HOUSE AMENDED
PRIOR PRINTER'S NOS. 872, 1100 PRINTER'S NO. 1186
No. 780 Session of 2001
INTRODUCED BY ROBBINS, PUNT, EARLL, THOMPSON, WOZNIAK, WENGER,
LEMMOND, CORMAN, M. WHITE, RHOADES, WAUGH, MOWERY AND CONTI,
APRIL 4, 2001
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 12, 2001
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 the purposes and powers of an
15 authority and for governing body residency requirements.
16 AMENDING TITLE 53 (MUNICIPALITIES GENERALLY) OF THE PENNSYLVANIA <--
17 CONSOLIDATED STATUTES, CODIFYING THE MUNICIPAL AUTHORITIES
18 ACT OF 1945 AND THE PARKING AUTHORITIES LAW; REVISING
19 PROVISIONS ON PURPOSES AND POWERS OF MUNICIPAL AUTHORITIES
20 AND RESIDENCY REQUIREMENTS FOR MUNICIPAL AUTHORITY GOVERNING
21 BODIES; FURTHER PROVIDING FOR THE ORGANIZATION AND DUTIES OF
22 GOVERNING BODIES OF PARKING AUTHORITIES IN CITIES OF THE
23 FIRST CLASS; AND MAKING REPEALS.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 7A of the act of May 2, 1945 (P.L.382, <--
27 No.164), known as the Municipality Authorities Act of 1945,
1 amended December 20, 2000 (P.L.792, No.112), is amended to read:
2 Section 7. Governing Body.--A. The powers of each Authority
3 shall be exercised by a governing body (herein called the
4 "Board") composed as follows:
5 (a) If the Authority is incorporated by one municipality the
6 board shall consist of such number of members not less than five
7 as shall be set forth in the articles of incorporation or
8 amendment thereto. The governing body of such municipality shall
9 appoint the members of the board, whose terms of office shall
10 commence on the date of appointment. One member shall serve for
11 one year, one for two years, one for three years, one for four
12 years and one for five years from the first Monday in January
13 next succeeding the date of incorporation or amendment, and if
14 there are more than five members of the board, their terms shall
15 be staggered in a similar manner for terms of from one to five
16 years from the first Monday in January next succeeding.
17 Thereafter whenever a vacancy has occurred by reason of the
18 expiration of the term of any member, the said governing body
19 shall appoint a member of the board for a term of five years
20 from the date of expiration of the prior term to succeed the
21 member whose term has expired.
22 (b) If the Authority is incorporated by two or more
23 municipalities, the board shall consist of a number of members
24 at least equal to the number of municipalities incorporating the
25 Authority, but in no event less than five. When one or more
26 additional municipalities join an existing Authority, each of
27 such joining municipalities shall have such membership on the
28 board as the municipalities then members of the Authority and
29 the joining municipalities may determine by appropriate
30 resolutions. The members of the board of a joint Authority shall
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1 each be appointed by the governing body of the incorporating or
2 joining municipality he represents and their terms of office
3 shall commence on the date of appointment. One member shall
4 serve for one year, one for two years, one for three years, one
5 for four years and one for five years from the first Monday in
6 January next succeeding the date of incorporation, amendment or
7 joinder, and if there are more than five members of the board,
8 their terms shall be staggered in a similar manner for terms of
9 from one to five years from the first Monday in January next
10 succeeding. Thereafter, whenever a vacancy has occurred by
11 reason of the expiration of the term of any member, the
12 governing body of the municipality which has the power of
13 appointment shall appoint a member of the board for a term of
14 five years from the date of expiration of the prior term.
15 Except as herein provided for transit authorities created for
16 the purpose of eliminating grade crossings the members of the
17 board, each of whom shall be a [resident] taxpayer in, maintain
18 a business in, or be a citizen of the municipality by which he
19 is appointed or be a taxpayer in, maintain a business in, or be
20 a citizen of a municipality into which one or more of the
21 projects of the Authority extends or is to extend or to which
22 one or more of said projects has been or is to be leased, shall
23 be appointed, their terms fixed and staggered, and vacancies
24 filled, and where two or more municipalities are members of the
25 Authority, shall be apportioned in such manner as the articles
26 of incorporation, the amendments thereof or the application for
27 membership required by section three point one of this act[.]
28 shall provide. A EXCEPT FOR SPECIAL SERVICE DISTRICTS LOCATED IN <--
29 WHOLE OR IN PART IN CITIES OF THE FIRST CLASS, A majority of an
30 Authority's board members shall be citizens residing in the
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1 incorporating municipality or incorporating municipalities of
2 the Authority.
3 If the Authority, is created for the purpose of eliminating
4 grade crossings, the members of the board, the majority of whom
5 shall be citizens of the municipality by which they are
6 appointed or of a municipality into which one or more of the
7 projects of the Authority extends or is to extend or to which
8 one or more of said projects has been or is to be leased, shall
9 be appointed, their terms fixed and staggered, and vacancies
10 filled, and where two or more municipalities are members of the
11 Authority, shall be apportioned in such manner as the articles
12 of incorporation, the amendments thereof or the application for
13 membership required by section 3.1 of this act shall provide.
14 Unless excused by the board, a member of a board who fails to
15 attend three consecutive meetings of the board may be removed by
16 the appointing municipality up to sixty days after the date of
17 the third meeting of the board which the member failed to
18 attend.
19 * * *
20 Section 2. Notwithstanding any provision of section 2 of the
21 act of December 20, 2000 (P.L.792, No.112) entitled "An act
22 amending the act of May 2, 1945 (P.L.382, No.164), entitled 'An
23 act providing for the incorporation as bodies corporate and
24 politic of "Authorities" for municipalities, counties and
25 townships; prescribing the rights, powers and duties of such
26 Authorities heretofore or hereafter incorporated; authorizing
27 such Authorities to acquire, construct, improve, maintain and
28 operate projects, and to borrow money and issue bonds therefor;
29 providing for the payment of such bonds, and prescribing the
30 rights of the holders thereof; conferring the right of eminent
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1 domain on such Authorities; authorizing such Authorities to
2 enter into contracts with and to accept grants from the Federal
3 Government or any agency thereof; and conferring exclusive
4 jurisdiction on certain courts over rates,'" to the contrary,
5 any member of a board of an Authority who was appointed prior to
6 the effective date of the act of December 20, 2000 (P.L.792,
7 No.112) and who was qualified to be a member of a board under
8 section 7A of the act immediately prior to enactment of the act
9 of December 20, 2000 (P.L.792, No.112) shall remain and be
10 deemed to have remained at all times qualified to be a member of
11 such board until the regular expiration of such member's term.
12 Section 3. This act shall take effect in 30 days.
13 SECTION 1. TITLE 53 OF THE PENNSYLVANIA CONSOLIDATED <--
14 STATUTES IS AMENDED BY ADDING CHAPTERS TO READ:
15 CHAPTER 55
16 PARKING AUTHORITIES
17 SEC.
18 5501. SCOPE.
19 5502. DECLARATION OF POLICY.
20 5503. DEFINITIONS.
21 5504. METHOD OF INCORPORATION.
22 5505. PURPOSES AND POWERS.
23 5506. BONDS.
24 5507. BONDHOLDERS.
25 5508. GOVERNING BODY.
26 5508.1. SPECIAL PROVISIONS FOR AUTHORITIES IN CITIES OF THE
27 FIRST CLASS.
28 5509. ACQUISITION OF LANDS.
29 5510. MONEY OF AUTHORITY.
30 5511. COMPETITION IN AWARD OF CONTRACTS.
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1 5512. USE OF PROJECTS.
2 5513. PLEDGE BY COMMONWEALTH.
3 5514. TERMINATION OF AUTHORITY.
4 5515. EXEMPTION FROM TAXATION; PAYMENTS IN LIEU OF TAXES.
5 5516. TRANSFER OF EXISTING FACILITIES TO AUTHORITY.
6 5517. SEVERABILITY.
7 § 5501. SCOPE.
8 THIS CHAPTER DEALS WITH PARKING AUTHORITIES.
9 § 5502. DECLARATION OF POLICY.
10 THE GENERAL ASSEMBLY FINDS AND DECLARES AS FOLLOWS:
11 (1) RESIDENTIAL DECENTRALIZATION IN MUNICIPALITIES HAS
12 BEEN ACCOMPANIED BY AN EVER-INCREASING TREND IN THE NUMBER OF
13 PERSONS ENTERING THE BUSINESS SECTIONS BY PRIVATE AUTOMOBILE
14 AND OTHER TYPES OF MOTOR VEHICLES.
15 (2) THE FREE CIRCULATION OF TRAFFIC OF ALL KINDS THROUGH
16 THE STREETS OF MUNICIPALITIES IS NECESSARY FOR THE HEALTH,
17 SAFETY AND GENERAL WELFARE OF THE PUBLIC, WHETHER RESIDING IN
18 OR TRAVELING TO, THROUGH OR FROM SUCH MUNICIPALITIES IN THE
19 COURSE OF LAWFUL PURSUITS.
20 (3) THE GREATLY INCREASED USE BY THE PUBLIC OF MOTOR
21 VEHICLES OF ALL KINDS HAS CAUSED SERIOUS TRAFFIC CONGESTION
22 ON THE STREETS OF MUNICIPALITIES.
23 (4) THE PARKING OR STANDING OF MOTOR VEHICLES OF ALL
24 KINDS ON THE STREETS HAS CONTRIBUTED TO THIS CONGESTION TO
25 SUCH AN EXTENT AS TO INTERFERE SERIOUSLY WITH THE PRIMARY USE
26 OF SUCH STREETS FOR THE MOVEMENT OF TRAFFIC.
27 (5) PARKING OR STANDING PREVENTS THE FREE CIRCULATION OF
28 TRAFFIC IN, THROUGH AND FROM THE MUNICIPALITY; IMPEDES RAPID
29 AND EFFECTIVE FIGHTING OF FIRES AND THE DISPOSITION OF POLICE
30 FORCES IN THE DISTRICT; AND ENDANGERS THE HEALTH, SAFETY AND
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1 WELFARE OF THE GENERAL PUBLIC.
2 (6) PARKING OR STANDING THREATENS IRREPARABLE LOSS IN
3 VALUATIONS OF PROPERTY IN THE MUNICIPALITY WHICH CAN NO
4 LONGER BE READILY REACHED BY VEHICULAR TRAFFIC.
5 (7) THIS PARKING CRISIS, WHICH THREATENS THE WELFARE OF
6 THE COMMUNITY, CAN BE REDUCED BY ADMINISTERING AND ENFORCING
7 AN EFFICIENT SYSTEM OF ON-STREET REGULATIONS AND BY PROVIDING
8 SUFFICIENT OFF-STREET PARKING AND PARKING TERMINAL FACILITIES
9 PROPERLY LOCATED IN THE SEVERAL RESIDENTIAL, COMMERCIAL AND
10 INDUSTRIAL AREAS OF THE MUNICIPALITY.
11 (8) THE ESTABLISHMENT OF AUTHORITIES WILL PROMOTE THE
12 PUBLIC SAFETY CONVENIENCE AND WELFARE.
13 (9) IT IS INTENDED THAT THE AUTHORITY COOPERATE WITH ALL
14 EXISTING PARKING AND PARKING TERMINAL FACILITIES SO THAT
15 PRIVATE ENTERPRISE AND GOVERNMENT MAY MUTUALLY PROVIDE
16 ADEQUATE PARKING SERVICES FOR THE CONVENIENCE OF THE PUBLIC.
17 (10) THE SAFETY AND WELFARE OF THE INHABITANTS OF THIS
18 COMMONWEALTH IS PROMOTED BY THE CREATION IN MUNICIPALITIES OF
19 AUTHORITIES, WHICH SHALL EXIST AND OPERATE FOR THE PURPOSES
20 CONTAINED IN THIS CHAPTER. SUCH PURPOSES ARE DECLARED TO BE
21 PUBLIC USES FOR WHICH PUBLIC MONEY MAY BE SPENT AND PRIVATE
22 PROPERTY MAY BE ACQUIRED BY THE EXERCISE OF THE POWER OF
23 EMINENT DOMAIN.
24 § 5503. DEFINITIONS.
25 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
26 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
27 CONTEXT CLEARLY INDICATES OTHERWISE:
28 "AUTHORITY." A BODY POLITIC AND CORPORATE ESTABLISHED UNDER
29 THIS CHAPTER.
30 "BOARD." THE GOVERNING BODY OF AN AUTHORITY.
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1 "BOND." INCLUDES A NOTE, BOND, REFUNDING BOND, AND OTHER
2 EVIDENCE OF INDEBTEDNESS, OR OBLIGATIONS, WHICH THE AUTHORITY IS
3 AUTHORIZED TO ISSUE UNDER SECTION 5505 (RELATING TO PURPOSES AND
4 POWERS).
5 "BOOT." TO PLACE ON A PARKED VEHICLE A MECHANICAL DEVICE
6 WHICH IS DESIGNED TO BE ATTACHED TO THE WHEEL OR TIRE OF THE
7 VEHICLE SO AS TO PROHIBIT ITS MOVEMENT, FOR THE ENFORCEMENT OF
8 ON-STREET PARKING REGULATIONS OR DELINQUENT PARKING TICKETS OR
9 FINES.
10 "CITY." A CITY OF THE FIRST CLASS, SECOND CLASS, SECOND
11 CLASS A OR THIRD CLASS.
12 "CONSTRUCT." INCLUDES ACQUIRE, IN A MANNER DEEMED DESIRABLE.
13 "CONSTRUCTION." INCLUDES ACQUISITION.
14 "FACILITY." A LOT, BUILDING OR STRUCTURE, ABOVE, AT OR BELOW
15 THE SURFACE OF THE EARTH. THE TERM INCLUDES EQUIPMENT,
16 ENTRANCES, EXITS, FENCING AND ALL OTHER ACCESSORIES NECESSARY OR
17 DESIRABLE FOR THE SAFETY AND CONVENIENCE OF THE PARKING OF
18 VEHICLES.
19 "IMPROVE." INCLUDES EXTEND AND ENLARGE, IN A MANNER DEEMED
20 DESIRABLE.
21 "IMPROVEMENT." INCLUDES EXTENSION AND ENLARGEMENT.
22 "LEGISLATIVE BODY." THE COUNCIL OF A CITY OR BOROUGH AND THE
23 BOARD OF COMMISSIONERS OF A FIRST CLASS TOWNSHIP.
24 "MUNICIPALITY." ANY OF THE FOLLOWING:
25 (1) A CITY.
26 (2) A BOROUGH.
27 (3) A TOWNSHIP OF THE FIRST CLASS.
28 "OFF-STREET PARKING." PARKING OF VEHICLES IN LOCATIONS OTHER
29 THAN PUBLIC STREETS OR THOROUGHFARES. THE TERM INCLUDES ALL
30 FACILITIES OF AN AUTHORITY AND PRIVATE AND PUBLIC PARKING LOTS
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1 AND PARKING GARAGES.
2 "ON-STREET PARKING." PARKING OF VEHICLES ON PUBLIC STREETS
3 OR THOROUGHFARES LOCATED WITHIN THE PHYSICAL BOUNDARIES OF A
4 MUNICIPALITY.
5 "PARENT MUNICIPALITY." A MUNICIPALITY WHICH ESTABLISHES AN
6 AUTHORITY.
7 "PROJECT." ANY STRUCTURE, FACILITY OR UNDERTAKING WHICH AN
8 AUTHORITY IS AUTHORIZED TO ACQUIRE, CONSTRUCT, IMPROVE, MAINTAIN
9 OR OPERATE UNDER THIS CHAPTER.
10 § 5504. METHOD OF INCORPORATION.
11 (A) PROCEDURE.--
12 (1) IF A LEGISLATIVE BODY DESIRES TO ORGANIZE AN
13 AUTHORITY UNDER THIS CHAPTER, IT SHALL ADOPT A RESOLUTION OR
14 ORDINANCE SIGNIFYING INTENTION TO DO SO.
15 (2) IF THE RESOLUTION OR ORDINANCE SETS FORTH THE
16 PROPOSED ARTICLES OF INCORPORATION IN FULL, IT SHALL NOT BE
17 REQUIRED, ANY LAW TO THE CONTRARY NOTWITHSTANDING, IN
18 PUBLISHING THE RESOLUTION OR ORDINANCE UNDER THE PROVISIONS
19 OF EXISTING LAW, TO PUBLISH THE PROPOSED ARTICLES OF
20 INCORPORATION IN FULL; BUT IT SHALL BE SUFFICIENT COMPLIANCE
21 WITH SUCH LAW IN THE PUBLICATION TO SET FORTH BRIEFLY THE
22 SUBSTANCE OF THE PROPOSED ARTICLES OF INCORPORATION AND TO
23 REFER TO THE PROVISIONS OF THIS CHAPTER.
24 (3) UPON ADOPTION UNDER PARAGRAPH (1), THE LEGISLATIVE
25 BODY SHALL CAUSE A NOTICE OF THE RESOLUTION OR ORDINANCE TO
26 BE PUBLISHED AT LEAST ONCE IN THE LEGAL NEWSPAPER OF THE
27 COUNTY IN WHICH THE AUTHORITY IS TO BE ORGANIZED, AND AT
28 LEAST ONCE IN A NEWSPAPER OF GENERAL CIRCULATION IN THAT
29 COUNTY. THE NOTICE MUST:
30 (I) CONTAIN A BRIEF STATEMENT OF THE SUBSTANCE OF
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1 THE RESOLUTION OR ORDINANCE, INCLUDING THE SUBSTANCE OF
2 THE ARTICLES OF INCORPORATION, MAKING REFERENCE TO THIS
3 CHAPTER; AND
4 (II) STATE THAT, ON A DAY CERTAIN NOT LESS THAN
5 THREE DAYS AFTER PUBLICATION OF THE NOTICE, ARTICLES OF
6 INCORPORATION OF THE PROPOSED AUTHORITY WILL BE FILED
7 WITH THE SECRETARY OF THE COMMONWEALTH.
8 (B) FILING.--
9 (1) BY THE DAY SPECIFIED IN THE NOTICE UNDER SUBSECTION
10 (A)(3)(II), THE LEGISLATIVE BODY SHALL FILE WITH THE
11 SECRETARY ARTICLES OF INCORPORATION AND NOTICE OF PUBLICATION
12 OF THE NOTICE UNDER SUBSECTION (A)(3).
13 (2) THE ARTICLES OF INCORPORATION MUST SET FORTH ALL OF
14 THE FOLLOWING:
15 (I) THE NAME OF THE AUTHORITY.
16 (II) A STATEMENT THAT THE AUTHORITY IS FORMED UNDER
17 THIS CHAPTER.
18 (III) THE NAME OF THE MUNICIPALITY AND THE NAMES AND
19 ADDRESSES OF THE MEMBERS OF THE LEGISLATIVE BODY.
20 (IV) THE NAMES, ADDRESSES AND TERMS OF OFFICE OF THE
21 FIRST MEMBERS OF THE BOARD.
22 (3) THE MATTERS IN THE ARTICLES OF INCORPORATION UNDER
23 PARAGRAPH (2) SHALL BE DETERMINED IN ACCORDANCE WITH THIS
24 CHAPTER.
25 (4) THE ARTICLES OF INCORPORATION MUST BE EXECUTED BY
26 THE PARENT MUNICIPALITY BY ITS PROPER OFFICER AND UNDER ITS
27 MUNICIPAL SEAL.
28 (C) CERTIFICATE.--IF THE SECRETARY FINDS THAT THE ARTICLES
29 OF INCORPORATION CONFORM TO LAW, THE SECRETARY SHALL, NOT PRIOR
30 TO THE DAY SPECIFIED IN SUBSECTION (A)(3)(II), ENDORSE APPROVAL
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1 ON THE ARTICLES. WHEN PROPER FEES AND CHARGES HAVE BEEN PAID,
2 THE SECRETARY SHALL FILE THE ARTICLES AND ISSUE A CERTIFICATE OF
3 INCORPORATION, TO WHICH SHALL BE ATTACHED A COPY OF THE APPROVED
4 ARTICLES. AFTER ISSUANCE OF THE CERTIFICATE OF INCORPORATION BY
5 THE SECRETARY, THE CORPORATE EXISTENCE OF THE AUTHORITY SHALL
6 BEGIN WHEN THE CERTIFICATE HAS BEEN RECORDED IN THE OFFICE FOR
7 THE RECORDING OF DEEDS IN THE COUNTY WHERE THE PRINCIPAL OFFICE
8 OF THE AUTHORITY IS TO BE LOCATED. THE CERTIFICATE OF
9 INCORPORATION SHALL BE CONCLUSIVE EVIDENCE OF THE FACT THAT THE
10 AUTHORITY HAS BEEN INCORPORATED. PROCEEDINGS MAY BE INSTITUTED
11 BY THE COMMONWEALTH TO DISSOLVE AN AUTHORITY FORMED WITHOUT
12 SUBSTANTIAL COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
13 (D) CERTIFICATION.--WHEN AN AUTHORITY HAS BEEN ORGANIZED AND
14 ITS OFFICERS HAVE BEEN ELECTED, THE SECRETARY OF THE AUTHORITY
15 SHALL CERTIFY TO THE SECRETARY THE NAMES AND ADDRESSES OF ITS
16 OFFICERS AND THE PRINCIPAL OFFICE OF THE AUTHORITY. ANY CHANGE
17 IN THE LOCATION OF THE PRINCIPAL OFFICE SHALL BE CERTIFIED TO
18 THE SECRETARY WITHIN TEN DAYS AFTER THE CHANGE.
19 § 5505. PURPOSES AND POWERS.
20 (A) GENERAL.--
21 (1) THE AUTHORITY SHALL CONSTITUTE A PUBLIC BODY
22 CORPORATE AND POLITIC, EXERCISING PUBLIC POWERS OF THE
23 COMMONWEALTH AS AN AGENCY OF THE COMMONWEALTH.
24 (2) THE AUTHORITY SHALL BE KNOWN AS THE PARKING
25 AUTHORITY OF THE MUNICIPALITY.
26 (3) THE AUTHORITY SHALL NOT BE DEEMED TO BE AN
27 INSTRUMENTALITY OF THE MUNICIPALITY.
28 (4) THE AUTHORITY MAY NOT ENGAGE IN THE PERFORMANCE OF A
29 MUNICIPAL FUNCTION EXCEPT A FUNCTION DELEGATED TO IT BY
30 MUNICIPAL ORDINANCE OR RESOLUTION PASSED UNDER SECTION
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1 5504(A)(1) (RELATING TO METHOD OF INCORPORATION).
2 (B) PURPOSES.--THE AUTHORITY SHALL EXIST FOR THE FOLLOWING
3 PURPOSES:
4 (1) CONDUCT NECESSARY RESEARCH ACTIVITY TO MAINTAIN
5 CURRENT DATA LEADING TO EFFICIENT OPERATION OF OFF-STREET
6 PARKING AND PARKING TERMINAL FACILITIES FOR THE FULFILLMENT
7 OF PUBLIC NEEDS IN RELATION TO SUCH PARKING.
8 (2) ADMINISTER AND ENFORCE AN EFFICIENT AND COORDINATED
9 SYSTEM OF ON-STREET PARKING REGULATIONS WHERE AUTHORIZED BY
10 MUNICIPAL ORDINANCE OR RESOLUTION.
11 (3) ESTABLISH A PERMANENT COORDINATED SYSTEM OF PARKING
12 AND PARKING TERMINAL FACILITIES.
13 (4) PLAN, DESIGN, LOCATE, ACQUIRE, HOLD, CONSTRUCT,
14 IMPROVE, MAINTAIN AND OPERATE, OWN, LEASE AS LESSOR OR LESSEE
15 LAND AND FACILITIES DEVOTED TO THE PARKING OF VEHICLES. THE
16 AUTHORITY SHALL NOT HAVE THE POWER TO ENGAGE IN THE SALE OF
17 GASOLINE, THE SALE OF AUTOMOBILE ACCESSORIES, AUTOMOBILE
18 REPAIR AND SERVICE OR ANY OTHER GARAGE SERVICE AND SHALL NOT
19 ENGAGE IN THE SALE OF ANY COMMODITY OF TRADE OR COMMERCE.
20 (C) PARTIAL LEASING.--
21 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), THE AUTHORITY
22 HAS THE POWER TO LEASE PORTIONS OF THE STREET LEVEL OR OTHER
23 FLOORS OF THE PARKING FACILITIES FOR COMMERCIAL USE AND FOR
24 ANY USE IN ADDITION TO PARKING, INCLUDING EMERGENCY
25 AUTOMOBILE REPAIR SERVICE AND THE SALE, BY THE LESSEE, OF A
26 COMMODITY OF TRADE OR COMMERCE OR OF A SERVICE, IF, IN THE
27 OPINION OF THE AUTHORITY, LEASING IS DESIRABLE AND FEASIBLE
28 IN ORDER TO ASSIST IN DEFRAYING THE EXPENSES OF THE
29 AUTHORITY. LEASES UNDER THIS PARAGRAPH SHALL BE GRANTED ON A
30 FAIR COMPETITIVE BASIS OR A NEGOTIATED OR COMPETITIVE BASIS
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1 AS THE AUTHORITY MAY DEEM BEST SUITED TO ACCOMPLISH THE
2 PURPOSE OF THIS PARAGRAPH. NOTHING IN THIS PARAGRAPH SHALL BE
3 CONSTRUED TO PROHIBIT THE SALE OR LEASING BY THE AUTHORITY,
4 UPON A NEGOTIATED OR COMPETITIVE BASIS AS IT MAY DETERMINE,
5 OF THE RIGHT TO OCCUPY AND USE THE SPACE ABOVE OR UNDER A
6 PARKING FACILITY FOR ANY USE IN ADDITION TO PARKING, TOGETHER
7 WITH THE RIGHT TO USE AND OCCUPY SPACE WITHIN THE PARKING
8 FACILITY AS NECESSARY FOR THE PURPOSE OF ACCESS TO AND
9 SUPPORT OF STRUCTURES OCCUPYING THE SPACE ABOVE THE PARKING
10 FACILITY.
11 (2) PARAGRAPH (1) DOES NOT APPLY TO THE SALE OF:
12 (I) GASOLINE; OR
13 (II) AUTOMOBILE ACCESSORIES.
14 (D) POWERS.--AN AUTHORITY HAS ALL POWERS NECESSARY OR
15 CONVENIENT FOR THE CARRYING OUT OF THE PURPOSES UNDER THIS
16 SECTION, INCLUDING:
17 (1) TO HAVE EXISTENCE FOR A TERM OF 50 YEARS AS A
18 CORPORATION. THE TERM MAY BE EXTENDED BY THE ADOPTION OF AN
19 ORDINANCE BY THE LEGISLATIVE BODY OF THE PARENT MUNICIPALITY.
20 THE ORDINANCE MUST SPECIFY AN EXTENDED TERM NOT TO EXCEED 50
21 YEARS FROM THE DATE OF ADOPTION. THE ORDINANCE MUST BE
22 CERTIFIED, PUBLISHED AND FILED IN THE MANNER PROVIDED IN
23 SECTION 5504(A).
24 (2) TO SUE AND BE SUED.
25 (3) TO ADOPT, USE AND ALTER A CORPORATE SEAL.
26 (4) TO ACQUIRE, PURCHASE, HOLD, LEASE AS LESSEE ANY
27 PROPERTY AND ANY PROPERTY INTEREST, NECESSARY OR DESIRABLE
28 FOR CARRYING OUT THE PURPOSE OF THE AUTHORITY. THIS PARAGRAPH
29 INCLUDES FRANCHISES AND PROPERTY WHICH IS REAL, PERSONAL OR
30 MIXED AND WHICH IS TANGIBLE OR INTANGIBLE.
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1 (5) TO SELL, LEASE AS LESSOR, EXCHANGE, TRANSFER AND
2 DISPOSE OF PROPERTY OR ANY PROPERTY INTEREST AT ANY TIME
3 REQUIRED BY IT.
4 (6) TO ACQUIRE A PROJECT BY PURCHASE, LEASE OR
5 OTHERWISE, AND TO CONSTRUCT, IMPROVE, MAINTAIN, REPAIR AND
6 OPERATE A PROJECT.
7 (7) TO MAKE BYLAWS FOR THE MANAGEMENT AND REGULATION OF
8 ITS AFFAIRS.
9 (8) TO APPOINT OFFICERS, AGENTS, EMPLOYEES AND SERVANTS;
10 TO PRESCRIBE THEIR DUTIES AND TO FIX THEIR COMPENSATION.
11 (9) TO FIX, ALTER, CHARGE AND COLLECT RATES AND OTHER
12 CHARGES FOR ITS FACILITIES AT REASONABLE RATES TO BE
13 DETERMINED EXCLUSIVELY BY IT, SUBJECT TO APPEAL UNDER THIS
14 PARAGRAPH, FOR THE PURPOSES OF PROVIDING FOR THE PAYMENT OF
15 THE EXPENSES OF THE AUTHORITY; FOR THE CONSTRUCTION,
16 IMPROVEMENT, REPAIR, MAINTENANCE AND OPERATION OF ITS
17 FACILITIES AND PROPERTIES; FOR THE PAYMENT OF THE PRINCIPAL
18 OF AND INTEREST ON ITS OBLIGATIONS; AND FOR FULFILLING THE
19 TERMS AND PROVISIONS OF AGREEMENTS MADE WITH THE PURCHASERS
20 OR HOLDERS OF SUCH OBLIGATIONS OR WITH THE MUNICIPALITY. ANY
21 PERSON QUESTIONING THE REASONABLENESS OF RATES FIXED BY THE
22 AUTHORITY MAY BRING SUIT AGAINST THE AUTHORITY IN THE COURT
23 OF COMMON PLEAS OF THE JUDICIAL DISTRICT WHERE THE PROJECT IS
24 LOCATED. THE COURT OF COMMON PLEAS SHALL HAVE EXCLUSIVE
25 JURISDICTION TO DETERMINE THE REASONABLENESS OF THE RATES AND
26 OTHER CHARGES.
27 (10) TO BORROW MONEY AND TO MAKE AND ISSUE BONDS. A BOND
28 SHALL HAVE A MATURITY DATE NOT LONGER THAN 40 YEARS FROM THE
29 DATE OF ISSUE, EXCEPT THAT NO REFUNDING BONDS SHALL HAVE A
30 MATURITY DATE LONGER THAN THE LIFE OF THE AUTHORITY.
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1 (11) TO SECURE THE PAYMENT OF A BOND UNDER PARAGRAPH
2 (10) BY PLEDGE OR DEED OF TRUST OF ALL OR ANY OF ITS REVENUES
3 AND RECEIPTS.
4 (12) TO MAKE AGREEMENTS WITH THE PURCHASERS OR HOLDERS
5 OF BONDS, OR WITH OTHERS IN CONNECTION WITH BONDS, WHETHER
6 ISSUED OR TO BE ISSUED, AS THE AUTHORITY DEEMS ADVISABLE AND
7 IN GENERAL TO PROVIDE FOR THE SECURITY FOR BONDS AND THE
8 RIGHTS OF THE HOLDERS OF BONDS.
9 (13) TO MAKE CONTRACTS AND TO EXECUTE INSTRUMENTS
10 NECESSARY OR CONVENIENT FOR THE CARRYING ON OF ITS BUSINESS.
11 (14) WITHOUT LIMITATION OF THE POWERS IN PARAGRAPHS (1)
12 THROUGH (13), TO BORROW MONEY AND ACCEPT GRANTS FROM, AND TO
13 ENTER INTO CONTRACTS, LEASES OR OTHER TRANSACTIONS WITH, ANY
14 FEDERAL AGENCY, THE COMMONWEALTH, A COUNTY, A CITY, A
15 BOROUGH, A TOWN, A TOWNSHIP, A CORPORATION OR AN AUTHORITY.
16 (15) TO HAVE THE POWER OF EMINENT DOMAIN.
17 (16) TO PLEDGE, HYPOTHECATE OR OTHERWISE ENCUMBER ALL OR
18 ANY OF THE REVENUES OR RECEIPTS OF THE AUTHORITY AS SECURITY
19 FOR ALL OR ANY OF THE OBLIGATIONS OF THE AUTHORITY.
20 (17) TO DO ALL ACTS AND THINGS NECESSARY:
21 (I) FOR THE ACCOMPLISHMENT OF ITS PURPOSES;
22 (II) FOR THE PROMOTION OF ITS BUSINESS;
23 (III) FOR THE GENERAL WELFARE OF THE AUTHORITY; AND
24 (IV) TO CARRY OUT THE POWERS GRANTED TO THE
25 AUTHORITY BY THIS CHAPTER OR ANY OTHER STATUTE.
26 (18) TO ENTER INTO CONTRACTS WITH THE COMMONWEALTH, A
27 MUNICIPALITY, A CORPORATION OR AN AUTHORITY FOR THE USE OF A
28 PROJECT OF THE AUTHORITY AND FIXING THE AMOUNT TO BE PAID FOR
29 THE CONTRACT.
30 (19) TO ENTER INTO CONTRACTS OF GROUP INSURANCE FOR THE
20010S0780B1186 - 15 -
1 BENEFIT OF ITS EMPLOYEES.
2 (20) TO SET UP A RETIREMENT OR PENSION FUND FOR ITS
3 EMPLOYEES, SIMILAR TO THAT EXISTING IN THE MUNICIPALITY WHERE
4 THE PRINCIPAL OFFICE OF THE PROJECT IS LOCATED.
5 (21) NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED
6 IN THIS CHAPTER, IF AUTHORIZED BY RESOLUTION OR ORDINANCE OF
7 THE LEGISLATIVE BODY OF THE PARENT MUNICIPALITY, TO
8 ADMINISTER, SUPERVISE AND ENFORCE AN EFFICIENT SYSTEM OF ON-
9 STREET PARKING REGULATION. THIS PARAGRAPH INCLUDES THE POWER:
10 (I) TO CONDUCT RESEARCH AND MAINTAIN DATA RELATED TO
11 ON-STREET PARKING ACTIVITIES;
12 (II) TO ISSUE PARKING TICKETS FOR ILLEGALLY PARKED
13 VEHICLES;
14 (III) TO COLLECT ON BEHALF OF A MUNICIPALITY RATES
15 AND OTHER CHARGES, INCLUDING FINES AND PENALTIES, FOR
16 UNCONTESTED ON-STREET PARKING VIOLATIONS;
17 (IV) TO BOOT OR TOW A VEHICLE WHICH IS ILLEGALLY
18 PARKED OR THE OWNER OF WHICH IS DELINQUENT IN PAYMENT OF
19 PREVIOUSLY ISSUED PARKING TICKETS; AND
20 (V) TO OWN OR LEASE PERSONAL PROPERTY USED IN
21 CONNECTION WITH THE EXERCISE OF ANY POWER PROVIDED IN
22 THIS PARAGRAPH.
23 THE EXERCISE BY THE AUTHORITY OF ANY POWER UNDER THIS
24 PARAGRAPH SHALL NOT BE CONSTRUED TO CONSTITUTE THE
25 PROSECUTION OF A SUMMARY OFFENSE UNDER 42 PA.C.S. CH. 13
26 (RELATING TO TRAFFIC COURTS).
27 (E) PROHIBITION.--
28 (1) THE AUTHORITY SHALL HAVE NO POWER TO PLEDGE THE
29 CREDIT OR TAXING POWER OF THE COMMONWEALTH OR A POLITICAL
30 SUBDIVISION.
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1 (2) AN OBLIGATION OF AN AUTHORITY SHALL NOT BE DEEMED TO
2 BE AN OBLIGATION OF THE COMMONWEALTH OR A POLITICAL
3 SUBDIVISION.
4 (3) NEITHER THE COMMONWEALTH NOR A POLITICAL SUBDIVISION
5 SHALL BE LIABLE FOR THE PAYMENT OF PRINCIPAL OR OF INTEREST
6 ON AN OBLIGATION OF AN AUTHORITY.
7 § 5506. BONDS.
8 (A) AUTHORIZATION.--
9 (1) A BOND MUST BE AUTHORIZED BY RESOLUTION OF THE
10 BOARD. THE RESOLUTION MUST SPECIFY ALL OF THE FOLLOWING:
11 (I) SERIES.
12 (II) DATE OF MATURITY NOT EXCEEDING 40 YEARS FROM
13 DATE OF ISSUE.
14 (III) INTEREST, NOT EXCEEDING 6% ANNUALLY, PAYABLE
15 SEMIANNUALLY. FOR THE PERIOD AFTER APRIL 30, 1970, AND
16 BEFORE MAY 3, 1971, THE RATE OF INTEREST MAY EXCEED 6% AS
17 DETERMINED BY THE CORPORATE AUTHORITIES AS NECESSARY TO
18 ISSUE AND SELL THE BOND; BUT NO BONDS MAY BE SOLD AT LESS
19 THAN 98% OF ITS PRINCIPAL AMOUNT PLUS INTEREST CHARGES.
20 (IV) DENOMINATION.
21 (V) FORM, EITHER COUPON OR FULLY REGISTERED, WITHOUT
22 COUPONS.
23 (VI) REGISTRATION, EXCHANGEABILITY AND
24 INTERCHANGEABILITY PRIVILEGES.
25 (VII) MEDIUM OF PAYMENT AND PLACE OF PAYMENT.
26 (VIII) TERMS OF REDEMPTION, NOT EXCEEDING 105% OF
27 THE PRINCIPAL AMOUNT OF THE BOND.
28 (IX) PRIORITIES IN THE REVENUES OR RECEIPTS OF THE
29 AUTHORITY.
30 (2) A BOND MUST BE SIGNED BY SUCH OFFICERS AS THE
20010S0780B1186 - 17 -
1 AUTHORITY DETERMINES. COUPON BONDS MUST HAVE ATTACHED
2 INTEREST COUPONS BEARING THE FACSIMILE SIGNATURE OF THE
3 TREASURER OF THE AUTHORITY, AS PRESCRIBED IN THE AUTHORIZING
4 RESOLUTION. A BOND MAY BE ISSUED AND DELIVERED
5 NOTWITHSTANDING THAT ONE OR MORE OF THE SIGNING OFFICERS OR
6 THE TREASURER HAS CEASED TO BE AN OFFICER WHEN THE BOND IS
7 ACTUALLY DELIVERED.
8 (3) A BOND MAY BE SOLD AT PUBLIC OR PRIVATE SALE FOR A
9 PRICE DETERMINED BY THE AUTHORITY. NO BOND MAY BE SOLD AT
10 LESS THAN 98% OF THE PRINCIPAL AMOUNT PLUS INTEREST CHARGES.
11 THE INTEREST COST TO MATURITY OF THE MONEY RECEIVED FOR A
12 BOND ISSUE MAY NOT EXCEED 6% ANNUALLY. FOR THE PERIOD AFTER
13 APRIL 30, 1970, AND BEFORE MAY 3, 1971, THE RATE OF INTEREST
14 MAY EXCEED 6% ANNUALLY AS DETERMINED BY THE CORPORATE
15 AUTHORITIES AS NECESSARY TO ISSUE AND SELL THE BOND.
16 (4) PENDING THE PREPARATION OF A DEFINITIVE BOND,
17 INTERIM RECEIPTS OR TEMPORARY BONDS, WITH OR WITHOUT COUPONS,
18 MAY BE ISSUED TO THE PURCHASER AND MAY CONTAIN TERMS AND
19 CONDITIONS AS THE AUTHORITY DETERMINES.
20 (B) PROVISIONS.--A RESOLUTION AUTHORIZING BONDS MAY CONTAIN
21 PROVISIONS, WHICH SHALL BE PART OF THE CONTRACT WITH THE BOND
22 HOLDER, AS TO THE FOLLOWING:
23 (1) PLEDGING THE FULL FAITH AND CREDIT OF THE AUTHORITY
24 FOR THE OBLIGATION OR RESTRICTING THE FULL FAITH AND CREDIT
25 OF THE AUTHORITY TO ALL OR ANY OF THE REVENUE OF THE
26 AUTHORITY, FROM ALL OR ANY PROJECTS OR PROPERTIES.
27 (2) THE CONSTRUCTION, IMPROVEMENT, OPERATION, EXTENSION,
28 ENLARGEMENT, MAINTENANCE AND REPAIR OF THE PROJECT AND THE
29 DUTIES OF THE AUTHORITY WITH REFERENCE TO THESE MATTERS.
30 (3) TERMS AND PROVISIONS OF THE BOND.
