Bill Text: PA HB2477 | 2009-2010 | Regular Session | Amended

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Bill Title: Further providing for applicability, for enumeration of elected officers and for official records of coroner; adding provisions for required fiscal security through bonding, blanket bonding and insuring of elected and appointed county officers and employees; providing for determining the form, amount and payment of premiums for and the filing and recording of the required security, for the subsequent issuance of official commissions; further providing for the governing board of the convention center authority; and making related repeals.

Spectrum: Bipartisan Bill

Status: (Enrolled - Dead) 2010-11-17 - Presented to the Governor [HB2477 Detail]

Download: Pennsylvania-2009-HB2477-Amended.html

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SENATE AMENDED
PRIOR PRINTER'S NOS. 3677, 3882, 3956 PRINTER'S NO. 4471
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2477 Session of2010
INTRODUCED BY FABRIZIO, J. EVANS, HARKINS, HORNAMAN AND SONNEY, APRIL 29, 2010
SENATOR EICHELBERGER, LOCAL GOVERNMENT, IN SENATE, AS AMENDED, OCTOBER 12, 2010
AN ACT
Amending the act of August 9, 1955 (P.L.323, No.130), entitled,
as amended, "An act relating to counties of the first, third,
fourth, fifth, sixth, seventh and eighth classes; amending,
revising, consolidating and changing the laws relating
thereto; relating to imposition of excise taxes by counties,
including authorizing imposition of an excise tax on the
rental of motor vehicles by counties of the first class; and
providing for regional renaissance initiatives," further
providing for applicability, for enumeration of elected <--
officers and for official records of coroner; adding
provisions for required fiscal security through bonding,
blanket bonding and insuring of elected and appointed county
officers and employees; providing for determining the form,
amount and payment of premiums for and the filing and
recording of the required security, for the subsequent
issuance of official commissions; further providing for the
governing board of the convention center authority; and <--
making related repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2399.61 of the act of August 9, 1955 <--
(P.L.323, No.130), known as The County Code, added October 18,
2000 (P.L.541, No.73), is amended to read:
Section 1. The title of the act of August 9, 1955 (P.L.323, <--
No.130), known as The County Code, amended June 25, 1999
(P.L.182, No.25), is amended to read:
AN ACT
Relating to counties of the first, third, fourth, fifth, sixth,
seventh and eighth classes; amending, revising, consolidating
and changing the laws relating thereto; providing for
financial security for officers and employees in counties
other than first class counties; relating to imposition of
excise taxes by counties, including authorizing imposition of
an excise tax on the rental of motor vehicles by counties of
the first class; and providing for regional renaissance
initiatives.
Section 2. Section 102 of the act, amended July 14, 2005
(P.L.312, No.57), is amended to read:
Section 102. Applicability.--(a) Except incidentally, as in
sections 108, 201, 210, 211, 401 and 1401 or as provided in
[Article] Articles XV.2 and XXX, this act does not apply to
counties of the first, second A, or second classes.
(b) Except where otherwise specifically limited, this act
applies to all counties of the third, fourth, fifth, sixth,
seventh and eighth classes.
Section 3. Section 401 of the act is amended by adding a
subsection to read:
Section 401. Enumeration of Elected Officers.--* * *
(f) The office of jury commissioner may be abolished in a
county of the second class, second class A or third through
eighth class if the governing body of the county adopts, by a
majority vote, a resolution abolishing the office of jury
commissioner. Upon approval of the resolution, the office of
jury commissioner shall expire at the completion of the current
jury commissioners' terms of office. The resolution shall not be
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passed in any year in which the office of jury commissioner is
on the ballot.
Section 4. Subdivision (b) of Article IV and sections 802,
803 and 804 of the act are repealed:
[(b) Official Bonds
Section 420. Official Bonds; Requirements.--Each of the
following officers, before entering upon his official duties,
whether he is elected, appointed or appointed to fill a vacancy,
shall give and acknowledge a bond to the county:
(1) Each county commissioner;
(2) The chief clerk of the county commissioners;
(3) The controller;
(4) The county treasurer;
(5) The prothonotary;
(6) The sheriff;
(7) The coroner;
(8) The clerk of courts;
(9) The clerk of the orphans' court; and
(10) The recorder of deeds.
Every such official bond shall be, joint and several, with
one or more corporate sureties which shall be surety companies
authorized to do business in this Commonwealth and duly licensed
by the Insurance Commissioner of the Commonwealth. Counties may
purchase insurance for their elected and appointed officials in
lieu of fidelity bonds provided that the insurance policy covers
the same events of loss and insures the county against the same
misconduct as a fidelity bond in compliance with this article.
Section 421. General Conditions; Commissioners; Treasurer.--
(a) Each official bond shall be conditioned upon the faithful
discharge by the county officer, his deputies, clerks,
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assistants and appointees of all trusts confided in him by
virtue of his office, upon the faithful execution of all duties
required of him by virtue of his office, upon the just and
faithful accounting or payment over, according to law, of all
moneys and all balances thereof paid to, received or held by him
by virtue of his office and upon the delivery to his successor
or successors in office of all books, papers, documents or other
official things held in right of his office.
