PRIOR PRINTER'S NO. 2804 PRINTER'S NO. 3291
No. 2006 Session of 2003
INTRODUCED BY TURZAI, T. STEVENSON, MUSTIO, HABAY, BARRAR, BOYD,
CAPPELLI, CRAHALLA, DAILEY, DALLY, DENLINGER, J. EVANS,
FLICK, HORSEY, HUTCHINSON, LEWIS, McILHATTAN, METCALFE,
PAYNE, REED, REICHLEY, SAYLOR, SCHRODER, R. STEVENSON, WILT,
RUBLEY, SCAVELLO AND CLYMER, OCTOBER 16, 2003
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
FEBRUARY 4, 2004
AN ACT
1 Providing for intergovernmental cooperation in cities of the <--
2 second class; establishing an intergovernmental authority;
3 providing for financing, for bankruptcy and for sovereign
4 immunity; making an appropriation; and making a repeal.
5 TABLE OF CONTENTS
6 Chapter 1. General Provisions
7 Section 101. Short title.
8 Section 102. Purpose and legislative intent.
9 Section 103. Legislative findings.
10 Section 104. Definitions.
11 Chapter 2. Intergovernmental Cooperation Authority for Cities
12 of the Second Class
13 Section 201. Authority established.
14 Section 202. Governing board.
15 Section 203. Powers and duties.
16 Section 204. Term of existence.
17 Section 205. Fiscal year.
1 Section 206. Annual budget of authority.
2 Section 207. Annual report to be filed; annual audits.
3 Section 208. Limit on city borrowing.
4 Section 209. Budget proposal by authority.
5 Section 210. Financial plan of an assisted city.
6 Section 211. Powers and duties of authority with respect to
7 financial plans.
8 Section 212. Limitation on assisted cities to file petition
9 for relief under Federal bankruptcy law.
10 Section 213. Investment of funds.
11 Section 214. Sovereign immunity.
12 Chapter 7. Miscellaneous Provisions
13 Section 701. Appropriation.
14 Section 702. General rights and prohibitions.
15 Section 703. Nondiscrimination.
16 Section 704. Construction of act.
17 Section 705. Limitation of authority powers.
18 Section 706. Repeals and suspensions.
19 Section 707. Effective date.
20 PROVIDING FOR INTERGOVERNMENTAL COOPERATION IN CITIES OF THE <--
21 SECOND CLASS; ESTABLISHING AN INTERGOVERNMENTAL AUTHORITY;
22 PROVIDING FOR FINANCING, FOR BANKRUPTCY AND FOR SOVEREIGN
23 IMMUNITY; AND MAKING AN APPROPRIATION.
24 TABLE OF CONTENTS
25 CHAPTER 1. GENERAL PROVISIONS
26 SECTION 101. SHORT TITLE.
27 SECTION 102. PURPOSE AND LEGISLATIVE INTENT.
28 SECTION 103. LEGISLATIVE FINDINGS.
29 SECTION 104. DEFINITIONS.
30 CHAPTER 2. INTERGOVERNMENTAL COOPERATION AUTHORITY FOR CITIES
31 OF THE SECOND CLASS
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1 SECTION 201. AUTHORITY ESTABLISHED.
2 SECTION 202. GOVERNING BOARD.
3 SECTION 203. POWERS AND DUTIES.
4 SECTION 204. TERM OF EXISTENCE.
5 SECTION 205. FISCAL YEAR.
6 SECTION 206. ANNUAL BUDGET OF AUTHORITY.
7 SECTION 207. ANNUAL REPORT TO BE FILED; ANNUAL AUDITS.
8 SECTION 208. LIMIT ON CITY BORROWING.
9 SECTION 209. FINANCIAL PLAN OF AN ASSISTED CITY.
10 SECTION 210. POWERS AND DUTIES OF AUTHORITY WITH RESPECT TO
11 FINANCIAL PLANS.
12 SECTION 211. LIMITATION ON AUTHORITY AND ON ASSISTED CITIES TO
13 FILE PETITION FOR RELIEF UNDER FEDERAL
14 BANKRUPTCY LAW.
15 SECTION 212. INVESTMENT OF FUNDS.
16 SECTION 213. SOVEREIGN IMMUNITY.
17 CHAPTER 7. MISCELLANEOUS PROVISIONS
18 SECTION 701. APPROPRIATION.
19 SECTION 702. GENERAL RIGHTS AND PROHIBITIONS.
20 SECTION 703. NONDISCRIMINATION.
21 SECTION 704. CONSTRUCTION OF ACT.
22 SECTION 705. LIMITATION OF AUTHORITY POWERS.
23 SECTION 706. REPEAL.
24 SECTION 707. EFFECTIVE DATE.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 CHAPTER 1 <--
28 GENERAL PROVISIONS
29 Section 101. Short title.
30 This act shall be known and may be cited as the
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1 Intergovernmental Cooperation Authority Act for Cities of the
2 Second Class.
3 Section 102. Purpose and legislative intent.
4 (a) Policy.--It is hereby declared to be a public policy of
5 the Commonwealth to exercise its retained sovereign powers with
6 regard to taxation and matters of Statewide concern in a manner
7 calculated to foster the fiscal integrity of cities of the
8 second class to assure that these cities provide for the health,
9 safety and welfare of their citizens; pay principal and interest
10 owed on their debt obligations when due; meet financial
11 obligations to their employees, vendors and suppliers; and
12 provide for proper financial planning procedures and budgeting
13 practices. The inability of a city of the second class to
14 provide essential services to its citizens as a result of a
15 fiscal emergency is hereby determined to affect adversely the
16 health, safety and welfare not only of the citizens of that
17 municipality but also of other citizens in this Commonwealth.
18 (b) Legislative intent.--
19 (1) It is the intent of the General Assembly to:
20 (i) provide cities of the second class with the
21 legal tools with which such cities can perform essential
22 municipal services; and
23 (ii) foster sound financial planning and budgetary
24 practices for cities of the second class, which cities
25 shall be charged with the responsibility to exercise
26 efficient and accountable fiscal practices, such as:
27 (A) increased managerial accountability;
28 (B) consolidation or elimination of inefficient
29 city programs and authorities;
30 (C) reevaluation of tax-exemption policies with
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1 regard to real property taxes;
2 (D) increased collection of existing tax
3 revenues;
4 (E) privatization of appropriate city services;
5 (F) sale of city assets as appropriate;
6 (G) improvement of procurement practices,
7 including competitive bidding procedures; and
8 (H) review of compensation and benefits of city
9 employees; and
10 (iv) exercise its powers consistent with the rights
11 of citizens to home rule and self-government.
12 (2) The General Assembly further declares that this
13 legislation is intended to remedy the apparent fiscal
14 emergency confronting cities of the second class through the
15 implementation of sovereign powers of the Commonwealth. To
16 safeguard the rights of the citizens to the electoral process
17 and home rule, the General Assembly intends to exercise its
18 power in an appropriate manner with the elected officers of
19 cities of the second class.
20 Section 103. Legislative findings.
21 It is hereby determined and declared as a matter of
22 legislative finding that:
23 (1) Cities of the second class have encountered
24 recurring financial difficulties which may affect the
25 performance of necessary municipal services to the detriment
26 of the health, safety and general welfare of residents of
27 such cities.
28 (2) It is critically important that cities of the second
29 class maintain their creditworthiness.
30 (3) Due to the economic and social interrelationship
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1 among all citizens in our economy, the fiscal integrity of
2 cities of the second class is a matter of concern to
3 residents of the entire Commonwealth, and the financial
4 problems of such cities have a direct and negative effect on
5 the entire Commonwealth.
6 (4) Because cities of the second class consume a
7 substantial proportion of the products of Pennsylvania's
8 farms, factories, manufacturing plants and service
9 enterprises, economic difficulties confronting cities of the
10 second class detrimentally affect the economy of the
11 Commonwealth as a whole and become a matter of Statewide
12 concern.
13 (5) Because residents of cities of the second class
14 contribute a substantial proportion of all Commonwealth tax
15 revenues, a disruption of the economic and social life of
16 such cities may have a significant detrimental effect upon
17 Commonwealth revenues.
18 (6) The financial difficulties of cities of the second
19 class can best be addressed and resolved by cooperation
20 between governmental entities.
21 (7) The Constitution of Pennsylvania grants
22 municipalities authority to cooperate with other governmental
23 entities in the exercise of any function or responsibility.
24 (8) The Commonwealth retains certain sovereign powers
25 with respect to cities of the second class, among them the
26 powers to authorize and levy taxes, to authorize the
27 incurring of indebtedness and to provide financial assistance
28 that may be necessary to assist cities in solving their
29 financial problems.
30 (9) The Commonwealth may attach conditions to grants of
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1 authority to incur indebtedness or assistance to cities of
2 the second class in order to ensure that deficits are
3 eliminated and access to capital markets is achieved and
4 maintained.
5 (10) Such conditions shall be incorporated into
6 intergovernmental cooperation agreements between the
7 Commonwealth or its instrumentalities and cities of the
8 second class.
9 (11) Cities of the second class and the Commonwealth
10 will benefit from the creation of an independent authority
11 composed of members experienced in finance and management
12 which may advise such cities, the General Assembly and the
13 Governor concerning solutions to fiscal problems cities of
14 the second class may face.
15 (12) The creation of such an authority will allow such
16 cities to continue to provide the necessary municipal
17 services for their residents and to contribute to the economy
18 of the Commonwealth.
19 Section 104. Definitions.
20 The following words and phrases when used in this act shall
21 have the meanings given to them in this section unless the
22 context clearly indicates otherwise:
23 "Assisted city." A city of the second class which receives
24 assistance from the Intergovernmental Cooperation Authority for
25 Cities of the Second Class. The term includes any municipal
26 authority, other authority or other corporate entity which
27 performs a governmental function on behalf of the city or to
28 which the city has power of appointment or has pledged or
29 designated revenues.
30 "Authority." The Intergovernmental Cooperation Authority for
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1 Cities of the Second Class established in section 201.
2 "Board." The governing board of the Intergovernmental
3 Cooperation Authority for Cities of the Second Class.
4 "City." A city of the second class.
5 "City account." A trust fund held for the exclusive benefit
6 of an assisted city.
7 "Corporate entity." A municipal authority, other authority
8 or other corporate entity which performs a governmental function
9 on behalf of the city or to which the city has power of
10 appointment or has pledged or designated revenues.
11 "Deficit." Such negative fund balance in any principal
12 operating fund or funds of a city or corporate entity existing
13 or projected to exist as of the close of a fiscal year, as may
14 be more specifically identified, calculated and set forth in an
15 intergovernmental cooperation agreement or financial plan of an
16 assisted city described in section 210.
17 "Federal agency." The United States, the President of the
18 United States and any department or corporation, agency or
19 instrumentality created, designated or established by the United
20 States.
21 "Governing body." The legislative body of a city.
22 "Government agency." The Governor, departments, boards,
23 commissions, authorities and other officers and agencies of
24 State government, including those which are not subject to the
25 policy supervision and control of the Governor, any political
26 subdivision, municipal or other local authority, and any officer
27 or agency of any such political subdivision or local authority,
28 but the term does not include any court or other officer or
29 agency of the unified judicial system or the General Assembly or
30 its officers and agencies.
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1 "Intergovernmental cooperation agreement." Any agreement
2 made by the authority and a city under the provisions of section
3 203(d).
4 "Party officer." The following members or officers of any
5 political party:
6 (1) a member of a national committee;
7 (2) a chairman, vice chairman, secretary, treasurer or
8 counsel of a State committee or member of the executive
9 committee of a State committee;
10 (3) a county chairman, vice chairman, counsel, secretary
11 or treasurer of a county committee; or
12 (4) a chairman, vice chairman, counsel, secretary,
13 treasurer or ward leader of a city or municipal committee.
14 "Public official." Any elected or appointed official or
15 employee in the executive, legislative or judicial branch of the
16 Commonwealth or any political subdivision thereof, provided that
17 it shall not include members of advisory boards that have no
18 authority to expend public funds other than reimbursement for
19 personal expense or to otherwise exercise the power of the
20 Commonwealth or any political subdivision thereof. The term
21 shall not include any appointed official who receives no
22 compensation other than reimbursement for actual expenses.
23 CHAPTER 2
24 INTERGOVERNMENTAL COOPERATION AUTHORITY FOR
25 CITIES OF THE SECOND CLASS
26 Section 201. Authority established.
27 A body corporate and politic to be known as the
28 Intergovernmental Cooperation Authority for Cities of the Second
29 Class is established as a public authority and instrumentality
30 of the Commonwealth, exercising public powers of the
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1 Commonwealth as an agency and instrumentality. The exercise by
2 the authority of the powers conferred by this act is hereby
3 declared to be and shall for all purposes be deemed and held to
4 be the performance of an essential public function.
5 Section 202. Governing board.
6 (a) Composition of board.--
7 (1) The powers and duties of the authority shall be
8 exercised by a governing board composed of five members:
9 (i) One member shall be appointed by the President
10 pro tempore of the Senate.
11 (ii) One member shall be appointed by the Minority
12 Leader of the Senate.
13 (iii) One member shall be appointed by the Speaker
14 of the House of Representatives.
15 (iv) One member shall be appointed by the Minority
16 Leader of the House of Representatives.
17 (v) One member shall be selected by majority vote of
18 the members appointed under subparagraphs (i) through
19 (iv).
20 (vi) The Secretary of the Budget and the director of
21 finance of each assisted city shall serve as ex officio
22 members of the board. The ex officio members may not
23 vote, shall not be counted for purposes of establishing a
24 quorum and may designate in writing a representative of
25 their respective offices to attend meetings of the board
26 on their behalf.
27 (2) All members and designees must have substantial
28 experience in finance or management.
29 (3) All members of the board must be residents of this
30 Commonwealth and, except the Secretary of the Budget or his
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1 designee, must either be residents of the assisted city or
2 have their primary places of business or employment in that
3 city.
4 (b) Term.--Appointing authorities shall appoint the initial
5 members of the board within ten days of the effective date of
6 this act, and the appointed members shall select a member under
7 subsection (a)(1)(v) at the initial organizational meeting of
8 the board. The term of a board member shall begin on the date of
9 the appointment or selection. A member's term shall be
10 coterminous with that of the appointing authority, and the term
11 of the member selected under subsection (a)(1)(v) shall be two
12 years from the date of selection, provided that a member's term
13 shall continue until a replacement is appointed or selected. An
14 appointed board member shall serve at the pleasure of the
15 member's appointing authority, and the member selected under
16 subsection (a)(1)(v) may be removed upon a majority vote of the
17 appointed members. Whenever a vacancy occurs among the appointed
18 members on the board, whether prior to or on the expiration of a
19 term, the appointing authority who originally appointed the
20 board member whose seat has become vacant shall appoint a
21 successor member within 30 days of the vacancy. If a vacancy
22 occurs with respect to the board member selected under
23 subsection (a)(1)(v), the appointing members of the board shall
24 select a successor member within 30 days of the vacancy. A
25 member appointed by an appointing authority, or selected under
26 subsection (a)(1)(v), to fill a vacancy occurring prior to the
27 expiration of a term shall serve the unexpired term.
28 (c) Organization.--The appointees of the President pro
29 tempore of the Senate and the Speaker of the House of
30 Representatives shall set a date, time and place for the initial
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1 organizational meeting of the board within five days of the
2 appointment of the initial members of the board. The initial
3 organizational meeting shall be held within ten days of the
4 appointment of the initial members of the board. The member
5 selected under subsection (a)(1)(v) shall serve as chairperson.
6 The members shall elect such other officers as they may
7 determine. A member may hold more than one office of the board
8 at any time.
9 (d) Meetings.--After the initial organizational meeting, the
10 board shall meet as frequently as it deems appropriate but at
11 least once during each quarter of the fiscal year. In addition,
12 a meeting of the board shall be called by the chairperson if a
13 request for a meeting is submitted to the chairperson by at
14 least two members of the board. A majority of the board shall
15 constitute a quorum for the purpose of conducting the business
16 of the board and for all other purposes. All actions of the
17 board shall be taken by a majority of the board. The provisions
18 of 65 Pa.C.S. Ch. 7 (relating to open meetings) shall apply to
19 the board.
20 (e) Expenses.--A member shall not receive compensation or
21 remuneration, but shall be entitled to reimbursement for all
22 reasonable and necessary actual expenses.
23 (f) Employees and agents.--The board shall fix and determine
24 the number of employees of the authority and their respective
25 compensation and duties. The board may contract for or receive
26 the loan of services of persons in the employ of other
27 government agencies, and other government agencies shall be
28 authorized to make such employees available. The board may
29 retain an executive director. The board may hire an independent
30 general counsel to the authority and may engage consultants and
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1 contract for other professional services. The board may delegate
2 to the executive director such powers of the board as the board
3 deems necessary to carry out the purposes of the authority,
4 subject in every case to the supervision and control of the
5 board.
6 (g) Public officials and party officers.--
7 (1) Except for the Secretary of the Budget and the
8 director of finance of an assisted city, neither members of
9 the board nor the executive director shall seek or hold a
10 position as any other public official within this
11 Commonwealth or as a party officer while in the service of
12 the authority. Members of the board and the executive
13 director shall not seek election as public officials or party
14 officers for one year after their service with the authority.
15 Members of the board and the executive director may serve as
16 appointive public officials any time after their periods of
17 service with the authority.
18 (2) Employees and agents of the authority shall not seek
19 or hold other positions as public officials or party officers
20 while in the employ of the authority. The authority may
21 receive the loan of services of persons in other government
22 agencies in accordance with subsection (f), notwithstanding
23 that such persons are public officials. Employees of the
24 authority shall not seek election as public officials or
25 party officers for one year after leaving the employ of the
26 authority.
27 (h) Statutes applying to authority.--
28 (1) The provisions of the following acts shall apply to
29 the authority:
30 (i) The act of June 21, 1957 (P.L.390, No.212),
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1 referred to as the Right-to-Know Law.
2 (ii) Except as set forth in paragraph (2), the act
3 of July 19, 1957 (P.L.1017, No.451), known as the State
4 Adverse Interest Act.
5 (iii) The act of October 4, 1978 (P.L.883, No.170),
6 referred to as the Public Official and Employee Ethics
7 Law.
8 (iv) The provisions of 65 Pa.C.S. Ch. 7 (relating to
9 open meetings).
10 (2) Notwithstanding the provisions of the State Adverse
11 Interest Act, the Secretary of the Budget and the director of
12 finance of each assisted city shall, while serving as ex
13 officio members of the board, also serve in their official
14 capacities with respect to the negotiation and execution of
15 intergovernmental cooperation agreements and other agreements
16 between an assisted city and the authority.
17 (i) Advisory committees.--To assist in the performance of
18 its duties, the board may appoint advisory committees comprised
19 of professionals engaged in municipal management and finance or
20 other experts as it may deem necessary. The members of any
21 advisory committee must reside within an assisted city or a
22 county within the statistical metropolitan area in which the
23 assisted city is located. The provisions of subsection (g) shall
24 be applicable to members of an advisory committee; however, the
25 board may allow city council to designate a liaison from city
26 council to serve on an advisory committee.
27 Section 203. Powers and duties.
28 (a) General powers and duties.--The authority is established
29 for the purposes, without limitation, by itself or by agreement
30 in cooperation with others, of assisting cities in solving their
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1 budgetary and financial problems.
2 (b) Specific duties.--The authority shall have the powers
3 and its duties shall be:
4 (1) To assist cities in achieving financial stability in
5 any manner consistent with the purposes and powers described
6 by this act.
7 (2) To assist cities in avoiding defaults, eliminating
8 and financing deficits, maintaining sound budgetary practices
9 and avoiding the interruption of municipal services.
10 (3) To negotiate intergovernmental cooperation
11 agreements with cities containing such terms and conditions
12 as will enable such cities to eliminate and avoid deficits,
13 maintain sound budgetary practices and avoid interruption of
14 municipal services.
15 (4) To make annual reports within 120 days after the
16 close of the assisted city's fiscal year, commencing with the
17 fiscal year ending December 31, 2003, to the Governor and the
18 General Assembly describing the city's financial condition
19 and the authority's progress with respect to restoring the
20 financial stability of assisted cities and achieving balanced
21 budgets for assisted cities. Such reports shall be filed with
22 the Governor, with the presiding officers of the Senate and
23 the House of Representatives, with the chairperson and
24 minority chairperson of the Appropriations Committee of the
25 Senate and the chairperson and the minority chairperson of
26 the Appropriations Committee of the House of Representatives
27 and with the governing body, mayor and controller of the
28 assisted city.
29 (c) Specific powers.--In addition to the powers and duties
30 set forth elsewhere in this act, the authority shall have the
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1 specific powers:
2 (1) To obtain copies of all reports regarding the
3 revenues, expenditures, budgets, deficits, costs, plans,
4 operations, estimates and any other financial or budgetary
5 matters of an assisted city.
6 (2) To obtain additional reports on the above matters in
7 such form as are deemed necessary by the authority.
8 (3) To make factual findings concerning an assisted
9 city's budgetary and fiscal affairs.
10 (4) To make recommendations to an assisted city
11 concerning its budgetary and fiscal affairs. Recommendations
12 under this paragraph may include:
13 (i) Consolidation or merger of services performed by
14 an assisted city, school, county or other surrounding
15 municipality.
16 (ii) Consolidation of public safety services.
17 (iii) Appropriate staffing levels of city
18 departments and corporate entities.
19 (iv) Cooperative agreements or contractual
20 arrangements between health care facilities licensed by
21 the Department of Health.
22 (v) Financial or contractual obligations of the
23 assisted city.
24 (vi) Contributions of nonprofit or charitable
25 organizations which receive the benefit of municipal
26 services provided by the assisted city.
27 (vii) Reduction or restructuring of debt
28 obligations.
29 (viii) Cooperative agreements between the assisted
30 city and the county in which it is located or
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1 municipalities which border on the assisted city.
2 (ix) Cooperative agreements between the assisted
3 city and the school district serving the residents of the
4 assisted city.
5 (x) Collective bargaining agreements and other
6 contracts of the assisted city.
