FOR EDITORIAL BACKGROUND

Gov. Tom Ridge and his Republican colleagues charted a safe and cautious path through the 1997-98 legislative session, avoiding difficult issues that could have hurt the governor’s re-election campaign and his party’s effort to retain control of the General Assembly.

It was therefore no surprise that the end of the session was notable primarily for what did not happen.  The General Assembly did not approve more than $350 million for new sports stadiums in Philadelphia and Pittsburgh, despite a last minute lobbying effort by Ridge, who had promised state funding during his campaign (see SB 672, Budget and Finance). The Republican controlled legislature also failed to act on measures that would have reduced class sizes in public elementary schools, created a statewide building code, improved state oversight of nursing homes and reformed Pennsylvania’s system of financing political campaigns.

Even when the legislature acted, the results were mixed.  A bill that repealed Pennsylvania’s motorcycle helmet law (see SB 279, Transportation) was vetoed by Ridge, who objected to the measure’s repeal of eye protection requirements.  He said he would sign a bill that repealed only the helmet requirement.  Ridge also vetoed an apparently routine “housekeeping” bill (see HB 907, Local Government), amid claims that the bill would have allowed state funding for stadiums in Pittsburgh, but not for those in Philadelphia.  The bill had been unanimously approved by both chambers during a last-minute flood of legislation.

Yet another Ridge veto killed a measure (see HB 2261, State Government) that would have required the state Department of Public Welfare to hold a public hearing within 30 days of announcing the closure of a mental health or mental retardation facility.  A public hearing would have also been required before the patient-to-staff ratio could be reduced by more than 10 percent.

There were some legislative accomplishments during the final months of the 1997-98 session.  Perhaps the most significant was the approval of legislation that requires health insurance companies to cover the cost of diabetic supplies and self management training.  The bill’s passage ended a lengthy battle by Senate Democrats to give Pennsylvania’s 1.1 million diabetics the tools they need to manage their illness.

House Bill 656 (see Banking and Insurance) is expected to save lives and reduce health care costs.  The measure requires health insurers to cover the cost of “self‑help” training and diabetic supplies such as blood glucose monitors, test strips, syringes and insulin.  It was unanimously approved by the House of Representatives in 1997, but was held up in the Republican controlled Senate by Harrisburg’s powerful insurance lobby.

Another insurance-related measure addressed the issue of ‘mental health parity” under Pennsylvania’s health insurance plans.  House Bill 366 (see Banking and Insurance) requires health insurance companies to provide the same dollar-for-dollar coverage for serious mental illnesses that they provide for physical ailments.  It applies only to insured groups of 50 or more employees.

Ironically, a version of House Bill 366 approved by the Senate in October would have helped Harrisburg-based AMP Inc. fight off a takeover attempt.  Similar legislation was also approved by the House, but the conflicting bills were never reconciled, and AMP eventually agreed to a takeover bid by a third company.

In October, the General Assembly approved legislation that toughens Pennsylvania’s lobbying disclosure law. Senate Bill 254 (see State Government) requires lobbyists to report a quarterly estimate of the amount of money they spend on various activities involving government officials.  Lobbyists will have to report the names of legislators, public officials or staffers who accept gifts valued at $250 or more per year and meals or lodging totaling $650 per year. 

 

January 1999

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                                                    53-54

Agriculture and Rural Affairs                                    42-44

Banking and Insurance                                              25-29

Budget and Finance                                                 1-8

Community and Economic Development                     56-57

Communications and High Technology                       55-56

Consumer Protection and Professional Licensure         39-41

Education                                                                  8-10   

Environmental Resources and Energy                         37-38

Game and Fisheries                                                    54

Judiciary                                                                   10-25

Labor and Industry                                                    41-42

Law and Justice                                                         48-49

Local Government                                                      32-37

Military and Veterans Affairs                                        54-55

Public Health and Welfare                                            52-53

State Government                                                       44-48

Transportation                                                            49-52

Urban Affairs and Housing                                           29-32

Legislation is coded as follows:

*              Senate passage

**           Senate and House passage

***         Became law

V             Vetoed by governor

Budget & Finance

*** 1998-99 General Fund Budget -- Pennsylvania’s 1998-99 budget was approved on April 21, 1998.  The $17.9 billion spending plan grew by 4.9 percent over the previous year.  It spends about $200 million more than Gov. Tom Ridge had proposed in February.

Republicans made much of the budget’s early passage, but Democrats noted that the quick approval was largely symbolic since the fiscal year doesn’t end until June 30.  They said passing the budget in April once again let Ridge hoard a significant portion of the state’s growing budget surplus, which reached $673 million by June 30.  The budget legislation (HB 2281) places an additional $150 million into the state’s Rainy Day Fund. Approximately $52 million -- 15 percent of the budget surplus -- will also be automatically transferred to the fund.

Many of the changes to the governor’s budget proposal responded to criticism by Senate  Democrats.  Special education funding increased by more than $24 million over Ridge’s request, bringing the total increase to nearly $46 million.  The governor’s plan to charge Supplemental Security Income recipients an extra $2.60 each month to process their benefit checks was eliminated.  The SSI fee increase had been harshly criticized by Democratic senators.

The budget includes $1.4 million in new funding for the state Health Department to hire additional personnel to oversee Pennsylvania’s nursing homes.  A recent Senate Democratic Policy Committee hearing found serious problems in the way the Health Department investigates complaints about nursing home care.

The budget contains $15 million in additional state funding for the Children’s Health Insurance Program (CHIP), a Democratic initiative that has received national recognition.  The increase will let Pennsylvania draw down $80 million in federal matching funds.  Democrats had sought a larger increase that would have qualified Pennsylvania for up to $120 million in federal funds.

All Senate Democrats voted in favor of the budget legislation.  House approval came on a vote of 178-20.

Funding for basic education increased by nearly $121 million.  The budget includes moderate increases for higher education. Funding for the State System of Higher Education increased by 3.5 percent; state-related institutions (Penn State, Pitt, Temple and Lincoln)  received 3.25 percent increases. The Pennsylvania Higher Education Assistance Agency got an additional $17.5 million for its Grants to Students Program.

