Trial Engrossment of Amendment A03926 to House Bill 1860 P.N. 2563, Regular Session 2019-2020

A03926

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1860

Session of

2019

INTRODUCED BY LONGIETTI, NESBIT, HILL-EVANS, KENYATTA,

YOUNGBLOOD, CIRESI, ZIMMERMAN, STAATS, MALAGARI, DeLUCA,

BERNSTINE, KINSEY, FREEMAN, VITALI, NEILSON, HEFFLEY, KORTZ,

MUSTELLO AND DRISCOLL, SEPTEMBER 23, 2019

REFERRED TO COMMITTEE ON URBAN AFFAIRS, SEPTEMBER 23, 2019

AN ACT

Amending the act of May 24, 1945 (P.L.991, No.385), entitled "An

act to promote elimination of blighted areas and supply

sanitary housing in areas throughout the Commonwealth; by

declaring acquisition, sound replanning and redevelopment of

such areas to be for the promotion of health, safety,

convenience and welfare; creating public bodies corporate and

politic to be known as Redevelopment Authorities; authorizing

them to engage in the elimination of blighted areas and to

plan and contract with private, corporate or governmental

redevelopers for their redevelopment; providing for the

organization of such authorities; defining and providing for

the exercise of their powers and duties, including the

acquisition of property by purchase, gift or eminent domain;

the leasing and selling of property, including borrowing

money, issuing bonds and other obligations, and giving

security therefor; restricting the interest of members and

employes of authorities; providing for notice and hearing;

supplying certain mandatory provisions to be inserted in

contracts with redevelopers; prescribing the remedies of

obligees of redevelopment authorities; conferring certain

duties upon local planning commissions, the governing bodies

of cities and counties, and on certain State officers, boards

and departments," further providing for definitions, for

formation of authorities, for dissolution of city authorities

and for eminent domain; and making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 3(c) of the act of May 24, 1945 (P.L.991,

No.385), known as the Urban Redevelopment Law, is amended to

read:

Section 1. Section 3(c), (e) and (h) of the act of May 24,

1945 (P.L.991, No.385), known as the Urban Redevelopment Law,

are amended to read:

Section 3. Definitions.--The following terms where used in

this act, shall have the following meanings, except where the

context clearly indicates a different meaning.

* * *

[(c) "City."--Any city of the first, second, second class A

or third class. The term shall also include any borough [with a

population large enough for the borough to qualify for a charter

as a city, separately from any town, township or other borough,

under section 201 of the act of June 23, 1931 (P.L.932, No.317),

known as "The Third Class City Code," for all purposes of this

act]. "The city" shall mean the particular city or such

[qualified] borough for which a particular Authority is

created.]

* * *

(e) "Field of Operation."--The area within the territorial

boundaries of the [city] municipality or county for which a

particular Authority is created: Provided, however, That the

field of operation of any county authority shall not include a

[city] municipality having a redevelopment authority but may

include, with the consent of any such [city] municipality,

parcels of land within the [city] municipality's limits which

are necessary to the corporate purposes of the county authority

or necessary to its successful redevelopment of a redevelopment

area: And, provided further, That the field of operation of any

authority may include parcels of land outside the territorial

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boundaries of the [city] municipality or county, as the case may

be, which are necessary to the corporate purposes of the

authority or necessary to the successful redevelopment of a

redevelopment area, with the consent of the governing body of

the [city or] county [and the] or municipality in which the said

parcels are situated, as the case may be: Provided, however,

That the field of operation of any Authority shall not include

parcels of land outside the territorial boundaries of a county

unless acquisition thereof has been approved by a majority of

the electors voting in a primary or general election in the

municipality in which said parcels are situated.

* * *

(h) "Municipality."--Any county, city, borough, incorporated

town or township.

* * *

Section 2. Sections 4(a), (b) and (c), 4.1, 4.2, 5, 8, 12

and 19 of the act are amended to read:

Section 4. Formation of Authorities.--

(a) There are hereby created separate and distinct bodies

corporate and politic, one for each [city] municipality and one

for each county of the Commonwealth, as herein defined. Each

such body shall be known as the Redevelopment Authority of the

[city] municipality or the county, as the case may be, but shall

in no way be deemed to be an instrumentality of such [city]

municipality or county, or engaged in the performance of a

municipal function. Each such Authority shall transact no

business or otherwise become operative until and unless a

finding is made as hereinafter provided in this section.

(b) At any time after passage of this act the governing body

of any [city] municipality or county may find and declare by

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proper ordinance or resolution that there is need for an

Authority to function within the territorial limits of said

[city] municipality or county, as the case may be.

ordinance or resolution to be filed with the Department of State

and a duplicate thereof with the Department of Community

[Affairs] and Economic Development; upon receipt of the said

certificate the Secretary of the Commonwealth shall issue a

certificate of incorporation.

