PRINTER'S NO. 921
No. 847 Session of 1987
INTRODUCED BY IRVIS, MANDERINO, CESSAR, ITKIN, SWEET,
DOMBROWSKI, MARKOSEK, F. TAYLOR, DALEY, PHILLIPS, HAYDEN,
WOZNIAK, COWELL, LaGROTTA, TRELLO, JOSEPHS, KASUNIC, MRKONIC,
LAUGHLIN, COLAFELLA, DeWEESE, SALOOM, FATTAH, STAIRS, COHEN,
PRESTON, STEIGHNER, PISTELLA, MAYERNIK, CLARK, OLASZ,
R. C. WRIGHT, CAPPABIANCA, HALUSKA, VAN HORNE, KENNEY,
LIVENGOOD, BUNT, FOX, PETRARCA, RUDY, MORRIS, DeLUCA,
FISCHER, HUGHES, LASHINGER, MAIALE AND HOWLETT, MARCH 16,
1987
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 16, 1987
AN ACT
1 Authorizing the establishment of a commission for counties of
2 the second class and adjacent counties to undertake
3 industrial, land use improvement and civic projects;
4 providing for the powers, members, organization and employees
5 of the commission; granting to the commission the power of
6 eminent domain; authorizing the commission to issue bonds;
7 granting remedies to bondholders; and providing for contracts
8 and purchases, for the sale or lease of projects, for funding
9 of the commission and for an exemption from taxation.
10 TABLE OF CONTENTS
11 Section 1. Short title.
12 Section 2. Legislative findings and declaration of policy.
13 Section 3. Definitions.
14 Section 4. Creation of commissions; powers of commissions.
15 Section 5. Appointment and qualifications of members of the
16 commission.
17 Section 6. Organization of commission.
18 Section 7. Liability of members and directors.
1 Section 8. Interests of members or employees.
2 Section 9. Eminent domain powers.
3 Section 10. Labor relations.
4 Section 11. Fiscal affairs.
5 Section 12. Debt.
6 Section 13. Remedies of bondholders.
7 Section 14. Contracts and purchases.
8 Section 15. Findings for acquisition and improvement.
9 Section 16. Sale or lease of industrial projects.
10 Section 17. Sale or lease of land use improvement projects.
11 Section 18. Sale or lease of civic projects.
12 Section 19. Appointment of hearing examiner.
13 Section 20. Subsidiaries.
14 Section 21. Cooperation with municipalities; loans and grants.
15 Section 22. Exemption from taxation.
16 Section 23. Effective date.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Short title.
20 This act shall be known and may be cited as the Second Class
21 County Regional Commission Act.
22 Section 2. Legislative findings and declaration of policy.
23 (a) Legislative findings.--The General Assembly determines
24 and declares as a matter of legislative finding:
25 (1) That, in the counties of the second class and in the
26 counties which are adjacent to counties of the second class,
27 there exists a condition of substantial and persistent
28 unemployment and underemployment that causes hardship to many
29 individuals and families, wastes vital human resources,
30 impedes the economic and physical development of
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1 municipalities and adversely affects the welfare and
2 prosperity of all of the people of this Commonwealth.
3 (2) That, in the counties of the second class and in the
4 counties which are adjacent to counties of the second class,
5 this condition of substantial unemployment and
6 underemployment has been in large part brought about by the
7 rapid decline of traditional industrial activity which has
8 not yet been fully replaced by new kinds of job-producing
9 opportunities.
10 (3) That the condition of unemployment and
11 underemployment, and the hardships it brings to individuals
12 and families, has been particularly acute in certain
13 communities in the region that were formerly dependent on
14 this traditional industrial activity for employment
15 opportunities and tax revenues.
16 (4) That many existing industrial, manufacturing and
17 commercial facilities in the counties of the second class and
18 in the counties which are adjacent to counties of the second
19 class are obsolete and inefficient, dilapidated and without
20 adequate public services and that many of these facilities
21 are underutilized or in the process of being vacated, thus
22 creating additional unemployment.
23 (5) That technological advances and the provision of
24 modern, efficient facilities in other states will speed the
25 obsolescence and abandonment of existing industrial,
26 manufacturing and commercial facilities, causing further
27 serious injury to the economy of this Commonwealth.
28 (6) That new industrial, manufacturing and commercial
29 facilities are required to attract and house new industries
30 and to reduce the hazards and the deleterious effects of
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1 unemployment.
2 (7) That the unaided efforts of private enterprise have
3 not met and cannot meet the needs of providing industrial,
4 manufacturing and commercial facilities due to the problems
5 encountered in assembling suitable building sites, the lack
6 of adequate public services, the unavailability of private
7 capital for development in the region and the inability of
8 private enterprise alone to plan, finance and coordinate
9 industrial and commercial development with residential
10 developments for persons and families and with public
11 services and transportation facilities.
12 (8) That there exist, in many municipalities within the
13 region, residential, nonresidential, commercial, industrial
14 or vacant areas, and combinations of areas, which because of
15 substandard, unsanitary, deteriorated or deteriorating
16 conditions, including obsolete and dilapidated buildings and
17 structures, defective construction, outmoded design, lack of
18 proper sanitary facilities or adequate fire or safety
19 protection, excessive land coverage, insufficient light and
20 ventilation, excessive population density, buildings
21 abandoned or not utilized in whole or substantial part,
22 obsolete systems of utilities, poorly or improperly designed
23 street patterns and intersections, inadequate access to
24 areas, traffic congestion hazardous to the public safety,
25 lack of suitable off-street parking, inadequate loading and
26 unloading facilities, impractical street widths, sizes and
27 shapes, blocks and lots of irregular form, shape or
28 insufficient size, width or depth, unsuitable topography,
29 subsoil or other physical conditions, hamper or impede proper
30 and economic development of the region and impair or arrest
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1 the sound growth of the region, the municipalities located in
2 the region and this Commonwealth as a whole.
