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PRINTER'S NO. 635
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
584
Session of
2017
INTRODUCED BY GILLESPIE, LONGIETTI, V. BROWN, MILLARD, GROVE,
MILNE AND ZIMMERMAN, FEBRUARY 24, 2017
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 24, 2017
AN ACT
Amending Titles 64 (Public Authorities and Quasi-Public
Corporations) and 72 (Taxation and Fiscal Affairs) of the
Pennsylvania Consolidated Statutes, in Title 64, providing
for community development authorities; and, in Title 72,
providing for microenterprise assistance.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 64 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 17
COMMUNITY DEVELOPMENT AUTHORITIES
Sec.
1701. Scope of chapter.
1702. Legislative findings and purpose.
1703. Definitions.
1704. Creation and existence.
1705. Board.
1706. Staff.
1707. Powers.
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1708. Eminent domain.
1709. Acquisition of property.
1710. Disposition of property.
1711. Financing of authority operations.
1712. Microenterprise loans .
1713. Borrowing and issuance of bonds.
1714. Public records and public access.
1715. Merger.
1716. Dissolution of authority.
1717. Conflicts of interest.
1718. Construction, intent and scope.
1719. Annual audit and report.
1720. Cost sharing.
§ 1701. Scope of chapter.
This chapter relates to community development authorities.
§ 1702. Legislative findings and purpose.
The General Assembly finds and declares that:
(1) Strong communities are important to the social and
economic vitality of this Commonwealth. Whether urban,
suburban or rural, many communities are struggling to cope
with vacant, abandoned and tax-delinquent properties.
(2) Citizens of this Commonwealth are affected adversely
by vacant, abandoned and tax-delinquent properties.
(3) Vacant, abandoned and tax-delinquent properties
impose significant costs on neighborhoods, communities and
municipalities by lowering property values, increasing fire
and police protection costs, decreasing tax revenues and
undermining community cohesion.
(4) There is an overriding public need to confront the
problems caused by vacant, abandoned and tax-delinquent
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properties through the creation of new tools to enable
municipalities to turn vacant, abandoned and tax-delinquent
spaces into vibrant places.
(5) Community development authorities are one of the
tools that municipalities may use to facilitate the return of
vacant, abandoned and tax-delinquent properties to productive
use.
(6) One tool available to community development
authorities is leasing to microenterprises. Microenterprises
are part of the small business engine that forms the backbone
of our national and State economies.
(7) Community development authorities, by considering
current land use plans, can serve to help communities grow
and prosper through targeted enterprises.
(8) By providing support for microenterprises, a
powerful mechanism for job creation is strengthened and a
viable tool is made available to revitalize struggling
neighborhoods and improve the standard of living for
impoverished citizens of this Commonwealth. The support of
microenterprises will provide those in poverty an opportunity
for an improved and more prosperous lifestyle while
decreasing the number of individuals receiving public
assistance.
§ 1703. 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:
"Area loan organization." A local development district or
any other nonprofit economic development organization certified
by the department as possessing the qualifications necessary to
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evaluate and administer loans made under this chapter.
"Authority." A community development authority.
"Board." The board of directors of a community development
authority.
"Community development authority." A public body and a body
corporate and politic established under section 1704 (relating
to creation and existence), 53 Pa.C.S. Ch. 56 (relating to
municipal authorities) or the act of May 24, 1945 (P.L.991,
No.385), known as the Urban Redevelopment Law.
"Community development authority jurisdiction." Any of the
following:
(1) A municipality with a population of more than
10,000.
(2) Two or more municipalities comprising an area with a
population of more than 10,000 that is geographically
contiguous and located in the same county, if the
municipalities enter into an intergovernmental cooperation
agreement to establish and maintain a community development
authority.
"Community development financial institution." A community
development financial institution certified in accordance with
the Community Development Banking and Financial Institutions Act
of 1994 (Public Law 103-325, 108 Stat. 2163).
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Financial institution." A bank, savings association,
operating subsidiary of a bank or savings association, community
development financial institution, credit union, association
licensed to originate mortgage loans or an assignee of a
mortgage or note originated by such an institution.
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"Low income." A household with total income at or below 80%
of the area median income, adjusted for household size, as
defined annually by the United States Department of Housing and
Urban Development.
"Microenterprise." A business operated by a sole proprietor
or limited liability company that employs one to five employees
and has the qualifying amount of capital provided under the
Small Business Jobs Act of 2010 (Public Law 111-240, 124 Stat.
2504).
"Municipal authority." An authority established under 53
Pa.C.S. Ch. 56 (relating to municipal authorities).
"Municipality." A county, city, borough, incorporated town,
township or home rule municipality.
