PRINTER'S NO. 1323
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1232
Session of
2023
INTRODUCED BY JAMES, FREEMAN, SAPPEY, SMITH-WADE-EL AND MOUL,
MAY 24, 2023
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 24, 2023
AN ACT
Amending Title 8 (Boroughs and Incorporated Towns) of the
Pennsylvania Consolidated Statutes, in powers and duties of
elected officials, further providing for surcharge by
auditors; in powers, duties and rights of appointed officers
and employees, further providing for borough manager created
by ordinance and election, for powers and duties, for other
offices not incompatible and for organization of commission;
and, in taxation and finance, further providing for
preparation of budget.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1059.3(a)(2), 1141, 1142, 1143, 1174(a)
and 1307 of Title 8 of the Pennsylvania Consolidated Statutes
are amended to read:
§ 1059.3. Surcharge by auditors.
(a) Surcharges.--
* * *
(2) The following shall apply:
(i) No elected or appointed official of a borough
may be surcharged for any act, error or omission in
excess of the actual financial loss sustained by the
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borough.
(ii) A surcharge shall take into consideration as
its basis the results of the act, error or omission and
the results had the procedure been strictly in accordance
with law.
(iii) Subparagraph (i) shall not apply to cases
involving fraud or collusion on the part of officers nor
to any penalty enuring to the benefit of or payable to
the Commonwealth. Notwithstanding this section, the
procedures in the act of May 25, 1945 (P.L.1050, No.394),
known as the Local Tax Collection Law, shall apply to
balances and shortages in the tax accounts of the tax
collector.
(iv) No elected or appointed official of a borough
may be surcharged if the official acted in good faith
reliance on a written, nonconfidential opinion of the
solicitor of the borough or on an opinion of the borough
solicitor publicly stated at an open meeting of the
borough and recorded in the official minutes of the
meeting. This subparagraph shall not apply if a
solicitor's opinion has been rendered under duress or if
the parties seeking and rendering the solicitor's opinion
have colluded to purposefully commit a violation of law.
As used in this subparagraph, the term "solicitor" shall
include a special counsel appointed by the borough for a
specific matter.
* * *
§ 1141. Borough manager created by ordinance and election.
(a) General rule.--The council of a borough may, at its
discretion at any time, create by ordinance the office of
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borough manager and may, in like manner, abolish the office.
While the office exists, the council shall, from time to time,
and if there is a vacancy, elect, by a vote of a majority of all
the members, one [person to fill the office.] individual,
partnership, limited partnership, association or professional
corporation as the borough manager.
(b) Subject to [employment] agreement.--The borough manager
shall serve at the pleasure of council, subject to contractual
rights that may arise under an employment agreement or
professional services agreement that may be entered in
accordance with section 1142 (relating to powers and duties).
§ 1142. Powers and duties.
(a) General rule.--The powers and duties of the borough
manager shall be regulated by ordinance.
(b) Employment or professional services agreement.--
(1) Council may enter into an employment or professional
services agreement with the borough manager that specifies
the terms and conditions of employment.
(2) The employment or professional services agreement
may remain in effect for a specified period terminating no
later than two years after the effective date of the
agreement or the date of the organizational meeting of
council following the next municipal election, whichever
occurs first.
(3) An employment or professional services agreement
entered into under this section may specify conditions under
which a borough manager who is an individual will be entitled
to severance compensation[, but in no] or, in the case of a
partnership, a limited partnership, an association or a
professional corporation, payments for the termination of
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appointment. In no event may the employment or professional
services agreement guarantee retention or employment through
the term of the agreement or confer upon the borough manager
any legal remedy based on specific performance.
(4) An employment or professional services agreement
with a borough manager executed on or after a municipal
election but before the first meeting in January the year
after the municipal election shall be void.
(5) The council may delegate to the borough manager, by
ordinance and subject to recall, any of the nonlegislative
and nonjudicial powers and duties of the council, the
planning commission and the shade tree commission. With
approval of council, the mayor may delegate to the borough
manager any of the mayor's nonlegislative and nonjudicial
powers and duties.
(c) Status as public official.--The borough manager, if an
individual, and, for a partnership, limited partnership,
association or professional corporation appointed as the borough
manager, each officer and employee directly providing services
as required or authorized by the agreement shall be considered a
public official for purposes of the provisions of 65 Pa.C.S. §
1103 (relating to restricted activities).
§ 1143. Other offices not incompatible.
(a) General rule.--The offices of borough manager, street
commissioner, secretary, treasurer and chief of police shall not
be incompatible, and any two or more or all of the offices may
be held by one person. Neither the mayor nor any member of the
council shall be eligible to hold the office of borough manager.
(b) Applicability.--In the case of a partnership, limited
partnership, association or professional corporation appointed
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as the borough manager, the restriction under subsection (a)
shall apply to each officer and employee who directly provides
services as required or authorized by the agreement.
§ 1174. Organization of commission.
(a) General rule.--The commission first appointed shall
organize within ten days of its appointment and shall elect one
of its members as the chair and one as the secretary. [The]
Thereafter, the commission shall meet and organize [on] within
30 days of the first Monday of each even-numbered year. Each
commissioner shall be notified in writing of each and every
meeting.
* * *
§ 1307. Preparation of budget.
[Beginning at least 30 days prior] Prior to the adoption of
the budget, a proposed budget or annual estimate of revenues and
expenditures for the ensuing year shall be prepared in a manner
designated by the council. The proposed budget shall be kept on
file with the borough secretary and be made available for public
inspection by the borough secretary for a period of ten days.
Section 2. This act shall take effect in 60 days.
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