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                                                      PRINTER'S NO. 1550

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1321 Session of 2001


        INTRODUCED BY T. STEVENSON, MICHLOVIC, RAYMOND, SHANER,
           YOUNGBLOOD, PRESTON, CALTAGIRONE, BARD, STEIL, HORSEY,
           R. MILLER, PIPPY, READSHAW, ORIE, ROBINSON, TRICH, STEELMAN,
           FRANKEL, WALKO AND DIVEN, APRIL 9, 2001

        REFERRED TO COMMITTEE ON INTERGOVERNMENTAL AFFAIRS,
           APRIL 9, 2001

                                     AN ACT

     1  Amending the act of July 28, 1953 (P.L.723, No.230), entitled,
     2     as amended, "An act relating to counties of the second class
     3     and second class A; amending, revising, consolidating and
     4     changing the laws relating thereto," providing for the
     5     creation of unincorporated districts in counties of the
     6     second class; creating unincorporated district administrative
     7     commissions; providing for the creation of the Commonwealth
     8     Dissolution Fund; and imposing duties on the Department of
     9     Community and Economic Development.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  The act of July 28, 1953 (P.L.723, No.230), known
    13  as the Second Class County Code, is amended by adding an article
    14  to read:
    15                           ARTICLE XXXI-D
    16    UNINCORPORATED DISTRICTS OF COUNTIES OF THE SECOND CLASS ACT
    17  Section 3101-D.  Short title.
    18     This article shall be known and may be cited as the
    19  Unincorporated Districts of Counties of the Second Class Act.
    20  Section 3102-D.  Legislative findings.

     1     The General Assembly finds and declares as follows:
     2         (1)  While the electors of this Commonwealth have long
     3     had procedures by which to create new municipalities, the
     4     General Assembly has not provided a means whereby electors of
     5     municipalities may unilaterally terminate their municipal
     6     corporations.
     7         (2)  Certain of the numerous municipalities located
     8     within counties of the second class have significantly
     9     diminished populations and have become sufficiently
    10     economically distressed that their viability as independent
    11     municipalities is doubtful, but such municipalities are not
    12     attractive candidates at this time for merger or
    13     consolidation with other cities, boroughs or townships.
    14         (3)  The administrative duties and costs of such
    15     municipalities could be lessened substantially if State law
    16     permitted them to voluntarily elect through referendum to
    17     dissolve themselves.
    18         (4)  The dissolution of such municipalities and
    19     subsequent administration by county government will stabilize
    20     them, facilitate their economic revitalization and make them
    21     more attractive candidates for merger with other
    22     municipalities.
    23         (5)  The dissolution of the existing form of government
    24     for such municipalities and the substitution of an
    25     unincorporated district as a new municipal form of government
    26     administered by the county is authorized by section 3 of
    27     Article IX of the Constitution of Pennsylvania, which
    28     provides that the General Assembly may provide optional forms
    29     of government which may be adopted or repealed by referendum.
    30         (6)  It is appropriate for an unincorporated district to
    20010H1321B1550                  - 2 -

     1     transfer administrative functions to the county pursuant to
     2     section 5 of Article IX of the Constitution of Pennsylvania,
     3     which provides that a municipality may delegate or transfer
     4     any function, power or responsibility to another
     5     municipality, including a county.
     6         (7)  In recognition of the severe problems faced by
     7     certain municipalities located within counties of the second
     8     class, it is appropriate for the General Assembly to
     9     authorize the creation of unincorporated districts within
    10     counties of the second class, but not within other counties,
    11     pursuant to the power granted to the General Assembly by
    12     section 20 of Article III of the Constitution of Pennsylvania
    13     which authorizes the classification of counties by
    14     population.
    15  Section 3103-D.  Definitions.
    16     The following words and phrases when used in this article
    17  shall have the meanings given to them in this section unless the
    18  context clearly indicates otherwise:
    19     "Chief executive."  The chief executive of the county elected
    20  pursuant to the home rule charter or any successor or successors
    21  to the chief executive.
    22     "Commission."  An unincorporated district administrative
    23  commission created under this article.
    24     "County."  A county of the second class.
    25     "County council."  The council of the county elected pursuant
    26  to the home rule charter or any successor or successors to the
    27  council.
    28     "Dissolved municipality."  An eligible municipality that has
    29  been dissolved pursuant to this act.
    30     "Electors."  The registered voters of any eligible
    20010H1321B1550                  - 3 -