Prison expenditures again received some of the budget’s largest increases. Spending on adult corrections rose by 6 percent, to $1.028 billion, during the 1998-99 fiscal year.

 

*** Tax Cuts -- Legislation that reduces or eliminates several business taxes, gives tax relief to some homeowners and expands the poverty exemption to the state income tax was signed into law on as Act 45 on April 23, 1998.

House Bill 1766 reduces the Capital Stock and Franchise Tax from 12.75 to 11.99 mills, extends the Corporate Net Income Tax Credit for net operating losses from three years to 10 and eliminates the sales tax on items sold from vending machines.  It eliminates the state tax on capital gains from the sale of a principal residence.

The poverty exemption was expanded by increasing the base amount for individuals from $6,300 to $6,500.  The additional dependent allowance was increased to $6,000 -- a $2,000 increase.

*** COLA for Retired Teachers, State Employees  -- Retired public school employees and state employees will receive a cost of living increase under legislation signed into law as Act 88 on June 18, 1998.

Senate Bill 1269  provides approximately 180,000 retirees with an increase in their monthly annuity payments ranging from 1.86 percent to 25 percent, depending upon their original retirement date.  The increase is effective beginning July 1, 1998.

Dates of retirement and percentage of increase are:

 

7/1/96-6/30/97                                       1.86%

 7/1/95-6/30/96                                       3.59%

7/1/94-6/30/95                                       4.95%

7/1/93-6/30/94                                       6.42%

7/1/92-6/30/93                                       7.97%

7/1/79-6/30/92                                       10%

7/1/69-6/30/79                                       20%

On or prior to 6/30/69                           25%

 

*** State Workers - Public School Employees Early Retirement -- State workers and public school employees could retire with full benefits after 30 years of service under legislation signed into law as Act 41 on April 2, 1998.

House Bill 162 gives public school employees a “window” of opportunity for early retirement during the period from the enactment of the bill through July 10, 1998.  The window is open again from April 1 to June 30, 1999.

State workers can retire from July 1, 1998 through June 30, 1999.  Both groups would be entitled to receive full retirement benefits.

 

*** 1997-98 General Fund Budget -- Pennsylvania’s 1997-98 budget was signed into law as Act 4A on May 6, 1997.  The spending plan (HB 847) totals $17.154 billion and contains no tax increases. It was approved in the Senate by a 45-5 margin; the House vote was 139-61.

Republicans made much of the budget’s early approval, but Democrats contended that the majority’s haste was an attempt to distract attention from the state’s burgeoning budget surplus. The surplus reached nearly $576 million by the time the fiscal year ended on June 30.

The budget contains approximately $612 million in new spending, a 3.7 percent increase over the prior year.  Public schools, which were level funded in last year’s budget, will receive an additional $90 million in basic education subsidies. All districts are guaranteed at least a 1 percent increase; some will get as much as 5 percent.  Schools will also get a $22.6 million increase in special education funding.

 Higher education funding also increased, with the State System of Higher Education receiving an overall 4 percent increase over the prior year, 2 percent more than Ridge had requested.  State-related universities will each get a 3 percent increase in funding, 1 percent more than the governor proposed.  The Pennsylvania Higher Education Assistance Agency will receive a 7 percent increase for its Grants to Students Program.

State Treasurer Barbara Hafer and Attorney General Mike Fisher, both Republicans, saw their budgets increase by 12 percent and 6 percent, respectively.  Auditor General Robert Casey, a Democrat, received only a 3 percent increase.

Tax cuts in the budget were valued at $167 million by the administration; Democratic estimates were closer to $200 million.  The tax reductions were contained in separate legislation, House Bill 134, which was approved unanimously in both chambers and signed into law as Act 7 on May 7, 1997. 

The largest single tax reduction will eliminate the sales tax on computer services.  One Democratic legislator had been trying to eliminate the tax for three years, saying it placed Pennsylvania at a competitive disadvantage in the effort to attract high-tech businesses.  The Senate Democratic Appropriations Committee estimates the value of the tax cut at nearly $90 million.

Another Democratic initiative in House Bill 134 is the dedication of an additional penny of the state’s cigarette tax to fund the Children’s Health Insurance Program.  CHIP, which provides health insurance for children of working parents, will now receive 3 cents of Pennsylvania’s 31-cent-per-pack tax on cigarettes.  The additional money, about $10.8 million, will help reduce waiting lists for the highly successful program.

The only significant non-business tax cut will expand the personal income tax forgiveness exemption for low-income Pennsylvanians.  The expansion is expected to cost approximately $25 million and affect about 170,000 taxpayers.

Other tax changes, and their estimated cost, include allowing more businesses to file as Subchapter S corporations ($17 million); income tax exemptions for “cafeteria” benefit plans ($10 million); an increase in the capital stock and franchise tax exemption ($10 million); a sales tax exemption for equipment purchased by retail bakeries ($6 million); a research and development tax credit ($10 million); a sales tax exemption for candy and gum sold in restaurants ($1 million); and a tax credit for non-profit groups involved in the Neighborhood Assistance Program ($1.25 million).

 

*** Capital Budget -- A $6 billion capital budget was signed into law as Act 47 on Oct. 10, 1997.

The centerpiece of Senate Bill 188 is a $182 million appropriation for an effort to reopen the Philadelphia Naval Shipyard.  The money is the state’s share of an approximately $700 million project now being negotiated by state and city officials with a Norwegian shipbuilder. Kvaerner ASA plans to build cargo ships using two drydocks at the southern end of the shipyard.  The reopened shipyard is expected to directly employ an estimated 1,000 people.  As many as 5,000 people could be employed in support and ancillary jobs.

The shipyard project is controversial, and there were unsuccessful efforts in both chambers to strip it from the capital budget bill.  Several Democrats pointed out that Gov. Tom Ridge had bungled an effort to reopen the shipyard in 1995, and that the current project would cost the state more money and generate fewer jobs.

