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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY MILLARD, ROSS, BELFANTI, BEYER, BOYD, CLYMER, CREIGHTON, DENLINGER, EVERETT, FLECK, GEIST, GINGRICH, GRELL, HENNESSEY, HESS, HICKERNELL, KILLION, MILNE, O'NEILL, PICKETT, RAPP, SIPTROTH, SONNEY, STABACK, STERN, THOMAS AND VULAKOVICH, FEBRUARY 18, 2009 |
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| REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 18, 2009 |
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| AN ACT |
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1 | Amending the act of May 27, 1953 (P.L.244, No.34), entitled "An |
2 | act relating to and regulating the contracts of incorporated |
3 | towns and providing penalties," further providing for power |
4 | to convey. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Section 1.1 of the act of May 27, 1953 (P.L.244, |
8 | No.34), entitled "An act relating to and regulating the |
9 | contracts of incorporated towns and providing penalties," added |
10 | October 31, 1985 (P.L.297, No.70), is amended to read: |
11 | Section 1.1. Power to Convey.--(a) Each incorporated town |
12 | may purchase, acquire by gift or otherwise, hold, lease, let and |
13 | convey, by sale or lease, such real and personal property as |
14 | shall be deemed to be in the best interest of the town: |
15 | Provided, That no real estate owned by the town shall be sold |
16 | for a consideration in excess of fifteen hundred dollars except |
17 | to the highest bidder after due notice by advertisement for bids |
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1 | in one newspaper of general circulation in the town. The |
2 | advertisement shall be published once, not less than ten days |
3 | prior to the date fixed for the opening of bids, and the date |
4 | for opening bids shall be announced in the advertisement. The |
5 | acceptance of bids shall be made only by public announcement at |
6 | a regular or special meeting of council. All bids shall be |
7 | accepted on the condition that payment of the purchase price in |
8 | full shall be made within sixty days of the acceptance of bids. |
9 | Real estate owned by a town may be sold at a consideration of |
10 | fifteen hundred dollars or less without advertisement of |
11 | competitive bidding only after council estimates the value |
12 | thereof upon receipt of an appraisal by a qualified real estate |
13 | appraiser. |
14 | (b) Except as otherwise hereinafter provided in the case of |
15 | personal property of an estimated sale value of less than [two |
16 | hundred] one thousand dollars, no town personal property shall |
17 | be disposed of, by sale or otherwise, except upon approval of |
18 | council, by ordinance or resolution. In cases where council |
19 | shall approve a sale of such property, it shall estimate the |
20 | sale value of the entire lot to be disposed of. If council shall |
21 | estimate the sale value to be [two hundred] one thousand dollars |
22 | or more, the entire lot shall be advertised for sale once, in at |
23 | least one newspaper of general circulation in the town, not less |
24 | than ten days prior to the date fixed for the opening of bids or |
25 | public auction, and such date of opening of bids or public |
26 | auction shall be announced in such advertisement, and sale of |
27 | the property so advertised shall be made to the best responsible |
28 | bidder. The advertisement for electronic auction sales |
29 | authorized in subsection (c.1) shall include the Internet |
30 | address or means of accessing the electronic auction and the |
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1 | date, time and duration of the electronic auction. Council shall |
2 | have authority, by resolution, to adopt a procedure for the sale |
3 | of surplus personal property of an estimated sale value of less |
4 | than [two hundred] one thousand dollars, and the approval of |
5 | council shall not be required for any individual sale that shall |
6 | be made in conformity to such procedure. |
7 | (c) The provisions of this section shall not be mandatory |
8 | where town property is to be traded in or exchanged for new town |
9 | property. |
10 | (c.1) A public auction of personal property may be conducted |
11 | by means of an online or electronic auction sale. During an |
12 | electronic auction sale, bids shall be accepted electronically |
13 | at the time and in the manner designated in the advertisement. |
14 | During the electronic auction, each bidder shall have the |
15 | capability to view the bidder's bid rank or the high bid price. |
16 | Bidders may increase their bid prices during the electronic |
17 | auction. The record of the electronic auction shall be |
18 | accessible for public inspection. The purchase price shall be |
19 | paid by the high bidder immediately or at a reasonable time |
20 | after the conclusion of the electronic auction as determined by |
21 | council. In the event that shipping costs are incurred, they |
22 | shall be paid by the high bidder. |
23 | (c.2) A town that has complied with the advertising |
24 | requirements of subsection (b) may provide additional public |
25 | notice of the sale by bids or public auction in any manner |
26 | deemed appropriate by council. |
27 | (d) The provisions of this section requiring advertising for |
28 | bids and sale to the highest bidder shall not apply where town |
29 | real or personal property is to be sold to a county, city, |
30 | borough, town, township, institution district, school district, |
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1 | volunteer fire company, volunteer ambulance service or volunteer |
2 | rescue squad located within the town, or [municipal] an |
3 | authority [pursuant to the act of May 2, 1945 (P.L.382, No.164), |
4 | known as the "Municipality Authorities Act of 1945,"] as defined |
5 | in 53 Pa.C.S. § 5602 (relating to definitions), or is to be sold |
6 | to a non-profit corporation engaged in community industrial |
7 | development or where real property is to be sold to a person for |
8 | his exclusive use in an industrial development program, or where |
9 | real property is to be sold to a non-profit corporation |
10 | organized as a public library for its exclusive use as a |
11 | library, or where real property is to be sold to a non-profit |
12 | medical service corporation or to a non-profit housing |
13 | corporation. When real property is to be sold to a non-profit |
14 | corporation organized as a public library for its exclusive use |
15 | as a library or to a non-profit medical service corporation or |
16 | to a non-profit housing corporation, council may elect to accept |
17 | such nominal consideration for such sale as it shall deem |
18 | appropriate. Real property sold pursuant to this section to a |
19 | volunteer fire company, volunteer ambulance service or volunteer |
20 | rescue squad, non-profit medical service corporation or to a |
21 | non-profit housing corporation shall be subject to the condition |
22 | that, when the property is not used for the purposes of the |
23 | company, service, squad or the corporation, the property shall |
24 | revert to the town. |
25 | Section 2. This act shall take effect immediately. |
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