Institute for Legislative Analysis

Vincent J. Hughes

This omnibus tax reform package gradually reduces the state's corporate tax rate from 9.99% to 4.99%, starting with 8.99% in 2023 and a 0.5% annual reduction until 2031. The bill also codifies PA tax bulletin 2019-04 into law, which requires online sales tax collections on entities with sales above $500,000 annually. Furthermore, the bill conforms the state to the federal tax code concerning deductions and deferrals in Section 179 and 1031. Support is the Limited Government Position as Pennsylvania has one of the highest corporate tax rates in the nation, placing the state at a competitive disadvantage in attracting businesses and growing the state economy. Additionally, provisions such as codification of the online sales tax collection helps ensure that all businesses are treated equally under the tax code and that certain companies do not receive competitive advantages over others.

Spurring Economic Growth by Gradually Reducing the Corporate Tax Rate from 9.99% to 4.99% by 2031.

This bill, the "Lyme Disease and Related Tick-Borne Illness Diagnosis and Treatment Act" requires all health insurance policies offered in the state to provide coverage for all diagnostic testing and prescribed treatment of Lyme disease. The bill also requires the state Department of Health to distribute culturally and linguistic appropriate literature about Lyme disease to healthcare providers and the general public at no cost. Oppose is the Limited Government Position as each and every health insurance mandate or price control on co-payments prevents an individuals ability to select a plan with just basic or customized coverages to fit their specific needs. As a result, health insurers are forced to only offer costly plans loaded with coverages that most individuals do not need. This can result in lower-income or younger individuals choosing to purchase no insurance plan at all due to the high cost.

Increasing Health Insurance Premiums by Mandating All Policies Provide Coverage for Lyme Testing and Treatment.

This bill requires public schools to identify sexually explicit content in school curriculum, materials, and books and notify parents that their child's coursework includes such content or that a book their child wishes to view in the school library contains explicit content. "Support" is the Limited Government Position as strong parental rights and individual liberties are critical to a free society. Parents, not government employees, should be the ones to make decisions over the types and degree of sensitive material that their child views.

Strengthening Parental Rights by Requiring that Public Schools Provide Notification of Sexually Explicit Content Given to Students.

This bill implements a $45.3 billion general fund budget for fiscal year 2022-2023, which, when including federal American Rescue Plan funds, represents a spending increase of roughly 11%. The bill contains significant spending increases on social programs such as the Low-Income Home Energy Assistance Program (LIHEAP), Low-Income Property Tax and Rent Rebate (PTTR) Program, a new Whole Home Repair Program, and over $250 million for additional affordable housing. Oppose is the Limited Government Position as Pennsylvania's state debt and liabilities currently exceed $120 billion, representing a $15,600 debt burden for each state taxpayer. The state must pursue every available avenue to reign in its out-of-control spending, as, when coupled with the over $185 trillion federal liabilities, represents the greatest existential threat facing this country.

Fueling Out-Of-Control Spending through a Budget with a 11% Spending Hike and Countless New and Increased Social Programs.

This bill requires the Department of Human Services (DHS) to perform monthly checks on death certificates with the Department of Health's Bureau of Vital Statistics against its recipients of Medical Assistance and SNAP benefits. The bill is in response to an audit conducted by the Auditor General, who found 2,324 deceased individuals were still receiving benefits, including cases of other individuals getting ahold of the benefits for their personal uses. Support is the Limited Government Position as all taxpayer resources should be protected from waste fraud and abuse. This measure serves as a step in the right direction to curb abuse, especially considering the fact over $70 million in Pennsylvania welfare EBT card benefits are used outside of the state each year.

Protecting Taxpayer Funds from Fraud by Requiring the DHS to monthly Cross-Check Death Certificates with the List of Recipients for SNAP Welfare Benefits.

This bill amends the state's Crime Victims Act to ensure victims of violent crimes are provided notice of the defendant's bail proceedings and are provided the opportunity to appear and offer comment. Support is the Limited Government Position as ensuring public safety and protecting property rights serve as essential components of government. While it is critical all defendants be provided their Fifth Amendment right of "innocent until proven guilty", victims of crime deserve the right to communicate harms they allege throughout the arrest and arraignment process.