7 (xi) Elimination, sale or transfer of assisted city
8 services or property.
9 (xii) Implementation of cost-saving measures by the
10 assisted city.
11 (xiii) Increased managerial accountability.
12 (xiv) Performance of government operations and
13 delivery of municipal services.
14 (xv) Reevaluation of tax-exemption policies and
15 practices with regard to real property taxation within
16 the assisted city.
17 (xvi) Improvements in procurement practices.
18 (xvii) Implementation of user fees for services,
19 including sewage, water treatment and refuse collection.
20 (xviii) Privatization and competitive bidding of
21 appropriate assisted city services.
22 (xix) Increased collection of fines and costs
23 relating to parking violations or violations of other
24 city ordinances.
25 (xx) To recommend, when appropriate, filing for
26 bankruptcy under 11 U.S.C. Ch. 9 (relating to adjustment
27 of debts of municipalities).
28 (xxi) Consideration of reports and proposals
29 published and made available to the public.
30 (5) To make recommendations to the Governor and the
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1 General Assembly regarding legislation or resolutions which
2 relate to an assisted city's fiscal stability.
3 (6) To exercise powers of review concerning the
4 budgetary and fiscal affairs of the assisted city consistent
5 with this act and the city's home rule charter or other
6 optional plan of government.
7 (7) To receive revenues from any source, directly or by
8 assignment, pledge or otherwise.
9 (8) To sue and be sued, implead and be impleaded,
10 interplead, complain and defend in all courts.
11 (9) To adopt, use and alter at will a corporate seal.
12 (10) To make bylaws for the management and regulation of
13 its affairs and adopt rules, regulations and policies in
14 connection with the performance of its functions and duties
15 which, notwithstanding any other provision of law to the
16 contrary, shall not be subject to review pursuant to the act
17 of June 25, 1982 (P.L.633, No.181), known as the Regulatory
18 Review Act.
19 (11) To make and enter into contracts and other
20 instruments necessary or convenient for the conduct of its
21 business and the exercise of the powers of the authority.
22 (12) To appoint officers, agents, employees and servants
23 and to prescribe their duties and to fix their compensation
24 as set forth in section 202(f).
25 (13) To retain counsel and auditors to render such
26 professional services as the authority deems appropriate. The
27 authority shall not be considered either an executive agency
28 or an independent agency for the purpose of the act of
29 October 15, 1980 (P.L.950, No.164), known as the Commonwealth
30 Attorneys Act, but shall possess the same status for such
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1 purpose as the Auditor General, State Treasurer and the
2 Pennsylvania Public Utility Commission, except that the
3 provisions of section 204(b) and (f) of the Commonwealth
4 Attorneys Act shall not apply to the authority;
5 notwithstanding 42 Pa.C.S. Ch. 85 (relating to matters
6 affecting government units), the authority, through its legal
7 counsel, shall defend actions brought against the authority
8 or its members, officers, officials and employees when acting
9 within the scope of their official duties.
10 (14) To cooperate with any Federal agency or government
11 agency.
12 (15) To acquire, by gift or otherwise, purchase, hold,
13 receive, lease, sublease and use any franchise, license,
14 property, real, personal or mixed, tangible or intangible or
15 any interest therein. However, the authority shall be
16 absolutely limited in its power to acquire real property
17 under this act to real property that will be used only for
18 the office space in which the authority will conduct its
19 daily business. An assisted city may provide office space to
20 the authority at no cost as part of an intergovernmental
21 cooperation agreement.
22 (16) To sell, transfer, convey and dispose of any
23 property, real, personal or mixed, tangible or intangible or
24 any interest therein.
25 (17) To enter into contracts for group insurance and to
26 contribute to retirement plans for the benefit of its
27 employees and to enroll its employees in an existing
28 retirement system of a government agency.
29 (18) To accept, purchase or borrow equipment, supplies,
30 services or other things necessary or convenient to the work
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1 of the authority from other government agencies, and all
2 government agencies are authorized to sell, lend or grant to
3 the authority such equipment, supplies, services or other
4 things necessary or convenient to the work of the authority.
5 (19) To invest any funds held by the authority as set
6 forth in section 213.
7 (20) To receive and hold assets, moneys and funds from
8 any source, including, but not limited to, appropriations,
9 grants, gifts.
10 (21) To procure insurance, guarantees and sureties the
11 authority determines necessary or desirable for its purposes.
12 (22) To pledge the credit of the authority as the
13 authority determines necessary or desirable for its purposes.
14 (23) To do all acts and things necessary or convenient
15 for the promotion of its purposes and the general welfare of
16 the authority and to carry out the powers granted to it by
17 this act or any other acts.
18 (d) Intergovernmental cooperation agreements.--The authority
19 shall have the power and its duty shall be to enter into and to
20 implement fully such intergovernmental cooperation agreements
21 with cities as are approved by a majority of the board. The
22 following shall apply:
23 (1) A city may enter into an intergovernmental
24 cooperation agreement in which it, consistent with this act,
25 covenants to cooperate or agree in the exercise of any
26 function, power or responsibility with, or delegate or
27 transfer any function, power or responsibility to, the
28 authority upon the adoption by the governing body of such
29 city of an ordinance authorizing and approving the
30 intergovernmental cooperation agreement.
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1 (2) An ordinance that authorizes a city to enter into an
2 intergovernmental cooperation agreement with the authority
3 shall specify:
4 (i) the purpose and objectives of the agreement;
5 (ii) the conditions of the agreement; and
6 (iii) the term of the agreement, including
7 provisions relating to its termination.
8 (e) Limitation.--Notwithstanding any purpose or general or
9 specific power granted by this act or any other act, whether
10 express or implied, the authority shall have no power to pledge
11 the credit or taxing powers of the Commonwealth.
12 Section 204. Term of existence.
13 The authority shall exist for a term of at least seven years.
14 If, after seven years, an assisted city has had annual operating
15 budgets and five-year financial plans approved by the board for
16 at least the three immediately preceding years, the Secretary of
17 Community and Economic Development shall certify that the
18 authority is no longer needed; and the provisions of this
19 chapter will no longer be in effect 90 days following that
20 certification. Upon termination of the authority, records and
21 documents of the authority shall be transferred to the director
22 of finance of the city. The authority shall submit a final
23 report on its activities and the financial condition of the city
24 and its corporate entities to the Governor and General Assembly
25 within 60 days of its termination.
26 Section 205. Fiscal year.
27 The fiscal year of the authority shall be the same as the
28 fiscal year of the Commonwealth.
29 Section 206. Annual budget of authority.
30 (a) Budget.--Before March 1 of each year, the authority
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1 shall adopt a budget by a majority of the board setting forth in
2 reasonable detail the projected expenses of operation of the
3 authority for the ensuing fiscal year, including the salary and
4 benefits of the executive director and any other employees of
5 the authority, and the projected revenues of the authority to be
6 derived from investment earnings and any other moneys of the
7 authority which are estimated to be available to pay the
8 operating expenses set forth in the budget. A copy of the
9 authority's budget shall be submitted to the Governor and to the
10 General Assembly. The authority or its designated
11 representatives may be afforded an opportunity to appear before
12 the Governor and the Appropriations Committee of the Senate and
13 the Appropriations Committee of the House of Representatives
14 regarding the authority's budget.
15 (b) Limit on operating expenses.--Following the submission
16 of the authority's budget to the Governor and the General
17 Assembly and any hearing held by an appropriations committee
18 under subsection (a), the General Assembly, by concurrent
19 resolution with presentment to the Governor, in accordance with
20 section 9 of Article III of the Constitution of Pennsylvania,
21 may limit the operating expenses of the authority. In that
22 event, it shall be unlawful for the authority to spend more for
23 operating expenses than the limit established for that fiscal
24 year by the concurrent resolution. If the General Assembly does
25 not adopt a concurrent resolution prior to May 30, the
26 authority's budget shall be deemed approved for that fiscal
27 year.
28 (c) Funding.--After July 1, 2005, upon request of the
29 authority and pursuant to the limits established in subsection
30 (b), the city shall annually fund the budget of the authority,
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1 including its reasonable and necessary expenses and costs
2 incurred for consultants engaged by the board to carry out its
3 duties.
4 (d) Examination of books.--The chairperson and minority
5 chairperson of the Appropriations Committee of the Senate and
6 the chairperson and minority chairperson of the Appropriations
7 Committee of the House of Representatives shall have the right
8 at any time to examine the books, accounts and records of the
9 authority.
10 Section 207. Annual report to be filed; annual audits.
11 The authority shall file an annual report with the
12 chairperson and the minority chairperson of the Appropriations
13 Committee of the Senate and chairperson and the minority
14 chairperson of the Appropriations Committee of the House of
15 Representatives, which shall make provisions for the accounting
16 of revenues and expenses. The authority shall have its books,
17 accounts and records audited annually in accordance with
18 generally accepted auditing standards by an independent auditor
19 who shall be a certified public accountant, and a copy of his
20 audit report shall be attached to and be made a part of the
21 authority's annual report. A concise financial statement shall
22 be published annually in the Pennsylvania Bulletin.
23 Section 208. Limit on city borrowing.
24 The city and its corporate entities may not borrow or receive
25 funds for any lawful purpose unless the city has entered into an
26 intergovernmental cooperation agreement with the authority and
27 there is an approved financial plan in effect.
28 Section 209. Budget proposal by authority.
29 For any fiscal year beginning after December 31, 2004, the
30 authority shall submit a proposal for a balanced operating
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1 budget and capital budget to the mayor or chief executive
2 officer and the governing body of the assisted city at least 100
3 days prior to the beginning of the fiscal year of the assisted
4 city. The budget and finance departments of the assisted city
5 shall work in cooperation with the authority to formulate the
6 proposal. The mayor or chief executive officer and the governing
7 body of the assisted city shall not pass a budget prior to the
8 receipt of a balanced budget proposal from the authority.
9 Section 210. Financial plan of an assisted city.
10 (a) Requirement of a financial plan.--An assisted city shall
11 develop, implement and periodically revise a financial plan as
12 described in this section.
13 (b) Elements of plan.--The financial plan shall include:
14 (1) Projected revenues and expenditures of the principal
15 operating fund or funds of the assisted city for five fiscal
16 years consisting of the current fiscal year and the next four
17 fiscal years.
18 (2) Plan components that will:
19 (i) eliminate any projected deficit for the current
20 fiscal year and for subsequent fiscal years;
21 (ii) restore to special fund accounts money from
22 those accounts used for purposes other than those
23 specifically authorized;
24 (iii) balance the current fiscal year budget and
25 subsequent budgets in the financial plan through sound
26 budgetary practices, including, but not limited to,
27 reductions in expenditures, improvements in productivity,
28 increases in revenues or a combination of these steps;
29 (iv) provide procedures to avoid a fiscal emergency
30 condition in the future; and
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1 (v) enhance the ability of the assisted city to
2 access short-term and long-term credit markets.
3 (c) Standards for formulation of plan.--
4 (1) All projections of revenues and expenditures in a
5 financial plan shall be based on reasonable and appropriate
6 assumptions and methods of estimation, all such assumptions
7 and methods to be consistently applied. The financial plan of
8 an assisted city shall not include projected revenue that in
9 order to be collected requires the enactment by the General
10 Assembly of new taxing powers for the assisted city.
11 (2) All revenue and appropriation estimates shall be in
12 accordance with accounting standards applicable to cities as
13 promulgated by the Government Accounting Standards Board.
14 Revenue estimates shall recognize revenues in the accounting
15 period in which they become both measurable and available.
16 Estimates of city-generated revenues shall be based on
17 current or proposed tax rates, historical collection patterns
18 and generally recognized econometric models. Estimates of
19 revenues to be received from the State government shall be
20 based on historical patterns, currently available levels or
21 on levels proposed in a budget by the Governor. Estimates of
22 revenues to be received from the Federal Government shall be
23 based on historical patterns, currently available levels or
24 on levels proposed in a budget by the President or in a
25 congressional budget resolution. Nontax revenues shall be
26 based on current or proposed rates, charges or fees,
27 historical patterns and generally recognized econometric
28 models. Appropriation estimates shall include, at a minimum,
29 all obligations incurred during the fiscal year and estimated
30 to be payable during the fiscal year or in the 24-month
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1 period following the close of the current fiscal year and all
2 obligations of prior fiscal years not covered by encumbered
3 funds from prior fiscal years. Any deviations from these
4 standards of estimating revenues and appropriations proposed
5 to be used by an assisted city shall be specifically
6 disclosed and shall be approved by a majority of the board.
7 (3) All cash flow projections shall be based upon
8 reasonable and appropriate assumptions as to sources and uses
9 of cash, including, but not limited to, reasonable and
10 appropriate assumptions as to the timing of receipt and
11 expenditure thereof, and shall provide for operations of the
12 assisted city to be conducted within the resources so
13 projected. All estimates shall take due account of the past
14 and anticipated collection, expenditure and service demand
15 experience of the assisted city and of current and projected
16 economic conditions.
17 (d) Form of plan.--Each financial plan shall, consistent
18 with the requirements of an assisted city's home rule charter or
19 optional plan of government:
20 (1) be in such form and shall contain:
21 (i) for each of the first two fiscal years covered
22 by the financial plan, such information as shall reflect
23 an assisted city's total expenditures by fund and by lump
24 sum amount for each board, commission, department or
25 office of an assisted city; and
26 (ii) for the remaining three fiscal years of the
27 financial plan, such information as shall reflect an
28 assisted city's total expenditures by fund and by lump
29 sum amount for major object classification;
30 (2) include projections of all revenues and expenditures
20030H2006B3291 - 26 -
1 for five fiscal years, including, but not limited to,
2 projected capital expenditures and short-term and long-term
3 debt incurrence and cash flow forecasts by fund for the first
4 year of the financial plan;
5 (3) include a schedule of projected capital commitments
6 of the assisted city and proposed sources of funding for such
7 commitments; and
8 (4) be accompanied by a statement describing, in
9 reasonable detail, the significant assumptions and methods of
10 estimation used in arriving at the projections contained in
11 such plan.
12 (e) Annual submission of plan.--An assisted city shall
13 develop, and the authority shall review and act upon, an initial
14 five-year financial plan as soon as practicable after the
15 effective date of this act. During each subsequent fiscal year,
16 the mayor or chief executive officer of each assisted city
17 shall, at least 70 days prior to the beginning of its fiscal
18 year or on such other date as the authority may approve upon the
19 request of the assisted city, prepare and submit its proposed
20 five-year plan. At the same time the plan is submitted, the
21 mayor or chief executive officer shall also submit to the
22 authority:
23 (1) the mayor's or chief executive officer's proposed
24 annual operating budget and capital budget which shall be
25 consistent with the first year of the financial plan and
26 which shall be prepared in accordance with the assisted
27 city's home rule charter or other optional plan of
28 government; and
29 (2) a statement by the mayor or chief executive officer
30 that such budget:
20030H2006B3291 - 27 -
1 (i) is consistent with the financial plan;
2 (ii) contains funding adequate for debt service
3 payments, legally mandated services and lease payments
4 securing bonds of other government agencies; and
5 (iii) is based upon reasonable and appropriate
6 assumptions and methods of estimation.
7 (f) Authority review and approval of plan.--
8 (1) The authority shall promptly review each financial
9 plan, proposed operating budget and capital budget submitted
10 by the assisted city. In conducting such review, the
11 authority shall request from the city controller of the
12 assisted city an opinion or certification prepared in
13 accordance with generally accepted auditing standards, with
14 respect to the reasonableness of the assumptions and
15 estimates in the financial plan. The city controller and
16 other elected officials shall comply with any such request
17 from the authority. Not more than 30 days after submission of
18 a financial plan and proposed operating budget, the authority
19 shall determine whether:
20 (i) the financial plan projects balanced budgets,
21 based upon reasonable assumptions as described in this
22 section, for each year of the plan; and
23 (ii) the proposed operating budget and capital
24 budget are consistent with the proposed financial plan.
25 If the authority determines that these criteria are
26 satisfied, the authority shall approve such financial plan by
27 a majority vote.
28 (2) The authority shall not be bound by any opinions or
29 certifications of the city controller of the assisted city
30 issued pursuant to this subsection.
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1 (3) If the authority fails to take any action within 30
2 days on a financial plan, the financial plan as submitted
3 shall be deemed approved. However, if during the 30 days a
4 written request by two members of the authority board for a
5 meeting and vote on the question of approval of the financial
6 plan has been submitted to the chairperson and a meeting and
7 vote do not take place, the financial plan shall be deemed
8 disapproved.
9 (g) Authority disapproval of plan.--
10 (1) If the authority disapproves the proposed financial
11 plan, the authority shall, when it notifies an assisted city
12 of its decision, state in writing in reasonable detail the
13 reasons for such disapproval, including the amount of any
14 estimated budget imbalance.
15 (2) The assisted city shall submit a revised financial
16 plan to the authority within 15 days of such disapproval,
17 which revised plan eliminates the budget imbalance. Not more
18 than 15 days after the submission of such revised financial
19 plan, the authority shall determine whether the revised plan
20 satisfies the criteria set forth in subsection (f)(1). If the
21 authority determines that these criteria are satisfied, the
22 authority shall approve such financial plan by a majority
23 vote. If the authority shall not so approve the financial
24 plan, then the authority shall, in accordance with section
25 211(e), certify the assisted city's noncompliance with the
26 financial plan to the Secretary of the Budget, the President
27 pro tempore of the Senate and the Speaker of the House of
28 Representatives.
29 (h) Revisions to plan.--
30 (1) The plan shall be revised on an annual basis to
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1 include the operating budget for the next fiscal year and to
2 extend the plan for an additional fiscal year. In addition,
3 the mayor or chief executive officer of a city shall, within
4 90 days of assuming office, propose revisions to the
5 financial plan or certify to the authority that he or she
6 adopts the existing plan. An assisted city may, during the
7 course of a fiscal year, submit proposed revisions to the
8 financial plan and shall submit a proposed revision for any
9 amendment to the city's operating or capital budget.
10 (2) The authority shall review each proposed revision
11 within 20 days of its submission. The authority shall approve
12 the revision if it will not, based on reasonable assumptions,
13 cause the plan to become imbalanced. Proposed revisions shall
14 become part of the financial plan upon the approval of a
15 majority of the authority board, unless some other method of
16 approval is permitted by authority rules and regulations
17 approved by a majority or pursuant to an agreement with the
18 city contained in an intergovernmental cooperation agreement.
19 If the authority fails to take action within 20 days on a
20 proposed revision, such submission shall be deemed approved
21 unless a written request for a meeting and vote has been made
22 in accordance with subsection (f)(3) in which event, if a
23 meeting and vote does not take place, the proposed revision
24 shall be deemed disapproved.
25 (3) If the governing body of a city adopts a budget
26 inconsistent with an approved financial plan, the assisted
27 city shall submit the enacted budget to the authority as a
28 proposed revision to the plan. The authority shall review the
29 proposed revision within 30 days of its submission, in
30 accordance with the criteria set forth in subsection (f) and
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1 the approval process set forth in paragraph (2).
2 (i) Supplemental reports.--Within 45 days of the end of each
3 fiscal quarter, or monthly if a variation from the financial
4 plan has been determined in accordance with section 211(c), the
5 mayor or chief executive officer of an assisted city shall
6 provide the authority with reports describing actual or current
7 estimates of revenues and expenditures compared to budgeted
8 revenues and expenditures for such period reflected in its cash
9 flow forecast. Each report required under this section shall
10 indicate any variance between actual or current estimates and
11 budgeted revenues, expenditures and cash for the period covered
12 by such report. An assisted city shall also provide periodic
13 reports on debt service requirements in conformity with section
14 211(b).
15 (j) Effect of plan upon contracts and collective bargaining
16 agreements.--
17 (1) A contract or collective bargaining agreement in
18 existence in an assisted city prior to the approval by the
19 authority of a financial plan submitted pursuant to this
20 section shall remain effective after approval of such plan
21 until such contract or agreement expires.
22 (2) After the approval by the authority of a financial
23 plan submitted pursuant to this section, an assisted city
24 shall execute contracts and collective bargaining agreements
25 in compliance with such plan. If an assisted city executes a
26 contract or a collective bargaining agreement which is not in
27 compliance with the plan, the contract or agreement shall not
28 be void or voidable solely by reason of such noncompliance,
29 but the assisted city shall submit to the authority a
30 proposed revision to the plan which demonstrates that
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1 revenues sufficient to pay the costs of the contract or
2 collective bargaining agreement will be available in the
3 affected fiscal years of the plan.
4 (k) Effect of plan upon certain arbitration awards.--
5 (1) After the approval by the authority of a financial
6 plan submitted pursuant to this section, any determination of
7 a board of arbitration established pursuant to the provisions
8 of the act of June 24, 1968 (P.L.237, No.111), referred to as
9 the Policemen and Firemen Collective Bargaining Act,
10 providing for an increase in wages or fringe benefits of any
11 employee of an assisted city under the plan, in addition to
12 considering any standard or factor required to be considered
13 by applicable law, shall take into consideration and accord
14 substantial weight to:
15 (i) the approved financial plan; and
16 (ii) relevant market factors, such as the financial
17 situation of the assisted city, inflation, productivity,
18 size of work force and pay and benefit levels in
19 economically and demographically comparable political
20 subdivisions.
21 (2) Such determination shall be in writing and a copy
22 thereof shall be forwarded to each party to the dispute and
23 the authority. Any determination of the board of arbitration
24 which provides for an increase in wages or fringe benefits of
25 any employee of an assisted city shall state with specificity
26 in writing all factors which the board of arbitration took
27 into account in considering and giving substantial weight to
28 the factors referred to in paragraph (1).
29 (3) Any party to a proceeding before a board of
30 arbitration may appeal to the court of common pleas to
20030H2006B3291 - 32 -
1 review:
2 (i) consideration under paragraph (1); or
3 (ii) failure of the board of arbitration to issue a
4 determination under paragraph (2).
5 (4) An appeal under paragraph (3) must be commenced not
6 later than 30 days after the issuance of a final
7 determination by the board of arbitration.
