Sales Tax Plan That Included Professional Services Fails
As the budget debate continues, side issues continue to rise and fall in the General Assembly. November’s issues were liquor privatization and property tax reform. Both of these issues have been brought to the table by various parties to the budget negotiations, including the Governor, but have not achieved legislative success. House Speaker Mike Turzai (R-Allegheny) has made liquor privatization his number one personal priority, and this has been a key hold up to negotiations. The House had earlier passed a liquor bill, but the Senate responded with a different version, and the Governor vetoed it. Nonetheless, Rep. Turzai kept the issue going, and this fall reintroduced a slightly modified version of his original bill and it again passed the House this past month, and it sits in the Senate Law and Justice Committee, awaiting a decision by the Senate to move it again.
Meanwhile, Sen. Dave Argall (R-Schuylkill) was pushing his own quest, which he described as property tax elimination, and had introduced as SB 76. This amendment would have raised the personal income and sales and use taxes, and applied the sales and use tax to many items and professional services, including design and construction services, not currently subject to the tax. Similar legislation had been previously sounded defeated in the House. Senate leaders promised him a vote on his legislation, though only as an amendment to a House bill, HB 683, which was on the Senate calendar. After several hours of impassioned debate, the amendment failed on a tie vote broken by Lt. Mike Stack (D-Philadelphia). The Lt. Governor may vote to break ties on procedural motions and amendments, not final passage on bills, so he was provided with a rare opportunity to cast a vote. That now put to rest, House and Senate leaders and staff then spent the Thanksgiving holiday working on a budget proposal they thought they could get finally completed by early December. The House added several session days the first two weeks of December. Whether they happen remains to be seen.
New Registration Act Amendments Introduced
Efforts to move forward with changes to the Pennsylvania Registration Act for Professional Engineers, Land Surveyors and Geologists advanced recently with the introduction of House Bill 1704. This legislation will look familiar to many as it is identical to a previously introduced bill except that it does not eliminate the industrial exemption. House Bill 1704 updates a number of other issues in the Act bringing Pennsylvania more in line with other states. It changes the title of engineers who have passed the fundamentals exam from “Engineer in Training” to “Engineer Intern” and clarifies that distance education for the purpose of required continuing education must be measured in the same way as classroom education. Also, the 30 day exemption for engineers working in Pennsylvania but licensed in another state is repealed.
The Society has not given up on repealing the industrial exemption contained in the act. House Bill 1253 makes that change but appears to be stuck in the House Professional Licensure committee due to opposition by manufacturing lobbies. Last legislative session, that committee held a public hearing on removing the industrial exemption. The hearing was highlighted by testimony from PSPE and the National Council of Examiners for Engineering and Surveying. Even though the public hearing was encouraging, the Society has not been able to overcome the objections from industry. This new bill separates the issues so that the less controversial provisions can be enacted while the fight to eliminate the industrial exemption continues.
Both bills were introduced by Representative Mark Mustio, a Republican from Allegheny County. He serves on the House Professional Licensure committee and has previously sponsored amendments to the Registration Act that were enacted.
Legislative Activity: The General Assembly acted on the following bills of interest to PSPE in the past month.
BIDDING / CONTRACTING
HB 902 RE: Local Contracting (by Rep. Chris Ross, et al)
Amends Act entitled “An act authorizing political subdivisions, municipality authorities and transportation authorities to enter into contracts for the purchase of goods and property,” adding language providing for contracts for services setting up a procedure to be followed when a political subdivision, municipality authority or transportation authority is required to advertise for bids in order to enter into a contract for services and no bids are received.
Removed from the table, 11/5/2015
Read second time and Rereferred to House Appropriations Committee, 11/9/2015
Reported as committed from House Appropriations Committee, 11/10/2015
Read third time and passed the House, 11/16/2015 (201-0)
Received in the Senate and referred to Senate Local Government Committee, 11/20/2015
SB 316 RE: Service Contracts Terms (by Sen. Mike Folmer, et al)
Amends Title 62 (Procurement), in general provisions, providing for public access to procurement records; and, in source selection and contract formation, further providing for sole source procurement and for emergency procurement. Records concerning a procurement shall be made public, consistent with the Right-to-Know Law. The bill stipulates that procurement documents shall be posted on the purchasing agency’s website. For certain procurements over $250,000, the determination shall be signed by the head of the purchasing agency. Two quotes shall be solicited for emergency procurement; no written contract may be required. Lays out guidelines for legal services contracts.
