Senate Bill 768 (Orie) would amend the First Industries Program, found in Title 64 (Public Authorities and Quasi-Public Corporations) of the Pennsylvania Consolidated Statutes, to expand the definition of "commercial lending institution" to include a farm credit institution under the Farm Credit Act.  Further, a farm credit institution would not need to offer deposit services to qualify as a commercial lending institution under the First Industries Program. 

Other provisions in the legislation would: 

• Reduce the amount of private funds required to be invested in a First Industries Program project from $1,000,000 to $250,000;
• Provide that a loan guarantee not exceed 90 percent of the outstanding principal amount of the loan to assist with financing a project related to agriculture.  The amount of the guarantee, if any, would be established at the discretion of the First Industries Program's Board;
• Prohibit farm credit institutions from participating in other programs under Title 64;
• Provide that eligibility for a loan guarantee for a farm credit institution would sunset on June 30, 2011; and
• Require the Department of Community and Economic Development to supply an annual report to the General Assembly and post it on the Department's website.  Passed:  49-0.

Senate Bill 1180 (Wozniak) would designate the bridge known as the Walnut Street Bridge on Walnut Street in Johnstown, Cambria County as the Martin Luther King, Jr., Memorial Bridge.  Passed:  49-0. 

Senate Resolution 346 (Waugh) recognizes July 2008 as "Take a Swing Against Breast Cancer Month" in Pennsylvania and expresses support for this worthy campaign of the Pennsylvania Association of Community Bankers and the Pennsylvania Breast Cancer Coalition.  Adopted by Voice Vote. 

Senate Resolution 353 (Rhoades) congratulates the Pennsylvania State System of Higher Education on its 25^th anniversary and for 25 years of significant work in the Commonwealth.  Adopted by Voice Vote. 

Senate Resolution 354 (Dinniman) designates the week of September 7 through 13, 2008 as "Suicide Prevention Week" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 355 (Dinniman) proclaims the week of July 13 through 19, 2008 as "Probation, Parole and Community Supervision Week" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 356 (Waugh) congratulates the York County Economic Development Corporation for 50 years of community service.  Adopted by Voice Vote. 

Senate Resolution 357 (Pileggi) commemorates the 85^th anniversary of the Pennsylvania Sheriff's Association and its public service to the Commonwealth.  Adopted by Voice Vote. 

Senate Resolution 358 (Logan) recognizes September 2008 as "Hunger Action Month" in Pennsylvania.  Adopted by Voice Vote.

Senate Bill 4 (Rhoades) would amend the State Lottery Law to provide that current enrollees in the PACE and PACENET programs would remain eligible if the maximum income limits are exceeded solely due to a Social Security cost of living increase.  Passed:  50-0. 

Senate Bill 1063 (Earll) would amend the Local Tax Enabling Act to consolidate the collection of local earned income taxes at the county level.  A tax collection district would be established in each county, except in a county of the first or second class, for purposes of collecting income taxes.  The geographic boundary of the tax collection district would be coterminous with the county in which it is created.  A school district located in more than one county would be included in the tax collection district with the greatest share of the school district's population.  A municipality would be included in the tax collection district in which its school district is located.  Second class counties with a population of over 1 million containing a second class city (Allegheny) would be divided into four tax collection districts.

Each tax collection district would be governed by a tax collection committee composed of representatives of the municipalities in the district.  Representatives of the municipalities that levy an income tax would be voting delegates, while delegates representing municipalities that do not levy an income tax would be nonvoting.  Votes would be weighted among the governing bodies of the member political subdivisions based on population and income tax revenue collections.  The tax collection committee would not have the power to change the rate or subject of any tax.  The first meeting of the tax collection committee in each district would have to be on or before November 15, 2009.  Meetings of the tax collection committee would be conducted under the Open Meetings and Right to Know Laws.  No later than April 15, 2010, the delegates of each tax collection committee would be required to adopt bylaws to govern the committee.

By September 15, 2010, each tax collection committee would be required to appoint a tax officer to collect and administer the taxes in the tax collection district.  Two or more tax collection districts could appoint the same tax officer.  Further, if two or more tax collection districts form a joint tax collection committee, the joint tax collection committee would appoint a single tax officer.  A tax collection committee could not appoint a tax officer that has been convicted of a felony involving fraud, extortion or dishonesty; has engaged in conduct which significantly adversely reflects on the applicant's credibility, honesty or integrity; is unable to obtain the required bonds; has not satisfied the mandatory education requirements; or does not meet the qualifications and requirements established by the Department of Community and Economic Development (DCED).  The tax officer would receive reasonable compensation for services and expenses as determined by the tax collection committee.  Provisions would also be established for the removal and replacement of a tax officer.

