PRINTER'S NO. 1265
No. 1115 Session of 1991
INTRODUCED BY LEVDANSKY, MICHLOVIC, McNALLY AND TRELLO,
APRIL 10, 1991
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 10, 1991
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 providing for limitations on authorities.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. Clause (b) of subsection A of section 4 of the
18 act of May 2, 1945 (P.L.382, No.164), known as the Municipality
19 Authorities Act of 1945, amended June 22, 1990 (P.L.236, No.54),
20 November 21, 1990 (P.L.535, No.132) and December 19, 1990 (P.L.
21 , No.217), is amended to read:
22 Section 4. Purposes and Powers; General.--A. Every
23 Authority incorporated under this act shall be a body corporate
1 and politic, and shall be for the purpose of acquiring, holding,
2 constructing, improving, maintaining and operating, owning,
3 leasing, either in the capacity of lessor or lessee, projects of
4 the following kind and character and providing financing for
5 insurance reserves.
6 * * *
7 (b) This section is subject to the following limitations:
8 (1) An Authority created by a school district or school
9 districts shall have the power only to acquire, hold, construct,
10 improve, maintain, operate and lease public school buildings and
11 other school projects acquired, constructed or improved for
12 public school purposes.
13 (2) The purpose and intent of this act being to benefit the
14 people of the Commonwealth by, among other things, increasing
15 their commerce, health, safety and prosperity, and not to
16 unnecessarily burden or interfere with existing business by the
17 establishment of competitive Authorities or enterprises, none of
18 the powers granted by this act shall be exercised in the
19 construction, financing, improvement, maintenance, extension or
20 operation of any project or projects or providing financing for
21 insurance reserves which in whole or in part shall duplicate or
22 compete with existing Authorities or enterprises serving
23 substantially the same purposes. This limitation shall not apply
24 to the exercise of the powers granted hereunder:
25 (i) for facilities and equipment for the collection, removal
26 or disposal of ashes, garbage, rubbish and other refuse
27 materials by incineration, land fill or other methods, if each
28 municipality organizing or intending to use the facilities of an
29 Authority having such powers shall declare by resolution or
30 ordinance that it is desirable for the health and safety of the
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1 people of such municipality that it use the facilities of the
2 Authority, and if any contract between such municipality and any
3 other person, firm or corporation for the collection, removal or
4 disposal of ashes, garbage, rubbish and other refuse material
5 has by its terms expired or is terminable at the option of the
6 municipality or will expire within six months from the date such
7 ordinance becomes effective; nor
8 (ii) for industrial development projects if the Authority
9 does not develop industrial projects which will compete with
10 existing industries; nor
11 (iii) for Authorities created for the purpose of providing
12 business improvements and administrative services if each
13 municipality organizing an Authority for such a project shall
14 declare by resolution or ordinance that it is desirable for the
15 entire local government unit to improve the business district;
16 nor
17 (iv) to hospital projects or health centers to be leased to,
18 or financed with loans to, public hospitals, nonprofit
19 corporation health centers or nonprofit hospital corporations
20 serving the public or to school building projects and facilities
21 to be leased to, or financed with loans to, private, nonprofit,
22 nonsectarian secondary schools, colleges and universities,
23 State-related universities and community colleges, or to
24 facilities, limited as described above, to produce steam or to
25 generate electric power, if each municipality organizing an
26 Authority for such a project shall declare by resolution or
27 ordinance that it is desirable for the health, safety and
28 welfare of the people in the area served by such facilities to
29 have such facilities provided by, or financed through an
30 Authority; nor
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1 (v) to provide financing for insurance reserves, if each
2 municipality or Authority intending to use any proceeds thereof
3 shall declare by resolution or ordinance that it is desirable
4 for the health, safety and welfare of the people in such local
5 government unit or served by such Authority; nor
6 (vi) to projects for financing working capital.
7 (3) No Authority established by this act shall have the
8 power to finance, refinance or refund any project beyond the
9 territorial boundaries of its incorporating municipality.
10 * * *
11 Section 2. This act shall take effect immediately.
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