"Partnership." A partnership between a commercial or
nonprofit entity and an authority for the training of start-up
entrepreneurs. The term includes a partnership between an
authority and a nonprofit, commercial or religious entity the
sole purpose of which is to use the building space of the entity
for the training of start-up entrepreneurs.
"Political subdivision." Any county, city, borough,
incorporated town, township, school district, vocational school
district and county institution district.
"Real property." Land and all structures and fixtures
thereon and all estates and interests in land, including
easements, covenants and leaseholders.
"Redevelopment authority." A redevelopment authority
established under the act of May 24, 1945 (P.L.991, No.385),
known as the Urban Redevelopment Law.
"School district." Any of the classifications of school
districts specified in section 202 of the act of March 10, 1949
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(P.L.30, No.14), known as the Public School Code of 1949. The
term includes, as to any real property acquired, owned or
conveyed by an authority, the school district within whose
geographical jurisdiction the real property is located.
"Secretary." The Secretary of Community and Economic
Development of the Commonwealth.
"Start-up entrepreneur." An individual who establishes a
microenterprise.
§ 1704. Creation and existence.
(a) Authority.--A community development authority
jurisdiction may elect to create an authority by the adoption of
an ordinance to create a binding legal obligation. The ordinance
must specify the following:
(1) The number of members of the board.
(2) The names of individuals to serve as initial members
of the board and the length of terms which they will serve.
(3) The qualifications, manner of selection or
appointment and terms of office of members of the board.
(4) The manner by which residents will be provided an
opportunity to have input into the authority decision-making
process.
(5) Additional terms and conditions the community
development authority jurisdiction deems reasonable and
necessary for operation of the authority.
(b) Filing.--The governing body of the community development
authority jurisdiction which creates an authority shall file a
copy of the ordinance with the department and with the
Department of State. After receipt of the ordinance, the
Secretary of the Commonwealth shall issue a certificate of
incorporation.
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(c) Combinations.--
(1) The authority under subsection (a) may be exercised
in combination under an intergovernmental cooperation
agreement by:
(i) more than one community development authority
jurisdiction; or
(ii) a community development authority jurisdiction
and one or more municipalities.
(2) If an authority is established under paragraph (1),
the intergovernmental cooperation agreement must specify
matters identified in subsection (a).
(d) Limitation.--Except as set forth in subsection (c), if a
county establishes an authority, the authority shall have the
power to acquire real property only in those portions of the
county located outside of the geographical boundaries of any
other authority established by another community development
authority jurisdiction located partially or entirely within the
county.
(e) Legal status of authority.--An authority shall:
(1) be a public body corporate and politic; and
(2) have duration until terminated and dissolved under
section 1716 (relating to dissolution of authority).
(f) Collaboration.--An authority and political subdivision
and another municipal entity, municipal authority or
redevelopment authority may enter into an intergovernmental
cooperation agreement relative to the operations of an
authority.
§ 1705. Board.
(a) Membership.--A board shall consist of at least 11
members. Unless restricted by the actions or agreements
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specified in section 1704 (relating to creation and existence)
and subject to the limits stated in this section, the size of
the board may be adjusted in accordance with bylaws of the
authority, provided that the board consist of an odd number of
members. The board must include an experienced loan officer and
individuals qualified to properly administer a community
development fund established under section 1711(d) (relating to
financing of authority operations).
(b) Eligibility to serve on board.--
(1) Notwithstanding any law to the contrary, a public
officer shall not be eligible to serve as a board member.
(2) A municipal employee shall not be eligible to serve
as a board member.
(3) The governing body of a municipality and a school
district which are parties to an intergovernmental
cooperation agreement establishing an authority may nominate
two members to the board who meet the qualifications for
board members under this section. The following apply:
(i) A nomination recommendation may be made to the
governing body by a financial institution, nonprofit
organization or other entity that represents the
interests of the community.
(ii) Nominations under this paragraph may only be
made following establishment of the board and are subject
to board approval.
(iii) A nominee under this paragraph may not be a
relative of a public official.
(4) An established authority board shall include at
least one voting member who:
(i) is a resident of the community development
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authority jurisdiction;
(ii) is an appointee of the chief executive officer
of the authority's authorizing jurisdiction;
(iii) is an appointee of the governing body of the
authority's authorizing jurisdiction;
(iv) is an appointee of the secretary;
(v) is a representative of a reputable financial
institution; and
(vi) maintains membership with a recognized civic
organization within the community development authority
jurisdiction.
(5) A member removed under subsection (d)(3) shall be
ineligible for reappointment to the board unless the
reappointment is confirmed unanimously by the board.
(6) As used in this subsection, the term "public
officer" means an individual who is elected to a municipal
office.