Removed from the table, 11/12/2015
SB 344 RE: Duty of Prime Contractor (By Sen. John Eichelberger, et al)
Amends the Public Works Contractors’ Bond Law further providing for duty of prime contractor to provide financial security in certain contracts involving public works and public improvements by requiring a contractor to furnish performance bond, payment bond, irrevocable letters of credit, or escrow account.
Rereferred to Senate Appropriations, 11/17/2015
SB 1063 RE: Debarment (by Sen. Rob Teplitz, et al)
Amends Title 62 (Procurement) in source selection and contract formation further providing for debarment or suspension. Adds to the list of causes for debarment or suspension to include debarment of a person or individual substantially involved in the person’s contracting activities, including an officer, partner, controlling stockholder or principal; deliberate failure, without good cause, to perform in accordance with the specifications provided in a contract; failure to perform or unsatisfactory performance of one or more contracts within the preceding five years unless the failure or unsatisfactory performance was due to acts beyond the control of the person; operating in a manner designed to evade the provisions of Title 62; or if the person is a successor, affiliate, or has another type of close business relationship with a person debarred.
Introduced and referred to Senate State Government Committee, 11/13/2015
BUDGET RELATED BILLS
HB 1460 RE: General Appropriation Act of 2015 (By Rep. Bill Adolph, et al)
Provides from the General Fund for the expenses of the Executive and Judicial Departments, the State Government Support Agencies and the General Assembly of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2015, to June 30, 2016, for certain institutions and organizations, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2015; to provide appropriations from the State Lottery Fund, the Tobacco Settlement Fund, the Aviation Restricted Account, the Hazardous Material Response Fund, The State Stores Fund, the Milk Marketing Fund, the Home Investment Trust Fund, the Emergency Medical Services Operating Fund, the Tuition Account Guaranteed Savings Program Fund, the Banking Fund, the Firearm Records Check Fund, the Ben Franklin Technology Development Authority Fund, the Oil and Gas Lease Fund, the Home Improvement Account, the Cigarette Fire Safety and Firefighter Protection Act Enforcement Fund, the Insurance Regulation and Oversight Fund and the Pennsylvania Racehorse Development Restricted Receipt Account, to the Executive Department; to provide appropriations from the Judicial Computer System Augmentation Account to the Judicial Department for the fiscal year July 1, 2015, to June 30, 2016; to provide appropriations from the Motor License Fund for the fiscal year July 1, 2015, to June 30, 2016, for the proper operation of several departments of the Commonwealth and the Pennsylvania State Police authorized to spend Motor License Fund moneys; to provide for the appropriation of Federal funds to the Executive Department of the Commonwealth and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2015. These are the same budget numbers that the Governor vetoed in HB 1192 in June. It will likely be the vehicle for whatever agreement is reached.
Removed from the table, 11/9/2015
Read second time, and rereferred to House Appropriations Committee, 11/10/2015
SB 1073 RE: General Appropriation Act of 2015 (by Sen. Pat Browne, et al)
Provides from the General Fund for the expenses of the Executive and Judicial Departments, the State Government Support Agencies and the General Assembly of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2015, to June 30, 2016, for certain institutions and organizations, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2015; to provide appropriations from the State Lottery Fund, the Tobacco Settlement Fund, the Aviation Restricted Account, the Hazardous Material Response Fund, The State Stores Fund, the Milk Marketing Fund, the Home Investment Trust Fund, the Emergency Medical Services Operating Fund, the Tuition Account Guaranteed Savings Program Fund, the Banking Fund, the Firearm Records Check Fund, the Ben Franklin Technology Development Authority Fund, the Oil and Gas Lease Fund, the Home Improvement Account, the Cigarette Fire Safety and Firefighter Protection Act Enforcement Fund, the Insurance Regulation and Oversight Fund, the Pennsylvania Racehorse Development Restricted Receipt Account, the Justice Reinvestment Fund and the Multimodal Transportation Fund to the Executive Department; to provide appropriations from the Judicial Computer System Augmentation Account to the Judicial Department for the fiscal year July 1, 2015, to June 30, 2016; to provide appropriations from the Motor License Fund for the fiscal year July 1, 2015, to June 30, 2016, for the proper operation of several departments of the Commonwealth and the Pennsylvania State Police authorized to spend Motor License Fund money; and to provide for the appropriation of Federal funds to the Executive Department of the Commonwealth and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2015. The bill is retroactive to July 1, 2015 and effective immediately.
