COMMONWEALTH of PENNSYLVANIA HOUSE of REPRESENTATIVES COMMITTEE OK APPROPRIATIONS in Re
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COMMONWEALTH OF PENNSYLVANIA HOUSE OF REPRESENTATIVES COMMITTEE OK APPROPRIATIONS In re: Budget Rtqufit - 1963 - X984 renn&ylvanla Crime CommiesIon * « * Verbatim report of hearing held In Room 401, Main Cepltol Building, Harrleburg, Pennsylvania, on Tuesday, February 22, 1983 1:00 P.M. HOI;, MAX IIEVEKY, CHAIRMAN Ron. Kurt Zwlkl, Vice-chairman Hon. Joseph M. Hoerfel, III, Secretary Hon. H. William DeWeese, Chairman Subcommittee on Capital Budget Hon. James M. Kc In tyre, Chairman Subcommittee Health and Welfare Hon. Ralph Pratt, Chairman Subcommittee on Education MEMBERS OF COMMITTEE OK APPROPRIATIONS Bon. Mary Ann Arty Hon. Joseph C. Manmiller Hon. Gibson Armstrong Hon. Richard A. McClatehy Hon. Thomas R. Celtaglrone Hon. Gereld F. McMonagle Hon. Ttalo E. Cappabianca Hon. George Miscevlch Hon. Brian D. Clerk Hon. Nicholas B. Moehlmann Hon. Roy K. Cornell Hon. Howard F. Movery, Jr. Hon. Ronald R. Cowell Hon. Frank Flstella Hon. A1phoneo Deal Kon. George F. Pott, Jr. Hon. Dwight Evans Hon. Carmel Sirianni Hon. Stephen Freind Hon. Killlam J. Stewart Hon. Allen Kukovlch Hon. Ted Stuban Hon. Joseph Levi, III Kon. Edward A. Wiggins Hon. Stephen E. Levin Hon. Peter R. Vroon Reported by: Nancy J. Adelman, RPR alone [<egivt«ra<l Profercional Reporter 135 S- LanJit S*w>«t Hum me I down, Pannculvanio 17036 ALSO PRESENT* Lou Groaaman fit «.ff Representative iaul Vase IHDEX Malcolm L. Lazln> 9 Chairman 21 31 32 31 IS 61 64 70 Royal H. Hart, 43 Coaatlsalonftr Daan Vlllian Roach, 16 Connlaaloner 33 3^ 52 6I0* 69 Wallace P. Hay, 11 Executive Director 29 40 ? 62 71 3 (The following i« the prepared statement of the Pennsylvania Crime Commission*) "We «xt pleated to have the opportunity to appear before the Souse Appropriations Committee in relation to our funding for flacal year 1983-8^* I em hopeful that the following will addreee some of the e^eetiona you have about the Pennsylvania Crime Commission* and confident that you will use this occasion to get to mow us better. "%fcen the Pennsylvania legislature created an Independent Crime Commission In 19?&# It wee set apart from the mainstream of state government, ttte way the five commissioners are appointed removes it from the executive branch but does not squarely place it in either the legislative nor In the Judicial branch. We are a law- enforcement agency but do not have the responsibility to arrest, indict, accuse, or prosecute. ?he result of this structure is a broad-ranging authority to Inquire into organised crime and public corruption. "This authority places the Commission In the position to investigate and study crime trends and to evaluate the ability of the existing law enforcement structure to deal with them. To this end, we do investigate specific instances of crime, but with the Intention of bringing to . _ *1 light new and ch«ngtnc: crime petterns* T> refer our investigative finding- to prosecutorial agencies when appropriate, but this is a by-product or our fuacx&o'u Our primary responsibility is to uncover the methodology sf ~2ia crime, to evaluate the ability of government to deal with the crime pattern, end to mefce recommendations for legislative reform, In this capacity, we serve the Commonwealth at an extension of the Legislature. "She nature of the Cosmic Blonde mandate mafcea it difficult to quantify results, If numbers were the abjective, resources could not he dedicated to complex* sophisticated criminal investigations. Crimes which never occur "because legislative or regulatory initiativee heve been implemented cannot be measured. 3he number of recommendations for reform is inconsequential when considered in relation to the eubetance of each. *We believe that the measure of our success it subjective, Ve are * viable entity in the law endorsement community, and our finding* ere of value to those they ere intended to serve. She Coamission has strengthened its operational and administrative programs as evidenced ^ the Many Indications we receive from agencies as diverse es the Internal ftev**nu% Service end the Attorney General of i ,•• , / : ' California. Recognising our primary concern is crime -within tha Commonwealth, we Integrate our investigative operations with numerous law enforcement activities statewide, but also realise that today's communication and mobility render a geographically conetrained approach to law enforcement ineffective.. "We have used the fiscal resources you have provided to us in the pest to ferret out organized crime -- making life better for all the citizens of Pennsylvania, te have accomplished this through several published reports — some which continue In wide circulation today, /mong then, the I960 Report: A Decade of Organigad Crime is a major reference work end teaching text. Various state agencies consult this report prior to approving contracts, lessee» applications, and other licensing functions which the Commonwealth performs in its administrative or regulatory capacity. It is also in use BB a reference work and a textbook in many college criminal justice programs — enlightening future law enforcement officers as to organised crime. The pizza and cheese repert, published in 1979* dealt with the Intrusion of organized crime into this industry. 