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PRINTER'S NO. 1748
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
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
MAY 2, 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, 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)(1) 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.--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 board and executive director of the authority:
(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.
(iii) Except as set forth in paragraph (2), the act
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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).
* * *
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 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
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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
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 any gaming
revenue that the authority is withholding from an
assisted city, as provided for under 4 Pa.C.S. § 1403(c)
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(3)(xv) (relating to establishment of State Gaming Fund
and net slot machine revenue distribution), including the
reasons that the revenue is being withheld, the
conditions that the assisted city must meet for the
revenue to be released and the amount of revenue being
withheld.
(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.
(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, and shall annually update
the policy 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
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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 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 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,
whichever is later.
(c) Redistribution.--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.
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
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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:
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, by a
majority vote of all the members, 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), the authority shall notify the
Secretary of the Budget, 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 the assisted city shall use
the gaming revenue as required by the authority.
(c) Other purpose.--If the authority votes to require an
assisted city to use gaming revenue for a purpose under 4
Pa.C.S. § 1403(c)(3)(xv)(C), the authority shall transmit in
writing to the assisted city and the Secretary of the Budget no
more than five days from the time of the vote, the purpose and
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conditions that the assisted city must meet before distribution
of the gaming revenue is made to the assisted city. The
following shall apply:
(1) If the assisted city provides the authority with
information that, to the authority's satisfaction, meets the
conditions required under this subsection, 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).
(2) If the assisted city requires additional time to
meet the conditions required by the authority, the assisted
city shall reply in writing within five days with an update
on the process for meeting the conditions and a projection of
time period that will be needed to complete the requirements.
The authority shall notify the Secretary of the Budget that
the assisted city is not in compliance with the conditions to
meet the purposes required under paragraph (3) and that no
distribution of gaming revenue is to be made to the assisted
city until the conditions are met. The authority shall, by
majority vote, determine when the conditions which caused an
assisted city to be certified as not in compliance have
ceased to exist and shall promptly notify the Secretary of
the Budget of the vote. Upon notification, the Secretary of
the Budget shall release the gaming funds held in escrow,
including the interest and income earned on the funds during
the period held in escrow directly to the assisted city.
(3) If the assisted city and the authority are in
dispute as to whether the conditions have been met, the
assisted city may make a request to the Secretary of the
Budget to make a determination that the assisted city has met
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the conditions. The following shall apply:
(i) 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 release the gaming funds held in
escrow, including interest and income earned on the
gaming funds during the period held in escrow directly to
the assisted city.
(ii) If the Secretary of the Budget determines that
the assisted city has not met the conditions, the
Secretary of the Budget shall provide notice to the
assisted city and the authority and require that the
assisted city continue to meet the conditions under this
section.
Section 6. This act shall take effect in 60 days.
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