HOUSE AMENDED
        PRIOR PRINTER'S NOS. 723, 1945                PRINTER'S NO. 2340

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 689 Session of 1995


        INTRODUCED BY ROBBINS, CORMAN, BAKER, STOUT AND STEWART,
           MARCH 7, 1995

        AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, OCTOBER 8, 1996

                                     AN ACT

     1  Amending Title 53 (Municipalities Generally) of the Pennsylvania
     2     Consolidated Statutes, adding revised, codified and compiled
     3     provisions relating to local government; and making repeals.

     4                              TITLE 53
     5                      MUNICIPALITIES GENERALLY
     6                  PART I.  PRELIMINARY PROVISIONS
     7  Chapter 1.  General Provisions
     8  § 101.  Short title of title.
     9     PART II.  CREATION, TERRITORY, ALTERATION AND DISSOLUTION
    10  Chapter 9.  Municipal Reapportionment
    11  § 901.  Short title and scope of chapter.
    12  § 902.  Definitions.
    13  § 903.  Reapportionment by governing body.
    14  § 904.  Reapportionment by court upon petition.
    15  § 905.  Compensation of commissioners and payment of costs.
    16  § 906.  Contest of reapportionment by governing body.
    17  § 907.  Costs and expenses of contest.

     1  § 908.  Retention in office and new elections.
     2              PART III.  GOVERNMENT AND ADMINISTRATION
     3                   SUBPART A.  GENERAL PROVISIONS
     4  Chapter 11.  General Provisions
     5     Subchapter A.  (Reserved)
     6     Subchapter B.  Emergency Seat of Government
     7  § 1121.  Scope of subchapter.
     8  § 1122.  Establishment and designation.
     9  § 1123.  Exercise of powers and functions.
    10  § 1124.  Applicability of subchapter.
    11     Subchapter C.  Emergency Succession of Officers
    12  § 1131.  Scope of subchapter.
    13  § 1132.  Declaration of policy.
    14  § 1133.  Definitions.
    15  § 1134.  Enabling authority for emergency interim successors for
    16             local offices.
    17  § 1135.  Emergency interim successors for local officers.
    18  § 1136.  Formalities of taking office.
    19  § 1137.  Succession period.
    20  § 1138.  Term and removal of designees.
    21                     SUBPART B.  GOVERNING BODY
    22  Chapter 13.  General Provisions
    23     Subchapters A through E (Reserved)
    24     Subchapter F.  Records
    25  § 1381.  Short title and scope of subchapter.
    26  § 1382.  Definitions.
    27  § 1383.  Disposition of public records.
    28  § 1384.  Proposed retention and disposal schedules.
    29  § 1385.  Local Government Records Committee.
    30  § 1386.  Effect of approval of schedule.
    19950S0689B2340                  - 2 -

     1  § 1387.  Nonliability of official.
     2  § 1388.  Destruction of original records.
     3  § 1389.  Applicability of other statutes.
     4     SUBPART C.  EXECUTIVE DEPARTMENTS, OFFICERS AND EMPLOYEES
     5  Chapter 21.  Employees
     6     Subchapters A through E (Reserved)
     7     Subchapter D.  Municipal Police Education and Training
     8  § 2161.  Establishment of program and scope of subchapter.
     9  § 2162.  Definitions.
    10  § 2163.  Commission members.
    11  § 2164.  Powers and duties of commission.
    12  § 2165.  Meetings and quorum of commission.
    13  § 2166.  Applicability to civil service laws.
    14  § 2167.  Police training.
    15  § 2168.  Automatic certification.
    16  § 2169.  In-service training by existing personnel.
    17  § 2170.  Reimbursement of expenses.
    18  § 2171.  Payment of certain county costs.
    19   SUBPART D.  AREA GOVERNMENT AND INTERGOVERNMENTAL COOPERATION
    20  Chapter 23.  General Provisions
    21     Subchapter A.  Intergovernmental Cooperation
    22  § 2301.  Scope of subchapter.
    23  § 2302.  Definitions.
    24  § 2303.  Intergovernmental cooperation authorized.
    25  § 2304.  Intergovernmental cooperation.
    26  § 2305.  Ordinance.
    27  § 2306.  Initiative and referendum.
    28  § 2307.  Content of ordinance.
    29  § 2308.  Bids for certain joint purchases.
    30  § 2309.  Direct purchases.
    19950S0689B2340                  - 3 -

     1  § 2310.  Joint purchases with private educational
     2             establishments.
     3  § 2311.  Written or telephonic price quotations required.
     4  § 2312.  Division of transactions provided.
     5  § 2313.  Penalty.
     6  § 2314.  Review of agreement by Local Government Commission.
     7  § 2315.  Effect of joint cooperation agreements.
     8     Subchapter B.  Environmental Advisory Councils
     9  § 2321.  Scope of subchapter.
    10  § 2322.  Establishment of Environmental Advisory Council.
    11  § 2323.  Composition and organization of council.
    12  § 2324.  Powers and duties of council.
    13  § 2325.  Records and reports.
    14  § 2326.  Appropriations for expenses of council.
    15  § 2327.  Status of existing agencies unaffected.
    16  § 2328.  Assistance from Department of Environmental Resources.
    17  § 2329.  Assistance from Department of Community Affairs.
    18     Subchapter C.  Regional Planning
    19  § 2341.  Short title and scope of subchapter.
    20  § 2342.  Definitions.
    21  § 2343.  Declaration of policy.
    22  § 2344.  Establishment and organization of regional planning
    23             commission.
    24  § 2345.  Finances, staff and program.
    25  § 2346.  Commission to prepare master plan.
    26  § 2347.  Cooperation between commission, municipalities and
    27             others.
    28  § 2348.  Interstate participation.
    29  Chapter 25.  Environmental Improvement Compacts
    30     Subchapter A.  Preliminary Provisions
    19950S0689B2340                  - 4 -

     1  § 2501.  Short title and scope of chapter.
     2  § 2502.  Definitions.
     3     Subchapter B.  Initiative
     4  § 2511.  Proposal by electors.
     5  § 2512.  Initiative petition.
     6  § 2513.  Review of initiative petition.
     7  § 2514.  Petition as public record.
     8  § 2515.  Distribution of petition.
     9     Subchapter C.  Municipal Referendum Ordinance
    10  § 2521.  Referendum ordinance.
    11  § 2522.  Filing of referendum ordinance.
    12  § 2523.  Notice to governing bodies of referendum date.
    13     Subchapter D.  Referendum
    14  § 2531.  Referendum procedures.
    15  § 2532.  Placing question on ballot.
    16  § 2533.  Date of election.
    17  § 2534.  Public notice of referendum.
    18  § 2535.  Approval.
    19  § 2536.  Results of election.
    20     Subchapter E.  Election of Board
    21  § 2541.  Election of board.
    22  § 2542.  Nomination of candidates.
    23  § 2543.  Election returns.
    24     Subchapter F.  Organization of Board
    25  § 2551.  Membership of board.
    26  § 2552.  Compensation of board.
    27  § 2553.  Organization of board.
    28  § 2554.  Secretary and treasurer of board.
    29  § 2555.  Purposes and powers of board.
    30         SUBPART E.  HOME RULE AND OPTIONAL PLAN GOVERNMENT
    19950S0689B2340                  - 5 -

     1  Chapter 29.  General Provisions
     2     Subchapter A.  Preliminary Provisions
     3  § 2901.  Short title and scope of subpart.
     4  § 2902.  Definitions.
     5     Subchapter B.  Procedure for Adoption of Home Rule Charter or
     6                     Optional Plan of Government
     7  § 2911.  Submission of question for election of government study
     8             commission.
     9  § 2912.  Election of members of commission.
    10  § 2913.  Nomination of candidates.
    11  § 2914.  Results of election.
    12  § 2915.  Oath of office of members of commission.
    13  § 2916.  First meeting of commission.
    14  § 2917.  Vacancies.
    15  § 2918.  Function and duty of commission.
    16  § 2919.  Compensation and personnel.
    17  § 2920.  Hearings and public forums.
    18  § 2921.  Report of findings and recommendations.
    19  § 2922.  Discharge of petition and amended reports.
    20  § 2923.  Types of action recommended.
    21  § 2924.  Specificity of recommendations.
    22  § 2925.  Form of question on form of government.
    23  § 2926.  Submission of question on form of government.
    24  § 2927.  Limitation on enactment of ordinance or filing of
    25             petition.
    26  § 2928.  Time when change of form of government takes effect.
    27  § 2929.  Limitation on changing new form of government.
    28  § 2930.  Status of forms of government provided in subpart.
    29     Subchapter C.  Amendment of Existing Charter or Optional Plan
    30  § 2941.  Procedure for amendment of charter or optional plan.
    19950S0689B2340                  - 6 -

     1  § 2942.  Initiation of amendment by electors or council.
     2  § 2943.  Petition for referendum or ordinance proposing
     3             amendment.
     4  § 2944.  Time and manner of submission of question.
     5     Subchapter D.  Conduct of Election
     6  § 2951.  Conduct and results of election.
     7  § 2952.  Notice of election.
     8     Subchapter E.  General Powers and Limitations of Home Rule
     9                     Charter Municipalities
    10  § 2961.  Scope of powers of home rule.
    11  § 2962.  Limitations on municipal powers.
    12  § 2963.  Exercise of municipal powers by home rule county.
    13  § 2964.  General powers of municipalities.
    14  § 2965.  Recording and filing of charter.
    15  § 2966.  Continuation of office of existing elective officials.
    16  § 2967.  Repeal of home rule charter.
    17     Subchapter F.  General Provisions and Limitations for
    18                     Optional Plan Municipalities
    19  § 2971.  Law applicable to optional plan.
    20  § 2972.  Recording and filing of plan.
    21  § 2973.  Scope of powers of optional plan.
    22  § 2974.  Limitation on powers of optional plan.
    23     Subchapter G.  Miscellaneous Provisions
    24  § 2981.  Limitation on local municipality.
    25  § 2982.  Retention of existing form of government.
    26  § 2983.  Retention of existing form of government when electors
    27             disapprove proposal.
    28  § 2984.  Assumption of functions previously assumed by other
    29             municipality.
    30  Chapter 30.  Types of Optional Plans of Government
    19950S0689B2340                  - 7 -

     1     Subchapter A.  Executive (Mayor) - Council Plan A
     2  § 3001.  Designation and applicability of plan.
     3  § 3002.  Officers and employees.
     4  § 3003.  Election and term of office of officials.
     5  § 3004.  Election and term of office of council members.
     6  § 3005.  First election of council members.
     7  § 3006.  Legislative power vested in council.
     8  § 3007.  Organization of council.
     9  § 3008.  Powers of council concerning officers and agencies.
    10  § 3009.  Appointment and duties of municipal clerk or secretary.
    11  § 3010.  Executive power vested in executive.
    12  § 3011.  Powers and duties of executive.
    13  § 3012.  Approval or veto of ordinances.
    14  § 3013.  Mayor, departments and department heads.
    15  § 3014.  Department of administration.
    16  § 3015.  Budget.
    17  § 3016.  Form and adoption of budget.
    18  § 3017.  Amended budget.
    19  § 3018.  Council amendments to budget.
    20     Subchapter B.  Executive (Mayor) - Council Plan B
    21  § 3031.  Designation and applicability of plan.
    22  § 3032.  Departments.
    23  § 3033.  Mandatory department of administration.
    24     Subchapter C.  Executive (Mayor) - Council Plan C
    25  § 3041.  Designation and applicability of plan.
    26  § 3042.  Powers and duties of executive.
    27  § 3043.  Appointment and duties of managing director.
    28     Subchapter D.  Council-Manager Plan
    29  § 3051.  Designation and applicability of plan.
    30  § 3052.  Officers and employees.
    19950S0689B2340                  - 8 -

     1  § 3053.  Election and term of office of elected officials.
     2  § 3054.  Election and term of office of council members.
     3  § 3055.  First election of council members.
     4  § 3056.  Selection of mayor, council president or chairman.
     5  § 3057.  Appointment and duties of municipal clerk or secretary.
     6  § 3058.  Powers and duties of council.
     7  § 3059.  Qualifications of municipal manager.
     8  § 3060.  Removal of municipal manager from office.
     9  § 3061.  Inability of municipal manager to perform duties.
    10  § 3062.  Powers and duties of municipal manager.
    11  § 3063.  Preparation and adoption of budget.
    12  § 3064.  Amended budget.
    13     Subchapter E.  Small Municipality Plan
    14  § 3071.  Designation and applicability of plan.
    15  § 3072.  Officers.
    16  § 3073.  Election of council members.
    17  § 3074.  Organization of council.
    18  § 3075.  Powers and duties of council.
    19  § 3076.  Municipal clerk or secretary, solicitor and agencies.
    20  § 3077.  Powers and duties of executive.
    21  § 3078.  Appointment of officers and employees by executive.
    22  § 3079.  Preparation and adoption of budget.
    23  § 3080.  Amended budget.
    24     Subchapter F.  Optional County Plan
    25  § 3091.  Designation and applicability of plan.
    26  § 3092.  County officers.
    27  § 3093.  Powers.
    28  § 3094.  Additional options for election of county sheriff.
    29  § 3095.  Approval of plan.
    30  Chapter 31.  General Provisions Common to Optional Plans
    19950S0689B2340                  - 9 -

     1     Subchapter A.  Officers and Employees
     2  § 3101.  Adverse interest in contracts for purchase or services.
     3  § 3102.  Acceptance of services at more favorable terms.
     4  § 3103.  Gift or promise of thing of value to influence
     5             political support.
     6  § 3104.  Refusal or failure to appear or testify before court.
     7     Subchapter B.  Treasurer
     8  § 3111.  Selection and duties of municipal treasurer.
     9     Subchapter C.  Appointment Power and Personnel
    10  § 3121.  Appointment of members of boards and commissions.
    11  § 3122.  Appointment of subordinate officers and employees.
    12     Subchapter D.  Filling Vacancies in Elected Office
    13  § 3131.  Applicability of subchapter.
    14  § 3132.  Manner of filling vacancies in office.
    15     Subchapter E.  Legislation by Council
    16  § 3141.  Regular and special meetings of council.
    17  § 3142.  Procedure and functions of council.
    18  § 3143.  Adoption of ordinances.
    19  § 3144.  Recording and compilation of ordinances and
    20             resolutions.
    21  § 3145.  Filing and publication of rules and regulations.
    22  § 3146.  Passage of administrative ordinance.
    23     Subchapter F.  Audit and Control
    24  § 3151.  Exercise of financial management control functions.
    25  § 3152.  Post audits by independent auditor.
    26  § 3153.  Selection of controller.
    27     Subchapter G.  Transition to Optional Plan Government
    28  § 3161.  Applicability of plan.
    29  § 3162.  Status and term of office of officials.
    30  § 3163.  Compensation of elected officials.
    19950S0689B2340                 - 10 -

     1  § 3164.  Status of existing ordinances and resolutions.
     2  § 3165.  Abolishment of existing appointive offices.
     3  § 3166.  Pending actions and proceedings.
     4     Subchapter H.  Repeal of Optional Plan
     5  § 3171.  Repeal of optional plan and establishment of new form
     6             of government.
     7        PART V.  PUBLIC IMPROVEMENTS, UTILITIES AND SERVICES
     8                   SUBPART A.  GENERAL PROVISIONS
     9  Chapter 54.  Business Improvement Districts
    10  § 5401.  Short title and scope of chapter.
    11  § 5402.  Definitions.
    12  § 5403.  Powers of governing body.
    13  § 5404.  Administrative services provided by cities of the
    14             second class.
    15  § 5405.  Assessment authorized.
    16  § 5406.  Method and payment of assessment.
    17               PART VII.  TAXATION AND FISCAL AFFAIRS
    18               SUBPART B.  INDEBTEDNESS AND BORROWING
    19  Chapter 80.  General Provisions
    20     Subchapter A.  Preliminary Provisions
    21  § 8001.  Short title, scope and applicability of subpart.
    22  § 8002.  Definitions.
    23  § 8003.  Advertisement and effectiveness of ordinances.
    24  § 8004.  When lease or other agreement evidences acquisition of
    25             capital asset.
    26  § 8005.  Classification and authority to issue bonds and notes.
    27  § 8006.  Preliminary cost estimates.
    28  § 8007.  Cost of project.
    29  § 8008.  Home rule.
    30  § 8009.  Guaranty funds and compulsory associations.
    19950S0689B2340                 - 11 -

     1     Subchapter B.  Limitations on Debt of Local Government Units
     2  § 8021.  No limitation on debt approved by electors.
     3  § 8022.  Limitations on incurring of other debt.
     4  § 8023.  Transfer to electoral debt of debt incurred without
     5             approval of electors.
     6  § 8024.  Exclusion of subsidized debt from net nonelectoral debt
     7             or net lease rental debt.
     8  § 8025.  Exclusion of self-liquidating debt evidenced by revenue
     9             bonds or notes to determine net nonelectoral debt.
    10  § 8026.  Exclusion of other self-liquidating debt to determine
    11             net nonelectoral debt or net lease rental debt.
    12  § 8027.  Effect of debt limitations on outstanding debt.
    13  § 8028.  Determination of existing net nonelectoral debt and net
    14             nonelectoral plus net lease rental debt.
    15  § 8029.  Determination of debt limits.
    16     Subchapter C.  Procedure for Securing Approval of Electors
    17  § 8041.  Desire resolution and expense of certain elections.
    18  § 8042.  Advertisement of election.
    19  § 8043.  Conduct of election.
    20  § 8044.  Finality of result of election.
    21  § 8045.  Effect of defeat of question.
    22  § 8046.  Issuance of bonds, notes or other instruments to
    23             evidence electoral debt.
    24  § 8047.  Cancellation or termination of approval of electors.
    25  § 8048.  Limitation on use of proceeds of electoral debt.
    26  § 8049.  Manner of changing purpose of electoral debt.
    27  Chapter 81.  Incurring Debt and Issuing Bonds and Notes
    28     Subchapter A.  General Provisions
    29  § 8101.  Combining projects for financing or series of bonds or
    30             notes for sale.
    19950S0689B2340                 - 12 -

     1  § 8102.  Preliminary authorizations as to financing.
     2  § 8103.  Ordinance authorizing issuance of documents evidencing
     3             lease rental debt.
     4  § 8104.  Covenant to pay bonds or notes or a guaranty.
     5  § 8105.  Additional provisions in ordinance authorizing issuance
     6             of revenue or guaranteed revenue bonds or notes.
     7  § 8106.  Sinking fund depository and trustee for bondholders or
     8             noteholders.
     9  § 8107.  Award of bonds or notes.
    10  § 8108.  Bond anticipation notes.
    11  § 8109.  Small borrowing for capital purposes.
    12  § 8110.  Debt statement.
    13  § 8111.  Submission to department.
    14  § 8112.  Agreements with bondholders or noteholders.
    15  § 8113.  Lost, stolen, destroyed or mutilated bonds or notes.
    16  § 8114.  Evidence of signatures of holders and of ownership of
    17             bonds, notes and tax anticipation notes.
    18  § 8115.  Contractual effect of ordinances and resolutions.
    19  § 8116.  Unfunded actuarial accrued liability - condition
    20             precedent.
    21     Subchapter B.  Tax Anticipation Notes and Funding Debt
    22  § 8121.  Power to issue tax anticipation notes.
    23  § 8122.  Limitation on amount of tax anticipation notes.
    24  § 8123.  Maturity date and time of payment of interest.
    25  § 8124.  Other terms of tax anticipation notes.
    26  § 8125.  Security for tax anticipation notes and sinking fund.
    27  § 8126.  Certification as to taxes and revenues to be collected.
    28  § 8127.  Sale of tax anticipation notes.
    29  § 8128.  Condition precedent to validity of tax anticipation
    30                 notes.
    19950S0689B2340                 - 13 -

     1  § 8129.  Scope of unfunded debt.
     2  § 8130.  Approval by court to fund unfunded debt.
     3     Subchapter C.  Provisions of Bonds and Notes
     4  § 8141.  Form of bonds or notes.
     5  § 8142.  Limitations on stated maturity dates.
     6  § 8143.  Disposition of proceeds notwithstanding certain
     7             limitations.
     8  § 8144.  Number of interest rates.
     9  § 8145.  Place and medium of payment.
    10  § 8146.  Execution of bonds or notes.
    11  § 8147.  Pledge of revenues.
    12  § 8148.  Deeds of trust and other agreements with bondholders
    13             and noteholders.
    14  § 8149.  Negotiable qualities of bonds and notes.
    15  § 8150.  Temporary bonds or notes or interim receipts.
    16     Subchapter D.  Sale of Bonds and Notes
    17  § 8161.  Manner of sale of bonds or notes.
    18  § 8162.  Contents of public advertisement and of official notice
    19             of sale.
    20  § 8163.  Proposals for purchase.
    21  § 8164.  Opening of bids.
    22  § 8165.  Determination of highest and best bid.
    23  § 8166.  Required bid security.
    24  § 8167.  Reserved right to reject bids.
    25  § 8168.  Failure to receive conforming bid.
    26  § 8169.  Determination of net interest cost and net interest
    27             rate.
    28  Chapter 82.  Miscellaneous Provisions
    29     Subchapter A.  Department of Community Affairs
    30  § 8201.  Certification to department of bond or note transcript
    19950S0689B2340                 - 14 -

     1             or lease, guaranty, subsidy contract or other
     2             agreement.
     3  § 8202.  Filing of statements of noncompletion of sale with
     4             department.
     5  § 8203.  Fees for filing.
     6  § 8204.  Certificate of approval of transcript.
     7  § 8205.  Certificate of disapproval and correction of
     8             proceedings.
     9  § 8206.  Effect of failure of timely action by department.
    10  § 8207.  Records of department.
    11  § 8208.  Invalidity of instruments which are delivered without
    12             compliance with requirements or conditions precedent
    13             to issuance or delivery.
    14  § 8209.  Finality of proceedings as to validity of instruments.
    15  § 8210.  Power of department to define terms, issue rules and
    16             regulations and prescribe forms.
    17  § 8211.  Petitions for declaratory orders and complaints to
    18             department.
    19     Subchapter B.  Sinking Funds and Other Funds and Accounts
    20  § 8221.  Creation of sinking funds and deposits, reserves and
    21             surplus funds.
    22  § 8222.  Assessment fund.
    23  § 8223.  Duty of treasurer.
    24  § 8224.  Deposit and investment of moneys in sinking funds and
    25             other funds.
    26  § 8225.  Management of sinking and other funds.
    27  § 8226.  Inspection of sinking funds and orders to comply.
    28  § 8227.  Sinking fund not required for small borrowings.
    29     Subchapter C.  Refunding of Debt
    30  § 8241.  Power to refund.
    19950S0689B2340                 - 15 -

     1  § 8242.  Treatment of costs upon refunding.
     2  § 8243.  Limitation on extending term of debt by refunding.
     3  § 8244.  Effect of debt limits on refunding nonelectoral bonds
     4             or notes or lease rental debt.
     5  § 8245.  Refunding of electoral debt.
     6  § 8246.  Procedure for authorization, sale, issue and approval
     7             of refunding bonds or notes.
     8  § 8247.  Special limitation on refunding of funding debt.
     9  § 8248.  Approval of refunding by the electors.
    10  § 8249.  Refunding with bonds of another type.
    11  § 8250.  Use of proceeds of refunding bonds and when refunded
    12             bonds are no longer deemed outstanding.
    13  § 8251.  Cessation of interest on called bonds or notes.
    14     Subchapter D.  Remedies
    15  § 8261.  Failure to budget debt service.
    16  § 8262.  Failure to pay principal or interest.
    17  § 8263.  Trustee for bondholders.
    18  § 8264.  Receiver for revenue projects.
    19  § 8265.  Costs of suits or proceedings.
    20  § 8266.  Distribution of moneys realized for bondholders.
    21     Subchapter E.  Penalties
    22  § 8271.  Failure to obey sinking fund directive of department.
    23     The General Assembly of the Commonwealth of Pennsylvania
    24  hereby enacts as follows:
    25     Section 1.  Title 53 of the Pennsylvania Consolidated
    26  Statutes is amended by adding parts to read:
    27                              TITLE 53
    28                      MUNICIPALITIES GENERALLY
    29  Part
    30     I.  Preliminary Provisions
    19950S0689B2340                 - 16 -

     1    II.  Creation, Territory, Alteration and Dissolution
     2   III.  Government and Administration
     3     V.  Public Improvements, Utilities and Services
     4   VII.  Taxation and Fiscal Affairs
     5                               PART I
     6                       PRELIMINARY PROVISIONS
     7  Chapter
     8     1.  General Provisions
     9                             CHAPTER 1
    10                         GENERAL PROVISIONS
    11  Sec.
    12  101.  Short title of title.
    13  § 101.  Short title of title.
    14     This title shall be known and may be cited as the General
    15  Local Government Code.
    16                              PART II
    17          CREATION, TERRITORY, ALTERATION AND DISSOLUTION
    18  Chapter
    19     9.  Municipal Reapportionment
    20                             CHAPTER 9
    21                     MUNICIPAL REAPPORTIONMENT
    22  Sec.
    23  901.  Short title and scope of chapter.
    24  902.  Definitions.
    25  903.  Reapportionment by governing body.
    26  904.  Reapportionment by court upon petition.
    27  905.  Compensation of commissioners and payment of costs.
    28  906.  Contest of reapportionment by governing body.
    29  907.  Costs and expenses of contest.
    30  908.  Retention in office and new elections.
    19950S0689B2340                 - 17 -

     1  § 901.  Short title and scope of chapter.
     2     (a)  Short title of chapter.--This chapter shall be known and
     3  may be cited as the Municipal Reapportionment Act.
     4     (b)  Scope of chapter.--This chapter applies to the following
     5  entities:
     6         (1)  Municipalities.
     7         (2)  Units of government created and existing under
     8     Subpart E of Part III (relating to home rule and optional
     9     plan government).
    10         (3)  Similar general purpose units of local government
    11     created by statute.
    12  § 902. Definitions.
    13     The following words and phrases when used in this chapter
    14  shall have the meanings given to them in this section unless the
    15  context clearly indicates otherwise:
    16     "District."  Includes a ward whenever wards are used as a
    17  subdivision for the election of members of the governing body.
    18     "Governing body."  A board of county commissioners, city
    19  council, borough council, incorporated town council, board of
    20  township commissioners or board of township supervisors, the
    21  governing council of any unit of government created and existing
    22  under Subpart E of Part III (relating to home rule and optional
    23  plan government), or the governing council of any similar
    24  general purpose unit of government created by statute.
    25  § 903.  Reapportionment by governing body.
    26     (a)  General rule.--Within the year following that in which
    27  the Federal census, decennial or special, is officially and
    28  finally reported, and at such other times as the governing body
    29  deems necessary, each entity having a governing body not
    30  entirely elected at large shall be reapportioned into districts
    19950S0689B2340                 - 18 -

     1  by its governing body. The governing body shall number the
     2  districts.
     3     (b)  Composition of districts.--Districts shall be composed
     4  of compact and contiguous territory as nearly equal in
     5  population as practicable as officially and finally reported in
     6  the most recent Federal census, decennial or special.
     7  § 904.  Reapportionment by court upon petition.
     8     (a)  Petition.--If there has not been a reapportionment by
     9  the governing body within the year following that in which the
    10  Federal census, decennial or special, is officially and finally
    11  reported, a petition, signed by one or more electors who are
    12  residents of the entity, may be submitted to the court of common
    13  pleas which may then reapportion in accordance with this
    14  chapter.
    15     (b)  Appointment of commissioners.--Upon receiving the
    16  petition to reapportion, the court may appoint three impartial
    17  persons as commissioners.
    18     (c)  Report to court.--The commissioners appointed by the
    19  court or any two of them shall make a report to the court within
    20  the time the court directs and shall include with it a plot
    21  showing the boundaries of the present districts and a plot
    22  showing the districts as proposed by them, along with pertinent
    23  information relating to population and area of the proposed
    24  districts.
    25     (d)  Action on report.--Upon presentation, the court shall
    26  confirm the report nisi and shall direct that notice of the
    27  filing of the report shall be given by publication once in a
    28  newspaper of general circulation stating that exceptions may be
    29  filed to the report within 30 days after the report was filed.
    30  If no exceptions are filed or if the court dismisses the
    19950S0689B2340                 - 19 -

     1  exceptions, the court shall confirm the report absolutely and
     2  issue a decree. The court in its decree shall designate a number
     3  for each of the districts.
     4  § 905.  Compensation of commissioners and payment of costs.
     5     (a)  Compensation of commissioners.--The commissioners
     6  appointed by the court shall each receive compensation for their
     7  services as the court shall fix.
     8     (b)  Payment of costs and expenses.--All cost and expenses
     9  incurred in the proceedings to reapportion shall be paid by the
    10  entity.
    11  § 906.  Contest of reapportionment by governing body.
    12     (a)  General rule.--In the event there has been a
    13  reapportionment by the governing body pursuant to section 903(a)
    14  (relating to reapportionment by governing body) or 904 (relating
    15  to reapportionment by court upon petition), the reapportionment
    16  may be contested as not being in compliance with the criteria
    17  for reapportionment as set forth in section 903(b).
    18     (b)  Petition to court.--In order to contest a
    19  reapportionment, a petition signed by ten electors who are
    20  residents of the entity shall be submitted to the court of
    21  common pleas.
    22     (c)  Action on petition.--The court shall review the
    23  reapportionment plan and either accept the reapportionment plan
    24  and dismiss the petition or reject the reapportionment plan and
    25  return it to the local governing body for correction and
    26  resubmission to the court.
    27     (d)  Appointment of commissioners.--If the court sets the
    28  reapportionment aside, the court may appoint three impartial
    29  persons as commissioners.
    30     (e)  Report to court.--The commissioners appointed by the
    19950S0689B2340                 - 20 -

     1  court or any two of them shall make a report to the court within
     2  the time the court directs and shall include with it a plot
     3  showing the boundaries of the present districts and a plot
     4  showing the districts as proposed by them, along with pertinent
     5  information relating to population and area of the proposed
     6  districts.
     7     (f)  Action on report.--Upon presentation, the court shall
     8  confirm the report nisi and shall direct that notice of the
     9  filing of the report shall be given by publication once in a
    10  newspaper of general circulation stating that exceptions may be
    11  filed to the report within 30 days after the report was filed.
    12  If no exceptions are filed or if the court dismisses the
    13  exceptions, the court shall confirm the report absolutely and
    14  issue a decree. The court in its decree shall designate a number
    15  for each of the districts.
    16  § 907.  Costs and expenses of contest.
    17     (a)  General rule.--All cost and expenses incurred in a
    18  proceeding described in section 906 (relating to contest of
    19  reapportionment by governing body) challenging a reapportionment
    20  shall be paid by the entity or the petitioners as the court
    21  directs, but if the court reapportions the entity, the costs and
    22  expenses shall be paid by the entity.
    23     (b)  Bond to secure payment.--If a reapportionment is
    24  challenged by petition as described in section 906, the
    25  petitioners may be required to post a bond set by the court to
    26  secure the payment of costs and expenses.
    27  § 908.  Retention in office and new elections.
    28     (a)  Retention of existing members in office.--The members of
    29  the governing body in office at the time of the reapportionment
    30  shall retain their offices until the end of their respective
    19950S0689B2340                 - 21 -

     1  terms.
     2     (b)  Election of members following reapportionment.--The
     3  election of members of the governing body under the
     4  reapportionment shall be held in accordance with law relating to
     5  the entity and the act of June 3, 1937 (P.L.1333, No.320), known
     6  as the Pennsylvania Election Code.
     7                              PART III
     8                   GOVERNMENT AND ADMINISTRATION
     9  Subpart
    10     A.  General Provisions
    11     B.  Governing Body
    12     C.  Executive Departments, Officers and Employees
    13     D.  Area Government and Intergovernmental Cooperation
    14     E.  Home Rule and Optional Plan Government
    15                             SUBPART A
    16                         GENERAL PROVISIONS
    17  Chapter
    18    11.  General Provisions
    19                             CHAPTER 11
    20                         GENERAL PROVISIONS
    21  Subchapter
    22     A.  (Reserved)
    23     B.  Emergency Seat of Government
    24     C.  Emergency Succession of Officers
    25                      SUBCHAPTER A (RESERVED)
    26                            SUBCHAPTER B
    27                    EMERGENCY SEAT OF GOVERNMENT
    28  Sec.
    29  1121.  Scope of subchapter.
    30  1122.  Establishment and designation.
    19950S0689B2340                 - 22 -

     1  1123.  Exercise of powers and functions.
     2  1124.  Applicability of subchapter.
     3  § 1121.  Scope of subchapter.
     4     This subchapter applies to all political subdivisions.
     5  § 1122.  Establishment and designation.
     6     Whenever, due to an emergency resulting from the effects of
     7  enemy attack or the anticipated effects of a threatened enemy
     8  attack, it becomes imprudent, inexpedient or impossible to
     9  conduct the affairs of local government at the regular or usual
    10  place, the governing body of each political subdivision of this
    11  Commonwealth may meet at any place, within or without the
    12  territorial limits of the political subdivision. The meeting may
    13  be held on the call of the presiding officer or any two members
    14  of the governing body and shall proceed to establish and
    15  designate, by ordinance, resolution or other manner, alternate
    16  or substitute sites or places as the emergency temporary
    17  location or locations of government, where all or any part of
    18  the public business may be transacted and conducted during the
    19  emergency situation. These sites or places may be within or
    20  without the territorial limits of the political subdivision and
    21  may be within or without this Commonwealth.
    22  § 1123.  Exercise of powers and functions.
    23     During the period when the public business is being conducted
    24  at the emergency temporary location or locations, the governing
    25  body and other officers of a political subdivision of this
    26  Commonwealth shall exercise at the location or locations all of
    27  the executive, legislative and judicial powers and functions
    28  conferred upon the governing body and officers by law. These
    29  powers and functions may be exercised in the light of the
    30  exigencies of the emergency situation without regard to time
    19950S0689B2340                 - 23 -

     1  consuming procedures and formalities prescribed by law and
     2  pertaining to them, and all acts of the governing body and
     3  officers shall be as valid and binding as if performed within
     4  the territorial limits of their political subdivision.
     5  § 1124.  Applicability of subchapter.
     6     The provisions of this subchapter shall control, in the event
     7  it shall be employed, notwithstanding any statutory charter or
     8  ordinance provision to the contrary or in conflict with this
     9  subchapter.
    10                            SUBCHAPTER C
    11                  EMERGENCY SUCCESSION OF OFFICERS
    12  Sec.
    13  1131.  Scope of subchapter.
    14  1132.  Declaration of policy.
    15  1133.  Definitions.
    16  1134.  Enabling authority for emergency interim successors for
    17         local offices.
    18  1135.  Emergency interim successors for local officers.
    19  1136.  Formalities of taking office.
    20  1137.  Succession period.
    21  1138.  Term and removal of designees.
    22  § 1131.  Scope of subchapter.
    23     This subchapter applies to all municipalities.
    24  § 1132.  Declaration of policy.
    25     Because of the existing possibility of attack upon the United
    26  States of unprecedented size and destructiveness and in order,
    27  in the event of such an attack, to assure continuity of
    28  government through legally constituted authority and
    29  responsibility in offices of the municipalities of this
    30  Commonwealth, to provide for the effective operation of
    19950S0689B2340                 - 24 -

     1  government during an emergency and to facilitate the early
     2  resumption of functions temporarily suspended, it is found and
     3  declared to be necessary to provide for emergency interim
     4  succession to offices of the municipalities of this Commonwealth
     5  in the event the incumbents and their deputies authorized to
     6  exercise all of the powers and discharge the duties of these
     7  offices, referred to in this subchapter as deputies, are
     8  unavailable to exercise the powers and perform the duties of
     9  these offices.
    10  § 1133.  Definitions.
    11     The following words and phrases when used in this subchapter
    12  shall have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Attack."  Any attack on the United States which causes or
    15  may cause substantial damage or injury to civilian persons or
    16  property in any manner by sabotage or by the use of bombs,
    17  missiles, shellfire or by atomic, radiological, chemical,
    18  bacteriological or biological means or other weapons or
    19  processes.
    20     "Emergency interim successor."  A person designated, in the
    21  event the officer is unavailable, to exercise the powers and
    22  discharge the duties of an office until a successor is appointed
    23  or elected and qualified as may be provided by the Constitution
    24  of Pennsylvania, statutes, charters and ordinances or until the
    25  lawful incumbent is able to exercise the powers and discharge
    26  the duties of the office.
    27     "Office."  All local offices, the powers and duties of which
    28  are defined by the Constitution of Pennsylvania or a statute,
    29  charter or ordinance.
    30     "Unavailable."  When a vacancy in office exists and there is
    19950S0689B2340                 - 25 -

     1  no deputy authorized to exercise all of the powers and discharge
     2  the duties of the office or when the lawful incumbent of the
     3  office or any deputy exercising the powers and discharging the
     4  duties of an office because of a vacancy and his authorized
     5  deputy are absent or unable to exercise the powers and discharge
     6  the duties of the office.
     7  § 1134.  Enabling authority for emergency interim successors for
     8             local offices.
     9     With respect to local offices for which the legislative
    10  bodies of municipalities may enact resolutions or ordinances
    11  relative to the manner in which vacancies will be filled or
    12  temporary appointments to office made, the legislative bodies
    13  are authorized to enact resolutions or ordinances providing for
    14  emergency interim successors to offices. The resolutions and
    15  ordinances shall not be inconsistent with this subchapter.
    16  § 1135.  Emergency interim successors for local officers.
    17     This section is applicable to officers of municipalities not
    18  included in section 1134 (relating to enabling authority for
    19  emergency interim successors for local offices). Each officer,
    20  subject to any regulations as the executive head of the
    21  municipality may issue, shall designate by title, if feasible,
    22  or by named person, emergency interim successors and specify
    23  their order of succession. The officer shall review and revise,
    24  as necessary, designations made pursuant to this subchapter. The
    25  officer will designate a sufficient number of persons so that
    26  there will be not less than three deputies or emergency interim
    27  successors, or any combination of them. If any officer or deputy
    28  of any municipality is unavailable, the powers of the office
    29  shall be exercised and the duties discharged by his designated
    30  emergency interim successors in the order specified. The
    19950S0689B2340                 - 26 -

     1  emergency interim successors, in the order specified, shall
     2  exercise the powers and discharge the duties of the office to
     3  which designated until the vacancy is filled in accordance with
     4  the Constitution of Pennsylvania or statutes or until the
     5  officer, or his deputy or a preceding emergency interim
     6  successor, ceases to be unavailable.
     7  § 1136.  Formalities of taking office.
     8     Prior to taking up the duties to which they may temporarily
     9  succeed, emergency interim successors shall take an oath as may
    10  be required for the office to which they may succeed.
    11  § 1137.  Succession period.
    12     Emergency interim successors may exercise the powers and
    13  discharge the duties of an office as authorized in this
    14  subchapter only after an attack has occurred. The General
    15  Assembly, by concurrent resolution, may terminate the authority
    16  of the emergency interim successors to exercise the powers and
    17  discharge the duties of office as provided under this
    18  subchapter.
    19  § 1138.  Term and removal of designees.
    20     Until the persons designated as emergency interim successors
    21  are authorized to exercise the powers and discharge the duties
    22  of an office in accordance with this subchapter, including
    23  section 1137 (relating to succession period), these persons may
    24  be removed or replaced by the designating authority at any time,
    25  with or without cause.
    26                             SUBPART B
    27                           GOVERNING BODY
    28  Chapter
    29    13.  General Provisions
    30                             CHAPTER 13
    19950S0689B2340                 - 27 -

     1                         GENERAL PROVISIONS
     2  Subchapter
     3     A. through E.  (Reserved)
     4     F.  Records
     5                 SUBCHAPTERS A THROUGH E (RESERVED)
     6                            SUBCHAPTER F
     7                              RECORDS
     8  Sec.
     9  1381.  Short title and scope of subchapter.
    10  1382.  Definitions.
    11  1383.  Disposition of public records.
    12  1384.  Proposed retention and disposal schedules.
    13  1385.  Local Government Records Committee.
    14  1386.  Effect of approval of schedule.
    15  1387.  Nonliability of official.
    16  1388.  Destruction of original records.
    17  1389.  Applicability of other statutes.
    18  § 1381.  Short title and scope of subchapter.
    19     (a)  Short title of subchapter.--This subchapter shall be
    20  known and may be cited as the Municipal Records Act.
    21     (b)  Scope of subchapter.--This subchapter applies to the
    22  following entities:
    23         (1)  Municipal corporations.
    24         (2)  Municipal authorities created by any municipal
    25     corporation.
    26  This subchapter does not apply to cities of the first class,
    27  second class or second class A.
    28  § 1382.  Definitions.
    29     The following words and phrases when used in this subchapter
    30  shall have the meanings given to them in this section unless the
    19950S0689B2340                 - 28 -

     1  context clearly indicates otherwise:
     2     "Commission."  The Pennsylvania Historical and Museum
     3  Commission.
     4     "Committee."  The Local Government Records Committee.
     5     "Public records."  Any papers, books, maps, photographs or
     6  other documentary materials, regardless of physical form or
     7  characteristics, made or received by an entity under law or in
     8  connection with the exercise of its powers and the discharge of
     9  its duties.
    10  § 1383.  Disposition of public records.
    11     Public records, archives or printed public documents, whether
    12  or not in current use, in the custody of any person or office
    13  shall be destroyed, sold or otherwise disposed of if the
    14  disposition is in conformity with schedules and regulations
    15  which are promulgated by the committee as established by section
    16  1385 (relating to Local Government Records Committee).
    17  § 1384.  Proposed retention and disposal schedules.
    18     The commission, in cooperation with the several associations
    19  of municipal officials and related Commonwealth agencies, shall
    20  make a study of public records and shall prepare proposed
    21  retention and disposal schedules for submission to the committee
    22  for its approval and advise each of them of all applicable
    23  operative schedules. No such schedule shall be operative unless
    24  approved by the committee.
    25  § 1385.  Local Government Records Committee.
    26     (a)  Establishment.--There shall be established under the
    27  commission the Local Government Records Committee which shall
    28  consist of the Auditor General, the State Treasurer, the General
    29  Counsel, the Executive Director of the Historical and Museum
    30  Commission, the Secretary of Community Affairs and five other
    19950S0689B2340                 - 29 -

     1  members to be appointed by the Governor to represent each of the
     2  following municipal associations: the League of Cities, the
     3  State Association of Boroughs, the State Association of Township
     4  Commissioners, the State Association of Township Supervisors and
     5  the Municipal Authorities' Association. Each ex officio member
     6  of the committee may designate in writing a representative to
     7  act in place of the member. The Secretary of Community Affairs
     8  shall serve as chairman and the executive director of the
     9  commission shall serve as secretary. Meetings of the committee
    10  shall be at the call of the chairman.
    11     (b)  Powers and duties.--The committee shall have the powers
    12  and duties vested in and imposed upon it by this subchapter and
    13  shall promulgate regulations not inconsistent with law necessary
    14  to adequately effectuate its powers and duties.
    15  § 1386.  Effect of approval of schedule.
    16     Whenever a schedule is approved by the committee, a copy
    17  shall be filed with the commission which shall, through
    18  appropriate means, notify the entities that the schedule has
    19  been approved. Upon such notification, the schedule becomes
    20  effective and may be acted upon by them until superseded by a
    21  subsequent duly approved schedule. Each entity shall declare its
    22  intent to follow the schedule by ordinance or resolution. Each
    23  individual act of disposition shall be approved by resolution of
    24  the governing body.
    25  § 1387.  Nonliability of official.
    26     An official shall not be held liable on his official bond for
    27  damages for loss or in any other manner, civil or criminal,
    28  because of the disposition of public records pursuant to the
    29  provisions of this subchapter.
    30  § 1388.  Destruction of original records.
    19950S0689B2340                 - 30 -

     1     (a)  Destruction authorized.--Whenever any officer,
     2  commission or agency has photographed, microphotographed or
     3  microfilmed any public record with the approval of and in
     4  conformance with standards established by the committee, the
     5  original record may be destroyed, provided written consent is
     6  given to the destruction or other disposition.
     7     (b)  Evidence of records.--Upon destruction or other
     8  disposition of any public records under this section, the
     9  photograph, microphotograph or microfilm, or a certified copy
    10  thereof, shall be receivable in evidence in any court or
    11  proceeding and shall have the same force and effect as though
    12  the original public record had been produced and proved.
    13  § 1389.  Applicability of other statutes.
    14     This subchapter is intended as a supplement to existing
    15  statutes. The existing statutes which provide for destruction
    16  may be utilized by officials in lieu of compliance with this
    17  subchapter. Nothing in this subchapter shall prevent officials
    18  from retaining records longer than the periods which may be
    19  provided in schedules approved by the committee.
    20                             SUBPART C
    21           EXECUTIVE DEPARTMENTS, OFFICERS AND EMPLOYEES
    22  Chapter
    23    21.  Employees
    24                             CHAPTER 21
    25                             EMPLOYEES
    26  Subchapter
    27     A. through C.  (Reserved)
    28     D.  Municipal Police Education and Training
    29                 SUBCHAPTERS A THROUGH C (RESERVED)
    30                            SUBCHAPTER D
    19950S0689B2340                 - 31 -

     1              MUNICIPAL POLICE EDUCATION AND TRAINING
     2  Sec.
     3  2161.  Establishment of program and scope of subchapter.
     4  2162.  Definitions.
     5  2163.  Commission members.
     6  2164.  Powers and duties of commission.
     7  2165.  Meetings and quorum of commission.
     8  2166.  Applicability to civil service laws.
     9  2167.  Police training.
    10  2168.  Automatic certification.
    11  2169.  In-service training by existing personnel.
    12  2170.  Reimbursement of expenses.
    13  2171.  Payment of certain county costs.
    14  § 2161.  Establishment of program and scope of subchapter.
    15     (a)  Municipal police officers' education and training
    16  program.--The commission shall establish a municipal police
    17  officers' education and training program in accordance with the
    18  provisions of this subchapter. The administration of this
    19  program shall be the responsibility of the Pennsylvania State
    20  Police.
    21     (b)  Scope of subchapter.--This subchapter applies to all
    22  municipalities.
    23  § 2162.  Definitions.
    24     The following words and phrases when used in this subchapter
    25  shall have the meanings given to them in this section unless the
    26  context clearly indicates otherwise:
    27     "Certification."  The assignment of a certification number to
    28  a police officer after successful completion of a mandatory
    29  basic training course or receipt of a waiver of basic training
    30  from the commission and successful completion of mandatory in-
    19950S0689B2340                 - 32 -

     1  service training. Certification is for a period of two years.
     2     "College."  A college which has a campus police department,
     3  as used in section 2416 of the act of April 9, 1929 (P.L.177,
     4  No.175), known as The Administrative Code of 1929, certified by
     5  the Office of Attorney General as a criminal justice agency
     6  under the definition of "criminal justice agency" in 18 Pa.C.S.
     7  § 9102 (relating to definitions). The term does not include the
     8  State System of Higher Education and its members institutions.
     9     "Commission."  The Municipal Police Officers' Education and
    10  Training Commission.
    11     "Commissioner."  The Commissioner of the Pennsylvania State
    12  Police.
    13     "Police department."  Any of the following:
    14         (1)  A public agency of a political subdivision having
    15     general police powers and charged with making arrests in
    16     connection with the enforcement of the criminal or traffic
    17     laws. This paragraph does not include INCLUDES the sheriff's   <--
    18     office in a county of the second class.
    19         (2)  A campus police or university police department, as
    20     used in section 2416 of the act of April 9, 1929 (P.L.177,
    21     No.175), known as The Administrative Code of 1929, certified
    22     by the Office of Attorney General as a criminal justice
    23     agency under the definition of "criminal justice agency" in
    24     18 Pa.C.S. § 9102 (relating to definitions). This paragraph
    25     does not include a campus police or university police
    26     department of the State System of Higher Education and its
    27     member institutions.
    28     "Police officer."  Any full-time or part-time employee of a
    29  city, borough, town, township, campus police or university
    30  police or county police department assigned to criminal or
    19950S0689B2340                 - 33 -

     1  traffic law enforcement duties; any deputy sheriff of a county
     2  of the second class; and, for the purpose of training only,
     3  security officers of a first class city housing authority. The
     4  term excludes persons employed to check parking meters or to
     5  perform only administrative duties and auxiliary and fire
     6  police.
     7     "School."  A training school or academy which provides a
     8  basic police training course within the functional organization
     9  of a police department or departments or any educational
    10  facility in this Commonwealth.
    11     "University."  A university which has a campus police
    12  department, as used in section 2416 of the act of April 9, 1929
    13  (P.L.177, No.175), known as The Administrative Code of 1929,
    14  certified by the Office of Attorney General as a criminal
    15  justice agency under the definition of "criminal justice agency"
    16  in 18 Pa.C.S. § 9102 (relating to definitions). The term does
    17  not include the State System of Higher Education and its members
    18  institutions.
    19  § 2163.  Commission members.
    20     (a)  Selection.--The commission shall be composed of 20
    21  members as follows:
    22         (1)  The following members shall serve by virtue of their
    23     office:
    24             (i)  The Commissioner of the Pennsylvania State
    25         Police who shall serve as chairman of the commission.
    26             (ii)  The Secretary of Community Affairs.
    27             (iii)  The Attorney General.
    28             (iv)  The police commissioner of a city of the first
    29         class or his designee.
    30         (2)  The following members shall be appointed by the
    19950S0689B2340                 - 34 -

     1     President pro tempore of the Senate and the Speaker of the
     2     House of Representatives:
     3             (i)  A member of the Senate.
     4             (ii)  A member of the House of Representatives.
     5         (3)  The following members shall be appointed by the
     6     Governor.
     7             (i)  A borough official, a first class township
     8         official, a second class township official and a city
     9         official.
    10             (ii)  Four incumbent chiefs of police from the
    11         various municipalities of this Commonwealth, at least one
    12         to be a chief of a borough police department, at least
    13         one to be a chief of a township police department and at
    14         least one to be a chief of a city police department.
    15             (iii)  One Federal Bureau of Investigation special
    16         agent-in-charge.
    17             (iv)  One educator qualified in the field of law
    18         enforcement.
    19             (v)  One member representing the public at large.
    20             (vi)  Two noncommissioned police officers.
    21             (vii)  A director of one of the certified training
    22         schools.
    23     (b)  Terms of office.--All members of the commission
    24  appointed by the Governor shall serve for a period of three
    25  years. Any member of the commission, immediately upon
    26  termination of holding the position by virtue of which the
    27  member was eligible for membership or appointed as a member of
    28  the commission, shall cease to be a member of the commission.
    29     (c)  Vacancies.--A member appointed to fill a vacancy not
    30  created by the expiration of a term shall be appointed for the
    19950S0689B2340                 - 35 -

     1  unexpired term of the member whom he is to succeed in the same
     2  manner as the original appointment.
     3     (d)  Compensation and expenses.--The members of the
     4  commission shall serve without compensation but shall be
     5  reimbursed the necessary and actual expenses incurred in
     6  attending the meetings of the commission and in the performance
     7  of their duties under this subchapter.
     8     (e)  Removal from office.--Members of the commission may be
     9  removed by the Governor for cause after written notice from the
    10  Governor.
    11     (f)  Affiliation.--The designated public member may not at
    12  any time have been a police officer or have been affiliated with
    13  a police department or training school.
    14  § 2164.  Powers and duties of commission.
    15     The powers and duties of the commission shall be as follows:
    16         (1)  To establish and administer the minimum courses of
    17     study for basic and in-service training for police officers
    18     and to revoke an officer's certification when an officer
    19     fails to comply with the basic and in-service training
    20     requirements or is convicted of a criminal offense or the
    21     commission determines that the officer is physically or
    22     mentally unfit to perform the duties of his office.
    23         (2)  To approve or revoke the approval of any school
    24     which may be utilized to comply with the educational and
    25     training requirements as established by the commission.
    26         (3)  To establish the minimum qualifications for
    27     instructors, to approve or revoke the approval of any
    28     instructor and to develop the requirements for continued
    29     certification.
    30         (4)  To promote the most efficient and economical program
    19950S0689B2340                 - 36 -

