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PRIOR PRINTER'S NOS. 1748, 1839
PRINTER'S NO. 1884
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1221
Session of
2015
INTRODUCED BY COSTA, FONTANA, SCARNATI, TEPLITZ, VULAKOVICH,
RESCHENTHALER, BREWSTER, YUDICHAK AND HUGHES, MAY 2, 2016
AS AMENDED ON SECOND CONSIDERATION, JUNE 6, 2016
AN ACT
Amending the act of February 12, 2004 (P.L.73, No.11), entitled
"An act providing for intergovernmental cooperation in cities
of the second class; establishing an intergovernmental
authority; providing for financing, for bankruptcy and for
sovereign immunity; and making an appropriation," in general
provisions, further providing for definitions; in
intergovernmental cooperation authority for cities of the
second class, further providing for governing board, for
powers and duties, for term of existence, AND for annual
report to be filed and annual audits and providing for
distribution of gaming revenue.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 104 of the act of February 12, 2004
(P.L.73, No.11), known as the Intergovernmental Cooperation
Authority Act for Cities of the Second Class, is amended by
adding a definition to read:
Section 104. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
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"Gaming revenue." The local share assessment collected from
gaming revenue by the Department of Revenue for distribution to
municipalities hosting licensed facilities under 4 Pa.C.S. Ch.
14 (relating to revenues).
* * *
Section 2. Section 202(d) and (h) of the act are amended to
read:
Section 202. Governing board.
* * *
(d) Meetings.--After the initial organizational meeting, the
board shall meet as frequently as it deems appropriate but at
least once during each quarter of the fiscal year. In addition,
a meeting of the board shall be called by the chairperson if a
request for a meeting is submitted to the chairperson by at
least two members of the board.
(d.1) Quorum and open meetings .-- A majority of the board
shall constitute a quorum for the purpose of conducting the
business of the board and for all other purposes. All actions of
the board shall be taken by a majority of the board members
present, except as otherwise specifically noted. The provisions
of 65 Pa.C.S. Ch. 7 (relating to open meetings) shall apply to
the board.
* * *
(h) Statutes applying to authority.--
(1) The provisions of the following acts shall apply to
the [authority] board:
(i) 65 Pa.C.S. Ch. 7 (relating to open meetings).
(ii) The act of [June 21, 1957 (P.L.390, No.212),
referred to] February 14, 2008 (P.L.6, No.3), known as
the Right-to-Know Law.
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(iii) Except as set forth in paragraph (2), the act
of July 19, 1957 (P.L.1017, No.451), known as the State
Adverse Interest Act.
(iv) 65 Pa.C.S. Ch. 11 (relating to ethics standards
and financial disclosure).
(v) 62 Pa.C.S. (relating to procurement).
(1.1) The provisions of the following acts shall apply
to the executive director of the authority:
(i) Except as set forth in paragraph (2), the act of
July 19, 1957 (P.L.1017, No.451), known as the State
Adverse Interest Act.
(ii) 65 Pa.C.S. Ch. 11 (relating to ethics standards
and financial disclosure).
(2) Notwithstanding the provisions of the State Adverse
Interest Act, the Secretary of the Budget and the director of
finance of each assisted city shall, while serving as ex
officio members of the board, also serve in their official
capacities with respect to the negotiation and execution of
intergovernmental cooperation agreements and other agreements
between an assisted city and the authority.
Section 3. Section 203(b)(4) of the act is amended and the
subsection is amended by adding paragraphs to read:
Section 203. Powers and duties.
