1Amending Titles 53 (Municipalities Generally) and 65 (Public
2Officers) of the Pennsylvania Consolidated Statutes, further
3providing for money of authority, for competition in award of
4contracts and for investigations by commission.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Sections 5612(a)(1) and 5614(e) of Title 53 of
8the Pennsylvania Consolidated Statutes are amended to read:

9§ 5612. Money of authority.

10* * *

11(a.1) Prohibition.--

12(1) Money of the authority may not be used for any
13grant, loan or other expenditure for any purpose other than a
14service or project directly related to the mission or purpose
15of the authority as set forth in the articles of
16incorporation or in the resolution or ordinance establishing
17the authority under section 5603 (relating to method of
18incorporation). Proceeds from borrowing under Subpart B of
 

1Part VII (relating to indebtedness and borrowing) may not be 
2used for a purpose unrelated to the project for which the 
3debt was incurred or placed in an account used by the 
4authority or another local government unit for an unrelated 
5purpose.

6* * *

7§ 5614. Competition in award of contracts.

8* * *

9(e) Conflict of interest.--No member of the authority or
10officer or employee of the authority may directly or indirectly
11be a party to or be interested in any contract or agreement with
12the authority if the contract or agreement establishes liability
13against or indebtedness of the authority. Any contract or
14agreement made in violation of this subsection is void, and no
15action may be maintained on the agreement against the authority.
16A violation under this subsection constitutes a violation of 65 
17Pa.C.S. § 1103(a) (relating to restricted activities) that is 
18enforceable <-by the State Ethics Commission, a district attorney 
19or the Office of Attorney General. <-under 65 Pa.C.S. Ch. 11 
20(relating to ethics standards and financial disclosure).

21* * *

22Section 2. Section 1108(a) and (c) of Title 65 are amended
23to read:

24§ 1108. Investigations by commission.

25(a) Preliminary inquiry.--Upon a complaint signed under
26penalty of perjury by any person or upon its own motion, the
27commission, through its executive director, shall conduct a
28preliminary inquiry into any alleged violation of this chapter
29or 53 Pa.C.S. § 5614(e) (relating to competition in award of 
30contracts). The commission shall keep information, records and

1proceedings relating to a preliminary inquiry confidential. The
2commission shall, however, have the authority to refer the case
3to law enforcement officials during a preliminary inquiry or
4anytime thereafter without providing notice to the subject of
5the inquiry. The commission shall complete its preliminary
6inquiry within 60 days of its initiation.

7* * *

8(c) Initiation of investigation.--If a preliminary inquiry
9establishes reason to believe that this chapter or 53 Pa.C.S. § 
105614(e) has been violated, the commission may, through its
11executive director, initiate an investigation to determine if
12there has been a violation. The commission shall keep
13information, records and proceedings relating to an
14investigation confidential until a final determination is made,
15except as otherwise provided in subsection (g). No investigation
16may be commenced until the person who is the subject of the
17investigation has been notified and provided a general statement
18of the alleged violation or violations of this chapter and other
19applicable statutes with respect to such investigation. Service
20of notice is complete upon mailing which shall be by certified
21or registered mail. The commission shall notify the complainant
22within 72 hours of the commencement of an investigation, and,
23thereafter, the commission shall advise the complainant and the
24person who is the subject of the investigation of the status of
25the investigation at least every 90 days until the investigation
26is terminated. The commission shall, within 180 days of the
27initiation of an investigation, either terminate the
28investigation pursuant to subsection (d) or issue a findings
29report pursuant to subsection (e). Upon a showing by the
30executive director of the need for extension of this period, the

1commission may extend an investigation for up to two 90-day
2periods, provided that each 90-day extension shall be approved
3by a majority vote of members present. In no event shall a
4findings report be issued later than 360 days after initiation
5of an investigation.

6* * *

7Section 3. This act shall take effect in 60 days.