     1     for police training by utilizing existing facilities,
     2     programs and qualified Federal, State and local police
     3     personnel.
     4         (5)  To make an annual report to the Governor and to the
     5     General Assembly concerning the administration of the
     6     Municipal Police Officers' Education and Training Program and
     7     the activities of the commission, together with
     8     recommendations for executive or legislative action necessary
     9     for the improvement of law enforcement and the administration
    10     of justice.
    11         (6)  To require every police officer to attend a minimum
    12     number of hours of in-service training as provided for by
    13     regulation, unless the officer's employer files a show cause
    14     document with the commission requesting additional time for
    15     the officer to comply with the in-service training
    16     requirements. Approval of this request shall be made by the
    17     commission on a case-by-case basis.
    18         (7)  To require all police officers to undergo a
    19     background investigation to determine the individual's
    20     suitability for employment as a police officer. This
    21     investigation shall be completed prior to the employment of
    22     the officer and shall include a criminal history check, a
    23     credit check, personal interviews and any other applicable
    24     means of determining eligibility. An applicant who has been
    25     convicted of a felony or serious misdemeanor shall not be
    26     eligible for employment as a police officer.
    27         (8)  To require minimum standards for physical fitness,
    28     psychological evaluation and education as prerequisites to
    29     employment as a police officer.
    30         (9)  To appoint an executive director to administer the
    19950S0689B2340                 - 37 -

     1     training program established by this subchapter. The position
     2     of executive director shall be filled by the commission which
     3     shall select the best qualified person from a list of three
     4     persons nominated by the chairman. The person who receives a
     5     simple majority of those members present and voting shall
     6     become the executive director. If the commission rejects all
     7     nominees, then the process shall be repeated until a person
     8     is selected. The executive director shall be directly
     9     responsible to the commission and may be dismissed only by
    10     two-thirds vote of the commission. The executive director
    11     shall employ a sufficient staff, including professional,
    12     administrative and clerical personnel, to perform the tasks
    13     of the office, including the preparation of an annual budget.
    14         (10)  To consult and cooperate with universities,
    15     colleges, community colleges and institutes for the
    16     development of specialized courses for police officers.
    17         (11)  To consult and cooperate with departments and
    18     agencies of this Commonwealth and other states and the
    19     Federal Government concerned with police training.
    20         (12)  To certify police officers who have satisfactorily
    21     completed basic educational and training requirements as
    22     established by the commission and to issue appropriate
    23     certificates to those police officers.
    24         (13)  To visit and inspect approved schools at least once
    25     a year.
    26         (14)  To make such rules and regulations and to perform
    27     such other duties as may be reasonably necessary or
    28     appropriate to implement the education and training program
    29     for police officers.
    30         (15)  To grant waivers of mandatory basic training to
    19950S0689B2340                 - 38 -

     1     police officers who have successfully completed previous
     2     equivalent training or who have acceptable full-time police
     3     experience, or both.
     4  § 2165.  Meetings and quorum of commission.
     5     The commission shall meet at least four times each year.
     6  Special meetings may be called by the chairman of the commission
     7  or upon written request of five members. A quorum shall consist
     8  of 11 members.
     9  § 2166.  Applicability to civil service laws.
    10     This subchapter shall not be construed to exempt any police
    11  officer or other officer or employee from the provisions of the
    12  existing civil service or tenure laws.
    13  § 2167.  Police training.
    14     (a)  General rule.--All municipalities of this Commonwealth
    15  or groups of municipalities acting in concert and all colleges
    16  and universities shall be required to train all members of their
    17  police departments pursuant to this subchapter prior to their
    18  enforcing criminal laws, enforcing moving traffic violations
    19  under Title 75 (relating to vehicles) or being authorized to
    20  carry a firearm.
    21     (b)  Ineligibility for compensation.--Any person hired as a
    22  police officer by any municipality or group of municipalities
    23  acting in concert or by any college or university shall be
    24  ineligible to receive any salary, compensation or other
    25  consideration for the performance of duties as a police officer
    26  unless the person has met all of the requirements as established
    27  by the commission and has been duly certified as having met
    28  those requirements by the commission.
    29     (c)  Penalty.--Any official of any municipality or of any
    30  college or university who orders, authorizes or pays as salary
    19950S0689B2340                 - 39 -

     1  to a person in violation of the provisions of this subchapter
     2  commits a summary offense and shall, upon conviction, be
     3  sentenced to pay a fine of $100 or be imprisoned for a term not
     4  to exceed a period of 30 days. The commission may stop payment
     5  of all funds paid or payable to municipalities under this
     6  subchapter for any violation of this subchapter. It shall notify
     7  the State Treasurer to discontinue disbursement of any State
     8  funds until a municipality is in compliance with this
     9  subchapter.
    10  § 2168.  Automatic certification.
    11     (a)  General rule.--All police officers, including deputy
    12  sheriffs in counties of the second class, hired prior to June
    13  18, 1974, shall be automatically certified for basic training
    14  but shall be required to complete the in-service training as set
    15  forth in section 2164(7) (relating to powers and duties of
    16  commission).
    17     (b)  Campus or university police.--Any campus or university
    18  police officer who, as of the effective date of this subsection,
    19  has successfully completed a basic training course similar to
    20  that required under this subchapter shall, after review by the
    21  commission, be certified as having met the basic training
    22  requirements of this subchapter. Any campus or university police
    23  officer who, as of the effective date of this subsection, has
    24  not successfully completed a basic training course similar to
    25  that required under this subchapter which qualifies the police
    26  officer for certification under this subsection shall be able to
    27  perform the duties of a campus or university police officer
    28  until certified by the commission, but no longer than one year
    29  from the effective date of this subsection.
    30     (c)  Deputy sheriffs in counties of the second class.--Deputy
    19950S0689B2340                 - 40 -

     1  sheriffs in counties of the second class who have successfully
     2  completed the basic training course under this subchapter prior
     3  to the effective date of this subsection shall be assigned a
     4  certification number under this subchapter.
     5  § 2169.  In-service training by existing personnel.
     6     The requirements of section 2164(7) (relating to powers and
     7  duties of commission) shall apply to every police officer.
     8  § 2170.  Reimbursement of expenses.
     9     (a)  General rule.--The commission shall provide for
    10  reimbursement to each municipality of the entire amount of the
    11  allowable tuition and the ordinary and necessary living and
    12  travel expenses incurred by their police officers while
    13  attending certified municipal police basic training schools if
    14  the municipality adheres to the training standards established
    15  by the commission. The regular salary of police officers while
    16  attending approved schools shall be paid by the employing
    17  municipality. The commission shall reimburse the employing
    18  municipality for 60% of the regular salaries of police officers
    19  while attending schools approved under this subchapter. The
    20  commission shall require written documentation of all expenses
    21  incurred by municipalities relating to the training of municipal
    22  police officers for the purposes of reimbursement by the
    23  commission. All municipalities shall annually audit these funds
    24  as part of their annual audit and submit a copy of the audit to
    25  the commission. Failure to perform the audit and submit a copy
    26  of it to the commission shall render the municipality in
    27  violation of this subchapter.
    28     (b)  Grants for training other police.--The commission may
    29  approve in-service training grants for actual expenses incurred
    30  by municipalities for the providing for nonmandatory training
    19950S0689B2340                 - 41 -

     1  programs to police officers in accordance with this subchapter.
     2     (c)  Application for funding.--All municipalities of this
     3  Commonwealth or groups of municipalities acting in concert may
     4  make application to the commission for funding pursuant to the
     5  provisions of this subchapter. The application shall be
     6  accompanied by a certified copy of a resolution adopted by its
     7  governing body. The resolution shall provide that, while
     8  receiving any State funds pursuant to this subchapter, the
     9  municipality agrees to adhere to the standards for training
    10  established by the commission. The application shall contain any
    11  information that the commission requests.
    12     (d)  Subsequent employment with another municipality.--If a
    13  police officer, within two years following certification,
    14  terminates his employment with the municipality by which the
    15  officer was employed at the time he was certified as having met
    16  the commission's requirement and subsequently obtains employment
    17  as a police officer with another municipality, the municipality   <--
    18  which employs the previously certified police officer shall
    19  reimburse the municipality which formerly employed the police
    20  officer for the nonreimbursable portion of the salary paid to
    21  the police officer while complying with the provisions of this
    22  subchapter.
    23     (e)  Payment of mandatory in-service training.--The
    24  commission may pay for the cost of mandatory in-service training
    25  for all police officers to the extent determined by the
    26  commission. However, a college or university shall not be
    27  eligible for reimbursement of any expense under this section
    28  incurred during campus or university police officer training.
    29  Section 2171.  Payment of certain county costs.
    30     Counties of the second class shall be liable for costs
    19950S0689B2340                 - 42 -

     1  incurred for the certification of deputy sheriffs. The costs
     2  shall not exceed the sum per police officer assessed against
     3  municipalities.
     4                             SUBPART D
     5         AREA GOVERNMENT AND INTERGOVERNMENTAL COOPERATION
     6  Chapter
     7    23.  General Provisions
     8    25.  Environmental Improvement Compacts
     9                             CHAPTER 23
    10                         GENERAL PROVISIONS
    11  Subchapter
    12     A.  Intergovernmental Cooperation
    13     B.  Environmental Advisory Councils
    14     C.  Regional Planning
    15                            SUBCHAPTER A
    16                   INTERGOVERNMENTAL COOPERATION
    17  Sec.
    18  2301.  Scope of subchapter.
    19  2302.  Definitions.
    20  2303.  Intergovernmental cooperation authorized.
    21  2304.  Intergovernmental cooperation.
    22  2305.  Ordinance.
    23  2306.  Initiative and referendum.
    24  2307.  Content of ordinance.
    25  2308.  Bids for certain joint purchases.
    26  2309.  Direct purchases.
    27  2310.  Joint purchases with private educational
    28         establishments.
    29  2311.  Written or telephonic price quotations required.
    30  2312.  Division of transactions provided.
    19950S0689B2340                 - 43 -

     1  2313.  Penalty.
     2  2314.  Review of agreement by Local Government Commission.
     3  2315.  Effect of joint cooperation agreements.
     4  § 2301.  Scope of subchapter.
     5     This subchapter applies to all local governments.
     6  § 2302.  Definitions.
     7     The following words and phrases when used in this subchapter
     8  shall have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Local government."  A county, city of the second class,
    11  second class A and third class, borough, incorporated town,
    12  township, school district or any other similar general purpose
    13  unit of government created by the General Assembly after July
    14  12, 1972.
    15  § 2303.  Intergovernmental cooperation authorized.
    16     (a)  General rule.--Two or more local governments in this
    17  Commonwealth may jointly cooperate, or any local government may
    18  jointly cooperate with any similar entities located in any other
    19  state, in the exercise or in the performance of their respective
    20  governmental functions, powers or responsibilities.
    21     (b)  Joint agreements.--For the purpose of carrying the
    22  provisions of this subchapter into effect, the local governments
    23  or other entities so cooperating shall enter into any joint
    24  agreements as may be deemed appropriate for those purposes.
    25  § 2304.  Intergovernmental cooperation.
    26     A municipality by act of its governing body may, or upon
    27  being required by initiative and referendum in the area affected
    28  shall, cooperate or agree in the exercise of any function, power
    29  or responsibility with, or delegate or transfer any function,
    30  power or responsibility to, one or more other local governments,
    19950S0689B2340                 - 44 -

     1  the Federal Government or any other state or its government.
     2  § 2305.  Ordinance.
     3     A local government may enter into intergovernmental
     4  cooperation with or delegate any functions, powers or
     5  responsibilities to another governmental unit or local
     6  government upon the passage of an ordinance by its governing
     7  body. If mandated by initiative and referendum in the area
     8  affected, the local government shall adopt such an ordinance.
     9  § 2306.  Initiative and referendum.
    10     (a)  Initiative.--An initiative under this subchapter shall
    11  be commenced by filing with the appropriate election officials
    12  at least 90 days prior to the next primary or general election a
    13  petition containing a proposal for referendum signed by electors
    14  comprising 5% of the number of electors voting for the office of
    15  Governor in the last gubernatorial election in each local
    16  government or area affected. The applicable election officials
    17  shall place the proposal on the ballot in a manner fairly
    18  representing the content of the petition for decision by
    19  referendum at the election. Initiative on a similar question
    20  shall not be submitted more often than once in five years.
    21     (b)  Referendum.--The question shall be placed on the ballot
    22  as a referendum and shall become effective by a majority vote of
    23  the electors voting thereon.
    24  § 2307.  Content of ordinance.
    25     The ordinance adopted by the governing body of a local
    26  government entering into intergovernmental cooperation or
    27  delegating or transferring any functions, powers or
    28  responsibilities to another local government or to a council of
    29  governments, consortium or any other similar entity shall
    30  specify:
    19950S0689B2340                 - 45 -

     1         (1)  The conditions of agreement in the case of
     2     cooperation with or delegation to other local governments,
     3     the Commonwealth, other states or the Federal Government.
     4         (2)  The duration of the term of the agreement.
     5         (3)  The purpose and objectives of the agreement,
     6     including the powers and scope of authority delegated in the
     7     agreement.
     8         (4)  The manner and extent of financing the agreement.
     9         (5)  The organizational structure necessary to implement
    10     the agreement.
    11         (6)  The manner in which real or personal property shall
    12     be acquired, managed, licensed or disposed of.
    13         (7)  That the entity created under this section shall be
    14     empowered to enter into contracts for policies of group
    15     insurance and employee benefits, including Social Security,
    16     for its employees.
    17  § 2308.  Bids for certain joint purchases.
    18     All joint purchases involving an expenditure of more than
    19  $10,000 shall be made by contract, in writing, only after notice
    20  for bids once a week for two weeks in at least one and not more
    21  than two newspapers of general circulation in the joining local
    22  governments. All contracts shall be let to the lowest
    23  responsible bidder. Every contract for the construction,
    24  reconstruction, alteration, repair, improvement or maintenance
    25  of public works shall comply with the provisions of the act of
    26  March 3, 1978 (P.L.6, No.3), known as the Steel Products
    27  Procurement Act.
    28  § 2309.  Direct purchases.
    29     In addition to joint purchases authorized by section 2308
    30  (relating to bids for certain joint purchases), local
    19950S0689B2340                 - 46 -

     1  governments may make direct purchases from vendors or suppliers
     2  of goods, materials or equipment without compliance with
     3  existing and otherwise applicable statutory requirements
     4  governing competitive bidding and execution of contracts as
     5  follows:
     6         (1)  Any county may by appropriate resolution, and
     7     subject to such reasonable regulations as it may prescribe,
     8     permit any local government within the county to participate
     9     in or purchase off contracts for goods, materials or
    10     equipment entered into by the county.
    11         (2)  Any local government desiring to participate in
    12     purchase contracts shall file with the county purchasing
    13     agency and with the county solicitor a certified copy of an
    14     ordinance or resolution of its governing body requesting that
    15     it be authorized to participate in purchase contracts of the
    16     county and agreeing that it will be bound by the terms and
    17     conditions as the county prescribes and that it will be
    18     responsible for payment directly to the vendor under each
    19     purchase contract.
    20         (3)  The county may permit participation by local
    21     governments only where the solicitation for bids and
    22     specifications for the county contracts, and the contracts
    23     themselves, expressly provide for and inform prospective and
    24     successful bidders that the contract to be let is intended to
    25     be subject to this subchapter and to regulations adopted by
    26     the county.
    27         (4)  Among the terms and conditions as the county may
    28     specify, it shall prescribe that all prices shall be F.O.B.
    29     destination.
    30  § 2310.  Joint purchases with private educational
    19950S0689B2340                 - 47 -

     1             establishments.
     2     Any local government may, by ordinance, authorize joint
     3  purchases of materials, supplies and equipment with any private
     4  school, parochial school, private college or university or
     5  nonprofit human services agency within the local government. The
     6  ordinance shall require that the school, college or agency shall
     7  be bound by the terms and conditions of purchasing agreements
     8  which the local government prescribes and that the school,
     9  college or agency shall be responsible for payment directly to
    10  the vendor under each purchase contract. Schools, colleges and
    11  agencies shall be exempt from any existing statutory
    12  requirements governing competitive bidding and execution of
    13  contracts with respect to purchases under this section.
    14  § 2311.  Written or telephonic price quotations required.
    15     Written or telephonic price quotations from at least three
    16  qualified and responsible contractors shall be requested for all
    17  contracts that exceed $4,000 but are less than the amount
    18  requiring advertisement and competitive bidding or, in lieu of
    19  price quotations, a memorandum shall be kept on file showing
    20  that fewer than three qualified contractors exist in the market
    21  area within which it is practicable to obtain quotations. A
    22  written record of telephonic price quotations shall be made and
    23  shall contain at least the date of the quotation, the name of
    24  the contractor and the contractor's representative, the
    25  construction, reconstruction, repair, maintenance or work which
    26  was the subject of the quotation and the price, written price
    27  quotations, written records of telephonic price quotations and
    28  memoranda shall be retained for a period of three years.
    29  § 2312.  Division of transactions provided.
    30     No local government shall evade the provisions of section
    19950S0689B2340                 - 48 -

     1  2308 (relating to bids for certain joint purchases) as to
     2  advertising for bids or purchasing materials or contracting for
     3  services piece-meal, for the purpose of obtaining prices under
     4  $10,000 upon transactions which should in the exercise of
     5  reasonable discretion and prudence be conducted as one
     6  transaction amounting to more than $10,000. This provision is
     7  intended to make unlawful the practice of evading advertising
     8  requirements by making a series of purchases or contracts each
     9  for less than the advertising requirement price, or by making
    10  several simultaneous purchases or contracts each below such
    11  price, when in either case the transaction involved should have
    12  been made as one transaction for one price.
    13  § 2313.  Penalty.
    14     Any member of a governing body of a local government who
    15  votes to unlawfully evade the provisions of section 2308
    16  (relating to bids for certain joint purchases) and who knows
    17  that the transaction upon which he so votes is or ought to be a
    18  part of a larger transaction and that it is being divided in
    19  order to evade the requirements as to advertising for bids,
    20  commits a misdemeanor of the third degree for each contract
    21  entered into as a direct result of that vote.
    22  § 2314.  Review of agreement by Local Government Commission.
    23     Every agreement between a local government and the
    24  Commonwealth, any other state, government of another state or
    25  the Federal Government under the provisions of this subchapter
    26  shall, prior to and as a condition precedent to enactment of an
    27  ordinance, be submitted to the Local Government Commission for
    28  review and recommendation. The commission shall within 60 days
    29  of receipt of the agreement determine whether it is in proper
    30  form and compatible with the laws of this Commonwealth. Failure
    19950S0689B2340                 - 49 -

     1  of the commission to make recommendations within 60 days of
     2  receipt of the agreement shall constitute a recommendation in
     3  favor of the agreement.
     4  § 2315.  Effect of joint cooperation agreements.
     5     Any joint cooperation agreement shall be deemed in force as
     6  to any local government when the agreement has been adopted by
     7  ordinance by all cooperating local governments. After adoption
     8  by all cooperating local governments, the agreement shall be
     9  binding upon the local government, and its covenants may be
    10  enforced by appropriate remedy by any one or more of the local
    11  governments against any other local government which is a party
    12  to the agreement.
    13                            SUBCHAPTER B
    14                  ENVIRONMENTAL ADVISORY COUNCILS
    15  Sec.
    16  2321.  Scope of subchapter.
    17  2322.  Establishment of Environmental Advisory Council.
    18  2323.  Composition and organization of council.
    19  2324.  Powers and duties of council.
    20  2325.  Records and reports.
    21  2326.  Appropriations for expenses of council.
    22  2327.  Status of existing agencies unaffected.
    23  2328.  Assistance from Department of Environmental Resources.
    24  2329.  Assistance from Department of Community Affairs.
    25  § 2321.  Scope of subchapter.
    26     This subchapter applies to all municipal corporations.
    27  § 2322.  Establishment of Environmental Advisory Council.
    28     The governing body of any municipal corporation, or group of
    29  two or more municipal corporations, may by ordinance establish
    30  an environmental advisory council to advise other local
    19950S0689B2340                 - 50 -

     1  governmental agencies, including, but not limited to, the
     2  planning commission, park and recreation boards and elected
     3  officials, on matters dealing with protection, conservation,
     4  management, promotion and use of natural resources, including
     5  air, land and water resources, located within its or their
     6  territorial limits.
     7  § 2323.  Composition and organization of council.
     8     (a)  Composition.--An environmental advisory council shall be
     9  composed of no less than three nor more than seven residents of
    10  the municipal corporation establishing the council, who shall be
    11  appointed and all vacancies filled by the governing body. Where
    12  two or more municipal corporations jointly establish an
    13  environmental advisory council, the members shall be appointed
    14  in the same manner by each of the respective municipal
    15  corporations establishing the council, each constituent
    16  municipal corporation to have equal membership on the joint
    17  council.
    18     (b)  Term of office.--Council members shall serve for three
    19  years except that initial appointments shall be so staggered
    20  that the terms of approximately one-third of the membership
    21  shall expire each year, the terms of their successors to be of
    22  three years each.
    23     (c)  Compensation and expenses.--Members shall receive no
    24  compensation for their services, but shall be reimbursed for the
    25  expenses actually and necessarily incurred by them in the
    26  performance of their duties.
    27     (d)  Chairman.--The appointing authority shall designate the
    28  chairman of the council except that in joint councils the
    29  chairman shall be elected by the duly selected members. Whenever
    30  possible, one member shall also be a member of the municipal
    19950S0689B2340                 - 51 -

     1  planning board.
     2  § 2324.  Powers and duties of council.
     3     (a)  General rule.--An environmental advisory council shall
     4  have the power to:
     5         (1)  Identify environmental problems and recommend plans
     6     and programs to the appropriate agencies for the promotion
     7     and conservation of the natural resources and for the
     8     protection and improvement of the quality of the environment
     9     within its territorial limits.
    10         (2)  Make recommendations as to the possible use of open
    11     land areas of the municipal corporations within its
    12     territorial limits.
    13         (3)  Promote a community environmental program.
    14         (4)  Keep an index of all open areas, publicly or
    15     privately owned, including flood-prone areas, swamps and
    16     other unique natural areas, for the purpose of obtaining
    17     information on the proper use of those areas.
    18         (5)  Advise the appropriate local government agencies,
    19     including the planning commission and recreation and park
    20     board or, if none, the elected governing body or bodies
    21     within its territorial limits, in the acquisition of both
    22     real and personal property by gift, purchase, grant, bequest,
    23     easement, devise or lease, in matters dealing with the
    24     purposes of this subchapter.
    25     (b)  Limitation.--An environmental advisory council shall not
    26  exercise any powers or perform any duties which by law are
    27  conferred or imposed upon a Commonwealth agency.
    28  § 2325.  Records and reports.
    29     An environmental advisory council shall keep records of its
    30  meetings and activities and shall make an annual report which
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     1  shall be printed in the annual report of the municipal
     2  corporation or, if none, otherwise made known and available.
     3  § 2326.  Appropriations for expenses of council.
     4     The governing body of any municipal corporation establishing
     5  an environmental advisory council may appropriate funds for the
     6  expenses incurred by the council. Appropriations may be expended
     7  for those administrative, clerical, printing and legal services
     8  as may be required and as shall be within the limit of funds
     9  appropriated to the council. The whole or any part of any funds
    10  so appropriated in any year may be placed in a conservation fund
    11  and allowed to accumulate from year to year or may be expended
    12  in any year.
    13  § 2327.  Status of existing agencies unaffected.
    14     This subchapter shall not be construed to require a municipal
    15  corporation to abolish an existing commission with a related
    16  responsibility or to prevent its establishment.
    17  § 2328.  Assistance from Department of Environmental Resources.
    18     The State Conservation Commission in the Department of
    19  Environmental Resources shall establish a program of assistance
    20  to environmental advisory councils that may include educational
    21  services, exchange of information, assignment of technical
    22  personnel for natural resources planning assistance and the
    23  coordination of State and local conservation activities.
    24  § 2329.  Assistance from Department of Community Affairs.
    25     The Department of Community Affairs shall establish a program
    26  of assistance to environmental advisory councils in planning for
    27  the management, use and development of open space and recreation
    28  areas.
    29                            SUBCHAPTER C
    30                         REGIONAL PLANNING
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     1  Sec.
     2  2341.  Short title and scope of subchapter.
     3  2342.  Definitions.
     4  2343.  Declaration of policy.
     5  2344.  Establishment and organization of regional planning
     6         commission.
     7  2345.  Finances, staff and program.
     8  2346.  Commission to prepare master plan.
     9  2347.  Cooperation between commission, municipalities and
    10         others.
    11  2348.  Interstate participation.
    12  § 2341.  Short title and scope of subchapter.
    13     (a)  Short title of subchapter.--This subchapter shall be
    14  known and may be cited as the Regional Planning Law.
    15     (b)  Scope of subchapter.--This subchapter applies to all
    16  municipalities; but it shall not operate as a reenactment of any
    17  provisions repealed by section 1202 of the act of July 31, 1968
    18  (P.L.805, No.247), known as the Pennsylvania Municipalities
    19  Planning Code.
    20  § 2342.  Definitions.
    21     The following words and phrases when used in this subchapter
    22  shall have the meanings given to them in this section unless the
    23  context clearly indicates otherwise:
    24     "Commission."  A regional planning commission created in
    25  accordance with the terms of this subchapter.
    26     "Governing body."  The body or board authorized by law to
    27  enact ordinances or adopt resolutions for the municipality.
    28     "Region."  An area comprised of two or more municipalities
    29  which have joined in creating a regional planning commission.
    30  § 2343.  Declaration of policy.
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     1     For the purpose of promoting health, safety, morals and the
     2  general welfare of the regions in this Commonwealth, through
     3  effective development, the powers set forth in this subchapter
     4  for the establishment of regional planning commissions are
     5  granted.
     6  § 2344.  Establishment and organization of regional planning
     7             commission.
     8     (a)  General rule.--The governing body of two or more
     9  municipalities may, by ordinance or resolution, authorize the
    10  establishment or membership in and support of a regional
    11  planning commission. The number and qualifications of the
    12  members of any commission and their terms and method of
    13  appointment or removal shall be determined and agreed upon by
    14  the governing bodies. A majority of the members of the
    15  commission shall at the time of appointment to the commission
    16  and throughout the duration of their service on the commission
    17  be locally elected officials. Members of the commission shall
    18  serve without salary but may be paid expenses incurred in the
    19  performance of their duties. The commission shall elect a
    20  chairman whose term shall not exceed one year and who shall be
    21  eligible for reelection. The commission may create and fill
    22  other offices as it may determine.
    23     (b)  Rules and records.--The commission shall adopt rules for
    24  the transaction of business and shall keep a record of its
    25  resolutions, transactions, findings and determinations, which
    26  shall be a public record.
    27     (c)  Assistance from municipality.--Any municipality may,
    28  upon the request of the commission, assign or detail to the
    29  commission any employees of a municipality to make special
    30  surveys or studies requested by the commission.
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     1  § 2345.  Finances, staff and program.
     2     (a)  General rule.--The governing bodies of municipalities
     3  may appropriate funds for the purpose of contributing to the
     4  operation of the commission. The commission may, with the
     5  consent of all the governing bodies, also receive grants from
     6  the Federal or State governments or from individuals or
     7  foundations, and shall have the authority to contract therewith.
     8  The commission may appoint such employees and staff as it deems
     9  necessary for its work and contract with planners and other
    10  consultants for the services it may require. The commission may
    11  also perform planning services for any municipality which is not
    12  a member thereof and may charge fees for the work. The
    13  commission may also prepare and sell maps, reports, bulletins or
    14  other material and establish reasonable charges therefor.
    15     (b)  Planning assistance.--The commission may provide
    16  planning assistance and do planning work, including surveys,
    17  land use studies, urban renewal plans, technical services and
    18  other elements of comprehensive planning programs, for any
    19  municipalities within the region. For this purpose, the
    20  commission may, with the consent of all the governing bodies,
    21  accept any funds, personnel or other assistance made available
    22  by the Federal or State government or from individuals or
    23  foundations and, for the purposes of receiving and using Federal
    24  or State planning grants for provision of urban planning
    25  assistance, the commission may enter into contracts regarding
    26  the acceptance or use of the funds or assistance.
    27  § 2346.  Commission to prepare master plan.
    28     The commission shall prepare a master plan, and the surveys
    29  and studies essential thereto, for the guidance of the physical
    30  development of the region.
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     1  § 2347.  Cooperation between commission, municipalities and
     2             others.
     3     The commission shall encourage the cooperation of the
     4  municipalities within the region in matters which concern the
     5  integrity of the master plan or maps prepared by the commission
     6  and, as an aid toward coordination, all municipalities and
     7  public officials shall, upon request, furnish the commission
     8  within a reasonable time the available maps, plans, reports and
     9  statistical or other information it may require for its work.
    10  § 2348.  Interstate participation.
    11     Whenever a regional planning commission has been or is being
    12  established to serve the Pennsylvania portion of an area which,
    13  for planning purposes, constitutes a logical region as approved
    14  by the State Planning Board and which extends beyond the
    15  boundaries of this Commonwealth, the commission may admit to
    16  membership municipalities that are part of the same region but
    17  located in other states. Municipalities may participate, through
    18  membership and financial support, in commissions that have been
    19  or are being established in other states when the municipalities
    20  are part of the same region served by the out-of-State
    21  commission.
    22                             CHAPTER 25
    23                 ENVIRONMENTAL IMPROVEMENT COMPACTS
    24  Subchapter
    25     A.  Preliminary Provisions
    26     B.  Initiative
    27     C.  Municipal Referendum Ordinance
    28     D.  Referendum
    29     E.  Election of Board
    30     F.  Organization of Board
    19950S0689B2340                 - 57 -

     1                            SUBCHAPTER A
     2                       PRELIMINARY PROVISIONS
     3  Sec.
     4  2501.  Short title and scope of chapter.
     5  2502.  Definitions.
     6  § 2501.  Short title and scope of chapter.
     7     (a)  Short title of chapter.--This chapter shall be known and
     8  may be cited as the Environmental Improvement Compact Act.
     9     (b)  Scope of chapter.--This chapter applies to all
    10  municipalities.
    11  § 2502.  Definitions.
    12     The following words and phrases when used in this chapter
    13  shall have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Board."  The Environmental Improvement Compact Board elected
    16  under this chapter.
    17     "Election officials."  The county boards of election, except
    18  in Philadelphia where the term means the city commissioners.
    19     "Electors."  The registered voters of any municipality
    20  involved in proceedings relating to the environmental
    21  improvement compact.
    22     "Environmental improvement compact."  A structure of
    23  government and powers concerning one or more municipal functions
    24  involving two or more municipalities in this Commonwealth under
    25  procedures provided in this chapter.
    26                            SUBCHAPTER B
    27                             INITIATIVE
    28  Sec.
    29  2511.  Proposal by electors.
    30  2512.  Initiative petition.
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     1  2513.  Review of initiative petition.
     2  2514.  Petition as public record.
     3  2515.  Distribution of petition.
     4  § 2511.  Proposal by electors.
     5     A referendum on the question of the creation of an
     6  environmental improvement compact may be initiated by electors
     7  of two or more municipalities as provided in this chapter.
     8  § 2512.  Initiative petition.
     9     (a)  Filing.--A petition containing a proposal for referendum
    10  on the question of adopting an environmental improvement compact
    11  on one or more municipal functions, signed by electors
    12  comprising 2% of the number of electors voting for the office of
    13  Governor in the last gubernatorial general election in each
    14  municipality involved, may be filed with the election officials
    15  at least 90 days prior to the next primary held in an even-
    16  numbered year or general election.
    17     (b)  Size of board.--The petition shall designate a five,
    18  seven or nine member board.
    19     (c)  Designation of petitioners.--The name and address of the
    20  person filing the petition shall be clearly stated on the
    21  petition.
    22  § 2513.  Review of initiative petition.
    23     The election officials shall, within ten days after filing,
    24  review the initiative petition as to the number and
    25  qualifications of signers. If the petition appears to be
    26  defective, the election officials shall immediately notify the
    27  person filing the petition of the defect.
    28  § 2514.  Petition as public record.
    29     The initiative petition as submitted to the election
    30  officials along with the list of signatories shall be open to
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     1  public inspection in the office of the election officials.
     2  § 2515.  Distribution of petition.
     3     When the election officials find that the petition as
     4  submitted is in proper order, they shall send copies of the
     5  initiative petition without signatures thereon to the governing
     6  body of the municipalities involved and to the Department of
     7  Community Affairs.
     8                            SUBCHAPTER C
     9                   MUNICIPAL REFERENDUM ORDINANCE
    10  Sec.
    11  2521.  Referendum ordinance.
    12  2522.  Filing of referendum ordinance.
    13  2523.  Notice to governing bodies of referendum date.
    14  § 2521.  Referendum ordinance.
    15     The governing bodies of two or more municipalities may, by
    16  ordinance in each municipality, provide for a referendum on the
    17  question of adopting an environmental improvement compact. The
    18  ordinance shall designate a five, seven or nine member board.
    19  § 2522.  Filing of referendum ordinance.
    20     (a)  Election officials.--The referendum ordinance shall be
    21  filed with the election officials at least 90 days prior to the
    22  next primary or general election.
    23     (b)  Department of Community Affairs.--When the ordinances
    24  are filed with the election officials, copies of the referendum
    25  ordinance shall be immediately filed with the Department of
    26  Community Affairs.
    27  § 2523.  Notice to governing bodies of referendum date.
    28     The election officials shall notify the governing bodies of
    29  the municipalities involved of the date set for the referendum
    30  election on the proposal at least 30 days before the election.
    19950S0689B2340                 - 60 -

     1                            SUBCHAPTER D
     2                             REFERENDUM
     3  Sec.
     4  2531.  Referendum procedures.
     5  2532.  Placing question on ballot.
     6  2533.  Date of election.
     7  2534.  Public notice of referendum.
     8  2535.  Approval.
     9  2536.  Results of election.
    10  § 2531.  Referendum procedures.
    11     (a)  Authorization.--A referendum on the question of the
    12  adoption of an environmental improvement compact shall be held
    13  when initiated by electors of the municipalities in accordance
    14  with Subchapter B (relating to initiative) or after
    15  authorization by ordinance of the governing bodies of the
    16  municipalities in accordance with Subchapter C (relating to
    17  municipal referendum ordinance).
    18     (b)  Procedure.--The procedure for the referendum shall be
    19  governed by the act of June 3, 1937 (P.L.1333, No.320), known as
    20  the Pennsylvania Election Code.
    21  § 2532.  Placing question on ballot.
    22     When the election officials find the ordinances authorized by
    23  the governing bodies of the municipalities or the initiative
    24  petition as submitted by the electors meets the requirements of
    25  this chapter, they shall place the proposal on the ballot in a
    26  manner fairly representing the content of the ordinances or of
    27  the initiative petition for decision by referendum at the proper
    28  election.
    29  § 2533.  Date of election.
    30     The election officials shall certify the date for the
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     1  referendum, and shall so notify the governing bodies of the
     2  municipalities at least 30 days prior to that date.
     3  § 2534.  Public notice of referendum.
     4     At least 30 days' notice of the referendum shall be given by
     5  proclamation of the mayors of the cities, boroughs or
     6  incorporated towns, by the chairmen of the boards of county
     7  commissioners, by the presidents of the boards of township
     8  commissioners or by the chairmen of the boards of township
     9  supervisors, as the case may be. A copy of the proclamation
    10  shall be posted at each polling place of the municipalities on
    11  the day of the election and shall be published once in at least
    12  one newspaper of general circulation in the municipalities
    13  during the 30-day period prior to the election.
    14  § 2535.  Approval.
    15     Approval of a referendum for the adoption of an environmental
    16  improvement compact shall be by a majority vote of those voting
    17  in each municipality involved.
    18  § 2536.  Results of election.
    19     The election officials shall certify the results of the
    20  referendum to the governing bodies and the Department of
    21  Community Affairs.
    22                            SUBCHAPTER E
    23                         ELECTION OF BOARD
    24  Sec.
    25  2541.  Election of board.
    26  2542.  Nomination of candidates.
    27  2543.  Election returns.
    28  § 2541.  Election of board.
    29     (a)  Petition for election.--If a referendum for the adoption
    30  of an environmental improvement compact is approved by a
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     1  majority of voters in each municipality involved, the governing
     2  bodies shall, within 30 days of the certification of the results
     3  of the referendum election, submit to the election officials a
     4  petition to provide for the election of the board.
     5     (b)  Terms of office.--The majority of the members to be
     6  elected to the first board receiving the highest number of votes
     7  in the election shall serve for four-year terms, while the
     8  remainder shall serve for two-year terms. Thereafter, all
     9  candidates for the board shall have four-year terms.
    10     (c)  Election.--Members of the board shall be elected at the
    11  next municipal election not less than 90 days from the date of
    12  the referendum.
    13  § 2542.  Nomination of candidates.
    14     Candidates for membership on the board shall be electors of
    15  the municipalities involved. Each shall be nominated by
    16  nomination papers signed by a number of electors in their
    17  municipality or residence which is affected by the compact equal
    18  to at least 2% of the largest vote cast for any elected officer
    19  of the municipality elected at the last preceding municipal
    20  election. Nomination shall be in the manner provided by and
    21  subject to the provisions of the act of June 3, 1937 (P.L.1333,
    22  No.320), known as the Pennsylvania Election Code, which relate
    23  to the nomination of candidates nominated by nomination papers
    24  filed by political bodies for other offices elected by the
    25  voters of the municipality. Nomination papers shall not be
    26  circulated prior to 30 days before the last day on which the
    27  papers may be filed and shall be filed with the election
    28  officials not less than 44 days prior to the date of the
    29  election.
    30  § 2543.  Election returns.
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     1     The result of the votes cast for members of the board at the
     2  municipal election shall be returned by the election officials
     3  to the governing bodies of municipalities involved and to the
     4  Department of Community Affairs.
     5                            SUBCHAPTER F
     6                       ORGANIZATION OF BOARD
     7  Sec.
     8  2551.  Membership of board.
     9  2552.  Compensation of board.
    10  2553.  Organization of board.
    11  2554.  Secretary and treasurer of board.
    12  2555.  Purposes and powers of board.
    13  § 2551.  Membership of board.
    14     The board shall be composed of five, seven or nine members as
    15  provided in Subchapter E (relating to election of board).
    16  § 2552.  Compensation of board.
    17     A majority of all the members of the governing bodies of the
    18  municipalities involved shall set the annual compensation for
    19  the members of the board.
    20  § 2553.  Organization of board.
    21     On the first Monday of January following the municipal
    22  election, members of the board shall assemble at a designated
    23  meeting place and shall organize by electing one of their own
    24  members as chairman. This member shall preside at all meetings
    25  and perform other duties as the board may prescribe. In the
    26  absence of the chairman, the board shall elect a temporary
    27  presiding officer. The board shall adopt rules for its procedure
    28  and conduct of business. Any vacancy shall be filled by an
    29  elector from the municipalities involved appointed by the
    30  remaining members of the board.
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     1  § 2554.  Secretary and treasurer of board.
     2     (a)  Secretary.--The board shall appoint a secretary who
     3  shall keep the records and minutes of the board proceedings,
     4  maintain a record of other official activities and perform other
     5  functions as required by law.
     6     (b)  Treasurer.--The board shall appoint a treasurer. The
     7  treasurer shall collect or receive taxes, assessments and other
     8  funds due the board.
     9  § 2555.  Purposes and powers of board.
    10     (a)  Status and purposes.--Every board created under this
    11  chapter shall be a body corporate and politic and shall be for
    12  the purpose of acquiring, holding, constructing, improving,
    13  maintaining and operating, owning or leasing, either in the
    14  capacity of lessor or lessee, for any government function of two
    15  or more municipalities.
    16     (b)  Powers and duties.--The board shall have and may
    17  exercise all powers necessary or convenient for the carrying out
    18  of the purposes under subsection (a), including the following
    19  powers and duties:
    20         (1)  Sue and be sued.
    21         (2)  Adopt, use and alter at will a seal of the board.
    22         (3)  Acquire, purchase, hold, lease as lessee and use any
    23     franchise, property, real, personal or mixed, tangible or
    24     intangible, or any interest therein necessary or desirable
    25     for carrying out the purposes of the board, and sell, lease
    26     as lessor, transfer and dispose of any property or interest
    27     acquired by it.
    28         (4)  Acquire by purchase, lease or otherwise and
    29     construct, improve, maintain, repair and operate projects.
    30         (5)  Make bylaws for the management and regulation of its
    19950S0689B2340                 - 65 -

     1     affairs.
     2         (6)  Appoint officers, agents, employees and servants,
     3     prescribe their duties and fix their compensation.
     4         (7)  Fix and collect taxes not to exceed two mills of
     5     real estate within the municipalities involved and charge and
     6     collect rates and other charges in the area served by its
     7     facilities, at reasonable and uniform rates to be determined
     8     by it, for the purpose of providing for the payment of the
     9     expenses of the board, the construction, improvement, repair,
    10     maintenance and operation of its facilities and properties
    11     and the payment of the principal and interest on its
    12     obligations and to fulfill the terms of any agreements made
    13     with the holders of any such obligations or with
    14     municipalities served or to be served by the board. Any
    15     person questioning the reasonableness or uniformity of any
    16     rate fixed by the board or the adequacy, safety and
    17     reasonableness of the board's services may bring suit against
    18     the board in the court of common pleas of the county where
    19     the project is located. If the project is located in more
    20     than one county, the suit may be brought in the court of
    21     common pleas of the county where the principal office of the
    22     project is located.
    23         (8)  Borrow money and make and issue negotiable notes,
    24     bonds, refunding bonds and other evidences of indebtedness or
    25     obligations of the board. These instruments shall have a
    26     maturity date not longer than 30 years from the date of
    27     issue, except that no refunding bonds shall have a maturity
    28     date later than the life of the board. The board may secure
    29     the payment of the instruments or any part of them by pledge
    30     or deed of trust of all or any of its revenues and receipts
    19950S0689B2340                 - 66 -

     1     and make agreements with the holders of these instruments, or
     2     with others in connection with these instruments, whether
     3     issued or to be issued, as the board deems advisable. The
     4     board shall provide for the security for these instruments
     5     and the rights of the holders of them, and in respect to any
     6     project constructed and operated under agreement with any
     7     board or any public authority of any adjoining state, and may
     8     borrow money and issue notes, bonds and other evidences of
     9     indebtedness and obligations jointly with any authority.
    10         (9)  Make contracts and execute all instruments necessary
    11     or convenient for the carrying on of its powers and duties.
    12         (10)  Without limitation of the foregoing, borrow money
    13     and accept grants from and enter into contracts, leases or
    14     other transactions with any Federal agency or Commonwealth
    15     municipality, school district, corporation or authority.
    16         (11)  Have the power of eminent domain, with the consent
    17     of the county commissioners of the county where the land is
    18     located and with the consent of council in cities of the
    19     first class.
    20         (12)  Pledge, hypothecate or otherwise encumber all or
    21     any of the revenues or receipts of the board as security for
    22     the obligations of the board.
    23         (13)  Do all acts and things necessary or convenient for
    24     the promotion of its business and the general welfare of the
    25     board in order to carry out the powers granted to it by this
    26     chapter or any other statutes.
    27         (14)  Enter into contracts of group insurance for the
    28     benefit of its employees and set up a retirement or pension
    29     fund for employees.
    30                             SUBPART E
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     1               HOME RULE AND OPTIONAL PLAN GOVERNMENT
     2  Chapter
     3    29.  General Provisions
     4    30.  Types of Optional Plans of Government
     5    31.  General Provisions Common to Optional Plans
     6                             CHAPTER 29
     7                         GENERAL PROVISIONS
     8  Subchapter
     9     A.  Preliminary Provisions
    10     B.  Procedure for Adoption of Home Rule Charter or
    11         Optional Plan of Government
    12     C.  Amendment of Existing Charter or Optional Plan
    13     D.  Conduct of Election
    14     E.  General Powers and Limitations of Home Rule Charter
    15         Municipalities
    16     F.  General Provisions and Limitations for Optional Plan
    17         Municipalities
    18     G.  Miscellaneous Provisions
    19                            SUBCHAPTER A
    20                       PRELIMINARY PROVISIONS
    21  Sec.
    22  2901.  Short title and scope of subpart.
    23  2902.  Definitions.
    24  § 2901.  Short title and scope of subpart.
    25     (a)  Short title of subpart.--This subpart shall be known and
    26  may be cited as the Home Rule Charter and Optional Plans Law.
    27     (b)  Scope of subpart.--This subpart applies to all
    28  municipalities except cities of the first class and counties of
    29  the first class.
    30  § 2902.  Definitions.
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     1     Subject to additional definitions contained in subsequent
     2  provisions of this subpart which are applicable to specific
     3  provisions of this subpart, the following words and phrases when
     4  used in this subpart shall have the meanings given to them in
     5  this section unless the context clearly indicates otherwise:
     6     "Council."  County commissioner, city council, borough
     7  council, town council, township commissioner in a township of
     8  the first class and supervisor in a township of the second
     9  class.
    10     "Election officials."  The county boards of elections.
    11     "Electors."  The registered voters of any municipality
    12  involved in proceedings relating to the adoption and repeal of
    13  optional forms of government.
    14     "Governing body."  Board of county commissioners, city
    15  council, borough or incorporated town council, commissioners of
    16  a township of the first class and supervisors of a township of
    17  the second class or their successor forms of government.
    18     "Government study commission" or "commission."  The body
    19  elected under the provisions of Subchapter B (relating to
    20  procedure for adoption of home rule charter or optional plan of
    21  government).
    22     "Home rule charter."  A written document defining the powers,
    23  structure, privileges, rights and duties of the municipal
    24  government and limitations thereon. The charter shall also
    25  provide for the composition and election of the governing body,
    26  which in all cases shall be chosen by popular elections.
    27     "Local municipality."  Municipal corporation except a city of
    28  the first class.
    29     "Nonresident."  Any person or entity not a resident within
    30  the meaning of this subpart.
    19950S0689B2340                 - 69 -

     1     "Optional forms."  Includes home rule charters and optional
     2  plans.
     3     "Optional plans."  Optional municipal powers, procedures and
     4  administrative structures as provided by this subpart.
     5     "Rate of taxation."  The amount of tax levied by a
     6  municipality on a permissible subject of taxation.
     7     "Resident."  Any person or other entity living in or
     8  maintaining a permanent or fixed place of abode in a
     9  municipality or conducting or engaging in a business for profit
    10  within a municipality.
    11     "Subject of taxation."  Any person, business, corporation,
    12  partnership, entity, real property, tangible or intangible
    13  personal property, property interest, transaction, occurrence,
    14  privilege, transfer, occupation or any other levy which is
    15  determined to be taxable by the General Assembly. The term shall
    16  not be construed to mean the rate of tax which may be imposed on
    17  a permissible subject of taxation.
    18                            SUBCHAPTER B
    19            PROCEDURE FOR ADOPTION OF HOME RULE CHARTER
    20                   OR OPTIONAL PLAN OF GOVERNMENT
    21  Sec.
    22  2911.  Submission of question for election of government study
    23         commission.
    24  2912.  Election of members of commission.
    25  2913.  Nomination of candidates.
    26  2914.  Results of election.
    27  2915.  Oath of office of members of commission.
    28  2916.  First meeting of commission.
    29  2917.  Vacancies.
    30  2918.  Function and duty of commission.
    19950S0689B2340                 - 70 -

     1  2919.  Compensation and personnel.
     2  2920.  Hearings and public forums.
     3  2921.  Report of findings and recommendations.
     4  2922.  Discharge of petition and amended reports.
     5  2923.  Types of action recommended.
     6  2924.  Specificity of recommendations.
     7  2925.  Form of question on form of government.
     8  2926.  Submission of question on form of government.
     9  2927.  Limitation on enactment of ordinance or filing
    10         of petition.
    11  2928.  Time when change of form of government takes effect.
    12  2929.  Limitation on changing new form of government.
    13  2930.  Status of forms of government provided in subpart.
    14  § 2911.  Submission of question for election of government study
    15             commission.
    16     (a)  General rule.--Whenever authorized by ordinance of the
    17  governing body or upon petition of the electors to the county
    18  board of electors of the county wherein the municipality is
    19  located, an election shall be held upon one of the following
    20  questions:
    21             Shall a government study commission of (seven, nine
    22         or eleven) members be elected to study the existing form
    23         of government of the municipality, to consider the
    24         advisability of the adoption of an optional form of
    25         government and to recommend whether or not an optional
    26         plan of government should be adopted?
    27             Shall a government study commission of (seven, nine
    28         or eleven) members be elected to study the existing form
    29         of government of the municipality, to consider the
    30         advisability of the adoption of a home rule charter, and
    19950S0689B2340                 - 71 -

     1         if advisable, to draft and to recommend a home rule
     2         charter?
     3             Shall a government study commission of (seven, nine
     4         or eleven) members be elected to study the existing form
     5         of government of the municipality, to consider the
     6         advisability of the adoption of an optional form of
     7         government or a home rule charter, to recommend the
     8         adoption of an optional form of government or to draft
     9         and recommend a home rule charter?
    10     (b)  Petition for election.--The petition calling for the
    11  election shall be in the form required by subsection (e) and
    12  shall be signed by electors comprising 5% of the number of
    13  electors voting for the office of Governor in the last
    14  gubernatorial general election.
    15     (c)  Ordinance authorizing election.--Within five days after
    16  the final enactment of an ordinance authorizing the election,
    17  the municipal clerk or secretary shall file a certified copy of
    18  the ordinance with the county board of elections, together with
    19  a copy of the question to be submitted to the electors.
    20     (d)  Duty of election board.--At the next general or
    21  municipal or primary election occurring not less than the 13th
    22  Tuesday after the filing of the ordinance or the petition with
    23  the county board of elections, it shall cause the appropriate
    24  question to be submitted to the electors as other questions are
    25  submitted under the act of June 3, 1937 (P.L.1333, No.320),
    26  known as the Pennsylvania Election Code.
    27     (e)  Requirements for petitions.--A referendum petition under
    28  this section shall be filed not later than the 13th Tuesday
    29  prior to the election, and the petition and the proceedings
    30  therein shall be in the manner and subject to the provisions of
    19950S0689B2340                 - 72 -

     1  the election laws which relate to the signing, filing and
     2  adjudication of nomination petitions insofar as those provisions
     3  are applicable. No referendum petition may be signed or
     4  circulated prior to the 20th Tuesday before the election nor
     5  later than the 13th Tuesday before the election. No candidate's
     6  nomination petition may be signed or circulated prior to the
     7  13th Tuesday before the election nor later than the tenth
     8  Tuesday before the election. Any petition under this section
     9  shall be filed on or before the tenth Tuesday before the
    10  election.
    11  § 2912.  Election of members of commission.
    12     (a)  General rule.--A governmental study commission of seven,
    13  nine or eleven members, as designated in the question, shall be
    14  elected by the qualified voters at the same election the
    15  question is submitted to the electors.
    16     (b)  Nomination of candidates.--Each candidate for the office
    17  of member of the commission shall be nominated and placed upon
    18  the ballot containing the question in the manner provided by and
    19  subject to the provisions of the act of June 3, 1937 (P.L.1333,
    20  No.320), known as the Pennsylvania Election Code, which relate
    21  to the nomination of a candidate nominated by nomination papers
    22  filed for other offices elective by the voters. Each candidate
    23  shall be nominated and listed without any political designation
    24  or slogan, and no nomination paper shall be signed or circulated
    25  prior to the 13th Tuesday before the election, nor later than
    26  the tenth Tuesday before the election. No signature shall be
    27  counted unless it bears a date within this period.
    28     (c)  Instructions to electors.--Each elector shall be
    29  instructed to vote on the question and, regardless of the manner
    30  of his vote on the question, to vote for the designated number
    19950S0689B2340                 - 73 -

