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SENATE AMENDED
PRIOR PRINTER'S NO. 1223
PRINTER'S NO. 2846
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
944
Session of
2015
INTRODUCED BY TAYLOR, KOTIK, O'BRIEN, GODSHALL, KILLION,
A. HARRIS, W. KELLER, DRISCOLL, MURT, WATSON, THOMAS AND
NEILSON, APRIL 15, 2015
SENATOR WARD, COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
IN SENATE, AS AMENDED, FEBRUARY 9, 2016
AN ACT
Amending the act of December 21, 1998 (P.L.1307, No.174),
entitled "An act relating to cities of the first class,
establishing Neighborhood Improvement Districts; conferring
powers and duties on municipal corporations and Neighborhood
Improvement Districts; and providing for annual audits and
for tourism and marketing," further providing for
definitions, for powers of municipal corporations, for
creation of neighborhood improvement districts, for creation
of neighborhood improvement district management associations,
for powers of neighborhood improvement district management
associations, for annual audit and report and for
applicability.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3 of the act of December 21, 1998
(P.L.1307, No.174), known as the Community and Economic
Improvement Act, is amended by adding a definition DEFINITIONS
to read:
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Affected property owner." An owner of real property located
in a neighborhood improvement district upon which A PROPERTY
OWNER WITH RESPECT TO WHOM a special assessment fee is proposed
to be or has been levied as authorized by this act.
* * *
"CURB MARKET STAND." A STAND AT WHICH MERCHANDISE MAY BE
SOLD AND THAT IS LOCATED IN A ROADWAY ABUTTING A CURB AT A
LOCATION DESIGNATED BY A MUNICIPALITY.
* * *
"PROPERTY OWNER." AN OWNER OF REAL PROPERTY OR THE HOLDER OF
A LICENSE TO OPERATE A CURB MARKET STAND WHICH PROPERTY OR STAND
IS LOCATED IN A NEIGHBORHOOD IMPROVEMENT DISTRICT OR PROPOSED
NEIGHBORHOOD IMPROVEMENT DISTRICT.
* * *
Section 2. Section 4(6) of the act is amended to read:
Section 4. Powers of municipal corporation.
Every municipal corporation shall have the power:
* * *
(6) To acquire, by gift[, purchase or eminent domain,]
or purchase, land, real property or rights-of way which may
be needed for the purposes of making physical improvements
within the NID.
* * *
Section 3. Section 5(b), (c)(2)(v) and (3)(vii), (d), (e),
(f) and (g)(1), (2) and (3) of the act are amended and the
section is amended by adding a subsection to read:
Section 5. Creation of neighborhood improvement district.
* * *
(b) Specific procedures.--
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(1) A copy of [everything required under this section]
the preliminary plan or any revised plan with respect to
which a public hearing must be held under this act, as well
as the date, location and time of any public hearing required
by this act, shall be provided by the municipal corporation
to all affected property owners and lessees of affected
property owners [located in the proposed NID] at least 30
days prior to [the first] any public hearing required by this
section.
(2) At least one public hearing[, no earlier than 15
days apart,] for the purpose of receiving public comment on
the proposed NIDP from affected property owners [within the
proposed NID, on the proposed NIDP,] shall be held by the
municipality before the establishment of an NID. Notice of
the hearing shall be provided in accordance with paragraph
(1) and shall be advertised at least ten days prior thereto
in a newspaper of general circulation in the municipality.
[(3) Any objections by property owners within the
proposed NID must be made in writing by persons representing
the ownership of 51%, in numbers, of the benefited properties
within the NID or by property owners within the proposed NID
whose property valuation as assessed for taxable purposes
shall amount to 51% of the total property valuation within
the NID. Objections must be signed by the property owner and
filed in the office of the clerk for the governing body of
the municipality in which the NID is proposed.]
(4) If revisions, other than technical revisions, are
made to the preliminary plan or a revised preliminary plan, a
public hearing shall be held for the purpose of receiving
public comment on the revisions with notice and advertising
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provided in accordance with paragraphs (1) and (2).
(5) Objections to the proposed NID may be filed by
affected property owners within the NID. Objections shall be
in writing, signed by the property owner, identify the
address of any property for which objection is being made and
be filed in the office of the clerk for the governing body of
the municipality in which the NID is proposed at any time no
more than 45 days after the hearing held on the final plan.
(6) An objection filed in connection with a preliminary
plan or a revised preliminary plan shall constitute an
objection to the final plan, unless such objection is
withdrawn in writing by the objector.
(7) The filing of objection by:
(i) affected property owners representing the
ownership of at least one-third of the properties owned
by affected property owners within the NID;
(ii) affected property owners within the NID, the
value of whose properties, as assessed for taxable
purposes, amounts to at least one-third of the total
property valuation of property owned by affected property
owners within the NID,
shall prohibit the establishment of A proposed NID.
