PRINTER'S NO. 615
No. 586 Session of 1981
INTRODUCED BY LEVI, DeMEDIO, A. C. FOSTER, JR. AND FRYER,
FEBRUARY 17, 1981
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 17, 1981
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of 'Authorities' for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," further providing for the investment of Authority
15 moneys.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. The act of May 2, 1945 (P.L.382, No.164), known
19 as the "Municipality Authorities Act of 1945," is amended by
20 adding a section to read:
21 Section 7.1. Investment of Authority Funds.--A. The board
22 shall have the power to:
23 (a) make investment of Authority sinking funds in the manner
24 provided for local government units by the act of July 12, 1972
1 (P.L.781, No.185), known as the "Local Government Unit Debt
2 Act";
3 (b) make investment of moneys in the general fund and in
4 special funds of the Authority other than the sinking funds as
5 authorized by this section; and
6 (c) liquidate any such investment, in whole or in part, by
7 disposing of securities or withdrawing funds on deposit. Any
8 action taken to make or to liquidate any investment shall be
9 made by the officers designated by action of the board.
10 B. The board shall invest Authority funds consistent with
11 sound business practice.
12 C. The board shall provide for an investment program subject
13 to restrictions contained in this act and in any other
14 applicable statute and any rules and regulations adopted by the
15 board.
16 D. Authorized types of investments for Authority funds shall
17 be:
18 (a) United States Treasury bills.
19 (b) Short-term obligations of the United States Government
20 or its agencies or instrumentalities.
21 (c) Deposits in savings accounts or time deposits or share
22 accounts of institutions insured by the Federal Deposit
23 Insurance Corporation or the Federal Savings and Loan Insurance
24 Corporation or the National Credit Union Share Insurance Fund to
25 the extent that such accounts are so insured, and, for any
26 amounts above the insured maximum, provided that approved
27 collateral as provided by law therefore shall be pledged by the
28 depository.
29 (d) Obligations of the United States of America or any of
30 its agencies or instrumentalities backed by the full faith and
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1 credit of the United States of America, the Commonwealth of
2 Pennsylvania or any of its agencies or instrumentalities backed
3 by the full faith and credit of the Commonwealth, or of any
4 political subdivision of the Commonwealth of Pennsylvania or any
5 of its agencies or instrumentalities backed by the full faith
6 and credit of the political subdivision.
7 (e) Shares of an investment company registered under the
8 Investment Company Act of 1940, whose shares are registered
9 under the Securities Act of 1933, provided that the only
10 investments of that company are in the authorized investments
11 for Authority funds listed in clauses (a) through (d).
12 E. In making investments of Authority funds, the board shall
13 have authority:
14 (a) To permit assets pledged as collateral under subsection
15 D.(c), to be pooled in accordance with the act of August 6, 1971
16 (P.L.281, No.72), entitled "An act standardizing the procedures
17 for pledges of assets to secure deposits of public funds with
18 banking institutions pursuant to other laws; establishing a
19 standard rule for the types, amounts and valuations of assets
20 eligible to be used as collateral for deposits of public funds;
21 permitting assets to be pledged against deposits on a pooled
22 basis; and authorizing the appointment of custodians to act as
23 pledgees of assets."
24 (b) To combine moneys from more than one fund under
25 Authority control for the purchase of a single investment,
26 provided that lack of the funds combined for the purpose shall
27 be accounted for separately in all respects and that earnings
28 from the investment are separately and individually computed and
29 recorded, and credited to the accounts from which the investment
30 was purchased.
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1 (c) To join with one or more other political subdivisions
2 and municipal authorities in accordance with the act of July 12,
3 1972 (P.L.762, No.180), referred to as the Intergovernmental
4 Cooperation Law, in the purchase of a single investment,
5 provided that the requirements of clause (b) on separate
6 accounting of individual funds and separate computation,
7 recording and crediting of the earnings therefrom are followed.
8 Section 2. Section 8 of the act, amended July 16, 1975
9 (P.L.56, No.34), is amended to read:
10 Section 8. Moneys of the Authority.--A. All moneys of any
11 Authority, from whatever source derived, shall be paid to the
12 treasurer of the Authority. [Said moneys shall be deposited in
13 the first instance by the treasurer in one or more banks or bank
14 and trust companies in one or more special accounts or under
15 savings contracts in savings associations in one or more special
16 accounts, and each of such special accounts to the extent the
17 same is not insured shall be continuously secured by a pledge of
18 direct obligations of the United States of America, of the
19 Commonwealth or of the municipality or municipalities creating
20 the Authority, having an aggregate market value, exclusive of
21 accrued interest, at all times at least equal to the balance on
22 deposit in such account. Such securities shall either be
23 deposited with the treasurer, or be held by a trustee or agent
24 satisfactory to the Authority. All banks, bank and trust
25 companies and savings associations are authorized to give such
26 security for such deposits. The moneys in said accounts shall be
27 paid out on the warrant or other order of the chairman of the
28 Authority, or of such other person or persons as the Authority
29 may authorize to execute such warrants or orders.]
30 B. Every Authority whose fiscal year ends December 31, shall
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1 file on or before July 1 an annual report of its fiscal affairs
2 covering the preceding calendar year with the Department of
3 Community Affairs and with the municipality or municipalities
4 creating the Authority on forms prepared and distributed by the
5 Department of Community Affairs; Authorities whose fiscal year
6 does not end on December 31, shall file the report within ninety
7 days after the end of their fiscal year. Every Authority shall
8 have its books, accounts and records audited, annually, by a
9 certified public accountant, and a copy of his audit report
10 shall be filed in the same manner and within the same time
11 period as the aforesaid annual report. A concise financial
12 statement shall be published annually, at least once in a
13 newspaper of general circulation in the municipality where the
14 principal office of the Authority is located. If such
15 publication is not made by the Authority, the municipality or
16 municipalities shall publish such statement at the expense of
17 the Authority. If the Authority fails to make such an audit,
18 then the controller, auditors or accountant designated by the
19 municipality or municipalities, are hereby authorized and
20 empowered from time to time to examine at the expense of the
21 Authority the accounts and books of the Authority, including its
22 receipts, disbursements, contracts, leases, sinking funds,
23 investments, and any other matters relating to its finances,
24 operation and affairs.
25 C. The Attorney General of the Commonwealth of Pennsylvania
26 shall have the right to examine the books, accounts and records
27 of any Authority.
28 Section 3. This act shall take effect in 60 days.
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