20010S0780B1186 - 18 -
1 (4) LIMITATIONS ON THE PURPOSES TO WHICH THE PROCEEDS OF
2 A BOND THEN OR THEREAFTER ISSUED OR OF A LOAN OR GRANT BY THE
3 UNITED STATES MAY BE APPLIED.
4 (5) RATE OF TOLLS AND OTHER CHARGES FOR USE OF THE
5 FACILITIES OF OR FOR THE SERVICES RENDERED BY THE AUTHORITY.
6 (6) SETTING ASIDE OF RESERVES AND SINKING FUNDS AND THE
7 REGULATION AND DISPOSITION OF RESERVES AND SINKING FUNDS.
8 (7) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS.
9 (8) TERMS AND PROVISIONS OF ANY DEED OF TRUST OR
10 INDENTURE SECURING THE BOND OR UNDER WHICH ANY DEED OF TRUST
11 OR INDENTURE MAY BE ISSUED.
12 (9) OTHER ADDITIONAL AGREEMENTS WITH THE HOLDER OF THE
13 BOND.
14 (C) DEEDS OF TRUST.--AN AUTHORITY MAY ENTER INTO ANY DEED OF
15 TRUST, INDENTURE OR OTHER AGREEMENT WITH ANY BANK OR TRUST
16 COMPANY OR OTHER PERSON IN THE UNITED STATES HAVING POWER TO
17 ENTER INTO SUCH AN ARRANGEMENT, INCLUDING ANY FEDERAL AGENCY, AS
18 SECURITY FOR A BOND, AND MAY ASSIGN AND PLEDGE ALL OR ANY OF THE
19 REVENUES OR RECEIPTS OF THE AUTHORITY UNDER SUCH DEED, INDENTURE
20 OR AGREEMENT. THE DEED OF TRUST, INDENTURE OR OTHER AGREEMENT
21 MAY CONTAIN PROVISIONS AS MAY BE CUSTOMARY IN SUCH INSTRUMENTS
22 OR AS THE AUTHORITY MAY AUTHORIZE, INCLUDING PROVISIONS AS TO:
23 (1) CONSTRUCTION, IMPROVEMENT, OPERATION, MAINTENANCE
24 AND REPAIR OF A PROJECT AND THE DUTIES OF THE AUTHORITY WITH
25 REFERENCE TO THESE MATTERS;
26 (2) APPLICATION OF FUNDS AND THE SAFEGUARDING OF FUNDS
27 ON HAND OR ON DEPOSIT;
28 (3) RIGHTS AND REMEDIES OF TRUSTEE AND BONDHOLDER,
29 INCLUDING RESTRICTIONS UPON THE INDIVIDUAL RIGHT OF ACTION OF
30 A BONDHOLDER; AND
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1 (4) TERMS AND PROVISIONS OF THE BOND OR THE RESOLUTION
2 AUTHORIZING THE ISSUANCE OF THE BOND.
3 (D) NEGOTIABILITY.--A BOND SHALL HAVE ALL THE QUALITIES OF
4 NEGOTIABLE INSTRUMENTS UNDER 13 PA.C.S. DIV. 3 (RELATING TO
5 NEGOTIABLE INSTRUMENTS).
6 (E) REVENUE AND RECEIPTS.--MONEY COLLECTED OR RECEIVED BY
7 THE AUTHORITY ON BEHALF OF A MUNICIPALITY UNDER SECTION
8 5505(D)(21) (RELATING TO PURPOSES AND POWERS) SHALL NOT BE
9 DEEMED TO CONSTITUTE REVENUES AND RECEIPTS OF THE AUTHORITY
10 UNDER THIS CHAPTER OR BE SUBJECT TO ANY DEBT OR OBLIGATION OF
11 THE AUTHORITY.
12 § 5507. BONDHOLDERS.
13 (A) RIGHTS AND REMEDIES.--THE RIGHTS AND THE REMEDIES
14 CONFERRED UPON BONDHOLDERS UNDER THIS SECTION SHALL BE IN
15 ADDITION TO AND NOT IN LIMITATION OF RIGHTS AND REMEDIES
16 LAWFULLY GRANTED THEM BY THE RESOLUTION FOR THE BOND ISSUE OR BY
17 ANY DEED OF TRUST, INDENTURE OR OTHER AGREEMENT UNDER WHICH THE
18 BOND IS ISSUED.
19 (B) TRUSTEE.--
20 (1) THE HOLDERS OF 25% OF THE AGGREGATE PRINCIPAL AMOUNT
21 OF OUTSTANDING BONDS MAY APPOINT A TRUSTEE TO REPRESENT THE
22 BONDHOLDERS FOR PURPOSES OF THIS CHAPTER IF ANY OF THE
23 FOLLOWING APPLY:
24 (I) THE AUTHORITY DEFAULTS IN THE PAYMENT OF
25 PRINCIPAL OR INTEREST ON A BOND, AT MATURITY OR UPON CALL
26 FOR REDEMPTION, AND THE DEFAULT CONTINUES FOR 30 DAYS.
27 (II) THE AUTHORITY FAILS TO COMPLY WITH THIS
28 CHAPTER.
29 (III) THE AUTHORITY DEFAULTS IN AN AGREEMENT MADE
30 WITH THE BONDHOLDERS.
20010S0780B1186 - 20 -
1 (2) THE TRUSTEE MUST BE APPOINTED BY INSTRUMENT:
2 (I) FILED IN THE OFFICE OF THE RECORDER OF DEEDS OF
3 THE COUNTY WHERE THE AUTHORITY IS LOCATED; AND
4 (II) PROVED OR ACKNOWLEDGED IN THE SAME MANNER AS A
5 DEED TO BE RECORDED.
6 (3) A TRUSTEE UNDER THIS SUBSECTION AND A TRUSTEE UNDER
7 ANY DEED OF TRUST, INDENTURE OR OTHER AGREEMENT MAY AND, UPON
8 WRITTEN REQUEST OF THE HOLDERS OF 25% OF THE AGGREGATE
9 PRINCIPAL AMOUNT OF OUTSTANDING BONDS OR SUCH OTHER
10 PERCENTAGE SPECIFIED IN THE DEED OF TRUST, INDENTURE OR OTHER
11 AGREEMENT, SHALL, IN THE TRUSTEE'S NAME, DO ANY OF THE
12 FOLLOWING:
13 (I) BY ACTION AT LAW OR IN EQUITY, ENFORCE RIGHTS OF
14 THE BONDHOLDERS. THIS SUBPARAGRAPH INCLUDES THE RIGHT TO
15 REQUIRE THE AUTHORITY TO:
16 (A) COLLECT RATES, RENTALS OR OTHER CHARGES
17 ADEQUATE TO CARRY OUT ANY AGREEMENT AS TO OR PLEDGE
18 OF REVENUES OR RECEIPTS OF THE AUTHORITY;
19 (B) CARRY OUT ANY OTHER AGREEMENTS WITH OR FOR
20 THE BENEFIT OF BONDHOLDERS; AND
21 (C) PERFORM ITS AND THEIR DUTIES UNDER THIS
22 CHAPTER.
23 (II) BRING SUIT UPON THE BOND.
24 (III) BY ACTION IN EQUITY REQUIRE THE AUTHORITY TO
25 ACCOUNT AS IF IT WERE THE TRUSTEE OF AN EXPRESS TRUST FOR
26 THE BONDHOLDERS.
27 (IV) ENJOIN AN ACTION WHICH MAY BE UNLAWFUL OR IN
28 VIOLATION OF THE RIGHTS OF THE BONDHOLDERS.
29 (V) BY NOTICE IN WRITING TO THE AUTHORITY, DECLARE
30 ALL BONDS DUE AND PAYABLE AND, IF ALL DEFAULTS ARE MADE
20010S0780B1186 - 21 -
1 GOOD, WITH THE CONSENT OF THE HOLDERS OF 25% OF THE
2 PRINCIPAL AMOUNT OF OUTSTANDING BONDS, OR SUCH OTHER
3 PERCENTAGE SPECIFIED IN THE DEED OF TRUST, INDENTURE OR
4 OTHER AGREEMENT, TO ANNUL SUCH DECLARATION AND ITS
5 CONSEQUENCES.
6 (4) A TRUSTEE UNDER THIS SUBSECTION OR A TRUSTEE UNDER
7 ANY DEED OF TRUST, INDENTURE OR OTHER AGREEMENT, WHETHER OR
8 NOT ALL BONDS HAVE BEEN DECLARED DUE AND PAYABLE, SHALL BE
9 ENTITLED TO THE APPOINTMENT OF A RECEIVER.
10 (5) A RECEIVER UNDER PARAGRAPH (4):
11 (I) MAY ENTER AND TAKE POSSESSION OF A FACILITY OF
12 THE AUTHORITY OR ANY PART OF A FACILITY THE REVENUES OR
13 RECEIPTS FROM WHICH ARE OR MAY BE APPLICABLE TO THE
14 PAYMENT OF THE BONDS IN DEFAULT;
15 (II) MAY OPERATE AND MAINTAIN THE FACILITY OR PART;
16 (III) MAY COLLECT AND RECEIVE ALL RENTALS AND OTHER
17 REVENUES ARISING FROM THE FACILITY AFTER ENTRY AND
18 POSSESSION, IN THE SAME MANNER AS THE AUTHORITY OR THE
19 BOARD MIGHT DO; AND
20 (IV) SHALL DEPOSIT MONEY COLLECTED UNDER
21 SUBPARAGRAPH (III) IN A SEPARATE ACCOUNT AND APPLY THE
22 MONEY AS THE COURT DIRECTS.
23 (6) NOTHING IN THIS CHAPTER AUTHORIZES A RECEIVER
24 APPOINTED UNDER PARAGRAPH (4) TO SELL, ASSIGN, MORTGAGE OR
25 OTHERWISE DISPOSE OF ASSETS OF WHATEVER KIND AND CHARACTER
26 BELONGING TO THE AUTHORITY. IT IS THE INTENTION OF THIS
27 CHAPTER TO LIMIT THE POWERS OF THE RECEIVER TO THE OPERATION
28 AND MAINTENANCE OF THE FACILITIES OF THE AUTHORITY AS THE
29 COURT DIRECTS. NO BONDHOLDER OR TRUSTEE SHALL HAVE THE RIGHT
30 IN AN ACTION AT LAW OR IN EQUITY TO COMPEL A RECEIVER, NOR
20010S0780B1186 - 22 -
1 SHALL A RECEIVER BE AUTHORIZED OR A COURT EMPOWERED TO DIRECT
2 THE RECEIVER, TO SELL, ASSIGN, MORTGAGE OR OTHERWISE DISPOSE
3 OF ASSETS OF WHATEVER KIND OR CHARACTER BELONGING TO THE
4 AUTHORITY.
5 (7) THE TRUSTEE HAS ALL POWERS NECESSARY OR APPROPRIATE
6 FOR THE EXERCISE OF FUNCTIONS SPECIFICALLY SET FORTH IN THIS
7 SUBSECTION OR INCIDENTAL TO THE GENERAL REPRESENTATION OF THE
8 BONDHOLDERS IN THE ENFORCEMENT AND PROTECTION OF THEIR
9 RIGHTS.
10 (C) JURISDICTION.--THE COURT OF COMMON PLEAS OF THE JUDICIAL
11 DISTRICT IN WHICH THE AUTHORITY IS LOCATED SHALL HAVE
12 JURISDICTION OF AN ACTION BY THE TRUSTEE ON BEHALF OF THE
13 BONDHOLDERS.
14 (D) COSTS AND FEES.--IN AN ACTION BY THE TRUSTEE THE COURT
15 COSTS, ATTORNEY FEES AND EXPENSES OF THE TRUSTEE AND OF THE
16 RECEIVER AND ALL COSTS AND DISBURSEMENTS ALLOWED BY THE COURT
17 SHALL BE A FIRST CHARGE ON REVENUE AND RECEIPTS DERIVED FROM THE
18 FACILITIES OF THE AUTHORITY, THE REVENUE OR RECEIPTS FROM WHICH
19 ARE OR MAY BE APPLICABLE TO THE PAYMENT OF THE BONDS SO IN
20 DEFAULT.
21 § 5508. GOVERNING BODY.
22 (A) SCOPE.--THIS SECTION DOES NOT APPLY TO CITIES OF THE
23 FIRST CLASS.
24 (B) BOARD.--
25 (1) THE POWERS OF AN AUTHORITY SHALL BE EXERCISED BY A
26 BOARD COMPOSED OF FIVE MEMBERS. THE MAJORITY OF THE MEMBERS
27 MUST BE RESIDENTS OF THE MUNICIPALITY WHERE THE AUTHORITY IS
28 LOCATED. ALL MEMBERS MUST BE RESIDENTS OF THE COUNTY IN WHICH
29 THE MUNICIPALITY IS LOCATED.
30 (2) THE MAYOR OF THE CITY, THE PRESIDENT OF THE BOROUGH
20010S0780B1186 - 23 -
1 COUNCIL, THE PRESIDENT OF THE BOARD OF TOWNSHIP
2 COMMISSIONERS, AS APPLICABLE, SHALL APPOINT THE MEMBERS OF
3 THE BOARD.
4 (3) BEGINNING ON JUNE 1, 1947:
5 (I) ONE MEMBER SHALL SERVE FOR ONE YEAR;
6 (II) ONE MEMBER SHALL SERVE FOR TWO YEARS;
7 (III) ONE MEMBER SHALL SERVE FOR THREE YEARS;
8 (IV) ONE MEMBER SHALL SERVE FOR FOUR YEARS; AND
9 (IV) ONE MEMBER SHALL SERVE FOR FIVE YEARS.
10 (4) AFTER INITIAL TERMS, THE APPOINTING OFFICER SHALL,
11 NOT SOONER THAN 60 DAYS NOR LATER THAN 30 DAYS PRIOR TO JUNE
12 1 IN EACH YEAR IN WHICH A VACANCY OCCURS, APPOINT A MEMBER OF
13 THE BOARD FOR A TERM OF FIVE YEARS TO FILL THE VACANCY.
14 (5) A VACANCY FOR AN UNEXPIRED TERM WHICH OCCURS MORE
15 THAN 60 DAYS BEFORE THE END OF A TERM SHALL BE PROMPTLY
16 FILLED BY APPOINTMENT BY APPOINTING AUTHORITY.
17 (6) MEMBERS OF THE BOARD MAY BE REMOVED AT THE WILL OF
18 THE APPOINTING AUTHORITY.
19 (C) SUCCESSION.--A MEMBER SHALL HOLD OFFICE UNTIL A
20 SUCCESSOR HAS BEEN APPOINTED. A MEMBER MAY SUCCEED HIMSELF OR
21 HERSELF.
22 (D) COMPENSATION.--A MEMBER SHALL RECEIVE NO COMPENSATION
23 FOR SERVICES BUT SHALL BE ENTITLED TO THE NECESSARY EXPENSES,
24 INCLUDING TRAVELING EXPENSES, INCURRED IN THE DISCHARGE OF
25 DUTIES.
26 (E) OFFICERS.--THE MEMBERS OF THE BOARD SHALL SELECT FROM
27 AMONG THEMSELVES A CHAIR, A VICE-CHAIR AND OTHER OFFICERS AS THE
28 BOARD MAY DETERMINE. THE BOARD MAY EMPLOY A SECRETARY, AN
29 EXECUTIVE DIRECTOR, ITS OWN COUNSEL AND LEGAL STAFF, AND
30 TECHNICAL EXPERTS AND OTHER AGENTS AND EMPLOYEES PERMANENT OR
20010S0780B1186 - 24 -
1 TEMPORARY AS IT REQUIRES AND MAY DETERMINE THE QUALIFICATIONS
2 AND FIX THE COMPENSATION OF SUCH INDIVIDUALS.
3 (F) QUORUM.--THREE MEMBERS OF THE BOARD CONSTITUTE A QUORUM
4 FOR MEETINGS.
5 (G) LIABILITY.--A MEMBER OF THE BOARD SHALL NOT BE LIABLE
6 PERSONALLY ON A BOND OR OTHER OBLIGATIONS OF THE AUTHORITY.
7 RIGHTS OF CREDITORS SHALL BE SOLELY AGAINST THE AUTHORITY.
8 (H) DELEGATION.--THE BOARD MAY DELEGATE TO AN AGENT OR
9 EMPLOYEE POWERS AS IT DEEMS NECESSARY TO CARRY OUT THE PURPOSES
10 OF THIS CHAPTER, SUBJECT TO THE SUPERVISION AND CONTROL OF THE
11 BOARD.
12 (I) MANAGEMENT.--THE BOARD HAS AUTHORITY TO MANAGE THE
13 PROPERTY AND BUSINESS OF THE AUTHORITY AND TO PRESCRIBE, AMEND
14 AND REPEAL BYLAWS, RULES AND REGULATIONS GOVERNING THE MANNER IN
15 WHICH THE BUSINESS OF THE AUTHORITY MAY BE CONDUCTED AND IN
16 WHICH THE POWERS GRANTED TO THE AUTHORITY MAY BE EXERCISED.
17 § 5508.1. SPECIAL PROVISIONS FOR AUTHORITIES IN CITIES OF THE
18 FIRST CLASS.
19 (A) SCOPE.--THIS SECTION APPLIES ONLY TO CITIES OF THE FIRST
20 CLASS.
21 (B) INITIAL.--BEGINNING ON THE EFFECTIVE DATE OF THIS
22 CHAPTER, THE POWERS OF EACH AUTHORITY SHALL BE EXERCISED BY A
23 BOARD COMPOSED OF NOT LESS THAN FIVE NOR MORE THAN 11 MEMBERS.
24 (C) SUBSEQUENT.--BEGINNING JUNE 1, 2006, THE BOARD SHALL BE
25 COMPOSED OF SIX MEMBERS.
26 (D) RESIDENCE.--IN ALL CASES, BOARD MEMBERS MUST BE
27 RESIDENTS OF THE CITY.
28 (E) APPOINTMENT.--
29 (1) THE GOVERNOR SHALL APPOINT SIX ADDITIONAL MEMBERS OF
30 THE BOARD.
20010S0780B1186 - 25 -
1 (2) GUBERNATORIAL APPOINTMENTS SHALL BE MADE AS FOLLOWS:
2 TWO UPON THE GOVERNOR'S OWN DISCRETION, TWO FROM A LIST OF AT
3 LEAST THREE NOMINEES PREPARED AND SUBMITTED TO THE GOVERNOR
4 BY THE PRESIDENT PRO TEMPORE OF THE SENATE AND TWO FROM A
5 LIST OF AT LEAST THREE NOMINEES PREPARED AND SUBMITTED TO THE
6 GOVERNOR BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.
7 (3) THE GOVERNOR SHALL SELECT MEMBERS FROM THE LISTS
8 PROVIDED FROM THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE
9 SPEAKER OF THE HOUSE OF REPRESENTATIVES WITHIN 30 DAYS OF
10 RECEIPT OF EACH LIST OR MAY REQUEST ONE SUBSTITUTE LIST OF
11 NOMINEES FROM EITHER OR BOTH THE PRESIDENT PRO TEMPORE OF THE
12 SENATE AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES. IF A
13 SUBSTITUTE LIST REQUESTED BY THE GOVERNOR IS NOT SUBMITTED
14 WITHIN 30 DAYS OF THE REQUEST, THE GOVERNOR MAY, AT HIS
15 DISCRETION, APPOINT BOARD MEMBERS TO POSITIONS FOR WHICH
16 SUBSTITUTE LISTS OF NOMINEES WERE NOT SUBMITTED.
17 (4) IN THE EVENT THAT THE GOVERNOR FAILS TO SELECT A
18 MEMBER FROM AN ORIGINAL LIST OF NOMINEES WITHIN 30 DAYS OF
19 THE RECEIPT OF THE LIST AND FAILS TO REQUEST A SUBSTITUTE
20 LIST OR SHOULD THE GOVERNOR FAIL TO SELECT A MEMBER FROM A
21 SUBSTITUTE LIST WITHIN 30 DAYS OF RECEIPT OF THE LIST, THE
22 LEGISLATIVE PRESIDING OFFICER WHO PREPARED THE LIST MAY
23 APPOINT MEMBERS TO SERVE ON THE BOARD.
24 (F) TERMS.--
25 (1) INITIAL APPOINTMENTS SHALL BE FOR A TERM BEGINNING
26 ON THE EFFECTIVE DATE OF THIS CHAPTER AND EXPIRING JUNE 1,
27 2002.
28 (2) SUBSEQUENT TO THE INITIAL TERMS, THE TERMS OF THE
29 MEMBERS SHALL BE STAGGERED. FOR TERMS BEGINNING JUNE 1, 2002:
30 (I) MEMBERS APPOINTED FROM THE LIST OF NOMINEES
20010S0780B1186 - 26 -
1 PREPARED BY THE PRESIDENT PRO TEMPORE OF THE SENATE SHALL
2 SERVE EIGHT-YEAR TERMS, ENDING JUNE 1, 2010;
3 (II) MEMBERS APPOINTED FROM THE LIST OF NOMINEES
4 PREPARED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
5 SHALL SERVE NINE-YEAR TERMS, ENDING JUNE 1, 2011; AND
6 (III) MEMBERS APPOINTED BY THE GOVERNOR AT HIS OWN
7 DISCRETION SHALL SERVE TEN-YEAR TERMS, ENDING JUNE 1,
8 2012.
9 (3) AFTER THE INITIAL TERMS UNDER PARAGRAPH (2), THE
10 GOVERNOR SHALL, NOT SOONER THAN 60 DAYS NOR LATER THAN 30
11 DAYS PRIOR TO JUNE 1 IN EACH YEAR IN WHICH VACANCIES ARE DUE
12 TO OCCUR, APPOINT MEMBERS OF THE BOARD FOR TERMS OF TEN YEARS
13 TO SUCCEED THE MEMBERS WHOSE TERMS EXPIRE ON THE FIRST DAY OF
14 JUNE NEXT SUCCEEDING, IN ACCORDANCE WITH THE APPOINTMENT
15 PROCEDURES PROVIDED IN SUBSECTION (E). IF THE VACANCIES ARE
16 FOR MEMBERS SELECTED FROM A LIST SUBMITTED BY A LEGISLATIVE
17 PRESIDING OFFICER, THE GOVERNOR SHALL REQUEST A LIST OF
18 NOMINEES FROM THAT OFFICER NOT LATER THAN 90 DAYS PRIOR TO
19 THE DATE THE VACANCIES ARE SCHEDULED TO OCCUR.
20 (G) REMOVAL.--EXCEPT AS AUTHORIZED IN THIS SUBSECTION, NO
21 BOARD MEMBER MAY BE REMOVED FROM OFFICE DURING A TERM. THE
22 GOVERNOR MAY, UPON CLEAR AND CONVINCING EVIDENCE OF MISFEASANCE
23 OR MALFEASANCE IN OFFICE, REMOVE A BOARD MEMBER PRIOR TO THE
24 EXPIRATION OF THE TERM. THE GOVERNOR SHALL THEN PROVIDE THE
25 BOARD MEMBER SO REMOVED WITH A WRITTEN STATEMENT OF THE REASONS
26 FOR REMOVAL.
27 (H) VACANCIES.--IF A VACANCY OCCURS PRIOR TO THE COMPLETION
28 OF THE TERM OF OFFICE OF A MEMBER APPOINTED FROM LISTS OF
29 NOMINEES SUBMITTED BY A LEGISLATIVE PRESIDING OFFICER, THE
30 GOVERNOR SHALL REQUEST A LIST OF NOMINEES FROM THAT OFFICER
20010S0780B1186 - 27 -
1 WITHIN 30 DAYS OF THE OCCURRENCE OF THE VACANCY AND PROCEED TO
2 MAKE THE VACANCY APPOINTMENT PURSUANT TO THE PROCEDURES OF THIS
3 SECTION. ALL VACANCY APPOINTMENTS SHALL BE FOR THE BALANCE OF
4 THE UNEXPIRED TERM.
5 (I) CONTINUATION.--THE MEMBERS OF THE AUTHORITY IN EXISTENCE
6 ON THE EFFECTIVE DATE OF THIS CHAPTER SHALL CONTINUE IN OFFICE
7 UNTIL THEIR TERMS OF OFFICE EXPIRE IN ACCORDANCE WITH THE ACT
8 UNDER WHICH THE MEMBERS WERE APPOINTED. AT THE EXPIRATION OF
9 THAT TERM, THE POSITION ON THE BOARD SHALL BE ABOLISHED. THE
10 TERM OF A BOARD MEMBER SERVING ON THE EFFECTIVE DATE OF THIS
11 CHAPTER SHALL NOT EXTEND BEYOND JUNE 1, 2006. IF A VACANCY
12 OCCURS IN ANY OF THE BOARD POSITIONS OF INCUMBENTS DESCRIBED IN
13 THIS SUBSECTION PRIOR TO THE EXPIRATION OF THE TERM, THE VACANCY
14 SHALL NOT BE FILLED; AND THE POSITION AT THAT TIME SHALL BE
15 ABOLISHED.
16 (J) SUCCESSION.--EXCEPT AS PROVIDED IN SUBSECTION (I),
17 MEMBERS SHALL HOLD OFFICE UNTIL THEIR SUCCESSORS HAVE BEEN
18 APPOINTED AND QUALIFIED, AND THEY MAY SUCCEED THEMSELVES.
19 (K) COMPENSATION.--THE CHAIR SELECTED UNDER SUBSECTION (L)
20 SHALL RECEIVE $50,000 PER ANNUM, AND THE OTHER MEMBERS SHALL
21 RECEIVE $200 PER MEETING FOR THEIR SERVICES. BOARD MEMBERS SHALL
22 BE ENTITLED TO NECESSARY EXPENSES, INCLUDING TRAVEL EXPENSES,
23 INCURRED IN THE DISCHARGE OF DUTIES.
24 (L) OFFICERS AND STAFF.--WHEN THE SIX ADDITIONAL MEMBERS
25 HAVE BEEN APPOINTED AND QUALIFIED PURSUANT TO THIS SECTION, THE
26 MEMBERS OF THE BOARD SHALL SELECT FROM AMONG THEMSELVES A CHAIR,
27 VICE-CHAIR AND SUCH OTHER OFFICERS AS THE BOARD MAY DETERMINE.
28 THE BOARD MAY EMPLOY A SECRETARY, AN EXECUTIVE DIRECTOR, ITS OWN
29 COUNSEL AND LEGAL STAFF AND SUCH TECHNICAL EXPERTS AND SUCH
30 OTHER AGENTS AND EMPLOYEES PERMANENT OR TEMPORARY AS IT
20010S0780B1186 - 28 -
1 REQUIRES. THE BOARD MAY DETERMINE THE QUALIFICATIONS AND FIX THE
2 COMPENSATION OF THESE INDIVIDUALS.
3 (M) QUORUM.--
4 (1) SIX MEMBERS OF THE BOARD CONSTITUTE A QUORUM FOR ITS
5 MEETINGS UNTIL THE COMPOSITION OF THE BOARD IS REDUCED TO
6 NINE MEMBERS.
7 (2) AT THE TIME DURING WHICH THE BOARD IS COMPOSED OF
8 MORE THAN SEVEN MEMBERS BUT FEWER THAN TEN MEMBERS, THE
9 QUORUM FOR ITS MEETINGS IS FIVE MEMBERS.
10 (3) ONCE THE BOARD IS REDUCED TO SEVEN MEMBERS AND
11 THEREAFTER, A QUORUM FOR ITS MEETINGS IS FOUR MEMBERS.
12 (4) UNTIL THE SIX ADDITIONAL BOARD MEMBERS HAVE BEEN
13 APPOINTED BY THE GOVERNOR, THE QUORUM TO CONDUCT BUSINESS IS
14 THREE MEMBERS.
15 (M.1) LIABILITY.--MEMBERS OF THE BOARD SHALL NOT BE LIABLE
16 PERSONALLY ON THE BONDS OR OTHER OBLIGATIONS OF THE AUTHORITY,
17 AND THE RIGHTS OF CREDITORS SHALL BE SOLELY AGAINST SUCH
18 AUTHORITY.
19 (N) DELEGATION.--THE BOARD MAY DELEGATE TO AN AGENT OR
20 EMPLOYEE POWERS IT DEEMS NECESSARY TO CARRY OUT THE PURPOSES OF
21 THIS CHAPTER, SUBJECT TO THE SUPERVISION AND CONTROL OF THE
22 BOARD.
23 (O) MANAGEMENT.--THE BOARD HAS AUTHORITY TO MANAGE THE
24 PROPERTIES AND BUSINESS OF THE AUTHORITY AND TO PRESCRIBE, AMEND
25 AND REPEAL BYLAWS, RULES AND REGULATIONS GOVERNING THE MANNER IN
26 WHICH THE BUSINESS OF THE AUTHORITY MAY BE CONDUCTED AND IN
27 WHICH THE POWERS GRANTED TO IT MAY BE EXERCISED AND EMBODIED.
28 (P) PROHIBITION.--
29 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), AN AUTHORITY
30 MAY NOT ENTER INTO ANY CONTRACT WITH ANY OTHER PARTY OR
20010S0780B1186 - 29 -
1 PROVIDE ANY ADDITIONAL EMPLOYMENT PROTECTION, INCLUDING CIVIL
2 SERVICE, TO ANY EMPLOYEE OR CLASSIFICATION OF EMPLOYEE DURING
3 THE MORATORIUM PERIOD PRESCRIBED BY PARAGRAPH (3).
4 (2) THE MORATORIUM REQUIRED BY THIS SUBSECTION SHALL NOT
5 APPLY TO THE FOLLOWING:
6 (I) CONTRACTS OR LEASES WHICH ARE SUBJECT TO
7 COMPETITIVE BIDDING PURSUANT TO SECTION 5511 (RELATING TO
8 COMPETITION IN AWARD OF CONTRACTS).
9 (II) CONTRACTS OR LEASES OF NOT MORE THAN 90 DAYS'
10 DURATION.
11 (III) CONTRACTS OR LEASES WHICH MUST BE EXECUTED
12 WITHIN THE MORATORIUM PERIOD IN ORDER TO AVOID A SERIOUS
13 IMPAIRMENT TO THE FUNCTIONING OF THE AUTHORITY IF SUCH
14 CONTRACTS ARE EXECUTED WITH THE APPROVAL OF THE SECRETARY
15 OF GENERAL SERVICES.
16 (3) THE MORATORIUM PERIOD SHALL COMMENCE ON THE
17 EFFECTIVE DATE OF THIS SECTION AND SHALL TERMINATE UPON THE
18 SELECTION OF A CHAIR AFTER EACH OF THE ADDITIONAL MEMBERS HAS
19 BEEN APPOINTED AND QUALIFIED.
20 (Q) FUNDING.--DURING ITS FISCAL YEAR BEGINNING IN 2001, THE
21 AUTHORITY SHALL TRANSFER TO THE GENERAL FUND OF A SCHOOL
22 DISTRICT OF THE FIRST CLASS COTERMINOUS WITH THE PARENT
23 MUNICIPALITY THAT PORTION OF ITS RETAINED EARNINGS, NOT TO
24 EXCEED $45,000,000, WHICH WILL NOT JEOPARDIZE THE AUTHORITY'S
25 ABILITY TO MEET DEBT SERVICE PAYMENTS OR TO RETIRE OUTSTANDING
26 BONDS. IN SUBSEQUENT YEARS, THE BOARD SHALL TRANSFER THE MAXIMUM
27 AMOUNT IT DEEMS AVAILABLE FOR SUCH PURPOSE. THE PROVISIONS OF
28 SECTION 696(H)(1) OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14),
29 KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, SHALL NOT APPLY TO
30 AMOUNTS TRANSFERRED TO THE SCHOOL DISTRICT OF THE FIRST CLASS
20010S0780B1186 - 30 -
1 UNDER THIS SUBSECTION.
2 (R) DEFINITION.--AS USED IN THIS SECTION, THE TERM
3 "LEGISLATIVE PRESIDING OFFICER" MEANS:
4 (1) THE PRESIDENT PRO TEMPORE OF THE SENATE; OR
5 (2) THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.
6 § 5509. ACQUISITION OF LANDS.
7 (A) AUTHORIZATION.--
8 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), THE AUTHORITY
9 HAS THE POWER TO ACQUIRE, BY PURCHASE OR EMINENT DOMAIN
10 PROCEEDINGS, EITHER THE FEE OR THE RIGHTS, TITLE, INTEREST OR
11 EASEMENT IN SUCH LANDS AS THE AUTHORITY DEEMS NECESSARY FOR
12 ANY OF THE PURPOSES OF THIS CHAPTER.
13 (2) THE RIGHT OF EMINENT DOMAIN DOES NOT APPLY TO ANY OF
14 THE FOLLOWING:
15 (I) PROPERTY DEVOTED TO A PUBLIC USE.
16 (II) PROPERTY OF A PUBLIC SERVICE COMPANY.
17 (III) PROPERTY USED FOR BURIAL PURPOSES.
18 (IV) A PLACE OF PUBLIC WORSHIP.
19 (IV) PROPERTY WHICH, ON JUNE 5, 1947, WITH RESPECT
20 TO THE APPROPRIATE MUNICIPALITY, WAS USED AS A FACILITY
21 FOR THE PARKING OF MOTOR VEHICLES AS LONG AS:
22 (A) THE PROPERTY IS CONTINUOUSLY SO USED; AND
23 (B) THE OPERATION OF THE FACILITY COMPLIES WITH
24 PARKING AND TRAFFIC ORDINANCES OF THE MUNICIPALITY.
25 (B) EXERCISE.--
26 (1) THE RIGHT OF EMINENT DOMAIN SHALL BE EXERCISED BY
27 THE AUTHORITY IN THE MANNER PROVIDED BY LAW FOR THE EXERCISE
28 OF SUCH RIGHT BY THE PARENT MUNICIPALITY.
29 (2) VIEWERS MAY TAKE INTO CONSIDERATION AND MAY ASSESS
30 DAMAGES FOR EXPENSES INCURRED FOR THE REMOVAL OF FIXTURES,
20010S0780B1186 - 31 -
1 EQUIPMENT AND MERCHANDISE.
2 (3) THE RIGHT OF EMINENT DOMAIN UNDER THIS SECTION MAY
3 BE EXERCISED ONLY WITHIN THE MUNICIPALITY IN WHICH THE
4 AUTHORITY IS LOCATED.
5 (C) PRIORITY.--COURT PROCEEDINGS NECESSARY TO ACQUIRE
6 PROPERTY OR PROPERTY RIGHTS, FOR PURPOSES OF THIS CHAPTER, SHALL
7 TAKE PRECEDENCE OVER ALL CAUSES NOT INVOLVING THE PUBLIC
8 INTEREST IN ALL COURTS SO THAT THE PROVISION OF PARKING
9 FACILITIES MAY BE EXPEDITED.
10 § 5510. MONEY OF AUTHORITY.
11 (A) TREASURER.--
12 (1) EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, ALL
13 MONEY OF AN AUTHORITY, FROM WHATEVER SOURCE DERIVED, SHALL BE
14 PAID TO THE TREASURER OF THE AUTHORITY.
15 (2) THE MONEY SHALL BE DEPOSITED IN THE FIRST INSTANCE
16 BY THE TREASURER AT THE DIRECTION OF THE AUTHORITY:
17 (I) IN ONE OR MORE BANKS OR BANK AND TRUST COMPANIES
18 IN ONE OR MORE SPECIAL ACCOUNTS; OR
19 (II) UNDER SAVINGS CONTRACTS IN SAVINGS ASSOCIATIONS
20 IN ONE OR MORE SPECIAL ACCOUNTS.
21 (3) EACH SPECIAL ACCOUNT UNDER PARAGRAPH (2), TO THE
22 EXTENT THE ACCOUNT IS NOT INSURED, SHALL BE CONTINUOUSLY
23 SECURED BY A PLEDGE OF DIRECT OBLIGATIONS OF THE UNITED
24 STATES OF AMERICA, OF THE COMMONWEALTH OR OF THE PARENT
25 MUNICIPALITY, HAVING AN AGGREGATE MARKET VALUE, EXCLUSIVE OF
26 ACCRUED INTEREST AT ALL TIMES, AT LEAST EQUAL TO THE BALANCE
27 ON DEPOSIT IN THE ACCOUNT. SUCH SECURITIES SHALL EITHER BE
28 DEPOSITED WITH THE TREASURER OR BE HELD BY A TRUSTEE OR AGENT
29 SATISFACTORY TO THE AUTHORITY. ALL BANKS, BANK AND TRUST
30 COMPANIES AND SAVINGS ASSOCIATIONS ARE AUTHORIZED TO GIVE
20010S0780B1186 - 32 -
1 SUCH SECURITY FOR SUCH DEPOSITS. THE MONEY IN THE SPECIAL
2 ACCOUNTS SHALL BE PAID OUT ON THE WARRANT OR OTHER ORDER OF
3 THE CHAIR OF THE AUTHORITY OR OF SUCH OTHER PERSON THE
4 AUTHORITY AUTHORIZES TO EXECUTE THE WARRANTS OR ORDERS.
5 (4) IN THE CASE OF MONEY COLLECTED OR RECEIVED BY THE
6 AUTHORITY ON BEHALF OF A MUNICIPALITY UNDER SECTION
7 5505(D)(21) (RELATING TO PURPOSES AND POWERS), THE MONEY
8 SHALL BE PLEDGED TO THE USE OF THE MUNICIPALITY AND DISBURSED
9 TO THE MUNICIPALITY AS PROVIDED BY ORDINANCE OR RESOLUTION.
10 (B) AUDIT.--AN AUTHORITY SHALL HAVE AT LEAST AN ANNUAL
11 EXAMINATION OF ITS BOOKS, ACCOUNTS AND RECORDS BY A CERTIFIED
12 PUBLIC ACCOUNTANT. A COPY OF THE AUDIT SHALL BE DELIVERED TO THE
13 PARENT MUNICIPALITY.
14 (C) FINANCIAL STATEMENT.--A CONCISE FINANCIAL STATEMENT
15 SHALL BE PUBLISHED ANNUALLY AT LEAST ONCE IN A NEWSPAPER OF
16 GENERAL CIRCULATION IN THE MUNICIPALITY WHERE THE PRINCIPAL
17 OFFICE OF THE AUTHORITY IS LOCATED. IF PUBLICATION IS NOT MADE
18 BY THE AUTHORITY, THE MUNICIPALITY SHALL PUBLISH SUCH STATEMENT
19 AT THE EXPENSE OF THE AUTHORITY. IF THE AUTHORITY FAILS TO MAKE
20 THE AUDIT, THEN THE CONTROLLER, AUDITOR OR ACCOUNTANT DESIGNATED
21 BY THE MUNICIPALITY IS AUTHORIZED TO EXAMINE, AT THE EXPENSE OF
22 THE AUTHORITY, THE ACCOUNTS AND BOOKS OF THE AUTHORITY,
23 INCLUDING ITS RECEIPTS, DISBURSEMENTS, CONTRACTS, LEASES,
24 SINKING FUNDS, INVESTMENTS AND OTHER MATTERS RELATING TO ITS
25 FINANCES, OPERATION AND AFFAIRS.
26 (D) ATTORNEY GENERAL.--THE ATTORNEY GENERAL SHALL HAVE THE
27 RIGHT TO EXAMINE THE BOOKS, ACCOUNTS AND RECORDS OF AN
28 AUTHORITY.
29 § 5511. COMPETITION IN AWARD OF CONTRACTS.
