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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY WOZNIAK, ALLOWAY, SOLOBAY AND FERLO, NOVEMBER 10, 2011 |
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| REFERRED TO LOCAL GOVERNMENT, NOVEMBER 10, 2011 |
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| AN ACT |
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1 | Amending the act of February 1, 1966 (1965 P.L.1656, No.581), |
2 | entitled "An act concerning boroughs, and revising, amending |
3 | and consolidating the law relating to boroughs," providing |
4 | for the dissolution of nonviable boroughs; and making |
5 | editorial changes. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. Article III heading of the act of February 1, |
9 | 1966 (1965 P.L.1656, No.581), known as The Borough Code, is |
10 | amended and the article is amended by adding a subdivision |
11 | heading to read: |
12 | ARTICLE III |
13 | ANNULMENT OF CHARTERS [AND], CHANGE OF CORPORATE NAMES, AND |
14 | DISSOLUTION |
15 | (a) Annulment of Charter or Change of Corporate Names |
16 | Section 2. Article III of the act is amended by adding a |
17 | subdivision to read: |
18 | (b) Dissolution of Nonviable Boroughs |
19 | Section 311. Definitions. |
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1 | The following words and phrases when used in this subdivision |
2 | shall have the meanings given to them in this section unless the |
3 | context clearly indicates otherwise: |
4 | "Coordinator." The coordinator designated for the borough in |
5 | accordance with the act of July 10, 1987 (P.L.246, No.47), known |
6 | as the Municipalities Financial Recovery Act. |
7 | "Department." The Department of Community and Economic |
8 | Development of the Commonwealth. |
9 | "Municipalities Financial Recovery Act." The act of July 10, |
10 | 1987 (P.L.246, No.47), known as the Municipalities Financial |
11 | Recovery Act. |
12 | "Township." A township of the second class. |
13 | "Secretary." The Secretary of Community and Economic |
14 | Development. |
15 | Section 312. Petition for dissolution. |
16 | (a) Petition.--Any ten registered electors of a borough that |
17 | satisfies the requirements of subsection (b) may present to the |
18 | court of common pleas a petition requesting the court to issue a |
19 | determination that the borough is no longer viable as an |
20 | independent municipal corporation and shall be dissolved, its |
21 | charter annulled and its territory to revert to and become a |
22 | part of the township from which it was taken, subject to the |
23 | township's government and control. |
24 | (b) Conditions.--No borough shall be the subject of a |
25 | petition under subsection (a) unless: |
26 | (1) the borough is distressed in accordance with the |
27 | Municipalities Financial Recovery Act as of the date of the |
28 | petition and has remained distressed for ten years prior to |
29 | the date of the petition; |
30 | (2) the borough has lost 50% or more of its population |
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1 | over the course of five consecutive decennial censuses |
2 | immediately preceding the date of the petition; and |
3 | (3) the territory comprising the borough was formerly |
4 | contained within a township. |
5 | Section 313. Filing of petition, notice and exceptions. |
6 | (a) Filing and notice.--Upon presentation to the court, the |
7 | petition shall be filed with the clerk of courts and notice of |
8 | the filing shall immediately thereafter be given in a newspaper |
9 | of general circulation in the county, once a week for four |
10 | consecutive weeks, and once in the county legal journal, if any, |
11 | during the four-week period. The notice shall provide the date |
12 | the petition was filed and specify that exceptions to the |
13 | petition may be filed within 45 days of the date of the |
14 | petition. Notice shall also be provided by certified mail, |
15 | return receipt requested, to the following: |
16 | (1) The governing body of the borough. |
17 | (2) The governing body of the township into which the |
18 | borough territory would be absorbed. |
19 | (3) The coordinator. |
20 | (4) The secretary. |
21 | (b) Responsibility of petitioners.--Notice in accordance |
22 | with this section and all costs related thereto shall be |
23 | provided by the petitioners. |
24 | (c) Exceptions.--Exceptions to the petition may be filed by |
25 | any of the following: |
26 | (1) A resident of the borough. |
27 | (2) The governing body of the township into which the |
28 | territory of the borough would be absorbed. |
29 | (3) Any creditor or bondholder of the borough. |
30 | (4) Any collective bargaining unit or contractor of the |
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1 | borough. |
