THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY PILEGGI, ALLOWAY, EICHELBERGER, ERICKSON, ORIE, FONTANA, YAW, SOLOBAY, WAUGH, RAFFERTY, SMUCKER, FOLMER, EARLL, PIPPY AND MENSCH, FEBRUARY 4, 2011

REFERRED TO LOCAL GOVERNMENT, FEBRUARY 4, 2011  

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in municipalities, further providing

for administration and for money.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 5610 and 5612 of Title 53 of the

Pennsylvania Consolidated Statutes are amended by adding

subsections to read:

§ 5610.  Governing body.

* * *

(g)  Liability.--If repayment is not made under section

5612(a.1)(2) (relating to money of authority), members of the

board who approved the grant or loan are jointly and severally

liable to make the repayment and a ratepayer shall have standing

to bring an action to recover the money on behalf of the

authority.

§ 5612.  Money of authority.

* * *

(a.1)  Prohibition.--

(1)  Money of the authority may not be used for any

grant, loan or other expenditure for any purpose other than a

service or project directly related to the mission or purpose

of the authority as set forth in the articles of

incorporation or in the resolution or ordinance establishing

the authority under section 5603 (relating to method of

incorporation).

(2)  The recipient of money used in violation of

paragraph (1) shall repay the money to the authority.

* * *

Section 2.  The addition of 53 Pa.C.S. § 5610(g) shall apply

to grants, loans and expenditures made on or after the effective

date of this section.

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