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PRINTER'S NO. 178
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
205
Session of
2019
INTRODUCED BY BLAKE, FOLMER, DiSANTO, SCHWANK, COSTA, BOSCOLA
AND BROWNE, FEBRUARY 5, 2019
REFERRED TO LOCAL GOVERNMENT, FEBRUARY 5, 2019
AN ACT
Amending Titles 53 (Municipalities Generally) and 65 (Public
Officers) of the Pennsylvania Consolidated Statutes, in
municipal authorities, further providing for money of
authority and for competition in award of contracts; and, in
ethics standards and financial disclosure, further providing
for investigations by commission.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 5612(a.1)(1) and 5614(e) of Title 53 of
the Pennsylvania Consolidated Statutes are amended to read:
§ 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). Proceeds from borrowing under Subpart B of
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Part VII (relating to indebtedness and borrowing) may not be
used for a purpose unrelated to the project for which the
debt was incurred or placed in an account used by the
authority or another local government unit for an unrelated
purpose.
* * *
§ 5614. Competition in award of contracts.
* * *
(e) Conflict of interest.--No member of the authority or
officer or employee of the authority may directly or indirectly
be a party to or be interested in any contract or agreement with
the authority if the contract or agreement establishes liability
against or indebtedness of the authority. Any contract or
agreement made in violation of this subsection is void, and no
action may be maintained on the agreement against the authority.
A violation under this subsection constitutes a violation of 65
Pa.C.S. § 1103(a) (relating to restricted activities) that is
enforceable under 65 Pa.C.S. Ch. 11 (relating to ethics
standards and financial disclosure).
* * *
Section 2. Section 1108(a) and (c) of Title 65 are amended
to read:
§ 1108. Investigations by commission.
(a) Preliminary inquiry.--Upon a complaint signed under
penalty of perjury by any person or upon its own motion, the
commission, through its executive director, shall conduct a
preliminary inquiry into any alleged violation of this chapter
or 53 Pa.C.S. § 5614(e) (relating to competition in award of
contracts). The commission shall keep information, records and
proceedings relating to a preliminary inquiry confidential. The
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commission shall, however, have the authority to refer the case
to law enforcement officials during a preliminary inquiry or
anytime thereafter without providing notice to the subject of
the inquiry. The commission shall complete its preliminary
inquiry within 60 days of its initiation.
* * *
(c) Initiation of investigation.--If a preliminary inquiry
establishes reason to believe that this chapter or 53 Pa.C.S. §
5614(e) has been violated, the commission may, through its
executive director, initiate an investigation to determine if
there has been a violation. The commission shall keep
information, records and proceedings relating to an
investigation confidential until a final determination is made,
except as otherwise provided in subsection (g). No investigation
may be commenced until the person who is the subject of the
investigation has been notified and provided a general statement
of the alleged violation or violations of this chapter and other
applicable statutes with respect to such investigation. Service
of notice is complete upon mailing which shall be by certified
or registered mail. The commission shall notify the complainant
within 72 hours of the commencement of an investigation, and,
thereafter, the commission shall advise the complainant and the
person who is the subject of the investigation of the status of
the investigation at least every 90 days until the investigation
is terminated. The commission shall, within 180 days of the
initiation of an investigation, either terminate the
investigation pursuant to subsection (d) or issue a findings
report pursuant to subsection (e). Upon a showing by the
executive director of the need for extension of this period, the
commission may extend an investigation for up to two 90-day
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periods, provided that each 90-day extension shall be approved
by a majority vote of members present. In no event shall a
findings report be issued later than 360 days after initiation
of an investigation.
* * *
Section 3. This act shall take effect in 60 days.
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