3he Internal Revenue Service currently is using this report ae the basis for a nationwide investigation of widespread . ii frauda. "A report of the investigation of health care fraud was referred for prosecution, A subject of the report, American Health Programa, operated and owned by Dr. Charles Kravitz, was pending action by federal authorities when he allegedly gave the new Philadelphia F.C.F. president $10,000 with a promise of more cash and a vacation home to continue the dental and drug prescription plan contract with the union, Upon being offered the bribe, the F.O.F. head working la conjunction with the F.B.I, set the- stage for Dr. Kravitz* arrest and indictment. Dr. Kravitz alao was barred from doing business in New Jersey, a decision based solely on our reported findings. "Other recent activities of the Pennsylvania Crime Commission include the investigation of organized crime infiltration of retail liquor dealerships. There, aa one outgrowth of that investigation, it was revealed that illegal, uncollaterallzed loans were made by a Pennsylvania lending institution to numerous businesses and individuals that are identifiable as significant organized crime figures. The lending institution collapsed with still undetermined losses exceeding five million dollars, /lso in 198?, public hearings were held on the release cf the two alleged hit men •7 I In the falvatore Testa shooting: and reputed organised crime bees Russell BnfaXlno publicly answered the Commission's questions In Sc rant on. In January, hearings were held In Johnstown dealing with fraud related to Investment In the eoal Industry. "We have made significant contributions to Increasing the awareness of the public, the government organisation In general, and to law enforcement. We have accomplished all of this with a modest sized staff and a limited budget. We sincerely believe that having done what we have, with what we have had to do it, represents a considerable return on invest* ment. "We look forward to continued service to the Commonwealth, and ask you, the Legislature, to provide adequate mesne for us to do so. If we have learned anything In these past few years, it is that government mutt organise to successfully defeat organised crime, you have given us the task of guiding that organisation. However, ever shrinking budgets cannot help but to cut into our substance, limit our effectiveness and enable organised crime to widen the gap between their gains end ours. We look to you, as elected representatives of our citizens, to provide us tbe financial means ve need to achieve our potential." 8 CHAIRMAN BeWEESEj Ladies and gentlemen, it'a 1:00. m feet, lt»a one minute after. My name le Bill Deweese^ I'm from Greene County end the Crime Commission it before ut. You gentlemen are reedy to commence. Before X do thet, X would like to introduce Representative Paul We aa of Indiana County, Representative Bill Stewart of Cambria County, Bepresentetive Joe fcoeffel of Montgomery County end Representative Brian Clerk of Allegheny-Westmoreland. X eee no other Representatives here hut I'm doing that for Nancy's benefit since that's whet ehe instructed me to do. We have no written text hat you gentlemen collectively or individual^- will please feel free to there some time with us end tell ue e little bit about whet you do, not only about the money angle but about whet you do* As some of us tried to meke . plain this morning, we ere eclectic by nature. We study end work on different things end many of us ere only marginally aware of certain fine points in our counties in which you people ere involved in. So, please be sometimes simple with us. Olve m basic comments end help give us en education here today* This is Representative Alphonso Deal from Philadelphia. Al, this is the Crime commission, et leest some of the potentates end you gentlemen can commence, Thank you* t J-. CHAIRMAN ttZXH: Thank ycu. In terras "f back ground, as you know'the Pennsylvania Crime Commission 1B a creature of the legislature. Four of our five comalssion«rs are appointed by the Majority and Minority Leaders of the House tad Senate end one by the Governor. As a natter of fact, our really only official duty 1B to make a report annually to a joint session of the Judiciary Committee uhlch, of course, we do do. The lemsylvenia Crime commission Is your chief law enforcement operation into the battle against organized crime. We operate by virtue of a central headquarters in St. David's with regional offices in the southeastern section of the state in St. David's* an office In Scranton, one in Harrisburg and one in Pittsburgh.