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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 1290, 2558, 3337         PRINTER'S NO. 4032

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1142 Session of 1999


        INTRODUCED BY REINARD, PETRONE, J. TAYLOR, MARSICO, PIPPY, LEH,
           STURLA, YOUNGBLOOD, CORRIGAN, RAMOS, ROSS, ARGALL,
           L. I. COHEN, COSTA, BUNT, WRIGHT, FICHTER, READSHAW, FREEMAN,
           McILHINNEY, MANDERINO, THOMAS, STEELMAN, E. Z. TAYLOR,
           WILLIAMS, BROWNE AND WASHINGTON, MARCH 29, 1999

        SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, OCTOBER 3, 2000

                                     AN ACT

     1  Establishing Neighborhood Improvement Districts; conferring       <--
     2     powers and duties on municipal corporations and neighborhood
     3     improvement districts; providing for annual audits; and
     4     making repeals.

     5                         TABLE OF CONTENTS
     6  Section 1.  Short title.
     7  Section 2.  Legislative findings.
     8  Section 3.  Definitions.
     9  Section 4.  Powers of municipal corporation.
    10  Section 5.  Creation of neighborhood improvement district.
    11  Section 6.  Creation of neighborhood improvement district
    12                 management association.
    13  Section 7.  Powers of neighborhood improvement district
    14                 management association.
    15  Section 8.  Dissolution of neighborhood improvement district
    16                 management association and neighborhood


     1                 improvement district.
     2  Section 9.  Annual audit; report.
     3  Section 10.  Applicability.
     4  Section 11.  Effective date.
     5  AMENDING THE ACT OF DECEMBER 21, 1998 (P.L.1307, NO.174),         <--
     6     ENTITLED "AN ACT RELATING TO CITIES OF THE FIRST CLASS,
     7     ESTABLISHING NEIGHBORHOOD IMPROVEMENT DISTRICTS; CONFERRING
     8     POWERS AND DUTIES ON MUNICIPAL CORPORATIONS AND NEIGHBORHOOD
     9     IMPROVEMENT DISTRICTS; AND PROVIDING FOR ANNUAL AUDITS AND
    10     FOR TOURISM AND MARKETING," FURTHER PROVIDING FOR THE
    11     LOCATION OF REAL PROPERTY WITHIN NEIGHBORHOOD IMPROVEMENT
    12     DISTRICTS; EXTENDING PROVISIONS RELATING TO NEIGHBORHOOD
    13     IMPROVEMENT DISTRICTS TO ALL MUNICIPALITIES; AND MAKING
    14     EDITORIAL CHANGES.
    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17  Section 1.  Short title.                                          <--
    18     This act shall be known and may be cited as the Neighborhood
    19  Improvement District Act.
    20  Section 2.  Legislative findings.
    21     The General Assembly finds that:
    22         (1)  Existing tax rates in many municipalities are at or
    23     near their statutory cap.
    24         (2)  The General Fund revenue derived from these taxes
    25     many times is not sufficient to provide adequate municipal
    26     services or additional services needed in specific geographic
    27     areas within the municipality, including, but not limited to,
    28     downtown commercial districts.
    29         (3)  As a result, municipalities should be encouraged to
    30     create, where feasible and desired, assessment-based
    19990H1142B4032                  - 2 -

     1     neighborhood improvement districts which would include, but
     2     not be limited to, downtown commercial districts. Designated
     3     district management associations would initiate and
     4     administer programs to promote and enhance more attractive
     5     and safer commercial, industrial, residential and mixed-use
     6     neighborhoods; economic growth; increased employment
     7     opportunities; and improved commercial, industrial, business
     8     districts and business climates.
     9         (4)  Municipalities should be given the broadest possible
    10     discretion in establishing by local ordinance the type of
    11     assessment-based programs most consistent with neighborhood
    12     needs, goals and objectives, as determined and expressed by
    13     property owners in the designated district.
    14  Section 3.  Definitions.
    15     The following words and phrases when used in this act shall
    16  have the meanings given to them in this section unless the
    17  context clearly indicates otherwise:
    18     "Authority."  A body politic and corporate, created pursuant
    19  to the act of May 2, 1945 (P.L.382, No.164), known as the
    20  Municipality Authorities Act of 1945.
    21     "Benefited property."  Those properties located within a
    22  neighborhood improvement district which profit from district
    23  improvements based on a rational nexus test. Properties need not
    24  profit equally to be considered to have benefited.
    25     "Bonds."  The term shall include the notes, bonds and other
    26  evidence of indebtedness or obligations which each municipal
    27  corporation is authorized to issue under section 4(5).
    28     "Business improvement."  In the case of neighborhood
    29  improvement district management associations created for the
    30  purpose of making improvements or providing administrative
    19990H1142B4032                  - 3 -

     1  services within a neighborhood improvement district, the term
     2  shall mean those improvements needed in specific areas or to
     3  individual properties, including, but not limited to, sidewalks,
     4  retaining walls, street paving, parks, recreational equipment
     5  and facilities, open space, street lighting, parking lots,
     6  parking garages, trees and shrubbery, pedestrian walks, sewers,
     7  water lines, rest areas and the acquisition and rehabilitation
     8  or demolition of blighted buildings or structures.
     9     "Business improvement district."  A business improvement
    10  district (BID) created prior to the effective date of this act
    11  governed by the act of May 2, 1945 (P.L.382, No.164), known as
    12  the Municipality Authorities Act of 1945, insofar as it relates
    13  to business improvement districts or 53 Pa.C.S. Ch. 54 (relating
    14  to business improvement districts). On or after the effective
    15  date of this act, the term shall mean a limited, geographical
    16  area comprised of real property which is used for any for-profit
    17  activity involving trade and traffic, or commerce in general.
    18     "Commercial."  Relating to or associated with any for-profit
    19  activity involving trade and traffic, or commerce in general.
    20     "Construction expenditures."  Property and right-of-way
    21  acquisition costs where applicable.
    22     "Costs of improvements."  The term includes architectural
    23  fees, engineering fees, attorney fees, consulting fees,
    24  professional fees, preliminary planning expenditures,
    25  feasibility study expenditures, financing costs and any other
    26  expenditures necessary and incidental to the development,
    27  construction or completion of the improvement.
    28     "District Advisory Council."  A committee comprised of
    29  property owners from a neighborhood improvement district
    30  established under section 7(a), for the purpose of providing
    19990H1142B4032                  - 4 -

     1  guidance and direction to the neighborhood improvement district
     2  management association concerning association activities within
     3  the district.
     4     "Industrial district."  A limited, geographical area
     5  comprised of real property which is used predominantly for
     6  manufacturing, commercial or any other activity related to the
     7  distribution of goods and services and intermediate and final
     8  products, including, but not limited to, warehousing, shipping,
     9  transportation, remanufacturing, stockpiling of raw materials,
    10  repair and maintenance of machinery and equipment, storage,
    11  administration or business activities, and research and
    12  development.
    13     "Institution."  The term includes, but is not limited to,
    14  colleges, universities, schools, hospitals, museums, theaters,
    15  churches, synagogues, art centers or similar facilities.
    16     "Institutional district."  A limited, geographical area
    17  comprised predominantly of real property on which educational,
    18  health-related or cultural activities occur within buildings and
    19  structures, including, but not limited to, colleges,
    20  universities, schools, hospitals, museums, theaters, churches,
    21  synagogues and art centers.
    22     "Mixed-use district."  A limited, geographical area comprised
    23  of real property used for any or all purposes contained within a
    24  business, residential, industrial or institutional district.
    25     "Municipal corporation."  The body or board authorized by law
    26  to enact ordinances or adopt resolutions for the particular
    27  municipality.
    28     "Municipality."  With the exception of cities of the first
    29  class, any city, borough, incorporated town, township, home
    30  rule, optional plan or optional charter municipality, located
    19990H1142B4032                  - 5 -

     1  within this Commonwealth.
     2     "Neighborhood."  A limited geographic area within a
     3  municipality establishing a neighborhood improvement district,
     4  the limits of which form the neighborhood improvement district
     5  boundary.
     6     "Neighborhood improvement."  Improvements needed in specific
     7  geographic areas or to individual properties within those areas,
     8  including, but not limited to, sidewalks, retaining walls,
     9  street paving, parks, recreational equipment and facilities,
    10  open space, street lighting, parking lots, trees and shrubbery,
    11  sewers, water lines, rest areas and the acquisition and
    12  rehabilitation or demolition of deteriorated buildings or
    13  structures.
    14     "Neighborhood improvement district."  A limited geographic
    15  area within a municipality, in which a special assessment is
    16  levied on all designated property, other than tax-exempt
    17  property, for the purpose of promoting the economic and general
    18  welfare of the district and the municipality, hereinafter
    19  referred to as NID. Such districts shall be referred to
    20  generally as neighborhood improvement district (NID) and
    21  specifically as: business improvement district (BID);
    22  residential improvement district (RID); industrial improvement
    23  district (IID); institutional improvement district (INID); or
    24  mixed-use improvement district (MID) depending on the type
    25  district established. A designated property may not be included
    26  in more than one neighborhood improvement district.
    27     "Neighborhood improvement district management association."
    28  The governing body which oversees the management of neighborhood
    29  improvement districts in a municipality as established under
    30  section 5 which hereinafter shall be referred to as the NIDMA.
    19990H1142B4032                  - 6 -

     1  Such body shall be incorporated as a nonprofit corporation in
     2  this Commonwealth or an authority as established pursuant to the
     3  act of May 2, 1945 (P.L.382, No.164), known as the Municipality
     4  Authorities Act of 1945.
     5     "Neighborhood improvement district plan."  The strategic plan
     6  for neighborhood improvements required by section 5, hereinafter
     7  referred to as NIDP, and all projects, programs and supplemental
     8  services to be provided within the district to implement the
     9  plan by the neighborhood improvement district management
    10  association.
    11     "Neighborhood improvement district services."  In the case of
    12  neighborhood improvement district management associations
    13  created for the purpose of making improvements or providing
    14  expanded services within any neighborhood business improvement
    15  districts established, the term shall include, but not be
    16  limited to, those services which improve the ability of the
    17  commercial establishments within the district to serve the
    18  consumer, such as free or reduced-fee parking for customers,
    19  transportation-related expenses, public relations programs,
    20  group advertising, and district maintenance and security
    21  services. For services provided within any residential,
    22  industrial, institutional, or mixed-use neighborhood improvement
    23  district, the term shall include, but not be limited to, those
    24  services which improve the ability of property owners to enjoy a
    25  safer and more attractive neighborhood through the provision of
    26  increased or expanded services, including street lighting,
    27  street cleaning, street maintenance, parks, recreational
    28  equipment and facilities, open space and/or security services.
    29     "Nonprofit corporation."  A legal entity that is incorporated
    30  within this Commonwealth and specifies in its charter or bylaws
    19990H1142B4032                  - 7 -

     1  that no part of the net earnings may benefit any private
     2  shareholder or individual holding interest in such entity.
     3     "Private security officer."  Any person or firm employed by
     4  the neighborhood improvement district management association for
     5  the purpose of providing increased security or protective patrol
     6  services within the neighborhood improvement district. The term
     7  may include off-duty police officers provided that the use of
     8  such officers for this purpose is approved by the governing body
     9  of the municipality in which the neighborhood improvement
    10  district is located or the municipality where the officer is
    11  employed if different.
    12     "Project."  The acquisition, development, construction,
    13  improvement, rehabilitation, operation and/or maintenance of any
    14  building, facility, equipment or structure, by purchase, lease
    15  or contract, by a neighborhood improvement district management
    16  association to facilitate neighborhood and business improvements
    17  as authorized by this act.
    18     "Rational nexus."  The legal principle which requires that
    19  there is a rational, definable benefit which accrues to any
    20  property owner assessed a fee for said benefit in a neighborhood
    21  improvement district created under this act. All property owners
    22  within a designated neighborhood improvement district paying a
    23  special assessment fee must benefit directly or indirectly from
    24  facilities or services provided by a neighborhood improvement
    25  district management association within the neighborhood
    26  improvement district, provided, however, that property owners
    27  need not benefit equally.
    28     "Residential district."  A limited, geographical area
    29  comprised of real property consisting predominantly of buildings
    30  and structures for housing individuals and families, including,
    19990H1142B4032                  - 8 -

     1  but not limited to, single family detached homes, single family
     2  semi-detached homes, townhouses, condominiums, apartments,
     3  manufactured homes, modular homes or any combination of same.
     4     "Service area."  The area within the boundaries of the
     5  neighborhood improvement district established by a municipality
     6  under this act, in which the neighborhood improvement district
     7  management association provides programs, services and
     8  improvements. The term may also include an area outside of the
     9  neighborhood improvement district where services are being
    10  provided by the neighborhood improvement district management
    11  association under contract.
    12     "Special assessment fee."  The fee assessed on property
    13  owners within a neighborhood improvement district, levied by the
    14  municipality establishing a neighborhood improvement district,
    15  under section 4(8), for the purposes of providing programs,
    16  improvements and services, under section 7.
    17     "Sunset provision."  The term means a provision in the
    18  neighborhood improvement district plan, under section 5(c),
    19  establishing a neighborhood improvement district, which provides
    20  for the automatic termination of the neighborhood improvement
    21  district on a date specified in the neighborhood improvement
    22  district plan and in the municipal ordinance establishing the
    23  neighborhood improvement district. The neighborhood improvement
    24  district may be continued beyond that date, provided the
    25  municipal enabling ordinance creating the original neighborhood
    26  improvement district is reenacted, following a review of the
    27  neighborhood improvement district and the neighborhood
    28  improvement district management association programs and
    29  services provided within the neighborhood improvement district,
    30  by the municipality.
    19990H1142B4032                  - 9 -

     1  Section 4.  Powers of municipal corporation.
     2     Every municipal corporation shall have the power:
     3         (1)  To establish within the municipality an area or
     4     areas designated as an NID.
     5         (2)  To establish an authority to administer the NID or
     6     to designate an existing community development corporation or
     7     other existing nonprofit corporation to administer same or to
     8     create a community development corporation or other nonprofit
     9     corporation to administer same, under sections 6 and 7.
    10         (3)  To appropriate and expend, in accordance with the
    11     specific provisions of the municipal enabling ordinance,
    12     municipal funds as may be required to:
    13             (i)  Acquire by purchase or lease real or personal
    14         property deemed necessary to effectuate the purposes of
    15         the NID.
    16             (ii)  Prepare or have prepared preliminary planning
    17         or feasibility studies to determine needed improvements
    18         in an NID, including, but not limited to, capital
    19         improvements, traditional streetscape and building
    20         renovations, retaining walls, street paving, street
    21         lighting, parking lots, parking garages, trees and
    22         shrubbery, pedestrian walks, sewers, water lines, rest
    23         areas, acquisition, rehabilitation or demolition of
    24         blighted buildings and structures, graffiti removal,
    25         security, marketing, promotions, advertising, business
    26         retention and recruitment activities, master leasing and
    27         property management, joint advertising, research and
    28         planning, as well as the provision of additional services
    29         to supplement, not replace, existing municipal services
    30         provided within the NID.
    19990H1142B4032                 - 10 -

     1         (4)  To advance funds to a NIDMA as may be required to
     2     carry out the purposes of this act.
     3         (5)  To collect special property assessments on behalf of
     4     the NIDMA levied on designated property owners within the
     5     NID, and to employ any legal methods to insure collection of
     6     the assessments.
     7         (6)  To acquire by gift, purchase or eminent domain,
     8     land, real property, or rights-of way, which may be needed
     9     for the purposes of making physical improvements within the
    10     NID.
    11         (7)  To issue bonds, notes or guarantees, in accordance
    12     with the provisions of general laws in the amounts and for
    13     the periods necessary, to finance needed improvements within
    14     any NID.
    15         (8)  To review all proposed expenditures of funds within
    16     NIDs by NIDMAs and suggest changes to same where a nonprofit
    17     corporation is the NIDMA.
    18         (9)  To include a sunset provision of no less than five
    19     years in the municipal enabling ordinance creating the NID
    20     and in the contract with the NIDMA.
    21         (10)  To levy an assessment fee on property owners
    22     located within an NID needed to finance additional
    23     supplemental programs, services and improvements to be
    24     provided or made by the NIDMA.
    25  Section 5.  Creation of neighborhood improvement district.
    26     (a)  Establishment.--
    27         (1)  The governing body of the municipality, or any
    28     municipal businesses, or residents, or combination thereof,
    29     may initiate action to establish an NID or NIDs within the
    30     municipality, under this act.
    19990H1142B4032                 - 11 -

     1         (2)  In the case of businesses, or residents, or both
     2     desiring to establish an NID, where the municipality has not
     3     taken action to do so, the governing body of the municipality
     4     may be petitioned to establish an NID, under the procedures
     5     provided for by this act.
     6         (3)  In no case, where the governing body of a
     7     municipality is petitioned to establish an NID under
     8     paragraph (2), shall the municipality be required to
     9     establish an NID.
    10     (b)  Specific procedures.--
    11         (1)  A copy of everything required under this section, as
    12     well as the date, location and time of any public hearing
    13     required by this act, shall be provided by the municipal
    14     corporation to all property owners and lessees of property
    15     owners located in the proposed NID, at least 30 days prior to
    16     the first public hearing required by this section.
    17         (2)  At least one public hearing, no earlier than 15 days
    18     apart, for the purpose of receiving public comment from
    19     affected property owners within the proposed NID, on the
    20     proposed NIDP, shall be held by the municipality before the
    21     establishment of an NID. Notice of the hearing shall be
    22     advertised at least ten days prior thereto in a newspaper of
    23     general circulation in the municipality.
    24         (3)  Any objections by property owners within the
    25     proposed NID must be made in writing, by persons representing
    26     the ownership of 51% 40%, in numbers, of the benefited
    27     properties within the NID., or by property owners within the
    28     proposed NID whose property valuation, as assessed for
    29     taxable purposes, shall amount to 51% of the total property
    30     valuation within the NID. Objections must be signed by the
    19990H1142B4032                 - 12 -

     1     property owner and filed in the office of the clerk for the
     2     governing body of the municipality in which the NID is
     3     proposed.
     4     (c)  Contents of preliminary plan.--The plan shall include
     5  the following:
     6         (1)  A map indicating the boundaries by street of the
     7     proposed NID, however, a designated property may not be
     8     included in more than one NID.
     9         (2)  A written report from the municipality containing:
    10             (i)  The name of the proposed district.
    11             (ii)  A detailed description of the service areas of
    12         the proposed district.
    13             (iii)  A list of all properties to be assessed.
    14             (iv)  A list of proposed improvements within the NID,
    15         and their estimated cost.
    16             (v)  A proposed budget for the first fiscal year,
    17         including, but not limited to, the following: personnel
    18         and administration, programs and services, maintenance
    19         and operation, and capital expenditures.
    20             (vi)  The proposed revenue sources for financing all
    21         proposed improvements, programs and services.
    22             (vii)  The estimated time for implementation and
    23         completion of all proposed improvements, programs and
    24         services.
    25             (viii)  A statement identifying the administrative
    26         body which will govern and administer the NID.
    27             (ix)  Any other information, including the statutory
    28         authority, or, in the case of a nonprofit corporation,
    29         the bylaws, which describe the powers and duties of and
    30         the method for making decisions by the NIDMA.
    19990H1142B4032                 - 13 -

