THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BRADFORD, BRIGGS, BROWN, CALTAGIRONE, DePASQUALE, HORNAMAN, HOUGHTON, JOSEPHS, LEVDANSKY, MANN, McGEEHAN, MILLER, SANTARSIERO, SIPTROTH, STURLA, THOMAS, VITALI, WAGNER AND MURPHY, AUGUST 2, 2010

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, AUGUST 2, 2010  

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in municipal authorities, further

providing for definitions; and authorizing the financing of

clean energy improvements by municipal authorities and the

assessment of the cost of financing against the property

benefited or improved.

The General Assembly finds and declares as follows:

(1)  The production and efficient use of energy will

continue to play a central role in the future of this

Commonwealth and the nation as a whole.

(2)  The development, production and efficient use of

renewable energy will advance the security, economic well-

being and public and environmental health of this

Commonwealth and will contribute to the energy independence

of our nation.

(3)  The financing of clean energy improvements and the

powers conferred and expenditures made pursuant to this act

will serve a valid public purpose. This act is expressly

declared to be in the public interest.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 5602 of Title 53 of the Pennsylvania

Consolidated Statutes is amended by adding definitions to read:

§ 5602.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Clean energy improvements."  Energy efficiency improvements

and renewable energy improvements on residential, commercial or

industrial real property and in buildings, whether the real

property or buildings are privately or publicly owned.

* * *

"Green wet weather infrastructure improvements."

Improvements on residential, commercial or industrial real

property and in buildings, whether the real property or

buildings are privately or publicly owned, that maintain,

restore or mimic natural systems to infiltrate, evapotranspirate

or recycle storm water.

* * * 

"Water efficiency improvements."  Improvements designed to

decrease water demand and usage on residential, commercial or

industrial real property and in buildings, whether the real

property or buildings are privately or publicly owned.

* * *

Section 2.  Section 5607(b)(2) of Title 53 is amended and

subsections (a) and (d) are amended by adding paragraphs to

read:

§ 5607.  Purposes and powers.

(a)  Scope of projects permitted.--Every authority

incorporated under this chapter shall be a body corporate and

politic and shall be for the purposes of financing working

capital; acquiring, holding, constructing, financing, improving,

maintaining and operating, owning or leasing, either in the

capacity of lessor or lessee, projects of the following kind and

character and providing financing for insurance reserves:

* * *

(18)  Clean energy improvements, water efficiency

improvements and green wet weather infrastructure

improvements.

(b)  Limitations.--This section is subject to the following

limitations:

* * *

(2)  The purpose and intent of this chapter being to

benefit the people of the Commonwealth by, among other

things, increasing their commerce, health, safety and

prosperity and not to unnecessarily burden or interfere with

existing business by the establishment of competitive

enterprises, none of the powers granted by this chapter shall

be exercised in the construction, financing, improvement,

maintenance, extension or operation of any project or

projects or providing financing for insurance reserves which

in whole or in part shall duplicate or compete with existing

enterprises serving substantially the same purposes. This

limitation shall not apply to the exercise of the powers

granted under this section:

(i)  for facilities and equipment for the collection,

removal or disposal of ashes, garbage, rubbish and other

refuse materials by incineration, landfill or other

methods if each municipality organizing or intending to

use the facilities of an authority having such powers

shall declare by resolution or ordinance that it is

desirable for the health and safety of the people of such

municipality that it use the facilities of the authority

and state if any contract between such municipality and

any other person, firm or corporation for the collection,

removal or disposal of ashes, garbage, rubbish and other

refuse material has by its terms expired or is terminable

at the option of the municipality or will expire within

six months from the date such ordinance becomes

effective;

(ii)  for industrial development projects if the

authority does not develop industrial projects which will

compete with existing industries;

(iii)  for authorities created for the purpose of

providing business improvements and administrative

services if each municipality organizing an authority for

such a project shall declare by resolution or ordinance

that it is desirable for the entire local government unit

to improve the business district;

(iv)  to hospital projects or health centers to be

leased to or financed with loans to public hospitals,

nonprofit corporation health centers or nonprofit

hospital corporations serving the public or to school

building projects and facilities to be leased to or

financed with loans to private, nonprofit, nonsectarian

secondary schools, colleges and universities, State-

related universities and community colleges or to

facilities, as limited under the provisions of this

section, to produce steam or to generate electric power

if each municipality organizing an authority for such a

project shall declare by resolution or ordinance that it

is desirable for the health, safety and welfare of the

people in the area served by such facilities to have such

facilities provided by or financed through an authority;

(v)  to provide financing for insurance reserves if

each municipality or authority intending to use any

proceeds thereof shall declare by resolution or ordinance

that it is desirable for the health, safety and welfare

of the people in such local government unit or served by

such authority; [or]

(vi)  to projects for financing working capital[.];

or

(vii)  for clean energy improvements, water

efficiency improvements and green wet weather

infrastructure improvements.

* * *

(d)  Powers.--Every authority may exercise all powers

necessary or convenient for the carrying out of the purposes set

forth in this section, including, but without limiting the

generality of the foregoing, the following rights and powers:

* * *

(34)  (i)  In the case of an authority undertaking clean

energy improvement, water efficiency improvement and

green wet weather infrastructure improvement projects, to

assess the cost of such financing, plus reasonable

administrative costs and at a reasonable rate of

interest, against property benefited or improved thereby

to the extent of such benefits, provided that the

assessments shall not be made unless all owners of such

property have consented in writing to the financing and

assessment. The authority may, by resolution, authorize

payment of assessments in equal installments over a fixed

period of time.

(ii)  Except as otherwise provided in this paragraph,

claims to secure the payment of assessments shall be

entered in the prothonotary's office of the county at the

same time and in the same form and shall be filed and

collected in the same manner as municipal claims are

filed and collected pursuant to the act of May 16, 1923

(P.L.207, No.153), referred to as the Municipal Claim and

Tax Lien Law. Notwithstanding the provisions of this

paragraph as to installment payments and the collection

thereof, the claim shall be filed for the entire amount

of the assessment. The lien for the assessment shall

remain on the property notwithstanding any conveyance of

the property and may be enforced against a subsequent

purchaser to the extent of any amounts due and unpaid in

accordance with this paragraph and the resolutions of the

authority. The authority shall provide, upon request of

any buyer of the property, the remaining amount required

for full satisfaction of the lien. Nothing in this

chapter shall preclude early payment of the assessment

and reasonable administrative costs without penalty.

(iii)  In the case of a default in the payment of any

installment, the authority shall not obtain a judgment or

otherwise initiate collection proceedings for any amount

in excess of installments that are delinquent for a

period of 60 days after the date due plus reasonable

attorney fees and costs of collection as may be

authorized by law.

(iv)  The authority may request the municipality

within which the authority lies to include the amount of

any installment payment of an assessment on the property

tax bill for the property benefited by improvements under

this paragraph. Upon receiving the request, the

municipality shall direct the tax collector for the

municipality to collect installments and remit all

collected amounts to the authority in accordance with the

act of May 25, 1945 (P.L.1050, No.394), known as the

Local Tax Collection Law. The tax collector shall be

entitled to the same commission for the collection of

assessments as for collection of the property tax of the

municipality. The amount of the commission shall be an

administrative cost of the improvement.

* * *

Section 3.  This act shall take effect in 60 days.