AGREEMENT IN PRINCIPLE REACHED ON STATE BUDGET

Senate President Pro Tempore Joe Scarnati (R-Jefferson) said Monday he is optimistic and confident in the passage of the 2008-2009 final state budget.  After many days and weeks of intense negotiation, legislative leaders and the governor believe they have reached an agreement in principle.

“While we do continue to meet on many specifics, a deal is in place that contains a budget with no tax increases, no new taxes, and no excessive spending,” Senator Scarnati stated.  “Our objectives were met and I now believe that Pennsylvania will have a budget that recognizes the fiscal realities of working families and job creators.”

Senator Scarnati noted that negotiations throughout were open, up front, and all parties involved worked diligently to find common ground on issues such as spending, energy, and economic stimulus.

He also pointed out that there are about $235 million in tax cuts for job creators to assist them in improving the job climate in Pennsylvania.  In addition to the tax cuts, Senator Scarnati was satisfied that all parties acknowledged the need to address the road and bridge problem currently facing the commonwealth.
 Sen. Scarnati
 Senate Majority Leader Dominic Pileggi

SENATE APPROVES INSURANCE BILL WITH AUTISM COVERAGE

The Senate on Sunday approved legislation to require insurance companies to provide coverage for autism services and colorectal cancer screening and to provide state oversight of proposed mergers involving non-profit health insurance companies.

House Bill 1150 was amended by the Senate Banking and Insurance Committee, chaired by Sen. Don White (R-Indiana). It would ensure the state has regulatory authority over the proposed merger of Highmark and Independence Blue Cross, the two largest health care insurance companies in the commonwealth.

While the Insurance Department would hold final approval -- or denial -- authority for a merger of non-profit health insurance companies, the bill empowers the Senate Banking and Insurance Committee and the House Insurance Committee to receive and review all filings submitted to the department and to develop written comments and recommendations on the merger filings. The amended bill was returned to the House of Representatives for consideration.

The bill also would require insurers to provide coverage of autism services and colorectal cancer screenings. The national advocacy group Autism Speaks said the Senate amendments, which were drafted after lengthy negotiations, represent what would be “the strongest autism insurance mandate yet achieved in the nation.”
 Sen. D. White
 Sen. Jane Orie

SENATE AGAIN PASSES COMPREHENSIVE MINE SAFETY BILL

A comprehensive mine safety bill that will provide for the first rewrite of Pennsylvania’s mining laws in nearly half a century was approved Monday by the Senate.

Senate Bill 949 was approved by the Senate Environmental Resources and Energy Committee, chaired by Sen. Mary Jo White (R-Venango), in January and the full Senate in February. However, the measure was amended in the House of Representatives and returned.

Senate Bill 949 would create a new Board of Coal Mine Safety to keep Pennsylvania’s mine safety standards regularly updated. The seven member board will be chaired by the Secretary of Environmental Protection, with equal representation from mine operators and mine workers.

The legislation provides for greater legal responsibility for operators to ensure mine safety, and enables the state to establish a central database of mine maps. It also addresses responses to accidents, requiring mine operators to notify DEP within 15 minutes of an accident, and updates ventilation and roof support requirements.

MORTGAGE REFORM BILLS RECEIVE FINAL LEGISLATIVE APPROVAL

Four bills introduced by Sen. Pat Browne (R-Lehigh) targeting predatory and other questionable mortgage lending practices in Pennsylvania were approved by the General Assembly and await enactment into law.

The bulk of the package was approved by the Senate in March and amended in the House of Representatives. The Senate concurred in the amendments June 29.

Senator Browne said: “While Pennsylvania has fared better than many states as a result of the collapse of the housing market, we have many, many families suffering as a result of predatory lending and other questionable mortgage practices in the past. It is incumbent upon us to adjust our banking codes and other codes to try to better protect consumers in one of their most important decisions, and that is taking on a mortgage to secure a primary residence.”

For a list of mortgage reform bills, please see In the Spotlight, below.

SENATE ACTS TO PROTECT PRESCRIPTION BENEFITS

The Senate passed legislation Saturday that would prevent PACE and PACENET enrollees from losing prescription benefits due to cost of living adjustments.

Senate Bill 4, sponsored by Sen. James Rhoades (R-Schuylkill), would allow any individual enrolled in PACE or PACENET to remain eligible for their program if they exceed the maximum income limit due solely to a Social Security cost of living adjustment (COLA).

Under Senate Bill 4, the exemption for PACENET would be retroactive to December 31, 2007, when a previous exemption expired. The exemption would begin for PACE recipients on December 31, 2008. The exemption would be in effect until December 31, 2010.  Senate Bill 4 was sent to the House of Representatives for consideration.

SENATE VOTES TO ALLOW TRANSPORTATION PUBLIC PRIVATE PARTNERSHIPS

Legislation that would enable Pennsylvania to use alternative funding mechanisms to fund transportation projects was approved by the Senate on June 27.

Senate Bill 1158, sponsored by Senate Transportation Committee Chairman Roger Madigan (R-Bradford), would allow the commonwealth and regional transportation authorities to enter into agreements with the private sector to design, construct, manage or maintain new or expanded transportation options through Public Private Partnerships (P3s).

The proposal is focused on creating new capacity and specifically restricts the leasing of the Pennsylvania Turnpike from consideration unless authorized by a separate act of the General Assembly.