8 (5) The decision of the board of arbitration shall be
9 vacated and remanded to the board of arbitration if the court
10 finds:
11 (i) that the board of arbitration failed to take
12 into consideration and accord substantial weight to the
13 factors referred to in paragraph (1); or
14 (ii) that the board of arbitration has failed to
15 issue a determination under paragraph (2).
16 (6) If, after the exhaustion of all appeals, the final
17 arbitration award is not in compliance with the approved
18 financial plan, the award shall not be void or voidable
19 solely by reason of such noncompliance, but the assisted city
20 shall submit to the authority a proposed revision to the plan
21 which demonstrates that revenues sufficient to pay the costs
22 of the award will be available in the affected fiscal years
23 of the plan.
24 Section 211. Powers and duties of authority with respect to
25 financial plans.
26 (a) Formulation and approval of plan.--To advance the
27 financial recovery of each assisted city, the authority shall
28 require the assisted city to submit a five-year financial plan
29 in accordance with section 210. With regard to the formulation
30 of such plan, the authority shall:
20030H2006B3291 - 33 -
1 (1) Consult with an assisted city as it prepares the
2 financial plan.
3 (2) Prescribe the form of the financial plan.
4 (3) Prescribe the supporting information required in
5 connection with such plan, such information to include at a
6 minimum:
7 (i) debt service payments due or projected to be due
8 during the relevant fiscal years;
9 (ii) payments for legally mandated services included
10 in the plan and due or projected to be due during the
11 relevant fiscal years; and
12 (iii) a statement in reasonable detail of the
13 significant assumptions and methods of estimation used in
14 arriving at the projections in the plan.
15 (4) Exercise any rights of approval or disapproval and
16 issue such recommendations as are authorized by this act in
17 accordance with the standards for formulation of the plan set
18 forth in section 210(c).
19 (b) Authority functions after plan is approved.--After a
20 financial plan has been approved, the authority shall:
21 (1) Receive and review:
22 (i) the financial reports submitted by the mayor or
23 chief executive officer of a city under section 210(i);
24 (ii) reports concerning the debt service
25 requirements on all bonds, notes of the assisted city and
26 lease payments of the assisted city securing bonds or
27 other government agencies for the following quarter,
28 which reports shall be in such form and contain such
29 information as the authority shall determine, and which
30 shall be issued no later than 60 days prior to the
20030H2006B3291 - 34 -
1 beginning of the quarter to which they pertain, and shall
2 be updated immediately upon each issuance of bonds or
3 notes, by the assisted city or execution of a lease
4 securing bonds of another government agency, after the
5 date of such report to reflect any change in debt service
6 requirements as a result of such issuance; and
7 (iii) any additional information provided by the
8 assisted city concerning changed conditions or unexpected
9 events which may affect the assisted city's adherence to
10 the financial plan. The reports described in subparagraph
11 (ii) shall be certified by the city controller.
12 (2) Determine, on the basis of information and reports
13 described in paragraph (1), whether an assisted city has
14 adhered to the financial plan.
15 (c) Variation from the plan.--If the authority determines,
16 based upon reports submitted by an assisted city under
17 subsection (b) or independent audits, examinations or studies of
18 the assisted city's finances obtained under subsection (i)(3),
19 that an assisted city's actual revenues and expenditures vary
20 from those estimated in the financial plan, the authority shall
21 require the city to provide such additional information as the
22 authority deems necessary to explain the variation. The
23 authority shall take no action with respect to an assisted city
24 for departures from the financial plan in a fiscal quarter if:
25 (1) the city provides a written explanation for the
26 variation that the authority deems reasonable;
27 (2) the city proposes remedial action which the
28 authority believes will restore the assisted city's overall
29 compliance with the financial plan;
30 (3) information provided by the city in the immediately
20030H2006B3291 - 35 -
1 succeeding quarterly financial report demonstrates that the
2 assisted city is taking such remedial action and otherwise
3 complying with the plan; and
4 (4) the assisted city submits monthly supplemental
5 reports in accordance with section 210(i) until it regains
6 compliance with the financial plan.
7 (d) Authority may make recommendations.--The authority may
8 at any time issue recommendations as to how an assisted city may
9 achieve compliance with the financial plan and shall provide
10 copies of such recommendations to the mayor or chief executive
11 officer and the governing body of the city and to the officials
12 named in section 203(b)(5).
13 (e) When Commonwealth shall withhold funds.--
14 (1) The authority shall certify to the Secretary of the
15 Budget an assisted city's noncompliance with the financial
16 plan during any period when the authority has determined by
17 the vote of a majority that the assisted city has not adhered
18 to the plan and has not taken acceptable remedial action
19 during the next quarter following such departure from the
20 plan.
21 (2) The authority shall certify to the Secretary of the
22 Budget that an assisted city is not in compliance with the
23 plan if the assisted city:
24 (i) has no financial plan approved by the authority,
25 or has failed to provide requested documents or has
26 failed to file a financial plan with the authority;
27 (ii) has failed to file mandatory revisions to the
28 plan or reports as required by section 210(h), (i), (j)
29 or (k); or
30 (iii) has not been compelled to file a financial
20030H2006B3291 - 36 -
1 plan, a mandatory revision to the plan or a report
2 through a mandamus action authorized under subsection
3 (j).
4 (3) If the authority certifies that an assisted city is
5 not in compliance with the financial plan under paragraph (1)
6 or (2), the Secretary of the Budget shall notify the city
7 that such certification has been made and that each grant,
8 loan, entitlement or payment to the assisted city by the
9 Commonwealth shall be suspended pending compliance with the
10 financial plan. Funds withheld shall be held in escrow by the
11 Commonwealth until compliance with the plan is restored as
12 set forth in paragraph (4). Funds held in escrow pursuant to
13 this subsection shall not lapse pursuant to section 621 of
14 the act of April 9, 1929 (P.L.177, No.175), known as The
15 Administrative Code of 1929, or any other law.
16 (4) The authority shall, by majority vote, determine
17 when the conditions which caused an assisted city to be
18 certified as not in compliance with the financial plan have
19 ceased to exist and shall promptly notify the Secretary of
20 the Budget of such vote. The Secretary of the Budget shall
21 thereupon release all funds held in escrow, together with all
22 interest and income earned thereon during the period held in
23 escrow, and the disbursements of amounts in the city account
24 shall resume.
25 (f) Exemptions.--Notwithstanding the provisions of
26 subsection (e), the following shall not be withheld from an
27 assisted city:
28 (1) funds granted or allocated to an assisted city
29 directly from an agency of the Commonwealth or from the
30 Federal Government for distribution by the Commonwealth after
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1 the declaration of a disaster resulting from a catastrophe;
2 and
3 (2) pension fund payments required by law.
4 (g) Effect of Commonwealth's failure to disburse funds.--The
5 provisions of subsection (e) shall not apply and an assisted
6 city shall not be found to have departed from the financial plan
7 due to the Commonwealth's failure to pay any money, including
8 payment of Federal funds distributed by or through the
9 Commonwealth, due to the assisted city from moneys appropriated
10 by the General Assembly.
11 (h) Assisted city to determine expenditure of available
12 funds.--Nothing in this act shall be construed to limit the
13 power of an assisted city to determine, from time to time,
14 within available funds of the assisted city, the purposes for
15 which expenditures are to be made by the assisted city and the
16 amounts of such expenditures then permitted under the financial
17 plan of the assisted city.
18 (i) Documents and examinations to be reviewed or undertaken
19 by the authority.--The authority shall:
20 (1) receive from an assisted city and review the
21 reports, documents, budgetary and financial planning data and
22 other information prepared by or on behalf of such assisted
23 city and which are to be made available to the authority
24 under this act;
25 (2) inspect and copy such books, records and information
26 of an assisted city as the authority deems necessary to
27 accomplish the purposes of this act; and
28 (3) conduct or cause to be conducted such independent
29 audits, examinations or studies of an assisted city's
30 finances as the authority deems appropriate.
20030H2006B3291 - 38 -
1 (j) Remedies of authority for failure of an assisted city to
2 file financial plans and reports.--In the event that an assisted
3 city shall fail to file with the authority any financial plan,
4 revision to a financial plan, report or other information
5 required to be filed with the authority pursuant to this act,
6 the authority, in addition to all other rights which the
7 authority may have at law or in equity, shall have the right by
8 mandamus to compel the assisted city and the officers, employees
9 and agents thereof to file with the authority the financial
10 plan, revision to a financial plan, report or other information
11 which the assisted city has failed to file. The authority shall
12 give the assisted city written notice of the failure of the
13 assisted city to file and of the authority's intention to
14 initiate an action under this subsection and shall not initiate
15 such an action earlier than ten days after the giving of such
16 notice.
17 Section 212. Limitation on assisted cities to file petition for
18 relief under Federal bankruptcy law.
19 (a) Bankruptcy filing approval.--Notwithstanding any other
20 provision of law, no city or assisted city shall be authorized
21 to file a petition for relief under 11 U.S.C. Ch. 9 (relating to
22 adjustment of debts of a municipality), unless such petition has
23 been submitted to, and such filing has been approved in writing
24 by the Governor. The Governor is designated, in accordance with
25 11 U.S.C. § 109(c)(2) (relating to who may be a debtor), as the
26 organization of the Commonwealth which shall have power to
27 approve or disapprove the filing of any such petition of a city
28 or assisted city, and to approve or disapprove any plan of
29 readjustment of the debts of such city or assisted city
30 prepared, filed and submitted with the petition to the court, as
20030H2006B3291 - 39 -
1 provided under 11 U.S.C. Ch. 9.
2 (b) Review of bankruptcy petition.--
3 (1) When any such petition shall be submitted to the
4 Governor for approval, accompanied with a proposed plan of
5 readjustment of the debts of a city, the Governor shall make
6 a careful and thorough investigation of the financial
7 condition of such city, of its assets and liabilities, of its
8 sinking fund, and whether the affairs thereof are managed in
9 a careful, prudent and economic manner in order to ascertain
10 whether the presentation of such petition is justified, or
11 represents an unjust attempt by such city to evade payment of
12 some of its contractual obligations, and, if the Governor
13 believes that such petition should be approved, whether the
14 plan of readjustment submitted will be helpful to the
15 financial condition of the city and is feasible and, at the
16 same time, fair and equitable to all creditors.
17 (2) The Governor shall also, prior to giving his
18 approval, ascertain the amount, if any, of the obligations of
19 any such petitioning city which is held by any agency or
20 agencies of the State government as trust funds and shall,
21 before approving any such petition and plan of readjustment,
22 consult with and give every such agency an opportunity to be
23 heard and the privilege to examine the findings of the
24 Governor resulting from the investigation required to be made
25 under this act, and shall likewise hear any other creditor of
26 such city, whether resident in or outside this Commonwealth,
27 who shall apply therefor.
28 (3)The Governor, if he approves a petition, shall, before
29 giving his approval, require such modification in the
30 proposed plan for readjusting the debts as to him appears
20030H2006B3291 - 40 -
1 proper.
2 Section 213. Investment of funds.
3 Funds of the authority which are not required for immediate
4 use may be invested in obligations of an assisted city or in
5 obligations of the Federal Government or of the Commonwealth or
6 obligations which are legal investments for Commonwealth funds.
7 However, no money may be invested in obligations issued by or
8 obligations guaranteed by an assisted city without the approval
9 of a majority of the board.
10 Section 214. Sovereign immunity.
11 Members of the board shall not be liable personally for any
12 obligations of the authority. It is hereby declared to be the
13 intent of the General Assembly that the authority created by
14 this act and its members, officers, officials and employees
15 shall enjoy sovereign and official immunity, as provided in 1
16 Pa.C.S. § 2310 (relating to sovereign immunity reaffirmed;
17 specific waiver), and shall remain immune from suit except as
18 provided by and subject to the provisions of 42 Pa.C.S. §§ 8501
19 (relating to definitions) through 8528 (relating to limitations
20 on damages).
21 CHAPTER 7
22 MISCELLANEOUS PROVISIONS
23 Section 701. Appropriation.
24 The sum of $500,000 is hereby appropriated from the General
25 Fund to the Intergovernmental Cooperation Authority for Cities
26 of the Second Class as a continuing appropriation for the
27 purpose of providing operating funds for the Intergovernmental
28 Cooperation Authority for Cities of the Second Class. This
29 appropriation shall lapse June 30, 2005.
30 Section 702. General rights and prohibitions.
20030H2006B3291 - 41 -
1 Nothing in this act shall limit the rights or impair the
2 obligations of any assisted city to comply with the provisions
3 of any contract in effect on the effective date of this act or
4 shall in any way impair the rights of the obligees of any
5 assisted city with respect to any such contract.
6 Section 703. Nondiscrimination.
7 The authority shall comply in all respects with the
8 nondiscrimination and contract compliance plans used by the
9 Department of General Services to assure that all persons are
10 accorded equality of opportunity in employment and contracting
11 by the authority and its contractors, subcontractors, assignees,
12 lessees, agents, vendors and suppliers.
13 Section 704. Construction of act.
14 (a) Liberal construction.--The provisions of this act
15 providing for security for and rights and remedies of obligees
16 of the authority shall be liberally construed to achieve the
17 purposes stated and provided for by this act.
18 (b) Severability.--If any provision of the title or any
19 chapter, section or clause of this act, or the application
20 thereof to any person, party, corporation, public or private,
21 shall be judged invalid by a court of competent jurisdiction,
22 such order or judgment shall be confined in its operation to the
23 controversy in which it was rendered and shall not affect or
24 invalidate the remainder of any provision of the title or any
25 chapter or any section or clause of this act, or the application
26 of any part thereof to any other person, party, corporation,
27 public or private, or circumstance, and, to this end, the
28 provisions of the title or any chapter, section or clause of
29 this act hereby are declared to be severable. It is hereby
30 declared as the legislative intent that this act would have been
20030H2006B3291 - 42 -
1 adopted had any provision declared unconstitutional not been
2 included herein.
3 Section 705. Limitation of authority powers.
4 Except as provided in section 211(i), nothing contained in
5 this act shall be construed to confer upon the authority any
6 powers with respect to a school district.
7 Section 706. Repeals and suspensions.
8 (a) Partial.--The provisions of the Municipalities Financial
9 Recovery Act are suspended as to cities of the second class
10 until the termination of the authority established by this act.
11 (b) General.--All other acts or parts of acts are repealed
12 insofar as they are inconsistent with this act.
13 Section 707. Effective date.
14 This act shall take effect immediately.
15 CHAPTER 1 <--
16 GENERAL PROVISIONS
17 SECTION 101. SHORT TITLE.
18 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE
19 INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF THE
20 SECOND CLASS.
21 SECTION 102. PURPOSE AND LEGISLATIVE INTENT.
22 (A) POLICY.--IT IS HEREBY DECLARED TO BE A PUBLIC POLICY OF
23 THE COMMONWEALTH TO EXERCISE ITS RETAINED SOVEREIGN POWERS WITH
24 REGARD TO TAXATION AND MATTERS OF STATEWIDE CONCERN IN A MANNER
25 CALCULATED TO FOSTER THE FISCAL INTEGRITY OF CITIES OF THE
26 SECOND CLASS TO ASSURE THAT THESE CITIES PROVIDE FOR THE HEALTH,
27 SAFETY AND WELFARE OF THEIR CITIZENS; PAY PRINCIPAL AND INTEREST
28 OWED ON THEIR DEBT OBLIGATIONS WHEN DUE; MEET FINANCIAL
29 OBLIGATIONS TO THEIR EMPLOYEES, VENDORS AND SUPPLIERS; AND
30 PROVIDE FOR PROPER FINANCIAL PLANNING PROCEDURES AND BUDGETING
20030H2006B3291 - 43 -
1 PRACTICES. THE INABILITY OF A CITY OF THE SECOND CLASS TO
2 PROVIDE ESSENTIAL SERVICES TO ITS CITIZENS AS A RESULT OF A
3 FISCAL EMERGENCY IS HEREBY DETERMINED TO AFFECT ADVERSELY THE
4 HEALTH, SAFETY AND WELFARE NOT ONLY OF THE CITIZENS OF THAT
5 MUNICIPALITY BUT ALSO OF OTHER CITIZENS IN THIS COMMONWEALTH.
6 (B) LEGISLATIVE INTENT.--
7 (1) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO:
8 (I) PROVIDE CITIES OF THE SECOND CLASS WITH THE
9 LEGAL TOOLS WITH WHICH SUCH CITIES CAN PERFORM ESSENTIAL
10 MUNICIPAL SERVICES; AND
11 (II) FOSTER SOUND FINANCIAL PLANNING AND BUDGETARY
12 PRACTICES FOR CITIES OF THE SECOND CLASS, WHICH CITIES
13 SHALL BE CHARGED WITH THE RESPONSIBILITY TO EXERCISE
14 EFFICIENT AND ACCOUNTABLE FISCAL PRACTICES, SUCH AS:
15 (A) INCREASED MANAGERIAL ACCOUNTABILITY;
16 (B) CONSOLIDATION OR ELIMINATION OF INEFFICIENT
17 CITY PROGRAMS AND AUTHORITIES;
18 (C) REEVALUATION OF TAX-EXEMPTION POLICIES WITH
19 REGARD TO REAL PROPERTY TAXES;
20 (D) INCREASED COLLECTION OF EXISTING TAX
21 REVENUES;
22 (E) PRIVATIZATION OR OUTSOURCING OF APPROPRIATE
23 CITY SERVICES;
24 (F) SALE OF CITY ASSETS AS APPROPRIATE;