3 (b) Declaration of policy.--It is declared to be the policy
4 of this Commonwealth:
5 (1) To promote a vigorous and growing economy, to
6 prevent economic stagnation and to encourage the creation of
7 new job opportunities in order to protect against the hazards
8 of unemployment, reduce the level of public assistance to now
9 indigent individuals and families, increase revenues to the
10 Commonwealth and its municipalities and achieve stable and
11 diversified local economies.
12 (2) To retain existing industries and to attract new
13 industries through the acquisition, construction,
14 reconstruction and rehabilitation of industrial and
15 manufacturing plants and commercial facilities, and develop
16 sites for new industrial and commercial buildings.
17 (3) To promote the development of plants and facilities,
18 reasonably accessible to residential facilities, in those
19 areas where substantial unemployment or underemployment
20 exists, to the end that the industrial and commercial
21 development of the region will proceed in sound fashion and
22 in coordination with development of housing, mass
23 transportation and public services, and that job
24 opportunities will be available in those areas where people
25 lack jobs.
26 (4) To promote the safety, health and welfare by the
27 creation of a body corporate and politic for each second
28 class county and the counties adjacent to counties of the
29 second class, to be known as the (insert name of region)
30 Commission, which shall exist and operate for the purposes
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1 contained in this act.
2 (c) Purposes of act declared to be public purposes.--The
3 purposes of this act are hereby declared to be public uses for
4 which public money may be spent and private property may be
5 acquired by the exercise of the power of eminent domain.
6 Section 3. Definitions.
7 The following words and phrases when used in this act shall
8 have the meanings given to them in this section unless the
9 context clearly indicates otherwise:
10 "Civic project." A project or that portion of a multipurpose
11 project designed and intended for the purpose of providing
12 facilities for educational, cultural, recreational, community,
13 municipal, public service, infrastructure or other civic
14 purposes.
15 "Commission." A commission created under this act.
16 "Industrial project." A project or that portion of a
17 multipurpose project designed and intended for the purpose of
18 providing facilities for manufacturing, warehousing, research,
19 business or other industrial or commercial purposes.
20 "Land use improvement project." A plan or undertaking for
21 the clearance, replanning, reconstruction and rehabilitation, or
22 a combination of these and other methods, of an area for the
23 purposes of economic development. The term includes renewal,
24 redevelopment, conservation, restoration or improvement of any
25 project for site development and construction of utilities,
26 streets and related improvements.
27 "Project." A specific undertaking or improvement, including
28 lands, buildings, improvements for community use, real and
29 personal properties or any interest in property that is
30 acquired, owned, constructed, reconstructed, rehabilitated or
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1 improved by the commission or any subsidiary of the commission,
2 whether or not still owned or financed by the commission or any
3 subsidiary of the commission. The term includes an industrial
4 project, a land use improvement project or a civic project, or
5 any combination of them.
6 "Region." The area encompassed by a county of the second
7 class, the counties adjacent to a county of the second class and
8 their contiguous counties.
9 Section 4. Creation of commissions; powers of commissions.
10 (a) Commissions created.--There are created bodies corporate
11 and politic in counties of the second class and the counties
12 adjacent to counties of the second class, to be known as the
13 (insert name of region) Commission, which shall constitute
14 public bodies corporate and politic exercising the public powers
15 of the Commonwealth as an agency of the Commonwealth. The
16 commission may at any time admit to membership on the commission
17 other counties in the region that may apply for membership on
18 terms and conditions established by the commission.
19 (b) Powers of commission.--Each commission shall have the
20 following powers:
21 (1) To have perpetual existence.
22 (2) To sue and be sued and to complain and defend before
23 any court or administrative tribunal in any matter affecting
24 the commission or any project of the commission.
25 (3) To adopt, use and alter at will a corporate seal.
26 (4) To establish a principal office and such other
27 office or offices as may be necessary for the carrying on of
28 its duties.
29 (5) To acquire or contract to acquire from any person,
30 firm, corporation, municipality, or Federal or State agency,
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1 by grant, purchase, condemnation or otherwise, leaseholds and
2 real, personal or mixed, tangible or intangible property or
3 any interest in property necessary or desirable for carrying
4 out the purposes of the commission. The commission shall not,
5 however, acquire by exercise of the power of eminent domain
6 all of the property owned or used by a business entity in a
7 commercial or industrial enterprise if the property is being
8 used in that enterprise and the property is being acquired
9 for use by the commission, or by a lessee or grantee of the
10 commission, for the same commercial or industrial use as that
11 to which the property was used immediately prior to
12 condemnation.
13 (6) To own, hold, clear, improve and rehabilitate, and
14 sell, assign, exchange, transfer, convey, lease, mortgage or
15 otherwise dispose of any property or interest in property at
16 any time.
17 (7) To acquire, by purchase, lease or otherwise, and
18 construct, reconstruct, improve, maintain, repair,
19 rehabilitate and operate, and provide for the construction,
20 reconstruction, improvement, alteration or repair of any
21 project.
22 (8) To make bylaws for the management and regulation of
23 its affairs.
24 (9) To appoint officers, agents, employees and servants
25 to serve at the pleasure of the commission, and prescribe
26 their duties and fix their compensation. The commission may
27 bind itself by contract to employ an executive director and
28 other executive personnel, but no employment contract shall
29 be for a period of more than five years.
30 (10) To bargain collectively with its employees and
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1 their designated collective bargaining representatives in
2 accordance with the laws of this Commonwealth dealing with
3 collective bargaining between public employers and public
4 employees.
5 (11) To have the power of eminent domain, subject to the
6 limitations set forth in this act.