     1  of members of a government study commission who shall serve if
     2  the question is or has been determined in the affirmative.
     3     (d)  Insufficient number of candidates or members.--If an
     4  insufficient number of nominating papers is filed to fill all of
     5  the designated positions on the study commission, the question
     6  of establishing a commission shall be placed on the ballot, and,
     7  unless a sufficient number of study commission members are
     8  elected by receiving at least as many votes as signature          <--
     9  SIGNATURES are required to file a nominating position, then the   <--
    10  question of creating a study commission shall be deemed to have
    11  been rejected.
    12  § 2913.  Nomination of candidates.
    13     (a)  General rule.--All candidates for the government study
    14  commission shall be electors. Each candidate shall be nominated
    15  by nomination papers signed by a number of electors equal at
    16  least to 2% of the number of electors voting for the office of
    17  Governor in the last gubernatorial general election or 200
    18  electors, whichever is less, and filed with the county board of
    19  elections not later than the tenth Tuesday prior to the date of
    20  the election.
    21     (b)  Content and signing of nomination papers.--Each
    22  nomination paper shall set forth the name, place of residence
    23  and post office address of the candidate thereby nominated, that
    24  the nomination is for the office of government study
    25  commissioner and that the signers are legally qualified to vote
    26  for the candidate. An elector may not sign nomination papers for
    27  more candidates for the commission than he could vote for at the
    28  election. Every elector signing a nomination paper shall write
    29  his place of residence, post office address and street number,
    30  if any, on the petition.
    19950S0689B2340                 - 74 -

     1     (c)  Acceptance by candidate.--Each nomination paper shall,
     2  before it may be filed with the county board of elections,
     3  contain under oath of the candidate an acceptance of the
     4  nomination in writing, signed by the candidate therein
     5  nominated, upon or annexed to the paper, or, if the same person
     6  be named in more than one paper, upon or annexed to one of the
     7  papers. The acceptance shall certify that the candidate is an
     8  elector, that the nominee consents to run as a candidate at the
     9  election and that, if elected, the candidate agrees to take
    10  office and serve.
    11     (d)  Verification of nomination papers.--Each nomination
    12  paper shall be verified by an oath of one or more of the
    13  signers, taken and subscribed before a person qualified under
    14  the laws of this Commonwealth to administer an oath, to the
    15  effect that the paper was signed by each of the signers in his
    16  proper handwriting, that the signers are, to the best knowledge
    17  and belief of the affiant, electors and that the nomination
    18  paper is prepared and filed in good faith for the sole purpose
    19  of endorsing the person named therein for election as stated in
    20  the paper.
    21  § 2914.  Results of election.
    22     The result of the votes cast for and against the question as
    23  to the election of a government study commission shall be
    24  returned by the election officers, and a canvass of the election
    25  had, as is provided by law in the case of other public questions
    26  put to the electors. The votes cast for members of the
    27  commission shall be counted and the result returned by the
    28  county board of electors, and a canvass of the election had, as
    29  is provided by law in the case of election of members of
    30  municipal councils or boards. The designated number of
    19950S0689B2340                 - 75 -

     1  candidates receiving the greatest number of votes shall be
     2  elected and shall constitute the commission. If a majority of
     3  those voting on the question vote against the election of a
     4  commission, none of the candidates shall be elected. If two or
     5  more candidates for the last seat shall be equal in number of
     6  votes, they shall draw lots to determine which one shall be
     7  elected.
     8  § 2915.  Oath of office of members of commission.
     9     (a)  Members elected on countywide basis.--As soon as
    10  possible, and in any event no later than ten days after its
    11  certification of election, the members of a government study
    12  commission elected on a countywide basis shall, before a judge
    13  of a court of common pleas, make oath to support the
    14  Constitution of the United States and the Constitution of
    15  Pennsylvania, and to perform the duties of the office with
    16  fidelity.
    17     (b)  Other members.--As soon as possible and in any event no
    18  later than ten days after its certification of election, the
    19  members of a government study commission elected on other than a
    20  countywide basis shall, before a district justice or a justice
    21  of the peace, make oath to support the Constitution of the
    22  United States and the Constitution of Pennsylvania, and to
    23  perform the duties of the office with fidelity.
    24  § 2916.  First meeting of commission.
    25     (a)  Procedure.--As soon as possible and in any event no
    26  later than 15 days after its certification of election, the
    27  government study commission shall organize and hold its first
    28  meeting and elect one of its members chairman and another member
    29  vice chairman, fix its hours and place of meeting and adopt
    30  rules for the conduct of its business it deems necessary and
    19950S0689B2340                 - 76 -

     1  advisable.
     2     (b)  Quorum.--A majority of the members of the commission
     3  shall constitute a quorum for the transaction of business, but
     4  no recommendation of the commission shall have any legal effect
     5  unless adopted by a majority of the whole number of the members
     6  of the commission.
     7  § 2917.  Vacancies.
     8     In case of a vacancy in the government study commission, the
     9  remaining members of the commission shall fill it by appointing
    10  thereto some other properly qualified elector.
    11  § 2918.  Function and duty of commission.
    12     The government study commission shall study the form of
    13  government of the municipality to compare it with other
    14  available forms under the laws of this Commonwealth and
    15  determine whether or not in its judgment the government could be
    16  strengthened or made more clearly responsible or accountable to
    17  the people or whether its operation could become more economical
    18  or efficient under a changed form of government.
    19  § 2919.  Compensation and personnel.
    20     (a)  Compensation and expenses of members.--Members of the
    21  government study commission shall serve without compensation,
    22  but shall be reimbursed by the municipality for their necessary
    23  expenses incurred in the performance of their duties. Council
    24  shall appropriate moneys necessary for this purpose.
    25     (b)  Appointment and compensation of personnel.--Within the
    26  limits of the appropriations and other public and privately
    27  contributed funds and services made available to it, the
    28  commission may appoint one or more consultants and clerical and
    29  other assistants to serve at the pleasure of the commission and
    30  may fix reasonable compensation therefor to be paid the
    19950S0689B2340                 - 77 -

     1  consultants and clerical and other assistants.
     2  § 2920.  Hearings and public forums.
     3     The government study commission shall hold one or more public
     4  hearings, may hold private hearings and sponsor public forums
     5  and generally shall provide for the widest possible public
     6  information and discussion respecting the purposes and progress
     7  of its work.
     8  § 2921.  Report of findings and recommendations.
     9     (a)  General rule.--The government study commission shall
    10  report its findings and recommendations to the citizens of the
    11  municipality within nine months from the date of its election
    12  except that it shall be permitted an additional nine months if
    13  it elects to prepare and submit a proposed home rule charter and
    14  an additional two months if it chooses to elect its municipal
    15  council by districts. It shall publish or cause to be published
    16  sufficient copies of its final report for public study and
    17  information and shall deliver to the municipal clerk or
    18  secretary sufficient copies of the report to supply it to any
    19  interested citizen upon request. If the commission recommends
    20  the adoption of a home rule charter or any of the optional plans
    21  of government as authorized in this subpart, the report shall
    22  contain the complete plans as recommended.
    23     (b)  List of resources used.--There shall be attached to each
    24  copy of the report of the commission, as a part thereof, a
    25  statement sworn to by the members of the commission listing in
    26  detail the funds, goods, materials and services, both public and
    27  private, used by the commission in the performance of its work
    28  and the preparation and filing of the report. In addition, the
    29  list shall identify specifically the supplier of each item
    30  thereon.
    19950S0689B2340                 - 78 -

     1     (c)  Filing copy with Department of Community Affairs.--A
     2  copy of the final report of the commission with its findings and
     3  recommendations shall be filed with the Department of Community
     4  Affairs.
     5     (d)  Disposition of records.--All the records, reports,
     6  tapes, minutes of meetings and written discussions of the
     7  commission shall, upon its discharge, be turned over to the
     8  municipal clerk or secretary for permanent safekeeping and made
     9  available for public inspection at any time during regular
    10  business hours.
    11  § 2922.  Discharge of petition and amended reports.
    12     (a)  General rule.--The government study commission shall be
    13  discharged upon the filing of its report, but if the
    14  commission's recommendations require further procedure in the
    15  form of a referendum on the part of the electors, the commission
    16  shall not be discharged until the procedure has been finally
    17  concluded. At any time prior to 60 days before the date of the
    18  referendum, the commission may modify or change any
    19  recommendation set forth in the final report by publishing an
    20  amended report.
    21     (b)  Effect of amended report.--Whenever a commission issues
    22  an amended report pursuant to subsection (a), the amended report
    23  shall supersede the final report and the final report shall
    24  cease to have any legal effect.
    25     (c)  Procedure under amended report.--The procedure to be
    26  taken under the amended report shall be governed by the
    27  provisions of this subpart applicable to the final report of a
    28  commission submitted pursuant to section 2921 (relating to
    29  report of findings and recommendations).
    30  § 2923.  Types of action recommended.
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     1     The government study commission shall report and recommend in
     2  accordance with the question presented to the electorate as
     3  provided in section 2911 (relating to submission of question for
     4  election of government study commission):
     5         (1)  That a referendum shall be held to submit to the
     6     electors the question of adopting one of the optional plans
     7     of government authorized by this subpart to be specified by
     8     the commission.
     9         (2)  That a referendum shall be held to submit to the
    10     electors the question of adopting a home rule charter as
    11     prepared by the commission and as authorized by this subpart.
    12         (3)  That the form of government shall remain unchanged.
    13         (4)  Such other action as it deems advisable consistent
    14     with its functions as set forth in this subpart.
    15  § 2924.  Specificity of recommendations.
    16     (a)  Optional plan of government.--
    17         (1)  If the government study commission report recommends
    18     the adoption or the amendment of any of the optional plans of
    19     government set forth in this subpart, except the optional
    20     county plan, the report of the commission may specify the
    21     following:
    22             (i)  That the municipal council shall consist of
    23         three, five, seven or nine members, except that under the
    24         small municipality plan and under the optional county
    25         plan the number of council members shall be as provided
    26         in sections 3073 (relating to election of council
    27         members) and 3092 (relating to county officers).
    28             (ii)  That the office of treasurer shall be omitted
    29         or that it shall be filled by election by the electors
    30         rather than by appointment.
    19950S0689B2340                 - 80 -

     1             (iii)  That the office of controller shall be omitted
     2         or that it shall be filled by election by the electors
     3         rather than by appointment.
     4         (2)  If a commission report, initiative petition or
     5     ordinance shall recommend any optional plan, except for the
     6     optional county plan, it may specify that the then existing
     7     basis for electing council members shall be changed to an at-
     8     large or district or combination at-large and district basis.
     9         (3)  If a commission report, initiative petition or
    10     ordinance recommends the adoption of the council-manager form
    11     of government, it may specify that the mayor or president of
    12     council or chairman be elected directly by the electors
    13     rather than by council.
    14         (4)  If a commission report, initiative petition or
    15     ordinance for a county recommends the adoption of any of the
    16     optional plans, except the optional county plan, it may
    17     specify that the sheriff be elected directly by the voters of
    18     the county as provided in section 3094 (relating to
    19     additional options for election of county sheriff).
    20         (5)  In all cases, except for the council-manager plan,
    21     the commission report, initiative petition or ordinance shall
    22     specify whether the executive (mayor) shall be called
    23     "executive" or "mayor."
    24     (b)  Home rule charter.--If the commission recommends the
    25  adoption of a home rule charter, it shall specify the number to
    26  be on the municipal council, all offices to be filled by
    27  election and whether elections shall be on an at-large, district
    28  or combination district and at-large basis.
    29     (c)  Elections in new or revised districts.--Notwithstanding
    30  any other provisions of this subpart, if an approved home rule
    19950S0689B2340                 - 81 -

     1  charter or optional plan of government or other form of
     2  government adopted pursuant to the provisions of this subpart
     3  specifies that the election of the municipal council shall be on
     4  an at-large or district or combination district and at-large
     5  basis, and the basis recommended differs from the existing basis
     6  and therefore requires eliminating districts or establishing
     7  revised or new districts, then election of municipal officials
     8  shall not take place on the new basis until the municipal
     9  election following the next primary election taking place more
    10  than 180 days after the election at which the referendum on the
    11  question of a new form of government has been approved by the
    12  electorate. The new form of government shall not go into effect
    13  until the first Monday in January following the election of
    14  municipal officials on the new basis. New or revised districts
    15  shall be established by the government study commission and
    16  included in the proposed charter.
    17  § 2925.  Form of question on form of government.
    18     The question to be submitted to the voters for the adoption
    19  of a home rule charter or any of the optional plans of
    20  government authorized by this subpart shall be submitted in one
    21  of the following forms or such part of them as shall be
    22  applicable.
    23             Shall the Home Rule Charter contained in the report,
    24         dated (insert date), of the government study commission,
    25         prepared in accordance with the Home Rule Charter and
    26         Optional Plans Law, be adopted by the (insert type and
    27         name of municipality)?
    28             Shall (insert name of plan), including
    29         recommendations pertaining to optional provisions
    30         contained in the report of the government study
    19950S0689B2340                 - 82 -

     1         commission, dated (insert date), as authorized by the
     2         Home Rule Charter and Optional Plans Law, be adopted by
     3         the (insert type and name of municipality)?
     4             Shall the (Home Rule Charter) (Optional Plan) of the
     5         (insert type and name of municipality) be repealed, and
     6         the form of government recommended in the report of the
     7         government study commission, dated (insert date), be
     8         adopted as authorized by the Home Rule Charter and
     9         Optional Plans Law?
    10             Shall an Optional Plan for the (insert type and name
    11         of municipality) be amended as specified in the report of
    12         the government study commission filed with the election
    13         officials of the County of (insert name of county), on
    14         (insert date), as authorized by the Home Rule Charter and
    15         Optional Plans Law?
    16  § 2926.  Submission of question on form of government.
    17     If the government study commission recommends that the
    18  question of adopting a home rule charter or one of the optional
    19  plans of government authorized by this subpart shall be
    20  submitted to the electors, the municipal clerk or secretary
    21  shall, within five days thereafter, certify a copy of the
    22  commission's report to the county board of elections, which
    23  shall cause the question of adoption or rejection to be placed
    24  upon the ballot or voting machines at the time as the commission
    25  specifies in its report. The commission may cause the question
    26  to be submitted to the electors at the next primary, municipal
    27  or general election occurring not less than 60 days following
    28  the filing of a copy of the commission's report with the county
    29  board of elections, at the time the commission's report directs.
    30  At the election, the question of adopting that form of
    19950S0689B2340                 - 83 -

     1  government recommended by the commission shall be submitted to
     2  the electors by the county board of elections in the same manner
     3  as other questions are submitted to the electors under the act
     4  of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
     5  Election Code. The commission shall frame the question to be
     6  placed upon the ballot as provided for in section 2925 (relating
     7  to form of question on form of government) and, if it deems
     8  appropriate, an interpretative statement to accompany the
     9  question.
    10  § 2927.  Limitation on enactment of ordinance or filing of
    11             petition.
    12     (a)  General rule.--An ordinance may not be passed and a
    13  petition may not be filed for the election of a government study
    14  commission pursuant to section 2911 (relating to submission of
    15  question for election of government study commission) while
    16  proceedings are pending under any other petition or ordinance
    17  filed or passed under the authority of this subpart nor on the
    18  same question if it has been defeated within four years after an
    19  election has been held pursuant to any such ordinance or
    20  petition passed or filed.
    21     (b)  Time for commencement of proceedings.--For the purpose
    22  of this section, proceedings shall be considered as having
    23  started:
    24         (1)  In the case of an ordinance, upon the final vote of
    25     council in favor of the ordinance, notwithstanding the fact
    26     that the ordinance cannot take effect until a certain number
    27     of days thereafter.
    28         (2)  In the case of a petition, as soon as it is properly
    29     signed by one-third of the number of registered voters
    30     required for the petition and written notice thereof filed in
    19950S0689B2340                 - 84 -

     1     the office of the county board of elections and in the office
     2     of the municipal clerk or secretary, who shall cause the
     3     notice to be immediately posted in a conspicuous place in the
     4     office, open to public inspection.
     5  § 2928.  Time when change of form of government takes effect.
     6     Whenever the electors by a majority of those voting on the
     7  question vote in favor of adopting a change in their form of
     8  government pursuant to this subpart, the proposed form shall
     9  take effect according to its terms and the provisions of this
    10  subpart.
    11  § 2929.  Limitation on changing new form of government.
    12     The voters of any municipality which has adopted a home rule
    13  charter or an optional plan of government pursuant to this
    14  subpart may not vote on the question of changing the form of
    15  government until five years after the home rule charter or
    16  optional plan became effective.
    17  § 2930.  Status of forms of government provided in subpart.
    18     For the purposes of this subpart, each of the optional forms
    19  of government provided by this subpart and each of those
    20  optional forms as modified by any available provisions
    21  concerning size of council, election of municipal officials and
    22  the basis for electing councilmen is hereby declared to be a
    23  complete and separate form of government provided by the General
    24  Assembly for submission to the electors.
    25                            SUBCHAPTER C
    26           AMENDMENT OF EXISTING CHARTER OR OPTIONAL PLAN
    27  Sec.
    28  2941.  Procedure for amendment of charter or optional plan.
    29  2942.  Initiation of amendment by electors or council.
    30  2943.  Petition for referendum or ordinance proposing amendment.
    19950S0689B2340                 - 85 -

     1  2944.  Time and manner of submission of question.
     2  § 2941.  Procedure for amendment of charter or optional plan.
     3     (a)  Procedure.--The procedure for amending a home rule
     4  charter or optional plan of government shall be through the
     5  initiative procedure and referendum or ordinance of the
     6  governing body as provided for in this subpart.
     7     (b)  Changes in method of election.--Changes in the method of
     8  election of a municipal governing body from at-large elections
     9  to elections by district, maintain at-large elections or a
    10  combination of at-large elections and elections by district may
    11  be implemented by amending a home rule charter or optional plan
    12  without creation of a government study commission.
    13     (c)  Conflict in the question.--If two or more questions
    14  appear on the ballot at the same election and such questions are
    15  in conflict and more than one receives the approval of the
    16  voters, the question which receives the largest number of
    17  affirmative votes shall prevail over the others.
    18     (d)  Initial apportionment.--If the referendum on the
    19  question results in the approval by the voters to amend the home
    20  rule charter or optional plan to provide for the election of the
    21  governing body either by districts or partially by districts and
    22  partially at large or in a change in the number of members of
    23  the governing body, the initial apportionment of the districts
    24  shall be made by an apportionment commission consisting of seven
    25  members, all of whom shall reside in such municipality. Two
    26  members of the apportionment commission shall be appointed by
    27  the mayor. Two members of the apportionment commission shall be
    28  appointed by the governing body; one shall be appointed by the
    29  mayor from a list of at least three qualified persons
    30  recommended by the municipal committee of the political party
    19950S0689B2340                 - 86 -

     1  whose mayoral candidate received the highest number of votes
     2  cast in the most recent mayoral election and one shall be
     3  appointed by the mayor from a list of at least three qualified
     4  persons recommended by the municipal committee of the political
     5  party whose mayoral candidate received the second highest votes
     6  in the most recent mayoral election. The seventh member of the
     7  commission shall be elected at large by a majority vote of the
     8  other six members and shall serve as chairman of the commission.
     9  § 2942.  Initiation of amendment by electors or council.
    10     A referendum on the question of amendment of a home rule
    11  charter or an optional plan of government may be initiated by
    12  petition of the electors or such a referendum may be initiated
    13  by an ordinance of the governing body. A proposal for amendment
    14  of an optional plan shall be limited to the additional options
    15  provided for in section 2924 (relating to specificity of
    16  recommendations).
    17  § 2943.  Petition for referendum or ordinance proposing
    18             amendment.
    19     (a)  Filing.--A petition containing a proposal for referendum
    20  on the question of amending a home rule charter or an optional
    21  plan of government signed by electors comprising 10% of the
    22  number of electors voting for the office of Governor in the last
    23  gubernatorial general election in the municipality, or an
    24  ordinance of the municipal governing body proposing amendment of
    25  a home rule charter or an optional plan, shall be filed with the
    26  election officials not later than the 13th Tuesday prior to the
    27  next primary, municipal or general election. The petition and
    28  the proceedings therein shall be in the manner and subject to
    29  the provisions of the election laws which relate to the signing,
    30  filing and adjudication of nomination petitions insofar as such
    19950S0689B2340                 - 87 -

     1  provisions are applicable, except that no referendum petition
     2  shall be signed or circulated prior to the 20th Tuesday before
     3  the election nor later than the 13th Tuesday before the
     4  election. The name and address of the person filing the petition
     5  shall be clearly stated on the petition.
     6     (b)  Review and disposition of petition.--The election
     7  officials shall review the initiative petition as to the number
     8  and qualifications of signers. If the petition appears to be
     9  defective, the election officials shall immediately notify the
    10  persons filing the petition of the defect. When the election
    11  officials find that the petition as submitted is in proper
    12  order, they shall send copies of the initiative petition without
    13  signatures thereon to the governing body and to the Department
    14  of Community Affairs. The initiative petition as submitted to
    15  the election officials, along with a list of signatories, shall
    16  be open to inspection in the office of the election officials.
    17  § 2944.  Time and manner of submission of question.
    18     A referendum on the question of the amendment of a home rule
    19  charter or an optional plan of government shall be held when the
    20  election officials find that the initiative petition or
    21  ordinance of the governing body is in proper order. The
    22  referendum shall be governed by the provisions of the act of
    23  June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
    24  Election Code. The election officials shall cause the question
    25  to be submitted to the electors at the next primary, general or
    26  municipal election occurring not less than the 13th Tuesday
    27  following the filing of the initiative petition or ordinance
    28  with county board of elections. At the election, the question
    29  shall be submitted to the voters in the same manner as other
    30  questions are submitted under the Pennsylvania Election Code.
    19950S0689B2340                 - 88 -

     1  The county board of elections shall frame the question to be
     2  placed upon the ballot.
     3                            SUBCHAPTER D
     4                        CONDUCT OF ELECTION
     5  Sec.
     6  2951.  Conduct and results of election.
     7  2952.  Notice of election.
     8  § 2951.  Conduct and results of election.
     9     All elections provided for in this subpart shall be conducted
    10  by the election officials for such municipality in accordance
    11  with the act of June 3, 1937 (P.L.1333, No.320), known as the
    12  Pennsylvania Election Code. The election officials shall count
    13  the votes cast and make return thereof to the county board of
    14  elections. The results of the election shall be computed by the
    15  county board of elections in the same manner as is provided by
    16  law for the computation of similar returns. Certificates of the
    17  results of the election shall be filed by the county board of
    18  elections with the municipal council or board, the Department of
    19  State and the Department of Community Affairs.
    20  § 2952.  Notice of election.
    21     At least 30 days' notice of each election provided for under
    22  this subpart shall be given by the clerk or secretary of the
    23  municipality. A copy of the notice shall be posted at each
    24  polling place on the day of the election and shall be published
    25  in at least one newspaper of general circulation in the
    26  municipality once a week for three consecutive weeks during the
    27  period of 30 days prior to the election.
    28                            SUBCHAPTER E
    29                 GENERAL POWERS AND LIMITATIONS OF
    30                  HOME RULE CHARTER MUNICIPALITIES
    19950S0689B2340                 - 89 -

     1  Sec.
     2  2961.  Scope of powers of home rule.
     3  2962.  Limitations on municipal powers.
     4  2963.  Exercise of municipal powers by home rule county.
     5  2964.  General powers of municipalities.
     6  2965.  Recording and filing of charter.
     7  2966.  Continuation of office of existing elective officials.
     8  2967.  Repeal of home rule charter.
     9  § 2961.  Scope of powers of home rule.
    10     A municipality which has adopted a home rule charter may
    11  exercise any powers and perform any function not denied by the
    12  Constitution of Pennsylvania, by statute or by its home rule
    13  charter. All grants of municipal power to municipalities
    14  governed by a home rule charter under this subchapter, whether
    15  in the form of specific enumeration or general terms, shall be
    16  liberally construed in favor of the municipality.
    17  § 2962.  Limitation on municipal powers.
    18     (a)  Powers granted by statute.--With respect to the
    19  following subjects, the home rule charter shall not give any
    20  power or authority to the municipality contrary to, or in
    21  limitation or enlargement of, powers granted by statutes which
    22  are applicable to a class or classes of municipalities:
    23         (1)  The filing and collection of municipal tax claims or
    24     liens and the sale of real or personal property in
    25     satisfaction of them.
    26         (2)  The procedures in the exercise of the powers of
    27     eminent domain and the assessment of damages and benefits for
    28     property taken, injured or destroyed.
    29         (3)  Boundary changes.
    30         (4)  Regulation of public schools.
    19950S0689B2340                 - 90 -

     1         (5)  The registration of electors and the conduct of
     2     elections.
     3         (6)  The fixing of subjects of taxation.
     4         (7)  The fixing of the rates of nonproperty or personal
     5     taxes levied upon nonresidents.
     6         (8)  The assessment of real or personal property and
     7     persons for taxation purposes.
     8         (9)  Defining or providing for the punishment of any
     9     felony or misdemeanor.
    10         (10)  Municipal planning under the act of July 31, 1968
    11     (P.L.805, No.247), known as the Pennsylvania Municipalities
    12     Planning Code.
    13     (b)  Taxing power.--Unless prohibited by the Constitution of
    14  Pennsylvania, the provisions of this subpart or any other
    15  statute or its home rule charter, a municipality which has
    16  adopted a home rule charter shall have the power and authority
    17  to enact and enforce local tax ordinances upon any subject of
    18  taxation granted by statute to the class of municipality of
    19  which it would be a member but for the adoption of a home rule
    20  charter at any rate of taxation determined by the governing
    21  body. No home rule municipality shall establish or levy a rate
    22  of taxation upon nonresidents which is greater than the rate
    23  which a municipality would have been authorized to levy on
    24  nonresidents but for the adoption of a home rule charter. The
    25  governing body shall not be subject to any limitation on the
    26  rates of taxation imposed upon residents.
    27     (c)  Prohibited powers.--A municipality shall not:
    28         (1)  Engage in any proprietary or private business except
    29     as authorized by statute.
    30         (2)  Exercise powers contrary to, or in limitation or
    19950S0689B2340                 - 91 -

     1     enlargement of, powers granted by statutes which are
     2     applicable in every part of this Commonwealth.
     3         (3)  Be authorized to diminish the rights or privileges
     4     of any former municipal employee entitled to benefits or any
     5     present municipal employee in his pension or retirement
     6     system.
     7         (4)  Enact or promulgate any ordinance or regulation with
     8     respect to definitions, sanitation, safety, health, standards
     9     of identity or labeling pertaining to the manufacture,
    10     processing, storage, distribution and sale of any foods,
    11     goods or services subject to any Commonwealth statutes and
    12     regulations unless the municipal ordinance or regulation is
    13     uniform in all respects with the Commonwealth statutes and
    14     regulations thereunder. This paragraph does not affect the
    15     power of any municipality to enact and enforce ordinances
    16     relating to building codes or any other safety, sanitation or
    17     health regulation pertaining thereto.
    18         (5)  Enact any provision inconsistent with any statute
    19     heretofore enacted prior to April 13, 1972, affecting the
    20     rights, benefits or working conditions of any employee of a
    21     political subdivision of this Commonwealth.
    22     (d)  Reduction of police force.--Notwithstanding any
    23  provision of this subpart or any other statute to the contrary,
    24  any municipality that is or was a city of the second class A may
    25  reduce its police force or its firefighting force for economic
    26  reasons, as determined by ordinance.
    27     (e)  Statutes of general application.--Statutes that are
    28  uniform and applicable in every part of this Commonwealth shall
    29  remain in effect and shall not be changed or modified by this
    30  subpart. Statutes shall supersede any municipal ordinance or
    19950S0689B2340                 - 92 -

     1  resolution on the same subject.
     2     (f)  Regulation of business and employment.--A municipality
     3  which adopts a home rule charter shall not determine duties,
     4  responsibilities or requirements placed upon businesses,
     5  occupations and employers, including the duty to withhold, remit
     6  or report taxes or penalties levied or imposed upon them or upon
     7  persons in their employment, except as expressly provided by
     8  statutes which are applicable in every part of this Commonwealth
     9  or which are applicable to all municipalities or to a class or
    10  classes of municipalities. This subsection shall not be
    11  construed as a limitation in fixing rates of taxation on
    12  permissible subjects of taxation.
    13     (g)  Regulation of firearms.--A municipality shall not enact
    14  any ordinance or take any other action dealing with the
    15  regulation of the transfer, ownership, transportation or
    16  possession of firearms.
    17     (h)  Levying taxes.--This section does not limit or take away
    18  any right of a municipality which adopts a home rule charter
    19  from levying any tax which it had the power to levy had it not
    20  adopted a home rule charter.
    21     (i)  Establishment of rates of taxation.--No provision of
    22  this subpart or any other statute shall limit a municipality
    23  which adopts a home rule charter from establishing its own rates
    24  of taxation upon all authorized subjects of taxation except
    25  those specified in subsection (a)(7).
    26     (j)  Retroactive fee increase prohibited.--A municipality
    27  which adopts a home rule charter may not retroactively increase
    28  any fee or charge for any municipal service which has been
    29  provided.
    30  § 2963.  Exercise of municipal powers by home rule county.
    19950S0689B2340                 - 93 -

     1     A county which has adopted a home rule charter shall not at
     2  any time thereafter exercise within any municipality in the
     3  county a power or function being exercised by that municipality,
     4  except under all of the following conditions:
     5         (1)  The exercise of such power or function by the county
     6     shall be authorized by ordinance of the governing body of the
     7     county, which ordinance, in addition to such other filings as
     8     may be required by law, shall be filed with the clerk or
     9     secretary of each local municipality within the county within
    10     30 days of its enactment.
    11         (2)  The transfer of a power or function to the county
    12     from any local municipality within the county, as authorized
    13     by the ordinance, shall not become effective for at least 15
    14     months from the date of adoption of the ordinance.
    15         (3)  Within 120 days from the adoption of the ordinance,
    16     the governing body of any local municipality, exercising on
    17     the date of the adoption of the ordinance any power or
    18     function authorized by ordinance of the county to be
    19     exercised by the county, may elect by ordinance to be
    20     excluded from the county's exercise of the power or function.
    21     Within 60 days after the date of adoption by the governing
    22     body of a local municipality of an ordinance excluding the
    23     local municipality from the exercise by the county of a power
    24     or function, or in the absence of any action of the governing
    25     body, the qualified electors of the local municipality may
    26     initiate a petition requiring that the question of inclusion
    27     or exclusion from the exercise of the power or function by
    28     the county be submitted to a referendum of the electorate at
    29     the election held on the date of the next ensuing primary,
    30     municipal or general election not less than 60 days after the
    19950S0689B2340                 - 94 -

     1     filing of the initiative petition with the county board of
     2     elections. The initiative and referendum procedures set forth
     3     in this subchapter or Subchapter F (relating to general
     4     provisions and limitations for optional plan municipalities)
     5     shall be followed, except where the same may be inconsistent
     6     with any of the provisions of this section. In the event the
     7     county determines there is insufficient interest or that it
     8     is not feasible to establish the proposed municipal function
     9     or power as provided for in the ordinance passed by the
    10     county, the county may repeal the county ordinance prior to
    11     the effective date of the ordinance.
    12         (4)  The governing body of any local municipality may by
    13     ordinance, subsequent to the time limit for action as set
    14     forth in paragraph (3), request the county to be included in
    15     a municipal power or function being exercised by the county.
    16     However, the county may specify the terms and conditions for
    17     acceptance or denial of the power or function requested by
    18     the local municipality to be exercised by the county, which
    19     shall be subject to court review if the local municipality
    20     determines that the terms and conditions as set forth by the
    21     county are unreasonable.
    22         (5)  No assessment, tax, fee or levy in the nature
    23     thereof made by the governing body of a county in support of
    24     the exercise of a power or function as authorized by
    25     ordinance of the county shall be applicable in any local
    26     municipality within the county which is providing the same
    27     municipal power or function.
    28         (6)  If the electors of a local municipality by
    29     referendum vote to exclude the local municipality from the
    30     exercise of a power or function by the county, a petition may
    19950S0689B2340                 - 95 -

     1     not be initiated nor may a referendum be held on the same
     2     question more often than every five years thereafter.
     3         (7)  A local municipality may, by action of the governing
     4     body, or by initiative and referendum, withdraw from a power
     5     or function which it was exercising at the date of the
     6     adoption of the county home rule charter which it transferred
     7     to a county, provided it again assumes and exercises the
     8     power or function, but may not vote on the question of
     9     withdrawing sooner than four years from the time the county
    10     assumed the power or function of the local municipality.
    11  § 2964.  General powers of municipalities.
    12     Municipalities adopting a home rule charter shall have the
    13  power to:
    14         (1)  Sue and be sued.
    15         (2)  Have a corporate seal.
    16         (3)  Contract and be contracted with.
    17         (4)  Buy, sell, lease, hold and dispose of real and
    18     personal property.
    19         (5)  Appropriate and expend moneys.
    20         (6)  Adopt, amend and repeal any ordinances and
    21     resolutions as may be required.
    22  § 2965.  Recording and filing of charter.
    23     The municipal clerk or secretary shall have the new charter
    24  as approved by the qualified electors recorded in the ordinance
    25  books and shall also file a certified copy of the charter with
    26  the Department of State, the Department of Community Affairs and
    27  the county board of elections.
    28  § 2966.  Continuation of office of existing elective officials.
    29     All elective officials in office at the time of the adoption
    30  of a home rule charter shall continue in office until their
    19950S0689B2340                 - 96 -

     1  terms expire.
     2  § 2967.  Repeal of home rule charter.
     3     (a)  General rule.--The procedure for repeal of a home rule
     4  charter shall be the same as for adoption of a home rule
     5  charter. Whenever the electors, by a majority vote of those
     6  voting on the question, vote in favor of repeal of a home rule
     7  charter and the establishment of a particular form of
     8  government, the municipality shall be governed under the form of
     9  government selected by the electors from the first Monday of
    10  January following the municipal election at which the elective
    11  officials of the form of government selected by the electors
    12  shall have been elected. The government study commission shall
    13  provide in its report for the new form of government to be
    14  established.
    15     (b)  Election of new officials.--The elective officials under
    16  a new form of government selected by the electors shall be
    17  elected at the first municipal election held after the
    18  referendum on the repeal of a home rule charter or at a later
    19  date as may be specified by the commission in its report.
    20                            SUBCHAPTER F
    21               GENERAL PROVISIONS AND LIMITATIONS FOR
    22                    OPTIONAL PLAN MUNICIPALITIES
    23  Sec.
    24  2971.  Law applicable to optional plan.
    25  2972.  Recording and filing of plan.
    26  2973.  Scope of powers of optional plan.
    27  2974.  Limitation on powers of optional plan.
    28  § 2971.  Law applicable to optional plan.
    29     Upon the adoption by the electors of any of the optional
    30  plans of government as set forth in this subpart, the
    19950S0689B2340                 - 97 -

     1  municipality shall thereafter be governed by the plan adopted
     2  and by the provisions of general law applicable to that class or
     3  classes of municipality except as otherwise provided in this
     4  subpart. Until the municipality adopts another form of
     5  government, the plan adopted and the provisions of general law
     6  applicable to that class or classes of municipality shall be
     7  law. All statutes affecting the organization, government and
     8  powers of the municipality which are not inconsistent or in
     9  conflict with this subpart shall remain in full force until
    10  modified or repealed.
    11  § 2972.  Recording and filing of plan.
    12     The municipal clerk or secretary shall immediately cause the
    13  new plan of government as adopted to be recorded in the
    14  ordinance book of the municipality and shall also file a
    15  certified copy thereof with the Department of State, the
    16  Secretary of Community Affairs and the county board of
    17  elections.
    18  § 2973.  Scope of powers of optional plan.
    19     The general grant of municipal power under this subpart is
    20  intended to confer the greatest power of self government
    21  consistent with the Constitution of Pennsylvania and with the
    22  provisions of and the limitations prescribed by this subpart.
    23  Any specific enumeration of municipal powers contained in this
    24  subpart or in other statutes does not limit the general
    25  description of power contained in this subpart. Any specifically
    26  enumerated municipal powers are in addition and supplementary to
    27  the powers conferred in general terms by this subchapter. All
    28  grants of municipal power to municipalities governed by an
    29  optional plan under this subpart, whether in the form of
    30  specific enumeration or general terms, shall be liberally
    19950S0689B2340                 - 98 -

     1  construed in favor of the municipality.
     2  § 2974.  Limitation on powers of optional plan.
     3     The optional plan of any municipality adopted in accordance
     4  with this subpart shall not give any power or authority to
     5  diminish any rights or privileges of any present municipal
     6  employee in his pension or retirement system. No municipality
     7  shall exercise any powers or authority beyond the municipal
     8  limits except those conferred by statute, and no municipality
     9  shall engage in any proprietary or private business except as
    10  authorized by the General Assembly.
    11                            SUBCHAPTER G
    12                      MISCELLANEOUS PROVISIONS
    13  Sec.
    14  2981.  Limitation on local municipality.
    15  2982.  Retention of existing form of government.
    16  2983.  Retention of existing form of government when electors
    17         disapprove proposal.
    18  2984.  Assumption of functions previously assumed by other
    19         municipality.
    20  § 2981.  Limitation on local municipality.
    21     No local municipality within a county shall supersede or
    22  exercise any power, function or service presently exercised by
    23  the county.
    24  § 2982.  Retention of existing form of government.
    25     Each municipality which does not adopt a home rule charter or
    26  an optional plan under this subpart shall retain its existing
    27  form of government as otherwise provided by law.
    28  § 2983.  Retention of existing form of government when electors
    29             disapprove proposal.
    30     In case the electors of any municipality disapprove a
    19950S0689B2340                 - 99 -

     1  proposal to adopt a home rule charter or an optional plan of
     2  government, the municipality shall retain its existing form of
     3  government.
     4  § 2984.  Assumption of functions previously assumed by other
     5             municipality.
     6     (a)  Assumption of indebtedness.--A municipality assuming a
     7  function previously performed by another municipality under the
     8  terms of this subchapter shall also assume all the indebtedness
     9  and obligations of the municipality relating to the function. If
    10  property, indebtedness or obligations of another municipality
    11  not within the boundaries of the municipality assuming the
    12  function is involved, the governing bodies of the respective
    13  municipalities shall make an adjustment and apportionment of all
    14  public property involved.
    15     (b)  Procedure for adjustment and apportionment.--The
    16  adjustment and apportionment shall be reduced to a written
    17  agreement which shall be filed with the court of common pleas of
    18  the county and the Department of Community Affairs.
    19     (c)  Petition for adjustment and apportionment.--In case the
    20  municipalities cannot make an amicable adjustment and
    21  apportionment of the property, obligations and indebtedness
    22  within six months after the function is assumed, any of the
    23  municipalities may present a petition to the court of common
    24  pleas. The court shall then appoint three disinterested
    25  commissioners, all residents and taxpayers of the county, but
    26  none residing in or owners of real property in any of the
    27  municipalities. After hearing, notice of which shall be given to
    28  the municipalities as the court shall direct, the commissioners
    29  shall file a report with the court making an adjustment and
    30  apportionment of all the property as well as the obligations or
    19950S0689B2340                 - 100 -

     1  indebtedness. The report shall state the amount that shall be
     2  due and payable from each municipality, the forms of payment and
     3  the amount of obligations and indebtedness that shall be assumed
     4  by each.
     5     (d)  Notice to municipalities.--The commissioners shall give
     6  the municipalities at least five days' written notice of the
     7  filing of their report. Unless exceptions are filed to the
     8  report within 30 days after the date of the filing, the report
     9  shall be confirmed by the court absolutely. Any sum awarded by
    10  the report shall be a legal and valid claim in its favor against
    11  the municipality charged. Any real or personal property given to
    12  a municipality shall become its property. Any claim or
    13  indebtedness charged against the municipality may be collected
    14  from it.
    15     (e)  Exceptions to report.--If exceptions are filed to the
    16  report of the commissioners, the court shall dispose of them,
    17  taking testimony if it deems advisable. The court shall enter
    18  its decree confirming the award of the commissioners or
    19  modifying the same as appears just and proper.
    20     (f)  Compensation to commissioners.--The commissioners shall
    21  be allowed any compensation and expenses for their services as
    22  the court shall fix. The costs of the proceedings, including the
    23  compensation and expenses of the commissioners, shall be
    24  apportioned by the court between the municipalities as it deems
    25  proper.
    26     (g)  Jurisdiction of court.--If a municipality or part of a
    27  municipality is located in two or more counties, the court of
    28  common pleas of the county where the larger part of the
    29  municipality assuming the function is located shall have
    30  exclusive jurisdiction over the proceedings.
    19950S0689B2340                 - 101 -

     1                             CHAPTER 30
     2               TYPES OF OPTIONAL PLANS OF GOVERNMENT
     3  Subchapter
     4     A.  Executive (Mayor) - Council Plan A
     5     B.  Executive (Mayor) - Council Plan B
     6     C.  Executive (Mayor) - Council Plan C
     7     D.  Council-Manager Plan
     8     E.  Small Municipality Plan
     9     F.  Optional County Plan
    10                            SUBCHAPTER A
    11                 EXECUTIVE (MAYOR) - COUNCIL PLAN A
    12  Sec.
    13  3001.  Designation and applicability of plan.
    14  3002.  Officers and employees.
    15  3003.  Election and term of office of officials.
    16  3004.  Election and term of office of council members.
    17  3005.  First election of council members.
    18  3006.  Legislative power vested in council.
    19  3007.  Organization of council.
    20  3008.  Powers of council concerning officers and agencies.
    21  3009.  Appointment and duties of municipal clerk or secretary.
    22  3010.  Executive power vested in executive.
    23  3011.  Powers and duties of executive.
    24  3012.  Approval or veto of ordinances.
    25  3013.  Mayor, departments and department heads.
    26  3014.  Department of administration.
    27  3015.  Budget.
    28  3016.  Form and adoption of budget.
    29  3017.  Amended budget.
    30  3018.  Council amendments to budget.
    19950S0689B2340                 - 102 -

     1  § 3001.  Designation and applicability of plan.
     2     The form of government provided in this subchapter shall be
     3  known as the "Executive (Mayor) - Council Plan A" and shall,
     4  together with the laws applicable to that class of municipality
     5  and Subchapter F of Chapter 29 (relating to general provisions
     6  and limitations for optional plan municipalities) and Chapter 31
     7  (relating to general provisions common to optional plans),
     8  govern any municipality the electors of which have adopted it
     9  under this subpart.
    10  § 3002.  Officers and employees.
    11     Each municipality under this subchapter shall be governed by
    12  an elected council, an elected executive who may be called
    13  mayor, as determined by the government study commission, an
    14  elected district attorney in the case of counties and, when
    15  recommended by the commission and adopted by the voters, an
    16  elected treasurer, an elected controller and by such other
    17  officers and employees as may be duly appointed pursuant to this
    18  subchapter or other applicable law.
    19  § 3003.  Election and term of office of officials.
    20     The executive (mayor), the treasurer, if elected, the
    21  district attorney in the case of counties and the controller, if
    22  elected, shall be elected by the electors at a regular municipal
    23  election and shall serve for a term of four years beginning on
    24  the first Monday of January next following his election.
    25  § 3004.  Election and term of office of council members.
    26     The council shall consist of five members unless, under the
    27  authority granted under section 2924 (relating to specificity of
    28  recommendations), the municipality shall be governed by a
    29  council of three, seven or nine members. Members of the council
    30  shall be elected at large by the electors unless, under the
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     1  authority granted pursuant to section 2924, members shall be
     2  elected on a district basis in which each district is as equal
     3  in population as is feasible, or on a combination at-large and
     4  district basis as determined by the government study commission,
     5  or as specified in an initiative petition or ordinance of the
     6  governing body under the provisions of sections 2942 (relating
     7  to initiation of amendment by electors or council), 2943
     8  (relating to petition for referendum or ordinance proposing
     9  amendment) and 2944 (relating to time and manner of submission
    10  of question) at a regular municipal election and shall serve for
    11  a term of four years, except as otherwise provided in this
    12  subchapter, beginning on the first Monday of January next
    13  following their elections.
    14  § 3005.  First election of council members.
    15     At the first municipal election following the adoption of
    16  this plan, council members shall be elected and shall serve for
    17  the terms as provided in section 3162 (relating to status and
    18  term of office of officials).
    19  § 3006.  Legislative power vested in council.
    20     The legislative power of the municipality as provided by laws
    21  applicable to that class of municipality shall be exercised by
    22  the municipal council, except as may otherwise be provided for
    23  under this subpart.
    24  § 3007.  Organization of council.
    25     On the first Monday of January following the regular
    26  municipal election, the members of council shall assemble at the
    27  usual place of meeting, organize and elect a president from
    28  among its members, who shall preside at its meetings and perform
    29  such other duties as council may prescribe, and a vice
    30  president, who shall preside in the absence of the president. If
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     1  the first Monday is a legal holiday, the meeting shall be held
     2  on the next day.
     3  § 3008.  Powers of council concerning officers and agencies.
     4     The council, in addition to other powers and duties as may be
     5  conferred upon it by general law, may require any municipal
     6  officer to prepare and submit sworn statements regarding the
     7  performance of the officer's official duties and may otherwise
     8  investigate the conduct of any department, office or agency of
     9  the municipal government.
    10  § 3009.  Appointment and duties of municipal clerk or secretary.
    11     A municipal clerk or secretary shall be appointed in the
    12  manner set forth in the administrative ordinance as provided
    13  pursuant to section 3146 (relating to passage of administrative
    14  ordinance). The municipal clerk or secretary shall serve as
    15  clerk of the council, keep its minutes and records of its
    16  proceedings, maintain and compile its ordinances and resolutions
    17  as this subpart requires and perform such functions as may be
    18  required by law or by local ordinance. The municipal clerk
    19  shall, prior to the appointment, have been qualified by training
    20  or experience to perform the duties of the office.
    21  § 3010.  Executive power vested in executive.
    22     The executive power of the municipality shall be exercised by
    23  the executive (mayor).
    24  § 3011.  Powers and duties of executive.
    25     The executive (mayor) shall enforce the plan and ordinances
    26  of the municipality and all general laws applicable to them. The
    27  executive shall, annually, report to the council and the public
    28  on the work of the previous year and on the condition and
    29  requirements of the municipal government and shall, from time to
    30  time, make these recommendations for action by the council as he
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     1  deems in the public interest. He shall supervise the departments
     2  of the municipal government and shall require each department to
     3  make annual and other reports of its work as he deems desirable.
     4  § 3012.  Approval or veto of ordinances.
     5     (a)  General rule.--Ordinances adopted by the council shall
     6  be submitted to the executive (mayor) who shall, within ten days
     7  after receiving any ordinance, either approve the ordinance by
     8  affixing his signature thereto, or veto the ordinance by
     9  delivering it to the municipal clerk together with a statement
    10  setting forth his objections. The clerk shall immediately notify
    11  the council of the veto. No ordinance or any item or part
    12  thereof shall take effect without the executive's (mayor's)
    13  approval, unless the executive (mayor) fails to return an
    14  ordinance to the clerk within ten days after it has been
    15  presented to him, or unless council upon reconsideration of the
    16  veto on or after the third day following its return by the
    17  executive (mayor) shall override the executive's (mayor's) veto
    18  by a vote of a majority plus one of the members.
    19     (b)  Attendance at meetings of council.--The executive
    20  (mayor) may attend meetings of council and may take part in
    21  discussions of council but shall have no vote except in the case
    22  of a tie on the question of filling a vacancy in the council, in
    23  which case he may cast the deciding vote.
    24  § 3013.  Mayor, departments and department heads.
    25     (a)  Inability of executive to perform duties.--The executive
    26  (mayor) shall designate any department head to act as executive
    27  (mayor) whenever the executive (mayor) shall be prevented, by
    28  absence from the municipality, disability or other cause, from
    29  attending to the duties of his office. During such time the
    30  person so designated by the executive (mayor) shall possess all
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     1  the rights, powers and duties of the executive (mayor). Whenever
     2  the executive (mayor) has been unable to attend to the duties of
     3  his office for a period of 60 consecutive days for any of the
     4  reasons stated in this subsection, a member of council shall be
     5  appointed by the council as acting executive (mayor), who shall
     6  succeed to all the rights, powers and duties of the executive
     7  (mayor) or the then acting executive (mayor), until he shall
     8  return or his disability ceases.
     9     (b)  Establishment and exercise of functions of department.--
    10  The municipality may have a department of administration and
    11  shall have such other departments as council may establish by
    12  ordinance. All of the administrative functions, powers and
    13  duties of the municipality, other than those vested in the
    14  office of the clerk, treasurer, if elected, and controller,
    15  shall be assigned among and within the departments.
    16     (c)  Appointment and term of department heads and
    17  solicitor.--Each department shall be headed by a director who
    18  shall be appointed by the executive (mayor) with the advice and
    19  consent of the council. Each municipality shall also have a
    20  solicitor who shall be appointed by the executive (mayor) with
    21  the advice and consent of the council. Each department head and
    22  the solicitor shall serve during the term of office of the
    23  executive (mayor) appointing him, and until the appointment and
    24  qualification of his successor. No member of municipal council
    25  shall head a department.
    26     (d)  Removal of department head.--The executive (mayor) may
    27  remove any department head after notice and an opportunity to be
    28  heard. Prior to removing a department head, the executive
    29  (mayor) shall first file written notice of his intention with
    30  the council. The removal shall become effective 20 days after
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     1  the filing of the notice.
     2     (e)  Department officers and employees.--Department heads
     3  shall appoint subordinate officers and employees within their
     4  departments under procedures established in section 3122
     5  (relating to appointment of subordinate officers and employees).
     6  § 3014.  Department of administration.
     7     (a)  Department heads.--Where a department of administration
     8  is established, it shall be headed by a director. The director
     9  shall be chosen solely on the basis of his executive and
    10  administrative qualifications with special reference to his
    11  actual experience in, or his knowledge of, accepted practice in
    12  respect to the duties of his office. At the time of appointment,
    13  the director need not be a resident of the municipality or this
    14  Commonwealth. He shall have, exercise and discharge the
    15  functions, powers and duties of the department.
    16     (b)  Department functions.--The department, under the
    17  direction and supervision of the executive (mayor), shall have
    18  the following powers and duties:
    19         (1)  To assist in the preparation of the budget.
    20         (2)  To administer a centralized purchasing system.
    21         (3)  To establish and administer a centralized personnel
    22     system.
    23         (4)  To establish and maintain a centralized accounting
    24     system which shall be so designed as to accurately reflect
    25     the assets, liabilities, receipts and expenditures of the
    26     municipality.
    27         (5)  To perform any other duties as council may prescribe
    28     through the administrative ordinance or as the executive
    29     (mayor) may direct.
    30  § 3015.  Budget.
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     1     The municipal budget shall be prepared by the executive
     2  (mayor) with the assistance of the director of the department of
     3  administration or other officer designated by the executive
     4  (mayor).
     5  § 3016.  Form and adoption of budget.
     6     The budget shall be in the form required by council and shall
     7  have appended to it a detailed analysis of the various items of
     8  expenditure and revenue. The budget as submitted and adopted
     9  shall be balanced. Council may reduce any item or items in the
    10  executive's (mayor's) budget by a vote of a majority of the
    11  council, but an increase in any item or items therein shall
    12  become effective only upon an affirmative vote of a majority
    13  plus one of the members of council. Council shall, upon the
    14  introduction of the proposed budget, fix a date for adoption,
    15  which shall except as otherwise provided be not later than
    16  December 31 immediately following.
    17  § 3017.  Amended budget.
    18     During January next following any municipal election, the
    19  executive (mayor) may submit an amended budget to council.
    20  Council shall consider it in the same manner as provided in
    21  section 3016 (relating to form and adoption of budget), but
    22  final consideration of the amended budget shall be completed by
    23  February 15 of the same year.
    24  § 3018.  Council amendments to budget.
    25     Council may amend the budget during January next following
    26  any municipal election. Final adoption of the amended budget
    27  shall be completed by February 15 of the same year.
    28                            SUBCHAPTER B
    29                 EXECUTIVE (MAYOR) - COUNCIL PLAN B
    30  Sec.
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     1  3031.  Designation and applicability of plan.
     2  3032.  Departments.
     3  3033.  Mandatory department of administration.
     4  § 3031.  Designation and applicability of plan.
     5     The form of government provided in this subchapter shall be
     6  known as the "Executive (Mayor) - Council Plan B" and shall,
     7  together with Subchapter F of Chapter 29 (relating to general
     8  provisions and limitations for optional plan municipalities),
     9  Subchapter A of Chapter 30 (relating to executive (mayor)
    10  council plan A) and Subchapter A of Chapter 31 (relating to
    11  officers and employees), with the exception of section 3013(b)
    12  (relating to mayor, departments and department heads), govern
    13  any municipality the voters of which have adopted it pursuant to
    14  this subpart.
    15  § 3032.  Departments.
    16     The municipality shall have a department of administration
    17  and shall have such other departments as council may establish
    18  by ordinance. The administrative functions, powers and duties of
    19  the municipality, other than those vested in the office of the
    20  clerk, treasurer and controller, if provided for, shall be
    21  allocated and assigned among and within the departments except
    22  that the functions specified in section 3014 (relating to
    23  department of administration) shall be assigned to the
    24  department of administration.
    25  § 3033.  Mandatory department of administration.
    26     Under Executive (Mayor) - Council Plan B a department of
    27  administration shall be established.
    28                            SUBCHAPTER C
    29                 EXECUTIVE (MAYOR) - COUNCIL PLAN C
    30  Sec.
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     1  3041.  Designation and applicability of plan.
     2  3042.  Powers and duties of executive.
     3  3043.  Appointment and duties of managing director.
     4  § 3041.  Designation and applicability of plan.
     5     The form of government provided in this subpart shall be
     6  known as the "Executive (Mayor) - Council Plan C" and shall,
     7  together with Subchapter F of Chapter 29 (relating to general
     8  provisions and limitations for optional plan municipalities),
     9  Subchapter A of Chapter 30 (relating to executive (mayor) -
    10  council plan A) and Subchapter A of Chapter 31 (relating to
    11  officers and employees), with the exception of section 3011
    12  (relating to powers and duties of executive), govern any
    13  municipality the voters of which have adopted it pursuant to
    14  this subpart.
    15  § 3042.  Powers and duties of executive.
    16     The executive (mayor) shall enforce the plan and ordinances
    17  of the municipality and all general laws applicable thereto. The
    18  executive shall, annually, report to the council and the public
    19  on the work of the previous year and on the condition and
    20  requirements of the municipal government and shall, from time to
    21  time, make those recommendations for action by the council he
    22  deems in the public interest.
    23  § 3043.  Appointment and duties of managing director.
    24     (a)  General rule.--The executive (mayor) shall appoint, with
    25  the advice and consent of the council, a managing director who
    26  shall supervise the departments of government and who shall be
    27  the contact officer between the mayor and the departments. The
    28  managing director shall make periodic reports with those
    29  recommendations as he deems appropriate to the executive (mayor)
    30  concerning the affairs of municipal government and particularly
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     1  of the departments.
     2     (b)  Removal.--The executive (mayor) may remove a managing
     3  director after notice and an opportunity to be heard. Prior to
     4  removing a managing director, the executive (mayor) shall first
     5  file written notice of his intention with the council. The
     6  removal shall become effective 20 days after the filing of the
     7  notice.
     8                            SUBCHAPTER D
     9                        COUNCIL-MANAGER PLAN
    10  Sec.
    11  3051.  Designation and applicability of plan.
    12  3052.  Officers and employees.
    13  3053.  Election and term of office of elected officials.
    14  3054.  Election and term of office of council members.
    15  3055.  First election of council members.
    16  3056.  Selection of mayor, council president or chairman.
    17  3057.  Appointment and duties of municipal clerk or secretary.
    18  3058.  Powers and duties of council.
    19  3059.  Qualifications of municipal manager.
    20  3060.  Removal of municipal manager from office.
    21  3061.  Inability of municipal manager to perform duties.
    22  3062.  Powers and duties of municipal manager.
    23  3063.  Preparation and adoption of budget.
    24  3064.  Amended budget.
    25  § 3051.  Designation and applicability of plan.
    26     The form of government provided in this subchapter shall be
    27  known as the "Council-Manager Plan" and shall, together with
    28  Subchapter F of Chapter 29 (relating to general provisions and
    29  limitations for optional plan municipalities) and Subchapter A
    30  of Chapter 31 (relating to officers and employees), govern any
    19950S0689B2340                 - 112 -