25 (G) IMPROVEMENT OF PROCUREMENT PRACTICES,
26 INCLUDING COMPETITIVE BIDDING PROCEDURES; AND
27 (H) REVIEW OF COMPENSATION AND BENEFITS OF CITY
28 EMPLOYEES; AND
29 (III) EXERCISE ITS POWERS CONSISTENT WITH THE RIGHTS
30 OF CITIZENS TO HOME RULE AND SELF-GOVERNMENT.
20030H2006B3291 - 44 -
1 (2) THE GENERAL ASSEMBLY FURTHER DECLARES THAT THIS
2 LEGISLATION IS INTENDED TO REMEDY THE APPARENT FISCAL
3 EMERGENCY CONFRONTING CITIES OF THE SECOND CLASS THROUGH THE
4 IMPLEMENTATION OF SOVEREIGN POWERS OF THE COMMONWEALTH. TO
5 SAFEGUARD THE RIGHTS OF THE CITIZENS TO THE ELECTORAL PROCESS
6 AND HOME RULE, THE GENERAL ASSEMBLY INTENDS TO EXERCISE ITS
7 POWER IN AN APPROPRIATE MANNER WITH THE ELECTED OFFICERS OF
8 CITIES OF THE SECOND CLASS.
9 (3) IT IS FURTHER DECLARED THAT THIS LEGISLATION IS
10 INTENDED TO OPERATE CONCURRENTLY AND EQUALLY WITH THE ACT OF
11 JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE MUNICIPALITIES
12 FINANCIAL RECOVERY ACT.
13 SECTION 103. LEGISLATIVE FINDINGS.
14 IT IS HEREBY DETERMINED AND DECLARED AS A MATTER OF
15 LEGISLATIVE FINDING THAT:
16 (1) CITIES OF THE SECOND CLASS HAVE ENCOUNTERED
17 RECURRING FINANCIAL DIFFICULTIES WHICH MAY AFFECT THE
18 PERFORMANCE OF NECESSARY MUNICIPAL SERVICES TO THE DETRIMENT
19 OF THE HEALTH, SAFETY AND GENERAL WELFARE OF RESIDENTS OF
20 SUCH CITIES.
21 (2) IT IS CRITICALLY IMPORTANT THAT CITIES OF THE SECOND
22 CLASS MAINTAIN THEIR CREDITWORTHINESS.
23 (3) DUE TO THE ECONOMIC AND SOCIAL INTERRELATIONSHIP
24 AMONG ALL CITIZENS IN OUR ECONOMY, THE FISCAL INTEGRITY OF
25 CITIES OF THE SECOND CLASS IS A MATTER OF CONCERN TO
26 RESIDENTS OF THE ENTIRE COMMONWEALTH, AND THE FINANCIAL
27 PROBLEMS OF SUCH CITIES HAVE A DIRECT AND NEGATIVE EFFECT ON
28 THE ENTIRE COMMONWEALTH.
29 (4) BECAUSE CITIES OF THE SECOND CLASS CONSUME A
30 SUBSTANTIAL PROPORTION OF THE PRODUCTS OF PENNSYLVANIA'S
20030H2006B3291 - 45 -
1 FARMS, FACTORIES, MANUFACTURING PLANTS AND SERVICE
2 ENTERPRISES, ECONOMIC DIFFICULTIES CONFRONTING CITIES OF THE
3 SECOND CLASS DETRIMENTALLY AFFECT THE ECONOMY OF THE
4 COMMONWEALTH AS A WHOLE AND BECOME A MATTER OF STATEWIDE
5 CONCERN.
6 (5) BECAUSE RESIDENTS OF CITIES OF THE SECOND CLASS
7 CONTRIBUTE A SUBSTANTIAL PROPORTION OF ALL COMMONWEALTH TAX
8 REVENUES, A DISRUPTION OF THE ECONOMIC AND SOCIAL LIFE OF
9 SUCH CITIES MAY HAVE A SIGNIFICANT DETRIMENTAL EFFECT UPON
10 COMMONWEALTH REVENUES.
11 (6) THE FINANCIAL DIFFICULTIES OF CITIES OF THE SECOND
12 CLASS CAN BEST BE ADDRESSED AND RESOLVED BY COOPERATION
13 BETWEEN GOVERNMENTAL ENTITIES.
14 (7) THE CONSTITUTION OF PENNSYLVANIA GRANTS
15 MUNICIPALITIES AUTHORITY TO COOPERATE WITH OTHER GOVERNMENTAL
16 ENTITIES IN THE EXERCISE OF ANY FUNCTION OR RESPONSIBILITY.
17 (8) THE COMMONWEALTH RETAINS CERTAIN SOVEREIGN POWERS
18 WITH RESPECT TO CITIES OF THE SECOND CLASS, AMONG THEM THE
19 POWERS TO AUTHORIZE AND LEVY TAXES, TO AUTHORIZE THE
20 INCURRING OF INDEBTEDNESS AND TO PROVIDE FINANCIAL ASSISTANCE
21 THAT MAY BE NECESSARY TO ASSIST CITIES IN SOLVING THEIR
22 FINANCIAL PROBLEMS.
23 (9) THE COMMONWEALTH MAY ATTACH CONDITIONS TO GRANTS OF
24 AUTHORITY TO INCUR INDEBTEDNESS OR ASSISTANCE TO CITIES OF
25 THE SECOND CLASS IN ORDER TO ENSURE THAT DEFICITS ARE
26 ELIMINATED AND ACCESS TO CAPITAL MARKETS IS ACHIEVED AND
27 MAINTAINED.
28 (10) SUCH CONDITIONS SHALL BE INCORPORATED INTO
29 INTERGOVERNMENTAL COOPERATION AGREEMENTS BETWEEN THE
30 COMMONWEALTH OR ITS INSTRUMENTALITIES AND CITIES OF THE
20030H2006B3291 - 46 -
1 SECOND CLASS.
2 (11) CITIES OF THE SECOND CLASS AND THE COMMONWEALTH
3 WILL BENEFIT FROM THE CREATION OF AN INDEPENDENT AUTHORITY
4 COMPOSED OF MEMBERS EXPERIENCED IN FINANCE AND MANAGEMENT
5 WHICH MAY ADVISE SUCH CITIES, THE GENERAL ASSEMBLY AND THE
6 GOVERNOR CONCERNING SOLUTIONS TO FISCAL PROBLEMS CITIES OF
7 THE SECOND CLASS MAY FACE.
8 (12) THE CREATION OF SUCH AN AUTHORITY WILL ALLOW SUCH
9 CITIES TO CONTINUE TO PROVIDE THE NECESSARY MUNICIPAL
10 SERVICES FOR THEIR RESIDENTS AND TO CONTRIBUTE TO THE ECONOMY
11 OF THE COMMONWEALTH.
12 (13) SEVERAL TASK FORCES HAVE STUDIED THE FISCAL
13 CONDITION OF A CITY OF THE SECOND CLASS AND HAVE PUBLISHED
14 FINDINGS AND SUGGESTIONS REGARDING THE FISCAL STRUCTURE OF
15 THE CITY AND ACTIONS THAT COULD BE TAKEN CONCERNING
16 PRESERVATION OF THE FINANCIAL VIABILITY OF THE CITY INTO THE
17 FUTURE. THOSE REPORTS, WIDELY KNOWN AS THE COMPETITIVE
18 PITTSBURGH REPORT, THE PGH 21 REPORT AND THE GOVERNOR'S
19 PITTSBURGH ECONOMIC IMPROVEMENT TASK FORCE REPORT SHOULD BE
20 EVALUATED BY THE AUTHORITY IN MAKING ITS RECOMMENDATIONS TO
21 THE CITY. HOWEVER, IT IS INTENDED THAT THE AUTHORITY
22 ESTABLISHED BY THIS ACT EXAMINE THE FISCAL AFFAIRS OF THE
23 ENTIRE CITY OF THE SECOND CLASS, INCLUDING ALL OF ITS
24 AUTHORITIES AND RELATED CORPORATE ENTITIES.
25 SECTION 104. DEFINITIONS.
26 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
27 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
28 CONTEXT CLEARLY INDICATES OTHERWISE:
29 "ASSISTED CITY." A CITY OF THE SECOND CLASS WHICH RECEIVES
30 ASSISTANCE FROM THE INTERGOVERNMENTAL COOPERATION AUTHORITY FOR
20030H2006B3291 - 47 -
1 CITIES OF THE SECOND CLASS. THE TERM INCLUDES ANY MUNICIPAL
2 AUTHORITY, OTHER AUTHORITY OR OTHER CORPORATE ENTITY WHICH
3 DIRECTLY OR INDIRECTLY PERFORMS A GOVERNMENTAL FUNCTION ON
4 BEHALF OF THE CITY, IS DIRECTLY OR INDIRECTLY CONTROLLED BY THE
5 CITY OR TO WHICH THE CITY HAS DIRECT OR INDIRECT POWER OF
6 APPOINTMENT OR HAS DIRECTLY OR INDIRECTLY PLEDGED OR DESIGNATED
7 THE CITY'S REVENUES OR THE CITY'S CREDIT.
8 "AUTHORITY." THE INTERGOVERNMENTAL COOPERATION AUTHORITY FOR
9 CITIES OF THE SECOND CLASS ESTABLISHED IN SECTION 201.
10 "BOARD." THE GOVERNING BOARD OF THE INTERGOVERNMENTAL
11 COOPERATION AUTHORITY FOR CITIES OF THE SECOND CLASS.
12 "CITY." A CITY OF THE SECOND CLASS.
13 "CITY ACCOUNT." A TRUST FUND HELD FOR THE EXCLUSIVE BENEFIT
14 OF AN ASSISTED CITY.
15 "CORPORATE ENTITY." A MUNICIPAL AUTHORITY, OTHER AUTHORITY
16 OR OTHER CORPORATE ENTITY WHICH PERFORMS A GOVERNMENTAL FUNCTION
17 ON BEHALF OF THE CITY OR TO WHICH THE CITY HAS POWER OF
18 APPOINTMENT OR HAS PLEDGED OR DESIGNATED REVENUES.
19 "DEFICIT." SUCH NEGATIVE FUND BALANCE IN ANY PRINCIPAL
20 OPERATING FUND OR FUNDS OF A CITY OR CORPORATE ENTITY EXISTING
21 AT THE BEGINNING OF A FISCAL YEAR OR PROJECTED TO EXIST AS OF
22 THE CLOSE OF A FISCAL YEAR, AS MAY BE MORE SPECIFICALLY
23 IDENTIFIED, CALCULATED AND SET FORTH IN AN INTERGOVERNMENTAL
24 COOPERATION AGREEMENT OR FINANCIAL PLAN OF AN ASSISTED CITY
25 DESCRIBED IN SECTION 209.
26 "FEDERAL AGENCY." THE UNITED STATES, THE PRESIDENT OF THE
27 UNITED STATES AND ANY DEPARTMENT OR CORPORATION, AGENCY OR
28 INSTRUMENTALITY CREATED, DESIGNATED OR ESTABLISHED BY THE UNITED
29 STATES.
30 "GOVERNING BODY." THE LEGISLATIVE BODY OF A CITY.
20030H2006B3291 - 48 -
1 "GOVERNMENT AGENCY." THE GOVERNOR, DEPARTMENTS, BOARDS,
2 COMMISSIONS, AUTHORITIES AND OTHER OFFICERS AND AGENCIES OF
3 STATE GOVERNMENT, INCLUDING THOSE WHICH ARE NOT SUBJECT TO THE
4 POLICY SUPERVISION AND CONTROL OF THE GOVERNOR, ANY POLITICAL
5 SUBDIVISION, MUNICIPAL OR OTHER LOCAL AUTHORITY, AND ANY OFFICER
6 OR AGENCY OF ANY SUCH POLITICAL SUBDIVISION OR LOCAL AUTHORITY,
7 BUT THE TERM DOES NOT INCLUDE ANY COURT OR OTHER OFFICER OR
8 AGENCY OF THE UNIFIED JUDICIAL SYSTEM OR THE GENERAL ASSEMBLY OR
9 ITS OFFICERS AND AGENCIES.
10 "INTERGOVERNMENTAL COOPERATION AGREEMENT." ANY AGREEMENT
11 MADE BY THE AUTHORITY AND A CITY UNDER THE PROVISIONS OF SECTION
12 203(D).
13 "PARTY OFFICER." THE FOLLOWING MEMBERS OR OFFICERS OF ANY
14 POLITICAL PARTY:
15 (1) A MEMBER OF A NATIONAL COMMITTEE;
16 (2) A CHAIRMAN, VICE CHAIRMAN, SECRETARY, TREASURER OR
17 COUNSEL OF A STATE COMMITTEE OR MEMBER OF THE EXECUTIVE
18 COMMITTEE OF A STATE COMMITTEE;
19 (3) A COUNTY CHAIRMAN, VICE CHAIRMAN, COUNSEL, SECRETARY
20 OR TREASURER OF A COUNTY COMMITTEE; OR
21 (4) A CHAIRMAN, VICE CHAIRMAN, COUNSEL, SECRETARY,
22 TREASURER OR WARD LEADER OF A CITY OR MUNICIPAL COMMITTEE.
23 "PUBLIC OFFICIAL." ANY ELECTED OR APPOINTED OFFICIAL OR
24 EMPLOYEE IN THE EXECUTIVE, LEGISLATIVE OR JUDICIAL BRANCH OF THE
25 COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF, PROVIDED THAT
26 IT SHALL NOT INCLUDE MEMBERS OF ADVISORY BOARDS THAT HAVE NO
27 AUTHORITY TO EXPEND PUBLIC FUNDS OTHER THAN REIMBURSEMENT FOR
28 PERSONAL EXPENSE OR TO OTHERWISE EXERCISE THE POWER OF THE
29 COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF. THE TERM
30 SHALL NOT INCLUDE ANY APPOINTED OFFICIAL WHO RECEIVES NO
20030H2006B3291 - 49 -
1 COMPENSATION OTHER THAN REIMBURSEMENT FOR ACTUAL EXPENSES.
2 CHAPTER 2
3 INTERGOVERNMENTAL COOPERATION AUTHORITY FOR
4 CITIES OF THE SECOND CLASS
5 SECTION 201. AUTHORITY ESTABLISHED.
6 A BODY CORPORATE AND POLITIC TO BE KNOWN AS THE
7 INTERGOVERNMENTAL COOPERATION AUTHORITY FOR CITIES OF THE SECOND
8 CLASS IS ESTABLISHED AS A PUBLIC AUTHORITY AND INSTRUMENTALITY
9 OF THE COMMONWEALTH, EXERCISING PUBLIC POWERS OF THE
10 COMMONWEALTH AS AN AGENCY AND INSTRUMENTALITY THEREOF. THE
11 EXERCISE BY THE AUTHORITY OF THE POWERS CONFERRED BY THIS ACT IS
12 HEREBY DECLARED TO BE AND SHALL FOR ALL PURPOSES BE DEEMED AND
13 HELD TO BE THE PERFORMANCE OF AN ESSENTIAL PUBLIC FUNCTION.
14 SECTION 202. GOVERNING BOARD.
15 (A) COMPOSITION OF BOARD.--
16 (1) THE POWERS AND DUTIES OF THE AUTHORITY SHALL BE
17 EXERCISED BY A GOVERNING BOARD COMPOSED OF FIVE MEMBERS:
18 (I) ONE MEMBER SHALL BE APPOINTED BY THE PRESIDENT
19 PRO TEMPORE OF THE SENATE.
20 (II) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY
21 LEADER OF THE SENATE.
22 (III) ONE MEMBER SHALL BE APPOINTED BY THE SPEAKER
23 OF THE HOUSE OF REPRESENTATIVES.
24 (IV) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY
25 LEADER OF THE HOUSE OF REPRESENTATIVES.
26 (V) ONE MEMBER SHALL BE APPOINTED BY THE GOVERNOR.
27 (VI) THE SECRETARY OF THE BUDGET AND THE DIRECTOR OF
28 FINANCE OF EACH ASSISTED CITY SHALL SERVE AS EX OFFICIO
29 MEMBERS OF THE BOARD. THE BOARD AND ANY APPOINTED
30 COORDINATOR SHALL COOPERATE IN THE SHARING OF REPORTS,
20030H2006B3291 - 50 -
1 INFORMATION AND RECOMMENDATIONS WITH REGARD TO THE
2 ASSISTED CITY. THE EX OFFICIO MEMBERS MAY NOT VOTE AND
3 SHALL NOT BE COUNTED FOR PURPOSES OF ESTABLISHING A
4 QUORUM. THE SECRETARY OF THE BUDGET AND THE DIRECTOR OF
5 FINANCE OF EACH ASSISTED CITY MAY DESIGNATE IN WRITING A
6 REPRESENTATIVE OF THEIR RESPECTIVE OFFICES TO ATTEND
7 MEETINGS OF THE BOARD ON THEIR BEHALF.
8 (2) ALL MEMBERS AND DESIGNEES MUST HAVE SUBSTANTIAL
9 EXPERIENCE IN FINANCE OR MANAGEMENT.
10 (3) ALL MEMBERS OF THE BOARD MUST BE RESIDENTS OF THIS
11 COMMONWEALTH AND, EXCEPT THE SECRETARY OF THE BUDGET, MUST
12 EITHER BE RESIDENTS OF THE ASSISTED CITY OR HAVE THEIR
13 PRIMARY PLACES OF BUSINESS OR EMPLOYMENT IN THAT CITY.
14 (B) TERM.--APPOINTING AUTHORITIES SHALL APPOINT THE INITIAL
15 MEMBERS OF THE BOARD WITHIN SEVEN DAYS OF THE EFFECTIVE DATE OF
16 THIS ACT, AND THE APPOINTED MEMBERS SHALL SELECT A CHAIRPERSON
17 FROM AMONG THEMSELVES AT THE INITIAL ORGANIZATIONAL MEETING OF
18 THE BOARD AND UPON ANY SUBSEQUENT VACANCY IN THE OFFICE OF
19 CHAIRPERSON. THE TERM OF A BOARD MEMBER SHALL BEGIN ON THE DATE
20 OF THE APPOINTMENT. A MEMBER'S TERM SHALL BE COTERMINOUS WITH
21 THAT OF THE APPOINTING AUTHORITY. THE MEMBER SELECTED AS
22 CHAIRPERSON SHALL SERVE IN THAT CAPACITY FOR TWO YEARS FROM THE
23 DATE OF SELECTION OR FOR THE DURATION OF HIS TERM ON THE BOARD,
24 WHICHEVER IS LESS, AND MAY BE REELECTED TO SUBSEQUENT TWO-YEAR
25 TERMS. AN APPOINTED BOARD MEMBER SHALL SERVE AT THE PLEASURE OF
26 THE MEMBER'S APPOINTING AUTHORITY. WHENEVER A VACANCY OCCURS
27 AMONG THE APPOINTED MEMBERS ON THE BOARD, WHETHER PRIOR TO OR ON
28 THE EXPIRATION OF A TERM, THE APPOINTING AUTHORITY WHO
29 ORIGINALLY APPOINTED THE BOARD MEMBER WHOSE SEAT HAS BECOME
30 VACANT SHALL APPOINT A SUCCESSOR MEMBER WITHIN 30 DAYS OF THE
20030H2006B3291 - 51 -
1 VACANCY. A MEMBER APPOINTED BY AN APPOINTING AUTHORITY TO FILL A
2 VACANCY OCCURRING PRIOR TO THE EXPIRATION OF A TERM SHALL SERVE
3 THE UNEXPIRED TERM.
4 (C) ORGANIZATION.--THE APPOINTEES OF THE PRESIDENT PRO
5 TEMPORE OF THE SENATE AND THE SPEAKER OF THE HOUSE OF
6 REPRESENTATIVES SHALL SET A DATE, TIME AND PLACE FOR THE INITIAL
7 ORGANIZATIONAL MEETING OF THE BOARD WITHIN FIVE DAYS OF THE
8 APPOINTMENT OF THE INITIAL MEMBERS OF THE BOARD. THE INITIAL
9 ORGANIZATIONAL MEETING SHALL BE HELD WITHIN 15 DAYS OF THE
10 EFFECTIVE DATE OF THIS ACT. IN ADDITION TO CHAIRPERSON, THE
11 MEMBERS SHALL ELECT SUCH OTHER OFFICERS AS THEY MAY DETERMINE. A
12 MEMBER MAY HOLD MORE THAN ONE OFFICE OF THE BOARD AT ANY TIME.
13 (D) MEETINGS.--AFTER THE INITIAL ORGANIZATIONAL MEETING, THE
14 BOARD SHALL MEET AS FREQUENTLY AS IT DEEMS APPROPRIATE BUT AT
15 LEAST ONCE DURING EACH QUARTER OF THE FISCAL YEAR. IN ADDITION,
16 A MEETING OF THE BOARD SHALL BE CALLED BY THE CHAIRPERSON IF A
17 REQUEST FOR A MEETING IS SUBMITTED TO THE CHAIRPERSON BY AT
18 LEAST TWO MEMBERS OF THE BOARD. A MAJORITY OF THE BOARD SHALL
19 CONSTITUTE A QUORUM FOR THE PURPOSE OF CONDUCTING THE BUSINESS
20 OF THE BOARD AND FOR ALL OTHER PURPOSES. ALL ACTIONS OF THE
21 BOARD SHALL BE TAKEN BY A MAJORITY OF THE BOARD, EXCEPT AS
22 OTHERWISE SPECIFICALLY NOTED. THE PROVISIONS OF 65 PA.C.S. CH. 7
23 (RELATING TO OPEN MEETINGS) SHALL APPLY TO THE BOARD.
24 (E) EXPENSES.--A MEMBER SHALL NOT RECEIVE COMPENSATION OR
25 REMUNERATION, BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR ALL
26 REASONABLE AND NECESSARY ACTUAL EXPENSES.
27 (F) EMPLOYEES AND AGENTS.--THE BOARD SHALL FIX AND DETERMINE
28 THE NUMBER OF EMPLOYEES OF THE AUTHORITY AND THEIR RESPECTIVE
29 COMPENSATION AND DUTIES. THE BOARD MAY CONTRACT FOR OR RECEIVE
30 THE LOAN OF SERVICES OF PERSONS IN THE EMPLOY OF OTHER
20030H2006B3291 - 52 -
1 GOVERNMENT AGENCIES, AND OTHER GOVERNMENT AGENCIES SHALL BE
2 AUTHORIZED TO MAKE SUCH EMPLOYEES AVAILABLE. THE BOARD MAY
3 RETAIN AN EXECUTIVE DIRECTOR UPON A MAJORITY VOTE. THE BOARD
4 MAY, BY A MAJORITY VOTE, HIRE AN INDEPENDENT GENERAL COUNSEL TO
5 THE AUTHORITY AND MAY ENGAGE CONSULTANTS AND CONTRACT FOR OTHER
6 PROFESSIONAL SERVICES UPON A MAJORITY VOTE. THE BOARD MAY, UPON
7 THE APPROVAL OF A MAJORITY, DELEGATE TO THE EXECUTIVE DIRECTOR
8 SUCH POWERS OF THE BOARD AS THE BOARD DEEMS NECESSARY TO CARRY
9 OUT THE PURPOSES OF THE AUTHORITY, SUBJECT IN EVERY CASE TO THE
10 SUPERVISION AND CONTROL OF THE BOARD.
11 (G) PUBLIC OFFICIALS AND PARTY OFFICERS; CONFLICTS OF
12 INTEREST PROHIBITED.--
13 (1) EXCEPT FOR THE SECRETARY OF THE BUDGET, NEITHER
14 MEMBERS OF THE BOARD NOR THE EXECUTIVE DIRECTOR SHALL SEEK OR
15 HOLD A POSITION AS ANY OTHER PUBLIC OFFICIAL WITHIN THIS
16 COMMONWEALTH OR AS A PARTY OFFICER WHILE IN THE SERVICE OF
17 THE AUTHORITY. MEMBERS OF THE BOARD AND THE EXECUTIVE
18 DIRECTOR SHALL NOT SEEK ELECTION AS PUBLIC OFFICIALS OR PARTY
19 OFFICERS FOR ONE YEAR AFTER THEIR SERVICE WITH THE AUTHORITY.
20 MEMBERS OF THE BOARD AND THE EXECUTIVE DIRECTOR MAY SERVE AS
21 APPOINTIVE PUBLIC OFFICIALS ANY TIME AFTER THEIR PERIODS OF
22 SERVICE WITH THE AUTHORITY.
23 (2) EMPLOYEES AND AGENTS OF THE AUTHORITY SHALL NOT SEEK
24 OR HOLD OTHER POSITIONS AS PUBLIC OFFICIALS OR PARTY OFFICERS
25 WHILE IN THE EMPLOY OF THE AUTHORITY. THE AUTHORITY MAY
26 RECEIVE THE LOAN OF SERVICES OF PERSONS IN OTHER GOVERNMENT
27 AGENCIES IN ACCORDANCE WITH SUBSECTION (F), NOTWITHSTANDING
28 THAT SUCH PERSONS ARE PUBLIC OFFICIALS. EMPLOYEES OF THE
29 AUTHORITY SHALL NOT SEEK ELECTION AS PUBLIC OFFICIALS OR
30 PARTY OFFICERS FOR ONE YEAR AFTER LEAVING THE EMPLOY OF THE
20030H2006B3291 - 53 -
1 AUTHORITY.
2 (3) NO MEMBER OF THE BOARD OR EMPLOYEE OF THE AUTHORITY
3 MAY DIRECTLY OR INDIRECTLY BE A PARTY TO OR BE INTERESTED IN
4 ANY CONTRACT OR AGREEMENT WITH THE AUTHORITY OR WITH THE
5 ASSISTED CITY. NO MEMBER OR EMPLOYEE MAY USE HIS OFFICE OR
6 EMPLOYMENT OR ANY CONFIDENTIAL INFORMATION RECEIVED THROUGH
7 HIS OFFICE OR EMPLOYMENT FOR THE PRIVATE PECUNIARY BENEFIT OF
8 HIMSELF, A MEMBER OF HIS IMMEDIATE FAMILY, OR A BUSINESS WITH
9 WHICH HE OR A MEMBER OF HIS IMMEDIATE FAMILY IS ASSOCIATED.
10 ANY MEMBER OR EMPLOYEE WHO SHALL WILLFULLY VIOLATE THIS
11 PROVISION SHALL FORFEIT HIS OFFICE OR EMPLOYMENT AND SHALL BE
12 SUBJECT TO SUCH OTHER CRIMINAL AND CIVIL SANCTIONS AS MAY BE
13 IMPOSED BY LAW. ANY CONTRACT OR AGREEMENT KNOWINGLY MADE IN
14 CONTRAVENTION OF THIS PROVISION IS VOID.
15 (H) STATUTES APPLYING TO AUTHORITY.--
16 (1) THE PROVISIONS OF THE FOLLOWING ACTS SHALL APPLY TO
17 THE AUTHORITY:
18 (I) 65 PA.C.S. CH. 7 (RELATING TO OPEN MEETINGS).
