June 24, 2016

Weekly Wrap:

With the end of the fiscal year looming, it’s been all budget all the time in Harrisburg. The House of Representatives returned on Monday with the intention to continue daily voting sessions until the June 30 budget deadline, and the Senate returned Wednesday with the same strategy in mind. Though by now the schedule has changed, we’ve seen some progress on the budget that could indicate that the process is indeed moving forward.

Earlier this week, Gov. Tom Wolf announced that he will no longer pursue an increase in the state sales tax or personal income tax as a means to raise revenue to balance the state budget. This probably isn’t surprising, given that the will to increase taxes is especially low in election years; however, it does keep the issue of how to raise revenue to fund the state through the 2016-2017 fiscal year on the table, and it seems that “sin is in.” Earlier this month, the legislature enacted liquor modernization reforms which would raise $150 million in revenue, and this week, the House advanced legislation that would expand legalized gaming to include the regulation of fantasy sports betting, online gambling and slot machines at airports, which would generate $266.5 million in revenue. Though it hasn’t been a topic of discussion lately, the Governor also proposed an increase on the Cigarette Tax in the amount of $2.60 per pack (currently $1.60), which if enacted, could add another $468,100,000 to the pot.

Read more about the budget here: http://www.pennlive.com/politics/index.ssf/2016/06/another_state_budget_debate_wh.html

Read more from Wolf here: http://www.post-gazette.com/early-returns/erstate/2016/06/21/Wolf-says-he-will-not-ask-for-tax-hikes/stories/201606210134

There’s also talk of reinstating the gross receipts tax on natural gas sales. Democrats claim that this could raise about half a billion dollars in new revenue, but reception from republicans has been lukewarm, at best.

Read more here: http://triblive.com/state/pennsylvania/10683039-74/tax-gas-natural

Even though we’re not sure how anyone plans to raise the money, bills to spend the money have been moving quickly this week. The “special fund” appropriations (those that transfer money to self-funded agencies and boards) finally passed the House this week and are now before the Senate for consideration, as are the non-preferred appropriations bills (those that grant appropriations for the state-related universities). However, H.B. 1999 (Adolph, R-Delaware), this year’s General Appropriations Bill, is still holed up in the House Appropriations Committee (though it may move before the weekend is through; see below).

The legislature also moved some bills that could be used as potential vehicles for substantive legislation needed for a complete spending package. Most years, we can expect to see bills enacted that amend the Public School, Human Services, Fiscal and Tax Reform Codes to provide directives on how to spend money doled out in a General Appropriations Bill. Of note, the House finally passed H.B. 1888 (Quinn, R-Bucks), amending the Tax Reform Code to provide for a tax amnesty program, and the House Health Committee reported out H.B. 2211 (Baker, R-Bradford), making omnibus amendments to the Human Services Code. The Senate advanced S.B. 1320 (Browne, R-Lehigh), amending the Fiscal Code and providing for general restrictions on appropriations. It’s hard to say with certainty which bills will ultimately be used to get a completed budget package across the finish line. Bills that have been parked in a committee for months on end can pop up in a game of legislative whack-a-mole; we’ll do our best to keep readers posted as bills are put in place in the coming days.

Moving away from the budget, there was plenty of other action in each chamber this week. The House passed H.B. 1948 (Rapp, R-Crawford), which would amend the Abortion Control Act to disallow abortions after 20 weeks of gestational development. The bill, which passed the House by a vote of 132-65 after a lengthy debate, now heads to the Senate for consideration. However, the Governor has already issued a statement that if the Senate sends the bill to his desk, it will be vetoed in short order.