(8) (I) FOR PURPOSES OF PARAGRAPH (7)(I), THE HOLDING
OF A LICENSE TO OPERATE A CURB MARKET STAND THAT BRINGS
THE PERSON WITHIN THE DEFINITION OF A PROPERTY OWNER
UNDER THIS ACT SHALL BE CONSIDERED OWNERSHIP OF A
PROPERTY.
(II) FOR PURPOSES OF PARAGRAPH (7)(II), IN ORDER TO
DETERMINE THE VALUE ASSOCIATED WITH THE HOLDER OF A
LICENSE TO OPERATE A CURB MARKET STAND AND THE IMPACT ON
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THE TOTAL PROPERTY VALUATION OF PROPERTY OWNED BY
AFFECTED PROPERTY OWNERS WITHIN THE NID, THE VALUE OF THE
LICENSE TO OPERATE A CURB MARKET STAND SHALL BE EQUAL TO
A PORTION OF THE AVERAGE TAX ASSESSMENT VALUE OF REAL
PROPERTY OWNED BY AFFECTED PROPERTY OWNERS WITHIN THE
DISTRICT. THE PORTION SHALL BE DETERMINED BY MULTIPLYING
THAT AVERAGE TAX ASSESSMENT VALUE BY THE RATIO OF THE
PROPOSED AMOUNT OF THE NID ASSESSMENT ON CURB MARKET
STAND LICENSE HOLDERS IN RELATION TO THE PLANNED NID
ASSESSMENT FOR A PARCEL OF REAL PROPERTY WITH A TAX
ASSESSMENT VALUE EQUAL TO THE AVERAGE OF TAX ASSESSMENT
VALUES OF REAL PROPERTY OWNED BY AFFECTED PROPERTY OWNERS
WITHIN THE DISTRICT.
(c) Contents of preliminary plan.--The plan shall include
the following:
* * *
(2) A written report from the municipality containing:
* * *
(v) A proposed budget for [the first fiscal year]
each year of proposed operation of the NID covered by the
NIDP, including, but not limited to, the following:
personnel and administration, programs and services,
maintenance and operation, and capital expenditures.
* * *
(3) In addition, the plan shall also:
* * *
(vii) [Provide that a negative vote of at least 51%
of the property owners within the NID or property owners
within the NID whose property valuation as assessed for
taxable purposes amounts to 51% of the total property
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valuation located within the NID proposed in the final
plan shall be required to defeat the establishment of the
proposed NID by filing objections with the clerk for the
governing body of the municipality within 45 days of
presentation of the final plan where the governing body
of municipality is inclined to establish the NID.] Set
fourth the provisions of subsection (b)(4).
(d) [Final plan.--Prior to the establishment of an NID, the
municipality shall submit a revised final plan to property
owners located within the proposed NID which incorporates
changes made to the plan based on comments from affected
property owners within the NID provided at the public hearings
or at some other time. Changes to the final plan which differ
from the preliminary plan] Plan revisions.--Revisions to a
preliminary plan or a revised preliminary plan shall [also] be
[so] indicated in an easily discernible method for the reader,
including, but not limited to, changes being in boldfaced or
italicized type.
[(e) Public hearing.--At least one public hearing for the
purpose of receiving public comment on any revisions to the
preliminary plan made following suggestions by affected property
owners within the proposed NID and reflected in the final NIDP
shall be held by the municipal corporation before enacting an
ordinance establishing an NID. Notice of the hearing shall be
advertised at least ten days prior thereto in a newspaper of
general circulation in the municipality.
(f) Veto of final plan for NID.--
(1) Following the last public hearing required under
subsection (e) or under subsection (g) if an amendment to the
final plan, affected property owners located within a
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proposed NID shall have 45 days from the date of the hearing
to object to and disapprove the final plan or any amendment
to the final plan under the requirements of subsection (b)
(3).
(2) If 51% or more of the affected property owners or
property owners whose property valuation as assessed for
taxable purposes amounts to 51% of the total property
valuation within the proposed NID fail to register their
disapproval of the final plan or amendment to the final plan
in writing with the clerk of the governing body of the
municipality in which the NID is proposed, the governing body
of the municipality may, following the 45-day period, enact a
municipal ordinance establishing an NID under this act or, in
the case of an amendment to the final plan, adopt any
amendments to the ordinance.]
(f.1) Approval of final plan for NID.--If fewer than the
number of objections needed under this section to prohibit
adoption of an NIDP or an amendment to an NIDP are received by
the clerk of the governing body of the municipality within 45
days after a hearing on the final plan, the governing body of
the municipality may, following the 45-day period, enact a
municipal ordinance establishing an NID under this act or, in
the case of an amendment to final plan, adopt any amendments to
the ordinance.