Increasing Public Safety by Ensuring Victims of Violent Crime have the Right to Appear at the Bail Hearing of the Defendant.

The Muth amendment #4699 to a bill pertaining to the Motor Carrier Safety Advisory Committee (MCSAC) expands the size of the committee from 23 to 27 members. Two of the new members must be from organized labor, one new member from an alternative-powered commercial vehicle manufacture, and one new member representing the Hazardous Materials Response Team. The MCSAC recommends, assesses and evaluates regulations. Oppose is the Limited Government Position as this measure to stack the membership of the MCSAC with individuals representing interests that have a history of largely being anti-limited government in their beliefs and policy advocacy will inevitably lead to greater regulation and higher taxpayer and consumer costs within the transportation sector.

Advancing Over-Regulation within the Transporation Sector by Stacking the Membership of the Motor Carrier Safety Advisory Committee.

This motion overrides the Governor's veto of a resolution which prevents the Commonwealth from joining the Regional Greenhouse Gas Initiative (RGGI). The motion is in response to actions taken by the legislature to block an executive order by the Wolf Administration, which entered the Commonwealth into the RGGI without the approval of the legislature. The RGGI serves as a carbon tax imposed on electricity producers that is estimated to collect $781 million annually. Oppose is the Limited Government Position as implementation of this cap and trade system under the RGGI unnecessarily increases consumer electricity costs by 30% while significantly harming the competitiveness of the state's manufacturing sector.

Preventing Energy Costs from Skyrocketing by Withdrawing from the Regional Greenhouse Gas Initiative (RGGI).

This bill makes "land banks" or entities formed by local governments eligible to serve as "conservators" under the existing Abandoned and Blighted Property Conservatorship Act. That Act permits properties to be seized if they have been vacant for at least 12 months, in need of substantial repair and considered a public nuisance. Once seized from the property owner, the properties are handed to a "conservator" - and collects a fee based on 20% of their costs - who repairs and sells the rehabilitated properties. After a number of fees, court costs, and conservator costs are collected, the original owner is provided the remaining portion of the proceeds from the sale. Oppose is the Limited Government Position as this bill further worsens the Abandoned and Blighted Property Conservatorship Act, which infringes on property rights and represents a textbook example of government overreach. Instead of growing the number of entities that can seize properties under this Act, lawmakers should work to incentivize the private sector to rehabilitate properties by reducing excessive building regulations, reforming zoning laws, and cutting crime in communities.

Infringing Property Rights by Further Worsening the "Abandoned and Blighted Property Conservatorship Act".

This bill appropriates nearly $600 million to four "state-related" universities: Penn State University, Temple University, Lincoln University and University of Pittsburgh. Officials estimate these funds help lower tuition rates by $15,000 per year and are in addition to other subsidies these institutions receive from the federal government and private foundations. The $155 million given to the University of Pittsburg received controversy due to its research program which utilizes fetal tissue from abortions. Oppose is the Limited Government Position as it is a necessary role for government to provide quality K-12 education - ideally through school choice. College and university-level education should be funded through user fees (i.e tuition) by those who wish to pursue their selected career path. These enormous costs should not be imposed on individuals who elect to pursue activities other than higher education, such as those who start their own businesses or work in the trades. Furthermore, Pennsylvania's state debt and liabilities currently exceed $120 billion, representing a $15,600 debt burden for each state taxpayer. The state must pursue every available avenue to reign in its out-of-control spending, as, when coupled with the over $185 trillion federal liabilities, represents the greatest existential threat facing this country.

Fueling Out-Of-Control Spending by Providing 4 Non-State-Owned Universities with Nearly $600 Million in Taxpayer Funds.