(b) The bonds of the county commissioners shall be further
conditioned upon the faithful and legal appropriation of county
and other moneys in the county treasury, upon checks and orders
given by them or subject to their control.
(c) The bond of the county treasurer shall be further
conditioned upon a just account of all moneys that may come into
his hands on behalf of any political subdivision within the
county or on behalf of any person, and for the payment to his
successor of any balances of such moneys remaining in his hands.
Section 422. Obligees Suits on Bonds.--(a) Each official
bond shall be taken in the name of the county, and shall be for
the use of the county and the Commonwealth and for the use of
such other person or persons for whom money shall be collected
or received, or as his or her interest shall otherwise appear,
in case of a breach of any of the conditions thereof by the acts
or neglect of the principal on the bond.
(b) The county, the Commonwealth or any other person may sue
upon the said bond in its or his own name for its or his own
use. Acts of Assembly pertaining to actions and limitations of
actions upon official bonds given to the Commonwealth shall
apply to the bonds provided for in this subdivision just as if
they were given to the Commonwealth, except as otherwise
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specifically provided herein.
Section 423. Approval, Substitution or Addition of Surety.--
(a) Each official bond shall contain the name or names of the
surety company or companies bound thereon, and shall be subject
to the approval of the court of common pleas which court may
require such proofs as to it appear necessary or proper in
connection with such bonds.
(b) The court may, at any time, upon cause shown and due
notice to the county officer and his surety or sureties, require
or allow the substitution or the addition of a surety company
acceptable to the court for the purpose of making the bond
sufficient in amount, as required by law, without releasing the
surety or sureties first approved from any accrued liability or
previous action on such bond.
Section 424. Single Bond for Combined Offices.--In counties
wherein any of the aforementioned county offices are combined, a
single bond covering all such offices shall suffice for the
officer thereof, if the court of common pleas approves.
Section 425. Custodians of Official Bonds.--The county
controller shall be custodian of all official bonds, except that
of his own office which shall be held by the county
commissioners. In counties not having a controller, the
commissioners shall be custodian of all bonds, except their own
and that of their chief clerk, which the prothonotary shall
hold.
Section 426. Acknowledgment, Evidence.--Official bonds shall
be acknowledged before the recorder of deeds, except that the
latter officer shall acknowledge his bond before the
prothonotary. A copy of any official bond, certified as true and
correct by the proper officer custodian thereof, shall be
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competent evidence thereof in any judicial proceeding.
Section 427. Amounts of Official Bonds; Exclusive
Provisions.--(a) Except as otherwise specifically provided by
law, the amounts of official bonds shall be determined by the
county commissioners.
(b) Except as otherwise specifically provided by law, this
subdivision shall be deemed to contain the exclusive provisions
for official bonds of county officers.
(c) The provisions of this subdivision shall not apply to
bonds required to be given to the Commonwealth by county
officers acting as agents of the Commonwealth.
Section 428. Premiums of Official Bonds.--The premiums of
all official bonds, including the bond of the register of wills,
shall be paid by the county out of the county treasury.
Section 429. Bonds of Deputies and Other Appointees of
County Officers.--The deputies and other appointees in each
county office, who are required to receive, account for, or hold
any money by virtue of their office or employment, shall give
and acknowledge a single bond covering all such deputies and
appointees payable to the officer in whose office they are
employed.
Every such bond shall be, joint and several, with one or more
corporate sureties which shall be surety companies authorized to
do business in this Commonwealth and duly licensed by the
Insurance Commissioner of the Commonwealth. Counties may
purchase insurance for deputies and other appointees of county
officers in lieu of fidelity bonds provided that the insurance
policy covers the same events of loss and insures the county
against the same misconduct as a fidelity bond in compliance
with this article.
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Each such bond shall be conditioned for the faithful
accounting and payment, according to law, of all money received
by each deputy and appointee bonded, and shall be taken in the
name of the county officer in whose office they are employed,
and shall be for the use of that officer, the county and of the
Commonwealth, and for the use of such other party or parties for
whom he shall collect or receive money as the interest of each
shall appear in case of a breach of the conditions thereof. Each
such bond shall be placed in the custody of the controller,
except those covering employes in the office of the controller,
which shall be filed in the office of the county commissioners.
Section 430. Determination of Bonds of Deputies and Other
Appointees.--Bonds required to be given by the deputies and
other appointees of county officers shall be paid for by the
county and the amounts thereof shall be designated by the salary
board. The salary board shall determine each position for which
the requirement of a bond may be justified as aforesaid, and
shall designate the amount thereof. The salary board shall, in
each case, be constituted the same as if it were fixing the
salary of the deputy or appointee concerned.
Section 431. Insurance to Protect Against Robbery, Burglary
and Larceny; Liability Insurance.--(a) Each county officer or
employe who as part of his official duties handles money or has
money in his possession at any time shall, in addition to any
bond required by law, be covered by or furnish to the county
adequate insurance indemnifying against the loss of such money
through robbery, burglary and larceny. The cost of such
insurance shall be paid by the county and the amount of the
insurance shall be fixed by the commissioners.
