WEEKLY SESSION NOTES
Senate Republican Policy Committee
Sen. Jake Corman, Chairman

Monday, June 30, 2008

Senate Bill 483 (Browne) would amend Act 6 of 1974, known as the Loan Interest and Protection Law (Usury Law), to make a number of changes.  The bill would add a definition of "base figure" defined as $217,873, as adjusted annually for inflation by the Department of Banking through notice published in the Pennsylvania Bulletin.  The definition of residential mortgage would be amended to increase the principal amount included in the definition from $50,000 or less to the base amount or less.  Further, the maximum lawful rate of interest set in Section 201 of the Act would not apply to an obligation to pay a sum of money in an original bona fide principal amount of more than $50,000; an unsecured, uncollateralized loan in excess of $35,000; or any business loan.  The bill would also provide for a penalty of $10,000 per offense for any person who violates the provisions of the act.  The bill provides the Department of Banking with additional enforcement authority, including the ability to examine records and to issue subpoenas.  If the Department determines that a person has violated the act, it could suspend or revoke any license issued to the person by the Department or prohibit the person from working in any capacity related to activities regulated by the Department.  Concurrence in House Amendments: 50-0.

Senate Bill 484 (Browne) would amend the Department of Banking Code to permit the Department of Banking to release information on pending enforcement actions and fines against non-depository licensees (mortgage bankers and brokers).  The bill would also require licensees to use and to pay processing fees for using a national electronic licensing system and require all entities licensed by the Department of Banking to obtain criminal history checks.  The Department of Banking would be required to make public notice regarding applications; receive comments and objections by third parties; and, conduct departmental hearings.  The Department would have the ability to approve or disapprove an application without holding a hearing.  A hearing would be held if an applicant or other person with standing protests the decision of the Department.  The bill would also clarify the circumstances under which the Department could release information about a licensee who has been subject to sanctions.  Concurrence in House Amendments:  50-0.

Senate Bill 485 (Browne) would amend the Real Estate Appraisers Certification Act to create a new real estate appraiser trainee license and to make changes necessary for compliance with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 for federally-related transactions.  The bill would require the State Board of Certified Real Estate Appraisers to issue an appraiser trainee license, without examination, to any person who meets the appraiser trainee educational requirements set by board and who does not already hold an appraiser credential.  An appraisal trainee would have to operate under the direct supervision of one Certified Residential Appraiser or a Certified General Appraiser for the purpose of completing the experience requirement for an appraiser credential.  The supervisory appraiser would have to be in good standing, have at least five years of experience as a Certified Residential Appraiser or a Certified General Appraiser, and could not supervise more than three appraiser trainees.  An appraisal trainee would be permitted to assist in the performance of any appraisal that is within the supervisory appraiser's scope of practice. 

The bill would add two additional causes for disciplinary and corrective measures by the Board to include the suspension or revocation of the right to practice by a federal or state governmental agency or having been found by a civil court of competent jurisdiction to have performed a fraudulent appraisal.  An additional change would increase the penalty that the board could levy for violations from $1,000 to $10,000.  The bill would also modify the membership of the State Board of Certified Real Estate Appraisers to include the Secretary of the Commonwealth or a designee, the Attorney General or a designee, the Secretary of Banking or a designee, and eight additional members who would have to be United States citizens that were residents of the Commonwealth for a two-year period immediately prior to appointment.  Two of these members would be public members and six would be state-certified real estate appraisers.  The Board would be required to make its list of all persons licensed as appraiser trainees and certified real estate appraisers accessible on its internet website.  The bill would not preclude a licensed real estate broker from also holding an appraiser license or certificate and clarify that Certified Residential Appraisers and Certified General Appraisers must conduct appraisals in accordance with the criteria established by the Appraiser Qualifications Board of the Appraisal Foundation. Concurrence in House Amendments:  50-0.

Senate Bill 949 (Kasunic) would create the Bituminous Coal Mine Safety Act to re-write Pennsylvania's bituminous coal mining safety laws.  The Department of Environmental Protection (DEP) would be responsible for administering the mine safety program.  The bill would establish a seven-member Board of Coal Mine Safety to develop regulations.  The Board would consist of the Secretary of DEP who would serve as the chair and six members appointed by the Governor -- three members representing coal mine operators and three members representing working miners.  Any action by the Board would require five affirmative votes.  The Board would be authorized to establish fees to cover the Department's cost of administering the act.

The Department of Environmental Protection would be authorized to establish a mine rescue program for mines which are not able to provide their own mine rescue crew.  The mine rescue program would instruct mine employees on how to care for persons injured in a mine accident and train mine employees in the use of mine rescue equipment.  The Department would be required to purchase and maintain adequate quantities of emergency response vehicles and equipment to ensure a rapid and effective response to mine emergencies.  In the event of an emergency response, the Department would be authorized to use emergency contracting provisions to lease additional services or equipment.  The bill delineates the actions mine operators and the Department would be required to take in the event of a mine accident.  The Department would coordinate and assist in responding to all mine emergencies in the Commonwealth and could seek reimbursement of funds expended in responding to an emergency from a mine operator.  A Mine Safety Fund would be established for these funds and all fees, fines, and penalties received under the provisions of the act.  The monies in the Fund would be used for mine safety activities and the administration of the act.

Emergency medical personnel would have to be employed at every mine site.  At least one emergency medical technician would be on duty at any time when miners are engaged in the extraction, production, or preparation of coal.  The Department of Health would promulgate rules and regulations necessary to train and certify emergency medical technicians.  Each mine operator would have to provide every new employee who has not received the training required under the act within the previous six months with the first aid training required by the Department.  The bill outlines general safety requirements and mapping and surveying standards that would have to be met by mine operators.  Other health and safety requirements address proper ventilation, roof support, transportation of individuals, fire protection and mining close to abandoned workings.  In addition, separate chapters would address the use of electrical and diesel-powered equipment in mines.  ;

The Department would be required to prepare and administer examinations for the certification of mine foremen, assistant mine foremen, mine examiners and mine electricians.  In addition, DEP would be authorized and directed to obtain and copy all maps of mining conducted in Pennsylvania.  Any person who has possession of a mine map would be required to make the map available to the Department for inspection and copying.  The Department would have to organize the maps and make them available for general public review. 

The Department would be required to inspect each mine in Pennsylvania at least semi-annually for electrical purposes and at least quarterly for general purposes.  The Department could issue written orders to enforce the act and to protect the health and safety of miners and persons in and around mines.  The Department could assess an administrative penalty of up to $2,500 against a mine official who is responsible for actions which pose an imminent and substantial threat to the health and safety of miners.  If the Department finds that an operator directed or condoned an unsafe act or violation of the act, the Department could assess an administrative penalty of not less than $10,000 and not more than $200,000.  The person that directed or condoned the action shall be removed from any positions of command and control.  The bill also provides for criminal penalties for violations of the act.  Concurrence in House Amendments, as Amended:  50-0.

Senate Bill 999 (Corman) would designate:

• State Route 26 in Marion and Spring Townships, Centre County, from segments 450/748 to 570/000, as the Marine Sergeant David "DJ" Emery Highway.  Private First Class Emery served with distinction in the 4th Battalion, 2nd Marines, 2/4 Gulf Company until February 7, 2007, when he was seriously wounded in an attack by a suicide bomber.  Emery was promoted to Sergeant on May 9, 2007;
• The bridge joining Clearfield and Centre Counties on State Route 322 as the Veterans' Memorial Bridge;
• State Route 850 throughout Marysville Borough, Perry County as the Army Private David E. Dietrich Memorial Highway.  Private Dietrich served with distinction in F Troop, 1st Cavalry Regiment, 1st Bridge Combat Team, 1st Armored Division until December 29, 2006 when he was fatally wounded when his combat patrol unit came under attack by small arms fire from enemy forces in Ar Ramadi, Iraq; and,
• U.S. Route 322 in Harris, College and Patton Townships, Centre County, from Segment Nos. 450/748 to 570/000, as the Thomas D. Larson Memorial Highway.  Thomas D. Larson served as the Pennsylvania Secretary of Transportation from 1979 to 1987 and as the Federal Highway Administrator from 1989 to 1993.  Concurrence in House Amendments:  50-0.

Senate Bill 1247 (Rhoades) would amend the Fourth to Eighth Class and Selective County Assessment Law to limit the situations in which local taxing authorities can appeal an assessment.  Specifically, the bill would clarify that, other than during a countywide reassessment, an appeal by the corporate authorities of any county, borough, town, township, or school district could be taken from an assessment only when a parcel of land is divided and conveyed away in smaller parcels, when improvements are made to real property, or when existing improvements are removed from real property or are destroyed.  Passed:  48-2.

Senate Bill 1497 (Erickson) would amend the Public Welfare Code to provide for the continuation of pharmacy benefits as a covered benefit for medical assistance consumers entitled to benefits with managed care contractors that contract with the Department of Public Welfare.  Pharmaceutical benefits would remain a covered benefit, unless termination is approved by the General Assembly.  Passed:  50-0.