Senate Bill 188 contains a laundry list of other projects throughout the state -- far more than can be financed with available revenue -- and one Democratic senator called the bill a “wish list.”  The measure was approved by the Senate on a 48-1 vote.  House approval came by a margin of 177-20.

 

*** More Money for Auditor General -- The state Office of the Auditor General will receive nearly $1.3 million in additional funding under legislation signed into law as Act 45A on Dec. 19, 1997.

House Bill 7 amends Pennsylvania’s 1997-98 budget.  In addition to the increased funding for the Auditor General, the bill appropriates nearly $88 million in federal funding for the Children’s Health Insurance Program and $546,000 to the Department of State for the Charitable Purposes Act.  It also removes a requirement for legislative approval of $15 million in funding for Community Development Banks.

 

*** Capital Budget -- The 1997-98 Capital Budget was contained in legislation signed into law as Act 21 of 1997.  House Bill 854 authorizes a maximum of $451 million in new debt for the 1997-98 fiscal year.

 

*** Treasury Department Investments -- The state Department of Treasury was given broader investment authority under legislation signed into law as Act 53 on May 7, 1998.

House Bill 439 defines a “prudent person” and provides standards for investing funds. It gives the department full power to invest and reinvest money from any state fund that is not authorized by law for a specific investment when the money has accumulated beyond the ordinary needs of the fund.

 

*** Police Officers Early Retirement -- Police officers were given an “early-out” option for retirement under legislation signed into law as Act 24 on February 18, 1998.

House Bill 595 provides reduced retirement benefits to officers with 20 or more years of service who choose to terminate employment prior to the completion of superannuation retirement age and service requirements.  Officers will be required to file a written application for early retirement benefits with the governing body of the municipality or regional police department.

 

*** Funding Municipal Pension Plans  -- Legislation signed into law as Act 82 on June 18, 1998,  corrects a problem in the allocation formula for Supplemental State Assistance (SSA) provided to financially distressed municipal public employee pension systems.

Senate Bill 284 establishes an allocation formula based on what the municipal contribution to a pension trust fund should have been, rather than on what the contribution actually was.  By providing a "rolling" amortization, municipalities will be making the maximum amortization contribution required in any given year, and therefore not receive more SSA than they should as a result of under funding their retirement system.

The bill also gives Pittsburgh an additional 13 years to repay its unfunded pension liability and lets Philadelphia sell pension bonds to support the unfunded actuarial accrued liabilities of its retirement systems.

 

* Stadium Funding -- Legislation that would have funded four new stadiums in Pittsburgh and Philadelphia died when Governor Tom Ridge and Republican leaders could not muster enough votes for stadium-related legislation in the House of Representatives.

The Senate did its part by approving legislation (SB 672) that would have increased the debt ceiling for redevelopment capital assistance projects to $1 billion.  The increase would have let the state borrow about $500 million, with most of the money going to help pay for new stadiums for the state’s major league football and baseball teams.

Ridge has promised to pay one-third of the cost of the new stadiums at a total cost to the state of between $300 and $325 million.  The rest of the money from the increased capital borrowing would have been used for a variety of unspecified projects throughout the state.

Senate Bill 672 was approved, 29-19, following extensive debate, but was never considered in the House.  According to news reports, the governor managed to convince less than 45 of his House Republican colleagues to support the legislation.

Supporters of the measure in the Senate said it would not require a tax increase and would spur economic development in Pennsylvania’s two largest cities and in other communities throughout the state.  They noted that the state’s share of the stadium funding would be relatively small and said state government should act to ensure that major league sports franchises remain in Pittsburgh and Philadelphia.

Opponents called the bill corporate welfare, and pointed out that the people of southwestern Pennsylvania had overwhelmingly rejected a referendum that would have spent local tax dollars to fund new stadiums.  They also objected to approving $500 million in new borrowing without a clear idea of how the money would be spent. 

Although the vote to approve Senate Bill 672 crossed party lines, Senate Republicans rejected a Democratic effort to amend the bill to protect the state’s stadium investments. The amendment would have required that the cities own the stadiums, that the state and city receive 5 percent of the ticket revenue and that contracts between the cities and professional sports organizations last for at least 25 years.

 

*** Redevelopment Assistance Capital Projects  --  Act 46, signed on Oct. 6, 1997, increases the $700 million cap on redevelopment assistance capital projects undertaken by the Commonwealth.

The new law increases the maximum amount of state assistance to $1 billion and lets second class-A through eighth class counties engage in projects with a total project cost of $3 million or more.  Prior law required that redevelopment projects cost a minimum of $5 million.  That requirement will still apply to first and second class counties.

 

*** Municipal Pension Plan Funding Standard and Recovery Act --  Legislation (HB 21) changing the contribution rate procedure for municipal pension funds that are at least 70 percent funded was signed into law as Act 61 on Dec. 19, 1997.   The new law changes the method for calculating the amortization contribution component of the actuarial funding requirement for municipal pension plans.  It also provides for a 10-year amortization period to help level a municipality's pension fund contribution over a longer period of time, thus eliminating wide fluctuations in pension contributions by municipalities whose pensions are relatively well funded.

 

*** Purely Public Charity -- Legislation (HB 55) that strictly defines institutions of "purely public charity" for tax exempt status was signed into law Act 55 on Nov. 26, 1997.

The new law requires an organization to meet all criteria set forth in a 1995 Pennsylvania Supreme Court case that defines an institution of purely public charity as one which:

-- advances a charitable purpose;

-- operates entirely free from private profit motive;

-- donates or renders gratuitously a substantial portion of its service;

-- benefits a substantial and indefinite class of persons who are legitimate subjects of charity; and

-- relieves government of some of its burden.

The law exempts state-related universities by designating their buildings as "public property," unless the buildings are leased to for-profit enterprises. The legislation also prohibits institutions of purely public charity from using their tax-exempt status to unfairly compete with small businesses in surrounding areas.

