McCaffery (Dem) Drops Bid For Attorney General

McCaffery (Dem) Drops Bid For Attorney General

PA High Court Throws Out Assembly Redistricting

PA High Court Throws Out Assembly Redistricting
HARRISBURG, Pa. (AP) — A divided Pennsylvania Supreme Court is invalidating a plan to redraw district lines for seats in the state House and Senate, calling the redistricting approach "contrary to law."
            The justices voted 4-3 to send the plan back to the Legislative Reapportionment Commission, and the majority said their opinion in the case would be released later.
            The high court's ruling throws into disarray plans by candidates and parties for this year's General Assembly races.
            The two-page order says current district lines remain in force until the commission comes up with a new plan that passes legal muster.
            The commission consists of the Republican and Democratic floor leaders from the House and Senate, along with a fifth member, an appointed judge.
            The plan the court threw out was opposed by Senate Democrats.

Small Games Of Chance Bill Heads To Governor's Desk

The House Wednesday gave final approval and send to the Governor House Bill 169 (Delozier-R-Cumberland) which would amend the current Small Games of Chance law to allow nonprofit associations, charitable organizations and other civic groups to raise revenues to support their community as well as maintain their operation.

            The bill would update the Local Option Small Games of Chance Act, which has not been changed since 1988, allowing for increased limits for prize payouts.

            Small games of chance licenses are used by charitable organizations to raise funds to assist those in the local community.  These nonprofit groups assist community residents by sponsoring youth sports, supporting fire companies and veteran events, refurbishing local parks, and giving out grants and scholarships to our students.

            “The passage of this bill means we are actively working to preserve the role that local organizations have in our communities,” said Rep. Sheryl Delozier. “Most of the money that is spent on these small games of chance does return to the community with a multiplier effect that benefits all of us.”

            House Bill 169 would increase limits for prize payouts from $500 to $1,000 for daily drawings, from $5,000 to $25,000 for weekly drawings and from $5,000 to $10,000 for raffles per calendar month.

            Under the bill, at least 70 percent of proceeds raised by these organizations would be distributed for public interest purposes, and up to 30 percent of the money raised can be used by the organizations to help maintain capital projects such as fixing a roof or heating system.

            “The upcoming budget season is going to be a tough one,” Rep. Delozier noted. “Allowing for increased fundraising will help our nonprofits to fill some of the gaps in funding from government and stay afloat during hard economic times. This bill is the support system our communities need.”

            House Bill 169 was amended in the Senate to include measures that permit fire and emergency services to hold a raffle with a $50,000 limits. Measures to require clubs with liquor licenses to submit semi-annual reports to the Pennsylvania Department of Revenue were also among the changes to the House version of the bill.

            “House Bill 169 has been overwhelmingly supported statewide by community organizations and legislators on both sides of the aisle,” said Rep. Delozier.  “I am pleased we are finally able to get this bill to the governor’s desk and ensure our nonprofit organizations are able to continue to meet their expenses and fund projects and services throughout our local communities.”

            A summary and House Fiscal Note are available.

Senate Democrats Outline Their State Budget Priorities

Senate Democrats, led by Democratic Leader Jay Costa (D-Allegheny), Appropriations Chair Vincent Hughes (D-Philadelphia) and others, Wednesday called on the governor to make job creation, tax fairness, education funding, shale and the restoration of funds for safety net programs budget priorities.

            "We need a budget that moves Pennsylvania forward, not one that puts us in reverse," Sen. Costa said. "We need to focus our energy on job creation, restoring education funding, providing sufficient dollars for safety net programs and improving transportation infrastructure."

            The Democrats outlined their budget priorities at a news conference.

            Sen. Costa said Senate Democrats have identified nearly $1 billion in new revenues from smart policy changes, efficiencies and a responsible shale tax that can be used to pay for their agenda.

            Sen. Costa said Pennsylvania has regressed under Gov. Tom Corbett, who has produced no jobs plan while unemployment has stagnated. At the same time, the governor has driven education funding back to 2006 levels and funded higher education support at a level not seen since 1995, under former Republican Gov. Tom Ridge.

            "Senate Democrats produced a comprehensive jobs plan called PA Works Now but we've heard nothing on jobs from the governor," Sen. Costa said. "We are ready to move on transportation if he would lead and let us know how he plans to address that crisis."

            Sen. Hughes said Senate Democrats predicted chaos in education if Corbett's plan to slice more than $1 billion was approved by Republican lawmakers.

            "Senate Democrats voted against last year's budget plan because we thought it would produce exceptionally high local tax bills, cut education quality and imperil schools," Sen. Hughes said. "Now we have a crisis in the Chester-Upland district and there are at least ten more districts that may soon be in a similar position.

            "Insolvency will spread beyond poor schools and spill over into adjoining districts as a result of Gov. Corbett's education and fiscal policies."

            Sen. Hughes said that unemployment rose sharply after Corbett took office and it has taken one year to recede, noting that on jobs "we treaded water for a year."

            Sen. John Yudichak (D-Luzerne), who has been the Senate lead negotiator on Marcellus Shale, said that his region in northeast Pennsylvania has been hit hard by job loss and education cuts.

            "We need to make strategic investments and create jobs and we can do that by adopting a responsible shale drilling plan that generates money for rebuilding roads and other infrastructure while we protect the environment and our communities with tough regulations," Sen. Yudichak said.