     1  municipality involved in proceedings relating to the creation of
     2  an unincorporated district as an alternative form of local
     3  government and the registered voters of any unincorporated
     4  district.
     5     "Eligible municipality."  Any city of the third class,
     6  borough, township, incorporated town and home rule municipality
     7  other than a home rule municipality that would otherwise be a
     8  city of the second class, located in a county of the second
     9  class.
    10     "Governing body."  The council in cities of the third class,
    11  boroughs or incorporated towns; the board of commissioners in
    12  townships of the first class; the board of supervisors in
    13  townships of the second class; the legislative policymaking body
    14  in home rule municipalities except for councils in cities of the
    15  second class.
    16     "Home rule charter."  The home rule charter of a county of
    17  the second class which is in effect as of the effective date of
    18  this article.
    19     "Manager."  The manager of the county appointed pursuant to
    20  the home rule charter, or any successor or successors to the
    21  manager.
    22     "Unincorporated district."  A municipality created to serve
    23  the same area as a municipality that has voted to dissolve its
    24  prior form of municipal government and to be governed by the
    25  provisions of this article.
    26  Section 3104-D.  Procedure for dissolution of eligible
    27                 municipalities and creation of unincorporated
    28                 districts.
    29     (a)  General rule.--Proceedings by an eligible municipality
    30  to dissolve the current form of municipal government and to
    20010H1321B1550                  - 4 -

     1  create an unincorporated district may be commenced by any of the
     2  following:
     3         (1)  Ordinance of the governing body of the eligible
     4     municipality.
     5         (2)  Initiative of the electors by filing petitions with
     6     the county board of elections, signed by electors comprising
     7     at least 15% of the number of electors voting for the office
     8     of Governor in the last gubernatorial general election.
     9         (3)  The court of common pleas upon the filing with the
    10     prothonotary of a petition signed by 67% of the electors,
    11     provided that the petition stipulates creation of an
    12     unincorporated district without a referendum.
    13     (b)  Filing of ordinances and petitions with the county board
    14  of elections.--An ordinance or petition pursuant to subsection
    15  (a) shall be filed with the county board of elections not later
    16  than the 13th Tuesday before the next general, municipal,
    17  primary or special election.
    18     (c)  Petition requirements.--
    19         (1)  All papers of a petition pursuant to subsection (a)
    20     shall be uniform in size and style and shall be assembled as
    21     one instrument for filing. Each signature shall be executed
    22     in ink and shall be followed by the printed name, place of
    23     residence, including house number, street or road,
    24     municipality of the signor and date of signing. Every
    25     petition throughout its circulation shall state clearly the
    26     name of the municipality proposed to be dissolved. Upon
    27     tender to the county board of elections, pursuant to
    28     subsection (a)(2) or to the court of common pleas, pursuant
    29     to subsection (a)(3), the petition shall be available for
    30     examination by any interested person.
    20010H1321B1550                  - 5 -

     1         (2)  No signature shall be counted as valid if it is
     2     dated before the 26th Tuesday before the election or after
     3     the 13th Tuesday before the election.
     4         (3)  The petition and proceedings therein shall be
     5     conducted in the manner and subject to the provisions of the
     6     election laws that relate to the signing, filing and
     7     adjudication of nomination petitions insofar as those
     8     provisions are applicable and not inconsistent with the
     9     provisions contained herein.
    10         (4)  Signatures on a petition may be on separate sheets
    11     but each sheet shall have appended to it the affidavit of an
    12     elector, not necessarily a signor of the petition, that to
    13     the best of the affiant's knowledge and belief, those persons
    14     whose signatures appear on the sheet are electors, that they
    15     signed with full knowledge of the contents of the petition
    16     and their residences and dates of signing are correctly
    17     given.
    18         (5)  The board of elections, with approval of the court
    19     of common pleas, may adopt procedures and requirements for
    20     the electronic petitions, including the use of electronic
    21     signatures and the electronic filing of petitions in
    22     conformity with the provisions of the act of December 16,
    23     1999 (P.L.971, No.69), known as the Electronic Transactions
    24     Act.
    25     (d)  Notice to governing bodies affected.--When the county
    26  board of elections or the court of common pleas finds that a
    27  petition pursuant to subsection (a) is in proper order, it shall
    28  send copies of the petition without the signatures thereon to
    29  the governing body of the eligible municipality affected by the
    30  proposed dissolution.
    20010H1321B1550                  - 6 -