 

*** New Home Construction Local Tax Abatement Act -- In an effort to stimulate new home construction,  legislation to extend the time frame in which a person can apply for a tax abatement was signed into law as Act 63 on Dec. 19, 1997. 

House Bill 836 extends the time period for applying for a property tax exemption from when the building permit is secured to when the home is actually occupied.

 

*** Pennsylvania Consolidated Statutes -- Legislation that protects the pensions of Penn State Hershey Medical Center employees during the center’s merger with Geisinger Health System was signed into law as Act 41 on June 25, 1997.

House Bill 1160 creates a new class of State Employee Retirement System membership for approximately 300 employees with 5 to 10 years of credited state service.  The vestees would  have the choice of withdrawing their accumulated deductions or becoming vested. 

The new law also extends the definition of enforcement officer to include waterways conservation officers and other commissioned law enforcement personnel employed by the Pennsylvania Fish and Boat Commission. 

 

*** Keystone Opportunity Zones -- Legislation that will allow the creation of Keystone Opportunity Zones in the state’s depressed rural and urban communities was signed into law as Act 92 on Oct. 9, 1998 .

House Bill 2328 permits local municipalities to designate as tax-free zones any geographic area that is deteriorated, abandoned or littered with unused properties.  State and local authorities could then issue exemptions, deductions, abatements or credits on personal income tax; corporate net income tax; capital stock and franchise tax; sales tax for services or tangible personal property (except motor vehicles) used for the zoned business; and all local taxes.

Under the measure, the state Department of Community and Economic Development (DCED) will administer the program and provide $250,000 implementation grants.  The one-time program may create up to 12 zones in the state for a period not exceeding 12 years. 

Any local municipality, county or combined group may apply for zone designation by submitting a resolution or ordinance forgoing local taxes with their application to DCED.  A business will be required to be operational in the zone a minimum of 183 days to qualify for any tax exemptions.

 

*** Early Retirement for Probation Officers -- Legislation that authorizes early retirement benefits for Allegheny County probation officers was signed into law as Act 89 on June 18, 1998.

Senate Bill 1296 will let probation officers age 55 or over with at least 20 years service retire with full pension benefits.  Allegheny County is the only county currently not providing early retirement benefits to its probation officers.

The bill also lets municipalities in second class counties with a minimum population of 50,000 and maximum population of 100,000 arbitrate the appointment of a tax collector if the governing body of the municipality and the school board cannot mutually agree on the same collector.

 

*** Allegheny County Tax Relief --   Allegheny County may expand its property tax relief program under legislation signed into law as Act 146 on Dec. 21, 1998.

Senate Bill 1461 lowers the eligible minimum age requirement for the program from 65 to 62 and raises the eligible annual income limit from $15,000 to $25,000.  The new law also requires school districts and municipalities to cut property taxes proportionately if there is more than a 5 percent revenue increase due to property reassessment. 

The law also allows second class and second class A counties to retain 5 percent of their Hotel Room Tax collections to offset expenses and to use any amount of the collections to repay bonds issued for the building, expansion or renovation of their convention centers.   

 

*** Retirement Fund Contributions -- Legislation that will bring the state into compliance with the federal Small Business Job Protection Act by amending Pennsylvania’s law governing retirement fund contributions by state or municipal employees was signed into law as Act 162 on Dec. 21, 1998.

House Bill 1628 requires employee contributions to be held in trust by the employer; protects employee contributions if the government employer files for bankruptcy; allows for changes to election amounts or investment choices on a periodic basis instead of quarterly; permits a “cashout” option for accounts valued at less than $3,500; and eliminates an option that lets participants in deferred compensation programs exclude investments in stock corporations that do business with the Republic of South Africa and Namibia.

 

* Local Tax Reform  --  Early in the session Senate members voted 37-10 to approve a local tax reform plan.  Senate Bill 2 would allow counties, municipalities and school districts to eliminate "nuisance" taxes and reduce property taxes by imposing a sales tax and/or a personal income tax.  Changes to local tax systems would have to be approved by the voters in a local referendum.  The bill also contains provisions for "back-end" local referendums on tax increases.

Further, counties could impose a 1 percent sales tax that would be shared with municipalities and school districts.  The counties would get 50 percent of the sales tax collections and municipalities and school districts each would receive 25 percent.

The maximum earned income or personal income taxes under the measure would be .5 percent for counties, 1 percent for municipalities and 2 percent for school districts.  Money raised from the new sales and income taxes would have to be used first to replace revenue lost from eliminating the nuisance taxes.  Any remaining revenue must be used to reduce property taxes. 

The General Assembly later approved tax legislation that affects only school districts (see SB 669, Local Government).  Senate Bill 2 remains in the House Finance Committee.

 

* Amusement Tax Exemptions  --  In an effort to bring a portion of Pennsylvania's local tax provisions in line with the federal government, the Senate unanimously approved legislation (SB 489) that would exempt certain ski and auto racing facilities from local amusement taxes.  The bill would also exclude certain farm operations and activities under the definition of "net profits,"  from the state's Local Tax Enabling Act.

Local taxing authorities would be prohibited from collecting an amusement tax from an auto racing facility with a seating capacity of 25,000 and a racing area of one mile.  Also, amusement taxes would not be levied against the admission receipts of ski facilities.  Farmers would benefit by not having to pay tax on interest from accounts used for farming business or any gain from the sale of farm machinery, livestock or other capital assets of the farm.

The bill was on the House calendar when the session ended.

 

Education

*** Charter Schools -- Charter schools were authorized in Pennsylvania under legislation signed into law as Act 22 on June 19, 1997.

Senate Bill 123 was approved in the Senate by a 30-18 vote, with most Democrats voting in opposition out of concern about specific provisions in the bill.

The bill allows charter schools to be established by parents, teachers, community groups and non-profit organizations.  The state will have less formal regulation or involvement in charter school operations and each charter school will be permitted to develop its own curriculum.  Up to 25 percent of the teachers in a charter school can be uncertified, but they will still have to meet some minimum requirements.

