Set of bills targets economy
State lawmakers who represent Butler County have joined with other Republicans in the state House of Representatives to back a set of bills they believe will attract new business, foster jobs and boost the economy.
The legislators on Monday unveiled the redux Keystone Manufacturing Initiative - a package of tax breaks and regulatory relief for businesses first proposed last year.
The latest KMI version is improved from the 2004 proposal, said state Rep. Scott Huthinson, R-64th, whose district includes a portion of northeast Butler County.
He said the 16-bill package addresses a half dozen economic issues, including business tax reform, health care, tort reform, worker's compensation unemployment compensation and regulatory reform.
"I see the KMI as a means to stop the job 'bleeding' we have been experiencing," he said.
Hutchinson authored one of the bills. His measure would reform the state's unemployment compensation system.
Under his bill, the designated unemployment compensation referee could dismiss a case without hearing testimony or evidence if the appellant fails to appear for the hearing.
Freshman state Rep. Brian Ellis, R-11th, whose district includes Butler and Butler Township, plans to push the KMI plan, just as he did during last year's campaign.
"Pennsylvania is falling behind in terms of job creation and employment opportunities," he said. "This plan helps enable our businesses to thrive and will help Pennsylvania become a more attractive option to businesses looking to locate here by providing a better business tax structure."
Among the bills, several co-sponsored by Ellis call for continued reduction of the corporate net income tax and phasing out the corporate stock and franchise tax.
The plan also would make interest and withdrawals from the new health savings accounts free of state income taxes. The same accounts are already exempt from federal taxes.
Additionally, the KMI would provide a tax credit to small businesses that offer employee health insurance benefits through health savings accounts plans and contribute to the employees' accounts.
Other bills focused on tort reform would protect product sellers against liabilities from damages unless the plaintiff shows specific evidence regarding the seller's actions, and would protect manufacturers from being sued unnecessarily for products that exceed their functional use and that result in injury.
Another bill would require state agencies to consider any negative impact on small businesses before imposing regulatory mandates.
That same bill was approved last year by the House and Senate, but it was later vetoed by Gov. Ed Rendell.
State Rep. Mike Turzai, a North Hills Republican serving the 28th District, called the KMI vital to "ensuring the state's long-term economic viability."
Turzai authored one of the bills that would reform the state's worker's compensation system.
His measure would amend the provision that allows for a claim of total disability only to be appealed in pursuit of partial disability within 90 days following the first 104 weeks of total disability. It also seeks to allow for such an appeal at any point beyond the first 104-weeks.
A number of measures in last year's 10-bill KMI package were passed in the House but languished in the Senate.
Backing this year's plan are a number of business associations, including the National Federation of Independent Business, the Pennsylvania Chamber of Business and Industry, Pennsylvania Manufacturer's Association and the Pennsylvania Business Roundtable.