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| PRIOR PRINTER'S NO. 736 | PRINTER'S NO. 1822 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GORDNER, EARLL, BREWSTER, WOZNIAK, M. WHITE, ROBBINS, FONTANA, ERICKSON, YUDICHAK AND ORIE, MARCH 2, 2011 |
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| SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, DECEMBER 5, 2011 |
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| AN ACT |
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1 | Amending the act of May 1, 1933 (P.L.103, No.69), entitled, as |
2 | reenacted and amended, "An act concerning townships of the |
3 | second class; and amending, revising, consolidating and |
4 | changing the law relating thereto," in corporate powers, |
5 | further providing for real property and for personal |
6 | property; and, in contracts, further providing for letting |
7 | contracts. |
8 | The General Assembly of the Commonwealth of Pennsylvania |
9 | hereby enacts as follows: |
10 | Section 1. Section 1503 of the act of May 1, 1933 (P.L.103, |
11 | No.69), known as The Second Class Township Code, reenacted and |
12 | amended November 9, 1995 (P.L.350, No.60) and amended May 18, |
13 | 2004 (P.L.219, No.29) and May 18, 2004 (P.L.226, No.33), is |
14 | amended to read: |
15 | Section 1503. Real Property.--(a) No real estate owned by |
16 | the township having a value in excess of fifteen hundred dollars |
17 | ($1,500) may be sold except to the highest bidder after due |
18 | notice by advertisement for bids or advertisement of a public |
19 | auction in one newspaper of general circulation in the township. |
20 | The advertisement shall be published once not less than ten days |
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1 | before the date set for the opening of bids or public auction, |
2 | and the date for opening bids or public auction shall be |
3 | announced in the advertisement. The award of contracts shall be |
4 | made only by public announcement at a regular or special meeting |
5 | of the board of supervisors or at the public auction. All bids |
6 | shall be accepted on the condition that payment of the purchase |
7 | price in full shall be made within sixty days of the acceptance |
8 | of bids. |
9 | (b) The board of supervisors may reject all bids if the bids |
10 | are deemed to be less than the fair market value of the |
11 | property. In the case of a public auction, the board of |
12 | supervisors may establish a minimum bid based on the fair market |
13 | value of the real property. |
14 | (b.1) The board of supervisors may sell real property under | <-- |
15 | the act of October 27, 1979 (P.L.241, No.78), entitled, as |
16 | amended, "An act authorizing political subdivisions, |
17 | municipality authorities and transportation authorities to enter |
18 | into contracts for the purchase of goods and the sale of real |
19 | and personal property where no bids are received," if no bids |
20 | are received on an item after proper notices. |
21 | (c) The requirements of this section do not apply to |
22 | conveyances or leases of real property by a township to any of |
23 | the following: |
24 | (1) A municipal corporation. |
25 | (2) The Federal Government. |
26 | (3) The Commonwealth. |
27 | (4) An institution district. |
28 | (5) A school district. |
29 | (6) A municipality authority. |
30 | (7) A county. |
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1 | (8) A public utility. |
2 | (9) A volunteer fire company. |
3 | (10) A nonprofit corporation engaged in community |
4 | industrial, commercial or affordable housing development. |
5 | (11) A volunteer ambulance service or volunteer rescue squad |
6 | located within the township. |
7 | (12) A nonprofit corporation organized as a public library. |
8 | (13) A nonprofit medical service corporation. |
9 | (14) A nonprofit housing corporation. |
10 | (15) A nonprofit organization providing community service or |
11 | development activities. |
12 | (16) A nonprofit corporation established for the |
13 | preservation of historical, architectural or aesthetic sites or |
14 | artifacts. |
15 | (17) A nonprofit association or nonprofit corporation |
16 | organized to acquire and maintain real property for the |
17 | preservation, conservation and stewardship of open space. |
18 | Such conveyances or leases shall be at the sole discretion of | <-- |
19 | the township. |
20 | (18) A council of government, consortium, cooperative or |
21 | other similar entity created pursuant to 53 Pa.C.S. Ch. 23 |
22 | Subch. A (relating to intergovernmental cooperation). |
23 | Such conveyances or leases shall be at the sole discretion of | <-- |
24 | the township. |
25 | (d) When real property is sold to a nonprofit corporation |
26 | organized as a public library or to a nonprofit medical service |
27 | corporation, nonprofit housing corporation, volunteer fire |
28 | company, volunteer ambulance service [or], volunteer rescue |
29 | squad[,] or a council of government, consortium, cooperative or |
30 | other similar entity created pursuant to 53 Pa.C.S. Ch. 23 |
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1 | Subch. A involving one or more of the entities listed in this |
2 | subsection, the board of supervisors may elect to accept any |
3 | nominal consideration for the property as it believes |
4 | appropriate. Real property sold under this subsection is subject |
5 | to the condition that when the property is not used for the |
6 | purposes of the corporation or volunteer fire company, the |
7 | property reverts to the township. |
8 | (e) No real estate may be purchased by a township unless the |
9 | board of supervisors obtains at least one appraisal on the real |
10 | property in question by a person authorized to perform an |
11 | appraisal on the subject property under the act of July 10, 1990 |