19 (II) THE ACT OF JUNE 21, 1957 (P.L.390, NO.212),
20 REFERRED TO AS THE RIGHT-TO-KNOW LAW.
21 (III) EXCEPT AS SET FORTH IN PARAGRAPH (2), THE ACT
22 OF JULY 19, 1957 (P.L.1017, NO.451), KNOWN AS THE STATE
23 ADVERSE INTEREST ACT.
24 (IV) THE ACT OF OCTOBER 4, 1978 (P.L.883, NO.170),
25 REFERRED TO AS THE PUBLIC OFFICIAL AND EMPLOYEE ETHICS
26 LAW.
27 (2) NOTWITHSTANDING THE PROVISIONS OF THE STATE ADVERSE
28 INTEREST ACT, THE SECRETARY OF THE BUDGET AND THE DIRECTOR OF
29 FINANCE OF EACH ASSISTED CITY SHALL, WHILE SERVING AS EX
30 OFFICIO MEMBERS OF THE BOARD, ALSO SERVE IN THEIR OFFICIAL
20030H2006B3291 - 54 -
1 CAPACITIES WITH RESPECT TO THE NEGOTIATION AND EXECUTION OF
2 INTERGOVERNMENTAL COOPERATION AGREEMENTS AND OTHER AGREEMENTS
3 BETWEEN AN ASSISTED CITY AND THE AUTHORITY.
4 (I) ADVISORY COMMITTEE.--
5 (1) THE BOARD MAY APPOINT BY MAJORITY VOTE ONE ADVISORY
6 COMMITTEE COMPRISED OF PROFESSIONALS ENGAGED IN MUNICIPAL
7 MANAGEMENT AND FINANCE OR OTHER EXPERTS AS IT MAY DEEM
8 NECESSARY. THE MEMBERS OF AN ADVISORY COMMITTEE SHALL RESIDE
9 WITHIN AN ASSISTED CITY OR A COUNTY WITHIN THE STATISTICAL
10 METROPOLITAN AREA IN WHICH THE ASSISTED CITY IS LOCATED.
11 (2) THE PROVISIONS OF SUBSECTION (G) SHALL BE APPLICABLE
12 TO MEMBERS OF AN ADVISORY COMMITTEE; HOWEVER, THE BOARD MAY
13 ALLOW CITY COUNCIL TO DESIGNATE A LIAISON FROM CITY COUNCIL
14 TO SERVE ON AN ADVISORY COMMITTEE.
15 (3) THE ADVISORY COMMITTEE SHALL CONSIST OF NO MORE THAN
16 SIX MEMBERS, EXCLUDING ANY COUNCIL LIAISON.
17 SECTION 203. POWERS AND DUTIES.
18 (A) GENERAL POWERS AND DUTIES.--THE AUTHORITY IS ESTABLISHED
19 FOR THE PURPOSES, WITHOUT LIMITATION, BY ITSELF OR BY AGREEMENT
20 IN COOPERATION WITH OTHERS, OF ASSISTING CITIES IN SOLVING THEIR
21 BUDGETARY AND FINANCIAL PROBLEMS.
22 (B) SPECIFIC DUTIES.--THE AUTHORITY SHALL HAVE THE POWERS
23 AND ITS DUTIES SHALL BE:
24 (1) TO ASSIST CITIES IN ACHIEVING FINANCIAL STABILITY IN
25 ANY MANNER CONSISTENT WITH THE PURPOSES AND POWERS DESCRIBED
26 BY THIS ACT.
27 (2) TO ASSIST CITIES IN AVOIDING DEFAULTS, ELIMINATING
28 AND FINANCING DEFICITS AND DEBTS, MAINTAINING SOUND BUDGETARY
29 PRACTICES AND AVOIDING THE INTERRUPTION OF MUNICIPAL
30 SERVICES.
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1 (3) TO NEGOTIATE INTERGOVERNMENTAL COOPERATION
2 AGREEMENTS WITH CITIES CONTAINING SUCH TERMS AND CONDITIONS
3 AS WILL ENABLE SUCH CITIES TO ELIMINATE AND AVOID DEFICITS,
4 MAINTAIN SOUND BUDGETARY PRACTICES AND AVOID INTERRUPTION OF
5 MUNICIPAL SERVICES.
6 (4) TO MAKE ANNUAL SIGNED REPORTS WITHIN 120 DAYS AFTER
7 THE CLOSE OF THE ASSISTED CITY'S FISCAL YEAR, COMMENCING WITH
8 THE FISCAL YEAR ENDING DECEMBER 31, 2003, TO THE GOVERNOR AND
9 THE GENERAL ASSEMBLY DESCRIBING THE CITY'S FINANCIAL
10 CONDITION AND THE AUTHORITY'S PROGRESS WITH RESPECT TO
11 RESTORING THE FINANCIAL STABILITY OF ASSISTED CITIES AND
12 ACHIEVING BALANCED BUDGETS FOR ASSISTED CITIES. SUCH REPORTS
13 SHALL BE FILED WITH THE GOVERNOR, WITH THE PRESIDING OFFICERS
14 OF THE SENATE AND THE HOUSE OF REPRESENTATIVES, WITH THE
15 CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS
16 COMMITTEE OF THE SENATE AND THE CHAIRPERSON AND THE MINORITY
17 CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF
18 REPRESENTATIVES AND WITH THE GOVERNING BODY, MAYOR AND
19 CONTROLLER OF THE ASSISTED CITY AND BE PUBLICLY AVAILABLE IN
20 THE ASSISTED CITY DURING NORMAL BUSINESS HOURS FOR PUBLIC
21 INSPECTION, AND MAY BE REPRODUCED BY ANY MEMBER OF THE PUBLIC
22 AT COMMERCIAL COSTS OF REPRODUCTION. SUCH REPORT SHALL
23 CLEARLY SHOW BY CONSISTENT CATEGORY THE LAST FIVE YEARS OF
24 OPERATING REVENUES AND EXPENDITURES, CAPITAL EXPENDITURES,
25 GROSS AND NET INDEBTEDNESS TRANSACTIONS, INCLUDING A SCHEDULE
26 OF PRINCIPAL AND INTEREST, FIVE-YEAR PROJECTIONS OF THE
27 ASSISTED CITY'S OPERATING AND CAPITAL BUDGETS, AND THE ENTIRE
28 PROJECTED INDEBTEDNESS TRANSACTIONS, INCLUDING A SCHEDULE OF
29 PRINCIPAL AND INTEREST OF SUCH INDEBTEDNESS UNTIL ANY AND ALL
30 DEBT HAS BEEN COMPLETELY RETIRED. SUCH REPORT SHALL CONTAIN A
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1 NARRATIVE EXPLAINING PROGRESS OF THE ASSISTED CITY IN MEETING
2 ITS ANNUAL AND FIVE-YEAR BUDGETARY OBJECTIVES, AN APPRAISAL
3 BY THE AUTHORITY OF THE PROGRESS THE ASSISTED CITY IS MAKING
4 TO ACHIEVE ITS GOALS, AND AN APPRAISAL OF THE EXTENT TO WHICH
5 THE ASSISTED CITY IS MAKING A GOOD FAITH EFFORT TO ACHIEVE
6 ITS GOALS. SUCH REPORT SHALL DISCLOSE ANY VIOLATIONS OF
7 FEDERAL AND STATE LAW THAT THE AUTHORITY MAY HAVE DISCOVERED.
8 SUCH REPORT SHALL INCLUDE AS APPENDIXES ALL HISTORICAL LOANS
9 OR OTHER CONTRACTS ENTERED INTO BY THE ASSISTED CITY AND ITS
10 AUTHORITIES.
11 (C) SPECIFIC POWERS.--IN ADDITION TO THE POWERS AND DUTIES
12 SET FORTH ELSEWHERE IN THIS ACT, THE AUTHORITY SHALL HAVE THE
13 SPECIFIC POWERS:
14 (1) TO OBTAIN COPIES OF ALL REPORTS AND DOCUMENTS
15 REGARDING THE REVENUES, EXPENDITURES, BUDGETS, DEFICITS,
16 DEBTS, COSTS, PLANS, OPERATIONS, ESTIMATES AND ANY OTHER
17 FINANCIAL OR BUDGETARY MATTERS OF AN ASSISTED CITY.
18 (2) TO OBTAIN ADDITIONAL REPORTS AND INFORMATION ON THE
19 ABOVE MATTERS IN SUCH FORM AS ARE DEEMED NECESSARY BY THE
20 AUTHORITY.
21 (3) TO MAKE FACTUAL FINDINGS CONCERNING AN ASSISTED
22 CITY'S BUDGETARY AND FISCAL AFFAIRS.
23 (4) TO MAKE RECOMMENDATIONS TO AN ASSISTED CITY AND THE
24 GENERAL ASSEMBLY CONCERNING THE BUDGETARY AND FISCAL AFFAIRS
25 OF THE ASSISTED CITY, WHICH SHALL INCLUDE CONSIDERATION OF
26 THE FOLLOWING ISSUES AND OTHER ISSUES AT THE DISCRETION OF
27 THE AUTHORITY:
28 (I) CONSOLIDATION OR MERGER OF SERVICES PERFORMED BY
29 AN ASSISTED CITY, SCHOOL, COUNTY OR OTHER SURROUNDING
30 MUNICIPALITY.
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1 (II) CONSOLIDATION OF PUBLIC SAFETY SERVICES.
2 (III) APPROPRIATE STAFFING LEVELS OF CITY
3 DEPARTMENTS AND CORPORATE ENTITIES.
4 (IV) COOPERATIVE AGREEMENTS OR CONTRACTUAL
5 ARRANGEMENTS BETWEEN HEALTH CARE FACILITIES LICENSED BY
6 THE DEPARTMENT OF HEALTH.
7 (V) FINANCIAL OR CONTRACTUAL OBLIGATIONS OF THE
8 ASSISTED CITY.
9 (VI) CONTRIBUTIONS OF NONPROFIT OR CHARITABLE
10 ORGANIZATIONS WHICH RECEIVE THE BENEFIT OF MUNICIPAL
11 SERVICES PROVIDED BY THE ASSISTED CITY.
12 (VII) REDUCTION OR RESTRUCTURING OF DEBT
13 OBLIGATIONS.
14 (VIII) COOPERATIVE AGREEMENTS BETWEEN THE ASSISTED
15 CITY AND THE COUNTY IN WHICH IT IS LOCATED OR
16 MUNICIPALITIES WHICH BORDER THE ASSISTED CITY.
17 (IX) COOPERATIVE AGREEMENTS BETWEEN THE ASSISTED
18 CITY AND THE SCHOOL DISTRICT IN WHICH IT IS LOCATED.
19 (X) COLLECTIVE BARGAINING AGREEMENTS AND OTHER
20 CONTRACTS OF THE ASSISTED CITY.
21 (XI) ELIMINATION, SALE OR TRANSFER OF ASSISTED CITY
22 SERVICES OR PROPERTY.
23 (XII) IMPLEMENTATION OF COST-SAVING MEASURES BY THE
24 ASSISTED CITY.
25 (XIII) INCREASED MANAGERIAL ACCOUNTABILITY.
26 (XIV) PERFORMANCE OF GOVERNMENT OPERATIONS AND
27 DELIVERY OF MUNICIPAL SERVICES.
28 (XV) REEVALUATION OF TAX-EXEMPTION POLICIES AND
29 PRACTICES WITH REGARD TO REAL PROPERTY TAXATION WITHIN
30 THE ASSISTED CITY.
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1 (XVI) IMPROVEMENTS IN PROCUREMENT PRACTICES.
2 (XVII) IMPLEMENTATION OF USER FEES FOR SERVICES,
3 INCLUDING SEWAGE, WATER TREATMENT AND REFUSE COLLECTION.
4 (XVIII) PRIVATIZATION AND OUTSOURCING OF APPROPRIATE
5 ASSISTED CITY SERVICES.
6 (XIX) INCREASED COLLECTION OF FINES AND COSTS
7 RELATING TO PARKING VIOLATIONS OR VIOLATIONS OF OTHER
8 CITY ORDINANCES.
9 (XX) COMPETITIVE BIDDING OF APPROPRIATE ASSISTED
10 CITY SERVICES, AND COMPETITIVE BIDDING PRACTICES.
11 (XXI) THE USE OF TECHNOLOGY TO ACHIEVE COST SAVINGS.
12 (XXII) A STUDY OF HEALTH CARE AND OTHER BENEFITS
13 OFFERED BY THE ASSISTED CITY TO ITS EMPLOYEES.
14 (XXIII) THE SALE OF THE ASSISTED CITY'S WORKER'S
15 COMPENSATION FUND.
16 (XXIV) THE SALE OF UNENCUMBERED ASSETS OF THE
17 ASSISTED CITY OR ITS AUTHORITIES.
18 (XXV) THE ELIMINATION OR REORGANIZATION OF
19 AUTHORITIES OR DEPARTMENTS.
20 (XXVI) THE USE BY THE ASSISTED CITY OF TAX AND OTHER
21 REVENUES RECEIVED, INCLUDING THOSE RECEIVED UNDER THE ACT
22 OF JULY 28, 1953 (P.L.723, NO.230), KNOWN AS THE SECOND
23 CLASS COUNTY CODE, AND THE PROPER USE OF SUCH REVENUES.
24 (XXVII) THE USE OF BUDGETARY PRACTICES AND
25 PRINCIPLES AS THEY RELATE TO FORECASTING, PUBLIC
26 OPENNESS, PROJECTIONS, ESTIMATES, TAX POLICY, LENDING,
27 BORROWING AND STRATEGIC PLANNING.
28 (XXVIII) THE TRANSFERS OF EMPLOYEES AND ASSETS BY
29 AND BETWEEN BUREAUS, DEPARTMENTS AND AUTHORITIES OF THE
30 ASSISTED CITY.
20030H2006B3291 - 59 -
1 (XXIX) PRIOR SUGGESTIONS PUBLISHED BY OTHERS PRIOR
2 TO THE ENACTMENT OF THIS ACT WITH REGARD TO THE ASSISTED
3 CITY.
4 (XXX) A REVIEW OF THE TAXING AUTHORITY OF THE CITY AS
5 COMPARED WITH THE TAXING AUTHORITY OF SCHOOL DISTRICTS OF
6 THE FIRST CLASS A.
7 (XXXI) A REVIEW OF THE RATIO OF DEBT SERVICE TO
8 GENERAL FUND OUTLAYS OF THE ASSISTED CITY, THE
9 APPROPRIATE RATIO AND THE MEANS TO ACHIEVE IT.
10 (XXXII) A REVIEW OF OUTSTANDING DEBT, DEBT PAYMENTS
11 AND THE ABILITY TO PREPAY SUCH DEBT.
12 (5) TO MAKE RECOMMENDATIONS TO THE GOVERNOR AND THE
13 GENERAL ASSEMBLY REGARDING LEGISLATION OR RESOLUTIONS WHICH
14 RELATE TO AN ASSISTED CITY'S FISCAL STABILITY. THE AUTHORITY
15 SHALL SUBMIT A PRELIMINARY REPORT OF THE RECOMMENDATIONS TO
16 THE GOVERNOR AND THE GENERAL ASSEMBLY WITHIN 60 DAYS OF THE
17 EFFECTIVE DATE OF THIS ACT. THE REPORT SHALL INCLUDE, BUT NOT
18 BE LIMITED TO, RECOMMENDATIONS AS TO WHETHER OR NOT THE CITY
19 NEEDS ADDITIONAL REVENUES, THE BEST SOURCES OF SUCH REVENUES
20 AND WAYS FOR THE CITY TO REDUCE EXPENDITURES. ANY
21 RECOMMENDATIONS FOR NEW REVENUE, IF WARRANTED, SHALL STATE
22 WHETHER SUCH REVENUES SHOULD BE EARMARKED FOR SPECIFIC
23 EXPENDITURES, INCLUDING BUT NOT LIMITED TO PREPAYMENT OF
24 DEBT, AND WHETHER SUCH REVENUES SHOULD BE SUBJECT TO SUNSET
25 PROVISIONS.
26 (6) TO EXERCISE POWERS OF REVIEW CONCERNING THE
27 BUDGETARY AND FISCAL AFFAIRS OF THE ASSISTED CITY CONSISTENT
28 WITH THIS ACT AND THE CITY'S HOME RULE CHARTER OR OTHER
29 OPTIONAL PLAN OF GOVERNMENT.
30 (7) TO RECEIVE REVENUES FROM ANY SOURCE, DIRECTLY OR BY
20030H2006B3291 - 60 -
1 ASSIGNMENT, PLEDGE OR OTHERWISE.
2 (8) TO SUE AND BE SUED, IMPLEAD AND BE IMPLEADED,
3 INTERPLEAD, COMPLAIN AND DEFEND IN ALL COURTS.
4 (9) TO ADOPT, USE AND ALTER AT WILL A CORPORATE SEAL.
