WEEKLY SESSION NOTES
Senate republican policy committee – Joe conti, chairman

Monday, March 29, 2004

Senate Resolution 209 (Corman) congratulates the Pennsylvania State University on the commencement of its sesquicentennial celebration and reaffirms its designation as Pennsylvania's land-grant university.  Adopted by Voice Vote. 

Senate Resolution 222 (Schwartz) designates April 20, 2004 as "Love-A-Teen Day" in Pennsylvania.  Adopted by Voice Vote. 

House Bill 1597 (Crahalla) would repeal Act 28 of 1870, which provides for an obsolete and archaic evaluation and approval process for the drainage of swampy land and wetlands belonging to several property owners.  Passed:  50-0.

Executive Session

Nominations to Various Boards and Commissions.  (See Attached)  Confirmed:  50-0.

 Tuesday, March 30, 2004 

Senate Resolution 223 (Conti) designates the week of May 2 through 8, 2004 as "Pennsylvania Wine Week."  Adopted by Voice Vote. 

Senate Resolution 224 (Conti) commemorates the 70th anniversary of the Pennsylvania Liquor Control Board.  Adopted by Voice Vote. 

Senate Resolution 225 (Madigan) observes April 7, 2004 as "World Health Day" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 226 (Stack) recognizes the month of April 2004 as "Autism Awareness Month" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 227 (Madigan) designates the week of April 4, 2004 as "Rural Road Safety Week" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 228 (D. White) designates the week of April 18 through 24, 2004 as "Pennsylvania One Call System Week."  Adopted by Voice Vote. 

House Bill 506 (Reichley) would amend Section 4107 of the Crimes Code to add language to clarify that a person commits the offense of deceptive or fraudulent business practices if the person "intentionally, knowingly, or recklessly" engages in any of the actions outlined in the section.  The changes would also specify that an individual may be charged with the offense of deceptive or fraudulent business practices if the individual "induces others to rely on" false or misleading written statements for the purpose of obtaining property or credit, promoting the sale of securities, or to induce an investor to invest in a business venture.  Passed:  50-0. 

House Bill 1206 (Maher) would amend the Local Tax Enabling Act to clarify that the amendments made to the act by Act 166 of 2002 would apply to taxable years beginning after December 31, 2002.  (Act 166 of 2002 increased the low-income exemption from $5,000 to $10,000 and tied the definitions of "earned income" and "net profits" to relevant provisions of the Tax Reform Code.)  The bill would also exempt all active duty military pay from the local earned income tax.  Concurrence in House Amendments to Senate Amendments:  50-0. 

Executive Session 

Nominations to Various Boards and Commissions.  (See Attached)  Confirmed:  50-0. 

Wednesday, March 31, 2004

Senate Bill 10 (Brightbill) would establish the Infrastructure and Facilities Improvement Program to provide for new state-level tax increment financing options.  The program, to be administered by the Department of Community and Economic Development, would provide multiyear grants to issuing authorities toward the payment of debt service on projects.  Financial assistance could not exceed 10 years for industrial enterprises, retail enterprises or manufacturers, or 20 years for hospitals, convention centers or hotel establishments.  The project user must issue a firm commitment that the project will be used upon its completion and a party other than the Commonwealth must be responsible for repayment of the project's debt.  In addition, a project must not pledge the full faith and credit of the Commonwealth in financing arrangements and must create additional full-time jobs and preserve existing full-time jobs.   

Tax revenue generated from the project must be greater than or equal to the aggregate amount of the grants during the initial two years.  For the third year, anticipated revenues must be greater than or equal to the aggregate amount of the grants for that year.  For the succeeding two year period, anticipated revenues are to be greater than or equal to the aggregate amount of the grants during that two-year time period.

 The project user must submit financial information prepared, or reported on, by an independent certified public accountant to the Department.  If the project is solely for infrastructure, a portion of the project must be funded under Act 113 of 1990, known as the Tax Increment Financing Act.  The Secretary of the Budget would establish a maximum annual amount for the grant.  Grants awarded to an applicant must be linked to the incremental growth in revenues realized by the Commonwealth from the sales tax, the hotel occupancy tax, and the Pennsylvania employer withholding tax.  Concurrence in House Amendments:  50-0.

Senate Bill 305 (Waugh) would amend the Vehicle Code to require any male who applies for a learner's permit, identification card, driver's license or renewal, and who is at least 18 years of age, but less than 26, to comply with the requirements of section 3 of the Military Selective Service Act.  The applicant's signature on the application would serve as an indication that he has already registered with the Selective Service System or consents to registration.  The Department of Transportation would be required to include a notice about these requirements on the application and forward to the Selective Service System the necessary personal information of the applicants required to comply.  Within 60 days of forwarding the information, the Department would have to notify the applicant in writing that the information has been forwarded.  The Department would be required to obtain reimbursement of the costs it incurs from the Selective Service System.  If it is unable to obtain reimbursement, the Department would not have to provide notice to the applicant.  Passed:  47-3. 

Senate Bill 799 (Conti) would require the Pennsylvania State Police to provide criminal background reports requested by the State Harness Racing Commission or the State Horse Racing Commission for applicants requesting licensure.  The commission could exempt applicants for positions not related to the care or training of horses, racing wagering, security or the management of licensed corporations from this requirement.  Passed:  50-0. 

