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        Number 22
 November 2
, 2012

www.pacounties.org

LEGISLATIVE BULLETIN
An e-newsletter of the County Commissioners
Association of Pennsylvania

 

Serving Counties Since 1886
In This Issue
At-Risk Bridge Funding
Draft P3 Guidelines Released
Clean and Green Changes Enacted
Long-Term Care Facility Employee Screening Changes
October Revenue Collections Released
Independent Fiscal Office Tax Burden Report
Automotive Fuel Testing Authorized
Fall Conference Voting Session
CCAP Policy Setting at Fall Conference
 
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The November 2, 2012 Legislative Bulletin is being resent because the links were not live in the first one sent.   

AT-RISK BRIDGE FUNDING

 

Act 13, which established shale gas impact fees, provides that, after certain off-the-top distributions, 60 percent of revenues go to host counties and their municipalities, and 40 percent of revenues go to the Marcellus Legacy Fund. Percentages of the Fund are then redistributed among a variety of program areas; for counties, 15 percent of the Fund is allocated directly to counties for environmental and recreation projects, and 25 percent is distributed to counties through PennDOT

 

In a meeting with PennDOT secretary Barry Schoch, he indicated that their current plan is to make a direct payment by electronic transfer to each county on December 1, 2012 and on August 1 of each year thereafter. By statute, the distribution will be to all counties, based on relative population, with a $40,000 per county minimum.

 

Counties would be permitted to apply the funds, at their discretion, to any bridge project on the county Transportation Improvement Plan (TIP), including both county and municipal bridges. PennDOT believes that using the funds for TIP projects satisfies the Act's requirements that the funds be spent on at-risk bridges (all TIP bridges are structurally deficient) and that PennDOT approval be acquired (the TIP is already approved by PennDOT). The Department is still finalizing reporting requirements, with an intent of appending it to some existing report rather than creating a new one. A letter will be sent to counties in mid-November to confirm details.

to fund replacement or repair of locally owned at-risk bridges.

DRAFT P3 GUIDELINES RELEASED

 

PennDOT has released a draft manual of guidelines for implementation of public private partnerships for transportation projects under Act 88 of 2012. The law allows the state, as well as municipal governments, to enter into contracts for transportation projects that transfer the rights for use or control of transportation facilities to a public or private development entity. That entity is then entitled to all or a portion of the revenue generated from a transportation facility in return for providing the related service.

 

The draft manual addresses the organizational structure of the P3 Transportation Board and P3 Office within PennDOT and outlines their functions. It further defines an eligible transportation project as one that provides or improves a transportation facility that is totally or partially located in the Commonwealth, which could include an existing or new road, bridge, tunnel, overpass, ferry, busway, guideway, public transportation facility, vehicle parking facility, port facility, airport, station or terminal, among other projects.

 

The draft guidelines also discuss how projects will be identified, both from solicited and unsolicited sources, and outlines how a P3 transportation project proposal may be submitted by a private firm to the P3 Transportation Board, to the P3 Office, or directly to a public entity. In addition, the draft guidelines lay out what information will be required as part of a proposal and the screening process that would be used, specifically through the development and application of a best value analysis. This best value methodology would take into account technical and financial elements of a project considered for a P3 and compare it with a traditional project delivery approach. Finally, the draft guidelines walk through the procurement process of approved projects.

 

PennDOT's Office of Policy & Public Private Partnerships is accepting comments on the draft guidelines until November 21. A copy of the draft manual is available for review by going to www.dot.state.pa.us and clicking "P3 Information" on the right side of the page. The membership of the Public Private Partnership Transportation Board can also be found here.

CLEAN AND GREEN CHANGES ENACTED
 

The Governor has signed into law Senate Bill 1298, introduced by Sen. Lloyd Smucker (R-Lancaster), which makes changes to the Clean and Green Act to specifically allow composting as an eligible activity on land enrolled in the program.

 

The legislation, now Act 190 of 2012, defines compost as material resulting from the biological digestion of dead animals, animal waste or other biodegradable materials. Although a portion of the composted material could come from off the property, such as restaurant waste, at least half of the material composted must be from products commonly produced on farms. The act applies retroactively to any facility actively appealing a Clean and Green ruling relating to composting at the time of enactment, which is the case in Lancaster County.

 

The legislation was amended prior to final passage to include language regarding rollback taxes for property used for commercial sales of agriculturally related products. Under prior law, a landowner was permitted to use up to two acres of Clean and Green property for such purposes, with rollback taxes imposed on the land where the commercial sales took place. Act 190 prohibits rollback taxes from being imposed if the commercial sales take place on less than one-half of an acre, at least 50 percent of the products are produced on the tract of land, and no new utilities or buildings are required.

