Pennsylvania Chapter of APA BILL TRACKING REPORT #10
Prepared By: Metta Barbour for 10,000 Friends of Pennsylvania

Bill Tracking Report

• This report is comprised of 4 pages of report and a 6 page attachment (Exhibit A) and a separate spread sheet of bills, grouped generally by subject matter. Obtain full text copies of any bill from: http://www.legis.state.pa.us/cfdocs/legis/home/session.cfm.
• The separate spread sheets of bills is an excel workbook. Newly introduced bills and bill history changes are highlighted. The workbook is subdivided into 7 separate sheets: Land Use, Infrastructure, Title 53, Downtowns, Environment, Agriculture and Historic Preservation. To access each sheet, use the tabs at the bottom left of the workbook screen. If you cannot see the tabs: maximize your view. You can print the entire workbook of 7 sheets by selecting “entire workbook” button on the print screen.

The attachment labeled Exhibit A is an excerpt from SB1102/PN1795, one of the bills that would establish the programs for spending the voter approved $250 million in borrowing for water and sewer infrastructure (referendum held on 4/27/04 authorized by HB 2332, Act No. 10). SB1102 creates the new Water Supply and Wastewater Infrastructure Capitalization Program and was amended by the Senate (SB1102/PN1795) on July 4 (following approval in both houses) to remove a number of pro-environmental or pro-planning provisions contained in the final House version (SB1102/PN 1787). The attached excerpt (Exhibit A) contain new § 1558 that lays out the program requirements for the “Water Supply and Wastewater Infrastructure Program.” The new program is “for projects which, . . . when completed, construct, expand or improve water and wastewater infrastructure which is related to economic development,” excludes (by definition) financing for water or wastewater systems that are “used solely for residential purposes,” provides that applicants for loans or grants must show, inter alia, that the project is “related to economic development,” and provides that “if the applicant has secured planning and permit approvals for the project from [DEP] . . . [t]he project must be generally consistent with any applicable county or local comprehensive plans.” $125 million is available for loans and $125 million is available for grants; grants are limited to $5 million per project and $10 million per applicant; loans cannot exceed $25 million in the aggregate per applicant. The House language (SB1102/PN 1787) that was struck by the Senate amendment included such program provisions as: the eligibility of nutrient reduction technology to reduce Chesapeake Bay pollution; requiring projects to be generally consistent with applicable municipal Sewage Facilities Act plans and having obtained the approval of the governing body of the municipality; and criteria in the House’s version of §1558(b)(7) that limited projects to those that involve existing systems, eliminate system overflows, address compelling public health or environmental concerns, or involve the design or installation of nutrient reduction technology. However, the Senate version (SB1102/PN1795) does provide for priority to be given for previously used sites, infrastructure rehabs and consistency with comprehensive plans. The Senate also includes an annual reporting requirement.

