1Amending the act of July 18, 1935 (P.L.1286, No.402), entitled
2"An act empowering counties, cities, boroughs, incorporated
3towns, and townships to charge and collect from owners of and
4water users in property served thereby, annual rentals, rates
5or charges for the use of certain sewers, sewerage systems
6and sewage treatment works, including charges for operation,
7inspection, maintenance, repair, depreciation, and the
8amortization of indebtedness and interest thereon; empowering
9counties, cities, boroughs, incorporated towns and townships
10to contract with authorities organized by cities of the
11second class, by cities of the second class A, by counties or
12by cities of the third class for sewer, sewerage and sewage
13treatment services; to grant, convey, lease, transfer,
14encumber, mortgage and pledge to such authorities, their
15sewers, sewerage systems and sewage treatment works; to
16assign and pledge to such authorities rentals, rates and
17charges charged and collected by them for the use thereof,
18and to assign to such authorities their power to charge and
19collect the same; and validating all such contracts, grants,
20conveyances, leases, transfers, assignments, encumbrances,
21mortgages and pledges heretofore made," further providing for
22rentals for use of sewage system and for amount of rental or
23charge.

24The General Assembly of the Commonwealth of Pennsylvania
25hereby enacts as follows:

26Section 1. Sections 1 and 2 of the act of July 18, 1935
27(P.L.1286, No.402), entitled "An act empowering counties,
28cities, boroughs, incorporated towns, and townships to charge

1and collect from owners of and water users in property served
2thereby, annual rentals, rates or charges for the use of certain
3sewers, sewerage systems and sewage treatment works, including
4charges for operation, inspection, maintenance, repair,
5depreciation, and the amortization of indebtedness and interest
6thereon; empowering counties, cities, boroughs, incorporated
7towns and townships to contract with authorities organized by
8cities of the second class, by cities of the second class A, by
9counties or by cities of the third class for sewer, sewerage and
10sewage treatment services; to grant, convey, lease, transfer,
11encumber, mortgage and pledge to such authorities, their sewers,
12sewerage systems and sewage treatment works; to assign and
13pledge to such authorities rentals, rates and charges charged
14and collected by them for the use thereof, and to assign to such
15authorities their power to charge and collect the same; and
16validating all such contracts, grants, conveyances, leases,
17transfers, assignments, encumbrances, mortgages and pledges
18heretofore made," reenacted and amended June 22, 1970 (P.L.406,
19No.133), are amended to read:

20Section 1. Be it enacted, &c., That whenever any county,
21city, borough, incorporated town, or township, either singly or
22jointly with other municipalities or townships, (a) has, wholly
23or partially, constructed or completed or shall hereafter,
24wholly or partially, construct or complete any water, sewer,
25sewerage system or sewage treatment works, either wholly or
26partially at public expense, or (b) has acquired or shall
27hereafter acquire the same, either wholly or partially at public
28expense, or (c) has entered or shall hereafter enter into any
29contract with any authority established in accordance with law
30or with any private corporation for the design or construction

1of water-supply systems, sewers, sewerage systems or sewage
2treatment works or for the furnishing of water, sewer, sewerage
3or sewage treatment services, for its or their benefit and the
4benefit of the inhabitants thereof, such county, city, borough,
5incorporated town, or township may provide by ordinance or
6resolution, enacted either before or after the acquisition or
7construction thereof, or the entry into such contract, for the
8imposition and collection of an annual rental, rate or charge
9for the use of such water-supply system, sewer, sewerage system,
10or sewage treatment works from the owners of, or the users of
11water in or on the property served or to be served by it, or
12from both the owner and the water user, whether such property is
13located within or without the corporate limits of such county,
14city, borough, town, or township.

15The annual rental, rate or charge so imposed shall be a lien
16on the properties served, and such liens may be filed in the
17office of the prothonotary and collected in the manner provided
18by law for the filing and collection of municipal claims.

19Section 2. Any such annual rental, rate or charge [may be,
20but shall not be limited to, such sum as may be] shall be 
21strictly limited to such sum as is sufficient to meet any or all
22of the following classes of expense: (a) the amount expended
23annually by the county, city, borough, incorporated town, or
24township in the operation, maintenance, repair, alteration,
25inspection, depreciation, or other expenses in relation to such
26water-supply systems, sewer, sewerage system, or sewage
27treatment works; (b) such annual amount as [may] shall be
28necessary to provide for the amortization of any indebtedness
29incurred, or non-debt revenue bonds issued, by the county, city,
30borough, incorporated town, or township in the construction or

1acquisition of such water-supply system, sewer, sewerage system,
2or sewage treatment works, and interest thereon, in order that
3said improvements [may] shall become self-liquidating, or as
4[may] shall be sufficient to pay the amount agreed to be paid
5annually under the terms of any contract or lease with any
6authority or private corporation furnishing, or undertaking to
7design or construct facilities with which to furnish, water,
8sewer, sewerage or sewage treatment services to such county,
9city, borough, town, or township and its inhabitants; and (c)
10sufficient to establish a margin of safety of ten per centum.
11Any unused surplus from any preceding year shall be paid into
12the fund accruing from said rentals, rates or charges and,
13whenever the amount in said fund exceeds the said margin of
14safety of ten per centum, the excess shall be paid into the
15sinking fund. The amount required for sinking fund and interest
16shall be paid into the sinking fund, and the amount so paid,
17including any excess as above provided, shall not be used for
18any other purpose. The said annual rental or whatever rate or
19charge shall be decided upon by the county, city, borough,
20incorporated town, or township shall be apportioned equitably
21among the properties served by the said water-supply system,
22sewer, sewerage system, or sewage treatment works.

23The court of common pleas shall have plenary jurisdiction to
24review said rentals, rates or charges to ensure compliance with
25the requirements of this section.

26Section 2. The act is amended by adding a section to read:

27Section 2.4. Any individual, firm or corporation that
28violates any provision of this act commits a misdemeanor of the
29first degree and shall, upon conviction, be sentenced to pay a
30fine of not more than one thousand dollars and costs.

1In addition to any other civil or criminal penalty authorized
2by law, the court shall order restitution for any violation of
3this act.

4Section 3. This act shall take effect in 60 days.