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CORRECTIVE REPRINT
HOUSE AMENDED
A09218
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1227
Session of
2015
INTRODUCED BY BLAKE AND BROWNE, MAY 9, 2016
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 27, 2016
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; 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
independent administrative boards and commissions,
transferring certain powers and duties relating to public
pension system analysis and legislation; providing for the
Independent Fiscal Office; in powers and duties of the
Department of the Auditor General, transferring certain
powers and duties relating to municipal pension reporting and
analysis; and making related repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
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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
article to read:
ARTICLE VI-B
INDEPENDENT FISCAL OFFICE
Section 601-B. Scope of article.
This article relates to independent fiscal estimates.
Section 602-B. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commonwealth agency." Any office, department, authority,
board, multistate agency or commission of the executive branch.
The term includes:
(1) The Office of the Governor.
(2) The Office of Attorney General, the Department of
the Auditor General and the Treasury Department.
(3) An independent agency as defined in 62 Pa.C.S. § 103
(relating to definitions).
(4) A State-affiliated entity as defined in 62 Pa.C.S. §
103 (relating to definitions).
(5) The General Assembly.
(6) The Judiciary.
"Director." The Director of the Independent Fiscal Office.
"Office." The Independent Fiscal Office established in
section 603-B.
"Proposed collective bargaining agreement." The terms of
bargaining between a public employer and an employee
organization which:
(1) Apply to wages, hours, terms and conditions of
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employment, benefits and working conditions.
(2) Are:
(i) Reduced to writing.
(ii) Agreed upon by designated representatives of
the public employer and the employee organization.
(iii) Submitted for acceptance as a contract to the
public employer and the public employee organization.
"Public employee retirement plan." Any of the following:
(1) The State Employees' Retirement System established
under 71 Pa.C.S. Pt. XXV (relating to retirement for State
employees and officers).
(2) The Public School Employees' Retirement System
established under 24 Pa.C.S. Pt. IV (relating to retirement
for school employees).
(3) The Pennsylvania Municipal Retirement System
established under the act of February 1, 1974 (P.L.34,
No.15), known as the Pennsylvania Municipal Retirement Law.
(4) Any other independent pension or retirement plan for
public officers and employees of the Commonwealth.
(5) Pension or retirement plans established under 11
Pa.C.S. Ch. 143 (relating to pensions).
(6) Pension or retirement plans created pursuant to the
act of May 29, 1956 (1955 P.L.1804, No.600), referred to as
the Municipal Police Pension Law.
"Selection and organization committee." The Independent
Fiscal Office Selection and Organization Committee.
Section 603-B. Office established.
There is established a nonpartisan Independent Fiscal Office
as an independent agency.
Section 604-B. Duties of office.
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(a) Mandatory.--The office shall:
(1) Prepare revenue estimates to include Federal funds,
State revenues and funds from other resources, including any
projected revenue surplus or deficit for a given fiscal year,
as provided under section 605-B.
(2) By November 15 of each year, provide an assessment
of the State's current fiscal condition and a projection of
what the fiscal condition will be during the next five years.
The assessment shall take into account the state of the
economy, demographics, revenues and expenditures.
(3) Develop performance measures for executive-level
programs and departments and evaluate performance measures
and results as promulgated and reported by executive-level
departments. Performance measurements shall be outcome based
and include, but not be limited to, activity cost analysis,
measures of status improvement of recipient populations,
economic outcomes and performance benchmarks against similar
State programs.
(4) Provide an analysis, including economic impact, of
all tax and revenue proposals submitted by the Governor or
the Office of the Budget.
(5) Study and analyze the existing sales and use tax law
and propose recommendations to the Governor and the General
Assembly for amending the tax to:
(i) eliminate obsolete and unnecessary provisions;
(ii) expand the tax base as necessary;
(iii) ensure a competitive economic market in this
Commonwealth; and
(iv) protect the stability of the Commonwealth's
budget.
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(6) Establish an Internet website.
(7) Study and analyze the impact of shared-risk
contributions under 24 Pa.C.S. § 8321(b) (relating to regular
member contributions for current service) and 71 Pa.C.S. §
5501.1 (relating to shared-risk member contributions for
Class A-3 and Class A-4 service).
