SENATE AMENDED
PRIOR PRINTER'S NOS. 1304, 1322, 1776, PRINTER'S NO. 3872
1830, 3780
No. 1174 Session of 1995
INTRODUCED BY BUTKOVITZ, DeWEESE, L. I. COHEN, ITKIN, THOMAS,
M. COHEN, WOGAN, KENNEY, YOUNGBLOOD, TIGUE, MANDERINO,
LEDERER, KELLER, O'BRIEN, CORRIGAN AND JAMES, MARCH 14, 1995
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 26, 1996
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of "Authorities" for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," further providing for purposes and powers, for <--
15 governing body, for investment of authority funds and for
16 conveyance by authorities to municipalities or school
17 districts of established projects. FOR INVESTMENT OF <--
18 AUTHORITY FUNDS.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Clause (w) of subsection B and subsection E of <--
22 section 4 of the act of May 2, 1945 (P.L.382, No.164), known as
23 the Municipality Authorities Act of 1945, amended or added April
24 10, 1980 (P.L.105, No.41) and July 3, 1980 (P.L.360, No.91), are
1 amended and subsection B is amended by adding a clause to read:
2 Section 4. Purposes and Powers; General.--* * *
3 B. Every Authority is hereby granted, and shall have and may
4 exercise all powers necessary or convenient for the carrying out
5 of the aforesaid purposes, including but without limiting the
6 generality of the foregoing, the following rights and powers:
7 * * *
8 (h.3) To maintain an annual listing of customer complaints
9 on all issues relating to service and rates and to make such
10 complaint records available for inspection by customers of the
11 Authority and to permit any customer of the Authority to make
12 photocopies and extracts of these complaints at reasonable costs
13 and times as determined by the board.
14 * * *
15 (w) An Authority, created to provide business improvements
16 and administrative services, may impose an assessment on each
17 benefited property within a business improvement district which
18 shall be based upon the estimated cost of the improvements or
19 services in such district stated in the planning or feasibility
20 study. For the purposes of this act, a benefited property may be
21 defined as one that benefits from the improvements or services
22 provided by the Authority, regardless of its tax status.
23 Such individual assessments shall be determined by one of the
24 following methods:
25 (1) By an assessment determined by multiplying the total
26 improvement or service cost by the ratio of the assessed value
27 of the benefited property, as assessed by the Authority, to the
28 total assessed valuation of all benefited properties in the
29 district, as assessed by the Authority.
30 (2) By an assessment upon the several properties in the
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1 district in proportion to benefits as ascertained by viewers
2 appointed in accordance with municipal law.
3 No assessment or charge shall be made unless such Authority
4 has submitted the plan for business improvements and
5 administrative services together with estimated costs and the
6 proposed method of assessments for business improvements and
7 charges for administrative services to the municipality in which
8 the project is to be undertaken and the municipality shall have
9 approved the plan, the estimated costs and the proposed method
10 of assessment and charges.
11 There shall not be assessed any charges against the improved
12 properties an aggregate amount in excess of the estimated cost.
13 Such Authority may by resolution authorize the payment of the
14 assessment or charge in equal annual, or more frequent
15 installments over such time and bearing interest at such rate
16 not in excess of six per centum as may be specified in the
17 resolution. Where bonds shall have been issued and sold, or
18 notes or guarantees given or issued, to provide for the cost of
19 the improvements or services the assessment in equal
20 installments for bond repayment shall not be payable beyond the
21 term for which the bonds, notes or guarantees are payable.
22 Claims to secure the assessments shall be entered in the
23 prothonotary's office of the county at the same time and in the
24 form and shall be collected in the same manner as municipal
25 claims are filed and collected notwithstanding the provisions of
26 this section as to installment payments.
27 In the case of default in the payment of any installment and
28 interest for a period of sixty days after it becomes due, the
29 entire assessment and accrued interest shall be due.
30 Any owner of property, against whom an assessment has been
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1 made, may pay the same in full, at any time, with accrued
2 interest and costs thereon, and such payment shall discharge the
3 lien of such assessment.