Senate Bill 1499 (Folmer) would amend the Fiscal Code to establish accountability measures for the use of state vehicles as follows:

• State employees who drive an average of 1,200 miles per month on official business (excludes travel to and from work) would qualify for a long-term assignment of a state vehicle;
• State employees assigned to a state vehicle would maintain a monthly mileage log.  The logs would be posted online at the Department of General Services' public website.  Undercover law enforcement agents would be excluded;
• Vehicles assigned to state employees would have an "official use" license plate, unless the employee is working undercover in law enforcement; and
• State employees assigned a state vehicle would be required to reimburse the state for insurance and gasoline, based proportionately on personal usage.  Passed:  50-0.

Senate Resolution 360 (C. Williams) observes July 4, 2808 as "Let Freedom Ring Day" and encourages Pennsylvania to participate in the National Bell Ringing Ceremony that will occur on that day.  Adopted by Voice Vote.

House Bill 1329 (Kessler) would amend the Pennsylvania Municipalities Planning Code (Act 247 of 1968) to provide for optional public notice of municipal actions and to provide for jurisdiction of the zoning hearing board and the Court of Common Pleas in challenges to the validity of an ordinance.  The legislation would add Section 108 (Optional Notice of Ordinance or Decision) permitting optional public notice of municipal action in order to provide the opportunity for challenges to the validity of an ordinance or decision on the basis that a defect in procedure resulted in a deprivation of constitutional rights, and to establish a period of limitations for raising such challenges.  The public notice by a resident, a landowner, or the municipality would be published once each week for two successive weeks in a newspaper of general circulation in the municipality.  Each notice would include specific required information and the person providing notice would provide proof of publication to the municipality adopting the ordinance or decision.  Any appeal or action contesting the validity of an ordinance or a decision based on a procedural defect in the process of enactment or the validity of a decision would be dismissed, with prejudice, as untimely if not filed within the 30th day following the second publication of the notice.  Any appeal or action filed within the 30 day period would be taken to the Court of Common Pleas.

In response to a PA Supreme Court ruling in Glen-Gery Corporation v. Zoning Hearing Board of Dover Township, York County, this legislation deletes Section 909.1(a)(2) pertaining to challenges to the validity of land use ordinances based upon procedural defects.  New language on procedural defects would be provided for in Section 1002-A by adding that challenges to the validity of a land use ordinance based on procedural questions or alleged defects in the process of enactment or adoption would be raised by appeal.  The appeal would be taken directly to the Court of Common Pleas of the judicial district in which the adopting municipality is located.  Appeals would only be permitted by an aggrieved person who can establish that his or her property rights would or could be affected by the land use decision.  An appeal raising an alleged defect in statutory procedure would be brought within 30 days after entry of the decision.  The legislation states that it is the expressed intent of the General Assembly that this 30-day limitation would apply except in cases in which an unconstitutional deprivation of due process would result from its application.  No decision challenged in an appeal would be deemed void from inception unless the party alleging the defect meets a specified burden of proof.  A court decision that the ordinance or decision is void from inception would not affect any previously acquired rights of property owners who had exercised good faith reliance on the validity of the decision prior to the determination.  Passed:  50-0.

House Bill 1330 (Kessler) would amend Title 42 (Judiciary and Judicial Procedure) of the Pennsylvania Consolidated Statutes as it relates to appeals of political subdivision ordinances and resolutions based on procedural defects in the process of enactment.  Based on a PA Supreme Court ruling in Glen-Gery Corporation v. Zoning Hearing Board of Dover Township, York County, the legislation repeals Section 5571(c)(5) which pertains to exceptions from the 30-day time frame for court appeals and replaces this language with Section 5571.1 (Appeals from ordinances, resolutions, maps, etc.).

Section 5571.1 would give the Court of Common Pleas jurisdiction over any appeal raising questions relating to an alleged defect in the process of or procedure for enactment or adoption of any ordinance, resolution, or map of a political subdivision.  An appeal raising an alleged defect in statutory procedure would be brought within 30 days of the intended effective date of the ordinance.  The legislation states that it is the express intent of the General Assembly that this 30-day limitation would apply regardless of the ultimate validity of the challenged ordinance.  The 30-day limitation would not apply if the party bringing the suit demonstrates that the time limitation would result in an impermissible deprivation of constitutional rights.  Appeals under these provisions would be subject to the presumption that:

• an ordinance is valid and was enacted in strict compliance with statutory procedure;
• if an appeal filed in court more than two years after the intended effective date of the ordinance is allowed to proceed, the political subdivision involved and residents and landowners within the political subdivision substantially relied upon the validity of the ordinance; and,
• an ordinance would not be found to be void from inception unless the party alleging the defect meets a specified burden of proof.

A determination that an ordinance is void from inception would not affect any previously acquired rights of property owners who have exercised good faith reliance on the validity of the ordinance prior to the determination.  Passed:  50-0.

House Bill 1612 (Solobay) would create the Cigarette Fire Safety and Firefighter Protection Act to require that all cigarettes sold in Pennsylvania meet fire-safety standards as set by the American Society of Testing and Materials (ASTM).  The legislation would:

• Provide the Department of Revenue, the State Fire Commissioner and the Office of Attorney General with the responsibility for enforcing the act;
• Allow the Department of Revenue to enter into a memorandum of understanding with the State Fire Commissioner and the Attorney General for the random inspection of wholesale dealers, stamping agents and retailer dealers to ensure compliance with the Act and related acts;
• Provide that only self-extinguishing cigarettes that have been tested, certified and marked in accordance with the Act be sold in Pennsylvania after July 1, 2009;
• Provide for testing standards and require cigarette manufacturers to maintain testing data for three years.  Copies of the test results would be provided to the Department of Revenue, the Office of Attorney General and the State Fire Commissioner upon written request, with failure to provide copies within 60 days of a request resulting in a $10,000 per day fine;
• Require the State Fire Commissioner to review the effectiveness of the Act every three years and report the findings to the General Assembly;
• Require manufacturers to submit written certifications to the Department of Revenue showing that the cigarettes for sale in Pennsylvania meet performance standards;
• Establish a certification fee of $1,000 per brand family and a $500 fee for amended certifications;
• Require all cigarettes offered for sale in Pennsylvania to be re-tested and re-certified every three years;
• Require cigarette packages to have a uniform marking approved by the Department of Revenue to indicate standards and performance compliance;
• Impose civil penalties on manufacturers, wholesale dealers, retailers or stamping agents selling cigarettes in violation of the Act;
• Provide that wholesale and retail dealers may sell their existing inventory of cigarettes until July 1, 2009 providing that state tax stamps were affixed prior to the effective date, the inventory was purchased prior to the effective date, and the inventory amount is comparable to the inventory of the previous year;
• Provide that cigarettes not meeting the requirements of this Act may be sold to other states or foreign countries;
• Create the Cigarette Fire Safety and Firefighter Protection Act Enforcement Fund within the State Treasury for the deposit of the certification fees which would be used to support processing, testing, enforcement and oversight activities under the Act; and
• Create the Fire Prevention and Public Safety Fund within the State Treasury for the deposit of fines from penalties which would be used to support fire safety and prevention programs.  Passed:  50-0.

House Bill 2295 (Petrone) would amend the Uniform Condominium Act to reduce the number of unit owners who must approve the application of the law to properties originally organized under the Unit Property Act.  The bill would require that only 67 percent of unit owners approve the change to permit the application of the Uniform Condominium Act to condominiums organized before its effective date.  Under existing law, all of the unit owners must approve the change.  The bill would also clarify that unpaid, common expense assessments due during the six months immediately preceding the date of a judicial sale of a unit are divested by the judicial sale only to the extent that they paid out of the proceeds of the sale.  Passed:  50-0.

Executive Session

Judicial Nominations - Two-Thirds Vote Required.  (See Attached)  Confirmed:  50-0.

Wayne E. Gardner – Pennsylvania Public Utility Commission.  Confirmed:  50-0.

Robert F. Powelson – Pennsylvania Public Utility Commission.  Confirmed:  50-0.

Norman Gavlick, MBA, CPRW – Pennsylvania Fish and Boat Commission.  Confirmed:  50-0.

Frank M, Snyder, II – State Board of Vehicle Manufacturers, Dealers and Salespersons.  Confirmed:  50-0.

Tuesday, July 1, 2008

There were no final passage votes taken in the Senate on Tuesday.

Wednesday, July 2, 2008

Senate Bill 903 (Orie) would amend Title 62 (Procurement) by adding Chapter 11, known as the Openness in Consulting Contracts Act, to establish procedures for the awarding of Commonwealth contracts for legal, bond or management consulting contracts.  Consulting services would include:

• Management consulting contracts designed to improve the effectiveness of management strategies, processes or operations by assessing needs, functions, plans and operating procedures.
• Legal consulting services that provide legal opinions, strategies or assessments of agency conduct, other than those related to pending litigation.
• Provision of legal services in connection with the sale or issuance of bonds authorized by law.

