PRINTER'S NO. 1331
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
948
Session of
2017
INTRODUCED BY HUTCHINSON, EICHELBERGER, McGARRIGLE, BLAKE AND
SCHWANK, NOVEMBER 15, 2017
REFERRED TO LOCAL GOVERNMENT, NOVEMBER 15, 2017
AN ACT
Amending the act of June 24, 1931 (P.L.1206, No.331), entitled
"An act concerning townships of the first class; amending,
revising, consolidating, and changing the law relating
thereto," further providing for suits and property.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1501 of the act of June 24, 1931
(P.L.1206, No.331), known as The First Class Township Code, is
amended to read:
Section 1501. Suits; Property.--Townships of the first class
may--
I. Sue and be sued.
II. Purchase, acquire by gift, or otherwise, hold, lease,
let and convey, by sale or lease, such real and personal
property as shall be deemed to be to the best interest of the
township: Provided, That no real estate owned by the township
shall be sold for a consideration in excess of one thousand five
hundred dollars except to the highest bidder after due notice by
advertisement for bids or advertisement of a public auction in
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one newspaper of general circulation in the township. Such
advertisement shall be published once not less than ten days
prior to the date fixed for the opening of bids or public
auction, and such date for opening bids or public auction shall
be announced in such advertisement. The award of contracts shall
be made only by public announcement at a regular or special
meeting of the board of township commissioners or at the public
auction. All bids shall be accepted on the condition that
payment of the purchase price in full shall be made within sixty
days of the acceptance of bids.
The board of township commissioners shall have the authority
to reject all bids if such bids are deemed to be less than the
fair market value of the real property. In the case of a public
auction, the board of township commissioners may establish a
minimum bid based on the fair market value of the real property.
Except as otherwise hereinafter provided in the case of
personal property of an estimated fair market value of less than
[one thousand dollars] two thousand dollars, no township
personal property shall be disposed of, by sale or otherwise,
except upon approval of the board of township commissioners, by
ordinance or resolution. In cases where the board of township
commissioners shall approve a sale of such property, it shall
estimate the fair market value of the entire lot to be disposed
of. If the board of township commissioners shall estimate the
fair market value to be [one thousand dollars] two thousand
dollars or more, the entire lot shall be advertised for sale
once, in at least one newspaper of general circulation in the
township, not less than ten days prior to the date fixed for the
opening of bids or public auction, and such date of opening of
bids or public auction shall be announced in such advertisement,
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and sale of the property so advertised shall be made to the best
responsible bidder. A public auction of personal property may be
conducted by means of an online or electronic auction sale.
During an electronic auction sale, bids shall be accepted
electronically at the time and in the manner designated in the
advertisement. During the electronic auction, each bidder shall
have the capability to view the bidder's bid rank or the high
bid price. Bidders may increase their bid prices during the
electronic auction. The record of the electronic auction shall
be accessible for public inspection. The purchase price shall be
paid by the high bidder immediately or at a reasonable time
after the conclusion of the electronic auction as determined by
the board of township commissioners. In the event that shipping
costs are incurred, they shall be paid by the high bidder. A
township that has complied with the advertising requirements of
this clause may provide additional public notice of the sale by
bids or public auction in any manner deemed appropriate by the
board of township commissioners. The advertisement for
electronic auction sales authorized in this clause shall include
the Internet address or means of accessing the electronic
auction and the date, time and duration of the electronic
auction. The board of township commissioners may reject any bids
received if the bids are believed to be less than the fair
market value of the property. The board of township
commissioners shall, by resolution, adopt a procedure for the
sale of surplus personal property, either individual items or
lots of items, of an estimated fair market value of less than
[one thousand dollars] two thousand dollars and the approval of
the board of township commissioners shall not be required for
any individual sale that shall be made in conformity to such
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procedure.
The provisions of this clause shall not be mandatory where
township property is to be traded in or exchanged for new
township property.
The provisions of this clause shall not prohibit the sale or
exchange of township property to public utilities.
The provisions of this clause requiring advertising for bids
or sale at public auction and sale to the highest bidder shall
not apply where township real or personal property is to be sold
to a county, city, borough, town, township, institution
district, school district, volunteer fire company, volunteer
ambulance service or volunteer rescue squad located within the
township, or authority as defined in 53 Pa.C.S. ยง 5602 (relating
to definitions), or to a nonprofit corporation engaged in
community industrial, commercial or affordable housing
development or reuse or where real property is to be sold to a
person for his exclusive use in an industrial development
program or where real property is to be sold to a nonprofit
corporation organized as a public library, or where real
property is to be sold to a nonprofit medical service
corporation as authorized by clause LXXII of section 1502, or
where real property is to be sold to a nonprofit housing
corporation as authorized by clause LXXIII of section 1502. When
real property is to be sold to a nonprofit corporation organized
as a public library or to a nonprofit medical service
corporation or to a nonprofit housing corporation the board of
township commissioners may elect to accept such nominal
consideration for such sale as it shall deem appropriate. Real
property sold pursuant to this clause to a volunteer fire
company, volunteer ambulance service or volunteer rescue squad,
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nonprofit medical service corporation or to a nonprofit housing
corporation shall be subject to the condition that when the
property is not used for the purposes of the company, service,
squad or the corporation the property shall revert to the
township.
Any officer who sells and each officer who votes in favor of
selling any township property, either real or personal, without
the provisions of this section having been complied with, shall
be subject to surcharge in the amount of any loss sustained by
the township by reason of such sale.
The exemption granted by this clause to nonprofit
corporations engaged in community, industrial, commercial or
affordable housing development or reuse shall not apply to
property owned and operated by the township or subcontracted or
operated on the behalf of the township in order to conduct
existing governmental functions.
Section 2. This act shall take effect in 60 days.
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