30 (A) SERVICES.--
20010S0780B1186 - 33 -
1 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), ALL
2 CONSTRUCTION, RECONSTRUCTION, REPAIR OR WORK OF ANY NATURE
3 MADE BY AN AUTHORITY, IF THE ENTIRE COST, VALUE OR AMOUNT,
4 INCLUDING LABOR AND MATERIALS, EXCEEDS $10,000, SHALL BE DONE
5 ONLY UNDER CONTRACT TO BE ENTERED INTO BY THE AUTHORITY WITH
6 THE LOWEST RESPONSIBLE BIDDER, UPON PROPER TERMS, AFTER
7 PUBLIC NOTICE ASKING FOR COMPETITIVE BIDS AS PROVIDED IN THIS
8 SECTION.
9 (2) PARAGRAPH (1) DOES NOT APPLY TO RECONSTRUCTION,
10 REPAIR OR WORK DONE BY EMPLOYEES OF THE AUTHORITY OR BY LABOR
11 SUPPLIED UNDER AGREEMENT WITH A FEDERAL OR STATE AGENCY WITH
12 SUPPLIES AND MATERIALS PURCHASED AS PROVIDED IN THIS SECTION.
13 (3) NO CONTRACT SHALL BE ENTERED INTO FOR CONSTRUCTION
14 OR IMPROVEMENT OR REPAIR OF A PROJECT, OR PORTION THEREOF,
15 UNLESS THE CONTRACTOR GIVES AN UNDERTAKING WITH A SUFFICIENT
16 SURETY APPROVED BY THE AUTHORITY AND IN AN AMOUNT FIXED BY
17 THE AUTHORITY FOR THE FAITHFUL PERFORMANCE OF THE CONTRACT.
18 (4) THE CONTRACT MUST PROVIDE, AMONG OTHER THINGS, THAT
19 THE PERSON OR CORPORATION ENTERING INTO THE CONTRACT WITH THE
20 AUTHORITY WILL PAY FOR ALL MATERIALS FURNISHED AND SERVICES
21 RENDERED FOR THE PERFORMANCE OF THE CONTRACT AND THAT ANY
22 PERSON OR CORPORATION FURNISHING MATERIALS OR RENDERING
23 SERVICES MAY MAINTAIN AN ACTION TO RECOVER FOR THEM AGAINST
24 THE OBLIGOR IN THE UNDERTAKING, AS THOUGH SUCH PERSON OR
25 CORPORATION WERE NAMED IN THE CONTRACT, IF THE ACTION IS
26 BROUGHT WITHIN ONE YEAR AFTER THE TIME THE CAUSE OF ACTION
27 ACCRUED.
28 (5) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT
29 THE POWER OF THE AUTHORITY TO CONSTRUCT, REPAIR OR IMPROVE A
30 PROJECT OR PORTION THEREOF, OR ANY ADDITION, BETTERMENT OR
20010S0780B1186 - 34 -
1 EXTENSION THERETO DIRECTED BY THE OFFICERS, AGENTS AND
2 EMPLOYEES OF THE AUTHORITY OR OTHERWISE THAN BY CONTRACT.
3 (B) SUPPLIES AND MATERIALS.--ALL SUPPLIES AND MATERIALS
4 COSTING AT LEAST $10,000 SHALL BE PURCHASED ONLY AFTER
5 ADVERTISEMENT AS PROVIDED IN THIS SECTION. THE AUTHORITY SHALL
6 ACCEPT THE LOWEST BID, KIND, QUALITY AND MATERIAL BEING EQUAL;
7 BUT THE AUTHORITY SHALL HAVE THE RIGHT TO REJECT ANY OR ALL BIDS
8 OR SELECT A SINGLE ITEM FROM ANY BID. THE PROVISIONS AS TO
9 BIDDING SHALL NOT APPLY TO THE PURCHASE OF PATENTED AND
10 MANUFACTURED PRODUCTS OFFERED FOR SALE IN A NONCOMPETITIVE
11 MARKET OR SOLELY BY A MANUFACTURER'S AUTHORIZED DEALER.
12 (C) QUOTATIONS.--WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM
13 AT LEAST THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE
14 REQUESTED FOR A CONTRACT WHICH EXCEEDS $4,000 BUT IS LESS THAN
15 THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE BIDDING. IN
16 LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE KEPT ON FILE
17 SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS EXIST IN THE
18 MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO OBTAIN QUOTATIONS.
19 A WRITTEN RECORD OF TELEPHONIC PRICE QUOTATIONS SHALL BE MADE
20 AND SHALL CONTAIN AT LEAST THE DATE OF THE QUOTATION; THE NAME
21 OF THE CONTRACTOR AND THE CONTRACTOR'S REPRESENTATIVE; THE
22 CONSTRUCTION, RECONSTRUCTION, REPAIR, MAINTENANCE OR WORK WHICH
23 WAS THE SUBJECT OF THE QUOTATION; AND THE PRICE. WRITTEN PRICE
24 QUOTATIONS, WRITTEN RECORDS OF TELEPHONIC PRICE QUOTATIONS AND
25 MEMORANDA SHALL BE RETAINED FOR A PERIOD OF THREE YEARS.
26 (D) NOTICE.--THE TERM "ADVERTISEMENT" OR "PUBLIC NOTICE,"
27 WHEREVER USED IN THIS SECTION, SHALL MEAN A NOTICE PUBLISHED AT
28 LEAST TEN DAYS BEFORE THE AWARD OF A CONTRACT IN A NEWSPAPER OF
29 GENERAL CIRCULATION PUBLISHED IN THE MUNICIPALITY WHERE THE
30 AUTHORITY HAS ITS PRINCIPAL OFFICE OR, IF NO NEWSPAPER OF
20010S0780B1186 - 35 -
1 GENERAL CIRCULATION IS PUBLISHED THEREIN, IN A NEWSPAPER OF
2 GENERAL CIRCULATION IN THE COUNTY WHERE THE AUTHORITY HAS ITS
3 PRINCIPAL OFFICE.
4 (E) CONFLICT OF INTEREST.--NO MEMBER OF THE AUTHORITY OR
5 OFFICER OR EMPLOYEE OF THE AUTHORITY MAY DIRECTLY OR INDIRECTLY
6 BE A PARTY TO OR BE INTERESTED IN ANY CONTRACT OR AGREEMENT WITH
7 THE AUTHORITY FOR ANY MATTER, CAUSE OR THING IF THE CONTRACT OR
8 AGREEMENT ESTABLISHES LIABILITY AGAINST OR INDEBTEDNESS OF THE
9 AUTHORITY. ANY CONTRACT OR AGREEMENT MADE IN VIOLATION OF THIS
10 SUBSECTION IS VOID, AND NO ACTION MAY BE MAINTAINED ON THE
11 AGREEMENT AGAINST THE AUTHORITY.
12 (F) ENTRY INTO CONTRACTS.--
13 (1) SUBJECT TO SUBSECTION (E), AN AUTHORITY MAY ENTER
14 INTO AND CARRY OUT CONTRACTS OR ESTABLISH OR COMPLY WITH
15 RULES AND REGULATIONS CONCERNING LABOR AND MATERIALS AND
16 OTHER RELATED MATTERS IN CONNECTION WITH A PROJECT OR PORTION
17 THEREOF AS THE AUTHORITY DEEMS DESIRABLE OR AS MAY BE
18 REQUESTED BY A FEDERAL AGENCY TO ASSIST IN THE FINANCING OF
19 THE PROJECT OR ANY PART THEREOF. THIS PARAGRAPH SHALL NOT
20 APPLY TO ANY OF THE FOLLOWING:
21 (I) A CASE IN WHICH THE AUTHORITY HAS TAKEN OVER BY
22 TRANSFER OR ASSIGNMENT A CONTRACT AUTHORIZED TO BE
23 ASSIGNED TO IT UNDER SECTION 5516 (RELATING TO TRANSFER
24 OF EXISTING FACILITIES TO AUTHORITY).
25 (II) A CONTRACT IN CONNECTION WITH THE CONSTRUCTION
26 OF A PROJECT WHICH THE AUTHORITY MAY HAVE HAD TRANSFERRED
27 TO IT BY ANY PERSON OR PRIVATE CORPORATION.
28 (2) THIS SUBSECTION IS NOT INTENDED TO LIMIT THE POWERS
29 OF AN AUTHORITY.
30 (G) COMPLIANCE.--A CONTRACT FOR THE CONSTRUCTION,
20010S0780B1186 - 36 -
1 RECONSTRUCTION, ALTERATION, REPAIR, IMPROVEMENT OR MAINTENANCE
2 OF PUBLIC WORKS SHALL COMPLY WITH THE PROVISIONS OF THE ACT OF
3 MARCH 3, 1978 (P.L.6, NO.3), KNOWN AS THE STEEL PRODUCTS
4 PROCUREMENT ACT.
5 (H) EVASION.--
6 (1) AN AUTHORITY MAY NOT EVADE THE PROVISIONS OF THIS
7 SECTION AS TO BIDS OR PURCHASING MATERIALS OR CONTRACTING FOR
8 SERVICES PIECEMEAL FOR THE PURPOSE OF OBTAINING PRICES UNDER
9 $10,000 UPON TRANSACTIONS WHICH SHOULD, IN THE EXERCISE OF
10 REASONABLE DISCRETION AND PRUDENCE, BE CONDUCTED AS ONE
11 TRANSACTION AMOUNTING TO MORE THAN $10,000.
12 (2) THIS SUBSECTION IS INTENDED TO MAKE UNLAWFUL THE
13 PRACTICE OF EVADING ADVERTISING REQUIREMENTS BY MAKING A
14 SERIES OF PURCHASES OR CONTRACTS EACH FOR LESS THAN THE
15 ADVERTISING REQUIREMENT PRICE OR BY MAKING SEVERAL
16 SIMULTANEOUS PURCHASES OR CONTRACTS EACH BELOW THAT PRICE
17 WHEN, IN EITHER CASE, THE TRANSACTION INVOLVED SHOULD HAVE
18 BEEN MADE AS ONE TRANSACTION FOR ONE PRICE.
19 (3) AN AUTHORITY MEMBER WHO VOTES TO UNLAWFULLY EVADE
20 THE PROVISIONS OF THIS SECTION AND WHO KNOWS THAT THE
21 TRANSACTION UPON WHICH THE MEMBER VOTES IS OR OUGHT TO BE A
22 PART OF A LARGER TRANSACTION AND THAT IT IS BEING DIVIDED IN
23 ORDER TO EVADE THE REQUIREMENTS AS TO ADVERTISING FOR BIDS
24 COMMITS A MISDEMEANOR OF THE THIRD DEGREE FOR EACH CONTRACT
25 ENTERED INTO AS A DIRECT RESULT OF THAT VOTE.
26 § 5512. USE OF PROJECTS.
27 (A) REGULATIONS.--SUBJECT TO SUBSECTION (B), THE USE OF THE
28 FACILITIES OF THE AUTHORITY AND THE OPERATION OF ITS BUSINESS
29 SHALL BE SUBJECT TO THE REGULATIONS ADOPTED BY THE AUTHORITY.
30 (B) LIMITATION.--THE AUTHORITY IS NOT AUTHORIZED TO DO
20010S0780B1186 - 37 -
1 ANYTHING WHICH WILL IMPAIR THE SECURITY OF THE HOLDERS OF THE
2 OBLIGATIONS OF THE AUTHORITY OR VIOLATE AGREEMENTS WITH THEM OR
3 FOR THEIR BENEFIT.
4 § 5513. PLEDGE BY COMMONWEALTH.
5 (A) POWER OF AUTHORITIES.--THE COMMONWEALTH PLEDGES TO AND
6 AGREES WITH ANY PERSON, FIRM OR CORPORATION OR FEDERAL AGENCY
7 SUBSCRIBING TO OR ACQUIRING THE BONDS TO BE ISSUED BY THE
8 AUTHORITY FOR THE CONSTRUCTION, EXTENSION, IMPROVEMENT OR
9 ENLARGEMENT OF A PROJECT OR PART THEREOF THAT THE COMMONWEALTH
10 WILL NOT LIMIT OR ALTER THE RIGHTS VESTED BY THIS CHAPTER IN THE
11 AUTHORITY UNTIL ALL BONDS AND THE INTEREST ON THEM ARE FULLY MET
12 AND DISCHARGED.
13 (B) FEDERAL MATTERS.--THE COMMONWEALTH PLEDGES TO AND AGREES
14 WITH THE UNITED STATES AND ALL FEDERAL AGENCIES THAT, IF A
15 FEDERAL AGENCY CONSTRUCTS OR CONTRIBUTES FUNDS FOR THE
16 CONSTRUCTION, EXTENSION, IMPROVEMENT OR ENLARGEMENT OF A PROJECT
17 OR ANY PORTION THEREOF:
18 (1) THE COMMONWEALTH WILL NOT ALTER OR LIMIT THE RIGHTS
19 AND POWERS OF THE AUTHORITY IN ANY MANNER WHICH WOULD BE
20 INCONSISTENT WITH THE CONTINUED MAINTENANCE AND OPERATION OF
21 THE PROJECT OR THE IMPROVEMENT THEREOF OR WHICH WOULD BE
22 INCONSISTENT WITH THE DUE PERFORMANCE OF AGREEMENTS BETWEEN
23 THE AUTHORITY AND ANY FEDERAL AGENCY; AND
24 (2) THE AUTHORITY SHALL CONTINUE TO HAVE AND MAY
25 EXERCISE ALL POWERS GRANTED IN THIS CHAPTER AS LONG AS THE
26 POWERS ARE NECESSARY OR DESIRABLE FOR CARRYING OUT THE
27 PURPOSES OF THIS CHAPTER AND THE PURPOSES OF THE UNITED
28 STATES IN THE CONSTRUCTION OR IMPROVEMENT OR ENLARGEMENT OF
29 THE PROJECT OR PORTION THEREOF.
30 § 5514. TERMINATION OF AUTHORITY.
20010S0780B1186 - 38 -
1 (A) CONVEYANCE OF PROJECTS.--WHEN AN AUTHORITY HAS FINALLY
2 PAID AND DISCHARGED ALL BONDS, WITH INTEREST DUE, WHICH HAVE
3 BEEN SECURED BY A PLEDGE OF ANY OF THE REVENUES OR RECEIPTS OF A
4 PROJECT, IT MAY, SUBJECT TO AGREEMENTS CONCERNING THE OPERATION
5 OR DISPOSITION OF THE PROJECT, CONVEY THE PROJECT TO THE PARENT
6 MUNICIPALITY.
7 (B) CONVEYANCE OF PROPERTY.--WHEN AN AUTHORITY HAS FINALLY
8 PAID AND DISCHARGED ALL BONDS ISSUED AND OUTSTANDING AND THE
9 INTEREST DUE ON THEM AND SETTLED ALL OTHER OUTSTANDING CLAIMS
10 AGAINST IT, IT MAY CONVEY ALL ITS PROPERTY TO ITS PARENT
11 MUNICIPALITY.
12 (C) CERTIFICATE.--A CERTIFICATE REQUESTING THE TERMINATION
13 OF THE EXISTENCE OF AN AUTHORITY SHALL BE FILED IN THE OFFICE OF
14 THE SECRETARY OF THE COMMONWEALTH. IF THE CERTIFICATE IS
15 APPROVED BY THE PARENT MUNICIPALITY, THE SECRETARY SHALL NOTE
16 THE TERMINATION OF EXISTENCE ON THE RECORD OF INCORPORATION AND
17 RETURN THE CERTIFICATE WITH APPROVAL TO THE BOARD. THE BOARD
18 SHALL CAUSE THE CERTIFICATE TO BE RECORDED IN THE OFFICE OF THE
19 RECORDER OF DEEDS OF THE COUNTY. UPON RECORDING, THE PROPERTY OF
20 THE AUTHORITY SHALL PASS TO THE PARENT MUNICIPALITY, AND THE
21 AUTHORITY SHALL CEASE TO EXIST.
22 § 5515. EXEMPTION FROM TAXATION; PAYMENTS IN LIEU OF TAXES.
23 THE EFFECTUATION OF THE AUTHORIZED PURPOSES OF AUTHORITIES
24 CREATED UNDER THIS CHAPTER SHALL BE FOR THE BENEFIT OF THE
25 RESIDENTS OF MUNICIPALITIES FOR THE INCREASE OF THEIR COMMERCE
26 AND PROSPERITY AND FOR THE IMPROVEMENT OF THEIR HEALTH, SAFETY
27 AND LIVING CONDITIONS. SINCE AUTHORITIES WILL BE PERFORMING
28 ESSENTIAL GOVERNMENTAL FUNCTIONS IN EFFECTUATING THESE PURPOSES,
29 AUTHORITIES SHALL NOT BE REQUIRED TO PAY TAXES OR ASSESSMENTS
30 UPON PROPERTY ACQUIRED OR USED BY THEM FOR SUCH PURPOSES. IN
20010S0780B1186 - 39 -
1 LIEU OF SUCH TAXES OR SPECIAL ASSESSMENTS, AN AUTHORITY MAY
2 AGREE TO MAKE PAYMENTS TO THE CITY OR THE COUNTY OR ANY
3 POLITICAL SUBDIVISION. THE BONDS ISSUED BY AN AUTHORITY, THEIR
4 TRANSFER AND THE INCOME FROM THE BONDS, INCLUDING PROFITS MADE
5 ON THEIR SALE, SHALL BE FREE FROM TAXATION WITHIN THIS
6 COMMONWEALTH.
7 § 5516. TRANSFER OF EXISTING FACILITIES TO AUTHORITY.
8 (A) AUTHORIZATION.--ANY COUNTY, CITY, BOROUGH, TOWN OR
9 TOWNSHIP OR ANY OWNER IS AUTHORIZED TO SELL, LEASE, LEND, GRANT
10 OR CONVEY TO AN AUTHORITY A PROJECT OR ANY PART OF A PROJECT OR
11 ANY INTEREST IN REAL OR PERSONAL PROPERTY WHICH MAY BE USED BY
12 THE AUTHORITY IN THE CONSTRUCTION, IMPROVEMENT, MAINTENANCE OR
13 OPERATION OF A PROJECT. ANY COUNTY, CITY, BOROUGH, TOWN OR
14 TOWNSHIP IS AUTHORIZED TO TRANSFER, ASSIGN AND SET OVER TO AN
15 AUTHORITY A CONTRACT AWARDED BY THE COUNTY, CITY, BOROUGH, TOWN
16 OR TOWNSHIP FOR THE CONSTRUCTION OF PROJECTS NOT BEGUN OR, IF
17 BEGUN, NOT COMPLETED. THE TERRITORY BEING SERVED BY A PROJECT OR
18 THE TERRITORY WITHIN WHICH THE PROJECT IS AUTHORIZED TO RENDER
19 SERVICE AT THE TIME OF THE ACQUISITION OF THE PROJECT BY AN
20 AUTHORITY SHALL CONSTITUTE THE AREA IN WHICH THE AUTHORITY IS
21 AUTHORIZED TO RENDER SERVICE.
22 (B) ACQUISITION.--
23 (1) AN AUTHORITY MAY NOT ACQUIRE BY ANY DEVICE OR MEANS,
24 INCLUDING A CONSOLIDATION, MERGER, PURCHASE OR LEASE, OR
25 THROUGH THE PURCHASE OF STOCK, BONDS OR OTHER SECURITIES,
26 TITLE TO OR POSSESSION OR USE OF ALL OR A SUBSTANTIAL PORTION
27 OF A PROJECT WHICH IS SUBJECT TO THE JURISDICTION OF THE
28 PENNSYLVANIA PUBLIC UTILITY COMMISSION WITHOUT THE APPROVAL
29 OF THE COMMISSION, EVIDENCED BY ITS CERTIFICATE OF PUBLIC
30 CONVENIENCE OBTAINED IN ACCORDANCE WITH THE PROCEDURE AND
20010S0780B1186 - 40 -
1 INVESTIGATIONS AS TO VALUE AS PROVIDED IN 66 PA.C.S § 1103
2 (RELATING TO PROCEDURE TO OBTAIN CERTIFICATES OF PUBLIC
3 CONVENIENCE). THE COMMISSION SHALL ALSO CONSIDER THE EARNING
4 POWER OF THE PROJECT IN DECIDING THE VALUE OF THE PROJECT. AS
5 USED IN THIS PARAGRAPH, THE TERM "ACQUIRE" INCLUDES ONLY THE
6 ACQUISITION OF EXISTING FACILITIES.
7 (2) THE AUTHORITY SHALL FIRST REPORT TO AND ADVISE THE
8 PARENT MUNICIPALITY OF THE AGREEMENT TO ACQUIRE, INCLUDING
9 ALL ITS TERMS AND CONDITIONS.
10 (3) THE PROPOSED ACTION OF THE AUTHORITY AND THE
11 PROPOSED AGREEMENT TO ACQUIRE MUST BE APPROVED BY THE CITY
12 COUNCIL. APPROVAL SHALL BE BY TWO-THIRDS VOTE OF ALL OF THE
13 MEMBERS OF THE COUNCIL.
14 (C) COMPLETE PROVISION.--NOTWITHSTANDING ANY OTHER PROVISION
15 OF LAW, THIS SECTION, WITHOUT REFERENCE TO ANY OTHER LAW, SHALL
16 BE DEEMED COMPLETE FOR THE ACQUISITION BY AGREEMENT OF A PROJECT
17 LOCATED WHOLLY WITHIN OR PARTIALLY WITHOUT THE MUNICIPALITY
18 CAUSING THE AUTHORITY TO BE INCORPORATED; AND NO PROCEEDINGS OR
19 OTHER ACTION SHALL BE REQUIRED EXCEPT AS PRESCRIBED IN THIS
20 SECTION.
21 § 5517. SEVERABILITY.
22 THE PROVISIONS OF THIS CHAPTER ARE SEVERABLE. IF ANY
23 PROVISION OF THIS CHAPTER OR ITS APPLICATION TO ANY PERSON OR
24 CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY SHALL NOT AFFECT
25 OTHER PROVISIONS OR APPLICATIONS OF THIS CHAPTER WHICH CAN BE
26 GIVEN EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION.
27 CHAPTER 56
28 MUNICIPAL AUTHORITIES
29 SEC.
30 5601. SHORT TITLE OF CHAPTER.
20010S0780B1186 - 41 -
1 5602. DEFINITIONS.
2 5603. METHOD OF INCORPORATION.
3 5604. MUNICIPALITIES WITHDRAWING FROM AND JOINING IN JOINT
4 AUTHORITIES.
5 5605. AMENDMENT OF ARTICLES.
6 5606. SCHOOL DISTRICT PROJECTS.
7 5607. PURPOSES AND POWERS.
8 5608. BONDS.
9 5609. BONDHOLDERS.
10 5610. GOVERNING BODY.
11 5611. INVESTMENT OF AUTHORITY FUNDS.
12 5612. MONEY OF AUTHORITY.
13 5613. TRANSFER OF EXISTING FACILITIES TO AUTHORITY.
14 5614. COMPETITION IN AWARD OF CONTRACTS.
15 5615. ACQUISITION OF LANDS, WATER AND WATER RIGHTS.
16 5616. ACQUISITION OF CAPITAL STOCK.
17 5617. USE OF PROJECTS.
18 5618. PLEDGE BY COMMONWEALTH.
19 5619. TERMINATION OF AUTHORITY.
20 5620. EXEMPTION FROM TAXATION AND PAYMENTS IN LIEU OF TAXES.
21 5621. CONSTITUTIONAL CONSTRUCTION.
22 5622. CONVEYANCE BY AUTHORITIES TO MUNICIPALITIES OR SCHOOL
23 DISTRICTS OF ESTABLISHED PROJECTS.
24 § 5601. SHORT TITLE OF CHAPTER.
25 THIS CHAPTER SHALL BE KNOWN AND MAY BE CITED AS THE
26 MUNICIPALITY AUTHORITIES ACT.
27 § 5602. DEFINITIONS.
28 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
29 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
30 CONTEXT CLEARLY INDICATES OTHERWISE:
20010S0780B1186 - 42 -
1 "ADMINISTRATIVE SERVICE." IN THE CASE OF AUTHORITIES CREATED
2 FOR THE PURPOSE OF MAKING BUSINESS IMPROVEMENTS OR PROVIDING
3 ADMINISTRATIVE SERVICES, THE TERM MEANS THOSE SERVICES WHICH
4 IMPROVE THE ABILITY OF THE COMMERCIAL ESTABLISHMENTS OF A
5 DISTRICT TO SERVE THE CONSUMERS, SUCH AS FREE OR REDUCED FEE
6 PARKING FOR CUSTOMERS, TRANSPORTATION REPAYMENTS, PUBLIC
7 RELATIONS PROGRAMS, GROUP ADVERTISING, AND DISTRICT MAINTENANCE
8 AND SECURITY SERVICES.
9 "AUTHORITY." A BODY POLITIC AND CORPORATE, CREATED UNDER
10 THIS CHAPTER OR UNDER THE ACT OF MAY 2, 1945 (P.L.382, NO.164),
11 KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF 1945.
12 "BOARD." THE GOVERNING BODY OF AN AUTHORITY.
13 "BONDS." NOTES, BONDS AND OTHER EVIDENCE OF INDEBTEDNESS OR
14 OBLIGATIONS WHICH EACH AUTHORITY IS AUTHORIZED TO ISSUE PURSUANT
15 TO SECTION 5608 (RELATING TO BONDS).
16 "BUSINESS IMPROVEMENT." IN THE CASE OF AUTHORITIES CREATED
17 FOR THE PURPOSE OF MAKING BUSINESS IMPROVEMENTS OR PROVIDING
18 ADMINISTRATIVE SERVICES, THE TERM MEANS THOSE IMPROVEMENTS
19 DESIGNATED BY AN AUTHORITY TO BE NEEDED BY A DISTRICT IN GENERAL
20 OR BY SPECIFIC AREAS OR INDIVIDUAL PROPERTIES WITHIN OR NEAR THE
21 DISTRICT, INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, RETAINING
22 WALLS, STREET PAVING, STREET LIGHTING, PARKING LOTS, PARKING
23 GARAGES, TREES AND SHRUBBERY, PEDESTRIAN WALKS, SEWERS, WATER
24 LINES, REST AREAS AND ACQUISITION AND REMODELING OR DEMOLITION
25 OF BLIGHTED BUILDINGS OR STRUCTURES. IMPROVEMENTS SHALL NOT BE
26 MADE TO PROPERTY NOT ACQUIRED BY PURCHASE OR LEASE, OTHER THAN
27 THOSE IMPROVEMENTS MADE WITHIN A RIGHT-OF-WAY.
28 "CONSTRUCTION." ACQUISITION AND CONSTRUCTION. THE TERM "TO
29 CONSTRUCT" SHALL MEAN AND INCLUDE TO ACQUIRE AND TO CONSTRUCT,
30 ALL IN SUCH MANNER AS MAY BE DEEMED DESIRABLE.
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1 "ELIGIBLE EDUCATIONAL INSTITUTION." AN INDEPENDENT
2 INSTITUTION OF HIGHER EDUCATION LOCATED IN AND CHARTERED BY THE
3 COMMONWEALTH OR A PRIVATE, SECONDARY SCHOOL LOCATED IN THIS
4 COMMONWEALTH AND APPROVED BY THE DEPARTMENT OF EDUCATION WHICH
5 IS NOT A STATE-OWNED INSTITUTION, WHICH IS OPERATED NOT FOR
6 PROFIT, WHICH IS DETERMINED BY THE AUTHORITY NOT TO BE A
7 THEOLOGICAL SEMINARY OR SCHOOL OF THEOLOGY OR A SECTARIAN AND
8 DENOMINATIONAL INSTITUTION AND WHICH IS APPROVED AS ELIGIBLE BY
9 THE AUTHORITY PURSUANT TO REGULATIONS APPROVED BY IT.
10 "FEDERAL AGENCY." THE UNITED STATES OF AMERICA, THE
11 PRESIDENT OF THE UNITED STATES OF AMERICA AND ANY DEPARTMENT OF
12 OR CORPORATION, AGENCY OR INSTRUMENTALITY CREATED, DESIGNATED OR
13 ESTABLISHED BY THE UNITED STATES OF AMERICA.
14 "FINANCING," "TO FINANCE" OR "FINANCED." THE LENDING OR
15 PROVIDING OF FUNDS TO OR ON BEHALF OF A PERSON FOR PAYMENT OF
16 THE COSTS OF A PROJECT OR FOR REFINANCING SUCH COSTS, REPAYMENT
17 OF LOANS PREVIOUSLY INCURRED TO PAY THE COST OF A PROJECT OR
18 OTHERWISE.
19 "HEALTH CENTER." A FACILITY WHICH:
20 (1) IS OPERATED BY A NONPROFIT CORPORATION AND:
21 (I) PROVIDES HEALTH CARE SERVICES TO THE PUBLIC;
22 (II) PROVIDES HEALTH CARE-RELATED SERVICES OR
23 ASSISTANCE TO ONE OR MORE ORGANIZATIONS IN AID OF THE
24 PROVISION OF HEALTH CARE SERVICES TO THE PUBLIC,
25 INCLUDING, WITHOUT LIMITATION, SUCH FACILITIES AS BLOOD
26 BANKS, LABORATORIES, RESEARCH AND TESTING FACILITIES,
27 MEDICAL AND ADMINISTRATIVE OFFICE BUILDINGS AND ANCILLARY
28 FACILITIES;
29 (III) CONSTITUTES AN INTEGRATED FACILITY WHICH
30 PROVIDES SUBSTANTIAL HEALTH CARE SERVICES ON A
20010S0780B1186 - 44 -
1 NONSECTARIAN BASIS AND OTHER REASONABLY RELATED SERVICES,
2 INCLUDING, WITHOUT LIMITATION, LIFE CARE OR CONTINUING
3 CARE COMMUNITIES AND NURSING, PERSONAL CARE OR ASSISTED
4 LIVING FACILITIES FOR THE ELDERLY, HANDICAPPED OR
5 DISABLED; OR
6 (IV) PROVIDES EDUCATIONAL AND COUNSELING SERVICES
7 REGARDING THE PREVENTION, DIAGNOSIS AND TREATMENT OF
8 HEALTH CARE PROBLEMS; AND
9 (2) IF REQUIRED BY LAW TO BE LICENSED TO PROVIDE SUCH
10 SERVICES BY THE DEPARTMENT OF HEALTH, THE DEPARTMENT OF
11 PUBLIC WELFARE OR THE INSURANCE DEPARTMENT, IS SO LICENSED
12 OR, IN THE CASE OF A FACILITY TO BE CONSTRUCTED, RENOVATED OR
13 EXPANDED, IS DESIGNED TO COMPLY WITH APPLICABLE STANDARDS FOR
14 SUCH LICENSURE.
15 "IMPROVEMENT." EXTENSION, ENLARGEMENT AND IMPROVEMENT. THE
16 TERM "TO IMPROVE" SHALL MEAN AND INCLUDE TO EXTEND, TO ENLARGE
17 AND TO IMPROVE ALL IN SUCH MANNER AS MAY BE DEEMED DESIRABLE.
18 "LOCAL GOVERNMENT UNIT." THIS TERM SHALL HAVE THE SAME
19 MEANING AS PROVIDED UNDER SECTION 8002 (RELATING TO
20 DEFINITIONS).
21 "MUNICIPAL AUTHORITY." THE BODY OR BOARD AUTHORIZED BY LAW
22 TO ENACT ORDINANCES OR ADOPT RESOLUTIONS FOR THE PARTICULAR
23 MUNICIPALITY.
24 "MUNICIPALITY." A COUNTY, CITY, TOWN, BOROUGH, TOWNSHIP OR
25 SCHOOL DISTRICT OF THE COMMONWEALTH.
26 "PROJECT." EQUIPMENT LEASED BY AN AUTHORITY TO THE
27 MUNICIPALITY OR MUNICIPALITIES THAT ORGANIZED IT OR TO ANY
28 MUNICIPALITY OR SCHOOL DISTRICT LOCATED WHOLLY OR PARTIALLY
29 WITHIN THE BOUNDARIES OF THE MUNICIPALITY OR MUNICIPALITIES THAT
30 ORGANIZED IT, OR ANY STRUCTURE, FACILITY OR UNDERTAKING WHICH AN
20010S0780B1186 - 45 -
1 AUTHORITY IS AUTHORIZED TO ACQUIRE, CONSTRUCT, FINANCE, IMPROVE,
2 MAINTAIN OR OPERATE, OR PROVIDE FINANCING FOR INSURANCE RESERVES
3 UNDER THE PROVISIONS OF THIS CHAPTER, OR ANY WORKING CAPITAL
4 WHICH AN AUTHORITY IS AUTHORIZED TO FINANCE UNDER THE PROVISIONS
5 OF THIS CHAPTER.
6 "PROVIDE FINANCING FOR INSURANCE RESERVES." FINANCING, ON
7 BEHALF OF ONE OR MORE LOCAL GOVERNMENT UNITS OR AUTHORITIES, ALL
8 OR ANY PORTION OF A RESERVE OR A CONTRIBUTION TOWARD A COMBINED
9 RESERVE, POOL OR OTHER ARRANGEMENT RELATING TO SELF-INSURANCE
10 WHICH HAS BEEN ESTABLISHED BY ONE OR MORE LOCAL GOVERNMENT UNITS
11 PURSUANT TO 42 PA.C.S. § 8564 (RELATING TO LIABILITY INSURANCE
12 AND SELF-INSURANCE) UP TO, BUT NOT EXCEEDING, THE AMOUNT
13 PROVIDED IN SECTION 8227 (RELATING TO SINKING FUND NOT REQUIRED
14 FOR SMALL BORROWINGS).
15 "WORKING CAPITAL." SHALL INCLUDE, BUT NOT BE LIMITED TO,
16 FUNDS FOR SUPPLIES, MATERIALS, SERVICES, SALARIES, PENSIONS AND
17 ANY OTHER PROPER OPERATING EXPENSES, PROVIDED THAT THE TERM
18 SHALL BE LIMITED SOLELY TO HOSPITALS AND HEALTH CENTERS, AND
19 PRIVATE, NONPROFIT, NONSECTARIAN COLLEGES AND UNIVERSITIES,
20 STATE-RELATED UNIVERSITIES AND COMMUNITY COLLEGES, WHICH ARE
21 DETERMINED BY THE AUTHORITY TO BE ELIGIBLE EDUCATIONAL
22 INSTITUTIONS. NOTHING IN THIS CHAPTER SHALL PROHIBIT THE
23 BORROWING OF WORKING CAPITAL AS MAY BE NECESSARY OR INCIDENTAL
24 TO THE UNDERTAKING OR PLACING IN OPERATION OF ANY PROJECT
25 UNDERTAKEN IN WHOLE OR IN PART PURSUANT TO THIS CHAPTER.
26 § 5603. METHOD OF INCORPORATION.
27 (A) RESOLUTION OF INTENT.--WHENEVER THE MUNICIPAL
28 AUTHORITIES OF ANY MUNICIPALITY SINGLY OR OF TWO OR MORE
29 MUNICIPALITIES JOINTLY DESIRE TO ORGANIZE AN AUTHORITY UNDER
30 THIS CHAPTER, THEY SHALL ADOPT A RESOLUTION OR ORDINANCE
20010S0780B1186 - 46 -
1 SIGNIFYING THEIR INTENTION TO DO SO. NO SUCH RESOLUTION OR
2 ORDINANCE SHALL BE ADOPTED UNTIL AFTER A PUBLIC HEARING HAS BEEN
3 HELD, THE NOTICE OF WHICH SHALL BE GIVEN AT LEAST 30 DAYS BEFORE
4 THE HEARING AND IN THE SAME MANNER AS PROVIDED IN SUBSECTION (B)
5 FOR THE GIVING OF NOTICE OF THE ADOPTION OF THE RESOLUTION OR
6 ORDINANCE.
7 (B) GENERAL NOTICE OF ADOPTED RESOLUTION.--IF THE RESOLUTION
8 OR ORDINANCE IS ADOPTED, THE MUNICIPAL AUTHORITIES OF SUCH
9 MUNICIPALITY OR MUNICIPALITIES SHALL CAUSE A NOTICE OF SUCH
10 RESOLUTION OR ORDINANCE TO BE PUBLISHED AT LEAST ONE TIME IN THE
11 LEGAL PERIODICAL OF THE COUNTY OR COUNTIES IN WHICH THE
12 AUTHORITY IS TO BE ORGANIZED AND AT LEAST ONE TIME IN A
13 NEWSPAPER PUBLISHED AND IN GENERAL CIRCULATION IN SUCH COUNTY OR
14 COUNTIES. THE NOTICE SHALL CONTAIN A BRIEF STATEMENT OF THE
15 SUBSTANCE OF THE RESOLUTION OR ORDINANCE, INCLUDING THE
16 SUBSTANCE OF THE ARTICLES MAKING REFERENCE TO THIS CHAPTER. IN
17 THE CASE OF AUTHORITIES CREATED FOR THE PURPOSE OF MAKING
18 BUSINESS IMPROVEMENTS OR PROVIDING ADMINISTRATIVE SERVICES, IF
19 APPROPRIATE, THE NOTICE SHALL SPECIFICALLY PROVIDE THAT THE
20 MUNICIPALITY OR MUNICIPALITIES HAVE RETAINED THE RIGHT WHICH
21 EXISTS UNDER THIS CHAPTER TO APPROVE ANY PLAN OF THE AUTHORITY.
22 THE NOTICE SHALL STATE THAT ON A DAY CERTAIN, NOT LESS THAN
23 THREE DAYS AFTER PUBLICATION OF THE NOTICE, ARTICLES OF
24 INCORPORATION OF THE PROPOSED AUTHORITY SHALL BE FILED WITH THE
25 SECRETARY OF THE COMMONWEALTH. NO MUNICIPALITY SHALL BE REQUIRED
26 TO MAKE ANY OTHER PUBLICATION OF THE RESOLUTION OR ORDINANCE
27 UNDER THE PROVISIONS OF EXISTING LAW.
28 (C) FILING ARTICLES OF INCORPORATION.--ON OR BEFORE THE DAY
29 SPECIFIED IN THE NOTICE REQUIRED UNDER SUBSECTION (B), THE
30 MUNICIPAL AUTHORITIES SHALL FILE WITH THE SECRETARY OF THE
20010S0780B1186 - 47 -
1 COMMONWEALTH ARTICLES OF INCORPORATION, TOGETHER WITH PROOF OF
2 PUBLICATION OF THE NOTICE REQUIRED UNDER SUBSECTION (B). THE
3 ARTICLES OF INCORPORATION SHALL SET FORTH:
4 (1) THE NAME OF THE AUTHORITY.