     1  municipality the voters of which have adopted this plan pursuant
     2  to this subpart.
     3  § 3052.  Officers and employees.
     4     Each municipality under this subchapter shall be governed by
     5  an elected council one member of which shall be the mayor, or
     6  president of council, or chairman chosen under sections 2924
     7  (relating to specificity of recommendations) and 3056 (relating
     8  to selection of mayor, council president or chairman), an
     9  elected district attorney in the case of counties, and an
    10  appointed municipal manager, and, if so provided under the plan,
    11  an elected treasurer, an elected controller and by those other
    12  officers and employees as may be duly appointed pursuant to this
    13  subchapter, general law or ordinance.
    14  § 3053.  Election and term of office of elected officials.
    15     The district attorney in the case of counties and the
    16  treasurer and controller, if provided for and if elected, shall
    17  be elected by the electors at a regular municipal election and
    18  shall serve for a term of four years beginning the first Monday
    19  of January next following the election.
    20  § 3054.  Election and term of office of council members.
    21     The municipal council shall consist of five members unless,
    22  under the authority granted pursuant to section 2924 (relating
    23  to specificity of recommendations), the municipality shall be
    24  governed by a council of three, seven or nine members. Members
    25  of the municipal council shall be elected at large by the
    26  electors unless, pursuant to the authority granted under section
    27  2924, members shall be elected on a district basis in which each
    28  district is as equal in population as is feasible, or on a
    29  combination at large and district basis as determined by the
    30  charter study commission or as specified in an initiative
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     1  petition or ordinance of the governing body under the provisions
     2  of sections 2942 (relating to initiation of amendment by
     3  electors or council), 2943 (relating to petition for referendum
     4  or ordinance proposing amendment) and 2944 (relating to time and
     5  manner of submission of question), at a regular municipal
     6  election. The members shall serve for a term of four years,
     7  except as provided in this subchapter, beginning on the first     <--
     8  Monday of January next following their election.
     9  § 3055.  First election of council members.
    10     At the first municipal election following the adoption by a
    11  municipality of this charter plan, council members shall be
    12  elected and shall serve for the terms as provided in section
    13  3162 (relating to status and term of office of officials).
    14  § 3056.  Selection of mayor, council president or chairman.
    15     (a)  General rule.--On the first Monday of January following
    16  the municipal election, the members of the municipal council
    17  shall assemble at the usual place of meeting, organize and elect
    18  one of their number as mayor or president of council or chairman
    19  unless otherwise provided. The mayor or president of council or
    20  chairman shall be chosen by ballot by majority vote of all
    21  members of the municipal council. If the members shall be
    22  unable, within five ballots to be taken within two days of the
    23  organization meeting, to elect a mayor or president of council
    24  or chairman, then the member who in the election for members of
    25  the municipal council received the greatest number of votes
    26  shall be the mayor, president of council or chairman. If that
    27  person declines to accept the office, then the person receiving
    28  the next highest vote shall be the mayor, president of council
    29  or chairman, and so on, until the office is filled. The mayor,
    30  or president of council, or chairman shall preside at all
    19950S0689B2340                 - 114 -

     1  meetings of the municipal council and shall have a voice and
     2  vote in its proceedings.
     3     (b)  Election of mayor.--On the recommendation of the
     4  government study commission as provided under section 2924
     5  (relating to specificity of recommendations), or as specified in
     6  an initiative petition or ordinance of the governing body as
     7  authorized by sections 2942 (relating to initiation of amendment
     8  by electors or council), 2943 (relating to petition for
     9  referendum or ordinance proposing amendment) and 2944 (relating
    10  to time and manner of submission of question), the mayor shall
    11  be elected directly by the electors at the regular municipal
    12  election in lieu of being chosen as provided in subsection (a).
    13  § 3057.  Appointment and duties of municipal clerk or secretary.
    14     A municipal clerk or secretary shall be appointed in the
    15  manner set forth in the administrative ordinance as provided in
    16  section 3146 (relating to passage of administrative ordinance).
    17  The municipal clerk or secretary shall serve as clerk of the
    18  council, keep its minutes and records of its proceedings,
    19  maintain and compile its ordinances and resolutions as this
    20  subpart requires and perform any functions as may be required by
    21  law or ordinance. The municipal clerk shall, prior to his
    22  appointment, have been qualified by training or experience to
    23  perform the duties of the office.
    24  § 3058.  Powers and duties of council.
    25     (a)  General rule.--All powers as provided by laws applicable
    26  to that class of municipality shall be vested in the municipal
    27  council, except as otherwise provided by this subchapter, and
    28  the council shall provide for the exercise thereof and for the
    29  performance of all duties imposed on the municipality by law.
    30     (b)  Adoption of administrative ordinance.--The council shall
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     1  by ordinance adopt an administrative ordinance defining the
     2  responsibilities of the municipal departments and agencies as it
     3  deems necessary and proper for the efficient conduct of
     4  municipal affairs.
     5     (c)  Appointment of municipal manager.--The municipal council
     6  shall appoint a municipal manager. The office of municipal
     7  manager and municipal clerk or secretary may be held by the same
     8  person.
     9     (d)  Investigations.--The council may make investigations
    10  into the affairs of the municipality and the conduct of any
    11  municipal department, office or agency.
    12     (e)  Administrative departments, boards and offices.--The
    13  municipal council shall continue or create, and determine and
    14  define, the powers and duties of any executive and
    15  administrative departments, boards and offices, in addition to
    16  those provided for in this subpart, as it deems necessary for
    17  the proper and efficient conduct of the affairs of the
    18  municipality, including the office of deputy manager. Any
    19  department, board or office so continued or created may be
    20  abolished by the municipal council. No member of municipal
    21  council shall head an administrative department.
    22     (f)  Additional powers and limitations.--It is the intention
    23  of this subchapter that the municipal council shall act in all
    24  matters as a body, and it is contrary to the spirit of this
    25  subchapter for any of its members to seek individually to
    26  influence the official acts of the municipal manager or any
    27  other officer, or for the council or any of its members to
    28  direct or request the appointment of any person to or his
    29  removal from office, or to interfere in any way with the
    30  performance by the officers of their duties. The council and its
    19950S0689B2340                 - 116 -

     1  members shall deal with the administrative service solely
     2  through the municipal manager and shall not give orders to any
     3  subordinates of the municipal manager, either publicly or
     4  privately. This subchapter does not prevent the municipal
     5  council from appointing committees of its own members or of
     6  citizens to conduct investigations into the conduct of any
     7  officer or department, or any matter relating to the welfare of
     8  the municipality, and delegating to those committees such powers
     9  of inquiry as the municipal council deems necessary.
    10  § 3059.  Qualifications of municipal manager.
    11     The municipal manager shall be chosen by the council on the
    12  basis of his executive and administrative qualifications. At the
    13  time of his appointment, he need not be a resident of the
    14  municipality or this Commonwealth. The municipal manager shall
    15  not hold any elective governmental office.
    16  § 3060.  Removal of municipal manager from office.
    17     The municipal manager shall be appointed for an indefinite
    18  term and may be removed by a majority vote of the council. At
    19  least 30 days before the removal becomes effective, the council
    20  shall notify the municipal manager of its decision to remove him
    21  from office, by a majority vote of its members, stating the
    22  reasons for his removal. The municipal manager may reply in
    23  writing and may request a public hearing, which shall be held
    24  not earlier than 20 days nor later than 30 days after the filing
    25  of the request. After the public hearing, if one is requested,
    26  and after full consideration, the council by majority vote of
    27  its members may adopt a final resolution of removal. By the
    28  preliminary resolution, the council may suspend the municipal
    29  manager from duty, but may, in any case, cause to be paid
    30  immediately any unpaid balance of his salary and his salary for
    19950S0689B2340                 - 117 -

     1  the next three calendar months.
     2  § 3061.  Inability of municipal manager to perform duties.
     3     The municipal manager may designate a qualified
     4  administrative officer of the municipality to perform his duties
     5  during his temporary absence or disability. In the event of his
     6  failure to make a designation, or if the absence or disability
     7  continues more than 30 days, the council may appoint an officer
     8  of the municipality to perform the duties of the manager during
     9  the absence or disability until the manager returns or his
    10  disability ceases.
    11  § 3062.  Powers and duties of municipal manager.
    12     The municipal manager shall have the following powers and
    13  duties:
    14         (1)  To be the chief executive and administrative
    15     official of the municipality.
    16         (2)  To execute all laws and ordinances.
    17         (3)  To appoint and remove department heads and the
    18     deputy manager, if one is authorized by council, and appoint
    19     subordinate officers and employees under procedures
    20     established in section 3122 (relating to appointment of
    21     subordinate officers and employees).
    22         (4)  To negotiate contracts for the municipality, subject
    23     to the approval of the municipal council, make
    24     recommendations concerning the nature and location of
    25     municipal improvements and execute municipal improvements as
    26     determined by the municipal council.
    27         (5)  To assure that all terms and conditions imposed in
    28     favor of the municipality or its inhabitants in any statute,
    29     public utility franchise or other contract are faithfully
    30     kept and performed and, upon knowledge of any violation, to
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     1     call the same to the attention of the municipal council.
     2         (6)  To prepare the agenda for and attend all meetings of
     3     the municipal council with the right to take part in the
     4     discussions, but without the right to vote.
     5         (7)  To make such recommendations to the council
     6     concerning policy formulation as he deems desirable and keep
     7     the council and the public informed as to the conduct of
     8     municipal affairs.
     9         (8)  To prepare and submit the annual budget to the
    10     council together with such explanatory comment as he deems
    11     desirable and to administer the municipal budget.
    12         (9)  To perform such other duties as may be required of
    13     the municipal manager by ordinance or resolution of the
    14     municipal council.
    15         (10)  To be responsible to the council for carrying out
    16     all policies established by it and for the proper
    17     administration of all affairs of the municipality within the
    18     jurisdiction of the council.
    19  § 3063.  Preparation and adoption of budget.
    20     The municipal manager shall submit to council his recommended
    21  budget, together with any explanatory comment or statement he
    22  deems desirable. The budget shall be in such form as is required
    23  by council for municipal budgets and shall in addition have
    24  appended thereto a detailed analysis of the various items of
    25  expenditure and revenue. The budget as submitted and adopted
    26  shall be balanced. Council shall upon introduction of the
    27  proposed budget fix a date for adoption thereof which shall be
    28  not later than December 31 immediately following submission.
    29  § 3064.  Amended budget.
    30     During January next following any municipal election, council
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     1  may request the manager to submit an amended budget to council
     2  which shall consider it in the same manner as provided in
     3  section 3063 (relating to preparation and adoption of budget),
     4  except that final adoption of the amended budget shall not be
     5  later than February 15 of the same year.
     6                            SUBCHAPTER E
     7                      SMALL MUNICIPALITY PLAN
     8  Sec.
     9  3071.  Designation and applicability of plan.
    10  3072.  Officers.
    11  3073.  Election of council members.
    12  3074.  Organization of council.
    13  3075.  Powers and duties of council.
    14  3076.  Municipal clerk or secretary, solicitor and agencies.
    15  3077.  Powers and duties of executive.
    16  3078.  Appointment of officers and employees by executive.
    17  3079.  Preparation and adoption of budget.
    18  3080.  Amended budget.
    19  § 3071.  Designation and applicability of plan.
    20     The form of government provided in this subchapter shall be
    21  known as the "Small Municipality Plan." It may be adopted by any
    22  municipality having a population of less than 7,500 inhabitants
    23  by the last Federal census. The plan, together with Subchapter F
    24  of Chapter 29 (relating to general provisions and limitations
    25  for optional plan municipalities) and Subchapter A of Chapter 31
    26  (relating to officers and employees), shall govern any
    27  municipality the voters of which have adopted it pursuant to
    28  this subpart.
    29  § 3072.  Officers.
    30     Each municipality shall be governed by an elected executive
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     1  (mayor) and council members, an elected district attorney in the
     2  case of counties and, if so provided under the plan, an elected
     3  treasurer or elected controller and any other officers as shall
     4  be appointed pursuant to this subchapter, general law or
     5  ordinance.
     6  § 3073.  Election of council members.
     7     The council shall consist of the executive (mayor), who shall
     8  be elected at large, and two council members unless pursuant to
     9  the authority granted under section 2924 (relating to
    10  specificity of recommendations) the municipality is governed by
    11  an executive (mayor) and four council members, an executive
    12  (mayor) and six council members, or an executive (mayor) and
    13  eight council members. Members of the council shall be elected
    14  at large unless the plan provides that members shall be elected
    15  on a district basis in which each district is as equal in
    16  population as is feasible, or on a combination at large and
    17  district basis as determined by the government study commission
    18  or as specified in an initiative petition or ordinance of the
    19  governing body under the provisions of sections 2942 (relating
    20  to initiation of amendment by electors or council), 2943
    21  (relating to petition for referendum or ordinance proposing
    22  amendment) and 2944 (relating to time and manner of submission
    23  of question), at a regular municipal election by the voters of
    24  the municipality. The members of the council shall serve a term
    25  of four years beginning on the first Monday in January next
    26  following their election, except as provided in this subpart.
    27  § 3074.  Organization of council.
    28     On the first Monday of January following the regular
    29  municipal election, the members of the council shall assemble at
    30  the usual place of meeting and organize. The executive (mayor)
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     1  shall preside at all meetings of the council and shall have a
     2  voice and vote on its proceedings. The council shall select from
     3  among its members a president of the council who shall serve in
     4  place of the executive (mayor) in the event of his absence or
     5  disability.
     6  § 3075.  Powers and duties of council.
     7     The legislative power of the municipality shall be exercised
     8  by the council, except as may be otherwise provided by general
     9  law. A majority of the whole number of the council shall
    10  constitute a quorum for the transaction of business, but a
    11  smaller number may meet and adjourn from time to time.
    12  § 3076.  Municipal clerk or secretary, solicitor and agencies.
    13     (a)  Municipal clerk or secretary.--A municipal clerk or
    14  secretary shall be appointed in the manner set forth in the
    15  administrative ordinance, as provided pursuant to section 3146
    16  (relating to passage of administrative ordinance). The municipal
    17  clerk or secretary shall serve as clerk of the council, keep its
    18  minutes and records of its proceedings, maintain and compile its
    19  ordinances and resolutions as this subpart requires and perform
    20  any functions as may be required by law. The clerk shall, prior
    21  to his appointment, have been qualified by training or
    22  experience to perform the duties of the office.
    23     (b)  Solicitor and agencies.--The council may, consistent
    24  with statutes applicable to that class of municipality, provide
    25  for the manner of appointment of a solicitor, any planning
    26  board, zoning board of adjustment, zoning hearing board or
    27  personnel board in the municipality and may create commissions
    28  and other bodies with advisory powers.
    29  § 3077.  Powers and duties of executive.
    30     The executive power of the municipality shall be exercised by
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     1  the executive (mayor). The executive shall see that all laws and
     2  ordinances in force and effect within the municipality are
     3  observed. He shall address the council and report to the
     4  residents, annually and at any other times as he deems
     5  desirable, on the condition of the municipality and upon its
     6  problems of government. The executive (mayor) shall also appoint
     7  a finance committee of the council, which shall consist of one
     8  or more council members, and may appoint and designate other
     9  committees of council of similar composition.
    10  § 3078.  Appointment of officers and employees by executive.
    11     The executive (mayor) shall appoint subordinate officers and
    12  employees with the advice and consent of council under
    13  procedures established in section 3122 (relating to appointment
    14  of subordinate officers and employees), except that, in
    15  counties, the office of prothonotary and clerk of courts,
    16  register of wills and clerk of orphans court shall be filled by
    17  appointment by the president judge of the appropriate court with
    18  advice and consent of a majority of the council.
    19  § 3079.  Preparation and adoption of budget.
    20     The municipal budget shall be prepared by the executive
    21  (mayor) and shall be submitted to council in the form required
    22  by council. The budget as submitted and adopted shall be
    23  balanced. Council shall, upon introduction of the proposed
    24  budget, fix a date for adoption thereof which shall be not later
    25  than December 31 immediately following.
    26  § 3080.  Amended budget.
    27     During the month of January next following any municipal
    28  elections, the executive (mayor), upon his own initiative or at
    29  the request of council, may submit an amended budget to council,
    30  which shall consider it in the same manner as provided in
    19950S0689B2340                 - 123 -

     1  section 3079 (relating to preparation and adoption of budget),
     2  except that final adoption of the amended budget shall not be
     3  later than February 15 of the same year.
     4                            SUBCHAPTER F
     5                        OPTIONAL COUNTY PLAN
     6  Sec.
     7  3091.  Designation and applicability of plan.
     8  3092.  County officers.
     9  3093.  Powers.
    10  3094.  Additional options for election of county sheriff.
    11  3095.  Approval of plan.
    12  § 3091.  Designation and applicability of plan.
    13     The form of government provided in this subpart shall be
    14  known as the "Optional County Plan" and shall, together with
    15  Subchapter F of Chapter 29 (relating to general provisions and
    16  limitations for optional plan municipalities) and Subchapter A
    17  of Chapter 31 (relating to officers and employees), govern any
    18  county the voters of which have adopted this plan pursuant to
    19  this subpart. This option shall be available only to counties.
    20  § 3092.  County officers.
    21     (a)  Enumeration.--The county officers shall be as follows:
    22         (1)  County commissioner.
    23         (2)  Controller or auditor.
    24         (3)  District attorney.
    25         (4)  Public defender.
    26         (5)  Treasurer.
    27         (6)  Sheriff.
    28         (7)  Register of wills.
    29         (8)  Recorder of deeds.
    30         (9)  Prothonotary.
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     1         (10)  Clerk of the courts.
     2     (b)  Election and term of office.--County officers, except
     3  for public defenders, who shall be appointed as provided by law,
     4  shall be elected at the municipal election and shall hold their
     5  offices for the term of four years, beginning on the first
     6  Monday of January next after their election, and until their
     7  successors are duly qualified. Vacancies shall be filled in the
     8  manner provided by law.
     9     (c)  Salaries and fees.--County officers shall be paid only
    10  by salary as provided by law for services performed for the
    11  county or any other governmental unit. Fees incidental to the
    12  conduct of any county office shall be payable directly to the
    13  county or the Commonwealth or as otherwise provided by law.
    14     (d)  County commissioners.--Three county commissioners shall
    15  be elected in each county. In the election of these officers,
    16  each qualified elector shall vote for not more than two persons,
    17  and the three persons receiving the highest number of votes
    18  shall be elected.
    19     (e)  Coroner or medical examiner.--The coroner or medical
    20  examiner shall be a statutory office elected at the municipal
    21  election and shall hold the office for the term of four years,
    22  beginning on the first Monday of January next after election,
    23  and until his successor is duly qualified. He shall be paid only
    24  by salary as provided by law. Vacancies shall be filled in the
    25  manner provided by law.
    26     (f)  Jury commissioners.--Jury commissioners shall be
    27  statutory officers and shall be elected at the municipal
    28  election and shall hold their office for the term of four years,
    29  beginning on the first Monday of January next after election,
    30  and until their successors are duly qualified. The salary board
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     1  shall fix the salary of the jury commissioners. Vacancies in the
     2  office of jury commissioner shall be filled by the president
     3  judge of the court of common pleas.
     4  § 3093.  Powers.
     5     All county officers may exercise those powers granted by
     6  general law to county offices of the class of county to which it
     7  belongs.
     8  § 3094.  Additional options for election of county sheriff.
     9     A government study commission created and constituted as
    10  provided in Subchapter B of Chapter 29 (relating to procedure
    11  for adoption of a home rule charter or optional plan of
    12  government) for counties, or an initiative petition or ordinance
    13  of the governing body as authorized by sections 2942 (relating
    14  to initiation of amendment by electors or council), 2943
    15  (relating to petition for referendum or ordinance proposing
    16  amendment) and 2944 (relating to time and manner of submission
    17  of question), may recommend and cause to be placed on the
    18  ballot, as a part of the question submitted to the voters for
    19  approval, additional options as part of the optional plans as
    20  set forth in this chapter providing for the election of the
    21  county sheriff.
    22  § 3095.  Approval of plan.
    23     If the optional plan, including an additional option or
    24  options as provided in section 3091 (relating to designation and
    25  applicability of plan), is approved by the voters, the county
    26  shall be governed by the provisions of the subchapter providing
    27  the basic optional plan and by the provisions of Subchapter F of
    28  Chapter 29 (relating to general provisions and limitations for
    29  optional plan municipalities) and Subchapter A of Chapter 31
    30  (relating to officers and employees), except that the elected
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     1  sheriff shall be subject to the provisions pertaining to that
     2  office as provided in this subchapter.
     3                             CHAPTER 31
     4            GENERAL PROVISIONS COMMON TO OPTIONAL PLANS
     5  Subchapter
     6     A.  Officers and Employees
     7     B.  Treasurer
     8     C.  Appointment Power and Personnel
     9     D.  Filling Vacancies in Elected Office
    10     E.  Legislation by Council
    11     F.  Audit and Control
    12     G.  Transition to Optional Plan Government
    13     H.  Repeal of Optional Plan
    14                            SUBCHAPTER A
    15                       OFFICERS AND EMPLOYEES
    16  Sec.
    17  3101.  Adverse interest in contracts for purchase or services.
    18  3102.  Acceptance of services at more favorable terms.
    19  3103.  Gift or promise of thing of value to influence
    20         political support.
    21  3104.  Refusal or failure to appear or testify before court.
    22  § 3101.  Adverse interest in contracts for purchase or services.
    23     (a)  General rule.--If a municipal officer or official
    24  elected or appointed knows or by the exercise of reasonable
    25  diligence should know that he is interested to any appreciable
    26  degree, either directly or indirectly, in any contract for the
    27  sale or furnishing of any personal property for the use of the
    28  municipality, or for any services to be rendered for the
    29  municipality involving the expenditure of more than $300 in any
    30  year, he shall notify council. Any such contract shall not be
    19950S0689B2340                 - 127 -

     1  passed and approved by council except by an affirmative vote of
     2  at least three-fourths of the members. If the interested officer
     3  is a member of council, he shall refrain from voting upon the
     4  contract.
     5     (b)  Exception.--This section does not apply to cases where
     6  the officer or official is an employee of the person, firm or
     7  corporation to which money is to be paid in a capacity with no
     8  possible influence on the transaction and in which he cannot
     9  possibly be benefited either financially or in any other
    10  material manner.
    11     (c)  Penalties.--Any officer or official who knowingly
    12  violates this section shall be liable to the municipality upon
    13  his bond, if any, or personally, to the extent of the damage
    14  shown to be sustained by the municipality and to ouster from
    15  office, and commits a misdemeanor of the third degree and shall,
    16  upon conviction, be sentenced to pay a fine not exceeding $500,
    17  or imprisonment not exceeding one year, or both.
    18  § 3102.  Acceptance of services at more favorable terms.
    19     An officer or employee shall not accept or receive, directly
    20  or indirectly, from any person operating within the territorial
    21  limits of a municipality any interurban railway, bus line,
    22  street railway, gas works, waterworks, electric light or power
    23  plant, heating plant, telegraph line, telephone exchange or
    24  other business using or operating under a public franchise, any
    25  frank, free pass, free ticket or free service, or accept or
    26  receive, directly or indirectly, from any person, any other
    27  service upon terms more favorable than is granted to the public
    28  generally, except that the prohibition of free transportation
    29  shall not apply to police officers or firefighters in uniform.
    30  Free service to the municipal officials provided by any
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     1  franchise or ordinance shall not be affected by this section.
     2  § 3103.  Gift or promise of thing of value to influence
     3             political support.
     4     (a)  General rule.--A candidate for office, appointment or
     5  employment, or an officer, appointee or employee in any
     6  municipality shall not, directly or indirectly, give or promise
     7  to any person any office, position, employment, benefit or
     8  anything of value for the purpose of influencing or obtaining
     9  the political support, aid or vote of any person.
    10     (b)  Penalty.--Any person who violates subsection (a) shall
    11  be disqualified to hold the office or employment to which he may
    12  be or may have been elected or appointed.
    13  § 3104.  Refusal or failure to appear or testify before court.
    14     Any person elected or appointed to any office or position in
    15  a municipality governed under this subpart who, after lawful
    16  notice or process, willfully refuses or fails to appear before
    17  any court, any legislative committee or the Governor, or having
    18  appeared refuses to testify or to answer any question regarding
    19  the property, government or affairs of the municipality, or
    20  regarding his nomination, election, appointment or official
    21  conduct on the ground that his answer would tend to incriminate
    22  him, or refuses to waive immunity from prosecution on account of
    23  any matter in relation to which he may be asked to testify, may
    24  be removed from office by the council of the municipality.
    25                            SUBCHAPTER B
    26                             TREASURER
    27  Sec.
    28  3111.  Selection and duties of municipal treasurer.
    29  § 3111.  Selection and duties of municipal treasurer.
    30     (a)  General rule.--Under any of the optional plans as set
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     1  forth in this subpart, except for the plan set forth in
     2  Subchapter F of Chapter 30 (relating to optional county plan),
     3  the office of municipal treasurer may be omitted, or may be
     4  filled by appointment or by election, as provided in the plan.
     5  If the office of municipal treasurer is to be filled by
     6  appointment, the appointment shall be made in accordance with
     7  the appointment procedures for other department heads.
     8     (b)  Powers and duties of elected treasurer.--The municipal
     9  treasurer, if elected, shall perform the functions and duties
    10  and have the powers relating to the collection, receiving,
    11  safekeeping and payment over of public moneys, including
    12  municipal, county, institution district and school district
    13  taxes, as provided by law and shall have any other functions,
    14  powers and duties assigned to him by the executive of the
    15  municipality.
    16                            SUBCHAPTER C
    17                  APPOINTMENT POWER AND PERSONNEL
    18  Sec.
    19  3121.  Appointment of members of boards and commissions.
    20  3122.  Appointment of subordinate officers and employees.
    21  § 3121.  Appointment of members of boards and commissions.
    22     The appointment power of the chief executive of the
    23  municipality under any of the plans authorized by this subpart
    24  shall include the appointment of members of boards and
    25  commissions authorized by this subpart, by law, or by action of
    26  municipal council. All such appointments shall be with the
    27  advice and consent of a majority of municipal council.
    28  § 3122.  Appointment of subordinate officers and employees.
    29     (a)  General rule.--Appointments and promotions of
    30  subordinate officers and employees within departments shall be
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     1  made by the department head on the basis of a personnel system
     2  which shall include written procedures for appointment and
     3  promotion based on merit and fitness as demonstrated by
     4  examination or other evidence of competence for the position.
     5     (b)  Personnel rules.--The personnel system shall be governed
     6  by personnel rules which shall be prepared by the executive
     7  (mayor) or manager and submitted to the municipal council which
     8  shall adopt them with or without amendments unless otherwise
     9  provided for or arrived at by collective bargaining. The
    10  personnel rules may provide for:
    11         (1)  The classification of all municipal positions, based
    12     on the duties, authority and responsibility of each position,
    13     with adequate provision for reclassification of any position
    14     whenever warranted by change of circumstances.
    15         (2)  A pay plan for all municipal positions.
    16         (3)  Methods for determining the merit and fitness of
    17     candidates for appointment or promotion.
    18         (4)  The policies and procedures regulating reduction in
    19     force and disciplinary action, including suspension and
    20     removal of employees.
    21         (5)  The hours of work and provisions for sick and
    22     vacation leave and holidays and overtime compensation.
    23         (6)  Grievance procedures, including procedures for the
    24     hearing of grievances.
    25         (7)  Other practices and procedures necessary to the
    26     administration of the municipal personnel system.
    27                            SUBCHAPTER D
    28                FILLING VACANCIES IN ELECTED OFFICE
    29  Sec.
    30  3131.  Applicability of subchapter.
    19950S0689B2340                 - 131 -

     1  3132.  Manner of filling vacancies in office.
     2  § 3131.  Applicability of subchapter.
     3     This subchapter shall apply to the filling of vacancies in
     4  elected office in all optional plans and options except those
     5  set forth in Subchapter F of Chapter 30 (relating to optional
     6  county plan).
     7  § 3132.  Manner of filling vacancies in office.
     8     (a)  Members of council.--
     9         (1)  If a vacancy exists in the municipal council, the
    10     municipal council shall, by a majority of its remaining
    11     members, fill the vacancy, within 30 days thereafter, by
    12     electing a qualified person to serve until that first Monday
    13     of January when his successor is duly sworn into office for
    14     the remainder of the term of the person originally elected to
    15     the office. The successor shall be elected at the next
    16     municipal election occurring at least 50 days after the
    17     vacancy begins.
    18         (2)  In case vacancies should exist whereby the offices
    19     of a majority or more members of the municipal council become
    20     vacant, the remaining members shall fill the vacancies, one
    21     at a time, giving each new appointee reasonable notice of his
    22     appointment as will enable him to meet and act with the then
    23     qualified member or members of the municipal council in
    24     making further appointments until a bare majority of members
    25     of municipal council members have been qualified. At that
    26     time these members shall appoint persons to fill the
    27     remaining vacancies at a meeting attended by the majority
    28     members of municipal council, such appointees to receive a
    29     majority of the votes of the members present at the meeting.
    30     Each person selected to fill the vacancy or vacancies shall
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     1     hold his office as provided in this subsection.
     2         (3)  If, by reason of a tie vote or otherwise, the
     3     vacancy shall not have been filled by the remaining members
     4     of municipal council within the time as limited in this
     5     subsection, the court of common pleas, upon the petition of
     6     ten or more qualified electors, shall fill the vacancy by the
     7     appointment of a qualified person for the portion of the
     8     unexpired term as provided in this subsection.
     9     (b)  Other officers.--
    10         (1)  If a vacancy occurs in the office of executive
    11     (mayor), municipal treasurer, if elected, municipal
    12     controller, if elected, county district attorney or county
    13     sheriff, if elected, the municipal council shall fill the
    14     vacancy within 30 days thereafter by choosing an executive
    15     (mayor), a municipal treasurer, a municipal controller, a
    16     county district attorney or a county sheriff, as the case may
    17     be, to serve until his successor is elected by the qualified
    18     electors at the next municipal election, occurring at least
    19     50 days after the vacancy occurs, and is duly sworn into
    20     office. The person so elected shall serve from the first
    21     Monday of January next succeeding his election for the
    22     remainder of the term of the person originally elected to the
    23     office.
    24         (2)  If, by reason of a tie vote or otherwise, a vacancy
    25     in the office of executive (mayor), treasurer, controller,
    26     county district attorney or county sheriff has not been
    27     filled by council within the time as limited in this
    28     subsection, the court of common pleas, upon petition of ten
    29     or more qualified electors, shall fill the vacancy by the
    30     appointment of a qualified person for the portion of the
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     1     unexpired term as provided in this subsection.
     2                            SUBCHAPTER E
     3                       LEGISLATION BY COUNCIL
     4  Sec.
     5  3141.  Regular and special meetings of council.
     6  3142.  Procedure and functions of council.
     7  3143.  Adoption of ordinances.
     8  3144.  Recording and compilation of ordinances and resolutions.
     9  3145.  Filing and publication of rules and regulations.
    10  3146.  Passage of administrative ordinance.
    11  § 3141.  Regular and special meetings of council.
    12     The council shall, by ordinance or resolution, designate the
    13  time of holding regular meetings which shall be at least
    14  monthly. The executive (mayor) or the president of council may
    15  and, upon written request of a majority of the members of the
    16  council, shall call a special meeting of the council. In the
    17  call, he shall designate the purpose of the special meeting and
    18  no other business shall be considered. All meetings of the
    19  council shall be open to the public. The municipal clerk or
    20  secretary shall keep a journal of its proceedings and record the
    21  minutes of every meeting.
    22  § 3142.  Procedure and functions of council.
    23     (a)  Rules of procedure.--Council shall determine its own
    24  rules of procedure, not inconsistent with ordinance or statute.
    25  A majority of the whole number of members of the council shall
    26  constitute a quorum, and no ordinance shall be adopted by the
    27  council without the affirmative vote of a majority of all the
    28  members of the council.
    29     (b)  Adoption of ordinances and resolutions.--Each ordinance
    30  or resolution shall be presented and considered as determined by
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     1  council rules of procedure. The vote upon every motion,
     2  resolution or ordinance shall be taken by roll call, and the
     3  yeas and nays shall be entered on the minutes. The minutes of
     4  each meeting shall be signed by the officer presiding at the
     5  meeting and by the municipal clerk or secretary.
     6     (c)  Administrative ordinance.--Council shall adopt by
     7  ordinance an administrative ordinance which shall provide for
     8  the establishment and filling of additional administrative
     9  offices which it deems necessary and shall provide for
    10  administrative procedures not otherwise provided for in this
    11  subpart or by general law.
    12     (d)  Compensation of controller and treasurer.--The
    13  compensation of the controller and treasurer shall be fixed by
    14  the council.
    15  § 3143.  Adoption of ordinances.
    16     (a)  General rule.--Except as may otherwise be provided in
    17  this subpart, all ordinances shall be adopted and published as
    18  provided by law. Any ordinance may incorporate by reference any
    19  standard technical regulation or code, official or unofficial,
    20  which need not be so published whenever ten copies of the
    21  regulations or code have been placed on file in the office of
    22  the municipal clerk or secretary and in the office of the body
    23  or department charged with the enforcement of the ordinance.
    24     (b)  Effective date.--No ordinance, other than the local
    25  budget ordinance, shall take effect less than ten days after its
    26  final passage by council and approval by the executive (mayor)
    27  where that approval is required, unless the council adopts a
    28  resolution declaring an emergency and at least a majority plus
    29  one of all the members of the council vote in favor of the
    30  resolution.
    19950S0689B2340                 - 135 -

     1  § 3144.  Recording and compilation of ordinances and
     2             resolutions.
     3     The municipal clerk or secretary shall record all ordinances
     4  and resolutions adopted by council and, at the close of each
     5  year, with the advice and assistance of the municipal solicitor,
     6  shall bind, compile or codify all the ordinances and
     7  resolutions, or true copies thereof, which then remain in force
     8  and effect. He shall also properly index the record books,
     9  compilation or codification of ordinances and resolutions.
    10  § 3145.  Filing and publication of rules and regulations.
    11     No rule or regulation made by any department, officer, agency
    12  or authority of the municipality, except as it relates to the
    13  organization or internal management of the municipal government
    14  or a part thereof, shall take effect until it is filed either
    15  with the municipal clerk or secretary or in any other manner
    16  provided by ordinance. The council shall provide for the prompt
    17  publication of such rules and regulations.
    18  § 3146.  Passage of administrative ordinance.
    19     The council shall prepare and pass an administrative
    20  ordinance which shall provide for the manner of appointment of a
    21  solicitor, clerk or secretary, may create commissions and other
    22  bodies with advisory powers and may include additional
    23  provisions relating to the internal structure of the
    24  municipality as long as the provisions of the administrative
    25  ordinance are not in conflict with this subpart.
    26                            SUBCHAPTER F
    27                         AUDIT AND CONTROL
    28  Sec.
    29  3151.  Exercise of financial management control functions.
    30  3152.  Post audits by independent auditor.
    19950S0689B2340                 - 136 -

     1  3153.  Selection of controller.
     2  § 3151.  Exercise of financial management control functions.
     3     The council shall provide by separate ordinance or in the
     4  administrative ordinance for the exercise of a control function
     5  in the management of the finances of the municipality by the
     6  municipal controller or an independent auditor or, in the case
     7  of the optional plan set forth in Subchapter F of Chapter 30
     8  (relating to optional county plan), by the controller or
     9  auditors.
    10  § 3152.  Post audits by independent auditor.
    11     The council may provide for annual post audits of all
    12  accounts by an independent auditor who shall be a certified
    13  public accountant registered in this Commonwealth or a firm of
    14  certified public accountants registered in this Commonwealth.
    15  § 3153.  Selection of controller.
    16     Under any of the optional plans as set forth in this subpart,
    17  except for the plans set forth in Subchapter F of Chapter 30
    18  (relating to optional county plan), the office of controller may
    19  be omitted or it may be filled by election by the electors
    20  rather than by appointment when recommended by the government
    21  study commission and adopted by the electors. If the office of
    22  controller is to be filled by appointment, a controller shall be
    23  appointed for an indefinite term by a majority of the members of
    24  the governing body.
    25                            SUBCHAPTER G
    26               TRANSITION TO OPTIONAL PLAN GOVERNMENT
    27  Sec.
    28  3161.  Applicability of plan.
    29  3162.  Status and term of office of officials.
    30  3163.  Compensation of elected officials.
    19950S0689B2340                 - 137 -

     1  3164.  Status of existing ordinances and resolutions.
     2  3165.  Abolishment of existing appointive offices.
     3  3166.  Pending actions and proceedings.
     4  § 3161.  Applicability of plan.
     5     Whenever the electors of a municipality adopt any of the
     6  optional plans provided by this subpart at any election for that
     7  purpose, the municipality shall be governed under the provisions
     8  of that plan, the provisions of law applicable to that class of
     9  municipality and this subpart from the first Monday in January
    10  following the municipal election occurring after the next
    11  succeeding primary election, except as provided in section 2924
    12  (c) (relating to specificity of recommendations).
    13  § 3162.  Status and term of office of officials.
    14     (a)  Existing elected official.--Any elected municipal
    15  official in office at the time of the adoption of any optional
    16  plan provided by this subpart shall continue in office only
    17  until the new plan of government goes into effect as provided in
    18  section 3161 (relating to applicability of plan), except as
    19  otherwise provided in subsections (c) and (d).
    20     (b)  Members of council.--At the municipal election next
    21  succeeding the adoption of one of the optional plans provided
    22  for in this subpart, if four or fewer council members are
    23  elected, they shall serve for terms of four years. If five are
    24  elected, the four successful candidates receiving the highest
    25  percentage of the votes cast for the office to which they are
    26  elected shall serve for terms of four years, and the candidate
    27  receiving the next highest percentage of votes shall serve for a
    28  term of two years. If six or more council members are elected,
    29  the five candidates receiving the highest percentage of the
    30  votes cast for the office to which they are elected shall serve
    19950S0689B2340                 - 138 -

     1  for terms of four years, and the remaining successful candidates
     2  receiving the next highest percentage of votes shall serve for
     3  terms of two years. Thereafter, all council members shall be
     4  elected for terms of four years. Where the term of office for
     5  council members under the adopted plan is different from the
     6  term of office for council members under an existing form of
     7  government, the terms of office for council members so elected
     8  shall be established so that, at each subsequent municipal
     9  election at which council members are elected, the number of
    10  council members to be elected shall be as nearly equal as
    11  possible to the number of council members to be elected at every
    12  other regular municipal election at which council members are
    13  elected.
    14     (c)  Treasurer, controller, district attorney and sheriff.--
    15  If an elected municipal treasurer or elected municipal
    16  controller, elected county district attorney or elected county
    17  sheriff is in office at the time of the adoption of an optional
    18  plan under the provisions of this subpart, a treasurer,
    19  controller, district attorney or sheriff, as the case may be,
    20  shall not be elected or appointed to take office until after the
    21  resignation, death, removal or expiration of the term of the
    22  incumbent in the office. At the expiration of the term of the
    23  incumbent, a treasurer, controller, district attorney or
    24  sheriff, as the case may be, shall be elected or appointed for
    25  the full term for the office as provided by the optional plan
    26  adopted.
    27     (d)  Continuation of existing members of council in office.--
    28  Any member of a municipal governing body in office at the time
    29  of the adoption of an optional plan shall remain in office,
    30  continuing as an at-large or district council member, as the
    19950S0689B2340                 - 139 -

     1  case may be, until the expiration of this term in office and
     2  shall receive the compensation provided by law at that time:
     3         (1)  If that council member was elected on an at-large
     4     basis, the newly adopted optional plan provides for a total
     5     number of at-large council members equal to or exceeding the
     6     total number of at-large council members under the existing
     7     form of government.
     8         (2)  If that council member was elected on a district
     9     basis, the district from which that council member was
    10     elected remains unchanged and continues to encompass the
    11     exact same geographical area under the newly adopted optional
    12     plan as under the existing form of government and the number
    13     of council members to be elected from that district under the
    14     newly adopted optional plan is equal to or exceeds the number
    15     elected from that district under the existing form of
    16     government.
    17  Any council member may, by writing filed with the municipal
    18  treasurer, direct that any portion of his annual compensation
    19  for serving in office be returned to the municipal treasury. For
    20  the purpose of this section, an executive or mayor who is also a
    21  member of the council under an existing plan shall be considered
    22  as a member of the council, and after the new plan goes into
    23  effect, his duties shall be only those of a member of council as
    24  prescribed by the new plan.
    25     (e)  Number of members of council to be elected.--At the
    26  municipal election next succeeding the adoption of one of the
    27  optional plans provided for in this subpart, the number of
    28  council members prescribed by the terms in the plan less the
    29  number of council members then in office whose terms do not
    30  expire on the first Monday of January next following, as may be
    19950S0689B2340                 - 140 -

     1  determined by subsection (d), shall be elected.
     2     (f)  Filling vacancies on council existing prior to
     3  election.--If there are vacancies in council occurring by reason
     4  of resignation, death or removal 90 days or more before the
     5  election, they shall be filled for the remainder of the term of
     6  the person originally elected to that office.
     7  § 3163.  Compensation of elected officials.
     8     (a)  Officials elected prior to transition year.--The annual
     9  compensation of the executive (mayor) and council members
    10  elected to their offices in the year prior to the transition
    11  year under any of the optional plans, except the plan set forth
    12  in Subchapter F of Chapter 30 (relating to optional county
    13  plan), adopted pursuant to this subpart, shall be established by
    14  the commission as part of its recommendations or by the
    15  initiative petition or ordinance of the governing body
    16  authorized by sections 2942 (relating to initiation of amendment
    17  by electors or council), 2943 (relating to petition for
    18  referendum or ordinance proposing amendment) and 2944 (relating
    19  to time and manner of submission of question).
    20     (b)  Officials elected subsequent to transition.--The
    21  compensation of the executive (mayor), council members,
    22  controller and treasurer elected to their offices subsequent to
    23  the transition to any of the optional plans set forth in this
    24  subpart, except for the plan set forth in Subchapter F of
    25  Chapter 30, shall be fixed by ordinance of council adopted at
    26  least two days prior to the last day fixed by law for candidates
    27  to withdraw their names from nomination previous to the
    28  municipal election. After the compensation is fixed by
    29  ordinance, only an increase or decrease thereof need be fixed by
    30  the ordinance.
    19950S0689B2340                 - 141 -

     1  § 3164.  Status of existing ordinances and resolutions.
     2     On the effective date of an optional plan adopted pursuant to
     3  this subpart, all ordinances and resolutions of the municipality
     4  to the extent that they are not inconsistent with the provisions
     5  of this subpart shall remain in full force and effect.
     6  § 3165.  Abolishment of existing appointive offices.
     7     (a)  General rule.--On the effective date of an optional plan
     8  adopted pursuant to this subpart, all appointive offices then
     9  existing in such municipality shall be abolished and the terms
    10  of all appointed officers shall immediately cease and terminate.
    11  This section does not abolish the office or terminate the terms
    12  of office of any alderman or constable or of any official or
    13  employee now protected by any tenure of office or civil service
    14  law, or of any police officer or firefighter, whether or not
    15  protected by a tenure of office law.
    16     (b)  Use of resolution to govern interim proceedings.--
    17  Provisions for officers and for the organization and
    18  administration of the municipal government under the optional
    19  plan may be made by resolution pending the adoption of
    20  ordinances, but any such resolution shall expire not later than
    21  60 days after the effective date of the optional plan.
    22  § 3166.  Pending actions and proceedings.
    23     All actions and proceedings of a legislative, executive or
    24  judicial character, pending upon the effective date of an
    25  optional plan, may continue. The appropriate officer or employee
    26  under the optional plan shall be substituted for the officer or
    27  employee exercising or discharging the function, power or duty
    28  involved in the action or proceeding before the effective date.
    29                            SUBCHAPTER H
    30                      REPEAL OF OPTIONAL PLAN
    19950S0689B2340                 - 142 -

     1  Sec.
     2  3171.  Repeal of optional plan and establishment of new
     3         form of government.
     4  § 3171.  Repeal of optional plan and establishment of new form
     5             of government.
     6     (a)  General rule.--The procedure for repeal of an optional
     7  plan shall be the same as for adoption of an optional plan as
     8  provided in Subchapter B of Chapter 29 (relating to procedure
     9  for adoption of a home rule charter or optional plan of
    10  government), excluding the procedure provided in sections 2942
    11  (relating to initiation of amendment by electors or council),
    12  2943 (relating to petition for referendum or ordinance proposing
    13  amendment) and 2944 (relating to time and manner of submission
    14  of question). Whenever the electors, by a majority vote of those
    15  voting on the question, vote in favor of repeal of an optional
    16  plan and the establishment of a particular form of government,
    17  the municipality shall be governed under the form of government
    18  selected by the electors. The form of government so approved
    19  shall take effect on the first Monday of January following the
    20  municipal election at which the elective officials of the form
    21  of government selected by the electors shall have been elected.
    22  The government study commission shall provide in its report for
    23  the new form of government to be established.
    24     (b)  Amendment procedure.--This section does not prohibit or
    25  limit the procedure provided in sections 2942, 2943 and 2944 to
    26  amend an optional plan.
    27                               PART V
    28            PUBLIC IMPROVEMENTS, UTILITIES AND SERVICES
    29  Subpart
    30     A.  General Provisions
    19950S0689B2340                 - 143 -

     1                             SUBPART A
     2                         GENERAL PROVISIONS
     3  Chapter
     4    54.  Business Improvement Districts
     5                             CHAPTER 54
     6                   BUSINESS IMPROVEMENT DISTRICTS
     7  Sec.
     8  5401.  Short title and scope of chapter.
     9  5402.  Definitions.
    10  5403.  Powers of governing body.
    11  5404.  Administrative services provided by cities of the
    12         second class.
    13  5405.  Assessment authorized.
    14  5406.  Method and payment of assessment.
    15  § 5401.  Short title and scope of chapter.
    16     (a)  Short title of chapter.--This chapter shall be known and
    17  may be cited as the Business Improvement District Act.
    18     (b)  Scope of chapter.--This chapter applies to municipal
    19  corporations.
    20  § 5402.  Definitions.
    21     The following words and phrases when used in this chapter
    22  shall have the meanings given to them in this section unless the
    23  context clearly indicates otherwise:
    24     "Costs of improvements."  Engineering, architectural,
    25  attorney or other consulting fees, preliminary planning,
    26  feasibility studies, financing costs and other costs necessary
    27  and incidental to the completion of the improvement.
    28  § 5403.  Powers of governing body.
    29     The governing body of every municipal corporation shall have
    30  the power:
    19950S0689B2340                 - 144 -

     1         (1)  To establish within the municipal corporation an
     2     area or areas designated as a business improvement district
     3     which district or districts may be designated as all or part
     4     of any community which is zoned commercial or which is used
     5     for general commercial purposes.
     6         (2)  To appropriate and expend those amounts as may be
     7     necessary for preliminary planning or feasibility studies to
     8     determine needed improvements in business improvement
     9     districts, to recommend improvement to individual properties
    10     and to provide where required basic design criteria. Public
    11     hearings shall be required before passage of the enabling
    12     ordinance at which any interested party may be heard. Notice
    13     of the hearings shall be advertised at least ten days prior
    14     thereto in a newspaper circulating in the municipal
    15     corporation. The ordinance shall specify improvements, with
    16     respective costs. The ordinance shall not become effective
    17     if, before the expiration of 20 days after its enactment,
    18     property owners of the proposed district whose property
    19     valuation as assessed for taxable purposes amounts to more
    20     than 50% of the total property valuation of the district sign
    21     and file, in the office of the prothonotary of the court of
    22     common pleas, a written protest against the ordinance.
    23         (3)  To appropriate and expend in accordance with the
    24     specific provisions of the enabling ordinance such amounts as
    25     may be required to acquire by purchase or lease real or
    26     personal property to effectuate the purposes of the
    27     improvement district, including sidewalks, retaining walls,
    28     street paving, street lighting, parking lots, parking
    29     garages, trees and shrubbery purchased and planted,
    30     pedestrian walks, sewers, water lines and rest areas and
    19950S0689B2340                 - 145 -