4 * * *
5 E. An Authority may be established to make business
6 improvements or provide administrative services in districts
7 designed herein by the municipality or municipalities acting
8 jointly and zoned commercial or used for general commercial
9 purposes or in contiguous areas, provided the inclusion of a
10 contiguous area is directly related to the improvements and
11 services proposed by such Authority.
12 Such Authority shall make planning or feasibility studies to
13 determine needed improvements or administrative services.
14 Written notice of the proposed improvement or service, the
15 estimated cost thereof and the proposed method of assessment and
16 charges and project cost to individual property owners shall be
17 given to each property owner and commercial lessees in benefited
18 properties in the district at least thirty days prior to the
19 public hearing.
20 Such Authority shall be required to hold a public hearing on
21 the proposed improvement or service, the estimated costs thereof
22 and the proposed method of assessment and charges. Notice of
23 such hearing shall be advertised at least ten days prior thereto
24 in a newspaper whose circulation is within the municipality
25 where such Authority is established. At such public hearing any
26 interested party may be heard.
27 Such Authority shall take no further action on any proposed
28 improvement or service if objection is made in writing by
29 persons representing the ownership of one-third, in numbers of
30 the benefited properties in the district or by property owners
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1 of the proposed district whose benefited property valuation as
2 assessed for taxable purposes shall amount to more than one-
3 third of the total benefited property valuation of the district.
4 The Authority shall determine whether benefited properties that
5 are exempt from payment of real estate taxes may or may not be
6 assessed and may or may not be counted in the total number of
7 benefited properties for this purpose. Objection shall be made
8 within forty-five days after the conclusion of the public
9 hearing on the proposed improvement or service. Objections must
10 be in writing, signed and filed in the office of the governing
11 body of the municipality in which the district is located and in
12 the registered office of such Authority. If the Authority has no
13 registered office, the objections, in writing, must be sent to
14 the registered address of such an Authority.
15 Any property owner who has filed an objection as described
16 above and wishes to withdraw that objection must file a
17 notarized statement which states that he is withdrawing such
18 objection, in the office of the governing body of the
19 municipality in which the district is located and in the
20 registered office of such Authority. If the Authority has no
21 registered office, the notarized statement must be sent to the
22 registered address of the Authority.
23 Section 2. Clause (b) of subsection A of section 7 of the
24 act, amended March 14, 1978 (P.L.12, No.7), is amended to read:
25 Section 7. Governing Body.--A. The powers of each Authority
26 shall be exercised by a governing body (herein called the
27 "Board") composed as follows:
28 * * *
29 (b) If the Authority is incorporated by two or more
30 municipalities, the board shall consist of a number of members
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1 at least equal to the number of municipalities incorporating the
2 Authority, but in no event less than five. When one or more
3 additional municipalities join an existing Authority, each of
4 such joining municipalities shall have such membership on the
5 board as the municipalities then members of the Authority and
6 the joining municipalities may determine by appropriate
7 resolutions. The members of the board of a joint Authority shall
8 each be appointed by the governing body of the incorporating or
9 joining municipality he represents and their terms of office
10 shall commence on the date of appointment. One member shall
11 serve for one year, one for two years, one for three years, one
12 for four years and one for five years from the first Monday in
13 January next succeeding the date of incorporation, amendment or
14 joinder, and if there are more than five members of the board,
15 their terms shall be staggered in a similar manner for terms of
16 from one to five years from the first Monday in January next
17 succeeding. Thereafter, whenever a vacancy has occurred by
18 reason of the expiration of the term of any member, the
19 governing body of the municipality which has the power of
20 appointment shall appoint a member of the board for a term of
21 five years from the date of expiration of the prior term.
