PRIOR PRINTER'S NO. 106 PRINTER'S NO. 493
No. 105 Session of 1981
INTRODUCED BY GALLEN, HOEFFEL, KUKOVICH, SWEET, WACHOB,
KLINGAMAN, COLAFELLA, DeMEDIO, BELARDI, HAYES, B. SMITH,
BOWSER, PETRARCA, WOGAN, BOYES, SIEMINSKI, DeWEESE, JACKSON,
MURPHY, MICHLOVIC, MANMILLER, GEORGE, PITTS, COWELL, MRKONIC,
CLYMER, KOLTER, LESCOVITZ, BROWN, DAWIDA, GREENWOOD, BLAUM,
TIGUE, COSLETT, TELEK, SNYDER, PETERSON, SAURMAN, SHOWERS,
MERRY, PICCOLA, FISCHER, LEVI, CIMINI, KENNEDY, WENGER,
KANUCK, DAVIES, JOHNSON, CUNNINGHAM, GEIST, GLADECK, POTT,
HEISER, SIRIANNI, ZWIKL, HONAMAN, ALDEN AND SERAFINI,
JANUARY 19, 1981
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
FEBRUARY 10, 1981
AN ACT
1 Requiring the termination of certain agencies of State
2 Government under certain circumstances, creating a Leadership
3 Committee and the Office of Legislative Auditor with certain
4 powers and duties.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the "Sunset Act."
9 Section 2. Definitions.
10 The following words and phrases when used in this act shall
11 have, unless the context clearly indicates otherwise, the
12 meanings given to them in this section:
13 "Agency." Any statutory authority, agency, board, bureau,
14 commission, committee, council, department, division, office or
1 any similar unit of State Government.
2 "Performance audit." A written report by the Legislative
3 Auditor evaluating the management and performance of an agency
4 based on the statistics on its operations and carried out in
5 accordance with the standards for performance and financial
6 compliance auditing developed by the United States General
7 Accounting Office. It shall determine whether the agency:
8 (1) Is conducting authorized activities or programs in a
9 manner consistent with accomplishing the objectives intended
10 by the General Assembly.
11 (2) Is conducting programs and activities and expending
12 funds made available in a faithful, efficient, economical and
13 effective manner.
14 This report shall include, but not be limited to, the criteria
15 listed in section 5(d).
16 Section 3. Leadership Committee.
17 There is hereby created a joint committee of the General
18 Assembly to be known as the Leadership Committee. The Leadership
19 Committee shall be composed of the Speaker of the House of
20 Representatives, the President pro tempore of the Senate and the
21 Majority and Minority Leaders of the House of Representatives
22 and the Senate. The Speaker of the House of Representatives
23 shall serve as the temporary chairman of the committee until
24 such time as the committee shall elect a chairman. Members of
25 the Leadership Committee may designate alternate members of
26 their respective chambers who shall have the same powers and
27 duties as regular members.
28 Section 4. Powers and duties of the Leadership Committee.
29 The committee shall have the power and its duty shall be:
30 (1) To direct and coordinate the implementation of the
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1 sunset review procedure.
2 (2) To assign the responsibility for the review and
3 evaluation of each agency scheduled for such review and
4 evaluation under the provisions of this act to an appropriate
5 standing committee of the Senate or the House of
6 Representatives or to appropriate standing committees of both
7 houses who shall operate jointly to review and evaluate the
8 agency, if such joint operation is authorized by the rules of
9 the House and Senate. The assignments for review and
10 evaluation shall be made in January of the year in which the
11 agency is scheduled to be terminated. If any committee which
12 has been assigned an agency for review and evaluation fails
13 to complete its duties within a reasonable period of time as
14 determined by the Leadership Committee, it shall be
15 discharged from further review or consideration of the
16 agency. The Leadership Committee shall then reassign the
17 agency to another committee for review and evaluation
18 pursuant to this act.
19 (3) To evaluate the qualifications of candidates for the
20 position of Legislative Auditor and hire a qualified person
21 for that position.
22 (4) To consider and approve the budget for the Office of
23 Legislative Auditor and recommend appropriations for that
24 office.