     1     acquisition and remodeling or demolition of blighted
     2     buildings and similar or comparable structures. No
     3     improvement shall be made to property which has not been
     4     acquired.
     5         (4)  To acquire by gift, purchase or eminent domain,
     6     land, real property or rights-of-way which may be needed for
     7     the purposes of the projected improvements within the
     8     district.
     9         (5)  To issue bonds, notes or guarantees in accordance
    10     with the provisions of general laws authorizing borrowing by
    11     cities of the first class or in accordance with Subpart B of
    12     Part VII (relating to indebtedness and borrowing), whichever
    13     is applicable, in the amounts and for the periods necessary
    14     to finance the projected improvements for any district.
    15  § 5404.  Administrative services provided by cities of the
    16             second class.
    17     In addition to the powers of the governing body established
    18  in section 5403 (relating to powers of governing body), cities
    19  of the second class shall have the power to provide
    20  administrative services, that is, those services which improve
    21  the ability of the commercial establishments of the district to
    22  serve the consumer, including, but not limited to, free or
    23  reduced fee parking for customers, transportation repayments,
    24  public relations programs, group advertising, and district
    25  maintenance and security services.
    26  § 5405.  Assessment authorized.
    27     The governing body may impose an assessment on each benefited
    28  property within a business improvement district which shall be
    29  determined by the total cost of the improvements in the district
    30  but not in excess of the amount legally assessable.
    19950S0689B2340                 - 146 -

     1  § 5406.  Method and payment of assessment.
     2     (a)  Method.--The total cost of the administrative services
     3  or improvements in the district shall be assessed to all of the
     4  benefited properties in the district by one of the following
     5  methods:
     6         (1)  By an assessment determined by multiplying the total
     7     service and improvement cost by the ratio of the assessed
     8     value of the benefited property to the total assessed
     9     valuation of all benefited properties in the district.
    10         (2)  By an assessment upon the several properties in the
    11     district in proportion to benefits as ascertained by viewers
    12     appointed in accordance with law.
    13         (3)  In the case of improvements by an assessment upon
    14     the several properties in the district abutting the
    15     improvements or benefiting from the services, or, where more
    16     than one type of improvement or service is involved,
    17     designated types, by the front-foot method, with equitable
    18     adjustments for corner properties and other cases provided
    19     for in the assessment ordinance. Any property which cannot be
    20     equitably assessed by the front-foot method may be assessed
    21     by the method provided in paragraph (2).
    22     (b)  Payment.--The governing body may by ordinance authorize
    23  the payment of the assessment in equal annual or more frequent
    24  installments over such time and bearing interest at the rate
    25  specified in the ordinance. If bonds have been issued and sold,
    26  or notes or guarantees have been given or issued, to provide for
    27  the cost of the services and improvements, the assessment in
    28  equal installments shall not be payable beyond the term for
    29  which the bonds, notes or guarantees are payable.
    30     (c)  Claims to secure assessments.--Claims to secure the
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     1  assessments shall be entered in the prothonotary's office at the
     2  time and in the form and shall be collected in the manner that
     3  municipal claims are filed and collected. If installment
     4  payments are authorized pursuant to subsection (b), the
     5  ordinance may contain any or all of the following provisions:
     6         (1)  Notwithstanding the filing of the claims, all
     7     assessments which are made payable in installments shall
     8     constitute liens and encumbrances upon the respective
     9     benefited properties, at the beginning of each calendar year,
    10     except as provided in paragraph (2), only in an amount equal
    11     to the sum of:
    12             (i)  the annual or other installments becoming
    13         payable in such year, with interest and penalties, if
    14         any, thereon; and
    15             (ii)  the total of all installments, with interest
    16         and penalties thereon, which became due during prior
    17         years and which remain due and unpaid at the beginning of
    18         the current year.
    19         (2)  In the case of default in the payment of any
    20     installment and interest for a period of 90 days after the
    21     payment becomes due, the assessment ordinance may provide
    22     either for the entire assessment, with accrued interest and
    23     penalties to become due and become a lien from the due date
    24     of the installment, or may provide solely for the enforcement
    25     of the claim as to the overdue installment, with interest and
    26     penalties, in which case the ordinance shall further provide
    27     that if any installment or portion thereof remains due and
    28     unpaid for one year after it has become due and payable, then
    29     the entire assessment with accrued interest and penalties
    30     shall become due and become a lien from the due date of the
    19950S0689B2340                 - 148 -

     1     installment.
     2         (3)  No action taken to enforce a claim for any
     3     installment or installments shall affect the status of any
     4     subsequent installment of the same assessment, each of which
     5     shall continue to become a lien upon the property annually
     6     pursuant to paragraph (1).
     7         (4)  The ordinance may contain any other provision
     8     relating to installment assessments which is not inconsistent
     9     with applicable law.
    10     (d)  Payment in full.--Any owner of property, against whom an
    11  assessment has been made, may pay the assessment in full, at any
    12  time, with accrued interest and costs thereon, and such a
    13  payment shall discharge the lien of the assessment, or
    14  installments then constituting a lien, and shall also release
    15  the claim to any later installments.
    16     (e)  Benefits from administrative services.--No residential
    17  property shall be assessed under this chapter for any benefit
    18  received from administrative services.
    19     (f)  Construction of chapter.--Any reference in this chapter
    20  to services shall mean only those services provided by a city of
    21  the second class.
    22                              PART VII
    23                    TAXATION AND FISCAL AFFAIRS
    24  Subpart
    25     B.  Indebtedness and Borrowing
    26                             SUBPART B
    27                     INDEBTEDNESS AND BORROWING
    28  Chapter
    29    80.  General Provisions
    30    81.  Incurring Debt and Issuing Bonds and Notes
    19950S0689B2340                 - 149 -

     1    82.  Miscellaneous Provisions
     2                             CHAPTER 80
     3                         GENERAL PROVISIONS
     4  Subchapter
     5     A.  Preliminary Provisions
     6     B.  Limitations on Debt of Local Government Units
     7     C.  Procedure for Securing Approval of Electors
     8                            SUBCHAPTER A
     9                       PRELIMINARY PROVISIONS
    10  Sec.
    11  8001.  Short title, scope and applicability of subpart.
    12  8002.  Definitions.
    13  8003.  Advertisement and effectiveness of ordinances.
    14  8004.  When lease or other agreement evidences acquisition
    15         of capital asset.
    16  8005.  Classification and authority to issue bonds and notes.
    17  8006.  Preliminary cost estimates.
    18  8007.  Cost of project.
    19  8008.  Home rule.
    20  8009.  Guaranty funds and compulsory associations.
    21  § 8001.  Short title, scope and applicability of subpart.
    22     (a)  Short title of subpart.--This subpart shall be known and
    23  may be cited as the Local Government Unit Debt Act.
    24     (b)  Scope of subpart.--This subpart shall apply to all local
    25  government units.
    26     (c)  Exemption of bonds and notes from taxation in this
    27  Commonwealth.--All bonds or notes, including tax anticipation
    28  notes issued by any local government unit under this subpart or
    29  the act of June 25, 1941 (P.L.159, No.87), known as the
    30  Municipal Borrowing Law, their transfer and the income
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     1  therefrom, including any profits made on the sale thereof, shall
     2  be free from taxation for State and local purposes within this
     3  Commonwealth. This exemption does not apply to inheritance and
     4  estate taxes under Article XXI of the act of March 4, 1971
     5  (P.L.6, No.2), known as the Tax Reform Code of 1971, or any
     6  other taxes not levied directly on the bonds or notes, the
     7  transfer, the income or the realization of profits on the sale.
     8     (d)  Exclusive procedure.--A local government unit may borrow
     9  money on bonds or notes, including tax anticipation notes, only
    10  as provided in this subpart. This subpart provides an exclusive
    11  and uniform system on the subjects covered by this subpart.
    12  § 8002.  Definitions.
    13     (a)  Classification of debt.--With respect to classifications
    14  of debt and subject to additional definitions contained in
    15  subsequent provisions of this subpart which are applicable to
    16  specific provisions of this subpart, the following words and
    17  phrases when used in this subpart shall have the meanings given
    18  to them in this section unless the context clearly indicates
    19  otherwise:
    20     "Debt."  The amount of all obligations for the payment of
    21  money incurred by the local government unit, whether due and
    22  payable in all events, or only upon the performances of work,
    23  possession of property as lessee, rendering of services by
    24  others or other contingency, except the following:
    25         (1)  Current obligations for the full payment of which
    26     current revenues have been appropriated, including tax
    27     anticipation notes, and current payments for the funding of
    28     pension plans.
    29         (2)  Obligations under contracts for supplies, services
    30     and pensions allocable to current operating expenses of
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     1     future years in which the supplies are to be expended or
     2     furnished, the services rendered or the pensions paid.
     3         (3)  Rentals or payments payable in future years under
     4     leases, guaranties, subsidy contracts or other forms of
     5     agreement not evidencing the acquisition of capital assets.
     6     This exception shall not apply to rentals or payments under
     7     any instruments which would constitute lease rental debt but
     8     for the fact that the lessor or obligee is not an entity
     9     described in section 8004(a)(1) (relating to when lease or
    10     other agreement evidences acquisition of capital assets).
    11         (4)  Interest or assumed taxes payable on bonds or notes
    12     which interest or taxes is not yet overdue.
    13     "Electoral debt."  All net debt incurred with the assent of
    14  the electors, given as provided in this subpart whether issued
    15  by a local government unit or through an authority.
    16     "Lease rental debt."  The principal amount of authority bonds
    17  or notes or bonds or notes of another local government unit to
    18  be repaid from payments of the local government unit made
    19  pursuant to leases, guaranties, subsidy contracts or other forms
    20  of agreement where those payments are or may be made out of the
    21  tax and other general revenues of a local government unit under
    22  leases, guaranties, subsidy contracts or other forms of
    23  agreement which evidence the acquisition of capital assets,
    24  excluding any amount which has been approved by the electors.
    25     "Net lease rental debt."  A portion of lease rental debt as
    26  determined under Subchapter B (relating to limitations on debt
    27  of local government units).
    28     "Net nonelectoral debt."  A portion of nonelectoral debt as
    29  determined in accordance with Subchapter B (relating to
    30  limitations on debt of local government units).
    19950S0689B2340                 - 152 -

     1     "Nonelectoral debt."  All debt determined as provided in this
     2  subpart, incurred or authorized to be incurred, except electoral
     3  debt and lease rental debt, in each case whether authorized
     4  before or after July 12, 1972, and whether before or after the
     5  debt is incurred.
     6     (b)  Exclusions from debt.--With respect to exclusions from
     7  any particular category of debt and subject to additional
     8  definitions contained in subsequent provisions of this subpart
     9  which are applicable to specific provisions of this subpart, the
    10  following words and phrases when used in this subpart shall have
    11  the meanings given to them in this section unless the context
    12  clearly indicates otherwise:
    13     "Self-liquidating debt."  Debt payable solely from rents,
    14  rates or other charges to the ultimate users of the project, to
    15  be financed in whole or in part by that debt, or payable solely
    16  from special levies or assessments of benefits lawfully
    17  earmarked exclusively for that purpose. The term also includes
    18  debt or any portion thereof at the time qualified as self-
    19  liquidating pursuant to this subpart, whether or not solely
    20  payable from those sources. The term "ultimate users" includes
    21  the local government unit itself only where its use of the
    22  project is incidental to the use of the project by other users.
    23     "Subsidized debt."  The amount of debt which is self-
    24  liquidating to the local government unit because the annual debt
    25  service on the amount for the fiscal year next following the
    26  time of determination will be covered by one of the following:
    27         (1)  Payments of subsidies on account of the cost of the
    28     project or on account of operations, but measured by the cost
    29     of the project, or which will be covered by capital account
    30     reimbursements, which subsidies or reimbursements will be
    19950S0689B2340                 - 153 -

     1     paid by either the Commonwealth or the Federal Government, or
     2     both, where such payments under the legislation in force at
     3     the time of determination are stated to be of a recurring
     4     nature, if the Commonwealth or the Federal Government shall
     5     have preliminarily or finally qualified the project for the
     6     subsidy or reimbursement, all as determined under section
     7     8024 (relating to exclusion of subsidized debt from net
     8     nonelectoral debt or net lease rental debt).
     9         (2)  Payments under a subsidy contract with another local
    10     government unit or under a subsidy contract with an authority
    11     and the amount is lawful lease rental debt as to the other
    12     local government unit as determined under section 8024.
    13     (c)  Other definitions.--Subject to additional definitions
    14  contained in subsequent provisions of this subpart which are
    15  applicable to specific provisions of this subpart, the following
    16  words and phrases when used in this subpart shall have the
    17  meanings given to them in this section unless the context
    18  clearly indicates otherwise:
    19     "Accountant."  A certified public accountant or public
    20  accountant or a firm of either of them.
    21     "Authority."  An authority or nonprofit corporation organized
    22  under any statute by or on behalf of the Commonwealth or any
    23  local government unit or jointly by any one or more of them.
    24     "Bond or note."  Any instrument issued by a local government
    25  unit imposing an obligation for the repayment of money borrowed,
    26  but not including a guaranty endorsed on an instrument issued by
    27  an authority. Unless otherwise indicated, the term does not
    28  include tax anticipation notes. A bond or a note which is a
    29  security as defined in 13 Pa.C.S. Div. 8 (relating to investment
    30  securities) shall be governed by 13 Pa.C.S. Div. 8 and every
    19950S0689B2340                 - 154 -

     1  other bond or note shall be governed by Subchapter C (relating
     2  to procedure for securing approval of electors), except in each
     3  case as otherwise provided in this subchapter.
     4     "Borrowing base."  The annual arithmetic average of the total
     5  revenues for the three full fiscal years ended next preceding
     6  the date of the incurring of nonelectoral debt or lease rental
     7  debt as set forth in a certificate stating the total revenues in
     8  each of these years and stating the average, executed by the
     9  authorized officials of the local government unit or by an
    10  independent accountant. If, within that three-year period, there
    11  has been an expansion or contraction of the territorial or
    12  functional jurisdiction of a local government unit through
    13  transfer, merger, annexation or assumption, in whole or in part,
    14  in relation to another local government unit or an authority,
    15  the borrowing base shall be calculated as if the expansion or
    16  contraction had occurred within or prior to the commencement of
    17  the three-year period in the manner as the statutes, charter
    18  provisions or court decree provide or direct or, in the absence
    19  of those provisions, as the department approves.
    20     "Department."  The Department of Community Affairs of the
    21  Commonwealth.
    22     "General obligation."  In the title of a bond or note, means
    23  a bond or note for the payment of which the full faith, credit
    24  and taxing power of the local government unit is pledged, for
    25  the payment of which the local government unit has entered into
    26  the required covenant under section 8104 (relating to covenant
    27  to pay bonds or notes or a guaranty), and for the payment of
    28  which no specific revenues are pledged.
    29     "Governing body."  The authorities in each local government
    30  unit authorized by law to levy taxes or fix the tax rate of the
    19950S0689B2340                 - 155 -

     1  local government unit. The term also includes the school board
     2  of a school district and the board or officers authorized to
     3  make binding commitments for joint local government units, even
     4  though that body has no power to levy taxes.
     5     "Guaranteed revenue."  In the title of a bond or note, means
     6  a bond or note of a local government unit payable in whole or in
     7  part from pledged revenues, but which becomes wholly or partly a
     8  general obligation of the local government unit, as guarantor in
     9  the event of deficiency in the pledged revenues.
    10     "Guaranty."  A guaranty, whether conditional or unconditional
    11  and whether full or partial, to or for the benefit of holders of
    12  bonds or notes of the local government unit or holders of bonds
    13  or notes or other obligations of an authority or another local
    14  government unit, of the payment of the principal of and interest
    15  on the bonds or notes, the premium, if any, and assumed taxes,
    16  if any, on those obligations.
    17     "Incur" or "incurred."  When used with respect to debt, means
    18  the point in time when, in the case of debt assented to by the
    19  electors, the assent has been given, and, in the case of
    20  nonelectoral or other debt the first ordinance or in the case of
    21  small borrowings under section 8109 (relating to small borrowing
    22  for capital purposes), the resolution authorizing the debt has
    23  been finally enacted or adopted, unless the authority for the
    24  debt has been canceled or terminated as provided in this
    25  subpart. Final enactment or adoption means the final act
    26  necessary to make an ordinance or resolution, as the case may
    27  be, effective pursuant to all requirements of law, including any
    28  necessary approval by a mayor or other executive officer or
    29  failure of action by the mayor or officer within a specified
    30  statutory time limit, or passage over the veto of a mayor or of
    19950S0689B2340                 - 156 -

     1  the officer, but does not include any required advertising
     2  subsequent to the date of adoption by the governing body of the
     3  local governing unit.
     4     "Issue."  All bonds authorized to be sold in respect of a
     5  particular project, whether authorized to be sold at one time or
     6  from time to time in one or more series.
     7     "Local government unit."  A county, county institution
     8  district, city, borough, incorporated town, township, school
     9  district or any similar, general or limited purpose unit of
    10  local government or any unit created by joint action of two or
    11  more local government units which is authorized to be created by
    12  law. The term does not include a city or county of the first
    13  class, an authority as defined in this section or any unit
    14  created by joint action of two or more local government units
    15  which have not been granted by statute the power to issue bonds.
    16  The term includes school districts of the first class presently
    17  operating under a home rule charter or home rule charter
    18  supplement and the provisions of this subpart shall govern over
    19  inconsistent charter provisions.
    20     "Ordinance."  The formal action of a local government unit,
    21  whether, under the law applicable to the local government unit,
    22  the action is taken by ordinance or by resolution, to which the
    23  requirements of section 8003 (relating to advertisement and
    24  effectiveness of ordinances) applies.
    25     "Project."  Includes any of the following:
    26         (1)  Items of construction, acquisition, extraordinary
    27     maintenance or repair which have been undertaken by a local
    28     government unit.
    29         (2)  Preliminary studies, surveying, planning, testing or
    30     design work for any undertaking described in paragraph (1).
    19950S0689B2340                 - 157 -

     1         (3)  Lands or rights in land to be acquired.
     2         (4)  Furnishings, machinery, apparatus or equipment
     3     normally classified as capital items, but these items must
     4     have a useful life of five years or more if financed
     5     separately and not as a part of a construction or acquisition
     6     project.
     7         (5)  The local government unit's share of the cost of a
     8     project undertaken jointly with one or more other local
     9     government units or the Commonwealth or one of its agencies.
    10         (6)  County-wide revision of assessment of real property.
    11         (7)  Funding of all or any portion of a reserve, or a
    12     contribution toward a combined reserve, pool or other
    13     arrangement, relating to self-insurance, which has been
    14     established by one or more local government units, pursuant
    15     to 42 Pa.C.S. § 8564 (relating to liability insurance and
    16     self-insurance), up to, but not exceeding, the amount
    17     provided in section 8007 (relating to cost of project).
    18         (8)  Funding of an unfunded actuarial accrued liability
    19     or a portion of an unfunded actuarial accrued liability.
    20         (9)  Funding or refunding of debt incurred for any or all
    21     of the foregoing purposes.
    22         (10)  Any combination of any or all of the foregoing as
    23     any or all of the above may be designated as a project by the
    24     governing body for the financing of which it desires to incur
    25     debt.
    26         (11)  Any deficit to be funded by bonds or notes as
    27     provided in this subpart or the creation of a revolving fund
    28     for specific improvements.
    29         (12)  Where a local government unit has adopted a capital
    30     budget, any unfunded portion of the capital budget selected
    19950S0689B2340                 - 158 -

     1     by ordinance for current funding.
     2     "Resolution."  A formal action of a governmental unit other
     3  than an ordinance, whether, under the law applicable to the
     4  local government unit, the action is taken by ordinance or by
     5  resolution, to which section 8003 (relating to advertisement and
     6  effectiveness of ordinances) does not apply.
     7     "Revenue."  In the title of a bond or note not preceded by
     8  the word guaranteed, means a bond or note payable solely from
     9  user charges, rates, revenues, rentals, fees, special
    10  assessments and receipts pledged for the purpose.
    11     "Series."  All the bonds or notes to be sold and delivered at
    12  one time in respect of one project or of any two or more
    13  projects which have been combined for purposes of financing or
    14  where the bonds or notes have been combined for sale as provided
    15  in this subpart.
    16     "Sinking fund."  The special fund created pursuant to section
    17  8221 (relating to creation of sinking funds and deposits,
    18  reserves and surplus funds) for the payment of the principal of
    19  and interest on bonds or notes, premium, if any, and assumed
    20  taxes, if any, or for the payment of a guaranty.
    21     "Tax anticipation notes."  Notes issued in anticipation of
    22  taxes, in anticipation of revenues or in anticipation of both as
    23  designated in the notes.
    24     "Total revenues."  All moneys received by the local
    25  government unit in a fiscal year from whatever source derived,
    26  except the following:
    27         (1)  Subsidies or reimbursements from the Federal
    28     Government or from the Commonwealth measured by the cost of,
    29     or given or paid on account of, a particular project financed
    30     by debt.
    19950S0689B2340                 - 159 -

     1         (2)  Project revenues, rates, receipts, user charges,
     2     special assessments and special levies which are or will be
     3     pledged or budgeted for specific self-liquidating debt, or
     4     for payments under leases, guaranties, subsidy contracts or
     5     other forms of agreement which could constitute lease rental
     6     debt except that the payments are payable solely from these
     7     sources, but that portion thereof that has been returned to
     8     or retained by the local government unit shall not be
     9     excluded.
    10         (3)  Interest on moneys in sinking funds, reserves and
    11     other funds, which interest is pledged or budgeted for the
    12     payment or security of outstanding debt, and interest on bond
    13     or note proceeds, if similarly pledged.
    14         (4)  Grants and gifts in aid of or measured by the
    15     construction or acquisition of specified projects.
    16         (5)  Proceeds from the disposition of capital assets, and
    17     other nonrecurring items including bond or note proceeds not
    18     considered income under generally accepted municipal
    19     accounting principles.
    20     "Unfunded actuarial accrued liability."  With respect to a
    21  local government unit retirement system, pension plan or pension
    22  trust fund, the excess of the actuarial accrued liability over
    23  the actuarial value of assets of the retirement system, pension
    24  plan or pension trust fund, computed as follows:
    25         (1)  In the case of a local government unit that is
    26     subject to the act of December 18, 1984 (P.L.1005, No.205),
    27     known as the Municipal Pension Plan Funding Standard and
    28     Recovery Act, in accordance with the requirement REQUIREMENTS  <--
    29     of that act.
    30         (2)  In the case of a local government unit that is not
    19950S0689B2340                 - 160 -

     1     subject to the Municipal Pension Plan Funding Standard and
     2     Recovery Act, in accordance with the applicable laws for that
     3     local government unit regarding minimum funding requirements
     4     for the unit's retirement system, pension plan or pension
     5     trust fund or, if there are no such laws, in accordance with
     6     the ordinance, resolution or contract under which the local
     7     government unit participates in the retirement system,
     8     pension plan or pension trust fund.
     9  In the case of a local government unit that participates in a
    10  retirement system, pension plan or pension trust fund for
    11  employees of more than one local government unit, including an
    12  association of local government units cooperating under
    13  Subchapter A of Chapter 23 (relating to intergovernmental
    14  cooperation), the term includes the local government unit's pro
    15  rata share of the total unfunded actuarial accrued liability of
    16  the retirement system, pension plan or pension trust fund, as
    17  the pro rata share may be determined under the applicable laws
    18  or, if there are no applicable laws, under the ordinance,
    19  resolution or contract under which the local government unit
    20  participates in the retirement system, pension plan or pension
    21  trust fund.
    22  § 8003.  Advertisement and effectiveness of ordinances.
    23     (a)  Advertisement of ordinances.--Notwithstanding any other
    24  statute to the contrary, an ordinance required to be adopted by
    25  this subpart shall be advertised not less than three nor more
    26  than 30 days prior to its enactment. The advertisement shall
    27  appear once in a newspaper of general circulation in the area of
    28  the local government unit, shall set forth a summary of the
    29  contents of the ordinance and shall state that a copy of the
    30  full proposed text thereof may be examined by any citizen in the
    19950S0689B2340                 - 161 -

     1  office of the secretary of the local government unit at the
     2  address and during the reasonable hours stated in the
     3  advertisement.
     4     (b)  Notice of enactment.--Not later than 15 days after the
     5  final enactment of the ordinance, a notice of the enactment
     6  shall be advertised once in a newspaper of general circulation
     7  in the local government unit. This notice shall state:
     8         (1)  Briefly, the substance of any amendments made during
     9     final passage, and, where applicable:
    10             (i)  in respect of lease rental debt the range of
    11         lease rental payments; and
    12             (ii)  in other cases, the price bid for bonds or
    13         notes and the range of interest rates named in the
    14         successful bid.
    15         (2)  That the final text of the ordinance as enacted may
    16     be examined by any citizen in the office of the secretary of
    17     the local government unit at the address and during the
    18     reasonable hours stated in the notice.
    19     (c)  Effectiveness of ordinance.--The ordinance shall be
    20  valid and effective for all purposes on the fifth day after the
    21  second advertisement. The second advertisement shall be
    22  conclusive, so far as concerns the effectiveness of the
    23  ordinance or the validity of any debt incurred, as to the
    24  existence of all matters recited or referred to therein unless
    25  an action questioning the validity or effectiveness has been
    26  filed in timely manner as provided in this subpart, but the
    27  conclusiveness shall not affect the liability of any person for
    28  failure to permit inspection. No other or different publication
    29  shall be required notwithstanding the provisions of any other
    30  statute.
    19950S0689B2340                 - 162 -

     1  § 8004.  When lease or other agreement evidences acquisition of
     2             capital asset.
     3     (a)  General rule.--A lease, guaranty, subsidy contract or
     4  other agreement entered into by a local government unit shall
     5  evidence the acquisition of a capital asset if:
     6         (1)  the lessee or obligor is a local government unit and
     7     the lessor or obligee is an authority organized under any law
     8     of this Commonwealth, another local government unit, a
     9     nonprofit corporation, the State Public School Building
    10     Authority or other agency or authority of the Commonwealth;
    11         (2)  the payments, or any portion thereof, which are
    12     payable in a subsequent fiscal year or subsequent fiscal
    13     years and which are applicable to debt service requirements
    14     or capital costs are payable, whether in all events or only
    15     upon the happening of certain events, under the terms of the
    16     instrument from the tax or general revenues of the local
    17     government unit; and
    18         (3)  upon termination of the lease guaranty, subsidy
    19     contract or other agreement or upon dissolution of the lessor
    20     or obligee, whether before or after the termination of the
    21     lease, title to the subject project or premises or a given
    22     part thereof or undivided interest therein, shall or, at the
    23     option of the local government unit, may vest by agreement or
    24     operation of law in the local government unit or in the
    25     Commonwealth.
    26     (b)  Agreement exceeding useful life of asset.--A lease,
    27  guaranty, subsidy contract or other form of agreement entered
    28  into by a local government unit shall also evidence the
    29  acquisition of a capital asset if the payments to be made in a
    30  subsequent fiscal year or subsequent fiscal years applicable to
    19950S0689B2340                 - 163 -

     1  debt service requirements or capital costs are payable, whether
     2  in all events or only upon the happening of certain events,
     3  under the provisions of the instrument from the tax or general
     4  revenues of the local government unit and the term of the
     5  instrument is equal to or exceeds the useful life of the asset,
     6  regardless of the nature of the lessor or obligee.
     7  § 8005.  Classification and authority to issue bonds and notes.
     8     (a)  Classification.--Bonds or notes prior to the
     9  authorization thereof shall be classified by the issuing local
    10  government unit as one of the following three types of
    11  obligation:
    12         (1)  General obligation bonds or notes.
    13         (2)  Guaranteed revenue bonds or notes.
    14         (3)  Revenue bonds or notes.
    15     (b)  Guaranteed revenue bonds or notes.--Guaranteed revenue
    16  bonds or notes may have either a general or a limited guaranty
    17  as the governing body of the local government unit may
    18  determine, but if the guaranty is less than a full unconditional
    19  guaranty, the title of the bond or note shall contain the word
    20  "limited" before the word "guaranteed." The guaranty of the
    21  local government may be of its own revenue bonds or notes or of
    22  the revenue bonds or notes of an authority or another local
    23  government unit subject, however, to the provisions of
    24  subsection (c).
    25     (c)  Authority to issue bonds and notes.--Notwithstanding any
    26  other law to the contrary, every local government unit shall
    27  have full power and authority to issue bonds or notes, and make
    28  guaranties, leases, subsidy contracts or other agreements
    29  evidencing the acquisition of capital assets payable out of
    30  taxes and other general revenues, to provide funds for and
    19950S0689B2340                 - 164 -

     1  towards the cost of or the cost of completing any project or
     2  combination of projects which the local government unit is
     3  authorized to own, acquire, subsidize, operate or lease, or to
     4  participate in owning, acquiring, subsidizing, operating or
     5  leasing with others, to issue tax anticipation notes and funding
     6  bonds or notes as provided in this subpart, and to contract for
     7  insurance covering the risks of nonpayment of principal,
     8  interest and premium of bonds, notes, tax anticipation notes and
     9  guaranties.
    10     (d)  Nature of guaranty.--For the purpose of this subpart,
    11  unless debt evidenced by a guaranty has been approved as
    12  electoral debt in accordance with Subchapter C (relating to
    13  procedure for securing approval of electors), the guaranty shall
    14  be deemed to be nonelectoral debt if the local government unit
    15  guaranties its own bonds or notes and shall be deemed to be
    16  lease rental debt if it guaranties the bonds or notes of an
    17  authority or another local government unit. For the purpose of
    18  all other statutes, the guaranty shall be deemed to create debt
    19  or indebtedness of the local government unit making the
    20  guaranty.
    21  § 8006.  Preliminary cost estimates.
    22     Prior to the initial authorization of bonds or notes or the
    23  issuance of any guaranty to finance any project involving
    24  construction or acquisition, the governing body shall obtain
    25  realistic cost estimates through actual bids, option agreements
    26  or professional estimates from registered architects,
    27  professional engineers or other persons qualified by experience.
    28  Any local government unit may retain the services of a financial
    29  advisor. Costs of preliminary estimates and the fees of
    30  financial advisors may, if initially paid by the local
    19950S0689B2340                 - 165 -

     1  government unit, be reimbursed out of the net proceeds of the
     2  issue of bonds or notes as a cost of the project.
     3  § 8007.  Cost of project.
     4     The cost of a project includes the amount of all payments to
     5  contractors or for the acquisition of a project or for lands,
     6  easements, rights and other appurtenances deemed necessary for
     7  the project, fees of architects, engineers, appraisers,
     8  consultants, financial advisors and attorneys incurred in
     9  connection with the project financing costs, costs of necessary
    10  printing and advertising, costs of preliminary feasibility
    11  studies and tests, cost estimates and interest on money borrowed
    12  to finance the project, if capitalized, to the date of
    13  completion of construction and, if deemed necessary, for one
    14  year thereafter, amounts to be placed in reserve funds, if any,
    15  a reasonable initial working capital for operating the project
    16  and a proper allowance for contingencies and any amount which
    17  constitutes, under generally accepted accounting principles, a
    18  cost of, and which has been determined by an independent actuary
    19  or other expert to be required for the purposes of, a reserve or
    20  a contribution toward a combined reserve, pool or other
    21  arrangement, for losses or liabilities covered by a self-
    22  insurance arrangement established by one or more local
    23  government units.
    24  § 8008.  Home rule.
    25     Every local government unit obtaining a home rule charter
    26  after July 12, 1972, shall be subject to the substantive
    27  provisions of this subpart applicable to it as if it were a
    28  local government unit and may adopt the procedural provisions of
    29  this subpart, by incorporation thereof by reference, in its home
    30  rule charter.
    19950S0689B2340                 - 166 -

     1  § 8009.  Guaranty funds and compulsory associations.
     2     (a)  Self-insurance.--No self-insurance program funded
     3  pursuant to this subpart shall be required or permitted to join
     4  or contribute financially to any insurance insolvency guaranty
     5  fund, or similar mechanism, in this Commonwealth, nor shall any
     6  such self-insurance program funded pursuant to this subpart, or
     7  its insureds or claimants against its insureds, receive any
     8  benefit from any such fund for claims arising under the coverage
     9  provided by such self-insurance program.
    10     (b)  Exception.--When a local government unit or group of
    11  local government units obtains insurance from a self-insurance
    12  program funded pursuant to this subpart, such risks, wherever
    13  resident or located, shall not be covered by any insurance
    14  guaranty fund or similar mechanism in this Commonwealth.
    15                            SUBCHAPTER B
    16           LIMITATIONS ON DEBT OF LOCAL GOVERNMENT UNITS
    17  Sec.
    18  8021.  No limitation on debt approved by electors.
    19  8022.  Limitations on incurring of other debt.
    20  8023.  Transfer to electoral debt of debt incurred without
    21         approval of electors.
    22  8024.  Exclusion of subsidized debt from net nonelectoral debt
    23         or net lease rental debt.
    24  8025.  Exclusion of self-liquidating debt evidenced by revenue
    25         bonds or notes to determine net nonelectoral debt.
    26  8026.  Exclusion of other self-liquidating debt to determine net
    27         nonelectoral debt or net lease rental debt.
    28  8027.  Effect of debt limitations on outstanding debt.
    29  8028.  Determination of existing net nonelectoral debt and net
    30         nonelectoral plus net lease rental debt.
    19950S0689B2340                 - 167 -

     1  8029.  Determination of debt limits.
     2  § 8021.  No limitation on debt approved by electors.
     3     All debt of any classification, whenever incurred, which is
     4  approved, either before or after the debt is incurred, by
     5  majority of the votes cast upon the question of incurring the
     6  debt at a general or special election held as provided by
     7  applicable law, is excluded from the nonelectoral debt or the
     8  lease rental debt, as the case may be, of a local government
     9  unit and the limitations imposed by this subpart upon the debt
    10  of the classification shall not apply to such debt.
    11  § 8022.  Limitations on incurring of other debt.
    12     (a)  Nonelectoral debt.--Except as provided in subsections
    13  (c), (d) and (e) and as otherwise specifically provided in this
    14  subpart, a local government unit shall not incur any new
    15  nonelectoral debt if the aggregate net principal amount of the
    16  new nonelectoral debt, together with all other net nonelectoral
    17  debt outstanding, would cause the total net nonelectoral debt of
    18  the local government unit to exceed any of the following:
    19         (1)  One hundred percent of its borrowing base in the
    20     case of a school district of the first class.
    21         (2)  Three hundred percent of its borrowing base in the
    22     case of a county.
    23         (3)  Two hundred fifty percent of its borrowing base in
    24     the case of any other local government unit.
    25     (b)  Nonelectoral debt plus lease rental debt.--Except as
    26  provided in subsections (c), (d) and (e) or as otherwise
    27  specifically provided in this subpart, in the exercise of
    28  legislative control over the budgets and expenditures of local
    29  government units and of the purposes for which tax moneys and
    30  general revenues of local government units may be expended, a
    19950S0689B2340                 - 168 -

     1  local government unit shall not incur any new lease rental debt
     2  or nonelectoral debt if the aggregate net principal amount of
     3  the new debt, together with any other net nonelectoral debt and
     4  net lease rental debt then outstanding, would cause the
     5  outstanding total of net nonelectoral debt plus net lease rental
     6  debt of the local government unit to exceed any of the
     7  following:
     8         (1)  Two hundred percent of the borrowing base in the
     9     case of a school district of the first class.
    10         (2)  Four hundred percent of its borrowing base in the
    11     case of a county.
    12         (3)  Three hundred fifty percent of its borrowing base in
    13     the case of all other local government units.
    14     (c)  Self-liquidating or subsidized debt.--The limitations
    15  and prohibitions of subsections (a) and (b), referred to as the
    16  "regular debt limits," shall not apply to electoral debt; to
    17  debt excluded in computing net amounts of nonelectoral debt or
    18  of lease rental debt, as self-liquidating or because subsidized,
    19  when the exclusion is made pursuant to sections 8024 (relating
    20  to exclusion of subsidized debt from net nonelectoral debt or
    21  net lease rental debt), 8025 (relating to exclusion of self-
    22  liquidating debt evidenced by revenue bonds or notes to
    23  determine net nonelectoral debt) and 8026 (relating to exclusion
    24  of other self-liquidating debt to determine net nonelectoral
    25  debt or net lease rental debt); nor to debt incurred to fund an
    26  unfunded actuarial accrued liability except to the extent that
    27  bonds or notes issued to fund an unfunded actuarial accrued
    28  liability shall be limited to the principal amount necessary,
    29  after deduction of costs of issuance, underwriter's discount and
    30  original issue discount, to fund the unfunded actuarial accrued
    19950S0689B2340                 - 169 -

     1  liability.
     2     (d)  Additional nonelectoral or lease rental debt.--
     3  Additional nonelectoral or additional lease rental debt or both
     4  in the aggregate amount of 100% of the borrowing base may be
     5  incurred by a county which has assumed countywide responsibility
     6  or, where the county has not assumed countywide responsibility,
     7  by a local government unit which has assumed responsibility for
     8  its and its adjacent areas for hospitals and other public health
     9  services, air and water pollution control, flood control,
    10  environmental protection, water distribution and supply systems,
    11  sewage and refuse collection and disposal systems, education at
    12  any level, highways, public transportation or port operations.
    13  The additional debt limit may be so utilized only to provide
    14  funds for and towards the cost of capital facilities for any or
    15  any combination of the foregoing purposes. Debt, other than
    16  electoral debt, at any time incurred for such purposes or any of
    17  them may be assigned by ordinance to this additional debt limit
    18  if the remaining borrowing capacity within the regular limits is
    19  insufficient to finance other projects deemed necessary by the
    20  governing body of the local government unit.
    21     (e)  Emergency debt.--If replacement of assets is required as
    22  a result of fire, flood, storm, war, riot, civil commotion or
    23  other catastrophe, or the replacement or any improvements are
    24  required for the prevention of dangers to health or safety, or
    25  if funds are required for the payment of tort liability not
    26  covered by insurance, or if funds are required to be used for
    27  and towards the costs of mandated installations of health,
    28  safety, antipollution, environmental protection and control
    29  facilities or of complying with other mandated Federal or State
    30  programs, a local government unit lacking sufficient remaining
    19950S0689B2340                 - 170 -

     1  borrowing capacity as nonelectoral or lease rental debt or being
     2  otherwise prohibited by section 8045 (relating to effect of
     3  defeat of question) from incurring debt for the purpose, upon
     4  petition to the court of common pleas alleging the catastrophe,
     5  or the danger to health and safety, or the mandated nature of
     6  the program and the estimated costs of the proposed facilities,
     7  and upon proof thereof to the satisfaction of the court, shall
     8  be authorized, notwithstanding section 8045 or the insufficiency
     9  of nonelectoral or lease rental borrowing capacity, to incur
    10  debt, as either lease rental or nonelectoral debt, up to an
    11  additional 50% of its borrowing base, if the increase is found
    12  by the court to have been made necessary under this subsection
    13  by reason of the causes set forth in the petition. The increase,
    14  together with all outstanding other additional emergency debt
    15  which may have been previously authorized under this subsection
    16  excluding any allocated to the additional debt limit under
    17  subsection (d), shall not exceed 50% of the borrowing base.
    18  Public notice of the intention to file such a petition and of
    19  the purpose for which the additional emergency debt is to be
    20  incurred shall be given by advertisement in at least one and not
    21  more than two newspapers of general circulation and in the legal
    22  journal not less than five nor more than 20 days before the
    23  filing thereof. The additional emergency debt may be incurred
    24  only for the purposes and upon the terms approved by the court.
    25  The amount of the debt initially in excess of the regular debt
    26  limits shall not thereafter be included in computing net amounts
    27  of nonelectoral or lease rental debt.
    28  § 8023.  Transfer to electoral debt of debt incurred without
    29             approval of electors.
    30     The governing body of any local government unit may, by
    19950S0689B2340                 - 171 -

     1  resolution, signify a desire to have any debt theretofore
     2  incurred without the approval of the electors transferred to the
     3  electoral debt. The resolution shall direct the holding of an
     4  election for the purpose of obtaining the approval of the
     5  electors to the debt in the manner provided for securing the
     6  approval of electoral debt. The question shall be whether the
     7  remaining unpaid debt incurred without the approval of the
     8  electors for the project named in the question shall be removed
     9  from the category of nonelectoral or lease rental debt. If a
    10  majority of the votes cast upon the question at the election
    11  favor transfer to electoral debt, a certified copy of the
    12  resolution, proof of due advertisement of the election and a
    13  certified return of the election shall be filed with the
    14  department. If the department finds the proceedings to have been
    15  taken in conformity with the law, it shall endorse its approval
    16  on a duplicate original and return it to the local government
    17  unit. The debt shall thereupon be no longer classified as
    18  nonelectoral or lease rental debt.
    19  § 8024.  Exclusion of subsidized debt from net nonelectoral debt
    20             or net lease rental debt.
    21     (a)  Filings with department.--Subsidized debt shall not be
    22  excluded from nonelectoral debt or lease rental debt, as the
    23  case may be, for the purposes of establishing net outstanding
    24  debt of either category until the following have been filed with
    25  and approved by the department:
    26         (1)  A copy, certified by the secretary of the board of
    27     the local government unit or of the authority, of the
    28     permanent or preliminary approval from the Commonwealth or
    29     from the Federal Government of the project of the related
    30     bonds or notes, or of the interest thereon, for subsidization
    19950S0689B2340                 - 172 -

     1     or for reimbursement of all or part of debt service or on
     2     account of operations, but measured by the cost of the
     3     project or a certified copy of the subsidy contract with
     4     another local government unit or an authority.
     5         (2)  Evidence satisfactory to the department from the
     6     subsidizing agency as to the indicated annual amount of the
     7     subsidy.
     8         (3)  Appropriate reference to the legislation authorizing
     9     the reimbursement or subsidy indicating the legislated
    10     recurring nature of the subsidy or, in the case of a subsidy
    11     contract with another local government unit, evidence
    12     satisfactory to the department that the amount to be excluded
    13     is within the debt limitations of the other local government
    14     unit or has been approved as electoral debt.
    15         (4)  A computation, in reasonable detail, certified by
    16     the proper officers of the local government unit or of the
    17     authority, or by the financial advisor if one be retained,
    18     showing the principal amount of the bonds to be serviced by
    19     the reimbursement or subsidy, determined in the proportion
    20     that the total indicated subsidy or reimbursement to be
    21     received over the remaining life of the issue bears to the
    22     total debt service to be paid over the remaining life of the
    23     issue, computed to stated maturity or earlier mandatory call
    24     dates.
    25  The principal amount of the bonds or notes of the local
    26  government unit of the authority which will constitute
    27  subsidized debt shall, in those instances where the subsidy is
    28  related to a percentage of lease rentals or to a percentage of
    29  sinking fund payments, in either case applicable solely to debt
    30  service, be that stated percentage of the bonds or notes. That
    19950S0689B2340                 - 173 -

     1  proportion of the bonds or of lease rental debt shall be
     2  excluded as subsidized debt. The filing may be made
     3  simultaneously with the filing for the approval of the balance
     4  of the bonds then being issued or may be made or corrected at a
     5  later date.
     6     (b)  Incurring new debt.--Each time any new debt is to be
     7  incurred, if subsidized debt is to be excluded, a new
     8  certification shall be made to the department, stating one of
     9  the following:
    10         (1)  That there has been no decrease in the subsidy.
    11         (2)  That there has been a decrease, in which case the
    12     certification shall include a recomputation of the principal
    13     amount to be excluded.
    14         (3)  That there has been an increase and the local
    15     government unit desires an increased exclusion certifying all
    16     matters so changed and recomputing the principal amount to be
    17     excluded.
    18     (c)  Approval by department.--If the department approves the
    19  exclusion of the principal amount of bonds or notes or lease
    20  rental debt as being subsidized debt in accordance with this
    21  subpart, originally or upon any recertification it shall return
    22  a duplicate original of the filing to the local government unit
    23  with its approval endorsed thereon. Upon receipt of the approval
    24  by the local government unit, the principal amount of bonds
    25  shall be excluded from nonelectoral debt or lease rental debt
    26  for the purpose of determining net debt in each category.
    27  § 8025.  Exclusion of self-liquidating debt evidenced by revenue
    28             bonds or notes to determine net nonelectoral debt.
    29     Self-liquidating debt evidenced by revenue bonds or notes
    30  shall not be excluded from nonelectoral debt for the purpose of
    19950S0689B2340                 - 174 -

     1  establishing net nonelectoral debt until the following have been
     2  filed with the department:
     3         (1)  A statement by the proper officials of the local
     4     government unit certifying the amount of the debt, the
     5     project for which it was incurred and the nature of the
     6     revenues from which the debt is to be repaid.
     7         (2)  A certificate from a qualified professional engineer
     8     or architect, or other person qualified by experience
     9     appropriate to the project, estimating the revenues and
    10     operating expenses of the project and showing that the net
    11     revenues so estimated will be sufficient to pay the annual
    12     debt service as it falls due.
    13         (3)  An opinion of the bond counsel approving the issue
    14     to the effect that the holders of the bonds or notes have no
    15     claim upon the taxing power or tax revenues of the local
    16     government unit issuing the bonds or notes, but only claims
    17     upon the specific revenues pledged and rights to the
    18     enforcement of any covenants as to the levying or collection
    19     of rates and charges for the use of the project being
    20     financed or any covenants as to the assessment of benefits
    21     upon properties serviceable by the project as provided in the
    22     covenants with the holders of the revenue bonds.
    23  § 8026.  Exclusion of other self-liquidating debt to determine
    24             net nonelectoral debt or net lease rental debt.
    25     (a)  Filings with department.--Self-liquidating debt shall
    26  not be excluded in determining net nonelectoral debt or net
    27  lease rental debt for the purpose of establishing net debt of
    28  either category where the debt is evidenced by general
    29  obligation bonds or notes, by bonds, notes or other obligations
    30  of an authority or of another local government unit or by a
    19950S0689B2340                 - 175 -

     1  guaranty until there has been filed with and approved by the
     2  department a report to the local government unit from qualified
     3  registered engineers or architects or other persons qualified by
     4  experience appropriate to the project, setting forth:
     5         (1)  The estimated or, if available, the actual cost of
     6     construction, acquisition or improvement of the project
     7     financed or to be financed.
     8         (2)  The principal amount of the general obligation bonds
     9     or notes, the bonds, notes or obligations guaranteed or the
    10     bonds or notes of an authority or another local government
    11     unit secured by an instrument evidencing lease rental debt
    12     which are to be issued, the dates, interest rate and amounts
    13     of each stated maturity thereof and, set forth separately,
    14     the same information with respect to the outstanding bonds,
    15     notes or obligations.
    16         (3)  The amount or the estimated amount of the annual
    17     debt service for each year during the life of all the bonds,
    18     notes or obligations or the bonds or notes of an authority or
    19     another local government unit secured by an instrument
    20     evidencing lease rental debt issued and intended to be issued
    21     to finance the project.
    22         (4)  The date or estimated date of the completion of the
    23     project.
    24         (5)  The estimated net revenues of the project for each
    25     year of the remaining life of the bonds, notes or obligations
    26     with a computation showing, in reasonable detail, that the
    27     net revenues, together with other available funds to be
    28     received in respect of the project, will be sufficient in
    29     each year to pay the annual debt service, other than
    30     capitalized debt service, on the bonds, notes or obligations
    19950S0689B2340                 - 176 -

     1     or a specified aggregate principal amount thereof.
     2         (6)  The qualified person's certificate that the
     3     estimates of net revenues have been computed from the
     4     person's best estimate of the gross revenues to be obtained
     5     from the rentals, rates, tolls and charges, interest to be
     6     received on reserve accounts, established or to be
     7     established by ordinance or from payments under bulk service
     8     or other contracts with other local government units or
     9     authorities for the use of the project, or the gross revenues
    10     to be received from special assessments levied to finance the
    11     project, by deducting from the gross revenues, in each year,
    12     the total estimated costs of operation and maintenance of the
    13     project chargeable against the revenues or assessments and
    14     any State taxes assumed on such bonds or notes all based on
    15     assumptions deemed reasonable for the purpose by that person.
    16         (7)  The qualified person's further certificate that he
    17     is qualified to act with regard to the type of project being
    18     financed, stating his experience.
    19     (b)  Approval by department.--If the department approves the
    20  exclusion of the principal amount of bonds, notes or obligations
    21  or bonds or notes of an authority of another local government
    22  unit secured by an instrument evidencing lease rental debt
    23  stated in the report as being self-liquidating debt as being in
    24  accordance with law, it shall endorse its approval upon a
    25  duplicate original of the proceedings and return it to the local
    26  government unit. Upon receipt of the approval by the local
    27  government unit, the principal amount of bonds, notes or
    28  obligations shall be excluded from nonelectoral debt or net
    29  lease rental debt, as the case may be, during the period of
    30  construction and thereafter until new electoral, nonelectoral or
    19950S0689B2340                 - 177 -

     1  lease rental debt is to be incurred. At that time, if the
     2  principal is to be excluded, a certification of no decrease,
     3  other than decreases resulting from the payment of bonds or
     4  notes, in the amount to be excluded shall be included in the
     5  debt statement to be filed pursuant to section 8110 (relating to
     6  debt statement). If there is a decrease, or if more of the debt
     7  is desired to be excluded as self-liquidating, a new
     8  certification shall be filed.
     9  § 8027.  Effect of debt limitations on outstanding debt.
    10     Notwithstanding anything in other law or in this subpart,
    11  this subpart shall not be construed to invalidate any debt which
    12  was lawful when incurred or which could have been lawfully
    13  incurred if this subpart had been in effect, whether incurred
    14  before or after the passage of this subpart, and the percentage
    15  limitations set forth in section 8022 (relating to limitations
    16  on incurring of other debt) shall be deemed increased to the
    17  extent necessary to cover such incurred debt. This subpart shall
    18  not be construed to subject any debt incurred and voted upon
    19  prior to July 12, 1972, as electoral debt to any of the
    20  limitations herein imposed by this subpart on nonelectoral debt.
    21  § 8028.  Determination of existing net nonelectoral debt and net
    22             nonelectoral plus net lease rental debt.
    23     (a)  Gross nonelectoral and lease rental debt.--From the
    24  gross principal amount of all incurred debt shall be subtracted
    25  gross incurred electoral debt. The amount remaining shall then
    26  be separated into gross incurred nonelectoral debt and gross
    27  incurred lease rental debt.
    28     (b)  Net nonelectoral and lease rental debt.--Net
    29  nonelectoral and net lease rental debt shall then be determined
    30  by subtracting separately from gross nonelectoral debt and gross
    19950S0689B2340                 - 178 -

