19119_Authority_April_2026

municipalauthorities.org │ 39 By Michael Hann A n O verview of the P owers of a M unicipal A uthority for N ew B oard M embers Several months ago, I reviewed the Municipality Authorities Act (MAA) for the first time and found Section 5607 to be the key provision of the MAA when discussing the scope of powers of municipal authorities. Section 5607 of the MAA sets forth the purposes and the powers of municipal authorities, as well as defining the scope of their jurisdiction. Subsection (a), entitled “Scope of Projects Permitted”, provides incorporated authorities with the power to, among other things, finance capital, maintain and operate projects, and own or lease said projects. (The reader should review MAA Section 5602 for the definition of Project). An authority can undertake a wide variety of public works projects, outside of the often thought of water, sewage, and storm water projects. For example, the MAA provides municipal authorities with the power to undertake other public works projects, such as those related to transportation, marketing, shopping, terminals, bridges, tunnels, and airports. Subsection (b) of MAA 5607 addresses the limitations on the powers of an authority. Although an authority has expansive powers, they are not unlimited, such that authorities cannot compete with an existing business on a project already undertaken by that business. One major concern is that authorities, being tax exempt entities, would hold an advantage over existing entities if authorities were allowed to operate similar projects as existing entities. Section 5607 (d) may be the most important section of the MAA. Under Subsection (d), entitled “Powers”, the MAA emphasizes that an authority “may exercise all powers necessary or convenient for the carrying out of purposes set forth in this section…” (referring to powers of an authority). What does the MAA exactly mean by the term “all powers necessary or convenient?” Does this arguably vague, but broad language allow for municipal authorities to exercise powers beyond those expressively provided for in the MAA? Probably not, but in analyzing this language along with Subsection (a) above, questions arise as to whether or not municipal authorities have leeway to involve themselves in new technological enterprises. As previously established, “all powers necessary or convenient” is arguably expansive, but does it provide municipal authorities with powers over newer technologies? Often, ratifying legislation moves at a slower pace than technological advances. In fact, the last time an additional power was provided to authorities in the MAA related to storm water planning, management, and implementation Section (5607 (d) (34)), years after storm water became an important issue in Pennsylvania. Since this issue of the The Authority includes articles on data centers, one of the questions I had when reviewing Section 5607, which is one new board members may also ask, is whether the powers provided to an authority can somehow relate to newer technologies such as in the area of artificial intelligence and/or the creation of data centers? An authority already has powers over many issues relating to data center operations, such as water supply and wastewater treatment. While data centers seem to be mainly privatized, can they be run by local or municipal governments? Realistically, there does not seem to be a pathway for an authority to operate a facility such a data center, especially given Subsection (b)’s relation to competition with established businesses. Many questions may arise about the powers municipal authorities have over newer technological advances which are not explicitly mentioned in the MAA. In any event, as technology evolves, will the MAA be expanded to encompass newer technologies and give municipal authorities the opportunity to become involved in these technologies? S This article is part of a series Michael is writing on the Municipality Authorities Act, see the December 2025 issue of The Authority, p. 16, First Time Review of the Municipality Authorities Act: Addressing Key Questions for New Board members. Michael Hann is a senior at the Pennsylvania State University, focusing on government policy, legal studies, and history. He contributes to the school paper as a journalist, works in research for the university, and recently spent a semester in Europe furthering his studies. He volunteered to review the Municipality Authorities Act and author an article from his perspective for new municipal authority board members.