     1             (x)  The method of determining the amount of the
     2         assessment fee to be levied on property owners within the
     3         NID under section 7.
     4         (3)  In addition, the plan shall also:
     5             (i)  Identify in detail the specific duties and
     6         responsibilities of both the NIDMA and the municipal
     7         corporation with respect to the NID.
     8             (ii)  Require that a written agreement be signed by
     9         the municipal corporation and the NIDMA describing in
    10         detail their respective duties and responsibilities.
    11             (iii)  Allow for and encourage tax-exempt property
    12         owners located within the NID to provide in-kind services
    13         or a financial contribution to the NIDMA, if not
    14         assessed, in lieu of a property assessment fee.
    15             (iv)  Require in the agreement between the municipal
    16         corporation and the NIDMA that the municipality must
    17         maintain the same level of municipal programs and
    18         services provided within the NID before NID designation
    19         as after NID designation.
    20             (v)  Allow the municipal corporation the right to
    21         include in the agreement with the NIDMA and in the
    22         enabling ordinance establishing the NID a sunset
    23         provision of no less than five years for renewal of the
    24         agreement.
    25             (vi)  Require in the agreement with the NIDMA that
    26         the municipality establishing an NID shall be responsible
    27         for the collection of all property assessment fees levied
    28         within the NID, if so desired by the NIDMA.
    29             (vii)  Provide that a negative vote of at least 51%
    30         40% of the property owners within the NID, or property
    19990H1142B4032                 - 14 -

     1         owners within the NID whose property valuation as
     2         assessed for taxable purposes amounts to 51% of the total
     3         property valuation located within the NID proposed in the
     4         final plan, shall be required to defeat the establishment
     5         of the proposed NID by filing objections with the clerk
     6         for the governing body of the municipality within 45 days
     7         of presentation of the final plan, where the governing
     8         body of municipality is inclined to establish the NID.
     9     (d)  Final plan.--Prior to the establishment of an NID, the
    10  municipality shall submit a revised final plan to property
    11  owners located within the proposed NID, which incorporates
    12  changes made to the plan, based on comments from affected
    13  property owners within the NID, provided at the public hearings
    14  or at some other time. Changes to the final plan, which differ
    15  from the preliminary plan, shall also be so indicated in an
    16  easily discernible method for the reader, including, but not
    17  limited to, changes being in boldfaced or italicized type.
    18     (e)  Public hearing.--At least one public hearing for the
    19  purpose of receiving public comment on any revisions to the
    20  preliminary plan made following suggestions by affected property
    21  owners within the proposed NID and reflected in the final NIDP
    22  shall be held by the municipal corporation before enacting an
    23  ordinance establishing an NID. Notice of the hearing shall be
    24  advertised at least ten days prior thereto in a newspaper of
    25  general circulation in the municipality.
    26     (f)  Veto of final plan for NID.--
    27         (1)  Following the last public hearing required under
    28     subsection (e) or under subsection (g), if an amendment to
    29     the final plan, affected property owners located within a
    30     proposed NID shall have 45 days from the date of the hearing
    19990H1142B4032                 - 15 -

     1     to object to and disapprove the final plan or any amendment
     2     to the final plan under the requirements of subsection
     3     (b)(3).
     4         (2)  If 51% 40% or more of the affected property owners
     5     or property owners whose property valuation as assessed for
     6     taxable purposes amounts to 51% of the total property
     7     valuation within the proposed NID fail to register their
     8     disapproval of the final plan or amendment to the final plan
     9     in writing with the clerk of the governing body of the
    10     municipality in which the NID is proposed, the governing body
    11     of the municipality may, following the 45-day period, enact a
    12     municipal ordinance establishing an NID under this act, or in
    13     the case of an amendment to the final plan, adopt any
    14     amendments to the ordinance.
    15     (g)  Amendments to final plan.--
    16         (1)  The final plan may be amended by the NIDMA any time
    17     after the establishment of an NID, pursuant to the provisions
    18     of this act, upon the recommendation of the NIDMA board,
    19     provided there is concurrence with the owners of at least 51%
    20     of the assessed valuation of all property within the NID or
    21     51% 60% of the property owners within the NID.
    22         (2)  Amendments to the final plan which also require the
    23     approval of the governing body of the municipality
    24     establishing the NID, include:
    25             (i)  Substantially changed or added programs,
    26         improvements and/or services to be provided in the NID.
    27             (ii)  Increased expenditures affecting more than 25%
    28         of the total NIDMA budget for the fiscal year.
    29             (iii)  Incurring increased indebtedness.
    30             (iv)  Changing the assessment fee structure levied on
    19990H1142B4032                 - 16 -

     1         property owners in the NID.
     2             (v)  Changing the legal entity (NIDMA) which provides
     3         programs, improvements and services within the NID.
     4             (vi)  Changing the NID service area boundary.
     5     Prior to the governing body of the municipality approving any
     6     of the changes in this paragraph, the governing body shall
     7     hold at least one public hearing to determine that such
     8     changes are in the public interest as it relates to affected
     9     property owners within the NID.
    10         (3)  The municipality shall provide public notice of the
    11     hearing for any amendments, by publication of a notice, in at
    12     least one newspaper having a general circulation in the NID,
    13     specifying the time and the place of such hearing and the
    14     amendments to be considered. This notice shall be published
    15     once at least 10 days prior to the date of the hearing.
    16         (4)  The governing body of the municipality may, within
    17     30 days following the public hearing and at its sole
    18     discretion, approve or disapprove of any amendments to the
    19     plan. If approved, such amendments shall be effective upon
    20     the date of such approval.
    21         (5)  Prior to the adoption of any amendment to the NID
    22     boundary which increases the size of the NID, any owner of
    23     property to be added to the NID shall be notified of the
    24     date, time and location of the public hearing on the proposed
    25     amendment to the final plan, and provided all information
    26     required by subsection (c).
    27  Section 6.  Creation of neighborhood improvement district
    28                 management association.
    29     (a)  Association designated.--When a municipality establishes
    30  an NID under this act, a neighborhood improvement district
    19990H1142B4032                 - 17 -

     1  management association shall be designated by the governing body
     2  of the municipality in which the NID is to be located to
     3  administer programs, improvements and services within the NID.
     4     (b)  Administration.--
     5         (1)  NIDs created pursuant to this act shall be
     6     administered by an NIDMA which shall be an authority created
     7     pursuant to the act of May 2, 1945 (P.L.382, No.164), known
     8     as the Municipality Authorities Act of 1945, an existing
     9     nonprofit development corporation, an existing nonprofit
    10     corporation or a nonprofit development corporation or
    11     nonprofit corporation established by the governing body or
    12     authorized to be established by the governing body of the
    13     municipality in which the NID is to be located, to administer
    14     the NIDP.
    15         (2)  If an active nonprofit development corporation
    16     already exists within the geographic boundaries of the NID
    17     and formally indicates its interest to the governing body of
    18     the municipality to become the designated NIDMA, the
    19     governing body of the municipality shall grant that request
    20     unless 51% 40% or more of the affected property owners or
    21     property owners whose property valuation as assessed for
    22     taxable purposes amounts to 51% of the total property
    23     valuation within the proposed NID register their disapproval
    24     of this designation in writing with the clerk of the
    25     governing body within a 45-day period following the formal
    26     written request for designation by the nonprofit development
    27     corporation to become the NIDMA.
    28     (c)  Powers.--An NIDMA created under this act shall assume
    29  all powers provided for in section 7 immediately upon the
    30  effective date of the municipal ordinance enacted under section
    19990H1142B4032                 - 18 -

     1  4 creating an NID.
     2     (d)  Board.--Every NIDMA shall have an administrative board.
     3         (1)  Where an authority created pursuant to the
     4     Municipality Authorities Act of 1945 serves as the NIDMA, the
     5     board shall be appointed pursuant to the Municipality
     6     Authorities Act of 1945.
     7         (2)  Where an existing nonprofit development corporation
     8     or other nonprofit corporation is to serve as the NIDMA, the
     9     board shall be appointed according to the bylaws of the NIDMA
    10     filed with the Department of State.
    11         (3)  Where a nonprofit development corporation or other
    12     nonprofit corporation is established to serve as the NIDMA
    13     for an NID, the board shall be comprised of an odd number of
    14     members, between five and nine, with at least one member
    15     representing the municipal corporation in which the NID is
    16     located.
    17         (4)  In all cases, NIDMA boards shall include a
    18     representative of property owners located in the NID,
    19     business owners located in the NID and any institutions
    20     located in the NID. Institutional members may appoint a
    21     designee to represent them. All board members need not be
    22     residents of the NID.
    23  Section 7.  Powers of neighborhood improvement district
    24                 management association.
    25     (a)  General powers.--A NIDMA shall have, in addition to any
    26  other powers provided pursuant to the act of May 2, 1945
    27  (P.L.382, No.164), known as the Municipality Authorities Act of
    28  1945, where the NIDMA is an authority, or in addition to any
    29  other powers provided pursuant to the charter establishing a
    30  nonprofit development corporation or other nonprofit
    19990H1142B4032                 - 19 -

     1  corporation, where the NIDMA is a nonprofit development
     2  corporation or other nonprofit corporation, the power to:
     3         (1)  Sue or be sued, implead or be impleaded, complain
     4     and defend in all courts.
     5         (2)  Employ an executive director or administrator and
     6     any necessary supporting staff or contract for the provision
     7     of same.
     8         (3)  Prepare planning or feasibility studies or contract
     9     for the preparation of same, to determine needed capital
    10     improvements or administrative programs and services within
    11     the NID.
    12         (4)  Make capital improvements or provide administrative
    13     programs and services within an NID.
    14         (5)  Purchase, own, construct, renovate, develop,
    15     operate, rehabilitate, manage, sell and/or dispose of real
    16     property.
    17         (6)  Contract with existing businesses within the NID.
    18         (7)  Contract for the provision of products or services
    19     by the NIDMA to clients located inside and outside of the
    20     NID, including billing and collection of assessment fees by
    21     another NIDMA.
    22         (8)  Appropriate and expend NID funds which would include
    23     any Federal, State or municipal funds received by the NIDMA.
    24     The funds shall be expended in accordance with any specific
    25     provisions contained in the municipal enabling ordinance
    26     establishing the NID and may be used:
    27             (i)  To acquire by purchase or lease real or personal
    28         property to effectuate the purposes of this act,
    29         including making common improvements within the NID,
    30         including, but not limited to, sidewalks, retaining
    19990H1142B4032                 - 20 -

     1         walls, street paving, parks, recreational equipment and
     2         facilities, open space, street lighting, parking lots,
     3         parking garages, trees and shrubbery, pedestrian walks,
     4         sewers, water lines, rest areas and the acquisition,
     5         rehabilitation or demolition of blighted buildings or
     6         comparable structures.
     7             (ii)  To provide free or reduced-fee parking for
     8         customers of businesses within the NID; transportation-
     9         related expenditures, public relations programs, group
    10         advertising and NID maintenance and security services.
    11             (iii)  To impose special assessment fees.
    12         (9)  Solicit in-kind services or financial contributions
    13     from tax-exempt property owners within the NID in lieu of
    14     property assessment fees. This may include entering into
    15     voluntary multiyear agreements (VMAs) between the NIDMA and
    16     tax-exempt property owners located within an NID, for the
    17     provision of same.
    18         (10)  Impose liens on property for the nonpayment of
    19     property assessments. NIDs administered by nonprofit
    20     corporations would have any such liens filed by the municipal
    21     corporation.
    22         (11)  Hire additional off-duty police officers or private
    23     security officers, whose patrol area responsibilities would
    24     be limited to the geographical area incorporated within the
    25     designated NID service area and whose responsibility would be
    26     to support existing municipal and volunteer efforts aimed at
    27     reducing crime and improving security in the NID.
    28         (12)  Designate a district advisory committee, referred
    29     to as the DAC, for each NID established within the
    30     municipality. Each DAC shall consist of an odd number of
    19990H1142B4032                 - 21 -

     1     members, between five and nine, who shall be representative
     2     of the neighborhood's character, including, but not limited
     3     to, age, sex and cultural diversity.
     4     (b)  Assessments.--
     5         (1)  The NIDMA shall, upon approval by the governing body
     6     of the municipality, have the power to assess property owners
     7     within the NID a special property assessment fee. Revenues
     8     from the fee shall be accounted for and used by the NIDMA to
     9     make improvements and provide programs and services within
    10     the NID as authorized by this act. Where the district
    11     established is a BID, the NIDMA shall have the authority to
    12     exempt residential property owners from any special
    13     assessment fees levied.
    14         (2)  All assessments authorized under this section shall
    15     be calculated using January 1 as the first day of the fiscal
    16     year.
    17         (3)  All special property assessment fees shall be based
    18     upon the estimated cost of the programs, improvements or
    19     services to be provided in such NID as stated in the final
    20     plan under section 5(d). In no case shall the aggregate
    21     amount of all fees levied by the NIDMA during the year exceed
    22     the estimated cost of proposed programs, improvements and
    23     services for the year.
    24         (4)  In the case of an NID which contains a combination
    25     of business, residential, industrial and/or institutional
    26     areas and uses, a weighted assessment may be instituted. In
    27     such case, the fee levied on property owners generally may be
    28     weighted higher for business, industrial or institutional
    29     properties than that levied on residential property owners,
    30     provided the basis for the calculation of the fee meets the
    19990H1142B4032                 - 22 -

     1     rational nexus test.
     2         (5)  The total costs of improvements, programs and
     3     administrative services provided by the NIDMA shall be
     4     assessed to all designated properties within the NID by one
     5     of the following methods:
     6             (i)  An assessment determined by multiplying the
     7         total service and improvement costs by the ratio of the
     8         assessed value of the benefited property to the total
     9         assessed valuation of all designated benefited properties
    10         in the NID.
    11             (ii)  An assessment upon the several properties in
    12         the NID in proportion to benefits as ascertained by
    13         viewers appointed in accordance with law.
    14             (iii)  Any method that equitably apportions costs
    15         among benefiting properties.
    16             (iv)  In the case of improvements benefiting
    17         properties abutting the NID by the front-foot method,
    18         with equitable adjustments for corner properties and
    19         other cases provided for in the municipal ordinance. Any
    20         property which cannot be equitably assessed by the front-
    21         foot method may be assessed by any of the above methods.
    22     (c)  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 municipal ordinance. If bonds have been issued
    26  and sold, or notes or guarantees have been given or issued, to
    27  provide for the cost of the services and improvements, the
    28  assessment in equal installments shall not be payable beyond the
    29  term for which the bonds, notes or guarantees are payable.
    30     (d)  Liens.--
    19990H1142B4032                 - 23 -

     1         (1)  Notwithstanding the filing of the claims, all
     2     assessments which are made payable in installments shall
     3     constitute liens and encumbrances upon the respective
     4     benefited properties at the beginning of each calendar year,
     5     except as provided in subsection (c), and only in an amount
     6     equal to the sum of:
     7             (i)  the annual or other installments becoming
     8         payable in such year, with interest and penalties, if
     9         any, thereon; and
    10             (ii)  the total of all installments, with interest
    11         and penalties thereon, which became due during prior
    12         years and which remain due and unpaid at the beginning of
    13         the current year.
    14         (2)  In the case of default in the payment of any
    15     installment and interest for a period of 90 days after the
    16     payment becomes due, the assessment ordinance may provide
    17     either for the entire assessment, with accrued interest and
    18     penalties to become due and become a lien from the due date
    19     of the installment, or may provide solely for the enforcement
    20     of the claim as to the overdue installment, with interest and
    21     penalties, in which case the ordinance shall further provide
    22     that, if any installment or portion thereof remains due and
    23     unpaid for one year after it has become due and payable, then
    24     the entire assessment with accrued interest and penalties
    25     shall become due and become a lien from the due date of the
    26     installment.
    27         (3)  No action taken to enforce a claim for any
    28     installment or installments shall affect the status of any
    29     subsequent installment of the same assessment, each of which
    30     shall continue to become a lien upon the property annually
    19990H1142B4032                 - 24 -

     1     pursuant to paragraph (1).
     2         (4)  The ordinance may contain any other provision
     3     relating to installment assessments which is not inconsistent
     4     with applicable law.
     5         (5)  Any owner of property against whom an assessment has
     6     been made may pay the assessment in full at any time, with
     7     accrued interest and costs thereon, and such a payment shall
     8     discharge the lien of the assessment, or installments then
     9     constituting a lien, and shall also release the claim to any
    10     later installments.
    11         (6)  Claims to secure the assessments shall be entered in
    12     the prothonotary's office of the county at the same time, and
    13     in the same form, and collected in the same manner, as
    14     municipal tax claims are filed and collected, notwithstanding
    15     the provisions of this section as to installment payments.
    16  Section 8.  Dissolution of neighborhood improvement district
    17                 management association and neighborhood
    18                 improvement district.
    19     (a)  Conveying projects.--When any NIDMA shall have finally
    20  paid and discharged all bonds which, together with the interest
    21  due thereon, shall have been secured by a pledge of any of the
    22  revenues or receipts of a project, it may, subject to any
    23  agreements concerning the operation or disposition of such
    24  project and the NIDMA bylaws, convey such project or projects to
    25  the municipal corporation which established or had established
    26  the NIDMA.
    27     (b)  Request for termination.--Any request for the
    28  termination of the NID and NIDMA approved by 51% 40% of the
    29  assessed property owners, in numbers, located in the NID, shall
    30  be submitted to the governing body of the municipality in
    19990H1142B4032                 - 25 -

     1  writing. The governing body shall hold a hearing on the merits
     2  of same, pursuant to section 5(b)(2) as it relates to the
     3  required procedure of holding a hearing. Such written request
     4  shall be considered by the governing body of the municipality.
     5  If the request is approved by the governing body of the
     6  municipality, then a resolution to that effect shall be filed
     7  with the Secretary of the Commonwealth, and the secretary shall
     8  note the termination of the existence on the record of
     9  incorporation and return the resolution with his or her approval
    10  shown on the resolution to the municipal corporation. Then, the
    11  property of the NIDMA shall pass to the municipal corporation,
    12  as the case may be, and the NIDMA and NID shall cease to exist.
    13  Any request for the termination of the NID and NIDMA by the
    14  governing body of the municipality in which the NID is located
    15  shall result in a hearing on the merits of same, pursuant to
    16  section 5(b)(2) as it relates to the required procedure for
    17  holding a hearing. Before the decision to terminate an NID and
    18  NIDMA is made, such termination must be approved by 51% 40% of
    19  the assessed property owners, in numbers, located in the NID,
    20  and shall be submitted to the governing body of the municipality
    21  in writing. Such written request shall be considered by the
    22  governing body of the municipality. If the request is approved
    23  by the governing body of the municipality, then a resolution to
    24  that effect shall be filed with the Secretary of the
    25  Commonwealth, and the secretary shall note the termination of
    26  the existence on the record of incorporation and return the
    27  resolution with his or her approval shown to the municipal
    28  corporation. The property of the NIDMA shall pass to the
    29  municipal corporation, as the case may be, and the NIDMA and NID
    30  shall cease to exist.
    19990H1142B4032                 - 26 -

     1  Section 9.  Annual audit; report.
     2     The NIDMA shall annually:
     3         (1)  submit an audit of all income and expenditures to
     4     the Department of Community and Economic Development and the
     5     governing body of the municipality in which the NID is
     6     located within 120 days after the end of each fiscal year;
     7     and
     8         (2)  submit a report, including financial and
     9     programmatic information, including a summary of audit
    10     findings, to the governing body of the municipality in which
    11     the NID is located and to all assessed property owners
    12     located in the NID.
    13  Section 10.  Applicability.
    14     (a)  Existing districts.--Except as provided for in
    15  subsection (d), any existing business improvement district or
    16  downtown improvement district established prior to the effective
    17  date of this act shall remain in existence and shall be governed
    18  by the Municipality Authorities Act of 1945, insofar as it
    19  relates to business improvement districts or 53 Pa.C.S. Ch. 54
    20  (relating to business improvement districts).
    21     (b)  Districts created subsequently.--Any NID established
    22  subsequent to the effective date of this act shall be governed
    23  by the provisions of this act.
    24     (c)  Previously terminated districts.--Any business
    25  improvement district or downtown improvement district in
    26  existence prior to the effective date of this act which is
    27  terminated shall, upon its reestablishment, be governed by the
    28  provisions of this act. This shall include any termination
    29  resulting from a sunset provision in any municipal agreement or
    30  ordinance.
    19990H1142B4032                 - 27 -