5 (2) A STATEMENT THAT THE AUTHORITY IS FORMED UNDER THIS
6 CHAPTER.
7 (3) A STATEMENT WHETHER ANY OTHER AUTHORITY HAS BEEN
8 ORGANIZED UNDER THIS CHAPTER OR UNDER THE FORMER ACT OF JUNE
9 28, 1935 (P.L.463, NO.191), ENTITLED "AN ACT PROVIDING, FOR A
10 LIMITED PERIOD OF TIME, FOR THE INCORPORATION, AS BODIES
11 CORPORATE AND POLITIC, OF "AUTHORITIES" FOR MUNICIPALITIES;
12 DEFINING THE SAME; PRESCRIBING THE RIGHTS, POWERS, AND DUTIES
13 OF SUCH AUTHORITIES; AUTHORIZING SUCH AUTHORITIES TO ACQUIRE,
14 CONSTRUCT, IMPROVE, MAINTAIN, AND OPERATE PROJECTS, AND TO
15 BORROW MONEY AND ISSUE BONDS THEREFOR; PROVIDING FOR THE
16 PAYMENT OF SUCH BONDS, AND PRESCRIBING THE RIGHTS OF THE
17 HOLDERS THEREOF; CONFERRING THE RIGHT OF EMINENT DOMAIN ON
18 SUCH AUTHORITIES; AUTHORIZING SUCH AUTHORITIES TO ENTER INTO
19 CONTRACTS WITH AND TO ACCEPT GRANTS FROM THE FEDERAL
20 GOVERNMENT OR ANY AGENCY THEREOF; AND FOR OTHER PURPOSES," OR
21 THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE
22 MUNICIPALITY AUTHORITIES ACT OF 1945, AND IS IN EXISTENCE IN
23 OR FOR THE INCORPORATING MUNICIPALITY OR MUNICIPALITIES. IF
24 ANY ONE OR MORE OF THE MUNICIPALITIES HAVE ALREADY JOINED
25 WITH OTHER MUNICIPALITIES NOT COMPOSING THE SAME GROUP IN
26 ORGANIZING A JOINT AUTHORITY, THE APPLICATION SHALL SET FORTH
27 THE NAME OF THAT AUTHORITY, TOGETHER WITH THE NAMES OF THE
28 MUNICIPALITIES JOINING IN IT.
29 (4) THE NAME OF THE INCORPORATING MUNICIPALITY OR
30 MUNICIPALITIES, TOGETHER WITH THE NAMES AND ADDRESSES OF ITS
20010S0780B1186 - 48 -
1 MUNICIPAL AUTHORITIES.
2 (5) THE NAMES, ADDRESSES AND TERM OF OFFICE OF THE FIRST
3 MEMBERS OF THE BOARD OF THE AUTHORITY.
4 (6) IN THE CASE OF AUTHORITIES CREATED FOR THE PURPOSE
5 OF MAKING BUSINESS IMPROVEMENTS OR PROVIDING ADMINISTRATIVE
6 SERVICES, IF APPROPRIATE, A STATEMENT THAT THE MUNICIPALITY
7 OR MUNICIPALITIES HAVE RETAINED THE RIGHT WHICH EXISTS UNDER
8 THIS CHAPTER TO APPROVE ANY PLAN OF THE AUTHORITY.
9 (7) ANY OTHER MATTER WHICH SHALL BE DETERMINED IN
10 ACCORDANCE WITH THE PROVISIONS OF THIS CHAPTER.
11 (D) EXECUTION OF ARTICLES.--THE ARTICLES OF INCORPORATION
12 SHALL BE EXECUTED BY EACH INCORPORATING MUNICIPALITY BY ITS
13 PROPER OFFICERS AND UNDER ITS MUNICIPAL SEAL.
14 (E) CERTIFICATION OF INCORPORATION.--IF THE SECRETARY OF THE
15 COMMONWEALTH FINDS THAT THE ARTICLES OF INCORPORATION CONFORM TO
16 LAW, HE SHALL, BUT NOT PRIOR TO THE DAY SPECIFIED IN THE NOTICE
17 PUBLISHED IN ACCORDANCE WITH SUBSECTION (B), ENDORSE HIS
18 APPROVAL OF THEM AND, WHEN ALL PROPER FEES AND CHARGES HAVE BEEN
19 PAID, SHALL FILE THE ARTICLES AND ISSUE A CERTIFICATE OF
20 INCORPORATION, TO WHICH SHALL BE ATTACHED A COPY OF THE APPROVED
21 ARTICLES. UPON THE ISSUANCE OF A CERTIFICATE OF INCORPORATION BY
22 THE SECRETARY OF THE COMMONWEALTH, THE CORPORATE EXISTENCE OF
23 THE AUTHORITY SHALL BEGIN. THE CERTIFICATE OF INCORPORATION
24 SHALL BE CONCLUSIVE EVIDENCE OF THE FACT THAT THE AUTHORITY HAS
25 BEEN INCORPORATED, BUT PROCEEDINGS MAY BE INSTITUTED BY THE
26 COMMONWEALTH TO DISSOLVE AN AUTHORITY WHICH WAS FORMED WITHOUT
27 SUBSTANTIAL COMPLIANCE WITH THE PROVISIONS OF THIS SECTION.
28 (F) CERTIFICATION OF OFFICERS.--WHEN AN AUTHORITY HAS BEEN
29 ORGANIZED AND ITS OFFICERS ELECTED, ITS SECRETARY SHALL CERTIFY
30 TO THE SECRETARY OF THE COMMONWEALTH THE NAMES AND ADDRESSES OF
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1 ITS OFFICERS, AS WELL AS THE PRINCIPAL OFFICE OF THE AUTHORITY.
2 ANY CHANGE IN THE LOCATION OF THE PRINCIPAL OFFICE SHALL
3 LIKEWISE BE CERTIFIED TO THE SECRETARY OF THE COMMONWEALTH
4 WITHIN TEN DAYS AFTER SUCH CHANGE. AN AUTHORITY CREATED UNDER
5 THE LAWS OF THE COMMONWEALTH EXISTING AT THE TIME THIS CHAPTER
6 IS ENACTED, IN ADDITION TO POWERS GRANTED OR CONFERRED UPON THE
7 AUTHORITY, SHALL POSSESS ALL THE POWERS PROVIDED UNDER THIS
8 CHAPTER.
9 § 5604. MUNICIPALITIES WITHDRAWING FROM AND JOINING IN JOINT
10 AUTHORITIES.
11 (A) POWER TO WITHDRAW.--WHEN AN AUTHORITY HAS BEEN
12 INCORPORATED BY TWO OR MORE MUNICIPALITIES, ANY ONE OR MORE OF
13 SUCH MUNICIPALITIES MAY WITHDRAW FROM IT, BUT NO MUNICIPALITY
14 SHALL BE PERMITTED TO WITHDRAW FROM AN AUTHORITY AFTER AN
15 OBLIGATION HAS BEEN INCURRED BY THAT AUTHORITY.
16 (B) POWER TO JOIN.--WHEN AN AUTHORITY HAS BEEN INCORPORATED
17 BY ONE OR MORE MUNICIPALITIES, A MUNICIPALITY NOT HAVING JOINED
18 IN THE ORIGINAL INCORPORATION MAY SUBSEQUENTLY JOIN IN THE
19 AUTHORITY.
20 (C) PROCEDURE.--ANY MUNICIPALITY WISHING TO WITHDRAW FROM OR
21 TO BECOME A MEMBER OF AN EXISTING AUTHORITY SHALL SIGNIFY ITS
22 DESIRE BY RESOLUTION OR ORDINANCE. IF THE AUTHORITY SHALL BY
23 RESOLUTION EXPRESS ITS CONSENT TO SUCH WITHDRAWAL OR JOINING,
24 THE MUNICIPAL AUTHORITIES OF THE WITHDRAWING OR JOINING
25 MUNICIPALITY SHALL CAUSE A NOTICE OF ITS RESOLUTION OR ORDINANCE
26 TO BE PUBLISHED AT LEAST ONE TIME IN THE LEGAL PERIODICAL OF THE
27 COUNTY OR COUNTIES IN WHICH THE AUTHORITY IS ORGANIZED AND AT
28 LEAST ONE TIME IN A NEWSPAPER PUBLISHED AND IN GENERAL
29 CIRCULATION IN SUCH COUNTY OR COUNTIES. THIS NOTICE SHALL
30 CONTAIN A BRIEF STATEMENT OF THE SUBSTANCE OF THE RESOLUTION OR
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1 ORDINANCE, MAKING REFERENCE TO THIS CHAPTER, AND SHALL STATE
2 THAT ON A DAY CERTAIN, NOT LESS THAN THREE DAYS AFTER
3 PUBLICATION OF THE NOTICE, AN APPLICATION TO WITHDRAW FROM OR TO
4 BECOME A MEMBER OF THE AUTHORITY, AS THE CASE MAY BE, WILL BE
5 FILED WITH THE SECRETARY OF THE COMMONWEALTH.
6 (D) FILING AN APPLICATION TO WITHDRAW OR JOIN.--ON OR BEFORE
7 THE DAY SPECIFIED IN THE NOTICE, THE MUNICIPAL AUTHORITIES SHALL
8 FILE AN APPLICATION WITH THE SECRETARY OF THE COMMONWEALTH,
9 TOGETHER WITH PROOF OF PUBLICATION OF THE NOTICE REQUIRED UNDER
10 SUBSECTION (C). IN THE CASE OF A MUNICIPALITY SEEKING TO BECOME
11 A MEMBER OF THE AUTHORITY, THE APPLICATION SHALL SET FORTH ALL
12 OF THE INFORMATION REQUIRED IN THE CASE OF ORIGINAL
13 INCORPORATION INSOFAR AS IT APPLIES TO THE INCOMING
14 MUNICIPALITY, INCLUDING THE NAME AND ADDRESS AND TERM OF OFFICE
15 OF THE FIRST MEMBER OR MEMBERS OF THE BOARD OF THE AUTHORITY
16 FROM THE INCOMING MUNICIPALITY AND, IF THERE IS TO BE A
17 REAPPORTIONMENT OF REPRESENTATION OR REVISION OF THE TERMS OF
18 OFFICE OF THE MEMBERS OF THE BOARD, THE NAMES, ADDRESSES AND
19 TERMS OF OFFICE OF ALL THE MEMBERS OF THE BOARD AS SO
20 REAPPORTIONED OR REVISED. THE APPLICATION IN ALL CASES SHALL BE
21 EXECUTED BY THE PROPER OFFICERS OF THE WITHDRAWING OR INCOMING
22 MUNICIPALITY UNDER ITS MUNICIPAL SEAL AND SHALL BE JOINED IN BY
23 THE PROPER OFFICERS OF THE GOVERNING BODY OF THE AUTHORITY AND,
24 IN THE CASE OF A MUNICIPALITY SEEKING TO BECOME A MEMBER OF THE
25 AUTHORITY, ALSO BY THE PROPER OFFICERS OF EACH OF THE
26 MUNICIPALITIES THAT ARE THEN MEMBERS OF THE AUTHORITY, PURSUANT
27 TO RESOLUTIONS BY THE MUNICIPAL AUTHORITIES OF THE PARTICIPATING
28 MUNICIPALITIES.
29 (E) CERTIFICATION OF WITHDRAWAL OR JOINDER.--IF THE
30 SECRETARY OF THE COMMONWEALTH FINDS THAT THE APPLICATION
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1 CONFORMS TO LAW, HE SHALL, BUT NOT PRIOR TO THE DAY SPECIFIED IN
2 THE NOTICE, ENDORSE HIS APPROVAL OF IT, AND, WHEN ALL PROPER
3 FEES AND CHARGES HAVE BEEN PAID, SHALL FILE THE SAME AND ISSUE A
4 CERTIFICATE OF WITHDRAWAL OR A CERTIFICATE OF JOINDER, AS THE
5 CASE MAY BE, TO WHICH SHALL BE ATTACHED A COPY OF THE APPROVED
6 APPLICATION. THE WITHDRAWAL OR JOINING SHALL BECOME EFFECTIVE
7 UPON THE ISSUING OF THE CERTIFICATE.
8 § 5605. AMENDMENT OF ARTICLES.
9 (A) PURPOSE.--AN AUTHORITY MAY AMEND ITS ARTICLES FOR THE
10 FOLLOWING REASONS:
11 (1) TO ADOPT A NEW NAME.
12 (2) TO MODIFY OR ADD A PROVISION TO INCREASE ITS TERM OF
13 EXISTENCE TO A DATE NOT EXCEEDING 50 YEARS FROM THE DATE OF
14 APPROVAL OF THE ARTICLES OF AMENDMENT.
15 (3) TO CHANGE, ADD TO OR DIMINISH ITS POWERS OR PURPOSES
16 OR TO SET FORTH DIFFERENT OR ADDITIONAL POWERS OR PURPOSES.
17 (4) TO INCREASE OR DECREASE THE NUMBER OF MEMBERS OF THE
18 BOARD OF THE AUTHORITY, TO REAPPORTION THE REPRESENTATION ON
19 THE BOARD OF THE AUTHORITY AND TO REVISE THE TERMS OF OFFICE
20 OF MEMBERS, ALL IN A MANNER CONSISTENT WITH THE PROVISIONS OF
21 SECTION 5610 (RELATING TO GOVERNING BODY).
22 (B) PROCEDURE.--EVERY AMENDMENT TO THE ARTICLES SHALL FIRST
23 BE PROPOSED BY THE BOARD BY THE ADOPTION OF A RESOLUTION SETTING
24 FORTH THE PROPOSED AMENDMENT AND DIRECTING THAT IT BE SUBMITTED
25 TO THE GOVERNING AUTHORITIES OF THE MUNICIPALITY OR
26 MUNICIPALITIES COMPOSING THE AUTHORITY. THE RESOLUTION SHALL
27 CONTAIN THE LANGUAGE OF THE PROPOSED AMENDMENT TO THE ARTICLES
28 BY PROVIDING THAT THE ARTICLES SHALL BE AMENDED SO AS TO READ AS
29 SET FORTH IN FULL IN THE RESOLUTION, THAT ANY PROVISION OF THE
30 ARTICLES BE AMENDED SO AS TO READ AS SET FORTH IN FULL IN THE
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1 RESOLUTION, OR THAT THE MATTER STATED IN THE RESOLUTION BE ADDED
2 TO OR STRICKEN FROM THE ARTICLES. AFTER THE AMENDMENTS HAVE BEEN
3 SUBMITTED TO THE MUNICIPALITY OR MUNICIPALITIES, SUCH
4 MUNICIPALITY OR MUNICIPALITIES SHALL ADOPT OR REJECT SUCH
5 AMENDMENT BY RESOLUTION OR ORDINANCE.
6 (C) EXECUTION AND VERIFICATION.--AFTER AN AMENDMENT HAS BEEN
7 ADOPTED BY THE MUNICIPALITY OR MUNICIPALITIES, ARTICLES OF
8 AMENDMENT SHALL BE EXECUTED UNDER THE SEAL OF THE AUTHORITY AND
9 VERIFIED BY TWO DULY AUTHORIZED OFFICERS OF THE CORPORATION AND
10 SHALL SET FORTH:
11 (1) THE NAME AND LOCATION OF THE REGISTERED OFFICE OF
12 THE AUTHORITY.
13 (2) THE ACT UNDER WHICH THE AUTHORITY WAS FORMED AND THE
14 DATE WHEN THE ORIGINAL ARTICLES WERE APPROVED AND FILED.
15 (3) THE RESOLUTION OR ORDINANCE OF THE MUNICIPALITY OR
16 MUNICIPALITIES ADOPTING THE AMENDMENT.
17 (4) THE AMENDMENT ADOPTED BY THE MUNICIPALITY OR
18 MUNICIPALITIES WHICH SHALL BE SET FORTH IN FULL.
19 (D) ADVERTISEMENT.--THE AUTHORITY SHALL ADVERTISE ITS
20 INTENTION TO FILE ARTICLES OF AMENDMENT WITH THE SECRETARY OF
21 THE COMMONWEALTH AS PROVIDED UNDER SECTION 5603 (RELATING TO
22 METHOD OF INCORPORATION) FOR FORMING AN AUTHORITY.
23 ADVERTISEMENTS SHALL APPEAR AT LEAST THREE DAYS PRIOR TO THE DAY
24 UPON WHICH THE ARTICLES OF AMENDMENT ARE PRESENTED TO THE
25 SECRETARY OF THE COMMONWEALTH AND SHALL SET FORTH BRIEFLY:
26 (1) THE NAME AND LOCATION OF THE REGISTERED OFFICE OF
27 THE AUTHORITY.
28 (2) A STATEMENT THAT THE ARTICLES OF AMENDMENT ARE TO BE
29 FILED UNDER THE PROVISIONS OF THIS CHAPTER.
30 (3) THE NATURE AND CHARACTER OF THE PROPOSED AMENDMENT.
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1 (4) THE TIME WHEN THE ARTICLES OF AMENDMENT WILL BE
2 FILED WITH THE SECRETARY OF THE COMMONWEALTH.
3 (E) FILING THE AMENDMENT.--THE ARTICLES OF AMENDMENT AND
4 PROOF OF THE REQUIRED ADVERTISEMENT SHALL BE DELIVERED BY THE
5 AUTHORITY OR ITS REPRESENTATIVE TO THE SECRETARY OF THE
6 COMMONWEALTH. IF THE SECRETARY OF THE COMMONWEALTH FINDS THAT
7 THE ARTICLES CONFORM TO LAW, HE SHALL FORTHWITH, BUT NOT PRIOR
8 TO THE DAY SPECIFIED IN THE ADVERTISEMENT REQUIRED IN SUBSECTION
9 (D), ENDORSE HIS APPROVAL OF IT AND, WHEN ALL FEES AND CHARGES
10 HAVE BEEN PAID, SHALL FILE THE ARTICLES AND ISSUE TO THE
11 AUTHORITY OR ITS REPRESENTATIVE A CERTIFICATE OF AMENDMENT TO
12 WHICH SHALL BE ATTACHED A COPY OF THE APPROVED ARTICLES.
13 § 5606. SCHOOL DISTRICT PROJECTS.
14 (A) MERGER AND CONSOLIDATION AUTHORIZED.--ANY TWO OR MORE
15 EXISTING AUTHORITIES, ALL THE PROJECTS OF ALL OF WHICH ARE
16 LEASED TO THE SAME SCHOOL DISTRICT, MAY BE MERGED INTO ONE
17 AUTHORITY, HEREINAFTER DESIGNATED AS THE SURVIVING AUTHORITY, OR
18 CONSOLIDATED INTO A NEW AUTHORITY.
19 (B) ARTICLES OF MERGER OR CONSOLIDATION.--ARTICLES OF MERGER
20 OR ARTICLES OF CONSOLIDATION, AS THE CASE MAY BE, SHALL FIRST BE
21 PROPOSED BY THE BOARD OF SCHOOL DIRECTORS OF THE SCHOOL DISTRICT
22 LEASING THE PROJECTS. THE GOVERNING BODY OF THE SCHOOL DISTRICT
23 AND OF ANY OTHER MUNICIPALITY OR MUNICIPALITIES INCORPORATING
24 ONE OR MORE OF THE EXISTING AUTHORITIES SHALL EACH ADOPT A
25 RESOLUTION WHICH SHALL CONTAIN THE LANGUAGE OF THE PROPOSED
26 MERGER OR CONSOLIDATION. THE ARTICLES OF MERGER OR CONSOLIDATION
27 SHALL BE SIGNED BY THE PROPER OFFICERS OF THE RESPECTIVE SCHOOL
28 DISTRICTS AND OTHER MUNICIPALITIES, IF ANY, AND UNDER THEIR
29 RESPECTIVE MUNICIPAL SEALS AND SHALL SET FORTH THE FOLLOWING:
30 (1) THE NAME OF THE SURVIVING OR NEW AUTHORITY.
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1 (2) THE LOCATION OF THE REGISTERED OFFICE OF THE
2 SURVIVING OR NEW AUTHORITY.
3 (3) THE NAMES AND ADDRESSES AND TERM OF OFFICE OF THE
4 MEMBERS OF THE BOARD OF THE SURVIVING OR NEW AUTHORITY AS
5 SPECIFIED IN THE PLAN OF MERGER OR CONSOLIDATION, AND THE
6 INITIAL TERMS OF OFFICE SHALL BE STAGGERED AS PROVIDED IN
7 THIS CHAPTER WITH RESPECT TO THE INCORPORATION OF AN
8 AUTHORITY.
9 (4) A STATEMENT INDICATING THE DATE ON WHICH EACH
10 EXISTING AUTHORITY WAS FORMED AND THE PURPOSE FOR WHICH IT
11 WAS FORMED, TAKEN FROM THE ARTICLES OF INCORPORATION, THE
12 NAME OF THE ORIGINAL INCORPORATING SCHOOL DISTRICT OR
13 DISTRICTS OR OTHER INCORPORATING MUNICIPALITY OR
14 MUNICIPALITIES AND THE NAME OF ANY SUCCESSOR TO ANY THEREOF.
15 (5) THE TIME AND PLACE OF THE MEETINGS OF THE GOVERNING
16 BODIES OF THE SCHOOL DISTRICT AND OTHER MUNICIPALITIES
17 PARTIES TO THE PLAN OF MERGER OR CONSOLIDATION.
18 (6) A STATEMENT OF THE PLAN OF MERGER.
19 (7) ANY CHANGES IN THE ARTICLES OF INCORPORATION OF THE
20 SURVIVING AUTHORITY IN THE CASE OF A MERGER AND A STATEMENT
21 OF THE ARTICLES OF INCORPORATION IN FULL IN THE CASE OF THE
22 NEW AUTHORITY TO BE FORMED, IN EACH CASE IN CONFORMITY WITH
23 THE PROVISIONS OF THIS CHAPTER RELATING TO THE INCORPORATION
24 OF AUTHORITIES, EXCEPT THAT ANY ITEM REQUIRED TO BE STATED
25 WHICH IS COVERED ELSEWHERE IN THE ARTICLES OF MERGER OR
26 CONSOLIDATION NEED NOT BE REPEATED.
27 (C) PUBLICATION OF RESOLUTION.--THE REORGANIZED SCHOOL
28 DISTRICT AND EACH OTHER MUNICIPALITY PARTY TO THE PLAN OF MERGER
29 OR CONSOLIDATION SHALL CAUSE A NOTICE OF THE RESOLUTION SETTING
30 FORTH THE MERGER OR CONSOLIDATION TO BE PUBLISHED AT LEAST ONE
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1 TIME IN THE LEGAL PERIODICAL OF THE COUNTY OR COUNTIES IN WHICH
2 THE SURVIVING AUTHORITY IS TO BE ORGANIZED AND AT LEAST ONE TIME
3 IN A NEWSPAPER PUBLISHED AND IN GENERAL CIRCULATION IN SUCH
4 COUNTY OR COUNTIES. THE NOTICE SHALL CONTAIN A BRIEF STATEMENT
5 OF THE SUBSTANCE OF THE RESOLUTION, INCLUDING THE SUBSTANCE OF
6 THE ARTICLES OF MERGER MAKING REFERENCE TO THIS CHAPTER, AND
7 SHALL STATE THAT ON A DAY CERTAIN, NOT LESS THAN THREE DAYS
8 AFTER PUBLICATION OF THE NOTICE, ARTICLES OF MERGER OR
9 CONSOLIDATION, SHALL BE FILED WITH THE SECRETARY OF THE
10 COMMONWEALTH. THE PUBLICATION SHALL BE SUFFICIENT COMPLIANCE
11 WITH THE LAWS OF THIS COMMONWEALTH OR ANY EXISTING LAWS DEALING
12 WITH PUBLICATION FOR MUNICIPALITIES.
13 (D) DOCUMENTATION.--THE ARTICLES OF MERGER OR CONSOLIDATION
14 SHALL BE FILED ON OR BEFORE THE DAY SPECIFIED IN THE
15 ADVERTISEMENT TO THE SECRETARY OF THE COMMONWEALTH, TOGETHER
16 WITH THE PROOF OF PUBLICATION OF THE NOTICE REQUIRED UNDER
17 SUBSECTION (C).
18 (E) CERTIFICATION OF MERGER OR CONSOLIDATION.--THE SECRETARY
19 OF THE COMMONWEALTH SHALL FILE THE ARTICLES OF MERGER OR
20 CONSOLIDATION AND THE PROOF OF ADVERTISEMENT REQUIRED IN
21 SUBSECTION (C) BUT NOT PRIOR TO THE DAY SPECIFIED IN THE
22 ADVERTISEMENT, CERTIFY THE DATE OF SUCH FILING WHEN ALL FEES AND
23 CHARGES HAVE BEEN PAID AND ISSUE TO THE SURVIVING OR NEW
24 AUTHORITY OR ITS REPRESENTATIVE A CERTIFICATE OF MERGER OR
25 CONSOLIDATION TO WHICH SHALL BE ATTACHED A COPY OF THE FILED
26 ARTICLES OF MERGER OR CONSOLIDATION.
27 (F) FILING THE ARTICLES OF MERGER OR CONSOLIDATION.--UPON
28 THE FILING OF THE ARTICLES OF MERGER OR THE ARTICLES OF
29 CONSOLIDATION BY THE SECRETARY OF THE COMMONWEALTH, THE MERGER
30 OR CONSOLIDATION SHALL BE EFFECTIVE, AND, IN THE CASE OF A
20010S0780B1186 - 56 -
1 CONSOLIDATION, THE NEW AUTHORITY SHALL COME INTO EXISTENCE, AND,
2 IN EITHER CASE, THE ARTICLES OF MERGER AND CONSOLIDATION SHALL
3 CONSTITUTE THE ARTICLES OF INCORPORATION OF THE SURVIVING OR NEW
4 AUTHORITY, AND THE REORGANIZED SCHOOL DISTRICT, LESSEE OF THE
5 PROJECTS, SHALL BE DEEMED TO BE THE INCORPORATING MUNICIPALITY
6 OF THE AUTHORITY.
7 (G) CREATION OF SURVIVING OR NEW AUTHORITY.--UPON THE MERGER
8 OR CONSOLIDATION BECOMING EFFECTIVE, THE SEVERAL EXISTING
9 AUTHORITIES TO THE PLAN OF MERGER OR CONSOLIDATION SHALL BECOME
10 A SINGLE AUTHORITY, WHICH IN THE CASE OF A MERGER SHALL BE THAT
11 AUTHORITY DESIGNATED IN THE ARTICLES OF MERGER AS THE SURVIVING
12 AUTHORITY AND IN THE CASE OF A CONSOLIDATION SHALL BE A NEW
13 AUTHORITY AS PROVIDED IN THE ARTICLES OF CONSOLIDATION. THE
14 SEPARATE EXISTENCE OF ALL EXISTING AUTHORITIES NAMED IN THE
15 ARTICLES OF MERGER OR CONSOLIDATION SHALL CEASE, EXCEPT THAT OF
16 THE SURVIVING AUTHORITY IN THE CASE OF A MERGER.
17 (H) DISPOSITION OF PROPERTY AND ACCOUNTS.--ALL OF THE
18 PROPERTY, REAL, PERSONAL AND MIXED AND ALL INTERESTS THEREIN OF
19 EACH, OF THE EXISTING AUTHORITIES NAMED IN THE PLAN OF MERGER OR
20 CONSOLIDATION, ALL DEBTS DUE AND WHATEVER AMOUNT DUE TO ANY OF
21 THEM, INCLUDING THEIR RESPECTIVE RIGHT, TITLE AND INTEREST IN
22 AND TO ALL LEASE RENTALS, SINKING FUNDS ON DEPOSIT, ALL FUNDS
23 DEPOSITED UNDER LEASE OR TRUST INSTRUMENTS SHALL BE TAKEN AND
24 DEEMED TO BE TRANSFERRED TO AND VESTED IN THE SURVIVING OR NEW
25 AUTHORITY, AS THE CASE MAY BE, WITHOUT FURTHER ACT OR DEED.
26 (I) CONTINUATION OF CONTRACTS.--THE SURVIVING AUTHORITY OR
27 THE NEW AUTHORITY SHALL BE RESPONSIBLE FOR THE LIABILITIES AND
28 OBLIGATIONS OF EACH OF THE EXISTING AUTHORITIES SO MERGED OR
29 CONSOLIDATED, BUT SHALL BE SUBJECT TO THE SAME LIMITATIONS,
30 PLEDGES, ASSIGNMENTS, LIENS, CHARGES, TERMS AND CONDITIONS AS TO
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1 REVENUES AND RESTRICTIONS AS TO AND LEASES OF PROPERTIES AS WERE
2 APPLICABLE TO EACH EXISTING AUTHORITY. THE LIABILITIES OF THE
3 MERGING OR CONSOLIDATING AUTHORITIES OF THE MEMBERS OF THEIR
4 BOARDS OR OFFICERS SHALL NOT BE AFFECTED NOR SHALL THE RIGHTS OF
5 CREDITORS THEREOF OR ANY PERSONS DEALING WITH SUCH AUTHORITIES
6 OR ANY LIENS UPON THE PROPERTY OF SUCH AUTHORITIES OR ANY
7 OUTSTANDING BONDS BE IMPAIRED BY THE MERGER OR CONSOLIDATION,
8 AND ANY CLAIM EXISTING OR ACTION OR PROCEEDING PENDING BY OR
9 AGAINST ANY SUCH AUTHORITIES SHALL BE PROSECUTED TO JUDGMENT AS
10 IF SUCH MERGER OR CONSOLIDATION HAD NOT TAKEN PLACE, OR THE
11 SURVIVING AUTHORITY OR THE NEW AUTHORITY MAY BE PROCEEDED
12 AGAINST OR SUBSTITUTED IN ITS PLACE.
13 § 5607. PURPOSES AND POWERS.
14 (A) SCOPE OF PROJECTS PERMITTED.--EVERY AUTHORITY
15 INCORPORATED UNDER THIS CHAPTER SHALL BE A BODY CORPORATE AND
16 POLITIC AND SHALL BE FOR THE PURPOSES OF: FINANCING WORKING
17 CAPITAL; ACQUIRING, HOLDING, CONSTRUCTING, IMPROVING,
18 MAINTAINING AND OPERATING, OWNING OR LEASING, EITHER IN THE
19 CAPACITY OF LESSOR OR LESSEE, PROJECTS OF THE FOLLOWING KIND AND
20 CHARACTER; AND PROVIDING FINANCING FOR INSURANCE RESERVES:
21 (1) EQUIPMENT TO BE LEASED BY AN AUTHORITY TO THE
22 MUNICIPALITY OR MUNICIPALITIES THAT ORGANIZED IT OR TO ANY
23 MUNICIPALITY OR SCHOOL DISTRICT LOCATED WHOLLY OR PARTIALLY
24 WITHIN THE BOUNDARIES OF THE MUNICIPALITY OR MUNICIPALITIES
25 THAT ORGANIZED IT.
26 (2) BUILDINGS TO BE DEVOTED WHOLLY OR PARTIALLY FOR
27 PUBLIC USES, INCLUDING PUBLIC SCHOOL BUILDINGS, AND
28 FACILITIES FOR THE CONDUCT OF JUDICIAL PROCEEDINGS AND FOR
29 REVENUE-PRODUCING PURPOSES.
30 (3) TRANSPORTATION, MARKETING, SHOPPING, TERMINALS,
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1 BRIDGES, TUNNELS, FLOOD CONTROL PROJECTS, HIGHWAYS, PARKWAYS,
2 TRAFFIC DISTRIBUTION CENTERS, PARKING SPACES, AIRPORTS AND
3 ALL FACILITIES NECESSARY OR INCIDENT THERETO.
4 (4) PARKS, RECREATION GROUNDS AND FACILITIES.
5 (5) SEWERS, SEWER SYSTEMS OR PARTS THEREOF.
6 (6) SEWAGE TREATMENT WORKS, INCLUDING WORKS FOR TREATING
7 AND DISPOSING OF INDUSTRIAL WASTE.
8 (7) FACILITIES AND EQUIPMENT FOR THE COLLECTION, REMOVAL
9 OR DISPOSAL OF ASHES, GARBAGE, RUBBISH AND OTHER REFUSE
10 MATERIALS BY INCINERATION, LANDFILL OR OTHER METHODS.
11 (8) STEAM HEATING PLANTS AND DISTRIBUTION SYSTEMS.
12 (9) INCINERATOR PLANTS.
13 (10) WATERWORKS, WATER SUPPLY WORKS, WATER DISTRIBUTION
14 SYSTEMS.
15 (11) FACILITIES TO PRODUCE STEAM WHICH IS USED BY THE
16 AUTHORITY OR IS SOLD ON A CONTRACT BASIS FOR INDUSTRIAL OR
17 SIMILAR USE OR ON A SALE-FOR-RESALE BASIS TO ONE OR MORE
18 ENTITIES AUTHORIZED TO SELL STEAM TO THE PUBLIC, PROVIDED
19 THAT SUCH FACILITIES HAVE BEEN APPROVED BY RESOLUTION OR
20 ORDINANCE ADOPTED BY THE GOVERNING BODY OF THE MUNICIPALITY
21 OR MUNICIPALITIES ORGANIZING SUCH AUTHORITY AND THAT THE
22 APPROVAL DOES NOT OBLIGATE THE TAXING POWER OF THE
23 MUNICIPALITY IN ANY WAY.
24 (12) FACILITIES FOR GENERATING SURPLUS ELECTRIC POWER
25 WHICH ARE RELATED TO INCINERATOR PLANTS, DAMS, WATER SUPPLY
26 WORKS, WATER DISTRIBUTION SYSTEMS OR SEWAGE TREATMENT PLANTS
27 PURSUANT, WHERE APPLICABLE, TO SECTION 3 OF THE FEDERAL POWER
28 ACT (41 STAT. 1063, 16 U.S.C. § 796) AND SECTION 210 OF THE
29 PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978 (PUBLIC LAW
30 95-617, 16 U.S.C. § 824A-3) OR TITLE IV OF THE PUBLIC UTILITY
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1 REGULATORY POLICIES ACT OF 1978 (PUBLIC LAW 95-617, 16 U.S.C.
2 §§ 2701 TO 2708), IF:
3 (I) ELECTRIC POWER GENERATED FROM THE FACILITIES IS
4 SOLD OR DISTRIBUTED ONLY ON A SALE-FOR-RESALE BASIS TO
5 ONE OR MORE ENTITIES AUTHORIZED TO SELL ELECTRIC POWER TO
6 THE PUBLIC;
7 (II) THE FACILITIES HAVE BEEN APPROVED BY RESOLUTION
8 OR ORDINANCE ADOPTED BY THE GOVERNING BODY OF THE
9 MUNICIPALITY OR MUNICIPALITIES ORGANIZING THE AUTHORITY
10 AND THE APPROVAL DOES NOT OBLIGATE THE TAXING POWER OF
11 THE MUNICIPALITY IN ANY WAY; AND
12 (III) THE INCINERATOR PLANTS, DAMS, WATER SUPPLY
13 WORKS, WATER DISTRIBUTION SYSTEMS OR SEWAGE TREATMENT
14 PLANTS ARE OR WILL BE LOCATED WITHIN OR CONTIGUOUS WITH A
15 COUNTY IN WHICH AT LEAST ONE OF THE MUNICIPALITIES
16 ORGANIZING THE AUTHORITY IS LOCATED, EXCEPT THAT THIS
17 SUBPARAGRAPH SHALL NOT APPLY TO INCINERATOR PLANTS, DAMS,
18 WATER SUPPLY WORKS, WATER DISTRIBUTION SYSTEMS OR SEWAGE
19 TREATMENT PLANTS LOCATED IN ANY COUNTY WHICH HAVE BEEN OR
20 WILL BE CONSTRUCTED BY OR ACQUIRED BY THE AUTHORITY TO
21 PERFORM FUNCTIONS, THE PRIMARY PURPOSES OF WHICH ARE
22 OTHER THAN THAT OF GENERATION OF ELECTRIC POWER, FOR
23 WHICH THE AUTHORITY HAS BEEN ORGANIZED.
24 (13) SWIMMING POOLS, PLAYGROUNDS, LAKES AND LOW-HEAD
25 DAMS.
26 (14) HOSPITALS AND HEALTH CENTERS.
27 (15) BUILDINGS AND FACILITIES FOR PRIVATE, NONPROFIT,
28 NONSECTARIAN SECONDARY SCHOOLS, COLLEGES AND UNIVERSITIES,
29 STATE-RELATED UNIVERSITIES AND COMMUNITY COLLEGES, WHICH ARE
30 DETERMINED BY THE AUTHORITY TO BE ELIGIBLE EDUCATIONAL
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1 INSTITUTIONS, PROVIDED THAT SUCH BUILDINGS AND FACILITIES
2 SHALL HAVE BEEN APPROVED BY RESOLUTION OR ORDINANCE ADOPTED
3 BY THE GOVERNING BODY OF THE MUNICIPALITY OR MUNICIPALITIES
4 ORGANIZING THE AUTHORITY AND THAT THE APPROVAL DOES NOT
5 OBLIGATE THE TAXING POWER OF THE GOVERNING BODY IN ANY WAY.
6 (16) MOTOR BUSES FOR PUBLIC USE, WHEN SUCH MOTOR BUSES
7 ARE TO BE USED WITHIN ANY MUNICIPALITY, AND SUBWAYS.
8 (17) INDUSTRIAL DEVELOPMENT PROJECTS, INCLUDING, BUT NOT
9 LIMITED TO, PROJECTS TO RETAIN OR DEVELOP EXISTING INDUSTRIES
10 AND THE DEVELOPMENT OF NEW INDUSTRIES, THE DEVELOPMENT AND
11 ADMINISTRATION OF BUSINESS IMPROVEMENTS AND ADMINISTRATIVE
12 SERVICES RELATED THERETO.
13 (B) LIMITATIONS.--THIS SECTION IS SUBJECT TO THE FOLLOWING
14 LIMITATIONS:
15 (1) AN AUTHORITY CREATED BY A SCHOOL DISTRICT OR SCHOOL
16 DISTRICTS SHALL HAVE THE POWER ONLY TO ACQUIRE, HOLD,
17 CONSTRUCT, IMPROVE, MAINTAIN, OPERATE AND LEASE PUBLIC SCHOOL
18 BUILDINGS AND OTHER SCHOOL PROJECTS ACQUIRED, CONSTRUCTED OR
19 IMPROVED FOR PUBLIC SCHOOL PURPOSES.
20 (2) THE PURPOSE AND INTENT OF THIS CHAPTER BEING TO
21 BENEFIT THE PEOPLE OF THE COMMONWEALTH BY, AMONG OTHER
22 THINGS, INCREASING THEIR COMMERCE, HEALTH, SAFETY AND
23 PROSPERITY, AND NOT TO UNNECESSARILY BURDEN OR INTERFERE WITH
24 EXISTING BUSINESS BY THE ESTABLISHMENT OF COMPETITIVE
25 ENTERPRISES; NONE OF THE POWERS GRANTED BY THIS CHAPTER SHALL
26 BE EXERCISED IN THE CONSTRUCTION, FINANCING, IMPROVEMENT,
27 MAINTENANCE, EXTENSION OR OPERATION OF ANY PROJECT OR
28 PROJECTS OR PROVIDING FINANCING FOR INSURANCE RESERVES WHICH
29 IN WHOLE OR IN PART SHALL DUPLICATE OR COMPETE WITH EXISTING
30 ENTERPRISES SERVING SUBSTANTIALLY THE SAME PURPOSES. THIS
20010S0780B1186 - 61 -
1 LIMITATION SHALL NOT APPLY TO THE EXERCISE OF THE POWERS
2 GRANTED UNDER THIS SECTION:
3 (I) FOR FACILITIES AND EQUIPMENT FOR THE COLLECTION,
4 REMOVAL OR DISPOSAL OF ASHES, GARBAGE, RUBBISH AND OTHER
5 REFUSE MATERIALS BY INCINERATION, LANDFILL OR OTHER
6 METHODS, IF EACH MUNICIPALITY ORGANIZING OR INTENDING TO
7 USE THE FACILITIES OF AN AUTHORITY HAVING SUCH POWERS
8 SHALL DECLARE BY RESOLUTION OR ORDINANCE THAT IT IS
9 DESIRABLE FOR THE HEALTH AND SAFETY OF THE PEOPLE OF SUCH
10 MUNICIPALITY THAT IT USE THE FACILITIES OF THE AUTHORITY
11 AND STATE IF ANY CONTRACT BETWEEN SUCH MUNICIPALITY AND
12 ANY OTHER PERSON, FIRM OR CORPORATION FOR THE COLLECTION,
13 REMOVAL OR DISPOSAL OF ASHES, GARBAGE, RUBBISH AND OTHER
14 REFUSE MATERIAL HAS BY ITS TERMS EXPIRED OR IS TERMINABLE
15 AT THE OPTION OF THE MUNICIPALITY OR WILL EXPIRE WITHIN
16 SIX MONTHS FROM THE DATE SUCH ORDINANCE BECOMES
17 EFFECTIVE;
18 (II) FOR INDUSTRIAL DEVELOPMENT PROJECTS IF THE
19 AUTHORITY DOES NOT DEVELOP INDUSTRIAL PROJECTS WHICH WILL
20 COMPETE WITH EXISTING INDUSTRIES;
21 (III) FOR AUTHORITIES CREATED FOR THE PURPOSE OF
22 PROVIDING BUSINESS IMPROVEMENTS AND ADMINISTRATIVE
23 SERVICES IF EACH MUNICIPALITY ORGANIZING AN AUTHORITY FOR
24 SUCH A PROJECT SHALL DECLARE BY RESOLUTION OR ORDINANCE
25 THAT IT IS DESIRABLE FOR THE ENTIRE LOCAL GOVERNMENT UNIT
26 TO IMPROVE THE BUSINESS DISTRICT;
27 (IV) TO HOSPITAL PROJECTS OR HEALTH CENTERS TO BE
28 LEASED TO OR FINANCED WITH LOANS TO PUBLIC HOSPITALS,
29 NONPROFIT CORPORATION HEALTH CENTERS OR NONPROFIT
30 HOSPITAL CORPORATIONS SERVING THE PUBLIC OR TO SCHOOL
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1 BUILDING PROJECTS AND FACILITIES TO BE LEASED TO OR
2 FINANCED WITH LOANS TO PRIVATE, NONPROFIT, NONSECTARIAN
3 SECONDARY SCHOOLS, COLLEGES AND UNIVERSITIES, STATE-
4 RELATED UNIVERSITIES AND COMMUNITY COLLEGES, OR TO
5 FACILITIES, AS LIMITED UNDER THE PROVISIONS OF THIS
6 SECTION, TO PRODUCE STEAM OR TO GENERATE ELECTRIC POWER,
7 IF EACH MUNICIPALITY ORGANIZING AN AUTHORITY FOR SUCH A
8 PROJECT SHALL DECLARE BY RESOLUTION OR ORDINANCE THAT IT
9 IS DESIRABLE FOR THE HEALTH, SAFETY AND WELFARE OF THE
10 PEOPLE IN THE AREA SERVED BY SUCH FACILITIES TO HAVE SUCH
11 FACILITIES PROVIDED BY OR FINANCED THROUGH AN AUTHORITY;
12 (V) TO PROVIDE FINANCING FOR INSURANCE RESERVES IF
13 EACH MUNICIPALITY OR AUTHORITY INTENDING TO USE ANY
14 PROCEEDS THEREOF SHALL DECLARE BY RESOLUTION OR ORDINANCE
15 THAT IT IS DESIRABLE FOR THE HEALTH, SAFETY AND WELFARE
16 OF THE PEOPLE IN SUCH LOCAL GOVERNMENT UNIT OR SERVED BY
17 SUCH AUTHORITY; OR
18 (VI) TO PROJECTS FOR FINANCING WORKING CAPITAL.