(c) Officers.--The members of the board shall select
annually from among their members a chairperson, vice
chairperson, secretary, treasurer and other officers as the
board determines.
(d) Rules.--The board shall establish rules on all of the
following:
(1) Duties of officers under subsection (c).
(2) Attendance and participation of members in its
regular and special meetings.
(3) A procedure to remove a member by a majority vote of
the other members for failure to comply with a rule.
(4) Other matters necessary to govern the conduct of an
authority.
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(e) Vacancies.--A vacancy on the board shall be filled in
the same manner as the original appointment. Upon removal under
subsection (d)(3), the position shall become vacant.
(f) Compensation.--Board members shall serve without
compensation. The board may reimburse a member for expenses
actually incurred in the performance of duties on behalf of the
authority.
(g) Meetings.--
(1) The board shall meet as follows:
(i) In regular session according to a schedule
adopted by the board.
(ii) In special session:
(A) as convened by the chairperson; or
(B) upon written notice signed by a majority of
the members.
(2) A majority of the board, excluding vacancies,
constitutes a quorum. Physical presence is required under
this paragraph.
(h) Voting.--
(1) Except as set forth in paragraph (2) or (3), action
of the board must be approved by the affirmative vote of a
majority of the board present and voting.
(2) Action of the board on the following matters must be
approved by a majority of the entire board membership:
(i) Adoption of bylaws.
(ii) Adoption of rules under subsection (d).
(iii) Hiring or firing of an employee or contractor
of the authority. This function may, by majority vote of
the entire board membership, be delegated by the board to
a specified officer or committee of the authority.
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(iv) Incurring of debt.
(v) Adoption or amendment of the annual budget.
(vi) Sale, lease, encumbrance or alienation of real
property or personal property with a value of more than
$50,000.
(3) A resolution under section 1716 (relating to
dissolution of authority) must be approved by two-thirds of
the entire board membership.
(4) A member of the board may not vote by proxy.
(5) A member may request a recorded vote on any
resolution or action of the authority.
(i) Immunity.--A community development authority
jurisdiction which establishes an authority and a municipality
and a school district which are parties to an intergovernmental
cooperation agreement establishing an authority shall not be
liable personally on the bonds or other obligations of the
authority. Rights of creditors of an authority shall be solely
against the authority.
§ 1706. Staff.
(a) Employees.--An authority may employ or enter into a
contract for an executive director, counsel and legal staff,
financial personnel to underwrite and manage loans issued by the
authority, technical experts and other individuals and may
determine the qualifications and fix the compensation and
benefits of those employees.
(b) Contracts.--An authority may enter into a contract with
a municipality for:
(1) the municipality to provide staffing services to the
authority; or
(2) the authority to provide staffing services to the
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municipality.
(c) Cost.--The cost for administering an authority may not
exceed 10% of the authority's operating budget.
§ 1707. Powers.
(a) General rule.--An authority constitutes a public body,
corporate and politic, exercising public powers of the
Commonwealth necessary or appropriate to carry out this chapter,
including the following powers:
(1) To adopt, amend and repeal bylaws for the regulation
of its affairs and the conduct of its business.
(2) To sue and be sued in its own name and be a party in
a civil action. This paragraph includes an action to clear
title to property of the authority.
(3) To adopt a seal and to alter the same at pleasure.
(4) To borrow from Federal Government funds, from the
Commonwealth, from private lenders or from municipalities, as
necessary, for the operation and work of the authority.
(5) To issue negotiable revenue bonds and notes
according to the provisions of this chapter.
(6) To enter into contracts and other instruments
necessary, incidental or convenient to the performance of its
duties and the exercise of its powers. This paragraph
includes intergovernmental cooperation agreements under 53
Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental
cooperation) for the joint exercise of powers under this
chapter.
(7) To enter into contracts and intergovernmental
cooperation agreements with municipalities for the
performance of functions by municipalities on behalf of the
authority or by the authority on behalf of municipalities.
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(8) To make and execute contracts and other instruments
necessary or convenient to the exercise of the powers of the
authority. Any contract or instrument signed shall be
executed by and for the authority if the contract or
instrument is signed, including an authorized facsimile
signature, by:
(i) the chairperson or vice chairperson of the
authority; and
(ii) either:
(A) the secretary or assistant secretary of the
authority; or
(B) the treasurer or assistant treasurer of the
authority.
(9) To procure insurance against losses in connection
with the real property, assets or activities of the
authority.
(10) To invest money of the authority at the discretion
of the board in instruments, obligations, securities or
property determined proper by the board and to name and use
depositories for its money.
(11) To enter into contracts for the management of, the
collection of rent from or the sale of real property of the
authority.
(12) To design, develop, construct, demolish,
reconstruct, rehabilitate, renovate, relocate and otherwise
improve real property or rights or interests in real
property.