25 (5) If the Office of Legislative Auditor is not
26 operational in time to conduct the performance audit
27 necessary to review and evaluate agencies scheduled for
28 termination in 1983, the Leadership Committee shall utilize
29 and assign the staff of the Legislative Budget and Finance
30 Committee, for the purpose of conducting said performance
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1 audit, which duty shall be the priority of the Legislative
2 Budget and Finance Committee.
3 (6) To authorize, if necessary, a postponement of the
4 review or termination of an agency for a period not exceeding
5 one year.
6 Section 5. Evaluation and review.
7 (a) The standing committee designated by the Leadership
8 Committee shall develop a plan for the evaluation and review of
9 an agency in conjunction with the Legislative Auditor and
10 representatives of the agency being evaluated.
11 (b) The standing committee shall hold at least one public
12 hearing for the evaluation and review of an agency. At the
13 hearing, the highest ranking officer of the agency or an
14 individual appointed by him shall bear the burden to testify
15 concerning the need for continued existence of the agency. The
16 committee shall receive other testimony at the public hearing as
17 it shall deem appropriate.
18 (c) The standing committee shall elicit information in each
19 evaluation and review of an agency from the Office of the
20 Auditor General and the Offices of Budget and Administration as
21 to the financial efficiency of the agency being reviewed. The
22 committee may request and the subject agency shall provide such
23 information as the committee deems pertinent to its evaluation
24 and review.
25 (d) The standing committee shall make a determination in
26 each evaluation and review as to whether the agency shall be
27 continued, altered or terminated. The committee shall base its
28 determination on the following criteria:
29 (1) Would termination significantly harm or endanger the
30 public health, safety or welfare.
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1 (2) Is there overlap or duplication of effort by other
2 agencies that permit the termination of the agency.
3 (3) Is there a more economical way of accomplishing the
4 objectives of the agency.
5 (4) Is there a demonstrated need, based on service to
6 the public, for the continuing existence of the agency.
7 (5) Has the operation of the agency been in the public
8 interest.
9 (6) Has the agency encouraged public participation in
10 the making of its rules and decisions or whether HAS the <--
11 agency has permitted participation solely by the persons it <--
12 regulates.
13 (7) Is there an alternate, less restrictive method of
14 providing the same services to the public.
15 (8) Such other criteria as may be established by the
16 standing committees.
17 (e) Such standing committees shall draft a report concerning
18 each evaluation and review, stating in that report their
19 findings, their determination as to whether the agency should be
20 continued, altered or terminated AND the reasons for such a <--
21 determination and, TOGETHER WITH A DRAFT OF appropriate <--
22 legislation to implement the committees' recommendations. The
23 report shall be available for public inspection in the Office of
24 the Chief Clerk SECRETARY of the Senate and of the CHIEF CLERK <--
25 OF THE House of Representatives. The report shall be made to the
26 General Assembly on or before the first session day of September
27 of the year in which the agency in question is scheduled for
28 termination. ONCE THE REPORT IS RECEIVED BY EACH HOUSE, THE <--
29 APPROPRIATE LEGISLATION SHALL BE INTRODUCED AND REFERRED TO A
30 STANDING COMMITTEE, IN KEEPING WITH EACH HOUSE'S RULES AND SHALL
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1 BE ACTED ON ACCORDINGLY.
2 (f) On or before March 1 of the year in which the agency in
3 question is scheduled for termination, the standing committees
4 designated by the Leadership Committee as responsible for the
5 evaluation and review of the agency shall receive:
6 (1) from the Legislative Auditor, a performance audit;
7 and
8 (2) from the Legislative Reference Bureau, a report
9 outlining all legislation, then in effect, pertaining to the
10 creation, operation, duties, powers and funding of the
11 agency.