Section 432. Bond of Register of Wills.--(a) The register
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of wills, before entering upon the duties of his office, shall,
with one corporate surety or two individual sureties on a form
prepared and supplied by the Secretary of the Commonwealth, give
a joint and several bond to the Commonwealth of Pennsylvania in
the sum set forth for the class of county for which he is an
officer as follows:
Third class counties, ............................. $25,000.
Fourth class counties, ............................ 20,000.
Fifth class counties, ............................. 15,000.
Sixth class counties, ............................. 10,000.
Seventh class counties, ........................... 7,500.
Eighth class counties, ............................ 5,000.
(b) The condition of the bond shall be that the register of
wills shall faithfully execute the duties of his office and well
and truly account for and pay, according to law, all moneys
received by him for the use of the Commonwealth, or for the use
of others by virtue of his office, and to deliver up the books,
seals, records, writings and other official things belonging to
his office whole, safe and undefaced to his successor in office.
(c) Such bond shall be for the use of all persons concerned
and for the relief of all who may be aggrieved by the acts or
neglect of such register.
(d) Such bond shall be submitted to the Secretary of the
Commonwealth for approval and, when he approves the same, he
shall forward the bond, together with the commission of the
register, to the recorder of deeds of the proper county, and so
notify the register who shall cause the bond to be recorded in
the office of the recorder of deeds. After recording the bond
the recorder of deeds shall deliver to the register, his
commission, and forward the bond to the Secretary of the
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Commonwealth for filing.
(e) The bond required by this section shall be the official
bond of the register of wills in lieu of the official bonds
required by this subdivision for other county officers.
Section 433. Form of Bond of Sheriff.--The form of the bond
to be given by the sheriff and his sureties shall be as follows,
to wit: "Know all men by these presents, that we (A. B., C. D.
and E. F.) are held firmly bound unto the County
of .................................. in the sum
of ....... ..................... dollars to be paid to the said
County, or to the Commonwealth, for the uses, intents and
purposes declared and appointed by law, to which payment well
and truly to be made, we bind ourselves, our heirs, executors,
and administrators, jointly and severally, firmly by these
presents, sealed with our seals, dated ............... day
of .......................... Anno Domini ......................
The conditions of the above obligation are such that, if the
said (A. B.) shall and do, without delay, according to law, well
and truly serve and execute all writs and process of the
Commonwealth of Pennsylvania to him directed, and shall and do,
from time to time, upon request to him for that purpose made,
well and truly pay or cause to be paid to the several suitors
and parties interested in the execution of such writs or
process, their lawful attorney, factors, agents or assigns, all
and every sum and sums of money to them respectively belonging,
which shall come to his hands, and shall and do, from time to
time and at all times during his continuance in the said office,
well and faithfully execute and perform all and every of the
trusts and duties to the said office appertaining, then this
obligation to be void, or else to be and remain in full force
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and virtue".
Section 434. Amount of Bond of Sheriff and of Coroner.--(a)
The amount of the official bond of the sheriff shall be as
follows:
Third class counties, ............................. $60,000.
Fourth class counties, ............................ 60,000.
Fifth class counties, ............................. 30,000.
Sixth class counties, ............................. 20,000.
Seventh class counties, ........................... 15,000.
Eighth class counties, ............................ 10,000.
(b) the amount of the official bond of the coroner, in each
class of county, shall be one-fourth of the amount herein set
out for the bond of the sheriff in such class of county.
Section 435. Amount of Bond of County Commissioner.--The
amount of the official bond of each county commissioner shall be
as follows:
Third class counties, ............................. $7,500.
Fourth class counties, ............................ 5,000.
Fifth class counties, ............................. 4,000.
Sixth class counties, ............................. 2,500.
Seventh class counties, ........................... 2,000.
Eighth class counties, ............................ 2,000.
Section 436. Amount of Bond of Recorder of Deeds.--The
amount of the official bond of the recorder of deeds shall be as
follows:
Third class counties, ............................. $15,000.
Fourth class counties, ............................ 10,000.
Fifth class counties, ............................. 10,000.
Sixth class counties, ............................. 5,000.
Seventh class counties, ........................... 5,000.
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Eighth class counties, ............................ 5,000.
Section 437. Amount of Bond of Controller.--The amount of
the official bond of the county controller in all counties shall
be twenty thousand dollars ($20,000).
Section 802. Bond in Favor of Commonwealth.--Each county
treasurer shall, before entering upon the duties of his office,
give bond with sufficient security, to be approved of by at
least two of the judges, if there is more than one judge of the
court of quarter sessions in the county, and in such penalty as
the said judges shall deem sufficient, conditioned for the
faithful discharge of all duties enjoined upon him by law in
behalf of the Commonwealth, and for the payment according to law
of all moneys received by him for the use of the Commonwealth,
which bond shall be taken by and acknowledged before the
recorder of deeds of the same county, and recorded in his
office, and the original bond shall be forthwith transmitted to
the Auditor General. The cost of the bond, its acknowledgment
and recording, shall be borne by the Commonwealth.
