Pa. House committee looks at legal notice rules
May 15, 2009 Government transparency | Public notice law
By MARK SCOLFORO
Associated Press Writer
HARRISBURG, Pa. (AP) — Pennsylvania's paid-circulation newspapers argued Thursday against altering the rules for government-funded legal notices, while municipal organizations and "shoppers" that compete with the papers told a legislative committee the change would save tax dollars.
The House Judiciary Committee hearing addressed one of several bills pending in the Legislature that would loosen the requirement that such ads must be placed in paid-circulation newspapers.
Representatives of the Pennsylvania Newspaper Association said the existing system works to spread information to the broad public, but others said it was inevitable that either ads will be put on the Internet or the market will be opened to shoppers, and what are known as community newspapers.
Pennsylvania School Boards Association lobbyist Tim Allwein noted a 2006 Penn State study said moving legal advertising to the Web would save the state's governmental bodies more than $20 million a year.
"We believe that community papers offer a cost-effective alternative to school districts that are already financially strapped and are looking for other methods to reach their constituents," Allwein said.
Rep. Glen Grell, R-Cumberland, said even the smallest municipalities in his suburban Harrisburg district spend thousands of dollars annually on legal ads.
"I think the taxpayers are entitled to some explanation why they're spending that much money and what they're getting for it," Grell said.
The proposals are being considered during a time of deep financial distress for many newspapers, and Judiciary Chairman Tom Caltagirone, D-Berks, said he worried about the possible implications of cuts to what has been a steady source of their income.
"It's a tremendous piece, I think, of their bottom line to keep them operating," Caltagirone said. "I would hate to see the newspapers in this state come to an end, because I don't think it serves the public interest."
The industry's falling circulation was a reason to support change, said Jim Haigh of the Mid-Atlantic Community Papers Association. Since 1976, Pennsylvania has lost 22 paid dailies and 153 paid weeklies, Haigh said.
"The standard consequence is legal advertisers paying more to notify smaller audiences than at any time in the modern history of our commonwealth," Haigh said.
Edward Troxell, government affairs director for the Pennsylvania State Association of Boroughs, said greater competition would be a good thing.
"We have to be realistic, and we have to understand that times are changing," Troxell said.
Moving legal ads around to different publications might make them harder to find, said William Andring, a Democratic lawyer for the Judiciary Committee. He said that would let municipal officials bury notice when it serves their needs.
"People are not going to know where to look," Andring said.
Martin Till, publisher of The Express-Times of Easton, said that if the free newspapers get legal advertising, they will proliferate. But readers often ignore or discard them, he said.
"Our company owns these types of publications, and they are not right for public notices," Till said.
As for putting notices online, most of the state's daily newspapers and some weeklies already do so on the site www.mypublicnotices.com, said Ralph Martin, chief executive of Trib Total Media in western Pennsylvania.
Martin said legal ads make up less than 7 percent of his company's total revenue.
Caltagirone said he believes that, if a bill gets to the floor, it will pass easily.
Legal notice bills:
© 2009 The Associated Press – Reprinted with permission. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Associated Press Writer
HARRISBURG, Pa. (AP) — Pennsylvania's paid-circulation newspapers argued Thursday against altering the rules for government-funded legal notices, while municipal organizations and "shoppers" that compete with the papers told a legislative committee the change would save tax dollars.
The House Judiciary Committee hearing addressed one of several bills pending in the Legislature that would loosen the requirement that such ads must be placed in paid-circulation newspapers.
Representatives of the Pennsylvania Newspaper Association said the existing system works to spread information to the broad public, but others said it was inevitable that either ads will be put on the Internet or the market will be opened to shoppers, and what are known as community newspapers.
Pennsylvania School Boards Association lobbyist Tim Allwein noted a 2006 Penn State study said moving legal advertising to the Web would save the state's governmental bodies more than $20 million a year.
"We believe that community papers offer a cost-effective alternative to school districts that are already financially strapped and are looking for other methods to reach their constituents," Allwein said.
Rep. Glen Grell, R-Cumberland, said even the smallest municipalities in his suburban Harrisburg district spend thousands of dollars annually on legal ads.
"I think the taxpayers are entitled to some explanation why they're spending that much money and what they're getting for it," Grell said.
The proposals are being considered during a time of deep financial distress for many newspapers, and Judiciary Chairman Tom Caltagirone, D-Berks, said he worried about the possible implications of cuts to what has been a steady source of their income.
"It's a tremendous piece, I think, of their bottom line to keep them operating," Caltagirone said. "I would hate to see the newspapers in this state come to an end, because I don't think it serves the public interest."
The industry's falling circulation was a reason to support change, said Jim Haigh of the Mid-Atlantic Community Papers Association. Since 1976, Pennsylvania has lost 22 paid dailies and 153 paid weeklies, Haigh said.
"The standard consequence is legal advertisers paying more to notify smaller audiences than at any time in the modern history of our commonwealth," Haigh said.
Edward Troxell, government affairs director for the Pennsylvania State Association of Boroughs, said greater competition would be a good thing.
"We have to be realistic, and we have to understand that times are changing," Troxell said.
Moving legal ads around to different publications might make them harder to find, said William Andring, a Democratic lawyer for the Judiciary Committee. He said that would let municipal officials bury notice when it serves their needs.
"People are not going to know where to look," Andring said.
Martin Till, publisher of The Express-Times of Easton, said that if the free newspapers get legal advertising, they will proliferate. But readers often ignore or discard them, he said.
"Our company owns these types of publications, and they are not right for public notices," Till said.
As for putting notices online, most of the state's daily newspapers and some weeklies already do so on the site www.mypublicnotices.com, said Ralph Martin, chief executive of Trib Total Media in western Pennsylvania.
Martin said legal ads make up less than 7 percent of his company's total revenue.
Caltagirone said he believes that, if a bill gets to the floor, it will pass easily.
Legal notice bills:
© 2009 The Associated Press – Reprinted with permission. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
