Wolf Carries Through with Veto Threat; House Responds with Defeat of Gov’s Tax Proposal; Senate Override Fails
The on-going budget impasse completed its fourth month in October, as Gov. Wolf vetoed, as he said he would, stopgap legislation, which would have funded social service agencies and school districts for four months. The House then made the next move, scheduling a vote on key parts of the Governor’s revenue proposal. That vote occurred on October 7, as an amendment to an existing bill, HB 283, which had been positioned on the House calendar for this purpose. After more than six hours of debate, the House defeated Gov. Wolf’s latest tax proposal. Wolf’s tax package fell 29 votes short, with only 73 Democrats voting in favor of the half-percentage increase in the personal income tax and a 3.5% severance tax. Nine Democratic members joined the Republicans in voting against the first-year Governor’s proposals. Two Democrats and 1 Republican were not present to vote. The Wolf Administration had estimated its scaled-back tax plans would raise an additional $1.4 billion in fiscal year 2015-16 and $2.1 billion next year – giving the state enough to pour $400 million back into state education funding. The House Republicans challenged that amount, and lamented that the increased taxes “on the backs of working people” did not provide the property tax relief most in the General Assembly support, and their constituents have been clamoring for.
The Senate then returned to session on Tuesday and Wednesday after the Columbus Day holiday, and attempted to override the Governor’s veto on the stopgap bills. Although a number of Democrat senators hinted they might go along with the override, when the Republicans called up SB 1000 to be voted, all 19 Democrats voted no, causing the vote to be short of the required 2/3, and sustaining the Governor’s veto. A subsequent vote on the companion Fiscal Code bill, SB 1001, was then called off.  The next step appears to be legislative leaders getting together to try to hammer out a new budget agreement, without the Governor.
Conversations with leaders of all four caucuses indicate that there is hope for a resolution in the not too distant future. Time will tell. Another factor that could play into the strategy going forward is the November 3 special election in the 37th Senatorial district, to fill the seat of retired Democrat Sen. Matt Smith.  Republican Guy Reschenthaler earned 54% of the vote bringing the State Senate back to its full complement of 50 and increasing the Senate GOP majority to 31, putting them one seat closer to a veto-proof majority of 34, which will be their goal in the 2016 elections. Reschenthaler will serve out the remainder of former State Senator Smith’s term before running again next year. 
Meanwhile, While We Wait… 
Even though the Commonwealth budget impasse is ongoing, the Pennsylvania legislature is finding other things to do with its time.  Not a lot of floor votes mind you, but committee action is still percolating on non budget related issues.  In particular, there has been a great deal of discussion concerning changes to the Uniform Construction Code.  Pennsylvania’s statewide building code is stuck on the 2009 version of the International Building Code (IBC).  Even though that code is updated every 3 years, the state’s advisory council that is responsible for adopting the updates has been hamstrung from doing so due to a statutory process that requires a super majority vote to adopt changes from the previous version.  The advisory council is presently dominated by interests that aren’t much interested in keeping Pennsylvania’s code up to date.  Several bills have already been introduced to address this with more on the way.  In fact the House has scheduled a public hearing on one of two competing bills in the Labor and Industry committee.  That hearing is on HB 635 to be held December 8 in Harrisburg.  The Senate is also working on its own version of a bill that would make the code update process more functional.  And as a back drop to the legislative maneuvering, Governor Wolf has been appointing new members to the advisory council who may swing the tide so that there will be enough votes to have Pennsylvania catch up to the 2015 IBC version.  PSPE has been very involved in the discussion and supports updating the code on a more regular basis.
Democrats Sweep Judicial Races 
In a historic election, in terms of number of races and money spent, three Democrats won seats on the State Supreme Court on November 3. Kevin Dougherty, David Wecht, and Christine Donohue were elected to fill three open seats, the first time that many justices have been elected in the same election. The court majority will now stand at 5-2 in favor of Democrats. Democrats also fared well in lower appellate court races, winning seats in the Superior and Commonwealth Courts. The shift will likely have implications on a variety of issues that could be heard by the courts in the coming years, not the least of which will be the 2021 reapportionment of legislative districts, which are initially determined by a bi-partisan legislative panel, but ultimately decided by the courts. Democrats believe this could help them gain what they consider a fairer shake in the district line drawing, which has been a major factor in the current majorities in the state House and Senate, as well as the unbalanced Congressional delegation. 
Legislative Activity
The General Assembly acted on the following bills of interest to PSPE in the past month. 
BIDDING / CONTRACTING 
HB 1202  RE: Highway Contracting Law Repeal (by Rep. John Taylor, et al)
Repeals the act of May 28, 1943 (P.L.796, No.333), entitled “An act establishing as state highways, certain county highways and requiring their construction, repair and maintenance as such.”
