PRINTER'S NO. 108
No. 108 Session of 1981
INTRODUCED BY HOLL, JANUARY 26, 1981
REFERRED TO STATE GOVERNMENT, JANUARY 26, 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
15 any similar unit of State Government.
16 "Performance audit." A written report by the legislative
17 auditor evaluating the management and performance of an agency
18 based on the statistics on its operations and carried out in
1 accordance with the standards for performance and financial
2 compliance auditing developed by the United States General
3 Accounting Office. It shall determine whether the agency:
4 (1) Is conducting authorized activities or programs in a
5 manner consistent with accomplishing the objectives intended
6 by the General Assembly.
7 (2) Is conducting programs and activities and expending
8 funds made available in a faithful, efficient, economical and
9 effective manner.
10 This report shall include, but not be limited to, the criteria
11 listed in section 5(d).
12 Section 3. Leadership Committee.
13 There is hereby created a joint committee of the General
14 Assembly to be known as the Leadership Committee. The Leadership
15 Committee shall be composed of the Speaker of the House of
16 Representatives, the President pro tempore of the Senate and the
17 Majority and Minority Leaders of the House of Representatives
18 and the Senate. The Speaker of the House of Representatives
19 shall serve as the temporary chairman of the committee until
20 such time as the committee shall elect a chairman. Members of
21 the Leadership Committee may designate alternates who will have
22 the same powers and duties as regular members.
23 Section 4. Powers and duties of the Leadership Committee.
24 The committee shall have the power and its duty shall be:
25 (1) To direct and coordinate the implementation of the
26 sunset review procedure.
27 (2) To assign the responsibility for the review and
28 evaluation of each agency scheduled for such review and
29 evaluation under the provisions of this act to an appropriate
30 standing committee of the Senate or the House of
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1 Representatives or to a joint standing committee. The
2 assignments for review and evaluation shall be made in
3 January of the year in which the agency is scheduled to be
4 terminated.
5 (3) To evaluate the qualifications of candidates for the
6 position of legislative auditor and hire a qualified person
7 for that position.
8 (4) To consider and approve the budget for the Office of
9 the Legislative Auditor and recommend appropriations
10 therefor.
11 (5) If the Office of Legislative Auditor is not
12 operational in time to conduct the performance audit
13 necessary to review and evaluate agencies scheduled for
14 termination in 1982, the Leadership Committee shall utilize
15 and assign the staff of the Legislative Budget and Finance
16 Committee, for the purpose of conducting said performance
17 audit, which duty shall be the priority of the Legislative
18 Budget and Finance Committee.
19 (6) To authorize, if necessary, a postponement of the
20 review or termination of an agency for a period not exceeding
21 one year.
22 Section 5. Evaluation and review.
23 (a) The standing committee designated by the Leadership
24 Committee shall develop a plan for the evaluation and review of
25 an agency in conjunction with the legislative auditor and
26 representatives of the agency being evaluated.
27 (b) The standing committee shall hold at least one public
28 hearing for each evaluation and review of an agency. At the
29 hearing, the highest ranking officer of the agency or an
30 individual appointed by him shall bear the burden to testify
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1 concerning the need for continued existence of the agency. The
2 committee shall receive other testimony at the public hearing as
3 it shall deem appropriate.
4 (c) The standing committee shall elicit information in each
5 evaluation and review of an agency from the Office of the
6 Auditor General and the Governor's Budget Office as to the
7 financial efficiency of the agency being reviewed. The committee
8 may request and the agency, subject to termination shall provide
9 such information as the committee deems pertinent to its
10 evaluation and review.
11 (d) The standing committee shall make a determination in
12 each evaluation and review as to whether the agency shall be
13 continued, altered or terminated. The committee shall base its
14 determination on the following criteria:
15 (1) whether termination would significantly harm or
16 endanger the public health, safety or welfare;
17 (2) whether there is overlap or duplication of effort by
18 other agencies that permit the termination of the agency;
19 (3) whether there is a more economical way of
20 accomplishing the objectives of the agency;
21 (4) whether there is a demonstrated need, based on
22 service to the public, for the continuing existence of the
23 agency;
24 (5) whether the operation of the agency has been in the
25 public interest;
26 (6) whether the agency has encouraged public
27 participation in the making of its rules and decisions or
28 whether the agency has permitted participation solely by the
29 persons it regulates;
30 (7) whether there is an alternate, less restrictive
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1 method of providing the same services to the public; and
2 (8) such other criteria as may be established by the
3 standing committees.
4 (e) Such standing committees shall draft a report concerning
5 each evaluation and review, stating in that report their
6 findings, their determination as to whether the agency should be
7 continued, altered or terminated, the reasons for such a
8 determination and appropriate legislation to implement the
9 committees' recommendations. The report shall be available for
10 public inspection in the Office of the Chief Clerk of the Senate
11 and of the House of Representatives. The report shall be made to
12 the General Assembly on or before the first session day of
13 September of the year in which the agency in question is
14 scheduled for termination.