5 (10) TO MAKE BYLAWS FOR THE MANAGEMENT AND REGULATION OF
6 ITS AFFAIRS AND ADOPT RULES, REGULATIONS AND POLICIES IN
7 CONNECTION WITH THE PERFORMANCE OF ITS FUNCTIONS AND DUTIES
8 WHICH, NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE
9 CONTRARY, SHALL NOT BE SUBJECT TO REVIEW PURSUANT TO THE ACT
10 OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY
11 REVIEW ACT.
12 (11) TO MAKE AND ENTER INTO CONTRACTS AND OTHER
13 INSTRUMENTS NECESSARY OR CONVENIENT FOR THE CONDUCT OF ITS
14 BUSINESS AND THE EXERCISE OF THE POWERS OF THE AUTHORITY.
15 (12) TO APPOINT OFFICERS, AGENTS, EMPLOYEES AND SERVANTS
16 AND TO PRESCRIBE THEIR DUTIES AND TO FIX THEIR COMPENSATION
17 AS SET FORTH IN SECTION 202(F).
18 (13) TO RETAIN COUNSEL AND AUDITORS TO RENDER SUCH
19 PROFESSIONAL SERVICES AS THE AUTHORITY DEEMS APPROPRIATE. THE
20 AUTHORITY SHALL NOT BE CONSIDERED EITHER AN EXECUTIVE AGENCY
21 OR AN INDEPENDENT AGENCY FOR THE PURPOSE OF THE ACT OF
22 OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH
23 ATTORNEYS ACT, BUT SHALL POSSESS THE SAME STATUS FOR SUCH
24 PURPOSE AS THE AUDITOR GENERAL, STATE TREASURER AND THE
25 PENNSYLVANIA PUBLIC UTILITY COMMISSION, EXCEPT THAT THE
26 PROVISIONS OF SECTION 204(B) AND (F) OF THE COMMONWEALTH
27 ATTORNEYS ACT SHALL NOT APPLY TO THE AUTHORITY;
28 NOTWITHSTANDING 42 PA.C.S. CH. 85 (RELATING TO MATTERS
29 AFFECTING GOVERNMENT UNITS), THE AUTHORITY, THROUGH ITS LEGAL
30 COUNSEL, SHALL DEFEND ACTIONS BROUGHT AGAINST THE AUTHORITY
20030H2006B3291 - 61 -
1 OR ITS MEMBERS, OFFICERS, OFFICIALS AND EMPLOYEES WHEN ACTING
2 WITHIN THE SCOPE OF THEIR OFFICIAL DUTIES.
3 (14) TO COOPERATE WITH ANY FEDERAL AGENCY OR GOVERNMENT
4 AGENCY.
5 (15) TO ACQUIRE, BY GIFT OR OTHERWISE, PURCHASE, HOLD,
6 RECEIVE, LEASE, SUBLEASE AND USE ANY FRANCHISE, LICENSE,
7 PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE OR
8 ANY INTEREST THEREIN. HOWEVER, THE AUTHORITY SHALL BE
9 ABSOLUTELY LIMITED IN ITS POWER TO ACQUIRE REAL PROPERTY
10 UNDER THIS ACT TO REAL PROPERTY THAT WILL BE USED ONLY FOR
11 THE OFFICE SPACE IN WHICH THE AUTHORITY WILL CONDUCT ITS
12 DAILY BUSINESS IF NECESSARY. IF POSSIBLE, AN ASSISTED CITY
13 SHALL PROVIDE OFFICE SPACE TO THE AUTHORITY AT NO COST TO THE
14 AUTHORITY AS PART OF AN INTERGOVERNMENTAL COOPERATION
15 AGREEMENT.
16 (16) TO SELL, TRANSFER, CONVEY AND DISPOSE OF ANY
17 PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE OR
18 ANY INTEREST THEREIN.
19 (17) TO ENTER INTO CONTRACTS FOR GROUP INSURANCE AND TO
20 CONTRIBUTE TO RETIREMENT PLANS FOR THE BENEFIT OF ITS
21 EMPLOYEES AND TO ENROLL ITS EMPLOYEES IN AN EXISTING
22 RETIREMENT SYSTEM OF A GOVERNMENT AGENCY.
23 (18) TO ACCEPT, PURCHASE OR BORROW EQUIPMENT, SUPPLIES,
24 SERVICES OR OTHER THINGS NECESSARY OR CONVENIENT TO THE WORK
25 OF THE AUTHORITY FROM OTHER GOVERNMENT AGENCIES, AND ALL
26 GOVERNMENT AGENCIES ARE AUTHORIZED TO SELL, LEND OR GRANT TO
27 THE AUTHORITY SUCH EQUIPMENT, SUPPLIES, SERVICES OR OTHER
28 THINGS NECESSARY OR CONVENIENT TO THE WORK OF THE AUTHORITY.
29 (19) TO INVEST ANY FUNDS HELD BY THE AUTHORITY AS SET
30 FORTH IN SECTION 212.
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1 (20) TO RECEIVE AND HOLD ASSETS, MONEYS AND FUNDS FROM
2 ANY SOURCE, INCLUDING, BUT NOT LIMITED TO, APPROPRIATIONS,
3 GRANTS, GIFTS.
4 (21) TO PROCURE INSURANCE, GUARANTEES AND SURETIES THE
5 AUTHORITY DETERMINES NECESSARY OR DESIRABLE FOR ITS PURPOSES.
6 (22) TO PLEDGE THE CREDIT OF THE AUTHORITY AS THE
7 AUTHORITY DETERMINES NECESSARY OR DESIRABLE FOR ITS PURPOSES.
8 (23) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT
9 FOR THE PROMOTION OF ITS PURPOSES AND THE GENERAL WELFARE OF
10 THE AUTHORITY AND TO CARRY OUT THE POWERS GRANTED TO IT BY
11 THIS ACT OR ANY OTHER ACTS.
12 (D) INTERGOVERNMENTAL COOPERATION AGREEMENTS.--THE AUTHORITY
13 SHALL HAVE THE POWER AND ITS DUTY SHALL BE TO ENTER INTO AND TO
14 IMPLEMENT FULLY SUCH INTERGOVERNMENTAL COOPERATION AGREEMENTS
15 WITH CITIES AS ARE APPROVED BY A MAJORITY OF THE BOARD. THE
16 FOLLOWING SHALL APPLY:
17 (1) A CITY MAY ENTER INTO AN INTERGOVERNMENTAL
18 COOPERATION AGREEMENT IN WHICH IT, CONSISTENT WITH THIS ACT,
19 COVENANTS TO COOPERATE OR AGREE IN THE EXERCISE OF ANY
20 FUNCTION, POWER OR RESPONSIBILITY WITH, OR DELEGATE OR
21 TRANSFER ANY FUNCTION, POWER OR RESPONSIBILITY TO, THE
22 AUTHORITY UPON THE ADOPTION BY THE GOVERNING BODY OF SUCH
23 CITY OF AN ORDINANCE AUTHORIZING AND APPROVING THE
24 INTERGOVERNMENTAL COOPERATION AGREEMENT.
25 (2) AN ORDINANCE THAT AUTHORIZES A CITY TO ENTER INTO AN
26 INTERGOVERNMENTAL COOPERATION AGREEMENT WITH THE AUTHORITY
27 SHALL SPECIFY:
28 (I) THE PURPOSE AND OBJECTIVES OF THE AGREEMENT;
29 (II) THE CONDITIONS OF THE AGREEMENT; AND
30 (III) THE TERM OF THE AGREEMENT, INCLUDING
20030H2006B3291 - 63 -
1 PROVISIONS RELATING TO ITS TERMINATION.
2 (E) LIMITATION.--NOTWITHSTANDING ANY PURPOSE OR GENERAL OR
3 SPECIFIC POWER GRANTED BY THIS ACT OR ANY OTHER ACT, WHETHER
4 EXPRESS OR IMPLIED, THE AUTHORITY SHALL HAVE NO POWER TO PLEDGE
5 THE CREDIT OR TAXING POWERS OF THE COMMONWEALTH.
6 SECTION 204. TERM OF EXISTENCE.
7 THE AUTHORITY SHALL EXIST FOR A TERM OF AT LEAST SEVEN YEARS.
8 IF, AFTER SEVEN YEARS, AN ASSISTED CITY HAS HAD ANNUAL OPERATING
9 BUDGETS AND FIVE-YEAR FINANCIAL PLANS APPROVED BY THE BOARD FOR
10 AT LEAST THE THREE IMMEDIATELY PRECEDING YEARS, THE SECRETARY OF
11 COMMUNITY AND ECONOMIC DEVELOPMENT SHALL CERTIFY THAT THE
12 AUTHORITY IS NO LONGER NEEDED; AND THE PROVISIONS OF THIS
13 CHAPTER WILL NO LONGER BE IN EFFECT 90 DAYS FOLLOWING THAT
14 CERTIFICATION. UPON TERMINATION OF THE AUTHORITY, RECORDS AND
15 DOCUMENTS OF THE AUTHORITY SHALL BE TRANSFERRED TO THE DIRECTOR
16 OF FINANCE OF THE ASSISTED CITY. THE AUTHORITY SHALL SUBMIT A
17 FINAL REPORT ON ITS ACTIVITIES AND THE CITY'S FISCAL CONDITION
18 TO THE GOVERNOR AND THE GENERAL ASSEMBLY WITHIN 60 DAYS OF ITS
19 TERMINATION.
20 SECTION 205. FISCAL YEAR.
21 THE FISCAL YEAR OF THE AUTHORITY SHALL BE THE SAME AS THE
22 FISCAL YEAR OF THE COMMONWEALTH.
23 SECTION 206. ANNUAL BUDGET OF AUTHORITY.
24 (A) BUDGET.--BEFORE MARCH 1, 2004, FOR THE FISCAL YEAR JULY
25 1, 2004, TO JUNE 30, 2005, AND BEFORE OCTOBER 15, 2005, AND EACH
26 OCTOBER 15 THEREAFTER, THE AUTHORITY SHALL ADOPT A BUDGET BY A
27 MAJORITY OF THE BOARD SETTING FORTH IN REASONABLE DETAIL THE
28 PROJECTED EXPENSES OF OPERATION OF THE AUTHORITY FOR THE ENSUING
29 FISCAL YEAR, INCLUDING THE SALARY AND BENEFITS OF THE EXECUTIVE
30 DIRECTOR AND ANY OTHER EMPLOYEES OF THE AUTHORITY, AND THE
20030H2006B3291 - 64 -
1 PROJECTED REVENUES OF THE AUTHORITY TO BE DERIVED FROM
2 INVESTMENT EARNINGS AND ANY OTHER MONEYS OF THE AUTHORITY WHICH
3 ARE ESTIMATED TO BE AVAILABLE TO PAY THE OPERATING EXPENSES SET
4 FORTH IN THE BUDGET. A COPY OF THE AUTHORITY'S BUDGET SHALL BE
5 SUBMITTED TO THE GOVERNOR AND TO THE GENERAL ASSEMBLY. THE
6 AUTHORITY OR ITS DESIGNATED REPRESENTATIVES MAY BE AFFORDED AN
7 OPPORTUNITY TO APPEAR BEFORE THE GOVERNOR AND THE APPROPRIATIONS
8 COMMITTEE OF THE SENATE AND THE APPROPRIATIONS COMMITTEE OF THE
9 HOUSE OF REPRESENTATIVES REGARDING THE AUTHORITY'S BUDGET.
10 (B) LIMIT ON OPERATING EXPENSES.--FOLLOWING THE SUBMISSION
11 OF THE AUTHORITY'S BUDGET TO THE GOVERNOR AND THE GENERAL
12 ASSEMBLY AND ANY HEARING HELD BY AN APPROPRIATIONS COMMITTEE
13 UNDER SUBSECTION (A), THE GENERAL ASSEMBLY, BY CONCURRENT
14 RESOLUTION WITH PRESENTMENT TO THE GOVERNOR, IN ACCORDANCE WITH
15 SECTION 9 OF ARTICLE III OF THE CONSTITUTION OF PENNSYLVANIA,
16 MAY LIMIT THE OPERATING EXPENSES OF THE AUTHORITY. IN THAT
17 EVENT, IT SHALL BE UNLAWFUL FOR THE AUTHORITY TO SPEND MORE FOR
18 OPERATING EXPENSES THAN THE LIMIT ESTABLISHED FOR THAT FISCAL
19 YEAR BY THE CONCURRENT RESOLUTION. IF THE GENERAL ASSEMBLY DOES
20 NOT ADOPT A CONCURRENT RESOLUTION PRIOR TO MAY 30, THE
21 AUTHORITY'S BUDGET SHALL BE DEEMED APPROVED FOR THAT FISCAL
22 YEAR.
23 (C) FUNDING.--AFTER JULY 1, 2005, UPON REQUEST OF THE
24 AUTHORITY AND PURSUANT TO THE LIMITS ESTABLISHED IN SUBSECTION
25 (B), THE CITY SHALL ANNUALLY FUND ANY PORTION OF THE BUDGET OF
26 THE AUTHORITY WHICH EXCEEDS THE AUTHORITY'S STATE APPROPRIATION,
27 INCLUDING ITS REASONABLE AND NECESSARY EXPENSES AND COSTS
28 INCURRED FOR CONSULTANTS ENGAGED BY THE BOARD TO CARRY OUT ITS
29 DUTIES.
30 (D) EXAMINATION OF BOOKS.--THE CHAIRPERSON AND MINORITY
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1 CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE SENATE AND
2 THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS
3 COMMITTEE OF THE HOUSE OF REPRESENTATIVES SHALL HAVE THE RIGHT
4 AT ANY TIME TO EXAMINE THE BOOKS, ACCOUNTS AND RECORDS OF THE
5 AUTHORITY.
6 SECTION 207. ANNUAL REPORT TO BE FILED; ANNUAL AUDITS.
7 THE AUTHORITY SHALL FILE A SIGNED ANNUAL REPORT WITH THE
8 CHAIRPERSON AND THE MINORITY CHAIRPERSON OF THE APPROPRIATIONS
9 COMMITTEE OF THE SENATE AND CHAIRPERSON AND THE MINORITY
10 CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF
11 REPRESENTATIVES, WHICH SHALL MAKE PROVISIONS FOR THE ACCOUNTING
12 OF REVENUES AND EXPENSES. THE AUTHORITY SHALL HAVE ITS BOOKS,
13 ACCOUNTS AND RECORDS AUDITED ANNUALLY IN ACCORDANCE WITH
14 GENERALLY ACCEPTED AUDITING STANDARDS BY AN INDEPENDENT AUDITOR
15 WHO SHALL BE A CERTIFIED PUBLIC ACCOUNTANT, AND A COPY OF HIS
16 AUDIT REPORT SHALL BE ATTACHED TO AND BE MADE A PART OF THE
17 AUTHORITY'S ANNUAL REPORT. A CONCISE FINANCIAL STATEMENT SHALL
18 BE PUBLISHED ANNUALLY IN THE PENNSYLVANIA BULLETIN.
19 SECTION 208. LIMIT ON CITY BORROWING.
20 A CITY AND ITS CORPORATE ENTITIES MAY NOT BORROW OR RECEIVE
21 FUNDS FOR ANY LAWFUL PURPOSE UNLESS THE CITY HAS ENTERED INTO AN
22 INTERGOVERNMENTAL COOPERATION AGREEMENT WITH THE AUTHORITY AND
23 THERE IS AN APPROVED FINANCIAL PLAN IN EFFECT.
24 SECTION 209. FINANCIAL PLAN OF AN ASSISTED CITY.
25 (A) REQUIREMENT OF A FINANCIAL PLAN.--AN ASSISTED CITY SHALL
26 DEVELOP, IMPLEMENT AND PERIODICALLY REVISE A FINANCIAL PLAN AS
27 DESCRIBED IN THIS SECTION.
28 (B) ELEMENTS OF PLAN.--THE FINANCIAL PLAN SHALL INCLUDE:
29 (1) PROJECTED REVENUES AND EXPENDITURES OF THE PRINCIPAL
30 OPERATING FUND OR FUNDS OF THE ASSISTED CITY FOR FIVE FISCAL
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1 YEARS CONSISTING OF THE CURRENT FISCAL YEAR AND THE NEXT FOUR
2 FISCAL YEARS.
3 (2) PLAN COMPONENTS THAT WILL:
4 (I) ELIMINATE ANY PROJECTED DEFICIT FOR THE CURRENT
5 FISCAL YEAR AND FOR SUBSEQUENT FISCAL YEARS;
6 (II) RESTORE TO SPECIAL FUND ACCOUNTS MONEY FROM
7 THOSE ACCOUNTS USED FOR PURPOSES OTHER THAN THOSE
8 SPECIFICALLY AUTHORIZED;
9 (III) BALANCE THE CURRENT FISCAL YEAR BUDGET AND
10 SUBSEQUENT BUDGETS IN THE FINANCIAL PLAN THROUGH SOUND
11 BUDGETARY PRACTICES, INCLUDING, BUT NOT LIMITED TO,
12 REDUCTIONS IN EXPENDITURES, IMPROVEMENTS IN PRODUCTIVITY,
13 INCREASES IN REVENUES OR A COMBINATION OF THESE STEPS;
14 (IV) PROVIDE PROCEDURES TO AVOID A FISCAL EMERGENCY
15 CONDITION IN THE FUTURE; AND
16 (V) ENHANCE THE ABILITY OF THE ASSISTED CITY TO
17 ACCESS SHORT-TERM AND LONG-TERM CREDIT MARKETS.
18 (C) STANDARDS FOR FORMULATION OF PLAN.--
19 (1) ALL PROJECTIONS OF REVENUES AND EXPENDITURES IN A
20 FINANCIAL PLAN SHALL BE BASED ON PRUDENT, REASONABLE AND
21 APPROPRIATE ASSUMPTIONS AND METHODS OF ESTIMATION, ALL SUCH
22 ASSUMPTIONS AND METHODS TO BE CONSISTENTLY APPLIED AND
23 REPORTED IN THE FINANCIAL PLAN. THE FINANCIAL PLAN OF AN
24 ASSISTED CITY SHALL NOT INCLUDE PROJECTED REVENUE THAT IN
25 ORDER TO BE COLLECTED REQUIRES THE ENACTMENT BY THE GENERAL
26 ASSEMBLY OF NEW TAXING POWERS.
27 (2) ALL REVENUE AND APPROPRIATION ESTIMATES SHALL BE ON
28 A MODIFIED ACCRUAL BASIS IN ACCORDANCE WITH GENERALLY
29 ACCEPTED STANDARDS AGREED TO BY THE AUTHORITY SUCH AS THOSE
30 PROMULGATED BY THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD.
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1 REVENUE ESTIMATES SHALL RECOGNIZE REVENUES IN THE ACCOUNTING
2 PERIOD IN WHICH THEY BECOME BOTH MEASURABLE AND AVAILABLE.
3 ESTIMATES OF CITY-GENERATED REVENUES SHALL BE BASED ON
4 CURRENT OR PROPOSED TAX RATES, HISTORICAL COLLECTION PATTERNS
5 AND GENERALLY RECOGNIZED ECONOMETRIC MODELS. ESTIMATES OF
6 REVENUES TO BE RECEIVED FROM THE STATE GOVERNMENT SHALL BE
7 BASED ON HISTORICAL PATTERNS, CURRENTLY AVAILABLE LEVELS OR
8 ON LEVELS PROPOSED IN A BUDGET BY THE GOVERNOR. ESTIMATES OF
9 REVENUES TO BE RECEIVED FROM THE FEDERAL GOVERNMENT SHALL BE
10 BASED ON HISTORICAL PATTERNS, CURRENTLY AVAILABLE LEVELS OR
11 ON LEVELS PROPOSED IN A BUDGET BY THE PRESIDENT OR IN A
12 CONGRESSIONAL BUDGET RESOLUTION. NONTAX REVENUES SHALL BE
13 BASED ON CURRENT OR PROPOSED RATES, CHARGES OR FEES,
14 HISTORICAL PATTERNS AND GENERALLY RECOGNIZED ECONOMETRIC
15 MODELS. APPROPRIATION ESTIMATES SHALL INCLUDE, AT A MINIMUM,
16 ALL OBLIGATIONS INCURRED DURING THE FISCAL YEAR AND ESTIMATED
17 TO BE PAYABLE DURING THE FISCAL YEAR OR IN THE 24-MONTH
18 PERIOD FOLLOWING THE CLOSE OF THE CURRENT FISCAL YEAR AND ALL
19 OBLIGATIONS OF PRIOR FISCAL YEARS NOT COVERED BY ENCUMBERED
20 FUNDS FROM PRIOR FISCAL YEARS. ANY DEVIATIONS FROM THESE
21 STANDARDS OF ESTIMATING REVENUES AND APPROPRIATIONS PROPOSED
22 TO BE USED BY AN ASSISTED CITY SHALL BE SPECIFICALLY
23 DISCLOSED AND SHALL BE APPROVED BY A MAJORITY OF THE BOARD.
24 (3) ALL CASH FLOW PROJECTIONS SHALL BE BASED UPON
25 PRUDENT, REASONABLE AND APPROPRIATE ASSUMPTIONS AS TO SOURCES
26 AND USES OF CASH, INCLUDING, BUT NOT LIMITED TO, PRUDENT,
27 REASONABLE AND APPROPRIATE ASSUMPTIONS AS TO THE TIMING OF
28 RECEIPT AND EXPENDITURE THEREOF, AND SHALL PROVIDE FOR
29 OPERATIONS OF THE ASSISTED CITY TO BE CONDUCTED WITHIN THE
30 RESOURCES SO PROJECTED. ALL ESTIMATES SHALL TAKE DUE ACCOUNT
20030H2006B3291 - 68 -
1 OF THE PAST AND ANTICIPATED COLLECTION, EXPENDITURE AND
2 SERVICE DEMAND EXPERIENCE OF THE ASSISTED CITY AND OF CURRENT
3 AND PROJECTED ECONOMIC CONDITIONS.
4 (D) FORM OF PLAN.--EACH FINANCIAL PLAN SHALL, CONSISTENT
5 WITH THE REQUIREMENTS OF AN ASSISTED CITY'S HOME RULE CHARTER OR
6 OPTIONAL PLAN OF GOVERNMENT:
7 (1) BE IN SUCH FORM AND SHALL CONTAIN:
8 (I) FOR EACH OF THE FIRST TWO FISCAL YEARS COVERED
9 BY THE FINANCIAL PLAN, SUCH INFORMATION AS SHALL REFLECT
10 AN ASSISTED CITY'S TOTAL EXPENDITURES BY FUND AND BY LUMP
11 SUM AMOUNT FOR EACH BOARD, COMMISSION, DEPARTMENT OR
12 OFFICE OF AN ASSISTED CITY; AND
13 (II) FOR THE REMAINING THREE FISCAL YEARS OF THE
14 FINANCIAL PLAN, SUCH INFORMATION AS SHALL REFLECT AN
15 ASSISTED CITY'S TOTAL EXPENDITURES BY FUND AND BY LUMP
16 SUM AMOUNT FOR MAJOR OBJECT CLASSIFICATION;
17 (2) INCLUDE PROJECTIONS OF ALL REVENUES AND EXPENDITURES
18 FOR FIVE FISCAL YEARS, INCLUDING, BUT NOT LIMITED TO,
19 PROJECTED CAPITAL EXPENDITURES AND SHORT-TERM AND LONG-TERM
20 DEBT INCURRENCE AND CASH FLOW FORECASTS BY FUND FOR THE FIRST
21 YEAR OF THE FINANCIAL PLAN;
22 (3) INCLUDE A SCHEDULE OF PROJECTED CAPITAL COMMITMENTS
23 OF THE ASSISTED CITY AND PROPOSED SOURCES OF FUNDING FOR SUCH
24 COMMITMENTS; AND
25 (4) BE ACCOMPANIED BY A STATEMENT DESCRIBING, IN
26 REASONABLE DETAIL, THE SIGNIFICANT ASSUMPTIONS AND METHODS OF
27 ESTIMATION USED IN ARRIVING AT THE PROJECTIONS CONTAINED IN
28 SUCH PLAN.
29 (E) ANNUAL SUBMISSION OF PLAN.--WITHIN 90 DAYS OF THE
30 EFFECTIVE DATE OF THIS SECTION, AN ASSISTED CITY SHALL DEVELOP,
20030H2006B3291 - 69 -
1 AND THE AUTHORITY SHALL REVIEW AND ACT UPON, AN INITIAL FIVE-
2 YEAR FINANCIAL PLAN WHICH INCLUDES A REPORT ON THE STATUS OF
3 IMPLEMENTATION OF PRIOR PUBLISHED SUGGESTIONS REGARDING
4 CONSOLIDATION AND COST SAVINGS. DURING EACH SUBSEQUENT FISCAL
5 YEAR, THE MAYOR OR CHIEF EXECUTIVE OFFICER OF EACH ASSISTED CITY
6 SHALL, AT LEAST 100 DAYS PRIOR TO THE BEGINNING OF ITS FISCAL
7 YEAR OR ON SUCH OTHER DATE AS THE AUTHORITY MAY APPROVE UPON THE
8 REQUEST OF THE ASSISTED CITY, PREPARE AND SUBMIT ITS PROPOSED
9 FIVE-YEAR PLAN. AT THE SAME TIME THE PLAN IS SUBMITTED, THE
10 MAYOR OR CHIEF EXECUTIVE OFFICER SHALL ALSO SUBMIT TO THE
11 AUTHORITY:
12 (1) THE MAYOR'S OR CHIEF EXECUTIVE OFFICER'S PROPOSED
13 ANNUAL OPERATING BUDGET AND CAPITAL BUDGET WHICH SHALL BE
14 CONSISTENT WITH THE FIRST YEAR OF THE FINANCIAL PLAN AND
15 WHICH SHALL BE PREPARED IN ACCORDANCE WITH THE ASSISTED
16 CITY'S HOME RULE CHARTER OR OTHER OPTIONAL PLAN OF
17 GOVERNMENT; AND
18 (2) A STATEMENT BY THE MAYOR OR CHIEF EXECUTIVE OFFICER
19 THAT SUCH BUDGET:
20 (I) IS CONSISTENT WITH THE FINANCIAL PLAN;
21 (II) CONTAINS FUNDING ADEQUATE FOR DEBT SERVICE
22 PAYMENTS, LEGALLY MANDATED SERVICES AND LEASE PAYMENTS
23 SECURING BONDS OF OTHER GOVERNMENT AGENCIES;
24 (III) IS BASED UPON PRUDENT, REASONABLE AND
25 APPROPRIATE ASSUMPTIONS AND METHODS OF ESTIMATION; AND
26 (IV) COMPLIES WITH ANY BALANCED BUDGET REQUIREMENTS
27 CONTAINED IN THE CHARTER AND ORDINANCES OF THE CITY OR
28 STATE LAW.
29 (F) BALANCED BUDGET REQUIREMENT.--THE MAYOR OF EVERY CITY
30 AND ASSISTED CITY SHALL SUBMIT, AND THE CITY COUNCIL OF EVERY
20030H2006B3291 - 70 -
1 CITY AND ASSISTED CITY SHALL ADOPT, A BALANCED BUDGET EACH YEAR
2 CONSISTENT WITH THE REQUIREMENTS OF 53 PA.C.S. § 3016 (RELATING
3 TO FORM AND ADOPTION OF BUDGET), AND THE CITY'S OR ASSISTED
4 CITY'S HOME RULE CHARTER OR OTHER OPTIONAL PLAN OF GOVERNMENT. A
5 BALANCED BUDGET OF A CITY OR ASSISTED CITY SHALL NOT INCLUDE
6 PROJECTED REVENUES THAT IN ORDER TO BE COLLECTED REQUIRE THE
7 ENACTMENT BY THE GENERAL ASSEMBLY OF NEW TAXING POWERS OR THE
8 APPROVAL OF A COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE
9 CITY OR ASSISTED CITY IS LOCATED. THE FAILURE OF A CITY OR
10 ASSISTED CITY TO COMPLY WITH THIS SUBSECTION SHALL RESULT IN THE
11 WITHHOLDING OF COMMONWEALTH FUNDS PURSUANT TO SECTION 210(E) AND
12 (F).
