PRINTER'S NO. 3163
No. 2213 Session of 2008
INTRODUCED BY BELFANTI, PHILLIPS, GOODMAN, ROSS, SHIMKUS,
SIPTROTH, GIBBONS, GINGRICH, BRENNAN, BIANCUCCI, EVERETT,
ROAE, MURT, CALTAGIRONE, CARROLL, FABRIZIO, FRANKEL, JAMES,
LONGIETTI, MILLARD, R. MILLER, PETRONE, WANSACZ, J. WHITE,
YOUNGBLOOD AND YUDICHAK, FEBRUARY 1, 2008
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 1, 2008
AN ACT
1 Amending the act of May 1, 1933 (P.L.103, No.69), entitled, as
2 reenacted and amended, "An act concerning townships of the
3 second class; and amending, revising, consolidating and
4 changing the law relating thereto," further providing for
5 real property, for personal property and for letting
6 contracts.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 1503 of the act of May 1, 1933 (P.L.103,
10 No.69), known as The Second Class Township Code, reenacted and
11 amended November 9, 1995 (P.L.350, No.60) and amended May 18,
12 2004 (P.L.219, No.29) and May 18, 2004 (P.L.226, No.33), is
13 amended to read:
14 Section 1503. Real Property.--(a) No real estate owned by
15 the township having a value in excess of fifteen hundred dollars
16 ($1,500) may be sold except to the highest bidder after due
17 notice by advertisement for bids or advertisement of a public
18 auction in one newspaper of general circulation in the township.
1 The advertisement shall be published once not less than ten days
2 before the date set for the opening of bids or public auction,
3 and the date for opening bids or public auction shall be
4 announced in the advertisement. The award of contracts shall be
5 made only by public announcement at a regular or special meeting
6 of the board of supervisors or at the public auction. All bids
7 shall be accepted on the condition that payment of the purchase
8 price in full shall be made within sixty days of the acceptance
9 of bids.
10 (b) The board of supervisors may reject all bids if the bids
11 are deemed to be less than the fair market value of the
12 property. In the case of a public auction, the board of
13 supervisors may establish a minimum bid based on the fair market
14 value of the real property.
15 (c) The requirements of this section do not apply to
16 conveyances or leases of real property by a township to any of
17 the following:
18 (1) A municipal corporation.
19 (2) The Federal Government.
20 (3) The Commonwealth.
21 (4) An institution district.
22 (5) A school district.
23 (6) A municipality authority.
24 (7) A county.
25 (8) A public utility.
26 (9) A volunteer fire company.
27 (10) A nonprofit corporation engaged in community
28 industrial, commercial or affordable housing development.
29 (11) A volunteer ambulance service or volunteer rescue squad
30 located within the township.
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1 (12) A nonprofit corporation organized as a public library.
2 (13) A nonprofit medical service corporation.
3 (14) A nonprofit housing corporation.
4 (15) A nonprofit organization providing community service or
5 development activities.
6 (16) A nonprofit corporation established for the
7 preservation of historical, architectural or aesthetic sites or
8 artifacts.
9 (17) A nonprofit association or nonprofit corporation
10 organized to acquire and maintain real property for the
11 preservation, conservation and stewardship of open space.
12 Such conveyances or leases shall be at the sole discretion of
13 the township.
14 (18) A council of government, consortium, cooperative or
15 other similar entity created pursuant to 53 Pa.C.S. Ch. 23
16 Subch. A (relating to intergovernmental cooperation).
17 (d) When real property is sold to a nonprofit corporation
18 organized as a public library or to a nonprofit medical service
19 corporation, nonprofit housing corporation, volunteer fire
20 company, volunteer ambulance service [or], volunteer rescue
21 squad[,] or a council of government, consortium, cooperative or
22 other similar entity created pursuant to 53 Pa.C.S. Ch. 23
23 Subch. A involving one or more of the entities listed in this
24 subsection, the board of supervisors may elect to accept any
25 nominal consideration for the property as it believes
26 appropriate. Real property sold under this subsection is subject
27 to the condition that when the property is not used for the
28 purposes of the corporation or volunteer fire company, the
29 property reverts to the township.
