H1773B3109A06364 DMS:JSL 03/27/14 #90 A06364
AMENDMENTS TO HOUSE BILL NO. 1773
Sponsor: REPRESENTATIVE ROSS
Printer's No. 3109
1Amend Bill, page 27, line 25, by inserting after "203(c)"
2 and (g)
6Amend Bill, page 28, by inserting between lines 5 and 6
7(g) Appeal.--A determination by the secretary under this
8[act] section is appealable pursuant to [Title 2 of the
9Pennsylvania Consolidated Statutes (relating to administrative
10law and procedure)] 2 Pa.C.S. Ch. 7 Subch. A (relating to
11judicial review of Commonwealth agency action).
24[Section 253. Termination of status.
1which led to the earlier determination of municipal financial
2distress are no longer present. The determination shall rescind
3the status of municipal financial distress and shall include a
4statement of facts as part of the final order.
5(b) Determination upon petition by a municipality.--A
6financially distressed municipality may petition the secretary
7to make a determination that the conditions which led to the
8earlier determination of municipal financial distress are no
9longer present. Upon receiving the petition, the secretary may
10issue a determination to rescind following a duly advertised
11public hearing with notices given as provided in section 203.
23(4) The municipality has operated, for a period of at
24least one year, under a positive current operating fund
25balance or equity, as evidenced by the municipality's audited
26financial statements prepared in accordance with generally
27accepted accounting principles.]
30 Limitation of status
34Amend Bill, page 40, line 14, by inserting after "rescinded"
35 or has been continued in accordance with section 710.1
36Amend Bill, page 40, line 15, by inserting after "a"
40 no more than
41Amend Bill, page 40, line 17, by inserting after
6 Not later than 180 days after the beginning of
15Amend Bill, page 40, lines 28 through 30; page 41, lines 1
16through 6, by striking out "as specified in section 261 exist
17and the" in line 28, all of lines 29 and 30 on page 40 and all
18of lines 1 through 6 on page 41 and inserting
25Amend Bill, page 43, by inserting between lines 5 and 6
26Section 255.1. Termination of status.
27(a) Public hearing.--Within 30 days of the date for the
28filing of a final report containing a finding as provided in
29section 255(a)(1) the secretary shall conduct a public hearing,
30advertised with notices given as provided in section 203.
31(b) Determination.--Within 90 days of the conclusion of the
32public hearing, the secretary shall issue an administrative
33determination of whether the termination of status is
34appropriate and reasons for the determination. The determination
35shall include findings addressing each of the factors in
36subsection (c) and shall consider information provided in the
37report of the coordinator and any additional information
1received during the public hearing.
2(c) Factors to consider.--If the secretary concludes that
3substantial evidence supports an affirmative determination for
4each of the following factors, the determination shall be that
5distressed status will be rescinded. The secretary shall
7(1) Operational deficits of the municipality have been
8eliminated and the financial condition of the municipality,
9as evidenced by audited financial statements prepared in
10accordance with generally accepted accounting principles and
11projections of future revenues and expenditures, demonstrates
12a reasonable probability of future balanced budgets absent
13participation in this act.
14(2) Obligations issued to finance the municipality's
15debt have been retired, reduced or reissued in a manner that
16has adequately refinanced outstanding principle and interest
17and has permitted timely debt service and reasonable
18probability of continued timely debt service absent
19participation in the act.
23(4) The reasonably projected revenues of the
24municipality are sufficient to fund ongoing necessary
25expenditures, including pension obligations and the
26continuation or negotiation of collective bargaining
27agreements and the provision of municipal services.
28Projections of revenues shall include any anticipated tax or
29fee increases to fund ongoing expenditures for the first five
30years after a termination of distressed status.
31(d) Appeal.--A labor organization that is a party to a
32collective bargaining agreement with a financially distressed
33municipality and any other party withstanding under section 202
34may appeal the determination of the secretary pursuant to 2
35Pa.C.S. Ch. 7 Subch. A (relating to judicial review of
36Commonwealth agency action).
37(e) Suspension of subsequent proceedings.--The coordinator
38and secretary shall not take any action under sections 256 and
39257 until a final decision is issued for any appeal under
40subsection (d) or (f). The duration of distressed status of the
41municipality shall be extended subject to subsequent action in
42accordance with section 257.
43(f) Action of the secretary preserved.--Except as otherwise
44provided in chapters 6 and 7, the secretary may, following a
45duly advertised public hearing with notices given as provided in
46section 203, at any time issue a determination as provided in
47this section upon written recommendation of the coordinator
48setting forth a discussion of each of the factors specified in
49subsection (c). The determination may be appealed in accordance
50with subsection (d).
27 terminate the distressed status of the municipality.
28Amend Bill, page 46, line 2, by inserting after "amended"
29 and the section is amended by adding a subsection
32Amend Bill, page 46, line 6, by inserting after "a"
1] General authorization.--A
2Amend Bill, page 46, line 9, by inserting after "seq.)"
3, if at least one of the following conditions is present
4Amend Bill, page 46, by inserting between lines 14 and 15
5(a.1) Filing after determination of distress.--The
6municipality's authorization under subsection (a) shall continue
7after the issuance of a declaration of distress under section
8203, so long as the municipality is not in a state of fiscal
9emergency pursuant to a declaration under section 602. A
10municipality that is in a state of fiscal emergency shall not be
11authorized under subsection (a) to apply to the department to
12file a municipal debt adjustment.
8Amend Bill, page 83, line 16, by inserting after "implement"
22Amend Bill, page 90, line 20, by inserting after "agreement"
28Amend Bill, page 93, lines 12 and 13, by striking out "or as
1provided in Subchapter C.1 of Chapter 2"
12Amend Bill, page 98, line 28, by inserting after "plan"