House Moves Forward With Registration Act Amendments
The House committee on Professional Licensure unanimously supported House Bill 1704 which makes a number of changes to the Engineers, Land Surveyors and Geologists Registration Law. The bill updates several issues in the Act bringing Pennsylvania more in step with other states. It changes the title of engineers who have passed the fundamentals exam from “Engineer in Training” to “Engineer Intern”. It also clarifies that correspondence course Professional Development Hours (PDHs) earned for the purpose of mandatory continuing education must be measured in the same way as classroom education. An attempt to remove the industrial exemption which was part of a different bill (HB 1253) was not included in House Bill 1704 due to its controversial nature.
The bill is presently on the House voting scheduled and could be voted on as early as the week of April 4th. It still needs to go through the Senate though before it reaches the Governor’s desk. The Society supports the bill and encourages you to contact your state legislators to urge them to support the bill.
Wolf Allows 2015-16 Budget to Become Law; 2016-17 Budget Looms
Gov. Tom Wolf surprised many at the Capitol with his announcement that, despite his prior threat to again veto what the General Assembly had passed and sent to him, he would allow the supplemental budget bill, HB 1801, to become law without his signature, on March 27. Gov. Wolf continued to insist that the budget passed by lawmakers is not balanced and, therefore, he could not sign it. However, to move the process forward, he opted to let the bill become law – which it did on March 28 – and deal with the consequences in the next budget.
The new law restores about $7 billion in funds the Governor had “bluelined” from HB 1460, in total, including about $6 million in funds from the DCED budget, back in December. This spreadsheet shows the various lines from the budget bills enacted this session, and showing the 2014-15 budget lines, for purposes of comparison. So now we are essentially down to just one budget to pass, due June 30, for FY 2016-17. However, the Governor also announced that he would veto the companion bill amending the Fiscal Code, HB 1327, which outlines how the 2015-16 funding would be spent, in narrative form, Department by Department. The Governor stated that he had some concerns, including Constitutional issues, with various provisions of the bill, and would reject it, throwing the capitol into a state of confusion as to the ramifications of having spending authorized, with no direction. The House had already put another bill in place to reinstate much of the language, ahead of the veto which, ultimately, came on March 25th.
Legislative Activity
The General Assembly acted on the following bills of interest to PSPE in the past month.
BIDDING / CONTRACTING
HB 726 RE: Contractor & Subcontractor Payment Act (by Rep. Mike Tobash, et al)
Amends the Contractor & Subcontractor Payment Act adding a language providing the provisions of the Act cannot be waived in any contract. Increases from 1 percent to 1.5 percent the monthly interest rate for an outstanding payment. Also adds a provision allowing for posting of security in lieu of retainage. Increases the penalty from 1 percent per month to 1.5 percent per month in cases where an arbitrator or litigation determines that payment was wrongly withheld.
Passed over in House Commerce Committee, 3/16/2016
BUDGET RELATED BILLS
HB 928 RE: RACP Caps (by Rep. Steven Mentzer, et al)
In capital facilities, further providing for appropriation for and limitation on redevelopment assistance capital projects and for administration of redevelopment assistance capital projects. Beginning July 1, 2018, and each July 1 thereafter until the sum of the outstanding obligations for redevelopment assistance capital projects equals $2,950,000,000, the sum of the maximum amount of outstanding obligations for redevelopment assistance projects shall be decreased by $50,000,000. Grant agreements shall include a signed affidavit stating that the applicant will hold at least one public informational meeting for the project and an additional public informational meeting as necessary, as required by the bill.
Reported as committed from Senate Appropriations Committee, and read first time, 3/23/2016
HB 930 RE: RACP Debt Ceiling (By Rep. Tarah Toohil, et al)
Amends the Capital Facilities Debt Enabling Act reducing the Redevelopment Assistance Capital Projects (RACP) Debt ceiling by $475 million. Adds language providing that the maximum amount of additional public improvement projects released for funding by the Commonwealth in a fiscal year shall not exceed $350 million and the maximum amount of additional redevelopment assistance capital projects released for funding by the Commonwealth in a fiscal year shall not exceed $125 million. Also provides for carry-forward.
Reported as committed from Senate Appropriations Committee, and read first time, 3/23/2016
HB 1327 RE: Fiscal Code Amendments (by Rep. Michael Pifer, et al)
Amends the Fiscal Code, in financially distressed municipalities, providing for financial recovery; in oil and gas wells, providing for the Environmental Stewardship Fund; in tax credits, providing for Department of Community and Economic Development; in special funds, further providing for funding, for State Workers’ Insurance Board, for expiration and for other grants; in additional special funds, further providing for use of the Tobacco Settlement Fund and for distributions from the Pennsylvania Race Horse Development Fund and providing for miscellaneous limitations and transfers and for the Natural Gas Infrastructure Development Fund; in general budget implementation, further providing for the Department of Community and Economic Development, for the Department of Environmental Protection and for the Department of General Services, providing for the Pennsylvania Gaming Control Board, further providing for the Department of Human Services, for the Pennsylvania State Police and for the Environmental Quality Board and providing for the Commonwealth Financing Authority; providing for school district debt refinancing bonds; providing for 2015-2016 budget implementation; making a related repeal; and making editorial changes.