* * *
(b) Specific duties.--The authority shall have the powers
and its duties shall be:
* * *
(4) To make annual signed reports within 120 days after
the close of the assisted city's fiscal year[, commencing
with the fiscal year ending December 31, 2003,] to the
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Governor and the General Assembly describing the city's
financial condition and the authority's progress with respect
to restoring the financial stability of assisted cities and
achieving balanced budgets for assisted cities. [Such reports
shall be] Each report shall:
(i) Be filed with the Governor, with the presiding
officers of the Senate and the House of Representatives,
with the chairperson and minority chairperson of the
Appropriations Committee of the Senate and the
chairperson and the minority chairperson of the
Appropriations Committee of the House of Representatives
and with the governing body, mayor and controller of the
assisted city and be publicly available in the assisted
city during normal business hours for public inspection
and on the authority's publicly accessible Internet
website, and may be reproduced by any member of the
public at commercial costs of reproduction. [Such report
shall clearly]
(ii) Clearly show by consistent category the last
five years of operating revenues and expenditures,
capital expenditures, gross and net indebtedness
transactions, including a schedule of principal and
interest, five-year projections of the assisted city's
operating and capital budgets, and the entire projected
indebtedness transactions, including a schedule of
principal and interest of such indebtedness until any and
all debt has been completely retired. [Such report shall
contain]
(iii) Contain a narrative explaining progress of the
assisted city in meeting its annual and five-year
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budgetary objectives, an appraisal by the authority of
the progress the assisted city is making to achieve its
goals and an appraisal of the extent to which the
assisted city is making a good faith effort to achieve
its goals. [Such report shall disclose]
(iv) Disclose any violations of Federal and State
law that the authority may have discovered. [Such report
shall include]
(v) Include as appendixes all historical loans or
other contracts entered into by the assisted city and its
authorities.
(vi) Contain detailed accounting on gaming revenue
under 4 Pa.C.S. § 1403(c) (3)(xv) (relating to
establishment of State Gaming Fund and net slot machine
revenue distribution), and the distribution of gaming
revenue in accordance with section 210.1, that shall
include the status of all gaming revenue not yet
distributed and demonstrate compliance with the
procedures and requirements of section 210.1(c).
(5) To establish and maintain a publicly accessible
Internet website that contains, but is not limited to, all of
the following:
(i) Intergovernmental cooperation agreements under
paragraph (3).
(ii) Annual reports required under paragraph (4).
(iii) The authority's annually adopted budget under
section 206.
(iv) Audits required under section 207.
(v) Contracts that the authority has entered into
with third parties.
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(6) To adopt and publish a records retention policy that
is consistent with the records retention policy of the Office
of Administration as published in Manual 210.9, The
Commonwealth's General Records Retention and Disposition
Schedule, adopted April 4, 2016 . The policy shall be updated
annually to remain consistent with the Office of
Administration.
* * *
Section 4. Sections 204 and 207 of the act are amended to
read:
Section 204. Term of existence.
(a) Length.--The authority shall exist for a term of at
least seven years. If, after seven years, an assisted city has
had annual operating budgets and five-year financial plans
approved by the board for at least the three immediately
preceding years, the Secretary of Community and Economic
Development shall certify that the authority is no longer
needed, and the provisions of this chapter [will no longer be in
effect] shall no longer apply to the assisted city 90 days
following that certification. Upon termination of the authority,
records and documents of the authority shall be transferred to
the director of finance of the assisted city. The authority
shall submit a final report on its activities and the city's
fiscal condition to the Governor and the General Assembly within
60 days of its termination.
(b) Limitation.--The Secretary of Community and Economic
Development may not certify that the authority is no longer
necessary under subsection (a) until oversight is terminated
under the act of July 10, 1987 (P.L.246, No.47), known as the
Municipalities Financial Recovery Act, or June 30, 2019,
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whichever is later.
(c) Redistribution.--
(1) If the authority is terminated under subsection (a)
or (b) and gaming revenue was distributed to and under the
exclusive control of the authority under 4 Pa.C.S. § 1403(c)
(3)(xv) (relating to establishment of State Gaming Fund and
net slot machine revenue distribution), the gaming revenue
shall be redistributed to an assisted city to increase the
level of funding to the municipal pension funds of an
assisted city.
(2) The gaming revenue shall be in addition to and shall
not replace the minimum obligation that the assisted city is
required to contribute to its pension funds under the act of
December 18, 1984 (P.L.1005, No.205), known as the Municipal
Pension Plan Funding Standard and Recovery Act.
Section 207. Annual report to be filed; annual audits.
[The] By December 31 following the end of each fiscal year,
the authority shall file a signed annual report with the
chairperson and the minority chairperson of the Appropriations
Committee of the Senate and chairperson and the minority
chairperson of the Appropriations Committee of the House of
Representatives, which shall make provisions for the accounting
of revenues and expenses. The authority shall have its books,
accounts and records audited annually in accordance with
generally accepted auditing standards by an independent auditor
who shall be a certified public accountant, and a copy of his
audit report shall be attached to and be made a part of the
authority's annual report. A concise financial statement shall
be published annually in the Pennsylvania Bulletin.