Copies of the record of such bond, duly certified by the
recorder of deeds for the time being, shall be good evidence in
any action brought against such treasurer or his sureties on
such bond, according to its form and effect, in the same manner
as the original would be if produced and offered in evidence.
Section 803. Removal from Office for Failure to Transmit
Bond to Auditor General.--If any county treasurer shall fail to
transmit to the Auditor General, within one month after his
election or appointment, the bond required by the preceding
section, he shall be deemed to have forfeited his right to the
office; if he has entered upon the duties thereof, he shall be
ousted in an action of quo warranto in the name of the
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Commonwealth upon the relation of the Attorney General, or of
the district attorney of the county if the latter is so directed
by the county commissioners.
Section 804. When Auditor General to Deliver Up Bond of
Treasurer.--The bond and obligation of the county treasurer
shall be held by the Auditor General for one year after the
settlement of his accounts with the Commonwealth and,
thereafter, if the Auditor General and State Treasurer are fully
satisfied that the county treasurer has settled his accounts and
paid all sums due the Commonwealth, said bond and obligation
shall upon request be delivered to any person entitled to the
same.]
Section 5. Section 1251 of the act is amended to read:
Section 1251. Official Records of Coroner.--Every coroner,
within thirty (30) days after the end of each year, shall
deposit all of his official records and papers for the preceding
year in the office of the prothonotary for [the inspection of
all persons interested therein] access according to the
provisions of the act of February 14, 2008 (P.L.6, No.3), known
as the Right-to-Know Law.
Section 6. The act is amended by adding an article to read:
ARTICLE XV.2
COUNTY OFFICER AND
EMPLOYEE FISCAL SECURITY
(a) Preliminary Provisions
Section 1560. Scope of article.
(a) Scope of article.--This article applies to security
coverage and additional coverage in the form of bonds, blanket
bonds or insurance, protecting against events of loss of money
or property as a result of misconduct by officers and employees
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in counties of the second class, second class A, third class,
fourth class, fifth class, sixth class, seventh class or eighth
class, including counties of these classes which have adopted a
home rule charter or an optional plan.
(b) Inapplicability.--This article shall not apply to bonds
of county treasurers acting as tax collectors as provided in
section 4 of the act of May 25, 1945 (P.L.1050, No.394), known
as the Local Tax Collection Law.
Section 1561. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Additional coverage." Insurance that covers each county
officer or employee who is required to receive, account for or
hold any money or property by virtue of his or her office or
employment and which, at a minimum, indemnifies the county
against the loss of money and property through robbery, burglary
and larceny.
"Blanket bond." Security coverage in the form of a bond for
county officers and employees as follows:
(1) for county officers and employees as a comprehensive
group;
(2) for a group of named county officers and employees;
or
(3) for county officers and employees in scheduled
positions.
"Bond." Security coverage under which a surety guarantees
the performance of a duty by a county officer or employee in
compliance with this article.
"County." A county of the second class, second class A,
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third class, fourth class, fifth class, sixth class, seventh
class or eighth class, including counties of these classes which
have adopted or may adopt a home rule charter or an optional
plan.
"County officers and employees." Elected and appointed
county officials, the deputies and other appointees of county
elected and appointed officials and county employees, whether
acting on behalf of the county or as agents of a Commonwealth
agency or a governing authority, who are required to receive,
account for or hold any money or property by virtue of their
office or employment.
"Crime-fidelity insurance." Insurance that is endorsed with
faithful performance of duty coverage and which insures, at a
minimum, against events of loss of money or other property,
resulting from one or more fraudulent or dishonest acts,
including, but not limited to, embezzlement, theft, forgery,
similar acts of dishonesty or fraud by a county officer or
employee acting alone or in collusion with others, or from a
breach of fiduciary duty or a failure of a county officer or
employee to perform faithfully the officer's or employee's
duties or to account properly for all money and property
received, held or required to be accounted for, by virtue of the
officer's or employee's office or employment.
"Governing authority." Includes:
(1) The Supreme Court.
(2) Any agency or unit of the unified judicial system
exercising a power or performing a duty under 42 Pa.C.S. §
1721 (relating to delegation of powers).
"Governing body." The county board of commissioners or the
body vested with the legislative authority of the county in
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counties which have adopted a home rule charter or an optional
plan.
"Home rule charter." A charter adopted under 53 Pa.C.S. Pt.
III Subpt. E (relating to home rule and optional plan
government) or its predecessor, the former act of April 13, 1972
(P.L.184, No.62), known as the Home Rule Charter and Optional
Plans Law, or Article XXXI-C of the act of July 28, 1953
(P.L.723, No.230), known as the Second Class County Code.
"Money." Coin or currency of the United States or of any
other country, travelers checks, personal checks, bank checks
and bank notes in current use and having a face value, money
orders and securities.
"Official security." Security on behalf of a county officer
to provide protection from events of loss or misconduct when the
officer fails to faithfully perform the duties of the office.
"Optional plan." An optional plan adopted under 53 Pa.C.S.
Pt. III Subpt. E (relating to home rule and optional plan
government) or its predecessor, the former act of April 13, 1972
(P.L.184, No.62), known as the Home Rule Charter and Optional
Plans Law.
