1Amending the act of July 31, 1968 (P.L.805, No.247), entitled,
2as amended, "An act to empower cities of the second class A,
3and third class, boroughs, incorporated towns, townships of
4the first and second classes including those within a county
5of the second class and counties of the second through eighth
6classes, individually or jointly, to plan their development
7and to govern the same by zoning, subdivision and land
8development ordinances, planned residential development and
9other ordinances, by official maps, by the reservation of
10certain land for future public purpose and by the acquisition
11of such land; to promote the conservation of energy through
12the use of planning practices and to promote the effective
13utilization of renewable energy sources; providing for the
14establishment of planning commissions, planning departments,
15planning committees and zoning hearing boards, authorizing
16them to charge fees, make inspections and hold public
17hearings; providing for mediation; providing for transferable
18development rights; providing for appropriations, appeals to
19courts and penalties for violations; and repealing acts and
20parts of acts," providing for review fees.

21The General Assembly of the Commonwealth of Pennsylvania
22hereby enacts as follows:

23Section 1. Section 603 of the act of July 31, 1968 (P.L.805,
24No.247), known as the Pennsylvania Municipalities Planning Code,
25reenacted and amended December 21, 1988 (P.L.1329, No.170), is
26amended by adding a subsection to read:

27Section 603. Ordinance Provisions.--* * *

1(m) Zoning ordinances may include provisions for the 
2charging of review fees for the municipality's evaluation of 
3conditional use applications pursuant to express standards and 
4criteria set forth in the zoning ordinance, consistent with 
5subsection (c)(2) and section 913.2. Review fees may include 
6reasonable and necessary charges by the municipality's 
7professional consultants for review and report on a conditional 
8use application to the municipality. Review fees charged under 
9this subsection shall be based upon a schedule established by 
10ordinance or resolution and shall be in accordance with the 
11ordinary and customary charges for similar service in the 
12community, but in no event shall the fees exceed the rate or 
13cost charged by the professional consultants for comparable 
14services to the municipality for services which are not 
15reimbursed or otherwise imposed on applicants. Review fees 
16charged under this subsection shall not duplicate review fees 
17charged under section 503(1). Fees charged to the municipality 
18relating to any appeal of a decision on an application shall not 
19be considered review fees and may not be charged to an 
20applicant.

21(1) Upon making a decision on an application, the
22governing body shall submit to the applicant an itemized bill
23showing work performed, identifying the person performing the
24services and the time and date spent for each task.

25(2) In the event the applicant disputes the amount of
26any such review fees, the applicant shall, not later than 30
27days after the date of transmittal of the bill to the
28applicant, notify the municipality and the municipality's
29professional consultant that such fees are disputed and shall
30explain the basis of its objections to the fees charged.

1Failure of the applicant to dispute a bill within 30 days of
2transmittal of the bill shall be a waiver of the applicant's
3right to arbitration of that bill pursuant to this
4subsection.

5(3) If, within 30 days after the applicant's
6notification of dispute, the applicant and the municipality's
7professional consultant cannot agree on the amount of review
8fees that are reasonable and necessary, then the applicant
9shall have the right to request the appointment of another
10professional consultant to serve as an arbitrator. The
11applicant and municipality's professional consultant shall,
12within 20 days of the request and by mutual agreement,
13appoint an arbitrator to review any disputed bills and make a
14determination as to the amount thereof that is reasonable and
15necessary. The arbitrator shall be of the same profession as
16the professional consultant whose fees are being challenged.

17(4) In the event that the municipality's professional
18consultant and applicant cannot agree upon the arbitrator to
19be appointed within 20 days of the request for appointment,
20then, upon application of either party, the president judge
21of the court of common pleas of the judicial district in
22which the municipality is located or, if at the time there be
23no president judge, then the senior active judge then sitting
24shall appoint such arbitrator, who, in that case, shall be
25neither the municipality's professional consultant nor any
26professional consultant who has been retained by, or
27performed services for, the municipality or the applicant
28within the preceding five years.

29(5) The arbitrator so appointed shall hear such evidence
30and review such documentation as the arbitrator in his sole

1opinion deems necessary and shall render a decision not later
2than 50 days after the date of appointment. Based on the
3decision of the arbitrator, the applicant or the
4municipality's professional consultant shall be required to
5pay any amounts necessary to implement the decision within 60
6days following the decision. In the event the municipality
7has paid the professional consultant an amount in excess of
8the amount determined to be reasonable and necessary, the
9professional consultant shall within 60 days reimburse the
10excess payment.

11(6) The fee of the arbitrator shall be paid by the
12applicant if the review fee charged is sustained by the
13arbitrator or it shall be divided equally between the
14municipality's professional consultant and the applicant. If
15the disputed fees are found to be excessive by more than
16$5,000, the arbitrator shall have the discretion to assess an
17amount greater than 50% of the arbitration fee against the
18municipality's professional consultant. The governing body
19and the consultant whose fees are the subject of the dispute
20shall be parties to the proceeding.

21Section 2. This act shall take effect immediately.