Regular Session 2019-2020 House Bill 1995 P.N. 2798

PRINTER'S NO. 2798

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1995

Session of

2019

INTRODUCED BY RYAN, BERNSTINE, BROOKS, ECKER, GLEIM, HERSHEY,

KAUFFMAN, LEWIS, MACKENZIE, B. MILLER AND STAATS,

OCTOBER 25, 2019

REFERRED TO COMMITTEE ON STATE GOVERNMENT, OCTOBER 25, 2019

AN ACT

Establishing the Keystone Solvency Operating Study Commission

and providing for its powers and duties and for a report.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Keystone

Solvency Operating Study Commission Act.

Section 2. Legislative intent.

The intent of this act is to provide insight into financial

risks relative to unfunded pension liabilities, other

postemployment benefit unfunded liabilities, deferred public

sector infrastructure projects to include deferred maintenance,

municipal solvency concerns, school district solvency concerns,

debt service solvency risks of the Commonwealth, financial

stress testing of the Commonwealth's cash flow projections and

current comprehensive annual financial reports under various

economic scenarios and other financial risks that may come

before the Keystone Solvency Operating Study Commission and

provide financial analysis of other states considered

financially vulnerable.

Section 3. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Commission." The Keystone Solvency Operating Study

Commission established under section 4.

"Critical risk factor." Any element of risk of sufficient

magnitude which, if not dealt with, may negatively affect the

ability of the Commonwealth to continue to meet financial

obligations.

"PROMESA." The Puerto Rico Oversight, Management, and

Economic Stability Act (Public Law 114-187, 130 Stat. 549).

Section 4. Keystone Solvency Operating Study Commission.

(a) Establishment.--The Keystone Solvency Operating Study

Commission is established as a legislative commission for the

purpose of analyzing the economic conditions of the

Commonwealth, specifically unfunded obligations of school

districts, municipalities and public pension plans. The

commission shall consider unfunded postemployment benefits of

the Commonwealth to determine the impact on operations of other

financial commitments during periods of economic recession. The

study shall ensure that the priority of financial claims is

understood within the framework of the Constitution of

Pennsylvania. The commission shall be comprised of the following

members:

(1) One member appointed by the Governor.

(2) Two members appointed by the President pro tempore

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of the Senate, one from the majority party and one from the

minority party.

(3) Two members appointed by the Speaker of the House of

Representatives, one from the majority party and one from the

minority party.

(b) Duties.--The commission shall:

(1) Analyze the financial insolvencies under PROMESA and

solvency concerns of other states to determine lessons

learned and the impact of insolvency proceedings to meet

financial obligations in operating budgets.

(2) In consultation with the Independent Fiscal Office,

develop cash flow projections for the immediate five years

following the effective date of this section. The projections

shall include best case, expected case and worst case

scenarios to be defined by the Independent Fiscal Office in

the creation of the projections.

(3) Determine critical risk factors of importance to the

Commonwealth on the Commonwealth's financial well-being and

control measures to monitor the risk factors.

(4) Develop performance metrics for use by the

Independent Fiscal Office to monitor the critical risk

factors identified with the measures published in the

quarterly economic updates from the Independent Fiscal

Office.

constitute a quorum for the purpose of conducting business.

(d) Chairperson and vice chairperson.--The members shall

select one of the members to be chairperson and another member

to be vice chairperson.

(e) Qualified vote.--A vote on the findings and

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recommendations to the General Assembly under section 5 shall

require two-thirds of the members voting in the affirmative.

(f) Compensation and reimbursement.--Members of the

commission shall not receive compensation or reimbursement for

their services on the commission.

(g) Information gathering.--The commission may conduct

hearings and otherwise gather pertinent information and analysis

that the commission considers appropriate and necessary to

fulfill its duties, which may include, but shall not be limited

to, the Independent Fiscal Office and the Joint State Government

Commission.

(h) Support.--The General Assembly shall provide

administrative support, meeting space and any other assistance

required by the commission to carry out the commission's duties

under this act.

(i) Transparency and ethics.--The commission shall be

subject to the following laws:

(1) 65 Pa.C.S. Ch. 7 (relating to open meetings).

(2) The act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law. The commission shall be considered a

legislative agency as defined in section 102 of the Right-to-

Know Law.

Section 5. Report and expiration.

(a) Report.--The commission shall report its findings and

recommendations to the Governor and the General Assembly within

six months of its first organizational meeting. The report shall

be directly submitted to:

(1) The President pro tempore of the Senate.

(2) The Majority Leader of the Senate.

(3) The Minority Leader of the Senate.

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(4) The chair and minority chair of the Finance

Committee of the Senate.

(5) The Speaker of the House of Representatives.

(6) The Majority Leader of the House of Representatives.

(7) The Minority Leader of the House of Representatives.

(8) The chair and minority chair of the Finance

Committee of the House of Representatives.

(b) Expiration.--The commission shall expire 60 days after

delivery of its report under subsection (a).

Section 6. Effective date.

This act shall take effect in 30 days.

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