THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY GORDNER, EARLL, BREWSTER, WOZNIAK, M. WHITE, ROBBINS, FONTANA, ERICKSON, YUDICHAK AND ORIE, MARCH 2, 2011

AS AMENDED ON THIRD CONSIDERATION, DECEMBER 12, 2011   

AN ACT

Amending the act of May 1, 1933 (P.L.103, No.69), entitled, as

reenacted and amended, "An act concerning townships of the

second class; and amending, revising, consolidating and

changing the law relating thereto," in corporate powers,

further providing for real property and for personal

property; and, in contracts, further providing for letting

contracts.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1503 of the act of May 1, 1933 (P.L.103,

No.69), known as The Second Class Township Code, reenacted and

amended November 9, 1995 (P.L.350, No.60) and amended May 18,

2004 (P.L.219, No.29) and May 18, 2004 (P.L.226, No.33), is

amended to read:

Section 1503.  Real Property.--(a)  No real estate owned by

the township having a value in excess of fifteen hundred dollars

($1,500) may be sold except to the highest bidder after due

notice by advertisement for bids or advertisement of a public

auction in one newspaper of general circulation in the township.

The advertisement shall be published once not less than ten days

before the date set for the opening of bids or public auction,

and the date for opening bids or public auction shall be

announced in the advertisement. The award of contracts shall be

made only by public announcement at a regular or special meeting

of the board of supervisors or at the public auction. All bids

shall be accepted on the condition that payment of the purchase

price in full shall be made within sixty days of the acceptance

of bids.

(b)  The board of supervisors may reject all bids if the bids

are deemed to be less than the fair market value of the

property. In the case of a public auction, the board of

supervisors may establish a minimum bid based on the fair market

value of the real property.

(b.1)  The board of supervisors may sell real property under

the act of October 27, 1979 (P.L.241, No.78), entitled, as

amended, "An act authorizing political subdivisions,

municipality authorities and transportation authorities to enter

into contracts for the purchase of goods and the sale of real

and personal property where no bids are received," if no bids

are received on an item real property after proper notices.

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(c)  The requirements of this section do not apply to

conveyances or leases of real property by a township to any of

the following:

(1)  A municipal corporation.

(2)  The Federal Government.

(3)  The Commonwealth.

(4)  An institution district.

(5)  A school district.

(6)  A municipality authority.

(7)  A county.

(8)  A public utility.

(9)  A volunteer fire company.

(10)  A nonprofit corporation engaged in community

industrial, commercial or affordable housing development.

(11)  A volunteer ambulance service or volunteer rescue squad

located within the township.

(12)  A nonprofit corporation organized as a public library.

(13)  A nonprofit medical service corporation.

(14)  A nonprofit housing corporation.

(15)  A nonprofit organization providing community service or

development activities.

(16)  A nonprofit corporation established for the

preservation of historical, architectural or aesthetic sites or

artifacts.

(17)  A nonprofit association or nonprofit corporation

organized to acquire and maintain real property for the

preservation, conservation and stewardship of open space.

(18)  A council of government, consortium, cooperative or

other similar entity created pursuant to 53 Pa.C.S. Ch. 23

Subch. A (relating to intergovernmental cooperation).

Such conveyances or leases shall be at the sole discretion of

the township.

(d)  When real property is sold to a nonprofit corporation

organized as a public library or to a nonprofit medical service

corporation, nonprofit housing corporation, volunteer fire

company, volunteer ambulance service [or], volunteer rescue

squad[,] or a council of government, consortium, cooperative or

other similar entity created pursuant to 53 Pa.C.S. Ch. 23

Subch. A involving one or more of the entities listed in this

subsection, the board of supervisors may elect to accept any

nominal consideration for the property as it believes

appropriate. Real property sold under this subsection is subject

to the condition that when the property is not used for the

purposes of the corporation or volunteer fire company, the

property reverts to the township.

(e)  No real estate may be purchased by a township unless the

board of supervisors obtains at least one appraisal on the real

property in question by a person authorized to perform an

appraisal on the subject property under the act of July 10, 1990

(P.L.404, No.98), known as the "Real Estate Appraisers

Certification Act," and the township supervisors may require

that an environmental impact statement be prepared, indicating

the potential liability of the township for any environmental

problems associated with the real estate to be purchased. The

person making the appraisal shall not be interested directly or

indirectly in any aspect of the sale of the real estate. The

price paid by the board of supervisors for the purchase of the

real estate shall not exceed the price established by the

appraisal: Provided, however, That if more than one appraisal is

obtained, the price paid by the board of supervisors shall not

exceed the average of the appraisals.

(f)  When real property has been dedicated, deeded or devised

to a township to be used for a designated purpose and the real

property is accepted and used for that purpose, or the real

property is not used for the purpose designated for a period of

ten years or more, and the township supervisors determine that

it is not possible or not desirable for the best interest of the

township to use the real property for the purpose designated,

the township supervisors, with the prior approval of the court

of common pleas, may by ordinance reconvey to the original

owners or their successors, heirs or assigns, or otherwise

dispose of, the real property free and clear of any public

right.