"Required security." Security coverage and additional
coverage provided in compliance with this article.
"Securities." All negotiable and nonnegotiable instruments
or contracts representing either money or other property,
including revenue and other stamps in current use, tokens and
tickets and evidences of debt issued in connection with credit
or charge cards, which cards are not issued by the county.
"Security coverage." A bond, a blanket bond or a crime-
fidelity insurance policy, which is endorsed with faithful
performance of duty coverage, provided in compliance with this
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article for the purpose of protecting against the loss of money
and other property sustained as a result of one or more
fraudulent or dishonest acts, including, but not limited to,
embezzlement, theft, forgery, similar acts of dishonesty or
fraud by a county officer or employee acting alone or in
collusion with others or from a breach of fiduciary duty or a
failure of a county officer or employee to perform faithfully
the officer's or employee's duties or to account properly for
all money and property received by virtue of the officer's or
employee's position or employment.
(b) Security Requirements and Related Matters
Section 1570. Required security.
(a) In general.--A county shall obtain security coverage and
additional coverage for county officers and employees in
accordance with this article.
(b) Security coverage.--Security coverage shall be provided
in accordance with the following:
(1) Section 1571.
(2) Section 1572.
(3) Section 1573.
(c) Additional coverage.--Supplemental to or as part of the
security coverage to be provided in accordance with this
article, additional coverage in the form of adequate insurance
indemnifying against the loss of money and property through
robbery, burglary and larceny, shall be provided for each county
officer or employee who is required to receive, account for or
hold any money and other property by virtue of the officer's or
employee's office or employment.
(d) Primary liability.--
(1) Except as provided in paragraph (2), the county
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shall be primarily liable for a claim for the loss of money
and property which a county officer or employee is required
to receive, account for or hold by virtue of the officer's or
employee's office or employment, to the extent that the loss
is or could have been the subject of required security under
this article.
(2) The county shall not be primarily liable for a claim
for the loss of money and property under paragraph (1) to the
extent that recovery of the loss can be obtained from other
insurance or bond protection provided by the Commonwealth
agency or any other person or entity asserting a claim.
(3) With regard to the loss of money or property,
nothing in this article shall be deemed to restrict or
diminish a county's right to reimbursement or subrogation or
to limit any right the county may have to be indemnified or
receive restitution for the loss.
Section 1571. Official security and officers.
(a) Official security.--Each county shall obtain official
security in the form of bonds, a blanket bond or a crime-
fidelity insurance policy, which is endorsed with faithful
performance of duty coverage, on behalf of the officers set
forth in subsection (b) or the equivalent officers in home rule
or optional plans counties, whether elected, appointed or
appointed to fill a vacancy, before those officers begin their
official duties.
(b) Officers.--The following are the officers or equivalent
officers in home rule or optional plans counties upon whose
behalf official security shall be obtained in accordance with
subsection (a):
(1) Each county commissioner.
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(2) The chief clerk of the county commissioners.
(3) The controller.
(4) The county treasurer.
(5) The prothonotary of the court of common pleas.
(6) The sheriff.
(7) The coroner.
(8) The clerk of the courts of the court of common
pleas.
(9) The clerk of the orphans' court division of the
court of common pleas.
(10) The recorder of deeds.
(11) The register of wills.
(12) Probation and parole officers, if required by order
of court to obtain official security.
(13) The fire marshal and deputy fire marshals, if
required by law to obtain official security.
(14) The secretary of the board of health and the health
officer in a county in which the secretary is required by law
to obtain official security.
Section 1572. Other county officers and employees.
A county shall obtain security coverage with faithful
performance of duty coverage for all county officers and
employees who are not subject to section 1571, including
deputies and other appointees in each county office, who are
required to receive, account for or hold any money and other
property by virtue of their office or employment.
Section 1573. County officers and employees acting as agents.
Each county shall obtain security coverage for county
officers and employees acting as agents of a Commonwealth agency
or governing authority in accordance with this article or any
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other law, regulation or rule requiring the posting of security
in the form of a bond or otherwise.
Section 1574. Bonds or blanket bond as security coverage.
(a) In general.--A county may comply with section 1570(b) by
providing bonds or a blanket bond in accordance with the
following:
(1) The bond or blanket bond shall be joint and several,
with one or more surety companies authorized to do business
in this Commonwealth and licensed by the Insurance
Commissioner.
(2) The bond or blanket bond shall be conditioned upon
each of the following:
(i) The faithful performance of all duties required
of the person holding the office or position.
(ii) The just and faithful use, accounting or
payment over, according to law, of all moneys and
balances and other property, which is required to be
received, accounted for or held by the officer or
employee by virtue of the officer's or employee's office
or employment whether on behalf of the county, the
Commonwealth, a political subdivision or any other
person.
(iii) The delivery to the successor in office of all
books, papers, documents or other official things, whole,
safe and undefaced, held in right of the office.
(3) A bond or blanket bond shall be taken in the name of
the county and, in case of a breach of any of the conditions
thereof by the acts or neglect of a principal on the bond,
shall be for the use of the county, the Commonwealth, a
political subdivision or any other person as that person's
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interest shall otherwise appear.