12 Section 6. Termination of agencies.
13 (a) The following agencies together with their corresponding
14 statutory functions and duties shall terminate all activities
15 and shall go out of existence on December 31, 1983:
16 The Bicentennial Commission of Pennsylvania.
17 The State Board of Examiners of Public Accountants.
18 The State Farm Products Show Commission.
19 The State Board of Examiners of Architects.
20 The Milk Marketing Board.
21 The State Board of Auctioneer Examiners.
22 The Pennsylvania Labor Relations Board.
23 The State Board of Barber Examiners.
24 The Pennsylvania Securities Commission.
25 The State Board of Cosmetology.
26 The State Board of Funeral Directors.
27 The State Real Estate Commission.
28 The State Registration Board for Professional Engineers.
29 The State Board of Landscape Architects.
30 The State Board of Motor Vehicle Manufacturers, Dealers and
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1 Salesmen.
2 The State Board of Private Trade Schools.
3 The State Workmen's Insurance Board.
4 The Citizens Advisory Council (DER).
5 The Environmental Quality Board.
6 The Banking Board.
7 The Savings Association Board.
8 The Hazardous Substance Transportation Board.
9 The Crime Victim's Compensation Board.
10 The Pennsylvania Commission on Crime and Delinquency.
11 (b) The following agencies together with their corresponding
12 statutory functions and duties shall terminate all activities
13 and shall go out of existence on December 31, 1985:
14 The Pennsylvania Liquor Control Board.
15 The State Board of Chiropractic Examiners.
16 The Pennsylvania Public Utility Commission.
17 The State Board of Medical Education and Licensure.
18 The Governor's Council on Drug and Alcohol Abuse.
19 The State Board of Nurse Examiners.
20 The Pennsylvania Drug, Device and Cosmetic Board.
21 The State Board of Examiners of Nursing Home Administrators.
22 The State Highway and Bridge Authority.
23 The State Board of Optometrical Examiners.
24 The State Transportation Commission.
25 The State Board of Osteopathic Medical Examiners.
26 The State Soil Conservation Commission.
27 The State Board of Pharmacy.
28 The State Board of Podiatry Examiners.
29 The Pennsylvania Board of Psychologist Examiners.
30 The Commission on Charitable Organizations.
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1 The State Board of Veterinary Medical Examiners.
2 The State Board of Public Welfare.
3 The State Board of Physical Therapy Examiners.
4 The Pennsylvania Housing Finance Agency.
5 The State Harness Racing Commission.
6 The State Horse Racing Commission.
7 The Pennsylvania Commission on Sentencing.
8 The Pennsylvania Board of Probation and Parole.
9 The Pennsylvania Crime Commission.
10 The Pennsylvania Human Relations Commission.
11 The State Dental Council and Examining Board.
12 (c) The following agencies together with their corresponding
13 statutory functions and duties shall terminate all activities
14 and shall go out of existence on December 31, 1987:
15 The State Board of Private Academic Schools.
16 The State Board of Private Business Schools.
17 The State Board of Private Correspondence Schools.
18 The State Board of Education.
19 The State Civil Service Commission.
20 The Board of State College and University Directors.
21 The Industrial Board.
22 The State Board for Certification of Sewage Treatment Plant
23 and Waterworks Operators.
24 The State Athletic Commission.
25 The State Board of Vocational Rehabilitation.
26 The Pennsylvania Industrial Development Authority.
27 Certification Board for Sewage Enforcement Officers.
28 The Pennsylvania Minority Business Development Authority.
29 The Professional Standards and Practices Commission.
30 The State Veterans Commission.
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1 The Pennsylvania Historical and Museum Commission.
2 The State Art Commission.
3 The State Planning Board.
4 The Pennsylvania Turnpike Commission.
5 The Pennsylvania Parkway Commission.
6 The Municipal Police Officer's Education and Training
7 Commission.
8 The Pennsylvania Emergency Management Agency.
9 The State Lottery Commission.
10 The Department of Aging.
11 (d) The Governor shall not utilize a reorganization plan,
12 executive order, rule or regulation or comparable authority to
13 evade the provisions of this act. Any programs, activities or
14 functions of any agency scheduled for termination, which are
15 transferred to another agency not scheduled for termination or
16 scheduled for termination at a later date, shall be subject to
17 sunset review at the date scheduled for the termination of the
18 transferor agency. Any programs, activities or function of any
19 agency scheduled for termination which are transferred to
20 another agency scheduled for termination at an earlier date,
21 shall be subject to sunset review at the date scheduled for
22 termination of the transferee agency. However, between the time
23 at which the Legislative Auditor submits his performance audit
24 to the standing committee and the standing committee makes its
25 recommendation to the General Assembly, the Governor shall not
26 utilize a reorganization plan, executive order, rule or
27 regulation or comparable authority to transfer any programs,
28 activities or functions of an agency being evaluated.