The Department of Community and Economic Development would be required to conduct a study of existing local earned income tax collection methods and practices to identify characteristics that appear to promote the greatest likelihood of effectiveness, cost efficiency, and loss prevention.  The Department would then furnish each tax collection committee with a report of the findings and recommendations resulting from the study, including sample bylaws, regulations, forms, etc.  As part of the study, DCED would also investigate and report upon the feasibility of contracting on a statewide basis for the development and/or procurement of appropriate software systems that could be adopted and purchased by county tax collection districts or their tax officers through the Commonwealth's cooperative purchasing program.  Before 2017, the Legislative Budget and Finance Committee (LB&FC) would also conduct an audit and evaluation of the impact of the new system to determine the extent to which income tax revenue losses have been minimized or eliminated, whether consolidation and standardized withholding and remittance has simplified the system, and whether it has reduced the burden of withholding for employers.  Copies of the LB&FC audit findings would be filed with the chairs of the Senate and House Finance Committees, DCED, the Auditor General, and with each tax collection committee.

Among other provisions, the legislation would also establish a system for appeals, provide for mediation of taxation disputes, establish fines and penalties for violations of the act, strengthen reporting requirements and institute a comprehensive tax register.  The House amended the bill to permit Lancaster County to continue to operate under its current countywide collection system and to enable counties to begin their countywide systems before the mandated January 1, 2012 date.  Concurrence in House Amendments:  40-10.

Senate Bill 1372 (Fontana) would amend the Health Care Cost Containment Act to extend the sunset date of the Health Care Cost Containment Council from June 30, 2008 to June 30, 2013.  The legislation would also: 

• Require the meetings held by the Council's technical advisory group to be open to the public;
• Require that audit results of providers or health care insurers be provided to the audited provider and health care insurer on a timely basis, not exceeding 30 days beyond presentation of audit findings to the Council;
• Require the Council to adopt methodologies for risk-adjusting provider quality data;
• Prohibit the Council from requiring any data source to contract with any specific vendor for submission of any specific data elements to the Council;
• Require payor data to be released to individual providers for purposes of verification and validation prior to inclusion in a public report;
• Establish a 15-member Health Care Cost Containment Council Act Review Committee to study, review and recommend changes to the Health Care Cost Containment Act and submit a report to the General Assembly by April 30, 2009; and
• Require the Legislative Budget and Finance Committee to conduct a sunset evaluation of the performance of the Council by September 1, 2012.

In addition, Senate Bill 1372 would extend the Health Care Provider Retention Program originally established under the MCARE Act for two years.  Birthing centers would be eligible for the abatement.  Passed:  50-0.

Senate Bill 1397 (Erickson) would amend Section 1308 (Liability for Tuition and Enforcement of Payment) of the Public School Code to ensure that school districts pay tuition charges for resident students enrolled in rehabilitative institutions.  Under the proposed change, the Department of Education would be notified when a school district of residence fails to remit payment, after a second billing notification, to the district in which the institution is located.  The district would forward copies of the tuition bills and notification sent to the non-paying school district to the Department for payment.  Upon receipt, the Department would be required to pay the unpaid tuition obligations to the district in which the institution is located and withhold school subsidy payments due to the school district of residence.  Subsequent payments for the same students would be made by the Department in the same manner.  The school district of residence would have the right to appeal the Department of Education's decision, but this would not cause a delay in payment to the district in which the institution is located.  An additional provision would clarify that the school district of residence would be required to pay the entire cost of services provided to students.  Passed:  31-19. 

Senate Bill 1412 (Pippy) would amend the Keystone Opportunity Zone (KOZ), Keystone Opportunity Expansion Zone (KOEZ) and Keystone Opportunity Improvement Zone (KOIZ) Act to make a number of changes.  Among other modifications, the bill would provide for the extension of the tax exemptions, deductions, abatements or credits for certain unoccupied parcels in existing zones.  If a political subdivision applies by June 30, 2009, the Department of Community and Economic Development would be authorized to extend all tax exemptions, deductions, abatements or credits for any parcel that is unoccupied on the effective date of the amendment, as follows:   

• in a KOZ, KOEZ, or KOIZ for a period of seven years from the expiration date of the zone; or
• in a KOZ or KOEZ for a period of ten years from the date of occupancy, provided that the parcel is occupied on or before December 31, 2015.

The extensions of exemptions, deductions, abatements or credits authorized, except authorized exemptions for sales and use tax would take effect only upon occupancy.  The bill would further clarify that no person would be eligible to apply for any special tax consideration under this act or the Local Economic Revitalization Tax Assistance Act for a parcel in Philadelphia that is contiguous with a navigable waterway if the parcel is to be used for a licensed gaming facility unless the conditions included in the legislation are met. 