(13) To fix, charge and collect rents, fees and charges
for the use of real property of the authority and for
services provided by the authority.
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(14) To grant or acquire licenses, easements, leases or
options with respect to real property of the authority.
(15) To enter into partnerships, joint ventures and
other collaborative relationships with municipalities and
other public and private entities for the ownership,
management, development and disposition of real property.
(16) To organize and reorganize the executive,
administrative, clerical and other departments of the
authority and to fix the duties, powers and compensation of
employees, agents and consultants of the authority.
(17) To do all other things necessary or convenient to
achieve the objectives and purposes of the authority or other
law related to the purposes and responsibility of the
authority.
(b) Additional authority.--In addition to the powers granted
to an authority under subsection (a), an authority shall have
the following powers:
(1) To issue loans to microenterprises that will operate
on property owned by the authority. The loan program shall
target microenterprises of low-income individuals.
(2) To issue bonds for the purpose of repairing and
improving structures owned by the authority. The bond or
other obligation of an authority related to a bond shall not
be a debt of a municipality or of the Commonwealth.
(3) To negotiate for loans and grants from both public
and private sources, provided that the Commonwealth does not
guarantee these loans.
(4) To make loans to low-income start-up entrepreneurs.
§ 1708. Eminent domain.
An authority does not possess the power of eminent domain.
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§ 1709. Acquisition of property.
(a) Title to be held in its name.--An authority shall hold
in its own name all real property it acquires.
(b) Tax exemption.--
(1) Except as set forth in paragraph (2), the real
property of an authority and its income and operations are
exempt from State and local tax.
(2) Paragraph (1) does not apply to real property of an
authority after the fifth consecutive year in which the real
property is continuously leased to a private third party.
However, real property shall continue to be exempt from State
and local taxes if it is leased to a nonprofit or
governmental agency at substantially less than fair market
value. A nonprofit agency qualifies under this paragraph if
it is acting within the scope and intent of this chapter to
further the development of the community and assist in the
creation of microenterprises.
(c) Acquisitions from municipalities.--
(1) An authority may acquire real property by purchase
contracts, lease purchase agreements, installment sales
contracts and land contracts and may accept transfers from
municipalities upon terms and conditions as agreed to by the
authority and the municipality.
(2) A municipality may transfer to an authority real
property and interests in real property of the municipality
on terms and conditions and according to procedures
determined by the municipality as long as the real property
is located within the jurisdiction of the authority.
(3) A redevelopment authority located within a community
development authority jurisdiction established under this
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chapter may, with the consent of the local governing body and
without a redevelopment contract, convey property which it
acquired before the effective date of this paragraph to the
authority. A conveyance under this paragraph shall be with
fee simple title, free of all liens and encumbrances.
(d) Maintenance.--An authority shall maintain all of its
real property in accordance with the laws of this Commonwealth
and ordinances of the jurisdiction in which the real property is
located.
(e) Prohibition.--
(1) Subject to the provisions of paragraph (2), an
authority may not own or hold real property located outside
the jurisdictional boundaries of the entities which created
the authority under section 1704(c) (relating to creation and
existence).
(2) An authority may be granted authority pursuant to an
intergovernmental cooperation agreement with a municipality
to manage and maintain real property located within the
jurisdiction of the municipality.
(f) Tax claim bureaus.--A tax claim bureau may transfer to
an authority real property of the county held by the tax claim
bureau, as trustee for the county.
(g) Acquisition of tax delinquent properties.--If authorized
by the community development authority jurisdiction which
created an authority or otherwise by intergovernmental
cooperation agreement, an authority may accept donations of real
property and extinguish delinquent claims for taxes as to the
property under section 5.1 of the act of May 16, 1923 (P.L.207,
No.153), referred to as the Municipal Claim and Tax Lien Law, or
section 303 of the act of July 7, 1947 (P.L.1368, No.542), known
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as the Real Estate Tax Sale Law. For the purposes of this
subsection, the authority shall have all rights and obligations
of the municipality provided for in section 5.1 of the Municipal
Claim and Tax Lien Law.
(h) Donation to microenterprise.--Notwithstanding any other
provision of law to the contrary, if a tax delinquent property
offered at judicial sale is not sold, the trustee may donate the
property to an authority for the purpose of a microenterprise
after written notification of the transfer to all interested
parties.
§ 1710. Disposition of property.
(a) Public access to inventory.--An authority shall maintain
and make available for public review and inspection an inventory
of real property held by the authority.
(b) Power.--The authority may convey, exchange, sell,
transfer, lease, grant or mortgage interests in real property of
the authority in the form and by the method determined to be in
the best interests of the authority.