The Administration

• Slots and Property Tax Relief. In a marathon legislative session to meet the end of the fiscal year deadline, the General Assembly meeting over the July 4th weekend passed legislation to allow slots in Pennsylvania at 14 venues (HB2330/PN4272, Act No. 71) and the property tax reform measure that slots revenues would finance (SB100/PN1789, Act No. 72). The slots legislation, including § 1506, is discussed below under General Assembly. SB100, Act No. 72, entitled “The Homeowner Tax Relief Act” is the vehicle for reducing school property taxes up to 50% of the maximum allowable homestead/ farmstead exemption; an average reduction of 20% is expected. The property tax relief will be paid for with revenues from up to 61,000 slot machines to be deposited in a “Property Tax Relief Fund” established by the Dept. of Revenue and a 0.1% increase in earned income tax (EIT) collected by the participating school districts (SDs). The 38 SDs that do not levy EIT have a separate procedure. Tax relief is limited to homesteads and farmsteads; reductions do not apply to renters and businesses. Funds are provided under SB100 to Philadelphia for resident and nonresident wage tax reductions. Applications will have to be filed by property owners in order to qualify for the tax relief. Tax relief is determined by a statutory formula: SDs with high taxes and larger amounts of state aid will benefit most. Starting with the budget adoption process for FY 2006-2007, SDs participating in property tax relief under Act 72 are prohibited from raising taxes by more than the statutory index (the average of the percentage increase in the Statewide Average Weekly Wage and the Employment Cost Index for Elementary and Secondary Schools, adjusted for schools with higher aid ratios) without first obtaining the approval of the district’s voters in a “back end” referendum. The act allows some exceptions to the tax rate cap (with PDE or court approval), e.g., rapid enrollment growth, certain types of debt, emergencies, unreimbursed costs of implementing No Child Left Behind.
• Budget (HB2579/PN43216, Act No. 7A). After reaching a deal on slots and property tax reform, the state budget was approved by the General Assembly pretty much as submitted by the administration. The $22.8 billion budget for FY 2004-05 includes $200 million in block grant funding for public schools, an additional $275 million for DPW, a $8.5 million increase for mass transit (the Mass Transportation Assistance line item is $287.8 million), and $190 million toward replenishing the rainy-day fund. Libraries are still playing catch up: even with the $57.9 included in Act 7A (a $10 million increase from last year), funding cuts in the FY 2003-04 budget have left libraries in a $75 million deficit from 2002 levels. The budget represents a 4.3% increase in total spending for PA from last fiscal year.
• State Planning Board. On July 21 Gov. Rendell announced the reactivation of the State Planning Board. This advisory board, comprised of cabinet secretaries, state legislators and citizens, has a mission to monitor trends and issues of concern to the Commonwealth, gather input, develop reports and make recommendations to the Governor and the legislature on improved state policies and programs. The Governor has asked the Board to focus on: Measures to resolve conflicts among development, municipal and conservation interests on infrastructure and open-space issues. Specific policies to achieve smart-growth goals for revitalization of municipalities and sustainable economic development in rural communities. See Executive Order 2004-9. 2003 and 2004 appointees include: Robert J. Dillman, East Stroudsburg, President, East Stroudsburg University; Rubye Jenkins-Husband, Erie City Council Member; Wendell E. Pritchett, Philadelphia, Asst. Professor, University of Pennsylvania Law School; Stephen G. Pollack, Huntingdon Valley, Real Estate Attorney; Richard D. Urbano, McKees Rocks, Robinson Township Planning Director; Dennis Puko, Hermitage, Mercer County Planning Director; Ronald Bailey, Lancaster, Lancaster County Planning Director; Don Zucco, Johnstown, Mayor of Johnstown & Vice-President Crown American Corp.; Judith Schwank, Reading, Chair, County Commissioners of Berks County; Alexander J. Graziani, Greensburg, Executive Director, Smart Growth Partnership of Westmoreland County; John Westrum, Ft. Washington, President, Westrum Development Company; Alan Jennings, Bethlehem, Executive Director, Community Action Committee of the Lehigh Valley; Ellen Ferretti, Luzerne, Vice President, Pennsylvania Environmental Council for Northeastern Pa.; Jane Billings, Swarthmore, Swarthmore Borough Manager; William B. Hawk, Harrisburg, Chairman, Board of Supervisors, Lower Paxton Township.

General Assembly
Following summer recess the Senate reconvenes on September 20th and the House on September 27th.