     1     (e)  Public hearing.--No sooner than 30 days following the
     2  filing of an ordinance or an initiative petition pursuant to
     3  subsection (b), but no later than 45 days prior to any resulting
     4  referendum, the governing body of the municipality shall conduct
     5  a public hearing on the issue. The governing body shall hold the
     6  public hearing at a time and location convenient for the
     7  residents of the municipality.
     8     (f)  Conduct of referendum.--
     9         (1)  Following initiation of proceedings for dissolution
    10     by the procedures set forth in subsection (a)(1) or (2), a
    11     referendum shall be held at the first general, municipal,
    12     primary or special election occurring at least 13 weeks after
    13     either the date of the ordinance adopted by the governing
    14     body pursuant to subsection (a)(1) or the date of filing of
    15     the petition pursuant to subsection (a)(2).
    16         (2)  Whenever authorized by ordinance of the governing
    17     body pursuant to subsection (a)(1) or upon petition of the
    18     electors to the county board of elections pursuant to
    19     subsection (a)(2), an election shall be held upon the
    20     following question:
    21         Shall the (name of municipality) dissolve and become an
    22         unincorporated district of the county?
    23         (3)  If a majority of the electors voting on the question
    24     approve, dissolution of the current form of government shall
    25     be effective and an unincorporated district created, as
    26     provided by section 3105-D.
    27         (4)  Upon certification of the election results, the
    28     county board of elections shall send notice of the results of
    29     the referendum to the governing body of the municipality,
    30     chief executive, county council, county manager and the
    20010H1321B1550                  - 7 -

     1     Department of Community and Economic Development.
     2         (5)  No municipality that has disapproved a referendum
     3     pursuant to this section shall vote on another such
     4     referendum for a period of five years.
     5  Section 3105-D.  Effective date of dissolution of an eligible
     6                 municipality and creation of an unincorporated
     7                 district.
     8     (a)  General rule.--The effective date of dissolution of an
     9  eligible municipality and creation of an unincorporated district
    10  shall be the effective date of approval of the unincorporated
    11  district administrative commission's report that closes the
    12  business affairs of the dissolved municipality but no later than
    13  365 days after either:
    14         (1)  The county board of elections certifies the election
    15     results pursuant to section 3104-D(f).
    16         (2)  The court of common pleas orders the dissolution and
    17     creation of an unincorporated district pursuant to section
    18     3104-D(a)(3). Upon its order, the court of common pleas shall
    19     send notice of such order to the governing body of the
    20     municipality, chief executive, county council, county manager
    21     and the Department of Community and Economic Development.
    22     (b)  Terms of office.--The terms and offices of all elected
    23  officials of the dissolved municipality shall cease upon the
    24  effective date of dissolution.
    25  Section 3106-D.  Assumption of power and disposition of
    26                 property, assets and liabilities.
    27     (a)  General rule.--Upon the effective date of dissolution,
    28  an unincorporated district shall replace the dissolved
    29  municipality. The unincorporated district shall constitute a
    30  municipality, shall be deemed to constitute a municipality for
    20010H1321B1550                  - 8 -