(8) Provide a cost analysis for the current fiscal year
and remaining subsequent fiscal years of the impact of each
proposed collective bargaining agreement under the
jurisdiction of the Governor prior to execution, including
the costs to cover public employee wages, benefits, pensions
and working conditions that have been reduced in writing
under section 701 of the act of July 23, 1970 (P.L.563,
No.195), known as the Public Employe Relations Act .
(b) Discretionary.--The office may:
(1) Develop and use econometric models to annually
forecast State revenues and update the models. The office
shall make the equations of a model and any historic
databases related thereto available to the chair and minority
chair of the Appropriations Committee of the Senate, the
chair and minority chair of the Appropriations Committee of
the House of Representatives, the Majority Leader and
Minority Leader of the Senate and the Majority Leader and
Minority Leader of the House of Representatives.
(2) Provide an analysis of the executive budget,
including budgetary projections, economic outlook and
economic impact. The budget analysis may include performance
recommendations to secure greater efficiency and economy.
(3) Provide an assessment of the Pennsylvania economy
and the national economy and the impact of the existing or
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emerging State or national economic trends on revenue
performance for the current year and the forecasted or
projected revenue collections for the budget year and the
succeeding year.
Section 605-B. Revenue estimates.
(a) Initial revenue estimate.--By May 1, the office shall
submit to the General Assembly an initial revenue estimate for
the next fiscal year.
(b) Official revenue estimate.--
(1) By June 15 of each year, the office shall submit an
official revenue estimate for the next fiscal year.
(2) A revenue estimate submitted under this section
shall be considered by the Governor and the General Assembly
as the amount of revenue which may be considered for the
general appropriation act for the ensuing fiscal year unless
the General Assembly or the Governor determines that revenues
are greater than or less than the estimate provided under
this section. The office may amend the revenue estimate under
this section if changes in law affecting revenues and
receipts are enacted or proposed to be enacted with the
annual State budget or unless significant changes in economic
assumptions occur prior to June 30. The office shall submit
the amended revenue estimate to the General Assembly within
10 days of the change.
(3) The office shall publish the methodology used to
develop revenue estimates.
(c) Information.--The office shall provide the chair and
minority chair of the Appropriations Committee of the Senate,
the chair and minority chair of the Appropriations Committee of
the House of Representatives and the Secretary of the Budget all
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data, assumptions or econometric models used to develop
projections and revenue estimates.
(d) Required information.--
(1) A revenue estimate submitted by the office under
subsection (b) shall include:
(i) Projected revenue collections by specific tax or
revenue source, including Federal funds, the General
Fund, the Lottery Fund and the Motor License Fund.
(ii) All data, assumptions and econometric models
used to develop a revenue estimate.
(iii) Any projected revenue surplus or deficit for
the current fiscal year.
(2) A revenue estimate shall be based on existing law
and tax policy and existing or emerging State or national
economic trends.
(e) Proposed change in law.--The office shall prepare a
revenue estimate of any change in law affecting revenues and
receipts, including increases in regulatory fees, proposed or
considered as part of the annual State budget. If the proposed
change in law will have a fiscal impact in excess of $10,000,000
in any fiscal year, the estimate shall be prepared on the basis
of assumptions that estimate the probable behavioral responses
of taxpayers, businesses and other persons to the proposed
changes and shall include a statement identifying those
assumptions. The information may be used to revise the revenue
estimate under subsection (a).
(f) Department of Revenue.--The Department of Revenue in
conjunction with the Secretary of the Budget shall make revenue
estimates for the use of the Governor in preparing the budget.
(g) Governor.--The Governor shall certify that any
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appropriation bill does not cause total appropriations to exceed
revenues plus any unappropriated surplus as provided in section
618.
Section 606-B. Budget information.
The office shall be notified and shall attend any briefings
provided by the Governor or the Secretary of the Budget under
section 619.
Section 607-B. Expenditures.
(a) Expenditure reports.--Commonwealth agencies shall make
monthly expenditure data available to the office. The data shall
be provided within seven days after the end of each month. The
monthly data shall include a summary of the last monthly
submission. The data shall be provided in finished reports or
electronically, as provided in this act. The data shall be
provided by fund, by appropriation, by department and by
organization within each department and shall include:
(1) Number of filled personnel positions and their cost.
(2) Itemized personnel vacancies and their cost.
(3) New positions created and their cost.
(4) Wage and overtime costs.
(5) Allotments and expenditures for itemized personnel
expenses.
