Monday, June 9, 2008 

Senate Bill 1314 (Baker) would amend the Tax Reform Code of 1971 to authorize a Volunteer Responder Retention and Recruitment Tax Credit against the Personal Income Tax.  The bill would authorize a tax credit of $100 for the tax year beginning in the 2009 calendar year, which would be increased by $100 each year up to a $500 credit in the tax year beginning in the 2013 calendar year.  If the taxpayer is not an active volunteer for the entire year, the amount of the credit would be prorated.  If the taxpayer cannot use the entire amount of the tax credit for the first year of eligibility, the remainder could be carried forward up to three years.  A taxpayer would not be eligible to carry back, obtain a refund of, sell or assign an unused tax credit.  A taxpayer who claims a credit but fails to meet the requirements would be required to repay the full amount of the credit.  The bill would authorize up to $8.5 million in tax credits in each fiscal year.  If requested credits exceed the cap in any given year, they would be allocated on a pro rata basis.  The State Fire Commissioner and the Director of the Emergency Medical Services Office in the Department of Health would be responsible for developing a system establishing annual requirements for designating firefighters and emergency medical services responders as active volunteers.  The act would apply to taxable years beginning on or after January 1, 2009.  No later than June 1, 2010, and September 1 of each year thereafter, the Department of Revenue would be required to report to the General Assembly on the tax credits granted and the applicability of the tax credit to the retention of active volunteers.  Passed:  50-0. 

Senate Bill 1315 (Waugh) would create the Volunteer Firefighter and Emergency Services Postsecondary Education Tuition Reimbursement Program in the Pennsylvania Higher Education Assistance Agency (PHEAA).  The program would provide a 50 percent tuition credit for a qualified student's share of tuition at a Pennsylvania community college, state-owned university, state-related university, or independent institution of higher education.  In the case of an independent institution of higher education, PHEAA would reimburse the institution up to a maximum of 50 percent of the state-related institutions' average tuition cost.  Applicants would have to be residents of the Commonwealth, be active volunteer emergency medical services workers or volunteer firefighters, and be enrolled in a program of undergraduate study leading to an associate's or bachelor's degree.  In addition, participants would have to provide to their college or university a sworn statement of fact by the head of their volunteer organization attesting that the applicant has participated in at least 30 percent of the volunteer organization's emergency responses within the past 18 months.  A junior volunteer 16 through 18 years of age would have to participate in at least 20 percent of the emergency responses and have attended at least 20 hours of training or classroom instruction on an annual basis to be eligible.  No applicant would be eligible for tuition reimbursement under the act for five years for full-time students or an equivalent thereof for part-time students.  The tuition credit would be paid by PHEAA directly to the institution.  Funding for the program would be dependent on annual appropriations made by the General Assembly.  If insufficient funds are appropriated, payments would be made on a pro rata basis.  Passed:  50-0.

Senate Bill 1316 (Baker) would amend the Tax Reform Code of 1971 to create the Volunteer Firefighter and Emergency Medical Services Worker Employer Tax Credit.  The tax credit could be used against the Personal Income Tax, the Corporate Net Income Tax, or the Capital Stock and Franchise Tax.  The employer could claim $1,000 per qualified employee up to $5,000 in any given tax year.  The credit could be claimed only once for each active volunteer and could not be claimed if the employee has been claimed by a previous employer during the same taxable year.  If the active volunteer is not qualified for the entire tax year, the amount of the tax credit would be prorated.  If the employer cannot use the entire amount of the tax credit for the first year of eligibility, the remainder could be carried forward up to three years.  A taxpayer would not be eligible to carry back, obtain a refund of, sell or assign an unused tax credit.  If a pass-through entity (partnership or Pennsylvania S Corporation) has any unused credit, it could elect in writing to transfer all or a portion of the credit to shareholders, members or partners in proportion to the share of the entity's distributive income to which the shareholder, member or partner is entitled.

To be eligible for the tax credit, a taxpayer must employ an active volunteer within the Commonwealth and implement a policy that permits an active volunteer to be absent from work, without penalty, for the purpose of responding to a duty call, fire protection call, emergency call or annual emergency services training.  The volunteer would have to provide verification from the head of the volunteer organization that he or she was responding to a call or participating in training.  If an employer claims the credit and then takes adverse employment action against a volunteer for responding to emergency calls, the employer would have to repay the credit and reinstate the employ to his or her former position and pay all lost wages and benefits.  The State Fire Commissioner and the Director of the Emergency Medical Services Office in the Department of Health would be responsible for developing a point system establishing annual requirements for designating firefighters and emergency medical services responders as active volunteers.  The bill would authorize up to $5 million in tax credits in each fiscal year.  If requested credits exceed the cap in any given year, they would be allocated on a pro rata basis.  The act would apply to taxable years beginning after December 31, 2008.  No later than June 1, 2010, and September 1 of each year thereafter, the Department of Revenue would be required to report to the General Assembly on the tax credits granted and the applicability of the tax credit to the retention of active volunteers.  Passed:  50-0.

Senate Resolution 341 (Wozniak) notes with sadness the passing of former Pittsburgh Steelers defensive end Dwight White.  Adopted by Voice Vote. 

Senate Resolution 342 (Hughes) recognizes June 10, 2008 as "Patient Advocate Day" in Pennsylvania.  Adopted by Voice Vote.

