PRINTER'S NO. 4219

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 3079 Session of 1994


        INTRODUCED BY NAILOR, TRELLO, MERRY, SATHER, MELIO, MASLAND,
           CESSAR, FLEAGLE, FARGO, WAUGH, BARLEY, SANTONI, LEH, TULLI,
           L. I. COHEN, E. Z. TAYLOR, GEIST, GODSHALL, MILLER, LYNCH AND
           MARSICO, SEPTEMBER 28, 1994

        REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, SEPTEMBER 28, 1994

                                     AN ACT

     1  Amending the act of May 1, 1933 (P.L.103, No.69), entitled "An
     2     act concerning townships of the second class; and amending,
     3     revising, consolidating, and changing the law relating
     4     thereto," further providing for the disposal of personal
     5     property and for letting contracts.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  Clause II of section 701 of the act of May 1,
     9  1933 (P.L.103, No.69), known as The Second Class Township Code,
    10  reenacted and amended July 10, 1947 (P.L.1481, No.567) and
    11  amended December 14, 1989 (P.L.629, No.74), is amended to read:
    12     Section 701.  Suits; Property.--Any township of the second
    13  class may--
    14     * * *
    15     II.  Purchase, acquire by gift, or otherwise, hold, lease,
    16  let and convey, by sale or lease, such real and personal
    17  property as shall be deemed to be to the best interest of the
    18  township: Provided, That no real estate owned by the township


     1  shall be sold for a consideration in excess of fifteen hundred
     2  dollars, except to the highest bidder after due notice by
     3  advertisement for bids or advertisement of a public auction in
     4  one newspaper of general circulation in the township. Such
     5  advertisement shall be published once not less than ten days
     6  prior to the date fixed for the opening of bids or public
     7  auction, and such date for opening bids or public auction shall
     8  be announced in such advertisement. The acceptance of bids shall
     9  be made only by public announcement at a regular or special
    10  meeting of the board of township supervisors or at the public
    11  auction. All bids shall be accepted on the condition that
    12  payment of the purchase price in full shall be made within sixty
    13  days of the acceptance of bids.
    14     The board of supervisors shall have the authority to reject
    15  all bids if such bids are deemed to be less than the fair market
    16  value of the real property. In the case of a public auction, the
    17  board of supervisors may establish a minimum bid based on the
    18  fair market value of the real property.
    19     Except as otherwise hereinafter provided in the case of
    20  personal property of an estimated sale value of less than [two
    21  hundred] one thousand dollars, no township personal property
    22  shall be disposed of, by sale or otherwise, except upon approval
    23  of the board of township supervisors, by ordinance or
    24  resolution. In cases where the board of township supervisors
    25  shall approve a sale of such property, it shall estimate the
    26  sale value of the entire lot to be disposed of. If the board of
    27  township supervisors shall estimate the sale value to be [two
    28  hundred] one thousand dollars or more, the entire lot shall be
    29  advertised for sale once, in at least one newspaper of general
    30  circulation in the township, not less than ten days prior to the
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     1  date fixed for the opening of bids or public auction, and such
     2  date of opening of bids or public auction shall be announced in
     3  such advertisement, and sale of the property so advertised shall
     4  be made to the best responsible bidder. The board of township
     5  supervisors shall have authority, by resolution, to adopt a
     6  procedure for the sale of surplus personal property of an
     7  estimated sale value of less than [two hundred] one thousand
     8  dollars and the approval of the board of township supervisors
     9  shall not be required for any individual sale that shall be made
    10  in conformity to such procedure.
    11     The provisions of this clause shall not be mandatory where
    12  township property is to be traded in or exchanged for new
    13  township property.
    14     The provisions of this clause shall not prohibit the sale or
    15  exchange of township property to public utilities.
    16     The provisions of this clause requiring advertising for bids
    17  or sale at public auction and sale to the highest bidder shall
    18  not apply where township real or personal property is to be sold
    19  to a county, city, borough, town, township, institution
    20  district, school district, volunteer fire company, volunteer
    21  ambulance service or volunteer rescue squad located within the
    22  township, or municipal authority pursuant to the Municipality
    23  Authorities Act of 1945, or to a nonprofit corporation engaged
    24  in community industrial development or where real property is to
    25  be sold to a person for his exclusive use in an industrial
    26  development program or where real property is to be sold to a
    27  nonprofit corporation organized as a public library for its
    28  exclusive use as a library, or where real property is to be sold
    29  to a nonprofit medical service corporation as authorized by
    30  clause LXXI of section 702 or where real property is to be sold
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     1  to a nonprofit housing corporation as authorized by clause LXXII
     2  of section 702. When real property is to be sold to a nonprofit
     3  corporation organized as a public library for its exclusive use
     4  as a library or to a nonprofit medical service corporation or to
     5  a nonprofit housing corporation the board of township
     6  supervisors may elect to accept such nominal consideration for
     7  such sale as it shall deem appropriate. Real property sold
     8  pursuant to this clause to a volunteer fire company, volunteer
     9  ambulance service or volunteer rescue squad, nonprofit medical
    10  service corporation or to a nonprofit housing corporation shall
    11  be subject to the condition that when the property is not used
    12  for the purposes of the company, service, squad or corporation
    13  the property shall revert to the township.
    14     Any officer who sells and each officer who votes in favor of
    15  selling any township property, either real or personal, without
    16  the provisions of this section having been complied with, shall
    17  be subject to surcharge in the amount of any loss sustained by
    18  the township by reason of such sale.
    19     * * *
    20     Section 2.  Section 802(c) of the act, amended October 4,
    21  1978 (P.L.1026, No.228), is amended to read:
    22     Section 802.  Letting Contracts.-- * * *
    23     (c)  (1)  The [acceptance] award of bids shall only be made
    24  by public announcement at the meeting at which bids are
    25  received, or at a subsequent meeting, the time and place of
    26  which shall be publicly announced when bids are received. If for
    27  any reason one or both of the above meetings shall not be held,
    28  the same business may be transacted at subsequent meetings:
    29  Provided, That at least five days' notice thereof shall be
    30  published in the newspaper aforesaid.
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     1     (2)  Notwithstanding clause (1), the supervisors may direct
     2  that township staff receive and open bids during normal business
     3  hours and forward the results to the supervisors for subsequent
     4  award at a public meeting.
     5     * * *
     6     Section 3.  This act shall take effect in 60 days.
















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