No Commonwealth agency could contract with any individual or business to provide these consulting services, unless such contracting adheres to the requirements of Chapter 11 or is opened up to competitive bidding.  Additional provisions would require contractors to report campaign contributions as one condition of receiving future consulting contracts.  Further, all information relating to contract criteria, contracts awarded and contributions would be made available for public inspection on the internet.  Chapter 11 also provides that, as applied to executive and independent agencies of the Commonwealth, the Attorney General could not delegate the responsibility for form and legality review pursuant to the Commonwealth Attorneys Act, with regard to contracts involving consulting services.  Such contracts could not be approved or deemed approved absent a form and legality review by the Attorney General.

The legislation would also make changes to Section 515, which addresses sole source contracting.  The changes would require that for sole sourcing to occur when services are to be provided by attorneys or litigation consultants selected by the Office of General Counsel, the Office of Attorney General, the Department of Auditor General or the Treasury Department, the services must be in connection with pending litigation against the Commonwealth.  The measure would further require that written determinations authorizing sole source procurements be available for public inspection.  The legislation would also repeal inconsistent provisions of the Commonwealth Attorneys Act. Passed:  50-0.

Senate Bill 1000 (Wonderling) would create the Voice-Over-Internet Protocol Freedom Act.  The bill would prohibit the Commonwealth or any of its political subdivisions from enacting or enforcing, either directly or indirectly, any law, rule, regulation, standard, order or other provision having the force or effect of law that regulates, or has the effect of regulating, the rates, terms and conditions of voice-over-internet (VoIP) service or internet protocol-enabled service.  Nothing in the Act could be construed to affect the Office of Attorney General's application or enforcement of laws or regulations that apply generally to consumer protection or unfair or deceptive trade practices.  Further, nothing in the Act could be construed to modify the authority of a Commonwealth department, agency or commission to enforce applicable federal or state statutes or regulations relating to:  the provision and administration of enhanced 911 service and nondiscriminatory enhanced 911 fees; telecommunications relay service fees; Universal Service Fund fees; switched network access rates or other inter-carrier compensation rates for interexchange services provided by a local exchange telecommunications company; or, rates, terms or conditions of protected services provided under tariffs which are subject to approval by the Pennsylvania Public Utility Commission.  Additionally, the Act could not be construed to affect the authority of the Commonwealth or a political subdivision to require a cable operator to obtain a franchise agreement to provide cable service within a political subdivision under the federal Communications Act of 1934.  Concurrence in House Amendments:  50-0.

Senate Resolution 344 (Brubaker) endorses the request for federal funding to address vitally important water resources needs.  Adopted:  50-0.

Senate Resolution 361 (Rafferty) recognizes the actions of Pennsylvania attorneys who provide pro bono legal services to members of the United States Armed Forces and their families.  Adopted by Voice Vote. 

Senate Resolution 362 (Brubaker) recognizes the month of August 2008 as "Pennsylvania Produce Month."  Adopted by Voice Vote.

House Bill 5 (Marsico) would amend the Prisoner Transfer Law to provide for the temporary transfer of inmates between correctional facilities.  For judicial purposes, the Department of Corrections (DOC) would be permitted to temporarily transfer an inmate in one state correctional institution to another state correctional institution of an appropriate security level that is nearest to the location of the judicial proceeding.  The DOC would have the discretion of selecting an alternative and reasonably accessible state correctional institution if bed space limitations in the nearest state correction institution prevent the temporary transfer.

The DOC would only be required to temporarily transfer an inmate if all of the following apply:

• A court order has been entered directing the presence of the inmate at a judicial proceeding.
• The court has found that the inmate's presence is required at the judicial proceeding.
• The Constitution of the United States or the Constitution of Pennsylvania does not permit the inmate's testimony or participation in the proceeding to be conducted by videoconferencing technology.

The DOC would establish regulations for the implementation of the new provisions, which could require the following:

• Up to 14 days' notice prior to the entry of a temporary transfer order.
• The return of an inmate to the inmate's home correctional institution upon completion of the judicial proceeding.
• That an inmate be removed from a state correctional facility and detained in a county prison if the inmate has been temporarily transferred more than twice in the preceding six months or the judicial proceeding is scheduled to last more than one week.

Pending implementation of regulations, the DOC would publish interim guidelines.  However, the new provisions would be implemented even if the interim guidelines have not been published or the regulations implemented.  The DOC could presume that a judicial proceeding has concluded when the inmate is returned to the temporary correctional institution after a judicial proceeding unless a court notifies the department otherwise.  The DOC could require a county to pay the reasonable costs of transportation between state correctional facilities if the county court has requested the temporary transfer.  Such county reimbursements would be automatically re-appropriated to the DOC.  The courts would not be authorized to designate a particular place of confinement or the length of confinement in the temporary correctional institution.  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.  Individuals 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 30, 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 be 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.  For purposes of these provisions, the results of a diagnostic assessment of autism spectrum disorder would be valid for a period of not less than 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.  Individuals 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.  Concurrence in House Amendments to Senate Amendments:  49-1.

House Bill 1804 (Yudichak) would amend the Medical Practice Act to provide for licensure for respiratory therapists and to expand the scope of practice for physician assistants.  Respiratory care practitioners would now be referred to as respiratory therapists in the Medical Practice Act and would be licensed rather than certified providing they meet one or more of the following requirements:

• Graduation from a respiratory care program approved by the Committee on Accreditation for Respiratory Care and passage of the Certified Respiratory Therapist Examination as determined by the National Board for Respiratory Care,
• Be credentialed as a Certified Respiratory Therapy Technician or Registered Respiratory Therapist by the National Board for Respiratory Care, or
• Hold a valid license, certificate or registration in another state which is substantially the same.

Currently-certified respiratory care practitioners would have two years to apply for licensure as a respiratory therapist.  Continuing education requirements would be increased from 20 hours to 30 hours during the biennial renewal period, with at least one credit hour in ethics and one credit hour in patient safety.

House Bill 1804 would also expand the scope of practice for physician assistants, who act within the supervision and direction of a supervising physician, to allow them to do the following:

• Order durable medical equipment;
• Issue oral orders to the extent permitted by a health care facility's bylaws, rules, regulations or administrative policies and guidelines;
• Order physical therapy and dietician referrals;
• Order respiratory and occupational therapy referrals;
• Perform disability assessments for the program providing Temporary Assistance to Needy Families (TANF);
• Issue homebound schooling certifications; and
• Perform and sign the initial assessment of methadone treatment evaluations, provided that any order for methadone treatment would be made only by a physician.

In addition, physician assistants would be required to carry professional liability insurance coverage and to complete continuing medical education as specified by the National Commission on Certification of Physician Assistants.  Passed:  50-0.

House Bill 2088 (Adolph) would amend the Osteopathic Medical Practice Act to provide for licensure for respiratory therapists and to expand the scope of practice for physician assistants.  Respiratory care practitioners would now be referred to as respiratory therapists in the Osteopathic Medical Practice Act and would be licensed rather than certified providing they meet one or more of the following requirements:

• Graduation from a respiratory care program approved by the Committee on Accreditation for Respiratory Care and passage of the entry level examination as determined by the National Board for Respiratory Care,
• Be credentialed as a Certified Respiratory Therapy Technician or Registered Respiratory Therapist by the National Board for Respiratory Care, or
• Hold a valid license, certificate or registration in another state which is substantially the same.

Currently certified respiratory care practitioners would have two years to apply for licensure as a respiratory therapist.  Continuing education requirements would be increased from 20 hours to 30 hours during the biennial renewal period, with at least one credit hour in ethics and one credit hour in patient safety.

House Bill 2088 would also expand the scope of practice for physician assistants, who act within the supervision and direction of a supervising physician, to allow them to do the following:

• Order durable medical equipment;
• Issue oral orders to the extent permitted by a health care facility's bylaws, rules, regulations or administrative policies and guidelines;
• Order physical therapy and dietician referrals;
• Order respiratory and occupational therapy referrals;
• Perform disability assessments for the program providing Temporary Assistance to Needy Families (TANF);
• Issue homebound schooling certifications; and
• Perform and sign the initial assessment of methadone treatment evaluations, provided that any order for methadone treatment would be made only by a physician.

In addition, physician assistants would be required to carry professional liability insurance coverage and to complete continuing medical education as specified by the National Commission on Certification of Physician Assistants. Passed:  50-0.