29 (e) The termination of any agency under this act shall serve
30 to terminate any advisory agency, whether created by statute or
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1 administrative action, established for the primary purpose of
2 advising or assisting the terminated agency.
3 (f) Agencies terminated shall be given until June 30 of the
4 year following the one in which they are terminated to wind up
5 their affairs. During that period, the Governor may petition the
6 General Assembly for a review of the termination but the agency
7 shall be terminated unless the General Assembly passes a law to
8 the contrary.
9 (g) The terms of office of appointees of an agency
10 terminated under this act shall end on June 30 of the year
11 following termination.
12 Section 7. Reestablishment OR CONTINUATION of agencies. <--
13 (A) Any agency scheduled for termination under this act, may <--
14 be reestablished AS PROVIDED IN THIS SUBSECTION OR CONTINUED AS <--
15 PROVIDED IN SUBSECTION (B) by the General Assembly. by <--
16 legislation. Each reestablishment shall be:
17 (1) for a period of six years unless otherwise specified
18 in the legislation and again be subject to evaluation, review
19 and termination as provided in this act; and
20 (2) BY LEGISLATION in a separate bill, in which no more <--
21 than one agency shall be reestablished and such agency shall
22 be mentioned in the title of the bill.
23 (B) UNLESS LEGISLATION IS ENACTED PRIOR TO NOVEMBER 1, <--
24 REESTABLISHING AN AGENCY AS PROVIDED IN SUBSECTION (A), THE
25 PRESIDING OFFICER OF EACH HOUSE SHALL CAUSE TO BE PLACED ON
26 THEIR RESPECTIVE CALENDARS FOR THE FIRST LEGISLATIVE DAY IN
27 NOVEMBER, THE QUESTION, IN THE FORM OF A RESOLUTION, OF WHETHER
28 AN AGENCY SCHEDULED FOR TERMINATION ON DECEMBER 31 OF THAT YEAR
29 SHALL BE CONTINUED. IF A MAJORITY OF THE MEMBERS ELECTED TO EACH
30 HOUSE APPROVE SUCH A RESOLUTION PRIOR TO THE SCHEDULED
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1 TERMINATION DATE OF DECEMBER 31, THE AGENCY SHALL BE CONTINUED
2 UNTIL THE NEXT REVIEW AND TERMINATION CYCLE SCHEDULED FOR SAID
3 AGENCY.
4 (C) ANY STATUTE WHICH TERMINATES OR REENACTS AN AGENCY SHALL
5 CONTROL OVER ANY PROCEDURE PRESCRIBED BY THIS ACT FOR THE
6 CONTINUATION OR TERMINATION OF AN AGENCY. NO STATUTE SHALL BE
7 DEEMED TO CONTINUE AN AGENCY BEYOND A TERMINATION DATE
8 ESTABLISHED FOR SAID AGENCY PURSUANT TO THIS ACT, UNLESS THE
9 STATUTE EXPRESSLY REENACTS THE AGENCY IN ITS PRESENT OR ALTERED
10 STATE.
11 Section 8. Newly created agencies.
12 A statutory agency created after January 1, 1981 shall be
13 scheduled for termination at the conclusion of the sixth year
14 following its creation unless otherwise specified by the General
15 Assembly at its creation.
16 Section 9. Termination procedures.
17 (a) Records and property of an agency shall be transferred
18 to the department of which it was a part, or if it was an
19 independent agency, to the Department of General Services for
20 appropriate disposal of property and retention of records.
21 (b) All appropriations to and funds of the agency not spent
22 or encumbered shall lapse when the existence of the agency ends.