Re-reported on concurrence as amended from Senate Rules and Executive Nominations Committee, and Senate concurred in House amendments to Senate amendments as
amended, 3/16/2016
Received as amended in House and rereferred to House Rules Committee, re-reported on concurrence as committed from House Rules Committee and House concurred in Senate amendments, 3/16/2016 (120-71)
Vetoed by the Governor, 3/25/2016
HB 1605 RE: Heritage Area Program Act (by Rep. Lee James, et al)
Establishes the Heritage Area Program within the Department of Conservation and Natural Resources to identify, protect, develop, enhance, and promote the historic, recreational, natural, cultural, and scenic resources of the Commonwealth. The department will adopt guidelines and policies for the implementation of the program. The department will also allocate appropriate funds to run the program. The bill provides for the use and eligibility of the heritage area.
Removed from the table, 3/14/2016
Read second time, and rereferred to House Appropriations Committee, 3/15/2016
Reported as committed from House Appropriations Committee, read third time, and passed House, 3/16/2016 (191-0)
Received in the Senate and referred to Senate Environmental Resources and Energy Committee, 3/22/2016
HB 1801 RE: 2015/16 Supplemental Budget (by Rep. Rich Irvin, et al)
Supplement to the act of December 29, 2015 (P.L. , No.10A), entitled “An act to provide 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 and the Justice Reinvestment 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; 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; and to provide for the additional appropriation of Federal and State funds from the General Fund and the State Lottery Fund for the Executive Department of the Commonwealth for the fiscal year July 1, 2014, to June 30, 2015, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2014,” further providing for additions to appropriations and replacement of appropriations from the General Fund for the expenses of the Executive Department, the General Assembly and Government Support Agencies of the Commonwealth 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; providing for replacement of appropriations from the Tobacco Settlement Fund to the Executive Department; further providing for additions to appropriations from the Pennsylvania Racehorse Development Restricted Receipt Account to the Executive Department; and providing for required lapsing of money in the General Fund. Retroactive to July 1, 2015.
Reported as committed from Senate Appropriations Committee and read first time, 3/14/2016
Read second time, rereferred to Senate Appropriations Committee, and reported as amended from Senate Appropriations Committee, 3/15/2016
Read third time and passed Senate, 3/16/2016 (31-18)
Received as amended in House and rereferred to House Rules Committee, re-reported on concurrence as committed from House Rules Committee and House concurred in Senate amendments, 3/16/2016 (128-63)
Became law without Governor’s signature, 3/28/2016 (Act No. 1A of 2016)
HB 1901 RE: Sewage Facilities Grants (by Rep. Stan Saylor, et al)
Amends the Pennsylvania Sewage Facilities Act further providing for grants and reimbursements authorized by adding that from funds appropriated for such grants for the 2015-2016 fiscal year and thereafter, the department shall give funding priority to approved grant applications from municipalities in counties of the third, sixth, seventh and eighth class.
Introduced and referred to House Local Government Committee, 3/15/2016
ENVIRONMENTAL BUILDING STANDARDS
SB 289 RE: Private Lateral Sewer Lines (by Sen. Wayne Fontana, et al)
Amends the act entitled “An act to provide for and regulate the accumulation, investment, and expenditure of funds by cities, boroughs, incorporated towns and townships for preparing plans for sewage disposal systems, and for the construction, improvement or replacement of sewage disposal systems for which plans have been approved by the Sanitary Water Board of the Commonwealth,” further providing for definitions, for creation of a Sewage Disposal System Fund and for expenditure of fund; providing for expenditure of public funds for private lateral sewer lines; and further providing for grants of moneys. A municipality or municipal authority may use public funds for the improvement, extension, repair or rehabilitation of private lateral sewer lines connected to sewage disposal systems, where the municipality or municipal authority determines that those activities will benefit the sewage disposal system or the public health, or will prevent damages to public property. Before using public funds, the municipality or municipal authority shall consider the available public funds, equipment, personnel and facilities and the competing demands of the municipality for the public funds, equipment, personnel and facilities. No municipality or municipal authority that has completed the improvement, extension, repair or rehabilitation of private sewer lines shall be deemed to be the owner of the private lateral sewer lines, or to have any further responsibility to conduct those activities, unless the municipality or municipal authority makes an affirmative determination to accept such obligations.
Reported as committed from Senate Appropriations Committee, 3/22/2016
LOCAL/STATE GOVERNMENT/REGULATIONS
HB 914 RE: Sewage Siting Fees (by Rep. Chris Ross, et al)
Amends the Pennsylvania Sewage Facilities Act authorizing a local agency to charge a fee of up to $100 (increased from $25) to verify the permit-exempt system is located in accordance with siting requirements.
Removed from the table, 3/14/2016
Read second time, and Rereferred to House Appropriations Committee, 3/15/2016
Reported as committed from House Appropriations Committee, read third time, and passed House, 3/16/2016 (132-59)
HB 1103 RE: High Tunnels (by Rep. David Zimmerman, et al)
Amends the Storm Water Management Act defining “high tunnel” and exempting high tunnels from the act. A municipality that has adopted a watershed storm water plan or enacted a local ordinance or regulation that regulates high tunnels prior to the effective date shall amend the plan, ordinance or regulation in order to comply.
