AN ACT

 

1Amending the act of July 10, 1987 (P.L.246, No.47), entitled "An
2act empowering the Department of Community Affairs to declare
3certain municipalities as financially distressed; providing
4for the restructuring of debt of financially distressed
5municipalities; limiting the ability of financially
6distressed municipalities to obtain government funding;
7authorizing municipalities to participate in Federal debt
8adjustment actions and bankruptcy actions under certain
9circumstances; and providing for consolidation or merger of
10contiguous municipalities to relieve financial distress,"
11further providing for the duration and termination of fiscal
12emergency and suspension of powers; in receivership in cities
13of the third class, further providing for termination of
14receivership; and providing for continuation of recovery
15plan.

16The General Assembly of the Commonwealth of Pennsylvania
17hereby enacts as follows:

18Section 1. Sections 608 and 710 of the act of July 10, 1987
19(P.L.246, No.47), known as the Municipalities Financial Recovery
20Act, added October 20, 2011 (P.L.318, No.79), are amended to
21read:

22Section 608. Termination of fiscal emergency and suspension of
23powers.

24(a) [Financial] Fiscal emergency.--A fiscal emergency shall

1end upon certification by the secretary that the city [is no
2longer financially distressed.]:

3(1) is solvent and is not projected to be insolvent
4within 180 days or less; and

5(2) is able to ensure the continued provision of vital
6and necessary services after the termination of the fiscal
7emergency.

8(b) Governor's powers.--The emergency powers of the Governor
9under this chapter shall be suspended upon the enactment and
10continued implementation of an ordinance under section 607 or
11entry of a judicial order appointing a receiver under section
12702.

13Section 710. Termination of receivership.

14(a) Time.--Except as provided under subsection (b) or (c),
15the receivership under this chapter shall expire two years after
16the appointment of the receiver.

17(b) Extension.--The secretary may petition Commonwealth
18Court for one or more extensions of the receivership. The court
19shall grant each extension for another two years if the
20secretary establishes by a preponderance of the evidence that
21further implementation of the recovery plan is necessary to end
22the fiscal emergency.

23(c) Termination of fiscal emergency.--Notwithstanding the
24date of expiration of receivership under subsection (a) or an
25extension of receivership under subsection (b), the receivership
26shall terminate upon the secretary's termination of a fiscal
27emergency under section 608(a).

28Section 2. The act is amended by adding a section to read:

29Section 710.1. Continuation of recovery plan.

30(a) Administrative determination required.--Within 30 days

1of the termination or expiration of the receivership under
2section 710, the secretary shall issue one of the following
3administrative determinations:

4(1) conditions within the city warrant a termination in
5status in accordance with section 253; or

6(2) the city continues to be financially distressed.

7(b) Appointment of coordinator.--Upon a determination under
8subsection (a)(2), a recovery plan confirmed under section 703
9shall remain in effect and be deemed to be a plan adopted under
10Chapter 2. The secretary shall appoint a coordinator in
11accordance with section 221. The receiver may be appointed as
12coordinator. The coordinator shall implement the plan under
13section 247(a) subject to the following:

14(1) The plan shall be subject to amendment in accordance
15with section 249, provided that nothing in this section shall
16authorize the impairment of existing lawful contractual or
17legal obligations of the distressed city except where
18otherwise permitted by law.

19(2) The coordinator may exercise the same powers and
20duties of this chapter as a receiver for the purposes of
21issuing orders under section 708 and seek enforcement of such
22orders under section 709. Commonwealth Court shall retain
23jurisdiction to hear an action under this paragraph.

24(c) Conditions for increasing taxes on nonresident income.--
25Notwithstanding any other provision of law, a city exiting
26receivership and subject to a determination under subsection (a)
27(2) shall be subject to the same requirements as a city of the
28second class A under section 123(c)(3) before being authorized
29to increase the rate of taxation on nonresident income.

30Section 3. This act shall take effect immediately.