(4) The county, the Commonwealth, a political
subdivision or other interested persons may sue upon the bond
in its name or for its own use. Acts of the General Assembly
pertaining to actions and limitations of actions upon
official bonds given to the Commonwealth shall apply to the
bonds provided for in this article just as if they were given
to the Commonwealth, except as otherwise specifically
provided in this article.
(b) Combined offices.--In counties in which one or more of
the county offices set forth in section 1571(b) are combined, if
officers are covered by individual bonds, a single bond covering
the combined offices shall suffice for the officer holding the
combined offices.
Section 1575. Insurance as security coverage.
A county may comply with section 1570 by providing crime-
fidelity insurance for county officers or employees in
accordance with this article.
Section 1576. Form of required security.
The form and contents of a bond, a blanket bond or insurance
obtained in compliance with this article shall be approved by
the governing body of the county, after review by the county
solicitor and consultation with the county risk manager, if any.
In cases in which required security is being provided for a
county officer or employee who is acting as an agent for a
Commonwealth agency or the governing authority, the Commonwealth
agency or the governing authority may review and comment on the
form of the required security. The governing body may refer to
sample forms that may be made available by the Department of
State in the approval process.
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Section 1577. Amount of coverage.
(a) Governing body.--The governing body shall establish a
procedure pursuant to which the governing body shall annually
determine the form and amount of required security that will be
reasonably sufficient to protect against the risks of loss in
compliance with this article.
(b) Risk manager.--The governing body may appoint a risk
manager who, at the request of the governing body, shall compile
and submit information relevant to the determination of an
amount of required security under subsection (a).
(c) Consultation.--To determine the amount of security for a
county officer or employee who is acting as an agent for a
Commonwealth agency or governing authority, the governing body
may, or the risk manager shall, if directed by the governing
body, provide written notice to the secretary or head of the
Commonwealth agency or the governing authority. The Commonwealth
agency or governing authority may provide input concerning the
amount of security it believes is reasonably sufficient to
protect against the risks of loss required to comply with this
article. Nothing in this article shall impair the right of a
Commonwealth agency or governing authority from approving the
amount of required security, if it is explicitly authorized by
law to approve the amount of a bond or other security of a
county officer or employee acting as its agent.
Section 1578. Custody and filing of required security
documents.
(a) Custody.--The governing body shall direct the chief
clerk or equivalent officer in a home rule or optional plan
county to present the documents evidencing required security
obtained in accordance with this article to the recorder of
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deeds or equivalent officer in a home rule or optional plan
county for recording. No tax, fee or other charge shall be
imposed for the recording of documents in compliance with this
section. Following the recording, the documents shall be
returned to the chief clerk or equivalent officer in a home rule
or optional plan county, who shall maintain the custody of these
documents on behalf of the governing body.
(b) Department of State filing.--
(1) In compliance with section 809 of the act of April
9, 1929 (P.L.177, No.175), known as The Administrative Code
of 1929, it shall be sufficient for a copy of the recorded
documents evidencing the required security for county
officers to be filed with the Department of State in
accordance with deadlines established by the department.
(2) No other filing or approvals, except as provided in
section 1580(c)(2) of documents evidencing the required
security for county officers, except that required in
accordance with paragraph (1), shall be required as a
condition for the issuance of commissions to elected county
officials by the Department of State.
(3) Notwithstanding the provision of any other law, no
tax, fee or other charge shall be imposed as a result of the
issuance of commissions to elected county officials, and no
fee may be imposed for the recording of required security
documents or commissions.
(c) Copies.--If requested by the Commonwealth agency or
governing authority on whose behalf a county officer or employee
is acting as an agent, a copy of recorded documents evidencing
the required security shall be provided by the chief clerk or
the equivalent officer in a home rule or optional plans county
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to the Commonwealth agency or governing authority. No charge or
fee shall be imposed for any copy provided in accordance with
this subsection.
(d) Filing by governing body.--The governing body shall have
the duty to file documents as required by this section.
(e) Retention of documents.--Documents evidencing required
security shall be held by the custodian thereof for the longer
of the following periods:
(1) For at least one year after the officer's term of
office or employee's period of employment and, in the case of
a county officer or employee who is acting as an agent for a
Commonwealth agency or governing authority, for at least one
year after the settlement of accounts with the Commonwealth
agency or the governing authority.
(2) For the period of time required by the act of August
14, 1963 (P.L.839, No.407), entitled "An act creating a
county records committee; imposing powers and duties upon it;
authorizing the Pennsylvania Historical and Museum Commission
to assist and cooperate with it; defining county records; and
authorizing the disposition of certain county records by
county officers in counties of the second to eighth class,"
or the rules and regulations adopted pursuant thereto.
(f) Evidence.--A copy of original documents evidencing
required security, certified as true and correct by the
custodian thereof, or a copy of the recorded documents
evidencing required security, certified as true and correct by
the recorder of deeds, shall be competent evidence thereof in
any judicial proceeding, in the same manner as the original
would be if produced and offered in evidence.