This bill amends Pennsylvania's laws governing insurance to comply with two covered agreements between the United States and the European Union and United Kingdom concerning domestic companies operating in the EU and UK. If Pennsylvania does not adopt this amendment, domestic companies with operations in the EU and UK will be required to comply with stricter regulations and accounting standards. Support is the Limited Government Position as the state (along with the federal government) should work to protect all domestic companies from regulatory overreach by foreign governments which harms business competitiveness and profitability.

Protecting Domestic Insurance Companies with Operations in Europe from Costly and Excessive International Regulations.

The "Poll Watcher Empowerment Act" permits all eligible registered voters of Pennsylvania to enlist as a poll watcher in any precinct and levies penalties against election officials who prohibit poll watchers from performing their official duties. Previously, poll watchers had to be a resident of the precinct they were appointed to. Support is the Limited Government Position as poll watchers play a critical role in maintaining election integrity and transparency, an essential component of democracy under our nation's constitutional republic. Due to the fact a vote cast in any of the state's precincts has an impact on the outcome of a state-wide election, every precinct must be properly staffed with competent poll watchers, regardless of where the poll watchers reside.

Increasing Election Integrity and Transparency through the Poll Watcher Empowerment Act

This bill represents a five-part Constitutional amendment package. Firstly, the package prohibits taxpayer funding of abortion and declares the state does not guarantee a "right to an abortion". Secondly, the package implements voter-id requirements and an audit system for elections. Thirdly, the bill allows gubernatorial candidates to select their Lt. Governor as a running mate rather than selecting him or her through a separate election. Finally, it allows lawmakers to disapprove regulations without facing a gubernatorial veto. Support is the Limited Government Position as it is not the role of government to guarantee abortion and force payment from taxpayers (many of whom may have strong religious objections). Furthermore, voter-id requirements and election auditing to prevent voter fraud are critical aspects of ensuring free and fair elections, an essential component of democracy under our nation's constitutional republic.

Amending the Constitution to Strengthen Election Integrity through Voter ID and Audits, Prohibit Taxpayer-Funded Abortion and Disapprove Regulations without a Gubernatorial Override.

The "Affordable Housing Unit Tax Exemption Act" authorizes local governments to provide property tax exemptions for both single-family and multi-family housing units that are occupied by individuals whose income does not exceed 60% of the median income within its area. Oppose is the Limited Government Position as not only does this measure further enrich developers of "affordable housing" who receive hefty payouts under the state and federal low-income housing tax credit (LIHTC) program, but this bill further drives up property tax burdens for all other homeowners who must now subsidize the amenities and lost revenue from these properties. Instead, lawmakers should allow the free-market to reduce housing costs by eliminating zoning and regulatory barriers that prohibit housing development.

Increasing Property Tax Burdens by Authorizing Local Exemptions for "Affordable Housing".

This procedural motion by Sen. Costa attempts to discharge (advance) a bill relating to firearm background checks from the judiciary committee. The bill expands the types of firearms sold through private-sale that are subject to background checks. Specifically, a number of long-barrel firearms, including semi-automatic rifles, are now subject to the checks. Oppose is the Limited Government Position as James Madison and our nation's other founding fathers understood that the right to keep and bear arms is a crucial individual liberty and protects the citizenry against a tyrannical government. This measure places a new cost and burden on purchasing a firearm, which countless studies have found does nothing to deter criminals from continuing to engage in unlawful behavior.

Imposing New Costs and Delays in Exercising 2nd Amendment Rights by Subjecting an Even Greater Range of Private Firearm Sales to Background Checks.

This bill establishes a list of new governing requirements for condominiums, cooperatives, and planned communities (commonly referred to as HOAs). The bill establishes certain vote thresholds for changes to HOA bylaws, how election processes are carried out, and the inclusion of "independent reviewers". Oppose is the Limited Government Position as it is not the role of government to dictate the private contractual agreements and operations of HOAs. HOAs serve as free-market alternatives to government zoning and land use standards, as individuals can choose the restrictiveness of the community they wish to join or select to live on property outside the governance of an HOA.

Infringing Private Contracting Rights through Government Overreach into the Governance Practices of Private Homeowners Associations.

