PRINTER'S NO. 751
No. 679 Session of 1995
INTRODUCED BY STURLA, ITKIN, COY, VAN HORNE, CAPPABIANCA,
YOUNGBLOOD, M. COHEN, BATTISTO, JOSEPHS, WOZNIAK, READSHAW
AND WILLIAMS, FEBRUARY 13, 1995
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 13, 1995
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of 'Authorities' for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," authorizing authorities to provide business
15 improvements and business administrative services; and
16 providing for rescinding objections to the establishment of
17 authorities or implementing services or improvements,
18 registered addresses for such authorities and requirements
19 for members of boards of directors.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. Clause (w) of subsection B and subsection E of
23 Section 4 of the act of May 2, 1945 (P.L.382, No.164), known as
24 the Municipality Authorities Act of 1945, amended or added April
25 10, 1980 (P.L.105, No.41) and July 3, 1980 (P.L.360, No.91), are
26 amended to read:
1 Section 4. Purposes and Powers; General.--* * *
2 B. Every Authority is hereby granted, and shall have and may
3 exercise all powers necessary or convenient for the carrying out
4 of the aforesaid purposes, including but without limiting the
5 generality of the foregoing, the following rights and powers:
6 * * *
7 (w) An Authority, created to provide business improvements
8 and administrative services, may impose an assessment on each
9 benefited property within a business improvement district which
10 shall be based upon the estimated cost of the improvements or
11 services in such district stated in the planning or feasibility
12 study. For the purposes of this act, a benefited property may be
13 defined as one that benefits from the improvements or services
14 provided by the Authority, regardless of its tax status.
15 Such individual assessments shall be determined by one of the
16 following methods:
17 (1) By an assessment determined by multiplying the total
18 improvement or service cost by the ratio of the assessed value
19 of the benefited property, as assessed by the Authority, to the
20 total assessed valuation of all benefited properties in the
21 district, as assessed by the Authority.
22 (2) By an assessment upon the several properties in the
23 district in proportion to benefits as ascertained by viewers
24 appointed in accordance with municipal law.
25 No assessment or charge shall be made unless such Authority
26 has submitted the plan for business improvements and
27 administrative services together with estimated costs and the
28 proposed method of assessments for business improvements and
29 charges for administrative services to the municipality in which
30 the project is to be undertaken and the municipality shall have
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1 approved the plan, the estimated costs and the proposed method
2 of assessment and charges.
3 There shall not be assessed any charges against the improved
4 properties an aggregate amount in excess of the estimated cost.
5 Such Authority may by resolution authorize the payment of the
6 assessment or charge in equal annual, or more frequent
7 installments over such time and bearing interest at such rate
8 not in excess of six per centum as may be specified in the
9 resolution. Where bonds shall have been issued and sold, or
10 notes or guarantees given or issued, to provide for the cost of
11 the improvements or services the assessment in equal
12 installments for bond repayment shall not be payable beyond the
13 term for which the bonds, notes or guarantees are payable.
14 Claims to secure the assessments shall be entered in the
15 prothonotary's office of the county at the same time and in the
16 form and shall be collected in the same manner as municipal
17 claims are filed and collected notwithstanding the provisions of
18 this section as to installment payments.
19 In the case of default in the payment of any installment and
20 interest for a period of sixty days after it becomes due, the
21 entire assessment and accrued interest shall be due.
22 Any owner of property, against whom an assessment has been
23 made, may pay the same in full, at any time, with accrued
24 interest and costs thereon, and such payment shall discharge the
25 lien of such assessment.
26 * * *
27 E. An Authority may be established to make business
28 improvements or provide administrative services in districts
29 designed herein by the municipality or municipalities acting
30 jointly and zoned commercial or used for general commercial
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1 purposes or in contiguous areas, provided the inclusion of a
2 contiguous area is directly related to the improvements and
3 services proposed by such Authority.
4 Such Authority shall make planning or feasibility studies to
5 determine needed improvements or administrative services.
6 Written notice of the proposed improvement or service, the
7 estimated cost thereof and the proposed method of assessment and
8 charges and project cost to individual property owners shall be
9 given to each property owner and commercial lessees in benefited
10 properties in the district at least thirty days prior to the
11 public hearing.
12 Such Authority shall be required to hold a public hearing on
13 the proposed improvement or service, the estimated costs thereof
14 and the proposed method of assessment and charges. Notice of
15 such hearing shall be advertised at least ten days prior thereto
16 in a newspaper whose circulation is within the municipality
17 where such Authority is established. At such public hearing any
18 interested party may be heard.