Executive Session

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

Tuesday, June 10, 2008

Senate Bill 246 would create the Clean Indoor Air Act to prohibit smoking, with certain exceptions, in public places.  Nothing in the act would preclude the owner of a public or private property from prohibiting smoking on the property.  The exceptions to the prohibition would include:

• a private home, residence, or vehicle except when used at the time for the provision of child-care services, adult day-care services, or services related to the care of children and youth in state or county custody;

• up to 25 percent of designated sleeping rooms within a lodging establishment;

• designated quarters within a full-service truck stop;

• tobacco shops;

• workplaces of a manufacturer, importer or wholesaler of tobacco products, or a tobacco leaf dealer or processor, and all tobacco storage facilities;

• long term care facilities regulated under 42 CFR 483.15 or similar regulation;

• separate enclosed rooms or designated smoking rooms in residential adult care facilities, community mental health care facilities, drug and alcohol facilities, and facilities that provide day treatment programs;

• cigar bars;

• 25 percent of a gaming floor of a licensed gaming facility, which could be expanded up to 50 percent based on gross terminal revenue per slot machine unit;

• private clubs, except where the club is open to the public through general advertisement for a club-sponsored event or leased or used for a private event which is not club-sponsored;

• licensed drinking establishments with annual food sales of 20 percent or less which do not permit individuals under 18 years of age;

• certain charitable fundraising events;

• under certain conditions, exhibit halls, conference rooms, or similar facilities used for a tobacco-related event; and,

• designated outdoor smoking areas within the confines of a sports or recreational facility, theater or performance establishment.

Drinking establishments, cigar bars and tobacco shops would be required to submit a letter, accompanied by verifiable supporting documentation, to the Department of Health claiming an exception.  These entities would be required to make available all books, accounts, etc., to the Department of Health or other agency as necessary to enforce the act.  Private clubs would be required to take and record a vote of their officers under their bylaws to address smoking in the private club's facilities. 

The act would supersede any local ordinance or rule or regulation, and no political subdivision would have any authority to adopt or enforce any rule or ordinance more restrictive than the standards set forth in the act.  This provision would not apply to Philadelphia, but Philadelphia could not change or amend its existing ordinance to conflict with any provision of the act. 

The owner, operator, manager or other person having control of an area would be required to prominently post and properly maintain "smoking" or "no smoking" signs or the international "no smoking" symbol in the area where smoking is regulated.  In addition, the bill would prohibit any person or employer from discharging, refusing to hire or retaliating against an employee or applicant for employment for exercising any right to a smoke-free environment under the act. 

A county could elect to have its board of health enforce the act by providing written notification to the Department of Health.  A complaint regarding a possible violation of the act would be made to the appropriate law enforcement agency or to the Department of Health.  If the public place is subject to licensure by the Commonwealth, the Department would refer the complaint to the appropriate licensing agency for investigation and enforcement.  If a complaint is made to the Department regarding a public place in a county which has opted to enforce the act, the complaint would be referred to the county.  If a complaint is made to a law enforcement agency regarding a public place, the agency would investigate the complaint and enforce the act.  In all other situations, the Department of Health would investigate the complaint and enforce the act.  A first violation would be punishable by a fine not to exceed $250, a second violation within one year by a fine not to exceed $500, and each additional violation occurring within one year by a fine not to exceed $1,000. 

The Department would be required to promulgate regulations to implement the provisions of the act and to design and implement a public education program to educate the public about the act.  The Department would also be required to report annually to the Chairmen and Minority Chairmen of the Senate Public Health and Welfare Committee and the House Health and Human Services Committee on the number of violations, the number of enforcement actions, a description of the enforcement activities and other information relating to the administration and implementation of the act.  Section 10.1 of the Fire and Panic Act would be repealed.  The act would take effect in 90 days. Conference Committee Report Adopted: 41-9. 

Senate Bill 1227 (Baker) would authorize 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.  Passed:  50-0.

Senate Bill 1392 (Piccola) would authorize DGS to convey 47.28 acres in Susquehanna Township, Dauphin County to the Pennsylvania State Employees Credit Union (PSECU) for $3,050,000.  The Department of General Services could reimburse itself for costs and fees incurred as a result of the conveyance.  Any funds remaining after reimbursement to DGS would be deposited into the Agricultural Farm Operations Account.  No portion of the conveyance could be used for a licensed gaming facility or it would revert to the Commonwealth.  If PSECU and DGS cannot reach a mutually acceptable agreement of sale within 12 months, the property could be disposed of in accordance with the Administrative Code of 1929.  Passed:  50-0.

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.  Passed:  49-1.

Senate Bill 1429 (Wonderling) would authorize DGS to convey 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.  Passed:  50-0.

Senate Resolution 343 (M. White) recognizes the month of August 2008 as "Oil Heritage Month" in Pennsylvania.  Adopted by Voice Vote.

Wednesday, June 11, 2008

Senate Bill 2 (Earll) would create the H2O PA Act.  The bill would allocate all the money in the Pennsylvania Gaming Economic Development and Tourism Fund not previously allocated to projects under the Pennsylvania Gaming Economic Development and Tourism Fund Capital Budget Itemization Act of 2007 to the Commonwealth Financing Authority (CFA) for distribution as grants for water or sewer, storm water, flood control, and high hazard dam projects.  In addition, the legislation directs the CFA to issue debt of $800 million.  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 $25 million would be awarded for high hazard dam projects.  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.  The local match for high hazard 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.  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 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 economic development or tourism project within a city or county of the first or second class until such time as an amount equal to $750 million has been authorized and distributed from the fund for economic development or tourism projects outside a city or county of the first or second class.  Passed:  50-0.