     1  lease rental debt respectively, as may be applicable, and as the
     2  local government unit may desire to claim the following:
     3         (1)  All funds in the applicable sinking funds, whether
     4     controlled by the local government unit or by the authority
     5     which incurred the debt, reserve funds or accounts, except
     6     maintenance and replacement reserve funds or accounts, and
     7     net bond proceeds, held for the payment of the cost of a
     8     project financed by the debt, including, in each case,
     9     interest accrued thereon, but only to the extent that those
    10     funds are available for payment of the principal amount of
    11     the debt.
    12         (2)  The current appropriation for the payment of the
    13     principal of and overdue interest on the nonelectoral debt or
    14     for the payment of the net lease rental in the case of lease
    15     rental debt, except to the extent that the same has already
    16     been deposited in sinking funds.
    17         (3)  The uncollected amount of the benefits or costs or
    18     the estimates thereof which have been or are authorized to be
    19     assessed against owners of property and for which liens may
    20     be legally filed, to the extent that the assessments are
    21     available for the payment of the principal amount of the
    22     debt.
    23         (4)  The amount of delinquent taxes from prior years and
    24     other undisputed municipal liens actually filed against
    25     property less the sum of:
    26             (i)  A reserve, reasonable in amount, for so much
    27         thereof as may not be collected.
    28             (ii)  The amount thereof appropriated for current
    29         expenses in the current year's budget.
    30         (5)  The amount of self-liquidating debt, subsidized debt
    19950S0689B2340                 - 179 -

     1     and debt issued to fund an unfunded actuarial accrued
     2     liability, properly excluded and concurrently excludable from
     3     each respective category being computed.
     4         (6)  The amount of surplus cash not specifically
     5     appropriated to any purpose and available for the payment of
     6     the principal amount of debt, but if this deduction is
     7     claimed, the amount so claimed may not thereafter be
     8     appropriated to any purpose except the payment of debt.
     9         (7)  All other solvent debts due the local government
    10     unit directly, the payment of which can be enforced as one of
    11     the unit's quick assets, and which have not been committed to
    12     any other purpose.
    13         (8)  The amount of any insurance coverage indemnifying
    14     the local government unit against any outstanding liability
    15     to the extent the liability is debt.
    16     (c)  Priority of applying exclusions.--In determining net
    17  nonelectoral debt, the amounts claimed under subsection (b)(8)
    18  shall be exclusively applicable to nonelectoral debt, and
    19  subsection (b)(4), (6) and (7) shall be first applied against
    20  nonelectoral debt, with any excess being applicable against
    21  lease rental debt.
    22     (d)  Valuation of legal investments.--In computing the value
    23  of any funds, all legal investments therein shall be computed at
    24  current market values.
    25     (e)  Use of debt determinations.--The net nonelectoral debt
    26  so determined shall be used in determining compliance with the
    27  limit imposed by section 8022(a) (relating to limitations on
    28  incurring of other debt). The sum of the net nonelectoral debt
    29  and the net lease rental debt so determined shall be used in
    30  determining compliance with the limit imposed by section
    19950S0689B2340                 - 180 -

     1  8022(b).
     2  § 8029.  Determination of debt limits.
     3     Whenever it is necessary to determine the limitations on the
     4  amount of nonelectoral debt, or nonelectoral debt plus lease
     5  rental debt that may be incurred by any local government unit,
     6  the appropriate percentage limitations of section 8022 (relating
     7  to limitations on incurring of other debt) shall be applied to
     8  the borrowing base of the local government unit. The certificate
     9  as to the borrowing base shall be made a part of all proceedings
    10  for the sale of bonds or notes, for the guaranty of authority
    11  obligations or for the incurring of lease rental debt and a copy
    12  shall be filed with the department as a part of all proceedings
    13  required to be filed for its approval. The borrowing base set
    14  forth in the certificate and a similar certificate as to net
    15  nonelectoral debt or net lease rental debt outstanding shall be
    16  conclusive as to the respective figures for the purposes of this
    17  subpart, upon the approval of the proceedings by the department,
    18  unless contested within the specified time limits as provided in
    19  this subpart.
    20                            SUBCHAPTER C
    21            PROCEDURE FOR SECURING APPROVAL OF ELECTORS
    22  Sec.
    23  8041.  Desire resolution and expense of certain elections.
    24  8042.  Advertisement of election.
    25  8043.  Conduct of election.
    26  8044.  Finality of result of election.
    27  8045.  Effect of defeat of question.
    28  8046.  Issuance of bonds, notes or other instruments to evidence
    29         electoral debt.
    30  8047.  Cancellation or termination of approval of electors.
    19950S0689B2340                 - 181 -

     1  8048.  Limitation on use of proceeds of electoral debt.
     2  8049.  Manner of changing purpose of electoral debt.
     3  § 8041.  Desire resolution and expense of certain elections.
     4     (a)  Resolution.--Whenever the governing body of any local
     5  government unit shall determine that it is advisable to make an
     6  increase in the debt of the local government unit with the
     7  assent of the electors, or to obtain the assent of the electors
     8  to transfer any debt previously incurred without the approval of
     9  the electors to electoral debt, it shall adopt a resolution
    10  signifying that determination, calling an election for the
    11  purpose of obtaining the assent and approving the content and
    12  substantial form of notice of election.
    13     (b)  Date of election.--The date fixed shall be that of a
    14  municipal, general, primary or special election for other
    15  purposes, but if the date of the nearest of the elections is
    16  more than 90 or less than 30 days from the effective date of the
    17  desire resolution, the governing body may fix a date for a
    18  special election.
    19     (c)  Payment of expense of special election.--In the case of
    20  a special election to increase debt not held concurrently with
    21  an election for other purposes, the expense of holding the
    22  election shall be paid by the local government unit for whose
    23  benefit it is held.
    24  § 8042.  Advertisement of election.
    25     (a)  General rule.--Notice of the election shall be given in
    26  one but not more than two newspapers of general circulation in
    27  the local government unit and in the legal journal, if any,
    28  designated by the rules of court of the county in which the
    29  local government unit is located for the publication of legal
    30  notices and advertisements. If only newspaper publication is
    19950S0689B2340                 - 182 -

     1  done, the notice shall be published three times at intervals of
     2  not less than three days, but if published in a weekly newspaper
     3  and in the legal journal, it shall be published only twice, once
     4  a week for two successive weeks. The first publication in at
     5  least one newspaper shall be not less than 14 nor more than 21
     6  days before the election, but all publications shall be after
     7  the effective date of the resolution and need not be upon the
     8  same dates in different newspapers.
     9     (b)  Content of election notice.--The election notice shall
    10  contain and state:
    11         (1)  The date upon which the election is to be held.
    12         (2)  The estimated amount of the debt to be incurred or
    13     to be approved by the electors if already incurred.
    14         (3)  The project for which the debt will be or was
    15     incurred.
    16         (4)  The estimated cost of the project.
    17         (5)  The question to be submitted to the electors at the
    18     election, which shall be substantially in the following
    19     appropriate form:
    20             Shall debt in the sum of (insert amount) dollars for
    21             the purpose of financing (insert brief description of
    22             project) be (authorized to be incurred as)
    23             (transferred from nonelectoral debt to) debt approved
    24             by the electors?
    25  § 8043.  Conduct of election.
    26     (a)  Certification of resolution and question.--The governing
    27  body, at least 45 days before any election called pursuant to
    28  section 8041 (relating to desire resolution and expense of
    29  certain elections) shall cause to be certified to the county
    30  board of elections of each county in which the election is to be
    19950S0689B2340                 - 183 -

     1  held a copy of the desire resolution and the form of the
     2  question to be submitted to the electors.
     3     (b)  Regulation of election.--An election called pursuant to
     4  section 8041 shall be held at the place, during the hours and
     5  under the same regulations as provided by law for the holding of
     6  municipal elections. In receiving, counting and making returns
     7  of the votes cast, the inspectors, judges and clerks of the
     8  election shall be governed by the act of June 3, 1937 (P.L.1333,
     9  No.320), known as the Pennsylvania Election Code.
    10     (c)  Qualification of electors.--At the elections, only
    11  qualified electors of the local government unit, the debt of
    12  which is to be increased or approved by the electors may vote.
    13     (d)  Election returns.--The election officers and clerks
    14  shall make return on forms provided by the county board of
    15  elections of the votes cast on the question to the county board
    16  of elections. The county board of elections shall compute the
    17  vote and transmit a certified return thereof to the governing
    18  body of the local government unit, which shall enter the same on
    19  its minutes. If the certified return shows that a majority of
    20  those voting on the question have voted in favor thereof,
    21  irrespective of any other statute requiring a greater
    22  percentage, the local government unit shall file with the
    23  department a certified copy of the desire resolution, the
    24  certified return and proofs of publication of the notice of
    25  election, whereupon the amount of the debt so approved shall
    26  constitute electoral debt from the date of the election, subject
    27  to the provisions of section 8044 (relating to finality of
    28  result of election).
    29  § 8044.  Finality of result of election.
    30     Any interested party or any taxpayer may contest the validity
    19950S0689B2340                 - 184 -

     1  of any election proceedings under this subchapter by filing with
     2  the court a complaint in equity, specifically alleging any
     3  errors complained of in the proceedings, and the petitioner
     4  shall have the burden of proof. If no complaint has been filed
     5  or if a complaint has been filed and has been finally dismissed,
     6  the election shall be conclusively deemed to be valid. If, prior
     7  to the timely filing of a complaint, further proceedings in
     8  connection with the incurring of the debt have been filed with
     9  the department, then any contest shall proceed by way of an
    10  appeal from the action of the department upon the proceedings.
    11  The petition or appeal provided by this section shall be the
    12  party's or the taxpayer's sole and exclusive remedies.
    13  § 8045.  Effect of defeat of question.
    14     If at the election the question is defeated, another election
    15  for the same purpose may not be held until 155 days have elapsed
    16  since the prior election. During the interim no bonds or notes
    17  may be issued and no lease rental debt may be incurred for such
    18  purpose, except that nonelectoral or lease rental debt may be
    19  incurred if required to complete projects already under
    20  construction, to finance a different portion or portions of a
    21  capital budget or to evidence debt incurred for purposes and
    22  pursuant to a court approval obtained in accordance with section
    23  8022(e) (relating to limitations on incurring of other debt).
    24  § 8046.  Issuance of bonds, notes or other instruments to
    25             evidence electoral debt.
    26     If, at the election, the question is approved, the governing
    27  body shall issue bonds or notes as electoral debt as obligations
    28  of the local government unit or shall authorize execution and
    29  delivery of an instrument which, but for the electoral approval,
    30  would evidence lease rental debt at the times and evidencing the
    19950S0689B2340                 - 185 -

     1  amounts of obligations not exceeding in the aggregate the
     2  estimated amount approved by the electors, subject to the
     3  provisions of Subchapter C of Chapter 81 (relating to provisions
     4  of bonds and notes). The bonds, notes or obligations shall
     5  continue for such term as may have been stated in the notice of
     6  election or, if none was stated, for the term the governing body
     7  determines. The initial series may be of bond anticipation notes
     8  or of notes to be refunded by a bond issue. If the governing
     9  body determines it advisable, the initial series of bonds or
    10  notes constituting a part of the issue may be for a shorter term
    11  of years, with the maturity of subsequent series stated to
    12  mature later than the last stated maturity of the preceding
    13  series for the same project. This subchapter shall not preclude
    14  the issue of additional nonelectoral debt or lease rental debt
    15  to complete the project or the issue of additional electoral
    16  debt for that purpose if authorized by a subsequent election.
    17  § 8047.  Cancellation or termination of approval of electors.
    18     (a)  Lapse of time.--On the tenth anniversary of the date on
    19  which an assent of the electors obtained under this subpart
    20  became final, the authority to issue any or any further bonds or
    21  notes, other than as nonelectoral debt or lease rental debt
    22  subject to the limitations imposed by this subpart, shall
    23  terminate.
    24     (b)  Resolution of governing body.--The governing body of any
    25  local government unit may by resolution, without the assent of
    26  the electors, rescind or cancel, in whole or in part, the
    27  authorization to incur electoral debt for any reason stated in
    28  the resolution, and thereupon the assent of the electors shall
    29  be of no further effect. A certified copy of the resolution with
    30  proof of the due publication thereof shall be filed with the
    19950S0689B2340                 - 186 -

     1  department.
     2  § 8048.  Limitation on use of proceeds of electoral debt.
     3     Where bonds or notes have been issued pursuant to an assent
     4  of the electors given under this subpart, the proceeds thereof
     5  shall be kept in a separate account and shall be invested and
     6  used only for the cost, including the retirement of notes
     7  previously issued for the same project with the proceeds of
     8  bonds, of the project for which the assent was obtained unless
     9  such purpose is changed as provided in this subpart. Otherwise,
    10  the proceeds shall be kept invested and used for the retirement
    11  at maturity, or earlier call date, of the fifth or any
    12  subsequent stated maturity of the relevant series of bonds or
    13  notes, unless the proceeds were previously used to purchase the
    14  bonds or notes in the open market or upon tenders at prices not
    15  exceeding the principal amount thereof plus accrued and unpaid
    16  interest to the date of purchase.
    17  § 8049.  Manner of changing purpose of electoral debt.
    18     If the governing body determines it to be advisable either
    19  before or after the issue of bonds or notes to use the proceeds,
    20  or any part thereof, of bonds or notes evidencing electoral debt
    21  for any purpose other than the project approved by the electors
    22  or the payment or prior redemption or purchase of bonds or notes
    23  evidencing debt incurred for the project, the governing body
    24  shall by resolution express its desire to do so, specifying the
    25  project for which the funds are proposed to be used, and shall
    26  provide for an election to be held in like manner, time and
    27  place as provided in this subchapter for elections to secure the
    28  assent of the electors to the increase of debt, except that the
    29  notice of the election shall state:
    30         (1)  The date on which such election is to be held.
    19950S0689B2340                 - 187 -

     1         (2)  The date and amount of money theretofore borrowed
     2     and the project for which borrowed.
     3         (3)  The amount of money remaining unused.
     4         (4)  The new purpose for which the local government unit
     5     desires to make use of the money.
     6         (5)  The reason why the money is not being used for the
     7     purpose for which it was borrowed.
     8         (6)  The question to be submitted to the electors, which
     9     shall be substantially in the following form:
    10         Shall the sum of (insert amount) dollars heretofore
    11         borrowed or authorized to be borrowed by this local
    12         government unit for the purpose of (state purpose) be
    13         used for the purpose of (state purpose)?
    14  The election shall be conducted, return made thereon, notices of
    15  election published and certificates filed and recorded as
    16  provided in section 8043 (relating to conduct of election). If
    17  it appears that a majority of those voting on the question have
    18  voted in favor of using the funds for the changed purpose,
    19  irrespective of any other statute requiring a greater
    20  percentage, the funds specified may be used for the changed
    21  purpose.
    22                             CHAPTER 81
    23             INCURRING DEBT AND ISSUING BONDS AND NOTES
    24  Subchapter
    25     A.  General Provisions
    26     B.  Tax Anticipation Notes and Funding Debt
    27     C.  Provisions of Bonds and Notes
    28     D.  Sale of Bonds and Notes
    29                            SUBCHAPTER A
    30                         GENERAL PROVISIONS
    19950S0689B2340                 - 188 -

     1  Sec.
     2  8101.  Combining projects for financing or series of bonds
     3         or notes for sale.
     4  8102.  Preliminary authorizations as to financing.
     5  8103.  Ordinance authorizing issuance of documents evidencing
     6         lease rental debt.
     7  8104.  Covenant to pay bonds or notes or a guaranty.
     8  8105.  Additional provisions in ordinance authorizing issuance
     9         of revenue or guaranteed revenue bonds or notes.
    10  8106.  Sinking fund depository and trustee for bondholders
    11         or noteholders.
    12  8107.  Award of bonds or notes.
    13  8108.  Bond anticipation notes.
    14  8109.  Small borrowing for capital purposes.
    15  8110.  Debt statement.
    16  8111.  Submission to department.
    17  8112.  Agreements with bondholders or noteholders.
    18  8113.  Lost, stolen, destroyed or mutilated bonds or notes.
    19  8114.  Evidence of signatures of holders and of ownership of
    20         bonds, notes and tax anticipation notes.
    21  8115.  Contractual effect of ordinances and resolutions.
    22  8116.  Unfunded actuarial accrued liability - condition
    23         precedent.
    24  § 8101.  Combining projects for financing or series of bonds or
    25             notes for sale.
    26     The governing body of a local government unit may by
    27  ordinance take any of the following actions in connection with
    28  the issuance of bonds or notes or the authorization of the
    29  instrument creating lease rental debt:
    30         (1)  In lieu of combining two or more items or elements
    19950S0689B2340                 - 189 -

     1     permitted to be combined under the definition of project in
     2     section 8002 (relating to definitions) as a single project,
     3     designate any one or more of the items or elements as a
     4     project and combine the projects for financing purposes by
     5     one series of bonds or notes. If the series of bonds or notes
     6     are revenue bonds or notes, all projects so combined shall be
     7     revenue producing projects, all or a portion of the rates,
     8     rentals, receipts, tolls and charges may be combined, common
     9     reserve funds may be created and common or cross covenants
    10     may be made in respect of each project.
    11         (2)  Offer for simultaneous sale under separate or
    12     combined bids any two or more series of bonds or notes of any
    13     type.
    14         (3)  Provide for the financing of a project or projects
    15     by the issuance, either simultaneously or in succession, of
    16     any combination of instruments evidencing debt applicable to
    17     the project or projects and authorized by this subpart.
    18  Any ordinance required by this section may be included in any
    19  authorizing ordinance required by section 8103 (relating to
    20  ordinance authorizing issuance of documents evidencing lease
    21  rental debt).
    22  § 8102.  Preliminary authorizations as to financing.
    23     The governing body of a local government unit may express its
    24  intent to evidence debt as electoral debt, nonelectoral debt or
    25  lease rental debt. Action may be taken either by resolution,
    26  which may also provide for the submission of proposals to
    27  purchase any bonds or notes, or by ordinance. But neither bonds
    28  or notes nor lease, guaranty, subsidy contract or other
    29  agreement evidencing lease rental debt shall be authorized other
    30  than by the enactment of any ordinances required by this
    19950S0689B2340                 - 190 -

     1  subchapter or, in the case of notes issued under section 8109
     2  (relating to small borrowing for capital purposes), other than
     3  by adoption of the resolution required under section 8109.
     4  § 8103.  Ordinance authorizing issuance of documents evidencing
     5             lease rental debt.
     6     (a)  General rule.--The ordinance or ordinances or, in the
     7  case of notes issued under section 8109 (relating to small
     8  borrowing for capital purposes), the resolution authorizing the
     9  issuance of bonds or notes or the execution of a lease,
    10  guaranty, subsidy contract or other agreement evidencing lease
    11  rental debt by a local government unit shall contain, in
    12  substance:
    13         (1)  In all cases, including lease rental debt, the
    14     following:
    15             (i)  A brief description of the project for which the
    16         debt is to be incurred and, if a capital project, a
    17         realistic estimated useful life thereof.
    18             (ii)  A statement of the aggregate principal amount
    19         of bonds or notes proposed to be issued pursuant to the
    20         ordinance or, as the case may be, to be secured by the
    21         instrument evidencing lease rental debt.
    22             (iii)  A statement whether the debt is to be incurred
    23         as electoral debt, nonelectoral debt or lease rental
    24         debt.
    25             (iv)  An authorization and direction to one or more
    26         specified officers and their successors to prepare and
    27         certify and, except in the case of notes issued under
    28         section 8109, to file the debt statement required by
    29         section 8110 (relating to debt statement), to execute and
    30         deliver the bonds or notes or the instrument evidencing
    19950S0689B2340                 - 191 -

     1         lease rental debt and to take other necessary action.
     2         This designation may be changed from time to time
     3         thereafter.
     4             (v)  In the case of nonelectoral or lease rental debt
     5         which is subject to exclusion as subsidized debt or self-
     6         liquidating debt if the exclusion is presently desired,
     7         an authorization to the proper officers of the local
     8         government unit to prepare and file any statements
     9         required by Subchapter B of Chapter 80 (relating to
    10         limitations on debt of local government units) which are
    11         necessary to qualify all or any portion of the debt for
    12         exclusion from the appropriate debt limit as self-
    13         liquidating debt or subsidized debt.
    14         (2)  In every case except that of lease rental debt, the
    15     following:
    16             (i)  A statement whether the bonds or notes when
    17         issued will be general obligation bonds or notes,
    18         guaranteed revenue bonds or notes or revenue bonds or
    19         notes.
    20             (ii)  The covenant required by section 8104 (relating
    21         to covenant to pay bonds or notes or a guaranty) if the
    22         bonds or notes when issued will be general obligation
    23         bonds or notes or guaranteed revenue bonds or notes and
    24         the pledge of specific rents, revenues or receipts, if
    25         the bonds or notes when issued will be guaranteed revenue
    26         bonds or revenue bonds, and if limited guaranteed revenue
    27         bonds or notes, a statement of the limitations on the
    28         guaranty.
    29             (iii)  The substantial form of the bonds or notes to
    30         be issued, including the substantial form of any coupon
    19950S0689B2340                 - 192 -

     1         or authentication certificate.
     2             (iv)  A schedule of stated principal maturity or
     3         mandatory redemption amounts and dates, the rate or rates
     4         of interest and interest payment dates, places of
     5         payment, and, if desired, provisions for prior
     6         redemption, including call dates and call prices, all of
     7         which shall conform with Subchapter C (relating to
     8         provision of bonds and notes).
     9             (v)  A statement of the manner in which the bonds or
    10         notes are to be or have been sold and, if to be sold at
    11         public sale, the matters required or permitted by
    12         Subchapter D (relating to sale of bonds and notes) or, if
    13         to be sold at negotiated sale, there may be included the
    14         matters required or permitted by section 8107 (relating
    15         to award of bonds or notes).
    16             (vi)  Except in the case of notes issued under
    17         section 8109, a covenant creating the sinking fund
    18         required by Subchapter B of Chapter 82 (relating to
    19         sinking funds and other funds and accounts).
    20             (vii)  A statement of any tax or taxes the payment of
    21         which is assumed by the local government unit in
    22         consideration of the purchase of the bonds or notes and,
    23         if desired, authorization for the purchase of bond
    24         insurance.
    25             (viii)  The authorization to the proper officials of
    26         the local government unit to contract with one or more
    27         banks or bank and trust companies for services as
    28         trustee, fiscal agent, sinking fund depository or paying
    29         agent, and to contract with any additional copaying
    30         agents desired, but compliance with this subparagraph
    19950S0689B2340                 - 193 -

     1         shall not be required in the case of notes issued under
     2         section 8109.
     3         (3)  In the case of lease rental debt, the authorization
     4     to the proper officials of the local government unit to
     5     execute and deliver a lease, guaranty, subsidy contract or
     6     other agreement, the annual or semiannual rental or payment
     7     to be paid thereunder, any sources of payment and, in the
     8     case of a guaranty, the covenant required by section 8104.
     9         (4)  In the case of revenue or guaranteed revenue bonds
    10     or notes, the inclusion of the matters set forth in sections
    11     8105 (relating to additional provisions in ordinance
    12     authorizing issuance of revenue or guaranteed revenue bonds
    13     or notes), 8147 (relating to pledge of revenues) and 8148
    14     (relating to deeds of trust and other agreements with
    15     bondholders and noteholders).
    16     (b)  Date of incurring nonelectoral and lease rental debt.--
    17  The nonelectoral debt evidenced by the issuance of bonds or
    18  notes or the lease rental debt evidenced by the execution of a
    19  lease, guaranty, subsidy contract or other agreement shall be
    20  deemed to have been incurred upon the final enactment of the
    21  ordinance required by this section or, in the case of small
    22  borrowings, upon final adoption of the resolution required by
    23  section 8109. Electoral debt is incurred when the assent of the
    24  electors has been given.
    25     (c)  Change in purpose of nonelectoral general obligation
    26  debt.--In the case of nonelectoral general obligation debt, the
    27  purpose may be changed by similar action at any time.
    28  § 8104.  Covenant to pay bonds or notes or a guaranty.
    29     (a)  General rule.--The local government unit shall, in the
    30  ordinance authorizing the issue of bonds or notes or a guaranty
    19950S0689B2340                 - 194 -

     1  or in such bonds or notes, or in the trust indenture securing
     2  the same, or in the instrument of guaranty, covenant with the
     3  holders from time to time of the bonds or notes or guaranteed
     4  bonds or notes, and of the coupons thereto appertaining, that
     5  the local government unit shall do the following:
     6         (1)  Include the amount of the debt service, or the
     7     amounts payable in respect of its guaranty, in each case
     8     specified in the covenant, for each fiscal year in which the
     9     sums are payable in its budget for that year.
    10         (2)  Appropriate those amounts from its general or
    11     specially pledged revenues, as the case may be, for the
    12     payment of the debt service or guaranty.
    13         (3)  Duly and punctually pay or cause to be paid from its
    14     sinking fund or any other of its revenues or funds the
    15     principal of and interest on every bond or note or, to the
    16     extent of its obligation, the amount payable in respect of
    17     the guaranty, at the dates and places and in the manner
    18     stated in the bonds and in the coupons thereto appertaining
    19     or in the guaranty, according to the true intent and meaning
    20     thereof.
    21     (b)  Obligation of government unit.--For budgeting,
    22  appropriation and payment in respect of its general obligation
    23  bonds or notes, its guaranteed revenue bonds or notes or its
    24  guaranty of the bonds or notes of an authority or other local
    25  government unit, the local government unit shall pledge its full
    26  faith, credit and taxing power unless a guaranty is limited to
    27  specified revenues of the guarantor. Nothing in the covenant
    28  shall obligate the local government unit to budget, appropriate
    29  or make any payments on limited guaranteed revenue bonds or on a
    30  limited guaranty of bonds or notes of any authority or other
    19950S0689B2340                 - 195 -

     1  local government unit beyond the stated terms of its guaranty.
     2  The covenant shall be specifically enforceable. This section
     3  does not give any local government unit any taxing power not
     4  granted by another provision of law.
     5  § 8105.  Additional provisions in ordinance authorizing issuance
     6             of revenue or guaranteed revenue bonds or notes.
     7     In addition to the provisions required or permitted by
     8  sections 8103 (relating to ordinance authorizing issuance of
     9  documents evidencing lease rental debt), 8147 (relating to
    10  pledge of revenues) and 8148 (relating to deeds of trust and
    11  other agreements with bondholders and noteholders), the
    12  ordinance authorizing the issuance of revenue bonds or notes or
    13  guaranteed revenue bonds or notes may also contain the
    14  following:
    15         (1)  Covenants or provisions with respect to the
    16     collection, custody, investment and disbursement of rents,
    17     revenues, rates and charges for the use of the project as may
    18     be desired.
    19         (2)  Covenants as to the fixing and collection of rents,
    20     rates and charges for the use of the project as may be
    21     desired and deemed necessary for the lawful security of the
    22     holders of the bonds or notes, except that no covenant and no
    23     agreement with the holders of bonds or notes shall require an
    24     increase in the rents, rates, tolls and charges to a level
    25     which, in the opinion of the registered professional engineer
    26     advising the local government unit, will result in a decrease
    27     in gross revenues over what would have been received at a
    28     somewhat lower rate level.
    29         (3)  Provisions granting a security interest in the
    30     rents, revenues, rates, tolls and charges for the security
    19950S0689B2340                 - 196 -

     1     and benefit of the holders of the notes, bonds and coupons.
     2         (4)  Provisions creating such reserve funds or accounts
     3     as deemed desirable for the future security of the notes,
     4     bonds and coupons and requiring the observance of such
     5     covenants on the part of the local government unit deemed
     6     necessary or desirable for the protection of the holders of
     7     the notes, bonds and coupons or for the maintenance and
     8     preservation of the project.
     9         (5)  Authorization to the proper officers of the local
    10     government unit to execute and deliver any trust indenture
    11     containing any other, further and lawful provisions desired.
    12  § 8106.  Sinking fund depository and trustee for bondholders or
    13             noteholders.
    14     (a)  General rule.--Every local government unit issuing bonds
    15  or notes other than notes issued under section 8109 (relating to
    16  small borrowing for capital purposes) shall appoint a sinking
    17  fund depository which may also serve as paying agent for the
    18  bonds or notes. The sinking fund depository shall be a bank or
    19  bank and trust company authorized to do business in this
    20  Commonwealth and may serve as one for one or more series of
    21  bonds or notes. Funds, which may include interest accrued and to
    22  accrue on lawful investments, in an amount sufficient for the
    23  payment of the principal of, and the interest on, the bonds or
    24  notes shall be deposited with the sinking fund depository not
    25  later than the date fixed for the disbursement thereof, unless
    26  the ordinance authorizing the issuance of the bonds or notes
    27  requires that the deposits be made on an earlier date or on
    28  earlier dates.
    29     (b)  Fiscal agent or trustee.--If the ordinance authorizing
    30  the issuance of the bonds or notes provides for a fiscal agent,
    19950S0689B2340                 - 197 -

     1  or authorizes the execution of a trust indenture appointing a
     2  trustee, the fiscal agent or trustee shall also be the sinking
     3  fund depository.
     4     (c)  Remedy for failure to make deposit.--If the local
     5  government unit shall fail or refuse to make any required
     6  deposit in the sinking fund, the sinking fund depository, the
     7  fiscal agent or the trustee, as the case may be, may and, upon
     8  request of the holders of 25% in principal amount of the
     9  outstanding notes and bonds and upon being indemnified against
    10  cost and expense, shall exercise any remedy provided in this
    11  subpart or at law or in equity, for the equal and ratable
    12  benefit of the holders of the outstanding notes, bonds and
    13  coupons, and shall disburse all funds so collected equally and
    14  ratably to the holders of the notes, bonds and coupons as
    15  provided in the ordinance authorizing the bonds, subject to any
    16  limitations contained in Subchapter D of Chapter 82 (relating to
    17  remedies).
    18  § 8107.  Award of bonds or notes.
    19     When an acceptable proposal for the purchase of the bonds or
    20  notes, or any part thereof offered separately, has been received
    21  and is in conformity with the terms of the official invitation
    22  for proposals or is an acceptable proposal at a negotiated or
    23  invited sale, and is in compliance with the provisions of this
    24  subpart, it may be accepted by resolution or by ordinance. If
    25  the acceptance is made by resolution, the acceptance shall be
    26  conditional upon compliance with section 8103 (relating to
    27  ordinance authorizing issuance of documents evidencing lease
    28  rental debt). If the acceptance is made by ordinance, the
    29  ordinance shall also fix any details of the series of bonds or
    30  notes being sold, not fixed by prior ordinance, and award the
    19950S0689B2340                 - 198 -

     1  bonds or notes, or those which have been sold, to specified
     2  purchasers at prices specified in the ordinance. These
     3  provisions may be included in the ordinance adopted pursuant to
     4  section 8103. Notwithstanding any other provision of this
     5  subpart or of any other statute, as between the local government
     6  unit and the purchasers, an awarding resolution or ordinance
     7  shall be effective upon its final adoption or enactment by the
     8  governing body. The advertisement of the ordinance prior to
     9  enactment shall be sufficient if it describes the items to be
    10  completed from the proposal.
    11  § 8108.  Bond anticipation notes.
    12     (a)  Issuance.--The governing body may evidence all or part
    13  of any electoral or nonelectoral debt by the issue of a series
    14  of bond anticipation notes. These notes shall be payable by
    15  exchange for, or out of the proceeds of, the sale of a
    16  designated series of bonds referred to in the bond anticipation
    17  notes. The reference to the bonds shall specify a maximum rate
    18  of interest to be borne by the series of bonds and provide that
    19  the series shall be offered for sale but, if no proposals are
    20  received, the sole remedy of the holders of the bond
    21  anticipation notes shall be either to accept the bonds at the
    22  specified maximum interest rate, or to extend the maturity of
    23  the bond anticipation notes for one or more specified additional
    24  periods of not less than six months each during which time
    25  additional offers of the bonds may be made.
    26     (b)  Procedure.--Bond anticipation notes may be authorized,
    27  issued and sold in the same manner as the bonds in anticipation
    28  whereof the notes are being issued and principal amounts thereof
    29  shall be retired in accordance with the specified stated
    30  maturity dates of the bonds occurring prior to the refunding of
    19950S0689B2340                 - 199 -

     1  the notes.
     2  § 8109.  Small borrowing for capital purposes.
     3     (a)  General rule.--Any local government unit may incur debt
     4  by resolution rather than by ordinance to be evidenced by notes
     5  to provide funds for a project as defined in this subpart
     6  without complying with the requirements of Subchapter A of
     7  Chapter 82 (relating to Department of Community Affairs) if:
     8         (1)  The aggregate amount of the debt outstanding at any
     9     one time shall not exceed the lesser of $100,000 or 30% of
    10     the borrowing base.
    11         (2)  The principal of each debt shall mature not later
    12     than five years from the date of issuance.
    13         (3)  The incurrence of the debt shall not cause the debt
    14     limits of Subchapter B of Chapter 80 (relating to limitations
    15     on debt or local government units) to be exceeded.
    16         (4)  The provisions of section 10 of Article IX of the
    17     Constitution of Pennsylvania shall have been observed.
    18         (5)  The provisions of section 8208 (relating to
    19     invalidity of instruments which are delivered without
    20     compliance with requirements or conditions precedent to
    21     issuance or delivery) shall apply to notes issued in
    22     violation of the requirements of this subsection.
    23     (b)  Applicability of other provisions.--Except as otherwise
    24  specifically stated in this section or in Subchapters A
    25  (relating to general provisions), C (relating to provisions of
    26  bonds and notes) and D (relating to sale of bonds and notes),
    27  the provisions of Subchapter A applicable to ordinances
    28  authorizing general obligation bonds or notes and the provisions
    29  of Subchapters C and D applicable to general obligation bonds or
    30  notes shall apply, respectively, to resolutions authorizing
    19950S0689B2340                 - 200 -

     1  notes and to the notes authorized under this section.
     2     (c)  Sale of notes.--Notes authorized under this section may
     3  be sold, without formal documents of sale, by delivery of the
     4  notes upon receipt of the purchase price, or at the option of
     5  the local government unit, they may be sold in compliance with
     6  section 8107 (relating to award of bonds or notes) in which
     7  event the term "ordinance" in section 8107 shall have reference
     8  to the authorizing resolution required by this section.
     9     (d)  Refunding notes.--Refunding notes may be issued in
    10  compliance with this section and with the provisions of
    11  Subchapter C of Chapter 82 (relating to refunding of debt) for
    12  the purpose of refunding notes previously issued under this
    13  section provided that the maturity of the refunding notes shall
    14  not extend beyond five years from the date of issuance of the
    15  notes originally evidencing the debt refunded.
    16  § 8110.  Debt statement.
    17     (a)  General rule.--Before delivering any general obligation
    18  bonds or notes or guaranteed revenue bonds or notes constituting
    19  nonelectoral debt or before executing an instrument evidencing
    20  lease rental debt, the officer or officers of a local government
    21  unit shall prepare and verify under oath a debt statement as of
    22  a date not more than 60 days before the filing with the
    23  department or, in the case of notes issued under section 8109
    24  (relating to small borrowing for capital purposes), before the
    25  final adoption of the resolution authorizing their issue,
    26  showing:
    27         (1)  The gross indebtedness of the local government unit
    28     giving prospective effect to the provisions of section
    29     8250(b) (relating to use of proceeds of refunding bonds and
    30     when refunded bonds are no longer deemed outstanding) if debt
    19950S0689B2340                 - 201 -

     1     is to be refunded.
     2         (2)  By items, the claimed credits and exclusions from
     3     the gross indebtedness permitted by this subpart in
     4     determining net debt.
     5         (3)  The aggregate principal amount of the bonds or notes
     6     being issued or evidencing lease rental debt.
     7         (4)  The borrowing base of the local government unit as
     8     shown by an appended borrowing base certificate.
     9         (5)  The applicable nonelectoral debt limit and the limit
    10     for nonelectoral plus lease rental debt computed as provided
    11     in this subpart.
    12         (6)  In the case of a refunding, the principal amount of
    13     bonds or notes which will no longer be deemed to be
    14     outstanding pursuant to section 8250(b) after settlement of
    15     the issue.
    16     (b)  Previously excluded self-liquidating or subsidized
    17  debt.--Where debt has previously been excluded as self-
    18  liquidating or subsidized debt, the debt statement shall be
    19  accompanied by a certification that no decrease in the amounts
    20  to be excluded is required by any change of circumstances or, if
    21  there has been a change, other than decreases resulting from the
    22  payments of bonds or notes, so that less debt is to be excluded.
    23  If it has become possible to exclude a greater amount of debt,
    24  and the local government unit desires to do so, the debt
    25  statement shall be accompanied by appropriate certificates
    26  supporting the revised amount to be excluded, and a revised
    27  approval shall be obtained from the department.
    28  § 8111.  Submission to department.
    29     (a)  General rule.--Before delivering any bonds or notes
    30  other than notes representing small borrowings issued under
    19950S0689B2340                 - 202 -

     1  section 8109 (relating to small borrowing for capital purposes),
     2  the local government unit shall apply for and receive or be
     3  deemed to have received the approval of the department under
     4  section 8204 (relating to certificate of approval of transcript)
     5  or 8206 (relating to effect of failure of timely action by
     6  department). The application, in such form as the department
     7  prescribes, shall be accompanied by a transcript of the
     8  proceedings consisting of certified copies of any of the
     9  following, not previously filed, which are applicable:
    10         (1)  The ordinance calling the election in the case of
    11     electoral debt with proofs of all proper advertisements.
    12         (2)  The return of election.
    13         (3)  The ordinance or ordinances authorizing the bonds or
    14     notes with proofs of proper publication.
    15         (4)  The accepted proposal for the purchase of the bonds
    16     or notes.
    17         (5)  The ordinance or resolution awarding the bonds or
    18     notes with proofs of proper publication of the ordinance.
    19         (6)  The debt statement if required by section 8110
    20     (relating to debt statement) prepared pursuant thereto.
    21         (7)  Any certificates and proofs that may be necessary
    22     for the exclusion of any portion of the series proposed to be
    23     delivered or any prior series as self-liquidating debt or
    24     subsidized debt if the exclusion is desired by the local
    25     government unit.
    26     (b)  Lease rental debt submissions.--Before becoming bound on
    27  any lease, guaranty, subsidy contract or other agreement
    28  evidencing lease rental debt, a local government unit shall
    29  apply for and receive or be deemed to have received the approval
    30  of the department under section 8204 or 8206. The application,
    19950S0689B2340                 - 203 -

     1  in a form the department prescribes, shall be accompanied by
     2  certified copies of the following:
     3         (1)  The ordinance authorizing the execution of the
     4     lease, guaranty, subsidy contract or other agreement with
     5     proofs of proper publication.
     6         (2)  The debt statement prepared pursuant to section
     7     8110.
     8     (c)  Validity of lease rental debt agreements.--No lease,
     9  guaranty, subsidy contract or other agreement evidencing lease
    10  rental debt executed and delivered after July 12, 1972, and
    11  prior to the approval pursuant to section 8204 or 8206 of the
    12  department shall be valid or obligatory. Except as reference is
    13  made in this subpart to lease rental debt, this subpart shall
    14  have no application to the authorization, issue or sale of its
    15  obligations by any authority.
    16     (d)  Number of counterparts.--The application may be made in
    17  as many counterparts as desired. The department, if it approves
    18  the application, shall return all counterparts, except one, with
    19  its certificate of approval appended to each.
    20  § 8112.  Agreements with bondholders or noteholders.
    21     Except as otherwise specified in this subpart, a local
    22  government unit may enter into and perform contracts with the
    23  holders of its bonds or notes binding upon the original
    24  purchasers and their respective transferees placing greater
    25  reasonable and lawful restrictions on the local government unit
    26  or on the action of individual holders of bonds or notes than
    27  are provided in this subpart, but no additional agreement
    28  restricting the action of a holder of a bond or note shall be
    29  binding upon a remote holder of a bond or note unless the
    30  substance of the agreement is set forth in the text of the bond
    19950S0689B2340                 - 204 -

     1  or note, or set forth in a bond resolution or indenture of trust
     2  which is kept available in one or more designated public offices
     3  and to all of which a reference is made in the text of the bond
     4  or note.
     5  § 8113.  Lost, stolen, destroyed or mutilated bonds or notes.
     6     (a)  General rule.--If any temporary or definitive bond or
     7  note, including any tax anticipation note, lawfully issued under
     8  this subpart or under applicable law prior to July 12, 1972,
     9  becomes mutilated or is destroyed, stolen or lost, the local
    10  government unit shall execute, and any sinking fund depository,
    11  fiscal agent or trustee for bondholders shall, if required,
    12  authenticate and deliver a new bond or note, with appropriate
    13  coupons attached in the case of a bond or note in coupon form,
    14  of like series and principal amount as the bond or note and
    15  attached coupons, if any, so mutilated, destroyed, stolen or
    16  lost, upon surrender and cancellation of the mutilated bond or
    17  note and attached coupons, if any, or in lieu of and in
    18  substitution for the bond or note and coupons, if any,
    19  destroyed, stolen or lost.
    20     (b)  Procedure.--The local government unit shall proceed as
    21  required under subsection (a) upon filing with the local
    22  government unit or, if so provided in the bond ordinance, with
    23  the sinking fund depository, fiscal agent or trustee, evidence
    24  satisfactory to it that the bond or note and attached coupons,
    25  if any, have been destroyed, stolen or lost and proof of
    26  ownership thereof and upon furnishing of satisfactory indemnity
    27  and complying with such other reasonable regulations as the
    28  local government unit shall prescribe, and paying any reasonable
    29  expenses, including counsel fees, as the local government unit
    30  or the sinking fund depository, fiscal agent or trustee may
    19950S0689B2340                 - 205 -

     1  incur. Mutilated bonds or notes and appurtenant coupons, if any,
     2  surrendered shall be canceled.
     3     (c)  Status of replacement bonds and notes.--The new bonds or
     4  notes and coupons, if any, so issued shall be independent
     5  obligations and all limitations and debt limits shall be deemed
     6  increased to the extent necessary to validate the new bonds or
     7  notes and any appurtenant coupons.
     8  § 8114.  Evidence of signatures of holders and of ownership of
     9             bonds, notes and tax anticipation notes.
    10     Any request, consent or other instrument which may be
    11  required or permitted to be executed by the holders of bonds or
    12  notes, including tax anticipation notes, may be in one or more
    13  instruments of similar tenor and shall be signed or executed by
    14  the holders in person or by their attorneys appointed in
    15  writing. Proof of the execution of the instrument, or of an
    16  instrument appointing any such attorney, or the holding by any
    17  person of bonds or notes or coupons appertaining thereto, shall
    18  be sufficient for the purposes of this subpart and any
    19  proceeding thereunder if made in the following manner:
    20         (1)  The certificate shall state that the person or
    21     persons signing the instrument were known to be such persons
    22     by the individual certifying and that the person or persons
    23     acknowledged the execution of the instrument as his or their
    24     act. The authority of an attorney or agent may be proven by
    25     like statement of the principal acknowledged in a like
    26     manner, but a certificate as to authority shall not be
    27     necessary if an instrument is executed on behalf of a
    28     corporate holder of bonds, notes or coupons by a person
    29     purporting to be the president or a vice president of the
    30     corporation with the corporate seal affixed and attested by a
    19950S0689B2340                 - 206 -

     1     person purporting to be its secretary or an assistant
     2     secretary. The fact and date of the execution by the holder
     3     of any bond, note or coupon, or the attorney thereof, of any
     4     instrument may be proved by the certificate, which, except as
     5     provided in this section, need not be acknowledged or
     6     verified, of any of the following:
     7             (i)  An officer of any bank or bank and trust company
     8         which is in this Commonwealth or which has a
     9         correspondent in this Commonwealth certifying to the
    10         authenticity of its certificate.
    11             (ii)  An authorized signer for any broker or dealer
    12         in securities doing business in this Commonwealth or
    13         having a correspondent in this Commonwealth certifying to
    14         the authenticity of its certificate.
    15             (iii)  Any notary public or other officer authorized
    16         to take acknowledgments of deeds to be recorded in the
    17         state in which he purports to act.
    18             (iv)  Any other witness to the execution whose
    19         certificate must be verified before a notary public or
    20         other officer authorized to take acknowledgments of deeds
    21         in the state in which he purports to act.
    22         (2)  The ownership of fully registered bonds or notes or
    23     of notes issued payable to the order of a named person, or
    24     bonds or notes registered as to principal, and the amount,
    25     number and date of holding them shall be proved by the
    26     registry records maintained for the series in question.
    27         (3)  The amount of bonds or notes transferable by
    28     delivery held by any person executing any instrument as the
    29     holder of a bond, note or coupon, the number thereof and the
    30     date of holding the bond, note or coupon may be proved by a
    19950S0689B2340                 - 207 -

     1     like certificate of any person mentioned in paragraph (1)(i)
     2     or (ii) stating that the holder exhibited to the person
     3     executing the certificate, or had on deposit with him, the
     4     bonds or notes described in the certificate. For purposes of
     5     action to be taken by the holders of the bonds, notes or
     6     coupons, the holder shall be deemed to continue if he acts
     7     for a period of nine months after the date of the proof of
     8     holding. Continued ownership after this period shall require
     9     a new certificate or shall be taken as continuing if the
    10     original certificate contains a statement that the bonds,
    11     notes or coupons are on deposit with the signer and an
    12     undertaking not to release them, and not to attorn to any new
    13     owner, unless the certificate is presented to the depository.
    14         (4)  Any request, consent or vote of the owner of any
    15     bond, note or coupon shall bind all future holders thereof if
    16     a notation of the action is placed on the bond, note or
    17     coupon, and also, even if not so noted, if notice thereof is
    18     given once by publication in a newspaper of general
    19     circulation in the county in which the local government unit
    20     is located and in a journal of general circulation among
    21     dealers in investment securities.
    22         (5)  In cases of disputed ownership, and in other cases,
    23     in its discretion, a court, a local government unit or
    24     trustee or fiscal or paying agent may require further or
    25     other proof in cases where it deems it desirable.
    26  § 8115.  Contractual effect of ordinances and resolutions.
    27     Except as otherwise provided in any ordinance or resolution
    28  authorizing or awarding bonds or notes or tax anticipation
    29  notes, the terms thereof and of this subpart as in effect when
    30  the bonds or notes were authorized shall constitute a contract
    19950S0689B2340                 - 208 -

     1  between the local government unit and the holders from time to
     2  time of the bonds and notes subject to modification by the vote
     3  of a majority of the holders or such larger portion thereof as
     4  may be provided in the bond or note.
     5  § 8116.  Unfunded actuarial accrued liability - condition
     6             precedent.
     7     No bond or note issued to fund an unfunded actuarial accrued
     8  liability shall be valid or obligatory in the hands of an
     9  original purchaser until certified copies of the ordinance or
    10  ordinances authorizing bonds or notes, the ordinance or
    11  resolution awarding the bonds or notes and the certificate of
    12  approval of the department have been filed with the Public
    13  Employee Retirement Commission. No approval of the Public
    14  Employee Retirement Commission shall be required.
    15                            SUBCHAPTER B
    16              TAX ANTICIPATION NOTES AND FUNDING DEBT
    17  Sec.
    18  8121.  Power to issue tax anticipation notes.
    19  8122.  Limitation on amount of tax anticipation notes.
    20  8123.  Maturity date and time of payment of interest.
    21  8124.  Other terms of tax anticipation notes.
    22  8125.  Security for tax anticipation notes and sinking fund.
    23  8126.  Certification as to taxes and revenues to be collected.
    24  8127.  Sale of tax anticipation notes.
    25  8128.  Condition precedent to validity of tax anticipation notes.
    26  8129.  Scope of unfunded debt.
    27  8130.  Approval by court to fund unfunded debt.
    28  § 8121.  Power to issue tax anticipation notes.
    29     A local government unit may have power and authority, by
    30  resolution of its governing body, to borrow money from time to
    19950S0689B2340                 - 209 -

     1  time in any fiscal year in anticipation of the receipt of
     2  current taxes or current revenues, or both, to evidence the
     3  obligation by notes, appropriately designated, and to authorize,
     4  issue and sell the notes in the manner, and subject to the
     5  limitations provided therefor in this subchapter. References in
     6  this subpart to tax anticipation notes include also revenue
     7  anticipation notes and tax and revenue anticipation notes.
     8  Limitations imposed by this subpart on the incurring of
     9  nonelectoral debt shall not apply to the obligations evidenced
    10  by tax anticipation notes. The power to borrow from time to time
    11  shall include the power to make a single authorization and then
    12  issue and sell portions of that amount of authorized notes
    13  whenever desired during the fiscal year.
    14  § 8122.  Limitation on amount of tax anticipation notes.
    15     (a)  General rule.--No local government unit shall authorize
    16  or issue tax anticipation notes in any one fiscal year which in
    17  the aggregate shall exceed 85% of:
    18         (1)  In the case of notes solely payable from and secured
    19     by a pledge of taxes, the amount of the taxes levied for the
    20     current fiscal year.
    21         (2)  In the case of notes solely payable from and secured
    22     by a pledge of revenues other than tax revenues, the amount
    23     of the revenues pledged.
    24         (3)  In the case of notes payable from and secured by a
    25     pledge of taxes and other revenues, the sum of the taxes
    26     levied and the revenues pledged.
    27  The taxes or revenues or both shall be certified, pursuant to
    28  section 8126 (relating to certification as to taxes and revenues
    29  to be collected), as remaining to be collected or received in
    30  the fiscal year during the period when the notes will be
    19950S0689B2340                 - 210 -

     1  outstanding. The certificate shall be as of a date not more than
     2  30 days prior to, and no later than, the date of the vote on the
     3  resolution authorizing the issue and sale of the tax
     4  anticipation notes.
     5     (b)  Computation of notes outstanding.--In computing the
     6  aggregate amount of tax anticipation notes outstanding at any
     7  given time during the fiscal year for the purpose of the
     8  limitation imposed by this section, allowance shall be made for
     9  notes that have already been fully paid and for amounts already
    10  paid into appropriate sinking funds, if any.
    11  § 8123.  Maturity date and time of payment of interest.
    12     No tax anticipation notes shall be stated to mature beyond
    13  the last day of the fiscal year in which the tax anticipation
    14  notes are issued. Interest on tax anticipation notes from the
    15  date thereof shall be payable at the maturity of the notes or
    16  payable in installments at such earlier dates and at such annual
    17  rate or rates determined by the governing body of the local
    18  government unit.
    19  § 8124.  Other terms of tax anticipation notes.
    20     Tax anticipation notes shall be issued in denominations,
    21  shall be subject to rights of prior redemption, shall have
    22  privileges of interchange and registration, shall be dated,
    23  shall be stated to mature, subject to the provisions of section
    24  8123 (relating to maturity date and time of payment of
    25  interest), on dates and in amounts, shall be in registered or
    26  bearer form with or without coupons, shall be payable in such
    27  coin or currency as at the place and at the time of payment is
    28  legal tender for the payment of public and private debts and
    29  shall be payable at any place or places, one of which shall be
    30  in this Commonwealth, all as the governing body of the issuing
    19950S0689B2340                 - 211 -

     1  local government unit may determine by resolution.
     2  § 8125.  Security for tax anticipation notes and sinking fund.
     3     (a)  General rule.--All tax anticipation notes issued in a
     4  single fiscal year shall be equally and ratably secured by the
     5  pledge of, security interest in, and a lien and charge on, the
     6  taxes or revenues, or both, of the local government unit
     7  specified in the authorizing resolution to be received during
     8  the period when the notes will be outstanding. The pledge, lien
     9  and charge shall be fully perfected as against the local
    10  government unit, all creditors thereof and all third parties in
    11  accordance with the terms of the resolution from and after the
    12  filing of any financing statement or statements required under
    13  Title 13 (relating to commercial code). For the purpose of this
    14  filing, the sinking fund depository, if any, otherwise the
    15  fiscal agent or paying agent designated in the notes, may act as
    16  the representative of noteholders and, in such capacity, execute
    17  and file the financing statement and any continuation or
    18  termination statements as secured party. The authorizing
    19  resolution may establish one or more sinking funds and provide
    20  for periodic or other deposits therein and may contain covenants
    21  or other provisions as the local government unit determines. The
    22  amount of any tax anticipation notes issued in compliance with
    23  this subpart shall be general obligations of the local
    24  government unit and, if the amounts are not paid within the
    25  fiscal year in which the notes were issued, they shall be deemed
    26  to be nonelectoral debt enforceable in the manner of a general
    27  obligation which, unless funded pursuant to this subpart, shall
    28  be included in the budget of the local government unit for the
    29  ensuing fiscal year and shall be payable from the taxes and
    30  revenues of the ensuing year notwithstanding that the amount
    19950S0689B2340                 - 212 -

