PRIOR PRINTER'S NOS. 1016, 2994, 3557, PRINTER'S NO. 3815
3579, 3718
No. 893 Session of 2005
INTRODUCED BY SEMMEL, PRESTON, HARHART, CALTAGIRONE, DALLY,
DALEY, ARGALL, ARMSTRONG, BASTIAN, BENNINGHOFF, BOYD,
CREIGHTON, DENLINGER, GABIG, GODSHALL, GOODMAN, HARPER,
HARRIS, HERSHEY, HESS, KILLION, McILHINNEY, R. MILLER,
REICHLEY, SAYLOR, SCAVELLO, B. SMITH, J. TAYLOR, TIGUE, CRUZ
AND PALLONE, MARCH 14, 2005
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
APRIL 3, 2006
AN ACT
1 Requiring State and local approval for terminations or transfers
2 by municipal authorities; authorizing and requiring cities,
3 boroughs, townships, municipal authorities and public utility
4 companies engaged in the supplying of water, to shut off the
5 supply of water for nonpayment of sewer, sewerage, or sewage
6 treatment rentals, rates, or charges imposed by municipal
7 authorities organized by counties of the second class, by
8 cities of the second class, by cities of the second class A,
9 by cities of the third class, by boroughs or by townships of
10 the first or second class; authorizing and requiring them to
11 supply to such authorities lists of metered water readings
12 and flat-rate water bills and other data; authorizing them to
13 act as billing and collecting agents for such authorities;
14 conferring certain powers upon the Pennsylvania Public
15 Utility Commission in connection therewith; requiring certain
16 procedures to be followed in residential buildings; and
17 making a related repeal.
18 TABLE OF CONTENTS
19 Chapter 1. Preliminary Provisions
20 Section 101. Short title.
21 Section 102. Definitions.
22 Chapter 3. Municipal Authority Approval of Actions
1 Section 301. Definitions.
2 Section 302. Approvals.
3 Section 303. Applicability.
4 Chapter 5. Water Utilities
5 Section 501. Definitions.
6 Section 502. Termination of service.
7 Section 503. Submission of water meter readings and flat-rate
8 water bills.
9 Section 504. Billing and collecting agent.
10 Section 505. Payment for billing and collecting services.
11 Section 506. Severability.
12 Section 507. Inconsistent repeals.
13 Chapter 40. Miscellaneous Provisions
14 Section 4001. Repeals.
15 Section 4002. Continuation.
16 Section 4003. Effective date.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 CHAPTER 1
20 PRELIMINARY PROVISIONS
21 Section 101. Short title.
22 This act shall be known and may be cited as the Water
23 Services Act.
24 Section 102. Definitions.
25 The following words and phrases when used in this act shall
26 have the meanings given to them in this section unless the
27 context clearly indicates otherwise:
28 "Act 1949-98." The act of April 14, 1949 (P.L.482, No.98),
29 entitled, as amended, "An act authorizing and requiring cities,
30 boroughs, townships, municipal authorities and public utility
20050H0893B3815 - 2 -
1 companies engaged in the supplying of water, to shut off the
2 supply of water for nonpayment of sewer, sewerage, or sewage
3 treatment rentals, rates, or charges imposed by municipal
4 authorities organized by counties of the second class, by cities
5 of the second class, by cities of the second class A, by cities
6 of the third class, by boroughs or by townships of the first or
7 second class; authorizing and requiring them to supply to such
8 authorities lists of metered water readings and flat-rate water
9 bills and other data; authorizing them to act as billing and
10 collecting agents for such authorities; and conferring certain
11 powers upon the Pennsylvania Public Utility Commission in
12 connection therewith."
13 "Commission." The Pennsylvania Public Utility Commission.
14 CHAPTER 3
15 MUNICIPAL AUTHORITY APPROVAL OF ACTIONS
16 Section 301. Definitions.
17 The following words and phrases when used in this chapter
18 shall have the meanings given to them in this section unless the
19 context clearly indicates otherwise:
20 "Authority." A body politic and corporate which meets all of
21 the following:
22 (1) Is established by a city and incorporated under any
23 of the following:
24 (i) The former act of June 28, 1935 (P.L.463,
25 No.191) entitled, "An act providing, for a limited period
26 of time, for the incorporation, as bodies corporate and
27 politic, of 'Authorities' for municipalities; defining
28 the same; prescribing the rights, powers, and duties of
29 such Authorities; authorizing such Authorities to
30 acquire, construct, improve, maintain, and operate
20050H0893B3815 - 3 -
1 projects, and to borrow money and issue bonds therefor;
2 providing for the payment of such bonds, and prescribing
3 the rights of the holders thereof; conferring the right
4 of eminent domain on such Authorities; authorizing such
5 Authorities to enter into contracts with and to accept
6 grants from the Federal Government or any agency thereof;
7 and for other purposes."
8 (ii) The former act of May 2, 1945 (P.L.382,
9 No.164), known as the Municipality Authorities Act of
10 1945.