23 No agency, prior to the date in a fiscal year on which it is
24 scheduled to be terminated, shall expend in excess of 50% of any
25 general appropriation, Federal augmentation, appropriation or
26 similar appropriation made to the agency for said fiscal year,
27 except that the agency may utilize a portion of the unexpended
28 balance of said appropriations to conclude its affairs. THE <--
29 LEADERSHIP COMMITTEE SHALL HAVE THE ABILITY TO WAIVE THE
30 RESTRICTIONS ON EXPENDITURES SET FORTH IN THIS SECTION, UPON A
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1 SHOWING BY THE AGENCY OF EXCEPTIONAL CIRCUMSTANCES.
2 (c) The employment of all personnel of the terminated agency
3 shall be terminated; however, this shall not be construed to
4 prohibit the employees from applying for and being employed by
5 other agencies or departments to fill job vacancies.
6 (d) Employees of agencies terminated under this act, who
7 have civil service status or who are covered by union contracts
8 shall fill any existing vacancies within the administrative
9 branch of State Government in their grade and position. If there
10 are more employees than vacant positions at the time of
11 termination, then such terminated employees shall receive
12 employment in the first vacancies that shall thereafter exist in
13 their grade and position.
14 Section 10. Causes of action.
15 The provisions of this act shall not affect any liability
16 incurred or right accrued or vested or affect any suit pending
17 or to be instituted to enforce any right under the authority of
18 any act or part thereof repealed by this act.
19 Section 11. Establishment of the Office of Legislative
20 Auditor.
21 There is hereby created and established an Office of
22 Legislative Auditor, to serve the General Assembly. It is the
23 stated policy of the General Assembly to provide for the
24 impartial and independent auditing of the management and
25 performance of the State agencies by an impartial auditor who is
26 entirely independent of the State administration whose affairs
27 he is called upon to audit.
28 Section 12. Qualifications, selection process and term.
29 (a) The Legislative Auditor shall, at the time of his
30 appointment, have demonstrated technical competence and
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1 administrative ability. He shall be a certified public
2 accountant or a licensed public accountant and have at least
3 five years experience in a supervisory or management capacity in
4 public accounting; or have received a bachelor's degree from an
5 accredited institution of higher learning in accounting,
6 economics, public affairs and administration, business
7 administration or similar field of learning and had at least
8 five years of supervisory and management experience in program
9 and performance auditing in the public or private sector or have
10 equivalent experience as determined by the Leadership Committee.
11 (b) An advisory commission is hereby established to evaluate
12 and recommend candidates for the position of Legislative
13 Auditor. The advisory commission shall be composed of five
14 members, and shall include the Dean of the Graduate School of
15 Business Administration, University of Pittsburgh; Dean of the
16 Wharton School, University of Pennsylvania; the Director of the
17 Pennsylvania Economy League; and the President of the
18 Pennsylvania Institute of Certified Public Accountants and a
19 member appointed by the Leadership Committee. Members of the
20 advisory commission shall not be compensated but shall be
21 reimbursed for their reasonable and necessary expenses while
22 engaged in the business of the advisory commission.
23 (c) The advisory commission shall review, evaluate and
24 submit a list of recommended candidates for the position of
25 Legislative Auditor in accordance with the qualifications listed
26 above. This list shall be prepared and submitted within 45 days
27 after a vacancy in the position of Legislative Auditor occurs.
28 (d) The Leadership Committee shall select the Legislative
29 Auditor from among the list of recommended candidates submitted
30 by the advisory commission within 30 days. In the event the
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1 Leadership Committee cannot agree upon the selection of a
2 Legislative Auditor within 30 days following the expiration of <--
3 the term of a preceding auditor, OF A VACANCY IN THE POSITION OF <--
4 LEGISLATIVE AUDITOR, the auditor shall be chosen by lots cast
5 between the two candidates receiving the greatest number of
6 votes on the last ballot taken prior to the deadline. Lots shall
7 be cast before the Leadership Committee and the candidate to
8 whom the lot shall fall shall be appointed Legislative Auditor.
9 The compensation of the Legislative Auditor shall be fixed by
10 the Leadership Committee and shall not be diminished during his
11 term of office. Vacancies shall be filled for the remainder of
12 an unexpired term in the same manner as original appointments.