Introduced and referred to Senate Appropriations Committee, 11/17/2015
Reported as committed from Senate Appropriations Committee, and read first time, 11/18/2015
Read second time, 11/23/2015
ENVIRONMENTAL BUILDING STANDARDS
HB 48 RE: Water Well Construction Standards (by Rep. Bob Godshall, et al)
Amends Title 27 (Environmental Resources) providing for the adoption of National Groundwater Association standards. Provides for water well construction standards; decommissioning of abandoned wells; water well completion reports; and inspections. Also provides for the powers and duties of the Environmental Quality Board (EQB) and Department of Environmental Protection (DEP) under this new chapter and for penalties for violations of this new chapter. Requires the EQB to promulgate rules and regulations adopting the construction and decommissioning standards recommended by the American National Standards Institute/National Groundwater Association.
Laid on the table, removed from the table, 11/30/2015
HB 1394 RE: Fees for Storm Water Management Activities (By Rep. Mark Mustio, et all
Amends Title 8 (Boroughs & Incorporated Towns) authorizing a borough to assess reasonable and uniform fees for storm water management activities and facilities without the need to establish a municipal authority. Also authorizes the enactment and enforcement of ordinances to govern and regulate the planning, management, implementation, construction and maintenance of storm water facilities. Provides for any of the assessment to be collected by the treasurer and requires the municipalities to specify in the ordinance the frequency of the payments. A township may consider providing exemptions and credits for properties that have already installed and are maintaining storm water facilities.
Reported as amended from House Local Government Committee, read first time, and laid on the table.
LOCAL/STATE GOVERNMENT/REGULATIONS
HB 1325 RE: Storm Water Fees (by Rep. Mark Mustio, et al)
Amends the Second Class Township Code, authorizing a township to assess reasonable and uniform fees for storm water management activities and facilities without the need to establish a municipal authority. Also authorizes the enactment and enforcement of ordinances to govern and regulate the planning, management, implementation, construction and maintenance of storm water facilities. Provides for any of the assessment to be collected by the treasurer and requires the municipalities to specify in the ordinance the frequency of the payments. A township may consider providing exemptions and credits for properties that have already installed and are maintaining storm water facilities.
Reported as amended from House Local Government Committee, read first time, and laid on the table, 11/18/2015
HB 1394 RE: Storm Water Fees (by Rep. Mark Mustio, et al)
Amends Title 8 (Boroughs & Incorporated Towns) authorizing a borough to assess reasonable and uniform fees for storm water management activities and facilities without the need to establish a municipal authority. Also authorizes the enactment and enforcement of ordinances to govern and regulate the planning, management, implementation, construction and maintenance of storm water facilities. regulate the planning, management, implementation, construction and maintenance of storm water facilities. Provides for any of the assessment to be collected by the treasurer and requires the municipalities to specify in the ordinance the frequency of the payments. A township may consider providing exemptions and credits for properties that have already installed and are maintaining storm water facilities.
Reported as amended from House Local Government Committee, read first time, and laid on the table, 11/18/2015
HB 1661 RE: Storm Water Management Plans (by Rep. Mark Mustio, et al)
Amends the First Class Township Code adding an article providing for storm water management plans and facilities. The board of commissioners is authorized to plan, design, construct, assemble, install and alter facilities to manage surface water runoff.
Reported as amended from House Local Government Committee, read first time, and laid on the table.
SB 793 RE: Building and Housing Regulations (by Sen. Scott Hutchinson, et al)
Amends the Second Class Township Code, in corporate powers, further providing for building and housing regulations and repealing provisions relating to building and housing inspectors; and providing for Uniform Construction Code, property maintenance code and reserved powers. The bill adds a section providing for Uniform Construction Code, Property Maintenance Code, and reserved powers. The Pennsylvania Construction Code Act and the Uniform Construction Code shall apply to the construction, alteration, repair and occupancy of the buildings and structures within a township.
