FOR IMMEDIATE RELEASE
March 6, 2003
Contact:  Erin K. Kelly
(717) 846-2828
ekelly@pasen.gov
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Active Week for Waugh Legislation

Judiciary Committee Reports Probate Code Bill, Waugh Introduces Four Other Bills

HARRISBURG – The Senate Judiciary Committee reported Sen. Mike Waugh’s (R-York) legislation changing the classification and order of payments of claims against a decedent’s estate. Waugh has also introduced four other pieces of legislation including one new bill that would amend PA’s home inspection laws.

SB 304 would amend the Probate Code, which currently establishes an order of payment for debts but does not assign a priority for debts owed to the Commonwealth and municipalities. Some states rank such debts as high as second; most prioritize them between third and sixth. Waugh’s legislation would rank them sixth.

Waugh’s newest bill clarifies that licensed architects and engineers may continue performing home inspections, and a homebuyer can rely on those individuals’ inspection reports. Current law allows architects and engineers to conduct inspections, but the section dealing with homebuyer reliance on inspection reports is confusing. Many homebuyers are being told that reports prepared by such design professionals are not valid in negotiations, should the inspection turn up deficiencies.

Waugh has also reintroduced legislation to update the judicial oath taken by witnesses before giving testimony in court proceedings. The language of the oath is rooted in a 1718 colonial law and proves difficult, especially for younger witnesses. Waugh’s legislation would adopt an oath similar to other jurisdictions in the nation, with the court having the discretion to administer an alternative oath provided it will “awaken a witness’s conscience and impress the witness’s mind with the duty to tell the truth in his/her testimony.”

Additionally, Waugh has reintroduced legislation, which would eliminate the requirement to file a PA income tax return for individuals and couples with income at the poverty level and qualifying them for complete tax forgiveness under state law. The bill is modeled after federal law, which does not require the filing of income tax returns by individuals and couples with very low incomes.

Finally, Waugh reintroduced legislation to amend “The Optional Occupation Tax Elimination Act.” This law, enacted in 2001, allows school districts to abandon the Occupation Assessment Tax (OT) and opt for an increased Earned Income Tax (EIT). Waugh’s bill remedies a problem that occurs in the first year of implementation due to the EIT being assessed from January to December and the OT being assessed from July to June. Tax collectors have to collect the EIT at one rate for income accrued prior to July 1, 2002, and at another rate from July 1, until the end of the year.

To remedy the situation Waugh’s legislation provides for a “blended tax rate,” using a monthly weighted average of the rates applicable during the taxable year, for use in the first year of implementation.

Waugh’s home inspection bill awaits further Senate action, while the four newly introduced bills await committee assignments.