House Bill 2158 (Siptroth) would make a number of land conveyances.  The bill would authorize the Department of General Services (DGS) to convey: 

• three tracts of land totaling 3.319 acres and the Pennsylvania Department of Transportation Pike County Maintenance Facility in Milford, Pike County to the county in exchange for 13.5 acres in Blooming Grove Township, Pike County.  No portion of the conveyance could be used for a licensed gaming facility or it would revert to the Commonwealth.  Each party would bear its own fees and costs incidental to the conveyance;
• six sanitary sewer easements and two temporary construction easements through the lands of Wernersville State Hospital in South Heidelberg Township and Lower Heidelberg Township, Berks County to Heritage Building Group, Inc., and the South Heidelberg Municipal Authority.  The terms and conditions would be established in an easement agreement, with costs and fees incidental to the conveyance being paid by the grantee.  The conveyance could not be construed to convey any excess sewage capacity available at Wernersville State Hospital.  In the event an easement agreement is not executed within one year, the authorization for the conveyance would be null and void;
• 0.29 acres and a building in Pottstown, Montgomery County by an invitation for sealed bids or public auction.  The proceeds from the sale would be deposited in the State Treasury Armory Fund;
• 0.28 acres and a building in West Norriton Township, Montgomery County at a price to be determined through competitive bidding.  The proceeds of this conveyance would be deposited in the General Fund;
• a water main and a permanent easement, not to exceed 25 feet in width, through the grounds of the Railroad Museum of Pennsylvania to the Strasburg, Lancaster County, Borough Authority for $1.  The deed conveying the easement would have to contain a covenant requiring the grantee to repair any damages to the easement area caused by the grantee's operation of the water main.  The Department of General Services would also be authorized to convey any easements or licenses necessary to provide the Railroad Museum of Pennsylvania with access to public sewer service;
• 1.645 acres and a building in the City of Allentown and Salisbury Township, Lehigh County to Parkwood Real Estate Trust LLC for $805,000 in accordance with an agreement of sale dated September 12, 2007.  The proceeds of the conveyance would be deposited in the Motor License Fund.  No portion of the conveyance could be used for a licensed gaming facility or it would revert to the Commonwealth.  In the event the conveyance is not executed in accordance with the agreement of sale, the property could be disposed of in accordance with section 2003 of the Administrative Code of 1929; and,
• 2.52 acres of land in Scranton to the County of Lackawanna Transit System Authority (COLTS) in exchange for approximately 4.6 acres of land in Scranton.  No portion of the land conveyed to COLTS could be used as the location for a licensed gaming facility or the land would revert to the Commonwealth.  In the event the conveyance is not executed by May 16, 2010, the authorization would become null and void.  Passed:  50-0.

Executive Session

Anthony J. Kilker – Magisterial District Justice – Schuylkill County.  Confirmed:  50-0.

Thursday, July 3, 2008

Senate Bill 356 (M. White) would amend the Environmental Education Act to establish the Pennsylvania Center for Environmental Education within the State System of Higher Education which would, in consultation with the appropriate stakeholders, help to identify the needs for environmental education and to promote research and development of programs for non-formal educators.  Among other duties, the Center would be required to promote the formation of partnerships with educators, public officials, county conservation districts, businesses, and non-profit organizations to help to evaluate the effectiveness of non-formal environmental education programs and to help to facilitate the active implementation of the environment and ecology standards adopted by the State Board of Education.  The Center would also establish an internet-based resources network to make environmental information available, and actively seek public and private sources of funding to help support its activities.

A Pennsylvania Center for Environmental Education Board would be established to oversee the operations of the Center in the performance of its duties.  The Board would be composed of representatives from the Department of Environmental Protection, the Department of Conservation and Natural Resources, and the Department of Education; five representatives appointed by the State System of Higher Education; and, one representative of the Pennsylvania Association of Conservation Districts appointed by the Secretary of Agriculture.  The Board would meet semiannually to establish priorities, adopt an annual work plan, and approve activities of the Center.  Expenses of the board and the operation of the Center would be paid by the State System of Higher Education from funds appropriated by the General Assembly.  The State System of Higher Education could, in consultation with the Pennsylvania Center for Environmental Education Board, hire such employees and contract with other entities as it determines to undertake its responsibilities to the extent available funds allow.  All staff hiring, firing, staff and program evaluations and fiscal accountability will follow State System of Higher Education procedures and practices. 

The legislation would also provide for grants to education and conservation groups, among others, for the purpose of providing environmental education.  The measure would expand the duties of the Department of Education to include identifying the need for the development of new curriculum and continuing teacher professional development and education programs related to environmental education and to support efforts to develop programs and materials to meet those needs in collaboration with other agencies, organizations or associations. 

Further, the membership of the Advisory Council on Environmental Education in the Department of Education would be expanded to include the Secretary of Conservation and Natural Resources and two members representing conservation and natural resources interests appointed by the Secretary of Conservation and Natural Resources.  The bill would also expand the set-aside for the Environmental Education Fund to include five percent of natural resource damage settlements.  Concurrence in House Amendments:  47-3.

Senate Bill 838 (Corman) would amend the CPA law to make a number of changes.  Among other modifications, the bill would:

• Add or modify a number of definitions;
• Allow license reciprocity for an individual whose principal place of business is not in the Commonwealth and who has a valid certificate and license from another state;
• Establish a standard of "substantial equivalency" for licensure reciprocity if the state in which the person is licensed has also adopted into law a provision allowing for practive under substantial equivalency that includes no notice and no fee;
• Subject a Commonwealth licensee who renders services as a CPA in another jurisdiction to disciplinary action by the state board for an act occurring in another state if the licensee is disciplined by that jurisdiction, or the individual commits an act that would be subject to disciplinary action in the Commonwealth;
• Increase the certified public accountant members of the State Board of Accountancy from eight members to nine members;
• Establish additional requirements for the ownership of working papers;
• Increase the civil penalty for a violation of the act from $1,000 to $10,000;
• Prohibit the State Board of Accountancy from levying a civil penalty for a violation for which a person has been fined or assessed a civil penalty by the accountancy regulatory authority of another state;
• Decrease the number of public accountants on the Board from two to one and require the individual to be engaged in the practice of accounting as his or her primary occupation at the time of appointment; and,
• Increase the permissible ownership percentage of an accounting practice for non-licensed persons from one-third ownership to 49 percent ownership.  Concurrence in House Amendments:  50-0.

Senate Bill 1203 (Greenleaf) would amend Title 20 (Decedents, Estates and Fiduciaries) to make omnibus amendments.  The legislation includes the recommendations of the Joint State Government Commission Advisory Committee on Decedents' Estate Laws, a group of attorneys and judges from across Pennsylvania who assist the General Assembly by periodically recommending improvements to the Probate Code and related statutes.  Many of the changes relate to the Uniform Trust Act, and the bill abolishes the rule against perpetuities.  Among numerous other modifications, the bill would: Provide that:

• a spouse has no right or interest in the real or personal estate of the other spouse if the other spouse dies during the course of divorce proceedings, no divorce decree has been entered, and grounds have been established;
• provision in a testator's will in favor of the testator's spouse becomes ineffective if the testator dies under the same circumstances, unless it appears from the will that the provision was intended to survive a divorce;
• a provision in a conveyance that was revocable by a conveyor at the time of the conveyor's death in favor of or relating to the conveyor's spouse becomes ineffective under the same circumstances, unless it appears in the governing instrument that the provision was intended to survive a divorce;
• the designation of an individual's spouse or former spouse as beneficiary of a contractual arrangement (e.g., an insurance policy, annuity contract, pension or profit-sharing plan) providing payments to the spouse, if the designation was revocable by the individual at the time of the individual's death, also becomes ineffective under the same circumstances.  In such an instance, the designation would be construed as if the spouse or former spouse predeceased the individual, unless it appears that the designation was intended to survive the divorce, based on the wording of the designation, a court order or a written contract between the individual and the spouse or former spouse.
• Require that a personal representative who has advertised the grant of letters and received the required notice must promptly send copies of the proofs of that advertisement to the trustee.
• Permit a court to direct a personal representative to file an inventory of estate assets at any time on its own initiative rather than for cause shown as is currently provided by the statute.
• Provide that parties liable for apportionment of the federal estate tax must pay the amounts apportioned against them at the time the tax is due, without regard to any extension of time for paying the tax and that distribution or delivery of property to any party must not be required of any fiduciary until that party pays the federal estate tax apportioned to that party.
• Provide that, with respect to a power of attorney:  (1) an agent and a beneficiary of a life insurance policy are liable to the extent that a beneficiary designation made by the agent is inconsistent with the known or probable intent of the principal; (2) the agent cannot designate himself beneficiary of a retirement plan unless the agent is the spouse, child, grandchild, parent or sibling of the principal and (3) an agent and a beneficiary of a retirement plan are liable to the extent that a beneficiary designation made by the agent is inconsistent with the known or probable intent of the principal.
• Provide that if a power of appointment is exercised to create a new power of appointment, any interest created by the exercise of the new power of appointment is invalid if it does not vest within 360 years of the creation of the original power of appointment, unless the exercise of the new power of appointment expressly states that this provision shall not apply to the interests created by the exercise.
• Provide that the competency of a witness in an action contesting the validity of a revocable trust must be governed by the same rules that apply in actions contesting the validity of a will.
• Provide for a trustee's duty to advertise and require the personal representative of the settlor of a revocable trust to send the trustee copies of the proof of publication of the advertisement of the grant of letters.
• Provide that a trustee must promptly respond to a settlor's reasonable request for information related to the trust's administration and clarify that a trustee must promptly respond to a reasonable request by a beneficiary of an irrevocable trust for information related to the trust's administration.
• Require the trustee to notify the settlor or current beneficiaries when there is a change in the trusteeship of a trust.
• Clarify that each current beneficiary has the right to receive an annual written report of the trust's assets and their market values if feasible, the trust's liabilities and the trust's receipts and disbursements since the date of the last such report.  Passed:  50-0.