     1     (d)  Additional requirements.--Any business improvement
     2  district or downtown improvement district in existence on the
     3  effective date of this act shall:
     4         (1)  be required to carry out any duty or responsibility
     5     imposed on NIDs under this act; and
     6         (2)  possess any additional power given to NIDs under
     7     this act without having to restructure or reorganize under
     8     this act.
     9  Section 11.  Effective date.
    10     This act shall take effect in 60 days.
    11     SECTION 1.  THE TITLE OF THE ACT OF DECEMBER 21, 1998          <--
    12  (P.L.1307, NO.174), KNOWN AS THE COMMUNITY AND ECONOMIC
    13  IMPROVEMENT ACT, IS AMENDED TO READ:
    14                               AN ACT
    15  [RELATING TO CITIES OF THE FIRST CLASS, ESTABLISHING]
    16     ESTABLISHING NEIGHBORHOOD IMPROVEMENT DISTRICTS; CONFERRING
    17     POWERS AND DUTIES ON MUNICIPAL CORPORATIONS AND NEIGHBORHOOD
    18     IMPROVEMENT DISTRICTS; AND PROVIDING FOR ANNUAL AUDITS AND
    19     FOR TOURISM AND MARKETING.
    20     SECTION 2.  THE ACT IS AMENDED BY ADDING A CHAPTER TO READ:
    21                             CHAPTER 1
    22                       PRELIMINARY PROVISIONS
    23  SECTION 101.  SHORT TITLE.
    24     THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE COMMUNITY AND
    25  ECONOMIC IMPROVEMENT ACT.
    26     SECTION 3.  SECTION 1 OF THE ACT IS AMENDED TO READ:
    27  [SECTION 1.  SHORT TITLE.
    28     THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE COMMUNITY AND
    29  ECONOMIC IMPROVEMENT ACT.]
    30                             CHAPTER 3
    19990H1142B4032                 - 28 -

     1                     CITIES OF THE FIRST CLASS
     2  SECTION 301.  SCOPE.
     3     THE PROVISIONS OF THIS CHAPTER SHALL ONLY APPLY TO CITIES OF
     4  THE FIRST CLASS.
     5     SECTION 4.  SECTION 2 HEADING OF THE ACT IS RENUMBERED TO
     6  READ:
     7  SECTION [2] 302.  LEGISLATIVE FINDINGS.
     8     * * *
     9     SECTION 5.  SECTIONS 3, 4 HEADING, (2) AND (4), 5 HEADING,
    10  (A), (B)(1), (C)(2)(X), (F)(2) AND (G)(1), 6 HEADING, (A), (B)
    11  (1) AND (C), 7 HEADING, (B)(1) AND (3) AND 8 HEADING AND (B) OF
    12  THE ACT ARE AMENDED TO READ:
    13  SECTION [3] 303.  DEFINITIONS.
    14     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS [ACT]
    15  CHAPTER SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION
    16  UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
    17     "AUTHORITY."  A BODY POLITIC AND CORPORATE, CREATED PURSUANT
    18  TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE
    19  MUNICIPALITY AUTHORITIES ACT OF 1945.
    20     "BENEFITED PROPERTY."  THOSE PROPERTIES LOCATED WITHIN A
    21  NEIGHBORHOOD IMPROVEMENT DISTRICT WHICH PROFIT FROM DISTRICT
    22  IMPROVEMENTS BASED ON A RATIONAL NEXUS TEST. PROPERTIES NEED NOT
    23  PROFIT EQUALLY TO BE CONSIDERED TO HAVE BENEFITED.
    24     "BONDS."  THE TERM SHALL INCLUDE THE NOTES, BONDS AND OTHER
    25  EVIDENCE OF INDEBTEDNESS OR OBLIGATIONS WHICH EACH MUNICIPAL
    26  CORPORATION IS AUTHORIZED TO ISSUE UNDER SECTION [4(7)] 307(7).
    27     "BUSINESS IMPROVEMENT."  IN THE CASE OF NEIGHBORHOOD
    28  IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATIONS CREATED FOR THE
    29  PURPOSE OF MAKING IMPROVEMENTS OR PROVIDING ADMINISTRATIVE
    30  SERVICES WITHIN A NEIGHBORHOOD IMPROVEMENT DISTRICT, THE TERM
    19990H1142B4032                 - 29 -

     1  SHALL MEAN THOSE IMPROVEMENTS NEEDED IN SPECIFIC AREAS OR TO
     2  INDIVIDUAL PROPERTIES, INCLUDING, BUT NOT LIMITED TO, SIDEWALKS,
     3  RETAINING WALLS, STREET PAVING, PARKS, RECREATIONAL EQUIPMENT
     4  AND FACILITIES, OPEN SPACE, STREET LIGHTING, PARKING LOTS,
     5  PARKING GARAGES, TREES AND SHRUBBERY, PEDESTRIAN WALKS, SEWERS,
     6  WATER LINES, REST AREAS AND THE ACQUISITION AND REHABILITATION
     7  OR DEMOLITION OF BLIGHTED BUILDINGS OR STRUCTURES.
     8     "BUSINESS IMPROVEMENT DISTRICT."  A BUSINESS IMPROVEMENT
     9  DISTRICT (BID), CREATED PRIOR TO [THE EFFECTIVE DATE OF THIS
    10  ACT] FEBRUARY 19, 1999, GOVERNED BY THE ACT OF MAY 2, 1945
    11  (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF
    12  1945, INSOFAR AS IT RELATES TO BUSINESS IMPROVEMENT DISTRICTS OR
    13  53 PA.C.S. CH. 54 (RELATING TO BUSINESS IMPROVEMENT DISTRICTS).
    14  [ON OR AFTER THE EFFECTIVE DATE OF THIS ACT] AFTER FEBRUARY 18,
    15  1999, THE TERM SHALL MEAN A LIMITED GEOGRAPHICAL AREA COMPRISED
    16  OF REAL PROPERTY WHICH IS USED FOR ANY FOR-PROFIT ACTIVITY
    17  INVOLVING TRADE AND TRAFFIC OR COMMERCE IN GENERAL.
    18     "COMMERCIAL."  RELATING TO OR ASSOCIATED WITH ANY FOR-PROFIT
    19  ACTIVITY INVOLVING TRADE AND TRAFFIC OR COMMERCE IN GENERAL.
    20     "CONSTRUCTION EXPENDITURES."  PROPERTY AND RIGHT-OF-WAY
    21  ACQUISITION COSTS WHERE APPLICABLE.
    22     "COSTS OF IMPROVEMENTS."  THE TERM INCLUDES ARCHITECTURAL
    23  FEES, ENGINEERING FEES, ATTORNEY FEES, CONSULTING FEES,
    24  PROFESSIONAL FEES, PRELIMINARY PLANNING EXPENDITURES,
    25  FEASIBILITY STUDY EXPENDITURES, FINANCING COSTS AND ANY OTHER
    26  EXPENDITURES NECESSARY AND INCIDENTAL TO THE DEVELOPMENT,
    27  CONSTRUCTION OR COMPLETION OF THE IMPROVEMENT.
    28     "DISTRICT ADVISORY COUNCIL."  A COMMITTEE COMPRISED OF
    29  PROPERTY OWNERS FROM A NEIGHBORHOOD IMPROVEMENT DISTRICT
    30  ESTABLISHED UNDER SECTION [7(A)] 307(A) FOR THE PURPOSE OF
    19990H1142B4032                 - 30 -

     1  PROVIDING GUIDANCE AND DIRECTION TO THE NEIGHBORHOOD IMPROVEMENT
     2  DISTRICT MANAGEMENT ASSOCIATION CONCERNING ASSOCIATION
     3  ACTIVITIES WITHIN THE DISTRICT.
     4     "INDUSTRIAL DISTRICT."  A LIMITED GEOGRAPHICAL AREA COMPRISED
     5  OF REAL PROPERTY WHICH IS USED PREDOMINANTLY FOR MANUFACTURING,
     6  COMMERCIAL OR ANY OTHER ACTIVITY RELATED TO THE DISTRIBUTION OF
     7  GOODS AND SERVICES AND INTERMEDIATE AND FINAL PRODUCTS,
     8  INCLUDING, BUT NOT LIMITED TO, WAREHOUSING, SHIPPING,
     9  TRANSPORTATION, REMANUFACTURING, STOCKPILING OF RAW MATERIALS,
    10  REPAIR AND MAINTENANCE OF MACHINERY AND EQUIPMENT, STORAGE,
    11  ADMINISTRATION OR BUSINESS ACTIVITIES AND RESEARCH AND
    12  DEVELOPMENT.
    13     "INSTITUTION."  THE TERM INCLUDES, BUT IS NOT LIMITED TO,
    14  COLLEGES, UNIVERSITIES, SCHOOLS, HOSPITALS, MUSEUMS, THEATERS,
    15  CHURCHES, SYNAGOGUES, ART CENTERS OR SIMILAR FACILITIES.
    16     "INSTITUTIONAL DISTRICT."  A LIMITED GEOGRAPHICAL AREA
    17  COMPRISED PREDOMINANTLY OF REAL PROPERTY ON WHICH EDUCATIONAL,
    18  HEALTH-RELATED OR CULTURAL ACTIVITIES OCCUR WITHIN BUILDINGS AND
    19  STRUCTURES, INCLUDING, BUT NOT LIMITED TO, COLLEGES,
    20  UNIVERSITIES, SCHOOLS, HOSPITALS, MUSEUMS, THEATERS, CHURCHES,
    21  SYNAGOGUES AND ART CENTERS.
    22     "MIXED-USE DISTRICT."  A LIMITED GEOGRAPHICAL AREA COMPRISED
    23  OF REAL PROPERTY USED FOR ANY OR ALL PURPOSES CONTAINED WITHIN A
    24  BUSINESS, RESIDENTIAL, INDUSTRIAL OR INSTITUTIONAL DISTRICT.
    25     "MUNICIPAL CORPORATION."  THE BODY OR BOARD AUTHORIZED BY LAW
    26  TO ENACT ORDINANCES OR ADOPT RESOLUTIONS FOR A CITY OF THE FIRST
    27  CLASS.
    28     "MUNICIPALITY."  ANY CITY OF THE FIRST CLASS LOCATED WITHIN
    29  THIS COMMONWEALTH.
    30     "NEIGHBORHOOD."  A LIMITED GEOGRAPHIC AREA WITHIN A
    19990H1142B4032                 - 31 -

     1  MUNICIPALITY ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT,
     2  THE LIMITS OF WHICH FORM THE NEIGHBORHOOD IMPROVEMENT DISTRICT
     3  BOUNDARY.
     4     "NEIGHBORHOOD IMPROVEMENT."  IMPROVEMENTS NEEDED IN SPECIFIC
     5  GEOGRAPHIC AREAS OR TO INDIVIDUAL PROPERTIES WITHIN THOSE AREAS,
     6  INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, RETAINING WALLS,
     7  STREET PAVING, PARKS, RECREATIONAL EQUIPMENT AND FACILITIES,
     8  OPEN SPACE, STREET LIGHTING, PARKING LOTS, TREES AND SHRUBBERY,
     9  SEWERS, WATER LINES, REST AREAS AND THE ACQUISITION AND
    10  REHABILITATION OR DEMOLITION OF DETERIORATED BUILDINGS OR
    11  STRUCTURES.
    12     "NEIGHBORHOOD IMPROVEMENT DISTRICT."  A LIMITED GEOGRAPHIC
    13  AREA WITHIN A MUNICIPALITY, IN WHICH A SPECIAL ASSESSMENT IS
    14  LEVIED ON ALL DESIGNATED PROPERTY, OTHER THAN TAX-EXEMPT
    15  PROPERTY, FOR THE PURPOSE OF PROMOTING THE ECONOMIC AND GENERAL
    16  WELFARE OF THE DISTRICT AND THE MUNICIPALITY, HEREINAFTER
    17  REFERRED TO AS NID. SUCH DISTRICTS SHALL BE REFERRED TO
    18  GENERALLY AS NEIGHBORHOOD IMPROVEMENT DISTRICT (NID) AND
    19  SPECIFICALLY AS BUSINESS IMPROVEMENT DISTRICT (BID), RESIDENTIAL
    20  IMPROVEMENT DISTRICT (RID), INDUSTRIAL IMPROVEMENT DISTRICT
    21  (IID), INSTITUTIONAL IMPROVEMENT DISTRICT (INID) OR MIXED-USE
    22  IMPROVEMENT DISTRICT (MID), DEPENDING ON THE TYPE DISTRICT
    23  ESTABLISHED. A DESIGNATED PROPERTY MAY NOT BE INCLUDED IN MORE
    24  THAN ONE NEIGHBORHOOD IMPROVEMENT DISTRICT.
    25     "NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION."
    26  THE GOVERNING BODY WHICH OVERSEES THE MANAGEMENT OF NEIGHBORHOOD
    27  IMPROVEMENT DISTRICTS IN A MUNICIPALITY AS ESTABLISHED UNDER
    28  SECTION [5] 305, WHICH HEREINAFTER SHALL BE REFERRED TO AS THE
    29  NIDMA. SUCH BODY SHALL BE INCORPORATED AS A NONPROFIT
    30  CORPORATION IN THIS COMMONWEALTH OR AN AUTHORITY AS ESTABLISHED
    19990H1142B4032                 - 32 -

     1  PURSUANT TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS
     2  THE MUNICIPALITY AUTHORITIES ACT OF 1945.
     3     "NEIGHBORHOOD IMPROVEMENT DISTRICT PLAN."  THE STRATEGIC PLAN
     4  FOR NEIGHBORHOOD IMPROVEMENTS REQUIRED BY SECTION [5] 305,
     5  HEREINAFTER REFERRED TO AS NIDP, AND ALL PROJECTS, PROGRAMS AND
     6  SUPPLEMENTAL SERVICES TO BE PROVIDED WITHIN THE DISTRICT TO
     7  IMPLEMENT THE PLAN BY THE NEIGHBORHOOD IMPROVEMENT DISTRICT
     8  MANAGEMENT ASSOCIATION.
     9     "NEIGHBORHOOD IMPROVEMENT DISTRICT SERVICES."  IN THE CASE OF
    10  NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATIONS
    11  CREATED FOR THE PURPOSE OF MAKING IMPROVEMENTS OR PROVIDING
    12  EXPANDED SERVICES WITHIN ANY NEIGHBORHOOD BUSINESS IMPROVEMENT
    13  DISTRICTS ESTABLISHED, THE TERM SHALL INCLUDE, BUT NOT BE
    14  LIMITED TO, THOSE SERVICES WHICH IMPROVE THE ABILITY OF THE
    15  COMMERCIAL ESTABLISHMENTS WITHIN THE DISTRICT TO SERVE THE
    16  CONSUMER, SUCH AS FREE OR REDUCED-FEE PARKING FOR CUSTOMERS,
    17  TRANSPORTATION-RELATED EXPENSES, PUBLIC RELATIONS PROGRAMS,
    18  GROUP ADVERTISING AND DISTRICT MAINTENANCE AND SECURITY
    19  SERVICES. FOR SERVICES PROVIDED WITHIN ANY RESIDENTIAL,
    20  INDUSTRIAL, INSTITUTIONAL OR MIXED-USE NEIGHBORHOOD IMPROVEMENT
    21  DISTRICT, THE TERM SHALL INCLUDE, BUT NOT BE LIMITED TO, THOSE
    22  SERVICES WHICH IMPROVE THE ABILITY OF PROPERTY OWNERS TO ENJOY A
    23  SAFER AND MORE ATTRACTIVE NEIGHBORHOOD THROUGH THE PROVISION OF
    24  INCREASED OR EXPANDED SERVICES, INCLUDING STREET LIGHTING,
    25  STREET CLEANING, STREET MAINTENANCE, PARKS, RECREATIONAL
    26  EQUIPMENT AND FACILITIES, OPEN SPACE AND/OR SECURITY SERVICES.
    27     "NONPROFIT CORPORATION."  A LEGAL ENTITY THAT IS INCORPORATED
    28  WITHIN THIS COMMONWEALTH AND SPECIFIES IN ITS CHARTER OR BYLAWS
    29  THAT NO PART OF THE NET EARNINGS MAY BENEFIT ANY PRIVATE
    30  SHAREHOLDER OR INDIVIDUAL HOLDING INTEREST IN SUCH ENTITY.
    19990H1142B4032                 - 33 -

     1     "PRIVATE SECURITY OFFICER."  ANY PERSON OR FIRM EMPLOYED BY
     2  THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION FOR
     3  THE PURPOSE OF PROVIDING INCREASED SECURITY OR PROTECTIVE PATROL
     4  SERVICES WITHIN THE NEIGHBORHOOD IMPROVEMENT DISTRICT. THE TERM
     5  MAY INCLUDE OFF-DUTY POLICE OFFICERS PROVIDED THAT THE USE OF
     6  SUCH OFFICERS FOR THIS PURPOSE IS APPROVED BY THE GOVERNING BODY
     7  OF THE MUNICIPALITY IN WHICH THE NEIGHBORHOOD IMPROVEMENT
     8  DISTRICT IS LOCATED OR THE MUNICIPALITY WHERE THE OFFICER IS
     9  EMPLOYED IF DIFFERENT.
    10     "PROJECT."  THE ACQUISITION, DEVELOPMENT, CONSTRUCTION,
    11  IMPROVEMENT, REHABILITATION, OPERATION AND/OR MAINTENANCE OF ANY
    12  BUILDING, FACILITY, EQUIPMENT OR STRUCTURE, BY PURCHASE, LEASE
    13  OR CONTRACT, BY A NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT
    14  ASSOCIATION TO FACILITATE NEIGHBORHOOD AND BUSINESS IMPROVEMENTS
    15  AS AUTHORIZED BY THIS [ACT] CHAPTER.
    16     "RATIONAL NEXUS."  THE LEGAL PRINCIPLE WHICH REQUIRES THAT
    17  THERE IS A RATIONAL, DEFINABLE BENEFIT WHICH ACCRUES TO ANY
    18  PROPERTY OWNER ASSESSED A FEE FOR SAID BENEFIT IN A NEIGHBORHOOD
    19  IMPROVEMENT DISTRICT CREATED UNDER THIS [ACT] CHAPTER. ALL
    20  PROPERTY OWNERS WITHIN A DESIGNATED NEIGHBORHOOD IMPROVEMENT
    21  DISTRICT PAYING A SPECIAL ASSESSMENT FEE MUST BENEFIT DIRECTLY
    22  OR INDIRECTLY FROM FACILITIES OR SERVICES PROVIDED BY A
    23  NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION WITHIN
    24  THE NEIGHBORHOOD IMPROVEMENT DISTRICT, PROVIDED, HOWEVER, THAT
    25  PROPERTY OWNERS NEED NOT BENEFIT EQUALLY.
    26     "REGIONAL ATTRACTIONS MARKETING AGENCY."  THE AGENCY
    27  DESIGNATED BY THE COUNCIL OF THE CITY IN WHICH THE CONVENTION
    28  CENTER IS LOCATED TO SERVE AS THE REGIONAL MARKETING
    29  ORGANIZATION FOR TOURISM AND RELATED MATTERS. IN CITIES OF THE
    30  FIRST CLASS, THE GREATER PHILADELPHIA TOURISM MARKETING
    19990H1142B4032                 - 34 -