This bill expands regulations under the federal Family and Medical Leave Act (FMLA) to require that employers provide up to six weeks of unpaid protective leave for an individual to tend to terminally ill grandparents and grandchildren. This expanded application of the FMLA includes all of the same protections and rights and is expected to require hiring ten investigators within the Department of Labor and Industry to investigate employee complaints for denied leave. Oppose is the Limited Government Position as employers are already incentivized to provide accommodations to retain their employees and this further government overreach into the private sector unnecessarily exposes employers to new avenues of frivolous litigation that may be advanced by deviant plaintiffs' attorneys.

Imposing Additional Mandates on the Private Sector Concerning Protected Employee Leave.

This bill directs federal infrastructure funds to the Department of Environmental Quality to plug abandoned oil and gas wells. Additionally, the bill reforms bonding requirements (ranging from $2,500 to $100,000) to provide environmental protection while also ensuring companies are not hit with excessive bonding costs. The bill also authorizes  the state legislature, not the Environmental Quality Board, to be the authority to adjust bonding requirements over the next decade. Support is the Limited Government Position as this bill helps better balance environmental protection with the need to maintain a business-friendly environment for oil and gas extraction. Furthermore, the bill strengthens government accountability by ensuring the legislature, which is accountable to voters, sets bonding levels as opposed to the Environmental Quality Board which is not held to this same level of oversight.

Strengthening Government Accountability by Providing Legislative Oversight of Bonding Requirements for Orphaned Gas and Oil Well Plugging.

This procedural motion by Sen. Costa attempts to discharge (advance) a bill relating to "extreme risk protection orders" from the judiciary committee. The bill creates a "red flag" program whereby any individual may seek to have a firearm immediately taken away from another person through an "ex-parte" (one-sided) petition to a court if the individual alleges the firearms owner is a danger to themselves or others. Oppose is the Limited Government Position as the one-sided petition violates due process under the law (an individual can't provide their defense) and this program lacks provisions that prevent nefarious individuals from abusing the system to harass or harm law-abiding individuals, thus unduly infringing their Second Amendment protections and leaving them defenseless.

Authorizing Seizures of Firearms without Due Process through "Extreme Risk Protection Orders".

This bill prohibits outside groups from funding the administration of election operations. The bill is in response to the hundreds of millions outside groups spent in 2020 for election administration, including $10 million for the administration of election operations in Philadelphia. Support is the Limited Government Position as privately funding election operations introduces serious concerns over their integrity and fairness of election outcomes, an essential component of democracy under our nation's constitutional republic.

Increasing Election Integrity by Prohibiting Private Funds for Election Administration

This bill ends Pennsylvania's adoption of the California Air Resources Board (CARB) 2022 Engine Requirements for diesel emissions and warranty periods. The bill is largely in response to a warranty coverage provision that has led to significant increases in engine prices. Support is the Limited Government Position as the excessive regulations established by CARB will result in individuals, businesses, and taxpayers unnecessarily spending several thousands of dollars to purchase and title new trucks due to warranty coverage mandates that have no impact on environmental protection.

Suspending State Adoption of Excessive California Emission and Warranty Standards for Diesel Truck Engines that Place Enormous Costs on Taxpayers and Businesses.

This bill establishes a regulatory framework that allows autonomous vehicles to be tested and deployed in the state. Additionally, the bill increases penalties for the theft of catalytic converters, which are emission-control devices that contain valuable metal components. Support is the Limited Government Position as reducing government barriers to autonomous vehicle deployment will help reduce development costs, ultimately helping more quickly bring this innovative and pro-economic growth technology to the marketplace. Additionally, the bill helps strengthen property rights and dissuade crime by ensuring criminal penalties on catalytic converter theft better reflect the significant financial harm suffered by victims.

Reducing Regulatory Barriers to Autonomous Vehicle Innovation and Increasing Penalties for Catalytic Converter Theft.