Read more from the Governor here: http://wallaby.telicon.com/PA/library/2016/2016062170.HTM

The House passed two education bills to enhance online learning opportunities in the Commonwealth: H.B. 1578 (Fee, R-Lancaster), which establishes the E-chievement program and H.B. 1915 (Ortitay, R-Allegheny), which requires on online clearing house for online courses for students enrolled in high school. Both bills now head to the Senate for consideration. The House also passed a package of bills to begin to address the state’s opioid epidemic: H.B. 1698 (Heffley, R-Carbon), requiring insurance coverage for abuse deterrent drugs; H.B. 1699 (Brown, R., R-Monroe), regulating the prescription of opioids in E.R’s; and H.B. 1805 (Masser, R-Northumberland), requiring professional education in pain management. Finally, the House advanced H.B. 1871 (Taylor, R-Philadelphia), a proposed constitutional amendment that would update  the Uniformity Clause to allow Philadelphia to alter its tax structure to maximize the city’s revenue, and S.B. 514 (Vance, R-Cumberland), which would address the issue of biosimlar substitutions under the Generic Equivalent Drug Law.

Moving to the Senate, the Senate Urban Affairs and Housing Committee reported out S.B. 1307 (Browne, R-Lehigh), which would disallow discrimination in housing and employment based on “sex, sexual orientation, gender identity or expression.” The bill does not address the issue of discrimation in “public accommodations.” The Senate also non-concurred in the House’s amendments to S.B. 1071 (Browne, R-Lehigh), which is a comprehensive pension reform bill that is now positioned to be used for any agreement that may be reached on pension reform.

Pennsylvania put a few new laws on the books this week, too. S.B. 1077 (Vogel, R-Beaver) was signed by the Governor and would allow school districts to make electronic notification of audio taping on school buses. The Governor also  put his John Hancock on S.B. 279 (Hutchinson, R-Butler), which creates the Penn Grade Crude Oil Advisory Council, but also abrogates recent regulations related to conventional oil and gas wells; the abrogation will send those regulations (Chapter 78) back to the drawing board, however it allows the regulations for unconventional oil and gas wells (Chapter 78a) to take effect, and S.B. 1195 (White, R-Indiana) which extends the time the state has to comply with the EPA Clean Power Plan. The bills have been numbered Act 52 and Act 57 respectively.

Further from the energy world, the Department of Environmental Protection issued a notice this week that grants are still available under the Alternative Fuel Vehicle Rebate Program. For more information, read the notice here: http://www.pabulletin.com/secure/data/vol46/46-26/1077.html

A Look Ahead:

House Appropriations Committee members are expected in Harrisburg on Sunday evening for a committee meeting to be held at 8:00 p.m. No agenda has yet been posted, but we’re hopeful the purpose of the meeting is to vote on H.B. 1999 (Adoph, R-Delaware), this year’s General Appropriations bill , in order to position it to cross the finish line by Thursday, June 30. Come Monday, both the House and Senate will return to Harrisburg for voting session for what we can only hope is the budget home stretch.

Expect to see Rules Committee and Appropriations Committee meetings in each chamber throughout the week. Other notable committee meetings that have been scheduled include Monday’s House Environmental Resources and Energy Committee meeting to consider H.B. 1391 (Everett, R-Lycoming), amending the Oil and Gas Lease Act to provide for minimum royalty payments, and the House Agriculture And Rural Affairs Committee meeting to consider to consider S.B. 1229 (Vogel, R-Beaver), amending the Administrative Code to provide for the Pennsylvania Breeding Fund.

Read H.B. 1391 here: http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=H&type=B&bn=1391

Read S.B. 1229 here: http://www.legis.state.pa.us/cfdocs/billInfo/billInfo.cfm?sYear=2015&sInd=0&body=S&type=B&bn=1229

For a full list of committee meetings, go to: http://www.legis.state.pa.us/cfdocs/legis/home/session.cfm

For expected action on the House Floor, check out the House Calendar: http://www.legis.state.pa.us/WU01/LI/SC/HC/0/RC/CAL.PDF?r=1466785903971

For expected action on the Senate Floor, check out the Senate Calendar when it is posted here: http://www.pasen.gov/

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