     1  thereof shall cause the nonelectoral debt of the local
     2  government unit to exceed the limitations of Subchapter B of
     3  Chapter 80 (relating to limitations on debt of local government
     4  units).
     5     (b)  First class school districts.--The holder of the tax
     6  anticipation notes issued by a first class school district or
     7  the sinking fund depository of the applicable sinking fund, if
     8  any, shall have the right to enforce the pledge of security
     9  interest in and lien and charge on the pledged taxes and
    10  revenues of the first class school district against all
    11  Commonwealth and local public officials in possession of any of
    12  the taxes and revenues at any time which may be collected
    13  directly from the officials upon notice by the holder or
    14  depository for application to the payment as and when due or for
    15  deposit in the applicable sinking fund at the times and in the
    16  amounts specified in the tax anticipation notes. Any
    17  Commonwealth or local public official in possession of any of
    18  the taxes and revenues shall make payment, against receipt
    19  therefor, directly to the holder of the tax anticipation notes
    20  or to the depository upon the notice and shall thereby be
    21  discharged from any further liability or responsibility for the
    22  taxes and revenues. If the payment is to a holder of tax
    23  anticipation notes, it shall be made against surrender of the
    24  notes to the payor for delivery to the first class school
    25  district in the case of payment in full; otherwise it shall be
    26  made against production of the notes for notation thereon of the
    27  amount of the payment. The provisions of this subsection with
    28  respect to the enforceability and collection of taxes and
    29  revenues which secure tax anticipation notes of a first class
    30  school district shall supersede any contrary or inconsistent
    19950S0689B2340                 - 213 -

     1  statutory provision or rule of law. This subsection shall be
     2  construed and applied to fulfill the legislative purpose of
     3  clarifying and facilitating temporary borrowings by a first
     4  class school district by assuring to holders of tax anticipation
     5  notes the full and immediate benefit of the security therefor
     6  without delay, diminishment or interference based on any
     7  statute, decision, ordinance or administrative rule or practice.
     8  § 8126.  Certification as to taxes and revenues to be collected.
     9     Prior to each authorization of tax anticipation notes,
    10  authorized officers of the local government unit shall make an
    11  estimate of the moneys to be received during the period when the
    12  notes will be outstanding from taxes then levied and assessed
    13  and revenues, including subsidies or reimbursements to be
    14  received. The estimate shall take due account of the past and
    15  anticipated collection experience of the local government unit
    16  and of current economic conditions. The estimate shall be
    17  certified by the officers and their written certificate dated
    18  not more than 30 days prior to the date of the authorization of
    19  the notes and filed with the proceedings authorizing the tax
    20  anticipation notes with the department.
    21  § 8127.  Sale of tax anticipation notes.
    22     Tax anticipation notes may be sold at public, private or
    23  invited sale as the governing body of the local government unit
    24  may determine. Any public sale shall be advertised and conducted
    25  in the manner and subject to the conditions provided for a
    26  public sale of bonds in Subchapter D (relating to sale of bonds
    27  and notes), except as modified by this subchapter. The governing
    28  body of the local government unit shall award the notes by
    29  resolution to specified purchasers at a specified price, not
    30  less than the principal amount. At the time of delivery of each
    19950S0689B2340                 - 214 -

     1  issue, series or subseries of tax anticipation notes, authorized
     2  officers of the local government unit shall certify to the
     3  original purchasers that the amount of all such notes to remain
     4  outstanding will not exceed the limitations of section 8122
     5  (relating to limitation on amount of tax anticipation notes)
     6  calculated, however, from the date of the certificate to the
     7  respective maturity dates of all the notes to remain
     8  outstanding. The certificate need not be filed with the
     9  department, but a copy of it shall be retained by the local
    10  government unit until all tax anticipation notes issued during
    11  the fiscal year have been paid in full.
    12  § 8128.  Condition precedent to validity of tax anticipation
    13             notes.
    14     No tax anticipation note shall be valid or obligatory in the
    15  hands of an original purchaser until certified copies of the
    16  authorizing and awarding resolution, the certificate as to the
    17  taxes and revenues remaining to be collected and a true copy of
    18  the accepted proposal for the purchase of the tax anticipation
    19  notes shall have been filed with the department. No approval by
    20  the department shall be required.
    21  § 8129.  Scope of unfunded debt.
    22     For the purpose of this subchapter, unfunded debt means
    23  obligations of the same or one or more prior years incurred for
    24  current expenses, including tax anticipation notes, due and
    25  owing or judgments against the local government unit entered by
    26  a court after adversary proceedings, for the payment of either
    27  of which category the taxes and other revenues remaining to be
    28  collected in the fiscal year and funds on hand will not be
    29  sufficient without a curtailment of municipal services to an
    30  extent endangering the health or safety of the public or proper
    19950S0689B2340                 - 215 -

     1  public education and the local government unit either may not
     2  legally levy a sufficient tax for the balance of the fiscal
     3  year, or a sufficient tax, if legally leviable, would not be in
     4  the public interest. Unfunded debt does not, however, include
     5  debt incurred under this subpart or obligations in respect of a
     6  project or part of a project as incurred in respect of the cost
     7  of a project.
     8  § 8130.  Approval by court to fund unfunded debt.
     9     (a)  General rule.--Whenever the governing body of a local
    10  government unit shall be of the opinion that it has outstanding
    11  unfunded debt, it may, by petition to the court of common pleas
    12  setting forth the facts, request approval for the issuance of
    13  bonds or notes to fund the unfunded debt. After hearing, on such
    14  notice to the local government unit and its taxpayers as the
    15  court may prescribe, the court shall make an order granting
    16  authority to fund all or a part of the unfunded debt if the
    17  court finds that the unfunded debt is a lawful obligation of the
    18  local government unit; that there has been an unforeseeable
    19  decline in revenues, or that taxes levied have not produced the
    20  revenues anticipated or that it was not reasonable to foresee
    21  the obligation; that paying the debt by curtailing municipal
    22  services will be dangerous to the public health, safety or
    23  education; and that it is not feasible or not in the public
    24  interest to levy additional taxes in the current fiscal year.
    25  The funding debt so approved shall be stated to mature in the
    26  amounts and over the number of years, not exceeding ten, as the
    27  court finds will accomplish the payment of the debt without
    28  endangering the rendering of municipal services or requiring the
    29  levying of excessive taxes. If the funding of the unfunded debt
    30  has not been approved by a vote of the electors, the order of
    19950S0689B2340                 - 216 -

     1  the court upon cause shown may fix the portion, if any, which
     2  shall not be charged against the nonelectoral debt limitations
     3  of the local government unit under sections 8022 (relating to
     4  limitations on incurring of other debt) and 8125 (relating to
     5  security for tax anticipation notes and sinking fund) during the
     6  time the funding debt is outstanding.
     7     (b)  Issuance and sale of bonds or notes.--The bonds or notes
     8  representing funding debt so authorized by the court shall be
     9  issued and sold by the governing body as provided by other
    10  provisions of this subpart in respect of general obligation
    11  bonds except as these provisions are modified by this section or
    12  by orders of the court issued under this section, and the
    13  proceedings filed by the local government unit in respect of the
    14  funding bonds under section 8201 (relating to certification to
    15  department of bond or note transcript or lease, guaranty,
    16  subsidy contract or other agreement) shall include certified
    17  copies of the petition and of the order of the court.
    18     (c)  Applicability.--This section shall not apply to the
    19  funding of obligations in respect of a project or part of a
    20  project or incurred in respect of the cost of a project.
    21                            SUBCHAPTER C
    22                   PROVISIONS OF BONDS AND NOTES
    23  Sec.
    24  8141.  Form of bonds or notes.
    25  8142.  Limitations on stated maturity dates.
    26  8143.  Disposition of proceeds notwithstanding certain
    27         limitations.
    28  8144.  Number of interest rates.
    29  8145.  Place and medium of payment.
    30  8146.  Execution of bonds or notes.
    19950S0689B2340                 - 217 -

     1  8147.  Pledge of revenues.
     2  8148.  Deeds of trust and other agreements with bondholders
     3         and noteholders.
     4  8149.  Negotiable qualities of bonds and notes.
     5  8150.  Temporary bonds or notes or interim receipts.
     6  § 8141.  Form of bonds or notes.
     7     Bonds or notes may be issued in such denominations, in coupon
     8  form payable to bearer or registrable as to principal, or in
     9  fully registered form, with such provisions for exchangeability
    10  and interchangeability; shall bear such identifying designation
    11  or title, including words indicating whether the bonds or notes
    12  are general obligation, revenue, guaranteed revenue or limited    <--
    13  guaranty revenue bonds or notes; shall be dated; shall bear such
    14  rate or rates of interest, including supplemental, contingent or
    15  variable interest, but if contingent or variable interest is
    16  specified, a maximum rate or amount shall also be specified;
    17  shall be payable on those dates; may be subject to such
    18  provisions for prior redemption in whole or in part or both, at
    19  such price or prices and at such times; shall be stated to
    20  mature, or may be payable in installments, on a date or dates
    21  and in such amounts; may provide for the payment by the issuer
    22  of such tax or taxes on the bonds or notes, either absolutely or
    23  out of pledged revenues; and may provide for such pledge of
    24  revenues, the establishment of such reserves and other terms; as
    25  the governing body of the issuing local government unit may
    26  determine by ordinance or ordinances adopted prior to the
    27  delivery of the bonds or notes, subject to the limitations and
    28  restrictions specified in this subpart.
    29  § 8142.  Limitations on stated maturity dates.
    30     (a)  General rule.--No bonds or notes shall be issued with a
    19950S0689B2340                 - 218 -

     1  stated maturity date exceeding the sooner to occur of:
     2         (1)  Forty years from the date of the series of any bonds
     3     or notes issued to evidence debt for the purpose of financing
     4     the cost of actually constructing, acquiring or improving a
     5     project or a separately financed portion of a project or
     6     funding an unfunded actuarial accrued liability.
     7         (2)  (i)  The useful life of the project being financed
     8         as stated in the ordinance of the local government unit
     9         enacted in connection with the series of bonds or notes
    10         to be issued for the project, which statement in the
    11         ordinance shall be conclusive for all purposes. If
    12         projects have been combined for financing pursuant to
    13         section 8101 (relating to combining projects for
    14         financing or series of bonds or notes for sale) and the
    15         projects have different useful lives, it is sufficient
    16         for this section if an aggregate principal amount of
    17         bonds or notes equal to the separate cost of each project
    18         having a shorter useful life have been stated to mature
    19         prior to the end of the useful life, and the balance
    20         prior to the end of the longest useful life. For the
    21         purpose of this paragraph, the inclusion of furnishings,
    22         machinery, apparatus or equipment for a construction or
    23         acquisition project shall not be deemed to be the
    24         combining of projects but the useful life of the project
    25         shall be that of the building, structure or improvement
    26         constructed or acquired.
    27             (ii)  Where capital budgeting is practiced and bonds
    28         are issued to fund the current portion of a capital
    29         budget involving projects of varying useful lives, a
    30         uniform term of 30 years may be used.
    19950S0689B2340                 - 219 -

     1             (iii)  Where the project being financed is a
     2         countywide revision of assessment of real property, the
     3         useful life shall be a term of no more than ten years.
     4             (iv)  Where a project consists of the funding of all
     5         or a portion of a reserve, or a contribution toward a
     6         combined reserve, pool or other arrangement, relating to
     7         self-insurance, the useful life shall be the term
     8         specified in the ordinance of the local government unit,
     9         not to exceed 20 years, or if none is specified, then the
    10         useful life shall be deemed to be 20 years.
    11     (b)  Mandatory redemption and stated maturities or
    12  installments.--Bonds or notes may be serial bonds or notes or
    13  term bonds or notes or any combination thereof that may be
    14  selected by the governing body of the issuing local government
    15  unit. Except for bonds or notes issued to fund an unfunded
    16  actuarial accrued liability, if term bonds or notes are issued,
    17  the bonds or notes shall be subject to mandatory redemption,
    18  and, if serial or installment bonds or notes, the amounts of the
    19  stated maturities or installments shall be fixed:
    20         (1)  so as to amortize the issue on at least an
    21     approximately level annual debt service plan during the
    22     period specified for the payment of principal in subsection
    23     (c); or
    24         (2)  so that the debt service on outstanding debt of the
    25     same classification, and for this purpose lease rental debt
    26     shall be considered as the same classification as general
    27     obligation debt, will be brought more nearly into an over-all
    28     level annual debt service plan.
    29     (c)  Deferral of stated installments or maturities or
    30  mandatory redemption.--Except as provided by subsection (e),
    19950S0689B2340                 - 220 -

     1  stated installments or maturities of principal of any series of
     2  bonds or notes or the mandatory redemption of the principal may
     3  not be deferred beyond the later of two years from date of issue
     4  or one year after estimated completion of construction. In the
     5  case of revenue or guaranteed revenue bonds, this provision will
     6  be satisfied by a covenant for the mandatory application to term
     7  bonds of such revenues as may remain after payment of interest
     8  and operating expenses up to a fixed amount conforming to
     9  subsection (b) as shall be specified in the ordinance pursuant
    10  to which the bonds or notes are issued.
    11     (d)  Fixing earlier maturity dates.--This section does not
    12  prevent the fixing of the amount of stated maturity dates so
    13  that a greater percentage of a series will mature on earlier
    14  dates than those allowable by this subpart.
    15     (e)  Maturity dates for different series.--This section does
    16  not prevent the authorization of bonds or notes of an issue for
    17  sale in one or more series, in which case the first stated
    18  maturity of a later series may be later than, but not more than
    19  15 months later than, the last stated maturity of the next
    20  preceding series.
    21  § 8143.  Disposition of proceeds notwithstanding certain
    22             limitations.
    23     A local government unit which issues bonds or notes to fund
    24  an unfunded actuarial accrued liability shall contribute to the
    25  applicable pension trust fund the proceeds of the bonds or
    26  notes, after deduction of costs of issuance, underwriter's
    27  discount and original issue discount, notwithstanding that the
    28  contribution may exceed a limitation on contributions to
    29  retirement systems, pension plans or pension trust funds
    30  otherwise applicable to the local government unit.
    19950S0689B2340                 - 221 -

     1  § 8144.  Number of interest rates.
     2     A series of bonds or notes may have any number of interest
     3  rates, subject to any limitation on such number fixed by the
     4  governing body of the issuing local government unit, but, unless
     5  further limited by the issuing local government unit in the
     6  official notice of sale, no fixed interest rate for any stated
     7  maturity date in the last two-thirds of the period of the series
     8  may be less than that stated for the immediately preceding year
     9  which falls within the last two-thirds period.
    10  § 8145.  Place and medium of payment.
    11     Bonds or notes shall be payable in such coin or currency as
    12  at the respective dates of payment thereof shall be legal tender
    13  for the payment of public and private debts at the place or
    14  places of payment. Both principal and interest shall be payable
    15  at the place or places determined by the local government unit.
    16  If more than one place of payment is specified, one or more of
    17  the additional places of payment may be outside of this
    18  Commonwealth or outside of the United States.
    19  § 8146.  Execution of bonds or notes.
    20     Bonds or notes, including tax anticipation notes, shall be
    21  signed by such officers of the local government unit, and coupon
    22  bonds shall have attached thereto interest coupons bearing the
    23  facsimile signature of such officer of the local government
    24  unit, and the bonds or notes may be sealed with the seal of the
    25  local government unit or a facsimile thereof, all as may be
    26  determined by the governing body. Bonds or notes may provide
    27  that they are not valid or enforceable unless authenticated by a
    28  specified bank, bank and trust company or trust company. If any
    29  one signature on a bond or note, including the signature of the
    30  authenticating party, is manual, all other signatures may be by
    19950S0689B2340                 - 222 -

     1  facsimile. If any officer whose signature, or a facsimile of
     2  whose signature, appears on any notes, bonds or coupons ceases
     3  to be such officer before the delivery of the notes or bonds,
     4  the signature or the facsimile shall nevertheless be valid and
     5  sufficient for all purposes as if he had remained in office
     6  until delivery. Any note, bond or coupon may bear the facsimile
     7  signature of, or may be signed by, those persons as at the
     8  actual time of the execution of the note, bond or coupon were
     9  the proper officers to sign although at the date of the
    10  instrument these persons may not be such officers.
    11  § 8147.  Pledge of revenues.
    12     The governing body of any local government unit which has
    13  determined to issue any revenue bonds or notes, or any
    14  guaranteed revenue bonds or notes, may provide, by ordinance,
    15  for such pledges of or priorities in such rentals, revenues,
    16  receipts, rates and charges to be received from projects of the
    17  issuing local government unit as may be desirable. The pledge or
    18  priority shall be perfected as a security interest against all
    19  creditors of the local government unit and all third parties, in
    20  accordance with the terms of the ordinance, from and after the
    21  filing of a financing statement or statements in accordance with
    22  Title 13 (relating to commercial code). For the purpose of
    23  filing, the sinking fund depository may act as representative of
    24  the bond or note holders and, in that capacity, execute and file
    25  the financing statement and any continuation or termination
    26  statements as secured party.
    27  § 8148.  Deeds of trust and other agreements with bondholders
    28             and noteholders.
    29     (a)  General rule.--A local government unit shall have the
    30  power to enter into any deed of trust, trust indenture or other
    19950S0689B2340                 - 223 -

     1  agreement with any bank, bank and trust company, trust company
     2  or other person or persons in the United States having power to
     3  enter into such agreements or accept such trusts, including any
     4  Federal agency, as security for any notes or bonds of the local
     5  government unit providing for the following:
     6         (1)  The payment of the interest on and principal of the
     7     notes or bonds; the authentication of the original issue; the
     8     custody of sinking funds or other funds held or to be held
     9     pending presentation of coupons, notes or bonds for payment;
    10     the custody of debt service reserve funds or other funds to
    11     be held as reserves; the disbursement of interest to holders
    12     of fully registered bonds or notes; the cremation or other
    13     destruction of coupons, bonds or notes which have been paid;
    14     and registration, exchanges and transfers and the maintenance
    15     of records of those transactions.
    16         (2)  The construction, improvement, operation,
    17     maintenance and repair of any project being financed.
    18         (3)  Limitations on the purposes to which the proceeds of
    19     the bonds then or thereafter to be issued in connection with
    20     the project, or of any loan or grant by the United States or
    21     the Commonwealth may be applied.
    22         (4)  The rights and remedies of such trustee or other
    23     person and the holder of the bonds or notes, which may
    24     include reasonable restrictions upon the individual right of
    25     action of the holders.
    26         (5)  The terms and provisions, including stated
    27     maturities and sinking fund and other reserve fund
    28     provisions, not in conflict with the limitations imposed by
    29     this subpart, but which may be more limiting, of, or provided
    30     for, the bonds or notes being issued or which may hereafter
    19950S0689B2340                 - 224 -

     1     be issued in connection with the project being financed.
     2     (b)  Revenue and guaranteed revenue bonds.--In connection
     3  with any revenue bonds or guaranteed revenue bonds, such deeds
     4  of trust, trust indentures or other agreements may contain
     5  provisions as to the following:
     6         (1)  The rate of rents, charges, rates or tolls to be
     7     imposed for the use of the project being financed or the
     8     rendering of services through the use of the project, or
     9     both, to ensure a sufficiency of revenues to cover operating
    10     expenses, debt service and an appropriate surplus.
    11         (2)  The setting aside of reserves or other earmarked
    12     funds, and limitation upon the use, investment and
    13     disposition thereof for the better security of the bonds or
    14     notes.
    15         (3)  Limitations on the issue of additional bonds or
    16     notes ranking equally or having priority in claim on revenues
    17     with the bonds being issued.
    18         (4)  Any other or additional agreements with the holders
    19     of bonds or notes as may be customary in these agreements,
    20     provided no delegation of essential governmental powers is
    21     made.
    22     (c)  Ordinance provisions in lieu of agreement.--In lieu of a
    23  deed of trust, trust indenture or other agreement specified in
    24  this section, the bond ordinance of the local government unit
    25  may contain similar provisions which shall be a contract between
    26  the local government unit and the holders from time to time of
    27  its bonds or notes.
    28     (d)  Limitation on delegation of function.--No deed of trust
    29  shall delegate the performance of essential governmental
    30  functions to a trustee, fiscal agent or receiver. For purposes
    19950S0689B2340                 - 225 -

     1  of this section, the matters enumerated are not deemed to be
     2  essential governmental functions.
     3  § 8149.  Negotiable qualities of bonds and notes.
     4     (a)  Securities.--Bonds or notes issued pursuant to this
     5  subpart, including tax anticipation notes, which have all the
     6  qualities and incidents of securities under Title 13 (relating
     7  to commercial code), shall be negotiable instruments.
     8     (b)  Commercial paper.--Such bonds and notes issued pursuant
     9  to this subpart which are not securities shall have all the
    10  qualities and incidents of commercial paper under Title 13 and
    11  shall be negotiable instruments notwithstanding any references
    12  in them to the terms of the authorizing bond ordinance or any
    13  trust indenture, deed of trust or other agreement, or any
    14  variations in the rate of interest provided in the note, or any
    15  limitation upon the funds from which or limitations as to the
    16  bonds with which the notes may be paid or any restriction upon
    17  the remedies of the holders.
    18  § 8150.  Temporary bonds or notes or interim receipts.
    19     Pending the preparation of definitive bonds or notes,
    20  including tax anticipation notes, temporary bonds or notes or
    21  interim receipts may be issued in such form and containing such
    22  terms and such provisions for exchange for definitive bonds or
    23  notes as the local government unit may determine.
    24                            SUBCHAPTER D
    25                      SALE OF BONDS AND NOTES
    26  Sec.
    27  8161.  Manner of sale of bonds or notes.
    28  8162.  Contents of public advertisement and of official notice
    29         of sale.
    30  8163.  Proposals for purchase.
    19950S0689B2340                 - 226 -

     1  8164.  Opening of bids.
     2  8165.  Determination of highest and best bid.
     3  8166.  Required bid security.
     4  8167.  Reserved right to reject bids.
     5  8168.  Failure to receive conforming bid.
     6  8169.  Determination of net interest cost and net interest
     7         rate.
     8  § 8161.  Manner of sale of bonds or notes.
     9     (a)  General rule.--Except as otherwise specifically provided
    10  in this subpart and subject to subsection (b), bonds or notes
    11  may be sold at public or private sale by negotiation or upon
    12  invitation and at the price the governing body of the issuing
    13  local government unit shall determine. Before making any private
    14  sale by negotiation of bonds or notes, the governing body shall
    15  adopt a resolution finding that a private sale by negotiation is
    16  in the best financial interest of the local government unit.
    17  Bonds or notes may be conditionally sold before the final
    18  details of the series are fixed.
    19     (b)  Public sale.--Bonds or notes, if sold at public sale,
    20  shall be sold to the highest responsible bidder or bidders after
    21  one public notice by advertisement of either the official notice
    22  of sale, or of the availability of the official notice of sale,
    23  in at least one and not more than two newspapers of general
    24  circulation in the county in which the local government unit is
    25  located. The advertisement may also be published in a financial
    26  journal circulating among the underwriters of securities.
    27  Advertisements shall be published not less than ten nor more
    28  than 30 days prior to the date fixed for opening proposals and
    29  need not appear on the same date nor successively in each
    30  newspaper or journal.
    19950S0689B2340                 - 227 -

     1  § 8162.  Contents of public advertisement and of official notice
     2             of sale.
     3     (a)  Advertisement.--The advertisement of the availability of
     4  the official notice of sale shall contain the following:
     5         (1)  The title, designation and principal amount of the
     6     bonds or notes to be sold.
     7         (2)  A general statement of the term of the issue and
     8     whether it will consist of term bonds or notes, serial bonds
     9     or notes, or both.
    10         (3)  A statement whether proposals must be for all but
    11     not less than all of the notes or bonds being sold, or, if
    12     separate lots may be bid separately, a statement as to the
    13     composition of each lot.
    14         (4)  The place and time for the receipt of sealed
    15     proposals.
    16         (5)  The amount of the bid security to be furnished by
    17     the bidder and the method selected for determining net
    18     interest cost.
    19         (6)  A statement of the names and addresses of the
    20     officer and any other persons from whom an official notice of
    21     sale, other details concerning the issuing local government
    22     unit, the project, and the official form of proposal, if any,
    23     may be obtained.
    24     (b)  Official notice of sale.--The local government unit
    25  shall adopt an official notice of sale which shall set forth,
    26  succinctly all of the following:
    27         (1)  The time and place for the receipt of proposals and
    28     the officer designated to receive them.
    29         (2)  A description of the bonds or notes being offered,
    30     including:
    19950S0689B2340                 - 228 -

     1             (i)  The title and type of bonds or notes being
     2         offered.
     3             (ii)  The date thereof.
     4             (iii)  The stated maturity dates and amounts at each
     5         date.
     6             (iv)  The dates of interest payments.
     7             (v)  The place or places of payment of interest and
     8         principal, which amounts, dates and places may be left
     9         open to selection by the successful bidder.
    10             (vi)  The form and denominations of the notes or
    11         bonds being offered.
    12             (vii)  Any provisions for registration, exchange and
    13         interchange.
    14             (viii)  The terms of any sinking fund or reserve
    15         funds to be established.
    16             (ix)  The terms of other provisions made for the
    17         security of the bonds or notes.
    18             (x)  The dates, prices and terms of any provision for
    19         the redemption thereof prior to stated maturity dates.
    20         (3)  A statement of the terms of the bidding, including:
    21             (i)  The method for determining net interest cost.
    22             (ii)  Whether bids must be for all but not less than
    23         all or, if separate bids for separate lots may be
    24         submitted, a description of each lot.
    25             (iii)  The limitation on the number and variation
    26         between high and low interest rates to be permitted.
    27             (iv)  The required bid security.
    28             (v)  The permitted discount from par, if any.
    29             (vi)  The funds in which the balance of the purchase
    30         price shall be paid.
    19950S0689B2340                 - 229 -

     1             (vii)  The place at which the balance may be paid or
     2         the method of determining that place.
     3             (viii)  The effect on the obligation to purchase the
     4         notes or bonds of litigation pending or change in tax or
     5         other applicable laws occurring before the settlement for
     6         the bonds or notes.
     7             (ix)  The nature of the opinion of bond counsel to be
     8         delivered at the time of payment for the bonds or notes
     9         and the effect of any failure to deliver such opinion.
    10             (x)  The reserved right to reject bids provided for
    11         in section 8167 (relating to reserved right to reject
    12         bids).
    13         (4)  Such additional provisions as may be desired,
    14     including statements as to the furnishing of copies of
    15     documents, including an official statement of essential
    16     facts, the estimated date for delivery of bonds or notes and
    17     whether the bonds or notes will be delivered in definitive or
    18     temporary form and, if temporary, the time and manner of
    19     exchange for definitive bonds or notes.
    20  § 8163.  Proposals for purchase.
    21     Every bid or proposal for bonds or notes shall be in writing,
    22  shall be properly executed and, in the case of public sale,
    23  shall be placed in a sealed envelope sufficiently labeled to
    24  indicate that it is a bid or proposal for the bonds or notes
    25  being sold, before being delivered to the officer designated to
    26  receive it, or to an authorized delegate.
    27  § 8164.  Opening of bids.
    28     In the case of public sale, at the time and place fixed in
    29  the notice, the bids or proposal received shall be publicly
    30  opened by the designated officer, or his authorized delegate,
    19950S0689B2340                 - 230 -

     1  and publicly read aloud, unless the governing body determines to
     2  return all bids unopened.
     3  § 8165.  Determination of highest and best bid.
     4     (a)  General rule.--The highest responsible bidder shall be
     5  the one who, having complied with the terms of the official
     6  notice of sale, offers to take all of the bonds or notes, or any
     7  separate lot thereof on which separate bids may be made, at the
     8  lowest net interest cost to the local government unit, or if
     9  required by the terms of any agreement with the Federal
    10  government or the Commonwealth or any agency of either of them,
    11  the highest responsible bidder shall be the one bidding in
    12  conformity with the requirements for the successful bidder
    13  stipulated in the agreement. The net interest cost shall be
    14  computed in accordance with section 8169 (relating to
    15  determination of net interest cost and net interest rate).
    16     (b)  Tie bids.--If two or more proposals are found to be the
    17  highest and best bids on identical terms conforming to the
    18  offering, the bonds or notes shall, with the consent of the
    19  bidders, be awarded to them jointly or, absent such consent, may
    20  be awarded to any one of the bidders selected by lot in any
    21  manner deemed fair by the local government unit.
    22  § 8166.  Required  bid security.
    23     In the case of public sale, bid security shall be given by
    24  each bidder, shall be in cash or by certified or official bank
    25  check payable to the local government unit and shall be not less
    26  than 2% of the principal amount of the bonds or notes to be
    27  purchased. The bid security of the unsuccessful bidder or
    28  bidders shall be returned to each unsuccessful bidder, without
    29  interest, in accordance with written instructions of the bidder
    30  conforming to the official notice of sale, promptly upon an
    19950S0689B2340                 - 231 -

     1  award of the bonds or notes or upon the rejection of all bids.
     2  The bid security of the successful bidder shall be retained by
     3  the treasurer of the local government unit and, with or without
     4  allowance for interest as the official notice of sale may
     5  specify, shall be applied on the purchase price when the bonds
     6  or notes are actually delivered and paid for, retained as
     7  liquidated damages if the bidder defaults, or returned to the
     8  bidder with interest at the judgment rate if, after an
     9  acceptance of the proposal, the bonds or notes are not issued
    10  for any reason not constituting a default by the bidder. Unless
    11  required by the local governing body, no bid security shall be
    12  required in the case of tax anticipation notes, bond
    13  anticipation notes or notes to be issued under section 8109
    14  (relating to small borrowing for capital purposes).
    15  § 8167.  Reserved right to reject bids.
    16     Every official notice of sale of bonds or notes shall provide
    17  that the right is reserved to the governing body of the local
    18  government unit to reject all bids or proposals, but in a case
    19  where conforming bids have been received, opened and rejected,
    20  any subsequent sale within a period of two calendar months of
    21  bonds or notes in substantially the same amount and for the same
    22  purpose must be a public sale to be held at such later time as
    23  the governing body may determine to be advantageous.
    24  § 8168.  Failure to receive conforming bid.
    25     If bonds or notes are advertised for public sale and no
    26  conforming bid is received or if all bids are returned unopened,
    27  then the local government unit may cancel the sale and devise a
    28  new series for sale or, in the alternative, it may sell the
    29  series parts, from time to time, during the ensuing six months
    30  at private sale in accordance with the terms originally
    19950S0689B2340                 - 232 -

     1  advertised with any changes in call price or dates of call for
     2  prior redemption or both as may be deemed desirable. After the
     3  six-month period, the local government unit may sell any unsold
     4  portion of the series in any manner permitted by this subpart,
     5  with such appropriate changes in the call prices or dates or
     6  call for prior redemption or both or in other terms as may be
     7  deemed advisable, provided that as so changed, the two portions
     8  of the series when combined and any issue of which the series is
     9  a part are in conformity with the requirements of this subpart
    10  as to term, interest rate and stated maturities.
    11  § 8169.  Determination of net interest cost and net interest
    12             rate.
    13     (a)  Net interest cost.--Net interest cost may be determined
    14  by using either the street method or the present worth method
    15  whichever method shall be specified in the official notice of
    16  sale.
    17     (b)  Street method.--Under the street method, a dollar amount
    18  shall be determined by computing the total amount of interest
    19  payable over the life of the series to stated maturity dates or
    20  earlier mandatory call dates and subtracting therefrom the
    21  amount of any premium paid above the aggregate principal amount
    22  of the bonds or notes or adding thereto the amount of any
    23  discount lawfully allowed in the sale.
    24     (c)  Present worth method.--Under the present worth method
    25  there shall be ascertained the semiannual rate, compounded
    26  semiannually, necessary to discount to present worth as of the
    27  date of the bonds or notes, the amounts payable on each interest
    28  payment date and on each stated maturity or earlier mandatory
    29  redemption date so that the aggregate of such amounts will equal
    30  the purchase price offered therefor exclusive of interest
    19950S0689B2340                 - 233 -

     1  accrued to the date of delivery. The net interest cost shall be
     2  stated in terms of an annual percentage rate and shall be that
     3  rate of interest which is twice the semiannual rate so
     4  ascertained.
     5     (d)  Net interest rate.--The net interest rate for a series
     6  sold under the present worth method shall be the rate of the net
     7  interest cost. For a series sold under the street method, the
     8  net interest rate shall be determined by dividing the net
     9  interest cost by the product of $1,000 multiplied by the number
    10  of bond years from the date of the bonds or notes to the stated
    11  maturity or earlier mandatory call dates. A bond year shall be
    12  one full year that $1,000 of principal amount shall be
    13  outstanding and less than full years shall be fractionalized on
    14  a 360-day year basis.
    15                             CHAPTER 82
    16                      MISCELLANEOUS PROVISIONS
    17  Subchapter
    18     A.  Department of Community Affairs
    19     B.  Sinking Funds and Other Funds and Accounts
    20     C.  Refunding of Debt
    21     D.  Remedies
    22     E.  Penalties
    23                            SUBCHAPTER A
    24                  DEPARTMENT OF COMMUNITY AFFAIRS
    25  Sec.
    26  8201.  Certification to department of bond or note
    27         transcript or lease, guaranty, subsidy contract or other
    28         agreement.
    29  8202.  Filing of statements of noncompletion of sale with
    30         department.
    19950S0689B2340                 - 234 -

     1  8203.  Fees for filing.
     2  8204.  Certificate of approval of transcript.
     3  8205.  Certificate of disapproval and correction of
     4         proceedings.
     5  8206.  Effect of failure of timely action by department.
     6  8207.  Records of department.
     7  8208.  Invalidity of instruments which are delivered without
     8         compliance with requirements or conditions precedent
     9         to issuance or delivery.
    10  8209.  Finality of proceedings as to validity of
    11         instruments.
    12  8210.  Power of department to define terms, issue rules and
    13         regulations and prescribe forms.
    14  8211.  Petitions for declaratory orders and complaints to
    15         department.
    16  § 8201.  Certification to department of bond or note transcript
    17             or lease, guaranty, subsidy contract or other
    18             agreement.
    19     (a)  General rule.--The governing body of each local
    20  government unit shall, before any bonds or notes, except tax
    21  anticipation notes issued pursuant to section 8121 (relating to
    22  power to issue tax anticipation notes) and notes representing
    23  small borrowings issued pursuant to section 8109 (relating to
    24  small borrowing for capital purposes), are actually delivered to
    25  the initial purchasers, or before becoming bound on any lease,
    26  guaranty, subsidy contract or other agreement, evidencing lease
    27  rental debt cause to be certified to the department, under the
    28  signature of the clerk or secretary of the governing body and
    29  its corporate seal, a complete and accurate copy of the
    30  proceedings for the incurring of debt, as provided in section
    19950S0689B2340                 - 235 -

     1  8111 (relating to submission to department).
     2     (b)  Other requirements unaffected.--The provisions of this
     3  section do not eliminate the filing requirements of sections
     4  8024 (relating to exclusion of subsidized debt from net
     5  nonelectoral or net lease rental debt), 8025 (relating to
     6  exclusion of self-liquidating debt evidenced by revenue bonds or
     7  notes to determine nonelectoral debt), 8026 (relating to
     8  exclusion of other self-liquidating debt to determine net
     9  nonelectoral debt or net lease rental debt), 8126 (relating to
    10  certification as to taxes and revenues to be collected) and 8128
    11  (relating to condition precedent to validity of tax anticipation
    12  notes).
    13  § 8202.  Filing of statements of noncompletion of sale with
    14             department.
    15     If settlement for an issue of bonds or notes or bonds or
    16  notes representing lease rental debt, which have received a
    17  required approval by the department, fails of completion, in
    18  whole, or in part, the local government unit shall file with the
    19  department a notification of noncompletion of sale, stating what
    20  part of the issue has been delivered.
    21  § 8203.  Fees for filing.
    22     Every filing with the department shall be accompanied by a
    23  filing fee as determined in section 605-A of the act of April 9,
    24  1929 (P.L.177, No.175), known as The Administrative Code of
    25  1929. No submission shall constitute a filing until the proper
    26  fee is paid. All fees received under this section shall be paid
    27  by the department into the State Treasury through the Department
    28  of Revenue.
    29  § 8204.  Certificate of approval of transcript.
    30     The department shall, upon receipt of any bond or note
    19950S0689B2340                 - 236 -

     1  transcripts or other filings, carefully examine them to
     2  determine whether the debt outstanding and to be outstanding is
     3  within the applicable limitations imposed by this subpart and
     4  whether the proceedings for incurring the debt, for issuing and
     5  selling the bonds or notes and for excluding self-liquidating
     6  and subsidized debt have been taken in conformity with the
     7  Constitution of Pennsylvania and this subpart. If, upon
     8  completion of its examination, a transcript or other filing is
     9  found by the department to be in conformity with the
    10  Constitution of Pennsylvania and this subpart, the department
    11  shall certify its approval to the local government unit, if
    12  required under other provisions of this subpart.
    13  § 8205.  Certificate of disapproval and correction of
    14             proceedings.
    15     If the department, upon completion of its examination, finds
    16  it cannot issue a certificate of approval, it shall notify the
    17  local government unit of the reasons why it cannot do so. If the
    18  proceedings or any prior filings are subject to correction for
    19  demonstrated typographical or computational error, or otherwise,
    20  or for failure to include a necessary document or certification
    21  and the correction is approved by the department, the error
    22  shall be corrected in all places or the additional document or
    23  certification shall be furnished to the department within ten
    24  days and upon any other terms the department specifies.
    25  Thereupon the department shall certify its approval. If the
    26  deficiency is not subject to correction, the department shall
    27  certify its disapproval to the local government unit.
    28  § 8206.  Effect of failure of timely action by department.
    29     If the local government unit has submitted a filing to the
    30  department by certified mail, return receipt requested, or
    19950S0689B2340                 - 237 -

     1  otherwise has an official receipt from the department, and the
     2  local government unit has not, within 20 days of the date of
     3  receipt of the filing by the department, received the
     4  certificate of approval or disapproval or notification of
     5  correctable error, the filing shall be deemed to have been
     6  approved for all purposes, unless the local government unit has
     7  extended the time within which the department may act by written
     8  communication to the department or by failure to object to a
     9  written communication from the department requesting the
    10  extension. Extensions shall not exceed one additional period of
    11  20 days.
    12  § 8207.  Records of department.
    13     (a)  Retention period.--The department shall keep all
    14  proceedings on file for a period of not less than four months
    15  after issuance of its certificate of approval or disapproval and
    16  thereafter as long as any appeal respecting the proceedings is
    17  pending and not finally determined.
    18     (b)  Content.--The department shall keep a public record with
    19  respect to each local government unit showing:
    20         (1)  The name of the local government unit.
    21         (2)  The purpose of each series issued or lease executed.
    22         (3)  Whether the series represents nonelectoral, lease
    23     rental or electoral debt, and the extent to which the debt is
    24     subsidized or self-liquidating, and, if subsidized or self-
    25     liquidating in part, the principal amount thereby eliminated
    26     from nonelectoral debt.
    27         (4)  The schedule of stated maturity dates, interest
    28     rates and mandatory sinking fund payments for each
    29     outstanding issue of bonds or notes or the schedule of lease
    30     rentals.
    19950S0689B2340                 - 238 -

     1         (5)  The dates and designations of each issue of bonds or
     2     notes, lease or other document to be executed with the
     3     approval number assigned to the issue, lease or other
     4     document approved.
     5         (6)  The local government unit's most recently certified
     6     borrowing base and regular debt limits computed therefrom.
     7         (7)  The date and manner of authorization of any use of
     8     any additional debt limit.
     9     (c)  Records open for inspection.--The records of the
    10  department shall be public records, available for examination by
    11  any citizen of this Commonwealth or any bondholders or
    12  noteholders.
    13  § 8208.  Invalidity of instruments which are delivered without
    14             compliance with requirements or conditions precedent
    15             to issuance or delivery.
    16     (a)  General rule.--In all cases in which the approval of the
    17  department is required by this subpart prior to the issuance of
    18  bonds or notes or the execution of a lease, guaranty, subsidy
    19  contract or other agreement evidencing lease rental debt, in the
    20  case of small borrowings evidenced by notes in respect of which
    21  compliance with the conditions of section 8109 (relating to
    22  small borrowing for capital purposes) is required, and in the
    23  case of tax anticipation notes in respect of which compliance
    24  with the conditions of sections 8126 (relating to certification
    25  as to taxes and revenues to be collected), 8127 (relating to
    26  sale of tax anticipation notes) and 8128 (relating to condition
    27  precedent to validity of tax anticipation notes) is required, if
    28  the bonds or notes or the lease or other instrument is sold, or
    29  executed, and delivered prior to receipt of actual or deemed
    30  approval under section 8204 (relating to certificate of approval
    19950S0689B2340                 - 239 -

     1  of transcript) or 8206 (relating to effect of failure of timely
     2  action by department), or as the case may be, without compliance
     3  with applicable conditions of issuance, or prior to a required
     4  filing with the department, the bonds, notes, lease or other
     5  instrument shall be invalid and of no effect in the hands of or
     6  for the security of the holder of the bonds or notes or of the
     7  obligations secured by the lease or other instrument, except to
     8  the extent provided in this section.
     9     (b)  Bona fide purchasers.--If the bonds or notes or the
    10  obligations secured by the lease or other instrument are held by
    11  a bona fide purchaser, other than an initial purchaser or member
    12  of an underwriting or selling group, for value without actual
    13  notice of a lack of such prior approval, filing or compliance as
    14  the case may be, and such bonds, notes or other obligations
    15  contain a recital that such prior approval, filing or compliance
    16  was received, made or observed, then the bonds, notes, lease or
    17  other instrument shall be valid and enforceable in accordance
    18  with their terms, and any applicable debt limits shall be deemed
    19  increased to the extent necessary to validate and keep valid the
    20  bonds, notes, lease or other instrument, but not for the purpose
    21  of reducing the liability of any person under this section.
    22     (c)  Recovery of interest, principal and other amounts.--The
    23  local government unit may recover all interest and principal or
    24  other amounts payable thereon from the initial purchasers and
    25  the individuals, including the officers of the local government
    26  unit, responsible for making the unapproved or unauthorized
    27  delivery. Notwithstanding the invalidity of the instruments as
    28  to them, the initial purchasers and such individuals shall be
    29  entitled to credit, in any action determining the invalidity or
    30  for the recovery provided by this subsection for the amount of
    19950S0689B2340                 - 240 -

     1  the following:
     2         (1)  Any proceeds of the sale of the instruments still
     3     held unexpended by the local government unit.
     4         (2)  The lesser of the following:
     5             (i)  The cost or fair market value, whichever is the
     6         lesser, of any capital project or part thereof or
     7         interest therein acquired by the local government unit by
     8         an expenditure of a portion or all of the proceeds of the
     9         bonds, notes or other obligations.
    10             (ii)  The remaining nonelectoral borrowing capacity
    11         of the local government unit.
    12  § 8209.  Finality of proceedings as to validity of instruments.
    13     (a)  General rule.--Where a certificate of approval has been
    14  issued by the department or has been deemed issued under section
    15  8206 (relating to effect of failure of timely action by
    16  department) or, in the case of tax anticipation notes, where the
    17  filing with the department required by section 8128 (relating to
    18  condition precedent to validity of tax anticipation notes) has
    19  occurred and no petition for a declaratory order or complaint
    20  has been filed within the applicable time limits specified in
    21  section 8211 (relating to petitions for declaratory orders and
    22  complaints to the department) or, when after a petition for a
    23  declaratory order or complaint has been filed, the proceedings
    24  have been approved finally by the department and no appeal to
    25  court has been taken, or if an appeal to court has been taken
    26  and the proceedings have been approved finally by the court or
    27  the appeal has been dismissed, the validity of the proceedings,
    28  the right of the local government unit lawfully to issue its
    29  bonds or notes or to enter into a lease, guaranty, subsidy
    30  contract or other agreement evidencing lease rental debt
    19950S0689B2340                 - 241 -

     1  pursuant to those proceedings, and the validity and due
     2  enforceability of the bonds, notes or other instruments in
     3  accordance with their terms shall not thereafter be inquired
     4  into judicially, in equity, at law or by civil or criminal
     5  proceedings, or otherwise, either directly or collaterally. The
     6  effect of the approval by the department or by the court on
     7  appeal or, in the case of tax anticipation notes, the effect of
     8  filing in compliance with section 8128 shall be to ratify,
     9  validate and confirm the proceedings absolutely, including the
    10  lawful nature of the project and, in the case of tax
    11  anticipation notes, the accuracy of the estimates contained in
    12  the certificate as to taxes and revenues to be collected,
    13  notwithstanding any defect or error in the proceedings, except
    14  as specifically provided otherwise in this section, and any debt
    15  limit imposed by this subpart shall be deemed increased to the
    16  extent necessary to validate the debt or obligation. This
    17  section does not relieve an initial purchaser of bonds or notes
    18  from liability to a local government unit for the payment of the
    19  consideration agreed in the contract of sale or make the bonds
    20  or notes valid and enforceable in the hands of an initial
    21  purchaser unless the issuer has received a substantial
    22  consideration for the series as a whole.
    23     (b)  Liability for willful violations or fraud.--This section
    24  does not relieve any person participating in the proceedings
    25  from liability for knowingly participating in an ultra vires act
    26  of a local government unit or from any civil or criminal
    27  liability for false statements in any certificates filed or
    28  delivered in the proceedings.
    29  § 8210.  Power of department to define terms, issue rules and
    30             regulations and prescribe forms.
    19950S0689B2340                 - 242 -

     1     Subject to the definitions in section 8002 (relating to
     2  definitions), the department may define terms and prescribe
     3  other rules and regulations regarding, and prescribe forms for,
     4  reports and filings to be submitted to the department pursuant
     5  to this subpart.
     6  § 8211.  Petitions for declaratory orders and complaints to
     7             department.
     8     (a)  General rule.--If proceedings for the incurring of debt
     9  represented by bonds or notes or by a lease, guaranty, subsidy
    10  contract or other agreement evidencing the acquisition of a
    11  capital asset, for the issuance of tax anticipation notes or for
    12  the exclusion of debt as self-liquidating or subsidized, have
    13  been taken by a local government unit, the local government
    14  unit, or any taxpayer of the local government unit or other
    15  interested party, may file with the department a petition for a
    16  declaratory order asserting the validity or a complaint
    17  asserting the invalidity of the proceedings, or any part
    18  thereof.
    19     (b)  Time for filing.--A complaint asserting the invalidity
    20  of the proceedings or part thereof taken under section 8109
    21  (relating to small borrowing for capital purposes) may be filed
    22  not later than one year after final adoption of the resolution
    23  authorizing the debt. Any such complaint asserting the
    24  invalidity of the proceedings or part thereof excluding debt as
    25  self-liquidating under section 8025 (relating to exclusion of
    26  self-liquidating debt evidenced by revenue bonds or notes to
    27  determine net nonelectoral debt) or authorizing tax anticipation
    28  notes under Subchapter B of Chapter 81 (relating to tax
    29  anticipation notes and funding debt) may be filed at any time
    30  not later than 15 days after the filing with the department of
    19950S0689B2340                 - 243 -

     1  the documents required by section 8025 or of the proceedings
     2  pursuant to section 8126 (relating to certification as to taxes
     3  and revenues to be collected), as the case may be. A complaint
     4  asserting the invalidity of any such proceedings or part thereof
     5  in cases in which, under this subpart, the approval or deemed
     6  approval of the department is required, may be filed with the
     7  department not later than the later of:
     8         (1)  fifteen days after the date of the submission of the
     9     proceedings by the local government unit to the department
    10     for approval even though the proceeding may be subject to
    11     correction as provided in section 8205 (relating to
    12     certificate of disapproval and correction of proceedings), or
    13     otherwise; or
    14         (2)  five days after the date of the last submission of
    15     any corrected document or certification to the department.
    16     (c)  Departmental approval pending proceeding.--If a petition
    17  for a declaratory order or complaint is filed in respect of
    18  proceedings requiring the approval of the department after the
    19  submission of the proceedings to the department but prior to
    20  approval, disapproval or deemed approval, the department shall
    21  not be deemed to have approved the proceedings during the
    22  pendency of the matter before the department.
    23     (d)  Jurisdiction and authority of department.--The
    24  department has exclusive jurisdiction to hear and determine all
    25  procedural and substantive matters arising from the proceedings
    26  of a local government unit taken under this subpart, including
    27  the regularity of the proceedings, the validity of the bonds,
    28  notes, tax anticipation notes or other obligations of the local
    29  government unit and the legality of the purpose for which the
    30  obligations are to be issued. If a local government unit files a
    19950S0689B2340                 - 244 -

     1  petition for a declaratory order with the department relating to
     2  proceedings, the department may require service by publication
     3  on taxpayers as the circumstances warrant. In all other respects
     4  the proceedings before the department shall be governed by
     5  regulations of the department. The department may, after
     6  appropriate proceedings in accordance with its regulations,
     7  approve or disapprove the proceedings of the local government
     8  unit or to direct correction as provided in section 8205. A
     9  determination by the department under this subpart shall, except
    10  as provided in this subsection, be conclusive and binding as to
    11  all procedural and substantive matters which were or could have
    12  been presented to the department hereunder. All determinations
    13  by the department under this subpart are reviewable as provided
    14  in 2 Pa.C.S. Ch. 7 (relating to judicial review).
    15                            SUBCHAPTER B
    16             SINKING FUNDS AND OTHER FUNDS AND ACCOUNTS
    17  Sec.
    18  8221.  Creation of sinking funds and deposits, reserves and
    19         surplus funds.
    20  8222.  Assessment fund.
    21  8223.  Duty of treasurer.
    22  8224.  Deposit and investment of moneys in sinking funds and
    23         other funds.
    24  8225.  Management of sinking and other funds.
    25  8226.  Inspection of sinking funds and orders to comply.
    26  8227.  Sinking fund not required for small borrowings.
    27  § 8221.  Creation of sinking funds and deposits, reserves and
    28             surplus funds.
    29     (a)  General rule.--Every local government unit having
    30  outstanding any bonds or notes, other than tax anticipation
    19950S0689B2340                 - 245 -

     1  notes and other than notes issued under section 8109 (relating
     2  to small borrowing for capital purposes), shall create
     3  forthwith, subject to the terms of any existing contracts with
     4  the holders of such bonds or notes, and every local government
     5  unit issuing any bonds or notes shall create simultaneously with
     6  or prior to the delivery of the bonds or notes, and thereafter
     7  maintain until the bonds or notes are paid in full, a sinking
     8  fund:
     9         (1)  for the aggregate or for one or more issues or
    10     series of its general obligation bonds and notes; and
    11         (2)  separately for each project or combination of
    12     projects financed by revenue or guaranteed revenue bonds or
    13     notes as to which different revenues are pledged.
    14  If a sinking fund is established for more than one issue of
    15  bonds, a separate debt service account for each issue may be
    16  established in the sinking fund. The sinking fund shall be
    17  maintained with a bank, trust company or bank and trust company
    18  located and lawfully conducting a banking or trust business in
    19  this Commonwealth and appointed from time to time as a sinking
    20  fund depository.
    21     (b)  Deposit of moneys.--Moneys for the payment of taxes
    22  assumed and principal and interest on outstanding bonds or notes
    23  shall be deposited in the applicable sinking fund or sinking
    24  fund account from the sources, at the times and in the amounts
    25  provided in any contract with the holders of the bonds and notes
    26  but, in any event, prior to the time when payment of the taxes,
    27  principal and interest become due and payable. All moneys
    28  deposited in sinking funds as required by this subpart and all
    29  investments and proceeds of investments thereof shall, without
    30  further action or filing, be subject to a perfected security
    19950S0689B2340                 - 246 -