Reported as committed from House Transportation Committee, read first time and laid on the table, 10/5/2015
Removed from the table, 10/6/2015
Read second time and rereferred to House Appropriations Committee, 10/17/2015
Reported as committed from House Appropriations Committee, read third time, and passed House, 10/19/2015 (195-0)
Received in the Senate and referred to Senate Transportation Committee, 10/22/2015
HB 1653  RE: Recognized Entities (by Rep. Donna Oberlander, et al)
Amends Title 62 (Procurement) adding a chapter providing for recognized entities. “Recognized entity” is defined as a business that is formally recognized by the department as being one or more of the following: a minority-owned business, a woman-owned business, or a veteran-owned business. The department shall establish a process by which a business may become formally recognized and shall formally recognize a business that has been formally recognized as a woman-owned business, minority-owned business or veteran-owned business by a third-party organization. The department shall compile, maintain and make available source lists of businesses formally recognized by the department as a woman-owned business, minority-owned business or veteran-owned business for the purpose of encouraging procurement from those businesses.
Introduced and referred to House Veterans Affairs & Emergency Preparedness Committee, 10/21/2015
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.
Reported as amended from House State Government Committee, read first time, and laid on the table, 10/27/2015 
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.
Reported as committed from Senate Local Government Committee and read first time, 10/28/2015 
Cosponsor Memo Filed: SCO1202  (Teplitz) – Provides for debarment or suspension from entering into vendor contracts with the Commonwealth.
Filed, 10/5/2015
BUDGET RELATED BILLS
HB 283   RE: Wolf Tax Proposal (by Rep. Fred Keller, et al)
Amends the Tax Reform Code to exclude from the sales and use tax retail purchases of gun safes and gun locks.
This bill was the vehicle for the House vote on the Wolf tax increase.
Markosek amendment defeated, 10/7/2015 (73-127) 
HB 928   RE: Capital Facilities Debt Enabling Act (by Rep. Steven Mentzer, et al)
Amends the Capital Facilities Debt Enabling Act, in capital facilities, further providing for appropriation for and limitation on redevelopment assistance capital projects by adding that 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.
Removed from the table, 10/19/2015
Amended on House floor, read second time and rereferred to House Appropriations Committee, 10/20/2015 Reported as committed from House Appropriations Committee, read third time, and passed House, 10/21/2015 (121-76)
Received in the Senate and referred to Senate Appropriations Committee, 10/23/2015 
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.
Removed from the table, 10/19/2015
Read second time and rereferred to House Appropriations Committee, 10/20/2015
Reported as committed from House Appropriations Committee, read third time, and passed House, 10/21/2015 (121-75)
Received in the Senate and referred to Senate Appropriations Committee, 10/23/2015
SB 1000   RE: “Stopgap” Budget (by Sen. Pat Browne, et al)
Based on the previously vetoed  HB1192, serves as a stopgap budget and generally provides four months of support to Commonwealth agencies with the following exceptions: • provides 100°/o of federal funds • provides 100°/o of special funds • provides 100°/o of General Fund debt service appropriations • provides $2.8 million in General Funds, as provided in HB 1192, for avian influenza preparedness • provides 100°/o of the General Fund appropriation for Regional Event Security • provides 50°/o of General Fund appropriations for the Pennsylvania Higher Education Assistance Agency • provides about 50°/o of the full-year allocation for the Commonwealth’s County Child Welfare appropriation.
Bill, together with Governor’s Veto Message, removed from table in Senate, 10/27/2015
Senate failed to override the Governor’s veto, 10/28/2015 (30-19)
Senator Corman’s motion to reconsider vote by which Senate failed to re-pass the bill, which had been disapproved by the Governor approved, 10/28/2015
SB 1001  RE: Fiscal Code Related to Stopgap Budget
Amends The Fiscal Code, in special funds, further providing for funding, for State Workers’ Insurance Board and for expiration; in the Tobacco Settlement Fund, further providing for use; in the Pennsylvania Race Horse Development Fund, further providing for distribution; in general budget implementation, further providing for the Department of Community and Economic Development and for the Pennsylvania State Police; providing for 2015-2016 budget implementation and for 2015-2016 restrictions on appropriations for funds and accounts; and making related repeals.
Bill, together with Governor’s Veto Message, removed from table in Senate, 10/27/2015

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, 10/26/2015 
LOCAL/STATE GOVERNMENT/REGULATIONS
HB 904   RE: Uniform Construction Code Application (by Rep. Mauree Gingrich, et al)
Amends the First Class Township Code adding a new article providing the Uniform Construction Code shall apply to the construction, alteration, repair and occupancy of all buildings and structures within a first class township. Allows the township commissioners to enact an ordinance to equal or exceed the minimum requirements of the Uniform Construction Code. Further provides that notwithstanding the primacy of the Uniform Construction Code, the commissioners may enact a property maintenance ordinance and may incorporated a standard or nationally recognized property maintenance code, or a variation or change or part of the code, published and printed in book form without incorporating the text of the code in the ordinance. Also allows the commissioners to enact a standard or nationally recognized property maintenance code or a change or variation or part as the ordinance. Further provides for appointment of property maintenance inspectors; legal actions; and reserved powers.
