PRIOR PRINTER'S NOS. 189, 800                  PRINTER'S NO. 845

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 188 Session of 1979


        INTRODUCED BY ZEMPRELLI, ROSS, FUMO, JUBELIRER, MESSINGER,
           REIBMAN AND SCHAEFER, FEBRUARY 12, 1979

        AS AMENDED ON THIRD CONSIDERATION, MAY 29, 1979

                                     AN ACT

     1  Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
     2     act providing for the incorporation as bodies corporate and
     3     politic of 'Authorities' for municipalities, counties and
     4     townships; prescribing the rights, powers and duties of such
     5     Authorities heretofore or hereafter incorporated; authorizing
     6     such Authorities to acquire, construct, improve, maintain and
     7     operate projects, and to borrow money and issue bonds
     8     therefor; providing for the payment of such bonds, and
     9     prescribing the rights of the holders thereof; conferring the
    10     right of eminent domain on such Authorities; authorizing such
    11     Authorities to enter into contracts with and to accept grants
    12     from the Federal Government or any agency thereof; and
    13     conferring exclusive jurisdiction on certain courts over
    14     rates," authorizing Authorities to provide business
    15     improvements and business administrative services.

    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18     Section 1.  Subsection A. of section 4, act of May 2, 1945
    19  (P.L.382, No.164), known as the "Municipality Authorities Act of
    20  1945," amended August 1, 1975 (P.L.164, No.85),is amended and
    21  the section is amended by adding a subsection to read:
    22     Section 4.  Purposes and Powers; General.--A.  Every
    23  Authority incorporated under this act shall be a body corporate
    24  and politic, and shall be for the purpose of acquiring, holding,