19 Such Authority shall take no further action on any proposed
20 improvement or service if objection is made in writing by
21 persons representing the ownership of one-third, in numbers of
22 the benefited properties in the district or by property owners
23 of the proposed district whose benefited property valuation as
24 assessed for taxable purposes shall amount to more than one-
25 third of the total benefited property valuation of the district.
26 The Authority shall determine whether benefited properties that
27 are exempt from payment of real estate taxes may or may not be
28 assessed and may or may not be counted in the total number of
29 benefited properties for this purpose. Objection shall be made
30 within forty-five days after the conclusion of the public
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1 hearing on the proposed improvement or service. Objections must
2 be in writing, signed and filed in the office of the governing
3 body of the municipality in which the district is located and in
4 the registered office of such Authority. If the Authority has no
5 registered office, the objections, in writing, must be sent to
6 the registered address of such an Authority.
7 Any property owner who has filed an objection as described
8 above and wishes to withdraw that objection must file a
9 notarized statement which states that he is withdrawing such
10 objection, in the office of the governing body of the
11 municipality in which the district is located and in the
12 registered office of such Authority. If the Authority has no
13 registered office, the notarized statement must be sent to the
14 registered address of the Authority.
15 Section 2. Clause (b) of subsection A of section 7 of the
16 act, amended March 14, 1978 (P.L.12, No.7), is amended to read:
17 Section 7. Governing Body.--A. The powers of each Authority
18 shall be exercised by a governing body (herein called the
19 "Board") composed as follows:
20 * * *
21 (b) If the Authority is incorporated by two or more
22 municipalities, the board shall consist of a number of members
23 at least equal to the number of municipalities incorporating the
24 Authority, but in no event less than five. When one or more
25 additional municipalities join an existing Authority, each of
26 such joining municipalities shall have such membership on the
27 board as the municipalities then members of the Authority and
28 the joining municipalities may determine by appropriate
29 resolutions. The members of the board of a joint Authority shall
30 each be appointed by the governing body of the incorporating or
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1 joining municipality he represents and their terms of office
2 shall commence on the date of appointment. One member shall
3 serve for one year, one for two years, one for three years, one
4 for four years and one for five years from the first Monday in
5 January next succeeding the date of incorporation, amendment or
6 joinder, and if there are more than five members of the board,
7 their terms shall be staggered in a similar manner for terms of
8 from one to five years from the first Monday in January next
9 succeeding. Thereafter, whenever a vacancy has occurred by
10 reason of the expiration of the term of any member, the
11 governing body of the municipality which has the power of
12 appointment shall appoint a member of the board for a term of
13 five years from the date of expiration of the prior term.
14 Except as herein provided for transit authorities created for
15 the purpose of eliminating grade crossings the members of the
16 board, each of whom shall be a taxpayer in, maintain a business
17 in, or be a citizen of the municipality by which he is appointed
18 or be a taxpayer in, maintain a business in, or be a citizen of
19 a municipality into which one or more of the projects of the
20 Authority extends or is to extend or to which one or more of
21 said projects has been or is to be leased, shall be appointed,
22 their terms fixed and staggered, and vacancies filled, and where
23 two or more municipalities are members of the Authority, shall
24 be apportioned in such manner as the articles of incorporation,
25 the amendments thereof or the application for membership
26 required by section three point one of this act shall provide
27 not more than one non-resident shall be appointed to any board.
28 In the case of an Authority that provides business improvements
29 and business administrative services, the percentage of
30 nonresident board members shall not exceed the percentage of
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1 benefited property valuation of the district attributed to
2 properties of nonresident property owners and the percentage of
3 resident board members shall be at least the percentage of
4 benefited property valuation of the district attributed to
5 properties of resident property owners.
6 If the Authority, is created for the purpose of eliminating
7 grade crossings, the members of the board, the majority of whom
8 shall be citizens of the municipality by which they are
9 appointed or of a municipality into which one or more of the
10 projects of the Authority extends or is to extend or to which
11 one or more of said projects has been or is to be leased, shall
12 be appointed, their terms fixed and staggered, and vacancies
13 filled, and where two or more municipalities are members of the
14 Authority, shall be apportioned in such manner as the articles
15 of incorporation, the amendments thereof or the application for
16 membership required by section 3.1 of this act shall provide.
17 * * *
18 Section 3. This act shall take effect in 60 days.
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