19 (3) IT IS THE INTENT OF THIS CHAPTER IN SPECIFYING AND
20 DEFINING THE AUTHORIZED PURPOSES AND PROJECTS OF AN AUTHORITY
21 TO PERMIT THE AUTHORITY TO BENEFIT THE PEOPLE OF THIS
22 COMMONWEALTH BY, AMONG OTHER THINGS, INCREASING THEIR
23 COMMERCE, HEALTH, SAFETY AND PROSPERITY WHILE NOT
24 UNNECESSARILY BURDENING OR INTERFERING WITH ANY MUNICIPALITY
25 WHICH HAS NOT INCORPORATED OR JOINED THAT AUTHORITY.
26 THEREFORE, NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
27 CHAPTER, AN AUTHORITY SHALL NOT HAVE AS ITS PURPOSE AND SHALL
28 NOT UNDERTAKE AS A PROJECT SOLELY FOR REVENUE-PRODUCING
29 PURPOSES THE ACQUIRING OF BUILDINGS, FACILITIES OR TRACTS OF
30 LAND WHICH, IN THE CASE OF AN AUTHORITY INCORPORATED OR
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1 JOINED BY A COUNTY OR COUNTIES, ARE LOCATED EITHER WITHIN OR
2 OUTSIDE THE BOUNDARIES OF THE COUNTY OR COUNTIES AND, IN THE
3 CASE OF ALL OTHER AUTHORITIES, ARE LOCATED OUTSIDE THE
4 BOUNDARIES OF THE MUNICIPALITY OR MUNICIPALITIES THAT
5 INCORPORATED OR JOINED THE AUTHORITY, UNLESS EITHER:
6 (I) THE GOVERNING BODY OF EACH MUNICIPALITY IN WHICH
7 THE PROJECT WILL BE UNDERTAKEN HAS BY RESOLUTION
8 EVIDENCED ITS APPROVAL; OR
9 (II) IN CASES WHERE THE PROPERTY ACQUIRED IS NOT
10 SUBJECT TO TAX ABATEMENT, THE AUTHORITY COVENANTS AND
11 AGREES WITH EACH MUNICIPALITY IN WHICH THE AUTHORITY WILL
12 ACQUIRE REAL PROPERTY AS PART OF THE PROJECT EITHER TO
13 MAKE ANNUAL PAYMENTS IN LIEU OF REAL ESTATE TAXES AND
14 SPECIAL ASSESSMENTS FOR AMOUNTS AND TIME PERIODS
15 SPECIFIED IN THE AGREEMENT OR TO PAY ANNUALLY THE AMOUNT
16 OF REAL ESTATE TAXES AND SPECIAL ASSESSMENTS WHICH WOULD
17 BE PAYABLE IF THE REAL PROPERTY SO ACQUIRED WERE FULLY
18 TAXABLE AND SUBJECT TO SPECIAL ASSESSMENTS.
19 (C) EFFECT OF SPECIFICITY.--THE MUNICIPALITY OR
20 MUNICIPALITIES ORGANIZING SUCH AN AUTHORITY MAY, IN THE
21 RESOLUTION OR ORDINANCE SIGNIFYING THEIR INTENTION SO TO DO, OR
22 FROM TIME TO TIME BY SUBSEQUENT RESOLUTION OR ORDINANCE, SPECIFY
23 THE PROJECT OR PROJECTS TO BE UNDERTAKEN BY THE AUTHORITY, AND
24 NO OTHER PROJECTS SHALL BE UNDERTAKEN BY THE AUTHORITY THAN
25 THOSE SO SPECIFIED. IF THE MUNICIPAL AUTHORITIES ORGANIZING AN
26 AUTHORITY FAIL TO SPECIFY THE PROJECT OR PROJECTS TO BE
27 UNDERTAKEN, THEN THE AUTHORITY SHALL BE DEEMED TO HAVE ALL THE
28 POWERS GRANTED BY THIS CHAPTER.
29 (D) POWERS.--EVERY AUTHORITY MAY EXERCISE ALL POWERS
30 NECESSARY OR CONVENIENT FOR THE CARRYING OUT OF THE PURPOSES SET
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1 FORTH IN THIS SECTION, INCLUDING, BUT WITHOUT LIMITING THE
2 GENERALITY OF THE FOREGOING, THE FOLLOWING RIGHTS AND POWERS:
3 (1) TO HAVE EXISTENCE FOR A TERM OF 50 YEARS AND FOR
4 SUCH FURTHER PERIOD OR PERIODS AS MAY BE PROVIDED IN ARTICLES
5 OF AMENDMENT APPROVED UNDER SECTION 5605(E) (RELATING TO
6 AMENDMENT OF ARTICLES).
7 (2) TO SUE AND BE SUED, IMPLEAD AND BE IMPLEADED,
8 COMPLAIN AND DEFEND IN ALL COURTS.
9 (3) TO ADOPT, USE AND ALTER AT WILL, A CORPORATE SEAL.
10 (4) TO ACQUIRE, PURCHASE, HOLD, LEASE AS LESSEE AND USE
11 ANY FRANCHISE, PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR
12 INTANGIBLE, OR ANY INTEREST THEREIN NECESSARY OR DESIRABLE
13 FOR CARRYING OUT THE PURPOSES OF THE AUTHORITY, AND TO SELL,
14 LEASE AS LESSOR, TRANSFER AND DISPOSE OF ANY PROPERTY OR
15 INTEREST THEREIN AT ANY TIME ACQUIRED BY IT.
16 (5) TO ACQUIRE BY PURCHASE, LEASE OR OTHERWISE AND TO
17 CONSTRUCT, IMPROVE, MAINTAIN, REPAIR AND OPERATE PROJECTS.
18 (6) TO FINANCE PROJECTS BY MAKING LOANS, WHICH MAY BE
19 EVIDENCED BY AND SECURED AS MAY BE PROVIDED IN LOAN
20 AGREEMENTS, MORTGAGES, SECURITY AGREEMENTS OR ANY OTHER
21 CONTRACTS, INSTRUMENTS OR AGREEMENTS, WHICH CONTRACTS,
22 INSTRUMENTS OR AGREEMENTS MAY CONTAIN SUCH PROVISIONS AS THE
23 AUTHORITY SHALL DEEM NECESSARY OR DESIRABLE FOR THE SECURITY
24 OR PROTECTION OF THE AUTHORITY OR ITS BONDHOLDERS.
25 (7) TO MAKE BYLAWS FOR THE MANAGEMENT AND REGULATION OF
26 ITS AFFAIRS.
27 (8) TO APPOINT OFFICERS, AGENTS, EMPLOYEES AND SERVANTS,
28 TO PRESCRIBE THEIR DUTIES AND TO FIX THEIR COMPENSATION.
29 (9) TO FIX, ALTER, CHARGE AND COLLECT RATES AND OTHER
30 CHARGES IN THE AREA SERVED BY ITS FACILITIES AT REASONABLE
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1 AND UNIFORM RATES TO BE DETERMINED EXCLUSIVELY BY IT, FOR THE
2 PURPOSE OF PROVIDING FOR THE PAYMENT OF THE EXPENSES OF THE
3 AUTHORITY, THE CONSTRUCTION, IMPROVEMENT, REPAIR, MAINTENANCE
4 AND OPERATION OF ITS FACILITIES AND PROPERTIES, AND, IN THE
5 CASE OF AN AUTHORITY CREATED FOR THE PURPOSE OF MAKING
6 BUSINESS IMPROVEMENTS OR PROVIDING ADMINISTRATIVE SERVICES, A
7 CHARGE FOR SUCH SERVICES WHICH IS TO BE BASED ON ACTUAL
8 BENEFITS AND WHICH MAY BE MEASURED ON, AMONG OTHER THINGS,
9 GROSS SALES OR GROSS OR NET PROFITS, THE PAYMENT OF THE
10 PRINCIPAL OF AND INTEREST ON ITS OBLIGATIONS, AND TO FULFILL
11 THE TERMS AND PROVISIONS OF ANY AGREEMENTS MADE WITH THE
12 PURCHASERS OR HOLDERS OF ANY SUCH OBLIGATIONS, OR WITH A
13 MUNICIPALITY SERVED OR TO BE SERVED BY THE AUTHORITY AND TO
14 DETERMINE BY ITSELF EXCLUSIVELY THE SERVICES AND IMPROVEMENTS
15 REQUIRED TO PROVIDE ADEQUATE, SAFE AND REASONABLE SERVICE,
16 INCLUDING EXTENSIONS THEREOF, IN THE AREAS SERVED. IF THE
17 SERVICE AREA INCLUDES MORE THAN ONE MUNICIPALITY, THE
18 REVENUES FROM ANY PROJECT SHALL NOT BE EXPENDED DIRECTLY OR
19 INDIRECTLY ON ANY OTHER PROJECT UNLESS SUCH EXPENDITURES ARE
20 MADE FOR THE BENEFIT OF THE ENTIRE SERVICE AREA. ANY PERSON
21 QUESTIONING THE REASONABLENESS OR UNIFORMITY OF A RATE FIXED
22 BY AN AUTHORITY OR THE ADEQUACY, SAFETY AND REASONABLENESS OF
23 THE AUTHORITY'S SERVICES, INCLUDING EXTENSIONS THEREOF, MAY
24 BRING SUIT AGAINST THE AUTHORITY IN THE COURT OF COMMON PLEAS
25 OF THE COUNTY WHERE THE PROJECT IS LOCATED OR, IF THE PROJECT
26 IS LOCATED IN MORE THAN ONE COUNTY, IN THE COURT OF COMMON
27 PLEAS OF THE COUNTY WHERE THE PRINCIPAL OFFICE OF THE PROJECT
28 IS LOCATED. THE COURT OF COMMON PLEAS SHALL HAVE EXCLUSIVE
29 JURISDICTION TO DETERMINE QUESTIONS INVOLVING RATES OR
30 SERVICE. EXCEPT IN MUNICIPAL CORPORATIONS HAVING A POPULATION
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1 DENSITY OF 300 PERSONS OR MORE PER SQUARE MILE, ALL OWNERS OF
2 REAL PROPERTY IN EIGHTH CLASS COUNTIES MAY DECLINE IN WRITING
3 THE SERVICES OF A SOLID WASTE AUTHORITY.
4 (10) IN THE CASE OF AN AUTHORITY WHICH HAS AGREED TO
5 PROVIDE WATER SERVICE THROUGH A SEPARATE METER AND SEPARATE
6 SERVICE LINE TO A RESIDENTIAL DWELLING UNIT IN WHICH THE
7 OWNER DOES NOT RESIDE, TO ENFORCE THE OWNER'S DUTY TO PAY A
8 TENANT'S BILL FOR SERVICE RENDERED TO THE TENANT BY THE
9 AUTHORITY ONLY IF THE AUTHORITY NOTIFIES THE OWNER AND THE
10 TENANT WITHIN 30 DAYS AFTER THE BILL FIRST BECOMES OVERDUE.
11 NOTIFICATION SHALL BE PROVIDED BY FIRST CLASS MAIL TO THE
12 ADDRESS OF THE OWNER PROVIDED TO THE AUTHORITY BY THE OWNER
13 AND TO THE BILLING ADDRESS OF THE TENANT, RESPECTIVELY.
14 NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO REQUIRE AN
15 AUTHORITY TO TERMINATE SERVICE TO A TENANT, AND THE OWNER
16 SHALL NOT BE LIABLE FOR ANY SERVICE WHICH THE AUTHORITY
17 PROVIDES TO THE TENANT 90 OR MORE DAYS AFTER THE TENANT'S
18 BILL FIRST BECOMES DUE UNLESS THE AUTHORITY HAS BEEN
19 PREVENTED BY COURT ORDER FROM TERMINATING SERVICE TO THAT
20 TENANT.
21 (11) IN THE CASE OF AN AUTHORITY WHICH HAS AGREED TO
22 PROVIDE SEWER SERVICE TO A RESIDENTIAL DWELLING UNIT IN WHICH
23 THE OWNER DOES NOT RESIDE, TO ENFORCE THE OWNER'S DUTY TO PAY
24 A TENANT'S BILL FOR SERVICE RENDERED BY THE AUTHORITY TO THE
25 TENANT. THE AUTHORITY SHALL NOTIFY THE OWNER AND THE TENANT
26 WITHIN 30 DAYS AFTER THE TENANT'S BILL FOR THAT SERVICE FIRST
27 BECOMES OVERDUE. NOTIFICATION SHALL BE PROVIDED BY FIRST
28 CLASS MAIL TO THE ADDRESS OF THE OWNER PROVIDED TO THE
29 AUTHORITY BY THE OWNER AND TO THE BILLING ADDRESS OF THE
30 TENANT, RESPECTIVELY. NOTHING IN THIS PARAGRAPH SHALL BE
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1 CONSTRUED TO RELIEVE THE OWNER OF LIABILITY FOR SUCH SERVICE
2 UNLESS THE AUTHORITY FAILS TO PROVIDE THE NOTICE REQUIRED IN
3 THIS PARAGRAPH.
4 (12) TO BORROW MONEY, MAKE AND ISSUE NEGOTIABLE NOTES,
5 BONDS, REFUNDING BONDS AND OTHER EVIDENCES OF INDEBTEDNESS OR
6 OBLIGATIONS, HEREINAFTER CALLED BONDS, OF THE AUTHORITY.
7 BONDS SHALL HAVE A MATURITY DATE NOT LONGER THAN 40 YEARS
8 FROM THE DATE OF ISSUE, EXCEPT THAT NO REFUNDING BONDS SHALL
9 HAVE A MATURITY DATE LATER THAN THE LIFE OF THE AUTHORITY;
10 ALSO, TO SECURE THE PAYMENT OF THE BONDS OR ANY PART THEREOF
11 BY PLEDGE OR DEED OF TRUST OF ALL OR ANY OF ITS REVENUES AND
12 RECEIPTS; TO MAKE AGREEMENTS WITH THE PURCHASERS OR HOLDERS
13 OF THE BONDS, OR WITH OTHERS IN CONNECTION WITH ANY BONDS,
14 WHETHER ISSUED OR TO BE ISSUED, AS THE AUTHORITY SHALL DEEM
15 ADVISABLE; AND IN GENERAL TO PROVIDE FOR THE SECURITY FOR THE
16 BONDS AND THE RIGHTS OF THE BONDHOLDERS. IN RESPECT TO ANY
17 PROJECT CONSTRUCTED AND OPERATED UNDER AGREEMENT WITH ANY
18 AUTHORITY OR ANY PUBLIC AUTHORITY OF ANY ADJOINING STATE, TO
19 BORROW MONEY AND ISSUE NOTES, BONDS AND OTHER EVIDENCES OF
20 INDEBTEDNESS AND OBLIGATIONS JOINTLY WITH THAT AUTHORITY.
21 NOTWITHSTANDING ANY OF THE FOREGOING, NO AUTHORITY SHALL
22 BORROW MONEY ON OBLIGATIONS TO BE PAID PRIMARILY OUT OF LEASE
23 RENTALS OR OTHER CURRENT REVENUES OTHER THAN CHARGES MADE TO
24 THE PUBLIC FOR THE USE OF THE CAPITAL PROJECTS FINANCED IF
25 THE NET DEBT OF THE LESSEE MUNICIPALITY OR MUNICIPALITIES
26 SHALL EXCEED ANY LIMIT PROVIDED BY ANY LAW OF THE
27 COMMONWEALTH.
28 (13) TO MAKE CONTRACTS OF EVERY NAME AND NATURE AND TO
29 EXECUTE ALL INSTRUMENTS NECESSARY OR CONVENIENT FOR THE
30 CARRYING ON OF ITS BUSINESS.
20010S0780B1186 - 68 -
1 (14) WITHOUT LIMITATION OF THE FOREGOING, TO BORROW
2 MONEY AND ACCEPT GRANTS FROM AND TO ENTER INTO CONTRACTS,
3 LEASES OR OTHER TRANSACTIONS WITH ANY FEDERAL AGENCY, THE
4 COMMONWEALTH OR A MUNICIPALITY, SCHOOL DISTRICT, CORPORATION
5 OR AUTHORITY.
6 (15) TO HAVE THE POWER OF EMINENT DOMAIN.
7 (16) TO PLEDGE, HYPOTHECATE OR OTHERWISE ENCUMBER ALL OR
8 ANY OF THE REVENUES OR RECEIPTS OF THE AUTHORITY AS SECURITY
9 FOR ALL OR ANY OF THE OBLIGATIONS OF THE AUTHORITY.
10 (17) TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT
11 FOR THE PROMOTION OF ITS BUSINESS AND THE GENERAL WELFARE OF
12 THE AUTHORITY TO CARRY OUT THE POWERS GRANTED TO IT BY THIS
13 CHAPTER OR OTHER LAW.
14 (18) TO CONTRACT WITH ANY MUNICIPALITY, CORPORATION OR A
15 PUBLIC AUTHORITY OF THIS AND AN ADJOINING STATE, ON TERMS AS
16 THE AUTHORITY SHALL DEEM PROPER, FOR THE CONSTRUCTION AND
17 OPERATION OF ANY PROJECT WHICH IS PARTLY IN THIS COMMONWEALTH
18 AND PARTLY IN THE ADJOINING STATE.
19 (19) TO ENTER INTO CONTRACTS TO SUPPLY WATER AND OTHER
20 SERVICES TO AND FOR MUNICIPALITIES THAT ARE NOT MEMBERS OF
21 THE AUTHORITY, OR TO AND FOR THE COMMONWEALTH,
22 MUNICIPALITIES, SCHOOL DISTRICTS, PERSONS OR AUTHORITIES, AND
23 FIX THE AMOUNT TO BE PAID THEREFOR.
24 (20) (I) TO MAKE CONTRACTS OF INSURANCE WITH AN
25 INSURANCE COMPANY, ASSOCIATION OR EXCHANGE AUTHORIZED TO
26 TRANSACT BUSINESS IN THIS COMMONWEALTH, INSURING ITS
27 EMPLOYEES AND APPOINTED OFFICERS AND OFFICIALS UNDER A
28 POLICY OR POLICIES OF INSURANCE COVERING LIFE, ACCIDENTAL
29 DEATH AND DISMEMBERMENT AND DISABILITY INCOME. STATUTORY
30 REQUIREMENTS FOR SUCH INSURANCE, INCLUDING, BUT NOT
20010S0780B1186 - 69 -
1 LIMITED TO, REQUISITE NUMBER OF ELIGIBLE EMPLOYEES,
2 APPOINTED OFFICERS AND OFFICIALS, AS PROVIDED FOR IN
3 SECTION 621.2 OF THE ACT OF MAY 17, 1921 (P.L.682,
4 NO.284), KNOWN AS THE INSURANCE COMPANY LAW OF 1921, AND
5 SECTIONS 1, 2, 6, 7 AND 9 OF THE ACT OF MAY 11, 1949
6 (P.L.1210, NO.367), KNOWN AS THE GROUP LIFE INSURANCE
7 POLICY LAW, SHALL BE MET.
8 (II) TO MAKE CONTRACTS WITH AN INSURANCE COMPANY,
9 ASSOCIATION OR EXCHANGE OR ANY HOSPITAL PLAN CORPORATION
10 OR PROFESSIONAL HEALTH SERVICE CORPORATION AUTHORIZED TO
11 TRANSACT BUSINESS IN THIS COMMONWEALTH, INSURING OR
12 COVERING ITS EMPLOYEES AND THEIR DEPENDENTS, BUT NOT ITS
13 APPOINTED OFFICERS AND OFFICIALS NOR THEIR DEPENDENTS,
14 FOR HOSPITAL AND MEDICAL BENEFITS; AND TO CONTRACT FOR
15 ITS EMPLOYEES, BUT NOT ITS APPOINTED OFFICERS AND
16 OFFICIALS, WITH AN INSURANCE COMPANY, ASSOCIATION OR
17 EXCHANGE AUTHORIZED TO TRANSACT BUSINESS IN THIS
18 COMMONWEALTH GRANTING ANNUITIES OR TO ESTABLISH,
19 MAINTAIN, OPERATE AND ADMINISTER ITS OWN PENSION PLAN
20 COVERING ITS EMPLOYEES, BUT NOT ITS APPOINTED OFFICERS
21 AND OFFICIALS.
22 (III) FOR THE PURPOSES SET FORTH UNDER THIS
23 PARAGRAPH, TO AGREE TO PAY PART OR ALL OF THE COST OF
24 THIS INSURANCE, INCLUDING THE PREMIUMS OR CHARGES FOR
25 CARRYING THESE CONTRACTS, AND TO APPROPRIATE OUT OF ITS
26 TREASURY ANY MONEY NECESSARY TO PAY SUCH COSTS, PREMIUMS
27 OR CHARGES. THE PROPER OFFICERS OF THE AUTHORITY WHO ARE
28 AUTHORIZED TO ENTER INTO SUCH CONTRACTS ARE AUTHORIZED,
29 ENABLED AND PERMITTED TO DEDUCT FROM THE OFFICERS' OR
30 EMPLOYEES' PAY, SALARY OR COMPENSATION THAT PART OF THE
20010S0780B1186 - 70 -
1 PREMIUM OR COST WHICH IS PAYABLE BY THE OFFICER OR
2 EMPLOYEE AND AS MAY BE SO AUTHORIZED BY THE OFFICER OR
3 EMPLOYEE IN WRITING.
4 (21) TO CHARGE THE COST OF CONSTRUCTION OF ANY SEWER OR
5 WATER MAIN CONSTRUCTED BY THE AUTHORITY AGAINST THE
6 PROPERTIES BENEFITED, IMPROVED OR ACCOMMODATED THEREBY TO THE
7 EXTENT OF SUCH BENEFITS. THESE BENEFITS SHALL BE ASSESSED IN
8 THE MANNER PROVIDED UNDER THIS CHAPTER FOR THE EXERCISE OF
9 THE RIGHT OF EMINENT DOMAIN.
10 (22) TO CHARGE THE COST OF CONSTRUCTION OF A SEWER OR
11 WATER MAIN CONSTRUCTED BY THE AUTHORITY AGAINST THE
12 PROPERTIES BENEFITED, IMPROVED OR ACCOMMODATED BY THE
13 CONSTRUCTION ACCORDING TO THE FOOT FRONT RULE. CHARGES SHALL
14 BE BASED UPON THE FOOT FRONTAGE OF THE PROPERTIES BENEFITED
15 AND SHALL BE A LIEN AGAINST PROPERTIES. CHARGES MAY BE
16 ASSESSED AND COLLECTED AND LIENS MAY BE ENFORCED IN THE
17 MANNER PROVIDED BY LAW FOR THE ASSESSMENT AND COLLECTION OF
18 CHARGES AND THE ENFORCEMENT OF LIENS OF THE MUNICIPALITY IN
19 WHICH SUCH AUTHORITY IS LOCATED. NO CHARGE SHALL BE ASSESSED
20 UNLESS PRIOR TO THE CONSTRUCTION OF A SEWER OR WATER MAIN THE
21 AUTHORITY SUBMITTED THE PLAN OF CONSTRUCTION AND ESTIMATED
22 COST TO THE MUNICIPALITY IN WHICH THE PROJECT IS TO BE
23 UNDERTAKEN, AND THE MUNICIPALITY APPROVED IT. THE PROPERTIES
24 BENEFITED, IMPROVED OR ACCOMMODATED BY THE CONSTRUCTION MAY
25 NOT BE CHARGED AN AGGREGATE AMOUNT IN EXCESS OF THE APPROVED
26 ESTIMATED COST.
27 (23) TO REQUIRE THE POSTING OF FINANCIAL SECURITY TO
28 INSURE THE COMPLETION, IN ACCORDANCE WITH THE APPROVED PLAT
29 AND WITH THE RULES AND REGULATIONS OF THE AUTHORITY, OF ANY
30 WATER MAINS OR SANITARY SEWER LINES, OR BOTH, AND RELATED
20010S0780B1186 - 71 -
1 APPARATUS AND FACILITIES, REQUIRED TO BE INSTALLED BY OR ON
2 BEHALF OF A DEVELOPER UNDER AN APPROVED LAND DEVELOPMENT OR
3 SUBDIVISION PLAT AS THESE TERMS ARE DEFINED UNDER THE ACT OF
4 JULY 31, 1968 (P.L.805, NO.247), KNOWN AS THE PENNSYLVANIA
5 MUNICIPALITIES PLANNING CODE. IF FINANCIAL SECURITY IS
6 REQUIRED BY THE AUTHORITY, AND WITHOUT LIMITATION AS TO OTHER
7 TYPES OF FINANCIAL SECURITY WHICH THE AUTHORITY MAY APPROVE,
8 WHICH APPROVAL SHALL NOT BE UNREASONABLY WITHHELD, FEDERALLY
9 CHARTERED OR COMMONWEALTH-CHARTERED LENDING INSTITUTION
10 IRREVOCABLE LETTERS OF CREDIT AND RESTRICTIVE OR ESCROW
11 ACCOUNTS IN THESE LENDING INSTITUTIONS SHALL BE DEEMED
12 ACCEPTABLE FINANCIAL SECURITY. FINANCIAL SECURITY SHALL BE
13 POSTED WITH A BONDING COMPANY OR FEDERALLY CHARTERED OR
14 COMMONWEALTH-CHARTERED LENDING INSTITUTION CHOSEN BY THE
15 PARTY POSTING THE FINANCIAL SECURITY, IF THE BONDING COMPANY
16 OR LENDING INSTITUTION IS AUTHORIZED TO CONDUCT BUSINESS
17 WITHIN THIS COMMONWEALTH. THE BOND OR OTHER SECURITY SHALL
18 PROVIDE FOR AND SECURE TO THE AUTHORITY THE COMPLETION OF
19 REQUIRED IMPROVEMENTS WITHIN ONE YEAR FROM THE DATE OF
20 POSTING OF THE SECURITY. THE AMOUNT OF FINANCIAL SECURITY
21 SHALL BE EQUAL TO 110% OF THE COST OF THE REQUIRED
22 IMPROVEMENTS FOR WHICH FINANCIAL SECURITY IS TO BE POSTED.
23 THE COST OF REQUIRED IMPROVEMENTS SHALL BE ESTABLISHED BY
24 SUBMITTING TO THE AUTHORITY A BONA FIDE BID FROM A CONTRACTOR
25 CHOSEN BY THE PARTY POSTING THE FINANCIAL SECURITY. IN THE
26 ABSENCE OF A BONA FIDE BID, THE COST SHALL BE ESTABLISHED BY
27 AN ESTIMATE PREPARED BY THE AUTHORITY'S ENGINEER. IF THE
28 PARTY POSTING THE FINANCIAL SECURITY REQUIRES MORE THAN ONE
29 YEAR FROM THE DATE OF POSTING THE FINANCIAL SECURITY TO
30 COMPLETE THE REQUIRED IMPROVEMENTS, THE AMOUNT OF FINANCIAL
20010S0780B1186 - 72 -
1 SECURITY MAY BE INCREASED BY AN ADDITIONAL 10% FOR EACH ONE-
2 YEAR PERIOD BEYOND THE FIRST ANNIVERSARY DATE FROM THE
3 INITIAL POSTING DATE OR TO 110% OF THE COST OF COMPLETING THE
4 REQUIRED IMPROVEMENTS AS REESTABLISHED ON OR ABOUT THE
5 EXPIRATION OF THE PRECEDING ONE-YEAR PERIOD BY USING THE
6 ABOVE BIDDING PROCEDURE. AS THE WORK OF INSTALLING THE
7 REQUIRED IMPROVEMENTS PROCEEDS, THE PARTY POSTING THE
8 FINANCIAL SECURITY MAY REQUEST THE AUTHORITY TO RELEASE OR
9 AUTHORIZE THE RELEASE OF, FROM TIME TO TIME, PORTIONS OF THE
10 FINANCIAL SECURITY NECESSARY TO PAY THE CONTRACTOR PERFORMING
11 THE WORK. RELEASE REQUESTS SHALL BE IN WRITING ADDRESSED TO
12 THE AUTHORITY, AND THE AUTHORITY SHALL HAVE 45 DAYS AFTER
13 RECEIVING A REQUEST TO ASCERTAIN FROM THE AUTHORITY ENGINEER,
14 CERTIFIED IN WRITING, THAT THE PORTION OF THE WORK HAS BEEN
15 COMPLETED IN ACCORDANCE WITH THE APPROVED PLAT. UPON
16 RECEIVING WRITTEN CERTIFICATION, THE AUTHORITY SHALL
17 AUTHORIZE RELEASE BY THE BONDING COMPANY OR LENDING
18 INSTITUTION AN AMOUNT ESTIMATED BY THE AUTHORITY ENGINEER TO
19 FAIRLY REPRESENT THE VALUE OF THE IMPROVEMENTS COMPLETED. IF
20 THE AUTHORITY FAILS TO ACT WITHIN THE 45-DAY PERIOD, IT SHALL
21 BE DEEMED TO HAVE APPROVED THE REQUESTED RELEASE OF FUNDS.
22 THE AUTHORITY MAY, PRIOR TO FINAL RELEASE AT THE TIME OF
23 COMPLETION AND CERTIFICATION BY ITS ENGINEER, REQUIRE
24 RETENTION OF 10% OF THE ESTIMATED COST OF IMPROVEMENTS. IF
25 THE AUTHORITY ACCEPTS DEDICATION OF ALL OR SOME OF THE
26 REQUIRED IMPROVEMENTS FOLLOWING COMPLETION, IT MAY REQUIRE
27 THE POSTING OF FINANCIAL SECURITY TO SECURE STRUCTURAL
28 INTEGRITY OF THE IMPROVEMENTS, AS WELL AS THE FUNCTIONING OF
29 THE IMPROVEMENTS IN ACCORDANCE WITH THE DESIGN AND
30 SPECIFICATIONS AS DEPICTED ON THE FINAL PLAT. THIS FINANCIAL
20010S0780B1186 - 73 -
1 SECURITY MAY EXPIRE 18 MONTHS FROM THE DATE OF ACCEPTANCE OF
2 DEDICATION AND SHALL BE OF THE SAME TYPE AS SET FORTH IN THIS
3 PARAGRAPH WITH REGARD TO THAT WHICH IS REQUIRED FOR
4 INSTALLATION OF THE IMPROVEMENTS, EXCEPT THAT IT SHALL NOT
5 EXCEED 15% OF THE ACTUAL COST OF INSTALLATION OF THE
6 IMPROVEMENTS. ANY INCONSISTENT ORDINANCE, RESOLUTION OR
7 STATUTE INCONSISTENT IS NULL AND VOID.
8 (24) TO CHARGE ENUMERATED FEES TO PROPERTY OWNERS WHO
9 DESIRE TO OR ARE REQUIRED TO CONNECT TO THE AUTHORITY'S SEWER
10 OR WATER SYSTEM. FEES SHALL BE BASED UPON THE DULY ADOPTED
11 FEE SCHEDULE WHICH IS IN EFFECT AT THE TIME OF PAYMENT AND
12 SHALL BE PAYABLE AT THE TIME OF APPLICATION FOR CONNECTION OR
13 AT A TIME TO WHICH THE PROPERTY OWNER AND THE AUTHORITY
14 AGREE. IN THE CASE OF PROJECTS TO SERVE EXISTING DEVELOPMENT,
15 FEES SHALL BE PAYABLE AT A TIME TO BE DETERMINED BY THE
16 AUTHORITY. AN AUTHORITY MAY REQUIRE THAT NO CAPACITY BE
17 GUARANTEED FOR A PROPERTY OWNER UNTIL THE TAPPING FEES HAVE
18 BEEN PAID OR SECURED BY OTHER FINANCIAL SECURITY. THE FEES
19 SHALL BE IN ADDITION TO ANY CHARGES ASSESSED AGAINST THE
20 PROPERTY IN THE CONSTRUCTION OF A SEWER OR WATER MAIN BY THE
21 AUTHORITY UNDER PARAGRAPHS (21) AND (22) AS WELL AS ANY OTHER
22 USER CHARGES IMPOSED BY THE AUTHORITY UNDER PARAGRAPH (9) BUT
23 SHALL NOT INCLUDE COSTS INCLUDED IN THE CALCULATION OF SUCH
24 FEES.
25 (I) THE FEES MAY INCLUDE ANY OF THE FOLLOWING FEE
26 COMPONENTS, IF THEY ARE SEPARATELY SET FORTH IN A
27 RESOLUTION ADOPTED BY THE AUTHORITY TO ESTABLISH THESE
28 FEES:
29 (A) CONNECTION FEE. IT MAY NOT EXCEED AN AMOUNT
30 BASED UPON THE ACTUAL COST OF THE CONNECTION OF THE
20010S0780B1186 - 74 -
1 PROPERTY EXTENDING FROM THE AUTHORITY'S MAIN TO THE
2 PROPERTY LINE OR CURB STOP OF THE PROPERTY CONNECTED.
3 THE AUTHORITY MAY ALSO BASE THE CONNECTION FEE UPON
4 AN AVERAGE COST FOR PREVIOUSLY INSTALLED CONNECTIONS
5 OF SIMILAR TYPE AND SIZE. IN LIEU OF PAYMENT OF THE
6 FEES, AN AUTHORITY MAY REQUIRE THE CONSTRUCTION AND
7 DEDICATION OF THOSE FACILITIES BY THE PROPERTY OWNER
8 WHO REQUESTED THE CONNECTION.
9 (B) CUSTOMER FACILITIES FEE. IT MAY NOT EXCEED
10 AN AMOUNT BASED UPON THE ACTUAL COST OF FACILITIES
11 SERVING THE CONNECTED PROPERTY FROM THE PROPERTY LINE
12 OR CURB STOP TO THE PROPOSED DWELLING OR BUILDING TO
13 BE SERVED. THE FEE SHALL BE CHARGEABLE ONLY IF THE
14 AUTHORITY INSTALLS THE CUSTOMER FACILITIES. IN LIEU
15 OF PAYMENT OF THE CUSTOMER FACILITIES FEE, AN
16 AUTHORITY MAY REQUIRE THE CONSTRUCTION OF THOSE
17 FACILITIES BY THE PROPERTY OWNER WHO REQUESTS
18 CUSTOMER FACILITIES. IN THE CASE OF WATER SERVICE,
19 THE FEE MAY INCLUDE THE COST OF A WATER METER
20 INSTALLATION IF THE AUTHORITY PROVIDES OR INSTALLS
21 THE WATER METER. IF THE PROPERTY CONNECTED OR TO BE
22 CONNECTED WITH THE SEWER SYSTEM OF THE AUTHORITY IS
23 NOT EQUIPPED WITH A WATER METER, THE AUTHORITY MAY
24 INSTALL A METER AT ITS OWN COST AND EXPENSE. IF THE
25 PROPERTY IS SUPPLIED WITH WATER FROM THE FACILITIES
26 OF A PUBLIC WATER SUPPLY AGENCY, THE AUTHORITY SHALL
27 NOT INSTALL A METER WITHOUT THE CONSENT AND APPROVAL
28 OF THE PUBLIC WATER SUPPLY AGENCY.
29 (C) TAPPING FEE. IT MAY NOT EXCEED AN AMOUNT
30 BASED UPON SOME OR ALL OF THE FOLLOWING FEE
20010S0780B1186 - 75 -
1 COMPONENTS, IF THEY ARE SEPARATELY SET FORTH IN THE
2 RESOLUTION ADOPTED BY THE AUTHORITY TO ESTABLISH
3 THESE FEES. IN LIEU OF PAYMENT OF THIS FEE, AN
4 AUTHORITY MAY REQUIRE THE CONSTRUCTION AND DEDICATION
5 OF ONLY SUCH CAPACITY, DISTRIBUTION-COLLECTION OR
6 SPECIAL PURPOSE FACILITIES NECESSARY TO SUPPLY
7 SERVICE TO THE PROPERTY OWNER OR OWNERS.
8 (I) CAPACITY PART. THE FEE MAY NOT EXCEED AN
9 AMOUNT THAT IS BASED UPON THE COST OF CAPACITY-
10 RELATED FACILITIES, INCLUDING, BUT NOT LIMITED
11 TO, SOURCE OF SUPPLY, TREATMENT, PUMPING,
12 TRANSMISSION, TRUNK, INTERCEPTOR AND OUTFALL
13 MAINS, STORAGE, SLUDGE TREATMENT OR DISPOSAL,
14 INTERCONNECTION OR OTHER GENERAL SYSTEM
15 FACILITIES. FACILITIES MAY INCLUDE THOSE THAT
16 PROVIDE EXISTING SERVICE OR WILL PROVIDE FUTURE
17 SERVICE. THE COST OF EXISTING FACILITIES,
18 EXCLUDING FACILITIES CONTRIBUTED TO THE AUTHORITY
19 BY ANY PERSON, GOVERNMENT OR AGENCY, SHALL BE
20 BASED UPON THEIR REPLACEMENT COST OR UPON
21 HISTORICAL COST TRENDED TO CURRENT COST USING
22 PUBLISHED COST INDEXES, OR UPON THE HISTORICAL
23 COST PLUS INTEREST AND OTHER FINANCING FEES PAID
24 ON BONDS FINANCING SUCH FACILITIES. IN THE CASE
25 OF EXISTING FACILITIES, OUTSTANDING DEBT RELATED
26 TO THE FACILITIES SHALL BE SUBTRACTED FROM THE
27 COST, BUT DEBT MAY NOT BE SUBTRACTED WHICH IS
28 ATTRIBUTABLE TO FACILITIES EXCLUSIVELY SERVING
29 NEW CUSTOMERS. UNDER ALL COST APPROACHES, THE
30 COST OF CAPACITY-RELATED FACILITIES SHALL BE
20010S0780B1186 - 76 -
1 REDUCED BY THE AMOUNT OF GRANTS OR CAPITAL
2 CONTRIBUTIONS WHICH HAVE FINANCED THEM. THE
3 CAPACITY PART OF THE TAPPING FEE PER UNIT OF
4 CAPACITY REQUIRED BY THE NEW CUSTOMER MAY NOT
5 EXCEED THE COST OF THE FACILITIES DIVIDED BY THE
6 DESIGN CAPACITY. AN AUTHORITY MAY ALLOCATE ITS
7 CAPACITY-RELATED FACILITIES TO DIFFERENT SECTIONS
8 OR DISTRICTS OF ITS SYSTEM AND MAY IMPOSE
9 ADDITIONAL CAPACITY-RELATED TAPPING FEES ON
10 SPECIFIC GROUPS OF EXISTING CUSTOMERS SUCH AS
11 COMMERCIAL AND INDUSTRIAL CUSTOMERS, IN
12 CONJUNCTION WITH ADDITIONAL CAPACITY REQUIREMENTS
13 OF THOSE CUSTOMERS. IN THE CASE OF FACILITIES TO
14 BE CONSTRUCTED OR ACQUIRED, THE COST SHALL NOT
15 EXCEED THEIR REASONABLE ESTIMATED COST SET FORTH
16 IN A DULY ADOPTED ANNUAL BUDGET OR A FIVE-YEAR
17 CAPITAL IMPROVEMENT PLAN, AND THE AUTHORITY IN
18 FURTHERANCE OF THE FACILITIES MUST TAKE ANY
19 ACTION AS FOLLOWS:
20 (A) OBTAIN FINANCING FOR THE FACILITIES;
21 (B) ENTER INTO A CONTRACT OBLIGATING THE
22 AUTHORITY TO CONSTRUCT OR PAY FOR THE COST OF
23 CONSTRUCTION OF THE FACILITIES OR ITS PORTION
24 THEREOF IN THE EVENT THAT MULTIPLE PARTIES
25 ARE CONSTRUCTING THE FACILITIES;
26 (C) OBTAIN A PERMIT FOR THE FACILITIES;