     1  CORPORATION SHALL SERVE AS THE REGIONAL ATTRACTIONS MARKETING
     2  AGENCY.
     3     "RESIDENTIAL DISTRICT."  A LIMITED GEOGRAPHICAL AREA
     4  COMPRISED OF REAL PROPERTY CONSISTING PREDOMINANTLY OF BUILDINGS
     5  AND STRUCTURES FOR HOUSING INDIVIDUALS AND FAMILIES, INCLUDING,
     6  BUT NOT LIMITED TO, SINGLE-FAMILY DETACHED HOMES, SINGLE-FAMILY
     7  SEMIDETACHED HOMES, TOWNHOUSES, CONDOMINIUMS, APARTMENTS,
     8  MANUFACTURED HOMES, MODULAR HOMES OR ANY COMBINATION OF SAME.
     9     "SERVICE AREA."  THE AREA WITHIN THE BOUNDARIES OF THE
    10  NEIGHBORHOOD IMPROVEMENT DISTRICT ESTABLISHED BY A MUNICIPALITY
    11  UNDER THIS [ACT] CHAPTER IN WHICH THE NEIGHBORHOOD IMPROVEMENT
    12  DISTRICT MANAGEMENT ASSOCIATION PROVIDES PROGRAMS, SERVICES AND
    13  IMPROVEMENTS. THE TERM MAY ALSO INCLUDE AN AREA OUTSIDE OF THE
    14  NEIGHBORHOOD IMPROVEMENT DISTRICT WHERE SERVICES ARE BEING
    15  PROVIDED BY THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT
    16  ASSOCIATION UNDER CONTRACT.
    17     "SPECIAL ASSESSMENT FEE."  THE FEE ASSESSED ON PROPERTY
    18  OWNERS WITHIN A NEIGHBORHOOD IMPROVEMENT DISTRICT, LEVIED BY THE
    19  MUNICIPALITY ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT
    20  UNDER SECTION [4(10)] 304(10), FOR THE PURPOSES OF PROVIDING
    21  PROGRAMS, IMPROVEMENTS AND SERVICES UNDER SECTION [7] 307.
    22     "SUNSET PROVISION."  THE TERM MEANS A PROVISION IN THE
    23  NEIGHBORHOOD IMPROVEMENT DISTRICT PLAN UNDER SECTION [5(C)]
    24  305(C), ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH
    25  PROVIDES FOR THE AUTOMATIC TERMINATION OF THE NEIGHBORHOOD
    26  IMPROVEMENT DISTRICT ON A DATE SPECIFIED IN THE NEIGHBORHOOD
    27  IMPROVEMENT DISTRICT PLAN AND IN THE MUNICIPAL ORDINANCE
    28  ESTABLISHING THE NEIGHBORHOOD IMPROVEMENT DISTRICT. THE
    29  NEIGHBORHOOD IMPROVEMENT DISTRICT MAY BE CONTINUED BEYOND THAT
    30  DATE, PROVIDED THE MUNICIPAL ENABLING ORDINANCE CREATING THE
    19990H1142B4032                 - 35 -

     1  ORIGINAL NEIGHBORHOOD IMPROVEMENT DISTRICT IS REENACTED,
     2  FOLLOWING A REVIEW OF THE NEIGHBORHOOD IMPROVEMENT DISTRICT AND
     3  THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION
     4  PROGRAMS AND SERVICES PROVIDED WITHIN THE NEIGHBORHOOD
     5  IMPROVEMENT DISTRICT BY THE MUNICIPALITY.
     6  SECTION [4] 304.  POWERS OF MUNICIPAL CORPORATION.
     7     EVERY MUNICIPAL CORPORATION SHALL HAVE THE POWER:
     8         * * *
     9         (2)  TO ESTABLISH AN AUTHORITY TO ADMINISTER THE NID OR
    10     TO DESIGNATE AN EXISTING COMMUNITY DEVELOPMENT CORPORATION OR
    11     OTHER EXISTING NONPROFIT CORPORATION TO ADMINISTER SAME OR TO
    12     CREATE A COMMUNITY DEVELOPMENT CORPORATION OR OTHER NONPROFIT
    13     CORPORATION TO ADMINISTER SAME UNDER SECTIONS [6] 306 AND [7]
    14     307.
    15         * * *
    16         (4)  TO ADVANCE FUNDS TO AN NIDMA AS MAY BE REQUIRED TO
    17     CARRY OUT THE PURPOSES OF THIS [ACT] CHAPTER.
    18         * * *
    19  SECTION [5] 305.  CREATION OF NEIGHBORHOOD IMPROVEMENT DISTRICT.
    20     (A)  ESTABLISHMENT.--
    21         (1)  THE GOVERNING BODY OF THE MUNICIPALITY OR ANY
    22     MUNICIPAL BUSINESSES OR RESIDENTS OR COMBINATION THEREOF MAY
    23     INITIATE ACTION TO ESTABLISH AN NID OR NIDS WITHIN THE
    24     MUNICIPALITY UNDER THIS [ACT] CHAPTER.
    25         (2)  IN THE CASE OF BUSINESSES OR RESIDENTS OR BOTH
    26     DESIRING TO ESTABLISH AN NID WHERE THE MUNICIPALITY HAS NOT
    27     TAKEN ACTION TO DO SO, THE GOVERNING BODY OF THE MUNICIPALITY
    28     MAY BE PETITIONED TO ESTABLISH AN NID UNDER THE PROCEDURES
    29     PROVIDED FOR BY THIS [ACT] CHAPTER.
    30         (3)  IN NO CASE WHERE THE GOVERNING BODY OF A
    19990H1142B4032                 - 36 -

     1     MUNICIPALITY IS PETITIONED TO ESTABLISH AN NID UNDER
     2     PARAGRAPH (2) SHALL THE MUNICIPALITY BE REQUIRED TO ESTABLISH
     3     AN NID.
     4     (B)  SPECIFIC PROCEDURES.--
     5         (1)  A COPY OF EVERYTHING REQUIRED UNDER THIS SECTION, AS
     6     WELL AS THE DATE, LOCATION AND TIME OF ANY PUBLIC HEARING
     7     REQUIRED BY THIS [ACT] CHAPTER, SHALL BE PROVIDED BY THE
     8     MUNICIPAL CORPORATION TO ALL PROPERTY OWNERS AND LESSEES OF
     9     PROPERTY OWNERS LOCATED IN THE PROPOSED NID AT LEAST 30 DAYS
    10     PRIOR TO THE FIRST PUBLIC HEARING REQUIRED BY THIS SECTION.
    11         * * *
    12     (C)  CONTENTS OF PRELIMINARY PLAN.--THE PLAN SHALL INCLUDE
    13  THE FOLLOWING:
    14         * * *
    15         (2)  A WRITTEN REPORT FROM THE MUNICIPALITY CONTAINING:
    16             * * *
    17             (X)  THE METHOD OF DETERMINING THE AMOUNT OF THE
    18         ASSESSMENT FEE TO BE LEVIED ON PROPERTY OWNERS WITHIN THE
    19         NID UNDER SECTION [7] 307.
    20         * * *
    21     (F)  VETO OF FINAL PLAN FOR NID.--
    22         * * *
    23         (2)  IF 51% OR MORE OF THE AFFECTED PROPERTY OWNERS OR
    24     PROPERTY OWNERS WHOSE PROPERTY VALUATION AS ASSESSED FOR
    25     TAXABLE PURPOSES AMOUNTS TO 51% OF THE TOTAL PROPERTY
    26     VALUATION WITHIN THE PROPOSED NID FAIL TO REGISTER THEIR
    27     DISAPPROVAL OF THE FINAL PLAN OR AMENDMENT TO THE FINAL PLAN
    28     IN WRITING WITH THE CLERK OF THE GOVERNING BODY OF THE
    29     MUNICIPALITY IN WHICH THE NID IS PROPOSED, THE GOVERNING BODY
    30     OF THE MUNICIPALITY MAY, FOLLOWING THE 45-DAY PERIOD, ENACT A
    19990H1142B4032                 - 37 -

     1     MUNICIPAL ORDINANCE ESTABLISHING AN NID UNDER THIS [ACT]
     2     CHAPTER OR, IN THE CASE OF AN AMENDMENT TO THE FINAL PLAN,
     3     ADOPT ANY AMENDMENTS TO THE ORDINANCE.
     4     (G)  AMENDMENTS TO FINAL PLAN.--
     5         (1)  THE FINAL PLAN MAY BE AMENDED BY THE NIDMA ANY TIME
     6     AFTER THE ESTABLISHMENT OF AN NID, PURSUANT TO THE PROVISIONS
     7     OF THIS [ACT] CHAPTER, UPON THE RECOMMENDATION OF THE NIDMA
     8     BOARD, PROVIDED THERE IS CONCURRENCE WITH THE OWNERS OF AT
     9     LEAST 51% OF THE ASSESSED VALUATION OF ALL PROPERTY WITHIN
    10     THE NID OR 51% OF THE PROPERTY OWNERS WITHIN THE NID.
    11         * * *
    12  SECTION [6] 306.  CREATION OF NEIGHBORHOOD IMPROVEMENT DISTRICT
    13                 MANAGEMENT ASSOCIATION.
    14     (A)  ASSOCIATION DESIGNATED.--WHEN A MUNICIPALITY ESTABLISHES
    15  AN NID UNDER THIS [ACT] CHAPTER, A NEIGHBORHOOD IMPROVEMENT
    16  DISTRICT MANAGEMENT ASSOCIATION SHALL BE DESIGNATED BY THE
    17  GOVERNING BODY OF THE MUNICIPALITY IN WHICH THE NID IS TO BE
    18  LOCATED TO ADMINISTER PROGRAMS, IMPROVEMENTS AND SERVICES WITHIN
    19  THE NID.
    20     (B)  ADMINISTRATION.--
    21         (1)  NIDS CREATED PURSUANT TO THIS [ACT] CHAPTER SHALL BE
    22     ADMINISTERED BY AN NIDMA WHICH SHALL BE AN AUTHORITY CREATED
    23     PURSUANT TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN
    24     AS THE MUNICIPALITY AUTHORITIES ACT OF 1945, AN EXISTING
    25     NONPROFIT DEVELOPMENT CORPORATION, AN EXISTING NONPROFIT
    26     CORPORATION OR A NONPROFIT DEVELOPMENT CORPORATION OR
    27     NONPROFIT CORPORATION ESTABLISHED BY THE GOVERNING BODY OR
    28     AUTHORIZED TO BE ESTABLISHED BY THE GOVERNING BODY OF THE
    29     MUNICIPALITY IN WHICH THE NID IS TO BE LOCATED, TO ADMINISTER
    30     THE NIDP.
    19990H1142B4032                 - 38 -

     1         * * *
     2     (C)  POWERS.--AN NIDMA CREATED UNDER THIS [ACT] CHAPTER SHALL
     3  ASSUME ALL POWERS PROVIDED FOR IN SECTION [7] 307 IMMEDIATELY
     4  UPON THE EFFECTIVE DATE OF THE MUNICIPAL ORDINANCE ENACTED UNDER
     5  SECTION [4] 304 CREATING AN NID.
     6     * * *
     7  SECTION [7] 307.  POWERS OF NEIGHBORHOOD IMPROVEMENT DISTRICT
     8                 MANAGEMENT ASSOCIATION.
     9     * * *
    10     (B)  ASSESSMENTS.--
    11         (1)  THE NIDMA SHALL, UPON APPROVAL BY THE GOVERNING BODY
    12     OF THE MUNICIPALITY, HAVE THE POWER TO ASSESS PROPERTY OWNERS
    13     WITHIN THE NID A SPECIAL PROPERTY ASSESSMENT FEE. REVENUES
    14     FROM THE FEE SHALL BE ACCOUNTED FOR AND USED BY THE NIDMA TO
    15     MAKE IMPROVEMENTS AND PROVIDE PROGRAMS AND SERVICES WITHIN
    16     THE NID AS AUTHORIZED BY THIS [ACT] CHAPTER. WHERE THE
    17     DISTRICT ESTABLISHED IS A BID, THE NIDMA SHALL HAVE THE
    18     AUTHORITY TO EXEMPT RESIDENTIAL PROPERTY OWNERS FROM ANY
    19     SPECIAL ASSESSMENT FEES LEVIED.
    20         * * *
    21         (3)  ALL SPECIAL PROPERTY ASSESSMENT FEES SHALL BE BASED
    22     UPON THE ESTIMATED COST OF THE PROGRAMS, IMPROVEMENTS OR
    23     SERVICES TO BE PROVIDED IN SUCH NID AS STATED IN THE FINAL
    24     PLAN UNDER SECTION [5(D)] 305(D). IN NO CASE SHALL THE
    25     AGGREGATE AMOUNT OF ALL FEES LEVIED BY THE NIDMA DURING THE
    26     YEAR EXCEED THE ESTIMATED COST OF PROPOSED PROGRAMS,
    27     IMPROVEMENTS AND SERVICES FOR THE YEAR.
    28         * * *
    29  SECTION [8] 308.  DISSOLUTION OF NEIGHBORHOOD IMPROVEMENT
    30                 DISTRICT MANAGEMENT ASSOCIATION AND NEIGHBORHOOD
    19990H1142B4032                 - 39 -

     1                 IMPROVEMENT DISTRICT.
     2     * * *
     3     (B)  REQUEST FOR TERMINATION.--ANY REQUEST FOR THE
     4  TERMINATION OF THE NID AND NIDMA APPROVED BY 51% OF THE ASSESSED
     5  PROPERTY OWNERS, IN NUMBERS, LOCATED IN THE NID SHALL BE
     6  SUBMITTED TO THE GOVERNING BODY OF THE MUNICIPALITY IN WRITING.
     7  THE GOVERNING BODY SHALL HOLD A HEARING ON THE MERITS OF SAME
     8  PURSUANT TO SECTION [5(B)(2)] 305(B)(2) AS IT RELATES TO THE
     9  REQUIRED PROCEDURE OF HOLDING A HEARING. SUCH WRITTEN REQUEST
    10  SHALL BE CONSIDERED BY THE GOVERNING BODY OF THE MUNICIPALITY.
    11  IF THE REQUEST IS APPROVED BY THE GOVERNING BODY OF THE
    12  MUNICIPALITY, THEN A RESOLUTION TO THAT EFFECT SHALL BE FILED
    13  WITH THE SECRETARY OF THE COMMONWEALTH, AND THE SECRETARY SHALL
    14  NOTE THE TERMINATION OF THE EXISTENCE ON THE RECORD OF
    15  INCORPORATION AND RETURN THE RESOLUTION WITH HIS OR HER APPROVAL
    16  SHOWN ON THE RESOLUTION TO THE MUNICIPAL CORPORATION. THEN THE
    17  PROPERTY OF THE NIDMA SHALL PASS TO THE MUNICIPAL CORPORATION,
    18  AS THE CASE MAY BE, AND THE NIDMA AND NID SHALL CEASE TO EXIST.
    19  ANY REQUEST FOR THE TERMINATION OF THE NID AND NIDMA BY THE
    20  GOVERNING BODY OF THE MUNICIPALITY IN WHICH THE NID IS LOCATED
    21  SHALL RESULT IN A HEARING ON THE MERITS OF SAME PURSUANT TO
    22  SECTION [5(B)(2)] 305(B)(2) AS IT RELATES TO THE REQUIRED
    23  PROCEDURE FOR HOLDING A HEARING. BEFORE THE DECISION TO
    24  TERMINATE AN NID AND NIDMA IS MADE, SUCH TERMINATION MUST BE
    25  APPROVED BY 51% OF THE ASSESSED PROPERTY OWNERS, IN NUMBERS,
    26  LOCATED IN THE NID AND SHALL BE SUBMITTED TO THE GOVERNING BODY
    27  OF THE MUNICIPALITY IN WRITING. SUCH WRITTEN REQUEST SHALL BE
    28  CONSIDERED BY THE GOVERNING BODY OF THE MUNICIPALITY. IF THE
    29  REQUEST IS APPROVED BY THE GOVERNING BODY OF THE MUNICIPALITY,
    30  THEN A RESOLUTION TO THAT EFFECT SHALL BE FILED WITH THE
    19990H1142B4032                 - 40 -

     1  SECRETARY OF THE COMMONWEALTH, AND THE SECRETARY SHALL NOTE THE
     2  TERMINATION OF THE EXISTENCE ON THE RECORD OF INCORPORATION AND
     3  RETURN THE RESOLUTION WITH HIS OR HER APPROVAL SHOWN TO THE
     4  MUNICIPAL CORPORATION. THE PROPERTY OF THE NIDMA SHALL PASS TO
     5  THE MUNICIPAL CORPORATION, AS THE CASE MAY BE, AND THE NIDMA AND
     6  NID SHALL CEASE TO EXIST.
     7     SECTION 6.  SECTION 9 HEADING OF THE ACT IS RENUMBERED TO
     8  READ:
     9  SECTION [9] 309.  ANNUAL AUDIT; REPORT.
    10     * * *
    11     SECTION 7.  SECTIONS 10, 11 AND 12 OF THE ACT ARE AMENDED TO
    12  READ:
    13  SECTION [10] 310.  TOURISM AND MARKETING TAX.
    14     IN ADDITION TO THE HOTEL ROOM RENTAL TAX IMPOSED UNDER
    15  SECTION 23 OF THE ACT OF JUNE 27, 1986 (P.L.267, NO.70), KNOWN
    16  AS THE PENNSYLVANIA CONVENTION CENTER AUTHORITY ACT, AND UNDER
    17  SECTION 202 OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS
    18  THE TAX REFORM CODE OF 1971, THE COUNCIL OF THE CITY IN WHICH A
    19  CONVENTION CENTER IS LOCATED IS HEREBY AUTHORIZED TO IMPOSE AN
    20  EXCISE TAX ON THE CONSIDERATION RECEIVED BY EACH OPERATOR OF A
    21  HOTEL WITHIN THE CITY FROM EACH TRANSACTION OF RENTING A ROOM OR
    22  ROOMS TO ACCOMMODATE TRANSIENTS. THE TAX SHALL BE COLLECTED BY
    23  THE OPERATOR FROM THE PATRON OF THE ROOM AND PAID OVER TO THE
    24  CITY PURSUANT TO SECTION [11] 311 AND SHALL BE KNOWN AS THE
    25  TOURISM AND MARKETING TAX. THE RATE OF TAX IMPOSED UNDER THIS
    26  SECTION BY THE COUNCIL OF THE CITY IN WHICH THE CONVENTION
    27  CENTER IS LOCATED SHALL NOT EXCEED 1%.
    28  SECTION [11] 311.  SPECIAL TOURISM AND MARKETING TAX FUND.
    29     THERE SHALL BE DEPOSITED ANNUALLY IN A SPECIAL FUND
    30  ESTABLISHED PURSUANT TO SECTION 23(E) OF THE ACT OF JUNE 27,
    19990H1142B4032                 - 41 -