13 (G) AUTHORITY REVIEW AND APPROVAL OF PLAN.--
14 (1) THE AUTHORITY SHALL PROMPTLY REVIEW EACH FINANCIAL
15 PLAN, PROPOSED OPERATING BUDGET AND CAPITAL BUDGET SUBMITTED
16 BY THE ASSISTED CITY. IN CONDUCTING SUCH REVIEW, THE
17 AUTHORITY SHALL REQUEST FROM THE CITY CONTROLLER OF THE
18 ASSISTED CITY AN OPINION OR CERTIFICATION PREPARED IN
19 ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, WITH
20 RESPECT TO THE REASONABLENESS OF THE ASSUMPTIONS AND
21 ESTIMATES IN THE FINANCIAL PLAN. THE CITY CONTROLLER AND
22 OTHER ELECTED OFFICIALS SHALL COMPLY WITH ANY SUCH REQUEST
23 FROM THE AUTHORITY. NOT MORE THAN 30 DAYS AFTER SUBMISSION OF
24 A FINANCIAL PLAN AND PROPOSED OPERATING BUDGET, THE AUTHORITY
25 SHALL DETERMINE WHETHER:
26 (I) THE FINANCIAL PLAN PROJECTS BALANCED BUDGETS,
27 BASED UPON PRUDENT, REASONABLE AND APPROPRIATE
28 ASSUMPTIONS AS DESCRIBED IN THIS SECTION, FOR EACH YEAR
29 OF THE PLAN; AND
30 (II) THE PROPOSED OPERATING BUDGET AND CAPITAL
20030H2006B3291 - 71 -
1 BUDGET ARE CONSISTENT WITH THE PROPOSED FINANCIAL PLAN.
2 IF THE AUTHORITY DETERMINES THAT THESE CRITERIA ARE
3 SATISFIED, THE AUTHORITY SHALL APPROVE SUCH FINANCIAL PLAN BY
4 A MAJORITY VOTE.
5 (2) THE AUTHORITY SHALL NOT BE BOUND BY ANY OPINIONS OR
6 CERTIFICATIONS OF THE CITY CONTROLLER OF THE ASSISTED CITY
7 ISSUED PURSUANT TO THIS SUBSECTION.
8 (3) IF THE AUTHORITY FAILS TO TAKE ANY ACTION WITHIN 30
9 DAYS ON A FINANCIAL PLAN, THE FINANCIAL PLAN AS SUBMITTED
10 SHALL BE DEEMED APPROVED. HOWEVER, IF DURING THE 30 DAYS A
11 WRITTEN REQUEST BY TWO MEMBERS OF THE AUTHORITY BOARD FOR A
12 MEETING AND VOTE ON THE QUESTION OF APPROVAL OF THE FINANCIAL
13 PLAN HAS BEEN SUBMITTED TO THE CHAIRPERSON AND A MEETING AND
14 VOTE DO NOT TAKE PLACE, THE FINANCIAL PLAN SHALL BE DEEMED
15 DISAPPROVED.
16 (H) AUTHORITY DISAPPROVAL OF PLAN.--
17 (1) IF THE AUTHORITY DISAPPROVES THE PROPOSED FINANCIAL
18 PLAN, THE AUTHORITY SHALL, WHEN IT NOTIFIES AN ASSISTED CITY
19 OF ITS DECISION, STATE IN WRITING IN REASONABLE DETAIL THE
20 REASONS FOR SUCH DISAPPROVAL, INCLUDING THE AMOUNT OF ANY
21 ESTIMATED BUDGET IMBALANCE.
22 (2) THE ASSISTED CITY SHALL SUBMIT A REVISED FINANCIAL
23 PLAN TO THE AUTHORITY WITHIN 15 DAYS OF SUCH DISAPPROVAL,
24 WHICH REVISED PLAN ELIMINATES THE BUDGET IMBALANCE. NOT MORE
25 THAN 15 DAYS AFTER THE SUBMISSION OF SUCH REVISED FINANCIAL
26 PLAN, THE AUTHORITY SHALL DETERMINE WHETHER THE REVISED PLAN
27 SATISFIES THE CRITERIA SET FORTH IN SUBSECTION (G)(1). IF THE
28 AUTHORITY DETERMINES THAT THESE CRITERIA ARE SATISFIED, THE
29 AUTHORITY SHALL APPROVE SUCH FINANCIAL PLAN BY A MAJORITY
30 VOTE. IF THE AUTHORITY SHALL NOT SO APPROVE THE FINANCIAL
20030H2006B3291 - 72 -
1 PLAN, THEN THE AUTHORITY SHALL, IN ACCORDANCE WITH SECTION
2 210(E), CERTIFY THE ASSISTED CITY'S NONCOMPLIANCE WITH THE
3 FINANCIAL PLAN TO THE SECRETARY OF THE BUDGET, THE PRESIDENT
4 PRO TEMPORE OF THE SENATE AND THE SPEAKER OF THE HOUSE OF
5 REPRESENTATIVES.
6 (I) REVISIONS TO PLAN.--
7 (1) THE PLAN SHALL BE REVISED ON AN ANNUAL BASIS TO
8 INCLUDE THE OPERATING BUDGET FOR THE NEXT FISCAL YEAR AND TO
9 EXTEND THE PLAN FOR AN ADDITIONAL FISCAL YEAR. IN ADDITION,
10 THE MAYOR OR CHIEF EXECUTIVE OFFICER OF A CITY SHALL, WITHIN
11 90 DAYS OF ASSUMING OFFICE, PROPOSE REVISIONS TO THE
12 FINANCIAL PLAN OR CERTIFY TO THE AUTHORITY THAT HE OR SHE
13 ADOPTS THE EXISTING PLAN. AN ASSISTED CITY MAY, DURING THE
14 COURSE OF A FISCAL YEAR, SUBMIT PROPOSED REVISIONS TO THE
15 FINANCIAL PLAN AND SHALL SUBMIT A PROPOSED REVISION FOR ANY
16 AMENDMENT TO THE CITY'S OPERATING OR CAPITAL BUDGET.
17 (2) THE AUTHORITY SHALL REVIEW EACH PROPOSED REVISION
18 WITHIN 20 DAYS OF ITS SUBMISSION. THE AUTHORITY SHALL APPROVE
19 THE REVISION IF IT WILL NOT, BASED ON PRUDENT, REASONABLE AND
20 APPROPRIATE ASSUMPTIONS, CAUSE THE PLAN TO BECOME IMBALANCED.
21 PROPOSED REVISIONS SHALL BECOME PART OF THE FINANCIAL PLAN
22 UPON THE APPROVAL OF A MAJORITY OF THE AUTHORITY BOARD,
23 UNLESS SOME OTHER METHOD OF APPROVAL IS PERMITTED BY
24 AUTHORITY RULES AND REGULATIONS APPROVED BY A MAJORITY OR
25 PURSUANT TO AN AGREEMENT WITH THE CITY CONTAINED IN AN
26 INTERGOVERNMENTAL COOPERATION AGREEMENT. IF THE AUTHORITY
27 FAILS TO TAKE ACTION WITHIN 20 DAYS ON A PROPOSED REVISION,
28 SUCH SUBMISSION SHALL BE DEEMED APPROVED UNLESS A WRITTEN
29 REQUEST FOR A MEETING AND VOTE HAS BEEN MADE IN ACCORDANCE
30 WITH SUBSECTION (G)(3) IN WHICH EVENT, IF A MEETING AND VOTE
20030H2006B3291 - 73 -
1 DOES NOT TAKE PLACE, THE PROPOSED REVISION SHALL BE DEEMED
2 DISAPPROVED.
3 (3) IF THE GOVERNING BODY OF A CITY ADOPTS A BUDGET
4 INCONSISTENT WITH AN APPROVED FINANCIAL PLAN, THE ASSISTED
5 CITY SHALL SUBMIT THE ENACTED BUDGET TO THE AUTHORITY AS A
6 PROPOSED REVISION TO THE PLAN. THE AUTHORITY SHALL REVIEW THE
7 PROPOSED REVISION WITHIN 30 DAYS OF ITS SUBMISSION, IN
8 ACCORDANCE WITH THE CRITERIA SET FORTH IN SUBSECTION (G) AND
9 THE APPROVAL PROCESS SET FORTH IN PARAGRAPH (2).
10 (J) SUPPLEMENTAL REPORTS.--WITHIN 45 DAYS OF THE END OF EACH
11 FISCAL QUARTER, OR MONTHLY IF A VARIATION FROM THE FINANCIAL
12 PLAN HAS BEEN DETERMINED IN ACCORDANCE WITH SECTION 210(C), THE
13 MAYOR OR CHIEF EXECUTIVE OFFICER OF AN ASSISTED CITY SHALL
14 PROVIDE THE AUTHORITY WITH REPORTS DESCRIBING ACTUAL OR CURRENT
15 ESTIMATES OF REVENUES AND EXPENDITURES COMPARED TO BUDGETED
16 REVENUES AND EXPENDITURES FOR SUCH PERIOD REFLECTED IN ITS CASH
17 FLOW FORECAST. EACH REPORT REQUIRED UNDER THIS SECTION SHALL
18 INDICATE ANY VARIANCE BETWEEN ACTUAL OR CURRENT ESTIMATES AND
19 BUDGETED REVENUES, EXPENDITURES AND CASH FOR THE PERIOD COVERED
20 BY SUCH REPORT. AN ASSISTED CITY SHALL ALSO PROVIDE PERIODIC
21 REPORTS ON DEBT SERVICE REQUIREMENTS IN CONFORMITY WITH SECTION
22 210(B).
23 (K) EFFECT OF PLAN UPON CONTRACTS AND COLLECTIVE BARGAINING
24 AGREEMENTS.--
25 (1) A CONTRACT OR COLLECTIVE BARGAINING AGREEMENT IN
26 EXISTENCE IN AN ASSISTED CITY PRIOR TO THE APPROVAL BY THE
27 AUTHORITY OF A FINANCIAL PLAN SUBMITTED PURSUANT TO THIS
28 SECTION SHALL REMAIN EFFECTIVE AFTER APPROVAL OF SUCH PLAN
29 UNTIL SUCH CONTRACT OR AGREEMENT EXPIRES.
30 (2) AFTER THE APPROVAL BY THE AUTHORITY OF A FINANCIAL
20030H2006B3291 - 74 -
1 PLAN SUBMITTED PURSUANT TO THIS SECTION, AN ASSISTED CITY
2 SHALL EXECUTE CONTRACTS AND COLLECTIVE BARGAINING AGREEMENTS
3 IN COMPLIANCE WITH SUCH PLAN. IF AN ASSISTED CITY EXECUTES A
4 CONTRACT OR A COLLECTIVE BARGAINING AGREEMENT WHICH IS NOT IN
5 COMPLIANCE WITH THE PLAN, THE CONTRACT OR AGREEMENT SHALL NOT
6 BE VOID OR VOIDABLE SOLELY BY REASON OF SUCH NONCOMPLIANCE,
7 BUT THE ASSISTED CITY SHALL SUBMIT TO THE AUTHORITY A
8 PROPOSED REVISION TO THE PLAN WHICH DEMONSTRATES THAT
9 REVENUES SUFFICIENT TO PAY THE COSTS OF THE CONTRACT OR
10 COLLECTIVE BARGAINING AGREEMENT WILL BE AVAILABLE IN THE
11 AFFECTED FISCAL YEARS OF THE PLAN.
12 (L) EFFECT OF PLAN UPON CERTAIN ARBITRATION AWARDS.--
13 (1) AFTER THE APPROVAL BY THE AUTHORITY OF A FINANCIAL
14 PLAN SUBMITTED PURSUANT TO THIS SECTION, ANY DETERMINATION OF
15 A BOARD OF ARBITRATION ESTABLISHED PURSUANT TO THE PROVISIONS
16 OF THE ACT OF JUNE 24, 1968 (P.L.237, NO.111), REFERRED TO AS
17 THE POLICEMEN AND FIREMEN COLLECTIVE BARGAINING ACT,
18 PROVIDING FOR AN INCREASE IN WAGES OR FRINGE BENEFITS OF ANY
19 EMPLOYEE OF AN ASSISTED CITY UNDER THE PLAN, IN ADDITION TO
20 CONSIDERING ANY STANDARD OR FACTOR REQUIRED TO BE CONSIDERED
21 BY APPLICABLE LAW, SHALL TAKE INTO CONSIDERATION AND ACCORD
22 SUBSTANTIAL WEIGHT TO:
23 (I) THE APPROVED FINANCIAL PLAN; AND
24 (II) RELEVANT MARKET FACTORS, SUCH AS THE FINANCIAL
25 SITUATION OF THE ASSISTED CITY, INFLATION, PRODUCTIVITY,
26 SIZE OF WORK FORCE AND PAY AND BENEFIT LEVELS IN
27 ECONOMICALLY AND DEMOGRAPHICALLY COMPARABLE POLITICAL
28 SUBDIVISIONS.
29 (2) SUCH DETERMINATION SHALL BE IN WRITING AND A COPY
30 THEREOF SHALL BE FORWARDED TO EACH PARTY TO THE DISPUTE AND
20030H2006B3291 - 75 -
1 THE AUTHORITY. ANY DETERMINATION OF THE BOARD OF ARBITRATION
2 WHICH PROVIDES FOR AN INCREASE IN WAGES OR FRINGE BENEFITS OF
3 ANY EMPLOYEE OF AN ASSISTED CITY SHALL STATE WITH SPECIFICITY
4 IN WRITING ALL FACTORS WHICH THE BOARD OF ARBITRATION TOOK
5 INTO ACCOUNT IN CONSIDERING AND GIVING SUBSTANTIAL WEIGHT TO
6 THE FACTORS REFERRED TO IN PARAGRAPH (1).
7 (3) ANY PARTY TO A PROCEEDING BEFORE A BOARD OF
8 ARBITRATION MAY APPEAL TO THE COURT OF COMMON PLEAS TO
9 REVIEW:
10 (I) CONSIDERATION UNDER PARAGRAPH (1); OR
11 (II) FAILURE OF THE BOARD OF ARBITRATION TO ISSUE A
12 DETERMINATION UNDER PARAGRAPH (2).
13 (4) AN APPEAL UNDER PARAGRAPH (3) MUST BE COMMENCED NOT
14 LATER THAN 30 DAYS AFTER THE ISSUANCE OF A FINAL
15 DETERMINATION BY THE BOARD OF ARBITRATION.
16 (5) THE DECISION OF THE BOARD OF ARBITRATION SHALL BE
17 VACATED AND REMANDED TO THE BOARD OF ARBITRATION IF THE COURT
18 FINDS:
19 (I) THAT THE BOARD OF ARBITRATION FAILED TO TAKE
20 INTO CONSIDERATION AND ACCORD SUBSTANTIAL WEIGHT TO THE
21 FACTORS REFERRED TO IN PARAGRAPH (1); OR
22 (II) THAT THE BOARD OF ARBITRATION HAS FAILED TO
23 ISSUE A DETERMINATION UNDER PARAGRAPH (2).
24 (6) IF, AFTER THE EXHAUSTION OF ALL APPEALS, THE FINAL
25 ARBITRATION AWARD IS NOT IN COMPLIANCE WITH THE APPROVED
26 FINANCIAL PLAN, THE AWARD SHALL NOT BE VOID OR VOIDABLE
27 SOLELY BY REASON OF SUCH NONCOMPLIANCE, BUT THE ASSISTED CITY
28 SHALL SUBMIT TO THE AUTHORITY A PROPOSED REVISION TO THE PLAN
29 WHICH DEMONSTRATES THAT REVENUES SUFFICIENT TO PAY THE COSTS
30 OF THE AWARD WILL BE AVAILABLE IN THE AFFECTED FISCAL YEARS
20030H2006B3291 - 76 -
1 OF THE PLAN.
2 SECTION 210. POWERS AND DUTIES OF AUTHORITY WITH RESPECT TO
3 FINANCIAL PLANS.
4 (A) FORMULATION AND APPROVAL OF PLAN.--TO ADVANCE THE
5 FINANCIAL RECOVERY OF EACH ASSISTED CITY, THE AUTHORITY SHALL
6 REQUIRE THE ASSISTED CITY TO SUBMIT A FIVE-YEAR FINANCIAL PLAN
7 IN ACCORDANCE WITH SECTION 209. WITH REGARD TO THE FORMULATION
8 OF SUCH PLAN, THE AUTHORITY SHALL:
9 (1) CONSULT WITH AN ASSISTED CITY AS IT PREPARES THE
10 FINANCIAL PLAN.
11 (2) PRESCRIBE THE FORM OF THE FINANCIAL PLAN.
12 (3) PRESCRIBE THE SUPPORTING INFORMATION REQUIRED IN
13 CONNECTION WITH SUCH PLAN, SUCH INFORMATION TO INCLUDE AT A
14 MINIMUM:
15 (I) DEBT SERVICE PAYMENTS DUE OR PROJECTED TO BE DUE
16 DURING THE RELEVANT FISCAL YEARS;
17 (II) PAYMENTS FOR LEGALLY MANDATED SERVICES INCLUDED
18 IN THE PLAN AND DUE OR PROJECTED TO BE DUE DURING THE
19 RELEVANT FISCAL YEARS; AND
20 (III) A STATEMENT IN REASONABLE DETAIL OF THE
21 SIGNIFICANT ASSUMPTIONS AND METHODS OF ESTIMATION USED IN
22 ARRIVING AT THE PROJECTIONS IN THE PLAN.
23 (4) EXERCISE ANY RIGHTS OF APPROVAL OR DISAPPROVAL AND
24 ISSUE SUCH RECOMMENDATIONS AS ARE AUTHORIZED BY THIS ACT IN
25 ACCORDANCE WITH THE STANDARDS FOR FORMULATION OF THE PLAN SET
26 FORTH IN SECTION 209(C).
27 (B) AUTHORITY FUNCTIONS AFTER PLAN IS APPROVED.--AFTER A
28 FINANCIAL PLAN HAS BEEN APPROVED, THE AUTHORITY SHALL:
29 (1) RECEIVE AND REVIEW:
30 (I) THE FINANCIAL REPORTS SUBMITTED BY THE MAYOR OR
20030H2006B3291 - 77 -
1 CHIEF EXECUTIVE OFFICER OF A CITY UNDER SECTION 209(J);
2 (II) REPORTS CONCERNING THE DEBT SERVICE
3 REQUIREMENTS ON ALL BONDS, NOTES OF THE ASSISTED CITY AND
4 LEASE PAYMENTS OF THE ASSISTED CITY SECURING BONDS OR
5 OTHER GOVERNMENT AGENCIES FOR THE FOLLOWING QUARTER,
6 WHICH REPORTS SHALL BE IN SUCH FORM AND CONTAIN SUCH
7 INFORMATION AS THE AUTHORITY SHALL DETERMINE, AND WHICH
8 SHALL BE ISSUED NO LATER THAN 60 DAYS PRIOR TO THE
9 BEGINNING OF THE QUARTER TO WHICH THEY PERTAIN, AND SHALL
10 BE UPDATED IMMEDIATELY UPON EACH ISSUANCE OF BONDS OR
11 NOTES, BY THE ASSISTED CITY OR EXECUTION OF A LEASE
12 SECURING BONDS OF ANOTHER GOVERNMENT AGENCY, AFTER THE
13 DATE OF SUCH REPORT TO REFLECT ANY CHANGE IN DEBT SERVICE
14 REQUIREMENTS AS A RESULT OF SUCH ISSUANCE; AND
15 (III) ANY ADDITIONAL INFORMATION PROVIDED BY THE
16 ASSISTED CITY CONCERNING CHANGED CONDITIONS OR UNEXPECTED
17 EVENTS WHICH MAY AFFECT THE ASSISTED CITY'S ADHERENCE TO
18 THE FINANCIAL PLAN. THE REPORTS DESCRIBED IN SUBPARAGRAPH
19 (II) SHALL BE CERTIFIED BY THE CITY CONTROLLER.