15 (f) On or before March 1 of the year in which the agency in
16 question is scheduled for termination, the standing committees
17 designated by the Leadership Committee as responsible for the
18 evaluation and review of the agency shall receive:
19 (1) from the legislative auditor, a performance audit;
20 and
21 (2) from the Legislative Reference Bureau, a report
22 outlining all legislation, then in effect, pertaining to the
23 creation, operation, duties, powers and funding of the
24 agency.
25 Section 6. Termination of agencies.
26 (a) The following agencies together with their corresponding
27 statutory functions and duties shall terminate all activities
28 and shall go out of existence on June 30, 1982:
29 The Bicentennial Commission of Pennsylvania.
30 The State Board of Examiners of Public Accountants.
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1 The State Farm Products Show Commission.
2 The State Board of Examiners of Architects.
3 The Milk Marketing Board.
4 The State Board of Auctioneer Examiners.
5 The Pennsylvania Labor Relations Board.
6 The State Board of Barber Examiners.
7 The Pennsylvania Securities Commission.
8 The State Board of Cosmetology.
9 The State Board of Funeral Directors.
10 The State Real Estate Commission.
11 The State Registration Board for Professional Engineers.
12 The State Board of Landscape Architects.
13 The State Board of Motor Vehicle Manufacturers, Dealers and
14 Salesmen.
15 The State Board of Private Trade Schools.
16 The State Workmen's Insurance Board.
17 The Citizens Advisory Council (DER).
18 The Environmental Quality Board.
19 The Banking Board.
20 The Building and Loan Board.
21 The Hazardous Transportation Substance Board.
22 The Crime Victim's Compensation Board.
23 The Pennsylvania Commission on Crime and Delinquency.
24 (b) The following agencies together with their corresponding
25 statutory functions and duties shall terminate all activities
26 and shall go out of existence on June 30, 1984:
27 The Pennsylvania Liquor Control Board.
28 The State Board of Chiropractic Examiners.
29 The Pennsylvania Public Utility Commission.
30 The State Board of Medical Education and Licensure.
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1 The Governor's Council on Drug Abuse.
2 The State Board of Nurse Examiners.
3 The Pennsylvania Drug, Device and Cosmetic Board.
4 The State Board of Examiners of Nursing Home Administrators.
5 The State Highway and Bridge Authority.
6 The State Board of Optometrical Examiners.
7 The State Transportation Commission.
8 The State Board of Osteopathic Examiners.
9 The State Soil Conservation Commission.
10 The State Board of Pharmacy.
11 The State Board of Podiatry Examiners.
12 The Pennsylvania Board of Psychologist Examiners.
13 The Commission on Charitable Organizations.
14 The State Board of Veterinary Medical Examiners.
15 The State Board of Public Welfare.
16 The State Board of Physical Therapy Examiners.
17 The Housing Finance Agency.
18 The State Harness Racing Commission.
19 The State Horse Racing Commission.
20 The Pennsylvania Commission on Sentencing.
21 The Pennsylvania Board of Probation and Parole.
22 The Pennsylvania Crime Commission.
23 The Pennsylvania Human Relations Commission.
24 The State Dental Council and Examining Board.
25 (c) The following agencies together with their corresponding
26 statutory functions and duties shall terminate all activities
27 and shall go out of existence on June 30, 1986:
28 The State Board of Private Academic Schools.
29 The State Board of Private Business Schools.
30 The State Board of Private Correspondence Schools.
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1 The State Board of Education.
2 The State Civil Service Commission.
3 The Board of State College and University Directors.
4 The Industrial Board.
5 The State Board for Certification of Sewage Treatment Plant
6 and Waterworks Operators.
7 The State Athletic Commission.
8 The State Board of Vocational Rehabilitation.
9 The Pennsylvania Industrial Development Authority.
10 Certification Board for Sewage Enforcement Officers.
11 The Pennsylvania Minority Business Development Authority.
12 The Professional Standards and Practices Commission.
13 The State Veterans Commission.
14 The Pennsylvania Historical and Museum Commission.
15 The State Art Commission.
16 The State Planning Board.
17 The Pennsylvania Turnpike Commission.
18 The Pennsylvania Parkway Commission.
19 The Municipal Police Officer's Education and Training
20 Commission.
21 The Pennsylvania Emergency Management Agency.
22 The State Lottery Commission.
23 The Department of Aging.
24 (d) The Governor shall not utilize a reorganization plan,
25 executive order, rule or regulation or comparable authority to
26 evade the provisions of this act. Any programs, activities or
27 functions of any agency, scheduled for termination, which are
28 transferred to another agency not scheduled for termination or
29 scheduled for termination at a later date, shall be subject to
30 sunset review at the date scheduled for the termination of the
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1 transferor agency. Any programs, activities or functions, of any
2 agency scheduled for termination which are transferred to
3 another agency scheduled for termination at an earlier date,
4 shall be subject to sunset review at the date scheduled for
5 termination of the transferee agency: Provided, however, That
6 between the time at which the legislative auditor submits his
7 performance audit to the standing committee and the standing
8 committee makes its recommendation to the General Assembly, the
9 Governor shall not utilize a reorganization plan, executive
10 order, rule or regulation or comparable authority to transfer
11 any programs, activities or functions of an agency being
12 evaluated.