     1  interest for the holders of the bonds or notes for which the
     2  sinking fund is held until the money or investments have been
     3  properly disbursed or sold.
     4     (c)  Revenues from use of capital project.--A local
     5  government unit pledging the rates, rentals, receipts, charges
     6  and tolls from the use of a capital project, for the security of
     7  revenue or guaranteed revenue bonds or notes, may by ordinance
     8  provide for the deposit thereof as and when received in the
     9  sinking fund for the project.
    10     (d)  Other funds and accounts.--A local government unit may
    11  provide by ordinance for the creation and maintenance of other
    12  accounts in the sinking fund or of other funds for revenue or
    13  guaranteed revenue bonds or notes, including operating accounts
    14  or funds for financed projects, reserve accounts or funds for
    15  various purposes, a bond or note redemption account or fund and
    16  a surplus account or fund, and may prescribe the purposes for
    17  which the moneys and investments in each account or fund may be
    18  withdrawn and the amounts, times and sources of deposits
    19  therein. No ordinance shall restrict the application of the
    20  rates, receipts, charges and tolls received in respect of a
    21  capital project or combined capital projects, exclusive of
    22  assessments and contributions for capital improvements, in any
    23  fiscal year in excess of the amount required during the year for
    24  operating expenses, plus 140% or such lesser percent as may be
    25  fixed by ordinance of the amount required to be deposited during
    26  the year from the revenues in the applicable sinking fund for
    27  the payment, at maturity or scheduled mandatory redemption, of
    28  the principal of and interest on the related bonds or notes.
    29  This excess shall at all times be available for use by the local
    30  government unit for any lawful purpose and no contract with the
    19950S0689B2340                 - 247 -

     1  holders of bonds or notes shall provide to the contrary.
     2  § 8222.  Assessment fund.
     3     If a local government unit issues bonds or notes as general
     4  obligation bonds or guaranteed revenue bonds to provide funds
     5  for and towards the cost of making permanent street, sidewalk,
     6  water or sewer improvements or other assessable improvements,
     7  and the cost is assessed against the properties benefited, the
     8  assessments as collected shall be paid into a separate
     9  assessment fund. Moneys to the credit of the assessment fund may
    10  be used for any one or more of the following purposes in any
    11  proportions and subject to any priorities set forth in the
    12  ordinance incurring the debt:
    13         (1)  Payments to the sinking fund.
    14         (2)  Payment of the cost of such improvements.
    15         (3)  Creation and maintenance of a revolving fund if
    16     permitted by the laws governing the local government unit.
    17         (4)  Payment to the general fund or any other fund of the
    18     local government unit.
    19  The fund may be continued as a revolving fund, if permitted by
    20  law, or discontinued at any time. Unless otherwise provided in
    21  the ordinance incurring the debt, upon discontinuance of the
    22  fund the proceeds of the assessments shall be used to pay any
    23  bonds or notes remaining outstanding and to reimburse the
    24  general fund of the local government unit for the moneys paid on
    25  account of the bonds or notes.
    26  § 8223.  Duty of treasurer.
    27     The treasurer of each local government unit shall deposit
    28  into the applicable sinking fund or other fund the moneys to be
    29  deposited therein pursuant to the pledge or covenant made or
    30  adopted by the local government unit at the times and in the
    19950S0689B2340                 - 248 -

     1  amounts provided in the pledge or covenant or, if no pledge or
     2  covenant has been made or adopted, as provided in the
     3  appropriations made by the governing body. If no appropriation
     4  of moneys has been made or if it appears that, as a result of
     5  other expenditures, the appropriated revenues will not be
     6  received in sufficient amounts in time to make either the
     7  deposits required to be made for the payment of the taxes
     8  assumed and the interest on and principal of general obligation
     9  bonds and notes or the amount due on a guaranty of guaranteed
    10  revenue bonds or notes or on a guaranty of any authority or
    11  other local government unit obligation, the treasurer shall pay
    12  into the applicable sinking fund or other fund that portion of
    13  each receipt of tax moneys and other available revenues,
    14  subject, in the case of a limited guaranty, to the terms
    15  thereof, as will result in the deposit of sufficient moneys in
    16  the sinking fund or other fund to pay the taxes assumed and the
    17  principal of the interest on the bonds or notes or to meet the
    18  guaranty obligation of the local government unit as and when
    19  they become due and payable. The governing body of a local
    20  government unit may issue its tax anticipation notes under
    21  Subchapter B of Chapter 81 (relating to tax anticipation notes
    22  and funding debt) to provide all or any part of any moneys
    23  needed for deposit in the sinking funds or other funds.
    24  § 8224.  Deposit and investment of moneys in sinking funds and
    25             other funds.
    26     (a)  Deposit with financial institutions.--Any moneys in
    27  sinking funds and other funds established by ordinance as
    28  provided in this subpart, if not required for prompt
    29  expenditure, may be deposited at interest in time accounts or
    30  certificates of deposit of any bank or bank and trust company,
    19950S0689B2340                 - 249 -

     1  accounts with any savings bank or deposits in building and loan
     2  associations or savings and loan associations. Moneys required
     3  for prompt expenditure shall be held in demand deposits. To the
     4  extent that the deposits or accounts are insured by the Federal
     5  Deposit Insurance Corporation or the Federal Savings and Loan
     6  Insurance Corporation, they need not be secured; otherwise, the
     7  deposits shall be secured as public deposits whether or not
     8  title, by virtue of the deposit with a fiscal agent or trustee
     9  for bondholders, is in the fiscal agent or trustee, except that
    10  moneys held by the fiscal agent, trustee or sinking fund
    11  depository itself may be secured as trust funds.
    12     (b)  Investment in securities.--Any moneys in funds or
    13  accounts not required for prompt expenditure and not deposited
    14  at interest shall, to the extent practicable and reasonable, be
    15  invested in any securities in which the Commonwealth may, at the
    16  time of investment, invest moneys of the Commonwealth not
    17  required for prompt expenditure, subject to any stricter
    18  requirements in any contract with the holders of bonds or notes
    19  for which the particular fund or account was created or
    20  maintained.
    21     (c)  Control of account.--All such deposits and investments
    22  shall be in the name of the local government unit, but moneys
    23  and investments in the sinking fund shall be subject to
    24  withdrawal or collection only by the sinking fund depository for
    25  proper purposes in accordance with this subpart.
    26     (d)  Disposition of income.--Income received from any deposit
    27  or investment shall be a part of the fund or account invested
    28  and may be applied if so desired by the local government unit in
    29  reduction of or to complete any required deposits in the fund or
    30  account.
    19950S0689B2340                 - 250 -

     1     (e)  Combining accounts.--For the purposes of investment or
     2  deposit at interest, all accounts in a sinking fund or other
     3  accounts or funds established in respect of one or more series
     4  of bonds or notes having the same depository may be combined,
     5  and each combined account shall be entitled to its pro rata
     6  share of each deposit or investment.
     7     (f)  Return of unclaimed moneys.--The sinking fund depository
     8  shall return to the local government unit all moneys deposited
     9  in a sinking fund for the payment of bonds, notes or coupons
    10  which have not been claimed by the holders thereof after two
    11  years from the date when payment is due, except where the funds
    12  are held for the payment of outstanding checks, drafts or other
    13  instruments of the sinking fund depository. This subsection or
    14  any action taken under this subsection does not relieve the
    15  local government unit of its liability to the holders of
    16  unpresented bonds, notes or coupons.
    17     (g)  Sale of investments.--Any investments of a sinking fund,
    18  including bonds of the local government unit held therein, may
    19  be sold at any time by the sinking fund depository if cash is
    20  required for expenditure, or as directed by the managers of the
    21  sinking fund, through any broker or dealer in securities, any
    22  other law concerning dispositions of assets of a local
    23  government unit to the contrary notwithstanding.
    24  § 8225.  Management of sinking and other funds.
    25     The management and control of sinking and other funds, and
    26  investments thereof, subject to the provisions of this subpart
    27  shall be vested in the governing body of the local government
    28  unit except:
    29         (1)  Where by any other law there has been created any
    30     board or commission for the management and control of sinking
    19950S0689B2340                 - 251 -

     1     funds of a particular class of local government units, in
     2     which case the board or commission shall have the management
     3     and control of the sinking funds of the local government
     4     units.
     5         (2)  To the extent otherwise lawfully provided in any
     6     contract with the holders of bonds or notes.
     7  § 8226.  Inspection of sinking funds and orders to comply.
     8     (a)  General rule.--The department may from time to time
     9  audit the sinking funds and all records pertaining thereto of
    10  local government units which have any outstanding debt, except
    11  those annually submitting to the department reports of their
    12  sinking funds audited by an independent public accountant and
    13  except for school districts of the first class or cities of the
    14  second class and second class A.
    15     (b)  Order to comply.--If such audit or reports disclose that
    16  any local government unit has refused or neglected to establish
    17  sinking funds as required by this subpart, or has failed to
    18  provide sufficient moneys for any sinking fund to meet the
    19  payments of assumed taxes, principal and interest to be made
    20  therefrom, is not investing a sufficient amount of the sinking
    21  fund moneys or is otherwise in violation of this subchapter, the
    22  department shall make an order requiring the local government
    23  unit or any officer thereof or the governing body to take any
    24  steps as, in the opinion of the department, will cause the
    25  sinking funds to comply with this subchapter or to be
    26  sufficient.
    27     (c)  Mandamus to compel compliance with order.--In addition
    28  to the criminal prosecutions provided for in Subchapter E
    29  (relating to penalties) or, in lieu thereof, the department may
    30  apply to the court for an order in mandamus to issue to the
    19950S0689B2340                 - 252 -

     1  officer or governing body of the local government unit to compel
     2  compliance with the order of the department or with the order
     3  with any modifications thereof as to the court may seem just and
     4  proper.
     5  § 8227.  Sinking fund not required for small borrowings.
     6     A local government unit may, but shall not be required to,
     7  comply with the provisions of this subchapter in respect of
     8  notes issued in compliance with section 8109 (relating to small
     9  borrowing for capital purposes).
    10                            SUBCHAPTER C
    11                         REFUNDING OF DEBT
    12  Sec.
    13  8241.  Power to refund.
    14  8242.  Treatment of costs upon refunding.
    15  8243.  Limitation on extending term of debt by refunding.
    16  8244.  Effect of debt limits on refunding nonelectoral bonds
    17         or notes or lease rental debt.
    18  8245.  Refunding of electoral debt.
    19  8246.  Procedure for authorization, sale, issue and approval
    20         of refunding bonds or notes.
    21  8247.  Special limitation on refunding of funding debt.
    22  8248.  Approval of refunding by the electors.
    23  8249.  Refunding with bonds of another type.
    24  8250.  Use of proceeds of refunding bonds and when refunded
    25         bonds are no longer deemed outstanding.
    26  8251.  Cessation of interest on called bonds or notes.
    27  § 8241.  Power to refund.
    28     (a)  General rule.--Subject to the provisions of the
    29  outstanding bonds, notes or obligations evidencing lease rental
    30  debt and subject to the provisions of this subchapter, a local
    19950S0689B2340                 - 253 -

     1  government unit may refund any outstanding debt, in whole or in
     2  part, at any time and may refund any outstanding notes with
     3  bonds or bonds with notes.
     4     (b)  Authorized purposes.--The refunding may be for any one
     5  or more of the following purposes:
     6         (1)  Reducing total debt service over the life of the
     7     series.
     8         (2)  Reducing the annual debt service in any particular
     9     year or years, by extending the life of the issue subject to
    10     the limitations imposed by section 8247 (relating to special
    11     limitation on refunding of funding debt).
    12         (3)  Eliminating any covenant or restriction in, or
    13     applicable to, any outstanding series or issue of bonds or
    14     notes determined by the local government unit to be unduly
    15     burdensome or restrictive.
    16         (4)  Refunding any maturity or maturities or any portions
    17     thereof to a later date subject to the limitations imposed by
    18     section 8247.
    19         (5)  Substituting bonds for notes or bond anticipation
    20     notes or substituting notes for bonds.
    21         (6)  Adjusting lease rentals upon refunding of lease
    22     rental debt for any one or more of the foregoing purposes.
    23  It is immaterial whether or not any such refunding under
    24  paragraph (2), (3), (4) or (5) increases the total debt service
    25  payable over the life of the series.
    26     (c)  Definition.--As used in this section, the term "refund"
    27  and its variations shall mean the issuance and sale of
    28  obligations the proceeds of which are used or are to be used for
    29  the payment or redemption of outstanding obligations upon or
    30  prior to maturity.
    19950S0689B2340                 - 254 -

     1  § 8242.  Treatment of costs upon refunding.
     2     (a)  General rule.--In any refunding, a principal amount of
     3  refunding bonds or notes or obligations evidencing lease rental
     4  debt equal to the sum of the following:
     5         (1)  the call premium payable on the bonds, notes or
     6     obligations being refunded;
     7         (2)  the discount allowed on the sale of the refunding
     8     bonds, notes or obligations;
     9         (3)  any funds borrowed to pay interest on bonds, notes
    10     or obligations being refunded; and
    11         (4)  the costs of issue and sale of the refunding bonds,
    12     notes or obligations;
    13  may be considered as interest on the refunding bonds, notes or
    14  obligations and may be separately stated in all reporting of
    15  debt and in all computation of debt limits and, if so considered
    16  and reported by the local government unit, shall not be
    17  considered as electoral, nonelectoral or lease rental debt. In
    18  subsequent debt statements, any such separately stated principal
    19  amount of bonds, notes or obligations shall be reported as being
    20  amortized in the same proportion as the series of which they are
    21  a part.
    22     (b)  Comparison of debt service.--For the purpose of
    23  computing whether savings are being effected, the comparison of
    24  debt service which would be payable on the refunded bonds, notes
    25  or obligations shall be with debt service on the refunding
    26  bonds, notes or obligations without reference to the designation
    27  of the costs in subsection (a)(1) through (4), adjusted in each
    28  case by projected receipt of interest on invested funds of
    29  excess revenues or application of reserves to make the
    30  comparison reasonable and proper.
    19950S0689B2340                 - 255 -

     1  § 8243.  Limitation on extending term of debt by refunding.
     2     (a)  General rule.--Subject to the terms of section 8247
     3  (relating to special limitation on refunding of funding debt)
     4  and to the terms of subsection (b), a local government unit
     5  shall not extend the term of outstanding debt through refunding
     6  to a maturity date that could not have been included in the
     7  original issue, except in the case of an emergency refunding of
     8  stated maturity date to avoid a default occasioned by an
     9  unforeseen shortage in total revenues proven to the satisfaction
    10  of the department upon petition, filed by the governing body of
    11  the local government unit, alleging the emergency and the
    12  unforeseen loss of revenues. Public notice of the intention to
    13  file a petition shall be given by advertisement not less than
    14  five nor more than 20 days before the filing thereof. The
    15  emergency refunding shall be made only in the amount and with
    16  the stated maturity date or dates approved by the department.
    17  The first maturity of a refunding issue need not occur until the
    18  year after the last stated maturity date of the bonds not called
    19  in the series being refunded.
    20     (b)  Increasing amount of principal payable.--Except in the
    21  case of refundings for the purposes specified in section
    22  8241(b)(1) and (5) (relating to power to refund) and except for
    23  emergency refundings approved by the department, no refunding
    24  bonds shall be issued which will increase the amount of
    25  principal payable, after provision for earlier mandatory calls,
    26  in any year or years after the latest stated maturity date of
    27  the bonds being refunded, over the amount of the principal which
    28  would have been payable on the bonds or notes originally issued
    29  for the project in each such year if the original bonds or notes
    30  had been structured on a 6% level annual debt service plan to
    19950S0689B2340                 - 256 -

     1  the last stated maturity date of the proposed refunding bonds,
     2  computed to the nearest whole multiple of $5,000, as the amounts
     3  shall be computed by a financial advisor, other qualified person
     4  or public accountant.
     5  § 8244.  Effect of debt limits on refunding nonelectoral bonds
     6             or notes or lease rental debt.
     7     If any debt originally incurred was lawfully incurred and
     8  issued and, at the time the debt was incurred, the portion
     9  constituting nonelectoral debt or lease rental debt was within
    10  the limitations imposed thereon by law, the issue of refunding
    11  bonds or notes or the adjustment of lease rentals in respect of
    12  the debt shall be lawful and valid, notwithstanding that the
    13  aggregate of outstanding debt shall thereby exceed the then
    14  applicable limitations set by section 8022 (relating to
    15  limitations on incurring of other debt), which limitations shall
    16  be deemed increased but only to the extent necessary to
    17  effectuate and amortize the refunding lawfully. Any portion of
    18  the refunding bonds, notes or obligations may be excluded from
    19  nonelectoral debt or lease rental debt, either as subsidized
    20  debt or self-liquidating debt, in accordance with the procedure
    21  provided in Subchapter B of Chapter 80 (relating to limitations
    22  on debt of local government units).
    23  § 8245.  Refunding of electoral debt.
    24     A local government unit may, by action of its governing body
    25  and in accordance with the limitations of this subchapter,
    26  refund any debt originally incurred as electoral debt. The
    27  refunding bonds, notes or obligations so issued shall not
    28  thereby be considered nonelectoral debt or lease rental debt for
    29  any purpose.
    30  § 8246.  Procedure for authorization, sale, issue and approval
    19950S0689B2340                 - 257 -

     1             of refunding bonds or notes.
     2     Bonds or notes issued for refunding purposes shall be
     3  authorized, issued, sold, approved and settled and refunding of
     4  lease rental debt shall be authorized and approved in the manner
     5  provided in this subpart for the authorization, issue, sale and
     6  approval of the original debt, subject to any additional
     7  limitations provided in this subchapter. No refunding bonds or
     8  notes shall be delivered to the purchasers thereof unless,
     9  simultaneously therewith, the notes or bonds being refunded
    10  become no longer outstanding in accordance with section 8250
    11  (relating to use of proceeds of refunding bonds and when
    12  refunded bonds are no longer deemed outstanding). No adjustment
    13  in lease rentals shall be made unless appropriate provision for
    14  the retirement of the outstanding lease rental debt has been
    15  made.
    16  § 8247.  Special limitation on refunding of funding debt.
    17     A debt incurred for funding purposes pursuant to section 8130
    18  (relating to approval by court to fund unfunded debt) or under
    19  law in existence prior to July 12, 1972, shall not be refunded
    20  except under section 8241(b)(1) (relating to power to refund)
    21  until the refunding has been approved as necessary by the court
    22  of common pleas. The approval shall be obtained by petition to
    23  reopen the proceedings in which the funding debt was originally
    24  incurred, and the court shall grant the petition if, after
    25  hearing, the court is satisfied that the refunding is necessary
    26  and is in the public interest. Public notice of the filing of
    27  the petition shall be given by advertisement not less than five
    28  nor more than 20 days before the filing thereof. All subsequent
    29  proceedings in respect of the refunding of the funding debt
    30  shall be taken in accordance with the provisions of this subpart
    19950S0689B2340                 - 258 -

     1  applicable to the incurring of the original debt. Bonds or notes
     2  issued to refund funding debt shall be stated to mature at the
     3  dates and in the amounts on each date as may be approved by the
     4  court, notwithstanding any limitation on the term of funding
     5  debt imposed elsewhere in this subpart.
     6  § 8248.  Approval of refunding by the electors.
     7     The governing body of any local government unit may also
     8  obtain the approval of the electors to any refunding of
     9  nonelectoral or lease rental debt in the manner prescribed for
    10  an original issue by Subchapter C of Chapter 80 (relating to
    11  procedure for securing approval of electors) and may issue
    12  general obligation bonds or guaranteed revenue bonds or incur
    13  other obligations in the refunding if approved by the electors
    14  regardless of the class of bonds, notes or obligations
    15  originally issued.
    16  § 8249.  Refunding with bonds of another type.
    17     Subject to the limitations of section 8022 (relating to
    18  limitations on incurring of other debt) or after a referendum
    19  held pursuant to section 8248 (relating to approval of refunding
    20  by the electors), the governing body of any local government
    21  unit may for any purpose specified in section 8241 (relating to
    22  power to refund) refund with its general obligation bonds or
    23  notes or its guaranteed revenue bonds or notes all or any part
    24  of any outstanding revenue bonds or notes or bonds, notes or
    25  obligations of any authority or other local governmental unit
    26  constituting lease rental debt of the local government unit or
    27  may refund any outstanding revenue bonds or guaranteed revenue
    28  bonds or notes with like bonds or notes. The local government
    29  unit may also refund any general obligation or guaranteed
    30  revenue bonds with its revenue bonds, by the incurring of lease
    19950S0689B2340                 - 259 -

     1  rental debt or by guaranteeing the obligations of an authority.
     2  § 8250.  Use of proceeds of refunding bonds and when refunded
     3             bonds are no longer deemed outstanding.
     4     (a)  General rule.--The proceeds of refunding bonds, together
     5  with any other moneys made available for the purpose, shall be
     6  used solely for the purpose of retiring the bonds being refunded
     7  and for the purpose of paying the costs of the refunding.
     8     (b)  When obligations no longer deemed outstanding.--Any
     9  bonds or notes to be redeemed or paid shall no longer be deemed
    10  to be outstanding for the purpose of determining the net debt of
    11  the local government unit or for the purposes of any indenture
    12  limitations on repledging revenues when the local government
    13  unit has irrevocably deposited with a bank or bank and trust
    14  company in a sufficient amount:
    15         (1)  Moneys.
    16         (2)  Noncallable securities of the Federal Government or
    17     of the Commonwealth maturing or payable at par at the option
    18     of the holders at or prior to the dates needed for
    19     disbursement.
    20         (3)  Time deposits or certificates of deposit, with a
    21     firm rate of interest or stated minimum rate of interest,
    22     issued by a bank or bank and trust company and insured or
    23     adequately secured as required by section 8224 (relating to
    24     deposit and investment of moneys in sinking funds and other
    25     funds).
    26         (4)  Any combination of the foregoing.
    27     (c)  Deposits equal to principal and interest.--Subject to
    28  any relevant contrary law or regulation, the amount deposited
    29  may be equal to the principal and interest to become due on the
    30  bonds or notes being refunded to the date on which the bonds or
    19950S0689B2340                 - 260 -

     1  notes are stated to mature or any lesser amount computed in
     2  accordance with the provisions of subsection (d).
     3     (d)  Test of sufficiency.--The deposited amount shall be
     4  sufficient when it, together with the interest to be earned
     5  thereon, will equal the principal, premium and interest to
     6  become due on the bonds or notes being refunded to the earlier
     7  of the date at which any bonds or notes are stated to mature, or
     8  have been called for prior redemption, except that the local
     9  government unit shall simultaneously have given the bank or bank
    10  and trust company instructions and authority, stated to be
    11  irrevocable, to publish any notices of redemption remaining to
    12  be published.
    13     (e)  Irrevocable call for redemption.--When stated to be
    14  irrevocable, the instructions and authority to call bonds or
    15  notes for redemption shall become irrevocable upon the delivery
    16  thereof, or upon the deposit of the moneys or securities in a
    17  sufficient amount to effect the redemption, whichever occurs
    18  later. Until the irrevocability has occurred, a call for
    19  redemption may be revoked by notice given in the same manner as
    20  the notice of redemption.
    21  § 8251.  Cessation of interest on called bonds or notes.
    22     Upon the date fixed for redemption, if the irrevocable
    23  deposit has been made and the required notice of the redemption
    24  has been given, no further interest on the bonds or notes so
    25  called for redemption shall accrue. This subchapter does not
    26  relieve the issuing local government unit of its obligation to
    27  see that the holders of the bonds or notes called for redemption
    28  are paid in full on the date fixed for redemption. From and
    29  after that date, if the irrevocable deposit was made at the
    30  proper amount on that date, the holders of bonds or notes called
    19950S0689B2340                 - 261 -

     1  for redemption shall have no rights against the local government
     2  unit except to receive payment from the deposited funds or from
     3  the local government unit to the extent of the moneys returned
     4  to it pursuant to section 8224(f) (relating to deposit and
     5  investment of moneys in sinking funds and other funds).
     6                            SUBCHAPTER D
     7                              REMEDIES
     8  Sec.
     9  8261.  Failure to budget debt service.
    10  8262.  Failure to pay principal or interest.
    11  8263.  Trustee for bondholders.
    12  8264.  Receiver for revenue projects.
    13  8265.  Costs of suits or proceedings.
    14  8266.  Distribution of moneys realized for bondholders.
    15  § 8261.  Failure to budget debt service.
    16     If a local government unit having outstanding any general
    17  obligation bonds or notes or guaranteed revenue bonds or notes,
    18  lease rental debt or guaranty of authority obligations fails or
    19  refuses to make adequate provision in its budget for any fiscal
    20  year for the sums payable in respect of the bonds or notes,
    21  lease rental or guaranty in the year or fails to appropriate or
    22  pay the moneys necessary in that year for the payment of the
    23  amount of the lease rental or guaranty, as the case may be, of
    24  the maturing principal of and the interest on the bonds or notes
    25  or any of them, or any tax anticipation notes, or any sinking
    26  fund obligation for the bonds or notes or tax anticipation
    27  notes, or guaranty or the lease rental payment coming due in the
    28  fiscal year of the budget or for which the appropriations or
    29  payments should have been made, then at the suit of the holder
    30  of any bond, note or tax anticipation note or coupon or
    19950S0689B2340                 - 262 -

     1  guaranty, or the holder of any authority obligation secured by a
     2  lease evidencing the acquisition of a capital asset or of any
     3  taxpayer of the local government unit, the court of common pleas
     4  shall, after a hearing held upon such notice to the local
     5  government unit as the court may direct and upon a finding of
     6  such failure or neglect, by order of mandamus require the
     7  treasurer of the local government unit to pay into the sinking
     8  fund for each series of bonds or notes then outstanding, or for
     9  each guaranty or lease rental payment, the first tax moneys or
    10  other available revenues or moneys thereafter received in the
    11  fiscal year by the treasurer, equally and ratably for each
    12  series for which provision has not been made in proportion to
    13  debt service for the year on each series then outstanding, or
    14  the amounts due upon guaranties or as payments with respect to
    15  lease rental debt, as the case may be. Any priority on incoming
    16  tax moneys accorded to a separate sinking fund for tax
    17  anticipation notes under the authority of section 8125 (relating
    18  to security for tax anticipation notes and sinking fund) shall
    19  not be affected by this provision until the sum on deposit in
    20  each sinking fund equals the moneys that should have been
    21  budgeted or appropriated for each series.
    22  § 8262.  Failure to pay principal or interest.
    23     (a)  General rule.--If a local government unit fails or
    24  neglects to pay the interest or principal on any of its general
    25  obligation bonds or notes or tax anticipation notes as the same
    26  becomes due and payable, whether at the stated maturity date or
    27  upon an unrevoked call for prior redemption, or to perform its
    28  payment obligations with respect to any lease rental debt or
    29  guaranteed revenue bonds or notes, and the failure continues for
    30  30 days, the holder thereof may, subject to priorities created
    19950S0689B2340                 - 263 -

     1  under sections 8125 (relating to security for tax anticipation
     2  notes and sinking fund), 8261 (relating to failure to budget
     3  debt service) and 8263 (relating to trustee for bondholders) and
     4  to any limitations upon individual rights of action properly
     5  provided in the bond ordinance or any indenture, recover the
     6  amount due in an action in the court of common pleas. The
     7  judgment recovered shall have an appropriate priority upon the
     8  moneys next coming into the treasury of the local government
     9  unit and shall be a judgment upon which funding bonds may be
    10  issued pursuant to Subchapter B of Chapter 81 (relating to tax
    11  anticipation notes and funding debt).
    12     (b)  Revenue bonds and notes.--If a local government unit
    13  fails or neglects to pay or cause to be paid the principal of or
    14  the interest upon any revenue bond or note as the same shall
    15  become due, whether at the stated maturity or upon call for
    16  prior redemption, the holder thereof may, subject to priorities
    17  created under sections 8125, 8262 (relating to failure to pay
    18  principal or interest) and 8263 and to any limitations upon
    19  individual rights of action properly provided in the bond
    20  ordinance or any indenture, recover the amount due in an action
    21  in the court of common pleas but the judgment shall be limited
    22  to payment out of the assessments, revenues, rates, rents, tolls
    23  and charges from the project which are pledged for the payment
    24  of the bonds or notes.
    25  § 8263.  Trustee for bondholders.
    26     (a)  Appointment.--Notwithstanding any provision in the bonds
    27  or notes or in any authorizing ordinance, if a local government
    28  unit defaults in the payment of the principal of or the interest
    29  on any series of bonds or notes after it becomes due, whether at
    30  the stated maturity or upon call for prior redemption, and the
    19950S0689B2340                 - 264 -

     1  default continues for 30 days, or if the local government unit
     2  fails to comply with any provision of the bonds or notes, or in
     3  any authorizing resolution or indenture of trust, the holders of
     4  25% in aggregate principal amount of the bonds or notes of the
     5  series then outstanding, by an instrument or instruments filed
     6  in the office of the recorder of deeds in the county in which
     7  the local government unit is located, signed and acknowledged as
     8  a deed to be recorded, may appoint a trustee, who may be the
     9  sinking fund depository, to represent the holders of all the
    10  bonds or notes, and the representation shall be exclusive for
    11  the purposes provided in this section.
    12     (b)  Powers and duties.--The trustee may and, upon written
    13  request of the holders of 25% in principal amount of the bonds
    14  or notes then outstanding and upon being furnished with
    15  indemnity satisfactory to it, shall, in his or its own name take
    16  one or more of the following actions, and the taking of such
    17  action shall preclude similar action whether previously or
    18  subsequently initiated by individual holders of bonds or notes:
    19         (1)  By mandamus or other proceeding at law or in equity,
    20     enforce all rights of the holders of the bonds or notes,
    21     including, in the case of revenue or guaranteed revenue
    22     obligations, the right to require the local government unit
    23     to:
    24             (i)  impose and collect rents, rates, tolls and
    25         charges adequate to carry out any agreement or covenant
    26         as to, or pledge of, the rents, rates, tolls or charges,
    27         for the use of the project or projects financed by the
    28         bonds or notes; or
    29             (ii)  carry out any other agreements with the holders
    30         of the bonds or notes.
    19950S0689B2340                 - 265 -

     1         (2)  Bring suit on the bonds or notes without the
     2     necessity for producing the bonds or notes, and with the same
     3     effect as a suit by any holder.
     4         (3)  In the case of revenue or guaranteed revenue bonds
     5     or notes, require the local government unit to account, as if
     6     it were the trustee of an express trust for the holders of
     7     the bonds or notes, for any pledged revenues received.
     8         (4)  In the case of general obligation bonds or notes,
     9     petition the court to levy, after a hearing upon such notice
    10     to the owners of assessable real estate as the court may
    11     prescribe, the amount due before or after the exercise of any
    12     right of acceleration on the bonds or notes, plus estimated
    13     costs of collection as an assessment upon the properties
    14     benefited by the improvement pursuant to the front-foot rule
    15     if the project is an assessable improvement, otherwise upon
    16     all taxable real estate and other property subject to ad
    17     valorem taxation in the local government unit, in proportion
    18     to the value thereof as assessed for tax purposes, and the
    19     trustee may collect or cause the local government unit to
    20     collect such assessments as by foreclosure of a mortgage or
    21     security interest on the realty or other property if not paid
    22     on demand.
    23         (5)  In the case of guaranteed revenue bonds or notes or
    24     a guarantee of authority obligations or unpaid lease rentals
    25     under leases evidencing the acquisition of capital assets, to
    26     petition the court to levy, after hearing upon the notice to
    27     the owners of assessable real estate and other property
    28     subject to ad valorem taxation as the court may prescribe,
    29     the amount due on the guaranty or under the lease plus
    30     estimated costs of collection as an annual assessment for the
    19950S0689B2340                 - 266 -

     1     current and future years upon all taxable real estate and
     2     other properties subject to ad valorem taxation in the local
     3     government unit in proportion to the value thereof as
     4     assessed for tax purposes, and the trustee may collect or
     5     cause the local government unit to collect the assessments as
     6     by foreclosure of a mortgage or security interest on the
     7     realty or other property if not paid on demand. The levy
     8     shall bear interest, until paid, at a rate sufficient to
     9     cover accruing interest on the bonds or notes.
    10         (6)  By suit in equity, enjoin any acts or things which
    11     may be unlawful or in violation of the rights of the holders
    12     of the bonds, notes, guaranty or authority obligations under
    13     a lease evidencing the acquisition of capital assets.
    14         (7)  After 30 days' prior written notice to the local
    15     government unit and subject to any limitations in the bond
    16     ordinance or relevant indenture, declare the unpaid principal
    17     of all the bonds or notes to be immediately due and payable
    18     with interest at the rates stated in the bonds until final
    19     payment. If all defaults are made good, the trustee may annul
    20     the declaration and its consequences.
    21  Any assessment levied pursuant to paragraphs (4) and (5) shall
    22  have the same priority and preference as to other liens or
    23  mortgages on the real estate or security interests in fixtures
    24  thereon or other property as a lien for unpaid taxes.
    25     (c)  Installment payments.--The court of common pleas in
    26  cases of extreme hardship may provide for the payment of sums
    27  levied in five or fewer annual installments with interest at a
    28  rate sufficient to cover the interest accruing on the bonds or
    29  notes.
    30     (d)  Trustee or fiscal agent under original issue.--If a
    19950S0689B2340                 - 267 -

     1  trustee or fiscal agent for the bondholders or noteholders was
     2  appointed in connection with the original issue of the bonds or
     3  notes and is willing to serve and exercise the powers conferred
     4  upon a trustee appointed by this section, the trustee appointed
     5  in the manner provided in this section shall have the powers set
     6  forth unless the appointment under this section was executed by
     7  or pursuant to the authority of the holders of a principal
     8  amount of the bonds or notes sufficient to remove the originally
     9  appointed trustee or fiscal agent.
    10  § 8264.  Receiver for revenue projects.
    11     (a)  Appointment.--A trustee for the holders of defaulted
    12  bonds or notes, whether or not the series of bonds represented
    13  by the trustee has been declared to be and has become
    14  immediately due and payable, shall be entitled as of right to
    15  the appointment, by the court of common pleas, of a receiver of
    16  all or any part or parts of a project or the projects, the
    17  rents, rates, revenues, tolls and charges of which are pledged
    18  for the security of the bonds or notes of the series.
    19     (b)  Powers and duties.--Except as otherwise provided in this
    20  section, the receiver may not sell, assign, mortgage or
    21  otherwise dispose of, but may enter and take possession of, the
    22  project or projects or part or parts thereof and, subject to the
    23  equal or prior rights of the holders of any other series of
    24  bonds or notes, shall take possession of all moneys and other
    25  property derived from or applicable to the construction,
    26  operation, maintenance, repair and reconstruction of the project
    27  or projects or parts thereof. The receiver may thereafter
    28  proceed with any construction or other work thereon which the
    29  local government unit is under obligation to do. The receiver
    30  may operate, maintain, repair and reconstruct the project or
    19950S0689B2340                 - 268 -

     1  projects or parts thereof and collect and receive all rents,
     2  rates, receipts, tolls, other charges and revenues arising
     3  therefrom, subject to the equal or prior rights of the holders
     4  of any other series of bonds or notes therein. As part of his
     5  power to operate and maintain a project, the receiver may sell
     6  or otherwise dispose of equipment which is no longer used or
     7  usable by the project. The receiver shall perform the public
     8  duties and carry out the lawful agreements and obligations of
     9  the local government unit with respect to the project or
    10  projects or parts thereof, all under the direction of the court,
    11  but shall not perform any essential governmental functions.
    12  § 8265.  Costs of suits or proceedings.
    13     In any suit, action or proceeding by or on behalf of the
    14  holders of defaulted bonds or notes of a local government unit
    15  brought under this subpart, the fees and expenses of a trustee
    16  or receiver, including operating costs of a project and
    17  reasonable counsel fees, shall constitute taxable costs, and all
    18  costs and disbursements allowed by the court shall be deemed
    19  additional principal due on the bonds or notes and shall be paid
    20  in full from any recovery prior to any distribution to the
    21  holders of the bonds or notes.
    22  § 8266.  Distribution of moneys realized for bondholders.
    23     Moneys or funds collected for the holders of defaulted bonds
    24  or notes entitled to share equally and ratably therein shall,
    25  after the payment of costs and fees as provided in section 8265
    26  (relating to costs of suits or proceedings), be applied by the
    27  trustee or receiver, unless the terms of the bonds or notes
    28  provide otherwise, as follows:
    29         (1)  Unless the principal of all of the bonds or notes
    30     represented has become or has been declared due and payable:
    19950S0689B2340                 - 269 -

     1             (i)  To the payment to the persons entitled thereto
     2         of all installments of interest then due in the order of
     3         the stated maturity dates of the installments of the
     4         interest and, if the amount available is not sufficient
     5         to pay any installment in full, then to the payment
     6         ratably, according to the amounts due on the installment,
     7         to the persons entitled thereto, without any
     8         discrimination or preference except as to any difference
     9         in the respective rates of interest expressed in the
    10         bonds or notes or coupons for interest.
    11             (ii)  To the payment to the persons entitled thereto
    12         of the unpaid principal of any bonds or notes which has
    13         become due, whether at stated maturity dates or by call
    14         for redemption, in the order of their respective due
    15         dates and, if the amount available is not sufficient to
    16         pay in full all the bonds or notes due on any date, then
    17         to the payment ratably, according to the amounts of
    18         principal due on the dates, to the persons entitled
    19         thereto without any discrimination or preference.
    20         (2)  If the principal of all of the bonds or notes
    21     entitled to share equally in the moneys has become or has
    22     been declared due and payable, to the payment of the
    23     principal and interest then due and unpaid upon the bonds or
    24     notes without preference or priority of principal over
    25     interest or interest over principal, or of any installment of
    26     interest over any other installment of interest, or of any
    27     bond or note over any other bond or note, ratably according
    28     to the amounts due respectively for principal and interest,
    29     to the persons entitled thereto without any discrimination or
    30     preference except as to any difference in the respective
    19950S0689B2340                 - 270 -

     1     rates of interest specified in the bonds, notes and coupons.
     2         (3)  If more than one series is involved and the
     3     principal of all bonds or notes of one or more series has
     4     become or has been declared due and payable, and that if one
     5     or more others has not, the funds available shall be
     6     apportioned to each series according to the respective
     7     amounts of principal of each series then outstanding less, as
     8     to each series any amounts held earmarked for the series, and
     9     distribution to the holders of the bonds, notes and coupons
    10     of each series shall be made according to whichever of
    11     paragraphs (1) and (2) may be applicable.
    12                            SUBCHAPTER E
    13                             PENALTIES
    14  Sec.
    15  8271.  Failure to obey sinking fund directive of department.
    16  § 8271.  Failure to obey sinking fund directive of department.
    17     Any officer or any member of the governing body of any local
    18  government unit who refuses or neglects to obey any order of the
    19  department made under Subchapter B (relating to sinking funds
    20  and other funds and accounts) concerning sinking funds or who
    21  refuses to furnish requested information required by the
    22  department, or refuses agents of the department access to any
    23  books, records or documents relating to sinking funds, commits a
    24  misdemeanor of the third degree and shall, upon conviction, be
    25  sentenced to pay a fine not more than $500 for each day of
    26  violation.
    27     Section 2.  (a)  The following acts and parts of acts are
    28  repealed:
    29     Act of May 29, 1956 (1955 P.L.1845, No.611), known as the
    30  Regional Planning Law.
    19950S0689B2340                 - 271 -

     1     Act of July 28, 1959 (P.L.579, No.188), entitled "An act to
     2  authorize political subdivisions of this Commonwealth to
     3  establish an emergency temporary location or locations for their
     4  seats of government and to exercise governmental powers and
     5  functions thereat."
     6     Act of November 30, 1967 (P.L.658, No.305), known as the
     7  Business Improvement District Act of 1967.
     8     Act of January 18, 1968 (1967 P.L.961, No.428), known as the
     9  Municipal Records Act.
    10     Act of March 16, 1972 (P.L.108, No.39), known as the
    11  Environmental Improvement Compact.
    12     Act of April 13, 1972 (P.L.184, No.62), known as the Home
    13  Rule Charter and Optional Plans Law.
    14     Act of July 12, 1972 (P.L.762, No.180), referred to as the
    15  Intergovernmental Cooperation Law.
    16     Act of July 12, 1972 (P.L.781, No.185), known as the Local
    17  Government Unit Debt Act.
    18     Act of December 21, 1973 (P.L.425, No.148), referred to as
    19  the Municipal Environmental Advisory Council Law.
    20     Act of June 18, 1974 (P.L.359, No.120), referred to as the
    21  Municipal Police Education and Training Law.
    22     Act of December 13, 1974 (P.L.947, No.312), known as the
    23  Municipal Reapportionment Act.
    24     (b)  The act of October 23, 1959 (P.L.1369, No.474), known as
    25  the Emergency Interim Executive and Judicial Succession Act of
    26  1959, is repealed as to political subdivisions.
    27     Section 3.  This act shall take effect in 60 days.


    19950S0689B2340                 - 272 -

     1                            SOURCE TABLE
     2               PROPOSED GENERAL LOCAL GOVERNMENT CODE
     3         PREPARED BY THE JOINT STATE GOVERNMENT COMMISSION

     4  ----------------------------------------------------------------
     5  Proposed GLGC      P.L. Citation    Section    Purdon's Citation
     6  ----------------------------------------------------------------
     7  53 Pa.C.S. 901     1974-947-312        1       53 P.S. 11601
     8  53 Pa.C.S. 902     1974-947-312        2       53 P.S. 11602
     9  53 Pa.C.S. 903     1974-947-312        3       53 P.S. 11603
    10  53 Pa.C.S. 904     1974-947-312        4       53 P.S. 11604
    11  53 Pa.C.S. 905     1974-947-312        5       53 P.S. 11605
    12  53 Pa.C.S. 906     1974-947-312        6       53 P.S. 11606
    13  53 Pa.C.S. 907     1974-947-312        7       53 P.S. 11607
    14  53 Pa.C.S. 908     1974-947-312        8       53 P.S. 11608
    15  53 Pa.C.S. 1121    New                         None
    16  53 Pa.C.S. 1122    1959-579-188        1       71 P.S. 777.1
    17  53 Pa.C.S. 1123    1959-579-188        2       71 P.S. 777.2
    18  53 Pa.C.S. 1124    1959-579-188        3       71 P.S. 777.3
    19  53 Pa.C.S. 1131    1959-1369-474       1       71 P.S. 779.1
    20  53 Pa.C.S. 1132    1959-1369-474       2       71 P.S. 779.2
    21  53 Pa.C.S. 1133    1959-1369-474       3       71 P.S. 779.3
    22  53 Pa.C.S. 1134    1959-1369-474       6       71 P.S. 779.6
    23  53 Pa.C.S. 1135    1959-1369-474       7       71 P.S. 779.7
    24  53 Pa.C.S. 1136    1959-1369-474       9       71 P.S. 779.9
    25  53 Pa.C.S. 1137    1959-1369-474       10      71 P.S. 779.10
    26  53 Pa.C.S. 1138    1959-1369-474       11      71 P.S. 779.11
    27  53 Pa.C.S. 1381    1968(1967)-961-428  1       53 P.S. 9001
    28  53 Pa.C.S. 1382    1968(1967)-961-428  2       53 P.S. 9002
    29  53 Pa.C.S. 1383    1968(1967)-961-428  3       53 P.S. 9003
    30  53 Pa.C.S. 1384    1968(1967)-961-428  4       53 P.S. 9004
    31  53 Pa.C.S. 1385    1968(1967)-961-428  5       53 P.S. 9005
    32  53 Pa.C.S. 1386    1968(1967)-961-428  6       53 P.S. 9006
    33  53 Pa.C.S. 1387    1968(1967)-961-428  7       53 P.S. 9007
    34  53 Pa.C.S. 1388    1968(1967)-961-428  8       53 P.S. 9008
    35  53 Pa.C.S. 1389    1968(1967)-961-428  9       53 P.S. 9009
    36  53 Pa.C.S. 2161    1974-359-120        1       53 P.S. 740
    37  53 Pa.C.S. 2162    1974-359-120        2       53 P.S. 741
    38  53 Pa.C.S. 2163    1974-359-120        4       53 P.S. 743
    39  53 Pa.C.S. 2164    1974-359-120        5       53 P.S. 744
    40  53 Pa.C.S. 2165    1974-359-120        7       53 P.S. 746
    41  53 Pa.C.S. 2166    1974-359-120        8       53 P.S. 747
    42  53 Pa.C.S. 2167    1974-359-120        9       53 P.S. 748
    43  53 Pa.C.S. 2168    1974-359-120        9.1     53 P.S. 748.1
    44  53 Pa.C.S. 2169    1974-359-120        9.2     53 P.S. 748.2
    45  53 Pa.C.S. 2170    1974-359-120        10      53 P.S. 749
    46  53 Pa.C.S. 2171    New                 None
    47  53 Pa.C.S. 2301    1972-762-180        1       53 P.S. 481
    48  53 Pa.C.S. 2302    1972-762-180        2       53 P.S. 482
    49  53 Pa.C.S. 2303    1972-762-180        3       53 P.S. 483
    50  53 Pa.C.S. 2304    1972-762-180        4       53 P.S. 484
    51  53 Pa.C.S. 2305    1972-762-180        5       53 P.S. 485
    52  53 Pa.C.S. 2306    1972-762-180        6       53 P.S. 486
    53  53 Pa.C.S. 2307    1972-762-180        7       53 P.S. 487
    54  53 Pa.C.S. 2308    1972-762-180        7.1     53 P.S. 487.1
    55  53 Pa.C.S. 2309    1972-762-180        7.2     53 P.S. 487.2
    56  53 Pa.C.S. 2310    1972-762-180        7.3     53 P.S. 487.3
    57  53 Pa.C.S. 2311    1972-762-180        7.4     None
    58  53 Pa.C.S. 2312    1972-762-180        7.5     None

    19950S0689B2340                 - 273 -

     1  53 Pa.C.S. 2313    1972-762-180        7.6     None
     2  53 Pa.C.S. 2314    1972-762-180        8       53 P.S. 488
     3  53 Pa.C.S. 2315    1972-762-180        9       53 P.S. 489
     4  53 Pa.C.S. 2321    New                 None
     5  53 Pa.C.S. 2322    1973-425-148        1       53 P.S. 11501
     6  53 Pa.c.S. 2323    1973-425-148        2       53 P.S. 11502
     7  53 Pa.C.S. 2324    1973-425-148        3       53 P.S. 11503
     8  53 Pa.C.S. 2325    1973-425-148        4       53 P.S. 11504
     9  53 Pa.C.S. 2326    1973-425-148        5       53 P.S. 11505
    10  53 Pa.C.S. 2327    1973-425-148        6       53 P.S. 11506
    11  53 Pa.C.S. 2328    1973-425-148        7       53 P.S. 11507
    12  53 Pa.C.S. 2329    1973-425-148        8       53 P.S. 11508
    13  53 Pa.C.S. 2341    1955-1845-611       101     53 P.S. 491
    14  53 Pa.C.S. 2342    1955-1845-611       102     53 P.S. 492
    15  53 Pa.C.S. 2343    1955-1845-611       201     53 P.S. 493
    16  53 Pa.C.S. 2344    1955-1845-611       202     53 P.S. 494
    17  53 Pa.C.S. 2345    1955-1845-611       203     53 P.S. 495
    18  53 Pa.C.S. 2346    1955-1845-611       204     53 P.S. 496
    19  53 Pa.C.S. 2347    1955-1845-611       205     53 P.S. 497
    20  53 Pa.C.S. 2348    1955-1845-611       206     53 P.S. 498
    21  53 Pa.C.S. 2501    1972-108-39         101     53 P.S. 11400-101
    22  53 Pa.C.S. 2502    1972-108-39         102     53 P.S. 11400-102
    23  53 Pa.C.S. 2511    1972-108-39         201     53 P.S. 11400-201
    24  53 Pa.C.S. 2512    1972-108-39         202     53 P.S. 11400-202
    25  53 Pa.C.S. 2513    1972-108-39         203     53 P.S. 11400-203
    26  53 Pa.C.S. 2514    1972-108-39         204     53 P.S. 11400-204
    27  53 Pa.C.S. 2515    1972-108-39         205     53 P.S. 11400-205
    28  53 Pa.C.S. 2521    1972-108-39         301     53 P.S. 11400-301
    29  53 Pa.C.S. 2522    1972-108-39         302     53 P.S. 11400-302
    30  53 Pa.C.S. 2523    1972-108-39         303     53 P.S. 11400-303
    31  53 Pa.C.S. 2531    1972-108-39         401     53 P.S. 11400-401
    32  53 Pa.C.S. 2532    1972-108-39         402     53 P.S. 11400-402
    33  53 Pa.C.S. 2533    1972-108-39         403     53 P.S. 11400-403
    34  53 Pa.C.S. 2534    1972-108-39         404     53 P.S. 11400-404
    35  53 Pa.C.S. 2535    1972-108-39         405     53 P.S. 11400-405
    36  53 Pa.C.S. 2536    1972-108-39         406     53 P.S. 11400-406
    37  53 Pa.C.S. 2541    1972-108-39         501     53 P.S. 11400-501
    38  53 Pa.C.S. 2542    1972-108-39         502     53 P.S. 11400-502
    39  53 Pa.C.S. 2543    1972-108-39         503     53 P.S. 11400-503
    40  53 Pa.C.S. 2551    1972-108-39         601     53 P.S. 11400-601
    41  53 Pa.C.S. 2552    1972-108-39         602     53 P.S. 11400-602
    42  53 Pa.C.S. 2553    1972-108-39         603     53 P.S. 11400-603
    43  53 Pa.C.S. 2554    1972-108-39         604     53 P.S. 11400-604
    44  53 Pa.C.S. 2555    1972-108-39         605     53 P.S. 11400-605
    45  53 Pa.C.S. 2901    1972-184-62         101     53 P.S. 1-101
    46  53 Pa.C.S. 2902    1972-184-62         102     53 P.S. 1-102
    47  53 Pa.C.S. 2911    1972-184-62         201     53 P.S. 1-201
    48  53 Pa.C.S. 2912    1972-184-62         202     53 P.S. 1-202
    49  53 Pa.C.S. 2913    1972-184-62         203     53 P.S. 1-203
    50  53 Pa.C.S. 2914    1972-184-62         204     53 P.S. 1-204
    51  53 Pa.C.S. 2915    1972-184-62         204.1   53 P.S. 1-204.1
    52  53 Pa.C.S. 2916    1972-184-62         205     53 P.S. 1-205
    53  53 Pa.C.S. 2917    1972-184-62         206     53 P.S. 1-206
    54  53 Pa.C.S. 2918    1972-184-62         207     53 P.S. 1-207
    55  53 Pa.C.S. 2919    1972-184-62         208     53 P.S. 1-208
    56  53 Pa.C.S. 2920    1972-184-62         209     53 P.S. 1-209
    57  53 Pa.C.S. 2921    1972-184-62         210     53 P.S. 1-210
    58  53 Pa.C.S. 2922    1972-184-62         211     53 P.S. 1-211
    59  53 Pa.C.S. 2923    1972-184-62         212     53 P.S. 1-212

    19950S0689B2340                 - 274 -

     1  53 Pa.C.S. 2924    1972-184-62         213     53 P.S. 1-213
     2  53 Pa.C.S. 2925    1972-184-62         214     53 P.S. 1-214
     3  53 Pa.C.S. 2926    1972-184-62         215     53 P.S. 1-215
     4  53 Pa.C.S. 2927    1972-184-62         216     53 P.S. 1-216
     5  53 Pa.C.S. 2928    1972-184-62         217     53 P.S. 1-217
     6  53 Pa.C.S. 2929    1972-184-62         218     53 P.S. 1-218
     7  53 Pa.C.S. 2930    1972-184-62         219     53 P.S. 1-219
     8  53 Pa.C.S. 2941    1972-184-62         221     53 P.S. 1-221
     9  53 Pa.C.S. 2942    1972-184-62         231     53 P.S. 1-231