Section 5. The act is amended by adding a section to read:
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Section 210.1. Distribution of gaming revenue.
(a) Authority determination.--Notwithstanding any other
provision of law and not less than 30 days preceding each
scheduled quarterly distribution of gaming revenue under 4
Pa.C.S. § 1403(c)(3)(i) (relating to establishment of State
Gaming Fund and net slot machine revenue distribution) to a host
municipality that is an assisted city, the board shall vote
whether or not to direct the assisted city to use the gaming
revenue pursuant to 4 Pa.C.S. § 1403(c)(3)(xv).
(b) Debt or pension funding.--If the authority votes to
require an assisted city to use gaming revenue under 4 Pa.C.S. §
1403(c)(3)(xv)(A) or (B):
(1) the authority shall notify the Secretary of the
Budget;
(2) the Commonwealth shall distribute the gaming revenue
directly to the assisted city as provided for under 4 Pa.C.S.
§ 1403(c)(3)(i); and
(3) the assisted city shall use the gaming revenue as
directed by the authority.
(c) Other purpose.--
(1) IF THE AUTHORITY VOTES TO DIRECT AN ASSISTED CITY TO
USE GAMING REVENUE FOR A PURPOSE UNDER 4 PA.C.S. § 1403(C)(3)
(XV)(C) WITHOUT CONDITIONS, THE AUTHORITY SHALL NOTIFY THE
SECRETARY OF THE BUDGET AND THE COMMONWEALTH SHALL DISTRIBUTE
THE GAMING REVENUE DIRECTLY TO THE ASSISTED CITY AS PROVIDED
FOR UNDER 4 PA.C.S. § 1403(C)(3)(I) TO BE USED BY THE
ASSISTED CITY AS DIRECTED BY THE AUTHORITY.
(1) (2) If the authority votes to direct an assisted
city to use gaming revenue for a purpose under 4 Pa.C.S. §
1403(c)(3)(xv)(C) WITH CONDITIONS , the authority shall
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transmit in writing to the assisted city and the Secretary of
the Budget no more than five days from the time of the vote,
conditions that the assisted city must meet , including the
purpose and time period for meeting the conditions, before
distribution of the gaming revenue may be made to the
assisted city.
(2) (3) If the assisted city provides the authority with
information that, to the authority's satisfaction, meets the
conditions imposed by the authority, the authority shall
certify its decision to the Secretary of the Budget and the
Commonwealth shall distribute the gaming revenue directly to
the assisted city as provided for under 4 Pa.C.S. § 1403(c)
(3)(i).
(3) (4) If the assisted city needs additional time to
meet the conditions imposed by the authority, the assisted
city shall reply to the authority in writing with an update
on the process for meeting the conditions and a projection of
the time period that will be needed to complete the
conditions .
(4) (5) (i) The authority shall certify to the
Secretary of the Budget if the assisted city fails to
meet the conditions imposed under paragraph (1) (2) and
that no distribution of gaming revenue should be made to
the assisted city until the conditions are met.
(ii) The authority shall, by majority vote,
determine when the conditions which caused an assisted
city to be certified as not in compliance have been met
and shall promptly certify that fact to the Secretary of
the Budget.
(iii) Upon receipt of the certification, the
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Secretary of the Budget shall release the gaming revenue
withheld from the assisted city, including the interest
and income earned on the gaming revenue during the period
withheld, directly to the assisted city.
(5) (6) (i) If the assisted city disagrees with the
authority's certification that the conditions have not
been met, the assisted city may request that the
Secretary of the Budget determine whether the assisted
city has met the conditions.
(ii) If the Secretary of the Budget determines that
the conditions have been met, the Secretary of the Budget
shall provide notice to the assisted city and the
authority and shall distribute the gaming revenue,
including interest and income earned on the gaming
revenue during the period withheld, directly to the
assisted city.
(iii) If the Secretary of the Budget determines that
the conditions have not been met, the Secretary of the
Budget shall provide notice to the assisted city and the
authority and require that the assisted city meet the
conditions under this section.
(iv) The Secretary of the Budget may not distribute
the gaming revenue, including interest and income earned
on the gaming revenue during the period withheld, under
this paragraph until the Secretary of Budget is satisfied
that the assisted city has met the conditions imposed
under this section.
Section 6. This act shall take effect in 60 days.
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