     1  1986 (P.L.267, NO.70), KNOWN AS THE PENNSYLVANIA CONVENTION
     2  CENTER AUTHORITY ACT, FOR THE USE OF THE REGIONAL ATTRACTIONS
     3  MARKETING AGENCY, ALL REVENUES RECEIVED FROM THE TAX IMPOSED
     4  UNDER SECTION [10] 310. ALL EXPENDITURES FROM THE SPECIAL FUND
     5  ESTABLISHED UNDER SECTION 23(E) OF THE PENNSYLVANIA CONVENTION
     6  CENTER AUTHORITY ACT SHALL BE USED BY THE REGIONAL ATTRACTIONS
     7  MARKETING AGENCY FOR DIRECT ADVERTISING EFFORTS DIRECTED TOWARDS
     8  ADVERTISING AND PUBLICIZING TOURIST ATTRACTIONS IN THE AREA
     9  SERVED BY THE AGENCY, PROMOTING AND ATTRACTING TOURISM TO
    10  FACILITIES IN THE AREA SERVED BY THE AGENCY AND PROMOTING AND
    11  OTHERWISE ENCOURAGING THE USE OF THE FACILITIES IN THE AREA
    12  SERVED BY THE AGENCY BY THE PUBLIC AS A WHOLE.
    13  SECTION [12] 312.  APPLICABILITY.
    14     (A)  EXISTING COMMERCIAL BUSINESS IMPROVEMENT DISTRICTS.--THE
    15  PROVISIONS OF THIS [ACT] CHAPTER SHALL NOT APPLY TO A BUSINESS
    16  IMPROVEMENT DISTRICT ESTABLISHED PURSUANT TO THE ACT OF MAY 2,
    17  1945 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES
    18  ACT OF 1945, IN EXISTENCE IN WHOLE OR IN PART IN A CITY OF THE
    19  FIRST CLASS PRIOR TO [THE EFFECTIVE DATE OF THIS ACT] FEBRUARY
    20  19, 1999.
    21     (B)  EXISTING DISTRICTS.--EXCEPT AS PROVIDED FOR IN
    22  SUBSECTION (E), ANY EXISTING BUSINESS IMPROVEMENT DISTRICT OR
    23  DOWNTOWN IMPROVEMENT DISTRICT ESTABLISHED PRIOR TO [THE
    24  EFFECTIVE DATE OF THIS ACT] FEBRUARY 19, 1999 SHALL REMAIN IN
    25  EXISTENCE AND SHALL BE GOVERNED BY THE MUNICIPALITY AUTHORITIES
    26  ACT OF 1945 INSOFAR AS IT RELATES TO BUSINESS IMPROVEMENT
    27  DISTRICTS OR 53 PA.C.S. CH. 54 (RELATING TO BUSINESS IMPROVEMENT
    28  DISTRICTS).
    29     (C)  DISTRICTS CREATED SUBSEQUENTLY.--ANY NID ESTABLISHED
    30  SUBSEQUENT TO [THE EFFECTIVE DATE OF THIS ACT] FEBRUARY 19, 1999
    19990H1142B4032                 - 42 -

     1  SHALL BE GOVERNED BY THE PROVISIONS OF THIS [ACT] CHAPTER.
     2     (D)  [PREVIOUSLY TERMINATED] TERMINATED DISTRICTS.--ANY
     3  BUSINESS IMPROVEMENT DISTRICT OR DOWNTOWN IMPROVEMENT DISTRICT
     4  IN EXISTENCE PRIOR TO [THE EFFECTIVE DATE OF THIS ACT] FEBRUARY
     5  19, 1999 WHICH IS TERMINATED PURSUANT TO A SUNSET PROVISION
     6  CONTAINED IN THE MUNICIPAL ORDINANCE WHICH ESTABLISHED THE
     7  BUSINESS IMPROVEMENT DISTRICT OR DOWNTOWN IMPROVEMENT DISTRICT
     8  SHALL, UPON ITS REESTABLISHMENT, PROVIDED IT OCCURS WITHIN 12
     9  MONTHS OF THE TERMINATION DATE AS SET FORTH IN THE MUNICIPAL
    10  ORDINANCE, BE GOVERNED BY THE PROVISIONS OF THIS [ACT. THIS
    11  SHALL INCLUDE ANY TERMINATION RESULTING FROM A SUNSET PROVISION
    12  IN ANY MUNICIPAL AGREEMENT OR ORDINANCE.] CHAPTER, WITH THE
    13  EXCEPTION OF SECTIONS 305 AND 306.
    14     (E)  ADDITIONAL REQUIREMENTS.--ANY BUSINESS IMPROVEMENT
    15  DISTRICT OR DOWNTOWN IMPROVEMENT DISTRICT IN EXISTENCE ON [THE
    16  EFFECTIVE DATE OF THIS ACT] FEBRUARY 19, 1999 SHALL:
    17         (1)  BE REQUIRED TO CARRY OUT ANY DUTY OR RESPONSIBILITY
    18     IMPOSED ON NIDS UNDER THIS [ACT] CHAPTER; AND
    19         (2)  POSSESS ANY ADDITIONAL POWER GIVEN TO NIDS UNDER
    20     THIS [ACT] CHAPTER WITHOUT HAVING TO RESTRUCTURE OR
    21     REORGANIZE UNDER THIS [ACT] CHAPTER.
    22     SECTION 8.  SECTION 13 OF THE ACT IS REPEALED.
    23     SECTION 9.  THE ACT IS AMENDED BY ADDING A CHAPTER TO READ:
    24                             CHAPTER 5
    25                        OTHER MUNICIPALITIES
    26  SECTION 501.  SCOPE OF CHAPTER.
    27     THIS CHAPTER SHALL APPLY TO ALL MUNICIPALITIES OTHER THAN
    28  CITIES OF THE FIRST CLASS.
    29  SECTION 502.  LEGISLATIVE FINDINGS.
    30     THE GENERAL ASSEMBLY FINDS THAT:
    19990H1142B4032                 - 43 -

     1         (1)  EXISTING TAX RATES IN MANY MUNICIPALITIES ARE AT OR
     2     NEAR THEIR STATUTORY CAP.
     3         (2)  THE GENERAL FUND REVENUE DERIVED FROM THESE TAXES
     4     MANY TIMES IS NOT SUFFICIENT TO PROVIDE ADEQUATE MUNICIPAL
     5     SERVICES OR ADDITIONAL SERVICES NEEDED IN SPECIFIC GEOGRAPHIC
     6     AREAS WITHIN THE MUNICIPALITY, INCLUDING, BUT NOT LIMITED TO,
     7     DOWNTOWN COMMERCIAL DISTRICTS.
     8         (3)  AS A RESULT, MUNICIPALITIES SHOULD BE ENCOURAGED TO
     9     CREATE, WHERE FEASIBLE AND DESIRED, ASSESSMENT-BASED
    10     NEIGHBORHOOD IMPROVEMENT DISTRICTS WHICH WOULD INCLUDE, BUT
    11     NOT BE LIMITED TO, DOWNTOWN COMMERCIAL DISTRICTS. DESIGNATED
    12     DISTRICT MANAGEMENT ASSOCIATIONS WOULD INITIATE AND
    13     ADMINISTER PROGRAMS TO PROMOTE AND ENHANCE MORE ATTRACTIVE
    14     AND SAFER COMMERCIAL, INDUSTRIAL, RESIDENTIAL AND MIXED-USE
    15     NEIGHBORHOODS; ECONOMIC GROWTH; INCREASED EMPLOYMENT
    16     OPPORTUNITIES; AND IMPROVED COMMERCIAL, INDUSTRIAL, BUSINESS
    17     DISTRICTS AND BUSINESS CLIMATES.
    18         (4)  MUNICIPALITIES SHOULD BE GIVEN THE BROADEST POSSIBLE
    19     DISCRETION IN ESTABLISHING BY LOCAL ORDINANCE THE TYPE OF
    20     ASSESSMENT-BASED PROGRAMS MOST CONSISTENT WITH NEIGHBORHOOD
    21     NEEDS, GOALS AND OBJECTIVES, AS DETERMINED AND EXPRESSED BY
    22     PROPERTY OWNERS IN THE DESIGNATED DISTRICT.
    23  SECTION 503.  DEFINITIONS.
    24     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
    25  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    26  CONTEXT CLEARLY INDICATES OTHERWISE:
    27     "AUTHORITY."  A BODY POLITIC AND CORPORATE, CREATED PURSUANT
    28  TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE
    29  MUNICIPALITY AUTHORITIES ACT OF 1945.
    30     "BENEFITED PROPERTY."  THOSE PROPERTIES LOCATED WITHIN A
    19990H1142B4032                 - 44 -

     1  NEIGHBORHOOD IMPROVEMENT DISTRICT WHICH PROFIT FROM DISTRICT
     2  IMPROVEMENTS BASED ON A RATIONAL NEXUS TEST. PROPERTIES NEED NOT
     3  PROFIT EQUALLY TO BE CONSIDERED TO HAVE BENEFITED.
     4     "BONDS."  THE TERM SHALL INCLUDE THE NOTES, BONDS AND OTHER
     5  EVIDENCE OF INDEBTEDNESS OR OBLIGATIONS WHICH EACH MUNICIPAL
     6  CORPORATION IS AUTHORIZED TO ISSUE UNDER SECTION 504(7).
     7     "BUSINESS IMPROVEMENT."  IN THE CASE OF NEIGHBORHOOD
     8  IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATIONS CREATED FOR THE
     9  PURPOSE OF MAKING IMPROVEMENTS OR PROVIDING ADMINISTRATIVE
    10  SERVICES WITHIN A NEIGHBORHOOD IMPROVEMENT DISTRICT, THE TERM
    11  SHALL MEAN THOSE IMPROVEMENTS NEEDED IN SPECIFIC AREAS OR TO
    12  INDIVIDUAL PROPERTIES, INCLUDING, BUT NOT LIMITED TO, SIDEWALKS,
    13  RETAINING WALLS, STREET PAVING, PARKS, RECREATIONAL EQUIPMENT
    14  AND FACILITIES, OPEN SPACE, STREET LIGHTING, PARKING LOTS,
    15  PARKING GARAGES, TREES AND SHRUBBERY, PEDESTRIAN WALKS, SEWERS,
    16  WATER LINES, REST AREAS AND THE ACQUISITION AND REHABILITATION
    17  OR DEMOLITION OF BLIGHTED BUILDINGS OR STRUCTURES.
    18     "BUSINESS IMPROVEMENT DISTRICT."  A BUSINESS IMPROVEMENT
    19  DISTRICT (BID) CREATED PRIOR TO THE EFFECTIVE DATE OF THIS
    20  CHAPTER GOVERNED BY THE ACT OF MAY 2, 1945 (P.L.382, NO.164),
    21  KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF 1945, INSOFAR AS IT
    22  RELATES TO BUSINESS IMPROVEMENT DISTRICTS OR 53 PA.C.S. CH. 54
    23  (RELATING TO BUSINESS IMPROVEMENT DISTRICTS). ON OR AFTER THE
    24  EFFECTIVE DATE OF THIS CHAPTER, THE TERM SHALL MEAN A LIMITED,
    25  GEOGRAPHICAL AREA COMPRISED OF REAL PROPERTY WHICH IS USED FOR
    26  ANY FOR-PROFIT ACTIVITY INVOLVING TRADE AND TRAFFIC, OR COMMERCE
    27  IN GENERAL.
    28     "COMMERCIAL."  RELATING TO OR ASSOCIATED WITH ANY FOR-PROFIT
    29  ACTIVITY INVOLVING TRADE AND TRAFFIC, OR COMMERCE IN GENERAL.
    30     "CONSTRUCTION EXPENDITURES."  PROPERTY AND RIGHT-OF-WAY
    19990H1142B4032                 - 45 -

     1  ACQUISITION COSTS WHERE APPLICABLE.
     2     "COSTS OF IMPROVEMENTS."  THE TERM INCLUDES ARCHITECTURAL
     3  FEES, ENGINEERING FEES, ATTORNEY FEES, CONSULTING FEES,
     4  PROFESSIONAL FEES, PRELIMINARY PLANNING EXPENDITURES,
     5  FEASIBILITY STUDY EXPENDITURES, FINANCING COSTS AND ANY OTHER
     6  EXPENDITURES NECESSARY AND INCIDENTAL TO THE DEVELOPMENT,
     7  CONSTRUCTION OR COMPLETION OF THE IMPROVEMENT.
     8     "DISTRICT ADVISORY COUNCIL."  A COMMITTEE COMPRISED OF
     9  PROPERTY OWNERS FROM A NEIGHBORHOOD IMPROVEMENT DISTRICT
    10  ESTABLISHED UNDER SECTION 507(A), FOR THE PURPOSE OF PROVIDING
    11  GUIDANCE AND DIRECTION TO THE NEIGHBORHOOD IMPROVEMENT DISTRICT
    12  MANAGEMENT ASSOCIATION CONCERNING ASSOCIATION ACTIVITIES WITHIN
    13  THE DISTRICT.
    14     "INDUSTRIAL DISTRICT."  A LIMITED, GEOGRAPHICAL AREA
    15  COMPRISED OF REAL PROPERTY WHICH IS USED PREDOMINANTLY FOR
    16  MANUFACTURING, COMMERCIAL OR ANY OTHER ACTIVITY RELATED TO THE
    17  DISTRIBUTION OF GOODS AND SERVICES AND INTERMEDIATE AND FINAL
    18  PRODUCTS, INCLUDING, BUT NOT LIMITED TO, WAREHOUSING, SHIPPING,
    19  TRANSPORTATION, REMANUFACTURING, STOCKPILING OF RAW MATERIALS,
    20  REPAIR AND MAINTENANCE OF MACHINERY AND EQUIPMENT, STORAGE,
    21  ADMINISTRATION OR BUSINESS ACTIVITIES, AND RESEARCH AND
    22  DEVELOPMENT.
    23     "INSTITUTION."  THE TERM INCLUDES, BUT IS NOT LIMITED TO,
    24  COLLEGES, UNIVERSITIES, SCHOOLS, HOSPITALS, MUSEUMS, THEATERS,
    25  CHURCHES, SYNAGOGUES, ART CENTERS OR SIMILAR FACILITIES.
    26     "INSTITUTIONAL DISTRICT."  A LIMITED, GEOGRAPHICAL AREA
    27  COMPRISED PREDOMINANTLY OF REAL PROPERTY ON WHICH EDUCATIONAL,
    28  HEALTH-RELATED OR CULTURAL ACTIVITIES OCCUR WITHIN BUILDINGS AND
    29  STRUCTURES, INCLUDING, BUT NOT LIMITED TO, COLLEGES,
    30  UNIVERSITIES, SCHOOLS, HOSPITALS, MUSEUMS, THEATERS, CHURCHES,
    19990H1142B4032                 - 46 -

     1  SYNAGOGUES AND ART CENTERS.
     2     "MIXED-USE DISTRICT."  A LIMITED, GEOGRAPHICAL AREA COMPRISED
     3  OF REAL PROPERTY USED FOR ANY OR ALL PURPOSES CONTAINED WITHIN A
     4  BUSINESS, RESIDENTIAL, INDUSTRIAL OR INSTITUTIONAL DISTRICT.
     5     "MUNICIPAL CORPORATION."  THE BODY OR BOARD AUTHORIZED BY LAW
     6  TO ENACT ORDINANCES OR ADOPT RESOLUTIONS FOR THE PARTICULAR
     7  MUNICIPALITY.
     8     "MUNICIPALITY."  ANY CITY, BOROUGH, INCORPORATED TOWN,
     9  TOWNSHIP, HOME RULE, OPTIONAL PLAN OR OPTIONAL CHARTER
    10  MUNICIPALITY OTHER THAN A CITY OF THE FIRST CLASS, LOCATED
    11  WITHIN THIS COMMONWEALTH.
    12     "NEIGHBORHOOD."  A LIMITED GEOGRAPHIC AREA WITHIN A
    13  MUNICIPALITY ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT,
    14  THE LIMITS OF WHICH FORM THE NEIGHBORHOOD IMPROVEMENT DISTRICT
    15  BOUNDARY.
    16     "NEIGHBORHOOD IMPROVEMENT."  IMPROVEMENTS NEEDED IN SPECIFIC
    17  GEOGRAPHIC AREAS OR TO INDIVIDUAL PROPERTIES WITHIN THOSE AREAS,
    18  INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, RETAINING WALLS,
    19  STREET PAVING, PARKS, RECREATIONAL EQUIPMENT AND FACILITIES,
    20  OPEN SPACE, STREET LIGHTING, PARKING LOTS, TREES AND SHRUBBERY,
    21  SEWERS, WATER LINES, REST AREAS AND THE ACQUISITION AND
    22  REHABILITATION OR DEMOLITION OF DETERIORATED BUILDINGS OR
    23  STRUCTURES.
    24     "NEIGHBORHOOD IMPROVEMENT DISTRICT."  A LIMITED GEOGRAPHIC
    25  AREA WITHIN A MUNICIPALITY, IN WHICH A SPECIAL ASSESSMENT IS
    26  LEVIED ON ALL DESIGNATED PROPERTY, OTHER THAN TAX-EXEMPT
    27  PROPERTY, FOR THE PURPOSE OF PROMOTING THE ECONOMIC AND GENERAL
    28  WELFARE OF THE DISTRICT AND THE MUNICIPALITY, HEREINAFTER
    29  REFERRED TO AS NID. SUCH DISTRICTS SHALL BE REFERRED TO
    30  GENERALLY AS NEIGHBORHOOD IMPROVEMENT DISTRICT (NID) AND
    19990H1142B4032                 - 47 -

     1  SPECIFICALLY AS: BUSINESS IMPROVEMENT DISTRICT (BID);
     2  RESIDENTIAL IMPROVEMENT DISTRICT (RID); INDUSTRIAL IMPROVEMENT
     3  DISTRICT (IID); INSTITUTIONAL IMPROVEMENT DISTRICT (INID); OR
     4  MIXED-USE IMPROVEMENT DISTRICT (MID) DEPENDING ON THE TYPE
     5  DISTRICT ESTABLISHED. A DESIGNATED PROPERTY MAY NOT BE INCLUDED
     6  IN MORE THAN ONE NEIGHBORHOOD IMPROVEMENT DISTRICT.
     7     "NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION."
     8  THE GOVERNING BODY WHICH OVERSEES THE MANAGEMENT OF NEIGHBORHOOD
     9  IMPROVEMENT DISTRICTS IN A MUNICIPALITY AS ESTABLISHED UNDER
    10  SECTION 505 WHICH HEREINAFTER SHALL BE REFERRED TO AS THE NIDMA.
    11  SUCH BODY SHALL BE INCORPORATED AS A NONPROFIT CORPORATION IN
    12  THIS COMMONWEALTH OR AN AUTHORITY AS ESTABLISHED PURSUANT TO THE
    13  ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY
    14  AUTHORITIES ACT OF 1945.
    15     "NEIGHBORHOOD IMPROVEMENT DISTRICT PLAN."  THE STRATEGIC PLAN
    16  FOR NEIGHBORHOOD IMPROVEMENTS REQUIRED BY SECTION 505,
    17  HEREINAFTER REFERRED TO AS NIDP, AND ALL PROJECTS, PROGRAMS AND
    18  SUPPLEMENTAL SERVICES TO BE PROVIDED WITHIN THE DISTRICT TO
    19  IMPLEMENT THE PLAN BY THE NEIGHBORHOOD IMPROVEMENT DISTRICT
    20  MANAGEMENT ASSOCIATION.
    21     "NEIGHBORHOOD IMPROVEMENT DISTRICT SERVICES."  IN THE CASE OF
    22  NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATIONS
    23  CREATED FOR THE PURPOSE OF MAKING IMPROVEMENTS OR PROVIDING
    24  EXPANDED SERVICES WITHIN ANY NEIGHBORHOOD BUSINESS IMPROVEMENT
    25  DISTRICTS ESTABLISHED, THE TERM SHALL INCLUDE, BUT NOT BE
    26  LIMITED TO, THOSE SERVICES WHICH IMPROVE THE ABILITY OF THE
    27  COMMERCIAL ESTABLISHMENTS WITHIN THE DISTRICT TO SERVE THE
    28  CONSUMER, SUCH AS FREE OR REDUCED-FEE PARKING FOR CUSTOMERS,
    29  TRANSPORTATION-RELATED EXPENSES, PUBLIC RELATIONS PROGRAMS,
    30  GROUP ADVERTISING, AND DISTRICT MAINTENANCE AND SECURITY
    19990H1142B4032                 - 48 -

