Regular Session 2019-2020 House Bill 2418 P.N. 4015

SENATE AMENDED

PRIOR PRINTER'S NOS. 3580, 3902

PRINTER'S NO. 4015

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2418

Session of

2020

INTRODUCED BY O'NEAL AND RYAN, APRIL 17, 2020

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 23, 2020

AN ACT

Amending the act of April 9, 1929 (P.L.177, No.175), entitled

"An act providing for and reorganizing the conduct of the

executive and administrative work of the Commonwealth by the

Executive Department thereof and the administrative

departments, boards, commissions, and officers thereof,

including the boards of trustees of State Normal Schools, or

Teachers Colleges; abolishing, creating, reorganizing or

authorizing the reorganization of certain administrative

departments, boards, and commissions; defining the powers and

duties of the Governor and other executive and administrative

officers, and of the several administrative departments,

boards, commissions, and officers; fixing the salaries of the

Governor, Lieutenant Governor, and certain other executive

and administrative officers; providing for the appointment of

certain administrative officers, and of all deputies and

other assistants and employes in certain departments, boards,

and commissions; providing for judicial administration; and

prescribing the manner in which the number and compensation

of the deputies and all other assistants and employes of

certain departments, boards and commissions shall be

determined," IN ORGANIZATION OF DEPARTMENTAL ADMINISTRATIVE

BOARDS AND COMMISSIONS AND OF ADVISORY BOARDS AND

COMMISSIONS, FURTHER PROVIDING FOR STATE GEOSPATIAL

COORDINATING BOARD; IN INDEPENDENT FISCAL OFFICE, FURTHER

PROVIDING FOR ADDITIONAL DUTIES; AND providing for COVID-19

debt cost reduction review.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of April 9, 1929 (P.L.177, No.175), known

as The Administrative Code of 1929, is amended by adding an

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article to read:

SECTION 1. SECTION 432.1(B)(1)(VII) AND (VIII) AND (J) OF

THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE

ADMINISTRATIVE CODE OF 1929, ARE AMENDED, SUBSECTION (B)(1) IS

AMENDED BY ADDING A SUBPARAGRAPH AND THE SECTION IS AMENDED BY

ADDING A SUBSECTION TO READ:

SECTION 432.1. STATE GEOSPATIAL COORDINATING BOARD.--* * *

(B) (1) THE STATE GEOSPATIAL COORDINATING BOARD SHALL

CONSIST OF THE FOLLOWING MEMBERS:

* * *

(VI.1) THE SECRETARY OF AGRICULTURE OR A DESIGNEE.

(VII) THREE MEMBERS APPOINTED BY THE PRESIDENT PRO TEMPORE

OF THE SENATE IN CONSULTATION WITH THE MAJORITY LEADER AND

MINORITY LEADER OF THE SENATE. ONE MEMBER SHALL BE A

REPRESENTATIVE OF A MUNICIPAL AUTHORITY. [ONE MEMBER] TWO

MEMBERS SHALL BE [AN ELECTED] LOCAL GOVERNMENT [OFFICIAL

REPRESENTING A RURAL COMMUNITY. ONE MEMBER SHALL BE AN ELECTED

LOCAL GOVERNMENT OFFICIAL REPRESENTING A SUBURBAN COMMUNITY]

OFFICIALS OR EMPLOYEES.

(VIII) THREE MEMBERS APPOINTED BY THE SPEAKER OF THE HOUSE

OF REPRESENTATIVES IN CONSULTATION WITH THE MAJORITY LEADER AND

MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES. ONE MEMBER

SHALL BE A LOCAL [ELECTED] GOVERNMENT OFFICIAL OR EMPLOYE

REPRESENTING AN URBAN COMMUNITY. ONE MEMBER SHALL BE AN EMPLOYE

OF A COUNTY EMERGENCY MANAGEMENT AGENCY. ONE MEMBER SHALL BE AN

INDIVIDUAL WITH EXPERTISE IN GEOSPATIAL TECHNOLOGY.

