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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 4051, 4315, 4418         PRINTER'S NO. 4848

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2667 Session of 2006


        INTRODUCED BY J. TAYLOR, PETRONE, BELFANTI, BEYER, CALTAGIRONE,
           CAPPELLI, CRAHALLA, CREIGHTON, DALLY, D. EVANS, FRANKEL,
           GRUCELA, HARPER, HERSHEY, KOTIK, LEDERER, PARKER, SIPTROTH,
           E. Z. TAYLOR, YOUNGBLOOD AND YUDICHAK, MAY 3, 2006

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, OCTOBER 18, 2006

                                     AN ACT

     1  Amending the act of May 28, 1937 (P.L.955, No.265), entitled, as
     2     amended, "An act to promote public health, safety, morals,
     3     and welfare by declaring the necessity of creating public
     4     bodies, corporate and politic, to be known as housing
     5     authorities to engage in slum clearance, and to undertake
     6     projects, to provide dwelling accommodations for persons of
     7     low income; providing for the organization of such housing
     8     authorities; defining their powers and duties; providing for
     9     the exercise of such powers, including the acquisition of
    10     property by purchase, gift or eminent domain, the renting and
    11     selling of property, and including borrowing money, issuing
    12     bonds, and other obligations, and giving security therefor;
    13     prescribing the remedies of obligees of housing authorities;
    14     authorizing housing authorities to enter into agreements,
    15     including agreements with the United States, the
    16     Commonwealth, and political subdivisions and municipalities
    17     thereof; defining the application of zoning, sanitary, and
    18     building laws and regulations to projects built or maintained
    19     by such housing authorities; exempting the property and
    20     securities of such housing authorities from taxation; and
    21     imposing duties and conferring powers upon the State Planning
    22     Board, and certain other State officers and departments,"
    23     providing for the definition of "mixed-use projects"; further
    24     providing for powers of the authority; and providing for
    25     mixed-use projects.

    26     The General Assembly of the Commonwealth of Pennsylvania
    27  hereby enacts as follows:
    28     Section 1.  Section 3 of the act of May 28, 1937 (P.L.955,

     1  No.265), known as the Housing Authorities Law, is amended by
     2  adding a clause to read:
     3     Section 3.  Definitions.--The following words, terms, and
     4  phrases, where used or referred to in this act, shall have the
     5  meanings ascribed to them in this section, except in those
     6  instances where the context clearly indicates a different
     7  meaning:
     8     * * *
     9     (l.1)  "Mixed-use Projects."  Any project that includes a
    10  commercial, industrial, market-rate residential or retail
    11  component, and either--(1) a low-income housing component; or
    12  (2) is within a two mile radius of a low-income housing project
    13  owned, leased, either in the capacity of lessor or lessee, held
    14  or financed by an Authority.
    15     * * *
    16     Section 2.  Section 10 of the act is amended by adding a
    17  clause to read:
    18     Section 10.  Powers of an Authority.--An Authority shall
    19  constitute a public body, corporate and politic, exercising
    20  public powers of the Commonwealth as an agency thereof, which
    21  powers shall include all powers necessary or appropriate to
    22  carry out and effectuate the purpose and provisions of this act,
    23  including the following powers, in addition to others herein
    24  granted:
    25     * * *
    26     (gg)  To make, execute and enter into employment agreements,
    27  which are necessary or convenient to the exercise of the powers
    28  of the Authority, with any individual who is or will be hired to
    29  work in any position that is not represented by a bargaining
    30  representative under the act of July 23, 1970 (P.L.563, No.195),
    20060H2667B4848                  - 2 -     

     1  known as the "Public Employe Relations Act," or part of a
     2  bargaining unit that has been created by an order of the
     3  Pennsylvania Labor Relations Board pursuant to the "Public
     4  Employe Relations Act." Such employment agreements must be in
     5  writing and must be approved by the Authority and may not be
     6  renewed except by the affirmative approval of the Authority. No
     7  such employment agreement nor any term thereof shall be
     8  enforceable or amended or renewed unless such agreement or
     9  amendment is in writing and approved by the Authority as stated
    10  above. Any employment agreement created or approved pursuant to
    11  this subsection may--(1) identify the specific terms and
    12  conditions of the individual's employment; (2) confer a specific
    13  term of tenure in employment which may be for a specific period
    14  of time not to exceed five years; (3) otherwise limit or state
    15  the power of the Authority to summarily dismiss such employe and
    16  the circumstances under which such dismissal shall be exercised;
    17  or (4) any combination of subclauses (1) through (3) above;
    18  however, any employment agreement created or approved pursuant
    19  to this clause which confers a specific term or tenure of
    20  employment under subclause (2) above, it must also enumerate the
    21  circumstances under which the Authority may terminate the
    22  employment agreement for cause, including the lack of funding,
    23  prior to the expiration of the expressed term or agreement. If
    24  such agreement does not contain the items stated in subclause
    25  (2) or (3), the employe may be summarily dismissed by the
    26  Authority, and the agreement terminated at any time. Under no
    27  circumstances shall the mayor or any individual employe,
    28  official agent, attorney or member of the Authority be
    29  personally liable for any provision contained in any such
    30  employment agreement. Any employment agreement into which the
    20060H2667B4848                  - 3 -     

     1  Authority enters pursuant to this provision shall not be subject
     2  to the provisions of section 11 or to the contract procurement
     3  provisions, rules or regulations to which the Authority is
     4  otherwise subjected.
     5     Section 3.  The act is amended by adding a section to read:
     6     Section 10.1.  Undertakings Constituting Mixed-use
     7  Projects.--Without limiting the powers set forth in section 10,
     8  an Authority shall have the power to do all acts that are
     9  necessary, convenient or useful to the development or operation
    10  of one or more mixed-use projects, including, with the approval
    11  of the municipality in which the Authority lies, the power to
    12  plan, design, locate, acquire through purchase, the exercise of
    13  powers under 26 Pa.C.S. (relating to eminent domain) or
    14  otherwise, hold, construct, finance, improve, maintain, operate,
    15  own, lease, either in the capacity of lessor or lessee, land,
    16  buildings, other structures and personal property necessary,
    17  convenient or useful to the development or operation of a mixed-
    18  use project. An Authority shall have the power to finance mixed-
    19  use projects by borrowing money, making and issuing bonds,
    20  governmental and private activity, or other obligations, and
    21  making loans which may be evidenced by and secured as may be
    22  provided in loan agreements, mortgages, security agreements or
    23  any other contracts, instruments or agreements, which may
    24  contain such provisions as the Authority shall deem necessary,
    25  convenient or useful for the security or protection of the
    26  Authority or its bondholders except that, in no instance may
    27  money designated for use on the housing component of a mixed-use
    28  project be utilized in a manner inconsistent with its purpose.
    29  Any Authority under this section may pledge, mortgage,
    30  hypothecate or otherwise encumber all or any part of its
    20060H2667B4848                  - 4 -     

     1  property, real or personal, constituting all or part of a mixed-
     2  use project, including, but not limited to, the revenues or
     3  receipts of the Authority from one or more mixed-use projects,
     4  for all or any of the obligations, including bonds, of the
     5  Authority incurred in connection with the development or
     6  operation of a mixed-use project. NOTHING IN THIS SECTION SHALL   <--
     7  BE CONSTRUED TO EXPAND THE EMINENT DOMAIN POWER OF AN AUTHORITY
     8  BEYOND THAT PERMITTED UNDER 26 PA.C.S.
     9     Section 4.  This act shall take effect in 60 days.














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