     1  SERVICES. FOR SERVICES PROVIDED WITHIN ANY RESIDENTIAL,
     2  INDUSTRIAL, INSTITUTIONAL, OR MIXED-USE NEIGHBORHOOD IMPROVEMENT
     3  DISTRICT, THE TERM SHALL INCLUDE, BUT NOT BE LIMITED TO, THOSE
     4  SERVICES WHICH IMPROVE THE ABILITY OF PROPERTY OWNERS TO ENJOY A
     5  SAFER AND MORE ATTRACTIVE NEIGHBORHOOD THROUGH THE PROVISION OF
     6  INCREASED OR EXPANDED SERVICES, INCLUDING STREET LIGHTING,
     7  STREET CLEANING, STREET MAINTENANCE, PARKS, RECREATIONAL
     8  EQUIPMENT AND FACILITIES, OPEN SPACE AND/OR SECURITY SERVICES.
     9     "NONPROFIT CORPORATION."  A LEGAL ENTITY THAT IS INCORPORATED
    10  WITHIN THIS COMMONWEALTH AND SPECIFIES IN ITS CHARTER OR BYLAWS
    11  THAT NO PART OF THE NET EARNINGS MAY BENEFIT ANY PRIVATE
    12  SHAREHOLDER OR INDIVIDUAL HOLDING INTEREST IN SUCH ENTITY.
    13     "PRIVATE SECURITY OFFICER."  ANY PERSON OR FIRM EMPLOYED BY
    14  THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION FOR
    15  THE PURPOSE OF PROVIDING INCREASED SECURITY OR PROTECTIVE PATROL
    16  SERVICES WITHIN THE NEIGHBORHOOD IMPROVEMENT DISTRICT. THE TERM
    17  MAY INCLUDE OFF-DUTY POLICE OFFICERS PROVIDED THAT THE USE OF
    18  SUCH OFFICERS FOR THIS PURPOSE IS APPROVED BY THE GOVERNING BODY
    19  OF THE MUNICIPALITY IN WHICH THE NEIGHBORHOOD IMPROVEMENT
    20  DISTRICT IS LOCATED OR THE MUNICIPALITY WHERE THE OFFICER IS
    21  EMPLOYED IF DIFFERENT.
    22     "PROJECT."  THE ACQUISITION, DEVELOPMENT, CONSTRUCTION,
    23  IMPROVEMENT, REHABILITATION, OPERATION AND/OR MAINTENANCE OF ANY
    24  BUILDING, FACILITY, EQUIPMENT OR STRUCTURE, BY PURCHASE, LEASE
    25  OR CONTRACT, BY A NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT
    26  ASSOCIATION TO FACILITATE NEIGHBORHOOD AND BUSINESS IMPROVEMENTS
    27  AS AUTHORIZED BY THIS CHAPTER.
    28     "RATIONAL NEXUS."  THE LEGAL PRINCIPLE WHICH REQUIRES THAT
    29  THERE IS A RATIONAL, DEFINABLE BENEFIT WHICH ACCRUES TO ANY
    30  PROPERTY OWNER ASSESSED A FEE FOR SAID BENEFIT IN A NEIGHBORHOOD
    19990H1142B4032                 - 49 -

     1  IMPROVEMENT DISTRICT CREATED UNDER THIS CHAPTER. ALL PROPERTY
     2  OWNERS WITHIN A DESIGNATED NEIGHBORHOOD IMPROVEMENT DISTRICT
     3  PAYING A SPECIAL ASSESSMENT FEE MUST BENEFIT DIRECTLY OR
     4  INDIRECTLY FROM FACILITIES OR SERVICES PROVIDED BY A
     5  NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION WITHIN
     6  THE NEIGHBORHOOD IMPROVEMENT DISTRICT, PROVIDED, HOWEVER, THAT
     7  PROPERTY OWNERS NEED NOT BENEFIT EQUALLY.
     8     "RESIDENTIAL DISTRICT."  A LIMITED, GEOGRAPHICAL AREA
     9  COMPRISED OF REAL PROPERTY CONSISTING PREDOMINANTLY OF BUILDINGS
    10  AND STRUCTURES FOR HOUSING INDIVIDUALS AND FAMILIES, INCLUDING,
    11  BUT NOT LIMITED TO, SINGLE FAMILY DETACHED HOMES, SINGLE FAMILY
    12  SEMI-DETACHED HOMES, TOWNHOUSES, CONDOMINIUMS, APARTMENTS,
    13  MANUFACTURED HOMES, MODULAR HOMES OR ANY COMBINATION OF SAME.
    14     "SERVICE AREA."  THE AREA WITHIN THE BOUNDARIES OF THE
    15  NEIGHBORHOOD IMPROVEMENT DISTRICT ESTABLISHED BY A MUNICIPALITY
    16  UNDER THIS CHAPTER, IN WHICH THE NEIGHBORHOOD IMPROVEMENT
    17  DISTRICT MANAGEMENT ASSOCIATION PROVIDES PROGRAMS, SERVICES AND
    18  IMPROVEMENTS. THE TERM MAY ALSO INCLUDE AN AREA OUTSIDE OF THE
    19  NEIGHBORHOOD IMPROVEMENT DISTRICT WHERE SERVICES ARE BEING
    20  PROVIDED BY THE NEIGHBORHOOD IMPROVEMENT DISTRICT MANAGEMENT
    21  ASSOCIATION UNDER CONTRACT.
    22     "SPECIAL ASSESSMENT FEE."  THE FEE ASSESSED ON PROPERTY
    23  OWNERS WITHIN A NEIGHBORHOOD IMPROVEMENT DISTRICT, LEVIED BY THE
    24  MUNICIPALITY ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT,
    25  UNDER SECTION 504(10), FOR THE PURPOSES OF PROVIDING PROGRAMS,
    26  IMPROVEMENTS AND SERVICES, UNDER SECTION 507.
    27     "SUNSET PROVISION."  THE TERM MEANS A PROVISION IN THE
    28  NEIGHBORHOOD IMPROVEMENT DISTRICT PLAN, UNDER SECTION 505(C),
    29  ESTABLISHING A NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH PROVIDES
    30  FOR THE AUTOMATIC TERMINATION OF THE NEIGHBORHOOD IMPROVEMENT
    19990H1142B4032                 - 50 -

     1  DISTRICT ON A DATE SPECIFIED IN THE NEIGHBORHOOD IMPROVEMENT
     2  DISTRICT PLAN AND IN THE MUNICIPAL ORDINANCE ESTABLISHING THE
     3  NEIGHBORHOOD IMPROVEMENT DISTRICT. THE NEIGHBORHOOD IMPROVEMENT
     4  DISTRICT MAY BE CONTINUED BEYOND THAT DATE, PROVIDED THE
     5  MUNICIPAL ENABLING ORDINANCE CREATING THE ORIGINAL NEIGHBORHOOD
     6  IMPROVEMENT DISTRICT IS REENACTED, FOLLOWING A REVIEW OF THE
     7  NEIGHBORHOOD IMPROVEMENT DISTRICT AND THE NEIGHBORHOOD
     8  IMPROVEMENT DISTRICT MANAGEMENT ASSOCIATION PROGRAMS AND
     9  SERVICES PROVIDED WITHIN THE NEIGHBORHOOD IMPROVEMENT DISTRICT,
    10  BY THE MUNICIPALITY.
    11  SECTION 504.  POWERS OF MUNICIPAL CORPORATION.
    12     EVERY MUNICIPAL CORPORATION SHALL HAVE THE POWER:
    13         (1)  TO ESTABLISH WITHIN THE MUNICIPALITY AN AREA OR
    14     AREAS DESIGNATED AS AN NID.
    15         (2)  TO ESTABLISH AN AUTHORITY TO ADMINISTER THE NID OR
    16     TO DESIGNATE AN EXISTING COMMUNITY DEVELOPMENT CORPORATION OR
    17     OTHER EXISTING NONPROFIT CORPORATION TO ADMINISTER SAME OR TO
    18     CREATE A COMMUNITY DEVELOPMENT CORPORATION OR OTHER NONPROFIT
    19     CORPORATION TO ADMINISTER SAME, UNDER SECTIONS 506 AND 507.
    20         (3)  TO APPROPRIATE AND EXPEND, IN ACCORDANCE WITH THE
    21     SPECIFIC PROVISIONS OF THE MUNICIPAL ENABLING ORDINANCE,
    22     MUNICIPAL FUNDS AS MAY BE REQUIRED TO:
    23             (I)  ACQUIRE BY PURCHASE OR LEASE REAL OR PERSONAL
    24         PROPERTY DEEMED NECESSARY TO EFFECTUATE THE PURPOSES OF
    25         THE NID.
    26             (II)  PREPARE OR HAVE PREPARED PRELIMINARY PLANNING
    27         OR FEASIBILITY STUDIES TO DETERMINE NEEDED IMPROVEMENTS
    28         IN AN NID, INCLUDING, BUT NOT LIMITED TO, CAPITAL
    29         IMPROVEMENTS, TRADITIONAL STREETSCAPE AND BUILDING
    30         RENOVATIONS, RETAINING WALLS, STREET PAVING, STREET
    19990H1142B4032                 - 51 -

     1         LIGHTING, PARKING LOTS, PARKING GARAGES, TREES AND
     2         SHRUBBERY, PEDESTRIAN WALKS, SEWERS, WATER LINES, REST
     3         AREAS, ACQUISITION, REHABILITATION OR DEMOLITION OF
     4         BLIGHTED BUILDINGS AND STRUCTURES, GRAFFITI REMOVAL,
     5         SECURITY, MARKETING, PROMOTIONS, ADVERTISING, BUSINESS
     6         RETENTION AND RECRUITMENT ACTIVITIES, MASTER LEASING AND
     7         PROPERTY MANAGEMENT, JOINT ADVERTISING, RESEARCH AND
     8         PLANNING, AS WELL AS THE PROVISION OF ADDITIONAL SERVICES
     9         TO SUPPLEMENT, NOT REPLACE, EXISTING MUNICIPAL SERVICES
    10         PROVIDED WITHIN THE NID.
    11         (4)  TO ADVANCE FUNDS TO A NIDMA AS MAY BE REQUIRED TO
    12     CARRY OUT THE PURPOSES OF THIS CHAPTER.
    13         (5)  TO COLLECT SPECIAL PROPERTY ASSESSMENTS ON BEHALF OF
    14     THE NIDMA LEVIED ON DESIGNATED PROPERTY OWNERS WITHIN THE
    15     NID, AND TO EMPLOY ANY LEGAL METHODS TO INSURE COLLECTION OF
    16     THE ASSESSMENTS.
    17         (6)  TO ACQUIRE BY GIFT, PURCHASE OR EMINENT DOMAIN,
    18     LAND, REAL PROPERTY, OR RIGHTS-OF WAY, WHICH MAY BE NEEDED
    19     FOR THE PURPOSES OF MAKING PHYSICAL IMPROVEMENTS WITHIN THE
    20     NID.
    21         (7)  TO ISSUE BONDS, NOTES OR GUARANTEES, IN ACCORDANCE
    22     WITH THE PROVISIONS OF GENERAL LAWS IN THE AMOUNTS AND FOR
    23     THE PERIODS NECESSARY, TO FINANCE NEEDED IMPROVEMENTS WITHIN
    24     ANY NID.
    25         (8)  TO REVIEW ALL PROPOSED EXPENDITURES OF FUNDS WITHIN
    26     NIDS BY NIDMAS AND SUGGEST CHANGES TO SAME WHERE A NONPROFIT
    27     CORPORATION IS THE NIDMA.
    28         (9)  TO INCLUDE A SUNSET PROVISION OF NO LESS THAN FIVE
    29     YEARS IN THE MUNICIPAL ENABLING ORDINANCE CREATING THE NID
    30     AND IN THE CONTRACT WITH THE NIDMA.
    19990H1142B4032                 - 52 -

     1         (10)  TO LEVY AN ASSESSMENT FEE ON PROPERTY OWNERS
     2     LOCATED WITHIN AN NID NEEDED TO FINANCE ADDITIONAL
     3     SUPPLEMENTAL PROGRAMS, SERVICES AND IMPROVEMENTS TO BE
     4     PROVIDED OR MADE BY THE NIDMA.
     5  SECTION 505.  CREATION OF NEIGHBORHOOD IMPROVEMENT DISTRICT.
     6     (A)  ESTABLISHMENT.--
     7         (1)  THE GOVERNING BODY OF THE MUNICIPALITY, OR ANY
     8     MUNICIPAL BUSINESSES, OR RESIDENTS, OR COMBINATION THEREOF,
     9     MAY INITIATE ACTION TO ESTABLISH AN NID OR NIDS WITHIN THE
    10     MUNICIPALITY, UNDER THIS CHAPTER.
    11         (2)  IN THE CASE OF BUSINESSES, OR RESIDENTS, OR BOTH
    12     DESIRING TO ESTABLISH AN NID, WHERE THE MUNICIPALITY HAS NOT
    13     TAKEN ACTION TO DO SO, THE GOVERNING BODY OF THE MUNICIPALITY
    14     MAY BE PETITIONED TO ESTABLISH AN NID, UNDER THE PROCEDURES
    15     PROVIDED FOR BY THIS CHAPTER.
    16         (3)  IN NO CASE, WHERE THE GOVERNING BODY OF A
    17     MUNICIPALITY IS PETITIONED TO ESTABLISH AN NID UNDER
    18     PARAGRAPH (2), SHALL THE MUNICIPALITY BE REQUIRED TO
    19     ESTABLISH AN NID.
    20     (B)  SPECIFIC PROCEDURES.--
    21         (1)  A COPY OF EVERYTHING REQUIRED UNDER THIS SECTION, AS
    22     WELL AS THE DATE, LOCATION AND TIME OF ANY PUBLIC HEARING
    23     REQUIRED BY THIS CHAPTER, SHALL BE PROVIDED BY THE MUNICIPAL
    24     CORPORATION TO ALL PROPERTY OWNERS AND LESSEES OF PROPERTY
    25     OWNERS LOCATED IN THE PROPOSED NID, AT LEAST 30 DAYS PRIOR TO
    26     THE FIRST PUBLIC HEARING REQUIRED BY THIS SECTION.
    27         (2)  AT LEAST ONE PUBLIC HEARING, NO EARLIER THAN 15 DAYS
    28     APART, FOR THE PURPOSE OF RECEIVING PUBLIC COMMENT FROM
    29     AFFECTED PROPERTY OWNERS WITHIN THE PROPOSED NID, ON THE
    30     PROPOSED NIDP, SHALL BE HELD BY THE MUNICIPALITY BEFORE THE
    19990H1142B4032                 - 53 -

     1     ESTABLISHMENT OF AN NID. NOTICE OF THE HEARING SHALL BE
     2     ADVERTISED AT LEAST TEN DAYS PRIOR THERETO IN A NEWSPAPER OF
     3     GENERAL CIRCULATION IN THE MUNICIPALITY.
     4         (3)  ANY OBJECTIONS BY PROPERTY OWNERS WITHIN THE
     5     PROPOSED NID MUST BE MADE IN WRITING, BY PERSONS REPRESENTING
     6     THE OWNERSHIP OF 40%, IN NUMBERS, OF THE BENEFITED PROPERTIES
     7     WITHIN THE NID. OBJECTIONS MUST BE SIGNED BY THE PROPERTY
     8     OWNER AND FILED IN THE OFFICE OF THE CLERK FOR THE GOVERNING
     9     BODY OF THE MUNICIPALITY IN WHICH THE NID IS PROPOSED.
    10     (C)  CONTENTS OF PRELIMINARY PLAN.--THE PLAN SHALL INCLUDE
    11  THE FOLLOWING:
    12         (1)  A MAP INDICATING THE BOUNDARIES BY STREET OF THE
    13     PROPOSED NID, HOWEVER, A DESIGNATED PROPERTY MAY NOT BE
    14     INCLUDED IN MORE THAN ONE NID.
    15         (2)  A WRITTEN REPORT FROM THE MUNICIPALITY CONTAINING:
    16             (I)  THE NAME OF THE PROPOSED DISTRICT.
    17             (II)  A DETAILED DESCRIPTION OF THE SERVICE AREAS OF
    18         THE PROPOSED DISTRICT.
    19             (III)  A LIST OF ALL PROPERTIES TO BE ASSESSED.
    20             (IV)  A LIST OF PROPOSED IMPROVEMENTS WITHIN THE NID,
    21         AND THEIR ESTIMATED COST.
    22             (V)  A PROPOSED BUDGET FOR THE FIRST FISCAL YEAR,
    23         INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: PERSONNEL
    24         AND ADMINISTRATION, PROGRAMS AND SERVICES, MAINTENANCE
    25         AND OPERATION, AND CAPITAL EXPENDITURES.
    26             (VI)  THE PROPOSED REVENUE SOURCES FOR FINANCING ALL
    27         PROPOSED IMPROVEMENTS, PROGRAMS AND SERVICES.
    28             (VII)  THE ESTIMATED TIME FOR IMPLEMENTATION AND
    29         COMPLETION OF ALL PROPOSED IMPROVEMENTS, PROGRAMS AND
    30         SERVICES.
    19990H1142B4032                 - 54 -

     1             (VIII)  A STATEMENT IDENTIFYING THE ADMINISTRATIVE
     2         BODY WHICH WILL GOVERN AND ADMINISTER THE NID.
     3             (IX)  ANY OTHER INFORMATION, INCLUDING THE STATUTORY
     4         AUTHORITY, OR, IN THE CASE OF A NONPROFIT CORPORATION,
     5         THE BYLAWS, WHICH DESCRIBE THE POWERS AND DUTIES OF AND
     6         THE METHOD FOR MAKING DECISIONS BY THE NIDMA.
     7             (X)  THE METHOD OF DETERMINING THE AMOUNT OF THE
     8         ASSESSMENT FEE TO BE LEVIED ON PROPERTY OWNERS WITHIN THE
     9         NID UNDER SECTION 507.
    10         (3)  IN ADDITION, THE PLAN SHALL ALSO:
    11             (I)  IDENTIFY IN DETAIL THE SPECIFIC DUTIES AND
    12         RESPONSIBILITIES OF BOTH THE NIDMA AND THE MUNICIPAL
    13         CORPORATION WITH RESPECT TO THE NID.
    14             (II)  REQUIRE THAT A WRITTEN AGREEMENT BE SIGNED BY
    15         THE MUNICIPAL CORPORATION AND THE NIDMA DESCRIBING IN
    16         DETAIL THEIR RESPECTIVE DUTIES AND RESPONSIBILITIES.
    17             (III)  ALLOW FOR AND ENCOURAGE TAX-EXEMPT PROPERTY
    18         OWNERS LOCATED WITHIN THE NID TO PROVIDE IN-KIND SERVICES
    19         OR A FINANCIAL CONTRIBUTION TO THE NIDMA, IF NOT
    20         ASSESSED, IN LIEU OF A PROPERTY ASSESSMENT FEE.
    21             (IV)  REQUIRE IN THE AGREEMENT BETWEEN THE MUNICIPAL
    22         CORPORATION AND THE NIDMA THAT THE MUNICIPALITY MUST
    23         MAINTAIN THE SAME LEVEL OF MUNICIPAL PROGRAMS AND
    24         SERVICES PROVIDED WITHIN THE NID BEFORE NID DESIGNATION
    25         AS AFTER NID DESIGNATION.
    26             (V)  ALLOW THE MUNICIPAL CORPORATION THE RIGHT TO
    27         INCLUDE IN THE AGREEMENT WITH THE NIDMA AND IN THE
    28         ENABLING ORDINANCE ESTABLISHING THE NID A SUNSET
    29         PROVISION OF NO LESS THAN FIVE YEARS FOR RENEWAL OF THE
    30         AGREEMENT.
    19990H1142B4032                 - 55 -

