PRIOR PRINTER'S NO. 3506 PRINTER'S NO. 3563
No. 2568 Session of 1988
INTRODUCED BY MAINE, WAMBACH, BELARDI, JAROLIN, LUCYK, TIGUE, DeWEESE, McHALE, WOZNIAK, FREEMAN, HASAY, DIETTERICK, CAPPABIANCA, CORRIGAN, ITKIN, HECKLER, HONAMAN, GRUITZA, FARMER, JADLOWIEC, ROBBINS, BLACK, MERRY AND RITTER, JUNE 15, 1988
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 27, 1988
AN ACT
1 Amending the act of July 10, 1987 (P.L.246, No.47), entitled "An
2 act empowering the Department of Community Affairs to declare
3 certain municipalities as financially distressed; providing
4 for the restructuring of debt of financially distressed
5 municipalities; limiting the ability of financially
6 distressed municipalities to obtain government funding;
7 authorizing municipalities to participate in Federal debt
8 adjustment actions and bankruptcy actions under certain
9 circumstances; and providing for consolidation or merger of
10 contiguous municipalities to relieve financial distress,"
11 providing for the establishment of a revolving fund; further
12 providing for criteria to declare a municipality distressed
13 and for the publication of certain notices; establishing a
14 revolving loan fund; PROVIDING FOR REVISION AND ADOPTION OF <--
15 PLANS BY MUNICIPALITIES; further providing for expiration of
16 the act; and making a repeal.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Sections 201(8) and 242(a), 242(A), 244 AND 245 <--
20 of the act of July 10, 1987 (P.L.246, No.47), known as the
21 Financially Distressed Municipalities Act, are amended to read:
22 Section 201. Criteria.
23 The evaluation of a municipality's financial stability by the
1 department under section 121 shall include each of the following 2 criteria. If at least one criterion is present and the 3 department assesses pursuant to section 121(b) that it is a 4 valid indication of municipal financial distress, then the 5 department shall exercise its powers and duties pursuant to 6 section 121. 7 * * * 8 (8) The municipality has failed to make the budgeted 9 payment of its minimum municipal obligation as required by 10 section 302, 303 or 602 of the act of December 18, 1984 11 (P.L.1005, No.205), known as the Municipal Pension Plan 12 Funding Standard and Recovery Act, with respect to a pension 13 fund during the fiscal year for which the payment was 14 budgeted and has failed to take action within that time 15 period to make required payments. 16 * * * 17 Section 242. Publication. 18 (a) Filing.--Within 90 days of [being named] an executable <-- 19 EXECUTED contract between the department and the coordinator, <-- 20 the coordinator shall formulate a plan for relieving the 21 municipality's financial distress and shall deliver true and 22 correct copies of it to: 23 (1) The municipal clerk or municipal secretary, who 24 shall immediately place the copy on file for public 25 inspection in the municipal office. 26 (2) The secretary. 27 (3) Each member of the municipal governing body. 28 (4) The mayor. 29 (5) The chief financial officer of the municipality. 30 (6) The solicitor of the municipal governing body. 19880H2568B3563 - 2 -
1 (7) All parties who have petitioned the secretary under 2 section 203. 3 * * * 4 SECTION 244. REVISION. <-- 5 [NEITHER THE SECRETARY NOR THE CHIEF EXECUTIVE OFFICER OR THE 6 GOVERNING BODY, AS APPROPRIATE, MAY REVISE THE COORDINATOR'S 7 PLAN. HOWEVER] IF THE COORDINATOR DECIDES TO REVISE THE PLAN, 8 THE COORDINATOR SHALL CONSULT WITH THE SECRETARY AND EITHER THE 9 CHIEF EXECUTIVE OFFICER OR THE GOVERNING BODY THROUGHOUT THE 10 REVISION OF THE PLAN AND SHALL GIVE CONSIDERATION TO COMMENTS 11 THEY MAY PROPOSE. A REVISED PLAN SHALL BE COMPLETED AND 12 DELIVERED TO EACH PARTY CITED IN SECTION 242(A)(1) THROUGH (7) 13 WITHIN 10 DAYS FROM THE DATE OF THE COORDINATOR'S PUBLIC MEETING 14 ON THE ORIGINAL PLAN. 15 SECTION 245. ADOPTION BY MUNICIPALITY. 16 NOT LATER THAN [15] 25 DAYS FOLLOWING THE COORDINATOR'S 17 PUBLIC MEETING, THE MUNICIPAL GOVERNING BODY SHALL EITHER ENACT 18 AN ORDINANCE APPROVING THE IMPLEMENTATION OF THE PLAN, INCLUDING 19 ENACTMENT OF NECESSARY RELATED ORDINANCES AND REVISIONS TO 20 ORDINANCES, OR SHALL REJECT THE PLAN AND PROCEED UNDER SECTION 21 246. IF THE ORDINANCE TAKES EFFECT IN A MUNICIPALITY OPERATING 22 UNDER AN OPTIONAL PLAN FORM OF GOVERNMENT OR A HOME RULE 23 CHARTER, THE CHIEF EXECUTIVE OFFICER MAY ISSUE AN ORDER 24 DIRECTING THE IMPLEMENTATION OF THE PLAN NO LATER THAN SEVEN 25 DAYS FROM THE ENACTMENT OF THE ORDINANCE BY THE GOVERNING BODY. 26 Section 2. Section 301 of the act is amended by adding a 27 subsection to read: 28 Section 301. Program. 29 * * * 30 (c) Revolving fund.--There is hereby created in the State 19880H2568B3563 - 3 -
1 Treasury the Financially Distressed Municipalities Revolving Aid 2 Fund. Repayment of principal on all loans made under this act 3 shall be deposited in the fund. Any interest earned on moneys in 4 this fund shall be deposited in the fund. All moneys in the fund 5 may be used to make loans for the purposes of this act. 6 Section 3. Section 304 of the act is repealed. 7 Section 4. Section 602 of the act is amended to read: 8 Section 602. Expiration. 9 Section 203(a)(5) shall expire upon publication in the 10 Pennsylvania Bulletin of the notice required under section 11 [121(g)] 121(f). 12 Section 5. This act shall take effect immediately. E12L53RZ/19880H2568B3563 - 4 -