Read second time, and rereferred to House Appropriations Committee, 3/15/2016
Reported as committed from House Appropriations Committee, read third time, and passed House, 3/16/2016 (154-37)
Received in the Senate and referred to Senate Environmental Resources and Energy Committee, 3/22/2016
HB 1409 RE: Change of Code Administrator (by Rep. Kathy Rapp, et al)
Amends the Pennsylvania Construction Code Act, in adoption and enforcement by municipalities, further providing for administration and enforcement by adding that in the case of a change of code administrator with jurisdiction over a project, subsequent code administrators shall be subject to decisions previously rendered on the project by the board of appeals.
Reported as amended from House Local Government Committee, read first time, and laid on the table, 3/23/2016
SB 1114 RE: Alternative Systems (by Sen. Gene Yaw, et al)
Amends Pennsylvania Sewage Facilities Act authorizing the inclusion of alternative systems in the site planning process.
Reported as committed from Senate Environmental Resources and Energy Committee and read first time, 3/22/2016
Read second time, 3/23/2016
PROFESSIONAL LICENSURE
HB 1704 RE: Registration Board Changes (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.
Reported as amended from House Professional Licensure Committee, read first time, and Laid on the table, 3/16/2016
Removed from the table, 3/21/2016
ORGANIZATIONAL STATUS
HB 1398 RE: Partnerships & LLC’s (by Rep. Adam Harris, et al)
Amends Titles 15 (Corporations and Unincorporated Associations) and 54 (Names) modernizing the law on limited liability partnerships, general partnerships, limited partnerships and limited liability companies; and making conforming changes with respect to associations, corporations, unincorporated nonprofit associations and business trusts by doing the following:
As to general provisions, making conforming changes by revising provisions on application of title, definitions, defense of usury, tax clearance of certain fundamental transactions and fee schedule.
As to entities generally, making conforming changes by revising requirements for foreign association names.
As to entity transactions, making conforming changes by revising provisions on regulatory conditions and required notices and approvals, nature of transactions, approval by limited partnership, effect of merger, statement of division and effectiveness, effect of division and effect of domestication.
As to foreign associations, making conforming changes by revising provisions on governing law.
As to corporations, making conforming changes by revising provisions on distributions by business corporations and by adding provisions on the use of special litigation committees by business corporations and nonprofit corporations.
As to partnerships generally: extensively revising provisions on: interchangeability of partnership, limited liability company and corporate forms of organization; and ownership of certain professional partnerships; and adding a provision on failure to observe formalities.
As to limited liability partnerships: extensively revising provisions on: scope; definitions; limitation on liability of partners; extraterritorial application of subchapter; foreign registered limited liability partnerships; and annual registration; and adding provisions on: distributions; and dissolution.
As to general partnerships, repealing existing Chapter 83 and replacing it with a new Chapter 84 relating to: general provisions; nature of partnership; relations of partners to persons dealing with partnership; relations of partners to each other and to partnership; transferable interests and rights of transferees and creditors; dissociation; dissociation as partner if business not wound up; and dissolution and winding up.
As to limited partnerships, repealing existing Chapter 85 and replacing it with a new Chapter 86 relating to: general provisions; formation and filings; limited partners; general partners; contributions and distributions; dissociation; transferable interests and rights of transferees and creditors; dissolution and winding up; and actions by partners.
As to limited liability companies, repealing existing Chapter 89 and replacing it with a new Chapter 88 relating to: general provisions; formation and filings; relations of members and managers to persons dealing with limited liability company; relations of members to each other and to limited liability company; transferable interests and rights of transferees and creditors; dissociation; dissolution and winding up; and actions by members.
As to unincorporated nonprofit associations, making conforming amendments by revising provisions on ownership and transfer of property.
As to business trusts, making conforming changes by revising provisions on application and effect of chapter and liability of trustees and beneficiaries.
As to names, revising provisions on register established.
Reported as committed from House Appropriations Committee, read third time, and passed House, 3/14/2016 (188-0)
Received in the Senate and referred to Senate Judiciary Committee, 3/22/2016
WORKER’S COMP
HB 1800 RE: WC Treatment (by Rep. Ryan Mackenzie, et al)
Amends the Workers Compensation Act to require that all reasonable and necessary treatments, services, products, or accommodations be consistent with treatment guidelines selected by the Department of Labor and Industry. Provides for a panel of medical providers, selected by the L&I Secretary, to review and propose amendments to adopted guidelines.
Public hearing held in House Labor and Industry Committee, 3/17/2016
Workforce Development
HR 750 RE: STEAM Initiative Week (By Rep. Brandon Neuman, et al)
A Resolution designating the week of April 3 through 9, 2016, as “STEAM Initiative Week” in Pennsylvania.
Introduced as noncontroversial resolution, 3/18/2016
Adopted, 3/22/2016 (194-0)
Copies of all bills of interest can be accessed here.