27 (D) SPEND SUBSTANTIAL SUMS OR RESOURCES
28 IN FURTHERANCE OF THE FACILITIES;
29 (E) ENTER INTO A CONTRACT OBLIGATING THE
30 AUTHORITY TO PURCHASE OR ACQUIRE FACILITIES
20010S0780B1186 - 77 -
1 OWNED BY ANOTHER;
2 (F) PREPARE AN ENGINEERING FEASIBILITY
3 STUDY SPECIFICALLY RELATED TO THE FACILITIES,
4 WHICH STUDY RECOMMENDS THE CONSTRUCTION OF
5 THE FACILITIES WITHIN A FIVE-YEAR PERIOD; OR
6 (G) ENTER INTO A CONTRACT FOR THE DESIGN
7 OF THE FACILITIES.
8 (II) DISTRIBUTION OR COLLECTION PART. THE
9 FEE MAY NOT EXCEED AN AMOUNT BASED UPON THE COST
10 OF DISTRIBUTION OR COLLECTION FACILITIES REQUIRED
11 TO PROVIDE SERVICE, SUCH AS MAINS, HYDRANTS AND
12 PUMPING STATIONS. FACILITIES MAY INCLUDE THOSE
13 THAT PROVIDE EXISTING SERVICE OR THOSE THAT WILL
14 PROVIDE FUTURE SERVICE. THE COST OF EXISTING
15 FACILITIES, EXCLUDING FACILITIES CONTRIBUTED TO
16 THE AUTHORITY BY ANY PERSON, GOVERNMENT OR
17 AGENCY, SHALL BE BASED UPON THEIR REPLACEMENT
18 COST OR UPON HISTORICAL COST TRENDED TO CURRENT
19 COST USING PUBLISHED COST INDEXES OR UPON THE
20 HISTORICAL COST PLUS INTEREST AND OTHER FINANCING
21 FEES PAID ON BONDS FINANCING SUCH FACILITIES. IN
22 THE CASE OF EXISTING FACILITIES, OUTSTANDING DEBT
23 RELATED TO THE FACILITIES SHALL BE SUBTRACTED
24 FROM THE COST, BUT DEBT MAY NOT BE SUBTRACTED
25 WHICH IS ATTRIBUTABLE TO FACILITIES EXCLUSIVELY
26 SERVING NEW CUSTOMERS. IN THE CASE OF FACILITIES
27 TO BE CONSTRUCTED OR ACQUIRED, THE COST SHALL NOT
28 EXCEED THEIR REASONABLE ESTIMATED COST. UNDER ALL
29 COST APPROACHES, THE COST OF DISTRIBUTION OR
30 COLLECTION FACILITIES SHALL BE REDUCED BY THE
20010S0780B1186 - 78 -
1 AMOUNT OF GRANTS OR CAPITAL CONTRIBUTIONS WHICH
2 HAVE FINANCED THEM. THE DISTRIBUTION OR
3 COLLECTION PART OF THE TAPPING FEE PER UNIT OF
4 CAPACITY REQUIRED BY THE NEW CUSTOMER MAY NOT
5 EXCEED THE COST OF THE FACILITIES DIVIDED BY THE
6 DESIGN CAPACITY. AN AUTHORITY MAY ALLOCATE ITS
7 DISTRIBUTION-RELATED OR COLLECTION-RELATED
8 FACILITIES TO DIFFERENT SECTIONS OR DISTRICTS OF
9 ITS SYSTEM AND MAY IMPOSE ADDITIONAL
10 DISTRIBUTION-RELATED OR COLLECTION-RELATED
11 TAPPING FEES ON SPECIFIC GROUPS OF EXISTING
12 CUSTOMERS SUCH AS COMMERCIAL AND INDUSTRIAL
13 CUSTOMERS, IN CONJUNCTION WITH ADDITIONAL
14 CAPACITY REQUIREMENTS OF THOSE CUSTOMERS.
15 (III) SPECIAL PURPOSE PART. FEES FOR SPECIAL
16 PURPOSE FACILITIES SHALL BE APPLICABLE ONLY TO A
17 PARTICULAR GROUP OF CUSTOMERS OR FOR SERVING A
18 PARTICULAR PURPOSE OR A SPECIFIC AREA, BASED UPON
19 THE COST OF THE FACILITIES, INCLUDING, BUT NOT
20 LIMITED TO, BOOSTER PUMP STATIONS, FIRE SERVICE
21 FACILITIES AND INDUSTRIAL WASTEWATER TREATMENT
22 FACILITIES. FACILITIES MAY INCLUDE THOSE THAT
23 PROVIDE EXISTING SERVICE OR THOSE THAT WILL
24 PROVIDE FUTURE SERVICE. THE COST OF EXISTING
25 FACILITIES, EXCLUDING FACILITIES CONTRIBUTED TO
26 THE AUTHORITY BY ANY PERSON, GOVERNMENT OR
27 AGENCY, SHALL BE BASED UPON THEIR REPLACEMENT
28 COST OR UPON HISTORICAL COST TRENDED TO CURRENT
29 COST USING PUBLISHED COST INDEXES OR UPON THE
30 HISTORICAL COST PLUS INTEREST AND OTHER FINANCING
20010S0780B1186 - 79 -
1 FEES PAID ON BONDS FINANCING SUCH FACILITIES. IN
2 THE CASE OF EXISTING FACILITIES, OUTSTANDING DEBT
3 RELATED TO THE FACILITIES SHALL BE SUBTRACTED
4 FROM THE COST, BUT DEBT MAY NOT BE SUBTRACTED
5 WHICH IS ATTRIBUTABLE TO FACILITIES EXCLUSIVELY
6 SERVING NEW CUSTOMERS. IN THE CASE OF FACILITIES
7 TO BE CONSTRUCTED OR ACQUIRED, THE COST SHALL NOT
8 EXCEED THEIR REASONABLE ESTIMATED COST. UNDER ALL
9 COST APPROACHES, THE COST OF SPECIAL PURPOSE
10 FACILITIES SHALL BE REDUCED BY THE AMOUNT OF
11 GRANTS OR CAPITAL CONTRIBUTIONS WHICH HAVE
12 FINANCED SUCH FACILITIES. THE SPECIAL PURPOSE
13 PART OF THE TAPPING FEE PER UNIT OF CAPACITY
14 REQUIRED BY THE NEW CUSTOMER MAY NOT EXCEED THE
15 COST OF THE FACILITIES DIVIDED BY THE DESIGN
16 CAPACITY. AN AUTHORITY MAY ALLOCATE ITS SPECIAL
17 PURPOSE FACILITIES TO DIFFERENT SECTIONS OR
18 DISTRICTS OF ITS SYSTEM AND MAY IMPOSE ADDITIONAL
19 SPECIAL PURPOSE TAPPING FEES ON SPECIFIC GROUPS
20 OF EXISTING CUSTOMERS SUCH AS COMMERCIAL AND
21 INDUSTRIAL CUSTOMERS, IN CONJUNCTION WITH
22 ADDITIONAL CAPACITY REQUIREMENTS OF THOSE
23 CUSTOMERS.
24 (IV) REIMBURSEMENT COMPONENT. AN AMOUNT
25 NECESSARY TO RECAPTURE THE ALLOCABLE PORTION OF
26 FACILITIES IN ORDER TO REIMBURSE THE PROPERTY
27 OWNER OR OWNERS AT WHOSE EXPENSE THE FACILITIES
28 WERE CONSTRUCTED, AS SET FORTH IN PARAGRAPHS (30)
29 AND (31).
30 (V) CALCULATION OF TAPPING FEE COMPONENTS.
20010S0780B1186 - 80 -
1 (A) IN ARRIVING AT THE COST TO BE
2 INCLUDED IN THE TAPPING FEE COMPONENTS, THE
3 SAME COST MAY NOT BE INCLUDED IN MORE THAN
4 ONE PART OF THE TAPPING FEE.
5 (B) NO TAPPING FEE MAY BE BASED UPON OR
6 INCLUDE THE COST OF EXPANDING, REPLACING,
7 UPDATING OR UPGRADING FACILITIES SERVING
8 EXISTING CUSTOMERS IN ORDER TO MEET STRICTER
9 EFFICIENCY, ENVIRONMENTAL, REGULATORY OR
10 SAFETY STANDARDS OR TO PROVIDE BETTER SERVICE
11 TO OR MEET THE NEEDS OF EXISTING CUSTOMERS.
12 (C) THE COST USED IN CALCULATING TAPPING
13 FEES SHALL NOT INCLUDE MAINTENANCE AND
14 OPERATION EXPENSES.
15 (D) AS USED IN THIS SUBCLAUSE,
16 "MAINTENANCE AND OPERATION EXPENSES" ARE
17 THOSE EXPENDITURES MADE DURING THE USEFUL
18 LIFE OF A SEWER OR WATER SYSTEM FOR LABOR,
19 MATERIALS, UTILITIES, EQUIPMENT ACCESSORIES,
20 APPURTENANCES AND OTHER ITEMS WHICH ARE
21 NECESSARY TO MANAGE AND MAINTAIN THE SYSTEM
22 CAPACITY AND PERFORMANCE AND TO PROVIDE THE
23 SERVICE FOR WHICH THE SYSTEM WAS CONSTRUCTED.
24 (II) EVERY AUTHORITY CHARGING A TAPPING, CUSTOMER
25 FACILITIES OR CONNECTION FEE SHALL DO SO AT A PUBLIC
26 MEETING OF THE AUTHORITY. THE AUTHORITY SHALL HAVE
27 AVAILABLE FOR PUBLIC INSPECTION A DETAILED ITEMIZATION OF
28 ALL CALCULATIONS, CLEARLY SHOWING THE MANNER IN WHICH THE
29 FEES WERE DETERMINED. A REVISED TAPPING, CUSTOMER
30 FACILITIES OR CONNECTION FEE MAY BE IMPOSED UPON THOSE
20010S0780B1186 - 81 -
1 WHO SUBSEQUENTLY CONNECT TO THE SYSTEM.
2 (III) NO AUTHORITY MAY IMPOSE A CONNECTION FEE,
3 CUSTOMER FACILITIES FEE, TAPPING FEE OR SIMILAR FEE,
4 EXCEPT AS PROVIDED SPECIFICALLY UNDER THIS SECTION.
5 (IV) A MUNICIPALITY OR MUNICIPAL AUTHORITY WITH
6 AVAILABLE EXCESS SEWAGE CAPACITY, WISHING TO SELL A
7 PORTION OF THAT CAPACITY TO ANOTHER MUNICIPALITY OR
8 MUNICIPAL AUTHORITY, MAY NOT CHARGE A HIGHER COST FOR THE
9 CAPACITY PORTION OF THE TAPPING FEE AS THE SELLING ENTITY
10 CHARGES TO ITS CUSTOMERS FOR THE CAPACITY PORTION OF THE
11 TAPPING FEE. IN TURN, THE MUNICIPALITY OR MUNICIPAL
12 AUTHORITY BUYING THIS EXCESS CAPACITY MAY NOT CHARGE A
13 HIGHER COST FOR THE CAPACITY PORTION OF THE TAPPING FEE
14 TO ITS RESIDENTIAL CUSTOMERS THAN THAT CHARGED TO THEM BY
15 THE SELLING ENTITY.
16 (V) AS USED IN THIS PARAGRAPH, THE TERM "RESIDENTIAL
17 CUSTOMER" SHALL ALSO INCLUDE THOSE DEVELOPING PROPERTY
18 FOR RESIDENTIAL DWELLINGS THAT REQUIRE MULTIPLE TAPPING
19 FEE PERMITS. THIS PARAGRAPH SHALL NOT BE APPLICABLE TO
20 INTERMUNICIPAL OR INTERAUTHORITY AGREEMENTS RELATIVE TO
21 THE PURCHASE OF EXCESS CAPACITY BY AN AUTHORITY OR
22 MUNICIPALITY IN EFFECT PRIOR TO DECEMBER 20, 2000.
23 (25) TO CONSTRUCT TUNNELS, BRIDGES, VIADUCTS,
24 UNDERPASSES OR OTHER STRUCTURES AND RELOCATE THE FACILITIES
25 OF PUBLIC SERVICE COMPANIES TO EFFECT OR PERMIT THE ABOLITION
26 OF A GRADE CROSSING OR GRADE CROSSINGS SUBJECT TO APPROVAL OF
27 AND IN ACCORDANCE WITH A DULY ISSUED ORDER OF THE
28 PENNSYLVANIA PUBLIC UTILITY COMMISSION. A COMMISSION ORDER
29 SHALL PROVIDE THAT COSTS PAYABLE BY A PUBLIC UTILITY,
30 POLITICAL SUBDIVISION, THE COMMONWEALTH OR OTHERS SHALL BE
20010S0780B1186 - 82 -
1 PAYABLE TO THE AUTHORITY. BEFORE PROCEEDINGS ARE INSTITUTED
2 BEFORE THE COMMISSION, THE AUTHORITY AND THE PUBLIC UTILITIES
3 OR THE POLITICAL SUBDIVISIONS SHALL ENTER AN AGREEMENT TO
4 PROVIDE FOR THE CONVEYANCE TO THE AUTHORITY OF TITLE TO THE
5 LAND, STRUCTURE OR IMPROVEMENT INVOLVED, AS SECURITY FOR
6 BONDS ISSUED TO FINANCE THE IMPROVEMENT AND THE LEASING OF
7 THE IMPROVEMENT TO THE UTILITY OR UTILITIES OR THE POLITICAL
8 SUBDIVISION OR SUBDIVISIONS INVOLVED, ON SUCH TERMS AS WILL
9 PROVIDE FOR INTEREST AND SINKING FUND CHARGES ON THE BONDS
10 ISSUED FOR THE IMPROVEMENT.
11 (26) TO APPOINT POLICE OFFICERS WHO SHALL HAVE THE SAME
12 RIGHTS AS OTHER PEACE OFFICERS IN THIS COMMONWEALTH WITH
13 RESPECT TO THE PROPERTY OF THE AUTHORITY.
14 (27) (I) IN THE CASE OF AN AUTHORITY CREATED TO PROVIDE
15 BUSINESS IMPROVEMENTS AND ADMINISTRATIVE SERVICES, TO
16 IMPOSE AN ASSESSMENT ON EACH BENEFITED PROPERTY WITHIN A
17 BUSINESS IMPROVEMENT DISTRICT. THIS ASSESSMENT SHALL BE
18 BASED UPON THE ESTIMATED COST OF THE IMPROVEMENTS OR
19 SERVICES IN THE DISTRICT STATED IN THE PLANNING OR
20 FEASIBILITY STUDY AND SHALL BE DETERMINED BY ONE OF THE
21 FOLLOWING METHODS:
22 (A) BY AN ASSESSMENT DETERMINED BY MULTIPLYING
23 THE TOTAL IMPROVEMENT OR SERVICE COST BY THE RATIO OF
24 THE ASSESSED VALUE OF THE BENEFITED PROPERTY TO THE
25 TOTAL ASSESSED VALUATION OF ALL BENEFITED PROPERTIES
26 IN THE DISTRICT.
27 (B) BY AN ASSESSMENT UPON THE SEVERAL PROPERTIES
28 IN THE DISTRICT IN PROPORTION TO BENEFITS AS
29 ASCERTAINED BY VIEWERS APPOINTED IN ACCORDANCE WITH
30 MUNICIPAL LAW.
20010S0780B1186 - 83 -
1 (II) AN ASSESSMENT OR CHARGE MAY NOT BE MADE UNLESS:
2 (A) AN AUTHORITY SUBMITS A PLAN FOR BUSINESS
3 IMPROVEMENTS AND ADMINISTRATIVE SERVICES, TOGETHER
4 WITH ESTIMATED COSTS AND THE PROPOSED METHOD OF
5 ASSESSMENTS FOR BUSINESS IMPROVEMENTS AND CHARGES FOR
6 ADMINISTRATIVE SERVICES, TO THE MUNICIPALITY IN WHICH
7 THE PROJECT IS TO BE UNDERTAKEN.
8 (B) THE MUNICIPALITY APPROVES THE PLAN, THE
9 ESTIMATED COSTS AND THE PROPOSED METHOD OF ASSESSMENT
10 AND CHARGES.
11 (III) AN AUTHORITY MAY NOT ASSESS CHARGES AGAINST
12 THE IMPROVED PROPERTIES IN AN AGGREGATE AMOUNT IN EXCESS
13 OF THE ESTIMATED COST.
14 (IV) AN AUTHORITY MAY, BY RESOLUTION, AUTHORIZE
15 PAYMENT OF AN ASSESSMENT OR CHARGE IN EQUAL, ANNUAL OR
16 MORE FREQUENT INSTALLMENTS OVER A FIXED PERIOD OF TIME
17 AND BEARING INTEREST OF 6% OR LESS. IF BONDS, NOTES OR
18 GUARANTEES ARE USED TO RAISE REVENUE TO PROVIDE FOR THE
19 COST OF IMPROVEMENTS OR SERVICES, THE INSTALLMENTS SHALL
20 NOT BE PAYABLE BEYOND THE TERM FOR WHICH THE BONDS, NOTES
21 OR GUARANTEES ARE PAYABLE.
22 (V) CLAIMS TO SECURE THE PAYMENT OF ASSESSMENTS
23 SHALL BE ENTERED IN THE PROTHONOTARY'S OFFICE OF THE
24 COUNTY AT THE SAME TIME AND IN THE SAME FORM AND SHALL BE
25 COLLECTED IN THE SAME MANNER AS MUNICIPAL CLAIMS ARE
26 FILED AND COLLECTED NOTWITHSTANDING THE PROVISIONS OF
27 THIS SECTION AS TO INSTALLMENT PAYMENTS.
28 (VI) IN CASE OF DEFAULT OF 60 DAYS OR MORE AFTER AN
29 INSTALLMENT IS DUE, THE ENTIRE ASSESSMENT AND INTEREST
30 SHALL BE DUE.
20010S0780B1186 - 84 -
1 (V) AN OWNER OF PROPERTY AGAINST WHOM AN ASSESSMENT
2 HAS BEEN MADE MAY PAY THE ASSESSMENT IN FULL AT ANY TIME
3 ALONG WITH ACCRUED INTEREST AND COSTS. UPON PROOF OF
4 PAYMENT THE LIEN SHALL BE DISCHARGED.
5 (28) TO ADOPT RULES AND REGULATIONS TO PROVIDE FOR THE
6 SAFETY OF PERSONS USING FACILITIES OF AN AIRPORT AUTHORITY
7 PERTAINING TO VEHICULAR TRAFFIC CONTROL. POLICE OFFICERS
8 APPOINTED UNDER PARAGRAPH (26) SHALL ENFORCE THEM.
9 (29) TO PROVIDE FINANCING FOR INSURANCE RESERVES BY
10 MAKING LOANS, EVIDENCED AND SECURED BY LOAN AGREEMENTS,
11 SECURITY AGREEMENTS OR OTHER INSTRUMENTS OR AGREEMENTS. THESE
12 INSTRUMENTS OR AGREEMENTS MAY CONTAIN PROVISIONS THE
13 AUTHORITY DEEMS NECESSARY OR DESIRABLE FOR THE SECURITY OR
14 PROTECTION OF THE AUTHORITY OR ITS BONDHOLDERS.
15 (30) WHERE A SEWER OR WATER SYSTEM OF AN AUTHORITY IS TO
16 BE EXTENDED AT THE EXPENSE OF THE OWNER OF PROPERTIES OR
17 WHERE THE AUTHORITY OTHERWISE WOULD CONSTRUCT CUSTOMER
18 FACILITIES REFERRED TO IN PARAGRAPH (24), OTHER THAN WATER
19 METER INSTALLATION, TO ALLOW A PROPERTY OWNER TO CONSTRUCT
20 THE EXTENSION OR INSTALL THE CUSTOMER FACILITIES HIMSELF OR
21 THROUGH A SUBCONTRACTOR APPROVED BY THE AUTHORITY, WHICH
22 APPROVAL SHALL NOT BE UNREASONABLY WITHHELD. THE AUTHORITY
23 MAY PERFORM THE CONSTRUCTION ITSELF ONLY IF THE AUTHORITY
24 PROVIDES THE EXTENSION OR CUSTOMER FACILITIES AT A LOWER COST
25 AND WITHIN THE SAME TIMETABLE SPECIFIED OR PROPOSED BY THE
26 PROPERTY OWNER OR HIS APPROVED SUBCONTRACTOR. CONSTRUCTION BY
27 THE PROPERTY OWNER SHALL BE IN ACCORDANCE WITH AN AGREEMENT
28 FOR THE EXTENSION OF THE AUTHORITY'S SYSTEM AND PLANS AND
29 SPECIFICATIONS APPROVED BY THE AUTHORITY AND SHALL BE
30 UNDERTAKEN ONLY PURSUANT TO THE EXISTING REGULATIONS,
20010S0780B1186 - 85 -
1 REQUIREMENTS, RULES AND STANDARDS OF THE AUTHORITY APPLICABLE
2 TO SUCH CONSTRUCTION. CONSTRUCTION SHALL BE SUBJECT TO
3 INSPECTION BY AN INSPECTOR AUTHORIZED TO APPROVE SIMILAR
4 CONSTRUCTION AND EMPLOYED BY THE AUTHORITY DURING
5 CONSTRUCTION. WHEN A MAIN IS TO BE EXTENDED AT THE EXPENSE OF
6 THE OWNER OF PROPERTIES, THE PROPERTY OWNER MAY BE REQUIRED
7 TO DEPOSIT WITH THE AUTHORITY, IN ADVANCE OF CONSTRUCTION,
8 THE AUTHORITY'S ESTIMATED REASONABLE AND NECESSARY COST OF
9 REVIEWING PLANS, CONSTRUCTION INSPECTIONS, ADMINISTRATIVE,
10 LEGAL AND ENGINEERING SERVICES. THE AUTHORITY MAY REQUIRE
11 THAT CONSTRUCTION SHALL NOT COMMENCE UNTIL THE PROPERTY OWNER
12 HAS POSTED APPROPRIATE FINANCIAL SECURITY IN ACCORDANCE WITH
13 PARAGRAPH (23). THE AUTHORITY MAY REQUIRE THE PROPERTY OWNER
14 TO REIMBURSE IT FOR REASONABLE AND NECESSARY EXPENSES IT
15 INCURRED AS A RESULT OF THE EXTENSION. IF AN INDEPENDENT FIRM
16 IS EMPLOYED FOR ENGINEERING REVIEW OF THE PLANS AND THE
17 INSPECTION OF IMPROVEMENTS, REIMBURSEMENT FOR ITS SERVICES
18 SHALL BE REASONABLE AND IN ACCORDANCE WITH THE ORDINARY AND
19 CUSTOMARY FEES CHARGED BY THE INDEPENDENT FIRM FOR WORK
20 PERFORMED FOR SIMILAR SERVICES IN THE COMMUNITY. THE FEES MAY
21 NOT EXCEED THE RATE CHARGED BY THE INDEPENDENT FIRM TO THE
22 AUTHORITY WHEN FEES ARE NOT REIMBURSED OR OTHERWISE IMPOSED
23 ON APPLICANTS. UPON COMPLETION OF CONSTRUCTION, THE PROPERTY
24 OWNER SHALL DEDICATE AND THE AUTHORITY SHALL ACCEPT THE
25 EXTENSION OF THE AUTHORITY'S SYSTEM IF DEDICATION OF
26 FACILITIES AND THE INSTALLATION COMPLIES WITH THE PLANS,
27 SPECIFICATION, REGULATIONS OF THE AUTHORITY AND THE
28 AGREEMENT. AN AUTHORITY MAY PROVIDE IN ITS REGULATIONS THOSE
29 FACILITIES WHICH, HAVING BEEN CONSTRUCTED AT THE EXPENSE OF
30 THE OWNER OF PROPERTIES, THE AUTHORITY WILL ACCEPT AS A PART
20010S0780B1186 - 86 -
1 OF ITS SYSTEM.
2 (31) WHERE A PROPERTY OWNER CONSTRUCTS OR CAUSES TO BE
3 CONSTRUCTED AT HIS EXPENSE ANY EXTENSION OF A SEWER OR WATER
4 SYSTEM OF AN AUTHORITY, THE AUTHORITY SHALL PROVIDE FOR THE
5 REIMBURSEMENT TO THE PROPERTY OWNER WHEN THE OWNER OF ANOTHER
6 PROPERTY NOT IN THE DEVELOPMENT FOR WHICH THE EXTENSION WAS
7 CONSTRUCTED CONNECTS A SERVICE LINE DIRECTLY TO THE EXTENSION
8 WITHIN TEN YEARS OF THE DATE OF THE DEDICATION OF THE
9 EXTENSION TO THE AUTHORITY, IN ACCORDANCE WITH THE FOLLOWING
10 PROVISIONS:
11 (I) REIMBURSEMENT SHALL BE EQUAL TO THE DISTRIBUTION
12 OR COLLECTION PART OF EACH TAPPING FEE COLLECTED AS A
13 RESULT OF SUBSEQUENT CONNECTIONS. AN AUTHORITY MAY DEDUCT
14 FROM EACH REIMBURSEMENT PAYMENT AN AMOUNT EQUAL TO 5% OF
15 IT, FOR ADMINISTRATIVE EXPENSES AND SERVICES RENDERED IN
16 CALCULATING, COLLECTING, MONITORING AND DISBURSING THE
17 REIMBURSEMENT PAYMENTS TO THE PROPERTY OWNER.
18 (II) REIMBURSEMENT SHALL BE LIMITED TO THOSE LINES
19 WHICH HAVE NOT PREVIOUSLY BEEN PAID FOR BY THE AUTHORITY.
20 (III) THE AUTHORITY SHALL, IN PREPARING NECESSARY
21 REIMBURSEMENT AGREEMENTS WITH A PROPERTY OWNER FOR WHOSE
22 BENEFIT REIMBURSEMENT WILL BE PROVIDED, ATTACH AS AN
23 EXHIBIT AN ITEMIZED LISTING OF ALL SEWER AND WATER
24 FACILITIES FOR WHICH REIMBURSEMENT SHALL BE PROVIDED.
25 (IV) THE TOTAL REIMBURSEMENT WHICH A PROPERTY OWNER
26 MAY RECEIVE MAY NOT EXCEED THE COST OF LABOR AND
27 MATERIAL, ENGINEERING DESIGN CHARGES, THE COST OF
28 PERFORMANCE AND MAINTENANCE BONDS, AUTHORITY REVIEW AND
29 INSPECTION CHARGES, AS WELL AS FLUSHING AND TELEVISING
30 CHARGES AND ANY AND ALL CHARGES INVOLVED IN THE
20010S0780B1186 - 87 -
1 ACCEPTANCE AND DEDICATION OF SUCH FACILITIES BY THE
2 AUTHORITY, LESS THE AMOUNT WHICH WOULD BE CHARGEABLE TO
3 THE PROPERTY OWNER BASED UPON THE AUTHORITY'S COLLECTION
4 AND DISTRIBUTION TAPPING FEES WHICH WOULD BE APPLICABLE
5 TO ALL LANDS OF THE PROPERTY OWNER DIRECTLY OR INDIRECTLY
6 SERVED THROUGH EXTENSIONS IF THE PROPERTY OWNER DID NOT
7 FUND THE EXTENSION.
8 (V) AN AUTHORITY SHALL NOTIFY BY CERTIFIED MAIL, TO
9 THE LAST KNOWN ADDRESS, THE PROPERTY OWNER FOR WHOSE
10 BENEFIT A REIMBURSEMENT SHALL APPLY. THIS SHALL BE DONE
11 WITHIN 30 DAYS OF THE AUTHORITY'S RECEIPT OF THE
12 REIMBURSEMENT PAYMENT. IF A PROPERTY OWNER DOES NOT CLAIM
13 A REIMBURSEMENT PAYMENT WITHIN 120 DAYS AFTER THE MAILING
14 OF THE NOTICE, THE PAYMENT SHALL BECOME THE SOLE PROPERTY
15 OF THE AUTHORITY WITH NO FURTHER OBLIGATION ON THE PART
16 OF THE AUTHORITY TO REFUND THE PAYMENT TO THE PROPERTY
17 OWNER.
18 (32) IF A SEWER SYSTEM OR WATER SYSTEM OR ANY PART OR
19 EXTENSION OWNED BY AN AUTHORITY HAS BEEN CONSTRUCTED AT THE
20 EXPENSE OF A PRIVATE PERSON OR CORPORATION, THE AUTHORITY MAY
21 CHARGE ANOTHER TAPPING FEE. THE AUTHORITY SHALL REFUND THE
22 TAPPING FEE TO THE PERSON OR CORPORATION WHO PAID FOR THE
23 CONSTRUCTION OF THE SEWER OR WATER SYSTEM OR THE PART OR
24 EXTENSION OF IT.
25 (33) PROVISIONS OF PARAGRAPHS (30), (31) AND (32) SHALL
26 APPLY TO RESIDENTIAL CUSTOMERS IN A MUNICIPALITY WHERE THE
27 SEWER SERVICE IS BEING PURCHASED BY THE MUNICIPALITY OR SEWER
28 AUTHORITY FROM ANOTHER MUNICIPALITY OR SEWER AUTHORITY HAVING
29 EXCESS SEWAGE CAPACITY.
30 (E) PROHIBITION.--
20010S0780B1186 - 88 -
1 (1) AN AUTHORITY MAY NOT PLEDGE THE CREDIT OR TAXING
2 POWER OF THE COMMONWEALTH OR POLITICAL SUBDIVISION.
3 (2) THE OBLIGATIONS OF AN AUTHORITY ARE NOT OBLIGATIONS
4 OF THE COMMONWEALTH OR ITS POLITICAL SUBDIVISION.
5 (3) NEITHER THE COMMONWEALTH NOR A POLITICAL SUBDIVISION
6 SHALL BE LIABLE FOR THE PAYMENT OF PRINCIPAL OF OR INTEREST
7 ON OBLIGATIONS OF AN AUTHORITY.
8 (F) AUTHORIZATION TO CONTROL AIRPORTS.--NOTHING IN THIS
9 CHAPTER SHALL BE CONSTRUED TO PREVENT AN AUTHORITY WHICH OWNS OR
10 OPERATES AN AIRPORT AS A PROJECT FROM LEASING AIRPORT LAND ON A
11 SHORT-TERM OR LONG-TERM BASIS FOR COMMERCIAL, INDUSTRIAL OR
12 RESIDENTIAL PURPOSES WHEN THE LAND IS NOT IMMEDIATELY NEEDED FOR
13 AVIATION OR AERONAUTICAL PURPOSES IN THE JUDGMENT OF THE
14 AUTHORITY.
15 (G) AUTHORIZATION TO MAKE BUSINESS IMPROVEMENTS AND PROVIDE
16 ADMINISTRATIVE SERVICES.--AN AUTHORITY MAY BE ESTABLISHED TO
17 MAKE BUSINESS IMPROVEMENTS OR PROVIDE ADMINISTRATIVE SERVICES IN
18 DISTRICTS DESIGNATED BY A MUNICIPALITY AND ZONED COMMERCIAL OR
19 USED FOR GENERAL COMMERCIAL PURPOSES OR IN CONTIGUOUS AREAS IF
20 THE INCLUSION OF A CONTIGUOUS AREA IS DIRECTLY RELATED TO THE
21 IMPROVEMENTS AND SERVICES PROPOSED BY THE AUTHORITY. THE
22 AUTHORITY SHALL MAKE PLANNING OR FEASIBILITY STUDIES TO
23 DETERMINE NEEDED IMPROVEMENTS OR ADMINISTRATIVE SERVICES.
24 (1) THE AUTHORITY SHALL BE REQUIRED TO HOLD A PUBLIC
25 HEARING ON THE PROPOSED IMPROVEMENT OR SERVICE, THE ESTIMATED
26 COSTS THEREOF AND THE PROPOSED METHOD OF ASSESSMENT AND
27 CHARGES. NOTICE OF THE HEARING SHALL BE ADVERTISED AT LEAST
28 TEN DAYS BEFORE IT OCCURS IN A NEWSPAPER WHOSE CIRCULATION IS
29 WITHIN THE MUNICIPALITY WHERE THE AUTHORITY IS ESTABLISHED.
30 AT THE PUBLIC HEARING ANY INTERESTED PARTY MAY BE HEARD.
20010S0780B1186 - 89 -
1 (2) WRITTEN NOTICE OF THE PROPOSED IMPROVEMENT OR
2 SERVICE, ITS ESTIMATED COST, THE PROPOSED METHOD OF
3 ASSESSMENT AND CHARGES AND PROJECT COST TO INDIVIDUAL
4 PROPERTY OWNERS SHALL BE GIVEN TO EACH PROPERTY OWNER AND
5 COMMERCIAL LESSEE IN BENEFITED PROPERTIES IN THE DISTRICT AT
6 LEAST 30 DAYS PRIOR TO THE PUBLIC HEARING.
7 (3) THE AUTHORITY SHALL TAKE NO ACTION ON PROPOSED
8 IMPROVEMENT OR SERVICE IF OBJECTION IS MADE IN WRITING BY
9 PERSONS REPRESENTING THE OWNERSHIP OF ONE-THIRD OF THE
10 BENEFITED PROPERTIES IN THE DISTRICT OR BY PROPERTY OWNERS OF
11 THE PROPOSED DISTRICT WHOSE PROPERTY VALUATION AS ASSESSED
12 FOR TAXABLE PURPOSES SHALL AMOUNT TO MORE THAN ONE-THIRD OF
13 THE TOTAL PROPERTY VALUATION OF THE DISTRICT. OBJECTION SHALL
14 BE MADE WITHIN 45 DAYS AFTER THE CONCLUSION OF THE PUBLIC
15 HEARING. OBJECTIONS MUST BE IN WRITING, SIGNED AND FILED IN
16 THE OFFICE OF THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH
17 THE DISTRICT IS LOCATED AND IN THE REGISTERED OFFICE OF THE
18 AUTHORITY.
19 § 5608. BONDS.
20 (A) AUTHORIZATION.--
21 (1) A BOND MUST BE AUTHORIZED BY RESOLUTION OF THE
22 BOARD. THE RESOLUTION MUST SPECIFY ALL OF THE FOLLOWING:
23 (I) SERIES.
24 (II) DATE OF MATURITY NOT EXCEEDING 40 YEARS FROM
25 DATE OF ISSUE.
26 (III) INTEREST, NOT EXCEEDING 6% ANNUALLY, PAYABLE
27 SEMIANNUALLY. FOR THE PERIOD AFTER JULY 1, 1970, AND
28 ENDING JUNE 30, 1976, THE RATE OF INTEREST MAY EXCEED 6%
29 AS DETERMINED BY THE CORPORATE AUTHORITIES AS NECESSARY
30 TO ISSUE AND SELL THE BOND.
20010S0780B1186 - 90 -
1 (IV) DENOMINATION.
2 (V) FORM, EITHER COUPON OR FULLY REGISTERED WITHOUT
3 COUPONS.
4 (VI) REGISTRATION, EXCHANGEABILITY AND
5 INTERCHANGEABILITY PRIVILEGES.
6 (VII) MEDIUM OF PAYMENT AND PLACE OF PAYMENT.
7 (VIII) TERMS OF REDEMPTION, NOT EXCEEDING 105% OF
8 THE PRINCIPAL AMOUNT OF THE BOND.
9 (IX) PRIORITIES IN THE REVENUES OR RECEIPTS OF THE
10 AUTHORITY.
11 (2) A BOND MUST BE SIGNED BY OR SHALL BEAR THE FACSIMILE
12 SIGNATURE OF SUCH OFFICERS AS THE AUTHORITY DETERMINES.
13 COUPON BONDS MUST HAVE ATTACHED INTEREST COUPONS BEARING THE
14 FACSIMILE SIGNATURE OF THE TREASURER OF THE AUTHORITY, AS
15 PRESCRIBED IN THE AUTHORIZING RESOLUTION. A BOND MAY BE
16 ISSUED AND DELIVERED NOTWITHSTANDING THAT ONE OR MORE OF THE
17 SIGNING OFFICERS OR THE TREASURER HAS CEASED TO BE AN OFFICER
18 WHEN THE BOND IS ACTUALLY DELIVERED.
19 (3) A BOND MAY BE SOLD AT PUBLIC OR PRIVATE SALE FOR A
20 PRICE DETERMINED BY THE AUTHORITY. NO BOND MAY BE SOLD AT
21 LESS THAN 98% OF THE PRINCIPAL AMOUNT PLUS INTEREST CHARGES.
22 THE INTEREST COST TO MATURITY OF THE MONEY RECEIVED FOR A
23 BOND ISSUE MAY NOT EXCEED 6% ANNUALLY. FOR THE PERIOD AFTER
24 JULY 1, 1970, AND BEFORE JUNE 30, 1976, THE RATE OF INTEREST
25 MAY EXCEED 6% ANNUALLY AS DETERMINED BY THE CORPORATE
26 AUTHORITIES AS NECESSARY TO ISSUE AND SELL THE BOND.
27 (4) PENDING THE PREPARATION OF A DEFINITIVE BOND,
28 INTERIM RECEIPTS OR TEMPORARY BONDS, WITH OR WITHOUT COUPONS,
29 MAY BE ISSUED TO THE PURCHASER AND MAY CONTAIN TERMS AND
30 CONDITIONS AS THE AUTHORITY DETERMINES.
20010S0780B1186 - 91 -
1 (B) PROVISIONS.--A RESOLUTION AUTHORIZING A BOND MAY CONTAIN
2 PROVISIONS, WHICH SHALL BE PART OF THE CONTRACT WITH THE BOND
3 HOLDER, AS TO THE FOLLOWING:
4 (1) PLEDGING THE FULL FAITH AND CREDIT OF THE AUTHORITY
5 BUT NOT OF THE COMMONWEALTH OR ANY POLITICAL SUBDIVISIONS FOR
6 THE OBLIGATION OR RESTRICTING THE FULL FAITH AND CREDIT OF
7 THE AUTHORITY TO ALL OR ANY OF THE REVENUE OF THE AUTHORITY,
8 FROM ALL OR ANY PROJECTS OR PROPERTIES.
9 (2) THE CONSTRUCTION, IMPROVEMENT, OPERATION, EXTENSION,
10 ENLARGEMENT, MAINTENANCE AND REPAIR OF THE PROJECT AND THE
11 DUTIES OF THE AUTHORITY WITH REFERENCE TO THESE MATTERS.
12 (3) TERMS AND PROVISIONS OF THE BOND.
13 (4) LIMITATIONS ON THE PURPOSES TO WHICH THE PROCEEDS OF
14 THE BOND OR OF A LOAN OR GRANT BY THE UNITED STATES MAY BE
15 APPLIED.
16 (5) RATE OF TOLLS AND OTHER CHARGES FOR USE OF THE
17 FACILITIES OF, OR FOR THE SERVICES RENDERED BY, THE
18 AUTHORITY.
19 (6) THE SETTING ASIDE, REGULATION AND DISPOSITION OF
20 RESERVES AND SINKING FUNDS.
21 (7) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS.
