PRIOR PRINTER'S NO. 3699                      PRINTER'S NO. 4121

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2694 Session of 1996


        INTRODUCED BY READSHAW, DEMPSEY, STISH, FICHTER, VAN HORNE,
           WOGAN, PETRONE, BAKER, GEIST, ARGALL, HABAY, HARHART,
           D. W. SNYDER, ROBINSON, BATTISTO, STETLER, STABACK, BROWNE,
           TRELLO, ARMSTRONG, WALKO, RUBLEY, STEELMAN, RAMOS, BOSCOLA,
           DENT AND J. TAYLOR, JUNE 11, 1996

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           OCTOBER 7, 1996

                                     AN ACT

     1  Amending the act of February 1, 1966 (1965 P.L.1656, No.581),
     2     entitled "An act concerning boroughs, and revising, amending
     3     and consolidating the law relating to boroughs," further
     4     providing FOR ASSOCIATIONS AND ORGANIZATIONS FOR MAYORS AND    <--
     5     for general powers.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  Section 1201(4) of the act of February 1, 1966     <--
     9  (1965 P.L.1656, No.581), known as The Borough Code, amended June
    10  26, 1995 (P.L.63, No.12), is amended to read:
    11     SECTION 1.  SECTION 704 OF THE ACT OF FEBRUARY 1, 1966 (1965   <--
    12  P.L.1656, NO.581), KNOWN AS THE BOROUGH CODE, AMENDED JANUARY
    13  28, 1988 (P.L.21, NO.10), IS AMENDED TO READ:
    14     SECTION 704.  ASSOCIATIONS AND ORGANIZATIONS FOR MAYORS.--ANY
    15  MAYOR MAY JOIN A MAYORS' ASSOCIATION AND BOROUGH COUNCIL SHALL
    16  PAY REASONABLE DUES, NOT TO EXCEED [TWENTY-FIVE DOLLARS ($25)]
    17  ONE-HUNDRED DOLLARS ($100), AS MAY BE FIXED BY THE ASSOCIATION


     1  FOR EACH MAYOR BELONGING TO THAT ASSOCIATION. THE MAYOR MAY
     2  ATTEND THE ANNUAL MEETING OF THE ASSOCIATION, WHICH SHALL BE
     3  HELD IN THE COMMONWEALTH IN ACCORDANCE WITH THE PROCEDURE
     4  ADOPTED BY THE ASSOCIATION. EACH MAYOR SHALL BE ALLOWED EXPENSES
     5  WHICH SHALL BE LIMITED TO THE REGISTRATION FEE, MILEAGE FOR USE
     6  OF PERSONAL VEHICLE OR REIMBURSEMENT OF ACTUAL TRANSPORTATION
     7  EXPENSE GOING TO AND RETURNING FROM SUCH MEETING PLUS ALL OTHER
     8  ACTUAL EXPENSES THAT THE COUNCIL MAY HAVE AGREED TO PAY. EVERY
     9  MAYOR ATTENDING THE ANNUAL MEETING SHALL SUBMIT TO THE COUNCIL
    10  AN ITEMIZED ACCOUNT OF EXPENSES INCURRED AT THE ANNUAL MEETING.
    11     SECTION 2.  SECTION 1201(4) OF THE ACT, AMENDED JUNE 26, 1995
    12  (P.L.63, NO.12), IS AMENDED TO READ:
    13     Section 1201.  General Powers.--A borough may:
    14     * * *
    15     (4)  Purchase, acquire by gift, or otherwise, hold, lease,
    16  let and convey, by sale or lease, such real and personal
    17  property as shall be deemed to be to the best interest of the
    18  borough: Provided, That no real estate owned by the borough
    19  shall be sold for a consideration in excess of fifteen hundred
    20  dollars ($1500), except to the highest bidder after due notice
    21  by advertisement for bids or advertisement of a public auction
    22  in one newspaper of general circulation in the borough. Such
    23  advertisement shall be published once not less than ten days
    24  prior to the date fixed for the opening of bids or public
    25  auction, and such date for opening bids or public auction shall
    26  be announced in such advertisement. The award of contracts shall
    27  be made only by public announcement at a regular or special
    28  meeting of council or at the public auction. All bids shall be
    29  accepted on the condition that payment of the purchase price in
    30  full shall be made within sixty days of the acceptance of bids.
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     1  The borough council shall have the authority to reject all bids
     2  if such bids are deemed to be less than the fair market value of
     3  the real property. In the case of a public auction, the borough
     4  council may establish a minimum bid based on the fair market
     5  value of the real property. Real estate owned by a borough may
     6  be sold at a consideration of fifteen hundred dollars ($1500) or
     7  less without advertisement or competitive bidding only after
     8  council estimates the value thereof upon receipt of an appraisal
     9  by a qualified real estate appraiser.
    10     Except as otherwise hereinafter provided in the case of
    11  personal property of an estimated fair market value of less than
    12  one thousand dollars ($1,000), no borough personal property
    13  shall be disposed of, by sale or otherwise, except upon approval
    14  of council, by ordinance or resolution. In cases where council
    15  shall approve a sale of such property, it shall estimate the
    16  fair market value of the entire lot to be disposed of. If
    17  council shall estimate the fair market value to be one thousand
    18  dollars ($1,000) or more, the entire lot shall be advertised for
    19  sale once, in at least one newspaper of general circulation in
    20  the borough, not less than ten days prior to the date fixed for
    21  the opening of bids or public auction, and such date of opening
    22  of bids or public auction, shall be announced in such
    23  advertisement, and sale of the property so advertised shall be
    24  made to the best responsible bidder. Council may reject any bids
    25  received if the bids are believed to be less than the fair
    26  market value of the property. Council shall, by resolution,
    27  adopt a procedure for the sale of surplus personal property,
    28  either individual items or lots of items, of an estimated fair
    29  market value of less than one thousand dollars ($1,000) and the
    30  approval of council shall not be required for any individual
    19960H2694B4121                  - 3 -

