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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 3122, 3621               PRINTER'S NO. 4319

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2309 Session of 1990


        INTRODUCED BY LLOYD, DEMPSEY, HALUSKA, RAYMOND, PETRARCA,
           TANGRETTI, COY, PESCI, FLICK, DISTLER, SCHEETZ, NOYE,
           LaGROTTA, VAN HORNE, BELFANTI, STEIGHNER, TRICH, BURD,
           GODSHALL, TIGUE, GIGLIOTTI, McVERRY, D. W. SNYDER, HASAY,
           LEVDANSKY, JOHNSON, LAUGHLIN, PISTELLA, BUNT, E. Z. TAYLOR,
           S. H. SMITH, D. R. WRIGHT, TELEK, BELARDI, WOGAN AND
           RICHARDSON, MARCH 12, 1990

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 14, 1990

                                     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," FURTHER DEFINING "ELIGIBLE EDUCATIONAL INSTITUTION";   <--
    15     FURTHER PROVIDING FOR THE GENERAL POWERS AND DUTIES OF AN
    16     AUTHORITY; AND regulating an owner's liability for a tenant's
    17     bill.

    18     The General Assembly of the Commonwealth of Pennsylvania
    19  hereby enacts as follows:
    20     Section 1.  Subsection B of section 4 of the act of May 2,     <--
    21  1945 (P.L.382, No.164), known as the Municipality Authorities
    22  Act of 1945, is amended by adding clauses to read:


     1     Section 4.  Purposes and Powers; General.--* * *
     2     SECTION 1.  SECTION 2(M) OF THE ACT OF MAY 2, 1945 (P.L.382,   <--
     3  NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF 1945,
     4  ADDED FEBRUARY 8, 1982 (P.L.20, NO.10), IS AMENDED TO READ:
     5     SECTION 2.  DEFINITIONS.--THE FOLLOWING TERMS WHENEVER USED
     6  OR REFERRED TO IN THIS ACT SHALL HAVE THE FOLLOWING MEANINGS,
     7  EXCEPT IN THOSE INSTANCES WHERE THE CONTEXT CLEARLY INDICATES
     8  OTHERWISE:
     9     * * *
    10     (M)  THE TERM "ELIGIBLE EDUCATIONAL INSTITUTION" SHALL MEAN
    11  AN INDEPENDENT INSTITUTION OF HIGHER EDUCATION LOCATED IN AND
    12  CHARTERED BY, THE COMMONWEALTH OR A PRIVATE, SECONDARY SCHOOL
    13  LOCATED IN THIS COMMONWEALTH AND APPROVED BY THE DEPARTMENT OF
    14  EDUCATION, WHICH IS NOT A STATE-OWNED INSTITUTION, WHICH IS
    15  OPERATED NOT FOR PROFIT, WHICH IS DETERMINED BY THE AUTHORITY
    16  NOT TO BE A THEOLOGICAL SEMINARY OR SCHOOL OF THEOLOGY OR A
    17  SECTARIAN AND DENOMINATIONAL INSTITUTION AND WHICH IS APPROVED
    18  AS ELIGIBLE BY THE AUTHORITY PURSUANT TO REGULATIONS APPROVED BY
    19  IT.
    20     * * *
    21     SECTION 2.  CLAUSES (A)(15) AND (B)(2)(IV) OF SUBSECTION A OF
    22  SECTION 4 OF THE ACT, AMENDED JUNE 22, 1990 (P.L.236, NO.54),
    23  ARE AMENDED AND SUBSECTION B IS AMENDED BY ADDING CLAUSES TO
    24  READ:
    25     SECTION 4.  PURPOSES AND POWERS; GENERAL.--A.  EVERY
    26  AUTHORITY INCORPORATED UNDER THIS ACT SHALL BE A BODY CORPORATE
    27  AND POLITIC, AND SHALL BE FOR THE PURPOSE OF ACQUIRING, HOLDING,
    28  CONSTRUCTING, IMPROVING, MAINTAINING AND OPERATING, OWNING,
    29  LEASING, EITHER IN THE CAPACITY OF LESSOR OR LESSEE, PROJECTS OF
    30  THE FOLLOWING KIND AND CHARACTER AND PROVIDING FINANCING FOR
    19900H2309B4319                  - 2 -