Further, the legislation would permit a political subdivision to apply for and the Department to grant a request to add up to 15 acres of deteriorating property to an existing KOEZ, KOIZ, or a subzone of a KOZ for parcels that are contiguous to the existing zone or subzone.

The legislation would also permit the Department to designate up to 15 additional Keystone Opportunity Expansion Zones provided that a political subdivision makes application for designation as a new KOEZ no later than May 1, 2009.  Each designated zone would: 

• be not less than 10 acres in size, unless contiguous to an existing zone;

• not exceed, in the aggregate, a total of 350 acres;
• and be comprised of parcels that meet any of the following criteria:
  1. are deteriorated, underutilized, or unoccupied on the effective date of the clause, or
  2. are occupied by a business that creates or retains at least 1,400 full-time jobs in the Commonwealth within three years of the designation of the KOEZ, and makes a capital investment of at least $750 million within that three year period.

Persons and businesses within an additional KOEZ would be entitled to all tax benefits, for a period of ten years beginning January 1, 2010 and ending December 31, 2020.  The Department would be prohibited from designating any parcel of land in Philadelphia as a zone under the act if any project involving a parcel within a 1,001-foot radius from the center of the proposed parcel has received or has been designated to receive in excess of $20 million in funding from the Commonwealth within the last four years.

Additional provisions would prohibit a person or a business that receives a tax exemption, deduction, abatement or credit under the act from knowingly permitting the labor services of an illegal alien under a contract to which the person or business is a party in the applicable KOZ, KOEZ, or KOIZ.  Full repayment of the value or amount of the tax exemption, deduction, abatement or credit would be required if:

• the person or business is sentenced under federal law for an offense involving knowing use of labor by an illegal alien; or
• if a contractor to a person or business that received the tax exemption, deduction, abatement or credit is sentenced under federal law for an offense involving use of labor by an illegal alien and the person knew or had reason to know of the contractor's knowing use of such labor. 

Senate Bill 1412 would also provide an exemption from the sales and use tauction materials used within a zone, payments by businesses Corporate Net Income Tax and the Business Gross Receipts Tax.  Passed:  49-1.

Senate Bill 1147 (Washington) would amend the Domestic Relations Code to require the county agencies and the Department of Public Welfare (DPW) to conduct child fatality and near fatality reviews of children in the child welfare system.  The bill would require county agencies to convene child fatality and near fatality review teams in cases where there is an indicated report of abuse or the agency has not made status determination within 30 days.  The team would consist of at least six individuals who are broadly representative of the county and who have expertise in the prevention and treatment of child abuse.  Within 90 days, the team would be required to submit a final report to the Department and designated county officials.  Within 45 days, the Department would be required to review the findings and recommendations of the report and provide a written response to the county agency and review team.  The Department would also be required to provide written reports on those deaths where abuse is suspected.  If the family had previous contact with the county, agency performance would be analyzed in the report.  The bill would also require DPW to submit a report to the Governor and the General Assembly within 12 months regarding the implementation of child abuse and criminal history information requirements under Act 73 of 2007.  The report would have to include information on the number of applicants for child care services, day care providers, and foster and adoptive parents and adults who reside in their homes impacted by the requirements of the act; the amount of fees assessed for federal criminal history background checks; a description of the administrative process used to transmit fingerprints to the Federal Bureau of Investigation for federal criminal history background checks; and any findings and recommendations.  Concurrence in House Amendments:  50-0. 

Senate Bill 1511 (Robbins) would amend the Public Welfare Code to remove the requirement that appointees to county boards of assistance be confirmed by two-thirds of the Senate.  The bill would add a provision to the act requiring that each appointment to a county board by the Governor bear the endorsement of the senator of the district in which the nominee resides.  In the case of a vacancy in that senatorial district, the nominee would be endorsed by the senator of an adjacent district.  Passed:  50-0. 

House Bill 1150 (D. O'Brien) would amend the Insurance Company Law of 1921 to make a number of changes.  Among other modifications, the measure would require health insurance policies offered, issued or renewed on or after July 1, 2009 and government programs to provide coverage for the diagnosis and treatment of autism spectrum disorders for individuals under 21 years of age.  Individual and small group employers with 50 or fewer employees would be exempt from the requirement.  The coverage would be subject to a maximum benefit of $36,000 per year, but would not be subject to any limits on the number of visits to an autism service provider.  Payments made by an insurer for treatment of a health condition unrelated to or distinguishable from the individual's autism spectrum disorder could not be applied toward any maximum benefit.  Coverage would be subject to copayment, deductible and coinsurance provisions.  After December 20, 2011, the Insurance Commissioner would adjust the limit for inflation annually.  On January 1, 2011, insurers would be required to report to the Insurance Department on the implementation of the legislation.   

