PRINTER'S NO. 1707
No. 1475 Session of 1979
INTRODUCED BY GALLEN AND DAVIES, JUNE 11, 1979
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 11, 1979
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, providing for the appointment of a
3 receiver for rental payments in certain cases.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 66, act of November 25, 1970 (P.L.707,
7 No.230), known as the Pennsylvania Consolidated Statutes, is
8 amended by adding a section to read:
9 § 1533. Petition to appoint receiver.
10 (a) Appointment of receiver.--Notwithstanding the foregoing
11 sections of this chapter, when a landlord ratepayer is two or
12 more months in arrears in his utility payments, the affected
13 utility shall have the right to petition the court of common
14 pleas of the county wherein the leased premises are located to
15 appoint a receiver to collect rent payments otherwise due the
16 landlord ratepayer directly from the tenants and to pay all over
17 due and subsequent utility bills therefrom. This right may be
18 exercised only in those situations that involve 50 or more
19 rental units. Upon appointment, the receiver shall notify the
1 tenants of his powers by first class mail, certified mail, or
2 personal service.
3 (b) Duty of receiver.--The receiver shall:
4 (1) collect all rents directly from the tenants;
5 (2) pay the utility bills (both arrearages and current);
6 and
7 (3) return the remainder to the landlord ratepayer, less
8 the costs of the notification made to the tenants, plus a 2%
9 administrative fee.
10 (c) Discontinuation.--The receiver shall continue to collect
11 the rents and make disbursements in the manner provided in
12 subsection (b) until the second rental period after:
13 (1) the landlord ratepayer deposits in escrow with the
14 utility a sum equal to the utility charges from the two
15 highest monthly periods in the preceding 12 months; and
16 (2) the landlord ratepayer demonstrates to the
17 satisfaction of the court of common pleas that it has the
18 financial recourses necessary to resume its obligations to
19 the utility and the tenants.
20 At such time rental payments will once again be made to the
21 landlord ratepayer. Notice of this change shall be made to the
22 tenants by the receiver by means of first class mail, certified
23 mail, or personal service, which costs shall be paid by the
24 landlord ratepayer.
25 (d) Escrow fund.--The escrow fund established under
26 subsection (c)(1) shall not be considered a prepayment of
27 utility costs and shall only be applied against outstanding
28 utility bills at the time a new receiver is appointed for a
29 subsequent failure by the landlord ratepayer to pay utility
30 bills for a two-month period. Said escrow fund shall be returned
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1 to landlord ratepayer not later than 90 days nor earlier than 60
2 days, after the landlord ratepayer obtains a court order
3 releasing such funds and certifying that timely payment of
4 utility bills has been made for the immediately preceding 24
5 consecutive months.
6 (e) Interests on funds.--Any funds held in escrow by any
7 utility shall bear interest at a rate 1% lower than the maximum
8 rate allowed by the Federal Reserve Board to be paid on regular
9 savings accounts at commercial banks.
10 (f) Number of receivers.--In the event more than one utility
11 company is affected by any landlord ratepayers' failure to pay
12 utility bills, the court shall appoint the same receiver to
13 function for all aggrieved utilities.
14 Section 2. This act shall take effect immediately and shall
15 be retroactive to January 1, 1979.
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