2 | Section 314. Hearing and notice. |
3 | (a) Hearing.--No later than 60 days after the date of the |
4 | filing of the petition, the court shall conduct a hearing on the |
5 | petition and exceptions. Notice of the hearing shall be provided |
6 | by the court to those receiving notice under section 313(a) and |
7 | to all other parties that have filed exceptions in accordance |
8 | with section 313(c). |
9 | (b) Proceedings.--The petitioners and those receiving notice |
10 | under this section, with the exception of the coordinator, shall |
11 | be parties to the proceedings, and shall be entitled to present |
12 | testimony or other evidence relevant to the nonviability of the |
13 | borough or relevant to exceptions timely filed, provided that |
14 | the court, in its discretion, may consolidate testimony related |
15 | to similar exceptions. The coordinator, or another designee of |
16 | the secretary, shall testify to the progress of the borough |
17 | under the recovery plan in accordance with the Municipalities |
18 | Financial Recovery Act and render an opinion regarding the |
19 | viability of the borough. The court may receive additional |
20 | evidence relevant to the matter, including, but not limited to, |
21 | evidence relating to: |
22 | (1) The effect of dissolution on the township into which |
23 | the borough territory would be absorbed. |
24 | (2) Additional plans, proceedings or strategies that |
25 | could ensure that the borough remain viable. |
26 | (3) The effect of the dissolution on any bonds, other |
27 | obligations or agreements of the borough. |
28 | (c) Additional evidence.--If the court determines that there |
29 | is a need for additional investigation, it may request the |
30 | parties or the coordinator to provide such additional evidence |
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1 | as may be necessary for a decree in accordance with section 315. |
2 | (d) Costs and fees.--Court costs and filing fees associated |
3 | with proceedings under this subdivision shall be paid by the |
4 | petitioners subject to reimbursement in accordance with section |
5 | 318. |
6 | Section 315. Decree. |
7 | (a) Issuance.--The court shall issue a decree granting the |
8 | petition unless it shall find, by clear and convincing evidence, |
9 | that: |
10 | (1) the borough should continue to exist as a separate |
11 | municipal corporation because of a reasonable expectation |
12 | that the borough is or will become viable in accordance with |
13 | the current recovery plan or a reasonable alternative; or |
14 | (2) the dissolution of the borough will seriously |
15 | jeopardize the fiscal viability of the township into which |
16 | the borough territory would be absorbed. |
17 | (b) Grant of petition.--A decree granting the petition shall |
18 | be filed with the recorder of deeds, the department, the |
19 | Department of Transportation and the planning commission of the |
20 | county or counties within which the township lies. The decree |
21 | shall specify a date of transition no later than 90 days |
22 | following the date of the decree. |
23 | (c) Denial of petition.--A decree denying the petition shall |
24 | be filed with the recorder of deeds. No petition requesting the |
25 | dissolution of the borough that is the subject of the decree may |
26 | be brought again within a period of two years of the date of the |
27 | decree. |
28 | (d) Termination of status and notice.--Upon receipt of the |
29 | decree by the department, the secretary shall terminate the |
30 | status of the borough as distressed pursuant to section 253 of |
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1 | the Municipalities Financial Recovery Act. The secretary shall |
2 | notify all creditors of the borough that the borough has been |
3 | dissolved, and the township will assume all liabilities of the |
4 | borough upon the date of transition. |
5 | Section 316. Existing government preserved temporarily and |
6 | transition. |
7 | (a) Transition.--The borough shall continue to be governed |
8 | as before the dissolution until the date of transition specified |
9 | in the decree, at which time the government of the borough shall |
10 | cease and terminate, its charter shall be annulled and its |
11 | territory shall revert to and become a part of the township from |
12 | which it was taken, subject to the township's government and |
13 | control. The governing bodies of the borough and the township |
14 | shall cooperate in assuring transition by the date specified in |
15 | the decree. Between the filing of the decree and the date of |
16 | transition, the borough shall not enact any ordinance, enter |
17 | into any new contract or assume any new debt unless the action |
