HARRISBURG -- In the wake of a funding scandal centered on a Beaver County nonprofit group, state Sen. Jane Orie is demanding that a state economic development agency reform its procedures for monitoring the use of state funds.

And two other Republican senators, including freshman Elder Vogel of Beaver County, want to prevent any senators from creating, controlling or influencing nonprofit community groups that get state money.

In recent years, two Democratic senators, who have now left the Legislature, had roles with such nonprofit development groups -- Sen. Vincent Fumo with a South Philadelphia group and Sen. Gerald LaValle as co-chairman of the Beaver Initiative for Growth, the one Ms. Orie is targeting.

The McCandless Republican is highly critical of the Department of Community and Economic Development for not doing enough to ensure that the $10 million in state grants given to the Beaver Initiative were audited and spent properly.

Based on a grand jury's recommendation, Attorney General Tom Corbett last week filed 28 corruption charges against former House Democratic Whip Mike Veon of Beaver, the founder of the Beaver Initiative, who is accused of doling out the state money for his personal and political benefit.

"Safeguards have to be put in place to ensure that these important funds are being targeted correctly," Ms. Orie said in introducing Senate Bill 697.

The DCED gave out 20 grants to the Beaver Initiative but didn't ensure that audits were done on all of them. Ms. Orie wants annual reports from any nonprofit starting within 12 months of its getting state funds. State officials should visit the sites of larger grants to make sure the money is being used as intended, she said. DCED should check with other state agencies to make sure a grant recipient actually created all the jobs it said it would.

Chuck Ardo, a spokesman for Democratic Gov. Ed Rendell, said that when he took office in 2003, "We inherited a flawed grant oversight system" from the previous Republican administration and "we have worked diligently to improve it over the last six years."

Meanwhile, Mr. Vogel and Sen. Dominic Pileggi of Delaware County vowed to push for a new internal Senate rule barring senators from creating or running such nonprofits.

Last year, Mr. Vogel won Mr. LaValle's old seat. He said his constituents "voted for the restoration of character and integrity" at the Capitol and the new rule would "be yet another step forward in changing the culture of Harrisburg."

Some General Assembly critics say the Legislature needs more than just an internal rule barring legislators from starting nonprofit groups. They want a law to that effect, saying that is more permanent than a rule.