PRINTER'S NO. 425
No. 382 Session of 1975
INTRODUCED BY A. K. HUTCHINSON, FEBRUARY 11, 1975
REFERRED TO COMMITTEE ON APPROPRIATIONS, FEBRUARY 11, 1975
AN ACT
1 Amending the act of April 9, 1929 (P.L.343, No.176), entitled
2 "An act relating to the finances of the State government;
3 providing for the settlement, assessment, collection, and
4 lien of taxes, bonus, and all other accounts due the
5 Commonwealth, the collection and recovery of fees and other
6 money or property due or belonging to the Commonwealth, or
7 any agency thereof, including escheated property and the
8 proceeds of its sale, the custody and disbursement or other
9 disposition of funds and securities belonging to or in the
10 possession of the Commonwealth, and the settlement of claims
11 against the Commonwealth, the resettlement of accounts and
12 appeals to the courts, refunds of moneys erroneously paid to
13 the Commonwealth, auditing the accounts of the Commonwealth
14 and all agencies thereof, of all public officers collecting
15 moneys payable to the Commonwealth, or any agency thereof,
16 and all receipts of appropriations from the Commonwealth and
17 imposing penalties; affecting every department, board,
18 commission, and officer of the State government, every
19 political subdivision of the State, and certain officers of
20 such subdivisions, every person, association, and corporation
21 required to pay, assess, or collect taxes, or to make returns
22 or reports under the laws imposing taxes for State purposes,
23 or to pay license fees or other moneys to the Commonwealth,
24 or any agency thereof, every State depository and every
25 debtor or creditor of the Commonwealth," further providing
26 for post-audits of agencies receiving State aid and
27 authorizing commencement of certain legal proceedings by the
28 Department of the Auditor General.
29 The General Assembly of the Commonwealth of Pennsylvania
30 hereby enacts as follows:
31 Section 1. Section 403, act of April 9, 1929 (P.L.343,
1 No.176), known as "The Fiscal Code," is amended to read:
2 Section 403. [Audits] Post-Audits of Agencies Receiving
3 State Aid.--The Department of the Auditor General shall have the
4 power, and its duty shall be, to [audit] make post-audits of the
5 accounts and records of every person, association, corporation,
6 and public agency, receiving an appropriation of money, payable
7 out of any fund in the State Treasury, or entitled to receive
8 any portion of any State tax for any purpose whatsoever, as far
9 as may be necessary to satisfy the department that the money
10 received was expended or is being expended for no purpose other
11 than that for which it was paid. Copies of all such audits shall
12 be furnished to the Governor.
13 If at any time the department shall find that any money
14 received by any person, association, corporation, or public
15 agency, has been expended for any purpose other than that for
16 which it was paid, it shall forthwith notify the Governor, and
17 the State Treasurer and shall direct the State Treasurer to
18 decline to approve any further requisition for the payment of
19 any appropriation, or any further portion of any State tax, to
20 such person, association, corporation or public agency, until an
21 amount equal to that improperly expended shall have been
22 expended for the purpose for which the money improperly expended
23 was received from the State Treasury. In proper cases, the
24 Department of the Auditor General may, with the approval of the
25 Attorney General, commence any criminal prosecution or civil
26 proceeding necessary to enforce the provisions of this section.
27 Section 2. The act is amended by adding a section to read:
28 Section 409. Commencement of Legal Proceedings.--Whenever in
29 the course of its duties the Department of the Auditor General
30 uncovers conduct which justifies timely criminal prosecution or
19750H0382B0425 - 2 -
1 a civil proceeding to enforce compliance with law, it may with
2 the approval of the Attorney General commence such proceeding in
3 any court of the Commonwealth having jurisdiction.
4 Section 3. Subsection (b) of section 1406 of the act is
5 amended to read:
6 Section 1406. Action to Recover Transfer Inheritance Taxes
7 and Other Debts Due or Property Escheating to the
8 Commonwealth.--* * *
9 (b) The Department of Justice, at its discretion, or the
10 Department of the Auditor General with the approval of the
11 Department of Justice, acting for and on behalf of the
12 Department of Revenue, shall have authority to cause to be
13 commenced, in the name of the Commonwealth, in any court of the
14 Commonwealth having jurisdiction, any appropriate suit at law or
15 in equity, by action of assumpsit or otherwise, for any money or
16 taxes due the Commonwealth, or property belonging to or liable
17 to escheat to the same, and a remedy by means of such suit is
18 hereby provided, whether it be now authorized by law or not, and
19 any action at law or in equity, both by bill in the nature of a
20 bill of discovery in equity, or otherwise, which may be
21 necessary for the ascertainment of the fact as to whether such
22 money, taxes, or property exists, and are due the Commonwealth,
23 whether the defendant or defendants therein have or have not
24 made any or all reports thereof required by law.
25 * * *
L30L53JLW/19750H0382B0425 - 3 -