COMMONWEALTH OF PENNSYLVANIA 1fiegislatifre mnurnal MONDAY, SEPTEMBER 27, 1999 SESSION OF 1999 183RD OF THE GENERAL ASSEMBLY No. 37 SENATE The PRESIDENT. The Chair thanks Reverend Gordon, who is the guest today ofSenator Piccola. MONDAY. September 27. 1999 JOURNAL APPROVED The Senate met at 2 p.m.. Eastern Daylight Saving Time. ThePRESIDENT. A quorum ofthe Senate being present, the The PRESIDENT (Lieutenant Governor Mark S. Schweiker) Clerk will read the Journal ofthe preceding Session ofJune 16, in the Chair. 1999. The Clerk proceeded to read the Journal of the preceding PRAYER Session, when, on motion ofSenator LOEPER, further reading The Chaplain. Reverend JOHN GORDON, ofProgreSs Im­ was dispensed with and the Journal was approved. manuel Presbyterian Church, Harrisburg, offered the following COMMUNICATIONS. FROM THE GOVERNOR prayer: SENATE BILLS RETURNED WITHOUT APPROVAL Please pray with me. Dear Lord God. we give You thanks and praise for this won­ The PRESIDENT laid before the Senate the following veto derful world You have made, which You care for and sustain. messages from His Excellency, the Governor ofthe Common­ Everywhere we look we see Your handiwork. Lord, we marvel wealth, advising that the following Senate Bills had been re­ at your artistry, the amazing intricacies and complexities of turned without approval: Your designs. We see Your beauty and creativity, and the bal­ SB 309, entitled: ance ofnature astounds us. So, Lord, we acknowledge You as the good and gracious creator and sovereign. We worship You, AnAct amending Title 24 (Education) ofthe Pennsylvania Consol­ for You alone are worthy. idated Statutes, further providing for creditable nonschool service, for eligibility for limited early retirement, for contributions for pmchase Lord God, we have also seen Your power and become more ofcredit for creditable nonschool service and for exceptions to termina­ acutely aware ofour frailty. We cannot change the course ofa tion ofannuities. single drop ofI3in, let alone the path ofa storm. Yet so often we go about our work as ifwe were in control. forgetting to honor The Clerk read the veto message as follows: am properly fear You in our deliberations. You know how easy Jwe 25, 1999 it is for us to be autonomous, self-centered, and self-sufficient. Forgive us, merciful Lord, and draw us back to Yourself. To The Honorable, the Senate ofthe Commonwealth ofPennsylvania: Help to us fear You and shun evil. Help us not to be wise in our I have before me Senate Bill 309, Printer's Nwnber 1187, which own eyes, but rather empower us to seek Your righteousness, amends the Public School Employees' Retirement Code: to provide for Your standards ofjustice, Your wisdom and perspective for the creditable nonschool service for individuals with service in the Cadet Nurse Corps and the Peace Corps; to extend the filing date for limited welfare ofthis rich Commonwealth and all ofits citizens. early retirement; and. to create an exception to the termination ofannu­ Great God and King, You have given us this great land and ities under the system. given us the awesome responsibility to be stewards ofits wealth The 15 day extension., to July 15,1999, ofthe application deadline andpeople. We come now to do the business ofgovernment. We for early retirement for school employees with 30 or more years of credited service is reasonable in order to allow certain teachers who thank You for each Senator here. for this hallowed Chamber, have fallen a few days short of30 years wder the current deadline to and all ofthe varying gifts and talents and perspectives in this take advantage ofthe program. However, the bill creates several unre­ room. lated precedents which could prove detrimental to the School Employ­ Bless us now, we pray, with such a sense ofYour presence, ees'Retirement System (PSERS). First, Senate Bill 309 reduces from two years to one year the mini­ that in all we debate and decide we will be mindful of Your mmn amount ofservice Cadet Nurse Corps members need to be eligi­ watch over us, knowing that one day we will have to give an ble to purchase service credit. In addition, since the adoption ofAct 23 account to You, the holy and impartial judge ofall. And, Lord, of1991, active members and retirees who retired after December 31, give us joyin our work. May we celebrate each day You give us. 1988 have been able to purchase this credit. The bill restricts the Cadet Nurse Corps purchase option to individuals retiring between January We ask this all in Your holy name. Amen 1, 1984 and September 1, 1988. The reason for this restriction is not clear. While it is wusual to permit certain classes ofretirees to pur- 750 LEGISLATIVE JOURNAL - SENATE SEPTEMBER 27, chase service credit, it is even more lmusual to limit the purchase to The Clerk read the veto message as follows: only certain members of that class. This restriction may im~ .the contract ofthose active members and retirees who are currently