30 (e) No real estate may be purchased by a township unless the
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1 board of supervisors obtains at least one appraisal on the real
2 property in question by a person authorized to perform an
3 appraisal on the subject property under the act of July 10, 1990
4 (P.L.404, No.98), known as the "Real Estate Appraisers
5 Certification Act," and the township supervisors may require
6 that an environmental impact statement be prepared, indicating
7 the potential liability of the township for any environmental
8 problems associated with the real estate to be purchased. The
9 person making the appraisal shall not be interested directly or
10 indirectly in any aspect of the sale of the real estate. The
11 price paid by the board of supervisors for the purchase of the
12 real estate shall not exceed the price established by the
13 appraisal: Provided, however, That if more than one appraisal is
14 obtained, the price paid by the board of supervisors shall not
15 exceed the average of the appraisals.
16 (f) When real property has been dedicated, deeded or devised
17 to a township to be used for a designated purpose and the real
18 property is accepted and used for that purpose, or the real
19 property is not used for the purpose designated for a period of
20 ten years or more, and the township supervisors determine that
21 it is not possible or not desirable for the best interest of the
22 township to use the real property for the purpose designated,
23 the township supervisors, with the prior approval of the court
24 of common pleas, may by ordinance reconvey to the original
25 owners or their successors, heirs or assigns, or otherwise
26 dispose of, the real property free and clear of any public
27 right.
28 Section 2. Section 1504 of the act, amended or added June
29 23, 2006 (P.L.203, No.49), is amended to read:
30 Section 1504. Personal Property.--(a) No personal property
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1 of the township shall be sold or disposed of without the
2 approval of the board of supervisors. No personal property owned
3 by the township, the estimated fair market value of which is one
4 thousand dollars ($1,000) or more, shall be sold except to the
5 highest bidder after due notice by advertisement for bids or for
6 public auction in one newspaper of general circulation in the
7 township. The advertisement shall be published once not less
8 than ten days before the date set for the opening of bids or
9 public auction, and the date for opening bids or public auction
10 shall be announced in the advertisement. The advertisement for
11 electronic auction sales authorized in subsection (d) shall
12 include the Internet address or means of accessing the
13 electronic auction and the date, time and duration of the
14 electronic auction. If after attempting twice to receive bids or
15 if at a public auction no bid was received, the board of
16 supervisors may by resolution adopt a procedure by which the
17 personal property may be sold without further action of the
18 board of supervisors. A procedure adopted pursuant to this
19 authorization shall be subject to and shall conform with the
20 requirements of any law governing the sale of property by
21 municipal corporations generally when no bids have been
22 received. The award of contracts shall be made only by public
23 announcement at a regular or special meeting of the board of
24 supervisors or at the public auction. Except as provided in
25 subsection (d), all bids shall be accepted on the condition that
26 payment of the purchase price in full is made immediately upon
27 acceptance of the successful bid. The board of supervisors may
28 reject any bids received if the bids are believed to be less
29 than the fair market value of the property.
30 (b) With respect to personal property, either individual
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1 items or lots of items, the fair market value of which is
2 estimated to be less than one thousand dollars ($1,000), the
3 board of supervisors shall by resolution adopt a procedure by
4 which the property may be sold without further action by the
5 board of supervisors. The board of supervisors may arrange for
6 the sale of the item or items at public auction.
7 (c) The bidding and advertising requirements of this section
8 do not apply to the following transactions:
9 (1) If personal property of the township is being traded in
10 or exchanged for other personal property.