     1             (VI)  REQUIRE IN THE AGREEMENT WITH THE NIDMA THAT
     2         THE MUNICIPALITY ESTABLISHING AN NID SHALL BE RESPONSIBLE
     3         FOR THE COLLECTION OF ALL PROPERTY ASSESSMENT FEES LEVIED
     4         WITHIN THE NID, IF SO DESIRED BY THE NIDMA.
     5             (VII)  PROVIDE THAT A NEGATIVE VOTE OF AT LEAST 40%
     6         OF THE PROPERTY OWNERS WITHIN THE NID, PROPOSED IN THE
     7         FINAL PLAN, SHALL BE REQUIRED TO DEFEAT THE ESTABLISHMENT
     8         OF THE PROPOSED NID BY FILING OBJECTIONS WITH THE CLERK
     9         FOR THE GOVERNING BODY OF THE MUNICIPALITY WITHIN 45 DAYS
    10         OF PRESENTATION OF THE FINAL PLAN, WHERE THE GOVERNING
    11         BODY OF MUNICIPALITY IS INCLINED TO ESTABLISH THE NID.
    12     (D)  FINAL PLAN.--PRIOR TO THE ESTABLISHMENT OF AN NID, THE
    13  MUNICIPALITY SHALL SUBMIT A REVISED FINAL PLAN TO PROPERTY
    14  OWNERS LOCATED WITHIN THE PROPOSED NID, WHICH INCORPORATES
    15  CHANGES MADE TO THE PLAN, BASED ON COMMENTS FROM AFFECTED
    16  PROPERTY OWNERS WITHIN THE NID, PROVIDED AT THE PUBLIC HEARINGS
    17  OR AT SOME OTHER TIME. CHANGES TO THE FINAL PLAN, WHICH DIFFER
    18  FROM THE PRELIMINARY PLAN, SHALL ALSO BE SO INDICATED IN AN
    19  EASILY DISCERNIBLE METHOD FOR THE READER, INCLUDING, BUT NOT
    20  LIMITED TO, CHANGES BEING IN BOLDFACED OR ITALICIZED TYPE.
    21     (E)  PUBLIC HEARING.--AT LEAST ONE PUBLIC HEARING FOR THE
    22  PURPOSE OF RECEIVING PUBLIC COMMENT ON ANY REVISIONS TO THE
    23  PRELIMINARY PLAN MADE FOLLOWING SUGGESTIONS BY AFFECTED PROPERTY
    24  OWNERS WITHIN THE PROPOSED NID AND REFLECTED IN THE FINAL NIDP
    25  SHALL BE HELD BY THE MUNICIPAL CORPORATION BEFORE ENACTING AN
    26  ORDINANCE ESTABLISHING AN NID. NOTICE OF THE HEARING SHALL BE
    27  ADVERTISED AT LEAST TEN DAYS PRIOR THERETO IN A NEWSPAPER OF
    28  GENERAL CIRCULATION IN THE MUNICIPALITY.
    29     (F)  VETO OF FINAL PLAN FOR NID.--
    30         (1)  FOLLOWING THE LAST PUBLIC HEARING REQUIRED UNDER
    19990H1142B4032                 - 56 -

     1     SUBSECTION (E) OR UNDER SUBSECTION (G), IF AN AMENDMENT TO
     2     THE FINAL PLAN, AFFECTED PROPERTY OWNERS LOCATED WITHIN A
     3     PROPOSED NID SHALL HAVE 45 DAYS FROM THE DATE OF THE HEARING
     4     TO OBJECT TO AND DISAPPROVE THE FINAL PLAN OR ANY AMENDMENT
     5     TO THE FINAL PLAN UNDER THE REQUIREMENTS OF SUBSECTION
     6     (B)(3).
     7         (2)  IF 40% OR MORE OF THE AFFECTED PROPERTY OWNERS
     8     WITHIN THE PROPOSED NID FAIL TO REGISTER THEIR DISAPPROVAL OF
     9     THE FINAL PLAN OR AMENDMENT TO THE FINAL PLAN IN WRITING WITH
    10     THE CLERK OF THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH
    11     THE NID IS PROPOSED, THE GOVERNING BODY OF THE MUNICIPALITY
    12     MAY, FOLLOWING THE 45-DAY PERIOD, ENACT A MUNICIPAL ORDINANCE
    13     ESTABLISHING AN NID UNDER THIS CHAPTER, OR IN THE CASE OF AN
    14     AMENDMENT TO THE FINAL PLAN, ADOPT ANY AMENDMENTS TO THE
    15     ORDINANCE.
    16     (G)  AMENDMENTS TO FINAL PLAN.--
    17         (1)  THE FINAL PLAN MAY BE AMENDED BY THE NIDMA ANY TIME
    18     AFTER THE ESTABLISHMENT OF AN NID, PURSUANT TO THE PROVISIONS
    19     OF THIS CHAPTER, UPON THE RECOMMENDATION OF THE NIDMA BOARD,
    20     PROVIDED THERE IS CONCURRENCE WITH 60% OF THE PROPERTY OWNERS
    21     WITHIN THE NID.
    22         (2)  AMENDMENTS TO THE FINAL PLAN WHICH ALSO REQUIRE THE
    23     APPROVAL OF THE GOVERNING BODY OF THE MUNICIPALITY
    24     ESTABLISHING THE NID, INCLUDE:
    25             (I)  SUBSTANTIALLY CHANGED OR ADDED PROGRAMS,
    26         IMPROVEMENTS AND/OR SERVICES TO BE PROVIDED IN THE NID.
    27             (II)  INCREASED EXPENDITURES AFFECTING MORE THAN 25%
    28         OF THE TOTAL NIDMA BUDGET FOR THE FISCAL YEAR.
    29             (III)  INCURRING INCREASED INDEBTEDNESS.
    30             (IV)  CHANGING THE ASSESSMENT FEE STRUCTURE LEVIED ON
    19990H1142B4032                 - 57 -

     1         PROPERTY OWNERS IN THE NID.
     2             (V)  CHANGING THE LEGAL ENTITY (NIDMA) WHICH PROVIDES
     3         PROGRAMS, IMPROVEMENTS AND SERVICES WITHIN THE NID.
     4             (VI)  CHANGING THE NID SERVICE AREA BOUNDARY.
     5     PRIOR TO THE GOVERNING BODY OF THE MUNICIPALITY APPROVING ANY
     6     OF THE CHANGES IN THIS PARAGRAPH, THE GOVERNING BODY SHALL
     7     HOLD AT LEAST ONE PUBLIC HEARING TO DETERMINE THAT SUCH
     8     CHANGES ARE IN THE PUBLIC INTEREST AS IT RELATES TO AFFECTED
     9     PROPERTY OWNERS WITHIN THE NID.
    10         (3)  THE MUNICIPALITY SHALL PROVIDE PUBLIC NOTICE OF THE
    11     HEARING FOR ANY AMENDMENTS, BY PUBLICATION OF A NOTICE, IN AT
    12     LEAST ONE NEWSPAPER HAVING A GENERAL CIRCULATION IN THE NID,
    13     SPECIFYING THE TIME AND THE PLACE OF SUCH HEARING AND THE
    14     AMENDMENTS TO BE CONSIDERED. THIS NOTICE SHALL BE PUBLISHED
    15     ONCE AT LEAST 10 DAYS PRIOR TO THE DATE OF THE HEARING.
    16         (4)  THE GOVERNING BODY OF THE MUNICIPALITY MAY, WITHIN
    17     30 DAYS FOLLOWING THE PUBLIC HEARING AND AT ITS SOLE
    18     DISCRETION, APPROVE OR DISAPPROVE OF ANY AMENDMENTS TO THE
    19     PLAN. IF APPROVED, SUCH AMENDMENTS SHALL BE EFFECTIVE UPON
    20     THE DATE OF SUCH APPROVAL.
    21         (5)  PRIOR TO THE ADOPTION OF ANY AMENDMENT TO THE NID
    22     BOUNDARY WHICH INCREASES THE SIZE OF THE NID, ANY OWNER OF
    23     PROPERTY TO BE ADDED TO THE NID SHALL BE NOTIFIED OF THE
    24     DATE, TIME AND LOCATION OF THE PUBLIC HEARING ON THE PROPOSED
    25     AMENDMENT TO THE FINAL PLAN, AND PROVIDED ALL INFORMATION
    26     REQUIRED BY SUBSECTION (C).
    27  SECTION 506.  CREATION OF NEIGHBORHOOD IMPROVEMENT DISTRICT
    28                 MANAGEMENT ASSOCIATION.
    29     (A)  ASSOCIATION DESIGNATED.--WHEN A MUNICIPALITY ESTABLISHES
    30  AN NID UNDER THIS CHAPTER, A NEIGHBORHOOD IMPROVEMENT DISTRICT
    19990H1142B4032                 - 58 -

     1  MANAGEMENT ASSOCIATION SHALL BE DESIGNATED BY THE GOVERNING BODY
     2  OF THE MUNICIPALITY IN WHICH THE NID IS TO BE LOCATED TO
     3  ADMINISTER PROGRAMS, IMPROVEMENTS AND SERVICES WITHIN THE NID.
     4     (B)  ADMINISTRATION.--
     5         (1)  NIDS CREATED PURSUANT TO THIS CHAPTER SHALL BE
     6     ADMINISTERED BY AN NIDMA WHICH SHALL BE AN AUTHORITY CREATED
     7     PURSUANT TO THE ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN
     8     AS THE MUNICIPALITY AUTHORITIES ACT OF 1945, AN EXISTING
     9     NONPROFIT DEVELOPMENT CORPORATION, AN EXISTING NONPROFIT
    10     CORPORATION OR A NONPROFIT DEVELOPMENT CORPORATION OR
    11     NONPROFIT CORPORATION ESTABLISHED BY THE GOVERNING BODY OR
    12     AUTHORIZED TO BE ESTABLISHED BY THE GOVERNING BODY OF THE
    13     MUNICIPALITY IN WHICH THE NID IS TO BE LOCATED, TO ADMINISTER
    14     THE NIDP.
    15         (2)  IF AN ACTIVE NONPROFIT DEVELOPMENT CORPORATION
    16     ALREADY EXISTS WITHIN THE GEOGRAPHIC BOUNDARIES OF THE NID
    17     AND FORMALLY INDICATES ITS INTEREST TO THE GOVERNING BODY OF
    18     THE MUNICIPALITY TO BECOME THE DESIGNATED NIDMA, THE
    19     GOVERNING BODY OF THE MUNICIPALITY SHALL GRANT THAT REQUEST
    20     UNLESS 40% OR MORE OF THE AFFECTED PROPERTY OWNERS WITHIN THE
    21     PROPOSED NID REGISTER THEIR DISAPPROVAL OF THIS DESIGNATION
    22     IN WRITING WITH THE CLERK OF THE GOVERNING BODY WITHIN A 45-
    23     DAY PERIOD FOLLOWING THE FORMAL WRITTEN REQUEST FOR
    24     DESIGNATION BY THE NONPROFIT DEVELOPMENT CORPORATION TO
    25     BECOME THE NIDMA.
    26     (C)  POWERS.--AN NIDMA CREATED UNDER THIS CHAPTER SHALL
    27  ASSUME ALL POWERS PROVIDED FOR IN SECTION 507 IMMEDIATELY UPON
    28  THE EFFECTIVE DATE OF THE MUNICIPAL ORDINANCE ENACTED UNDER
    29  SECTION 504 CREATING AN NID.
    30     (D)  BOARD.--EVERY NIDMA SHALL HAVE AN ADMINISTRATIVE BOARD.
    19990H1142B4032                 - 59 -

     1         (1)  WHERE AN AUTHORITY CREATED PURSUANT TO THE
     2     MUNICIPALITY AUTHORITIES ACT OF 1945 SERVES AS THE NIDMA, THE
     3     BOARD SHALL BE APPOINTED PURSUANT TO THE MUNICIPALITY
     4     AUTHORITIES ACT OF 1945.
     5         (2)  WHERE AN EXISTING NONPROFIT DEVELOPMENT CORPORATION
     6     OR OTHER NONPROFIT CORPORATION IS TO SERVE AS THE NIDMA, THE
     7     BOARD SHALL BE APPOINTED ACCORDING TO THE BYLAWS OF THE NIDMA
     8     FILED WITH THE DEPARTMENT OF STATE.
     9         (3)  WHERE A NONPROFIT DEVELOPMENT CORPORATION OR OTHER
    10     NONPROFIT CORPORATION IS ESTABLISHED TO SERVE AS THE NIDMA
    11     FOR AN NID, THE BOARD SHALL BE COMPRISED OF AN ODD NUMBER OF
    12     MEMBERS, BETWEEN FIVE AND NINE, WITH AT LEAST ONE MEMBER
    13     REPRESENTING THE MUNICIPAL CORPORATION IN WHICH THE NID IS
    14     LOCATED.
    15         (4)  IN ALL CASES, NIDMA BOARDS SHALL INCLUDE A
    16     REPRESENTATIVE OF PROPERTY OWNERS LOCATED IN THE NID,
    17     BUSINESS OWNERS LOCATED IN THE NID AND ANY INSTITUTIONS
    18     LOCATED IN THE NID. INSTITUTIONAL MEMBERS MAY APPOINT A
    19     DESIGNEE TO REPRESENT THEM. ALL BOARD MEMBERS NEED NOT BE
    20     RESIDENTS OF THE NID.
    21  SECTION 507.  POWERS OF NEIGHBORHOOD IMPROVEMENT DISTRICT
    22                 MANAGEMENT ASSOCIATION.
    23     (A)  GENERAL POWERS.--A NIDMA SHALL HAVE, IN ADDITION TO ANY
    24  OTHER POWERS PROVIDED PURSUANT TO THE ACT OF MAY 2, 1945
    25  (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY AUTHORITIES ACT OF
    26  1945, WHERE THE NIDMA IS AN AUTHORITY, OR IN ADDITION TO ANY
    27  OTHER POWERS PROVIDED PURSUANT TO THE CHARTER ESTABLISHING A
    28  NONPROFIT DEVELOPMENT CORPORATION OR OTHER NONPROFIT
    29  CORPORATION, WHERE THE NIDMA IS A NONPROFIT DEVELOPMENT
    30  CORPORATION OR OTHER NONPROFIT CORPORATION, THE POWER TO:
    19990H1142B4032                 - 60 -

     1         (1)  SUE OR BE SUED, IMPLEAD OR BE IMPLEADED, COMPLAIN
     2     AND DEFEND IN ALL COURTS.
     3         (2)  EMPLOY AN EXECUTIVE DIRECTOR OR ADMINISTRATOR AND
     4     ANY NECESSARY SUPPORTING STAFF OR CONTRACT FOR THE PROVISION
     5     OF SAME.
     6         (3)  PREPARE PLANNING OR FEASIBILITY STUDIES OR CONTRACT
     7     FOR THE PREPARATION OF SAME, TO DETERMINE NEEDED CAPITAL
     8     IMPROVEMENTS OR ADMINISTRATIVE PROGRAMS AND SERVICES WITHIN
     9     THE NID.
    10         (4)  MAKE CAPITAL IMPROVEMENTS OR PROVIDE ADMINISTRATIVE
    11     PROGRAMS AND SERVICES WITHIN AN NID.
    12         (5)  PURCHASE, OWN, CONSTRUCT, RENOVATE, DEVELOP,
    13     OPERATE, REHABILITATE, MANAGE, SELL AND/OR DISPOSE OF REAL
    14     PROPERTY.
    15         (6)  CONTRACT WITH EXISTING BUSINESSES WITHIN THE NID.
    16         (7)  CONTRACT FOR THE PROVISION OF PRODUCTS OR SERVICES
    17     BY THE NIDMA TO CLIENTS LOCATED INSIDE AND OUTSIDE OF THE
    18     NID, INCLUDING BILLING AND COLLECTION OF ASSESSMENT FEES BY
    19     ANOTHER NIDMA.
    20         (8)  APPROPRIATE AND EXPEND NID FUNDS WHICH WOULD INCLUDE
    21     ANY FEDERAL, STATE OR MUNICIPAL FUNDS RECEIVED BY THE NIDMA.
    22     THE FUNDS SHALL BE EXPENDED IN ACCORDANCE WITH ANY SPECIFIC
    23     PROVISIONS CONTAINED IN THE MUNICIPAL ENABLING ORDINANCE
    24     ESTABLISHING THE NID AND MAY BE USED:
    25             (I)  TO ACQUIRE BY PURCHASE OR LEASE REAL OR PERSONAL
    26         PROPERTY TO EFFECTUATE THE PURPOSES OF THIS CHAPTER,
    27         INCLUDING MAKING COMMON IMPROVEMENTS WITHIN THE NID,
    28         INCLUDING, BUT NOT LIMITED TO, SIDEWALKS, RETAINING
    29         WALLS, STREET PAVING, PARKS, RECREATIONAL EQUIPMENT AND
    30         FACILITIES, OPEN SPACE, STREET LIGHTING, PARKING LOTS,
    19990H1142B4032                 - 61 -

     1         PARKING GARAGES, TREES AND SHRUBBERY, PEDESTRIAN WALKS,
     2         SEWERS, WATER LINES, REST AREAS AND THE ACQUISITION,
     3         REHABILITATION OR DEMOLITION OF BLIGHTED BUILDINGS OR
     4         COMPARABLE STRUCTURES.
     5             (II)  TO PROVIDE FREE OR REDUCED-FEE PARKING FOR
     6         CUSTOMERS OF BUSINESSES WITHIN THE NID; TRANSPORTATION-
     7         RELATED EXPENDITURES, PUBLIC RELATIONS PROGRAMS, GROUP
     8         ADVERTISING AND NID MAINTENANCE AND SECURITY SERVICES.
     9             (III)  TO IMPOSE SPECIAL ASSESSMENT FEES.
    10         (9)  SOLICIT IN-KIND SERVICES OR FINANCIAL CONTRIBUTIONS
    11     FROM TAX-EXEMPT PROPERTY OWNERS WITHIN THE NID IN LIEU OF
    12     PROPERTY ASSESSMENT FEES. THIS MAY INCLUDE ENTERING INTO
    13     VOLUNTARY MULTIYEAR AGREEMENTS (VMAS) BETWEEN THE NIDMA AND
    14     TAX-EXEMPT PROPERTY OWNERS LOCATED WITHIN AN NID, FOR THE
    15     PROVISION OF SAME.
    16         (10)  IMPOSE LIENS ON PROPERTY FOR THE NONPAYMENT OF
    17     PROPERTY ASSESSMENTS. NIDS ADMINISTERED BY NONPROFIT
    18     CORPORATIONS WOULD HAVE ANY SUCH LIENS FILED BY THE MUNICIPAL
    19     CORPORATION.
    20         (11)  HIRE ADDITIONAL OFF-DUTY POLICE OFFICERS OR PRIVATE
    21     SECURITY OFFICERS, WHOSE PATROL AREA RESPONSIBILITIES WOULD
    22     BE LIMITED TO THE GEOGRAPHICAL AREA INCORPORATED WITHIN THE
    23     DESIGNATED NID SERVICE AREA AND WHOSE RESPONSIBILITY WOULD BE
    24     TO SUPPORT EXISTING MUNICIPAL AND VOLUNTEER EFFORTS AIMED AT
    25     REDUCING CRIME AND IMPROVING SECURITY IN THE NID.
    26         (12)  DESIGNATE A DISTRICT ADVISORY COMMITTEE, REFERRED
    27     TO AS THE DAC, FOR EACH NID ESTABLISHED WITHIN THE
    28     MUNICIPALITY. EACH DAC SHALL CONSIST OF AN ODD NUMBER OF
    29     MEMBERS, BETWEEN FIVE AND NINE, WHO SHALL BE REPRESENTATIVE
    30     OF THE NEIGHBORHOOD'S CHARACTER, INCLUDING, BUT NOT LIMITED
    19990H1142B4032                 - 62 -