(c) Consideration.--
(1) The authority shall determine the amount and form of
consideration necessary to convey, exchange, sell, transfer,
lease as lessor, grant or mortgage interests in real
property.
(2) Consideration may take the form of monetary payments
and secured financial obligations, covenants and conditions
related to the present and future use of the property,
contractual commitments of the transferee and other forms of
consideration as determined by the board to be in the best
interest of the authority.
(d) Policies and procedures.--
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(1) A board shall determine and state in the authority
policies and procedures the general terms and conditions for
consideration to be received by the authority for the
transfer of real property and interests in real property.
(2) Requirements which may be applicable to the
disposition of real property and interests in real property
by municipalities shall not be applicable to the disposition
of real property and interests in real property by the
authority.
(e) Land use plans.--The authority shall consider all duly
adopted land use plans and make reasonable efforts to coordinate
the disposition of an authority's real property with such land
use plans.
(f) Specific voting and approval requirements.--
(1) A community development authority jurisdiction may,
in its ordinance creating an authority or in the case of
multiple community development authority jurisdictions and
municipalities creating a single authority in the applicable
intergovernmental cooperation agreement, require that a
particular form of disposition of real property or a
disposition of real property located within specified
jurisdictions be subject to specified voting and approval
requirements of the board.
(2) Except as restricted or constrained under paragraph
(1), the board may delegate to officers and employees the
authority to enter into and execute agreements, instruments
of conveyance and other related documents pertaining to the
conveyance of real property by the authority.
§ 1711. Financing of authority operations.
(a) General rule.--The authority may receive funding through
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grants and loans from:
(1) the Federal Government;
(2) the Commonwealth;
(3) a municipality;
(4) the community development authority jurisdiction
which created the authority; and
(5) private sources.
(b) Funding.--An authority may receive and retain payments
for services rendered, for rents and leasehold payments
received, for consideration for disposition of real and personal
property, for proceeds of insurance coverage for losses
incurred, for income from investments and for an asset and
activity lawfully permitted to the authority under this chapter.
(c) Allocated real property taxes.--
(1) A community development authority may authorize the
remittance or dedication of a portion of real property taxes
collected pursuant to the laws of this Commonwealth to the
authority on real property conveyed by an authority.
(2) Allocation of property tax revenues in accordance
with this subsection, if authorized by the community
development authority jurisdiction, shall commence with the
first taxable year following the date of conveyance and
continue for a period of up to five years and may not exceed
a maximum of 50% of the aggregate property tax revenues
generated by the property.
(3) Remittance or dedication of real property taxes
shall include the real property taxes of a school district
only if the school district enters into an agreement with the
authority for the remittance or dedication.
(d) Community development fund.--
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(1) In accordance with the provisions of subsection (a),
a municipality may establish, by ordinance, a community
development fund. Money in a community development fund may
be used to finance the operations of an authority, including:
(i) Acquiring or selling tax delinquent and
foreclosed properties in the municipality's jurisdiction,
except that no more than 15% of the money in the account
may be allocated to the authority for the purpose of
selling foreclosed or tax delinquent properties under the
act of May 24, 1945 (P.L.991, No.385), known as the Urban
Redevelopment Law.
(ii) Maintaining the authority ' s general fund
budget.
(iii) Remediating blighted properties and vacant
properties in the municipality's jurisdiction in any
manner decided upon by the board with consideration to
current land use plans of the municipality.
(iv) Financing the microloans offered by the
authority to microenterprises operated on the property
owned by the authority.
(2) A municipality that establishes a community
development fund shall deposit all of the following into the
account:
(i) Five dollars out of every $100 generated by fees
imposed on real property that is found to have any
violations of a building code.
(ii) Five dollars out of every $100 generated by
fees imposed on real property found to be in violation of
zoning requirements.
(iii) Five dollars out of every $100 generated in
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building permit fees.
(iv) Two dollars out of every $100 collected on the
liens placed against the owner of a property that is
vacant, abandoned or blighted.
§ 1712. Microenterprise loans.
(a) Loan issuance.--
(1) An authority may issue a loan to a microenterprise
that operates on property owned by the authority.
(2) An authority may partner with a private entity that
issues microloans for the purpose of providing a loan under
paragraph (1).
(b) Loan applicants.--For the purpose of reducing the
financial risk involved in issuing a loan under subsection (a)
(1) and providing loan applicants with the skills necessary to
succeed, a loan applicant must complete business courses and
workshops on operating a business, creating market strategy and
customer interaction to be eligible to receive a loan.
(c) Training resources.--
(1) Upon request by an authority, the department shall
assist the authority in identifying organizations that can
provide the business training required under subsection (b)
to loan applicants. The authority shall direct loan
applicants to the organizations that provide the business
training.