Removed from the table, 11/5/2015
Read Second time and rereferred to House Appropriations Committee, 11/9/2015
Reported as committed from House Appropriations Committee, read third time, and passed House, 11/10/2015 (191-2)
Signed in the House and Senate, 11/16/2015
Approved by the Governor, 11/24/2015 (Act No. 69 of 2015)
SR 238 RE: Use of Unmanned Drones (by Sen. Anthony Williams, et al)
A Resolution directing the Joint State Government Commission to conduct a study regarding the use of unmanned drones by State and local agencies, including law enforcement agencies. Provides the commission solicit input from all key stakeholders, including, but not limited to, all State agencies authorized under the executive branch, all county and municipal agencies including law enforcement agencies and school districts. Requires the commission to submit its findings to the General Assembly by January 1, 2017.
Introduced and referred to Senate State Government Committee, 11/13/2015
Reported as committed from Senate State Government Committee, 11/17/2015
LIABILITY: NONE
PROFESSIONAL LICENSURE
HB 802 RE: CE Carryover (by Rep. Harry Readshaw, et al)
Amends the act entitled, “An act empowering the General Counsel or his designee to issue subpoenas for certain licensing board activities; providing for hearing examiners in the Bureau of Professional and Occupational Affairs; providing additional powers to the Commissioner of Professional and Occupational Affairs; and further providing for civil penalties and license suspension,” adding that in addition to disciplinary powers and duties, boards and commissions shall have the power to provide for the carryover of any continuing education credits in excess of the number required for biennial renewal. The carryover shall be valid for one biennial renewal term only.
Removed from the table, and laid on the table, 11/25/2015
HB 1704 RE: Engineer Interns (by Rep. Mark Mustio, et al)
Amends the Engineer, Land Surveyor and Geologist Registration Law changing the definition of “Engineer-in-Training” to “Engineer Intern”. Removes certain exemptions from licensure and registration. Effective in 60 days.
Introduced and referred to House Professional Licensure Committee, 11/16/2015
LOCAL/PROPERTY TAX REFORM
HB 683 RE: Taxpayer Relief Act (by Rep. Kathy Rapp, et al)
Amends the Taxpayer Relief Act, in senior citizens property tax and rent rebate assistance, removing from the definition of “income” federal veterans’ disability payments and state veterans’ benefits. Provides a definition of “state veterans’ benefits”. Sen. Dave Argall attempted to amend this bill with the property tax elimination plan language contained in SB 76, but it was defeated on the Senate floor.
Reported as committed from Senate Appropriations Committee, 11/16/2015
Read second time, 11/18/2015
Argall amendment defeated on Senate floor, 11/23/2015, (24-25)
Laid on the table, 11/24/2015
MANDATE WAIVERS
HB 1119 RE: School Mandate Waivers (by Rep. Kristin Hill, et al)
Amends the Public School Code to allow public schools to apply for waivers of certain delineated statutory mandates, provided conditions are met. Provides for a five-year report and renewal cycle. Also allows fulfillment of certain legal notice requirements by publishing on a publicly accessible website.
Removed from the table, laid on the table, 11/4/2015
MECHANIC’S LIEN: NONE
ORGANIZATIONAL STATUS: NONE
SCHOOL CONSTRUCTION: NONE
TRANSPORTATION:
SB 1051 RE: Abolishing the Turnpike Commission (by Sen. Scott Hutchinson, et al)
Amends the Administrative Code establishing the Bureau of Toll Administration within the Department of Transportation (PennDOT). The bill authorizes the Secretary of Transportation to appoint an additional deputy secretary who shall have the title of the Deputy Secretary for Toll Administration; and provides for the powers and duties of the Deputy Secretary for Toll Administration with regard to the operation of toll roads. Also adds a section related to Toll Road and Bridge Administration; authorizes PennDOT to assume all powers and duties of the Pennsylvania Turnpike Commission related to operation, maintenance, construction and reconstruction of the Turnpike and related highways and to receive all tolls and other money otherwise payable to the commission; establishes the Bureau of Toll Administration in PennDOT; and provides for various powers and duties of the Bureau of Toll Administration related to financing functions, transfer of land, buildings, personal property and employees. The Turnpike Commission and the office of Turnpike Commissioner are abolished.
Introduced and referred to Senate Transportation Committee, 11/10/2015