(6) Allotments and expenditures for itemized operating
expenses.
(7) Allotments and expenditures for itemized fixed
assets.
(8) The rate of expenditures in appropriations for major
subsidy and grant programs during the month.
(b) Revenue reports.--The Governor shall direct that monthly
revenue reports be submitted to the office. The revenue reports
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shall show the actual collection of revenue itemized by source
and a comparison of the actual collections with estimated
collections for each month. The comparison shall include an
analysis of any change in collection patterns which will cause a
shortfall or overrun on annual estimates of more than 1%.
(c) Other revenue data.--Commonwealth agencies shall cause
to be prepared any other revenue data as may be requested from
time to time by the office.
(d) Electronic access.--Except for information that is
confidential pursuant to statute, the office shall have access
to all information available under this section on inquiry-only
screens through an integrated central computer system.
Section 608-B. Revenue conference.
By January 31 of each year, the office shall convene a
meeting with the Secretary of the Budget, the Secretary of
Revenue and the chair and minority chair of the Appropriations
Committee of the Senate and the chair and minority chair of the
Appropriations Committee of the House of Representatives to
discuss the following:
(1) The Pennsylvania economy and the national economy
and the impact of the economic trends on revenue performance
for the budget year and the succeeding year.
(2) Current year-to-date revenue collections by specific
tax or revenue source, including Federal funds, the General
Fund, the Lottery Fund and the Motor License Fund and
variations that may be occurring in the revenue estimate
submitted under section 605-B(a).
(3) Any statutory or tax policy changes that may be
recommended by the Governor or the General Assembly for the
next succeeding fiscal year.
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Section 609-B. Access to information.
(a) Agencies.--The director is authorized to secure
information, data, expense information, estimates and statistics
directly from a Commonwealth agency or a political subdivision.
All Commonwealth agencies and political subdivisions shall
furnish the director with all reports of expenditure for each
agency and any other available material or data which the
director determines to be necessary in the performance of the
duties of the office, other than material the disclosure of
which would be a violation of law. The director is also
authorized, upon agreement with the head of any Commonwealth
agency or political subdivision, to utilize the services,
facilities and personnel of the agency with or without
reimbursement.
(b) Office of the Budget.--In carrying out the duties and
functions of the office, the director is authorized to obtain
information, data, estimates and statistics developed by the
Office of the Budget and all Commonwealth agencies. The Office
of the Budget shall submit to the office copies of final agency
budget requests at the same time they are submitted to the
General Assembly under this act.
(c) Computer database.--In order to carry out its duties
under this article, the office shall have access to any
computerized database of a State agency that is required to aid
the office in the performance of its duties, except that any
statutory requirements regarding privacy of individuals' records
shall be observed in providing access.
(d) Daily revenue data.--
(1) The Secretary of Revenue and the Secretary of the
Budget shall post revenue collection data for each deposit
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day and make the information available to the office and the
chair and minority chair of the Appropriations Committee of
the Senate and the chair and minority chair of the
Appropriations Committee of the House of Representatives.
(2) The Governor, the Attorney General, the Auditor
General and the State Treasurer shall cause to be prepared
any other revenue data as may be requested by the office.
(e) Tax information.--For the purposes of carrying out its
official duties under section 605-B and notwithstanding any
other law of this Commonwealth, the office shall be authorized
to access any information in the possession of the Department of
Revenue that is obtained from tax payments, returns or reports,
including adjustments or corrections made by the department
DEPARTMENT OF REVENUE . The information accessed under this
section shall be confidential except for official purposes and
any person divulging the information shall be subject to section
731 of the act of April 9, 1929 (P.L.343, No.176), known as The
Fiscal Code.
(f) Civil action.--If information is not made available by a
Commonwealth agency or political subdivision within a reasonable
time, the director may make a written request to the agency
head, stating the authority to receive the information. The
agency head shall have 15 days to respond. If the information is
not provided within 15 days of the receipt of the director's
request, the director may bring a civil action to require the
agency head to provide the information.
(g) Collective bargaining agreements.--The Office of
Administration and the Office of the Budget shall:
(1) Submit to the office at least 20 days, excluding
weekends and holidays, in advance of its execution, copies of
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each proposed collective bargaining agreement under the
jurisdiction of the Governor.
