For Immediate Release
January 23, 2007
Contact:
Joe Pittman
(724) 357-0151
cell (724) 541-0552
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Senator White Reintroducing Legislation

"Important bills" Left on the Table at the End of Last Session

Senator Don White is starting the 2007-08 Legislative Session by reintroducing three bills that were not enacted prior to the end of the 2005-06 Session. These bills include legislation to encourage mergers of volunteer fire departments; require confiscation of false ID cards; and, clarify tax laws regarding bank mergers.

"Unfortunately, these important bills were still on the table when the General Assembly wrapped up its session last year," Senator White said. "We are starting with a clean slate and there are many changes in place for the 2007-08 Session. I believe these bills deserve consideration and, hopefully, enactment into law."

Encouraging fire company partnerships

Senate Bill 96, Senator White's legislation to encourage regionalization and partnership efforts among private departments, would establish a program funded by a portion of the successful $100 million bond issue approved in 2002 for the purpose of improving the delivery of volunteer fire and emergency services within the Commonwealth. The bill, also introduced last session, received strong bi-partisan support with 22 co-sponsors.

"Emergency responders are having a difficult time making ends meet. Many are scrambling just to keep their stations open," Senator White said. "With vehicles costing hundreds of thousands of dollars and basic personal equipment, such as turnout coats and breathing apparatus, costing thousands more, it's hard for many companies to be prepared for all of the emergency situations they may face."

Senator White's legislation outlines a new program to provide private, non-profit volunteer fire companies/departments or EMS organizations funds for the following activities:

• The creation or formation of new or expanded organizations through merger, consolidation, regionalization, or other recognized partnerships.

• Education and/or informational programs designed for recruitment and/or retention of existing members.

• Other innovative approaches to partnerships that would be considered on a case-by-case basis and evaluated by the Department of Community and Economic Development.

Cracking down on false IDs

Senator White's legislation to crack down on the use of false ID cards, Senate Bill 95, would require any person who is authorized to sell alcoholic beverages to confiscate an identification card when they have a reasonable suspicion that it is fraudulent. Confiscated identification cards would then be forwarded to law enforcement. 

"I find it extremely disturbing that under Pennsylvania's current laws minors can flash a false ID and those at the front lines in the war against underage drinking can only turn them away," Senator White said. "Currently, liquor licensee and state store clerks have no legal authority to confiscate the identification card."

Clarifying bank merger laws

Also on Senator White's agenda is Senate Bill 97 which clarifies that the bank shares tax should not be imposed upon the goodwill generated under the purchase method of accounting for acquisitions.

In 2001, the Financial Accounting Standards Board (FASB) issued a ruling (FAS 141 Business Combinations) which made purchase accounting mandatory for business combinations after June 30, 2001.  As a result of the purchase accounting rules, taxable equity and goodwill are now taxable when banks are merged.

"This change is necessary as banks headquartered in Pennsylvania are taxed for 'goodwill' while other states with similar bank tax structures do not impose the tax on goodwill," Senator White said. "By taxing goodwill, Pennsylvania is encouraging banks to move headquarters out of state.  Moreover, banks who remain headquartered in Pennsylvania find this tax to be a discouragement for future mergers and acquisition."

With the strong presence of banking institutions in the 41st Senatorial District, Senator White believes it is vital to the regional economy to provide a positive environment for community banks to grow and prosper.