22 Except as herein provided for transit authorities created for
23 the purpose of eliminating grade crossings the members of the
24 board, each of whom shall be a taxpayer in, maintain a business
25 in, or be a citizen of the municipality by which he is appointed
26 or be a taxpayer in, maintain a business in, or be a citizen of
27 a municipality into which one or more of the projects of the
28 Authority extends or is to extend or to which one or more of
29 said projects has been or is to be leased, shall be appointed,
30 their terms fixed and staggered, and vacancies filled[, and
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1 where]. Where two or more municipalities are members of the
2 Authority, the membership of the board shall be apportioned in
3 such manner as the articles of incorporation, the amendments
4 thereof or the application for membership required by section
5 three point one of this act shall provide [not]. Not more than
6 one [non-resident] person who is not a taxpayer in, does not
7 maintain a business in, or is not a citizen of the municipality
8 by which he is appointed shall be appointed to any board.
9 If the Authority, is created for the purpose of eliminating
10 grade crossings, the members of the board, the majority of whom
11 shall be citizens of the municipality by which they are
12 appointed or of a municipality into which one or more of the
13 projects of the Authority extends or is to extend or to which
14 one or more of said projects has been or is to be leased, shall
15 be appointed, their terms fixed and staggered, and vacancies
16 filled, and where two or more municipalities are members of the
17 Authority, shall be apportioned in such manner as the articles
18 of incorporation, the amendments thereof or the application for
19 membership required by section 3.1 of this act shall provide.
20 * * *
21 Section 3. Section 7.1 of the act, added July 10, 1981
22 SECTION 1. SECTION 7.1 OF THE ACT OF MAY 2, 1945 (P.L.382, <--
23 NO.164), KNOWN AS THE MUNICIPALITIES AUTHORITIES ACT OF 1945,
24 ADDED JULY 10, 1981 (P.L.221, No.70), is amended to read:
25 Section 7.1. Investment of Authority Funds.--A. The board
26 shall have the power to:
27 (a) make investment of Authority sinking funds in the manner
28 provided for local government units by the act of July 12, 1972
29 (P.L.781, No.185), known as the "Local Government Unit Debt
30 Act";
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1 (b) make investment of moneys in the general fund and in
2 special funds of the Authority other than the sinking funds as
3 authorized by this section; and
4 (c) liquidate any such investment, in whole or in part, by
5 disposing of securities or withdrawing funds on deposit. Any
6 action taken to make or to liquidate any investment shall be
7 made by the officers designated by action of the board.
8 B. The board shall invest Authority funds consistent with
9 sound business practice[.] and the standard of prudence
10 applicable to the State Employees' Retirement System set forth
11 in 71 Pa.C.S. § 5931(a) (relating to management of fund and
12 accounts).
13 C. The board shall provide for an investment program subject
14 to restrictions contained in this act and in any other
15 applicable statute and any rules and regulations adopted by the
16 board.
17 D. Authorized types of investments for Authority funds shall
18 be:
19 (a) United States Treasury bills.
20 (b) Short-term obligations of the United States Government
21 or its agencies or instrumentalities.
22 (c) Deposits in savings accounts or time deposits or share
23 accounts of institutions insured by the Federal Deposit
24 Insurance Corporation or the Federal Savings and Loan Insurance
25 Corporation or the National Credit Union Share Insurance Fund to
26 the extent that such accounts are so insured, and, for any
27 amounts above the insured maximum, provided that approved
28 collateral as provided by law therefore shall be pledged by the
29 depository.
30 (d) Obligations of the United States of America or any of
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1 its agencies or instrumentalities backed by the full faith and
2 credit of the United States of America, the Commonwealth of
3 Pennsylvania or any of its agencies or instrumentalities backed
4 by the full faith and credit of the Commonwealth, or of any
5 political subdivision of the Commonwealth of Pennsylvania or any
6 of its agencies or instrumentalities backed by the full faith
7 and credit of the political subdivision.
8 (e) Shares of an investment company registered under the
9 Investment Company Act of 1940, whose shares are registered
10 under the Securities Act of 1933, provided that the only
11 investments of that company are in the authorized investments
12 for Authority funds listed in clauses (a) through (d).