Senate Bill 1158 now goes to the House of Representatives for consideration. If the legislation is approved by the General Assembly, Pennsylvania would join 22 other states that have already authorized the use of P3s. The partnerships authorize the use of private capital or private management expertise on transportation projects.
 

SENATE MOVES TO IMPROVE PROTECTION OF PERSONAL INFORMATION

Legislation that would require government agencies to report data breaches involving personal information within one week was approved unanimously by the Senate on June 26.

Senate Bill 1266 was drafted by Senate Majority Leader Dominic Pileggi (R-Delaware) with input from Attorney General Tom Corbett. Senator Pileggi introduced the measure after three thefts of state-owned computers containing personal information were reported in the second half of 2007. The stolen computers contained the personal information of nearly 400,000 individuals, but the public was not notified of those thefts until two to three weeks after the fact.

An existing law requires that the public be notified of such data breaches “without unreasonable delay.” Among other revisions, Senate Bill 1266 would specify a one-week notification period for any breaches involving state or local government. Senate Bill 1266 was sent to the House of Representatives for consideration.

BROWNFIELDS REDEVELOPMENT ACT APPROVED BY SENATE

The Senate on June 24 approved the Brownfields Redevelopment Act, designed to remediate abandoned sites and return them to a source of jobs and tax revenue for Pennsylvania communities.

Senate Bill 1062, sponsored by Sen. Rob Wonderling (R-Montgomery), creates a program for reimbursing developers for up to 75 percent of the costs associated with the remediation of brownfields sites including sites impacted by mining activity. Remediation must be completed in accordance with Pennsylvania’s award-winning Land Recycling Program or a cleanup plan that has been approved by the state Department of Environmental Protection.

The legislation offers a new source of brownfields funding while being revenue-neutral with regard to the state budget. Reimbursement to the developer is contingent on completion of the remediation, performance of the project, and generation of new tax revenue.

SENATE ACTS TO ENSURE HOME ENERGY FUNDS ARE PROPERLY ALLOCATED

With fuel costs at record levels, the Senate approved legislation June 23 that would provide essential reforms to Pennsylvania’s Low-Income Home Energy Assistance, or LIHEAP program.

Senate Bill 352, sponsored by Sen. Bob Robbins (R-Mercer), would make needed changes to maximize the benefits for eligible low-income households and ensure that funding is allocated in a timely and expedited fashion.              

A 2007 Auditor General report found inadequate policies and procedures, insufficient supervision, and inadequate oversight resulted in fraud and abuse in all six counties -- Philadelphia, Allegheny, Lancaster, Lehigh, Perry and York -- examined over a six-year period.

Senate Bill 352 provides for additional oversight and directs the Department of Public Welfare to take appropriate actions if it discovers any false, misleading or inaccurate statements by applicants, participating energy vendors or state employees. The bill was sent to the House of Representatives for consideration.

For more on Senate Bill 352, please see Fast Facts, below.

SEN. FOLMER'S REFORM BILLS APPROVED BY SENATE

Two key pieces of Sen. Mike Folmer's (R-Lebanon) reform agenda were approved by the Senate.

The Taxpayer-Funded Advertising Transparency Act (Senate Bill 1015) was unanimously approved by the Senate and moved to the House of Representatives for consideration. The legislation requires all paid advertising by state government to bear the following disclaimer: "Paid for with Pennsylvania taxpayer dollars."

It is estimated that state government annually spends tens of millions of taxpayer dollars advertising itself, a practice which Sen. Folmer said needs more accountability and transparency.

The Senate also unanimously approved Sen. Folmer's legislation (SB 1499) reining in the use of state vehicles. Only state employees who drive more than 1,200 miles a month (excluding personal usage) would be eligible to use a state-owned car. Additionally, employees granted the privilege of using a state-owned vehicle would be required to maintain a detailed monthly mileage log, and those logs would have to be posted on the Department of General Services’ web site and accessible to the general public and news media (with undercover law enforcement agents being excluded from this requirement).
 

SENATE APPROVES COAL BED METHANE WELL DISPUTE ACT

The Senate approved legislation June 26 to establish a special review board to arbitrate coal bed methane well disputes.

Currently, disputes between surface land owners and the holders of mineral rights for those properties are often resolved in county courts of common pleas.

Senate Bill 1330, sponsored by Sen. Don White (R-Indiana), calls for the creation of a three-member Coal Bed Methane Review Board to consider objections and attempt to reach an agreement on issues such as the location of coal bed methane wells and/or access roads. The bill now goes to the House of Representatives for consideration.

SEN. PICCOLA ANNOUNCES LEGISLATION ESTABLISHING TIMELINE FOR FUTURE BUDGETS

Sen. Jeffrey Piccola (R-Dauphin) announced plans June 26 to introduce legislation establishing a timeline for all future state budgets, by proposing sanctions to be embedded in the Pennsylvania Constitution and Administrative Code.

Under the proposal, the House of Representatives would be required to pass a General Appropriations bill by June 1, and the Senate would be required to pass the same bill in some form by June 15.  If necessary, no later than June 20, a special Conference Committee consisting of six Representatives and six Senators would be created in accordance with the rules of the House and the Senate to deliberate on the General Appropriations bill.

A final General Appropriations bill would then be presented to the governor no later than June 30.  If any of the deadlines are not met (June 1, June 15, June 20, or June 30), the daily pay for each member of the offending chamber, or chambers, would be docked until appropriate action is taken.