(g) Sufficiency of filing and recording.--Notwithstanding
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any other provision of law, it shall be sufficient to file and
record documents evidencing required security in accordance with
this article without further acknowledgment, filing or recording
of these documents with any other county officer or with any
other Commonwealth agency, except as required by this article.
Section 1579. Payment of premiums and commissions on
collections.
(a) Premiums and costs.--The premiums and costs for all
forms of required security for county officials and employees
shall be paid by the county. The requirement of this article
that a county acquire and pay the premiums and costs for
required security shall not relieve a Commonwealth agency on
whose behalf a county officer or employee is acting as an agent
from an obligation, imposed by law, to procure insurance or
bonding protection.
(b) Commissions on collections.--Nothing in this article
shall affect the right, provided for in any other law, of a
county officer or employee to retain a commission, for use of
the county, on amounts collected or transmitted as agent for a
Commonwealth agency. Notwithstanding the right to retain
commissions in accordance with this paragraph, no county officer
or employee shall be entitled to retain any additional sums from
amounts collected for or to be transmitted to the Commonwealth
agency for the purpose of paying premiums or costs related to
the acquisition of required security.
Section 1580. Other requirements, references and approvals.
(a) Compliance.--A requirement in another law, regulation or
rule that a bond be provided by a county officer or employee to
secure the faithful performance of duty or to act as the agent
of a Commonwealth agency or governing authority may be satisfied
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by including this obligation within the coverage of required
security supplied in accordance with this article.
(b) Reference to bonds.--Reference to bonds of county
officers and employees in any other law shall be construed and
read together with this article, and if a conflict exists
between this article and the reference to bonds of county
officers and employees in any other law, the provisions of this
article shall prevail.
(c) Other approvals.--Notwithstanding any other provision of
law, the following shall apply to required security in the form
of a bond, a blanket bond or insurance:
(1) Except as provided in paragraph (2), when required
security is obtained in compliance with this article, it
shall not require the approval of any Commonwealth agency or
the Governor as to form, content or amount.
(2) If any other law explicitly authorizes a
Commonwealth agency or the Governor to approve the amount of
a bond or other security of a county officer or employee, the
amount of required security under this article shall be
subject to approval by the Commonwealth agency or the
Governor, which approval shall not be unreasonably withheld.
Section 7. Section 2399.61 of the act, added October 18,
2000 (P.L.541, No.73), is amended to read:
Section 2399.61. Governing Board.--(a) The power of the
authority shall be exercised by a governing board composed of
[nine] eleven members appointed as follows:
(1) The mayor or, if there is no mayor, the [elected chief
executive officer, of the county seat] governing body of the
municipality in which the convention center facilities are
located shall appoint[, with the advice and consent of the city
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council or equivalent body, three] two members. The term of
office of these members shall be four years. The terms of the
first [three] two members appointed shall be allocated [among]
between them for a two-year[, three-year] and four-year term,
respectively. In all cases, the beginning of the term shall be
deemed January 1 of the year of appointment, subject to
subsection (b).
(2) The county [executive or other elected chief executive
officer of the county] council or, if there is no county
[executive or elected chief executive officer of the county]
council, the governing body of the county in which the
convention center facilities are located shall appoint [four]
seven members. [Appointments by a county executive or other
elected chief executive officer shall be with the advice and
consent of the county council or equivalent body.] The term of
office of these members shall be four years. The terms of the
first [four] seven members appointed shall be allocated among
them [for a] as follows: one one-year term, two two-year terms,
two three-year terms and two four-year [term, respectively]
terms. In all cases, the beginning of the term shall be deemed
January 1 of the year of appointment, subject to subsection (b).
(3) Two members shall be appointed by the Governor with the
advice and consent of a majority of the members of the Senate.
[(4) If the authority created pursuant to section 2399.54 is
created by the county acting alone, seven members shall be
appointed under clause (2). The term of office of these members
shall be four years. The terms of the first members appointed
shall be allocated among them as follows: a one-year term, two
two-year terms, two three-year terms and two four-year terms.]
(b) Except as otherwise provided, members shall serve a
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four-year term from the date of their appointment and until
their successors have been appointed and qualified. If a vacancy
shall occur by means of the death, disqualification, resignation
or removal of a member, subject to the provisions of subsection
(a), the appointing authority shall appoint a successor to fill
the unexpired term.
(c) The members of the board shall not be compensated for
their service on the board or for any other position in which
they may serve the authority. The authority may reimburse
members for reasonable and necessary out-of-pocket expenses
incurred by members in carrying out the business of the
authority.
(d) (1) The members of the board shall select from among
themselves a chairman and such other officers as the board may
determine. Except as otherwise provided, all actions of the
board shall be taken by a vote of at least [five] six members of
the board, which shall constitute a majority of the board,
unless the bylaws of the authority shall provide for a majority
vote by a present quorum of not less than [five] six members in
the absence of a full board. The board shall have full authority
to manage the properties and business of the authority and to
prescribe, amend and repeal bylaws, rules and regulations
governing the manner in which the business of the authority may
be conducted and the powers granted to it may be exercised and
embodied. Notwithstanding any other law, court decision,
precedent or practice to the contrary, no actions by or on
behalf of the board shall be taken by an officer of the board or
the authority except upon the approval or prior authorization of
the board. As used in this subsection, the term "actions by or
on behalf of the board" means any action whatsoever of the
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board, including, but not limited to, the hiring, appointment,
removal, transfer, promotion or demotion of any officers and
employes, the retention, use or remuneration of advisors,
counsel, auditors, architects, engineers or consultants, the
initiation of legal action, the making of contracts, leases,
agreements, bonds, notes or covenants, the approval of
requisitions, purchase orders, investments and reinvestments,
and the adoption, amendment, revision or rescission of rules and
regulations, orders or other directives.