     1  sale that shall be made in conformity to such procedure.
     2     The provisions of this clause shall not be mandatory where
     3  borough property is to be traded in or exchanged for new borough
     4  property.
     5     The provisions of this clause requiring advertising for bids
     6  or sale at public auction and sale to the highest bidder shall
     7  not apply where borough real or personal property is to be sold
     8  to a county, city, borough, town, township, institution
     9  district, school district, volunteer fire company, volunteer
    10  ambulance service or volunteer rescue squad located within the
    11  borough, or municipal authority pursuant to the Municipality
    12  Authorities Act of 1945, is to be sold to a non-profit
    13  corporation engaged in community industrial, commercial or
    14  affordable housing development or reuse or where real property
    15  is to be sold to a person for his exclusive use in an industrial
    16  development program or where real property is to be sold to a
    17  non-profit corporation organized as a public library for its
    18  exclusive use as a library, or where real property is to be sold
    19  to a non-profit medical service corporation as authorized by
    20  clause (76) of section 1202 or where real property is to be sold
    21  to a non-profit housing corporation as authorized by clause (77)
    22  of section 1202 or where real property is to be sold to the
    23  Commonwealth or to the Federal Government. When real property is
    24  to be sold to a non-profit corporation organized as a public
    25  library for its exclusive use as a library or to a non-profit
    26  medical service corporation or to a non-profit housing
    27  corporation, council may elect to accept such nominal
    28  consideration for such sale as it shall deem appropriate. Real
    29  property sold pursuant to this clause to a volunteer fire
    30  company, volunteer ambulance service or volunteer rescue squad,
    19960H2694B4121                  - 4 -

     1  non-profit medical service corporation or to a non-profit
     2  housing corporation shall be subject to the condition that when
     3  the property is not used for the purposes of the company,
     4  service, squad or the corporation the property shall revert to
     5  the borough.
     6     THE EXEMPTION GRANTED BY THIS CLAUSE TO NON-PROFIT             <--
     7  CORPORATIONS ENGAGED IN COMMUNITY, INDUSTRIAL, COMMERCIAL OR
     8  AFFORDABLE HOUSING DEVELOPMENT OR REUSE SHALL NOT APPLY TO
     9  PROPERTY OWNED AND OPERATED BY THE BOROUGH OR SUBCONTRACTED OR
    10  OPERATED ON THE BEHALF OF THE BOROUGH IN ORDER TO CONDUCT
    11  EXISTING GOVERNMENTAL FUNCTIONS.
    12     * * *
    13     Section 2 3.  This act shall take effect in 60 days.           <--












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