(2) Concurrent with each submission under paragraph (1),
provide the office with a detailed cost analysis of the
proposed collective bargaining agreement. The analysis shall
compare the collective bargaining agreement in effect at the
time of submission to projections for the proposed collective
bargaining agreement for the current fiscal year and the
remaining subsequent fiscal years in the agreement. The
analysis shall include:
(i) The number of employees covered by the
agreement, by fund.
(ii) Wages and salaries, by fund.
(iii) Employer costs for employee benefits,
including pension contributions, by fund.
(iv) A summary of the changes to paid leave, working
hours, working conditions or any other term of employment
in the proposed collective bargaining agreement and the
projected cost of such changes, by fund.
(v) A statement explaining the data, assumptions and
methodology used to make the projections.
(3) Within four days, excluding weekends and holidays,
of a request by the director, provide the office with any in-
formation, data, statistics or analysis determined by the
director to be necessary to fulfill the office's obligations
under section 604-B.
Section 610-B. Selection and organization committee.
(a) Selection and organization committee.--The Independent
Fiscal Office Selection and Organization Committee is
established to organize the office and select the director of
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the office. The selection and organization committee shall
consist of the following:
(1) The chair and minority chair of the Appropriations
Committee of the Senate and the chair and minority chair of
the Appropriations Committee of the House of Representatives.
(2) The Majority Leader and the Minority Leader of the
Senate and the Majority Leader and the Minority Leader of the
House of Representatives.
(3) The President pro tempore of the Senate and the
Speaker of the House of Representatives.
(b) Duties of committee.--The selection and organization
committee shall deliberate the following:
(1) The procedures to be adopted to select the director
of the office.
(2) The operational budget for the office.
Section 611-B. Appointment.
(a) Director.--The office shall be headed by a director
appointed by the selection and organization committee. The
appointment shall be made without regard to political
affiliation and solely on the basis of fitness to perform the
duties of the office based on qualifications published by the
selection and organization committee.
(b) Deputy director.--The director shall appoint a deputy
director who shall perform such duties as assigned by the
director and who shall, during the absence or incapacity of the
director or a vacancy, act as the director.
(c) Term.--The term of office of the director shall be six
years. An individual appointed as director to fill a vacancy
prior to the expiration of a term shall serve only for the
unexpired portion of that term. An individual serving as
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director at the expiration of a term may continue to serve until
a successor is appointed.
(d) Removal.--The director may be removed by a concurrent
resolution passed by the Senate and the House of
Representatives.
Section 612-B. Powers and duties of director.
(a) Personnel.--The director shall appoint and fix the
compensation of personnel as necessary to carry out the duties
and functions of the office. All personnel of the office shall
be appointed without regard to political affiliation and solely
on the basis of their fitness to perform their duties.
(b) Experts and consultants.--In carrying out the duties and
functions of the office, the director may procure the temporary
or intermittent services of attorneys, experts or consultants or
organization thereof by contract.
Section 613-B. Records.
The office shall be a legislative agency for purpose of the
act of February 14, 2008 (P.L.6, No.3), known as the Right-to-
Know Law.
Section 614-B. Applicability.
To the extent that this article is inconsistent with section
618, the provisions of this article shall apply.
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 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
proposes substantial benefit design changes under 24 Pa.C.S. Pt.
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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 office shall transmit
actuarial notes to the Governor and the officers listed in this
subsection all members of th e 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
REFERRED.
(7) THE CHAIRPERSON OR MINORITY CHAIRPERSON OF THE
STANDING COMMITTEE OF THE HOUSE OF REPRESENTATIVES TO WHICH
THE BILL IS REFERRED.
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(b) Analysis.--At the request of an officer listed in
subsection (a), the office shall analyze the provisions of a
bill relating to public employee retirement or pension policy
and issue a report on the bill in a timely fashion. The report
shall provide a synopsis of the bill and financial cost and
shall identify proposed changes to current law and current
policy. The report, after consultation with the requesting
officer, may include an assessment of the actuarial impact and
shall be submitted to the Governor and the officers listed in
subsection (a) all members of the General Assembly .
(c) Plans.--Establish and review public employee retirement
plans for actuarial soundness and report the results to the
Governor and the General Assembly.
(d) Website.--Maintain the following on its Internet website
in a publicly accessible and searchable area:
(1) All actuarial notes issued by the Public Employee
Retirement Commission prior to the effective date of this
section.