Bipartisan Plan Unveiled To Close Delaware Tax Loophole

Rep. Dave Reed (R-Indiana) Wednesday joined with Rep. Eugene DePasquale (D-York) to unveil a plan to close the “Delaware Loophole” and implement necessary business tax reforms in Pennsylvania.     

            The proposal is geared toward helping create a more competitive and fair business climate in the state. 

            Employing what is known as an “expense add-back” provision, House Bill 2150 would close the Delaware Loophole and levels the playing field for all companies doing business in Pennsylvania. 

            “Any business tax reform proposal, if it’s to be taken seriously, should include closing the Delaware Loophole,” stated Rep. Reed. “Creating a competitive environment and a level playing field for job creators is vital to our economic recovery, and this proposal accomplishes both goals.” 

            The Delaware Loophole has garnered significant attention over the years and has been criticized as a flaw in Pennsylvania’s business tax structure. The term was coined to describe a legal tax avoidance practice used by some multi-state corporations to reduce their Pennsylvania tax liabilities by transferring the ownership of intangible assets to an affiliated company in Delaware. 

            “A successful business is not built on hiring high-priced tax attorneys and accountants to avoid paying taxes,” Rep. Reed said. “It’s about having a good business model, working long hours, and making sacrifices. Most Pennsylvania businesses do not use this tax avoidance mechanism, which is all the more reason to close the loophole to ensure fairness among all employers.” 

            Targeting very specific transactions among close business affiliates, the new provision would only affect businesses that are taking advantage of the loophole for the sole purpose of tax avoidance in Pennsylvania. The proposal also would use revenue captured through closing the loophole to reduce Pennsylvania’s overall business tax burden. 

            Specifically, closing the Delaware Loophole would enable the state to gradually reduce the corporate net income tax during the next six years; implement a single sales apportionment factor; and gradually phase out the cap on net operating losses during the next nine years. 

            “Year after year, the state ranks among the worst in the nation for the cost of doing business, so it’s clear that comprehensive business tax reforms are needed,” said Rep. Reed. “Closing the Delaware Loophole will bring consistency to our tax structure and lower the tax burden, showing that Pennsylvania is a great place to do business.” 

            Reps. Reed and DePasquale were joined by members of both parties to introduce the legislation. To date, House Bill 2150 has more than 50 co-sponsors. 

Wednesday NewsClips

Turzai Nixes Run For Congress
Turzai Changes His Mind, Won't Run For Congress
Sen. Pippy To Bow Out After 16 Years
Pippy Will Not Run For Another Term
Editorial: PA Primary Might Matter Now
House Panel Supports Bill To Cut Size Of House
Bill To Slash House Size Heads To Vote
House Committee Votes To Reduce Size Of House
House Panel OKs Plan To Shrink Chamber
House Would Shrink Under A Legislative Proposal
Op-Ed: Let's Begin Reform Efforts With Term Limits
DeWeese Ordered Staffer Fired Who Lost House Race
State Time Used To Campaign DeWeese Aides Say
State Time Used To Campaign DeWeese Aides Testify
PA Supreme Court May Be Affected By Orie Scandal
Corbett Not Planning To Attend Paterno Memorial
Two More Vie For Rep. Buxton's House Seat
Toomey To Endorse Reilly For Platts Congressional Seat
Corbett Asked To Aid Poor Schools
New Department To Target Drug, Alcohol Addiction
Erie Casino Table Game Revenue Jumps Nearly 25 Percent
HBG Receiver Asked To Consider Fiscal Plan's Impact On Schools
Harrisburg Council To Ask Feds To Investigate Bond Transactions
Click Here for today's Environmental NewsClips

Governor Nominates Gary Tennis To New Drug & Alcohol Programs Agency

Gov. Tom Corbett Tuesday nominated Gary Tennis of Philadelphia to serve as secretary of the Department of Drug and Alcohol Programs, which is being created as a result of a 2010 state law.

            Tennis is retired from his previous position as chief of the legislation unit in the Philadelphia's District Attorney's Office, where he represented the Pennsylvania District Attorneys Association working with the General Assembly.

            "Gary Tennis has been a passionate advocate for effective drug and alcohol treatment both within and outside the judicial system," Corbett said. "I am confident his experience will help guide the delivery of quality, effective drug and alcohol services for Pennsylvanians."

            In addition to more than 25 years of legislative experience, Tennis served as executive director of the President's Commission on Model State Drug Laws in 1993. He received his bachelor's degree from the University of Tulsa in 1975 and was a Rhodes Scholarship nominee. He is also a graduate of The University of Pennsylvania Law School.

            Tennis's first order of business will be to analyze the provision of drug and alcohol services, which are currently provided through several agencies including the state departments of Health and Public Welfare. The goal is to ensure the highest and most effective care for Pennsylvania citizens struggling with addiction.

            Tennis has been charged with taking a common-sense approach to streamlining and eliminating duplication of state drug and alcohol treatment and prevention efforts in Pennsylvania.

            The Department of Drug and Alcohol Programs was created under Act 50 of 2010. It will establish a plan for the management and allocation of state and federal funds used to oversee alcohol and drug prevention, intervention and treatment services.

            The Department of Drug and Alcohol Programs is currently located in the Health and Welfare building. The Pennsylvania Department of Health is assisting in the agency's formation.