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        Number 14
 July 10
, 2015

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

 

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TOP COUNTY PRIORITY NOW LAW

  

 Gov. Wolf has signed counties' top 2015 legislative priority, 911 services system reform, into law as Act 12 of 2015. And now with a tight timeline - part of the act was effective on its June 29 signature and the remainder, including the fee, takes effect August 1 - the Pennsylvania Emergency Management Agency (PEMA), telephone providers, and counties have begun work on its implementation. 

 

PEMA had in fact begun work in anticipation of signature, including preparing to solicit nominations for and convene the Act's new 911 Board, performing test runs of the interim distribution formula for the 911 Fund, establishing cash flow procedures among the Department of Revenue, Treasurer, and Budget Office, providing initial training and guidance to county 911 directors, and determining management of the 2015 allocations awarded to counties under the prior law.

 

Upcoming tasks for PEMA and the Board include guidance to communications providers on remittance of the new fee and initiation of the Next Generation 911 capacity inventory required under the act. In addition, they will begin work on updates to the statewide 911 plan under the act's new standards, the permanent funding distribution formula, and the study of system configuration and funding required to be submitted to the General Assembly within two years.

 

CCAP extends its special thanks to House Veterans Affairs and Emergency Preparedness Committee chair and prime sponsor of Act 12's HB 911, Rep. Steve Barrar (R-Delaware), his Senate committee counterpart Sen. Randy Vulakovich (R-Allegheny), and their staff, for exceptional effort and understanding, as well as to the committees' minority chairs Rep. Chris Sainato (D-Lawrence) and Sen. Jay Costa (D-Allegheny), for a unified, bipartisan approach as the bill developed and worked its way through the legislative process.

 

The act represents more than two years of work among CCAP, PEMA, communications providers and 911 professionals to develop and advocate the comprehensive rewrite, and thanks go to all of those participants as well.

 

CCAP has also held briefing sessions with its membership, and has distributed a sample resolution for counties to adopt relative to receipt of the new funds, as required by the Act. Additional information about Act 12 and its implementation, including an outline and analysis of the legislation, is available on CCAP's 911 Funding and System Reform web page.

FISCAL YEAR BEGINS WITHOUT STATE BUDGET

  

On June 26, the House and Senate Republican leadership announced that they would advance a 

$30.2 billion state budget for FY 2015-2016 without the Governor's agreement. Their budget represented an increase of slightly more than $1 billion (3.6 percent) over FY 2014-2015 but less than the $31.6 billion budget proposed by Gov. Wolf in March. It did not include any tax increases. The Republican budget was amended into HB 1192 and sent to the Governor ahead of the June 30 deadline. However, Gov. Wolf vetoed HB 1192, issuing his veto message on the evening of June 30. Gov. Wolf also vetoed liquor privatization legislation as well as budget implementation language in the Public School Code and Fiscal Code and, just before the Bulletin went to print, vetoed reforms to the state and school pension systems.

 

Part of the Fiscal Code amendments (SB 655) was a $1.5 million pilot grant program within the Department of Drug and Alcohol Services for non-narcotic medication assisted substance abuse treatment. The program was designed to increase opportunities for counties to provide long-acting non-narcotic, non-addictive medication (known as Vivitrol) combined with comprehensive substance abuse treatment to eligible offenders on release from county prisons.

 

Without an appropriations bill signed into law, the commonwealth has lost its authority to spend funds and pay most of its bills and obligations for FY 2015-2016. The Governor has sent a letter to key stakeholders sharing details of the impact of a potential budget impasse. A copy of that letter and a link to frequently asked questions outlining which funds may continue to be distributed and which may not are found on CCAP's Budget News and Updates page, as is the Governor's veto message. Regularly distributed allocations for services such as mental health, drug and alcohol, child welfare, and other critical assistance programs will stop until a new budget is finalized and legislatively enacted with the Governor's signature. Medicaid-funded services are expected to continue to receive reimbursements, including payments to hospitals and nursing homes for care of Medicaid-eligible patients and residents.

