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                                                      PRINTER'S NO. 1661

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1423 Session of 1989


        INTRODUCED BY BURNS, J. L. WRIGHT, CLYMER, WILSON AND MELIO,
           MAY 22, 1989

        REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 22, 1989

                                     AN ACT

     1  Amending the act of April 14, 1949 (P.L.482, No.98), entitled,
     2     as amended, "An act authorizing and requiring cities,
     3     boroughs, townships, municipal authorities and public utility
     4     companies engaged in the supplying of water, to shut off the
     5     supply of water for nonpayment of sewer, sewerage, or sewage
     6     treatment rentals, rates, or charges imposed by municipal
     7     authorities organized by counties of the second class, by
     8     cities of the second class, by cities of the second class A,
     9     by cities of the third class, by boroughs or by townships of
    10     the first or second class; authorizing and requiring them to
    11     supply to such authorities lists of metered water readings
    12     and flat-rate water bills and other data; authorizing them to
    13     act as billing and collecting agents for such authorities;
    14     and conferring certain powers upon the Pennsylvania Public
    15     Utility Commission in connection therewith," extending to
    16     additional municipal authorities the powers granted in the
    17     act; and making editorial changes.

    18     The General Assembly of the Commonwealth of Pennsylvania
    19  hereby enacts as follows:
    20     Section 1.  The title of the act of April 14, 1949 (P.L.482,
    21  No.98), entitled, as amended, "An act authorizing and requiring
    22  cities, boroughs, townships, municipal authorities and public
    23  utility companies engaged in the supplying of water, to shut off
    24  the supply of water for nonpayment of sewer, sewerage, or sewage
    25  treatment rentals, rates, or charges imposed by municipal

     1  authorities organized by counties of the second class, by cities
     2  of the second class, by cities of the second class A, by cities
     3  of the third class, by boroughs or by townships of the first or
     4  second class; authorizing and requiring them to supply to such
     5  authorities lists of metered water readings and flat-rate water
     6  bills and other data; authorizing them to act as billing and
     7  collecting agents for such authorities; and conferring certain
     8  powers upon the Pennsylvania Public Utility Commission in
     9  connection therewith," amended July 10, 1957 (P.L.622, No.331),
    10  is amended to read:
    11                               AN ACT
    12  Authorizing and requiring cities, boroughs, townships, municipal
    13     authorities and public utility companies engaged in the
    14     supplying of water, to shut off the supply of water for
    15     nonpayment of sewer, sewerage, or sewage treatment rentals,
    16     rates, or charges imposed by [municipal authorities organized
    17     by counties of the second class, by cities of the second
    18     class, by cities of the second class A, by cities of the
    19     third class, by boroughs or by townships of the first or
    20     second class] municipalities or municipal authorities
    21     organized by municipalities; authorizing and requiring them
    22     to supply to such authorities lists of metered water readings
    23     and flat-rate water bills and other data; authorizing them to
    24     act as billing and collecting agents for such authorities;
    25     and conferring certain powers upon the Pennsylvania Public
    26     Utility Commission in connection therewith.
    27     Section 2.  Section 1 of the act, amended September 28, 1978
    28  (P.L.827, No.162), is amended to read:
    29     Section 1.  If the owner or occupant of premises served by
    30  any water utility, as hereinafter defined, shall neglect or fail
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     1  to pay, for a period of thirty (30) days from the due date
     2  thereof, any rental, rate or charge for sewer, sewerage, or
     3  sewage treatment service imposed by any municipality or
     4  municipal authority organized by any [county of the second
     5  class, by any city of the second class, by any city of the
     6  second class A, by any city of the third class, by any borough
     7  or by any township of the first or second class] municipality,
     8  such water utility is hereby authorized and required, at the
     9  request and direction of the municipality or of such authority,
    10  or of the [city, borough, or township] municipality to which the
    11  authority shall have assigned its claim or lien for such
    12  service, to shut off the supply of water to such premises until
    13  all such overdue rentals, rates and charges, together with any
    14  penalties and interest thereon, shall be paid. If such authority
    15  or such [city, borough, or township] municipality shall also
    16  supply water to any premises, it is hereby authorized to shut
    17  off the supply of water to such premises, as herein set forth.
    18  If the rental rate or charge for sewer, sewerage or sewage
    19  treatment service is imposed by a municipality as lessee of an
    20  authority organized as aforesaid and the said lessee shall also
    21  supply water to such premises, then such municipality is hereby
    22  authorized to shut off the supply of water to such premises as
    23  herein set forth without prior request from said authority or
    24  without prior assignment of its claim or lien for such services.
    25  In no case shall the water supply be shut off to any premises
    26  until ten days after written notice of an intention so to do has
    27  been mailed to the person liable for payment of the rentals and
    28  charges, and in addition thereto, there has been posted a
    29  written notice at a main entrance to the premises. If during
    30  such ten day period, the person liable for the payment of the
    19890H1423B1661                  - 3 -

