Pennsylvania Senate Republican News Brief

"We keep creating programs that have similar -- if not redundant -- missions and then we're trying to find dollars to keep them all funded."

Senate Community, Economic and Recreational Development Committee Chair Jane Earll (R-Erie) addressing DCED Secretary Dennis Yablonsky on May 21 about budgeting practices and new programs proposed by the Rendell Administration.

THE SENATE STATE GOVERNMENT COMMITTEE, chaired by Sen. Jeffrey Piccola (R-Dauphin), will hold a public hearing Monday on Senate Bill 1, legislation sponsored by Senate Majority Leader Dominic Pileggi (R-Delaware) to significantly strengthen Pennsylvania's Right-to-Know Law.

The Senate Consumer Protection and Professional Licensure Committee, chaired by Sen. Tommy Tomlinson (R-Bucks), and the Senate Environmental Resources and Energy Committee, chaired by Sen. Mary Jo White (R-Venango), will hold a joint public hearing Tuesday to discuss an energy policy for Pennsylvanians.

On Wednesday, the Senate Public Health and Welfare Committee, chaired by Sen. Ted Erickson (R-Delaware), will hold a public hearing on hospital-acquired infections, which impact patient safety and drive up health care costs.

LEGISLATION SPONSORED BY Senate Majority Leader Dominic Pileggi (R-Delaware) to require the posting of governmental salary information on the Internet passed the Senate unanimously May 22.

Under Senate Bill 729, known as the Governmental Salary Information Act, the state Treasurer would be required to post salary information for all government employees in Pennsylvania on an official web site. Senate Bill 729 now moves to the House of Representatives for consideration. (For more on the Governmental Salary Information Act, please see In the Spotlight.)

THE SENATE VOTED MAY 22 TO STRENGTHEN legislation to provide state oversight of proposed mergers involving non-profit health insurance companies.

The key component of House Bill 112 -- as with Senate Bill 550, similar legislation sponsored by Senate Insurance and Banking Committee Chairman Don White (R-Indiana) -- is the requirement that any merger involving the "Blues" be subject to approval by the state Department of Insurance.

A proposed merger of the two largest health care insurers in Pennsylvania, Independence Blue Cross or Highmark Inc., could have long-term impacts on the quality and availability of health care coverage in the commonwealth.

While the Insurance Department would hold final approval authority for a merger of non-profit health insurance companies, the Senate amended House Bill 112 to also establish an Insurance Restructuring Public Interest Review Board comprised of representatives from the Auditor General's Office, the Administration, and the four caucuses of the General Assembly, as well as a policyholder to provide recommendations to the Department.

House Bill 112 was returned to the House of Representatives with Senate amendments. (For more on House Bill 112 as amended by the Senate, please see Fast Facts.)

THE SENATE AGRICULTURE AND RURAL AFFAIRS COMMITTEE, chaired by Sen. Mike Brubaker (R-Lancaster), held a joint hearing May 22 with its House counterpart on Pennsylvania milk pricing and dairy policy.

A comprehensive set of proposals intended to improve current dairy policy on both the federal and state level was presented to the committee. In addition, producers and processors were on hand to provide further insight on the subject.

Sen. Brubaker stated: "Throughout the listening sessions that my committee held over the past few months, we have heard repeatedly that our dairy farmers are facing a crisis. Milk prices are simply not keeping pace with the increased costs of feed, energy and other input costs, and many farmers have already gone out of business or will in the next few months."

Sen. Lisa Baker (R-Luzerne)

THE SENATE URBAN AFFAIRS AND HOUSING COMMITTEE, chaired by Sen. John Pippy (R-Allegheny), held the first in a series of public hearings May 23 on the fiscal health of Pennsylvania's cities and Act 47, the Municipalities Financial Recovery Act.

Recent studies have outlined possible shortcomings of Act 47 and the need to examine challenges faced by Pennsylvania's cities.

The hearing featured testimony from the state Secretary of Community and Economic Development, representatives of Pennsylvania mayors, and organizations representing police officers and firefighters. The committee also will hold hearings on June 21 in Pittsburgh and July 25 in Philadelphia.

THE SENATE STATE GOVERNMENT COMMITTEE, chaired by Sen. Jeffrey Piccola (R-Dauphin), held a public hearing May 23 to discuss legislation held over from the May 8 committee meeting.

Senate Bill 137, sponsored by Sen. James Rhoades (R-Schuylkill), would propose a constitutional amendment authorizing the use of the initiative and referendum.

"Initiative" would allow Pennsylvanians to propose laws or amendments to the Constitution and give voters the authority to enact those proposals independent of the General Assembly. "Referendum" would allow Pennsylvanians to approve or reject legislation that is approved by the General Assembly and signed into law.

Sen. Pileggi's legislation, Senate Bill 729, would require the posting of the name, title, agency, salary, and any supplemental payments for each employee. Information for legislative employees would also include the caucus or institution each employee works for. The bill calls for monthly updates.

In addition to state government, local government agencies, including counties, school districts, cities and other municipalities, would be required to post employee salary information on their own official sites.

Local agencies with no web site would be required to provide the information in electronic or written form within five days of a request. The state Treasurer would maintain a directory of the local agency sites.

Sen. Pileggi is also the prime sponsor of Senate Bill 1, which would strengthen Pennsylvania's Open Records Act (also known as the Right-to-Know Law). The Senate State Government Committee, chaired by Sen. Jeffrey Piccola (R-Dauphin), will hold a hearing on that legislation on June 4.

Senate Passes Safeguards for Insurance Company Mergers

Requires the Department of Insurance to develop a written determination that the merger or consolidation will result in a sustained reduction in health care premiums. The department's written determination must also set forth the reasons why the transaction will be in the public interest.
Includes a good-government provision that prohibits any contract or agreement between the Commonwealth and Blue Cross or Highmark relating to the disbursement or spending of the proceeds from the merger or consolidation. It also prohibits any spending from the restricted receipt account except upon appropriation by the General Assembly.
Adds a new article to the Insurance Company Act to require hospital plan corporations and professional health services plan corporations to report annually to the Department of Insurance and the House and Senate Insurance committees all amounts spent on "social mission" and on advertising.
Establishes an Insurance Restructuring Public Interest Review Board to provide recommendations to the Insurance Department regarding mergers.