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)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
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
20170SB0656PN0846 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20170SB0656PN0846 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20170SB0656PN0846 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20170SB0656PN0846 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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
20170SB0656PN0846 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
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.
20170SB0656PN0846 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15