     1  purposes of all laws of this Commonwealth relating to
     2  municipalities and shall be included within the definition of
     3  the term "municipality" as used in all laws of this
     4  Commonwealth. As provided by this act, the governing body of the
     5  unincorporated district shall be the county council.
     6     (b)  Powers.--The county may exercise any powers and perform
     7  any function in the governing and administration of the
     8  unincorporated district not denied by the Constitution of
     9  Pennsylvania, by statute or by its home rule charter, and all
    10  grants of municipal power to the county in the governing and
    11  administration of the unincorporated district, whether in the
    12  form of specific enumeration or general terms, shall be
    13  liberally construed in favor of the county.
    14     (c)  Property.--Except as otherwise provided by this article,
    15  the county shall assume control of all property and assets and
    16  shall become responsible for the administration of the
    17  liabilities of the dissolved municipality.
    18     (d)  Financial aid.--Dissolution shall not prevent the
    19  unincorporated district from receiving any grant, loan or other
    20  financial aid that the dissolved municipality received under any
    21  State law.
    22     (e)  Financially distressed status.--Dissolution and creation
    23  of an unincorporated district shall not in and of itself revoke
    24  the financially distressed status of any dissolved municipality
    25  that has been determined to be financially distressed under the
    26  act of July 10, 1987 (P.L.246, No.47), known as the
    27  Municipalities Financial Recovery Act. No unincorporated
    28  district shall be determined to be financially distressed under
    29  the Municipalities Financial Recovery Act, but an unincorporated
    30  district may file for municipal debt adjustment pursuant to 11
    20010H1321B1550                  - 9 -

     1  U.S.C. § 101 et seq. (relating to bankruptcy) without being
     2  determined to be financially distressed under the Municipalities
     3  Financial Recovery Act.
     4  Section 3107-D.  Unincorporated district administrative
     5                 commission.
     6     (a)  General rule.--An unincorporated district administrative
     7  commission is hereby created for each unincorporated district.
     8  The commission shall oversee the closing of the business affairs
     9  of dissolved municipalities and be the administrative agent for
    10  all unincorporated districts.
    11     (b)  Membership.--
    12         (1)  The commission shall consist of five members.
    13         (2)  The membership of the commission shall vary,
    14     depending on the unincorporated district in question. Three
    15     members shall be standing members for all unincorporated
    16     districts. A fourth member shall be the county council member
    17     elected by the county council district in which the specific
    18     unincorporated district is located. Such member shall have
    19     voting power only on those issues pertaining exclusively to
    20     the specific unincorporated district of which he or she is
    21     the district representative to county council. A fifth
    22     member, to be nominated by the county council member elected
    23     by the county council district in which the specific
    24     unincorporated district is located, shall be an elector of
    25     the specific unincorporated district. Such member shall have
    26     voting power only on those issues pertaining exclusively to
    27     the specific unincorporated district of which he or she is an
    28     elector. If the home rule charter is repealed or amended to
    29     eliminate the county council, all of the members of the
    30     commission shall be appointed by the governing body of the
    20010H1321B1550                 - 10 -

     1     county.
     2         (3)  All commission members shall be appointed by the
     3     chief executive with the consent of at least a majority of
     4     the seated members of county council.
     5         (4)  All commission members shall serve three-year terms.
     6         (5)  The chief executive shall appoint the commission
     7     members within 30 days of either the county board of
     8     elections' certification of the election results pursuant to
     9     section 3104-D(f), or the court of common pleas' order of the
    10     dissolution and creation of an unincorporated district
    11     pursuant to section 3104-D(a)(3). County council shall
    12     confirm or reject the chief executive's appointments within
    13     45 days following the appointment. In the event that county
    14     council does not confirm or reject an appointment within 45
    15     days of the appointment, the appointment shall be effective
    16     as though county council had confirmed it.
    17         (6)  All commission members shall be registered voters
    18     and residents of the county.
    19     (c)  Director.--The commission shall have the authority to
    20  designate and empower a director who shall serve at its pleasure
    21  with executive authority over the administrative affairs of the
    22  unincorporated district.
    23     (d)  Costs.--The reasonable and necessary costs incurred by
    24  the commission shall be included in the county budget and may be
    25  recovered by the county from the unincorporated district budget
    26  and be charged against the tax base of the unincorporated
    27  district.
    28  Section 3108-D.  Review and closing of business affairs.
    29     (a)  General rule.--Upon its appointment, the commission
    30  shall review the dissolved municipality's business affairs.
    20010H1321B1550                 - 11 -