eligIble June 25, 1999 to purchase the Cadet Nurse Cmps credit, but have not y~t done ~. Senate Bill 309 permits an active member or multiple servIce To TheHonorable, the Senate ofthe Commonwealth ofPennsylvania: nonsc~~l member to purchase up to two years ofservice credit for I have on my desk for review Senate Bill 852, P.N.12l~ which service as a Peace Corps vollmteer. The purchase must be made WIthin amends Title 53 (Mlmicipalities Generally) ofthe Pennsylvama Con­ three years oftheeffective date ofSenate Bill 309 or within three yc:ars P~ COIp~ ~ce, solidated Statutes. of entry into school service subsequent to the As originally drafted, Senate Bill 852 would ~o~ mlmici~ties whichever is later. While I am supportive ofrecogmzmg servIce m the b~ ~e ~on. alterna~ve. to use a written price quotation submitted Peace Cmps, the bill provides no method for the purchase While I am supportive ofthe use offacsimile transmIssIon m ~ ofthat service. Therefore, the employee IS likely to pay less than the municipal bidding process, an uilrelated amendment. was added which full actuarial cost ofthe increased benefit acquired through the pur­ amusem~t ~bilio/ prohibits a municipality or school district from levymg an chase, resulting in an increase in the unfunded .of PSERS and or admissions tax on events at a convention center owned by a mumcI­ nonsc~ool an unfairness with respect to other members WIth eligIble pal authority and located in certain first class townships in third class service who must pay the full actuarial costs to purchase that servIce. counties. The only facility in the Commonwealth that meets these Senate Bill 309 also permits an annuitant to be employed by a ~h, criteria is the Luzerne COlmty Convention Center. .. school district, intermediate lmit, or area vocational school as a I am supportive ofthe elimination of, or the placement oflimita­ ~th­ director or sponsor ofa school activity lmder a separate contract tions on, the assessment ofamusement or admissions taxes in the Com­ out cessation ofannuity payments orforfeiture ofthe ten percent retire­ monwealth. These taxes often place a substantial burden on businesses ment incentive ifthe contract specifies that no service credit would be involved in the tourism industry. Some entertainment and recreational earned in the PSERS and no contributions are made to PSERS by the facilities have contemplated leaving the Commonwealth because of retiree, the public school employer, or the Commonwealth for work high amusement taxes. The loss ofthese businesses would result in a provided under the con1ract. annui~t ~ployed loss ofjobs for our citizens. .. ... Finally, Senate Bill 309 permits an to be by However: ifthe amusement tax IS to be lifted or limited, It should a school district, intermediate lmit, or area vocational-technical school be done so U; a lmiform and consistent manner for all subjects ofthe on a less-than-full-time basis as an instructor or administrator ofan tax. In 1998, I signed Act 50, which adopted local tax ref~. Act 50 adult education or basic literacy education program without cessation capped existing amusement and admissions taxes a~ ~e rate ~P'?sed ofannuity payments or forfeiture ofthe ten percent retirement in~­ wo~d ~ by any political subdivision as ofJune 30, 1997. Political SUbdiVISIOns tive ifthe contract specifies that no service credit be earned that adopt the tax after that date may not impose the tax at a ~te the PSERS andno contributions are made by the annUltant, the public than o~ ~~-wide !imi~~ school, or the Commonwealth for work provided under the ~tract. higher 5%. This type was an appropnate and positive step towards limiti.n~ ~e ~Sltion of ~e .am.usem~t These provisions would allow those who took ~ly retirement ~ tax. To unilatemlly deprive one mmuclpality or school district m which incentives to be reemployed to perform the same servIces, part of a specific facility is located does not provide fair or lmiform relieffrom those services. This is inconsistent with the goal ofearly retirement, these taxes. which is the reduction ofcomplement. In fact, I believe the exemption ofthe convention center from The Public School Employees' Retirement Code has consistently schoo~ amusement or admissions taxes in Senate Bill 852 violates Article expressed that, except in emergencies, a retiree returning to or VIII, Section I ofthe Pennsylvania Constitution. Article vm, Section state service ceases to receive a pension and must become an active, I provides that . contributing member of the system. Authorizing.a ~ to return nAlltaxes shall be lmiform, upon the same class ofsubjects, indefinitely to school service in a nonemergency SItuation 18 ~ ftmda­ supplem~tal ~~t within the territorial limits ofthe authority levying the tax, mental change that permits a retiree to receive and shall be levied and collected lmder general laws." income from the same employer that provided the additional mcentive In Leonard v.