(g) Amendments to final plan.--
(1) The final plan may be amended by the NIDMA any time
after the establishment of an NID, [pursuant to the
provisions of this act,] upon the recommendation of the NIDMA
board, provided [there is concurrence with the owners of at
least 51% of the assessed valuation of all property within
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the NID or 51% of the property owners within the NID.] the
NIDMA board notifies in writing affected property owners of
any amendment and the property owners' right to file
objections to the amendment with the chief clerk of the
governing body of the municipality. If, within 45 days of
notification, affected property owners representing the
ownership of at least one-third of the affected properties
within the NID or affected property owners within the NID
whose property valuation, as assessed for taxable purposes,
amounts to one-third of the total property valuation of
affected property owners within the NID file objections to
the amendment with the chief clerk of the governing body of
the municipality, the plan shall not be amended.
(2) [Amendments] The following amendments to the final
plan [which] also require, in addition to the requirements of
paragraph (1), the approval of the governing body of the
municipality establishing the NID [include]:
(i) Substantially changed or added programs,
improvements and/or services to be provided in the NID.
(ii) [Increased expenditures affecting more than 25%
of the total NIDMA budget for the fiscal year.] Increases
in the budget for any year with respect to which a budget
has been approved in an NIDP approved by the governing
body.
(iii) Incurring increased indebtedness.
(iv) Changing the assessment fee structure levied on
property owners in the NID.
(v) Changing the legal entity (NIDMA) which provides
programs, improvements and services within the NID.
(vi) Changing the NID service area boundary.
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Prior to the governing body of the municipality approving any
of the changes in this paragraph, the governing body shall
hold at least one public hearing to determine that such
changes are in the public interest as it relates to affected
property owners within the NID.
(3) The municipality shall provide public notice of the
hearing for any amendments requiring approval of the
governing body by publication of a notice in at least one
newspaper having a general circulation in the NID, specifying
the time and the place of such hearing and the amendments to
be considered. This notice shall be published once at least
10 days prior to the date of the hearing.
* * *
Section 4. Sections 6(b) and (d)(3), 7(b)(2), 9 and 12(c),
(d) and (e) of the act are amended to read:
Section 6. Creation of neighborhood improvement district
management association.
* * *
(b) Administration.--
[(1)] NIDs created pursuant to this act shall be
administered by an NIDMA which shall be an authority created
pursuant to the act of May 2, 1945 (P.L.382, No.164), known
as the Municipality Authorities Act of 1945, an existing
nonprofit development corporation, an existing nonprofit
corporation or a nonprofit development corporation or
nonprofit corporation established by the governing body or
authorized to be established by the governing body of the
municipality in which the NID is to be located, to administer
the NIDP.
[(2) If an active nonprofit development corporation
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already exists within the geographic boundaries of the NID
and formally indicates its interest to the governing body of
the municipality to become the designated NIDMA, the
governing body of the municipality shall grant that request
unless 51% or more of the affected property owners or
property owners whose property valuation as assessed for
taxable purposes amounts to 51% of the total property
valuation within the proposed NID register their disapproval
of this designation in writing with the clerk of the
governing body within a 45-day period following the formal
written request for designation by the nonprofit development
corporation to become the NIDMA.]
* * *
(d) Board.--Every NIDMA shall have an administrative board.
* * *
(3) Where a nonprofit development corporation or other
nonprofit corporation is established to serve as the NIDMA
for an NID, the board shall be comprised of an odd number of
members, between five and [nine] fifteen, with at least one
member representing the municipal corporation in which the
NID is located.
* * *
Section 7. Powers of neighborhood improvement district
management association.
* * *
(b) Assessments.--
* * *
[(2) All assessments authorized under this section shall
be calculated using January 1 as the first day of the fiscal
year.]
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* * *
Section 9. Annual audit; report.
The NIDMA shall annually:
(1) submit an audit of all income and expenditures to
the Department of Community and Economic Development [and],
the governing body of the municipality in which the NID is
located and any other municipal department, designated by the
NID ordinance, within 120 days after the end of each fiscal
year; and
(2) submit a report, including financial and
programmatic information, including a summary of audit
findings, to the governing body of the municipality in which
the NID is located [and], to all assessed property owners
located in the NID and to any other municipal department,
designated by the NID ordinance, within 120 days after the
end of each fiscal year.
Section 12. Applicability.
* * *
[(c) Districts created subsequently.--Any NID established
subsequent to the effective date of this act shall be governed
by the provisions of this act.
(d) Previously terminated districts.--Any business
improvement district or downtown improvement district in
existence prior to the effective date of this act which is
terminated shall, upon its reestablishment, be governed by the
provisions of this act. This shall include any termination
resulting from a sunset provision in any municipal agreement or
ordinance.]
(e) [Additional requirements.--] Requirements.--A business
improvement district may be established or continued pursuant to
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provisions of this act or the provisions of the Municipality
Authorities Act of 1945, insofar as it relates to business
improvement districts. Any business improvement district or
downtown improvement district [in existence on the effective
date of this act shall:
(1) be required to carry out any duty or responsibility
imposed on NIDs under this act; and
(2)] established under the Municipality Authorities Act
of 1945, insofar as it relates to business improvement
districts, shall possess any additional power given to NIDs
under this act without having to restructure or reorganize
under this act.
Section 5. This act shall take effect in 60 days.
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