     1     (b)  Report.--Within 180 days of appointment, the commission
     2  shall submit a report to the chief executive, county council and
     3  county manager that shall include, but not be limited to, the
     4  following information about the unincorporated district:
     5         (1)  Debts and obligations.
     6         (2)  Suits, claims and demands against the dissolved
     7     municipality.
     8         (3)  Assets and accounts receivables.
     9         (4)  Current assessments and taxes levied.
    10         (5)  Any outstanding taxes and debts due and owing to the
    11     dissolved municipality.
    12         (6)  A plan for the liquidation of the dissolved
    13     municipality and reorganization of the unincorporated
    14     district, including, but not limited to, terms regarding:
    15             (i)  The disposition of employees and modifications
    16         to or rescission of collective bargaining agreements.
    17             (ii)  The disposition of all books, papers, records
    18         and deeds.
    19             (iii)  The closing or transfer of all accounts.
    20             (iv)  Payment of all outstanding debts and
    21         obligations.
    22             (v)  Disposition of contracts entered into by the
    23         dissolved municipality.
    24             (vi)  Recommended changes in municipal ordinances and
    25         rules.
    26             (vii)  The level and mode of delivery of municipal
    27         services.
    28             (viii)  An operating and capital budget for the
    29         remainder of the current year, a five-year capital
    30         improvement plan and tax and fee rates.
    20010H1321B1550                 - 12 -

     1     (c)  Existing creditors and claimants.--To the extent the
     2  report does not recommend that the unincorporated district
     3  assume responsibility for any existing debts, obligations or
     4  contracts binding upon the dissolved municipality, notice shall
     5  be given in writing to any person holding a claim against the
     6  municipality, including an unmatured or contingent claim, which
     7  describes the manner in which matured claims will be satisfied
     8  or adequate security will be provided to satisfy unmatured or
     9  contingent claims. Provided that the report provides for the
    10  satisfaction of matured claims or provides adequate security to
    11  satisfy unmatured or contingent claims, the report may also
    12  provide for the modification or rescission of existing
    13  obligations or contracts of the dissolved municipality. Notice
    14  to claimants required by this subsection shall be provided by
    15  the commission to claimants at or prior to the time the
    16  commission submits its report to the chief executive, county
    17  council and county manager and shall be prominently published in
    18  a newspaper of general circulation distributed within the
    19  county. Claimants shall be required to submit comments or
    20  objections to the report to the chief executive within 30 days
    21  of the publication of notice of the report.
    22     (d)  Approval or rejection of report.--Within 30 days of
    23  receipt of the report or within 30 days of the deadline for the
    24  submission of any comments regarding a report from claimants as
    25  provided by subsection (c), whichever occurs later, the chief
    26  executive shall approve or reject the report. If the chief
    27  executive approves the report, he shall sign it, and it shall
    28  become effective immediately. If the chief executive rejects the
    29  report, he shall return it to the commission unsigned
    30  accompanied by written objections. Within 30 days, the
    20010H1321B1550                 - 13 -

     1  commission may revise and submit an amended report or resubmit
     2  the report without amendment, which the chief executive shall
     3  finally approve or reject. If the chief executive rejects the
     4  amended or resubmitted plan, the county council may approve the
     5  commission's plan by an affirmative vote of at least two-thirds
     6  of the seated members, whereupon the report shall become
     7  effective. If the county council fails to approve the amended or
     8  resubmitted plan within 30 days of the chief executive's
     9  rejection, the chief executive shall administer the
    10  unincorporated district directly until the report becomes
    11  effective. Copies of the approved plan shall be sent to the
    12  chief executive, county council, the county manager, the
    13  commission and the Department of Community and Economic
    14  Development.
    15     (e)  Objections to approval of report.--Any claimant who
    16  receives notice regarding a proposed report pursuant to
    17  subsection (c) may file objections to the approval of the report
    18  by the chief executive to the court of common pleas for the
    19  county. The court of common pleas may approve or modify the
    20  report and may issue an order delaying the effective date of the
    21  report pending the completion of its review of the objections of
    22  claimants.
    23     (f)  Effective date of dissolution.--The dissolution of the
    24  municipality and the establishment of the unincorporated
    25  district shall become effective upon the effective date of the
    26  report, and the commission shall close the business affairs of
    27  the dissolved municipality and administer the unincorporated
    28  district. If, for whatever reason, the report has not become
    29  effective within 365 days of either the county board of
    30  elections' certification of the election results pursuant to
    20010H1321B1550                 - 14 -