Local school boards will have sole authority to approve or reject applications for charter schools over the next two years.  After that time, a seven-member appeals board, nominated by the governor and approved by the Senate, will hear appeals from organizations rejected for a charter.

Students attending charter schools will not pay tuition.  Funding for the schools will come from local school districts, which will pay an amount equal to their annual per pupil expenditure for each student that attends a charter school.  To offset the start-up costs for student transfers, school districts will receive about $8.5 million over the next two years.  The state also expects to receive an additional $3 to $4 million in federal funding for the schools.

 

*** School Uniform Dress Code, Philadelphia School Takeover -- Pennsylvania school boards may establish uniform dress codes under legislation signed into law as Act 46 on April 27, 1998.

Senate Bill 494 gives school boards the authority to impose limitations on what students may wear to school or require them to wear uniforms. The bill includes vocational-technical and special education schools and may be applied district-wide or in individual buildings.

The bill also allows the state to seize control of  Philadelphia’s Public School System.  It establishes new criteria for the state Education Secretary to declare a school district distressed.  In the event of a takeover, the superintendent of schools would be eliminated and the school board would be replaced with a panel of gubernatorial appointees.   The takeover language applies only to Philadelphia.

 

*** Redbank Valley Flood Help -- Legislation (HB 26) signed into law as Act 1 on Feb. 12, 1997, allows the Secretary of Education to authorize Redbank Valley High School to compute instructional time on an hourly basis of 990 hours or on a daily basis, including Saturdays, as an alternative to achieving 180 days of instruction.  The district was affected by flash floods in July 1996.  Salaries for teachers and other employees will not be affected.

 

*** School Funding -- Legislation to establish the mechanism for funding schools and special programs under the 1997-98 education budget was signed into law by the governor as Act 30 on June 25, 1997.   House Bill 8 provides funding for basic education, special education, community colleges and payments to intermediate units.  It also makes a variety of changes to the state's School Code.

The new law allows "for profit" entities to confer baccalaureate degrees.  The school code revisions will affect background checks of prospective employees; educating juveniles incarcerated in adult facilities; education of disruptive students; Commonwealth and Capital Subsidy payments to intermediate units; weapons possession; and assignment of education programs during expulsion periods.

 

*** Sale of Unused Land and Buildings --  Legislation (SB 577) allowing school boards to sell unused land or buildings to tax exempt charitable organizations -- and allow the organizations to pay for the property over a period in excess of five years -- was signed into law as Act 59 on Dec. 19, 1997.

 

*** Public School Code Amendments --                 The definition of school year has been changed to allow for a year-round education program extending to Aug. 15 of each year, as long as the number of days in session does not exceed 180, by legislation signed into law on Dec. 21, 1998 as Act 154.

House Bill 601 also provides for the withholding of state payments to school districts that fail to pay debt service or make sinking fund deposits; provides certain payments for the school district of Philadelphia; authorizes levying taxes in school districts that lie in more than one county or municipality; gives additional powers to the Chancellor of the State System of Higher Education; and addresses pupil transportation and community education councils.

 

*** Tuition Waivers --  Legislation to establish a tuition waiver program for the children of police officers, firefighters, members of the National Guard and employees of correction facilities who are killed while performing their official duties was signed into law as Act 129 on Dec. 16, 1998.

 Under House Bill 2024, community colleges, state-owned institutions or state-related schools will be required to waive tuition, room and board charges for people under age 25 who meet the requirements necessary for admission.  Students can study to receive a two or four-year degree, and may attend for a maximum of five years.  The program is available only after the student has exhausted all other scholarships and grants.

*** Driver Training Vehicles --  Legislation to extend the life of vehicles used by private driving schools was signed into law on Nov. 24, 1998 as Act 107.

Current law requires training vehicles be removed from student use after five years or up to 50,000 miles.  Senate Bill 263 allows such vehicles to remain in use for eight years or 80,000 miles. 

 

Judiciary

*** Additional Circumstances for the Death Penalty -- The Senate approved (49-1) legislation that adds to the list of 17 aggravating circumstances that allow prosecutors to seek the death penalty after a first degree murder conviction.  On April 25, 1997, the governor signed the bill into law as Act 6.

Under House Bill 12, an aggravating circumstance occurs when a defendant, at the time of the killing, was subject to a protection from abuse order intended to protect the victim.

 

*** Facsimile Bombs -- People who use fake bombs to threaten or intimidate will be guilty of a second-degree misdemeanor under legislation unanimously approved by the Senate and signed by the governor on October 31, 1997 as Act 50.

House Bill 41 would apply to people who make, sell, buy or transport a device that looks like a bomb (but doesn't have the capability to cause an explosion or fire) with the intent to intimidate or threaten someone.  Using such a device with the intent of causing alarm or a reaction by a law enforcement organization or an emergency organization would be the same offense.

 

*** International Transfer of Convicts -- The governor or his designees may transfer a convict to another country under the terms of an international treaty under legislation signed into law as Act 32 on June 25, 1997.  House Bill 86 also establishes the Judicial Computer System Augmentation Account and provides for the duty of a judgment creditor.

This bill allows a judgment debtor who has paid a judgment creditor to request a written notice that compensation has been paid.  The time period for the judgment creditor to give this notice was extended from 30 to 90 days.  The penalty for not providing the requested notice was changed from 1 percent per day to 1 percent for each month that a creditor does not comply.  The cap was changed from not more than 50 percent of the judgment to not more than $2,500.

 

*** Extradition Warrants and Pre-signed Waivers -- The Senate unanimously approved and the governor signed legislation that joins Pennsylvania with 33 other states in permitting a pre-signed waiver to substitute for an extradition warrant.  The bill became Act 33 on June 25, 1997.

Under House Bill 87, a person must sign a waiver of his right to contest extradition as part of his release by another state.  Pennsylvania law enforcement agents are then required to surrender that person, who is accused of violating a parole, probation, or bail condition set by the other state, at the demand of an agent of the other state.  An exception would be made if the detainee in Pennsylvania still has criminal charges pending.