18 | is necessary for transition and approved by the governing body |
19 | of the township. Upon transition: |
20 | (1) The property and assets of the borough, including |
21 | all uncollected taxes and liens, may be converted into cash |
22 | by the township supervisors solely for the payment of the |
23 | outstanding indebtedness of the borough, but any moneys not |
24 | needed for this purpose shall revert to the township. |
25 | Township taxes on persons residing or employed in, and |
26 | property contained within, that portion of the township |
27 | formerly included within the limits of the borough may be |
28 | reserved by the township to be used exclusively for the |
29 | payment of outstanding indebtedness of the borough not |
30 | otherwise paid as provided in this paragraph. |
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1 | (2) The township shall be the successor to the title to |
2 | all property, all obligations, liabilities, agreements, |
3 | grants and privileges of the borough existing or accruing |
4 | immediately prior to the date of transition. The title to |
5 | real estate vested in the township shall not revert or be in |
6 | any way impaired by reason of the dissolution of the borough. |
7 | Nothing in this subdivision shall be construed as authorizing |
8 | the impairment of any contractual rights existing prior to |
9 | the date of transition. |
10 | (3) The persons and property within that portion of the |
11 | township formerly included within the limits of the borough |
12 | shall be subject to the ordinances, codes, regulations and |
13 | rules of the township, provided that any lot, structure or |
14 | use of property that was lawful prior to transition shall be |
15 | considered nonconforming for any township ordinance enacted |
16 | in accordance with the act of July 31, 1968 (P.L.805, |
17 | No.247), known as the Pennsylvania Municipalities Planning |
18 | Code. |
19 | (b) Employees.--Subsequent to the date of transition, the |
20 | township may, in accordance with existing contracts or |
21 | arbitration award provisions and consistent with applicable |
22 | laws, reduce the number of uniformed and nonuniformed employees |
23 | to avoid overstaffing and duplication of positions in the |
24 | township. If the township determines in its discretion that it |
25 | is necessary to increase the number of uniformed or nonuniformed |
26 | employees, employees shall be reinstated in the order of their |
27 | seniority if they had been previously furloughed. |
28 | (c) Collective bargaining provisions.--Nothing in this |
29 | section shall prohibit a township from exercising its powers and |
30 | responsibilities pursuant to provisions of law related to |
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1 | collective bargaining, including, but not limited to, the act of |
2 | June 24, 1968 (P.L.237, No.111), referred to as the Policemen |
3 | and Firemen Collective Bargaining Act, and the act of July 23, |
4 | 1970 (P.L.563, No.195), known as the Public Employe Relations |
5 | Act. |
6 | Section 317. Priority in economic assistance and financial aid. |
7 | Any township that is the subject of a decree under this |
8 | subdivision shall: |
9 | (1) Be considered an eligible municipality for purposes |
10 | of economic assistance as that term is used in Subchapter E |
11 | of Chapter 2 of the Municipalities Financial Recovery Act for |
12 | a period not to exceed five years from the date of the |
13 | decree. Upon receipt of the decree as provided in section |
14 | 315, the secretary shall notify all Commonwealth agencies of |
15 | the township's priority status. |
16 | (2) Be eligible for grants and loans pursuant to Chapter |
17 | 3 of the Municipalities Financial Recovery Act without |
18 | establishing that an emergency exists. However, any funds |
19 | received shall be used exclusively for costs associated with |
20 | the process of transition and shall be subject to the |
21 | limitations provided in section 303 of the Municipalities |
22 | Financial Recovery Act. |
23 | Section 318. Court costs and filing fees. |
24 | The granting of a petition shall entitle the petitioners to |
25 | reimbursement for filing fees and court costs paid in |
26 | proceedings pursuant to this subdivision. In no event shall |
27 | attorney fees be eligible for reimbursement. Notwithstanding any |
28 | provision of law to the contrary, the department shall provide |
29 | reimbursement from the Municipalities Financial Recovery |
30 | Revolving Aid Fund created under section 301(c) of the |
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1 | Municipalities Financial Recovery Act. |
2 | Section 3. This act shall take effect immediately. |
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