• Failure to pass Growing Greener II (GG2), Green Ribbon Commission. No legislative action was taken on Gov. Rendell’s “quality of life” initiative to continue and increase funding for agricultural and forest preservation, Pennsylvania’s environmental programs and downtown revitalization (and that included $7.5 million for DCED/CLGS and planning). The Administration had hoped for passage of the programs to implement and pay for GG2 (HB2010, HB2621) in time to permit the ballot question on the $800 million in bond funding to be placed on the November ballot. Instead the governor and the legislative leaders agreed to the formation of a “Green Ribbon Commission,” to serve as an advisory group to study and develop recommendations for enhancing environmental programs and to determine their best funding options. Declared House Majority Leader Sam Smith: “To help protect the natural beauty of the Commonwealth for future generations, I authored Growing Greener, which has improved our quality of life and has set an example for other states to follow. Our members are committed to conservation and smart growth. Republicans recognize the need for a long-term commitment to the state’s environmental needs such as preserving open space in the east, reclaiming abandoned mines in the west and solidifying the Hazardous Sites Cleanup Fund Statewide.”
• Exemption from land use regulation for gaming expansion. HB2330/PN4272, Act No. 71, authorizes up to 61,000 slot machines in Pennsylvania at 14 locations, which slots proponents expect to generate $3 billion annually in gross revenue. The bill mandates the split of revenues: 46% for licensees, 34% for the Commonwealth and 20% for the horse industry, public construction projects and the municipalities in which the slots parlors are located. Act 71 establishes a Gambling Control Board to issue licenses, administer, monitor, and supervise operations and the collection and distribution of revenues. Sec. 1506 of Act 71 contains an exemption from land use regulation for slots parlors: “The conduct of gaming as permitted under this part, including the physical location of any licensed facility, shall not be prohibited or otherwise regulated by any ordinance, home rule charter provision, resolution, rule or regulation of any political subdivision or any local or state instrumentality or authority that relates to zoning or land use to the extent that the licensed facility has been approved by the Board.” With the level of money at stake and expected adverse impacts of slots operations (traffic, parking, lights, 24 hour operations, etc.), the inevitable result of local regulation would be to entangle slots development in delay and litigation, and this was not politically acceptable under circumstances where both the Administration and the legislators justified gaming expansion as property tax reform (SB100), and where property tax reform has a time schedule that requires sufficient revenues starting in FY 2005-2006.
• Funding to stabilize mass transit. SB1162/PN1699 and HB 2697/PN4109 introduced June 14 and June 17, respectively, would amend Title 74 (Transportation) and 75 (Vehicles) to increase funding for SEPTA and 73 other mass transit systems in Pennsylvania by lifting the $75 million funding cap and raising the sales and use tax (SUT) allocation for public transit from 1.6% to 3.22% (approximately $282 million in additional funding; $174 would go to SEPTA).
• Economic Competitiveness Commission. HR735/PN4152 establishes a 20 member bipartisan and intergovernmental commission (and with 6 additional ex-officio nonvoting cabinet and agency heads) of public and private sectors to review published studies and current laws, policies, practices and investments and then make recommendations that will provide guidance for administrative and legislative changes to improve the economic competitiveness of Pennsylvania’s cities, boroughs and rural communities. The report of the commission is due 11/30/04.

Reports and ACRE Initiative

• On August 10 DEP Secretary McGinty and Agriculture Secretary Wolff unveiled ACRE, a “sweeping initiative to enhance the state’s reputation as a leader in agricultural and environmental stewardship [that is intended to] usher in a new era of negotiation rather than litigation in local disputes over changing farm operations and put in place some of the most comprehensive environmental-quality protections in the nation.” This program would address the conflicts between local land use regulation and farming operations and the issues underlying the passage and veto of HB1222/PN3127. For more information on ACRE (Plan to Protect Agricultural, Communities and the Rural Environment) visit DEP’s Web site at www.dep.state.pa.us, keyword: “DEP CAFOs.”
• On July 28 the Chesapeake Bay Foundation released a new report targeting animal manure as the leading source of nutrient pollution to local waterways and the Chesapeake Bay. For more information, a copy of the report and the report’s executive summary go to: www.cbf.org.
• After running budget deficits for a decade, on Dec. 29, 2003, Pittsburgh was designated by DCED Secretary Yablonsky as “financially distressed” under Act 47 of 1987, the Municipalities Financial Recovery Act. On May 26 the Recovery Plan for Pittsburgh was released. The text of the Plan is available on the City’s web site at www.city.pittsburgh.pa.us.
  

PRIOR PRINTER'S NOS. 1650, 1666, 1690, PRINTER'S NO. 1795

1709, 1756, 1764, 1787

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No. 1102 Session of 2004

INTRODUCED BY GORDNER, JUBELIRER, BRIGHTBILL, MADIGAN, WENGER, RHOADES, LEMMOND, ORIE, RAFFERTY, ERICKSON, PILEGGI, CORMAN, SCHWARTZ, C. WILLIAMS, PIPPY, EARLL, MOWERY, WAUGH, THOMPSON, BOSCOLA, PUNT AND ROBBINS, MAY 26, 2004