     1  rentals and charges delivers to the water utility authority or
     2  municipality supplying water to the premises a written
     3  statement, under oath or affirmation, stating that he has a just
     4  defense to the claim, or part of it, for such rentals or
     5  charges, then the water supply shall not be shut off until claim
     6  has been judicially determined. The statement shall also contain
     7  a declaration under oath or affirmation that it was not executed
     8  for the purpose of delay.
     9     Nothing contained in this section shall authorize any
    10  authority or any privately owned sewer or water company to shut
    11  off or deny water service to any lessee of a property because a
    12  previous lessee failed to pay either the water or sewer service
    13  rate, rental or charge.
    14     Section 3.  Section 4 of the act, reenacted and amended
    15  September 7, 1955 (P.L.576, No.147) and repealed in part June 3,
    16  1971 (P.L.118, No.6), is amended to read:
    17     Section 4.  The authority imposing such sewer, sewerage, or
    18  sewage treatment rentals, rates, or charges shall pay to every
    19  such water utility the reasonable additional clerical and other
    20  expenses incurred by it in providing such billing and collecting
    21  services. The authority or [city, borough, or township]
    22  municipality which shall request and direct the shut-off of
    23  water shall also pay to the water utility the cost of such shut-
    24  off services and the estimated loss of water revenues resulting
    25  from such shut-off. Water utilities are hereby authorized to
    26  enter into long-term agreements with such authorities for the
    27  performance of such billing and collecting services and with
    28  such authorities[, cities, boroughs and townships] and
    29  municipalities for such shut-off services, which agreements
    30  shall be binding upon such water utilities, their successors and
    19890H1423B1661                  - 4 -

     1  assigns. If a dispute shall arise between any such water utility
     2  and the authority[, city, borough, or township] or municipality
     3  regarding the cost of such services, or the amount of such
     4  revenues lost, or regarding the provisions of any agreement
     5  between them concerning payments for such services, such dispute
     6  shall be submitted by either party to the Pennsylvania Public
     7  Utility Commission, whose decision, unless reversed on appeal,
     8  shall be final; but this act shall not be construed to grant to
     9  the Pennsylvania Public Utility Commission any other regulatory
    10  power or jurisdiction whatsoever over [counties, cities,
    11  boroughs, townships,] municipalities or authorities.
    12     Section 4.  Section 5 of the act, reenacted and amended
    13  September 7, 1955 (P.L.576, No.147), is amended to read:
    14     Section 5.  As used in this act[,]:
    15     (1)  the term "water utility" or "water utilities" shall be
    16  construed to include all [cities, boroughs, townships, municipal
    17  authorities] municipalities, municipal authorities organized by
    18  municipalities and public utility companies engaged in the
    19  supplying of water or water service[.]; and
    20     (2)  the term "municipality" or "municipalities" shall be
    21  construed to include all counties, cities, boroughs, towns and
    22  townships other than counties and cities of the first class.
    23     Section 5.  This act shall take effect immediately.





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