The legislation also amends the Post Conviction Relief Act.

 

*** Conveyance Validation -- Acknowledgments for land conveyed between two parties before 1996 which contain technical errors are valid under House Bill 141.

The new law (Act 56) was signed on November 26, 1997.

 

*** Crimes Code Offenses -- On December 21, 1998, the governor signed into law Act 149 which provides for additional crimes and offenses.

House Bill 148 provides for the crimes of intentionally throwing, shooting, dropping or otherwise propelling an object onto or toward a roadway; theft from a motor vehicle; access card fraud (including but not limited to credit and debit cards, account numbers and personal identification numbers); and producing or possessing unlawful device-making equipment.

The legislation also allows municipalities to put requirements such as acquiring a license or passing an examination on someone who installs or inspects alarm devices.  Under the new law, municipalities have the power to deny or revoke local permits, levy taxes or fees or require the purchase of a license.

Additionally, the bill also exempts people applying as a volunteer for Big Brothers or Big Sisters of America from paying a fee for their criminal history record information.

 

*** Sexual Offense Records and Gun Control -- The original intent of legislation that preserves the records of sex offenders took a back seat to Senate amendments revising Pennsylvania's 1995 gun-control law.  The amended bill was approved by the Senate on a vote of 45-5 and signed by the governor as Act 5 on April 22, 1997.

House Bill 149 prohibits a court from ordering the expungement of an offense record for a defendant who completes Accelerated Rehabilitative Disposition (ARD) on a charge of rape, statutory sexual assault, aggravated indecent assault, indecent assault, or relating to pornography, when the victim of the crime was under 18 years of age.  The intent of the legislation is to preserve the records as a tool for tracking sex offenders.

Senate amendments focused on two areas of the 1995 gun-control law.  The most controversial change suspends background checks on rifle and shotgun purchasers until July 1998, or until an "instant check" system becomes operational, whichever comes first.  Under the existing law, checks of criminal, mental health and juvenile records for long gun purchasers are done after the fact.  State police officials have said the after-the-fact checks make it difficult to retrieve weapons already sold to ineligible purchasers.

The Senate amendments also change the penalties for carrying a concealed weapon without a permit.  People who otherwise would be eligible to obtain a permit to carry a concealed weapon will be charged with a misdemeanor offense instead of felony.  Felony charges will still apply to people possessing weapons who would not qualify for a valid permit.

Also, an exemption applies if an offense occurs within six months after expiration of a valid weapons permit if the person would still be eligible for renewal.

Gun dealers are required to retain applications and sales records for a period of 20 years. The records must remain confidential under penalty of civil damages.

 

*** "Look Alike Drugs" -- The Senate unanimously approved legislation (HB 152) that would prohibit the sale of "look alike drugs" to minors.  An identical bill (SB 175) was earlier reported out of the Senate Judiciary Committee.

House Bill 152 was prompted by the sale of "look-alike" or "act-alike" drugs containing ephedrine that are marketed as stimulants or weight-loss aids.  The drugs look and act like stimulants containing amphetamines.  Studies have indicated these often become "starter drugs" for children, leading to more serious addictions.

A Senate amendment to House Bill 152 adds school buses and school bus stops to the existing “drug free zones” around schools.  Drug dealers arrested within the zones face additional penalties.  The amendment imposes tougher penalties for crimes that occur on a school bus or within 500 feet of a school bus stop.

The governor signed the legislation into law as Act 8 on May 9, 1997.

 

*** Prison Uniforms -- Prison inmates are prohibited from wearing civilian clothes under legislation signed by the governor on December 3, 1998.  Act 120 (HB 207) requires inmates at adult-level prisons or correctional facilities to wear identifiable prison uniforms while incarcerated.  The ban on civilian clothes does not apply to work release situations or juvenile facilities.

 

*** Drug Test Evasion -- A person caught attempting to sell or use drug-free urine to pass a urinalysis could spend up to a year in jail and be fined $2,500 under House Bill 360.  Anyone who sells, gives, or uses drug-free urine with knowledge or intent can be charged with a third-degree misdemeanor.

The bill, which applies to prison inmates and parolees as well as job applicants in the private or public sector was signed into law on November 26, 1997 as Act 52.

 

*** Crime Restitution -- The governor approved legislation that makes a variety of changes to the Crimes Code.  House Bill 413:

– requires people convicted of a crime resulting in injury or loss of property to pay restitution;

– establishes tougher penalties for arson involving cars, airplanes, motorboats or other motor-propelled vehicles;

– makes dangerous burning a summary offense;

– prohibits obscene materials in prison; and,

– prohibits the transportation of a minor in a truck bed except under specific circumstances.

The legislation was signed into law on December 3, 1998 as Act 121.

 

*** Internet Protection for Minors -- People who use the Internet to contact a child in an attempt to commit a sexual or abusive offense will commit a crime under Act 62 of 1997.

House Bill 474 makes contact with a minor illegal if the contact is made with the intent to commit a sexual or abusive offense against the child.  The bill outlaws all such contact, but is specifically aimed at contact through the Internet.

The bill also defines “Freon” for the section of the Crimes Code dealing with the sale or illegal use of solvents.

 

*** Institutional Sexual Assault -- An employee or agent of the Department of Corrections or County Correctional Authority who has sex with or indecent contact with an inmate commits a first-degree misdemeanor under legislation (HB 689) signed into law as Act 157 by the governor on December 21, 1998.  Also, people obstructing or interfering with emergency service personnel who are providing emergency services to an injured victim or performing rescue or firefighting activities are guilty of a third-degree misdemeanor.  The bill prohibits the offering of live animals (except fish) as prizes.

The legislation makes it a third-degree felony if a person uses a communication facility to commit a crime under the Controlled Substance, Drug, Device and Cosmetic Act.  Communication facility is defined in the bill as a public or private instrument used to transmit signals, writing, images, sound and data, including but not limited to telephone, radio and mail.

