Pennsylvania Society of Professional Engineers
Summary of Legislation
April 2008
Headlines:
DGS Updating General Conditions
Design professionals and construction contractors that do work for the Pennsylvania Department of General Services (DGS) should take note that the state agency is rewriting its general conditions for both groups. The document for design professionals is called the “Agreement for Professional Services and General Conditions to the Agreement for Professional Services”. The construction contract is referred to as “The Standard Form of Contract and General Conditions of the Construction Contract”.
DGS’s agreements have never resembled the contract documents most industry professionals are familiar with such as AIA contract documents. That is not about to change, but the agreements may make some significant improvements. For example, the design professional’s agreement allows, for the first time, a negotiated fee as opposed to an arbitrary % of the cost of construction.
Likewise, the construction contracts will include references to the “Best Value” selection process, signaling that DGS is about to reinstitute its use for certain construction awards now that the Courts have upheld its legality.
Both documents will be available to view at the Departments web site: www.dgs.state.pa.us.
There will be a public comment period for at least 30 days starting with the posting of the documents (estimated to occur within a few weeks). The Department’s counsel will also be holding regional public meetings to explain and receive feedback on the new general conditions. No dates or locations are presently available for those hearings.
Pa. Dam Safety Needs Improvement, Says Auditor General Jack Wagner
The Pennsylvania Department of Environmental Protection isn’t doing a good enough job of making sure the state’s dams are safe, according to a new audit released yesterday by Auditor General Jack Wagner. Pennsylvania contains approximately 3,200 dams, most of them privately owned. Of those dams, the DEP lists 793 of them as high hazard dams, meaning they could cause deaths downstream if they fail, and nearly 75 percent of those dams either have no DEP-approved emergency plans (406 dams) or outdated plans (189 dams) detailing how residents will be informed and evacuated if a dam breaks or overflows, according to the audit. According to The Associated Press, Wagner said the audit was initiated in 2006 in the months after flooding in the Wilkes-Barre area led officials to order the precautionary evacuation of 150,000 to 200,000 people. About 616,000 people live within the flood range of the high hazard dams that lack adequate emergency plans, reports the AP.
Responding to the audit, DEP Secretary Katie McGinty said the state has moved aggressively to improve dam safety enforcement since Gov. Ed Rendell took office in 2003, and that the department has already addressed many of the recommendations offered by the audit. "While we appreciate the auditor general's findings, this report reflects the programs of the past, not the programs as they are today," McGinty said of the report, which examined the dam safety programs from July 2002 to September 2006. "Governor Rendell has made strengthening Pennsylvania's dam and levee safety programs a priority as part of his call to rebuild the state's infrastructure. We've stepped up inspections and enforcement actions, improved lines of communications with local officials and other agencies, and taken steps to ensure our emergency response capabilities are well organized.”
Wagner’s report is available in its entirety at www.auditorgen.state.pa.us.
Legislative Activity
HB 816 RE: Uniform Construction Code (UCC) Appeals (by Rep. Scott Boyd, et al)
Amends the PA Construction Code Act further providing for board of appeals. The bill states that a board of appeals can consider an appeal if the Uniform Construction Code (UCC) was incorrectly interpreted by the code administrator, the UCC does not apply, the requirements of the UCC impose an unreasonable burden on the appellant to which a variance will not cause public harm, an equivalent form of construction can be used and the UCC imposes a requirement that violates the basic tenets of a recognized religious sect.
Removed from the table and rereferred to House Appropriations Committee, 3/31/2008
HB 1096 RE: Uniform Construction Code Review Advisory Council (By Rep. Ron Buxton, et al)
Amends the PA Construction Code Act to create the Uniform Construction Code Review Advisory Council. The Council would be charged with gathering information from municipal officers, building code officials, construction code officials, licensed design professionals, builders and property owners concerning issues with the Uniform Construction Code and evaluating this information in order to give recommendations to the Governor, Labor and Industry Committees in the Senate and House, the Secretary of Labor and Industry, President Pro Tempore of the Senate, Speaker of the House and the Code Development Councils of the International Code Council. The Council would also review new and amended provisions issued by the ICC to any of its codes and inform the department of any code provisions that should be excluded from the Uniform Construction Code by May 1 of the year of issuance of the latest triennial code issued by the ICC. The composition of the Council and meeting requirements are further provided for in the legislation.