7 (12) To make contracts of every name and nature, and to
8 execute all instruments necessary or convenient for the
9 carrying on of its business.
10 (13) To accept grants and loans from and to enter into
11 contracts, leases or other transactions with any Federal
12 agency, the Commonwealth, its agencies, instrumentalities and
13 political subdivisions, any municipality, any authority or
14 any corporation.
15 (14) To authorize grants and loans and to enter into
16 contracts, leases or other transactions with any Federal
17 agency, the Commonwealth, its agencies, instrumentalities and
18 political subdivisions, any municipalities, any authority or
19 any corporation.
20 (15) To engage the services of consultants for the
21 rendering of professional and technical assistance and
22 advice.
23 (16) To provide advisory, consultative, training and
24 educational services, technical assistance and advice to any
25 person, firm, partnership or corporation, either public or
26 private, to carry out the purposes of this act.
27 (17) To enter into cooperation agreements with the
28 Commonwealth, its agencies and political subdivisions, and
29 with the municipalities and authorities when, in the opinion
30 of the commission, the purposes of this act may be
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1 accomplished by doing so.
2 (18) To sell, lease, assign, transfer or otherwise
3 dispose of any project after construction; and to lease,
4 repurchase or otherwise acquire and hold any project which
5 the commission has previously sold, leased or otherwise
6 disposed of.
7 (19) To borrow money, to make and issue notes and bonds,
8 and to secure the payment of the notes and bonds by pledge,
9 mortgage or deed of trust of all or any part of its property,
10 both real and personal, and of its revenues and receipts and
11 to make such agreements with the purchasers or holders of its
12 notes and bonds, or with others in connection with any notes
13 and bonds, whether issued or to be issued, as the commission
14 shall deem advisable, and in general to provide security for
15 notes and bonds by mortgage, pledge or otherwise and to
16 provide for the rights of the holders of notes and bonds. A
17 commission created under this act shall have no power at any
18 time or in any manner to pledge the general credit or taxing
19 power of the Commonwealth or any political subdivision,
20 county or municipality, and the bonds of the commission shall
21 clearly set forth this limitation on the face of the bonds.
22 (20) To invest any funds or moneys of the commission not
23 required for immediate use or disbursement, at the discretion
24 of the commission, in any of the following:
25 (i) Obligations of any of the states of the United
26 States.
27 (ii) Obligations of the Federal Government.
28 (iii) Obligations, the principal and interest of
29 which are guaranteed by any state of the United States or
30 by the Federal Government.
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1 (iv) Obligations of agencies and instrumentalities
2 of the Commonwealth or the Federal Government.
3 (v) Certificates of deposit of a bank or trust
4 company whose principal office is located in this
5 Commonwealth if the certificates are secured by
6 obligations described in subparagraph (i), (ii) or (iii).
7 (21) To undertake civic projects, land use projects and
8 industrial projects.
9 (22) To create subsidiaries in accordance with this act.
10 (23) To procure insurance against any loss in connection
11 with its property and assets and to protect its members,
12 officers and employees from claims arising out of the
13 performance of their duties except that no member, officer or
14 employee shall be entitled to any protection if the claim is
15 caused by the willful misconduct of the member, officer or
16 employee.
17 Section 5. Appointment and qualifications of members of the
18 commission.
19 (a) Resolution required.--Each county of the second class
20 and each county adjacent to a county of the second class that
21 desires to become a member of the commission shall, within 12
22 months after the effective date of this act, adopt a resolution
23 confirming that it is a member of the commission. In the event
24 that any of the counties fails to adopt a resolution within 12
25 months of the effective date of this act, it may thereafter be
26 admitted to membership in the manner provided for other counties
27 in the region under section 4. A project shall not be undertaken
28 in any county that is not a member of the commission. A county
29 may withdraw its membership in the commission by adopting a
30 resolution of intention to withdraw and by giving written notice
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1 of the adoption of the resolution to the commission at its
2 principal office. The effective date of withdrawal shall not be
3 earlier than two years from the date of receipt of notice by the
4 commission.
5 (b) Ex officio directors.--The governing body of the
6 commission shall consist of ex officio directors and public
7 directors. The ex officio directors shall be each of the
8 chairmen of the boards of county commissioners of the member
9 counties, the mayors of cities of the second class located
10 within the member counties and the Secretaries of the
11 Departments of Transportation, Commerce, Labor and Industry,
12 Community Affairs and Education. Notwithstanding the provisions
13 of any other law, none of the ex officio directors may delegate
14 to a deputy the authority to act as a director of the
15 commission, whether in the name of the director or otherwise.
16 The chairman of the board of county commissioners, should he
17 elect not to serve as an ex officio director, may designate
18 another commissioner from the same county to serve as the ex
19 officio director from that county. The designation may be made
20 once annually, prior to the first meeting of the commission for
21 that year. In the event that the departments of the Commonwealth
22 are reorganized and titles and duties changed, the Governor
23 shall designate the appropriate successors to the department
24 heads named in this act to serve as ex officio directors.
25 (c) Public directors.--There shall be the same number of
26 public directors appointed by the Governor as there are ex
27 officio directors representing the member counties and cities.
28 Each of the chairmen of the boards of commissioners who is an ex
29 officio director and each mayor of a city of the second class
30 within the member counties shall nominate one public director
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1 who shall forthwith be appointed by the Governor. The Governor
2 shall appoint a public director of his choice for each public
3 director appointed on the nomination of a chairman or mayor. All
4 public directors shall be residents of the member counties which
5 make up the commission.
6 (d) Term of office of public directors.--The term of office
7 of public directors shall be for four years, except that a
8 public director shall continue to serve until his successor has
9 been appointed and qualified. Vacancies for unexpired terms
10 shall be promptly filled by the appointing power.