* * *

Section 4.1. Dissolution of [City] Authorities.--If [a city]

an authority of a municipality has never issued any bonds, or

incurred any other debts or contractual obligations, or has paid

and has been released from and discharged of all debts and

bonded, contractual and other obligations, the governing body of

the [city] municipality may, after three years from the date of

the certificate described in subsection (c) of section 4, or

earlier if a proper resolution of the authority requests the

action hereinafter described, find and declare by proper

resolution that its functions can be more properly carried out

by a county authority and that there is no longer any need for

the authority created for [such city] the municipality to

function. In such case the governing body shall issue a

certificate reciting the adoption of such resolution, and shall

cause such certificate to be filed with the Department of State

and two duplicates thereof with the Department of Community

[Affairs] and Economic Development. Upon such filing the [city]

authority shall cease to function, and title to any assets held

by the authority at that time shall pass to the [city]

municipality. A copy of the certificate described in this

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section shall be admissible in any suit, action or proceeding

and shall be conclusive proof that the authority has ceased to

be in existence.

Section 4.2. Dissolution of County Authorities.--If a county

authority has never issued any bonds, or incurred any other

debts or contractual obligations, or has paid and has been

released from and discharged of all debts and bonded,

contractual and other obligations, the governing body of the

county may, after three years from the date of the certificate

described in subsection (c) of section 4, or earlier if a proper

resolution of the authority requests the action hereinafter

described, find and declare by proper resolution that there is

no longer any need for the authority created for such county to

function. In such case the governing body shall issue a

certificate reciting the adoption of such resolution, and shall

cause such certificate to be filed with the Department of State

and two duplicates thereof with the Department of Community

[Affairs] and Economic Development. Upon such filing the county

authority shall cease to function, and title to any assets held

by the authority at that time shall pass to the county. A copy

of the certificate described in this section shall be admissible

in any suit, action or proceeding and shall be conclusive proof

that the authority has ceased to be in existence.

Section 5. Appointment and Qualifications of Members of

Authority.--Upon certification of a resolution declaring the

need for an Authority to operate in a [city] municipality or

county, [the mayor or board of county commissioners thereof,

respectively,] the governing body shall appoint, as members of

the Authority, five citizens who, except in the case of cities

of the third class, shall be residents of the [city]

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municipality or county in which the Authority is to operate. In

the case of a city of the third class, a majority of the members

of the Authority shall be residents of the city, and the

remainder may be nonresidents who own and operate businesses in

the city in which the Authority is to operate.

Section 8. Interest of Members or Employes.--No member or

employe of an Authority shall acquire any interest, direct or

indirect, in any redevelopment project or in any property

included or planned to be included in any redevelopment area, or

in any area which he may have reason to believe may be certified

to be a redevelopment area, nor shall he have any interest,

direct or indirect, in any contract or proposed contract for

materials or services to be furnished or used by an Authority,

or in any contract with a redeveloper or prospective redeveloper

relating, directly or indirectly, to any redevelopment project.

The acquisition of any such interest in a redevelopment project

or in any such property or contract shall constitute misconduct

in office. If any member or employe of an Authority shall

already own or control any interest, direct or indirect, in any

property later included or planned to be included in any

redevelopment project under the jurisdiction of the Authority,

or has any such interest in any contract for material or

services to be furnished or used in connection with any

redevelopment project, he shall disclose the same in writing to

the Authority and to the Department of Community [Affairs] and

Economic Development and the local governing body, and such

disclosure shall be entered in writing upon the minute books of

the Authority. Failure to make such disclosure shall constitute

misconduct in office.

Section 12. Eminent Domain.--Title to any property acquired

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by an Authority through eminent domain shall be an absolute or

fee simple title, unless a lesser title shall be designated in

the eminent domain proceedings. The Authority may exercise the

right of eminent domain in the manner provided by law for the

exercise of such right by [cities] municipalities or counties,

as the case may be, of the same class as the [city] municipality

or county in which such Authority is organized to operate. If

any of the real property in the redevelopment area which is to

be acquired has, prior to such acquisition, been devoted to

another public use, it may, nevertheless, be acquired by

condemnation: Provided, That no real property belonging to a

[city] municipality, county or to the Commonwealth may be

acquired without its consent. No real property belonging to a

public utility corporation may be acquired without the approval

of the Public Utility Commission.

Section 19. Records and Reports.--

(a) The books and records of an Authority shall at all times

be open and subject to inspection by the Department of Community

[Affairs] and Economic Development;

(b) An Authority may file with the Department of Community

[Affairs] and Economic Development such information and reports

as it may from time to time deem desirable, and shall file with

them;

(1) A copy of all by-laws and rules and regulations and

amendments thereto, adopted by it, from time to time.

(2) Copies of all redevelopment proposals and redevelopment

contracts, as well as of any changes, which may be made therein.

(3) At least once each year a report of its activities for

the preceding year, and such other reports as said department

may require. Copies of such reports shall be filed with the

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[mayor and] governing body of the [city] municipality or with

the county board of commissioners, as the case may be.

Section 2 3. This act shall take effect in 60 days.

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