PRINTER'S NO. 548
No. 484 Session of 1997
INTRODUCED BY REINARD, FARGO, E. Z. TAYLOR, ARMSTRONG, HESS,
HALUSKA, MAITLAND, BOSCOLA, SATHER, CLARK, FAIRCHILD, STEIL,
SEMMEL, LYNCH, TRELLO, WAUGH, STERN, GEIST, HENNESSEY,
DEMPSEY, RAYMOND, COLAFELLA, BROWN, L. I. COHEN, EGOLF,
McGILL, SEYFERT, HUTCHINSON AND C. WILLIAMS,
FEBRUARY 12, 1997
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 12, 1997
AN ACT
1 Providing for mandatory funding of local mandates by State
2 government; providing for definitions; establishing the
3 Office of Local Mandates; providing review requirements;
4 requiring appropriations; establishing the Local Government
5 Mandate Appeals Board; and providing compensation.
6 TABLE OF CONTENTS
7 Section 1. Short title.
8 Section 2. Legislative findings.
9 Section 3. Definitions.
10 Section 4. Office of Local Mandates.
11 Section 5. Mandate review requirements.
12 Section 6. Appropriations requirement.
13 Section 7. Local Government Mandate Appeals Board.
14 Section 8. Board organization.
15 Section 9. Compensation of board.
16 Section 10. Subpoena power.
17 Section 11. Quorum and board powers.
1 Section 12. Board duties.
2 Section 13. Board determination.
3 Section 14. Board rules.
4 Section 15. Effect on other laws.
5 Section 16. Severability.
6 Section 17. Applicability.
7 Section 18. Effective date.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Short title.
11 This act shall be known and may be cited as the State Payment
12 for State Mandates Act.
13 Section 2. Legislative findings.
14 The General Assembly finds and declares that:
15 (1) Actions of the State government that directly or
16 indirectly prescribe the manner, standards, level and
17 conditions of public service to be provided by this
18 Commonwealth's counties, municipalities and school districts
19 are often taken with little regard for the fiscal
20 consequences of such actions upon the affected local
21 jurisdictions.
22 (2) Many of this Commonwealth's counties, municipalities
23 and school districts are experiencing varying degrees of
24 fiscal stress resulting from the need to provide adequate
25 public services to their citizens but without the local tax
26 resources to do so.
27 (3) The State government, prior to imposing new or
28 expanded service requirements upon its political
29 subdivisions, should be aware of and confront the issue of
30 where the burden of paying for those requirements will fall.
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1 (4) It is appropriate, therefore, that the State
2 government provide full funding for any net additional costs
3 to counties, municipalities and school districts that are
4 incurred by those jurisdictions in complying with the
5 required performance of a new or expanded program or service
6 under the provisions of any State law or regulation.
7 Section 3. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Agency." A department, departmental administrative board or
12 commission, independent board or commission, agency or other
13 authority of this Commonwealth now existing or hereafter
14 created. The term does not include any county, court,
15 municipality, school district or municipal authority.
16 "Board." The Local Government Mandate Appeals Board
17 established in section 7.
18 "County." The governing body and the officers and employees
19 of a county.
20 "Department." The Department of Community and Economic
21 Development of the Commonwealth.
22 "Expanded program or service." A program or service the
23 scope or level of which would be increased, extended or enhanced
24 by a county's, municipality's or school district's compliance
25 with the provisions of a State law or regulation.
26 "Municipality." The governing body and the officers and
27 employees of a city, borough, incorporated town or township.
28 "Net additional cost." The cost or costs incurred or
29 anticipated to be incurred within a one-year period by a county,
30 municipality or school district in performing or administering a
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1 new or expanded program or service required by a State law or
2 regulation after subtracting therefrom any revenues received or
3 receivable by the county, municipality or school district on
4 account of the program or service, including, but not limited
5 to:
6 (1) Fees charged to the recipients of the program or
7 service.
8 (2) Federal or State aid paid specifically or
9 categorically in connection with the program or service.
10 (3) Any offsetting savings resulting from the reduction
11 or elimination of any other program or service directly
12 attributable to the performance or administration of the
13 required program or service.
14 "New program or service." A program or service different in
15 kind or purpose from those in existence at the time of the
16 enactment of a law or promulgation of a regulation, requiring
17 the performance or administration of the program by one or more
18 counties, municipalities or school districts.
19 "Office." The Office of Local Mandates established in
20 section 4.
21 "Program or service." A specific and identifiable activity
22 of a county or municipality which is available to the general
23 public or which is conducted, administered or provided for or on
24 behalf of the citizens of a county, municipality or school
25 district.