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.  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.

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 tax for construction materials used within a zone, prohibit certain payments by businesses to municipalities for zone designation, and further clarify apportionment of income for the purposes of the Corporate Net Income Tax and the Business Gross Receipts Tax.  Passed:  49-1.

Senate Bill 1424 (Tomlinson) would amend the Board of Vehicles Act to establish a fee for document processing for automobile dealers.  Under the provisions of the bill, a licensed dealer who has a contract with the Department of Transportation could charge a purchaser of a vehicle a licensing cost to cover the actual cost incurred for fees associated with titling and registration and a documentary preparation charge.  These provisions would apply whether or not the purchaser intends to title and register the vehicle outside of the Commonwealth.  A dealer which provides electronic transaction services for document preparation could impose a maximum charge of $100 for 2008 and $120 for 2009.  Dealers which do not provide electronic transactions could impose a maximum charge of $80 for 2008 and $100 for 2009.  Beginning in January 2010, and annually thereafter, the licensing cost of document preparation would be adjusted in accordance with the Federal Consumer Price Index for all Urban Consumers for all items.  Concurrence in House Amendments:  48-2.

Senate Resolution 352 (Folmer) commemorates the contributions of Milton Friedman and the 96^th birthday of Milton Friedman on July 31, 2008.  Adopted by Voice Vote.

House Bill 69 (M. Keller) would amend Title 34 (Game) to shorten the radius of safety zones when applied to persons properly licensed for falconry from 150 yards to 50 yards, the same distance applied to properly licensed persons hunting with a bow and arrow or crossbow.  In addition, the bill would exempt auctioneers from paying any fee for auctioning mounted specimens (the Game Commission currently charges $5 for a permit).  The auctioneer would be required to report within 15 days to the Commission the sale of ten or more mounted species that occur during one auction.  Passed:  50-0.

House Bill 883 (Kenney) would amend the Newborn Child Testing Act to make a number of changes.  Among other modifications, the bill would:

• Expand from six to 28, the number of genetic diseases for which newborns who test "positive" must be reported to the Department of Health for follow-up services such as case management, referrals, confirmatory testing, assessment and diagnosis in an attempt to avert mental retardation, permanent disabilities or death.  The law currently requires that newborns be tested for six diseases, a requirement that will not change; but physicians and hospitals today routinely screen for 50 to 70 diseases, and this bill would expand the number of diseases which must be reported for newborns with abnormal, inconclusive or unacceptable screening test results.
• Require the Department, with the approval of the Newborn Screening and Follow-up Technical Advisory Board, by publication in the Pennsylvania Bulletin to establish changes to the lists of diseases for which newborn children must be screened and laboratory screening results reported.
• Maintain the provision that no screening test be performed if a parent or guardian dissents on the grounds that the test conflicts with a religious belief or practice.  Passed:  48-2.

House Bill 1202 (Gerber) would create the Biofuel Development and In-State Production Incentive Act containing mandated per gallon content requirements of biodiesel and cellulosic ethanol based on in-state production.  The bill would require all diesel fuel sold or offered for sale to ultimate consumers in the Commonwealth for use in on-road compression ignition engines to contain an increasing biodiesel content one year after in-state production reaches established levels as outlined in the bill.  Renewable diesel produced in the Commonwealth could be used in place of biodiesel to meet these requirements.  Similarly, non-sulfur diesel fuel derived from coal could be used as a substitute provided that the fuel's carbon emissions are fully offset.  The amount of renewable diesel which could be used would be capped at 25 percent of the volume of biodiesel necessary to meet the statewide mandated content requirements.  The biodiesel content volume standards would be effective only if the Commonwealth makes a determination that manufacturers of diesel-fueled vehicles sold in the Commonwealth have indicated publicly that they will not void or withdraw vehicle engine warranties due to the use of biodiesel blends as required by the act.

The measure would also require all gasoline sold or offered for sale to ultimate consumers in the Commonwealth to contain 10 percent cellulosic ethanol one year after in-state production of cellulosic ethanol reaches 350 million gallons.  With the approval of the Department of Agriculture, other renewable fuels could be used to meet the 10 percent cellulosic ethanol requirement, provided the fuel meets criteria specified in the act.  The 10 percent cellulosic ethanol requirement would not apply to regions of the Commonwealth where its use would violate, conflict with or otherwise exacerbate compliance with a National Ambient Air Quality State Implementation Plan.  The Department of Environmental Protection (DEP) would contract with an independent, third-party to determine the impact of the Act on the Commonwealth's ability to achieve and maintain the National Ambient Air Quality Standards.  The study would be completed no later than December 31, 2009.  DEP would be authorized to use up to $200,000 from the Clean Air Fund to pay for the study.

At least six months prior to the effective date of each mandated content requirement, the Department of Agriculture and PennDOT would certify whether there is sufficient transportation, distribution and other necessary infrastructure in the Commonwealth to meet the Act's requirements.  The agencies would be required to conduct at least three public hearings for each report.  If any report determines there is insufficient infrastructure to meet the mandated content requirements, the requirement would be delayed at least six months, or until a new report is issued which certifies that sufficient infrastructure is in place, whichever is later.  The Department of Agriculture, in consultation with DEP, could also suspend or reduce the mandated contents required by the Act if the Department determines that doing so is warranted by factors including, but not limited to, substantially increased costs to consumers or insufficient quantity of biodiesel or cellulosic ethanol.

The Department of Agriculture, in cooperation with DEP, would annually determine the name and location of each biodiesel production facility in the Commonwealth, the amount of biodiesel produced in the preceding year, and an amount and description of any financial assistance made available to the facility from the Commonwealth.  The Department of Conservation and Natural Resources (DCNR) would annually report on the effect, if any, of inspection of personal state production of cellulosic ethanol from woody biomass on forest health, condition and productivity.  The Department of Agriculture is authorized to implement and enforce the Act, and to promulgate regulations as necessary.  Passed:  46-4.

House Bill 1589 (D. Evans) is the Capital Budget Project Itemization Act of 2007-2008.  The bill would authorize incurring debt of $5,972,762,000 for public improvement projects; $173,481,000 for furniture and equipment; $954,737,000 for transportation assistance; $7,533,808,000 for redevelopment assistance; and, $96,199,000 for flood control.  The measure would also authorize capital projects to be financed from various funds as follows:  $34,353,000 for Keystone Recreation, Park, and Conservation projects; $159,705,000 for Environmental Stewardship Fund projects; $29,600,000 for General Fund public improvement projects; $79,100,000 for Fish and Boat Fund projects; $24,144,000 for Motor License Fund projects; $3,000,000 for Manufacturing Fund projects; and, $1,000,000 for ATV/Snowmobile Fund projects.  The measure would also authorize $1,000,000 in state transportation enhancement projects to be financed from current revenues from state transportation enhancement funds and $11,215,000 for State Forestry Bridge Projects to be financed by Oil Company Franchise Tax revenues. Passed:  49-1.

House Bill 1705 (Harkins) would create the Great Lakes-St. Lawrence River Basin Water Resources Compact authorizing the Governor, on behalf of the Commonwealth, to execute a compact with other Great Lake states in substantially the same form as the bill.  The legislation also signifies in advance the General Assembly's approval and ratification of the compact and enacts the compact into law.  However, the compact does not become effective until each of the other Great Lake states—Minnesota, Wisconsin, Illinois, Indiana, Michigan, Ohio, New York--enact identical concurring legislation to which Congress consents.  Each of the Great Lake states that are a party to the compact will be required to develop and maintain a water resources inventory regarding the location, type, quantity, and use of water resources in the watershed of the Great Lakes and certain parts of the St. Lawrence River.  Each state participating in the compact must also develop and implement a water conservation and efficiency program, either voluntary or mandatory, within its jurisdiction for the management and regulation of new or increased water withdrawals and consumptive uses.  However, any mandatory program governing water conservation regulations proposed by the Pennsylvania Environmental Quality Board must first be approved in advance by enactment of the General Assembly.  The compact also would require that periodic assessments be conducted of the cumulative impacts of withdrawal, diversion, and consumptive use of water from the basin.  Passed:  50-0.

House Bill 1788 (McIlvaine Smith) would amend the Public Welfare Code to require the Department to post on its Internet website information regarding the licensing and care homes.  The information, which would have to be updated at least annually, would include the following:

• The number of licensed personal care homes and number of residents residing there;
• The number of personal care homes that received an annual inspection;
• The number of licensing inspectors on a statewide and regional basis;
• The ratio of licensing staff per licensed personal care home;
• The number of personal care homes operating with a full or provisional license on a statewide and county basis;
• The number of personal care homes which the Department has closed or has taken action to close;
• A description of violations of Article X (Public Welfare Code) and an inspection summary by personal care home which lists violations;
• Financial penalties assessed against licensed personal care homes;
• Plans of the Department to ensure inspection compliance requirements; and,
• Any information the Department considers pertinent.

