HOUSE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EICHELBERGER, RAFFERTY, ORIE, TARTAGLIONE, ERICKSON, GORDNER, ALLOWAY, WASHINGTON, BRUBAKER, WAUGH, GREENLEAF, EARLL, WOZNIAK, PILEGGI, WARD AND BROWNE, FEBRUARY 1, 2011

AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 10, 2011   

AN ACT

Amending the act of May 27, 1953 (P.L.244, No.34), entitled "An

act relating to and regulating the contracts of incorporated

towns and providing penalties," further providing for power

to convey.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1.1 of the act of May 27, 1953 (P.L.244,

No.34), entitled "An act relating to and regulating the

contracts of incorporated towns and providing penalties," added

October 31, 1985 (P.L.297, No.70), is amended to read:

Section 1.1.  Power to Convey.--(a)  Each incorporated town

may purchase, acquire by gift or otherwise, hold, lease, let and

convey, by sale or lease, such real and personal property as

shall be deemed to be in the best interest of the town:

Provided, That no real estate owned by the town shall be sold

for a consideration in excess of fifteen hundred dollars except

to the highest bidder after due notice by advertisement for bids

in one newspaper of general circulation in the town. The

advertisement shall be published once, not less than ten days

prior to the date fixed for the opening of bids, and the date

for opening bids shall be announced in the advertisement. The

acceptance of bids shall be made only by public announcement at

a regular or special meeting of council. All bids shall be

accepted on the condition that payment of the purchase price in

full shall be made within sixty days of the acceptance of bids. 

Council may reject all bids if the bids are deemed to be less

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than the fair market value of the real property. In the case of

public auction, the council may establish a minimum bid based on

the fair market value of the real property. Real estate owned by

a town may be sold at a consideration of fifteen hundred dollars

or less without advertisement of competitive bidding only after

council estimates the value thereof upon receipt of an appraisal

by a qualified real estate appraiser.

(b)  Except as otherwise hereinafter provided in the case of

personal property of an estimated sale value of less than [two

hundred] one thousand dollars, no town personal property shall

be disposed of, by sale or otherwise, except upon approval of

council, by ordinance or resolution. In cases where council

shall approve a sale of such property, it shall estimate the

sale value of the entire lot to be disposed of. If council shall

estimate the sale value to be [two hundred] one thousand dollars

or more, the entire lot shall be advertised for sale once, in at

least one newspaper of general circulation in the town, not less

than ten days prior to the date fixed for the opening of bids or

public auction, and such date of opening of bids or public

auction shall be announced in such advertisement, and sale of

the property so advertised shall be made to the best responsible

bidder. The advertisement for electronic auction sales

authorized in subsection (c.1) shall include the Internet

address or means of accessing the electronic auction and the

date, time and duration of the electronic auction. Council shall

have authority, by resolution, to adopt a procedure for the sale

of surplus personal property of an estimated sale value of less

than [two hundred] one thousand dollars, and the approval of

council shall not be required for any individual sale that shall

be made in conformity to such procedure.

(c)  The provisions of this section shall not be mandatory

where town property is to be traded in or exchanged for new town

property.

(c.1)  A public auction of personal property may be conducted

by means of an online or electronic auction sale. During an

electronic auction sale, bids shall be accepted electronically

at the time and in the manner designated in the advertisement.

During the electronic auction, each bidder shall have the

capability to view the bidder's bid rank or the high bid price.

Bidders may increase their bid prices during the electronic

auction. The record of the electronic auction shall be

accessible for public inspection. The purchase price shall be

paid by the high bidder immediately or at a reasonable time

after the conclusion of the electronic auction as determined by

council. In the event that shipping costs are incurred, they

shall be paid by the high bidder.

(c.2)  A town that has complied with the advertising

requirements of subsection (b) may provide additional public

notice of the sale by bids or public auction in any manner

deemed appropriate by council.

(c.3)  Council may reject any bids received if the bids are

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believed to be less than the fair market value of the property.

(d)  The provisions of this section requiring advertising for

bids and sale to the highest bidder shall not apply where town

real or personal property is to be sold to a county, city,

borough, town, township, institution district, school district,

volunteer fire company, volunteer ambulance service or volunteer

rescue squad located within the town, or [municipal] an 

authority [pursuant to the act of May 2, 1945 (P.L.382, No.164),

known as the "Municipality Authorities Act of 1945,"] as defined

in 53 Pa.C.S. § 5602 (relating to definitions), or is to be sold

to a non-profit corporation engaged in community industrial

development or where real property is to be sold to a person for

his exclusive use in an industrial development program, or where

real property is to be sold to a non-profit corporation

organized as a public library for its exclusive use as a

library, or where real property is to be sold to a non-profit

medical service corporation or to a non-profit housing

corporation. When real property is to be sold to a non-profit

corporation organized as a public library for its exclusive use

as a library or to a non-profit medical service corporation or

to a non-profit housing corporation, council may elect to accept

such nominal consideration for such sale as it shall deem

appropriate. Real property sold pursuant to this section to a

volunteer fire company, volunteer ambulance service or volunteer

rescue squad, non-profit medical service corporation or to a

non-profit housing corporation shall be subject to the condition

that, when the property is not used for the purposes of the

company, service, squad or the corporation, the property shall

revert to the town.

Section 2.  This act shall take effect immediately.