SENATE AMENDMENTS TO HOUSE AMENDMENTS, JULY 4, 2004

AN ACT

1 Amending Titles 12 (Commerce and Trade) and 64 (Public

2 Authorities and Quasi-Public Corporations) of the

3 Pennsylvania Consolidated Statutes, FURTHER PROVIDING FOR <--

4 DEFINITIONS, FOR APPLICATION, FOR REVIEW AND FOR APPROVAL;

5 providing for water supply and wastewater infrastructure

6 capitalization; authorizing debt; defining "investor-owned <--

7 water or wastewater enterprise"; and providing FURTHER <--

8 PROVIDING FOR DEFINITIONS; AUTHORIZING DEBT; AND PROVIDING

9 FOR THE FIRST INDUSTRIES PROGRAM AND for Water Supply and

10 Wastewater Infrastructure Program.

11 The General Assembly of the Commonwealth of Pennsylvania

12 hereby enacts as follows:

* * *

20040S1102B1795 - 1 -

* * *

7 Section 45. Title 64 is amended by adding a section to <--

8 read:

9 § 1558. Water Supply and Wastewater Infrastructure Program.

10 (a) Establishment.--There is established a program to be

11 known as the Water Supply and Wastewater Infrastructure Program.

12 The program shall provide financial assistance in the form of

13 single-year or multiyear grants to municipalities and municipal

14 authorities and in the form of loans to municipalities,

15 municipal authorities, industrial development corporations and

16 investor-owned water or wastewater enterprises for projects

17 which, when completed, construct, expand or improve water and

18 wastewater infrastructure WHICH IS RELATED TO ECONOMIC <--

19 DEVELOPMENT.

20 (b) Application.--A municipality, a municipal authority, an

21 industrial development corporation or an investor-owned water or

22 wastewater enterprise may submit an application to the authority

23 requesting financial assistance for a project. The application

24 must be on the form required by the board and must include or

25 demonstrate all of the following:

26 (1) The name and address of the applicant.

27 (2) A statement of the type and amount of financial

28 assistance sought. If the applicant is requesting financial

29 assistance in the form of a grant, the request may not exceed

30 75% of the cost of the project.

20040S1102B1795 - 23 -

1 (3) A statement of the project, including a detailed

2 statement of the cost of the project.

3 (4) A financial commitment from a responsible source for

4 any cost of the project in excess of the amount requested. If

5 the applicant is requesting financial assistance in the form

6 of a grant from the department, the financial commitment may

7 not be in the form of a grant from a Commonwealth agency.

8 (5) A firm commitment from the project user to use the

9 project upon completion.

10 (6) Proof that the applicant has secured planning and

11 permit approvals for the project from the Department of

12 Environmental Protection.

13 (7) Documentation that the project meets at least one of <--

14 the following criteria:

15 (i) The project will repair or rehabilitate existing

16 sewer and water systems that are unsafe or unreliable and

17 that threaten public health and water quality.

18 (ii) The project will eliminate existing combined

19 sewer overflow and sanitary sewer overflow problems while

20 ensuring that all combined and sanitary sewage discharges

21 comply with Federal and State requirements pursuant to

22 the Federal Water Pollution Control Act (62 Stat. 1155,

23 33 U.S.C. § 1251 et seq.) and the act of June 22, 1937

24 (P.L.1987, No.394), known as The Clean Streams Law.

25 (iii) The project will provide support for

26 alternative approaches to address combined sewer overflow

27 and sanitary sewer overflow problems, including

28 distributed storm water and decentralized wastewater

29 treatment.

30 (iv) The project will repair, rehabilitate or

20040S1102B1795 - 24 -

1 otherwise use in-place surplus capacity for economic

2 development in existing communities that are currently

3 served by existing sewer and water systems.

4 (v) The project will construct sewer or water

5 infrastructures where there are compelling public health

6 or environmental issues or an economic development

7 project that redevelops, reuses or revitalizes previously

8 developed land and can only be resolved by constructing

9 such infrastructures. Such infrastructures must be

10 generally consistent with applicable municipal plans

11 under the act of January 24, 1966 (1965 P.L.1535,

12 No.537), known as the Pennsylvania Sewage Facilities Act,

13 and county and local comprehensive plans.

14 (vi) The project will be designed, installed and

15 operated for purposes that benefit the environment or

16 improve public health including the design, installation

17 and operation of nutrient reduction technology at

18 municipal wastewater treatment plants that contribute to

19 the impairment of local or downstream water quality or

20 impact living resources or public health.