(2) The authority may partner with a private entity,
including commercial, nonprofit or religious entities
specializing in training start-up entrepreneurs, for any of
the following:
(i) Using the private entity's facilities or
expertise to help loan applicants fulfill the business
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training required under subsection (b).
(ii) Acquiring building space, whether the building
space is leased or donated, for the purpose of conducting
business training required under subsection (b).
(3) The authority may enter into a contract with a
private entity to expand the private entity's operations to
provide the business training required under subsection (b).
Funds may not be allocated to expand the private entity's
operations to provide the business training required under
subsection (b) unless the board approves the allocation of
funds by a two-thirds vote.
(d) Loan terms.--
(1) If a loan payment becomes delinquent, the board
shall offer a hardship agreement to the microenterprise to
restructure the payment process.
(2) Special priority shall be given to qualified
veterans and minority applicants as determined by an area
loan organization.
§ 1713. Borrowing and issuance of bonds.
(a) Authority.--
(1) An authority may issue a bond for any of its
corporate purposes.
(2) The principal and interest of a bond shall be
payable from the authority's general revenue.
(3) The bond may be secured by any of the following:
(i) A pledge of revenue. This subparagraph includes
a grant or contribution from:
(A) The Federal Government or a Federal agency
or instrumentality.
(B) The Commonwealth, a Commonwealth agency or
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an instrumentality of the Commonwealth.
(ii) A mortgage of property of the authority.
(b) Nature.--The bond must meet the requirements of 13
Pa.C.S. § 3104 (relating to negotiable instrument).
(c) Tax exempt.--A bond and the income from the bond is
exempt from taxation by:
(1) the Commonwealth; and
(2) a political subdivision.
(d) Procedure.--
(1) A bond must be authorized by resolution of the board
and shall be a limited obligation of the authority.
(2) The principal and interest, costs of issuance and
other costs incidental to the bond shall be payable solely
from the income and revenue derived from the sale, lease or
other disposition of the assets of the authority. The
authority may secure the bond by a mortgage or other security
device covering all or part of the project from which the
pledged revenues may be derived.
(3) A refunding bond issued under this section:
(i) shall be payable from:
(A) a source described in this chapter; or
(B) the investment of the proceeds of the
refunding bonds; and
(ii) shall not constitute an indebtedness or pledge
of the general credit of a political subdivision within
the meaning of a constitutional or statutory limitation
of indebtedness and shall contain a recital to that
effect.
(4) A bond must comply with the authorizing resolution
as to:
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(i) form;
(ii) denomination;
(iii) interest rate;
(iv) maturity; and
(v) execution.
(5) A bond may be subject to redemption at the option of
and in the manner determined by the board in the authorizing
resolution.
(e) Powers of municipalities.--A municipality may elect to
guarantee, insure or otherwise become primarily or secondarily
obligated on the indebtedness of the authority, subject,
however, to all other provisions of law of this Commonwealth
applicable to municipal indebtedness.
(f) Sale.--
(1) A bond shall be issued, sold and delivered in
accordance with the terms and provisions of the authorizing
resolution. The board, to effectuate its best interest, may
determine the manner of sale, public or private, and the
price of the bond.
(2) The resolution issuing a bond must be published in a
newspaper of general circulation within the jurisdiction in
which the authority is located.
(g) Liability.--
(1) Neither the members of an authority nor a person
executing the bond shall be liable personally on the bonds by
reason of the issuance of the bond.
(2) The bond or other obligation of the authority
related to a bond shall not be a debt of a municipality or of
the Commonwealth. A statement to this effect shall appear on
the face of the bond or obligation.
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(3) On the bond or other obligation of the authority
related to a bond, all of the following apply:
(i) The Commonwealth has no liability. This
subparagraph applies to the revenue and property of the
Commonwealth.
(ii) A municipality has no liability. This
subparagraph applies to the revenue and property of a
municipality.
§ 1714. Public records and public access.
(a) Public records.--A board shall keep minutes and a record
of its proceedings.
(b) Public access.--The authority is subject to:
(1) 65 Pa.C.S. Ch. 7 (relating to open meetings); and
(2) the act of February 14, 2008 (P.L.6, No.3), known as
the Right-to-Know Law.
§ 1715. Merger.
(a) Merger and consolidation authorized.--An authority and
an existing economic development authority may be merged into
one authority, which for purposes of this section shall be
designated as the surviving authority, or consolidated into a
new authority.
