PRINTER'S NO. 2174
No. 1779 Session of 1979
INTRODUCED BY CALTAGIRONE, SEPTEMBER 26, 1979
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, SEPTEMBER 27, 1979
AN ACT
1 Amending the act of November 26, 1978 (P.L.1255, No.299),
2 entitled, "An act providing for notice and the right to cure
3 landlord's default to avoid the termination of utility
4 service to tenants," further providing for the administration
5 of utility payment procedures and granting utilities the
6 right to petition for appointment of a receiver.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of November 26, 1978 (P.L.1255, No.299),
10 known as the "Utility Service Tenants Rights Act," is amended by
11 adding chapter headings and sections to read:
12 CHAPTER 1
13 Administration of Utility Payment Procedures by Municipal
14 Cooperation.
15 * * *
16 CHAPTER 2
17 Administration of Utility Payment Procedure by Rent
18 Withholding or Receiver.
19 Section 18.1. Use of rent withholding or receiver for
1 collection.
2 (a) Any municipal corporation which has adopted a rent
3 withholding ordinance pursuant to the act of January 24, 1966
4 (1965 P.L.1534, No.536), referred to as the City Rent
5 Withholding Act, may utilize the provisions of such ordinance to
6 continue public utility services to a tenant upon the
7 delinquency of the landlord-ratepayer by requiring the tenant to
8 place the monthly rental payments into the established escrow
9 account pursuant to this chapter to maintain current payments of
10 the utility charges to the provider municipal corporation.
11 (b) When a landlord ratepayer is two or more months in
12 arrears in his utility payments, the affected public utility
13 shall have the right to petition the court of common pleas of
14 the county wherein the leased premises are located to appoint a
15 receiver to collect rent payments otherwise due the landlord
16 ratepayer directly from the tenants and to pay all overdue and
17 subsequent utility bills therefrom. This right may be exercised
18 only in those situations that involve 50 or more residential
19 units in which the units are not individually metered.
20 (c) The provisions of this chapter shall not be construed to
21 supersede or limit any tenant rights or defenses under law
22 regarding the payment of rent.
23 Section 18.2. Notice to tenants.
24 Notice of commencement of rent collection under this chapter
25 shall be provided to the tenants by the public utility upon
26 certification of the dwelling as unfit for human habitation due
27 to imminent suspension of utility services, or by the receiver
28 upon his appointment. The notice shall be made by first class
29 mail, certified mail, or personal service and shall provide the
30 tenants with an explanation of their rights under law regarding
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1 payment of rent and continued utility service and the
2 appropriate explanation of the rent payment procedure and the
3 powers of the receiver when a receiver has been appointed. It
4 shall be the duty of the landlord ratepayer to provide the
5 public utility or receiver with the names and addresses of
6 tenants pursuant to section 4.
7 Section 18.3. Right to continued service.
8 The affected public utility under this chapter shall not
9 discontinue utility service if it receives payment from the
10 escrow agent or receiver in the amount specified in section 18.4
11 (2) within 60 days from the date that notice of the commencement
12 of this collection procedure is mailed or delivered.
13 Section 18.4. Duty of escrow agent or receiver.
14 The escrow agent or receiver shall:
15 (1) collect all rents directly from the tenants;
16 (2) pay the utility bills equal to the amount due for
17 the 30-day period prior to the tenant receiving notice of the
18 commencement of this collection procedure and all future
19 bills as they become due;
20 (3) after payment of the amounts in clause (2), any
21 excess moneys shall be applied by the escrow agent or
22 receiver toward the arrearage of the landlord ratepayer
23 unless a court issues an order to the contrary; and
24 (4) return the remainder to the landlord ratepayer, less
25 the costs of the notification made to the tenants, plus a 2%
26 administrative fee.
27 Section 18.5. Discontinuation of collection procedure.
28 (a) The tenants paying rents to an escrow agent under
29 section 18.1(a) shall continue to pay rents to the escrow agent
30 and the escrow agent shall continue to make disbursements in the
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1 manner provided in section 18.4 until the premises is certified
2 as fit for human habitation. For the purposes of this act, the
3 threat of imminent suspension of utility services shall be
4 deemed to cease and the dwelling may be certified as fit for
5 human habitation when the utility charges to the landlord are
6 paid in full and the landlord ratepayer has deposited in escrow
7 with the public utility, a sum equal to the utility charges from
8 the two highest monthly periods in the preceding 12 months.
9 (b) The receiver shall continue to collect rents and make
10 disbursements in the manner provided in section 18.4 until the
11 second rental period after:
12 (1) the landlord ratepayer deposits in escrow with the
13 public utility a sum equal to the utility charges from the
14 two highest monthly periods in the preceding 12 months; and
15 (2) the landlord ratepayer demonstrates to the
16 satisfaction of the court of common pleas that it has the
17 financial resources necessary to resume its obligations to
18 the public utility and the tenants.
19 At such time rental payments will once again be made to the
20 landlord ratepayer. Notice of this change shall be made to the
21 tenants by the receiver by means of first class mail, certified
22 mail, or personal service, which costs shall be paid by the
23 landlord ratepayer.
24 Section 18.6. Funds escrowed by landlord.
25 The escrow fund established under section 18.5 shall not be
26 considered a prepayment of utility costs and shall only be
27 applied against utility bills outstanding at the time the public
28 utility begins collecting utility payments directly from tenants
29 pursuant to Chapter 1, notice is sent or delivered to tenants to
30 begin escrowing rent pursuant to section 18.1(a), or a new
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1 receiver is appointed; as a result of subsequent failure by the
2 landlord ratepayer to pay utility bills. Before the funds
3 escrowed with a public utility are returned to the landlord
4 ratepayer, the landlord shall make timely payment of his utility
5 bills for 24 consecutive months, and if a receiver has been
6 appointed to collect the rents, the landlord shall obtain a
7 court order releasing the funds and certifying that timely
8 payment has been made for 24 consecutive months. The escrow fund
9 shall be returned to the landlord ratepayer not later than 90
10 days nor earlier than 60 days after the landlord ratepayer
11 complies with the requirements of this section.
12 Section 18.7. Interest on funds escrowed by landlord.
13 Any funds held in escrow by any public utility under section
14 18.5 shall bear interest at a rate 1% lower than the maximum
15 rate allowed by the Federal Reserve Board to be paid on regular
16 savings accounts at commercial banks.
17 Section 18.8. Number of receivers.
18 In the event more than one public utility or public utility
19 as that term is defined in 66 Pa.C.S § 102 is affected by any
20 landlord ratepayers' failure to pay utility bills, any receiver
21 appointed to collect rents for one of the utilities shall also
22 be appointed to function for all other aggrieved utilities.
23 Section 2. This act shall take effect immediately and shall
24 be retroactive to January 1, 1979.
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