     1  INSURANCE RESERVES.
     2     (A)  THE AUTHORITY SHALL BE FOR THE PURPOSE OF ACQUIRING,
     3  HOLDING, CONSTRUCTING, FINANCING, IMPROVING, MAINTAINING AND
     4  OPERATING, OWNING, LEASING, EITHER IN THE CAPACITY OF LESSOR OR
     5  LESSEE, PROJECTS OF THE KIND AND CHARACTER DESCRIBED IN THE
     6  FOLLOWING SUBCLAUSES AND FOR THE PURPOSE OF PROVIDING FINANCING
     7  FOR INSURANCE RESERVES:
     8     * * *
     9     (15)  BUILDINGS AND FACILITIES FOR PRIVATE, NONPROFIT,
    10  NONSECTARIAN SECONDARY SCHOOLS, COLLEGES AND UNIVERSITIES,
    11  STATE-RELATED UNIVERSITIES AND COMMUNITY COLLEGES, WHICH ARE
    12  DETERMINED BY THE AUTHORITY TO BE ELIGIBLE EDUCATIONAL
    13  INSTITUTIONS PROVIDED THAT SUCH BUILDINGS AND FACILITIES SHALL
    14  HAVE BEEN APPROVED BY RESOLUTION OR ORDINANCE ADOPTED BY THE
    15  GOVERNING BODY OF THE MUNICIPALITY OR MUNICIPALITIES ORGANIZING
    16  THE AUTHORITY AND THAT THE APPROVAL DOES NOT OBLIGATE THE TAXING
    17  POWER OF THE GOVERNING BODY IN ANY WAY;
    18     * * *
    19     (B)  THIS SECTION IS SUBJECT TO THE FOLLOWING LIMITATIONS:
    20     * * *
    21     (2)  THE PURPOSE AND INTENT OF THIS ACT BEING TO BENEFIT THE
    22  PEOPLE OF THE COMMONWEALTH BY, AMONG OTHER THINGS, INCREASING
    23  THEIR COMMERCE, HEALTH, SAFETY AND PROSPERITY, AND NOT TO
    24  UNNECESSARILY BURDEN OR INTERFERE WITH EXISTING BUSINESS BY THE
    25  ESTABLISHMENT OF COMPETITIVE ENTERPRISES, NONE OF THE POWERS
    26  GRANTED BY THIS ACT SHALL BE EXERCISED IN THE CONSTRUCTION,
    27  FINANCING, IMPROVEMENT, MAINTENANCE, EXTENSION OR OPERATION OF
    28  ANY PROJECT OR PROJECTS OR PROVIDING FINANCING FOR INSURANCE
    29  RESERVES WHICH IN WHOLE OR IN PART SHALL DUPLICATE OR COMPETE
    30  WITH EXISTING ENTERPRISES SERVING SUBSTANTIALLY THE SAME
    19900H2309B4319                  - 3 -

     1  PURPOSES. THIS LIMITATION SHALL NOT APPLY TO THE EXERCISE OF THE
     2  POWERS GRANTED HEREUNDER:
     3     * * *
     4     (IV)  TO HOSPITAL PROJECTS OR HEALTH CENTERS TO BE LEASED TO,
     5  OR FINANCED WITH LOANS TO, PUBLIC HOSPITALS, NONPROFIT
     6  CORPORATION HEALTH CENTERS OR NONPROFIT HOSPITAL CORPORATIONS
     7  SERVING THE PUBLIC OR TO SCHOOL BUILDING PROJECTS AND FACILITIES
     8  TO BE LEASED TO, OR FINANCED WITH LOANS TO, PRIVATE, NONPROFIT,
     9  NONSECTARIAN SECONDARY SCHOOLS, COLLEGES AND UNIVERSITIES,
    10  STATE-RELATED UNIVERSITIES AND COMMUNITY COLLEGES, OR TO
    11  FACILITIES, LIMITED AS DESCRIBED ABOVE, TO PRODUCE STEAM OR TO
    12  GENERATE ELECTRIC POWER, IF EACH MUNICIPALITY ORGANIZING AN
    13  AUTHORITY FOR SUCH A PROJECT SHALL DECLARE BY RESOLUTION OR
    14  ORDINANCE THAT IT IS DESIRABLE FOR THE HEALTH, SAFETY AND
    15  WELFARE OF THE PEOPLE IN THE AREA SERVED BY SUCH FACILITIES TO
    16  HAVE SUCH FACILITIES PROVIDED BY, OR FINANCED THROUGH AN
    17  AUTHORITY; NOR
    18     * * *
    19     B.  Every Authority is hereby granted, and shall have and may
    20  exercise all powers necessary or convenient for the carrying out
    21  of the aforesaid purposes, including but without limiting the
    22  generality of the foregoing, the following rights and powers:
    23     * * *
    24     (h.1)  In the case of an Authority which has agreed to
    25  provide water service through a separate meter and separate
    26  service line to a residential dwelling unit in which the owner
    27  does not reside, the owner shall be liable to pay the tenant's
    28  bill for service rendered to the tenant by the Authority only if
    29  the Authority notifies the owner and the tenant within thirty
    30  days after the bill first becomes overdue. Such notification
    19900H2309B4319                  - 4 -

     1  shall be provided by first class mail to the address of the
     2  owner provided to the Authority by the owner and to the billing
     3  address of the tenant, respectively. Nothing herein shall be
     4  construed to require an Authority to terminate service to a
     5  tenant, provided that the owner shall not be liable for any
     6  service which the Authority provides to the tenant ninety or
     7  more days after the tenant's bill first becomes due unless the
     8  Authority has been prevented by court order from terminating
     9  service to that tenant.
    10     (h.2)  In the case of an Authority which has agreed to
    11  provide sewer service to a residential dwelling unit in which
    12  the owner does not reside, the Authority shall notify the owner
    13  and the tenant within thirty days after the tenant's bill for
    14  that service first becomes overdue. Such notification shall be
    15  provided by first class mail to the address of the owner
    16  provided to the Authority by the owner and to the billing
    17  address of the tenant, respectively. Nothing herein shall be
    18  construed to relieve the owner of liability for such service
    19  unless the Authority fails to provide the notice required
    20  herein.
    21     * * *
    22     Section 2 3.  This act shall take effect in 60 days.           <--






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