Last legislative session, the Pennsylvania House of Representatives introduced H.B. 2664, which sought to add a new subsection to the Workers’ Compensation Act addressing post-traumatic stress disorders in certain first responders. That Bill never made it out of committee, but that’s not the end of the story. Continue Reading Proposed Changes to the Pennsylvania Workers’ Compensation Act for First Responders
The MSRB is finalizing some user-friendly enhancements to the Electronic Municipal Market Access (EMMA) website, the website designated by the US Securities and Exchange Commission as the official source for municipal securities data and disclosure documents. The enhancements follow new continuing disclosure rules that will increase the volume of information required to be disclosed on EMMA. The MSRB expects that the enhancements will make it easier for issuers and obligated persons to submit information, and for the public to access it. The enhancements should roll out for public use this summer. Continue Reading EMMA Gets a Makeover: Enhancements Coming in Summer 2019
Anticipating a vacancy in your manager position? Does your current or new manager need some training on a complex issue? Are you facing a difficult and time-consuming project that your current staff does not have capacity to complete? We can help.
We work with a number of municipalities, and one constant refrain we hear from supervisors, staff and solicitors is that there is a shortage of qualified managers out there. Several factors contribute to this situation. Let’s face facts, there are a number of baby boomers considering retirement. In many cases, there is no one on the “bench” in the township ready to step up to replace these folks. There are few opportunities to obtain the training necessary to become a well-rounded effective manager. Many municipal government staffs are just too small. Continue Reading Need Help with Your Municipal Manager Position?
Last week amendments to the SEC continuing disclosure rules for municipal bonds went into effect. Under the new rules, municipalities that are planning a public offering of municipal bonds must update their continuing disclosure agreements to include covenants to disclose each of the following:
- Incurrence of a financial obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the obligated person, any of which affect security holders, if material.
- Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the obligated person, any of which reflect financial difficulties.
If you aren’t up to speed yet on the new rules, don’t panic – we’ve been following the issues relating to the implementation of the new rules closely since their announcement in August 2018. For more information, please see our prior commentary, available here and here.
We will continue to monitor industry response to the new rules and will be providing additional updates throughout the year as issuers, underwriters and their professionals adjust to them. Stay tuned!
On February 12, 2019, Representative Tina Davis introduced a bill proposing to establish a new regulatory commission with oversight over municipal water and wastewater authorities. H.B. 494 would establish a Municipal Water and Wastewater Authority Oversight Commission (“Authority Commission”). Representative Davis previously sponsored H.B. 798, which would have amended the Public Utility Code to subject municipal water and wastewater authorities to regulation by the Pennsylvania Public Utility Commission (“PUC”). Introduced in 2017, H.B. 798 failed to move out of the Consumer Affairs Committee. Continue Reading New House Proposal Would Subject Municipal Water, Wastewater Authorities to Additional Oversight
“Oh, don’t go that way. You want to avoid the Beltway.” It’s a common chorus in many American cities. Harrisburg is no exception and backups on its Beltway encroach onto Front Street and other arterial and connector roads on a daily basis. In recent years, the issues have been exasperated as we continue to see populations trending from rural to urban locations while, at the same time, continue to experience aging and weakening transportation infrastructure. But plans to bring relief to Harrisburg’s Beltway have been in the works for 15 years. In 2003, the Pennsylvania Department of Transportation (“PennDOT”) prepared an I-83 Master Plan, the purpose of which was to identify, plan, and program future transportation improvement projects for the I-83 Capital Beltway. The Master Plan proposed numerous improvements to the Beltway to address: (1) worsening road conditions; (2) high-traffic volumes and congestion; and, (3) safety. Obviously, the Master Plan will affect municipalities and businesses alike. Continue Reading The I-83 Capital Beltway Project: PennDOT’s Right-of-Way Acquisition and Power of Eminent Domain
With the Pennsylvania General Assembly officially starting its new legislative session this January, now is a good time to take stock of the legislative proposals affecting municipalities that were approved by the Assembly and signed into law by Governor Wolf during the 2017-2018 session. In the last two years close to 250 bills were signed into law by the Governor; this article will examine 13 of them. Continue Reading A Look Back at the 2017-2018 Legislative Session
Republican Representative Garth Everett, in a cosponsorship memorandum posted on February 1st, announced plans to reintroduce a package of bills that would expand the ability of municipalities throughout Pennsylvania to assess stormwater management fees. These proposals, contained in former House Bills 913 through 916 (2017-2018 session), died in the Senate last term after being passed with bipartisan support by the House. Continue Reading Stormwater Fee Proposals Reintroduced in Pennsylvania General Assembly
The Internal Revenue Service celebrated New Year’s Eve this year by issuing two rule-making notices of interest to the tax-exempt bond community, on the topics of public approval of private activity bonds and reissuance.