11 (e) Expenses of directors.--A director shall receive no
12 compensation for his services but shall be entitled to the
13 necessary expenses, including travel expenses, incurred in the
14 discharge of his duties.
15 (f) Certain employment prohibited.--A public director may
16 not hold any compensated position in the Federal, State or local
17 governments, including positions in any authorities, agencies or
18 commissions, and acceptance of any compensated employment shall
19 disqualify the member from further service on the commission.
20 Section 6. Organization of commission.
21 (a) Chairman of commission.--The chairmanship of the
22 commission shall be rotated at one-year intervals among the ex
23 officio directors of the member counties and the cities of the
24 second class. The rotation shall be in alphabetical order by
25 name of the county, followed by the cities of the second class
26 in alphabetical order.
27 (b) Selection of other officers.--The directors shall
28 select, at an annual meeting from among themselves, a vice
29 chairman and such other officers as the commission shall
30 determine are necessary.
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1 (c) Quorum.--A majority of the commission shall constitute a
2 quorum for its meetings, which shall be held on such dates and
3 at such places as may be chosen by the commission. Directors of
4 the commission may designate official observers, but may not
5 appoint alternates or vote by proxy.
6 (d) Location of principal office.--The principal office of
7 the commission shall be in a city of the second class located
8 within the region.
9 Section 7. Liability of members and directors.
10 Neither members nor directors of the commission shall be
11 liable on the bonds or other obligations of the commission, and
12 the right of creditors shall be solely against the commission.
13 Section 8. Interests of members or employees.
14 (a) Certain interests prohibited.--A director or employee of
15 the commission shall not acquire an interest, direct or
16 indirect, in any project or in any property planned to be
17 included in any project area. A director or employee shall not
18 have any interest, direct or indirect, in any contract for
19 construction, materials or services to be furnished or used by
20 the commission or in any contract with a developer or
21 prospective developer related directly or indirectly to any
22 development project. The acquisition of any interest in a
23 development project or in any property or contract shall
24 constitute misconduct in office.
25 (b) Disclosure of interests.--If any director or employee of
26 the commission owns or controls any interest, direct or
27 indirect, in any property included or planned to be included in
28 any development project under the jurisdiction of the commission
29 or has any interest in any contract for construction, materials
30 or services to be furnished or used in connection with any
19870H0847B0921 - 14 -
1 project, he shall disclose the interest to the commission and
2 the disclosure shall be entered in writing on the minute books
3 of the commission. Failure to make the required disclosure shall
4 constitute misconduct in office.
5 (c) Certain actions not conflict of interest.--It shall not
6 be considered a conflict of interest, however, for a director of
7 the commission to advocate, support and vote in the commission
8 in favor of a project that may involve the institutional and
9 public interest of this Commonwealth, or a county or municipal
10 government or agency, or of a nonprofit institution, in which
11 the director has an office of profit and trust if the favorable
12 action of the commission does not result in a financial gain to
13 the member.
14 Section 9. Eminent domain powers.
15 The commission, upon making a finding that it is necessary or
16 convenient to acquire any real or personal property for its
17 immediate or future use, may acquire property by the exercise of
18 the power of eminent domain pursuant to the act of June 22, 1964
19 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain Code, and
20 for those purposes shall have the power of eminent domain. The
21 commission may use its eminent domain power to acquire property
22 already devoted to a public use, except that the power may not
23 be used to acquire property owned or used by the Commonwealth.
24 Exercise of the eminent domain power shall be subject to the
25 approval of the board of county commissioners of the county or
26 counties in which the acquisition is to be carried out.
27 Section 10. Labor relations.
28 The employees of the commission shall be public employees and
29 the commission and its employees shall be subject to the
30 provisions of the act of July 23, 1970 (P.L.563, No.195), known
19870H0847B0921 - 15 -
1 as the Public Employe Relations Act.
2 Section 11. Fiscal affairs.
3 (a) Source of funds.--This act shall be initially
4 implemented by an assessment against the Commonwealth in the
5 amount of $500,000, which shall be paid to the commission by the
6 State Treasurer immediately after the State Treasurer has been
7 advised by the commission that there have been appointed
8 sufficient members to constitute a quorum for the purpose of
9 carrying on its business. At the same time, the sum of $250,000
10 shall be contributed by the cities of the second class within
11 the region and the sum of $250,000 shall be contributed by the
12 member counties. Each member county shall pay that proportionate
13 share of the aforesaid sum based on the ratio which the
14 population of the county bears to the total population of all
15 member counties as set forth in the most recent census conducted
16 by the Federal Bureau of the Census. Thereafter, on January 31
17 of each calendar year, each county shall pay an annual
18 assessment as may be required by the commission, based on a
19 similar proportionate share of the administrative budget which
20 the commission has adopted. In addition, each county shall pay
21 as part of its annual assessment an amount that includes the
22 local share, if any, of any capital project the commission
23 undertakes located in the county, along with all professional
24 fees associated with the capital project, including, but not
25 limited to, fees for architectural engineering and legal fees.
26 No county, however, shall be assessed for the local share of any
27 capital project located in that county to the extent that
28 revenue bonds are issued by the commission to cover all or part
29 of the local share requirement or some other source of funding
30 is secured to cover all or part of the local share requirement.
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1 An assessment appropriated by a county member from its own
2 funds, if any, shall not be charged against tax rate limitations
3 in effect in that county under applicable law. On January 31 of
4 each year, the Commonwealth shall pay an assessment in an amount
5 equal to twice the total assessments of the member counties.