(b) Articles of merger or consolidation.--Articles of merger
or articles of consolidation, as the case may be, shall first be
proposed by the governing body of the municipality or
municipalities creating the authority. The governing body of the
municipality or municipalities incorporating one or more of the
existing authorities shall each adopt an identical resolution
which shall contain the language of the proposed merger or
consolidation. The articles of merger or consolidation shall be
signed by the proper officers of the municipality or
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municipalities and under their respective municipal seals and
shall set forth the following:
(1) The name of the surviving or new authority.
(2) The location of the registered office of the
surviving or new authority.
(3) The names and addresses and term of office of the
members of the board of the surviving or new authority as
specified in the plan of merger or consolidation.
(4) A statement indicating the date on which each
existing authority was formed and the purpose for which it
was formed, taken from the articles of incorporation, the
name of the original incorporating municipality or
municipalities and the name of any successor to the original
incorporating municipality or municipalities thereof.
(5) The time and place of the meetings of the governing
bodies of the municipality or municipalities party to the
plan of merger or consolidation.
(6) A statement of the plan of merger and a timeline for
implementing the plan for merger.
(7) Any changes in the articles of incorporation of the
surviving authority in the case of a merger and a statement
of the articles of incorporation in full in the case of the
new authority to be formed, in each case in conformity with
the provisions of this chapter relating to the incorporation
of authorities, except that any item required to be stated
which is covered elsewhere in the articles of merger or
consolidation need not be repeated.
(c) Publication of resolution.--Each municipality party to
the plan of merger or consolidation shall cause a notice of the
resolution setting forth the merger or consolidation to be
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published at least one time in the legal periodical of the
county or counties in which the surviving authority is to be
organized and at least one time in a newspaper published and in
general circulation in such county or counties. The notice shall
contain a brief statement of the substance of the resolution,
including the substance of the articles of merger making
reference to this chapter, and shall state that on a day
certain, not less than three days after publication of the
notice, articles of merger or consolidation shall be filed with
the Secretary of the Commonwealth. The publication shall be in
sufficient compliance with the laws of this Commonwealth or any
existing laws dealing with publication for municipalities.
(d) Documentation.--The articles of merger or consolidation
shall be filed on or before the day specified in the
advertisement with the Secretary of the Commonwealth together
with the proof of publication of the notice required under
subsection (c).
(e) Certification of merger or consolidation.--The Secretary
of the Commonwealth shall file the articles of merger or
consolidation and the proof of advertisement required in
subsection (c), but not prior to the day specified in the
advertisement, certify the date of the filing when all fees and
charges have been paid and issue to the surviving or new
authority or its representative a certificate of merger or
consolidation to which shall be attached a copy of the filed
articles of merger or consolidation.
(f) Filing the articles of merger or consolidation.--Upon
the filing of the articles of merger or consolidation by the
Secretary of the Commonwealth, the merger or consolidation shall
be effective, and, in the case of a consolidation, the new
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authority shall come into existence, and, in either case, the
articles of merger or consolidation shall constitute the
articles of incorporation of the surviving or new authority.
(g) Creation of surviving or new authority.--Upon the merger
or consolidation becoming effective, the several existing
authorities to the plan of merger or consolidation shall become
a single authority, which, in the case of a merger, shall be
that authority designated in the articles of merger as the
surviving authority and, in the case of a consolidation, shall
be a new authority as provided in the articles of consolidation.
The separate existence of all existing authorities named in the
articles of merger or consolidation shall cease, except that of
the surviving authority in the case of a merger.
(h) Disposition of property and accounts.--All of the
property, real, personal and mixed, and all interests in the
property of each of the existing authorities named in the plan
of merger or consolidation, all debts due and whatever amount
due to any of them, including their respective right, title and
interest in and to all lease rentals, sinking funds on deposit,
all funds deposited under lease or trust instruments shall be
taken and deemed to be transferred to and vested in the
surviving or new authority, as the case may be, without further
act or deed.
(i) Continuation of contracts.--The surviving authority or
the new authority shall be responsible for the liabilities and
obligations of each of the existing authorities so merged or
consolidated but shall be subject to the same limitations,
pledges, assignments, liens, charges, terms and conditions as to
revenues and restrictions and as to leases of properties as were
applicable to each existing authority. The liabilities of the
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merging or consolidating authorities or the members of their
boards or officers shall not be affected nor shall the rights of
creditors thereof or any persons dealing with the merging or
consolidating authorities or any liens upon the property of the
merging or consolidating authorities or any outstanding bonds be
impaired by the merger or consolidation, and any claim existing
or action or proceeding pending by or against any such
authorities shall be prosecuted to judgment as if the merger or
consolidation had not taken place, or the surviving authority or
the new authority may be proceeded against or substituted in its
place.
§ 1716. Dissolution of authority.