(2) All actuarial notes prepared pursuant to subsection
(a) and reports under subsection (b) issued by the office,
which shall be posted at the time they are transmitted under
subsection (a).
(3) Any other information that is requested to be posted
by an officer listed in subsection (a).
(e) Reimbursement.--The office shall request, after
expending all appropriations for the performance of its duties
under this section, a reimbursement of expenses from the entity
requesting the preparation of materials under this subsection. A
restricted account is established in the General Fund which
shall consist of reimbursement payments received by the office
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under this paragraph. The money in the restricted account is
appropriated on a continuing basis to the office for the purpose
of the performance of its duties under this act, except that the
money in the restricted account may not be expended unless the
office expends all other appropriations for the performance of
its duties under this section.
(f) Formulation.--The office shall study generally the
subject of retirement, income after retirement, disability and
death benefits and the retirement needs of public employees. The
office shall formulate principles and objectives and recommend
any new legislation it deems advisable as requested by an
officer listed in subsection (a).
(g) Study.--The office shall study the relationship of
retirement and pension policy to other aspects of public
personnel policy and to the effective operation of government
generally, as requested by an officer listed in subsection (a).
(h) Note required for bills.--Except as otherwise provided
in subsection (k)(1), no bill proposing any change relative to a
public employee pension or retirement plan may be given second
consideration in either House of the General Assembly, until the
office has attached an actuarial note prepared by an enrolled
pension actuary which shall include a reliable estimate of the
cost and actuarial effect of the proposed change in the pension
or retirement system.
(i) Note required for amendments.--Except as otherwise
provided in subsection (k)(2), no amendment to any bill
concerning any public employee pension or retirement plan may be
considered by either House of the General Assembly until an
actuarial note prepared by an enrolled pension actuary has been
attached.
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(j) Notes for proposed constitutional amendments.--The
office shall issue an actuarial note, prepared by an enrolled
pension actuary, for any joint resolution proposing an amendment
to the Constitution of Pennsylvania which initially passes
either House of the General Assembly. If the joint resolution is
subsequently amended and passes either House of the General
Assembly, a new actuarial note shall be prepared.
(k) Effect of failure of office to attach note.--
(1) If the office fails to attach an actuarial note
within 20 legislative days after a bill proposing a change
relative to a public employee pension or retirement plan has
received first consideration in either House of the General
Assembly, the bill may be further considered in the same
manner as if the actuarial note had been attached to the
bill.
(2) If the office fails to attach an actuarial note
within 20 legislative days after an amendment to a bill
proposing a change relative to a public employee pension or
retirement has been submitted to the office by an officer
listed in subsection (a), the amendment may be considered in
the same manner as if the actuarial note had been attached to
the amendment.
Section 2. The act is amended by adding sections to read:
Section 1004. Transferring Certain Powers and Duties
Relating to Municipal Pension Reporting and Analysis.--(a)
Notwithstanding any other provision of law, the powers and
duties of the Public Employee Retirement Commission under the
act of December 18, 1984 (P.L.1005, No.205), known as the
"Municipal Pension Plan Funding Standard and Recovery Act,"
shall be transferred to the Department of the Auditor General in
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accordance with this section. The transferred duties shall be
independent of the Department of the Auditor General's existing
audit functions and shall be segregated in a departmental bureau
separate from the bureau that performs audit functions as of the
effective date of this section.
(b) Within thirty (30) days of the effective date of this
section, the Department of the Auditor General shall provide
notice of the transfer of powers and duties under this section
to all of the following:
(1) The Governor.
(2) The President pro tempore of the Senate.
(3) The Speaker of the House of Representatives.
(4) The Minority Leader of the Senate.
(5) The Minority Leader of the House of Representatives.
(6) The chair and minority chair of the Finance
Committee of the Senate.
(7) The chair and minority chair of the Finance
Committee of the House of Representatives.
(c) The following shall be transferred to the Department of
the Auditor General which are used or held in connection with
the powers and duties transferred under this section:
(1) All necessary personnel.
(2) (1) Contractual obligations.
(3) (2) Mortgages, liens, encumbrances and any other
secured interests, records, files, property, supplies and
equipment.
(4) (3) The unexpended balance of appropriations,
allocations and other funds available or to be made
available.