     1     TO, AGE, SEX AND CULTURAL DIVERSITY.
     2     (B)  ASSESSMENTS.--
     3         (1)  THE NIDMA SHALL, UPON APPROVAL BY THE GOVERNING BODY
     4     OF THE MUNICIPALITY, HAVE THE POWER TO ASSESS PROPERTY OWNERS
     5     WITHIN THE NID A SPECIAL PROPERTY ASSESSMENT FEE. REVENUES
     6     FROM THE FEE SHALL BE ACCOUNTED FOR AND USED BY THE NIDMA TO
     7     MAKE IMPROVEMENTS AND PROVIDE PROGRAMS AND SERVICES WITHIN
     8     THE NID AS AUTHORIZED BY THIS CHAPTER. WHERE THE DISTRICT
     9     ESTABLISHED IS A BID, THE NIDMA SHALL HAVE THE AUTHORITY TO
    10     EXEMPT RESIDENTIAL PROPERTY OWNERS FROM ANY SPECIAL
    11     ASSESSMENT FEES LEVIED.
    12         (2)  ALL ASSESSMENTS AUTHORIZED UNDER THIS SECTION SHALL
    13     BE CALCULATED USING JANUARY 1 AS THE FIRST DAY OF THE FISCAL
    14     YEAR.
    15         (3)  ALL SPECIAL PROPERTY ASSESSMENT FEES SHALL BE BASED
    16     UPON THE ESTIMATED COST OF THE PROGRAMS, IMPROVEMENTS OR
    17     SERVICES TO BE PROVIDED IN SUCH NID AS STATED IN THE FINAL
    18     PLAN UNDER SECTION 505(D). IN NO CASE SHALL THE AGGREGATE
    19     AMOUNT OF ALL FEES LEVIED BY THE NIDMA DURING THE YEAR EXCEED
    20     THE ESTIMATED COST OF PROPOSED PROGRAMS, IMPROVEMENTS AND
    21     SERVICES FOR THE YEAR.
    22         (4)  IN THE CASE OF AN NID WHICH CONTAINS A COMBINATION
    23     OF BUSINESS, RESIDENTIAL, INDUSTRIAL AND/OR INSTITUTIONAL
    24     AREAS AND USES, A WEIGHTED ASSESSMENT MAY BE INSTITUTED. IN
    25     SUCH CASE, THE FEE LEVIED ON PROPERTY OWNERS GENERALLY MAY BE
    26     WEIGHTED HIGHER FOR BUSINESS, INDUSTRIAL OR INSTITUTIONAL
    27     PROPERTIES THAN THAT LEVIED ON RESIDENTIAL PROPERTY OWNERS,
    28     PROVIDED THE BASIS FOR THE CALCULATION OF THE FEE MEETS THE
    29     RATIONAL NEXUS TEST.
    30         (5)  THE TOTAL COSTS OF IMPROVEMENTS, PROGRAMS AND
    19990H1142B4032                 - 63 -

     1     ADMINISTRATIVE SERVICES PROVIDED BY THE NIDMA SHALL BE
     2     ASSESSED TO ALL DESIGNATED PROPERTIES WITHIN THE NID BY ONE
     3     OF THE FOLLOWING METHODS:
     4             (I)  AN ASSESSMENT DETERMINED BY MULTIPLYING THE
     5         TOTAL SERVICE AND IMPROVEMENT COSTS BY THE RATIO OF THE
     6         ASSESSED VALUE OF THE BENEFITED PROPERTY TO THE TOTAL
     7         ASSESSED VALUATION OF ALL DESIGNATED BENEFITED PROPERTIES
     8         IN THE NID.
     9             (II)  AN ASSESSMENT UPON THE SEVERAL PROPERTIES IN
    10         THE NID IN PROPORTION TO BENEFITS AS ASCERTAINED BY
    11         VIEWERS APPOINTED IN ACCORDANCE WITH LAW.
    12             (III)  ANY METHOD THAT EQUITABLY APPORTIONS COSTS
    13         AMONG BENEFITING PROPERTIES.
    14             (IV)  IN THE CASE OF IMPROVEMENTS BENEFITING
    15         PROPERTIES ABUTTING THE NID BY THE FRONT-FOOT METHOD,
    16         WITH EQUITABLE ADJUSTMENTS FOR CORNER PROPERTIES AND
    17         OTHER CASES PROVIDED FOR IN THE MUNICIPAL ORDINANCE. ANY
    18         PROPERTY WHICH CANNOT BE EQUITABLY ASSESSED BY THE FRONT-
    19         FOOT METHOD MAY BE ASSESSED BY ANY OF THE ABOVE METHODS.
    20     (C)  PAYMENT.--THE GOVERNING BODY MAY BY ORDINANCE AUTHORIZE
    21  THE PAYMENT OF THE ASSESSMENT IN EQUAL ANNUAL OR MORE FREQUENT
    22  INSTALLMENTS, OVER SUCH TIME AND BEARING INTEREST AT THE RATE
    23  SPECIFIED IN THE MUNICIPAL ORDINANCE. IF BONDS HAVE BEEN ISSUED
    24  AND SOLD, OR NOTES OR GUARANTEES HAVE BEEN GIVEN OR ISSUED, TO
    25  PROVIDE FOR THE COST OF THE SERVICES AND IMPROVEMENTS, THE
    26  ASSESSMENT IN EQUAL INSTALLMENTS SHALL NOT BE PAYABLE BEYOND THE
    27  TERM FOR WHICH THE BONDS, NOTES OR GUARANTEES ARE PAYABLE.
    28     (D)  LIENS.--
    29         (1)  NOTWITHSTANDING THE FILING OF THE CLAIMS, ALL
    30     ASSESSMENTS WHICH ARE MADE PAYABLE IN INSTALLMENTS SHALL
    19990H1142B4032                 - 64 -

     1     CONSTITUTE LIENS AND ENCUMBRANCES UPON THE RESPECTIVE
     2     BENEFITED PROPERTIES AT THE BEGINNING OF EACH CALENDAR YEAR,
     3     EXCEPT AS PROVIDED IN SUBSECTION (C), AND ONLY IN AN AMOUNT
     4     EQUAL TO THE SUM OF:
     5             (I)  THE ANNUAL OR OTHER INSTALLMENTS BECOMING
     6         PAYABLE IN SUCH YEAR, WITH INTEREST AND PENALTIES, IF
     7         ANY, THEREON; AND
     8             (II)  THE TOTAL OF ALL INSTALLMENTS, WITH INTEREST
     9         AND PENALTIES THEREON, WHICH BECAME DUE DURING PRIOR
    10         YEARS AND WHICH REMAIN DUE AND UNPAID AT THE BEGINNING OF
    11         THE CURRENT YEAR.
    12         (2)  IN THE CASE OF DEFAULT IN THE PAYMENT OF ANY
    13     INSTALLMENT AND INTEREST FOR A PERIOD OF 90 DAYS AFTER THE
    14     PAYMENT BECOMES DUE, THE ASSESSMENT ORDINANCE MAY PROVIDE
    15     EITHER FOR THE ENTIRE ASSESSMENT, WITH ACCRUED INTEREST AND
    16     PENALTIES TO BECOME DUE AND BECOME A LIEN FROM THE DUE DATE
    17     OF THE INSTALLMENT, OR MAY PROVIDE SOLELY FOR THE ENFORCEMENT
    18     OF THE CLAIM AS TO THE OVERDUE INSTALLMENT, WITH INTEREST AND
    19     PENALTIES, IN WHICH CASE THE ORDINANCE SHALL FURTHER PROVIDE
    20     THAT, IF ANY INSTALLMENT OR PORTION THEREOF REMAINS DUE AND
    21     UNPAID FOR ONE YEAR AFTER IT HAS BECOME DUE AND PAYABLE, THEN
    22     THE ENTIRE ASSESSMENT WITH ACCRUED INTEREST AND PENALTIES
    23     SHALL BECOME DUE AND BECOME A LIEN FROM THE DUE DATE OF THE
    24     INSTALLMENT.
    25         (3)  NO ACTION TAKEN TO ENFORCE A CLAIM FOR ANY
    26     INSTALLMENT OR INSTALLMENTS SHALL AFFECT THE STATUS OF ANY
    27     SUBSEQUENT INSTALLMENT OF THE SAME ASSESSMENT, EACH OF WHICH
    28     SHALL CONTINUE TO BECOME A LIEN UPON THE PROPERTY ANNUALLY
    29     PURSUANT TO PARAGRAPH (1).
    30         (4)  THE ORDINANCE MAY CONTAIN ANY OTHER PROVISION
    19990H1142B4032                 - 65 -

     1     RELATING TO INSTALLMENT ASSESSMENTS WHICH IS NOT INCONSISTENT
     2     WITH APPLICABLE LAW.
     3         (5)  ANY OWNER OF PROPERTY AGAINST WHOM AN ASSESSMENT HAS
     4     BEEN MADE MAY PAY THE ASSESSMENT IN FULL AT ANY TIME, WITH
     5     ACCRUED INTEREST AND COSTS THEREON, AND SUCH A PAYMENT SHALL
     6     DISCHARGE THE LIEN OF THE ASSESSMENT, OR INSTALLMENTS THEN
     7     CONSTITUTING A LIEN, AND SHALL ALSO RELEASE THE CLAIM TO ANY
     8     LATER INSTALLMENTS.
     9         (6)  CLAIMS TO SECURE THE ASSESSMENTS SHALL BE ENTERED IN
    10     THE PROTHONOTARY'S OFFICE OF THE COUNTY AT THE SAME TIME, AND
    11     IN THE SAME FORM, AND COLLECTED IN THE SAME MANNER, AS
    12     MUNICIPAL TAX CLAIMS ARE FILED AND COLLECTED, NOTWITHSTANDING
    13     THE PROVISIONS OF THIS SECTION AS TO INSTALLMENT PAYMENTS.
    14  SECTION 508.  DISSOLUTION OF NEIGHBORHOOD IMPROVEMENT DISTRICT
    15                 MANAGEMENT ASSOCIATION AND NEIGHBORHOOD
    16                 IMPROVEMENT DISTRICT.
    17     (A)  CONVEYING PROJECTS.--WHEN ANY NIDMA SHALL HAVE FINALLY
    18  PAID AND DISCHARGED ALL BONDS WHICH, TOGETHER WITH THE INTEREST
    19  DUE THEREON, SHALL HAVE BEEN SECURED BY A PLEDGE OF ANY OF THE
    20  REVENUES OR RECEIPTS OF A PROJECT, IT MAY, SUBJECT TO ANY
    21  AGREEMENTS CONCERNING THE OPERATION OR DISPOSITION OF SUCH
    22  PROJECT AND THE NIDMA BYLAWS, CONVEY SUCH PROJECT OR PROJECTS TO
    23  THE MUNICIPAL CORPORATION WHICH ESTABLISHED OR HAD ESTABLISHED
    24  THE NIDMA.
    25     (B)  REQUEST FOR TERMINATION.--ANY REQUEST FOR THE
    26  TERMINATION OF THE NID AND NIDMA APPROVED BY 40% OF THE ASSESSED
    27  PROPERTY OWNERS, IN NUMBERS, LOCATED IN THE NID, SHALL BE
    28  SUBMITTED TO THE GOVERNING BODY OF THE MUNICIPALITY IN WRITING.
    29  THE GOVERNING BODY SHALL HOLD A HEARING ON THE MERITS OF SAME,
    30  PURSUANT TO SECTION 505(B)(2) AS IT RELATES TO THE REQUIRED
    19990H1142B4032                 - 66 -

     1  PROCEDURE OF HOLDING A HEARING. SUCH WRITTEN REQUEST SHALL BE
     2  CONSIDERED BY THE GOVERNING BODY OF THE MUNICIPALITY. IF THE
     3  REQUEST IS APPROVED BY THE GOVERNING BODY OF THE MUNICIPALITY,
     4  THEN A RESOLUTION TO THAT EFFECT SHALL BE FILED WITH THE
     5  SECRETARY OF THE COMMONWEALTH, AND THE SECRETARY SHALL NOTE THE
     6  TERMINATION OF THE EXISTENCE ON THE RECORD OF INCORPORATION AND
     7  RETURN THE RESOLUTION WITH HIS OR HER APPROVAL SHOWN ON THE
     8  RESOLUTION TO THE MUNICIPAL CORPORATION. THEN, THE PROPERTY OF
     9  THE NIDMA SHALL PASS TO THE MUNICIPAL CORPORATION, AS THE CASE
    10  MAY BE, AND THE NIDMA AND NID SHALL CEASE TO EXIST. ANY REQUEST
    11  FOR THE TERMINATION OF THE NID AND NIDMA BY THE GOVERNING BODY
    12  OF THE MUNICIPALITY IN WHICH THE NID IS LOCATED SHALL RESULT IN
    13  A HEARING ON THE MERITS OF SAME, PURSUANT TO SECTION 505(B)(2)
    14  AS IT RELATES TO THE REQUIRED PROCEDURE FOR HOLDING A HEARING.
    15  BEFORE THE DECISION TO TERMINATE AN NID AND NIDMA IS MADE, SUCH
    16  TERMINATION MUST BE APPROVED BY 40% OF THE ASSESSED PROPERTY
    17  OWNERS, IN NUMBERS, LOCATED IN THE NID, AND SHALL BE SUBMITTED
    18  TO THE GOVERNING BODY OF THE MUNICIPALITY IN WRITING. SUCH
    19  WRITTEN REQUEST SHALL BE CONSIDERED BY THE GOVERNING BODY OF THE
    20  MUNICIPALITY. IF THE REQUEST IS APPROVED BY THE GOVERNING BODY
    21  OF THE MUNICIPALITY, THEN A RESOLUTION TO THAT EFFECT SHALL BE
    22  FILED WITH THE SECRETARY OF THE COMMONWEALTH, AND THE SECRETARY
    23  SHALL NOTE THE TERMINATION OF THE EXISTENCE ON THE RECORD OF
    24  INCORPORATION AND RETURN THE RESOLUTION WITH HIS OR HER APPROVAL
    25  SHOWN TO THE MUNICIPAL CORPORATION. THE PROPERTY OF THE NIDMA
    26  SHALL PASS TO THE MUNICIPAL CORPORATION, AS THE CASE MAY BE, AND
    27  THE NIDMA AND NID SHALL CEASE TO EXIST.
    28  SECTION 509.  ANNUAL AUDIT; REPORT.
    29     THE NIDMA SHALL ANNUALLY:
    30         (1)  SUBMIT AN AUDIT OF ALL INCOME AND EXPENDITURES TO
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     1     THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AND THE
     2     GOVERNING BODY OF THE MUNICIPALITY IN WHICH THE NID IS
     3     LOCATED WITHIN 120 DAYS AFTER THE END OF EACH FISCAL YEAR;
     4     AND
     5         (2)  SUBMIT A REPORT, INCLUDING FINANCIAL AND
     6     PROGRAMMATIC INFORMATION, INCLUDING A SUMMARY OF AUDIT
     7     FINDINGS, TO THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH
     8     THE NID IS LOCATED AND TO ALL ASSESSED PROPERTY OWNERS
     9     LOCATED IN THE NID.
    10  SECTION 510.  APPLICABILITY.
    11     (A)  EXISTING DISTRICTS.--EXCEPT AS PROVIDED FOR IN
    12  SUBSECTION (D), ANY EXISTING BUSINESS IMPROVEMENT DISTRICT OR
    13  DOWNTOWN IMPROVEMENT DISTRICT ESTABLISHED PRIOR TO THE EFFECTIVE
    14  DATE OF THIS CHAPTER, INCLUDING ANY SUCH DISTRICT LOCATED IN
    15  PART IN A CITY OF THE FIRST CLASS AND IN PART IN A CONTIGUOUS
    16  MUNICIPALITY, SHALL REMAIN IN EXISTENCE AND SHALL BE GOVERNED BY
    17  THE MUNICIPALITY AUTHORITIES ACT OF 1945, INSOFAR AS IT RELATES
    18  TO BUSINESS IMPROVEMENT DISTRICTS OR 53 PA.C.S. CH. 54 (RELATING
    19  TO BUSINESS IMPROVEMENT DISTRICTS).
    20     (B)  DISTRICTS CREATED SUBSEQUENTLY.--ANY NID ESTABLISHED
    21  SUBSEQUENT TO THE EFFECTIVE DATE OF THIS CHAPTER SHALL BE
    22  GOVERNED BY THE PROVISIONS OF THIS CHAPTER.
    23     (C)  TERMINATED DISTRICTS.--ANY BUSINESS IMPROVEMENT DISTRICT
    24  OR DOWNTOWN IMPROVEMENT DISTRICT IN EXISTENCE PRIOR TO THE
    25  EFFECTIVE DATE OF THIS CHAPTER WHICH IS TERMINATED PURSUANT TO A
    26  SUNSET PROVISION CONTAINED IN THE MUNICIPAL ORDINANCE WHICH
    27  ESTABLISHED THE BUSINESS IMPROVEMENT DISTRICT OR DOWNTOWN
    28  IMPROVEMENT DISTRICT SHALL, UPON ITS REESTABLISHMENT, PROVIDED
    29  IT OCCURS WITHIN 12 MONTHS OF THE TERMINATION DATE AS SET FORTH
    30  IN THE MUNICIPAL ORDINANCE, BE GOVERNED BY THE PROVISIONS OF
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     1  THIS CHAPTER, WITH THE EXCEPTIONS OF SECTIONS 505 AND 506.
     2     (D)  ADDITIONAL REQUIREMENTS.--ANY BUSINESS IMPROVEMENT
     3  DISTRICT OR DOWNTOWN IMPROVEMENT DISTRICT IN EXISTENCE ON THE
     4  EFFECTIVE DATE OF THIS CHAPTER SHALL:
     5         (1)  BE REQUIRED TO CARRY OUT ANY DUTY OR RESPONSIBILITY
     6     IMPOSED ON NIDS UNDER THIS CHAPTER; AND
     7         (2)  POSSESS ANY ADDITIONAL POWER GIVEN TO NIDS UNDER
     8     THIS CHAPTER WITHOUT HAVING TO RESTRUCTURE OR REORGANIZE
     9     UNDER THIS CHAPTER.
    10     SECTION 10.  THIS ACT SHALL TAKE EFFECT IN 60 DAYS.














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