11 (iii) 53 Pa.C.S. Ch. 56 (relating to municipal
12 authorities).
13 (2) Provides water and sewer services in accordance with
14 all of the following:
15 (i) The water and sewer services OR SEWER SERVICES, <--
16 OR BOTH, are provided, either by an agreement with a
17 municipality or directly, to users who are residents of
18 one or more municipalities outside the boundaries of the
19 city.
20 (ii) The total number of residents OF MUNICIPALITIES <--
21 WHICH ARE outside the boundaries of the city AND IN WHICH <--
22 WATER OR SEWER SERVICES, OR BOTH, ARE OFFERED OR PROVIDED
23 exceeds by at least 50% the number of residents who
24 reside within the boundaries of the city.
25 (3) Owns:
26 (i) a sewer, sewer system or parts of a sewer or
27 sewer system or sewage treatment works; and
28 (ii) a waterworks, water supply works or water
29 distribution system.
30 "City." A city of the third class which has adopted a home
20050H0893B3815 - 4 -
1 rule charter and has a population of not more than 30,000.
2 "Project." As defined in 53 Pa.C.S. § 5602 (relating to
3 definitions).
4 Section 302. Approvals.
5 (a) Commission.--If a city intends to continue the water and
6 sewer service previously provided by the authority to
7 municipalities outside the city, the city must obtain approval
8 of the commission prior to:
9 (1) termination of an authority;
10 (2) conveyance of a project of the authority to the city
11 under 53 Pa.C.S. § 5622 (relating to conveyance by
12 authorities to municipalities or school districts of
13 established projects); or
14 (3) transfer of reserves, assets or funds from an
15 authority to the city.
16 (b) Other municipalities.--
17 (1) A city must obtain approval from 75% of the
18 municipalities which have service agreements with or whose
19 residents previously received water and sewer services OR <--
20 SEWER SERVICES, OR BOTH, from the authority prior to:
21 (i) termination of the authority;
22 (ii) conveyance of a project of the authority under
23 53 Pa.C.S. § 5622; or
24 (iii) transfer of reserves, assets or funds from the
25 authority to the city.
26 (2) Approval under paragraph (1) is as follows:
27 (i) The approval must be in the form of a
28 resolution.
29 (ii) The resolution must be adopted at a public
30 meeting by an affirmative vote of a majority of the
20050H0893B3815 - 5 -
1 members of the governing body of the municipality.
2 (iii) The result of an affirmative vote under
3 subparagraph (ii) must be transmitted to the city within
4 48 hours of the vote.
5 Section 303. Applicability.
6 (a) General rule.--This chapter shall apply to any action by
7 an authority or city to terminate, convey or transfer a water or
8 sewer system under 53 Pa.C.S. Ch. 56 (relating to municipal
9 authorities) which are initiated after November 1, 2005.
10 (b) Exception.--
11 (1) This chapter shall not apply to the merger of two or
12 more authorities when the merger, including the conveyance of
13 all projects, obligations and reserves, has been approved by
14 each of the member municipalities and the merging
15 authorities.
16 (2) For purposes of this subsection the term "authority"
17 shall have the same meaning as provided in 53 Pa.C.S. § 5602
18 (relating to definitions).
19 CHAPTER 5
20 WATER UTILITIES
21 Section 501. Definitions.
22 The following words and phrases when used in this chapter
23 shall have the meanings given to them in this section unless the
24 context clearly indicates otherwise:
25 "Water utility." The term includes a city, borough,
26 township, municipal authority and public utility engaged in
27 supplying water or water service.
28 Section 502. Termination of service.
29 (a) General rule.--Except as set forth in subsection (c),
30 all of the following apply:
20050H0893B3815 - 6 -
1 (1) If the owner or occupant of a premises served by a
2 water utility neglects or fails to pay, for a period of 30
3 days from the due date, a rental, rate or charge for sewer,
4 sewerage or sewage treatment service imposed by a
5 municipality or municipal authority, the water utility shall,
6 at the request and direction of the municipality, the
7 authority or a city, borough or township to which the
8 authority has assigned its claim or lien, shut off the supply
9 of water to the premises until all overdue rentals, rates,
10 charges and associated penalties and interest are paid.
11 (2) If the authority, city, borough or township also
12 supplies water to premises, the authority, city, borough or
13 township is authorized to shut off the supply of water to the
14 premises.
15 (3) If the rental rate or charge for sewer, sewerage or
16 sewage treatment service is imposed by a municipality as
17 lessee of an authority and the lessee also supplies water to
18 the premises, the municipality is authorized to shut off the
19 supply of water to the premises without prior request from
20 the authority or without prior assignment of its claim or
21 lien for the service.
22 (b) Written notice.--Except as set forth in subsection (c),
23 all of the following apply:
24 (1) In no case shall the water supply to premises be
25 shut off until ten days after a written notice of intention
26 to do so has been posted at a main entrance and mailed to the
27 person liable for payment of the rentals and charges and the
28 owner of the property or property manager.