In addition, House Bill 1788 would:

• Extend the authorization to apply a Budget Adjustment Factor used in calculating nursing home rates to June 30, 2011;
• Revise the hospital readmission policy for Medical Assistance from seven to 14 days from the date of discharge;
• Increase the upper payment limit for physicians for inpatient hospitalization;
• Require the Pharmaceutical and Therapeutics Committee to operate in an open process and establish a drug utilization review board;
• Reenact the Managed Care Organization assessment until June 30, 2013;
• Extend the assessment on Intermediate Care Facilities for the Mentally Retarded until June 30, 2013;
• Impose a local assessment on general acute care hospitals' net patient revenue in Philadelphia to generate additional revenue to make Medical Assistance payments; and
• Make changes to the third party liability and data matching requirements to comply with the Federal Deficit Reduction Act.  Passed:  50-0.

House Bill 2313 (D. Evans) would make a number of appropriations to the Trustees of the Pennsylvania State University for the 2008-2009 Fiscal Year.  These appropriations would include:  $267,451,000 for education and general expenses; $25,594,000 for the cost of agricultural research; $30,384,000 for the cost of agricultural extension services; $454,000 to enhance the recruitment and retention of disadvantaged students; $13,103,000 for the Pennsylvania College of Technology; and, $1,389,000 for debt service related to the former Williamsport Area Community College. Passed:  49-1.

House Bill 2314 (D. Evans) would appropriate $766,000 to the Fox Chase Institute for Cancer Research in Philadelphia for the operation and maintenance of the cancer research program during the 2008-2009 Fiscal Year.  Passed:  49-1.

House Bill 2315 (D. Evans) would make a number of appropriations to the Trustees of the University of Pittsburgh for the 2008-2009 Fiscal Year.  These appropriations would include:  $166,777,000 for educational and general expenses; $435,000 for student life initiatives; $442,000 to enhance the recruitment and retention of disadvantaged students; $523,000 for the teen suicide center at the Western Psychiatric Institute and Clinic; and, $2,557,000 for rural education outreach.  Passed:  49-1.

House Bill 2316 (D. Evans) would appropriate $211,000 to the Wistar Institute in Philadelphia for the operation and maintenance of the institute during the 2008-2009 Fiscal Year.  The bill would also appropriate $91,000 to the institute for research on acquired immune deficiency syndrome.  Passed:  49-1.

House Bill 2317 (D. Evans) would make appropriations to the Trustees of Temple University for the 2008-2009 Fiscal Year.  These appropriations would include $175,062,000 for education and general expenses and $442,000 to enhance the recruitment and retention of disadvantaged students.  Passed:  47-3.

House Bill 2318 (D. Evans) would appropriate $128,000 to the Central Penn Oncology Group for the 2008-2009 Fiscal Year.  Passed:  49-1.

House Bill 2319 (D. Evans) would appropriate $58,000 to the Lancaster Cleft Palate for outpatient-inpatient treatment during the 2008-2009 Fiscal Year.  Passed:  49-1.

House Bill 2320 (D. Evans) would appropriate $14,493,000 to the Trustees of Lincoln University for the 2008-2009 Fiscal Year.  The monies would be used for educational and general expenses.  Passed:  49-1.

House Bill 2321 (D. Evans) would appropriate $413,000 to the Burn Foundation in Philadelphia for outpatient and inpatient treatment during the 2008-2009 Fiscal Year. Passed:  49-1.

House Bill 2322 (D. Evans) would appropriate $957,000 to The Children's Institute in Pittsburgh for the 2008-2009 Fiscal Year for the treatment and rehabilitation of children and young adults with disabling diseases.  Passed:  49-1.

House Bill 2323 (D. Evans) would appropriate $6,946,000 to the Trustees of Drexel University in Philadelphia for instruction and student aid during the 2008-2009 Fiscal Year. Passed:  49-1.

House Bill 2324 (D. Evans) would appropriate $445,000 to The Children's Hospital of Philadelphia for comprehensive patient care for children from birth through age 19 and for general maintenance and operation of the hospital during the 2008-2009 Fiscal Year. Passed:  49-1.

House Bill 2325 (D. Evans) would appropriate $104,000 to the Beacon Lodge Camp for services to the blind during the 2008-2009 Fiscal Year.  Passed:  49-1.

House Bill 2326 (D. Evans) would make a number of appropriations to the Trustees of the University of Pennsylvania for the 2008-2009 Fiscal Year.  These appropriations would include:  $539,000 for dental clinics; $2,012,000 for instruction in the Doctor of Medicine program; $39,647,000 for veterinary activities; $3,190,000 for the Center for Infectious Disease; and $797,000 for cardiovascular studies.  The sum of $251,000 would also be appropriated for the general maintenance and purchase of apparatus and equipment for the University of Pennsylvania Museum.  Passed:  49-1.

House Bill 2327 (D. Evans) would appropriate $251,000 to the Carnegie Museums of Pittsburgh for the Carnegie Museum of Natural History for maintenance and the purchase of apparatus, supplies and equipment during the 2008-2009 Fiscal Year.  The bill would also appropriate $251,000 for the Carnegie Science Center for the general operation of the planetarium and center. Passed:  41-9.

House Bill 2328 (D. Evans) would appropriate $3,848,000 to the Philadelphia Health and Education Corporation for the College of Medicine for the 2008-2009 Fiscal Year for instruction in the Doctor of Medicine program.  The bill would also appropriate $857,000 for the Colleges of Medicine, Public Health, Nursing and Health Professions; $152,000 for minority educational and recruitment programs; $703,000 for continued pediatric outpatient and inpatient treatment of severe physically disabling diseases; $73,000 for continued support of the handicapped children's clinic; and $997,000 for operating expenses. Passed:  49-1.

House Bill 2329 (D. Evans) would appropriate $759,000 to the Franklin Institute Science Museum in Philadelphia for maintenance of the institute during the 2008-2009 Fiscal Year.  None of the appropriation could be used in support of the institute's research laboratories.  Passed:  41-9.

House Bill 2330 (D. Evans) would appropriate $465,000 to the Academy of Natural Sciences in Philadelphia for the maintenance of the academy during the 2008-2009 Fiscal Year. Passed:  41-9.

House Bill 2331 (D. Evans) would appropriate $2,773,000 to the Thomas Jefferson University in Philadelphia for instruction in the Doctor of Medicine program during the 2008-2009 Fiscal Year.  The bill would also appropriate $2,112,000 for the general maintenance of the university, including the College of Allied Health Sciences, student aid and Children's Heart Hospital. Passed:  49-1.

House Bill 2332 (D. Evans) would appropriate $354,000 to the African-American Museum in Philadelphia for operating expenses, including maintenance and the purchase of apparatus, supplies, and equipment, during the 2008-2009 Fiscal Year. Passed:  41-9.

House Bill 2333 (D. Evans) would appropriate $45,000 to the Everhart Museum in Scranton for operating expenses, including maintenance and the purchase of apparatus, supplies, and equipment, during the 2008-2009 Fiscal Year. Passed:  41-9.

House Bill 2334 (D. Evans) would appropriate $6,523,000 to the Philadelphia College of Osteopathic Medicine for instruction in the Doctor of Osteopathy program during the 2008-2009 Fiscal Year.  Passed:  49-1.

House Bill 2335 (D. Evans) would appropriate $193,000 to the Mercer Museum in Doylestown for operating expenses, including maintenance and the purchase of apparatus, supplies, and equipment, during the 2008-2009 Fiscal Year. Passed:  41-9.

House Bill 2336 (D. Evans) would appropriate $139,000 to the Whitaker Center for Science and the Arts in Harrisburg for operating expenses, including maintenance and the purchase of apparatus, supplies, and equipment, during the 2008-2009 Fiscal Year. Passed:  41-9.

House Bill 2337 (D. Evans) would appropriate $1,679,000 to the Pennsylvania College of Optometry in Philadelphia for instruction during the 2008-2009 Fiscal Year. Passed:  49-1.

House Bill 2338 (D. Evans) would appropriate $1,204,000 to the University of the Arts in Philadelphia for instruction and student aid during the 2008-2009 Fiscal Year. Passed:  49-1.

House Bill 2340 (D. Evans) would appropriate $192,000 to the Johnson Technical Institute of Scranton for the operation and maintenance of the school during the 2008-2009 Fiscal Year. Passed:  47-3.

House Bill 2341 (D. Evans) would appropriate $70,000 to the Williamson Free School of Mechanical Trades in Delaware County for the operation and maintenance of the school during the 2008-2009 Fiscal Year.  Passed:  48-2.

House Bill 2342 (D. Evans) would appropriate $1,846,000 to the Lake Erie College of Osteopathic Medicine, Erie for instruction in the Doctor of Osteopathy program for the 2008-2009 Fiscal Year.  Passed:  49-1.

House Bill 2458 (D. Evans) would establish the Gaming Control Appropriation Act of 2008.  The bill would appropriate $58,206,000, from the State Gaming Fund and restricted accounts therein, for salaries, wages, and all necessary expenses related to gaming, as follows:

• Pennsylvania Gaming Control Board, $33,310,000;
• Pennsylvania State Police, $14,228,000;
• Department of Revenue, $9,754,000; and
• Attorney General, $914,000.