 

Legislative and administrative staff are reported to be meeting to negotiate a budget agreement, and the Senate has scheduled session days for the week of July 13, and the House is coming in the week of July 20. In the meantime, details about the Governor's proposal and the budget outlined in HB 1192, either of which could provide a basis for a future budget agreement, are available on CCAP's budget page. In particular, counties should note that HB 1192 attempted to decrease funding for county child welfare agencies through rebalancing, but information provided indicates that the funding assumptions used for rebalancing are inaccurate. If rebalancing remains part of a final budget, it will seriously endanger the ability of county child welfare agencies to meet their mandates, which have dramatically increased as a result of recently enacted changes in child protection laws. Counties are experiencing major growth in call volumes due to these new laws, which will require budget adjustments for FY 2015-2016.

 

In addition,CCAP members are asking the Governor and the General Assembly, as a priority for 2015, to restore the ten percent reduction to the seven line items that are part of the Human Services Block Grant and affect core services across all 67 counties. The request is consistent with the Governor's budget proposal, which called for a three-year restoration of the Block Grant lines, with a $28 million increase intended for FY 2015-2016.

 

Counties are encouraged to continue to contact their legislators to encourage them to share support of counties' priorities in the FY 2015-2016 budget with their leadership. Sample letters and talking points can be found on CCAP's Legislative Action Center
. 

HOTEL TAX LEGISLATION PASSES HOUSE

 

On June 29, the House of Representatives voted 136-57 to approve HB 794, which addresses part of CCAP's priority on tourism funding and hotel tax. The bill, introduced by Rep. Keith Gillespie (R-York), would grant certain third through eighth class counties the authorization to levy a hotel room rental tax of up to five percent, while not impacting counties that are currently authorized to levy a hotel tax above three percent.

 

Counties have long called for uniformity among county hotel tax authorizations and believe an increase in the rate is justified, in part because they appreciate the role tourism plays in local economies and also due to the significant reductions in recent years in state funding to local agencies under the Tourism Promotion Act. The bill now goes before the Senate for its consideration.

HOUSE DEFEATS ASSESSMENT LAW FIX 

 

On June 30, the House of Representatives brought before the chamber House Bill 912, introduced by Rep. Chris Ross (R-Chester), which would correct a technical error in the Consolidated County Assessment Law (CCAL). The measure was unexpectedly defeated by a 41-154 vote.

 

Prior to 2010, all buildings were considered taxable regardless of whether they were "permanently attached" to the land, unless otherwise exempted by the legislature (i.e., silos, windmills). Now, only those buildings "permanently attached to land or connected with water, gas, electric or sewage facilities" may be subject to real estate taxation due to a Commonwealth Court interpretation of the statute in Pedersen v. Monroe County Board of Assessment Appeals (2014).

 

A motion to reconsider the failed vote has been filed and may be brought up on the House floor when it reconvenes. Unless clarified by HB 912 (or its Senate companion, SB 785, sponsored by former CCAP member Sen. John Eichelberger, R-Blair), the Pedersen case has the potential to affect assessments, and ultimately all property taxpayers, by not capturing the full value of real estate. Those who continue to pay effectively take on a greater share of the tax burden. Further, if unattached outbuildings cannot be captured as part of a property's assessed value, the value of the local property tax base shrinks, as does the revenue generated for counties, municipalities and school districts
.  

BILLS SIGNED INTO LAW 

 

A number of bills were recently approved by the General Assembly and have been signed into law by the Governor. Of interest to counties, Act 15, formerly HB 1276, clarifies the requirements for criminal background certifications for employees and volunteers that have regular contact with children. Additionally, Act 15 waives the Child Line and State Police fees for volunteers and extends the time frame for which a background check is needed from three years to five years. The full list of Acts Affecting County Government for 2015 with summaries of the new laws and vetoed legislation is available by clicking Legislative Acts on the Government Relations web page.

VOTING MATTERS  

 

On or around July 17, each CCAP member will be emailed a voting matters packet containing items to be considered at the Tuesday business meeting of the upcoming CCAP Annual Conference at the Omni William Penn in Pittsburgh. The agenda packet will include proposed policy resolutions, along with officer elections and site selection for the 2020 Annual Conference. Under the 2012 bylaws change, this year's resolutions will be deliberated during the conference and then submitted by electronic ballot to the full CCAP membership within 10 days of the conclusion of the Conference for final adoption.

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Contact Us: Douglas E. Hill Executive Director, CCAP