6 (b) Audit.--The fiscal affairs of the commission shall be
7 subject to an annual audit by the Department of the Auditor
8 General. In addition, any member county or member city of the
9 second class within the region may, either singly or in
10 cooperation with the other members, perform or cause to be
11 performed audits of the fiscal affairs of the commission for any
12 fiscal year in which it has been assessed.
13 (c) Appropriation of funds.--The appropriation of State
14 funds under this act shall not be considered in the reduction of
15 any funds appropriated for any purpose under any other act. The
16 Commonwealth shall not consider funds appropriated under this
17 act when adopting methodologies for the disbursement of funds to
18 any of the members under any State or Federal law.
19 (d) Federal funds.--The receipt of Federal funds of any kind
20 by the commission shall not limit the commission from adopting a
21 budget that would necessitate an assessment, subject to the
22 limitations set forth in this section, against any and all of
23 the members.
24 Section 12. Debt.
25 (a) Power to issue bonds.--The commission shall have the
26 power to issue bonds and other forms of public debt for any of
27 its corporate purposes. The principal, interest and other
28 charges on the bonds or other forms of debt shall be payable
29 solely and exclusively:
30 (1) from the income, revenues and property of the
19870H0847B0921 - 17 -
1 project financed, in whole or in part, with the proceeds of
2 the bonds;
3 (2) from the income and revenues of certain designated
4 projects, whether or not they were financed, in whole or in
5 part, with the proceeds of the bonds; or
6 (3) from its revenues generally.
7 (b) Procedure.--The debt of the commission shall be
8 authorized by resolution of the commission itself, shall be of
9 such series, bear such date or dates, mature at such time or
10 times, not exceeding 40 years from their respective dates, bear
11 interest at such rate or rates, be payable at least
12 semiannually, be in such denominations, be in such form, carry
13 such registration, exchangeability and interchangeability
14 privileges, be payable in medium of payment and at such place or
15 places, be subject to such terms of redemption, with or without
16 premium, and be entitled to such priorities in the revenues or
17 receipts of the commission as such resolution or resolutions may
18 provide in accordance with existing Federal and State laws. The
19 bonds or other form of public debt shall be signed by or shall
20 bear the facsimile signature of such officers as the commission
21 shall determine, and coupon bonds shall have attached to them
22 interest coupons bearing the facsimile signature of the
23 treasurer of the commission, all as may be prescribed by
24 resolution or resolutions. Any bonds or instruments
25 acknowledging debt may be issued and delivered notwithstanding
26 that one or more of the officers signing the bonds or
27 instruments of debt or the treasurer whose facsimile signature
28 is on the coupon, has ceased to be an officer at the time when
29 the bonds or instruments of debt are actually delivered. The
30 bonds or instruments acknowledging debt may be sold at public or
19870H0847B0921 - 18 -
1 private sale for such price or prices as the commission may
2 determine. Any bond or instrument acknowledging debt, reciting
3 in substance that it has been issued by a commission to aid in
4 the financing of a project to accomplish the public purposes of
5 this act, shall be conclusively deemed, in proceedings involving
6 the validity or enforceability of the bond or instrument of debt
7 or security given for the bond or instrument of debt, to have
8 been issued for such purpose.
9 (c) Contract with holders of bonds.--Any resolution or
10 resolutions authorizing any bonds or other forms of public debt
11 may contain provisions which shall be part of the contract with
12 the holders, as to:
13 (1) Pledging the full faith and credit of the commission
14 (but not of the Commonwealth or any of its political
15 subdivisions, except that, upon execution of an agreement
16 with a political subdivision, the debt may become lease
17 rental debt of that entity) for the obligations, or
18 restricting the same to all or any of the assets or to all or
19 any of the revenues or receipts of the commission from all or
20 any projects or properties.
21 (2) The construction, improvement, operation, extension,
22 enlargement, maintenance and repair of the project and the
23 duties of the commission and the industrial occupant with
24 reference thereto.
25 (3) The terms and provisions of the bonds or other forms
26 of public debt.
27 (4) Limitations on the purposes to which the proceeds of
28 the bonds or forms of public debt then or thereafter to be
29 issued, or of any loan or grant by a Federal agency, may be
30 applied.
19870H0847B0921 - 19 -
1 (5) The rentals and other charges for use of the
2 project.
3 (6) The setting aside of reserves or sinking funds and
4 the regulation and disposition thereof.
5 (7) Limitations on the issuance of additional bonds or
6 forms of public debt.
7 (8) The terms and provisions of any deed of trust,
8 mortgage or indenture securing the bonds or other forms of
9 public debt, or under which the same may be issued.
10 (9) Any other or additional agreements with the holders
11 of the bonds or other forms of public debt.
12 (d) Security for bonds.--The commission may enter into any
13 deeds of trust, indentures, mortgages or other agreements with
14 any bank or trust company, including any Federal agency, as
15 security for the bonds or other forms of public debt, and may
16 assign and pledge the assets or all or any of the revenues or
17 receipts of the commission thereunder. The deed of trust,
18 indenture, mortgage or other agreement may contain such
19 provisions as may be customary in such instruments, or as the
20 commission may authorize, including, but without limitation,
21 provisions as to:
22 (1) The construction, improvement, operation,
23 maintenance and repair of any project, and the duties of the
24 commission and the industrial occupant with reference
25 thereto.
26 (2) The application of funds and the safeguarding of
27 funds on hand or on deposit.
28 (3) The rights and remedies of the trustee and the
29 holders of the bonds or other instrument acknowledging public
30 debt, which may include restrictions upon the individual
19870H0847B0921 - 20 -
1 right of action of bondholders.
2 (4) The terms and provisions of the bonds or other forms
3 of public debt or the resolutions authorizing the issuance of
4 the same.
5 (e) Bonds to be negotiable instruments.--The commission's
6 bonds or other forms of public debt shall have all the qualities
7 of negotiable instruments under the law merchant and Title 13 of
8 the Pennsylvania Consolidated Statutes (relating to commercial
9 code).