 

*** Health Care Fees -- Fees charged by health care facilities for copying medical records and clerical work are capped under a new law (Act 26) signed by the governor on February 18, 1998.  House Bill 1048 defines the term “insurer” and provides a flat fee for actions pertaining to the Social Security Act or other federal or state needs-based benefit programs.

The bill also exempts from attachment during bankruptcy proceedings certain contributions in a debtor's retirement fund.

 

*** Sheriffs' Training -- A deputy sheriff needs at least 160 hours of training under Act 10, signed into law on January 29, 1998. 

House Bill 1065 permits the Sheriffs' Education and Training Board to determine the content and hours of training.  Deputy sheriffs are also be required to obtain a minimum of 20 hours of continuing education every two years.

The bill also establishes a surcharge assessment schedule and adds a county commissioner to the board, bringing the total membership to 10.

 

*** Date Rape -- People who administer so-called “date rape drugs” in an effort to commit sexual abuse are guilty of a crime under legislation unanimously approved by the Senate.

House Bill 1125 makes it a crime to intoxicate or drug someone without their knowledge and with the intent to commit a sexual offense.

 

*** Invasion of Privacy -- People who invade the privacy of another person for sexual gratification commit a crime under Act 38.

House Bill 1189 makes it a crime to knowingly view, film or photograph a naked or partially naked person without his or her consent if the person is in a place where privacy could normally be expected.  A separate violation results each time a person is viewed and for each victim viewed.  A single violation results in a third-degree misdemeanor charge.  More than one violation results in a second-degree misdemeanor.

By creating an Invasion of Privacy crime, this bill closes a loophole in the current Crimes Code.      The legislation, signed into law by the governor on March 24, 1998, does not apply to law enforcement officials operating in an official capacity, such as conducting criminal investigations and viewing to maintain prison security.

 

*** Judicial Retaliation -- Anyone who retaliates against a prosecutor or judicial official by harming or attempting to harm them or their property for anything legally done in an official capacity commits a crime under Act 159.  House Bill 1272, signed into law by the governor December 21, 1998, also provides for aggravated assault against a board member or employee of a public, private or parochial school because of his or her employment relationship.

 

*** Deceased Remains -- On November 17, 1998, the governor signed Act 99 establishing an order (generally following the order of inheritance) for determining who has the right to dispose of a deceased person's remains.  In the case of estrangement from the person holding that right, an expressed contrary intent or incompetency in the person holding that right, a court would appoint another person to handle disposition.

House Bill 1304 was prompted by a circumstance resulting from a USAir plane crash near Pittsburgh.

 

*** Retail Theft -- A potential loophole in the state law against shoplifting was closed under legislation unanimously approved by the Senate and signed into law as Act 42 on June 25, 1997.

House Bill 1341 amends the definition of retail theft to include removing a security tag with the intent of stealing an item.

 

*** Domestic Relations -- Noncustodial parents will find it much more difficult to avoid paying child support under legislation signed into law as Act 58 on December 16, 1997.

House Bill 1412 brings Pennsylvania into compliance with tough new child support requirements that were part of the 1996 federal welfare reform law.  The bill also reinstates a $50 “pass-through” that allows welfare recipients to keep $50 each month in child support payments without losing welfare benefits.

Parents who fail to pay child support will lose their driver’s licenses and professional and occupational licenses under House Bill 1412.  The bill makes it easier to track people who owe child support by requiring employers to report all newly hired employees and by requiring that social security numbers be collected on applications for permits, driver’s licenses, marriage licenses, divorce decrees and death certificates.  It strengthens the ability of Domestic Relations Offices and the state Welfare Department to intercept or seize workers’ compensation and unemployment payments and other government benefits, attach and seize assets in financial institutions, seize retirement funds, impose liens on property, direct the levy or sale of property and intercept or seize judgments or settlements.  Domestic Relations Offices and the Welfare Department are given access to a variety of state and government records to help them track down people who owe child support.

House Bill 1412 also expands the definition of income, requires periodic reporting of child support arrearages to credit bureaus, eliminates the right to trial by jury in paternity cases, lets putative fathers initiate a paternity action and establishes a centralized State Disbursement Unit to collect and disburse child support payments.

The bill began as a measure that would give the State Police access to protection from abuse orders for criminal history checks under the Uniform Firearms Act.   The bill retains that language.

 

 

*** Trademarks -- Act 73 amends the Pennsylvania Trademark Act.  The bill (HB 1480) modernizes the trademark law by adding and clarifying definitions, generalizing the classes of goods and services covered by this law and amending the details of registering a trademark.  The bill was signed into law June 18, 1998.

 

*** Parole -- A new law (Act 66) amends the Pennsylvania Board of Probation and Parole Law, requiring the parole board to provide written notification to the probation department in the county where the sentencing order was imposed when a parolee is released.  House Bill 1756 also requires the board to provide the county probation department with the parolee's new address.

The governor signed the bill on June 11, 1998.

 

 *** Soliciting Minors to Sell Drugs -- An adult drug dealer who solicits a minor to traffic drugs is guilty of a second-degree felony under Act 40.

The bill (HB 1757) aims at drug dealers who use minors to transport controlled substances.  This offense becomes a first-degree felony if the dealer knowingly causes the crime to occur within a drug-free school zone.

The bill was signed by the governor on March 24, 1998.

 

*** Repealing Obsolete Laws -- Act 12 repeals portions of a now-obsolete 1849 law that apply to vendors of mineral water and a Washington coal company.  The bill (HB 1763) was signed into law January 29, 1998.

Act 42 repeals an obsolete Act No. 227 of 1851 relating to the construction of county jails.  The bill (HB 1828) was signed by the governor on April 3, 1998.

Act 61 repeals an obsolete act of 1901 regarding constables’ fees “for executing an order of relief of a pauper.”  House Bill 2098 was signed by the governor on May 15, 1998.