     1  section 3104-D(f) or the court of common pleas order pursuant to
     2  section 3104-D(a)(3), the dissolution of the municipality and
     3  establishment of the unincorporated district shall become
     4  effective, and the unincorporated district shall be administered
     5  directly by the chief executive of the county until such report
     6  becomes effective.
     7     (g)  Collective bargaining agreements.--
     8         (1)  Except as provided in paragraph (2), a collective
     9     bargaining agreement, contract or arbitration award in effect
    10     in a municipality dissolved under this act shall remain in
    11     effect and apply to the unincorporated district created
    12     pursuant to this act for the same geographical area as the
    13     dissolved municipality until the agreement, contract or award
    14     expires. After the expiration of the agreement, contract or
    15     award, a subsequent agreement, contract or award shall not
    16     impair the implementation of the approved report. The
    17     commission may, in accordance with existing agreements,
    18     contracts and awards and applicable laws, reduce the number
    19     of uniformed and nonuniformed employees to avoid overstaffing
    20     and duplication of functions provided to the unincorporated
    21     district by the county.
    22         (2)  The provisions of collective bargaining agreements,
    23     contracts or arbitration awards signed or adopted after the
    24     commencement of proceedings pursuant to section 3104-D(a) may
    25     be ratified, modified or rescinded pursuant to the report.
    26  Section 3109-D.  Debts and obligations.
    27     (a)  General rule.--The debts and obligations issued on
    28  behalf of a municipality that dissolves that are not discharged
    29  by the plan of dissolution and reorganization shall not become
    30  debts or obligations of the county and shall remain the debts
    20010H1321B1550                 - 15 -

     1  and obligations of the unincorporated district, except that the
     2  county shall be administratively responsible to ensure that all
     3  such debts and obligations are paid.
     4     (b)  Payment.--The debts and obligations shall be paid by a
     5  charge upon the tax base of the unincorporated district. An
     6  unincorporated district shall have the same tax base as the
     7  dissolved municipality that the unincorporated district
     8  replaces.
     9     (c)  Revenues.--All revenues collected by the county from the
    10  unincorporated district for the retirement of debts and
    11  obligations shall be applied only to the debts and obligations
    12  of the unincorporated district.
    13     (d)  Additional taxes.--If insufficient revenue is received
    14  by the county on behalf of the unincorporated district to pay
    15  the debts and obligations thereof, the county council, acting in
    16  its capacity as the governing body of the unincorporated
    17  district, may levy and collect additional taxes, fees and
    18  service charges on the tax base of the unincorporated district
    19  to pay said debts and obligations.
    20  Section 3110-D.  Operations.
    21     The commission, or such director it designates under section
    22  3107-D(c), shall have the following powers and duties:
    23         (1)  Upon the effective date of dissolution and
    24     thereafter no later than 90 days before the end of each
    25     fiscal year, prepare and propose to the county manager an
    26     annual operating and capital budget, a five-year capital
    27     improvement plan and tax and fee rates for the unincorporated
    28     district. The county manager shall incorporate such proposed
    29     budget, tax and fee rates, with such modifications as he or
    30     she shall deem appropriate, into the county's comprehensive
    20010H1321B1550                 - 16 -