29 (2) If during the ten-day period the person liable for
30 payment of the rentals and charges delivers to the water
20050H0893B3815 - 7 -
1 utility authority or municipality supplying water to the
2 premises a written statement under oath or affirmation
3 averring that there is a just defense to all or part of the
4 claim and that the statement was not executed for the purpose
5 of delay, the water supply shall not be shut off until the
6 claim has been judicially determined.
7 (c) Exception.--Prior to discontinuing service in a
8 residential building, as defined under the act of November 26,
9 1978 (P.L.1255, No.299), known as the Utility Service Tenants
10 Rights Act, a water utility shall comply with the provisions of
11 that act.
12 (d) Failure of previous lessee to pay bill.--Nothing in this
13 section shall be construed to authorize an authority or
14 privately owned sewer or water company to shut off or deny water
15 service to a lessee for failure of a previous lessee to pay a
16 water or sewer service rate, rental or charge.
17 Section 503. Submission of water meter readings and flat-rate
18 water bills.
19 A water utility shall, at the request of an authority, supply
20 to the authority, on or before the 15th day of the month
21 following the month during which water bills are issued, a list
22 of all water meter readings and flat-rate water bills issued
23 during the preceding calendar month and the basis of each flat-
24 rate customer's water charge for use by the authority in
25 calculating or computing its rentals, rates or charges for
26 furnishing sewer, sewerage or sewage treatment service to the
27 water customers.
28 Section 504. Billing and collecting agent.
29 (a) General rule.--A water utility may act as billing and
30 collecting agents of a municipal authority which imposes
20050H0893B3815 - 8 -
1 rentals, rates or charges for use of a sewer, sewerage system or
2 sewage treatment works upon owners or occupants of premises
3 served by the water utility. Upon request of an authority, the
4 water utility may include with its own bills for water or water
5 service the rentals, rates and charges for sewer, sewerage and
6 sewage treatment service. If the water utility agrees to do so,
7 the added rentals, rates and charges shall be set forth
8 separately from the charges for water or water service, but both
9 shall be payable to and collected by the water utility and
10 payment of either may be refused unless both are paid.
11 (b) Accounting.--The water utility shall, at least once each
12 calendar quarter, account for and turn over the moneys it has
13 collected to the authority imposing the rentals, rates and
14 charges.
15 Section 505. Payment for billing and collecting services.
16 (a) General rule.--An authority imposing sewer, sewerage or
17 sewage treatment rentals, rates or charges shall pay to a water
18 utility the reasonable additional clerical and other expenses
19 incurred in providing billing and collecting services.
20 (b) Shut-off service.--An authority, city, borough or
21 township requesting and directing the shutoff of water shall
22 also pay to the water utility the cost of the shut-off service
23 and the estimated loss of water revenues resulting from such
24 shutoff.
25 (c) Long-term agreements.--A water utility may enter into a
26 long-term agreement with an authority for performing billing and
27 collecting services and with an authority, city, borough or
28 township for shut-off services. The agreement shall be binding
29 on the utility, its successors and assigns.
30 (d) Disputes.--If a dispute arises between the utility and
20050H0893B3815 - 9 -
1 an authority, city, borough or township as to the cost of such
2 services, the amount of revenues lost or the provisions of an
3 agreement under this subsection, the dispute may be submitted by
4 either party to the commission, whose decision, unless reversed
5 on appeal, shall be final. This subsection shall not be
6 construed to grant to the commission any other regulatory power
7 or jurisdiction over counties, cities, boroughs, townships or
8 authorities.
9 Section 506. Severability.
10 The provisions of this chapter are severable. If any
11 provision is held to be unconstitutional, the decision shall not
12 affect the validity of the remaining provisions, and it is
13 declared as the intent of the General Assembly that this chapter
14 would have been adopted had the unconstitutional provision not
15 been included.
16 Section 507. Inconsistent repeals.
17 All acts and parts of acts are repealed to the extent that
18 they are inconsistent with the provisions of this chapter.
19 CHAPTER 40
20 MISCELLANEOUS PROVISIONS
21 Section 4001. Repeals.
22 Repeals are as follows:
23 (1) The General Assembly declares that the repeal under
24 paragraph (2) is necessary to effectuate Chapter 5.
25 (2) Act 1949-98 is repealed.
26 Section 4002. Continuation.
27 Chapter 5 is a continuation of Act 1949-98. Except as
28 otherwise provided in Chapter 5, all activities initiated under
29 Act 1949-98 shall continue and remain in full force and effect
30 and may be completed under Chapter 5. Orders, regulations, rules
20050H0893B3815 - 10 -
1 and decisions which were made under Act 1949-98 and which are in
2 effect on the effective date of section 4001 shall remain in
3 full force and effect until revoked, vacated or modified under
4 Chapter 5.
5 Section 4003. Effective date.
6 This act shall take effect immediately.
B8L66JAM/20050H0893B3815 - 11 -