Section 2.  Section 1504 of the act, amended June 23, 2006

(P.L.203, No.49), is amended to read:

Section 1504.  Personal Property.--(a)  No personal property

of the township shall be sold or disposed of without the

approval of the board of supervisors. No personal property owned

by the township, the estimated fair market value of which is one

thousand dollars ($1,000) or more, shall be sold except to the

highest bidder after due notice by advertisement for bids or for

public auction in one newspaper of general circulation in the

township. The advertisement shall be published once not less

than ten days before the date set for the opening of bids or

public auction, and the date for opening bids or public auction

shall be announced in the advertisement. The advertisement for

electronic auction sales authorized in subsection (d) shall

include the Internet address or means of accessing the

electronic auction and the date, time and duration of the

electronic auction. If after attempting twice to receive bids or

if at a public auction no bid was received, the board of

supervisors may by resolution adopt a procedure by which the

personal property may be sold without further action of the

board of supervisors. A procedure adopted pursuant to this

authorization shall be subject to and shall conform with the

requirements of any law governing the sale of property by

municipal corporations generally when no bids have been

received. The award of contracts shall be made only by public

announcement at a regular or special meeting of the board of

supervisors or at the public auction. Except as provided in

subsection (d), all bids shall be accepted on the condition that

payment of the purchase price in full is made immediately upon

acceptance of the successful bid. The board of supervisors may

reject any bids received if the bids are believed to be less

than the fair market value of the property.

(b)  With respect to personal property, either individual

items or lots of items, the fair market value of which is

estimated to be less than one thousand dollars ($1,000), the

board of supervisors shall by resolution adopt a procedure by

which the property may be sold without further action by the

board of supervisors. The board of supervisors may arrange for

the sale of the item or items at public auction.

(c)  The bidding and advertising requirements of this section

do not apply to the following transactions:

(1)  If personal property of the township is being traded in

or exchanged for other personal property.

[(2)  The sale or lease of personal property to any municipal

corporation, the Federal Government, the Commonwealth or any

institution district, school district, municipality authority,

county, public utility, volunteer fire company, nonprofit

corporation engaged in community industrial development,

volunteer ambulance service or volunteer rescue squad located

within the township, nonprofit corporation organized as a public

library, nonprofit medical service corporation, nonprofit

housing corporation, nonprofit organizations providing community

service or development activities or nonprofit corporation

established for the preservation of historical, architectural or

aesthetical sites or artifacts.] 

(2)  The sale or lease of personal property by the township

to any of the following:

(i)  A municipal corporation.

(ii)  The Federal Government.

(iii)  The Commonwealth.

(iv)  An institution district.

(v)  A school district.

(vi)  A municipality authority.

(vii)  A county.

(viii)  A public utility.

(ix)  A volunteer fire company.

(x)  A nonprofit corporation engaged in community industrial,

commercial or affordable housing development.

(xi)  A volunteer ambulance service or volunteer rescue squad

located within the township.

(xii)  A nonprofit corporation organized as a public library.

(xiii)  A nonprofit medical service corporation.

(xiv)  A nonprofit housing corporation.

(xv)  A nonprofit organization providing community service or

development activities.

(xvi)  A nonprofit corporation established for the

preservation of historical architectural or aesthetical sites or

artifacts.

(xvii)  A council of government, consortium, cooperative or

other similar entity created pursuant to 53 Pa.C.S. Ch. 23

Subch. A (relating to intergovernmental cooperation).

(d)  A "public auction" shall include an online or electronic

auction sale. During an electronic auction sale, bids shall be

accepted electronically at the time and in the manner designated

in the advertisement. During the electronic auction, each bidder

shall have the capability to view the bidder's bid rank or the

high bid price. Bidders may increase their bid prices during the

electronic auction. The record of the electronic auction shall

be accessible for public inspection. The purchase price shall be

paid by the high bidder immediately or at a reasonable time

after the conclusion of the electronic auction as determined by

the township. In the event that shipping costs are incurred,

they shall be paid by the high bidder.

(e)  A township that has complied with the advertising

requirements of subsection (a) may provide additional public

notice of the sale by bids or public auction in any manner

deemed appropriate by the township.

Section 3.  Section 3102(h) of the act, amended November 3,

2011 (P.L.341, No.84), is amended to read:

Section 3102.  Letting Contracts.--* * *

(h)  The contracts or purchases made by the board of

supervisors involving payments in excess of the required

advertising amount, which do not require advertising, bidding or

price quotations are as follows:

(1)  Those made for emergency, or routine maintenance,

repairs or replacements for water, electric light and other

public works of the township if they do not constitute new

additions, extensions or enlargements of existing facilities and

equipment.

(2)  Those made for improvements, repairs or maintenance of

any kind made or provided by any township through its own

employes. All contracts or purchases of materials used for

improvement, maintenance or construction are subject to the

provisions contained in subsections (a) and (b).

(3)  Those involving any policies of insurance or surety

company bonds, those made for public utility service, those made

for electricity, natural gas or telecommunications service

either directly or with an association authorized under Article

XIV in which the township is a member and those made with

another municipal corporation, county, school district or

municipality authority, a council of government, consortium,

cooperative or other similar entity created pursuant to 53

Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental

cooperation) or Federal or State Government, including the sale,

leasing or loan of any supplies or materials by the Federal or

State Government or their agencies.

(4)  Those involving personal or professional services.

(5)  Those made for materials and supplies or equipment

rental under emergency conditions under 35 Pa.C.S. Pt. V 

(relating to emergency management services).

(6)  Those contracts involving equipment rental with

operators if more than fifty percent of the total labor

personnel hours required for the completion of the contract is

supplied by the township through its own employes.

(7)  Those contracts for the purchase of repair parts or

materials for use in existing township equipment or facilities

if the item or material to be purchased is the sole item of its

kind on the market or is manufactured as a replacement for the

original item or equipment being repaired.

(8)  Those for used equipment, articles, apparatus,

appliances, vehicles or parts thereof being purchased from a

public utility.

(9)  Those where particular types, models or pieces of

equipment, articles, apparatus, appliances, vehicles or parts

thereof which are patented and manufactured products.

* * *

Section 4.  This act shall take effect in 60 days.