26 "Regulation." A rule or regulation, or order in the nature
27 of a rule or regulation, promulgated by an agency under
28 statutory authority in the administration of any statute
29 administered by or relating to the agency or prescribing the
30 practice of procedure before such agency. The term does not
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1 include a proclamation, executive order, directive or similar
2 document promulgated by the Governor exercising his emergency
3 powers, but does include a regulation which may be promulgated
4 by an agency, only with the approval of the Governor.
5 Section 4. Office of Local Mandates.
6 (a) Establishment.--There is hereby established within the
7 department the Office of Local Mandates, which shall have as its
8 primary function the review of legislation and proposed or
9 adopted regulations, for the purpose of completing a local
10 impact statement. A local impact statement shall contain a
11 fiscal analysis of the net additional costs to a county,
12 municipality or school district that will result from any new or
13 expanded program or service that the county, municipality or
14 school district would be required to perform or administer as a
15 result of the legislation or proposed regulation.
16 (b) Personnel.--The department shall employ all persons,
17 including accountants, attorneys, auditors and any other
18 individuals with experience in local government operations, and
19 such clerical and technical assistants whom the office may
20 require within the limits of available appropriations.
21 Section 5. Mandate review requirements.
22 (a) Legislative review by office.--No bill that could
23 possibly incur an increase in costs to counties, municipalities
24 or school districts shall be reported from a committee in either
25 house of the General Assembly until it has been reviewed by the
26 office. If upon its review the office determines that the bill
27 will not result in net additional costs if the bill is enacted,
28 it shall certify that determination on a statement submitted to
29 the chairman and minority chairman of the committee to which the
30 bill was referred. If the office determines that the bill may
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1 result in net additional costs to counties, municipalities or
2 school districts, if enacted, it shall immediately forward a
3 local impact statement to the bill's sponsors and the chairman
4 and minority chairman of the committee to which the bill was
5 referred.
6 (b) Issuing authority to forward copy.--Whenever any State
7 regulation is initially published or adopted, the department
8 head or State officer issuing the regulation shall forthwith
9 forward a copy of the proposed or adopted regulation to the
10 office with a notice to complete a local impact statement within
11 30 days of the proposal or adoption.
12 (c) Impact statement.--Upon receipt of a notice from a State
13 department head or a State officer of the proposal or adoption
14 of a regulation, the office shall complete as soon as possible,
15 but within 30 days of notification, a local impact statement
16 containing the most accurate estimate possible, in actual
17 dollars, of the net additional costs, if any, that will be
18 required of counties, municipalities or school districts.
19 Statements completed pursuant to this subsection shall be
20 delivered to the Governor, the presiding officer of both houses
21 of the General Assembly, the chairman of the Independent
22 Regulatory Review Commission and the department head or official
23 submitting the notice, together with a copy of the regulation.
24 (d) Annual review.--The office shall conduct an annual
25 review of all laws and regulations enacted or adopted after the
26 effective date of this act for which the office has previously
27 completed a local impact statement. Any annual change in the
28 dollar estimate of the net additional costs from that provided
29 in the original local impact statement shall be updated as a
30 result of the review to disclose that change, and the updated
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1 local impact statement shall be delivered to the recipients of
2 the original local impact statement.
3 (e) Public access.--The office shall make local impact
4 statements available to the public upon request.
5 Section 6. Appropriations requirement.
6 Except by a vote of two-thirds of all members elected to each
7 house, the General Assembly shall not pass a bill for which a
8 local impact statement has been received pursuant to section 5
9 until or unless it contains an appropriation at least equal in
10 amount to the amount estimated in the local impact statement as
11 necessary to pay in full any net additional costs of compliance
12 therewith.
13 Section 7. Local Government Mandate Appeals Board.
14 There is hereby established the Local Government Mandate
15 Appeals Board. The membership of the board shall consist of 11
16 voting members as follows:
17 (1) one each to be appointed by the President pro
18 tempore of the Senate and the Speaker of the House of
19 Representatives;
20 (2) one each to be appointed by the Minority Leader of
21 the Senate and the Minority Leader of the House of
22 Representatives;
23 (3) two elected county officials to be appointed by the
24 Governor;
25 (4) two elected municipal officials to be appointed by
26 the Governor;
27 (5) two members at large, appointed by the Governor; and
28 (6) the State Treasurer, ex officio, or the designee
29 thereof.
30 Within the categories of members designated in paragraphs (3),
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1 (4) and (5), no more than two appointees shall be of the same
2 political party. The legislator members shall serve during the
3 two-year legislative session during which the appointment is
4 made. The elected county and municipal officials shall serve as
5 members during the terms of their elected office during which
6 their appointments are made. The State Treasurer or his designee
7 shall serve during the State Treasurer's term of elected office.