Reported as amended from Senate Labor and Industry Committee, and read first time, 4/8/2009
Rereferred to Senate Appropriations Committee, 4/9/2008
HB 1589 RE: Capital Budget Project Itemization Act of 2007-2008
Provides for the capital budget for the fiscal year 2007-2008; itemizes public improvement projects, furniture and equipment projects, transportation assistance projects, redevelopment assistance capital projects, flood control projects, Keystone Recreation, Park and Conservation Fund projects, Environmental Stewardship Fund projects, Motor License Fund projects, State forestry bridge projects, Pennsylvania Fish and Boat Commission projects, Manufacturing Fund projects and federally funded projects to be constructed or acquired or assisted by the Department of General Services, the Department of Community and Economic Development, the Department of Conservation and Natural Resources, the Department of Environmental Protection, the Pennsylvania Fish and Boat Commission and the Department of Transportation, together with their estimated financial costs; authorizes the incurring of debt without the approval of the electors for the purpose of financing the projects to be constructed, acquired or assisted by the Department of General Services, the Department of Community and Economic Development, the Department of Conservation and Natural Resources, the Department of Environmental Protection, the Pennsylvania Fish and Boat Commission or the Department of Transportation; states the estimated useful life of the projects; provides an exemption; provides for limitation on certain capital projects, for special provisions for certain redevelopment assistance capital projects and for preemption of local ordinances for Department of Corrections projects; and makes appropriations.
Passed Senate, 4/2/2008 (47-2)
Received as amended in House and rereferred House Rules Committee, 4/2/2008
HB 2005 RE: Small Group Health Benefit Plans (By Rep. Anthony DeLuca, et al)
Amends the Insurance Company Law adding an article providing for small group health benefits, which would apply to all small group health benefit plans and individual health benefit plans issued, made effective, delivered or renewed in this commonwealth after the effective date. Insurers would be required to establish community rates for plans and file the rates with the department. Risk adjustment factors would be applied consistently with respect to all plans and an insurer may not charge a rate that is more than 33% above or below the community rate, with certain adjustments. The bill provides for additional rate review by the department. A standard plan that meets certain criteria is required and the bill provides for optional additional coverage.
Passed House, 4/1/2008 (131-72)
Received in the Senate and referred to Senate Banking and Insurance Committee, 4/4/2008
HB 2186 RE: School Construction Costs (by Rep. Bev Mackereth, et al)
Amends the Public School Code further providing for approved reimbursable rental for certain leases and approved reimbursable sinking fund charges on indebtedness by adding that for new school buildings or for additions, alterations or improvements, the approved building construction cost would consider the cost of employing a construction manager to oversee construction.
Voted favorably from House Education Committee, 4/9/2008
HB 2380 RE: 2008-09 Budget (by Rep. Dwight Evans, et al)
This is the budget bill providing for expenses of the Executive, Legislative and Judicial Departments, the public debt, for the public schools for the fiscal year July 1, 2008, to June 30, 2009.
Removed from the table, and referred to House Appropriations Committee, 3/31/2008
H Res. 694 RE: Pennsylvania One Call System Month (by Rep. Joe Preston, et al)
A Resolution designating the month of May 2008 as "Pennsylvania One Call System Month."
Introduced as non-controversial resolution, 4/7/2008
Adopted 4/8/2008 (203-0)
SB 9 RE: Proof of Citizenship for Receipt of Public Benefits Act (by Sen. Joe Scarnati, et al)
Requires anyone who is at least 18 years of age and applies for public benefits to provide one of a specified list of identifications and execute an affidavit stating that the person is a U.S. citizen or legal permanent resident or is otherwise lawfully present in the U.S. pursuant to Federal law. The agency receiving this affidavit would have to keep it on file. Agencies that administer public benefits have to verify, through the SAVE program that each applicant who has executed an affidavit is an alien legally present in the U.S. Penalties are further provided for in the bill.
Reported as amended from Senate Appropriations Committee, 3/31/2008
Amended on Senate floor, 4/7/2008
Amended on Senate floor, and read second time, 4/8/2008
Read third time, and Passed Senate, 4/9/2008 (39-10)
Referred to House State Government Committee, 4/15/2008
S Res. 263 RE: Permit Fees Study (by Sen. Mike Waugh, et al)
A Resolution directing the Legislative Budget and Finance Committee to conduct a study relating to the funds collected from the fee from construction or building permits and to report its findings to the General Assembly by June 30, 2008.