     1     fiscal plan in accordance with section 2 of Article VII of
     2     the home rule charter. If the home rule charter is repealed
     3     or amended to eliminate the comprehensive fiscal plan, the
     4     proposed budget shall be incorporated into the proposed
     5     budget of the county.
     6         (2)  Administer the day-to-day operations as necessary in
     7     the unincorporated district.
     8         (3)  Procure or provide municipal services, the costs of
     9     which shall be paid by charges upon the tax base of the
    10     unincorporated district.
    11         (4)  Continue or discontinue, pursuant to section 3108-
    12     D(c), capital projects approved or begun prior to
    13     dissolution, the costs of which shall be paid by charges upon
    14     the tax base of the unincorporated district.
    15         (5)  Powers granted to planning commissions under the act
    16     of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania
    17     Municipalities Planning Code.
    18         (6)  Within three years of the effective date of
    19     dissolution, prepare a strategic plan for the unincorporated
    20     district, including, but not limited to, the advisability of
    21     merger with or annexation to another municipality.
    22         (7)  Prepare all reports, if any, required of the
    23     dissolved municipality by the Commonwealth.
    24  Section 3111-D.  Disposition of law and ordinances.
    25     Subject to the provisions of the home rule charter, the
    26  county council shall be vested with the legislative powers of
    27  the governing body of the unincorporated district and shall have
    28  the power to amend, repeal or enact local ordinances, laws,
    29  rules or regulations governing the unincorporated district.
    30  Unless amended by county council, all local ordinances, laws,
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     1  rules or regulations of the dissolved municipality in effect on
     2  the date of dissolution shall remain in effect as if the same
     3  had been duly adopted by the county council and shall be
     4  enforced by the county within the boundaries of the
     5  unincorporated district.
     6  Section 3112-D.  Revenue, taxation and assessments.
     7     (a)  General rule.--The county council shall have the power
     8  and authority, acting as the governing body of the
     9  unincorporated district, to enact and the chief executive shall
    10  have the power and authority to enforce local tax, fee and
    11  service charge ordinances on the subjects of taxation, fees or
    12  service charges of the unincorporated district at any rate or
    13  amount as granted by statute to the class of municipality of
    14  which the unincorporated district would be a member were it not
    15  for its dissolution.
    16     (b)  Levy.--The county council shall levy and the county
    17  shall collect taxes, fees and service charges authorized by
    18  subsection (a) on the subjects of taxation, fees or service
    19  charges of the unincorporated district necessary to cover the
    20  operating and capital costs of the unincorporated district.
    21     (c)  Other revenues.--If the dissolved municipality collected
    22  or received revenue other than through taxes, fees or service
    23  charges, the same shall continue to be paid to the county after
    24  the dissolution of the municipality, and the county shall apply
    25  such revenue to the costs of the unincorporated district.
    26     (d)  Uncollected taxes.--If, after the effective date of
    27  dissolution, there are uncollected taxes, fees and service
    28  charges, revenues or unsatisfied liens, debts or obligations
    29  owed to the dissolved municipality, the county manager shall
    30  ensure that the debts and obligations are paid and satisfied and
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     1  the same shall be paid to the county.
     2  Section 3113-D.  Financial assistance.
     3     (a)  Commonwealth Dissolution Fund.--The Department of
     4  Community and Economic Development shall create and the General
     5  Assembly may appropriate funding for a grant program to assist
     6  municipalities in the process of dissolution and formation of an
     7  unincorporated district. The grant program shall be administered
     8  through the Department of Community and Economic Development.
     9  Grants may be used by municipalities to study the costs and
    10  benefits of dissolution and formation of an unincorporated
    11  district and by commissions to offset the cost of services in
    12  unincorporated districts.
    13     (b)  Priority.--Unincorporated districts shall receive
    14  priority in all economic and community development programs
    15  funded by the Commonwealth. Each Commonwealth agency authorized
    16  to administer economic and community development programs shall,
    17  in consultation with the Department of Community and Economic
    18  Development, determine the manner in which to provide a
    19  preference or priority to unincorporated districts and shall not
    20  be required to afford first priority to unincorporated
    21  districts.
    22  Section 3114-D.  Severability.
    23     The provisions of this act are severable. If any provision of
    24  this act or its application to any person or circumstance is
    25  held invalid, the invalidity shall not affect other provisions
    26  or applications of this act which can be given effect without
    27  the invalid provision or application.
    28  Section 3115-D.  Effect of dissolution.
    29     The fact that a municipality has been dissolved under this
    30  act shall not affect its classification as a municipality for
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     1  purposes of any other statute.
     2     Section 2.  All acts and parts of acts are repealed insofar
     3  as they are inconsistent with this act.
     4     Section 3.  This act shall take effect immediately.


















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