22 (8) TERMS AND PROVISIONS OF ANY DEED OF TRUST OR
23 INDENTURE SECURING THE BOND, OR UNDER WHICH ANY DEED OF TRUST
24 OR INDENTURE MAY BE ISSUED.
25 (9) OTHER ADDITIONAL AGREEMENTS WITH THE HOLDER OF THE
26 BOND.
27 (C) DEEDS OF TRUST.--AN AUTHORITY MAY ENTER INTO ANY DEED OF
28 TRUST, INDENTURE OR OTHER AGREEMENT, WITH ANY BANK OR TRUST
29 COMPANY OR OTHER PERSON IN THE UNITED STATES HAVING POWER TO
30 ENTER INTO SUCH AN ARRANGEMENT, INCLUDING ANY FEDERAL AGENCY, AS
20010S0780B1186 - 92 -
1 SECURITY FOR A BOND, AND MAY ASSIGN AND PLEDGE ALL OR ANY OF THE
2 REVENUES OR RECEIPTS OF THE AUTHORITY UNDER SUCH DEED, INDENTURE
3 OR AGREEMENT. THE DEED OF TRUST, INDENTURE OR OTHER AGREEMENT
4 MAY CONTAIN PROVISIONS AS MAY BE CUSTOMARY IN SUCH INSTRUMENTS
5 OR AS THE AUTHORITY MAY AUTHORIZE, INCLUDING PROVISIONS AS TO:
6 (1) CONSTRUCTION, FINANCING, IMPROVEMENT, OPERATION,
7 MAINTENANCE AND REPAIR OF A PROJECT AND THE DUTIES OF THE
8 AUTHORITY WITH REFERENCE TO THESE MATTERS;
9 (2) APPLICATION OF FUNDS AND THE SAFEGUARDING OF FUNDS
10 ON HAND OR ON DEPOSIT;
11 (3) RIGHTS AND REMEDIES OF TRUSTEE AND BONDHOLDER,
12 INCLUDING RESTRICTIONS UPON THE INDIVIDUAL RIGHT OF ACTION OF
13 A BONDHOLDER; AND
14 (4) TERMS AND PROVISIONS OF THE BOND OR THE RESOLUTION
15 AUTHORIZING THE ISSUANCE OF THE BOND.
16 (D) NEGOTIABILITY.--A BOND SHALL HAVE ALL THE QUALITIES OF
17 NEGOTIABLE INSTRUMENTS UNDER 13 PA.C.S. DIV. 3 (RELATING TO
18 NEGOTIABLE INSTRUMENTS).
19 § 5609. BONDHOLDERS.
20 (A) RIGHTS AND REMEDIES.--THE RIGHTS AND THE REMEDIES
21 CONFERRED UPON BONDHOLDERS UNDER THIS SECTION SHALL BE IN
22 ADDITION TO AND NOT IN LIMITATION OF RIGHTS AND REMEDIES
23 LAWFULLY GRANTED THEM BY THE RESOLUTION FOR THE BOND ISSUE OR BY
24 ANY DEED OF TRUST, INDENTURE OR OTHER AGREEMENT UNDER WHICH THE
25 BOND IS ISSUED.
26 (B) TRUSTEE.--
27 (1) THE HOLDERS OF 25% OF THE AGGREGATE PRINCIPAL AMOUNT
28 OF OUTSTANDING BONDS MAY APPOINT A TRUSTEE TO REPRESENT THE
29 BONDHOLDERS FOR PURPOSES OF THIS CHAPTER IF ANY OF THE
30 FOLLOWING APPLY:
20010S0780B1186 - 93 -
1 (I) THE AUTHORITY DEFAULTS IN THE PAYMENT OF
2 PRINCIPAL OR INTEREST ON A BOND, AT MATURITY OR UPON CALL
3 FOR REDEMPTION; AND THE DEFAULT CONTINUES FOR 30 DAYS.
4 (II) THE AUTHORITY FAILS TO COMPLY WITH THIS
5 CHAPTER.
6 (III) THE AUTHORITY DEFAULTS IN AN AGREEMENT MADE
7 WITH THE BONDHOLDERS.
8 (2) THE TRUSTEE MUST BE APPOINTED BY INSTRUMENT:
9 (I) FILED IN THE OFFICE OF THE RECORDER OF DEEDS OF
10 THE COUNTY WHERE THE AUTHORITY IS LOCATED; AND
11 (II) PROVED OR ACKNOWLEDGED IN THE SAME MANNER AS A
12 DEED TO BE RECORDED.
13 (3) A TRUSTEE UNDER THIS SUBSECTION AND A TRUSTEE UNDER
14 ANY DEED OF TRUST, INDENTURE OR OTHER AGREEMENT, MAY AND,
15 UPON WRITTEN REQUEST OF THE HOLDERS OF 25% OF THE AGGREGATE
16 PRINCIPAL AMOUNT OF OUTSTANDING BONDS OR SUCH OTHER
17 PERCENTAGE SPECIFIED IN THE DEED OF TRUST, INDENTURE OR OTHER
18 AGREEMENT, SHALL, IN THE TRUSTEE'S NAME DO ANY OF THE
19 FOLLOWING:
20 (I) BY ACTION AT LAW OR IN EQUITY, ENFORCE RIGHTS OF
21 THE BONDHOLDERS. THIS SUBPARAGRAPH INCLUDES THE RIGHT TO
22 REQUIRE THE AUTHORITY TO:
23 (A) COLLECT RATES, RENTALS OR OTHER CHARGES
24 ADEQUATE TO CARRY OUT ANY AGREEMENT AS TO, OR PLEDGE
25 OF, REVENUES OR RECEIPTS OF THE AUTHORITY;
26 (B) CARRY OUT ANY OTHER AGREEMENTS WITH, OR FOR
27 THE BENEFIT OF, BONDHOLDERS; AND
28 (C) PERFORM ITS AND THEIR DUTIES UNDER THIS
29 CHAPTER.
30 (II) BRING SUIT UPON THE BOND.
20010S0780B1186 - 94 -
1 (III) BY ACTION IN EQUITY REQUIRE THE AUTHORITY TO
2 ACCOUNT AS IF IT WERE THE TRUSTEE OF AN EXPRESS TRUST FOR
3 THE BONDHOLDERS.
4 (IV) ENJOIN AN ACTION WHICH MAY BE UNLAWFUL OR IN
5 VIOLATION OF THE RIGHTS OF THE BONDHOLDERS.
6 (V) BY NOTICE IN WRITING TO THE AUTHORITY, DECLARE
7 ALL BONDS DUE AND PAYABLE AND, IF ALL DEFAULTS ARE MADE
8 GOOD, WITH THE CONSENT OF THE BONDHOLDERS OF 25% OF THE
9 PRINCIPAL AMOUNT OF OUTSTANDING BONDS, OR SUCH OTHER
10 PERCENTAGE SPECIFIED IN THE DEED OF TRUST, INDENTURE OR
11 OTHER AGREEMENT, TO ANNUL SUCH DECLARATION AND ITS
12 CONSEQUENCES.
13 (4) A TRUSTEE UNDER THIS SUBSECTION OR A TRUSTEE UNDER
14 ANY DEED OF TRUST, INDENTURE OR OTHER AGREEMENT, WHETHER OR
15 NOT ALL BONDS HAVE BEEN DECLARED DUE AND PAYABLE, SHALL BE
16 ENTITLED TO THE APPOINTMENT OF A RECEIVER.
17 (5) A RECEIVER UNDER PARAGRAPH (4):
18 (I) MAY ENTER AND TAKE POSSESSION OF A FACILITY OF
19 THE AUTHORITY OR ANY PART OF A FACILITY THE REVENUES OR
20 RECEIPTS FROM WHICH ARE OR MAY BE APPLICABLE TO THE
21 PAYMENT OF THE BONDS IN DEFAULT;
22 (II) MAY OPERATE AND MAINTAIN THE FACILITY OR PART;
23 (III) MAY COLLECT AND RECEIVE ALL RENTALS AND OTHER
24 REVENUES ARISING FROM THE FACILITY AFTER ENTRY AND
25 POSSESSION, IN THE SAME MANNER AS THE AUTHORITY OR THE
26 BOARD MIGHT DO; AND
27 (IV) SHALL DEPOSIT MONEY COLLECTED UNDER
28 SUBPARAGRAPH (III) IN A SEPARATE ACCOUNT AND APPLY THE
29 MONEY AS THE COURT DIRECTS.
30 (6) NOTHING IN THIS CHAPTER AUTHORIZES A RECEIVER
20010S0780B1186 - 95 -
1 APPOINTED UNDER PARAGRAPH (4) TO SELL, ASSIGN, MORTGAGE OR
2 OTHERWISE DISPOSE OF ASSETS OF WHATEVER KIND AND CHARACTER
3 BELONGING TO THE AUTHORITY. IT IS THE INTENTION OF THIS
4 CHAPTER TO LIMIT THE POWERS OF THE RECEIVER TO THE OPERATION
5 AND MAINTENANCE OF THE FACILITIES OF THE AUTHORITY AS THE
6 COURT DIRECTS. NO BONDHOLDER OR TRUSTEE SHALL HAVE THE RIGHT
7 IN AN ACTION AT LAW OR IN EQUITY TO COMPEL A RECEIVER, NOR
8 SHALL A RECEIVER BE AUTHORIZED OR A COURT EMPOWERED TO DIRECT
9 THE RECEIVER, TO SELL, ASSIGN, MORTGAGE OR OTHERWISE DISPOSE
10 OF ASSETS OF WHATEVER KIND OR CHARACTER BELONGING TO THE
11 AUTHORITY.
12 (7) THE TRUSTEE HAS ALL POWERS NECESSARY OR APPROPRIATE
13 FOR THE EXERCISE OF FUNCTIONS SPECIFICALLY SET FORTH IN THIS
14 SUBSECTION.
15 (C) JURISDICTION.--THE COURT OF COMMON PLEAS OF THE JUDICIAL
16 DISTRICT IN WHICH THE AUTHORITY IS LOCATED SHALL HAVE
17 JURISDICTION OF AN ACTION BY THE TRUSTEE ON BEHALF OF THE
18 BONDHOLDERS.
19 (D) COSTS AND FEES.--IN AN ACTION BY THE TRUSTEE THE COURT
20 COSTS, ATTORNEY FEES AND EXPENSES OF THE TRUSTEE AND OF THE
21 RECEIVER AND ALL COSTS AND DISBURSEMENTS ALLOTED BY THE COURT
22 SHALL BE A FIRST CHARGE ON REVENUE AND RECEIPTS DERIVED FROM THE
23 FACILITIES OF THE AUTHORITY, THE REVENUE OR RECEIPTS FROM WHICH
24 ARE OR MAY BE APPLICABLE TO THE PAYMENT OF THE BONDS SO IN
25 DEFAULT.
26 (E) DEFINITION.--AS USED IN THIS SECTION, THE TERMS
27 "ADVERTISEMENT" OR "DUE PUBLIC NOTICE" SHALL MEAN A NOTICE
28 PUBLISHED AT LEAST TEN DAYS BEFORE THE AWARD OF A CONTRACT, IN A
29 NEWSPAPER OF GENERAL CIRCULATION PUBLISHED IN THE MUNICIPALITY
30 WHERE THE AUTHORITY HAS ITS PRINCIPAL OFFICE. IF NO NEWSPAPER IS
20010S0780B1186 - 96 -
1 PUBLISHED IN THAT MUNICIPALITY, THE NOTICE SHALL BE PUBLISHED IN
2 A NEWSPAPER IN THE COUNTY WHERE THE AUTHORITY HAS ITS PRINCIPAL
3 OFFICE. NOTICE MAY BE WAIVED IF THE AUTHORITY DETERMINES AN
4 EMERGENCY EXISTS, WHICH REQUIRES THE AUTHORITY TO PURCHASE THE
5 SUPPLIES AND MATERIALS IMMEDIATELY.
6 § 5610. GOVERNING BODY.
7 (A) BOARD.--THE POWERS OF EACH AUTHORITY SHALL BE EXERCISED
8 BY A BOARD COMPOSED AS FOLLOWS:
9 (1) IF THE AUTHORITY IS INCORPORATED BY ONE
10 MUNICIPALITY, THE BOARD SHALL CONSIST OF A NUMBER OF MEMBERS,
11 NOT LESS THAN FIVE, AS ENUMERATED IN THE ARTICLES OF
12 INCORPORATION. THE GOVERNING BODY OF THE MUNICIPALITY SHALL
13 APPOINT THE MEMBERS OF THE BOARD, WHOSE TERMS OF OFFICE SHALL
14 COMMENCE ON THE DATE OF APPOINTMENT. ONE MEMBER SHALL SERVE
15 FOR ONE YEAR, ONE FOR TWO YEARS, ONE FOR THREE YEARS, ONE FOR
16 FOUR YEARS AND ONE FOR FIVE YEARS COMMENCING WITH THE FIRST
17 MONDAY IN JANUARY NEXT SUCCEEDING THE DATE OF INCORPORATION
18 OR AMENDMENT. IF THERE ARE MORE THAN FIVE MEMBERS OF THE
19 BOARD, THEIR TERMS SHALL BE STAGGERED IN A SIMILAR MANNER FOR
20 TERMS OF ONE TO FIVE YEARS FROM THE FIRST MONDAY IN JANUARY
21 NEXT SUCCEEDING. THEREAFTER, WHENEVER A VACANCY HAS OCCURRED
22 BY REASON OF THE EXPIRATION OF THE TERM OF ANY MEMBER, THE
23 GOVERNING BODY SHALL APPOINT A MEMBER OF THE BOARD FOR A TERM
24 OF FIVE YEARS FROM THE DATE OF EXPIRATION OF THE PRIOR TERM
25 TO SUCCEED THE MEMBER WHOSE TERM HAS EXPIRED.
26 (2) IF THE AUTHORITY IS INCORPORATED BY TWO OR MORE
27 MUNICIPALITIES, THE BOARD SHALL CONSIST OF A NUMBER OF
28 MEMBERS AT LEAST EQUAL TO THE NUMBER OF MUNICIPALITIES
29 INCORPORATING THE AUTHORITY, BUT IN NO EVENT LESS THAN FIVE.
30 WHEN ONE OR MORE ADDITIONAL MUNICIPALITIES JOIN AN EXISTING
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1 AUTHORITY, EACH OF THE JOINING MUNICIPALITIES SHALL HAVE
2 SIMILAR MEMBERSHIP ON THE BOARD AS THE MUNICIPALITIES THEN
3 MEMBERS OF THE AUTHORITY AND THE JOINING MUNICIPALITIES MAY
4 DETERMINE BY APPROPRIATE RESOLUTIONS. THE MEMBERS OF THE
5 BOARD OF A JOINT AUTHORITY SHALL EACH BE APPOINTED BY THE
6 GOVERNING BODY OF THE INCORPORATING OR JOINING MUNICIPALITY
7 HE REPRESENTS, AND THEIR TERMS OF OFFICE SHALL COMMENCE ON
8 THE DATE OF APPOINTMENT. ONE MEMBER SHALL SERVE FOR ONE YEAR,
9 ONE FOR TWO YEARS, ONE FOR THREE YEARS, ONE FOR FOUR YEARS
10 AND ONE FOR FIVE YEARS FROM THE FIRST MONDAY IN JANUARY NEXT
11 SUCCEEDING THE DATE OF INCORPORATION, AMENDMENT OR JOINDER,
12 AND IF THERE ARE MORE THAN FIVE MEMBERS OF THE BOARD, THEIR
13 TERMS SHALL BE STAGGERED IN A SIMILAR MANNER FOR TERMS OF
14 FROM ONE TO FIVE YEARS COMMENCING WITH THE FIRST MONDAY IN
15 JANUARY NEXT SUCCEEDING. THEREAFTER, WHENEVER A VACANCY HAS
16 OCCURRED BY REASON OF THE EXPIRATION OF THE TERM OF ANY
17 MEMBER, THE GOVERNING BODY OF THE MUNICIPALITY WHICH HAS THE
18 POWER OF APPOINTMENT SHALL APPOINT A MEMBER OF THE BOARD FOR
19 A TERM OF FIVE YEARS FROM THE DATE OF EXPIRATION OF THE PRIOR
20 TERM.
21 (B) RESIDENCY.--EXCEPT AS PROVIDED FOR IN SUBSECTION (C),
22 THE MEMBERS OF THE BOARD, EACH OF WHOM SHALL BE A RESIDENT OF
23 THE MUNICIPALITY BY WHICH HE IS APPOINTED, SHALL BE APPOINTED,
24 THEIR TERMS FIXED AND STAGGERED AND VACANCIES FILLED, PURSUANT
25 TO THE ARTICLES OF INCORPORATION OR THE APPLICATION OF
26 MEMBERSHIP UNDER SECTION 5604 (RELATING TO MUNICIPALITIES
27 WITHDRAWING FROM AND JOINING IN JOINT AUTHORITIES). WHERE TWO OR
28 MORE MUNICIPALITIES ARE MEMBERS OF THE AUTHORITY, THEY SHALL BE
29 APPORTIONED PURSUANT TO THE ARTICLES OF INCORPORATION OR THE
30 APPLICATION FOR MEMBERSHIP UNDER SECTION 5604. EXCEPT FOR
20010S0780B1186 - 98 -
1 SPECIAL SERVICE DISTRICTS LOCATED IN WHOLE OR IN PART IN CITIES
2 OF THE FIRST CLASS, A MAJORITY OF AN AUTHORITY'S BOARD MEMBERS
3 SHALL BE CITIZENS RESIDING IN THE INCORPORATING MUNICIPALITY OR
4 INCORPORATING MUNICIPALITIES OF THE AUTHORITY.
5 (C) GRADE CROSSINGS.--IF THE AUTHORITY IS CREATED FOR THE
6 PURPOSE OF ELIMINATING GRADE CROSSINGS, THE MEMBERS OF THE
7 BOARD, THE MAJORITY OF WHOM SHALL BE CITIZENS OF THE
8 MUNICIPALITY BY WHICH THEY ARE APPOINTED OR OF A MUNICIPALITY
9 INTO WHICH ONE OR MORE OF THE PROJECTS OF THE AUTHORITY EXTENDS
10 OR IS TO EXTEND OR TO WHICH ONE OR MORE OF THE PROJECTS HAS BEEN
11 OR IS TO BE LEASED, SHALL BE APPOINTED, THEIR TERMS FIXED AND
12 STAGGERED, AND VACANCIES FILLED, PURSUANT TO THE ARTICLES OF
13 INCORPORATION OR THE APPLICATION OF MEMBERSHIP UNDER SECTION
14 5604. WHERE TWO OR MORE MUNICIPALITIES ARE MEMBERS OF THE
15 AUTHORITY, THEY SHALL BE APPORTIONED PURSUANT TO THE ARTICLES OF
16 INCORPORATION OR THE APPLICATION FOR MEMBERSHIP UNDER SECTION
17 5604.
18 (D) SUCCESSOR.--MEMBERS SHALL HOLD OFFICE UNTIL THEIR
19 SUCCESSORS HAVE BEEN APPOINTED AND MAY SUCCEED THEMSELVES AND,
20 EXCEPT MEMBERS OF THE BOARDS OF AUTHORITIES ORGANIZED OR CREATED
21 BY A SCHOOL DISTRICT, SHALL RECEIVE SUCH SALARIES AS MAY BE
22 DETERMINED BY THE GOVERNING BODY OF THE MUNICIPALITY, BUT NO
23 SALARIES SHALL BE INCREASED OR DIMINISHED BY A GOVERNING BODY
24 DURING THE TERM FOR WHICH THE MEMBER SHALL HAVE BEEN APPOINTED.
25 MEMBERS OF THE BOARD OF ANY AUTHORITY ORGANIZED OR CREATED BY A
26 SCHOOL DISTRICT SHALL RECEIVE NO COMPENSATION FOR THEIR
27 SERVICES. A MEMBER MAY BE REMOVED FOR CAUSE BY THE COURT OF
28 COMMON PLEAS OF THE COUNTY IN WHICH THE AUTHORITY IS LOCATED
29 AFTER HAVING BEEN PROVIDED WITH A COPY OF THE CHARGES AGAINST
30 HIM FOR AT LEAST TEN DAYS AND AFTER HAVING BEEN PROVIDED A FULL
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1 HEARING BY THE COURT. IF A VACANCY SHALL OCCUR BY REASON OF THE
2 DEATH, DISQUALIFICATION, RESIGNATION OR REMOVAL OF A MEMBER, THE
3 MUNICIPAL AUTHORITIES SHALL APPOINT A SUCCESSOR TO FILL HIS
4 UNEXPIRED TERM. IN JOINT AUTHORITIES, SUCH VACANCIES SHALL BE
5 FILLED BY THE MUNICIPAL AUTHORITIES OF THE MUNICIPALITY IN THE
6 REPRESENTATION OF WHICH THE VACANCY OCCURS. IF ANY MUNICIPALITY
7 WITHDRAWS FROM A JOINT AUTHORITY, THE TERM OF ANY MEMBER
8 APPOINTED FROM THE MUNICIPALITY SHALL IMMEDIATELY TERMINATE.
9 (E) QUORUM.--A MAJORITY OF THE MEMBERS SHALL CONSTITUTE A
10 QUORUM OF THE BOARD FOR THE PURPOSE OF ORGANIZING AND CONDUCTING
11 THE BUSINESS OF THE AUTHORITY AND FOR ALL OTHER PURPOSES, AND
12 ALL ACTION MAY BE TAKEN BY VOTE OF A MAJORITY OF THE MEMBERS
13 PRESENT UNLESS THE BYLAWS SHALL REQUIRE A LARGER NUMBER. THE
14 BOARD SHALL HAVE FULL AUTHORITY TO MANAGE THE PROPERTIES AND
15 BUSINESS OF THE AUTHORITY AND TO PRESCRIBE, AMEND AND REPEAL
16 BYLAWS, RULES AND REGULATIONS GOVERNING THE MANNER IN WHICH THE
17 BUSINESS OF THE AUTHORITY MAY BE CONDUCTED AND THE POWERS
18 GRANTED TO IT MAY BE EXERCISED AND EMBODIED. THE BOARD SHALL FIX
19 AND DETERMINE THE NUMBER OF OFFICERS, AGENTS AND EMPLOYEES OF
20 THE AUTHORITY AND THEIR RESPECTIVE POWERS, DUTIES AND
21 COMPENSATION AND MAY APPOINT TO SUCH OFFICE OR OFFICES ANY
22 MEMBER OF THE BOARD WITH SUCH POWERS, DUTIES AND COMPENSATION AS
23 THE BOARD MAY DEEM PROPER. THE TREASURER OF THE BOARD OF ANY
24 AUTHORITY ORGANIZED OR CREATED BY A SCHOOL DISTRICT SHALL GIVE
25 BOND IN SUCH SUMS AS MAY BE FIXED BY THE BYLAWS, WHICH BOND
26 SHALL BE SUBJECT TO THE APPROVAL OF THE BOARD AND THE PREMIUMS
27 FOR WHICH SHALL BE PAID BY THE AUTHORITY.
28 (F) REMOVAL.--UNLESS EXCUSED BY THE BOARD, A MEMBER OF A
29 BOARD WHO FAILS TO ATTEND THREE CONSECUTIVE MEETINGS OF THE
30 BOARD MAY BE REMOVED BY THE APPOINTING MUNICIPALITY UP TO 60
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1 DAYS AFTER THE DATE OF THE THIRD MEETING OF THE BOARD WHICH THE
2 MEMBER FAILED TO ATTEND.
3 § 5611. INVESTMENT OF AUTHORITY FUNDS.
4 (A) POWERS.--THE BOARD SHALL HAVE THE POWER TO:
5 (1) INVEST AUTHORITY SINKING FUNDS IN THE MANNER
6 PROVIDED FOR LOCAL GOVERNMENT UNITS BY SUBPART B OF PART VII
7 (RELATING TO INDEBTEDNESS AND BORROWING).
8 (2) INVEST MONEYS IN THE GENERAL FUND AND IN SPECIAL
9 FUNDS OF THE AUTHORITY OTHER THAN THE SINKING FUNDS AS
10 AUTHORIZED BY THIS SECTION.
11 (3) LIQUIDATE ANY SUCH INVESTMENT IN WHOLE OR IN PART,
12 BY DISPOSING OF SECURITIES OR WITHDRAWING FUNDS ON DEPOSIT.
13 ANY ACTION TAKEN TO MAKE OR TO LIQUIDATE ANY INVESTMENT SHALL
14 BE MADE BY THE OFFICERS DESIGNATED BY ACTION OF THE BOARD.
15 (B) INVESTMENT.--THE BOARD SHALL INVEST AUTHORITY FUNDS
16 CONSISTENT WITH SOUND BUSINESS PRACTICE AND THE STANDARD OF
17 PRUDENCE APPLICABLE TO THE STATE EMPLOYEES' RETIREMENT SYSTEM
18 SET FORTH IN 71 PA.C.S. § 5931(A) (RELATING TO MANAGEMENT OF
19 FUND AND ACCOUNTS).
20 (C) PROGRAM.--THE BOARD SHALL PROVIDE FOR AN INVESTMENT
21 PROGRAM SUBJECT TO RESTRICTIONS CONTAINED IN THIS CHAPTER AND IN
22 ANY OTHER APPLICABLE STATUTE AND ANY RULES AND REGULATIONS
23 ADOPTED BY THE BOARD.
24 (D) TYPES.--AUTHORIZED TYPES OF INVESTMENTS FOR AUTHORITY
25 FUNDS SHALL BE:
26 (1) UNITED STATES TREASURY BILLS.
27 (2) SHORT-TERM OBLIGATIONS OF THE UNITED STATES
28 GOVERNMENT OR ITS AGENCIES OR INSTRUMENTALITIES.
29 (3) DEPOSITS IN SAVINGS ACCOUNTS OR TIME DEPOSITS OR
30 SHARE ACCOUNTS OF INSTITUTIONS INSURED BY THE FEDERAL DEPOSIT
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1 INSURANCE CORPORATION OR THE FEDERAL SAVINGS AND LOAN
2 INSURANCE CORPORATION OR THE NATIONAL CREDIT UNION SHARE
3 INSURANCE FUND TO THE EXTENT THAT SUCH ACCOUNTS ARE SO
4 INSURED AND FOR ANY AMOUNTS ABOVE THE INSURED MAXIMUM IF THE
5 APPROVED COLLATERAL AS PROVIDED BY LAW SHALL BE PLEDGED BY
6 THE DEPOSITORY.
7 (4) OBLIGATIONS OF THE UNITED STATES OF AMERICA OR ANY
8 OF ITS AGENCIES OR INSTRUMENTALITIES BACKED BY THE FULL FAITH
9 AND CREDIT OF THE UNITED STATES OF AMERICA, THE COMMONWEALTH
10 OR ANY OF ITS AGENCIES OR INSTRUMENTALITIES BACKED BY THE
11 FULL FAITH AND CREDIT OF THE COMMONWEALTH, OR OF ANY
12 POLITICAL SUBDIVISION OF THE COMMONWEALTH OR ANY OF ITS
13 AGENCIES OR INSTRUMENTALITIES BACKED BY THE FULL FAITH AND
14 CREDIT OF THE POLITICAL SUBDIVISION.
15 (5) SHARES OF AN INVESTMENT COMPANY REGISTERED UNDER THE
16 INVESTMENT COMPANY ACT OF 1940 (54 STAT. 789, 15 U.S.C. §
17 80A-1 ET SEQ.), WHOSE SHARES ARE REGISTERED UNDER THE
18 SECURITIES ACT OF 1933 (48 STAT. 74, 15 U.S.C. § 77A ET
19 SEQ.), IF THE ONLY INVESTMENTS OF THAT COMPANY ARE IN THE
20 AUTHORIZED INVESTMENTS FOR AUTHORITY FUNDS LISTED IN
21 PARAGRAPHS (1) THROUGH (4).
22 (6) SOVEREIGN DEBT, IF THE INSTRUMENTS ARE DOLLAR
23 DENOMINATED AND BACKED BY THE FULL FAITH AND CREDIT OF THE
24 SOVEREIGN GOVERNMENT AND IF THE INVESTMENTS DO NOT EXCEED
25 MORE THAN 2% OF THE MARKET VALUE OF THE AUTHORITY'S ASSETS AT
26 THE TIME OF INVESTMENT AND IF THE MATURITY OF THE INSTRUMENTS
27 DOES NOT EXCEED 15 YEARS AND IF THE OBLIGATIONS ARE PERMITTED
28 INVESTMENTS OF THE STATE EMPLOYEES' RETIREMENT SYSTEM AND IT
29 IS ESTABLISHED THAT THE ISSUER HAD ISSUED SUCH SOVEREIGN DEBT
30 OVER A PERIOD OF AT LEAST 30 YEARS AND HAS NOT DEFAULTED ON
20010S0780B1186 - 102 -
1 THE PAYMENT EITHER OF PRINCIPAL OR INTEREST ON ITS
2 OBLIGATIONS. THIS PARAGRAPH SHALL ONLY APPLY TO A BOARD IN A
3 COUNTY OF THE FIRST CLASS, SECOND CLASS OR SECOND CLASS A OR
4 IN A CITY OF THE FIRST CLASS, SECOND CLASS, SECOND CLASS A OR
5 THIRD CLASS.
6 (E) AUTHORITY.--IN MAKING INVESTMENTS OF AUTHORITY FUNDS,
7 THE BOARD SHALL HAVE AUTHORITY TO:
8 (1) PERMIT ASSETS PLEDGED AS COLLATERAL UNDER SUBSECTION
9 (D)(3), TO BE POOLED IN ACCORDANCE WITH THE ACT OF AUGUST 6,
10 1971 (P.L.281, NO.72), ENTITLED "AN ACT STANDARDIZING THE
11 PROCEDURES FOR PLEDGES OF ASSETS TO SECURE DEPOSITS OF PUBLIC
12 FUNDS WITH BANKING INSTITUTIONS PURSUANT TO OTHER LAWS;
13 ESTABLISHING A STANDARD RULE FOR THE TYPES, AMOUNTS AND
14 VALUATIONS OF ASSETS ELIGIBLE TO BE USED AS COLLATERAL FOR
15 DEPOSITS OF PUBLIC FUNDS; PERMITTING ASSETS TO BE PLEDGED
16 AGAINST DEPOSITS ON A POOLED BASIS; AND AUTHORIZING THE
17 APPOINTMENT OF CUSTODIANS TO ACT AS PLEDGEES OF ASSETS."
18 (2) COMBINE MONEYS FROM MORE THAN ONE FUND UNDER
19 AUTHORITY CONTROL FOR THE PURCHASE OF A SINGLE INVESTMENT IF
20 LACK OF THE FUNDS COMBINED FOR THE PURPOSE SHALL BE ACCOUNTED
21 FOR SEPARATELY IN ALL RESPECTS AND IF EARNINGS FROM THE
22 INVESTMENT ARE SEPARATELY AND INDIVIDUALLY COMPUTED, RECORDED
23 AND CREDITED TO THE ACCOUNTS FROM WHICH THE INVESTMENT WAS
24 PURCHASED.
25 (3) JOIN WITH ONE OR MORE OTHER POLITICAL SUBDIVISIONS
26 AND MUNICIPAL AUTHORITIES IN ACCORDANCE WITH SUBCHAPTER A OF
27 CHAPTER 23 (RELATING TO INTERGOVERNMENTAL COOPERATION) IN THE
28 PURCHASE OF A SINGLE INVESTMENT PURSUANT TO THE REQUIREMENTS
29 OF PARAGRAPH (2).
30 § 5612. MONEY OF AUTHORITY.
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1 (A) TREASURER.--ALL MONEY OF ANY AUTHORITY FROM WHATEVER
2 SOURCE DERIVED SHALL BE PAID TO THE TREASURER OF THE AUTHORITY.
3 (B) REPORT.--EVERY AUTHORITY WHOSE FISCAL YEAR ENDS DECEMBER
4 31 SHALL FILE ON OR BEFORE JULY 1 AN ANNUAL REPORT OF ITS FISCAL
5 AFFAIRS COVERING THE PRECEDING CALENDAR YEAR WITH THE DEPARTMENT
6 OF COMMUNITY AND ECONOMIC DEVELOPMENT AND WITH THE MUNICIPALITY
7 CREATING THE AUTHORITY ON FORMS PREPARED AND DISTRIBUTED BY THE
8 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT. AUTHORITIES
9 WHOSE FISCAL YEAR DOES NOT END ON DECEMBER 31 SHALL FILE THE
10 REPORT WITHIN 90 DAYS AFTER THE END OF THEIR FISCAL YEAR. EVERY
11 AUTHORITY SHALL HAVE ITS BOOKS, ACCOUNTS AND RECORDS AUDITED
12 ANNUALLY BY A CERTIFIED PUBLIC ACCOUNTANT, AND A COPY OF HIS
13 AUDIT REPORT SHALL BE FILED IN THE SAME MANNER AND WITHIN THE
14 SAME TIME PERIOD AS THE ANNUAL REPORT. A CONCISE FINANCIAL
15 STATEMENT SHALL BE PUBLISHED ANNUALLY, AT LEAST ONCE IN A
16 NEWSPAPER OF GENERAL CIRCULATION IN THE MUNICIPALITY WHERE THE
17 PRINCIPAL OFFICE OF THE AUTHORITY IS LOCATED. IF THE PUBLICATION
18 IS NOT MADE BY THE AUTHORITY, THE MUNICIPALITY SHALL PUBLISH
19 SUCH STATEMENT AT THE EXPENSE OF THE AUTHORITY. IF THE AUTHORITY
20 FAILS TO MAKE SUCH AN AUDIT, THEN THE CONTROLLER, AUDITOR OR
21 ACCOUNTANT DESIGNATED BY THE MUNICIPALITY IS HEREBY AUTHORIZED
22 AND EMPOWERED FROM TIME TO TIME TO EXAMINE AT THE EXPENSE OF THE
23 AUTHORITY THE ACCOUNTS AND BOOKS OF IT, INCLUDING ITS RECEIPTS,
24 DISBURSEMENTS, CONTRACTS, LEASES, SINKING FUNDS, INVESTMENTS AND
25 ANY OTHER MATTERS RELATING TO ITS FINANCES, OPERATION AND
26 AFFAIRS.
27 (C) ATTORNEY GENERAL.--THE ATTORNEY GENERAL OF THE
28 COMMONWEALTH SHALL HAVE THE RIGHT TO EXAMINE THE BOOKS, ACCOUNTS
29 AND RECORDS OF ANY AUTHORITY.
30 § 5613. TRANSFER OF EXISTING FACILITIES TO AUTHORITY.
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1 (A) AUTHORIZATION.--ANY MUNICIPALITY, SCHOOL DISTRICT OR
2 OWNER MAY SELL, LEASE, LEND, GRANT, CONVEY, TRANSFER OR PAY OVER
3 TO ANY AUTHORITY WITH OR WITHOUT CONSIDERATION ANY PROJECT OR
4 ANY PART OF IT, ANY INTEREST IN REAL OR PERSONAL PROPERTY, ANY
5 FUNDS AVAILABLE FOR BUILDING CONSTRUCTION OR IMPROVEMENT
6 PURPOSES, INCLUDING THE PROCEEDS OF BONDS PREVIOUSLY OR
7 HEREAFTER ISSUED FOR BUILDING CONSTRUCTION OR IMPROVEMENT
8 PURPOSES, WHICH MAY BE USED BY THE AUTHORITY IN THE
9 CONSTRUCTION, IMPROVEMENT, MAINTENANCE OR OPERATION OF ANY
10 PROJECT. ANY MUNICIPALITY OR SCHOOL DISTRICT MAY TRANSFER,
11 ASSIGN AND SET OVER TO ANY AUTHORITY ANY CONTRACTS WHICH MAY
12 HAVE BEEN AWARDED BY THE MUNICIPALITY OR SCHOOL DISTRICT FOR THE
13 CONSTRUCTION OF PROJECTS NOT INITIATED OR COMPLETED. THE
14 TERRITORY BEING SERVED BY ANY PROJECT OR THE TERRITORY WITHIN
15 WHICH A PROJECT IS AUTHORIZED TO RENDER SERVICE AT THE TIME OF
16 THE ACQUISITION OF A PROJECT BY AN AUTHORITY SHALL INCLUDE THE
17 AREA SERVED BY THE PROJECT AND THE AREA IN WHICH THE PROJECT IS
18 AUTHORIZED TO SERVE AT THE TIME OF ACQUISITION AND ANY OTHER
19 AREA INTO WHICH THE SERVICE MAY BE EXTENDED, SUBJECT TO THE
20 LIMITATIONS OF SECTION 5607(A) (RELATING TO PURPOSES AND
21 POWERS).
22 (B) ACQUISITION.--
23 (1) AN AUTHORITY MAY NOT ACQUIRE BY ANY DEVICE OR MEANS,
24 INCLUDING A CONSOLIDATION, MERGER, PURCHASE OR LEASE, OR
25 THROUGH THE PURCHASE OF STOCK, BONDS OR OTHER SECURITIES,
26 TITLE TO OR POSSESSION OR USE OF ALL OR A SUBSTANTIAL PORTION
27 OF ANY EXISTING FACILITIES CONSTITUTING A PROJECT AS DEFINED
28 UNDER THIS CHAPTER, IF THE PROJECT IS SUBJECT TO THE
29 JURISDICTION OF THE PENNSYLVANIA PUBLIC UTILITY COMMISSION,
30 WITHOUT FIRST REPORTING TO AND ADVISING THE MUNICIPALITY
20010S0780B1186 - 105 -
1 WHICH CREATED OR WHICH ARE MEMBERS OF THE AUTHORITY, OF THE
2 AGREEMENT TO ACQUIRE, INCLUDING ALL ITS TERMS AND CONDITIONS.
3 (2) THE PROPOSED ACTION OF THE AUTHORITY AND THE
4 PROPOSED AGREEMENT TO ACQUIRE SHALL BE APPROVED BY THE
5 GOVERNING BODY OF THE MUNICIPALITY WHICH CREATED OR WHICH ARE
6 MEMBERS OF THE AUTHORITY AND TO WHICH THE REPORT IS MADE.
7 WHERE THERE ARE ONE OR TWO MEMBER MUNICIPALITIES OF THE
8 AUTHORITY, SUCH APPROVAL SHALL BE BY TWO-THIRDS VOTE OF ALL
9 OF THE MEMBERS OF THE GOVERNING BODY OR OF EACH OF THE
10 GOVERNING BODIES. IF THERE ARE MORE THAN TWO MEMBER
11 MUNICIPALITIES OF THE AUTHORITY, APPROVAL SHALL BE BY
12 MAJORITY VOTE OF ALL THE MEMBERS OF EACH GOVERNING BODY OF
13 TWO-THIRDS OF THE MEMBER MUNICIPALITIES.
14 (C) COMPLETE PROVISION.--NOTWITHSTANDING ANY OTHER PROVISION
15 OF LAW, THIS SECTION, WITHOUT REFERENCE TO ANY OTHER LAW, SHALL
16 BE DEEMED COMPLETE FOR THE ACQUISITION BY AGREEMENT OF PROJECTS,
17 AS DEFINED IN THIS CHAPTER, LOCATED WHOLLY WITHIN OR PARTIALLY
18 WITHOUT THE MUNICIPALITY CAUSING SUCH AUTHORITY TO BE
19 INCORPORATED, AND NO PROCEEDINGS OR OTHER ACTION SHALL BE
20 REQUIRED EXCEPT AS PROVIDED FOR IN THIS SECTION.
21 § 5614. COMPETITION IN AWARD OF CONTRACTS.