* * *

(F.1) THE BOARD MAY, WITH THE APPROVAL OF THE GOVERNOR,

APPOINT AN EXECUTIVE DIRECTOR WHO SHALL SERVE AT THE PLEASURE OF

THE BOARD. THE SELECTION AND REMOVAL OF THE EXECUTIVE DIRECTOR

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SHALL BE MADE BY A SIMPLE MAJORITY OF THE VOTING MEMBERS OF THE

BOARD THAT CONSTITUTE A QUORUM. COMPENSATION FOR THE EXECUTIVE

DIRECTOR SHALL BE SET BY A VOTE OF A MAJORITY OF THE BOARD

MEMBERS IDENTIFIED IN SUBSECTION (B)(1)(I), (II), (III) , (IV),

(V), (VI) AND (VI.1), SUBJECT TO THE APPROVAL OF THE EXECUTIVE

BOARD. FUNDING FOR THE EXECUTIVE DIRECTOR'S COMPENSATION SHALL

BE EVENLY APPORTIONED AMONGST ALL OF THE COMMONWEALTH AGENCIES

REPRESENTED BY MEMBERS IN SUBSECTION (B)(1)(I), (II), (III) ,

(IV) , (V), (VI) AND (VI.1) AND ADMINISTERED BY THE GOVERNOR'S

BUDGET OFFICE. THE EXECUTIVE DIRECTOR SHALL BE QUALIFIED FOR THE

DUTIES OF THE POSITION, AS DETERMINED BY THE BOARD, AND SHALL

CONDUCT THE WORK OF THE BOARD UNDER THE BOARD'S DIRECTION AND

SUPERVISION. NO CURRENT MEMBER OF THE BOARD MAY SERVE AS THE

EXECUTIVE DIRECTOR. THE EXECUTIVE DIRECTOR'S APPOINTMENT SHALL

NOT CONTINUE BEYOND THE EXPIRATION OF THIS SECTION. THE

EXECUTIVE DIRECTOR SHALL BE SUBJECT TO THE SAME POLICIES AND

PROCEDURES AS EMPLOYES OF THE OFFICE OF ADMINISTRATION.

* * *

(J) THIS SECTION SHALL EXPIRE JUNE 30, [2020] 2024.

SECTION 2. SECTION 615-B(A) OF THE ACT IS AMENDED AND THE

SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

SECTION 615-B. ADDITIONAL DUTIES.

(A) ACTUARIAL NOTES.--THE OFFICE SHALL PREPARE ACTUARIAL

NOTES BY SELECTING AN ENROLLED PENSION ACTUARY TO PREPARE [AN

ACTUARIAL NOTE] ACTUARIAL NOTES FOR BILLS OR AMENDMENTS WHICH

COULD HAVE A MATERIAL ACTUARIAL IMPACT ON A PUBLIC EMPLOYEE

RETIREMENT PLAN. ACTUARIAL NOTES SHALL INCLUDE A RELIABLE

ESTIMATE OF THE FINANCIAL AND ACTUARIAL EFFECT OF THE PROPOSED

CHANGE IN ANY PENSION OR RETIREMENT SYSTEM. THE FINANCIAL

ANALYSIS CONTAINED IN ACTUARIAL NOTES FOR LEGISLATION THAT

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PROPOSES SUBSTANTIAL BENEFIT DESIGN CHANGES UNDER 24 PA.C.S. PT.

IV (RELATING TO RETIREMENT FOR SCHOOL EMPLOYEES) AND 71 PA.C.S.

PT. XXV (RELATING TO RETIREMENT FOR STATE EMPLOYEES AND

OFFICERS) SHALL INCLUDE, BUT NOT BE LIMITED TO, A RISK TRANSFER

ANALYSIS AND, IF REQUESTED BY AN OFFICER LISTED IN THIS

SUBSECTION, AN ANALYSIS OF THE POTENTIAL IMPACT ON THE ASSET

ALLOCATION AND RELATED COSTS FOR THE SYSTEMS. THE ACTUARIAL NOTE

SHALL BE FACTUAL, AND SHALL, IF POSSIBLE, PROVIDE A RELIABLE

ESTIMATE OF BOTH THE IMMEDIATE COST AND EFFECT OF THE BILL AND,

IF DETERMINABLE OR REASONABLY FORSEEABLE, THE LONG-RANGE

ACTUARIAL COST AND EFFECT OF THE BILL. THE STATE EMPLOYEES'

RETIREMENT SYSTEM OR THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT

SYSTEM SHALL PROVIDE THE OFFICE WITH ALL INFORMATION NECESSARY

TO COMPLETE AN ACTUARIAL NOTE WITHIN 14 DAYS OF THE REQUEST FOR

INFORMATION BY THE OFFICE. THE OFFICE SHALL TRANSMIT ACTUARIAL

NOTES IN ELECTRONIC FORM TO THE GOVERNOR AND ALL MEMBERS OF THE

GENERAL ASSEMBLY WITHIN THE TIME PERIODS SPECIFIED UNDER THIS

SECTION UPON THE REQUEST OF ANY OF THE FOLLOWING:

(1) THE PRESIDENT PRO TEMPORE OF THE SENATE OR THE

SPEAKER OF THE HOUSE OF REPRESENTATIVES.