13 (f) Sovereign debt, provided that the instruments are dollar
14 denominated and backed by the full faith and credit of the
15 sovereign government, that said investments do not exceed more
16 than two per centum of the market value of the Authority's
17 assets at the time of investment, that the maturity of the
18 instruments does not exceed fifteen years, that the obligations
19 are permitted investments of the State Employees' Retirement
20 System and that it is established that the issuer had issued
21 such sovereign debt over a period of at least thirty years and
22 has not defaulted on the payment either of principal or interest
23 on its obligations. This clause shall only apply to a board in a
24 county of the first class, second class or second class A or in
25 a city of the first class, second class, second class A or third
26 class.
27 E. In making investments of Authority funds, the board shall
28 have authority:
29 (a) To permit assets pledged as collateral under subsection
30 D(c), to be pooled in accordance with the act of August 6, 1971
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1 (P.L.281, No.72), entitled "An act standardizing the procedures
2 for pledges of assets to secure deposits of public funds with
3 banking institutions pursuant to other laws; establishing a
4 standard rule for the types, amounts and valuations of assets
5 eligible to be used as collateral for deposits of public funds;
6 permitting assets to be pledged against deposits on a pooled
7 basis; and authorizing the appointment of custodians to act as
8 pledgees of assets."
9 (b) To combine moneys from more than one fund under
10 Authority control for the purchase of a single investment,
11 provided that lack of the funds combined for the purpose shall
12 be accounted for separately in all respects and that earnings
13 from the investment are separately and individually computed and
14 recorded, and credited to the accounts from which the investment
15 was purchased.
16 (c) To join with one or more other political subdivisions
17 and municipal authorities in accordance with the act of July 12,
18 1972 (P.L.762, No.180), referred to as the Intergovernmental
19 Cooperation Law, in the purchase of a single investment,
20 provided that the requirements of clause (b) on separate
21 accounting of individual funds and separate computation,
22 recording and crediting of the earnings therefrom are followed.
23 Section 4. Section 18 of the act is amended by adding a <--
24 subsection to read:
25 Section 18. Conveyance by Authorities to Municipalities or
26 School Districts of Established Projects.--* * *
27 A.1. Following any transfer of a project pursuant to this
28 section, the municipality or municipalities, including an
29 incorporated town or towns or home rule municipality or
30 municipalities, which have acquired the project shall retain the
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1 reserves received from the Authority which have been derived
2 from operations in a separate fund, which reserves shall be used
3 only for the purposes of operating, maintaining, repairing,
4 improving and extending the project. Money received from the
5 Authority which represents the proceeds of financing shall be
6 retained by the municipality or municipalities in a separate
7 fund which shall be used only for improving or extending the
8 project or other capital purposes related thereto.
9 * * *
10 SECTION 2. SECTION 18 OF THE ACT IS AMENDED BY ADDING A <--
11 SUBSECTION TO READ:
12 SECTION 18. CONVEYANCE BY AUTHORITIES TO MUNICIPALITIES OR
13 SCHOOL DISTRICTS OF ESTABLISHED PROJECTS.--* * *
14 D. FOLLOWING ANY TRANSFER OF A PROJECT PURSUANT TO THIS
15 SECTION, THE MUNICIPALITY OR MUNICIPALITIES, INCLUDING AN
16 INCORPORATED TOWN OR TOWNS OR HOME RULE MUNICIPALITY OR
17 MUNICIPALITIES, WHICH HAVE ACQUIRED THE PROJECT SHALL RETAIN THE
18 RESERVES RECEIVED FROM THE AUTHORITY WHICH HAVE BEEN DERIVED
19 FROM OPERATIONS IN A SEPARATE FUND, WHICH RESERVES SHALL BE USED
20 ONLY FOR THE PURPOSES OF OPERATING, MAINTAINING, REPAIRING,
21 IMPROVING AND EXTENDING THE PROJECT. MONEY RECEIVED FROM THE
22 AUTHORITY WHICH REPRESENTS THE PROCEEDS OF FINANCING SHALL BE
23 RETAINED BY THE MUNICIPALITY OR MUNICIPALITIES IN A SEPARATE
24 FUND WHICH SHALL BE USED ONLY FOR IMPROVING OR EXTENDING THE
25 PROJECT OR OTHER CAPITAL PURPOSES RELATED THERETO.
26 Section 5 2 3. This act shall take effect in 60 days. <--
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