This resolution blocks the implementation of new charter school regulations imposed by the Wolf Administration. Specifically, the measure disapproves Department of Education Regulations (#6-349), which sets a series of regulations and requirements charter schools and cyber charter schools must abide by. Such regulations and requirements including providing comparable health benefits to employees that public schools provide, meeting new disclosure requirements when applying for establishment, posting non-discrimination and student selection policies on their websites, among other new rules. Support is the Limited Government Position as while all charter schools, which receive taxpayer funds, should be subject to oversight to ensure accountability, these onerous regulations are primarily designed to serve as barriers to charter school establishment and protect public schools from competition, reducing the quality of the state's education system.

Blocking Implementation of Excessive Charter School Regulations Imposed by the Wolf Administration.

This resolution serves as a "writ of summons" to advance the impeachment of Philadelphia District Attorney Larry Krasner. The motion follows actions by the House, which impeached Krasner on 6 accounts, finding him "derelict in his obligations to the victims of crime, the people of the City of Philadelphia and of this Commonwealth and has failed to uphold his oath of office." Supporters of impeachment cite Krasner's prosecution record, which includes a 90% reduction in retail theft prosecutions and Krasner's office only achieving a 14% conviction rate on the cases that were prosecuted. Support is the Limited Government Position as protecting property rights and ensuring public safety serve as essential components of government. Krasner, who received nearly $1.7 million in campaign support from George Soros during the 2017 election, has demonstrated through countless statistical measurements that he has failed in his duty to protect Philadelphia and surrounding communities.

Strengthening Public Safety and Property Rights by Advancing the Impeachment of Philadelphia District Attorney Larry Krasner for Failing to Prosecute Crime.

This bill amends election law by requiring all mail-in ballots be returned through the mail or in-person at election offices as opposed to "drop boxes". Support is the Limited Government Position as this reform strengthens election integrity and helps reduce politicalization within the election process. Select placement of drop boxes and their distribution density can provide advantages to some candidates over others. Additionally, unsecured ballot boxes can create avenues for "ballot misplacement" and "ballot harvesting", which undermine the integrity of our nation's electoral process.

Strengthening Election Integrity by Requiring Mail-in Ballots be Returned via Mail or In-Person Instead of Unsecured and Politicized Drop Boxes.

This bill establishes a taskforce to study the challenges, economic feasibility, financial impact, and the security requirements involved in turning the Port of Philadelphia into a LNG export terminal. Support is the Limited Government Position as exporting LNG from Philadelphia boosts American energy production and economic growth. It also opens the door for improving international relations and security by making the European market less reliant on Russian energy.

Boosting American Energy Production and International Trade by Establishing a Task Force to Study the Export of Liquified Natural Gas (LNG) from the Port of Philadelphia.

The Williams amendment #3934 to a bill pertaining to the state's unemployment compensation law expands eligibility for unemployment benefits to workers who are on strike for more than 30 days due to a labor dispute. Unemployment benefits are funded through a payroll tax imposed on all businesses. Oppose is the Limited Government Position as increasing unemployment benefit payouts will inevitably lead to higher business payroll taxes, which coupled with other factors, may have an impact on company hiring and employee compensation decisions. Additionally, this measure provides union leaders a significant unfair advantage in labor dispute negotiations: workers on strike will now maintain a significant portion of their earnings. Measures such as this highlight the importance of "Right to Work" legislation, which protects the ability of individuals to work without joining a labor union.

Abusing the Unemployment Insurance System by Providing Payouts to Workers on Strike.

This bill expands the definition of "farm vehicle" to include passenger vehicles if, like trucks and truck tractors, they are solely used for local agricultural deliveries. As a result, farmers will have lower insurance costs and not have to obtain yearly safety inspections for the vehicles. Additionally, the bill reforms regulations at fueling stations to allow greater flexibility in where emergency shut-off devices must be located. Support is the Limited Government Position as this measure not only provides regulatory and financial relief to farmers, but it also benefits motorists by reducing the number of slow and heavy vehicles traversing roadways. Additionally, providing greater regulatory flexibility at fuel stations helps improve design layouts and unnecessary costs.

