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PRINTER'S NO. 1227
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1171
Session of
2021
INTRODUCED BY FREEMAN, JAMES, MOUL, KNOWLES AND SAPPEY,
APRIL 14, 2021
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 14, 2021
AN ACT
Amending the act of July 10, 1987 (P.L.246, No.47), entitled "An
act empowering the Department of Community and Economic
Development to assist municipalities in avoiding financial
distress; declare certain municipalities as financially
distressed; providing for the restructuring of debt of
financially distressed municipalities; limiting the ability
of financially distressed municipalities to obtain government
funding; authorizing municipalities to participate in Federal
debt adjustment actions and bankruptcy actions under certain
circumstances; authorizing certain taxes; and providing for
the disincorporation of municipalities and the establishment
of unincorporated service districts," in municipal financial
distress, further providing for designation and for
performance of coordinator; and, in receivership in
municipalities, further providing for receiver.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 221 of the act of July 10, 1987 (P.L.246,
No.47), known as the Municipalities Financial Recovery Act, is
amended by adding subsections to read:
Section 221. Designation.
* * *
(f) Prohibitions.--The coordinator may not:
(1) Engage in any conduct prohibited by the act of July
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19, 1957 (P.L.1017, No.451), known as the State Adverse
Interest Act, or 65 Pa.C.S. Ch. 11 (relating to ethics
standards and financial disclosure).
(2) Receive any compensation, fee or commission:
(i) From the distressed municipality unless
specifically authorized by the coordinator's contract.
(ii) In accordance with any sale or lease of
property or other financial transaction involving the
distressed municipality or an authority directly or
indirectly controlled by the distressed municipality.
(g) Prior appointment.--A person who has previously
contracted with the department or the distressed municipality as
a coordinator, receiver, financial consultant, legal counsel or
through a contract under the Early Intervention Program under
Chapter 1-A may not be deemed ineligible to be appointed as a
coordinator under this section solely on the basis of that
contract.
Section 2. Section 224.1(b) of the act is amended to read:
Section 224.1. Performance of coordinator.
* * *
(b) Termination of coordinator.--An unfavorable review under
this section or a violation of section 221(f) may constitute
grounds for termination of the coordinator's contract.
Section 3. Section 705(f) of the act is amended and the
section is amended by adding a subsection to read:
Section 705. Receiver.
* * *
(f) Prohibitions.--The receiver [shall] may not:
(1) Seek or hold a position as any other elected or
appointed public official within this Commonwealth or as a
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political party officer during the term of the receivership.
(2) Seek election as a public official or political
party officer for one year after the person's service as
receiver has ended.
(3) Engage in any conduct prohibited by the act of July
19, 1957 (P.L.1017, No.451), known as the State Adverse
Interest Act, or 65 Pa.C.S. Ch. 11 (relating to ethics
standards and financial disclosure).
(4) Receive any compensation, fee or commission:
(i) From the distressed municipality unless
specifically authorized by the receiver's contract.
(ii) In accordance with any sale or lease of
property or other financial transaction involving the
distressed municipality or an authority directly or
indirectly controlled by the distressed municipality.
* * *
(h) Prior appointment.--A person who has previously
contracted with the department or the distressed municipality as
a coordinator, receiver, financial consultant, legal counsel or
through a contract under the Early Intervention Program under
Chapter 1-A may not be deemed ineligible to be appointed as a
receiver under this section solely on the basis of that
contract.
Section 4. This act shall take effect in 60 days.
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