11 (2) The sale or lease of personal property to any municipal
12 corporation, the Federal Government, the Commonwealth or any
13 institution district, school district, municipality authority,
14 county, public utility, volunteer fire company, nonprofit
15 corporation engaged in community industrial development,
16 volunteer ambulance service or volunteer rescue squad located
17 within the township, nonprofit corporation organized as a public
18 library, nonprofit medical service corporation, nonprofit
19 housing corporation, nonprofit organizations providing community
20 service or development activities or nonprofit corporation
21 established for the preservation of historical, architectural or
22 aesthetical sites or artifacts[.] or a council of government,
23 consortium, cooperative or other similar entity created pursuant
24 to 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental
25 cooperation).
26 (d) A "public auction" shall include an online or electronic
27 auction sale. During an electronic auction sale, bids shall be
28 accepted electronically at the time and in the manner designated
29 in the advertisement. During the electronic auction, each bidder
30 shall have the capability to view the bidder's bid rank or the
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1 high bid price. Bidders may increase their bid prices during the
2 electronic auction. The record of the electronic auction shall
3 be accessible for public inspection. The purchase price shall be
4 paid by the high bidder immediately or at a reasonable time
5 after the conclusion of the electronic auction as determined by
6 the township. In the event that shipping costs are incurred,
7 they shall be paid by the high bidder.
8 (e) A township that has complied with the advertising
9 requirements of subsection (a) may provide additional public
10 notice of the sale by bids or public auction in any manner
11 deemed appropriate by the township.
12 Section 3. Section 3102(h) of the act, amended December 18,
13 1996 (P.L.1142, No.172) and October 11, 2000 (P.L.535, No.70),
14 is amended to read:
15 Section 3102. Letting Contracts.--* * *
16 (h) The contracts or purchases made by the board of
17 supervisors involving payments in excess of the required
18 advertising amount, which do not require advertising, bidding or
19 price quotations are as follows:
20 (1) Those made for emergency, or routine maintenance,
21 repairs or replacements for water, electric light and other
22 public works of the township if they do not constitute new
23 additions, extensions or enlargements of existing facilities and
24 equipment.
25 (2) Those made for improvements, repairs or maintenance of
26 any kind made or provided by any township through its own
27 employes. All contracts or purchases of materials used for
28 improvement, maintenance or construction in excess of four
29 thousand dollars ($4,000) but less than the required advertising
30 amount are subject to the provisions contained in subsection
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1 (b), and those contracts or purchases in excess of the required
2 advertising amount are subject to the advertising requirements
3 contained in subsection (a).
4 (3) Those involving any policies of insurance or surety
5 company bonds, those made for public utility service, those made
6 for electricity, natural gas or telecommunications service
7 either directly or with an association authorized under Article
8 XIV in which the township is a member and those made with
9 another municipal corporation, county, school district or
10 municipality authority, a council of government, consortium,
11 cooperative or other similar entity created pursuant to 53
12 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental
13 cooperation) or Federal or State Government, including the sale,
14 leasing or loan of any supplies or materials by the Federal or
15 State Government or their agencies.
16 (4) Those involving personal or professional services.
17 (5) Those made for materials and supplies or equipment
18 rental under emergency conditions under 35 Pa.C.S. Pt. V
19 (relating to emergency management services).
20 (6) Those contracts involving equipment rental with
21 operators if more than fifty percent of the total labor
22 personnel hours required for the completion of the contract is
23 supplied by the township through its own employes.
24 (7) Those contracts for the purchase of repair parts or
25 materials for use in existing township equipment or facilities
26 if the item or material to be purchased is the sole item of its
27 kind on the market or is manufactured as a replacement for the
28 original item or equipment being repaired.
29 (8) Those for used equipment, articles, apparatus,
30 appliances, vehicles or parts thereof being purchased from a
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1 public utility.
2 (9) Those where particular types, models or pieces of
3 equipment, articles, apparatus, appliances, vehicles or parts
4 thereof which are patented and manufactured products.
5 * * *
6 Section 4. This act shall take effect in 60 days.
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