13 (e) The termination of any agency under this act shall serve
14 to terminate any advisory agency, whether created by statute or
15 administrative action, established for the primary purpose of
16 advising or assisting the terminated agency.
17 (f) Agencies terminated shall be given until June 30 of the
18 year following the one in which they are terminated to wind up
19 their affairs. During that period, the Governor may petition the
20 General Assembly for a review of the termination but the agency
21 shall be terminated unless the General Assembly passes a law to
22 the contrary.
23 (g) The terms of office of appointees of an agency
24 terminated under this act shall end on June 30 of the year
25 following termination.
26 Section 7. Reestablishment of agencies.
27 Any agency scheduled for termination under this act, may be
28 reestablished by the General Assembly, by legislation. Each
29 reestablishment shall be:
30 (1) for a period of six years unless otherwise specified
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1 in the legislation and again be subject to evaluation, review
2 and termination as provided in the act; and
3 (2) in a separate bill, in which no more than one agency
4 shall be reestablished and such agency shall be mentioned in
5 the title of the bill.
6 Section 8. Newly created agencies.
7 A statutory agency created after January 1, 1980 shall be
8 scheduled for termination at the conclusion of the sixth year
9 following its creation unless otherwise specified by the General
10 Assembly at its creation.
11 Section 9. Termination procedures.
12 (a) Records and property of an agency shall be transferred
13 to the department of which it was a part, or if it was an
14 independent agency, to the Department of General Services for
15 appropriate disposal of property and retention of records.
16 (b) All appropriations to and funds of the agency not spent
17 or encumbered shall lapse when the existence of the agency ends.
18 No agency, prior to the date in a fiscal year on which it is
19 scheduled to be terminated, shall expend in excess of 50% of any
20 general appropriation, Federal augmentation, appropriation or
21 similar appropriation made to the agency for said fiscal year:
22 Provided, however, That the agency may utilize a portion of the
23 unexpended balance of said appropriations to conclude its
24 affairs.
25 (c) The employment of all personnel of the terminated agency
26 shall be terminated: Provided, however, That this subsection
27 shall not be construed to prohibit the employees from applying
28 for and being employed by other agencies or departments to fill
29 job vacancies.
30 (d) Employees of agencies terminated under this act, who have
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1 civil service status or who are covered by union contracts shall
2 fill any existing vacancies within the administrative branch of
3 State Government in their grade and position. If there are more
4 employees than vacant positions at the time of termination, then
5 such terminated employees shall receive employment in the first
6 vacancies that shall thereafter exist in their grade and
7 position.
8 Section 10. Causes of action.
9 The provisions of this act shall not affect any liability
10 incurred or right accrued or vested or affect any suit pending
11 or to be instituted to enforce any right under the authority of
12 any act or part thereof repealed by this act.
13 Section 11. Establishment of the Office of the Legislative
14 Auditor.
15 There is hereby created and established an Office of the
16 Legislative Auditor, to serve the General Assembly. It is the
17 stated policy of the General Assembly to provide for the
18 impartial and independent auditing of the management and
19 performance of the State agencies by an impartial auditor who is
20 entirely independent of the State administration whose affairs
21 he is called upon to audit.
22 Section 12. Qualifications, selection process and term.
23 (a) The legislative auditor shall, at the time of his
24 appointment, have demonstrated technical competence and
25 administrative ability. He shall be a certified public
26 accountant or a licensed public accountant and have at least
27 five years experience in a supervisory or management capacity in
28 public accounting; or have received a bachelor's degree from an
29 accredited institution of higher learning in accounting,
30 economics, public affairs and administration, business
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1 administration or similar field of learning and had at least
2 five years of supervisory and management experience in program
3 and performance auditing in the public or private sector or have
4 equivalent experience as determined by the Leadership Committee.
5 (b) An advisory commission is hereby established to evaluate
6 and recommend candidates for the position of legislative
7 auditor. The advisory commission shall be composed of five
8 members, and shall include the Dean of the Graduate School of
9 Business Administration, University of Pittsburgh; Dean of the
10 Wharton School, University of Pennsylvania; the Director of the
11 Pennsylvania Economy League; and the President of the
12 Pennsylvania Institute of Certified Public Accountants and a
13 member appointed by the Leadership Committee.