(d) The responsibility of municipalities to file and report
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materials and to otherwise comply with the "Municipal Pension
Plan Funding Standard and Recovery Act" shall remain in effect
after the effective date of this section, except all filing and
reporting under the "Municipal Pension Plan Funding Standard and
Recovery Act" shall be made to the Department of the Auditor
General in the manner directed by the department DEPARTMENT OF
GENERAL SERVICES . Within thirty (30) days of the effective date
of this section, the Auditor General shall submit to the
Legislative Reference Bureau for publication in the Pennsylvania
Bulletin, and shall post on the Department of the Auditor
General's publicly accessible Internet website, the manner of
preparing the filings and reports required by the "Municipal
Pension Plan Funding Standard and Recovery Act" and the method
of delivering and submitting those filings and reports to the
Department of the Auditor General.
(e) The Department of the Auditor General shall perform the
cost certification procedures pursuant to the "Municipal Pension
Plan Funding Standard and Recovery Act" and shall transmit its
calculation and determination to the Office of the Budget for
review and certification within ninety (90) days. After
performing its review and certification, the Office of the
Budget shall transmit its certification to the Department of the
Auditor General for the performance of any additional functions
that have been assigned to it under the "Municipal Pension Plan
Funding Standard and Recovery Act" in accordance with this
section by August 1 of each calendar year. The Department of the
Auditor General shall maintain and post the reports required
under the "Municipal Pension Plan Funding Standard and Recovery
Act" on its publicly accessible Internet website.
(f) No bond or note issued to fund an unfunded actuarial
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accrued liability may be valid or obligatory in the hands of an
original purchaser until certified copies of the ordinance or
ordinances authorizing bonds or notes, the ordinance or
resolution awarding the bonds or notes and the certificate of
approval of the department have been filed with the Auditor
General. Approval of the Auditor General shall be not be
required.
Section 1005. Transfer of Certain Employes.--By October 1,
2016, or upon the duties in section 1004 being transferred,
whichever occurs first, the employes of the Public Employee
Retirement Commission are transferred to the Department of
Auditor General.
Section 3. The addition of Article VI-B of the act is a
continuation of 71 Pa.C.S. Ch. 41.
Except as otherwise provided in Article VI-B of the act,
all activities initiated under 71 Pa.C.S. Ch. 41 shall
continue and remain in full force and effect and may be
completed under Article VI-B of the act. Orders, regulations,
rules and decisions which were made under 71 Pa.C.S. Ch. 41
and which are in effect on the effective date of this section
shall remain in full force and effect until revoked, vacated
or modified under Article VI-B of the act. Contracts,
obligations and collective bargaining agreements entered into
under 71 Pa.C.S. Ch. 41 are not affected nor impaired by the
repeal of 71 Pa.C.S. Ch. 41.
Section 4. The following shall apply:
(1) Except as provided under Article VI-B of the act,
any report required prior to the effective date of this
section SECTION 1004 to be filed with the Public Employee
Retirement Commission shall, on and after the effective date
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of this section SECTION 1004, be filed with the Auditor
General.
(2) The Independent Fiscal Office may utilize existing
contracts for actuarial services or may contract with other
vendors for actuarial services approved by the Department of
General Services. The department shall assist in technical
revisions required to any existing contracts.
Section 5. Repeals are as follows:
(1) The General Assembly declares that the repeals under
paragraphs (2) and (3) are necessary to effectuate the
addition of Article VI-B of the act.
(2) The provisions of 71 Pa.C.S. Ch. 41 are repealed.
(3) The provisions of 53 Pa.C.S. § 8116 are repealed.
(2) THE PROVISIONS OF 53 PA.C.S. § 8116 ARE REPEALED.
(3) THE PROVISIONS OF 71 PA.C.S. CH. 41 ARE REPEALED.
(4) The act of July 9, 1981 (P.L.208, No.66), known as
the Public Employee Retirement Commission Act, is repealed
insofar as it is inconsistent with this act.
Section 6. This act shall take effect July 1, 2016, or
immediately, whichever is later. AS FOLLOWS:
(1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT AUGUST 1,
2016:
(I) THE ADDITION OF SECTION 615-B OF THE ACT.
(II) THE ADDITION OF SECTION 1004 OF THE ACT.
(III) SECTION 4(1) OF THIS ACT.
(IV) SECTION 5(1), (2) AND (4) OF THIS ACT.
(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JULY 1,
2016, OR IMMEDIATELY, WHICHEVER IS LATER.
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