8 Other members shall serve during the duration of the term of the
9 Governor who appointed them. The Governor and presiding officers
10 of both houses of the General Assembly shall, in making their
11 appointments, consult together to the extent necessary to ensure
12 that among the appointed membership there is not more than one
13 member appointed as a local elected official or legislator
14 representing the same local units of government within their
15 election districts. A vacancy occurring in the membership of the
16 board for any cause other than the expiration of a term of
17 office shall be filled in the same manner as the original
18 appointment.
19 Section 8. Board organization.
20 The board shall organize as soon as practicable following the
21 appointment of its members and shall elect from among its
22 members a chairman and vice chairman and shall appoint a
23 secretary, who need not be a member of the board. The board
24 shall employ such assistants as it may deem necessary to carry
25 out its duties and shall determine their qualifications, terms
26 of office and compensation. All expenditures deemed necessary to
27 implement and effectuate the duties of the board under this act
28 shall be made within the limits of appropriations according to
29 law.
30 Section 9. Compensation of board.
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1 Members of the board shall receive $125 per day as
2 compensation for their services and shall also be entitled to
3 reimbursement for travel and other necessary expenses incurred
4 as a result of their duties as members of the board. The
5 expenses incurred by board members or by any employees of the
6 board shall be allowed and paid upon the presentation of
7 itemized vouchers therefor, which vouchers shall be subject to
8 the approval of the board.
9 Section 10. Subpoena power.
10 The board, through its chairman or secretary, may issue
11 subpoenas and compel the attendance of witnesses to testify
12 before the board and produce relevant books, records and papers
13 before it and may administer oaths in taking testimony in any
14 matter pertaining to its duties under this act, including,
15 without limitation, any appeals proceeding authorized or
16 required to be held under this act.
17 Section 11. Quorum and board powers.
18 The powers of the board are vested in the members thereof in
19 office from time to time, and a majority of its members shall
20 constitute a quorum for any act thereof. Actions may be taken
21 and orders adopted by the board by a vote of a majority of its
22 authorized members unless the rules of the board shall require a
23 larger number. No vacancy in the membership of the board shall
24 impair the right of a quorum to exercise all the rights and
25 perform all the duties of the board.
26 Section 12. Board duties.
27 It shall be the duty of the board to hear and rule upon
28 appeals brought by one or more counties, municipalities or
29 school districts alleging that a State law or regulation that
30 has the effect of requiring the performance or administration of
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1 a new or expanded program or service has been enacted or
2 promulgated, as the case may be, in a manner contrary to the
3 provisions of this act or has been lawfully enacted or
4 promulgated, but has been based on a demonstrably inaccurate
5 cost estimate contained in a local impact statement prepared by
6 the office resulting, therefore, in the failure by the State to
7 provide sufficient funding to pay the additional cost of
8 compliance with the law or regulation. A party appearing before
9 the board or otherwise joined in an action before the board
10 shall submit such evidence and documentation as the board may
11 require in order to make a determination under this section.
12 Should the board, based on the evidence before it, rule in favor
13 of the appellant county, municipality or school district or
14 counties, municipalities or school districts, it shall submit
15 its finding and rulings to the Governor and the presiding
16 officers of both houses of the General Assembly, along with its
17 determination that legislation is required to be enacted
18 containing an appropriation of moneys sufficient to pay for any
19 net additional cost it has determined as remaining unfunded.
20 Section 13. Board determination.
21 A determination by the board that an appropriation of moneys
22 is required shall be appealable by the General Assembly or the
23 presiding officer of either house thereof to the Commonwealth
24 Court. A determination by the board denying an appeal by a
25 county, municipality or school district shall not constitute an
26 adjudication as defined in 2 Pa.C.S. § 101 (relating to
27 definitions) or be subject to appeal as provided by 2 Pa.C.S. §
28 702 (relating to appeals), or otherwise.
29 Section 14. Board rules.
30 The board shall adopt such rules as may be required to carry
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1 out its functions and responsibilities under this act.
2 Section 15. Effect on other laws.
3 The requirements of this act shall not alter in any manner
4 the substantive standards otherwise applicable to the
5 implementation by an agency of statutory requirements or to the
6 exercise by any agency of authority delegated by law.
7 Section 16. Severability.
8 The provisions of this act are severable. If any provision of
9 this act or its application to any person or circumstance is
10 held invalid, the invalidity shall not affect other provisions
11 or applications of this act which can be given effect without
12 the invalid provision or application.
13 Section 17. Applicability.
14 This act shall apply to any rule proposed, any final rule
15 promulgated and any other major State action affecting the
16 economy implemented by any agency after the effective date of
17 this act.
18 Section 18. Effective date.
19 This act shall take effect in 60 days.
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