(2) The board shall appoint an executive director, who shall
act as the chief executive officer of the authority. The
executive director shall not be a member of the board.
Notwithstanding the provisions of clause (1), the board may, by
bylaw or by resolution, delegate to the executive director the
authority and power to carry out the day-to-day operations of
the authority and to exercise those powers which are normal,
customary and necessary to perform the duties of a chief
executive officer.
(3) The board may appoint such assistant and other officers,
including assistant secretaries and assistant treasurers, as the
board determines to be appropriate to carry out the business of
the authority. Assistant secretaries and assistant treasurers
may be members of the board.
(4) The board may appoint one or more deputy executive
directors who, to the extent authorized by the board, may
exercise the duties and powers of the executive director in the
executive director's absence or incapacity or in the event of a
vacancy in the office of executive director.
(e) Members of the board shall not be liable personally on
the bonds or other obligations of the authority, and the rights
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of creditors shall be solely against the authority. The
authority, itself or by contract, shall defend board members,
and the authority shall indemnify and hold harmless board
members, whether or not currently serving as a member of the
authority, against and from any and all personal liabilities,
actions, causes of action and claims made against them for
whatever actions they perform within the scope of their duties
as board members.
Section 8. Repeals are as follows: <--
(1) The General Assembly declares that the repeals under
paragraph (2) are necessary to effectuate the amendment or
addition of Article XV.2 of the act.
(2) The following acts and parts of acts are repealed:
(i) Sections 420, 421, 422, 423, 424, 425, 426, 427,
428, 429, 430, 431, 802, 803, 804, 1261 and 1262 of the
act of July 28, 1953 (P.L.723, No.230), known as the
Second Class County Code.
(ii) As much of section 3103 of the Second Class
County Code, as reads as follows: "The bond of the fire
marshal shall be in the sum of ten thousand dollars
($10,000) and the bonds of the deputy fire marshals shall
be in the sum of five thousand dollars ($5000)."
(3) All acts and parts of acts relating to the financial
security of county officers and employees are repealed
insofar as they are inconsistent with the addition of Article
XV.2 of the act.
Section 2 9. The amendment of section 2399.61(a)(1) of the <--
act shall apply as follows to a city which, on the effective
date of this section, has established a Third Class County
Convention Center under Article XXIII(o) of the act:
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(1) The amendment shall not affect the term of a member
serving on the effective date of this section.
(2) The reduction of appointments from three to two
shall apply as follows:
(i) Except as set otherwise set forth in this
paragraph, to an office which is vacant on the effective
date of this section.
(ii) If there is no vacancy under subparagraph (i),
to an office of a member who, on the effective date of
this section, is serving past the expiration date of the
member's term until a successor is appointed.
(iii) If there is no vacancy under subparagraph (i)
and there is no office subject to subparagraph (ii), to
the office of the first member whose term expires after
the effective date of this section.
Section 3 10. The amendment of section 2399.61(a)(2) of the <--
act shall apply as follows to a county which, on the effective
date of this section, has established a Third Class County
Convention Center under Article XXIII(o) of the act:
(1) The amendment shall not affect the term of a member
serving on the effective date of this section.
(2) A member serving on the effective date of this
section shall complete the term to which the member is
appointed as follows:
(i) One term shall expire December 31, 2010.
(ii) One term shall expire December 31, 2012.
(iii) Two terms shall expire December 31, 2013.
(3) If a member serving on the effective date of this
section is unable to complete the term to which the member is
appointed in accordance with paragraph (2):
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(i) a replacement shall be appointed by the
appointing authority that made the original appointment;
and
(ii) the replacement appointed under subparagraph
(i) shall complete that term.
(4) The seven appointments made by the county council
under the amendment shall be as follows:
(i) Three initial appointments shall be made upon
the effective date of this section for the following
terms:
(A) One term shall expire December 31, 2010.
(B) Two terms shall expire December 31, 2011.
(ii) The remaining four initial appointments shall
be made to fill the vacancies resulting from the
expiration of the terms under paragraph (2).
(iii) Subsequent appointments shall be made under
section 2399.61(a)(2) of the act.
Section 11. A county may, at any time after the effective <--
date of this section, obtain required security in accordance
with Article XV.2 of the act. A county shall have in place
required security in accordance with Article XV.2 of the act
prior to the time that any elected county official takes office
after the municipal election next following the effective date
of this section. Bonds and insurance, which, on the effective
date of this section, cover county officers and employees, shall
remain in force and effect until required security is purchased.
Section 4 12. This act shall take effect immediately. <--
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