The State Board of Medicine would be directed to promulgate regulations in consultation with the Department of Public Welfare for the licensure or certification of behavior specialists.  An insurer would required to contract with and to accept as a participating provider any autism service provider within its service area and enrolled in the state's medical assistance program who agrees to accept the payment levels, terms, and conditions applicable to the insurer's other participating providers for such service.  The results of a diagnostic assessment of autism spectrum disorder would be valid for a period of 12 months, unless a licensed physician or psychologist determines an earlier assessment is necessary.  An insurer could review a treatment plan for autism spectrum disorder once every six months.  The bill provides for review and appeal of a denial or partial denial of a claim for assessment or treatment of autism spectrum disorder. 

The measure would also provide coverage for colorectal cancer screening except to the extent already covered under another policy.  Coverage for non-symptomatic individuals who are 50 yeas of age or older would include, but not be limited to, an annual fecal occult blood test, a sigmoidoscopy, a screening barium enema, or a test consistent with approved medical standards and practices to detect colon cancer at least once every five years, and a colonoscopy at least once every ten years.  Coverage for symptomatic individuals would include a colonoscopy, sigmoidoscopy, or any combination of colorectal cancer screening tests at a frequency determined by a treating physician.  Coverage for non-symptomatic individuals who are at high or increased risk for colorectal cancer who are under 50 years of age would include a colonoscopy or any combination of colorectal cancer screening tests in accordance with the American Cancer Society guidelines on screening for colorectal cancer published as of January 1, 2008.  Coverage would be subject to annual deductible, coinsurance, and copayment requirements.  Individual and small group employers with 50 or fewer employees would be exempt from the requirement. 

The legislation would amend several definitions and add a definition of "shareholder."  The definition of "insurer" would be amended to include hospital plan corporations and professional health services plan corporations (Blue Cross and Blue Shield Plans) and the definition of "person" would be amended to include an "insurer." 

House Bill 1150 would also add provisions to the act to ensure the Insurance Department has appropriate oversight of the merger or consolidation of Blues plans.  The Senate Banking and Insurance Committee and the House Insurance Committee would be authorized to receive and review all filings submitted to the Insurance Department and provide written comments and recommendations on the filings.  The Department would provide a detailed written response to each comment and recommendation.  The Insurance Commissioner and Insurance Department personnel would have to be available to provide testimony to the committees.  The bill would establish the Insurance Restructuring Restricted Receipt Account to receive all net economic benefits from a consolidation or merger which are to be paid to the Commonwealth.  Monies from the account would have to be appropriated by the General Assembly. 

Blues plans would be required to submit a plan annually to the Department setting forth the manner in which they will provide proposed community health reinvestment activities during the next fiscal year.  The plans would also be required to provide the names and address of their officers, directors or employees that serve on the board of directors of a hospital or healthcare facility to the Department and the Senate Banking and Insurance and House Insurance Committees.

The bill would also clarify the provisions governing the standards and management of an insurer within a holding company system.  The bill would require that not less than one-third of the members of each committee of the board of directors of any domestic insurer be persons who are not officers or employees of the insurer or its controlling entity.  At least one such person would have to be included in any quorum for the transaction of business at any meeting of each committee.  The bill would further clarify that the board of directors of a domestic insurer must establish a committee comprised solely of directors who are not officers or employees of the insurer.  This committee would have the responsibility of recommending independent certified public accountants and reviewing the insurer's financial condition.  An additional provision would require the board of directors of a domestic insurer to establish one or more committees comprised solely of directors who are not officers or employees of the insurer for recommending candidates to be nominated by the board of directors, in addition to any other nominations by voting shareholders or policy holders, for election as directors by voting shareholders or policyholders; evaluating the performance of officers deemed to be principal officers of the insurer; and, recommending to the board of directors the selection and compensation of the principal officers.

Additional provisions would increase the cap on investments in subsidiaries for domestic life insurance companies from 10 percent to 15 percent of total admitted assets.  The GAA Amendments Act of 1990, which relates to consolidations, would be repealed insofar as it is inconsistent with this Act.

The provisions of the Act would not apply to any merger, consolidation or other acquisition made or consummated prior to the effective date of the section.  The act would apply to any application, statement or other plan or proposal relating to a merger, consolidation or other acquisition of control filed with the Department on or after January 1, 2007.  Passed:  49-1.

House Bill 2428 (Frankel) would create the Mortgage Property Insurance Coverage Act.  The bill would prohibit a lender from requiring a borrower, as a condition of obtaining or maintaining a secured loan, to obtain property insurance coverage which exceeds the replacement value of buildings and structures on the land used to secure the loan.  The legislation also specifies that a borrower on a loan secured by real property could not be required to insure the value of the land.  Passed:  50-0.