21 (8) (7) Any other information required by the board. <--

22 (c) Review and approval of grant applications.--

23 (1) If an applicant is requesting financial assistance

24 in the form of a grant, the authority, in conjunction with

25 the Department of Environmental Protection, shall review the

26 application to determine all of the following:

27 (i) That the applicant is not: <--

28 (A) an investor-owned water or wastewater

29 enterprise;

30 (B) an industrial development corporation which

20040S1102B1795 - 25 -

1 is not exempt from taxation under section 501(c)(3)

2 of the Internal Revenue Code of 1986 (Public Law 99-

3 514, 26 U.S.C. § 501(c)(3)); nor

4 (C) acting through a wholly owned subsidiary

5 which is not exempt from taxation under section

6 501(c)(3) of the Internal Revenue Code of 1986 (26

7 U.S.C. § 501(c)(3)).

8 (ii) If there is a financial commitment for at least

9 25% of the project.

10 (iii) If the source of the financial commitment is

11 from a responsible source.

12 (iv) If the applicant is firmly committed to using

13 the project upon completion.

14 (v) If the

15 (I) THAT THE APPLICANT IS NOT AN INVESTOR-OWNED <--

16 WATER OR WASTEWATER ENTERPRISE .

17 (II) IF THE PROJECT IS RELATED TO ECONOMIC

18 DEVELOPMENT.

19 (III) IF THERE IS A FINANCIAL COMMITMENT FOR AT

20 LEAST 25% OF THE PROJECT.

21 (IV) IF THE SOURCE OF THE FINANCIAL COMMITMENT IS

22 FROM A RESPONSIBLE SOURCE.

23 (V) IF THE APPLICANT IS FIRMLY COMMITTED TO USING

24 THE PROJECT UPON COMPLETION.

25 (VI) IF THE applicant has secured planning and

26 permit approvals for the project from the Department of

27 Environmental Protection. The project must be generally

28 consistent with applicable municipal plans under the <--

29 Pennsylvania Sewage Facilities Act, and county and ANY <--

30 APPLICABLE COUNTY OR local comprehensive plans.

20040S1102B1795 - 26 -

1 (vi) (VII) That the applicant did not receive a <--

2 grant or loan under section 1551 (relating to Business in

3 Our Sites Program) for the project.

4 (vii) (VIII) If the applicant complied with all <--

5 other criteria established by the board.

6 (2) Upon being satisfied that all program requirements

7 have been met, the authority may approve the application in

8 accordance with all of the following:

9 (i) The grant may not exceed $5,000,000 per project.

10 (ii) Grants under this program shall not exceed

11 $10,000,000 in the aggregate per municipality or

12 municipal authority.

13 (iii) The aggregate amount of grants awarded under

14 this subsection shall not exceed $125,000,000.

15 (iv) Any grant provided for economic development <--

16 under this section that pays for more than $500,000 in

17 infrastructure improvements, water supply or wastewater

18 facilities located on the site of a private facility that

19 has or will be receiving additional economic development

20 assistance or job creation tax credits from the

21 Commonwealth shall include a clawback provision that

22 ensures that if the facility is closed or is sold within

23 five years after the approval of the application, the

24 Commonwealth shall request reimbursement for the specific

25 cost of that infrastructure and shall place a lien for

26 that amount on the real property of that facility.

27 (IV) THE BOARD HAS RECEIVED NOTICE FROM THE <--

28 SECRETARY OF THE BUDGET THAT THE PROJECT SATISFIES THE

29 FEDERAL TAX STATUS REQUIREMENTS OF ANY BONDS USED TO FUND

30 THE GRANT.

20040S1102B1795 - 27 -

1 (3) If the authority approves the application, the

2 authority shall notify the department of the amount approved.

3 (4) Nothing in this subsection shall be construed to

4 prohibit the awarding of grants to municipalities in which

5 the water supply or wastewater services are provided in whole

6 or in part by an investor-owned water or wastewater

7 enterprise.