(2) THE MAJORITY LEADER OR THE MINORITY LEADER OF THE

SENATE.

(3) THE MAJORITY LEADER OR THE MINORITY LEADER OF THE

HOUSE OF REPRESENTATIVES.

(4) THE CHAIRPERSON OR MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE SENATE.

(5) THE CHAIRPERSON OR MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(6) THE CHAIRPERSON OR MINORITY CHAIRPERSON OF THE

STANDING COMMITTEE OF THE SENATE TO WHICH THE BILL IS

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REFERRED.

(7) THE CHAIRPERSON OR MINORITY CHAIRPERSON OF THE

STANDING COMMITTEE OF THE HOUSE OF REPRESENTATIVES TO WHICH

THE BILL IS REFERRED.

* * *

(L) SUBMISSION OF BASELINE DATA.--NO LATER THAN OCTOBER 1,

2020, JULY 31, 2021, AND JULY 31 OF EACH YEAR THEREAFTER, THE

STATE EMPLOYEES' RETIREMENT SYSTEM AND THE PUBLIC SCHOOL

EMPLOYEES' RETIREMENT SYSTEM SHALL EACH SUBMIT TO THE OFFICE

DATA SHOWING THE 30-YEAR BASELINE PROJECTIONS FOR THE RETIREMENT

SYSTEMS BASED ON THE STATE LAW IN EFFECT AT THE TIME OF THE

SUBMISSION. THE OFFICE MAY SPECIFY THE DATA FIELDS AND THE FILE

FORMAT FOR THE DATA TO BE TRANSMITTED UNDER THIS SUBSECTION.

DATA SUBMITTED UNDER THIS SUBSECTION SHALL INCLUDE PROJECTIONS

WHICH SIMULATE A 1.0 PERCENTAGE POINT INCREASE AND A 1.0

PERCENTAGE POINT DECREASE TO THE OFFICIAL ASSUMED RATE OF RETURN

USED BY EACH RETIREMENT SYSTEM.

SECTION 2 3. THE ACT IS AMENDED BY ADDING AN ARTICLE TO

READ:

ARTICLE XXI-C

COVID-19 DEBT COST REDUCTION REVIEW

Section 2101-C. Review of refinancing opportunities.

The Treasury Department, in conjunction with the Secretary of

the Budget, the Auditor General and any chairperson of an

authority, commission, agency , OR board or other State-

authorized entity that has the power to issue debt, shall

identify and review all outstanding debt obligations of the

Commonwealth and its authorities, commissions, agencies , OR

boards or other State- authorized entities and submit a report of

the findings to the General Assembly no later than June OCTOBER

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30, 2020. In addition to the identification and review of all

outstanding debt obligations, the report shall identify options

for the refinancing of the outstanding debt obligations to

reduce the costs to the Commonwealth and its authorities. EACH

AGENCY IDENTIFIED UNDER THIS SECTION SHALL PROVIDE TO THE

TREASURY DEPARTMENT, WITHIN 30 DAYS AFTER THE EFFECTIVE DATE OF

THIS SECTION, INFORMATION REQUESTED BY THE TREASURY DEPARTMENT,

INCLUDING THE FOLLOWING, RELATED TO ALL OUTSTANDING DEBT

OBLIGATIONS OF THE AGENCY:

(1) TOTAL OUTSTANDING AMOUNT OF ALL OBLIGATIONS.

(2) MOST RECENT AUDITED FINANCIAL STATEMENT OF THE

AGENCY.

(3) DESCRIPTION OF EACH OBLIGATION, IDENTIFYING SENIOR

OR SUBORDINATE DEBT AND FEDERAL TAX TREATMENT.

(4) ACCOUNT OF ALL SECURITY PLEDGED FOR EACH OBLIGATION.

(5) MOST RECENT RATING ASSOCIATED WITH EACH DEBT

OBLIGATION, INCLUDING RATE COVENANT AND MATURITY DATE.

(6) LIST OF ALL ADDITIONAL ASSOCIATED AGENCY OBLIGATIONS

OR COVENANTS.

(7) ANNUAL DEBT SERVICE COST, DEBT SERVICE FUND AND DEBT

SERVICE RESERVE FUND FOR EACH DEBT OBLIGATION.

(8) RISK FACTORS AND DISCLOSURE STATEMENTS ASSOCIATED

WITH EACH DEBT OBLIGATION.

(9) PENDING LITIGATION THAT MAY FINANCIALLY IMPACT THE

DEBT OBLIGATIONS OF THE AGENCY.

Section 2 3 4. This act shall take effect immediately.

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