Section 12720.203 - Powers and duties(a)General powers and duties.--The authority is established for the purposes, without limitation, by itself or by agreement in cooperation with others, of assisting cities in solving their budgetary and financial problems and helping cities achieve and maintain access to the capital markets.(b)Specific duties.--The authority shall have the powers and its duties shall be: (1) To assist cities in achieving financial stability in any manner consistent with the purposes and powers described by this act.(2) To assist cities in avoiding defaults, eliminating and financing deficits, maintaining sound budgetary practices and avoiding the interruption of municipal services.(3) To borrow money and issue bonds to assist cities.(4) To negotiate intergovernmental cooperation agreements with cities containing such terms and conditions as will enable such cities to eliminate and avoid deficits, maintain sound budgetary practices and avoid interruption of municipal services.(5) To make annual reports within 120 days of the close of the authority's fiscal year, commencing with the fiscal year ending June 30, 1992, to the Governor and the General Assembly describing its progress with respect to restoring the financial stability of assisted cities and achieving balanced budgets for assisted cities, such reports to 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.(6) To comply with the provisions of section 317 concerning the maximum amount of the first series of authority bonds and the date of issuance thereof.(c)Specific powers.--In addition to the powers and duties set forth elsewhere in this act, the authority shall have the specific powers: (1) To obtain copies of all reports regarding the revenues, expenditures, budgets, costs, plans, operations, estimates and any other financial or budgetary matters of an assisted city or any corporate entity.(2) To obtain additional reports on the above matters in such form as are deemed necessary by the authority.(3) To make factual findings concerning an assisted city's budgetary and fiscal affairs.(4) To make recommendations to an assisted city concerning its budgetary and fiscal affairs.(5) To make recommendations to the Governor and the General Assembly regarding legislation or resolutions that affect Commonwealth aid or mandates to an assisted city or that concern an assisted city's taxing powers or relate to an assisted city's fiscal stability.(6) To provide financial assistance, including loans and grants, to assist cities upon such terms and conditions as may be approved by a qualified majority of the board or as may be specified by the General Assembly to eliminate or prevent deficits of a city.(7) Subject to any limitations in agreements with obligees of the authority, to enter into and amend as shall be necessary from time to time intergovernmental cooperation agreements with a city provided that such agreements and amendments are approved by a qualified majority of the board.(8) To exercise powers of review concerning the budgetary and fiscal affairs of the city consistent with this act and the city's home rule charter or other optional plan of government.(9) To receive revenues from any source, directly or by assignment, pledge or otherwise.(10) To sue and be sued, implead and be impleaded, complain and defend in all courts.(11) To adopt, use and alter at will a corporate seal.(12) To make bylaws for the management and regulation of its affairs and adopt rules, regulations and policies in connection with the performance of its functions and duties which, notwithstanding any other provision of law to the contrary, shall not be subject to review pursuant to the act of June 25, 1982 (P.L. 633, No. 181), known as the Regulatory Review Act.(13) To make and enter into contracts and other instruments necessary or convenient for the conduct of its business and the exercise of the powers of the authority.(14) To appoint officers, agents, employees and servants and to prescribe their duties and to fix their compensation as set forth in section 202(g).(15) To retain counsel and auditors to render such professional services as the authority deems appropriate. The authority shall not be considered either an executive agency or an independent agency for the purpose of the act of October 15, 1980 (P.L. 950, No. 164), known as the Commonwealth Attorneys Act, but shall possess the same status for such purpose as the Auditor General, State Treasurer and the Pennsylvania Public Utility Commission; except that the provisions of section 204(b) and (f) of the Commonwealth Attorneys Act shall not apply to the authority; notwithstanding the provisions of section 221(l) of the act of October 5, 1980 (P.L. 693, No. 142), known as the JARA Continuation Act of 1980, the authority, through its legal counsel, shall defend actions brought against the authority or its members, officers, officials and employees when acting within the scope of their official duties.(16) To cooperate with any Federal agency or government agency.(17) To acquire, by gift or otherwise, purchase, hold, receive, lease, sublease and use any franchise, license, property, real, personal or mixed, tangible or intangible or any interest therein. However, the authority shall be absolutely limited in its power to acquire real property under this act to real property that will be used only for the office space in which the authority will conduct its daily business.(18) To sell, transfer, convey and dispose of any property, real, personal or mixed, tangible or intangible or any interest therein.(19) To enter into contracts for group insurance and to contribute to retirement plans for the benefit of its employees and to enroll its employees in an existing retirement system of a government agency.(20) To accept, purchase or borrow equipment, supplies, services or other things necessary or convenient to the work of the authority from other government agencies, and all government agencies are authorized to sell, lend or grant to the authority such equipment, supplies, services or other things necessary or convenient to the work of the authority.