10 (f) Guarantee of debt.--Nothing in this section shall
11 prevent any other political subdivision from entering into an
12 agreement with the commission providing for a guarantee of the
13 commission's debt.
14 Section 13. Remedies of bondholders.
15 (a) Default by commission.--The rights and remedies
16 conferred upon or granted to the bondholders by this section
17 shall be in addition to and not in limitation of any rights and
18 remedies lawfully granted to bondholders by the resolution or
19 resolutions providing for the issuance of bonds, or by any deed
20 of trust, indenture, mortgage or other agreement under which the
21 same may be issued. In the event that the commission shall
22 default in the payment of principal of, or interest on, any of
23 the bonds after the principal or interest shall become due,
24 whether at maturity or upon call for redemption, and the default
25 shall continue for a period of 30 days, or in the event that the
26 commission shall fail or refuse to comply with the provisions of
27 this act, or shall default in any agreement made with the
28 holders of the bonds, the holders of 25% in aggregate principal
29 amount of the bonds then outstanding, by instrument or
30 instruments filed in the office of the recorder of deeds of the
19870H0847B0921 - 21 -
1 county and proved or acknowledged in the same manner as a deed
2 to be recorded, may appoint a trustee to represent the
3 bondholders for the purposes provided for in this section.
4 (b) Rights of trustee.--The trustees, and any trustee under
5 any deed of trust, indenture or other agreement, may, and upon
6 written request of the holders of 25%, or such other percentage
7 as may be specified in any deed of trust, indenture, mortgage or
8 other agreement, in principal amount of the bonds then
9 outstanding, shall in his or its own name:
10 (1) By mandamus or other suit, action or proceeding at
11 law or in equity, enforce all rights of the bondholders,
12 including the right to require the commission to collect
13 rentals and other charges, in respect of any agreement as to
14 or pledge of the revenues or receipts of the commission, and
15 require the commission to carry out any other agreements with
16 or for the benefit of the bondholders, and to perform its and
17 their duties under this act.
18 (2) Bring suit upon the bonds.
19 (3) By action or suit in equity, require the commission
20 to account as if it were the trustee of an express trust for
21 the bondholders.
22 (4) By action or suit in equity, enjoin any acts or
23 things which may be unlawful or in violation of the rights of
24 the bondholders.
25 (5) By notice in writing to the commission, declare all
26 bonds due and payable, and if all defaults shall be made
27 good, then with the consent of the holders of 25%, or such
28 other percentage as may be specified in any deed of trust,
29 mortgage, indenture or other agreement, of the principal
30 amount of the bonds then outstanding, annul the declaration
19870H0847B0921 - 22 -
1 of default and its consequences.
2 (c) Appointment of receiver.--The court of common pleas of
3 the county of the second class member shall have jurisdiction of
4 any suit, action or proceedings by the trustee on behalf of the
5 bondholders. Any trustee appointed by a court, or a trustee
6 acting under a deed of trust, indenture or other agreement, and
7 whether or not all bonds have been declared due and payable,
8 shall be entitled as of right to the appointment of a receiver,
9 who may enter and take possession of the facilities of the
10 commission or any part or parts of the facilities, the revenues
11 or receipts from which are or may be applicable to the payment
12 of the bonds so in default, and operate and maintain the same,
13 and collect and receive all rentals and other revenues
14 thereafter arising therefrom in the same manner as the
15 commission might do, and shall deposit all the moneys in a
16 separate account and apply the same in such manner as the court
17 shall direct. In any suit, action or proceeding by a trustee,
18 the fees, counsel fees and expenses of the trustee, and of the
19 receiver, if any, and all costs and disbursements allowed by the
20 court shall be a first charge on any revenues and receipts
21 derived from the facilities of the commission, the revenues or
22 receipts from which are or may be applicable to the payment of
23 the bonds so in default. A trustee shall, in addition to the
24 foregoing, have and possess all of the powers necessary or
25 appropriate for the exercise of any functions specifically set
26 forth herein or in any deed of trust, mortgage, indenture or
27 other agreement incident to the general representation of the
28 bondholders in the enforcement and protection of their rights.
29 Section 14. Contracts and purchases.
30 (a) Contracts in excess of $10,000.--All contracts or
19870H0847B0921 - 23 -
1 purchases in excess of $10,000 shall be in writing and, except
2 as otherwise provided in this section, shall not be made except
3 with and from the lowest responsible bidder meeting
4 specifications, after due notice in at least one newspaper of
5 general circulation, published or circulating in the county in
6 which the principal office of the commission is located at least
7 three times at intervals of not less than three days where daily
8 newspapers of general circulation are employed for publication.
9 Where weekly newspapers are employed for publication, the notice
10 shall be published once a week for two successive weeks. The
11 first advertisement shall be published not less than ten days
12 prior to the date fixed for the opening of bids.
13 (b) Contracts under $10,000.--Contracts or purchases under
14 $10,000 may be negotiated with or without competitive bidding
15 under sound procurement procedures established by the
16 commission.
17 (c) Security for performance.--The successful bidder shall
18 be required to furnish security guaranteeing performance of the
19 contract and payment to laborers, subcontractors and suppliers
20 in such forms and amounts as the commission determines to be
21 proper.
22 (d) Contracts not requiring advertising and bidding.--The
23 contracts or purchases made by the commission which shall not
24 require advertising or bidding are as follows:
25 (1) Those made for improvements, repairs and maintenance
26 of any kind made or provided by the commission through its
27 own employees, except that this exemption from advertising
28 and bidding shall not apply to the materials used in making
29 improvements, repairs and maintenance.