     1  constructing, improving, maintaining and operating, owning,
     2  leasing, either in the capacity of lessor or lessee, projects of
     3  the following kind and character, equipment to be leased by an
     4  Authority to the municipality or municipalities that organized
     5  it, buildings to be devoted wholly or partially for public uses,
     6  including public school buildings, and facilities for the
     7  conduct of judicial proceedings, and for revenue-producing
     8  purposes; transportation, marketing, shopping, terminals,
     9  bridges, tunnels, flood control projects, highways, parkways,
    10  traffic distribution centers, parking spaces, airports, and all
    11  facilities necessary or incident thereto, parks, recreation
    12  grounds and facilities, sewers, sewer systems or parts thereof,
    13  sewage treatment works, including works for treating and
    14  disposing of industrial waste, facilities and equipment for the
    15  collection, removal or disposal of ashes, garbage, rubbish and
    16  other refuse materials by incineration, land fill or other
    17  methods, steam heating plants and distribution systems,
    18  incinerator plants, waterworks, water supply works, water
    19  distribution systems, swimming pools, playgrounds, lakes, low
    20  head dams, hospitals, health centers, motor buses for public
    21  use, when such motor buses are to be used within any
    22  municipality, subways and industrial development projects,
    23  including but not limited to projects to retain or develop
    24  existing industries and the development of new industries:
    25  Provided, That an Authority created by a school district or
    26  school districts shall have the power only to acquire, hold,
    27  construct, improve, maintain, operate and lease public school
    28  buildings and other school projects acquired, constructed or
    29  improved for public school purposes. The purpose and intent of
    30  this act being to benefit the people of the Commonwealth by,
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     1  among other things, increasing their commerce, health, safety
     2  and prosperity, and not to unnecessarily burden or interfere
     3  with existing business by the establishment of competitive
     4  enterprises, none of the powers granted by this act shall be
     5  exercised in the construction, improvement, maintenance,
     6  extension or operation of any project or projects which in whole
     7  or in part shall duplicate or compete with existing enterprises
     8  serving substantially the same purposes. This limitation shall
     9  not apply to the exercise of the powers granted hereunder for
    10  facilities and equipment for the collection, removal or disposal
    11  of ashes, garbage, rubbish and other refuse materials by
    12  incineration, land fill or other methods, if each municipality
    13  organizing or intending to use the facilities of an Authority
    14  having such powers shall declare by resolution or ordinance that
    15  it is desirable for the health and safety of the people of such
    16  municipality that it use the facilities of the Authority, and if
    17  any contract between such municipality and any other person,
    18  firm or corporation for the collection, removal or disposal of
    19  ashes, garbage, rubbish and other refuse material has by its
    20  terms expired or is terminable at the option of the municipality
    21  or will expire within six months from the date such ordinance
    22  becomes effective. This limitation shall not apply to the
    23  exercise of the powers granted hereunder for industrial
    24  development projects if the Authority does not develop
    25  industrial projects which will compete with existing industries.
    26  This limitation shall not apply to the exercise of the powers
    27  granted hereunder for business improvement districts if each
    28  municipality organizing an Authority for such a project shall
    29  declare by resolution or ordinance that it is desirable for the
    30  entire municipality to improve the business district. This
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     1  limitation shall also not apply to hospital projects to be
     2  leased to public hospitals or nonprofit hospital corporations
     3  serving the public if each municipality organizing an Authority
     4  for such a project shall declare by resolution or ordinance that
     5  it is desirable for the health and safety of the people in the
     6  area served by such hospital to have such facilities provided by
     7  an Authority. The municipality or municipalities organizing such
     8  an Authority may, in the resolution or ordinance signifying
     9  their intention so to do, or from time to time by subsequent
    10  resolution or ordinance, specify the project or projects to be
    11  undertaken by the said Authority, and no other projects shall be
    12  undertaken by the said Authority than those so specified. If the
    13  municipal authorities organizing an Authority fail to specify
    14  the project or projects to be undertaken, then the Authority
    15  shall be deemed to have all the powers granted by this act.
    16     * * *
    17     E.  In addition to the other purposes designated by this act,
    18  an Authority may be established to make business improvements or
    19  administrative services in districts designated by the
    20  municipality or municipalities acting jointly and zoned
    21  commercial or used for general commercial purposes.
    22     Business improvements means those improvements needed in the
    23  district to the district in general or to specific areas or
    24  individual properties including but not limited to sidewalks,
    25  retaining walls, street paving, street lighting, parking lots,
    26  parking garages, trees and shrubbery, pedestrian walks, sewers,
    27  water lines, rest areas and acquisition and remodeling or
    28  demolition of blighted buildings or structures. Improvements
    29  shall not be made to property not acquired.
    30     Administrative service means those intangible matters which
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     1  improve the ability of the commercial activities of the district
     2  to serve the consumer including but not limited to free or
     3  reduced free parking for customers, transportation repayments,
     4  public relations programs, group advertising and uniforms credit
     5  policies.
     6     The Authority may make planning or feasibility studies to
     7  determine needed improvements or administrative services.
     8  Written notice of the proposed improvement or service and the
     9  estimated cost thereof shall be given to each property owner in
    10  the district.
    11     The Authority shall be required to hold a public hearing on
    12  the proposed improvement or service and the estimated costs
    13  thereof. Notice of such hearing shall be advertised at least ten
    14  days prior thereto in a newspaper whose circulation is within
    15  the municipality where the Authority is established. At such
    16  public hearing any interested party may be heard.
    17     The Authority shall take no further action on any proposed
    18  improvement or service if objection is made by a majority of the  <--
    19  property owners in the district. PROPERTY OWNERS OF THE PROPOSED  <--
    20  DISTRICT WHOSE PROPERTY VALUATION AS ASSESSED FOR TAXABLE
    21  PURPOSES SHALL AMOUNT TO MORE THAN FIFTY PER CENT OF THE TOTAL
    22  PROPERTY VALUATION OF THE DISTRICT. Objections shall be made
    23  within twenty days after the conclusion of the public hearing on
    24  the proposed improvement or service. Objections must be in
    25  writing, signed and filed in the office of the prothonotary of
    26  the county in which the district is located and in the
    27  registered office of the Authority.
    28     The Authority may impose an assessment on each benefited
    29  property within a business improvement district which shall be
    30  determined by the total cost of the improvements or services in
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     1  such district stated in the planning or feasibility study.
     2     The total cost of the improvements or services in such
     3  district shall be assessed to all of the benefited properties in
     4  the district by either of the following methods:
     5     (a)  By an assessment determined by multiplying the total
     6  improvement or service cost by the ratio of the assessed value
     7  of the benefited property to the total assessed valuation of all
     8  benefited properties in the district.
     9     (b)  By an assessment upon the several properties in the
    10  district in proportion to benefits as ascertained by viewers
    11  appointed in accordance with municipal law.
    12     (c)  An assessment allocated according to gross sales or
    13  gross or net profits or actual benefit. Before any assessments
    14  are made, the Authority shall submit the plan and estimated
    15  costs for the business improvements to the municipality in which
    16  such project is to be undertaken and the municipality shall have
    17  approved the plan and estimated cost. There shall not be charged
    18  against the improved properties an aggregate amount in excess of
    19  the estimated cost.
    20     The Authority may by resolution authorize the payment of the
    21  assessment in equal annual, or more frequent installments over
    22  such time and bearing interest at such rate not in excess of six
    23  percent as may be specified in the resolution. Where bonds shall
    24  have been issued and sold, or notes or guarantees given or
    25  issued, to provide for the cost of the improvements or services
    26  the assessment in equal installments for bond repayment shall
    27  not be payable beyond the term for which the bonds, notes or
    28  guarantees are payable.
    29     Claims to secure the assessments shall be entered in the
    30  prothonotary's office of the county at the same time and in the
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     1  form and shall be collected in the same manner as municipal
     2  claims are filed and collected notwithstanding the provisions of
     3  this section as to installment payments.
     4     In the case of default in the payment of any installment and
     5  interest for a period of sixty days after it becomes due, the
     6  entire assessment and accrued interest shall be due.
     7     Any owner of property, against whom an assessment has been
     8  made, may pay the same in full, at any time, with accrued
     9  interest and costs thereon, and such payment shall discharge the
    10  lien of such assessment.
    11     Section 2.  This act shall take effect in 60 days.













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