In addition, the bill would provide for a loan of $22,184,000 from the Property Tax Relief Reserve Fund for expenses of the Pennsylvania Gaming Control Board.  Passed:  46-4.

House Bill 2648 (Eachus) 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, House Bill 2648 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:  48-2.

Executive Session

Nominations to Various Boards and Commissions, including Joel S. Ario as Insurance Commissioner.  (See Attached)  Confirmed:  50-0.

Friday, July 4, 2008

Senate Bill 2 (Earll) would create the H2O PA Act.  The bill would allocate the unencumbered money in the Pennsylvania Gaming Economic Development and Tourism Fund to the Commonwealth Financing Authority (CFA) for distribution as grants for water or sewer, storm water, flood control, and high hazard unsafe dam projects.  In addition, the legislation directs the CFA to issue debt of $800 million.  The bonds would not be a debt, liability or obligation of the Commonwealth.  The term of the bonds could not exceed 30 years and no more than one-half of one percent of the bond proceeds could be used for administrative costs related to the program.  The bond proceeds and monies in the Fund would be awarded for projects over a period not to exceed six years.  A minimum of $100 million would be awarded for flood control projects and a minimum of $35 million would be awarded for high hazard unsafe dam projects.  Of the funds earmarked for dam projects, no more than $20 million could go to an eligible applicant that is the Commonwealth or an independent agency.  Debt service for the bonds would be paid from the Pennsylvania Gaming Economic Development Tourism Fund beginning in fiscal year 2009-10.  Amounts not required for debt service could be used for additional H2O PA projects during the six year period.

Eligible grant projects would have to be $500,000 or more and a single project could not receive more than $20 million in program funding.  Eligible applicants would be required to provide a local match of 50 percent of the amount provided by the CFA for sewer and water projects.  The local match for high hazard unsafe dams would be 25 percent of the amount awarded by the CFA.  A minimum of 50 percent of the grants approved by the CFA would be awarded to regional water and sewer or flood control projects or to projects that consolidate two or more systems.  Priority would also be given to eligible applicants that are subject to a federal or state court or agency order, consent decree, or new permit discharge requirements imposed after January 1, 2007.  The receipt of a loan or grant from PennVest would not disqualify an applicant from eligibility for a grant under this act.

The CFA would be required to publicize the program in the Pennsylvania Bulletin and on the Department of Community and Economic Development's website, in addition to providing written notification of the program to the local government associations listed in the bill.  The CFA would also be required to publish program guidelines in the Pennsylvania Bulletin and to consult with the Department of Environmental Protection and/or PennVest in the evaluation of project applications and the award of grants.  PennVest would be required to review all applications related to water and sewer projects and the Department of Environmental Protection would be required to review applications related to flood control and unsafe dam projects.  The CFA would be required to provide an annual report detailing all grants awarded during the previous fiscal year including the identity of the grantee and a description of each grant.  The Department of Environmental Protection would be required to provide a similar annual report detailing how the programs authorized under H2O PA are improving the health and safety of Pennsylvania citizens and contrasting the impact of the H2O PA programs with that of other similar Commonwealth programs.

No grants could be distributed for any project located in a city or county of the first or second class for a ten-year period following the initial deposits in the Gaming Economic Development and Tourism Fund under 4 Pa.C.S. §1407(c).  Following the allocation of all proceeds from the bonds, all money in the Fund, except for that required for debt service, would be available for distribution under 4 Pa.C.S. §1407.  However, no money could be authorized or distributed for any project within a city or county of the first or second class, other than those projects described in the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007, until such time as an amount equal to $750 million has been authorized and distributed from the Fund for projects outside a city or county of the first or second class.  Concurrence in House Amendments:  50-0.

Senate Bill 385 (Corman) would amend the Public Safety Emergency Telephone Act to include interconnected Voice over Internet Protocol (VoIP) service.  The bill would establish a $1 per month fee to be collected by VoIP service providers for each telephone number or successor dialing protocol assigned by a provider to a VoIP service customer.  The fee would have to be stated separately in the customer's billing and collected apart from, and in addition to, any fee levied by the VoIP provider for the provision of 911 services or E-911 services.  Fee provisions are included for customers who purchase multiple lines.  The fees would not be subject to taxation or considered revenue of the VoIP provider for any purpose.  The VoIP provider could remit the fees collected either directly to a county or to the State Treasurer for distribution to the counties.  The VoIP provider would be permitted to retain two percent of total fees collected for administrative costs if the fees are remitted directly to a county and one percent if remitted to the State Treasurer.  A VoIP provider would have no obligation to take any legal action to enforce the collection of the fees.  Fees remitted to the State Treasurer would be placed in the VoIP 911 Emergency Services Fund created in the bill.  Monies in the fund would be appropriated to the Pennsylvania Emergency Management Agency (PEMA) to make quarterly appropriations from the account to each county in an amount equal to the amount of fees collected from VoIP services customers in that county.  The funds could be used by the counties to assist with the implementation of any PEMA-approved county 911 plan.  PEMA would be permitted to retain up to one percent of the fees for costs incurred in administering these provisions.  Concurrence in House Amendments:  50-0.

Senate Bill 1297 (Browne) would amend the Fiscal Code to provide for further regulation of the Department of State Treasurer as well as to provide substantive budget implementation language.  Among other provisions relating to the Department of the State Treasurer, this bill would:

• Extend the sunset date for the State Treasurer's prudent person investment authority from December 31, 2008 to December 31, 2010, authorizing the Treasurer to invest in long term instruments, including equity securities and mutual funds, thereby permitting the Commonwealth to realize higher returns on investments.
• Require the State Treasurer to maintain an investment policy statement to be updated annually and posted on the Department's publicly-accessible website.
• Require the State Treasurer to provide a comprehensive annual investment report on investment activity by November 30, 2008 and annually thereafter to the Governor, Appropriations Committee chairs, and Finance Committee chairs.
• Prohibit a person who provides financial services to the Treasury Department from benefiting directly or indirectly from the investment actions of the Treasury Department except as provided in the contract for the provision of those services, with a violation of this provision constituting a misdemeanor of the third degree.
• Require the Auditor General to perform an annual audit of the bonds, stocks, mortgages, or other securities, that are deposited with the State Treasurer.  The Auditor General could employ outside consultants or other experts as deemed advisable for this purpose.
• Clarify when the Commonwealth Court is acting in an appellate capacity and when it is acting in its original jurisdiction capacity regarding the appeal of a determination of a claim to unclaimed property or inaction by the Department with regard to the same.

Budget Implementation Language

Among numerous other provisions, this bill would:

• Require that no amount of surplus from the FY 2007-2008 General Fund may be deposited into the Budget Stabilization Reserve Fund (the Rainy Day Fund).
• Establish a special fund known as the Hazardous Sites Cleanup Fund.
• (Education)-Provide that appropriations to institutions of higher learning for expenses of deaf or blind students will not exceed $500 per student.
• (Health)-Require funds for arthritis outreach and education to be equitably distributed to western, central and eastern regions based on the ratio of population served in each region to the total population of the Commonwealth.
• (Public Welfare)-Stipulate that pharmaceutical services will be considered a covered benefit for recipients who are eligible for such services and whose care is managed by contracts between the Department and managed care contractors.  If the Department elects to bid a contract for FY2009-2010 that does not include pharmaceutical services as a covered benefit, then the Secretary will notify the Appropriation Committees and additionally bid a new contract covering such services.
• (State Police)-Prohibit the closure of a barracks during FY 2008-2009 without first conducting a public hearing and providing 30 days prior written published notice.
• (PEMA)-Require semiannual reports of all grants awarded from federal disaster assistance or relief funds, homeland security and defense funds, avian flu/pandemic preparedness or other public health emergency funds to the Appropriations Committees.
• (Insurance)-Establish a restricted receipts account in the Tobacco Settlement Fund to be known as the Community Health Reinvestment Restricted Account to receive funds from the Blues under the 2005 contract between the Commonwealth and various Blues entities, with such funds to be subsequently appropriated to the Department.
• (State Gaming Fund)-Require the Gaming Control Board to assess slot machine licensees for repayment of funds loaned to the Board from the State Gaming Fund for its operational expenses.  The assessment would occur at such time when a minimum of eleven slot licenses have been issued and eleven licensed gaming entities are operational.  Until the loan to the Gaming Board is repaid, the Secretary of the Budget is authorized to provide property tax relief, regardless of whether the amount deposited is less than required.  If on January 1, 2011, the Secretary determines that the moneys in the Property Tax Relief Reserve Fund are needed for property tax relief, then the Board would be required to immediately assess each slot machine licensee for repayment of the outstanding loans in an amount that is proportional to each slot machine licensee's gross terminal revenues.  Concurrence in House Amendments, as Amended:  50-0.

