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)

3Amend Bill, page 27, line 26, by striking out " is" and
4inserting

5 are

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).

12Amend Bill, page 37, line 6, by striking out "15.1" and 
13inserting

14 16

15Amend Bill, page 38, line 8, by striking out "16" and 
16inserting

17 17

18Amend Bill, page 38, lines 26 through 30; page 39, lines 1
19through 5, by striking out all of said lines on said pages

20Amend Bill, page 39, lines 6 through 12, by striking out 
21"amended by adding a" in line 6 and all of lines 7 through 12 
22and inserting

23repealed:

24[Section 253. Termination of status.

25(a) Determination by secretary.--Following a duly advertised
26public hearing with notices given as provided in section 203,
27the secretary may issue a determination that the conditions

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.

12(c) Factors to consider.--In determining whether the
13conditions which led to the earlier determination of municipal
14financial distress are no longer present, the secretary shall
15consider that:

16(1) Monthly reports submitted by the coordinator to the
17department under section 247(a)(3) indicate that termination
18of the status of municipal financial distress is appropriate.

19(2) Accrued deficits in the municipality have been
20eliminated.

21(3) Obligations issued to finance all or part of the
22municipality's deficit have been retired.

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.]

28Amend Bill, page 39, line 17, by striking out "Five-year 
29limitation" and inserting

30 Limitation of status

31Amend Bill, page 40, line 2, by striking out " 253" and 
32inserting

33 255.1

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"

37 final

38Amend Bill, page 40, line 16, by inserting after "date" where 
39it occurs the first time

40 no more than

41Amend Bill, page 40, line 17, by inserting after
 

1"receivership."

2 Section 255 shall not apply to a termination of status
3under this paragraph.

4Amend Bill, page 40, line 19, by striking out "In" and 
5inserting

6 Not later than 180 days after the beginning of

7Amend Bill, page 40, line 20, by striking out "(b)" and 
8inserting

9 (b)(1)

10Amend Bill, page 40, line 25, by striking out "253." and 
11inserting

12 255.1. A report containing a recommendation under this
13paragraph shall address each of the factors set forth in
14section 255.1(c).

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

19 are such that the secretary should request a
20determination of a fiscal emergency in accordance with
21Chapter 6.

22Amend Bill, page 41, line 7, by striking out "(5)" and 
23inserting

24 (4)

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
6consider whether:

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.

20(3) The municipality has negotiated and resolved all
21claims or judgments that would have placed the municipality
22in imminent jeopardy of financial default.

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).

1Amend Bill, page 44, lines 13 and 14, by striking out 
2"declare a fiscal emergency and initiate proceedings under 
3Chapter 7" and inserting

4 make a determination of a fiscal emergency in accordance
5with Chapter 6

6Amend Bill, page 44, lines 24 and 25, by striking out " 
7filing a final report containing a finding as provided in 
8section 255(a)(1)" and inserting

9 a determination or final decision requiring termination
10of status as provided in section 255.1

11Amend Bill, page 45, lines 2 through 10, by striking out 
12"authorize an" in line 2 and all of lines 3 through 10 and 
13inserting

14 request a determination of a fiscal emergency in
15accordance with Chapter 6.

16Amend Bill, page 45, line 15, by striking out "253" and 
17inserting

18 255.1

19Amend Bill, page 45, lines 16 and 17, by striking out 
20"petition the Governor to initiate proceedings under Chapter 7" 
21and inserting

22 request a determination of a fiscal emergency in
23accordance with Chapter 6

24Amend Bill, page 45, lines 20 through 30, by striking out ", 
25upon a written" in line 20 and all of lines 21 through 30 and 
26inserting

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

30Amend Bill, page 46, line 5, by inserting a bracket before
31"Authorization.--In"

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.

13Amend Bill, page 47, lines 13 through 15, by striking out " 
14COLLECTIVE" in line 13, all of line 14 and "MUNICIPALITIES AND" 
15in line 15

16Amend Bill, page 48, line 2, by striking out "service" and 
17inserting

18 services

19Amend Bill, page 52, lines 15 through 19, by striking out 
20"that a receiver" in line 15, all of lines 16 through 18 and 
21"emergency" in line 19 and inserting

22 request a determination of a fiscal emergency in
23accordance with Chapter 6

24Amend Bill, page 52, line 21, by striking out "253" and 
25inserting

26 255.1

27Amend Bill, page 83, line 13, by inserting a bracket before
28"or" where it occurs the second time

29Amend Bill, page 83, line 13, by inserting after "or" where
30it occurs the second time

31] and

32Amend Bill, page 83, line 15, by inserting a bracket before 
33"and" where it occurs the second time

1Amend Bill, page 83, line 15, by inserting after "and" where
2it occurs the second time

3] or

4Amend Bill, page 83, line 16, by inserting a bracket before
5"(i)"

6Amend Bill, page 83, line 16, by inserting a bracket after
7"(i)"

8Amend Bill, page 83, line 16, by inserting after "implement"

9: (i)

10Amend Bill, page 83, line 19, by inserting a bracket before
11"has"

12Amend Bill, page 83, line 19, by inserting a bracket after
13"implement"

14Amend Bill, page 86, line 11, by inserting a bracket before
15the comma after "authority"

16Amend Bill, page 86, line 12, by inserting a bracket after
17"jurisdiction"

18Amend Bill, page 88, line 29, by inserting a bracket before
19the comma after "authority"

20Amend Bill, page 88, line 30, by inserting a bracket after
21"jurisdiction"

22Amend Bill, page 90, line 20, by inserting after "agreement"

23, provided, however, that the provisions of section 252 shall
24apply to any consent agreement adopted in accordance with this
25subchapter

26Amend Bill, page 92, lines 25 and 26, by striking out " or as 
27provided in Subchapter C.1 of Chapter 2"

28Amend Bill, page 93, lines 12 and 13, by striking out "or as
 

1provided in Subchapter C.1 of Chapter 2"

2Amend Bill, page 93, line 30; page 94, line 1, by striking 
3out "or a notification by the secretary" in line 30 on page 93 
4and "as provided in Subchapter C.1 of Chapter 2" in line 1 on 
5page 94

6Amend Bill, page 94, lines 19 and 20, by striking out " or 
7Subchapter C.1 of Chapter 2"

8Amend Bill, page 97, line 9, by inserting a bracket before
9the comma after "authority"

10Amend Bill, page 97, line 10, by inserting a bracket after
11"jurisdiction"

12Amend Bill, page 98, line 28, by inserting after "plan"

13, provided, however, that the provisions of section 252 shall
14apply to any recovery plan adopted in accordance with this
15chapter

16Amend Bill, page 101, line 20, by inserting a bracket before
17the comma after "authority"

18Amend Bill, page 101, line 21, by inserting a bracket after
19"jurisdiction"

20Amend Bill, page 103, line 27, by striking out "253" and 
21inserting

22 255.1

23Amend Bill, page 104, lines 18 and 19, by striking out ", 
24subject to further proceedings in accordance with Chapter 2, 
25Subchapter C.1"

 

See A06364 in
the context
of HB1773