Read second time, 10/13/2015
Read third time and passed Senate, 10/14/2015 (49-0)
Approved by the Governor, 10/30/2015 Act. No. 51 of 2015
HB 1642  RE: Exempt Structures (by Rep. Tina Pickett, et al)
Amends the Pennsylvania Construction Code Act, in preliminary provisions, excluding from the act structures which are used for the direct, seasonal sale of agricultural, horticultural and food products; are open on at least one side; are operated by a farmer whose products make up not less than 50% of the commodities being sold; are temporary in nature if not located on the farmer’s property; and have an area of less than 1,000 square feet.
Introduced and referred to House Labor and Industry Committee, 10/19/2015
HB 1645  RE: Uniform Construction Code Review and Advisory Council (by Rep. Kate Harper, et al)
Amends the Pennsylvania Construction Code Act, in preliminary provisions, further providing for definitions and for Uniform Construction Code Review and Advisory Council; in Uniform Construction Code, further providing for revised or successor codes; and, in adoption and enforcement by municipalities, further providing for administration and enforcement. Among the many changes, the bill stipulates that the Uniform Construction Code Review and Advisory Council shall gather information from emergency personnel and representatives of the general public concerning issues with the Uniform Construction Code; the department shall review all updated provisions and submit recommendations; council shall hold meetings public hearings in Harrisburg, Pittsburgh, and Philadelphia; council shall submit a report to the secretary within three months of submission of the recommendations (changed from 12 months); council shall also examine the environmental impact of updated provisions; council’s decision to reject or modify an updated provision shall be by consensus of the council membership present at the council meeting; and an executive committee is established to serve as mediators in the event that the council fails to reach a consensus decision to reject or modify an updated provision.
Introduced and referred to House Labor and Industry Committee, 10/19/2015
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.
Introduced and referred to House Local Government Committee, 10/23/2015
HB 1666  RE: Pennsylvania Permit Tracking and Notification Law (by Rep. David Zimmerman, et al)
Requires the Department of Environmental Protection to maintain an online system for applicants to track the status of certain permit applications. The bill provides for permit notifications and lays out requirements for the system and electronic notifications.
Introduced and referred to Environmental Resources and Energy Committee, 10/26/2015
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.
Reported as committed from House Local Government  Committee, read first time, and laid on the table, 10/28/2015
SB 1042  RE: Conflicts of Interest (by Sen. Patrick Stefano, et al)
Amends The County Code prohibiting a county commissioner from voting on the appointment of a member of a board, authority or similar body established to improve the economic development of the county, if a member of the immediate family of the county commissioner is an executive level employee of that same entity.
Introduced and referred to Senate Local Government Committee, 10/23/2015 
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.
Reported as committed from House Professional Licensure Committee, read first time, and laid on the table, 10/21/2015
HB 1675   RE: Military Spouse License Portability Act (by Rep. Mark Rozzi, et al)
Provides for portability of professional and occupational licenses for military spouses.
Introduced and referred to House Professional Licensure Committee, 10/29/2015
LOCAL/PROPERTY TAX REFORM
HB 1256   RE: Occupation Tax (by Rep. Kurt Masser, et al)
Amends the Local Tax Enabling Act adding language providing the maximum income tax rate for a school district that levied an occupation tax for the fiscal year ending in 2015 and a municipality that levied an occupation tax for the calendar year ending December 31, 2014, shall be determined by taking the sum of the rates calculated under the legislation. Further provides the determined tax rate shall be rounded off to the nearest increment of 0.1 percent.
Rereferred to Senate Appropriations Committee, 10/19/2015
MANDATE WAIVERS
HB 1119   RE: 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.
Reported as committed from House Rules Committee and laid on the table, 9/21/2015
MECHANIC’S LIEN: NONE 
ORGANIZATIONAL STATUS: NONE 
SCHOOL CONSTRUCTION: NONE 
TRANSPORTATION
HR 519  RE: Put the Brakes on Fatalities Day (by Rep. Stan Saylor, et al)
Resolution designating October 10, 2015, as “Put the Brakes on Fatalities Day” in Pennsylvania.
Introduced as noncontroversial resolution, 10/1/2015
Adopted, 10/6/2015 (199-0)
WORKER’S COMP: NONE
Upcoming Meetings of Interest
TUESDAY – 12/8/15
House Labor and Industry Committee
8:30 a.m., Room 205, Ryan Office Building
Public hearing on: HB 635 (Evankovich) – Amends the PA Construction Code Act, in prelim. provisions, further providing for UCC Review and Advisory Council; in UCC, further providing for revised or successor codes; &, in certif. of inspectors, for education.
Remaining House and Senate Fall Session Schedule
Fall 2015 SENATE SESSION SCHEDULE
November            16, 17, 18
December             7, 8, 9
Fall 2015 HOUSE SESSION SCHEDULE
November            4 (non-voting), 5 (non-voting), 9, 10, 16, 17, 18, 23, 24, 25 (NV)
December             7, 8, 9, 14, 15, 16
Spring 2016 Session scheduled have not been announced yet
Copies of all bills of interest can be accessed here.