12 | (P.L.404, No.98), known as the "Real Estate Appraisers |
13 | Certification Act," and the township supervisors may require |
14 | that an environmental impact statement be prepared, indicating |
15 | the potential liability of the township for any environmental |
16 | problems associated with the real estate to be purchased. The |
17 | person making the appraisal shall not be interested directly or |
18 | indirectly in any aspect of the sale of the real estate. The |
19 | price paid by the board of supervisors for the purchase of the |
20 | real estate shall not exceed the price established by the |
21 | appraisal: Provided, however, That if more than one appraisal is |
22 | obtained, the price paid by the board of supervisors shall not |
23 | exceed the average of the appraisals. |
24 | (f) When real property has been dedicated, deeded or devised |
25 | to a township to be used for a designated purpose and the real |
26 | property is accepted and used for that purpose, or the real |
27 | property is not used for the purpose designated for a period of |
28 | ten years or more, and the township supervisors determine that |
29 | it is not possible or not desirable for the best interest of the |
30 | township to use the real property for the purpose designated, |
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1 | the township supervisors, with the prior approval of the court |
2 | of common pleas, may by ordinance reconvey to the original |
3 | owners or their successors, heirs or assigns, or otherwise |
4 | dispose of, the real property free and clear of any public |
5 | right. |
6 | Section 2. Section 1504 of the act, amended June 23, 2006 |
7 | (P.L.203, No.49), is amended to read: |
8 | Section 1504. Personal Property.--(a) No personal property |
9 | of the township shall be sold or disposed of without the |
10 | approval of the board of supervisors. No personal property owned |
11 | by the township, the estimated fair market value of which is one |
12 | thousand dollars ($1,000) or more, shall be sold except to the |
13 | highest bidder after due notice by advertisement for bids or for |
14 | public auction in one newspaper of general circulation in the |
15 | township. The advertisement shall be published once not less |
16 | than ten days before the date set for the opening of bids or |
17 | public auction, and the date for opening bids or public auction |
18 | shall be announced in the advertisement. The advertisement for |
19 | electronic auction sales authorized in subsection (d) shall |
20 | include the Internet address or means of accessing the |
21 | electronic auction and the date, time and duration of the |
22 | electronic auction. If after attempting twice to receive bids or |
23 | if at a public auction no bid was received, the board of |
24 | supervisors may by resolution adopt a procedure by which the |
25 | personal property may be sold without further action of the |
26 | board of supervisors. A procedure adopted pursuant to this |
27 | authorization shall be subject to and shall conform with the |
28 | requirements of any law governing the sale of property by |
29 | municipal corporations generally when no bids have been |
30 | received. The award of contracts shall be made only by public |
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1 | announcement at a regular or special meeting of the board of |
2 | supervisors or at the public auction. Except as provided in |
3 | subsection (d), all bids shall be accepted on the condition that |
4 | payment of the purchase price in full is made immediately upon |
5 | acceptance of the successful bid. The board of supervisors may |
6 | reject any bids received if the bids are believed to be less |
7 | than the fair market value of the property. |
8 | (b) With respect to personal property, either individual |
9 | items or lots of items, the fair market value of which is |
10 | estimated to be less than one thousand dollars ($1,000), the |
11 | board of supervisors shall by resolution adopt a procedure by |
12 | which the property may be sold without further action by the |
13 | board of supervisors. The board of supervisors may arrange for |
14 | the sale of the item or items at public auction. |
15 | (c) The bidding and advertising requirements of this section |
16 | do not apply to the following transactions: |
17 | (1) If personal property of the township is being traded in |
18 | or exchanged for other personal property. |
19 | [(2) The sale or lease of personal property to any municipal | <-- |
20 | corporation, the Federal Government, the Commonwealth or any |
21 | institution district, school district, municipality authority, |
22 | county, public utility, volunteer fire company, nonprofit |
23 | corporation engaged in community industrial development, |
24 | volunteer ambulance service or volunteer rescue squad located |
25 | within the township, nonprofit corporation organized as a public |
26 | library, nonprofit medical service corporation, nonprofit |
27 | housing corporation, nonprofit organizations providing community |
28 | service or development activities or nonprofit corporation |
29 | established for the preservation of historical, architectural or |
30 | aesthetical sites or artifacts[.] or a council of government, | <-- |
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1 | consortium, cooperative or other similar entity created pursuant |
2 | to 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental |
3 | cooperation). |
4 | (2) The sale or lease of personal property by the township | <-- |
5 | to any of the following: |
6 | (i) A municipal corporation. |
7 | (ii) The Federal Government. |
8 | (iii) The Commonwealth. |
9 | (iv) An institution district. |
10 | (v) A school district. |
11 | (vi) A municipality authority. |