14 (c) The advisory commission shall review, evaluate and
15 submit a list of recommended candidates for the position of
16 legislative auditor in accordance with the qualifications listed
17 above. This list shall be prepared and submitted within 45 days
18 after a vacancy in the position of legislative auditor occurs.
19 (d) The Leadership Committee shall select the legislative
20 auditor from among the list of recommended candidates submitted
21 by the advisory commission within 30 days. In the event the
22 Leadership Committee cannot agree upon the selection of a
23 legislative auditor within 30 days following the expiration of
24 the term of a preceding auditor, the auditor shall be chosen by
25 lots cast between the two candidates receiving the greatest
26 number of votes on the last ballot taken prior to the deadline.
27 Lots shall be cast before the Leadership Committee and the
28 candidate to whom the lot shall fall shall be appointed
29 legislative auditor. The compensation of the legislative auditor
30 shall be fixed by the Leadership Committee and shall not be
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1 diminished during his term of office. Vacancies shall be filled
2 for the remainder of an unexpired term in the same manner as
3 original appointments.
4 (e) The legislative auditor shall serve for a term of six
5 years following the date of his appointment and until a
6 successor has been appointed and shall be eligible for
7 reappointment.
8 (f) The legislative auditor may be removed from office by
9 concurrent resolution of the General Assembly, when in the
10 opinion of the General Assembly the legislative auditor is
11 permanently incapacitated or is guilty of malfeasance,
12 misfeasance, nonfeasance, or has been adjudged by a court of
13 law, guilty of any felony or conduct involving moral turpitude.
14 The legislative auditor shall be suspended by the Leadership
15 Committee from his duties whenever such charges as listed above
16 have been filed in a court of record prior to court action. The
17 legislative auditor shall be provided with retroactive pay and
18 full restoration of duties and responsibilities should these
19 charges be dismissed in a court of record.
20 (g) In order to preserve the independence and objectivity of
21 the audit function, the legislative auditor shall devote his
22 full time and effort to audit examinations and reporting and
23 budgetary analysis. He may not serve in any capacity on an
24 administrative board, commission or agency of the Commonwealth
25 that, under the provisions of this act, he has the
26 responsibility to audit. He shall not have a material direct or
27 indirect financial or other economic interest in the transaction
28 of any Commonwealth agency. He shall not be responsible for the
29 collection of any money belonging to the Commonwealth for the
30 handling or custody of any Commonwealth funds. Neither the
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1 legislative auditor nor any member of his staff shall engage in
2 or be associated with any partisan political activity or hold
3 any public office.
4 (h) The legislative auditor shall neither conduct nor
5 supervise an audit of a program or activity for which he was
6 responsible or in which he participated personally, and he shall
7 neither conduct nor supervise an audit of any program or
8 activity of an entity within which he was employed for at least
9 two years after the termination of that employment. The
10 legislative auditor shall not be eligible for appointment or
11 election to any other public office during his employment and
12 two years thereafter.
13 (i) The legislative auditor shall appoint and fix the
14 compensation of assistant auditors and other staff, subject to
15 the approval of leadership. These assistants shall be subject to
16 review six months after the new term of the legislative auditor
17 has begun.
18 Section 13. Access to records and witnesses.
19 The legislative auditor and his authorized representatives
20 shall, for the purpose of examination and audit authorized by
21 this act, have ready access to persons and may examine and copy
22 to the extent deemed necessary to its evaluation and review,
23 pertinent records, accounts, papers, reports, vouchers,
24 correspondence, books and other documentation of any
25 Commonwealth agency.
26 Section 14. Authority to administer oaths, subpoena witnesses
27 and records and take depositions.
28 For the purpose of this act, the legislative auditor, with
29 the concurrent resolution of both houses shall have the power to
30 compel the attendance of witnesses and the production of any
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1 papers, books, accounts and documents to subpoena witnesses,
2 take testimony under oath; to cause the deposition of witnesses,
3 residing within or without the Commonwealth, to be taken in the
4 manner prescribed by law and to assemble records and documents,
5 by subpoena or otherwise, with the same power and authority as
6 courts of record and may apply to courts of record for the
7 enforcement of these powers.
8 Any person who willfully neglects or refuses to comply with
9 any subpoena issued in behalf of the legislative auditor, or
10 refuses to testify to any matters regarding which he may be
11 lawfully interrogated, shall be subject to the penalties
12 provided by the laws of the Commonwealth of Pennsylvania.
13 Section 15. General repeal.
14 All acts or parts of acts inconsistent with the provisions of
15 this act are repealed to the extent of the inconsistency.
16 Section 16. Effective date.
17 This act shall take effect on January 1, 1982.
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