GENERAL ASSEMBLY CLOSES OUT 2017-2018 SESSION         

After a flurry of activity in late September and early October, the General Assembly effectively held its last voting day for the 2017-2018 session on Oct. 17, holding to a long-standing practice of not scheduling votes after the November elections. However, since the session does not officially close under the state Constitution until Nov. 30, it is anticipated that lawmakers will return to Harrisburg in mid-November to finish up any administrative action and to hold leadership elections.

Several bills impacting county government made it to the Governor's desk in the last few days of session, many of which are highlighted throughout this Bulletin. A complete list of newly enacted legislation related to counties is also being compiled and will be available in the near future at www.pacounties.org.

The major piece of legislation that remained unfinished is SB 261, legislation to address the statute of limitations to bring lawsuits in the case of child sexual abuse. The House had approved the legislation a few weeks ago with a two-year "look back" window that would allow those whose statute of limitations had previously expired a two-year time frame to bring those suits; the Senate, however, cited concerns about the constitutionality of such a provision and the two chambers were not able to negotiate a resolution. Those negotiations reportedly included discussion over whether to change the standard, and/or limit liability or damages, for the governmental immunity limit in cases involving childhood sexual abuse.

In addition, the House made a last-minute effort to advance legislation, SB 10, introduced by Sen. Guy Reschenthaler (R-Allegheny), to impose liability on local governments for injuries caused by an individual who was subject to an ICE detainer request and released. While the House Judiciary Committee adopted an amendment in early October to remove some of the problematic language and offer some relief for the liability exposure counties would face, it did not wholly resolve the underlying conflict between counties' responsibility to due process under federal case law and their obligation to comply with state law. However, SB 10 did not receive further consideration in the House.

These bills, and any other bill that did not make it to the Governor's desk, will need to be reintroduced, and start the legislative process from the beginning, in the new session that starts in January 2019. 

COUNTY CODE REWRITE ENACTED   

WORKERS' COMPENSAION FIX SIGNED  

During the short fall session, the General Assembly finalized a bill to address a June 2017 state Supreme Court ruling in Protz v. Worker's Compensation Appeals Board, which had invalidated a tool available under the state's Workers' Compensation Law to cap exposure on long-term workers' compensation claims. In that ruling, the Court determined that the Impairment Rating Evaluation (IRE) process was unconstitutional because the standards for evaluating a worker's degree of impairment are statutorily tied to the most recent version of American Medical Association guidelines and are therefore an unconstitutional delegation of legislative authority. House Bill 1840, introduced by Rep. Rob Kauffman (R-Franklin), addresses the section invalidated by the Supreme Court and re-enacts language to clarify the guidelines to be used for IREs. The bill had been approved by the House in June, and won the approval of the Senate with a 34-15 vote on the final day of voting session on Oct. 17. It was signed into law on Oct. 24 as Act 111.

ASSESSMENT REFORM  BILL APPROVED  

In the last days of the session, the Senate adopted an amendment to HB 26 to clarify provisions related to the optional $5 vehicle registration fee available to counties under Act 89 of 2013. The amendment, offered by Senate Transportation Committee chair Sen. John Rafferty (R-Montgomery), specifies that the fee is an annual fee, regardless of whether the registration itself is single or multi-year, as was originally intended under Act 89. The bill as amended was voted favorably by the Senate with concurrence by the House, and Gov. Wolf signed the bill into law on Oct. 24 as Act 91 of 2018. It takes effect in 120 days.

Since 2013, 22 counties have adopted the fee for local use, generating more than $50 million for county transportation projects. More information can be found at CCAP's Transportation Funding/Act 89 Resources web page.

SUNSHINE LAW AMENDMENTS 

Following the unanimous approval of the House on Oct. 11, Gov. Wolf has signed SB 1078, introduced by Sen. Tommy Tomlinson (R-Bucks), into law as Act 156 of 2018. The legislation amends the Sunshine Law to add an executive session option for the purpose of developing and reviewing plans related to security and emergency preparedness. Recent events have illustrated the need for governing bodies to be able to have confidential discussions about safety and security plans and protocols to afford protection of public facilities, public events and public meetings.

TREASURY RELEASES PROPOSED OPPORTUNITY ZONE GUIDELINES

Recently, the U.S. Department of the Treasury and the IRS released proposed regulations for Opportunity Zones, which were established under the 2017 federal Tax Cut and Jobs Act as a new community development program to encourage long-term investments in low-income communities nationwide. The program provides tax incentives for investors to put their unrealized capital gains into an Opportunity Fund that is dedicated for investing in the designated Opportunity Zones, with a 10-year commitment. The proposed regulations clarify what gains qualify for deferral, which taxpayers and investments are eligible, the parameters for Opportunity Funds, and other guidance to aid taxpayers in participating.

A public comment period on the proposed regulations will be available for 60 days once they are published in the Federal Register, with specific questions on which the Treasury Department seeks input. Following the public comment period, the Treasury Department plans to issue further guidance on the program.

Each state was permitted to designate up to 25 percent of the eligible areas in their states as Opportunity Zones. Pennsylvania's 300 designated tracts were approved by the Treasury Department in June, and additional information can be found at dced.pa.gov, by selecting Qualified Opportunity Zones under the Programs & Funding tab.

CONGRESS APPROVES MAJOR DISASTER REFORM PACKAGE

On Oct. 5, President Trump signed the Disaster Recovery Reform Act, emphasizing improvements in pre-disaster mitigation and funding.

The legislation, attached to the five-year reauthorization of Federal Aviation Administration programs in H.R. 302, recommends that up to six percent of the total federal disaster assistance provided to state and local governments be invested in a national public infrastructure pre-disaster hazard mitigation program. That funding would support mitigation techniques such as planning, elevating or moving structures prone to flooding and securing infrastructure.

Of critical importance to local governments, the Federal Emergency Management Agency (FEMA) is also prohibited from attempting to recoup any aid, including individual assistance, public assistance and other programs, provided more than three years prior to the date it was released. The list of mitigation measures eligible for assistance is expanded, and FEMA is required to provide annual guidance and training to state and local first responders to assist in prioritizing certain health care facilities in the event of a disaster-caused power outage.