The first notice contains final regulations on the public approval requirement of section 147(f) of the Internal Revenue Code, 26 U.S.C. §147(f). You can access a copy of the final regulations here.
The final regulations on section 147(f) make several significant modifications to the proposed regulations, which were published by the Service on September 28, 2017 (read our prior analysis of the 2017 proposed regulations here). Some of the key highlights of the final regulations are as follows:
- 7-Day Notice Period: The current regulations, at 26 C.F.R. §5f.103-2, require that the public notice be given at least 14 days before the date of the public hearing. The IRS had previously issued proposed regulations in 2008, shortening this requirement to 7 days, but went back to 14 days in the 2017 proposed regulations. The stated reason for this decision was a reference in the legislative history to a 14-day notice period. However, in response to comments to the 2017 proposed regulations, the IRS has determined to restore the 7-day notice period, as the statutory text makes no mention of a 14-day notice period.
- Website Notices: The current regulations require that the notice must be published in a newspaper or announced by radio or television broadcast. The 2017 proposed regulations introduced website notices, but required that the issuer offer to residents without access to the Internet an alternative method for obtaining the information contained in the website notice. The final regulations drop this “alternative notice” requirement. Therefore, a notice that is published solely through the governmental unit’s website will satisfy the public notice requirement of section 147(f). The notice must appear in an area of the government’s website that is used to inform residents about events affecting the residents.
- Deviations and Ability to Cure: The 2017 proposed regulations introduced the concept of insubstantial deviations, that is, deviations from the notice and public approval that are so minor as to not cause the notice and public approval to fail to meet the requirements of section 147(f). Additionally, for deviations that were substantial, the 2017 proposed regulations afforded issuers the opportunity to cure the resulting violation through a supplemental notice and hearing that met the requirements of the regulations. The final regulations largely implement these concepts as originally proposed.
- Effective Date and Retroactive Use: The final regulations are generally effective April 1, 2019. However, the IRS in response to comments it received agreed to afford issuers the option of retroactively applying the “deviation” provisions (including the ability to cure) to any bond issued pursuant to a public approval that occurred prior to April 1, 2019. This presents an excellent opportunity for issuers of bonds with faulty public approvals to reduce their audit risk.
The second New Year’s Eve notice from the IRS contains proposed regulations on the reissuance of tax-exempt bonds, particularly qualified tender bonds. You can access a copy of the proposed regulations here. The proposed regulations follow the guidance previously provided by the IRS in Notices 88-130 and 2008-41, related to qualified tender bonds. Each of those Notices will be rendered obsolete once the regulations are finalized.
The proposed regulations are not intended as a departure from previous guidance. Thus, the proposed regulations, like the Notices before them, provide that the existence or exercise of a qualified tender right of a qualified tender bond will not, in and of itself, result in a reissuance for tax purposes. And, the terms “qualified tender bond” and “qualified tender right” carry meanings substantially similar to the definitions that were ascribed to these terms in the Notices.
The IRS is requesting that any comments to the proposed regulations or requests for a public hearing in connection with them be delivered by March 1, 2019.
As we prepare to say goodbye to 2018 and welcome a new year, we thought we’d take a moment and revisit a few of our favorite stories from the last twelve months that we’ve followed on the McNees Public Sector Blog. Continue Reading A Look Back at 2018