Reforming Regulations to Reduce Unnecessary Burdens Placed on Farmers and Fueling Stations.

This bill amends the state's cosmetology regulations by reducing the minimum amount of floor space that is required for each licensee working within a salon space from 180 to 120 square feet. Additionally, the bill creates a new temporary license to allow individuals to start working in a salon, as it can take between 3 to 6 months for a salon inspection to occur. Support is the Limited Government Position as this measure serves as a step in the right direction to improve the states' heavily overregulated cosmetology industry. However, far greater reforms must be made to cut, and preferably eliminate, occupational licensing mandates placed on cosmetologists and salon establishments to help expand employment opportunities and reduce consumer costs.

Reducing Overreaching Regulations Placed on Salon Establishments

This bill authorizes urban municipalities to seize any ATV or dirt bike that is operated unlawfully on public roadways or areas. The property is subject to forfeiture and upon a conviction is to be sold or destroyed. Oppose is the Limited Government Position as one of the foundational principles of our nation's Constitution is strong property rights. While government has a duty to uphold the rule of law to ensure societal safety and order, which it can do by increasing fines and imprisonment for vehicular violations, this measure weakens property rights while creating moral hazards, such as "policing for profit".

Weakening Property Rights through the Seizure and Destruction of ATVs and Dirt Bikes if Unlawfully Operated on Roadways.

This bill expands the "Right-to-Know" law to require disclosure of the top 175 salaries at four of the largest state-related universities: Penn State University, University of Pittsburgh, Temple University and Lincoln University. Earlier this year these four institutions received $600 million in taxpayer funds through SB 1284. Support is the Limited Government Position as while these institutions, which are not state-owned and should likely not be receiving taxpayer funds in the first place, the usage of these funds should at the very least be transparent to taxpayers. These institutions, like many across the nation, have countless wasteful administrative positions that are paid exorbitant salaries. The state must pursue every available avenue to reign in its out-of-control spending and this transparency mechanism at least serves as a step in the right direction.

Strengthening Government Transparency by Requiring Salary Disclosures at State-Related Universities.

The Pennsylvania Economic Development for a Growing Economy (PA EDGE) program provides $1.97 billion in tax credits over the next 25 years to hydrogen producers, milk processors, bio-medical researchers and semi-conductor manufacturers. The bill is designed to incentivize businesses within these industries to move to the state. Oppose is the Limited Government Position as as it shifts tax burdens to other individuals and businesses not favored by government, providing select companies with competitive advantages over others. Instead of attempting to centrally plan the economy, lawmakers should utilize the $2 billion to cut taxes across all industries, which will allow the free market to provide far greater job and business growth.

Expanding Cronyism and Government Central Planning through $2 Billion in Special Interest Subsidies.

This bill establishes additional coverage mandates regarding genetic testing for hereditary cancers that all public and private health insurers must include in all policy offerings. Oppose is the Limited Government Position as each and every health insurance mandate or price control on co-payments prevents individuals from having the ability to select a plan with just basic or customized coverages to fit their specific needs. As a result, health insurers are forced to only offer costly plans loaded with coverages that most individuals do not need. This can result in lower-income or younger individuals choosing to purchase no insurance plan at all due to the high cost.

Establishing Additional Health Insurance Mandates Regarding Genetic Testing, which will Drive Up Rates and Make Healthcare Even Less Affordable.

This bill exempts automotive enthusiasts that trailer their vehicles to motorsports events from laws and regulations concerning "commercial activity". Additionally, the bill authorizes commercial vehicle owners to place additional axles on their trucks to better disperse weight, while still requiring them to comply with weight limits. Support is the Limited Government Position as this bill reduces unnecessary regulatory burdens placed on motorsports enthusiasts while also curbing illegal street racing by making it easier and less costly to transport vehicles to the race track. Additionally, allowing additional axles to be placed on trucks benefits taxpayers by allowing weight to be better dispersed which reduces wear and tear placed on roadways.

Vincent J. Hughes

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