Senate Bill 1332 (Regola) would amend Title 53 (Municipalities Generally) to provide the form for oaths of office.  The various municipal codes require that an oath be taken before an elected official assumes office, but no code provides guidance on the actual form of the oath.  This bill would provide that when an elected or appointed official of a municipality is required to take an oath of office that the individual must swear or affirm that he will support, obey and defend the Constitution of the United States and the Constitution of this Commonwealth and that he will discharge the duties of his office with fidelity.

In addition, the bill would repeal the Hotel Tax provisions currently contained in the Second Class County Code, reauthorizing them in Title 53.  Contracts, obligations, and collective bargaining agreements entered into under the Second Class County Code would not be affected nor impaired by the repeal of that section of law.  A new section of law would be added to address cases where a convention center or exhibition hall funded with hotel tax revenue discontinues operation.  In those cases, the municipality in which the center is located would continue to collect the tax for a period of three years.  During this period, the municipality could use revenue from the tax for debt service on the construction, reconstruction, maintenance or operation of a convention center or an exhibition hall in the municipality.  If no convention center or exhibition hall is operating or under construction, then the municipality would hold the revenue in a special fund dedicated for the construction of a convention center or exhibition hall.  If, at the end of the three year period, no convention center or exhibition hall is in operation or substantially completed, then the revenue from the tax would be deposited by the county in the economic development, community infrastructure and tourism fund maintained by the county.  Concurrence in House Amendments:  48-2.

Senate Bill 1341 (Musto) would create the Water and Sewer Systems Assistance Act.  The bill would authorize a ballot question for the incurring of $400 million of indebtedness for grants and loans to municipalities and public utilities for water and sewer, storm water, nonpoint source, and nutrient credit projects.  The ballot question would be submitted to the electors at the next primary, municipal or general election.  The proceeds of the borrowing would be deposited in a special fund to be used by the Pennsylvania Infrastructure Investment Authority (PennVest) for the grants and loans.  The borrowing would be issued in increments of not more than $150 million every year over a three-year period.  The aggregate amount of grants could not exceed $200 million.  The bill would establish maximum grant amounts for individual projects based on the capacity of the system.  By a vote of at least nine of its members, the PennVest Board could authorize a grant in excess of these limitations to comprehensive projects providing or proposing consolidation service to a region encompassing all or parts of two or more municipalities.  The proceeds of the bonds could be used to assist a public utility to acquire a small sewer or water utility if the Pennsylvania Public Utility Commission (PUC) has determined that the small utility has provide unsafe, inadequate or unreasonable service and the PUC has assessed civil penalties against it.  The bill specifically states that nothing in the Act could prohibit the use of funds allocated under the act for projects involving the purchase or trading of nutrient credits.  Concurrence in House Amendments:  50-0.

Senate Bill 1348 (Armstrong) would appropriate $52,162,000 to the Public Utility Commission (PUC) for the operation of the commission for the 2008-2009 Fiscal Year.  The bill would also appropriate $630,000 in federal funds to the PUC to enforce the regulations of the Natural Gas Pipeline Safety Act and $1,934,000 in federal funds for motor carrier safety.  Concurrence in House Amendments, as Amended:  50-0.

Senate Bill 1389 (LaValle) is the General Appropriation Act of 2008, which contains the proposed $28.26 billion state spending plan for the 2008-2009 Fiscal Year.  Notably, the bill holds the line on state spending while ensuring the continuation of essential services and programs.  The $28.2 billion in General Fund spending is nearly $150 million less than spending proposed by the Administration and represents an increase of 3.98 percent, lower than the 4.4 percent increase in inflation.  No new or increased taxes or fees were necessary to fund the plan nor was it necessary to borrow funds from the Rainy Day Fund although contributions to that fund were suspended for the current fiscal year.  Among other highlights, the measure would:

• Maintain the scheduled reduction of the Capital Stock and Franchise Tax saving employers an estimated $40 million in 2008-2009.
• Reduce the Legislature's budget by 1.3 percent.
• Reduce the Judiciary's budget by 1.3 percent.
• Include an overall 5.5 percent increase ($274.7 million) in basic education funding to a total of $5.2 billion, ensuring that every Pennsylvania school district will receive a minimum three percent increase in its basic subsidy--the largest increase in basic education funding in 20 years.
• Increase special education funding by $16.8 million for a total of $1.027 billion.
• Provide a one percent COLA ($33.4 million) for human services providers.
• Provide a one percent COLA ($16.5 million) for nursing homes.
• Restore state support for essential services and programs such as neonatal hospitals, burn centers and critical care access hospitals.  Conference Committee Report Adopted:  49-1.

Senate Resolution 243 (Dinniman) directs the Joint State Government Commission to conduct a study to examine state law and school policies and practices regarding the notification of parents when a student violates a public or private institution of higher education's drug and alcohol policy.  Adopted:  50-0.

Senate Resolution 363 (Mellow) directs the Legislative Budget and Finance Committee in cooperation with the Department of Community and Economic Development and the Local Government Commission to conduct a study of the impact that tax-exempt real properties have on the fiscal health of Pennsylvania's municipalities.  Adopted by Voice Vote.

Senate Resolution 364 (Tartaglione) observes September 15 through October 15, 2008 as "Hispanic Heritage Month" in Pennsylvania.  Adopted by Voice Vote.

Senate Resolution 365 (Mellow) congratulates Senator Vincent Joseph Fumo with much fondness, love and good cheer for a Senate career of great commitment, passion, accomplishment, excellence and honor.  Adopted by Voice Vote.

Senate Resolution 366 (Kasunic) designates September 11, 2008 as "Pennsylvania Day of Remembrance" of the events of September 11, 2001.  Adopted by Voice Vote.

House Bill 4 (O'Brien) would amend Title 42 (Judiciary and Judicial Procedure) and Title 44 (Law and Justice) of the Pennsylvania Consolidated Statutes to make a number of changes.  Title 42 would be amended to add a section providing for a central or regional booking fee of no more than $200.  The bill specifies that a person could be required to pay a central or regional booking fee if he or she is placed on probation without verdict pursuant to the Controlled Substance, Drug, Device and Cosmetic Act; or receives accelerated rehabilitative disposition for, pleads guilty or nolo contendere to, or is convicted of the crimes enumerated in the legislation.  Any booking fee collected would be paid to the county and deposited into a special central or regional booking center fund to be used for the implementation of a countywide booking center plan and the start-up, operation or maintenance of a central or regional booking center. 

A countywide booking center plan would have to be adopted by the criminal justice advisory board of the county, or the district attorney, local police and municipalities within the county, before the fee could be imposed.  The countywide booking center plan would include a comprehensive strategy to improve the collection, transfer and maintenance of electronic offender identification information and ensure coordination of all criminal justice agencies within the county.  Funds could not be dispersed until a plan is adopted and no more than five percent of the funds could be used for administrative purposes.  The legislation would charge the Pennsylvania Commission on Crime and Delinquency with the responsibility of adopting guidelines related to technology standards for the collection and transmission of offenders' identification and certifying that the county plans comply with these standards

The bill would also add the Secretary of Corrections, the victim advocate appointed under the Crime Victim Act and the chairman of the Parole Board as ex-officio non-voting members of the Pennsylvania Commission on Sentencing (PCS) and expand the duties of the PCS to include the collection and dissemination of information relating to parole and re-parole decisions by the Parole Board or other paroling authorities. 

Section 4 of the legislation would mandate that the PCS adopt guidelines for re-sentencing, for parole and re-parole, and for recommitment ranges following revocation of parole by the Parole Board.  Resentencing guidelines would take into account factors considered in adopting the sentencing guidelines, the seriousness of the violation and the rehabilitative needs of the defendant.  Parole guidelines would do all of the following:  give primary consideration to the protection of the public and public safety; provide for due consideration of victim input; be designed to encourage inmates and parolees to conduct themselves in accordance with conditions and rules; be designed to encourage inmates and parolees to participate in programs effective in reducing recidivism; provide for prioritization of resources for inmates posing the greatest risk to public safety; and use validated risk assessment tools.  Recommitment ranges would take into account the seriousness of the initial offense, the seriousness of the violation and the rehabilitative needs of the defendant.  The Parole Board could deviate from the recommitment ranges but must submit a written statement of the reasons for the deviation to the PCS.  The bill would also mandate the completion of a study of needed and available resources prior to the adoption of changes to guidelines for sentencing, resentencing and parole, and recommitment ranges.

The measure specifies that minimum sentences could not be reduced through parole prior to the expiration of the minimum sentence unless otherwise authorized by the new section, or other law.  Except under certain circumstances, the court must state at the time of sentencing whether the defendant is eligible for release pursuant to an approved reentry plan prior to the expiration of the minimum sentence.  Before a court paroles a defendant prior to the expiration of the minimum sentence, the court must provide at least ten days' written notice and an opportunity to be heard to the prosecutor.  Also, at time of sentencing, the court would consider if a defendant is eligible for a recidivism risk reduction incentive (RRRI) sentence.  If a defendant is eligible, a court would impose a RRRI minimum sentence in addition to the ordinary maximum/minimum sentence.

The bill also addresses the place of confinement in relation to the sentence imposed.  Three or more years after the effective date of the legislation, individuals would be committed as follows:  those sentenced to maximum terms of five or