20 (2) DETERMINE, ON THE BASIS OF INFORMATION AND REPORTS
21 DESCRIBED IN PARAGRAPH (1), WHETHER AN ASSISTED CITY HAS
22 ADHERED TO THE FINANCIAL PLAN.
23 (C) VARIATION FROM THE PLAN.--IF THE AUTHORITY DETERMINES,
24 BASED UPON REPORTS SUBMITTED BY AN ASSISTED CITY UNDER
25 SUBSECTION (B) OR INDEPENDENT AUDITS, EXAMINATIONS OR STUDIES OF
26 THE ASSISTED CITY'S FINANCES OBTAINED UNDER SUBSECTION (I)(3),
27 THAT AN ASSISTED CITY'S ACTUAL REVENUES AND EXPENDITURES VARY
28 FROM THOSE ESTIMATED IN THE FINANCIAL PLAN, THE AUTHORITY SHALL
29 REQUIRE THE CITY TO PROVIDE SUCH ADDITIONAL INFORMATION AS THE
30 AUTHORITY DEEMS NECESSARY TO EXPLAIN THE VARIATION. THE
20030H2006B3291 - 78 -
1 AUTHORITY SHALL TAKE NO ACTION WITH RESPECT TO AN ASSISTED CITY
2 FOR DEPARTURES FROM THE FINANCIAL PLAN IN A FISCAL QUARTER IF:
3 (1) THE CITY PROVIDES A WRITTEN EXPLANATION FOR THE
4 VARIATION THAT THE AUTHORITY DEEMS REASONABLE;
5 (2) THE CITY PROPOSES REMEDIAL ACTION WHICH THE
6 AUTHORITY BELIEVES WILL RESTORE THE ASSISTED CITY'S OVERALL
7 COMPLIANCE WITH THE FINANCIAL PLAN;
8 (3) INFORMATION PROVIDED BY THE CITY IN THE IMMEDIATELY
9 SUCCEEDING QUARTERLY FINANCIAL REPORT DEMONSTRATES THAT THE
10 ASSISTED CITY IS TAKING SUCH REMEDIAL ACTION AND OTHERWISE
11 COMPLYING WITH THE PLAN; AND
12 (4) THE ASSISTED CITY SUBMITS MONTHLY SUPPLEMENTAL
13 REPORTS IN ACCORDANCE WITH SECTION 209(J) UNTIL IT REGAINS
14 COMPLIANCE WITH THE FINANCIAL PLAN.
15 (D) AUTHORITY MAY MAKE RECOMMENDATIONS.--THE AUTHORITY MAY
16 AT ANY TIME ISSUE RECOMMENDATIONS AS TO HOW AN ASSISTED CITY MAY
17 ACHIEVE COMPLIANCE WITH THE FINANCIAL PLAN AND SHALL PROVIDE
18 COPIES OF SUCH RECOMMENDATIONS TO THE MAYOR OR CHIEF EXECUTIVE
19 OFFICER AND THE GOVERNING BODY OF THE CITY AND TO THE OFFICIALS
20 NAMED IN SECTION 203(B)(4).
21 (E) WHEN COMMONWEALTH SHALL WITHHOLD FUNDS.--
22 (1) THE AUTHORITY SHALL CERTIFY TO THE SECRETARY OF THE
23 BUDGET AN ASSISTED CITY'S NONCOMPLIANCE WITH THE FINANCIAL
24 PLAN DURING ANY PERIOD WHEN THE AUTHORITY HAS DETERMINED BY
25 THE VOTE OF A MAJORITY THAT THE ASSISTED CITY HAS NOT ADHERED
26 TO THE PLAN AND HAS NOT TAKEN ACCEPTABLE REMEDIAL ACTION
27 DURING THE NEXT QUARTER FOLLOWING SUCH DEPARTURE FROM THE
28 PLAN.
29 (2) THE AUTHORITY SHALL CERTIFY TO THE SECRETARY OF THE
30 BUDGET THAT AN ASSISTED CITY IS NOT IN COMPLIANCE WITH THE
20030H2006B3291 - 79 -
1 PLAN IF THE ASSISTED CITY:
2 (I) HAS NO FINANCIAL PLAN APPROVED BY THE AUTHORITY,
3 HAS FAILED TO PROVIDE REQUESTED DOCUMENTS OR HAS FAILED
4 TO FILE A FINANCIAL PLAN WITH THE AUTHORITY; OR
5 (II) HAS FAILED TO FILE MANDATORY REVISIONS TO THE
6 PLAN OR REPORTS AS REQUIRED BY SECTION 209(I), (J), (K)
7 OR (L).
8 (3) IF THE AUTHORITY CERTIFIES THAT AN ASSISTED CITY IS
9 NOT IN COMPLIANCE WITH THE FINANCIAL PLAN UNDER PARAGRAPH (1)
10 OR (2), THE SECRETARY OF THE BUDGET SHALL NOTIFY THE CITY
11 THAT SUCH CERTIFICATION HAS BEEN MADE AND THAT EACH GRANT,
12 LOAN, ENTITLEMENT OR PAYMENT TO THE ASSISTED CITY BY THE
13 COMMONWEALTH SHALL BE SUSPENDED PENDING COMPLIANCE WITH THE
14 FINANCIAL PLAN. FUNDS WITHHELD SHALL BE HELD IN ESCROW BY THE
15 COMMONWEALTH UNTIL COMPLIANCE WITH THE PLAN IS RESTORED AS
16 SET FORTH IN PARAGRAPH (4). FUNDS HELD IN ESCROW PURSUANT TO
17 THIS SUBSECTION SHALL NOT LAPSE PURSUANT TO SECTION 621 OF
18 THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE
19 ADMINISTRATIVE CODE OF 1929, OR ANY OTHER LAW.
20 (4) THE AUTHORITY SHALL, BY MAJORITY VOTE, DETERMINE
21 WHEN THE CONDITIONS WHICH CAUSED AN ASSISTED CITY TO BE
22 CERTIFIED AS NOT IN COMPLIANCE WITH THE FINANCIAL PLAN HAVE
23 CEASED TO EXIST AND SHALL PROMPTLY NOTIFY THE SECRETARY OF
24 THE BUDGET OF SUCH VOTE. THE SECRETARY OF THE BUDGET SHALL
25 THEREUPON RELEASE ALL FUNDS HELD IN ESCROW, TOGETHER WITH ALL
26 INTEREST AND INCOME EARNED THEREON DURING THE PERIOD HELD IN
27 ESCROW, AND THE DISBURSEMENTS OF AMOUNTS IN THE CITY ACCOUNT
28 SHALL RESUME.
29 (F) EXEMPTIONS.--NOTWITHSTANDING THE PROVISIONS OF
30 SUBSECTION (E), THE FOLLOWING SHALL NOT BE WITHHELD FROM AN
20030H2006B3291 - 80 -
1 ASSISTED CITY:
2 (1) FUNDS GRANTED OR ALLOCATED TO AN ASSISTED CITY
3 DIRECTLY FROM AN AGENCY OF THE COMMONWEALTH OR FROM THE
4 FEDERAL GOVERNMENT FOR DISTRIBUTION BY THE COMMONWEALTH AFTER
5 THE DECLARATION OF A DISASTER RESULTING FROM A CATASTROPHE;
6 (2) FUNDS FOR CAPITAL PROJECTS UNDER CONTRACT IN
7 PROGRESS;
8 (3) PENSION FUND PAYMENTS REQUIRED BY LAW; AND
9 (4) FUNDS THE ASSISTED CITY HAS PLEDGED TO REPAY BONDS
10 OR NOTES.
11 (G) EFFECT OF COMMONWEALTH'S FAILURE TO DISBURSE FUNDS.--THE
12 PROVISIONS OF SUBSECTION (E) SHALL NOT APPLY AND AN ASSISTED
13 CITY SHALL NOT BE FOUND TO HAVE DEPARTED FROM THE FINANCIAL PLAN
14 DUE TO THE COMMONWEALTH'S FAILURE TO PAY ANY MONEY, INCLUDING
15 PAYMENT OF FEDERAL FUNDS DISTRIBUTED BY OR THROUGH THE
16 COMMONWEALTH, DUE TO THE ASSISTED CITY FROM MONEYS APPROPRIATED
17 BY THE GENERAL ASSEMBLY.
18 (H) ASSISTED CITY TO DETERMINE EXPENDITURE OF AVAILABLE
19 FUNDS.--NOTHING IN THIS ACT SHALL BE CONSTRUED TO LIMIT THE
20 POWER OF AN ASSISTED CITY TO DETERMINE, FROM TIME TO TIME,
21 WITHIN AVAILABLE FUNDS OF THE ASSISTED CITY, THE PURPOSES FOR
22 WHICH EXPENDITURES ARE TO BE MADE BY THE ASSISTED CITY AND THE
23 AMOUNTS OF SUCH EXPENDITURES THEN PERMITTED UNDER THE FINANCIAL
24 PLAN OF THE ASSISTED CITY.
25 (I) DOCUMENTS AND EXAMINATIONS TO BE REVIEWED OR UNDERTAKEN
26 BY THE AUTHORITY.--THE AUTHORITY SHALL:
27 (1) RECEIVE FROM AN ASSISTED CITY AND REVIEW THE
28 REPORTS, DOCUMENTS, BUDGETARY AND FINANCIAL PLANNING DATA AND
29 OTHER INFORMATION PREPARED BY OR ON BEHALF OF SUCH ASSISTED
30 CITY AND WHICH ARE TO BE MADE AVAILABLE TO THE AUTHORITY
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1 UNDER THIS ACT;
2 (2) INSPECT AND COPY SUCH BOOKS, RECORDS AND INFORMATION
3 OF AN ASSISTED CITY AS THE AUTHORITY DEEMS NECESSARY TO
4 ACCOMPLISH THE PURPOSES OF THIS ACT; AND
5 (3) CONDUCT OR CAUSE TO BE CONDUCTED SUCH INDEPENDENT
6 AUDITS, EXAMINATIONS OR STUDIES OF AN ASSISTED CITY'S
7 FINANCES AS THE AUTHORITY DEEMS APPROPRIATE.
8 (J) REMEDIES OF AUTHORITY FOR FAILURE OF AN ASSISTED CITY TO
9 FILE FINANCIAL PLANS AND REPORTS.--IN THE EVENT THAT AN ASSISTED
10 CITY SHALL FAIL TO FILE WITH THE AUTHORITY ANY FINANCIAL PLAN,
11 REVISION TO A FINANCIAL PLAN, REPORT OR OTHER INFORMATION
12 REQUIRED TO BE FILED WITH THE AUTHORITY PURSUANT TO THIS ACT,
13 THE AUTHORITY, IN ADDITION TO ALL OTHER RIGHTS WHICH THE
14 AUTHORITY MAY HAVE AT LAW OR IN EQUITY, SHALL HAVE THE RIGHT BY
15 MANDAMUS TO COMPEL THE ASSISTED CITY AND THE OFFICERS, EMPLOYEES
16 AND AGENTS THEREOF TO FILE WITH THE AUTHORITY THE FINANCIAL
17 PLAN, REVISION TO A FINANCIAL PLAN, REPORT OR OTHER INFORMATION
18 WHICH THE ASSISTED CITY HAS FAILED TO FILE. THE AUTHORITY SHALL
19 GIVE THE ASSISTED CITY WRITTEN NOTICE OF THE FAILURE OF THE
20 ASSISTED CITY TO FILE AND OF THE AUTHORITY'S INTENTION TO
21 INITIATE AN ACTION UNDER THIS SUBSECTION AND SHALL NOT INITIATE
22 SUCH AN ACTION EARLIER THAN TEN DAYS AFTER THE GIVING OF SUCH
23 NOTICE.
24 SECTION 211. LIMITATION ON AUTHORITY AND ON ASSISTED CITIES TO
25 FILE PETITION FOR RELIEF UNDER FEDERAL BANKRUPTCY
26 LAW.
27 (A) LIMITATION ON BANKRUPTCY FILING.--NOTWITHSTANDING ANY
28 OTHER PROVISION OF LAW, THE AUTHORITY AND ANY ASSISTED CITY
29 SHALL NOT BE AUTHORIZED TO FILE A PETITION FOR RELIEF UNDER 11
30 U.S.C. CH. 9 (RELATING TO ADJUSTMENTS OF DEBTS OF A
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1 MUNICIPALITY) OR ANY SUCCESSOR FEDERAL BANKRUPTCY LAW, AND NO
2 GOVERNMENT AGENCY SHALL AUTHORIZE THE AUTHORITY OR SUCH CITY TO
3 BECOME A DEBTOR UNDER 11 U.S.C. CH. 9 OR ANY SUCCESSOR FEDERAL
4 BANKRUPTCY LAW.
5 (B) BANKRUPTCY FILING APPROVAL.--IN ADDITION TO THE
6 LIMITATION SET FORTH IN SUBSECTION (A), AND NOTWITHSTANDING ANY
7 OTHER PROVISION OF LAW, NO CITY SHALL BE AUTHORIZED TO FILE A
8 PETITION FOR RELIEF UNDER 11 U.S.C. CH. 9 OR ANY SUCCESSOR
9 FEDERAL BANKRUPTCY LAW, UNLESS SUCH PETITION HAS BEEN SUBMITTED
10 TO, AND THE FILING THEREOF HAS BEEN APPROVED IN WRITING BY THE
11 GOVERNOR. THE GOVERNOR IS DESIGNATED, IN ACCORDANCE WITH 11
12 U.S.C. § 109(C)(2) (RELATING TO WHO MAY BE A DEBTOR), AS THE
13 ORGANIZATION OF THE COMMONWEALTH WHICH SHALL HAVE POWER TO
14 APPROVE OR DISAPPROVE THE FILING OF ANY SUCH PETITION OF A
15 POLITICAL SUBDIVISION, AND TO APPROVE OR DISAPPROVE ANY PLAN OF
16 READJUSTMENT OF THE DEBTS OF ANY SUCH POLITICAL SUBDIVISION
17 PREPARED, FILED AND SUBMITTED WITH THE PETITION TO THE COURT, AS
18 PROVIDED UNDER 11 U.S.C. CH. 9.
19 (C) REVIEW OF BANKRUPTCY PETITION.--
20 (1) WHEN ANY SUCH PETITION SHALL BE SUBMITTED TO THE
21 GOVERNOR FOR APPROVAL, ACCOMPANIED WITH A PROPOSED PLAN OF
22 READJUSTMENT OF THE DEBTS OF A CITY, THE GOVERNOR SHALL MAKE
23 A CAREFUL AND THOROUGH INVESTIGATION OF THE FINANCIAL
24 CONDITION OF SUCH CITY, OF ITS ASSETS AND LIABILITIES, OF ITS
25 SINKING FUND, AND WHETHER THE AFFAIRS THEREOF ARE MANAGED IN
26 A CAREFUL, PRUDENT AND ECONOMIC MANNER IN ORDER TO ASCERTAIN
27 WHETHER THE PRESENTATION OF SUCH PETITION IS JUSTIFIED, OR
28 REPRESENTS AN UNJUST ATTEMPT BY SUCH CITY TO EVADE PAYMENT OF
29 SOME OF ITS CONTRACTUAL OBLIGATIONS, AND, IF THE GOVERNOR
30 BELIEVES THAT SUCH PETITION SHOULD BE APPROVED, WHETHER THE
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1 PLAN OF READJUSTMENT SUBMITTED WILL BE HELPFUL TO THE
2 FINANCIAL CONDITION OF THE CITY AND IS FEASIBLE AND, AT THE
3 SAME TIME, FAIR AND EQUITABLE TO ALL CREDITORS.
4 (2) THE GOVERNOR SHALL ALSO, PRIOR TO GIVING HIS
5 APPROVAL, ASCERTAIN THE AMOUNT, IF ANY, OF THE OBLIGATIONS OF
6 ANY SUCH PETITIONING CITY WHICH IS HELD BY ANY AGENCY OR
7 AGENCIES OF THE STATE GOVERNMENT AS TRUST FUNDS AND SHALL,
8 BEFORE APPROVING ANY SUCH PETITION AND PLAN OF READJUSTMENT,
9 CONSULT WITH AND GIVE EVERY SUCH AGENCY AN OPPORTUNITY TO BE
10 HEARD AND THE PRIVILEGE TO EXAMINE THE FINDINGS OF THE
11 GOVERNOR RESULTING FROM THE INVESTIGATION REQUIRED TO BE MADE
12 UNDER THIS ACT, AND SHALL LIKEWISE HEAR ANY OTHER CREDITOR OF
13 SUCH CITY, WHETHER RESIDENT IN OR OUTSIDE THIS COMMONWEALTH,
14 WHO SHALL APPLY THEREFOR.
15 (3) THE GOVERNOR, IF HE APPROVES A PETITION, SHALL,
16 BEFORE GIVING HIS APPROVAL, REQUIRE SUCH MODIFICATION IN THE
17 PROPOSED PLAN FOR READJUSTING THE DEBTS AS TO HIM APPEARS
18 PROPER.
19 SECTION 212. INVESTMENT OF FUNDS.
20 FUNDS OF THE AUTHORITY WHICH ARE NOT REQUIRED FOR IMMEDIATE
21 USE MAY BE INVESTED IN OBLIGATIONS OF AN ASSISTED CITY OR IN
22 OBLIGATIONS OF THE FEDERAL GOVERNMENT OR OF THE COMMONWEALTH OR
23 OBLIGATIONS WHICH ARE LEGAL INVESTMENTS FOR COMMONWEALTH FUNDS.
24 HOWEVER, NO MONEY MAY BE INVESTED IN OBLIGATIONS ISSUED BY OR
25 OBLIGATIONS GUARANTEED BY AN ASSISTED CITY WITHOUT THE APPROVAL
26 OF A MAJORITY OF THE BOARD.
27 SECTION 213. SOVEREIGN IMMUNITY.
28 MEMBERS OF THE BOARD SHALL NOT BE LIABLE PERSONALLY FOR ANY
29 OBLIGATIONS OF THE AUTHORITY. IT IS HEREBY DECLARED TO BE THE
30 INTENT OF THE GENERAL ASSEMBLY THAT THE AUTHORITY CREATED BY
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1 THIS ACT AND ITS MEMBERS, OFFICERS, OFFICIALS AND EMPLOYEES
2 SHALL ENJOY SOVEREIGN AND OFFICIAL IMMUNITY, AS PROVIDED IN 1
3 PA.C.S. § 2310 (RELATING TO SOVEREIGN IMMUNITY REAFFIRMED;
4 SPECIFIC WAIVER), AND SHALL REMAIN IMMUNE FROM SUIT EXCEPT AS
5 PROVIDED BY AND SUBJECT TO THE PROVISIONS OF 42 PA.C.S. §§ 8501
6 (RELATING TO DEFINITIONS) THROUGH 8528 (RELATING TO LIMITATIONS
7 ON DAMAGES).
8 CHAPTER 7
9 MISCELLANEOUS PROVISIONS
10 SECTION 701. APPROPRIATION.
11 THE SUM OF $200,000 IS HEREBY APPROPRIATED FROM THE GENERAL
12 FUND TO THE INTERGOVERNMENTAL COOPERATION AUTHORITY FOR CITIES
13 OF THE SECOND CLASS AS A CONTINUING APPROPRIATION FOR THE
14 PURPOSE OF PROVIDING OPERATING FUNDS FOR THE INTERGOVERNMENTAL
15 COOPERATION AUTHORITY FOR CITIES OF THE SECOND CLASS. THIS
16 APPROPRIATION SHALL LAPSE JUNE 30, 2005.
17 SECTION 702. GENERAL RIGHTS AND PROHIBITIONS.
18 NOTHING IN THIS ACT SHALL LIMIT THE RIGHTS OR IMPAIR THE
19 OBLIGATIONS OF ANY ASSISTED CITY TO COMPLY WITH THE PROVISIONS
20 OF ANY CONTRACT IN EFFECT ON THE EFFECTIVE DATE OF THIS ACT OR
21 SHALL IN ANY WAY IMPAIR THE RIGHTS OF THE OBLIGEES OF ANY
22 ASSISTED CITY WITH RESPECT TO ANY SUCH CONTRACT.
23 SECTION 703. NONDISCRIMINATION.
24 THE AUTHORITY SHALL COMPLY IN ALL RESPECTS WITH THE
25 NONDISCRIMINATION AND CONTRACT COMPLIANCE PLANS USED BY THE
26 DEPARTMENT OF GENERAL SERVICES TO ASSURE THAT ALL PERSONS ARE
27 ACCORDED EQUALITY OF OPPORTUNITY IN EMPLOYMENT AND CONTRACTING
28 BY THE AUTHORITY AND ITS CONTRACTORS, SUBCONTRACTORS, ASSIGNEES,
29 LESSEES, AGENTS, VENDORS AND SUPPLIERS.
30 SECTION 704. CONSTRUCTION OF ACT.
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1 (A) LIBERAL CONSTRUCTION.--THE PROVISIONS OF THIS ACT
2 PROVIDING FOR SECURITY FOR AND RIGHTS AND REMEDIES OF OBLIGEES
3 OF THE AUTHORITY SHALL BE LIBERALLY CONSTRUED TO ACHIEVE THE
4 PURPOSES STATED AND PROVIDED FOR BY THIS ACT.
5 (B) SEVERABILITY.--IF ANY PROVISION OF THE TITLE OR ANY
6 CHAPTER, SECTION OR CLAUSE OF THIS ACT, OR THE APPLICATION
7 THEREOF TO ANY PERSON, PARTY, CORPORATION, PUBLIC OR PRIVATE,
8 SHALL BE JUDGED INVALID BY A COURT OF COMPETENT JURISDICTION,
9 SUCH ORDER OR JUDGMENT SHALL BE CONFINED IN ITS OPERATION TO THE
10 CONTROVERSY IN WHICH IT WAS RENDERED AND SHALL NOT AFFECT OR
11 INVALIDATE THE REMAINDER OF ANY PROVISION OF THE TITLE OR ANY
12 CHAPTER OR ANY SECTION OR CLAUSE OF THIS ACT, OR THE APPLICATION
13 OF ANY PART THEREOF TO ANY OTHER PERSON, PARTY, CORPORATION,
14 PUBLIC OR PRIVATE, OR CIRCUMSTANCE, AND, TO THIS END, THE
15 PROVISIONS OF THE TITLE OR ANY CHAPTER, SECTION OR CLAUSE OF
16 THIS ACT HEREBY ARE DECLARED TO BE SEVERABLE. IT IS HEREBY
17 DECLARED AS THE LEGISLATIVE INTENT THAT THIS ACT WOULD HAVE BEEN
18 ADOPTED HAD ANY PROVISION DECLARED UNCONSTITUTIONAL NOT BEEN
19 INCLUDED HEREIN.
20 SECTION 705. LIMITATION OF AUTHORITY POWERS.
21 EXCEPT AS PROVIDED IN SECTION 210(I), NOTHING CONTAINED IN
22 THIS ACT SHALL BE CONSTRUED TO CONFER UPON THE AUTHORITY ANY
23 POWERS WITH RESPECT TO A SCHOOL DISTRICT.
24 SECTION 706. REPEAL.
25 ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS THEY ARE
26 INCONSISTENT WITH THIS ACT.
27 SECTION 707. EFFECTIVE DATE.
28 THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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