12 | (vii) A county. |
13 | (viii) A public utility. |
14 | (ix) A volunteer fire company. |
15 | (x) A nonprofit corporation engaged in community industrial, |
16 | commercial or affordable housing development. |
17 | (xi) A volunteer ambulance service or volunteer rescue squad |
18 | located within the township. |
19 | (xii) A nonprofit corporation organized as a public library. |
20 | (xiii) A nonprofit medical service corporation. |
21 | (xiv) A nonprofit housing corporation. |
22 | (xv) A nonprofit organization providing community service or |
23 | development activities. |
24 | (xvi) A nonprofit corporation established for the |
25 | preservation of historical architectural or aesthetical sites or |
26 | artifacts. |
27 | (xvii) A council of government, consortium, cooperative or |
28 | other similar entity created pursuant to 53 Pa.C.S. Ch. 23 |
29 | Subch. A (relating to intergovernmental cooperation). |
30 | (d) A "public auction" shall include an online or electronic |
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1 | auction sale. During an electronic auction sale, bids shall be |
2 | accepted electronically at the time and in the manner designated |
3 | in the advertisement. During the electronic auction, each bidder |
4 | shall have the capability to view the bidder's bid rank or the |
5 | high bid price. Bidders may increase their bid prices during the |
6 | electronic auction. The record of the electronic auction shall |
7 | be accessible for public inspection. The purchase price shall be |
8 | paid by the high bidder immediately or at a reasonable time |
9 | after the conclusion of the electronic auction as determined by |
10 | the township. In the event that shipping costs are incurred, |
11 | they shall be paid by the high bidder. |
12 | (e) A township that has complied with the advertising |
13 | requirements of subsection (a) may provide additional public |
14 | notice of the sale by bids or public auction in any manner |
15 | deemed appropriate by the township. |
16 | Section 3. Section 3102(h) of the act, amended December 18, | <-- |
17 | 1996 (P.L.1142, No.172) and October 11, 2000 (P.L.535, No.70) |
18 | November 3, 2011 (P.L.341, No.84), is amended to read: | <-- |
19 | Section 3102. Letting Contracts.--* * * |
20 | (h) The contracts or purchases made by the board of |
21 | supervisors involving payments in excess of the required |
22 | advertising amount, which do not require advertising, bidding or |
23 | price quotations are as follows: |
24 | (1) Those made for emergency, or routine maintenance, |
25 | repairs or replacements for water, electric light and other |
26 | public works of the township if they do not constitute new |
27 | additions, extensions or enlargements of existing facilities and |
28 | equipment. |
29 | (2) Those made for improvements, repairs or maintenance of | <-- |
30 | any kind made or provided by any township through its own |
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1 | employes. All contracts or purchases of materials used for |
2 | improvement, maintenance or construction in excess of four |
3 | thousand dollars ($4,000) but less than the required advertising |
4 | amount are subject to the provisions contained in subsection |
5 | (b), and those contracts or purchases in excess of the required |
6 | advertising amount are subject to the advertising requirements |
7 | contained in subsection (a). |
8 | (2) Those made for improvements, repairs or maintenance of | <-- |
9 | any kind made or provided by any township through its own |
10 | employes. All contracts or purchases of materials used for |
11 | improvement, maintenance or construction are subject to the |
12 | provisions contained in subsections (a) and (b). |
13 | (3) Those involving any policies of insurance or surety |
14 | company bonds, those made for public utility service, those made |
15 | for electricity, natural gas or telecommunications service |
16 | either directly or with an association authorized under Article |
17 | XIV in which the township is a member and those made with |
18 | another municipal corporation, county, school district or |
19 | municipality authority, a council of government, consortium, |
20 | cooperative or other similar entity created pursuant to 53 |
21 | Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental |
22 | cooperation) or Federal or State Government, including the sale, |
23 | leasing or loan of any supplies or materials by the Federal or |
24 | State Government or their agencies. |
25 | (4) Those involving personal or professional services. |
26 | (5) Those made for materials and supplies or equipment |
27 | rental under emergency conditions under 35 Pa.C.S. Pt. V |
28 | (relating to emergency management services). |
29 | (6) Those contracts involving equipment rental with |
30 | operators if more than fifty percent of the total labor |
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1 | personnel hours required for the completion of the contract is |
2 | supplied by the township through its own employes. |
3 | (7) Those contracts for the purchase of repair parts or |
4 | materials for use in existing township equipment or facilities |
5 | if the item or material to be purchased is the sole item of its |
6 | kind on the market or is manufactured as a replacement for the |
7 | original item or equipment being repaired. |
8 | (8) Those for used equipment, articles, apparatus, |
9 | appliances, vehicles or parts thereof being purchased from a |
10 | public utility. |
11 | (9) Those where particular types, models or pieces of |
12 | equipment, articles, apparatus, appliances, vehicles or parts |
13 | thereof which are patented and manufactured products. |
14 | * * * |
15 | Section 4. This act shall take effect in 60 days. |
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