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House of Representatives
Session of 2013 - 2014 Regular Session


Posted: June 27, 2014 01:06 PM
From: Representative Ryan E. Mackenzie and Rep. Joe Emrick
To: All House members
Subject: Safeguards for City and Municipal Authority Accounts
In the near future, we will introduce legislation to help safeguard public funds paid to certain governmental entities. In recent years, it has, unfortunately, become all too common for an individual who has access to municipal funds to steal from those accounts, particularly when the name of the account is in the name of an individual as opposed to the name of the municipality or municipal authority. Some of the municipal codes do provide that an account shall be in the name of the municipality, but not all codes provide this safeguard. Therefore, we plan to introduce legislation to address this oversight in both the Third Class City Code (Act 317 of 1931) and the Municipality Authorities Act (53 Pa.C.S. Ch. 56).

Please join us in co-sponsoring these two important bills.

Document #1

Introduced as HB2415

Description: The legislation amending the Third Class City Code, sponsored by Rep. Mackenzie, tracks the language proposed to be added to the Local Tax Collection Law by providing that no payment shall be payable to an account that is in or includes an individual’s name but may be payable to an account that includes the name of an office, title or position.

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Document #2

Description: The legislation amending the Municipality Authorities Act, sponsored by Rep. Emrick, provides that the treasurer, or designated recipient, shall deposit the money in an account with a designated depository, but the name of the account shall not include the name of an individual. In some instances, a third party collects on behalf of an authority so an account name may not necessarily be in the name of the authority.
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