30 (2) Those where particular types, models or pieces of
19870H0847B0921 - 24 -
1 new equipment, articles, apparatus, appliances, vehicles or
2 parts desired by the commission are patented and manufactured
3 products or copyrighted products and the purchase is made
4 from the holder of the patent or from the holder of an
5 exclusive license from the holder of the patent or where
6 products are available from a single source where the
7 commission finds that competitive bidding would be
8 inappropriate.
9 (3) Those involving any policies of insurance or surety
10 company bonds.
11 (4) Those made with a municipality, the Commonwealth,
12 the Federal Government, any agency of the Commonwealth or the
13 Federal Government, or any public authority.
14 (5) Those involving personal or professional services.
15 (6) Those involving the purchase or lease of real
16 property.
17 Section 15. Findings for acquisition and improvement.
18 Notwithstanding any other provision of this act, the
19 commission shall not be empowered to undertake the acquisition,
20 construction, reconstruction, rehabilitation or improvement of a
21 project unless:
22 (1) In the case of an industrial project:
23 (i) the project will advance the economic
24 development of the region;
25 (ii) the acquisition or construction and operation
26 of such project will prevent, eliminate or reduce
27 unemployment or underemployment in such area;
28 (iii) the project will consist of a building or
29 buildings which are suitable for manufacturing,
30 warehousing or research or other industrial, business or
19870H0847B0921 - 25 -
1 commercial purposes;
2 (iv) adequate provision has been, or will be made
3 for the payment of the cost of the acquisition,
4 construction, operation, maintenance and upkeep of the
5 project;
6 (v) the acquisition and construction, proposed
7 leasing, operation and use of the project will aid in the
8 development, growth and prosperity of the area in which
9 the project is located; and
10 (vi) the plans and specifications assure adequate
11 light, air, sanitation and fire protection.
12 (2) In the case of a land use improvement project:
13 (i) the project will advance the economic
14 development of the region;
15 (ii) the project consists of a plan or undertaking
16 for the clearance, planning, construction and development
17 of the project area; and
18 (iii) the plan or undertaking affords maximum
19 opportunity for participation by private enterprise,
20 consistent with the sound needs of the municipality as a
21 whole.
22 (3) In the case of a civic project:
23 (i) there exists in the area in which the project is
24 to be located a need for the educational, cultural,
25 recreational, community, municipal, public service,
26 infrastructure or other civic facility to be included in
27 the project;
28 (ii) the project will consist of a building or
29 buildings or other facilities that are suitable for
30 educational, cultural, recreational, community,
19870H0847B0921 - 26 -
1 municipal, public service or other civic purposes;
2 (iii) the project will be leased to or owned by the
3 Commonwealth or an agency or instrumentality of the
4 Commonwealth, a municipality or an agency or
5 instrumentality of a municipality, a public corporation,
6 or any other entity that is carrying out a community,
7 municipal, public service, infrastructure or other civic
8 purpose, and that adequate provision has been or will be
9 made for the payment of the cost of acquisition,
10 construction, operation, maintenance and upkeep of the
11 project; and
12 (iv) the plans and specifications assure or will
13 assure adequate light, air, sanitation and fire
14 protection.
15 Section 16. Sale or lease of industrial projects.
16 (a) Public bidding not required.--Notwithstanding the
17 provision of any general, special or local law, subject to any
18 agreement with noteholders or bondholders, the commission may
19 sell or lease any industrial project, without public bidding or
20 public sale, for such price or rental and upon such terms as may
21 be agreed upon between the commission and the purchaser or
22 lessee, either prior to, at the date of, or subsequent to the
23 completion of the project by the commission, except that in the
24 case of a lease, the term of the lease shall not exceed 99
25 years. Where a contract for sale or lease is entered into after
26 the commencement of construction and prior to the physical
27 completion of the improvement to be conveyed or leased, the
28 commission may complete the construction and development of such
29 improvement prior to the actual conveyance or lease.
30 (b) Notice and public hearing.--Before any sale or lease of
19870H0847B0921 - 27 -
1 all or a substantial part of a project is consummated, there
2 shall be published in at least one newspaper of general
3 circulation in the municipality in which the project is located
4 a notice which shall include a statement of the identity of the
5 proposed purchaser or lessee, the price or rental to be paid,
6 all other essential conditions of the sale or lease and a
7 statement that a public hearing upon such sale or lease will be
8 held before the commission at a specified time and place on a
9 date not less than ten days after such notice. If, however, the
10 commission determines that trade secrets or other confidential
11 information about the prospective purchaser's or lessee's
12 business operations, products, processes or designs would
13 otherwise be revealed by public notice and public hearing, the
14 requirements of this subsection may be waived by unanimous vote
15 of the directors of the commission.
16 Section 17. Sale or lease of land use improvement projects.
17 The commission may sell or lease for a term not exceeding 99
18 years all or any portion of the real or personal property
19 constituting a land use improvement project to any person, firm,
20 partnership or corporation, either public or private, upon such
21 terms and conditions as may be approved by the commission,
22 whenever the commission shall find that such sale or lease is in
23 conformity with a plan or undertaking for the clearance,
24 replanning, reconstruction or rehabilitation of substandard,
25 deteriorated or deteriorating areas in the municipality in which
26 the project is located. The sale or lease may be made:
27 (1) To any local development or redevelopment
28 corporation or authority, without public bidding, public sale
29 or public notice.
30 (2) To any other person, firm, partnership or
19870H0847B0921 - 28 -
1 corporation, without public bidding or public sale if:
2 (i) There is published in at least one newspaper of
3 general circulation in the municipality in which the
4 project is located a notice which shall include a
5 statement of the identity of the proposed purchaser or
6 lessee and of his proposed use or reuse of the land use
7 improvement project area or applicable portion of the
8 area, the price or rental to be paid by the purchaser or
9 lessee, all other essential conditions of the sale or
10 lease, and a statement that a public hearing upon the
11 sale or lease will be held before the commission at a
12 specified time and place on a date not less than ten days
13 after the publication.