(a) General rule.--An authority may be dissolved as a public
body corporate and politic upon compliance with all of the
following:
(1) Sixty calendar days' advance written notice of
consideration of a resolution to request dissolution must:
(i) be given to the community development authority
jurisdiction which created the authority;
(ii) be published in a local newspaper of general
circulation; and
(iii) be sent by certified mail to the trustees of
outstanding bonds of the authority.
(2) A resolution requesting dissolution must be approved
under section 1705(h)(3) (relating to board).
(b) Authority.--Upon receipt of a proper resolution
described in subsection (a)(1), the community development
authority jurisdiction which created the authority may dissolve
the authority by adoption of an ordinance. If approved, the
governing body of the community development authority
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jurisdiction which created the authority shall file a certified
copy of the ordinance with the Department of State, and the
Secretary of the Commonwealth shall cause the termination of the
existence of the authority to be noted on the record of
incorporation. Upon such filing, the authority shall cease to
function. The Secretary of the Commonwealth shall also notify
the department of the dissolution of the authority.
(c) Transfer of assets.--Upon dissolution of the authority,
real property, personal property and other assets of the
authority shall become the assets of the municipality in which
the property is located. The following shall apply:
(1) Personal property, including financial assets, of
the authority shall be divided among participating community
development authority jurisdictions in proportion to the
population of each jurisdiction.
(2) The municipality in which real property is located
shall approve the transfer of title to the municipality.
(d) Multiple jurisdictions.--If multiple community
development authority jurisdictions create an authority under
section 1704(c) (relating to creation and existence), the
withdrawal of one or more community development authority
jurisdictions shall not require dissolution of the authority
unless:
(1) the intergovernmental cooperation agreement provides
for dissolution in this event; and
(2) there is no community development authority
jurisdiction which desires to continue the existence of the
authority.
§ 1717. Conflic ts of interest.
(a) Applicability of adverse interest act.--The acts and
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decisions of members of a board and of employees of the
authority shall be subject to the act of July 19, 1957
(P.L.1017, No.451), known as the State Adverse Interest Act.
(b) Ethical standards.--Board members and authority
employees are subject to 65 Pa.C.S. Ch. 11 (relating to ethics
standards and financial disclosure).
(c) Supplemental rules and guidelines.--The board may adopt:
(1) supplemental rules addressing potential conflicts of
interest; and
(2) ethical guidelines for members of the board and
employees of the authority.
§ 1718. Construction, intent and scope.
This chapter shall be construed liberally to effectuate the
legislative intent and the purposes as complete and independent
authorization for the implementation of this chapter, and all
powers granted shall be broadly interpreted to effectuate the
intent and purposes and not as a limitation of powers.
§ 1719. Annual audit and report.
The following shall apply:
(1) An authority shall annually, within 120 days after
the end of the fiscal year, submit an audit of income and
expenditures, together with a report of its activities for
the preceding year, to the department.
(2) A duplicate of the audit and the report shall be
filed with the governing body of:
(i) the community development authority jurisdiction
which created the authority; and
(ii) each municipality which opted to participate in
the authority pursuant to an intergovernmental agreement.
§ 1720. Cost sharing.
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If an authority acquires property in a city for demolition,
the former lienholder of the property acquired shall share the
authority's demolition costs.
Section 2. Title 72 is amended by adding a chapter to read:
CHAPTER 31
MICROENTERPRISE ASSISTANCE
Subchapter
A. Preliminary Provisions
B. Real Property Tax Abatement
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
3101. Definitions.
§ 3101. 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:
"Microenterprise." As defined in 64 Pa.C.S. § 1703 (relating
to definitions).
"Taxing authority." The governing body of a political
subdivision that has the power to impose a real property tax.
SUBHAPTER B
REAL PROPERTY TAX ABATEMENT
Sec.
3121. Abatement of r eal property tax.
3122. Abatement schedule.
§ 3121. Abatement of real property tax.
Notwithstanding any other provision of law, a taxing
authority shall abate the real property taxes imposed on the
owner of real property as provided under section 3122 (relating
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to abatement schedule) if the real property is used to develop a
microenterprise that has the effect of remediating blight.
§ 3122. Abatement schedule.
A taxing authority subject to section 3121 (relating to
abatement of real property tax) shall abate the real property
taxes imposed on the owner for a period of no more than five
years as follows:
(1) Fifty percent of the tax for the first year the real
property is used for the operation of the microenterprise.
(2) Forty percent of the tax for the second year the
real property is used for the operation of the
microenterprise.
(3) Thirty percent of the tax for the third year the
real property is used for the operation of the
microenterprise.
(4) Twenty percent of the tax for the fourth year the
real property is used for the operation of the
microenterprise.
(5) Ten percent of the tax for the fifth year the real
property is used for the operation of the microenterprise.
Section 3. This act shall take effect in 60 days.
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