 

*** Obscene Material Prohibited in Prison -- Anyone who knowingly takes obscene material into a prison commits a crime under Act 76, signed by the governor on June 18, 1998.  The legislation (HB 1778) amends the obscenity section of the Crimes Code to prohibit the delivery and/or possession of obscene materials in a correctional facility.

The bill also permits school districts to collect restitution from someone who is convicted of terroristic threats or someone who causes the school’s building to be evacuated.

 

*** Civil Immunity -- In addition to making changes to the Judicial Code, legislation signed into law on December 15, 1998, provides civil immunity for the use of Automated External Defibrillator (AED) and provides for speedier placement of abused or neglected children in foster care or adoptive families.  Act 126 (HB 1897) allows Judges Pro Tempore to handle certain summary offense cases and increases the number of Common Pleas Judges in the City and County of Philadelphia and Lebanon County.

The legislation brought Pennsylvania into compliance with the federal Adoption and Safe Families Act by Jan. 1, 1999.  The law provides another alternative permanent family when family unity cannot be maintained without endangering the child.

 

The bill also provides “Good Samaritan” civil immunity in emergency situations for any person trained to use an AED.  The person is not be liable for civil damages.

 

*** Contracts Under Seal -- Act 77 extends the sunset date for the 20-year limitation on actions involving contracts under seal.  The legislation (HB 1979) was signed by the governor on June 18, 1998.

 

*** Child Protection -- Children and Youth Services employees can testify at preliminary hearings in child abuse cases under legislation unanimously approved by the Senate and signed into law on December 15, 1998, as Act 127.  House Bill 1992 amends the Child Protective Services Law to permit the release of confidential child abuse reports and testimony based on those reports before district justices in cases of alleged criminal child abuse.

The bill also grants civil and criminal immunity to people who issue licenses and permits for the Pennsylvania Game Commission or Fish and Boat Commission when they suspend or refuse to issue licenses for nonpayment of child support.

The legislation amends the Domestic Relations Code to improve reporting of suspected child abuse by further providing for examples of abuse.  Law enforcement officials are to be given greater access to information about cases of suspected child abuse.   The measure requires Pennsylvania employers to provide the state Department of Public Welfare with information regarding the employment, compensation and benefits of any employee, upon request.

In addition, the bill exempts children age 12 and younger from being fingerprinted for the purpose of a name change.

 

*** Obsolete Law -- Act 118 (HB 2225) repeals an obsolete act which allows for local juries to investigate the cause of suspicious fire.  The bill was signed by the governor on December 3, 1998.

 

*** Out-of-state Parolees -- A state can parole a convicted offender to another state only if the offender has a confirmed offer of viable employment or other means of support (excluding welfare) and the sending state approves the parolee’s residence under Act 171, signed into law on December 21, 1998.

House Bill 2258 amends the Pennsylvania Board of Probation and Parole Law, establishing stricter standards of acceptance for out-of-state parolees and probationers under the Interstate Compact.  Similar legislation, Senate Bill 1239, was unanimously approved by the Senate in March of this year.  The Senate legislation was the result of hearings investigating the Arthur Bomar case, in which an out-of-state parolee was convicted of killing a Philadelphia-area co-ed.

 

*** Special Advocates -- Court-appointed special advocates (CASA) can be appointed in juvenile matters where a child is dependent or alleged to be dependent under legislation signed by the governor on December 15, 1998 as Act 128.

House Bill 2664 allows the court to appoint or discharge a CASA at any time during the proceeding or investigation concerning dependency and gives a CASA immunity from civil liability for good faith actions.

*** Fetal Homicide -- Legislation allowing criminal homicide charges to be filed in the death of a fetus was signed into law as Act 44 on October 2, 1997.

Senate Bill 45 establishes guidelines under which the death or serious bodily injury of an unborn child could be prosecuted.   It allows a person accused of criminal homicide of an unborn child to be charged with first degree, second degree or third degree murder.  The death penalty could not be imposed in cases of first degree murder.  The bill also provides for voluntary manslaughter of an unborn child and aggravated assault of an unborn child.

Legal and illegal abortions are excluded from the provisions of Senate Bill 45, as well as medical procedures that are done in good faith or with the consent of the mother. The bill also amends the Crimes Code to further provide for evidence in harassment and stalking cases.

 

*** Appeal Process Changes -- People who appeal a driver's license suspension that was prompted by their refusal to take a DUI blood alcohol test will face a new appeal process under a new law (SB 97).

Act 63 requires such appeals to be heard in the judicial district in which the arrest was made instead of in the motorist's home district.

The governor signed the bill June 5, 1998.

 

*** Crimes Code Amended -- The governor signed into law legislation that expands school “drug-free zones” to include school buses and playgrounds, and includes drug sales to both adults and minors.  The legislation, which became Act 26 on June 25, 1997, was unanimously approved by the Senate.

Senate Bill 135 also increases the penalty for possession of a controlled substance by an inmate, amends the definition of "caretaker" to protect the mentally retarded who are care-dependent and narrows the definition of "trade secrets."

 

*** Additional Judgeships -- By a 43-3 vote, the Senate passed Senate Bill 178, a measure to create 31 new Pennsylvania judgeships.  The bill was signed into law as Act 2 on  February 14, 1997.

Similar efforts were stalled last session by differences between the House and Senate.  This time, however, the Senate concurred in House amendments which made additions and deletions to the list of new judgeships.

The final result provides one new judgeship this year for Northampton, Westmoreland, Greene, Somerset, Venango, Lehigh, Lycoming, Beaver, Franklin/Fulton, Centre, Adams, Lancaster and Chester counties.  Two new judgeships went to York, Delaware and Montgomery counties.

In 1999, Lancaster, Chester, Bedford, Dauphin, Luzerne, Monroe, Berks and Butler counties will each get one new position.

Also in 1999, three judges will be added to the Philadelphia Municipal Court and one new judge will be added to the Traffic Court of Philadelphia.

 

*** Executions -- An execution must be carried out within 60 days after a death warrant is signed or reissued under Act 80, signed by the governor June 18, 1998.