8 (d) Review and approval of loan applications.--

9 (1) If an applicant is requesting financial assistance

10 in the form of a loan, the authority, in conjunction with the

11 Department of Environmental Protection, shall review the

12 application to determine all of the following:

13 (I) IF THE PROJECT IS RELATED TO ECONOMIC <--

14 DEVELOPMENT.

15 (i) (II) If a financial commitment exists for any <--

16 cost of the project in excess of the amount requested.

17 (ii) (III) If the source of the financial commitment <--

18 is from a responsible source.

19 (iii) (IV) If the project user is firmly committed <--

20 to using the project upon completion.

21 (iv) (V) If the applicant has secured planning and <--

22 permit approvals for the project from the Department of

23 Environmental Protection. The project must be generally

24 consistent with applicable municipal plans under the <--

25 Pennsylvania Sewage Facilities Act, and county and local

26 comprehensive plans.

27 (v) That the applicant did not receive a grant or <--

28 loan under section 1551 for the project.

29 ( vi) If the applicant complied with all other

30 criteria established by the board.

20040S1102B1795 - 28 -

1 (2) Upon being satisfied that all program requirements

2 have been met, the board may approve the application in

3 accordance with all of the following:

4 (i) The loan may not exceed $5,000,000 per project.

5 (ii) Loans under this program shall not exceed

6 $10,000,000 $25,000,000 in the aggregate per applicant. <--

7 (III) THE BOARD SHALL GIVE PRIORITY CONSIDERATION TO <--

8 PROJECTS WHICH WILL RESULT IN THE INVESTMENT OF PRIVATE

9 CAPITAL IN PENNSYLVANIA ENTERPRISES AND COMMUNITIES AND

10 IN THE CREATION OF NEW JOBS IN THIS COMMONWEALTH. THE

11 BOARD MAY ALSO CONSIDER PROJECTS WHICH:

12 (A) ARE NECESSARY FOR AND INTEGRAL TO THE

13 REDEVELOPMENT OF A PREVIOUSLY USED SITE;

14 (B) WILL REHABILITATE OR REPLACE EXISTING

15 INFRASTRUCTURE WHICH IS FAILING; OR

16 (C) WILL DEVELOP OR REDEVELOP A SITE WHICH IS

17 PLANNED FOR DEVELOPMENT AND IS GENERALLY CONSISTENT

18 WITH COUNTY AND LOCAL COMPREHENSIVE PLANS.

19 (IV) THE BOARD MUST RECEIVE NOTICE FROM THE

20 SECRETARY OF THE BUDGET THAT THE PROJECT SATISFIES THE

21 FEDERAL TAX STATUS REQUIREMENTS OF ANY BONDS USED TO FUND

22 THE LOAN.

23 (3) If the authority approves the application, the

24 authority shall notify the department of the amount approved.

25 (e) Report to General Assembly.--

26 (1) The authority shall submit an annual report to the

27 General Assembly no later than September 1 following the

28 first fiscal year, or any portion thereof, in which the

29 program is in effect, and no later than September 1 for all

30 succeeding fiscal years in which the program is in effect.

20040S1102B1795 - 29 -

1 The report shall include a list of all of the recipients of

2 grants and loans awarded by the authority in the previous

3 fiscal year, the amount of the grants or loans awarded, a

4 description of the project and the public purposes that it

5 advances and the documentation submitted by the applicant

6 demonstrating that the project met at least one of the

7 criteria of subsection (b)(7).

8 (2) The authority shall post a copy of the report to the

9 General Assembly on the World Wide Web site of the Department

10 of Community and Economic Development and the World Wide Web

11 site of the Department of Environmental Protection. The

12 reports shall remain on the sites until the reports for the

13 next year are posted.

14 (F) DEFINITION.--AS USED IN THIS SECTION, THE TERM "PROJECT" <-

15 INCLUDES AN ACTIVITY TO:

16 (1) ACQUIRE LAND, EASEMENTS OR RIGHTS-OF-WAY; OR

17 (2) CONSTRUCT, IMPROVE, EXPAND, EXTEND, REPAIR OR

18 REHABILITATE A WATER SYSTEM OR WASTEWATER SYSTEM ARISING FROM

19 AN ECONOMIC DEVELOPMENT PROJECT.

20 Section 5 6. This act shall take effect immediately. <--

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