THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EARLL, SCHWANK, EICHELBERGER, YAW, VANCE, SMUCKER, BLAKE, FOLMER, PICCOLA, ROBBINS AND FONTANA, OCTOBER 31, 2011

REFERRED TO LOCAL GOVERNMENT, OCTOBER 31, 2011  

AN ACT

Amending the act of July 10, 1987 (P.L.246, No.47), entitled "An

act empowering the Department of Community Affairs to declare

certain municipalities as financially distressed; providing

for the restructuring of debt of financially distressed

municipalities; limiting the ability of financially

distressed municipalities to obtain government funding;

authorizing municipalities to participate in Federal debt

adjustment actions and bankruptcy actions under certain

circumstances; and providing for consolidation or merger of

contiguous municipalities to relieve financial distress," in

coordination plans, further providing for collective

bargaining; in consolidation and merger, further providing

for collective bargaining; in financial distress for third

class cities, further providing for consent decrees; and, in

receivership for third class cities, further providing for

confirmation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 252 and 408 of the act of July 10, 1987

(P.L.246, No.47), known as the Municipalities Financial Recovery

Act, are amended to read:

Section 252.  Plan not affected by certain collective bargaining

[agreements or settlements] matters.

A collective bargaining agreement, contract or [arbitration]

settlement executed, and a collective bargaining arbitration

award rendered, after the adoption of a plan shall not in any

manner violate, expand or diminish its provisions.

Section 408.  Collective bargaining [agreements] matters;

furlough of employees; disputes.

(a)  Collective bargaining agreements, contracts,

[agreements] settlements or arbitration awards.--A collective

bargaining agreement [or], contract or settlement in existence

in a municipality or an arbitration award in effect in a

municipality prior to a consolidation or merger shall remain

effective after consolidation or merger until [the contract,

agreements or awards expire. After the expiration of the

contracts, agreements or awards, a] it expires. A subsequent

collective bargaining agreement, settlement, contract or

arbitration award shall not [impair the implementation] in any

manner violate, expand or diminish the provisions of a plan

adopted pursuant to this act.

(b)  Reduction in existing work force.--Subsequent to

consolidation or merger, the consolidated or merged municipality

may, in accordance with existing collective bargaining

agreements, contracts, settlements or arbitration award

provisions, and consistent with applicable laws, reduce the

number of uniformed and nonuniformed employees to avoid

overstaffing and duplication of positions in the consolidated or

merged municipality. If a consolidated or merged municipality

determines in its discretion that it is necessary to increase

the number of uniformed or nonuniformed employees, employees of

the constituent municipalities shall be reinstated in the order

of their seniority if they had been previously furloughed.

(c)  Disputes.--The Pennsylvania Labor Relations Board shall

have jurisdiction to determine labor disputes or controversies,

except those arising out of interpretation or construction of a

collective bargaining agreement containing provision for binding

arbitration, between the consolidated or merged municipality and

its employees.

[(d)  Effect on existing law.--Nothing in this section shall

prohibit a consolidated or merged municipality from exercising

its powers and responsibilities pursuant to provisions of law

related to collective bargaining, including, but not limited to,

the act of June 24, 1968 (P.L.237, No.111), referred to as the

Policemen and Firemen Collective Bargaining Act, and the act of

July 23, 1970 (P.L.563, No.195), known as the Public Employe

Relations Act.]

Section 2.  Sections 607(f) and 704 of the act, added October

20, 2011 (P.L.318, No.79), are amended to read:

Section 607.  Consent agreement.

* * *

(f)  Collective bargaining.--A collective bargaining

agreement, contract or [arbitration] settlement executed, and a

collective bargaining arbitration award rendered, following

enactment of an ordinance under this section may not in any

manner violate, expand or diminish the provisions of the consent

agreement.     

Section 704.  Confirmation.

(a)  Effect of confirmation.--The confirmation of the

recovery plan and any modification to the receiver's plan under

section 703 shall have the effect of:

(1)  imposing on the elected and appointed officials of

the distressed city or an authority a mandatory duty to

undertake the acts set forth in the recovery plan;

(2)  suspending the authority of the elected and

appointed officials of the distressed city or an authority to

exercise power on behalf of the distressed city or authority

pursuant to law, charter, ordinance, rule or regulation to

the extent that the power would interfere with the powers

granted to the receiver or the goals of the recovery plan;

and

(3)  superseding the emergency action plan developed by

the secretary under section 602.

(b)  Form of government.--Confirmation of the recovery plan

and any modification to the plan under section 703 shall not be

construed to:

(1)  change the form of government of the distressed city

or an authority; or

(2)  except as set forth in subsection (a), affect powers

and duties of elected and appointed officials of the

distressed city or an authority.

(c)  Collective bargaining.--A collective bargaining

agreement, contract or [arbitration] settlement executed, and a

collective bargaining arbitration award rendered, after

confirmation of a recovery plan may not in any manner violate,

expand or diminish the provisions of the recovery plan.

Section 3.  This act shall take effect in 60 days.