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ARTICLE · 14 AUGUST 2001

Amendments To Authorities Act Will Impede Intermunicipal Cooperation

United StatesLitigation, Mediation & Arbitration
George Aman III
George Aman III

When the Governor signed Senate Bill No. 612 as Act No. 112 on December 12, 2000, he laid to rest an issue for authorities that had been addressed in several Bills over the preceding years. However, what started as an amendment to the Municipal Authorities Act, to solve an authority problem, now contains provisions applicable to municipalities.

History

The remote ancestor of this bill was introduced following an attempt by an authority in Chester County to acquire an office building in the City of Harrisburg and lease it to a State agency. That type of project probably would have been illegal under the Authorities Act anyway, but this amendment makes it clear that authorities may not acquire projects "solely for revenue producing purposes", subject to certain limitations.

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