Senate Bill 1026 (LaValle) would amend Title 64 (Public Authorities and Quasi-Public Corporations) to establish a new independent authority known as the Commonwealth Financing Authority governed by a seven member board made up of the Secretaries of Community and Economic Development, Budget and Banking and four appointments made by the Senate and House.  The Governor would appoint a chairperson for the Board.  Legislative appointees could not be members of the General Assembly or staff of a member of the General Assembly.  Consent of at least five members of the Board, with at least four of the consenting members being the legislative appointees, would be necessary to take certain actions on behalf of the Authority.  These actions include:  adopting bylaws; hiring professionals; authorizing bonds; approving projects and contracts; and, adopting guidelines relating to programs.  A majority of the board would be necessary to take any other action on behalf of the authority. 

The Department of Community and Economic Development (DCED) would provide administrative services and staff to the authority and the board.  The board would reimburse the department for these services.  The authority would have the ability to borrow money, issue bonds, obtain lines and letters of credit and incur debt and administer certain economic stimulus programs created in the legislation.  There is a cap of $250 million per year over four years for the issuance of bonds to finance projects under this act.  The amounts found in the following program descriptions are the maximum per program over those four years. 

  • First Industries: $150 million to provide loans, grants and loan guarantees for projects related to the development of tourism and agriculture, with two-thirds devoted to agriculture.  Planning grants are authorized up to a total of $10 million.
     

  • Business In Our Sites: $300 million to prepare industrial-business sites for future development.  Municipalities, authorities and other public agencies could apply for site preparation loans or grants, while a private developer could apply for a loan under this program.  Eligible site preparation costs include environmental assessment and remediation, demolition and infrastructure.  Grants of up to $5 million require a 50 percent match.  Planning grants are authorized up to a total of $10 million.
     

  • Building Pennsylvania: $150 million to provide loans to fund managers for investment in real estate projects – industrial, commercial, technology and multiuse.  At least 50 percent of the funds allocated must be used in areas of the Commonwealth other than cities of the first or second class.
     
  • Second Stage Loans: $50 million to provide loan guarantees to commercial lending institutions that make loans to life sciences, advanced technology or manufacturing businesses that have been in existence for at least 2 years but not more than 7 years, limited to $1 million per loan with a 50 percent match.
     
  • Local Tax Increment Financing Guarantee: $100 million to provide guarantees for tax increment financing bonds or other indebtedness issued in accordance with the Tax Increment Financing Act.  Existing authorities could apply to the authority requesting a guarantee of bonds or other indebtedness.  No guarantee could exceed $5 million per project.
     
  • New Pennsylvania Venture Guarantee: Up to $250 million to provide guarantees to venture capital partnerships for investments, where the partnerships are required to provide 50 percent of the total investment amounts in Pennsylvania companies.  The State Employees' Retirement System and the Public School Employees' Retirement System could become limited partners with guarantees of up to $50 million.
     
  • New Pennsylvania Venture Capital Investment: $60 million to provide loans to venture capital partnerships for investment in Pennsylvania-related companies.  At least 50 percent of the funds allocated under this program must be invested in businesses located outside of the Philadelphia Metropolitan Statistical Area, and outside of counties with a population exceeding 1 million.

The measure would also limit indebtedness incurred for the Machinery and Equipment Loan Fund to $75 million in aggregate.  Additional language would clarify that funds appropriated to the Department of Community and Economic Development for the prevention of military base realignment and closure must all be used for either one of two purposes: (1) development of a statewide strategy or (2) grants for economic impact studies, infrastructure needs assessment, identification of job-training needs or other purposes related to the potential for military base closures.  Grants would be awarded by the Base Retention and Conversion Pennsylvania Action Committee.  Concurrence in House Amendments:  50-0. 

Senate Resolution 212 (Orie) directs the Legislative Budget and Finance Committee to undertake an expanded study of the Urban Redevelopment Authority of Pittsburgh.  Adopted:  48-2. 

Senate Resolution 230 (Orie) designates the month of April 2004 as "Child Abuse Prevention Month" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 231 (Orie) designates April 6, 2004 as "Tartan Day" in Pennsylvania.  Adopted by Voice Vote.

Senate Resolution 232 (Orie) designates the month of April 2004 as "Alcohol Awareness Month" in Pennsylvania.  Adopted by Voice Vote. 

Senate Resolution 233 (Stack) designates the week of April 2 through 9, 2004 as "Sleep Awareness Week" and April 14, 2004 as "Sleep Apnea Awareness Day" in Pennsylvania.  Adopted by Voice Vote.

Senate Resolution 234 (Mowery) designates the month of April 2004 as "Volunteer Month" in Pennsylvania.  Adopted by Voice Vote. 

House Bill 1996 (Adolph) would amend Title 62 (Procurement) to add provisions relating to commodity sector bundling and guaranteed energy savings and contracts.  The measure would require the Department of General Services, whenever it prepares to issue a request for proposal that would have the effect of bundling a commodity sector, to notify all vendors by first class mail and publish the notification in the Pennsylvania Bulletin of its intent to bundle the commodity sector at least 120 days prior to the issuance of the request for proposal.  The notification would have to include the draft request for proposal and a solicitation for comments.  Comments would be accepted up to 60 days after the notice is mailed or published, whichever is later.  Within 30 days of the end of the comment period, the Department would be required to prepare a detailed summary of the comments and make it available for public inspection, including posting it on Department's publicly accessible world wide web site.  No sooner than 30 days after the summary is made available to the public, the Department must publish a finalized request for proposal in the Pennsylvania Bulletin.  A definition of "bundling a commodity sector" is included.  The other provisions included in the bill would expand the number of energy conservation measures eligible to be included as part of a guaranteed energy savings contract.  The changes would also increase the allowable payback period for these measures from 10 to 15 years.  Passed:  29-21.