LONG-TERM CARE FACILITY EMPLOYEE SCREENING CHANGES 

          

Gov. Corbett has signed HB 2407, introduced by Rep. Joe Hackett (R-Delaware), into law as Act 175 of 2012, providing the Department of Aging increased flexibility in their fingerprinting methods used for background checks of employees of long-term care facilities, including county nursing homes.

 

Under Act 175, the Department may electronically 

transmit applicants' fingerprints to the FBI and electronically receive criminal background history checks from the FBI. While the Department began using electronic fingerprinting in early June, eliminating the need for hard copies, Act 175 now allows the Department to also receive documents from the FBI electronically in return, instead of by hard copy. The change to paperless documents will reduce Department of Aging costs, and will streamline the process for long-term care facilities in making hiring and, as warranted, termination decisions.

OCTOBER REVENUE COLLECTIONS RELEASED

  

The state Department of Revenue has indicated that Pennsylvania collected $2 billion in General Fund revenue in October, 3.6 percent more than anticipated. Fiscal year-to-date collections total $8.1 billion, about one percent above estimates. 

 

While overall revenues are above estimate, sales tax revenues were $2.9 million below estimate in October, and are about $74 million, or 2.4 percent, less than estimates for the fiscal year so far. On the other hand, corporate tax revenues in October were $49.8 million above estimate, with fiscal year-to-date collections $136.2 million, or 18.6 percent, above estimate. More detail on the report can be found at www.revenue.state.pa.us.

INDEPENDENT FISCAL OFFICE TAX BURDEN REPORT

  

The state's Independent Fiscal Office (IFO), which provides economic and fiscal analysis to the General Assembly, recently released a report comparing the relative state and local tax burden across all states, as well as the distribution of taxes across state and local revenue sources in Pennsylvania.

 

Using data from FY 2010 and 2011, the study shows that Pennsylvania ranked 31st in the ratio of property tax to personal income, at 3.03 percent, and 39th in sales tax to personal income at 2.05 percent. The state ranks 16th on the ratio of income tax to personal income at 2.63 percent, and 8th based on the ratio of corporate income tax to personal income at 0.55 percent (taking into account the weighted sales factor in the apportionment formula).

 

Comparing the ratio of all taxes to income, Pennsylvania ranked 20th withan overall rate of 10.58 percent, lower than neighboring states New York, New Jersey, Ohio, Delaware and West Virginia, but higher than Maryland. The report shows that this ratio has changed very little in the last fifteen years, with a total tax-to-income ratio of 10.44 percent in 1995. The full report can be found on the IFO's website at www.ifo.state.pa.us.

AUTOMOTIVE FUEL TESTING AUTHORIZED

  

Act 208 of 2012 authorizes the state Department of Agriculture to establish a program of testing and disclosure for automotive fuel content on a random, unannounced basis. Previously SB 341, introduced by Sen. Stewart Greenleaf (R-Montgomery), the new law also allows the Department to enter into agreements with county and city sealers of weights and measures to conduct octane testing under any program it develops, but there is no requirement for local governments to do so. If a county or city chooses to enter into such an agreement, any revenues generated from enforcement activities carried out by the local sealer are retained by the city or county. Act 208 takes effect in late November.

FALL CONFERENCE VOTING SESSION

  

Several matters will be coming before the CCAP membership at a voting session scheduled at the Fall Conference. The Conference is November 18 to 20 at the Hotel Hershey, and the voting session is Tuesday, November 20. The agenda includes votes on the Association's corporate mission statement, 2013 action plan, and 2013 dues schedule. Also on the agenda are four proposed bylaws changes; two make ad hoc committees permanent standing committees, one changes the membership of the resolutions committee, and the last deals with regional membership on policy committees. The agenda may also include a special election to fill a vacancy in the office of CCAP second vice president, pending the outcome of Greene County commissioner and current second vice president Pam Snyder's race for a House seat. The draft bylaws changes have been emailed to the membership, and the remaining voting information will be emailed the week of November 5.

CCAP POLICY SETTING AT FALL CONFERENCE 

 

CCAP policy committee members will meet Nov. 18 in conjunction with the CCAP Fall Conference to develop their 2013 work plans and to set legislative and policy priorities for 2013. A date for the formal announcement of the priorities at the State Capitol in Harrisburg will also be finalized during the conference.

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