jurisdiction of district justices for the summary offense, and court for the delinquent act.

*** Open Juvenile Courts -- The public will have more access to court hearings for juvenile offenders under legislation signed into law as Act 11 on April 4, 1995.

Special Session HB 10 was approved 34-14 in the Senate after being amended to open proceedings for certain juveniles 12 or older. An earlier version set the age at 14.

Under the measure, court proceedings may be made public for juveniles charged with a crime that would be considered a felony if committed by an adult. The proceedings may remain closed by agreement with the attorney for the Commonwealth. Also, the court retains its discretion to close a hearing to receive information regarding mental health, medical health or juvenile institutional documents.

Some Senate Democrats opposed publicizing hearings for 12-year-olds, saying youngsters are often given serious charges to scare them, only to be reduced upon disposition. This latitude to influence their behavior will be compromised under the new law, they said.

*** No Means No -- Legislation that provides for a lesser rape conviction when a victim is not physically threatened cleared the Senate and House unanimously and was signed into law as Act 10 on March 31, 1995.

Special Session SB 2 adds the offense of sexual assault to the commonwealth's rape statute to cover instances when nonviolent sex occurs despite a victim's protests.

The legislation is a response to a 1994 Supreme Court ruling that said a victim must prove force or the threat of force for a conviction under the existing rape statute. It retains rape as a first degree felony when force or the threat of force is used. It adds sexual assault, a second degree felony, in cases when the victim unwillingly succumbed without the threat of force.

The bill also expands the definition of rape to include compulsion by use of physical, intellectual, moral, emotional or psychological force.

It also raises the penalty for hiring a prostitute from a summary offense to a third degree misdemeanor. Upon conviction, the court is to have the offender's name published in the local newspaper.

*** Instruments of Crime -- In response to a court decision that ruled a baseball bat was not an instrument of crime, the Senate unanimously passed legislation that expands the definition of an illegal weapon.

Senate Bill 729 was signed into law as Act 27 on July 7, 1995. Under the bill, something is considered an instrument of crime if it is used with the intention of committing a crime. Possession of an instrument of crime is a first degree misdemeanor.

The bill also expands aggravated assault to include injury against people such as prison guards and others who put themselves in danger while serving the public good.

The bill also makes it an offense to harass, annoy or injure a guide dog. Killing or torturing any dog or cat would be a misdemeanor of the second degree.

*** Open Juvenile Records -- Juvenile records would be less restricted under legislation signed into law as Act 13 on May 12, 1995.

Special Session HB 19 will allow access to juvenile records for subsequent juvenile criminal or civil proceedings involving the same person in the following situations: for the purpose of a presentence investigation and report if the child was adjudicated delinquent; in a civil matter where reputation or character is an issue; or in a criminal proceeding, if the child was judged delinquent for an offense for which evidence would be admissible in court if committed by an adult.

Courts will retain jurisdiction to assure full compliance with any restitution order until the child becomes 21. At age 21, if full restitution to a victim is still not satisfied, the cour