22 (A) SERVICES.--
23 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), ALL
24 CONSTRUCTION, RECONSTRUCTION, REPAIR OR WORK OF ANY NATURE
25 MADE BY AN AUTHORITY, IF THE ENTIRE COST, VALUE OR AMOUNT,
26 INCLUDING LABOR AND MATERIALS, EXCEEDS $10,000, SHALL BE DONE
27 ONLY UNDER CONTRACT TO BE ENTERED INTO BY THE AUTHORITY WITH
28 THE LOWEST RESPONSIBLE BIDDER, UPON PROPER TERMS, AFTER
29 PUBLIC NOTICE ASKING FOR COMPETITIVE BIDS AS PROVIDED IN THIS
30 SECTION.
20010S0780B1186 - 106 -
1 (2) PARAGRAPH (1) DOES NOT APPLY TO RECONSTRUCTION,
2 REPAIR OR WORK DONE BY EMPLOYEES OF THE AUTHORITY OR BY LABOR
3 SUPPLIED UNDER AGREEMENT WITH A FEDERAL OR STATE AGENCY WITH
4 SUPPLIES AND MATERIALS PURCHASED AS PROVIDED IN THIS SECTION.
5 (3) NO CONTRACT SHALL BE ENTERED INTO FOR CONSTRUCTION
6 OR IMPROVEMENT OR REPAIR OF A PROJECT, OR PORTION THEREOF,
7 UNLESS THE CONTRACTOR GIVES AN UNDERTAKING WITH A SUFFICIENT
8 SURETY APPROVED BY THE AUTHORITY AND IN AN AMOUNT FIXED BY
9 THE AUTHORITY FOR THE FAITHFUL PERFORMANCE OF THE CONTRACT.
10 (4) THE CONTRACT MUST PROVIDE, AMONG OTHER THINGS, THAT
11 THE PERSON OR CORPORATION ENTERING INTO THE CONTRACT WITH THE
12 AUTHORITY WILL PAY FOR ALL MATERIALS FURNISHED AND SERVICES
13 RENDERED FOR THE PERFORMANCE OF THE CONTRACT AND THAT ANY
14 PERSON OR CORPORATION FURNISHING MATERIALS OR RENDERING
15 SERVICES MAY MAINTAIN AN ACTION TO RECOVER FOR THEM AGAINST
16 THE OBLIGOR IN THE UNDERTAKING, AS THOUGH SUCH PERSON OR
17 CORPORATION WAS NAMED IN THE CONTRACT IF THE ACTION IS
18 BROUGHT WITHIN ONE YEAR AFTER THE TIME THE CAUSE OF ACTION
19 ACCRUED.
20 (5) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT
21 THE POWER OF THE AUTHORITY TO CONSTRUCT, REPAIR OR IMPROVE A
22 PROJECT OR PORTION THEREOF, OR ANY ADDITION, BETTERMENT OR
23 EXTENSION THERETO DIRECTED BY THE OFFICERS, AGENTS AND
24 EMPLOYEES OF THE AUTHORITY OR OTHERWISE THAN BY CONTRACT.
25 (B) SUPPLIES AND MATERIALS.--ALL SUPPLIES AND MATERIALS
26 COSTING AT LEAST $10,000 SHALL BE PURCHASED ONLY AFTER
27 ADVERTISEMENT AS PROVIDED IN THIS SECTION. THE AUTHORITY SHALL
28 ACCEPT THE LOWEST BID, KIND, QUALITY AND MATERIAL BEING EQUAL,
29 BUT THE AUTHORITY SHALL HAVE THE RIGHT TO REJECT ANY OR ALL BIDS
30 OR SELECT A SINGLE ITEM FROM ANY BID. THE PROVISIONS AS TO
20010S0780B1186 - 107 -
1 BIDDING SHALL NOT APPLY TO THE PURCHASE OF PATENTED AND
2 MANUFACTURED PRODUCTS OFFERED FOR SALE IN A NONCOMPETITIVE
3 MARKET OR SOLELY BY A MANUFACTURER'S AUTHORIZED DEALER.
4 (C) QUOTATIONS.--WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM
5 AT LEAST THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE
6 REQUESTED FOR A CONTRACT WHICH EXCEEDS $4,000 BUT IS LESS THAN
7 THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE BIDDING. IN
8 LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE KEPT ON FILE
9 SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS EXIST IN THE
10 MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO OBTAIN QUOTATIONS.
11 A WRITTEN RECORD OF TELEPHONIC PRICE QUOTATIONS SHALL BE MADE
12 AND SHALL CONTAIN AT LEAST THE DATE OF THE QUOTATION; THE NAME
13 OF THE CONTRACTOR AND THE CONTRACTOR'S REPRESENTATIVE; THE
14 CONSTRUCTION, RECONSTRUCTION, REPAIR, MAINTENANCE OR WORK WHICH
15 WAS THE SUBJECT OF THE QUOTATION; AND THE PRICE. WRITTEN PRICE
16 QUOTATIONS, WRITTEN RECORDS OF TELEPHONIC PRICE QUOTATIONS AND
17 MEMORANDA SHALL BE RETAINED FOR A PERIOD OF THREE YEARS.
18 (D) NOTICE.--THE TERM "ADVERTISEMENT" OR "PUBLIC NOTICE,"
19 WHEREVER USED IN THIS SECTION SHALL MEAN A NOTICE PUBLISHED AT
20 LEAST TEN DAYS BEFORE THE AWARD OF A CONTRACT IN A NEWSPAPER OF
21 GENERAL CIRCULATION PUBLISHED IN THE MUNICIPALITY WHERE THE
22 AUTHORITY HAS ITS PRINCIPAL OFFICE OR, IF NO NEWSPAPER OF
23 GENERAL CIRCULATION IS PUBLISHED THEREIN, IN A NEWSPAPER OF
24 GENERAL CIRCULATION IN THE COUNTY WHERE THE AUTHORITY HAS ITS
25 PRINCIPAL OFFICE.
26 (E) CONFLICT OF INTEREST.--NO MEMBER OF THE AUTHORITY OR
27 OFFICER OR EMPLOYEE OF THE AUTHORITY MAY DIRECTLY OR INDIRECTLY
28 BE A PARTY TO OR BE INTERESTED IN ANY CONTRACT OR AGREEMENT WITH
29 THE AUTHORITY IF THE CONTRACT OR AGREEMENT ESTABLISHES LIABILITY
30 AGAINST OR INDEBTEDNESS OF THE AUTHORITY. ANY CONTRACT OR
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1 AGREEMENT MADE IN VIOLATION OF THIS SUBSECTION IS VOID, AND NO
2 ACTION MAY BE MAINTAINED ON THE AGREEMENT AGAINST THE AUTHORITY.
3 (F) ENTRY INTO CONTRACTS.--
4 (1) SUBJECT TO SUBSECTION (E), AN AUTHORITY MAY ENTER
5 INTO AND CARRY OUT CONTRACTS OR ESTABLISH OR COMPLY WITH
6 RULES AND REGULATIONS CONCERNING LABOR AND MATERIALS AND
7 OTHER RELATED MATTERS IN CONNECTION WITH A PROJECT OR PORTION
8 THEREOF AS THE AUTHORITY DEEMS DESIRABLE, OR AS MAY BE
9 REQUESTED BY A FEDERAL AGENCY TO ASSIST IN THE FINANCING OF
10 THE PROJECT OR ANY PART THEREOF. THIS PARAGRAPH SHALL NOT
11 APPLY TO ANY OF THE FOLLOWING:
12 (I) A CASE IN WHICH THE AUTHORITY HAS TAKEN OVER BY
13 TRANSFER OR ASSIGNMENT A CONTRACT AUTHORIZED TO BE
14 ASSIGNED TO IT UNDER SECTION 5613 (RELATING TO TRANSFER
15 OF EXISTING FACILITIES TO AUTHORITY).
16 (II) A CONTRACT IN CONNECTION WITH THE CONSTRUCTION
17 OF A PROJECT WHICH THE AUTHORITY MAY HAVE HAD TRANSFERRED
18 TO IT BY ANY PERSON OR PRIVATE CORPORATION.
19 (2) THIS SUBSECTION IS NOT INTENDED TO LIMIT THE POWERS
20 OF AN AUTHORITY.
21 (G) COMPLIANCE.--A CONTRACT FOR THE CONSTRUCTION,
22 RECONSTRUCTION, ALTERATION, REPAIR, IMPROVEMENT OR MAINTENANCE
23 OF PUBLIC WORKS SHALL COMPLY WITH THE PROVISIONS OF THE ACT OF
24 MARCH 3, 1978 (P.L.6, NO.3), KNOWN AS THE STEEL PRODUCTS
25 PROCUREMENT ACT.
26 (H) EVASION.--
27 (1) AN AUTHORITY MAY NOT EVADE THE PROVISIONS OF THIS
28 SECTION AS TO BIDS OR PURCHASING MATERIALS OR CONTRACTING FOR
29 SERVICES PIECEMEAL FOR THE PURPOSE OF OBTAINING PRICES UNDER
30 $10,000 UPON TRANSACTIONS WHICH SHOULD, IN THE EXERCISE OF
20010S0780B1186 - 109 -
1 REASONABLE DISCRETION AND PRUDENCE, BE CONDUCTED AS ONE
2 TRANSACTION AMOUNTING TO MORE THAN $10,000.
3 (2) THIS SUBSECTION IS INTENDED TO MAKE UNLAWFUL THE
4 PRACTICE OF EVADING ADVERTISING REQUIREMENTS BY MAKING A
5 SERIES OF PURCHASES OR CONTRACTS EACH FOR LESS THAN THE
6 ADVERTISING REQUIREMENT PRICE OR BY MAKING SEVERAL
7 SIMULTANEOUS PURCHASES OR CONTRACTS EACH BELOW THAT PRICE
8 WHEN, IN EITHER CASE, THE TRANSACTION INVOLVED SHOULD HAVE
9 BEEN MADE AS ONE TRANSACTION FOR ONE PRICE.
10 (3) AN AUTHORITY MEMBER WHO VOTES TO UNLAWFULLY EVADE
11 THE PROVISIONS OF THIS SECTION AND WHO KNOWS THAT THE
12 TRANSACTION UPON WHICH THE MEMBER VOTES IS OR OUGHT TO BE A
13 PART OF A LARGER TRANSACTION AND THAT IT IS BEING DIVIDED IN
14 ORDER TO EVADE THE REQUIREMENTS AS TO ADVERTISING FOR BIDS
15 COMMITS A MISDEMEANOR OF THE THIRD DEGREE FOR EACH CONTRACT
16 ENTERED INTO AS A DIRECT RESULT OF THAT VOTE.
17 § 5615. ACQUISITION OF LANDS, WATER AND WATER RIGHTS.
18 (A) AUTHORIZATION.--
19 (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE AUTHORITY
20 SHALL HAVE THE POWER TO ACQUIRE, BY PURCHASE OR EMINENT
21 DOMAIN PROCEEDINGS, EITHER THE FEE OR THE RIGHTS, TITLE,
22 INTEREST OR EASEMENT IN SUCH LANDS, WATER AND WATER RIGHTS AS
23 THE AUTHORITY DEEMS NECESSARY FOR ANY OF THE PURPOSES OF THIS
24 CHAPTER. WATER AND WATER RIGHTS MAY NOT BE ACQUIRED UNLESS
25 APPROVAL IS OBTAINED FROM THE DEPARTMENT OF ENVIRONMENTAL
26 PROTECTION.
27 (2) THE RIGHT OF EMINENT DOMAIN DOES NOT APPLY TO:
28 (I) PROPERTY OWNED OR USED BY THE UNITED STATES, THE
29 COMMONWEALTH OR ANY OF ITS POLITICAL SUBDIVISIONS OR ANY
30 BODY POLITIC AND CORPORATE ORGANIZED AS AN AUTHORITY
20010S0780B1186 - 110 -
1 UNDER ANY LAW OF THE COMMONWEALTH OR BY ANY AGENCY.
2 (II) PROPERTY OF A PUBLIC SERVICE COMPANY.
3 (III) PROPERTY USED FOR BURIAL PURPOSES.
4 (IV) PLACES OF PUBLIC WORSHIP.
5 (B) EXERCISE.--THE RIGHT OF EMINENT DOMAIN SHALL BE
6 EXERCISED BY THE AUTHORITY IN THE MANNER PROVIDED BY LAW FOR THE
7 EXERCISE OF SUCH RIGHT BY MUNICIPALITIES OF THE SAME CLASS, AS
8 THE MUNICIPALITY WHICH ORGANIZED THE AUTHORITY. EMINENT DOMAIN
9 SHALL BE EXERCISED BY A JOINT AUTHORITY IN THE SAME MANNER AS IS
10 PROVIDED BY LAW FOR THE EXERCISE OF SUCH RIGHT BY MUNICIPALITIES
11 OF THE SAME CLASS AS THE MUNICIPALITY IN WHICH THE RIGHT OF
12 EMINENT DOMAIN IS TO BE EXERCISED. THE RIGHT OF EMINENT DOMAIN
13 HEREIN CONFERRED BY THIS SECTION MAY BE EXERCISED EITHER WITHIN
14 OR WITHOUT THE MUNICIPALITY.
15 § 5616. ACQUISITION OF CAPITAL STOCK.
16 (A) ACQUISITION.--IN THE EVENT THAT THE AUTHORITY SHALL OWN
17 90% OR MORE OF ALL THE OUTSTANDING CAPITAL STOCK ENTITLED TO
18 VOTE UPON LIQUIDATION AND DISSOLUTION AND WHICH IS NOT SUBJECT
19 BY ITS TERMS TO BE CALLED FOR REDEMPTION OF ANY CORPORATION
20 OWNING A PROJECT AND ORGANIZED AND EXISTING UNDER THE LAWS OF
21 THIS COMMONWEALTH, THE AUTHORITY SHALL HAVE THE POWER TO ACQUIRE
22 THE REMAINDER OF THE STOCK BY EMINENT DOMAIN AS A PART OF A PLAN
23 FOR THE LIQUIDATION OF THE CORPORATION.
24 (B) EXERCISE.--THE RIGHT OF EMINENT DOMAIN WITH RESPECT TO
25 THE REMAINDER OF CAPITAL STOCK SHALL BE EXERCISED BY THE
26 AUTHORITY PURSUANT TO THIS SUBSECTION. IN THE EVENT THAT THE
27 AUTHORITY HAS NOT AGREED WITH AN OWNER OF ANY OF THE CAPITAL
28 STOCK AS TO THE VALUE OF THE STOCK, THE AUTHORITY SHALL FILE,
29 WITH THE COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE
30 CORPORATION'S PRINCIPAL PLACE OF BUSINESS IS LOCATED, ITS BOND
20010S0780B1186 - 111 -
1 FOR THE BENEFIT OF THE OWNER AND FOR ANY OTHER PERSONS WHO MAY
2 BE FOUND ENTITLED TO RECEIVE DAMAGES FOR THE TAKING OF THE
3 CAPITAL STOCK, OF WHICH THE OWNER SHALL BE OBLIGEE, THE
4 CONDITION OF WHICH BOND SHALL BE THAT THE AUTHORITY SHALL PAY OR
5 CAUSE TO BE PAID TO THE OWNER OF THE STOCK OR TO SUCH OTHER
6 PERSONS AS MAY BE FOUND ENTITLED TO RECEIVE DAMAGES FOR THE
7 TAKING OF THE CAPITAL STOCK, AN AMOUNT AS THE OWNER OR SUCH
8 OTHER PERSONS SHALL BE ENTITLED TO RECEIVE FOR THE TAKING OF THE
9 STOCK, AFTER THE AMOUNT SHALL HAVE BEEN AGREED UPON BY THE
10 PARTIES OR ASSESSED IN THE MANNER PROVIDED BY SUBSECTION (D).
11 THE BOND SHALL BE ACCOMPANIED BY PROOF THAT NOTICE OF THE
12 PROPOSED FILING WAS MAILED BY REGISTERED MAIL NOT LESS THAN TEN
13 DAYS PRIOR TO THE PROPOSED FILING TO THE OWNER OF THE STOCK AT
14 HIS ADDRESS AS SHOWN BY THE RECORDS OF THE CORPORATION. UPON
15 APPROVAL BY THE COURT OF THE BOND, THE AUTHORITY SHALL BE VESTED
16 WITH ALL THE RIGHT, TITLE AND INTEREST IN AND TO THE STOCK, AND
17 THE OWNER AND ALL OTHER PERSONS SHALL CEASE TO HAVE ANY RIGHTS
18 OR INTEREST WITH REGARD TO THE STOCK OTHER THAN THE RIGHT TO
19 COMPENSATION FOR THE TAKING OF IT UNDER THE PROCEDURE SET FORTH
20 IN SUBSECTION (D). THE WORD "OWNER," AS USED IN THIS SUBSECTION,
21 SHALL MEAN THE PERSON IN WHOSE NAME THE STOCK IS REGISTERED ON
22 THE BOOKS OF THE CORPORATION.
23 (C) APPROVAL.--IN THE EVENT THAT THE AUTHORITY SHALL HAVE
24 CONTRACTED IN WRITING TO PURCHASE 90% OR MORE OF ANY OUTSTANDING
25 CAPITAL STOCK, IT SHALL HAVE THE RIGHT TO OBTAIN THE APPROVAL OF
26 THE COURT TO THE BOND REQUIRED BY THE PROVISIONS OF SUBSECTION
27 (B), BUT THE APPROVAL SHALL NOT BE EFFECTIVE FOR THE PURPOSES OF
28 THIS SECTION UNLESS AND UNTIL THERE IS ALSO FILED WITH THE
29 PROTHONOTARY OF THE COURT, WITHIN TEN DAYS AFTER THE APPROVAL, A
30 SWORN STATEMENT BY THE CHAIRMAN OF THE BOARD OF THE AUTHORITY,
20010S0780B1186 - 112 -
1 DULY ATTESTED BY THE SECRETARY OF THE AUTHORITY, THAT THE
2 AUTHORITY HAS BECOME THE OWNER OF 90% OR MORE OF THE CAPITAL
3 STOCK.
4 (D) APPRAISAL.--
5 (1) IF THE AUTHORITY AND THE FORMER OWNER OF THE STOCK
6 FAIL TO AGREE AS TO THE AMOUNT WHICH THE FORMER OWNER IS
7 ENTITLED TO RECEIVE AS COMPENSATION FOR THE TAKING OF THE
8 STOCK WITHIN 30 DAYS AFTER THE APPROVAL OF THE BOND BY THE
9 COURT UNDER THE PROVISIONS OF SUBSECTION (B) OR THE FILING OF
10 THE REQUIRED STATEMENT UNDER THE PROVISIONS OF SUBSECTION
11 (C), EITHER PARTY MAY APPLY BY PETITION TO THE COURT FOR THE
12 APPOINTMENT BY THE COURT OF THREE DISINTERESTED PERSONS TO
13 APPRAISE THE FAIR VALUE OF THE STOCK IMMEDIATELY PRIOR TO ITS
14 ACQUISITION BY THE AUTHORITY, WITHOUT REGARD TO ANY
15 DEPRECIATION OR APPRECIATION IN CONSEQUENCE OF THE
16 ACQUISITION.
17 (2) THE APPRAISERS OR A MAJORITY OF THEM SHALL FILE
18 THEIR AWARD, WHICH SHALL INCLUDE THE COSTS OF THE APPRAISAL,
19 WITH THE COURT AND SHALL MAIL A COPY TO EACH PARTY WITH THE
20 DATE OF FILING STATED THEREON. WHEN THE AWARD IS FILED WITH
21 THE COURT, THE PROTHONOTARY SHALL MARK THE SAME "CONFIRMED
22 NISI" AND IF NO EXCEPTIONS ARE FILED WITHIN TEN DAYS, HE
23 SHALL ENTER A DECREE THAT THE AWARD IS CONFIRMED ABSOLUTELY.
24 IF EXCEPTIONS TO THE AWARD ARE FILED BY EITHER PARTY BEFORE
25 THE AWARD IS CONFIRMED, THE COURT SHALL HEAR THE SAME AND
26 SHALL HAVE THE POWER TO CONFIRM, MODIFY, CHANGE OR OTHERWISE
27 CORRECT THE AWARD OR REFER THE SAME BACK TO THE SAME OR NEW
28 APPRAISERS WITH SIMILAR POWER AS TO THEIR AWARD.
29 § 5617. USE OF PROJECTS.
30 THE USE OF THE FACILITIES OF THE AUTHORITY AND THE OPERATION
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1 OF ITS BUSINESS SHALL BE SUBJECT TO THE RULES AND REGULATIONS AS
2 ADOPTED BY THE AUTHORITY. THE AUTHORITY SHALL NOT BE AUTHORIZED
3 TO DO ANYTHING WHICH WILL IMPAIR THE SECURITY OF THE HOLDERS OF
4 THE OBLIGATIONS OF THE AUTHORITY OR VIOLATE ANY AGREEMENTS WITH
5 THEM OR FOR THEIR BENEFIT.
6 § 5618. PLEDGE BY COMMONWEALTH.
7 (A) POWER OF AUTHORITIES.--THE COMMONWEALTH PLEDGES TO AND
8 AGREES WITH ANY PERSON, FIRM OR CORPORATION OR FEDERAL AGENCY
9 SUBSCRIBING TO OR ACQUIRING THE BONDS TO BE ISSUED BY THE
10 AUTHORITY FOR THE CONSTRUCTION, EXTENSION, IMPROVEMENT OR
11 ENLARGEMENT OF A PROJECT OR PART THEREOF THAT THE COMMONWEALTH
12 WILL NOT LIMIT OR ALTER THE RIGHTS VESTED BY THIS CHAPTER IN THE
13 AUTHORITY UNTIL ALL BONDS AND THE INTEREST ON THEM ARE FULLY MET
14 AND DISCHARGED.
15 (B) FEDERAL MATTERS.--THE COMMONWEALTH PLEDGES TO AND AGREES
16 WITH THE UNITED STATES AND ALL FEDERAL AGENCIES THAT, IF A
17 FEDERAL AGENCY CONSTRUCTS OR CONTRIBUTES FUNDS FOR THE
18 CONSTRUCTION, EXTENSION, IMPROVEMENT OR ENLARGEMENT OF A PROJECT
19 OR ANY PORTION THEREOF:
20 (1) THE COMMONWEALTH WILL NOT ALTER OR LIMIT THE RIGHTS
21 AND POWERS OF THE AUTHORITY IN ANY MANNER WHICH WOULD BE
22 INCONSISTENT WITH THE CONTINUED MAINTENANCE AND OPERATION OF
23 THE PROJECT OR THE IMPROVEMENT THEREOF OR WHICH WOULD BE
24 INCONSISTENT WITH THE DUE PERFORMANCE OF AGREEMENTS BETWEEN
25 THE AUTHORITY AND ANY FEDERAL AGENCY; AND
26 (2) THE AUTHORITY SHALL CONTINUE TO HAVE AND MAY
27 EXERCISE ALL POWERS GRANTED IN THIS CHAPTER AS LONG AS THE
28 POWERS ARE NECESSARY OR DESIRABLE FOR CARRYING OUT THE
29 PURPOSES OF THIS CHAPTER AND THE PURPOSES OF THE UNITED
30 STATES IN THE CONSTRUCTION OR IMPROVEMENT OR ENLARGEMENT OF
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1 THE PROJECT OR PORTION THEREOF.
2 § 5619. TERMINATION OF AUTHORITY.
3 (A) CONVEYANCE OF PROJECTS.--WHEN AN AUTHORITY HAS FINALLY
4 PAID AND DISCHARGED ALL BONDS, WITH INTEREST DUE, WHICH HAVE
5 BEEN SECURED BY A PLEDGE OF ANY OF THE REVENUES OR RECEIPTS OF A
6 PROJECT, THE AUTHORITY MAY, SUBJECT TO AGREEMENTS CONCERNING THE
7 OPERATION OR DISPOSITION OF THE PROJECT, CONVEY THE PROJECT TO
8 THE MUNICIPALITY CREATING THE AUTHORITY OR, IF THE PROJECT IS A
9 PUBLIC SCHOOL PROJECT, TO THE SCHOOL DISTRICT TO WHICH THE
10 PROJECT IS LEASED.
11 (B) CONVEYANCE OF PROPERTY.--WHEN AN AUTHORITY HAS FINALLY
12 PAID AND DISCHARGED ALL BONDS ISSUED AND OUTSTANDING AND THE
13 INTEREST DUE ON THEM, AND SETTLED ALL OTHER OUTSTANDING CLAIMS
14 AGAINST IT, THE AUTHORITY MAY CONVEY ALL ITS PROPERTY TO THE
15 MUNICIPALITY AND TERMINATE ITS EXISTENCE.
16 (C) CERTIFICATE.--A CERTIFICATE REQUESTING THE TERMINATION
17 OF THE EXISTENCE OF AN AUTHORITY SHALL BE FILED IN THE OFFICE OF
18 THE SECRETARY OF THE COMMONWEALTH. IF THE CERTIFICATE IS
19 APPROVED BY THE MUNICIPALITY CREATING THE AUTHORITY BY ITS
20 ORDINANCE, THE SECRETARY SHALL NOTE THE TERMINATION OF EXISTENCE
21 ON THE RECORD OF INCORPORATION AND RETURN THE CERTIFICATE WITH
22 APPROVAL TO THE BOARD. THE BOARD SHALL CAUSE THE CERTIFICATE TO
23 BE RECORDED IN THE OFFICE OF THE RECORDER OF DEEDS OF THE
24 COUNTY. UPON RECORDING, THE PROPERTY OF THE AUTHORITY SHALL PASS
25 TO THE MUNICIPALITY, AND THE AUTHORITY SHALL CEASE TO EXIST.
26 § 5620. EXEMPTION FROM TAXATION AND PAYMENTS IN LIEU OF TAXES.
27 THE EFFECTUATION OF THE AUTHORIZED PURPOSES OF AUTHORITIES
28 CREATED UNDER THIS CHAPTER SHALL BE FOR THE BENEFIT OF THE
29 PEOPLE OF THIS COMMONWEALTH, FOR THE INCREASE OF THEIR COMMERCE
30 AND PROSPERITY AND FOR THE IMPROVEMENT OF THEIR HEALTH AND
20010S0780B1186 - 115 -
1 LIVING CONDITIONS. SINCE AUTHORITIES WILL BE PERFORMING
2 ESSENTIAL GOVERNMENTAL FUNCTIONS IN EFFECTUATING THESE PURPOSES,
3 AUTHORITIES SHALL NOT BE REQUIRED TO PAY TAXES OR ASSESSMENTS
4 UPON PROPERTY ACQUIRED OR USED BY THEM FOR SUCH PURPOSES.
5 WHENEVER IN EXCESS OF 10% OF THE LAND AREA OF ANY POLITICAL
6 SUBDIVISION IN A SIXTH, SEVENTH OR EIGHTH CLASS COUNTY HAS BEEN
7 TAKEN FOR A WATERWORKS, WATER SUPPLY WORKS OR WATER DISTRIBUTION
8 SYSTEM HAVING A SOURCE OF WATER WITHIN A POLITICAL SUBDIVISION
9 WHICH IS NOT PROVIDED WITH WATER SERVICE BY THE AUTHORITY, IN
10 LIEU OF SUCH TAXES OR SPECIAL ASSESSMENTS, THE AUTHORITY MAY
11 AGREE TO MAKE PAYMENTS IN THE COUNTY TO THE TAXING AUTHORITIES
12 OF ANY OR ALL OF THE POLITICAL SUBDIVISIONS WHERE ANY LAND HAS
13 BEEN TAKEN. THE BONDS ISSUED BY ANY AUTHORITY, THEIR TRANSFER
14 AND THE INCOME FROM THE BONDS, INCLUDING ANY PROFITS MADE ON
15 THEIR SALE, SHALL BE FREE FROM TAXATION WITHIN THE COMMONWEALTH.
16 § 5621. CONSTITUTIONAL CONSTRUCTION.
17 THE PROVISIONS OF THIS CHAPTER SHALL BE SEVERABLE, AND IF ANY
18 OF THE PROVISIONS ARE HELD TO BE UNCONSTITUTIONAL, IT SHALL NOT
19 AFFECT THE VALIDITY OF ANY OF THE REMAINING PROVISIONS OF THIS
20 CHAPTER. IT IS HEREBY DECLARED AS THE LEGISLATIVE INTENT THAT
21 THIS CHAPTER WOULD HAVE BEEN ADOPTED HAD SUCH UNCONSTITUTIONAL
22 PROVISIONS NOT BEEN INCLUDED.
23 § 5622. CONVEYANCE BY AUTHORITIES TO MUNICIPALITIES OR SCHOOL
24 DISTRICTS OF ESTABLISHED PROJECTS.
25 (A) PROJECT.--IF A PROJECT ESTABLISHED UNDER THIS CHAPTER BY
26 A BOARD APPOINTED BY A MUNICIPALITY IS OF A CHARACTER WHICH THE
27 MUNICIPALITY HAS POWER TO ESTABLISH, MAINTAIN OR OPERATE, AND
28 THE MUNICIPALITY DESIRES TO ACQUIRE THE PROJECT, IT MAY, BY
29 APPROPRIATE RESOLUTION OR ORDINANCE ADOPTED BY THE PROPER
30 AUTHORITIES, SIGNIFY ITS DESIRE TO DO SO, AND THE AUTHORITIES
20010S0780B1186 - 116 -
1 SHALL CONVEY BY APPROPRIATE INSTRUMENT THE PROJECT TO THE
2 MUNICIPALITY UPON THE ASSUMPTION BY THE MUNICIPALITY OF ALL THE
3 OBLIGATIONS INCURRED BY THE AUTHORITIES WITH RESPECT TO THAT
4 PROJECT.
5 (B) PUBLIC SCHOOL PROJECT.--A PUBLIC SCHOOL PROJECT
6 UNDERTAKEN UNDER THIS CHAPTER MAY BE ACQUIRED BY A SCHOOL
7 DISTRICT TO WHICH THE PROJECT WAS LEASED IF THE SCHOOL DISTRICT
8 BY APPROPRIATE RESOLUTION SIGNIFIES A DESIRE TO DO SO. AN
9 AUTHORITY SHALL CONVEY THE PUBLIC SCHOOL PROJECT TO THE SCHOOL
10 DISTRICT BY APPROPRIATE RESOLUTION UPON THE ASSUMPTION BY THE
11 SCHOOL DISTRICT OF ALL THE OBLIGATIONS INCURRED BY THE AUTHORITY
12 WITH RESPECT TO THAT PROJECT.
13 (C) CONVEYANCE.--AN AUTHORITY FORMED BY ANY COUNTY FOR THE
14 PURPOSE OF ACQUIRING, CONSTRUCTING, IMPROVING, MAINTAINING OR
15 OPERATING ANY PROJECT FOR THE BENEFIT OF ANY ONE OR MORE BUT NOT
16 ALL OF THE CITIES, BOROUGHS, TOWNS AND TOWNSHIPS OF THE COUNTY,
17 MAY, WITH THE APPROVAL OF THE BOARD OF COUNTY COMMISSIONERS OF
18 THE COUNTY, CONVEY THE PROJECT TO THE CITIES, BOROUGHS, TOWNS OR
19 TOWNSHIPS OF THE COUNTY, FOR THE BENEFIT OF WHICH THE PROJECT
20 WAS ACQUIRED, CONSTRUCTED, IMPROVED, MAINTAINED OR OPERATED, OR
21 TO ANY AUTHORITY ORGANIZED BY SUCH CITIES, BOROUGHS, TOWNS OR
22 TOWNSHIPS, FOR THE PURPOSE OF TAKING OVER SUCH PROJECT. ALL SUCH
23 CONVEYANCES SHALL BE MADE SUBJECT TO ANY AND ALL OBLIGATIONS
24 INCURRED BY THE AUTHORITY WITH RESPECT TO THE PROJECT CONVEYED.
25 (D) RESERVES.--FOLLOWING TRANSFER OF A PROJECT PURSUANT TO
26 THIS SECTION, THE MUNICIPALITY, INCLUDING AN INCORPORATED TOWN
27 OR HOME RULE MUNICIPALITY, WHICH HAS ACQUIRED THE PROJECT SHALL
28 RETAIN THE RESERVES RECEIVED FROM THE AUTHORITY WHICH HAVE BEEN
29 DERIVED FROM OPERATIONS IN A SEPARATE FUND, AND THE RESERVES
30 SHALL ONLY BE USED FOR THE PURPOSES OF OPERATING, MAINTAINING,
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1 REPAIRING, IMPROVING AND EXTENDING THE PROJECT. MONEY RECEIVED
2 FROM THE AUTHORITY WHICH REPRESENTS THE PROCEEDS OF FINANCING
3 SHALL BE RETAINED BY THE MUNICIPALITY IN A SEPARATE FUND WHICH
4 SHALL ONLY BE USED FOR IMPROVING OR EXTENDING THE PROJECT OR
5 OTHER CAPITAL PURPOSES RELATED TO IT.
6 SECTION 2. THE PROVISIONS OF 53 PA.C.S. CH. 56 SHALL APPLY
7 TO ALL AUTHORITIES NOW EXISTING THAT WERE INCORPORATED UNDER THE
8 PROVISIONS OF THE FORMER ACT OF JUNE 28, 1935 (P.L.463, NO.191)
9 ENTITLED "AN ACT PROVIDING, FOR A LIMITED PERIOD OF TIME, FOR
10 THE INCORPORATION, AS BODIES CORPORATE AND POLITIC, OF
11 'AUTHORITIES' FOR MUNICIPALITIES; DEFINING THE SAME; PRESCRIBING
12 THE RIGHTS, POWERS, AND DUTIES OF SUCH AUTHORITIES; AUTHORIZING
13 SUCH AUTHORITIES TO ACQUIRE, CONSTRUCT, IMPROVE, MAINTAIN, AND
14 OPERATE PROJECTS, AND TO BORROW MONEY AND ISSUE BONDS THEREFOR;
15 PROVIDING FOR THE PAYMENT OF SUCH BONDS, AND PRESCRIBING THE
16 RIGHTS OF THE HOLDERS THEREOF; CONFERRING THE RIGHT OF EMINENT
17 DOMAIN ON SUCH AUTHORITIES; AUTHORIZING SUCH AUTHORITIES TO
18 ENTER INTO CONTRACTS WITH AND TO ACCEPT GRANTS FROM THE FEDERAL
19 GOVERNMENT OR ANY AGENCY THEREOF; AND FOR OTHER PURPOSES," AND
20 THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE
21 MUNICIPALITY AUTHORITIES ACT OF 1945. THE PROVISIONS OF 53
22 PA.C.S. CH. 56, SO FAR AS THEY ARE THE SAME AS THOSE OF EXISTING
23 LAWS, ARE INTENDED AS A CONTINUATION OF SUCH LAWS AND NOT AS NEW
24 ENACTMENTS. THE REPEAL BY THIS ACT OF ANY ACT OR PART OF ANY
25 ACT, SHALL NOT AFFECT THE EXISTENCE OF ANY AUTHORITY PREVIOUSLY
26 INCORPORATED. THE PROVISIONS OF THIS ACT SHALL NOT AFFECT ANY
27 ACT DONE, LIABILITY INCURRED OR RIGHT ACCRUED OR VESTED, OR
28 AFFECT ANY SUIT PENDING OR TO BE INSTITUTED, TO ENFORCE ANY
29 RIGHT OR PENALTY UNDER THE AUTHORITY OF SUCH REPEALED LAWS. ALL
30 RULES AND REGULATIONS MADE PURSUANT TO ANY ACT OR PART OF ANY
20010S0780B1186 - 118 -
1 ACT REPEALED BY 53 PA.C.S. CH. 56 SHALL CONTINUE WITH THE SAME
2 FORCE AND EFFECT AS IF SUCH ACT HAD NOT BEEN REPEALED.
3 SECTION 3. THE FOLLOWING ACTS ARE REPEALED:
4 ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE
5 MUNICIPALITY AUTHORITIES ACT OF 1945.
6 ACT OF JUNE 5, 1947 (P.L.458, NO.208), KNOWN AS THE PARKING
7 AUTHORITY LAW.
8 SECTION 4. THE ADDITION OF 53 PA.C.S. CH. 56 IS A
9 CONTINUATION OF THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN
10 AS THE MUNICIPALITY AUTHORITIES ACT OF 1945. THE FOLLOWING
11 APPLY:
12 (1) EXCEPT AS OTHERWISE PROVIDED IN 53 PA.C.S. CH. 56,
13 ALL ACTIVITIES INITIATED UNDER THE MUNICIPALITY AUTHORITIES
14 ACT OF 1945 SHALL CONTINUE AND REMAIN IN FULL FORCE AND
15 EFFECT AND MAY BE COMPLETED UNDER 53 PA.C.S. CH. 56. ORDERS,
16 REGULATIONS, RULES AND DECISIONS, WHICH WERE MADE UNDER THE
17 MUNICIPALITY AUTHORITIES ACT OF 1945 AND WHICH ARE IN EFFECT
18 ON THE EFFECTIVE DATE OF SECTION 3 OF THIS ACT, SHALL REMAIN
19 IN FULL FORCE AND EFFECT UNTIL REVOKED, VACATED OR MODIFIED
20 UNDER 53 PA.C.S. CH. 56. CONTRACTS, OBLIGATIONS AND
21 COLLECTIVE BARGAINING AGREEMENTS ENTERED INTO UNDER THE
22 MUNICIPALITY AUTHORITIES ACT OF 1945 ARE NOT AFFECTED NOR
23 IMPAIRED BY THE REPEAL OF THE MUNICIPALITY AUTHORITIES ACT OF
24 1945.
25 (2) EXCEPT AS SET FORTH IN PARAGRAPH (3), ANY DIFFERENCE
26 IN LANGUAGE BETWEEN 53 PA.C.S. CH. 56 AND THE MUNICIPALITY
27 AUTHORITIES ACT OF 1945 IS INTENDED ONLY TO CONFORM TO THE
28 STYLE OF THE PENNSYLVANIA CONSOLIDATED STATUTES AND IS NOT
29 INTENDED TO CHANGE OR AFFECT THE LEGISLATIVE INTENT, JUDICIAL
30 CONSTRUCTION OR ADMINISTRATION AND IMPLEMENTATION OF THE
20010S0780B1186 - 119 -
1 MUNICIPALITY AUTHORITIES ACT OF 1945.
2 (3) PARAGRAPH (2) DOES NOT APPLY TO ANY OF THE FOLLOWING
3 PROVISIONS:
4 (I) THE ADDITION OF THE LAST SENTENCE OF 53 PA.C.S.
5 § 5610(B).
6 (II) THE ADDITION OF 53 PA.C.S. § 5610(F).
7 SECTION 5. THE ADDITION OF 53 PA.C.S. CH. 55 IS A
8 CONTINUATION OF THE ACT OF JUNE 5, 1947 (P.L.458, NO.208), KNOWN
9 AS THE PARKING AUTHORITY LAW. THE FOLLOWING APPLY:
10 (1) EXCEPT AS OTHERWISE PROVIDED IN 53 PA.C.S. CH. 55,
11 ALL ACTIVITIES INITIATED UNDER THE PARKING AUTHORITY LAW
12 SHALL CONTINUE AND REMAIN IN FULL FORCE AND EFFECT AND MAY BE
13 COMPLETED UNDER 53 PA.C.S. CH. 55. ORDERS, REGULATIONS, RULES
14 AND DECISIONS, WHICH WERE MADE UNDER THE PARKING AUTHORITY
15 LAW AND WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION
16 3 OF THIS ACT, SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL
17 REVOKED, VACATED OR MODIFIED UNDER 53 PA.C.S. CH. 55.
18 CONTRACTS, OBLIGATIONS AND COLLECTIVE BARGAINING AGREEMENTS
19 ENTERED INTO UNDER THE PARKING AUTHORITY LAW ARE NOT AFFECTED
20 NOR IMPAIRED BY THE REPEAL OF THE PARKING AUTHORITY LAW.
21 (2) EXCEPT AS SET FORTH IN PARAGRAPH (3), ANY DIFFERENCE
22 IN LANGUAGE BETWEEN 53 PA.C.S. CH. 55 AND THE PARKING
23 AUTHORITY LAW IS INTENDED ONLY TO CONFORM TO THE STYLE OF THE
24 PENNSYLVANIA CONSOLIDATED STATUTES AND IS NOT INTENDED TO
25 CHANGE OR AFFECT THE LEGISLATIVE INTENT, JUDICIAL
26 CONSTRUCTION OR ADMINISTRATION AND IMPLEMENTATION OF THE
27 PARKING AUTHORITY LAW.
28 (3) PARAGRAPH (2) DOES NOT APPLY TO THE ADDITION OF 53
29 PA.C.S. §§ 5508(A) AND 5508.1.
30 SECTION 6. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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