13 (e) The Legislative Auditor shall serve for a term of six
14 years following the date of his appointment and until a
15 successor has been appointed and shall be eligible for
16 reappointment.
17 (f) The Legislative Auditor may be removed from office by
18 concurrent resolution of the General Assembly, when in the
19 opinion of the General Assembly the Legislative Auditor is
20 permanently incapacitated or is guilty of malfeasance,
21 misfeasance, nonfeasance, or has been adjudged by a court of <--
22 law, guilty of any felony or conduct involving moral turpitude.
23 The Legislative Auditor shall be suspended by the Leadership
24 Committee from his duties whenever such charges as listed above
25 have been filed in a court of record prior to court action. The
26 Legislative Auditor shall be provided with retroactive pay and
27 full restoration of duties and responsibilities should these
28 charges be dismissed in a court of record.
29 (g) In order to preserve the independence and objectivity of
30 the audit function, the Legislative Auditor shall devote his
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1 full time and effort to audit examinations and reporting and
2 budgetary analysis. He may not serve in any capacity on an
3 administrative board, commission or agency of the Commonwealth
4 that, under the provisions of this act, he has the
5 responsibility to audit. He shall not have a material direct or
6 indirect financial or other economic interest in the transaction
7 of any Commonwealth agency. He shall not be responsible for the
8 collection of any money belonging to the Commonwealth or for the
9 handling or custody of any Commonwealth funds. Neither the
10 Legislative Auditor nor any member of his staff shall engage in
11 or be associated with any partisan political activity or hold
12 any public office.
13 (h) The Legislative Auditor shall neither conduct nor
14 supervise an audit of a program or activity for which he was
15 responsible or in which he participated personally, and he shall
16 neither conduct nor supervise an audit of any program or
17 activity of an entity within which he was employed for at least
18 two years after the termination of that employment and he shall
19 neither conduct nor supervise an audit of any entity, program or
20 activity with which he was or is associated or connected with in
21 any manner. In those cases where the Legislative Auditor is
22 unable to perform or supervise an audit pursuant to this
23 subsection the leadership committee shall assign the audit to
24 the Legislative Budget and Finance Committee.
25 (i) The Legislative Auditor shall appoint and fix the
26 compensation of assistant auditors and other staff, subject to
27 the approval of the leadership committee. These assistants shall
28 be subject to review six months after the new term of the
29 Legislative Auditor has begun.
30 (j) The Legislative Auditor shall not be eligible for
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1 appointment or election to any other public office during his
2 employment and two years thereafter.
3 Section 13. Access to records and witnesses.
4 The Legislative Auditor and his authorized representatives
5 shall, for the purpose of examination and audit authorized by
6 this act, have ready access to persons and may examine and copy
7 to the extent deemed necessary to its evaluation and review,
8 pertinent records, accounts, papers, reports, vouchers,
9 correspondence, books and other documentation of any
10 Commonwealth agency.
11 Section 14. Authority to administer oaths, subpoena witnesses
12 and records and take depositions.
13 For the purpose of this act, the Legislative Auditor, with
14 the concurrent resolution of both houses shall have the power to
15 compel the attendance of witnesses and the production of any
16 papers, books, accounts and documents to subpoena witnesses,
17 take testimony under oath; to cause the deposition of witnesses,
18 residing within or without the Commonwealth, to be taken in the
19 manner prescribed by law and to assemble records and documents,
20 by subpoena or otherwise, with the same power and authority as
21 courts of record and may apply to courts of record for the
22 enforcement of these powers.
23 Any person who willfully neglects or refuses to comply with
24 any subpoena issued in behalf of the Legislative Auditor, or
25 refuses to testify to any matters regarding which he may be
26 lawfully interrogated, shall be subject to the penalties
27 provided by the laws of the Commonwealth of Pennsylvania.
28 Section 15. General repeal.
29 All acts or parts of acts inconsistent with the provisions of
30 this act are repealed to the extent of the inconsistency.
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1 Section 16. Effective date.
2 This act shall take effect immediately.
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