(21) To borrow money for the purpose of assisting a city, or in anticipation of the receipt of income of the authority or of an assisted city and to evidence the same; make and issue bonds of the authority; secure the payment of such bonds or any part thereof, by pledge of or security interest in all or any of its revenues, receipts, accounts, tangible personal property and contract rights; make such agreements with the purchasers or holders of such bonds or with other obligees of the authority in connection with any bonds, whether issued or to be issued, as the authority shall deem advisable, which agreements shall constitute contracts with such holders or purchasers; obtain such credit enhancement or liquidity facilities in connection with any bonds as the authority shall determine to be advantageous; and, in general, provide for the security for said bonds and the rights of the holders thereof.(22) To lend, grant or otherwise transfer or pledge for the benefit of an assisted city such assets, including proceeds of bonds, as the authority deems appropriate, to be used by such a city as capital or operating funds as provided in an intergovernmental cooperation agreement, to refinance or secure debt of an assisted city or for other purposes consistent with this act.(23) To enter into agreements with an assisted city that receives funds or other financial assistance from the authority pursuant to which such city may pledge assets, rights, revenues and receipts, including tax revenues, to secure the repayment of such funds or assistance by such city if such security is required by the authority.(24) To invest any funds held by the authority as set forth in section 311(b).(25) To receive and hold assets, moneys and funds from any source, including, but not limited to, appropriations, grants, gifts and such tax revenues as may be allocated or directed to it by law for the purposes of securing authority indebtedness and providing assistance to cities in accordance with this act.(26) To procure such insurance, guarantees and sureties containing such coverages, including, without limitation, contracts insuring or guaranteeing the timely payment in full of principal, interest and premium, if any, on bonds of the authority, or providing liquidity for purchase of bonds of the authority, in such amounts, from such insurers, sureties, guarantors or other parties as the authority may determine to be necessary or desirable for its purposes.(27) To pledge the credit of the authority in the manner provided in section 304.(28) To do all acts and things necessary or convenient for the promotion of its purposes and the general welfare of the authority and to carry out the powers granted to it by this act or any other acts.(d)Intergovernmental cooperation agreements.--The authority shall have the power and its duty shall be to enter into and to implement fully such intergovernmental cooperation agreements with cities as are approved by a qualified majority of the board. No bonds may be issued by the authority until an intergovernmental cooperation agreement has been approved by a qualified majority of the board, except that the authority, at anytime during the first 45 days after the effective date of this act, may enter into an interim financing arrangement in anticipation of the initial bond issue without an intergovernmental cooperation agreement in effect. Such agreements, including, but not limited to, the initial agreements described in section 209(a), may include such definitions and procedures as may be necessary to implement the financial planning process set forth in sections 209 and 210. Intergovernmental cooperation agreements as well as other service agreements to provide assistance to a city shall not be deemed to create debt of the city. Intergovernmental cooperation agreements shall contain such terms and be negotiated in such manner as the authority and an assisted city shall determine consistent with this act and the Constitution of Pennsylvania. (1) A city may enter into an intergovernmental cooperation agreement in which it, consistent with this act, covenants to cooperate or agree in the exercise of any function, power or responsibility with, or delegate or transfer any function, power or responsibility to, the authority upon the adoption by the governing body of such city of an ordinance authorizing and approving the intergovernmental cooperation agreement.(2) An ordinance that authorizes a city to enter into an intergovernmental cooperation agreement with the authority shall specify: (i) the purpose and objectives of the agreement;(ii) the conditions of the agreement; and(iii) the term of the agreement, including provisions relating to its termination.(3) Except for assistance provided through an interim financing arrangement, as provided for in this subsection, or assistance necessary to enable a city to pay principal of or interest on its outstanding bonds, or lease payments securing bonds of other government agencies, as provided for in section 209(a), no assistance shall be provided by the authority to a city unless an intergovernmental cooperation agreement is in effect.(e)Limitation.--Notwithstanding any purpose or general or specific power granted by this act or any other act, whether express or implied: (1) The authority shall have no power to pledge the credit or taxing powers of the Commonwealth or any other government agency, including an assisted city, except the credit of the authority created by this act, nor shall any of the bonds of the authority be deemed a debt or liability of the Commonwealth or of any other government agency, including a city.(2) Neither the Commonwealth nor any government agency, including a city, except the authority created by this act, shall be liable for the payment of the principal, interest or premium on any such bonds.(3) Notwithstanding any provision of this or any other law to the contrary, or of any implication that may be drawn therefrom, the Commonwealth and all other government agencies, except the authority but including an assisted city (unless otherwise agreed to by such city pursuant to this act), shall have no legal or moral obligation for the payment of any expenses or obligations of the authority, including, but not limited to, bond principal and interest, the funding or refunding of any reserves and any administrative or operating expenses whatsoever, other than for the advance of funds for initial operating expenses of the authority contained in section 701 to be repaid by the authority as set forth in sections 206(c) and 701.(4) Bonds of the authority shall contain a prominent statement of the limitation set forth in this subsection and shall further recite that obligees of the authority shall have no recourse, either legal or moral, to the Commonwealth or to any other government agency, including the city, for payment of such bonds. 1991, June 5, P.L. 9, No. 6, § 203, imd. effective. Amended 2022, July 7, P.L. 440, No. 36, § 4, effective in 60 days [Sept. 6, 2022].