Regular Session 2017-2018 Senate Bill 0656 P.N. 0846

PRINTER'S NO. 846

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

656

Session of

2017

INTRODUCED BY FONTANA, McILHINNEY, RESCHENTHALER, YUDICHAK AND

COSTA, MAY 15, 2017

REFERRED TO LOCAL GOVERNMENT, MAY 15, 2017

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in municipal authorities, further

providing for definitions and for purposes and powers.

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 a definition 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:

* * *

"Private lateral water line." A private water line which

utilizes lead or lead-based materials, runs from a structure or

dwelling to the property line or curb stop of the structure or

dwelling and is connected to a public water supply system.

* * *

Section 2. Section 5607(a)(10), (b)(2) and (d)(30)

introductory paragraph are amended and subsection (d) is 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:

* * *

(10) Waterworks, water supply works[,] and water

distribution systems that may include private lateral water

lines.

* * *

(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

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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

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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[.];

(vii) for the expenditure of public money for the

maintenance and repair of private lateral sewer lines or

private lateral water lines, including the utilization of

authority employees for the maintenance and repair of

private lateral sewer lines, whether within or outside

the service area; or

(viii) for the construction and maintenance of water

or sanitary sewer pump stations, public water

distribution systems, public sewer collection systems or

similar general construction services, whether within or

outside the service area.

* * *

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

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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:

* * *

(30) Where a sewer or water system of an authority is to

be extended or where a private lateral water line is to be

replaced or remediated at the expense of the owner of

properties or where the authority otherwise would construct

customer facilities referred to in paragraph (24), other than

water meter installation, a property owner shall have the

right to construct the extension or install the customer

facilities himself or through a subcontractor approved by the

authority, which approval shall not be unreasonably withheld.

The authority shall have the right, at its option, to perform

the construction itself only if the authority provides the

extension, replacement, remediation or customer facilities at

a lower cost and within the same timetable specified or

proposed by the property owner or his approved subcontractor.

Construction by the property owner shall be in accordance

with an agreement for the extension of the authority's system

and plans and specifications approved by the authority and

shall be undertaken only pursuant to the existing

regulations, requirements, rules and standards of the

authority applicable to such construction. Construction shall

be subject to inspection by an inspector authorized to

approve similar construction and employed by the authority

during construction. When a main is to be extended at the

expense of the owner of properties, the property owner may be

required to deposit with the authority, in advance of

construction, the authority's estimated reasonable and

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necessary cost of reviewing plans, construction inspections,

administrative, legal and engineering services. The authority

may require that construction shall not commence until the

property owner has posted appropriate financial security in

accordance with paragraph (23). The authority may require the

property owner to reimburse it for reasonable and necessary

expenses it incurred as a result of the extension. If an

independent firm is employed for engineering review of the

plans and the inspection of improvements, reimbursement for

its services shall be reasonable and in accordance with the

ordinary and customary fees charged by the independent firm

for work performed for similar services in the community. The

fees shall not exceed the rate or cost charged by the

independent firm to the authority when fees are not

reimbursed or otherwise imposed on applicants. Upon

completion of construction, the property owner shall dedicate

and the authority shall accept the extension of the

authority's system if dedication of facilities and the

installation complies with the plans, specifications,

regulations of the authority and the agreement. An authority

may provide in its regulations those facilities which, having

been constructed at the expense of the owner of properties,

the authority will require to be dedicated and which facility

or facilities the authority will accept as a part of its

system.

* * *

(31.1) To perform the replacement or remediation of

private lateral water lines if the authority determines that

the replacement or remediation will benefit the public water

supply system or the public health. No authority that has

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performed the replacement or remediation under this paragraph

shall be deemed to be the owner of the private lateral water

lines or obligated to perform any other duties regarding

private water lines, unless the authority makes an

affirmative determination to accept such duties.

(31.2) To use public funds for the replacement or

remediation of private lateral water lines if the authority

determines that the replacement or remediation will benefit

the public water supply system or the public health. Before

using public funds under this paragraph, the authority shall

consider the available public funds, equipment, personnel and

facilities and the competing demands of the authority for the

public funds, equipment, personnel and facilities.

* * *

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

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