14 (ii) A public hearing is held in accordance with the
15 published notice.
16 Section 18. Sale or lease of civic projects.
17 (a) Sale or lease to Commonwealth or entity carrying out
18 civic purpose.--Subject to any agreement with noteholders or
19 bondholders, the commission may sell or lease, for a term not
20 exceeding 99 years, any civic project to the Commonwealth or any
21 agency or instrumentality of the Commonwealth, to any
22 municipality or agency or instrumentality of a municipality, to
23 any public corporation or to any other entity that is carrying
24 out a community, municipal, public service or other civic
25 purpose.
26 (b) Notice and public hearing.--Any such sale or lease
27 pursuant to subsection (a) may be made without public bidding or
28 public sale, upon such terms and conditions as the commission,
29 within its discretion, may determine to be necessary or
30 desirable if:
19870H0847B0921 - 29 -
1 (1) There is published in at least one newspaper of
2 general circulation in the municipality in which the project
3 is located a notice which shall include a statement of the
4 identity of the proposed purchaser or lessee and of his
5 proposed use or reuse of the land use improvement project
6 area or applicable portion of the area, the price or rental
7 to be paid by the purchaser or lessee, all other essential
8 conditions of the sale or lease, and a statement that a
9 public hearing upon the sale or lease will be held before the
10 commission at a specified time and place on a date not less
11 than ten days after the publication.
12 (2) A public hearing is held in accordance with the
13 published notice.
14 (c) Time commission may enter into contract.--The commission
15 may enter into a contract for a sale or lease under subsection
16 (a) either prior to, at the date of or subsequent to the
17 completion of the project by the commission. Where a contract
18 for sale or lease is entered into after the commencement of
19 construction and prior to the physical completion of the
20 improvement to be sold or leased, the commission may complete
21 the construction and development of the improvement prior to the
22 actual conveyance or lease.
23 Section 19. Appointment of hearing examiner.
24 The commission may appoint a hearing examiner for the purpose
25 of receiving the testimony to be offered at any public hearing
26 held by the commission.
27 Section 20. Subsidiaries.
28 (a) Commission authorized to form subsidiary corporation.--
29 The commission shall have the right to exercise and perform its
30 powers and functions through one or more subsidiary nonprofit
19870H0847B0921 - 30 -
1 corporations. The commission, by resolution, may direct any of
2 its directors or employees to organize a subsidiary corporation
3 under 15 Pa.C.S. Part III (relating to corporations not-for-
4 profit). The resolution shall prescribe the purposes for which
5 the subsidiary corporation is to be formed. The corporation
6 shall be deemed a subsidiary corporation whenever and so long as
7 no shares of stock are sold and a majority of the directors,
8 trustees or members of the subsidiary are designees of the
9 commission.
10 (b) Transfer of property to subsidiary corporation.--The
11 commission may transfer to any subsidiary corporation any
12 moneys, real or personal or mixed property, or any project in
13 order to carry out the purposes of this act. Each subsidiary
14 corporation shall have all the privileges, immunities, tax
15 exemptions and other exemptions of the commission to the extent
16 the same are not inconsistent with the laws under which the
17 subsidiary was incorporated.
18 (c) Expenses of directors and employees of subsidiary
19 corporation.--No director or employee of the commission shall
20 receive any additional compensation, either direct or indirect,
21 other than reimbursement for actual and necessary expenses
22 incurred in the performance of his duties, by reason of serving
23 as a member, director or trustee of any subsidiary corporation.
24 Section 21. Cooperation with municipalities; loans and grants.
25 (a) Cooperation with local officials and community
26 leaders.--In effectuating the purposes of this act, the
27 commission shall work closely with, consult with and cooperate
28 with local elected officials and community leaders. The
29 commission shall give consideration to local needs and desires
30 and shall foster local initiative and participation in
19870H0847B0921 - 31 -
1 connection with the planning and development of its projects.
2 Wherever possible, activities of the commission shall be
3 coordinated with local renewal and other community projects, and
4 the commission shall assist localities in carrying out these
5 projects.
6 (b) Agreements with municipalities.--In carrying out any
7 project, the commission and its subsidiaries shall be empowered
8 to enter into contractual agreements with municipalities and
9 public corporations with respect to the furnishing of any
10 community, municipal or public facilities or services necessary
11 or desirable for any project, municipalities or public
12 corporations are hereby authorized and empowered,
13 notwithstanding any other law, to enter into contractual
14 agreements, including loan and grant agreements, with the
15 commission and its subsidiaries and to do all things necessary
16 to assist the commission in carrying out its obligations
17 concerning any project.
18 Section 22. Exemption from taxation.
19 The effectuation of the authorized purposes of the commission
20 created under this act shall and will be in all respects for the
21 benefit of the people of this Commonwealth, for the increase of
22 their commerce and prosperity, and for the improvement of their
23 health and living conditions. Since the commission will be a
24 public instrumentality of this Commonwealth, performing
25 essential governmental functions in effectuating its authorized
26 purposes, the commission shall not be required to pay any taxes
27 or assessments upon any property acquired or used by it for its
28 authorized purposes, and the bonds issued by any commission,
29 their transfer and the income from the bonds, including any
30 profits made on the sale of the bonds, shall at all times be
19870H0847B0921 - 32 -
1 free from taxation within this Commonwealth. Nothing in this
2 section will restrict the commission from imposing as rent,
3 payments of taxes and charges by its tenants, lessees or
4 contractors.
5 Section 23. Effective date.
6 This act shall take effect in 60 days.
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