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A04633
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
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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.
(c) Quorum.--A majority of appointed members shall
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 chair and minority chair of the State Government
Committee of the Senate.
(6) The chair and minority chair of the Appropriations
Committee of the Senate.
(5) (7) The Speaker of the House of Representatives.
(6) (8) The Majority Leader of the House of
Representatives.
(7) (9) The Minority Leader of the House of
Representatives.
(8) (10) The chair and minority chair of the Finance
Committee of the House of Representatives.
(11) The chair and minority chair of the State
Government Committee of the House of Representatives.
(12) The chair and minority chair of the Appropriations
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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