Reported as amended from Senate Labor and Industry Committee, 4/8/2008
Amended on Senate Floor, 4/28/2008
Adopted 4/29/2008 (49-0)
Transmitted as directed 4/30/2008
New Bills Introduced
HB 2400 RE: Employee Misclassification Prevention Act (By Rep. Bryan Lentz, et al)
States that services performed by an individual for wages would be deemed to be employment and the individual would be considered an employee of the party that pays the wages. The bill provides for exceptions. An employer or an officer or agent of the employer that fails to properly classify an individual as an employee or fails to pay benefits or other contributions required by law would be subject to penalties, remedies or actions. The bill provides for enforcement and criminal penalties. Any sum collected as a penalty would be applied toward enforcement and administration costs of the Department of Labor and Industry.
Referred to House Labor Relations Committee, 4/3/2008
House Labor Relations Committee Voting Meeting set for 10:00 a.m., Room 60, East Wing, 5/6/2008
HB 2469 RE: One Call System (by Rep. Bud George, et al)
Amends Underground Line Protection Law providing it would be the duty of each facility owner to respond to all notices made through the One Call System to terminate, disable, or otherwise suspend any line or facility and to develop and maintain a protocol for complying with One Call System notices to terminate, disable or otherwise suspend any line or facility. Further provides each owner must compile and submit an annual report to the One Call System's board of directors detailing each owner's protocol for verifying its response to and compliance with all notices made through the System. Also provides this report would be submitted to the Public Utility Commission for all facility owners that fall under the PUC's jurisdiction.
Referred to House Consumer Affairs Committee, 4/15/2008
SB 1304 RE: Highmark Merger (by Sen. Don White, et al)
Amends the Insurance Company Law further providing for effect of act on existing laws and, in insurance holding companies, for definitions, for acquisition of control of or merger with domestic insurer and for acquisitions involving insurers not otherwise covered; providing for committee review; imposing a duty on the Insurance Department; establishing the Insurance Restructuring Restricted Receipt Account; providing for community health reinvestment; imposing duties on the Insurance Department; and establishing a restricted receipts account in the Tobacco Settlement Fund; and making related repeals. The bill extensively provides for mergers and consolidations and provides for legislative review of an application or statement submitted by a hospital plan corporation or professional health services plan corporation seeking the approval of a merger, consolidation or other acquisition of control of a hospital plan corporation or professional health services plan corporation.
Referred to Senate Banking and Insurance Committee, 4/9/2008
Upcoming Meetings of Interest
TUESDAY, 5/13/2008
House Consumer Affairs Committee
9:00 a.m., Room G-50, Irvis Office Building
To consider: HB 1821 RE: New Home Construction Consumer Protection Act (by Rep. Frank Andrews Shimkus)
Provides for the regulation of home construction contracts and for the registration of certain home builders; prohibits certain acts; provides for penalties; establishes the Home Builder Guaranty Fund; and provides for claims against the fund.
WEDNESDAY – 5/14/2008
Legislative Budget & Finance Committee
10 AM Room G-50, Irvis Building
Public meeting to discuss reports pursuant to:
S Res. 41 - Resolution directing the Legislative Budget and Finance Committee to investigate the Department of General Services strategic sourcing initiative for State and local government procurement; to accurately measure actual saving and costs of strategic sourcing; to review alternative plans examined by the department; to examine the department's development and implementation of strategic sourcing, especially with regard to the impact on Pennsylvania small business; and to analyze procurement spending data.
MONDAY - 5/19/2008
House Labor Relations
1 PM, Room G-50, Irvis Building
Public Hearing on HB 1776 - Fair Contracting Act
2008 HOUSE SPRING SESSION SCHEDULE
The House has announced the following session days for Spring 2008, subject to change
May 5, 6, 7, 12, 13, and 14
June 2, 3, 4, 9, 10, 11, 16, 17, 18, 23, 24, 25, 26, 27, 28, 29, and 30
2008 SENATE SPRING SESSION SCHEDULE
The Senate has announced the following session days for Spring 2008, subject to change
May 5, 6, 7, 12, 13, 14
June 2, 3, 4, 9, 10, 11, 16, 17, 18, 23, 24, 25, 26, 27, 30
Copies of all bills of interest are available from the PSPE office, or they can be accessed via the Internet at http://www.legis.state.pa.us/WU01/LI/BI/billroom.htm
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