PRIOR PRINTER'S NO. 1772 PRINTER'S NO. 1994
No. 1426 Session of 2003
INTRODUCED BY KELLER, TIGUE, LEDERER, CAPPELLI, COSTA, HENNESSEY, HORSEY, JOSEPHS, LAUGHLIN, LEACH, McGEEHAN, McNAUGHTON, PRESTON, RUFFING, SOLOBAY, THOMAS, WATSON, YOUNGBLOOD AND YUDICHAK, MAY 12, 2003
AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 11, 2003
AN ACT 1 Amending the act of May 24, 1945 (P.L.991, No.385), entitled "An 2 act to promote elimination of blighted areas and supply 3 sanitary housing in areas throughout the Commonwealth; by 4 declaring acquisition, sound replanning and redevelopment of 5 such areas to be for the promotion of health, safety, 6 convenience and welfare; creating public bodies corporate and 7 politic to be known as Redevelopment Authorities; authorizing 8 them to engage in the elimination of blighted areas and to 9 plan and contract with private, corporate or governmental 10 redevelopers for their redevelopment; providing for the 11 organization of such authorities; defining and providing for 12 the exercise of their powers and duties, including the 13 acquisition of property by purchase, gift or eminent domain; 14 the leasing and selling of property, including borrowing 15 money, issuing bonds and other obligations, and giving 16 security therefor; restricting the interest of members and 17 employes of authorities; providing for notice and hearing; 18 supplying certain mandatory provisions to be inserted in 19 contracts with redevelopers; prescribing the remedies of 20 obligees of redevelopment authorities; conferring certain 21 duties upon local planning commissions, the governing bodies 22 of cities and counties, and on certain State officers, boards 23 and departments," further providing for provisions of the 24 redevelopment contract; and making repeals. 25 The General Assembly of the Commonwealth of Pennsylvania 26 hereby enacts as follows: 27 Section 1. Section 11 of the act of May 24, 1945 (P.L.991,
1 No.385), known as the Urban Redevelopment Law, amended October 2 2, 2002 (P.L.796, No.113), is amended to read: 3 Section 11. Provisions of the Redevelopment Contract.-- 4 (a) The contract between the Authority and a redeveloper 5 shall contain, without being limited to, the following 6 provisions: 7 (1) A legal description of the redevelopment area covered by 8 the contract, and a covenant running with land to the effect 9 that no person shall be deprived of the right to live in the 10 redevelopment project, or to use any of the facilities therein 11 by reason of race, creed, color or national origin, and such 12 other easements, or other rights as are to be reserved therein 13 by the Authority; 14 (2) Plans and such other documents as may be required to 15 show the type, material, structure and general character of the 16 redevelopment project; 17 (3) A statement of the use intended for each part of the 18 project; 19 (4) A guaranty of completion of the redevelopment project 20 within specified time limits which guaranty shall include 21 provisions for the forfeiture of title, in such form and manner 22 as the Authority may prescribe, in the event that the project is 23 not completed timely; 24 (4-1) A requirement that every prime contract for 25 construction, installation, alteration, repair of, or addition 26 to, the redevelopment project, where the estimated cost shall 27 exceed $10,000.00, shall contain a provision obligating the 28 prime contractor to the prompt payment of all material 29 furnished, labor supplied or performed, rental for equipment 30 employed, and services rendered by public utilities in or in 20030H1426B1994 - 2 -
1 connection with the prosecution of the work, whether or not, the 2 said material, labor, equipment and services enter into and 3 become component parts of the work or improvement contemplated. 4 Such provision shall be deemed to be included for the benefit of 5 every person, co-partnership, association or corporation, who as 6 subcontractor, or otherwise, has furnished material, supplied or 7 performed labor, rented equipment, or supplied services in or in 8 connection with the prosecution of the work as aforesaid, and 9 the inclusion thereof in any contract shall preclude the filing 10 by any such person, co-partnership, association or corporation 11 of any mechanics' lien claim for such material, labor or rental 12 of equipment, and further requiring that the [contractor shall 13 give to the redeveloper an appropriate bond] redeveloper shall 14 provide to the Authority evidence of financial security for the 15 prompt payment by the prime contractor for materials, supplies, 16 labor, services and equipment. Such financial security shall <-- 17 equal 100% of the contract amount and may include, but not be 18 limited to, an appropriate bond from a surety company authorized 19 to do business in this Commonwealth, an irrevocable letter of 20 credit from a Federal or Commonwealth Chartered Lending 21 Institution and/or a restrictive or escrow account, and shall be 22 in such form as the Authority may prescribe; [IN SUCH FORM AS <-- 23 THE AUTHORITY MAY PRESCRIBE;]. SUCH FINANCIAL SECURITY SHALL 24 EQUAL 100% OF THE CONTRACT AMOUNT, SHALL BE IN SUCH FORM AS THE 25 AUTHORITY MAY PRESCRIBE AND MAY INCLUDE, BUT NOT BE LIMITED TO, 26 ANY ONE OR A COMBINATION OF THE FOLLOWING: 27 (I) AN APPROPRIATE BOND FROM A SURETY COMPANY AUTHORIZED TO 28 DO BUSINESS IN THIS COMMONWEALTH; 29 (II) AN IRREVOCABLE LETTER OF CREDIT FROM A FEDERAL OR 30 COMMONWEALTH-CHARTERED LENDING INSTITUTION; OR 20030H1426B1994 - 3 -
1 (III) A RESTRICTIVE OR ESCROW ACCOUNT; 2 (5) A provision that the redeveloper shall be without power 3 to sell, lease or otherwise transfer the redevelopment area, or 4 project, or any part thereof, without the prior written consent 5 of the Authority, until the Authority shall have certified in 6 writing that the redevelopment project has been completed; 7 (5-1) For all projects in which the estimated construction 8 costs exceed $1,000,000.00, a requirement that the redeveloper 9 shall provide to the Authority, and shall cause each prime 10 contractor to provide or submit to, a project cost certification 11 performed by one or more independent, third-party certified 12 public accountants establishing the actual total construction 13 costs incurred and paid by the redeveloper and each prime 14 contractor in connection with the redevelopment project. The 15 receipt of the construction cost certification shall be a 16 condition for receiving a certificate of completion; 17 (6) The amount of the consideration to be paid by the 18 redeveloper to the Authority; 19 (7) Adequate safeguards for proper maintenance of all parts 20 of the project; 21 (8) Prohibition against discrimination in the use, sale or 22 lease of any part of the project against any person because of 23 race, color, religion or national origin; 24 (9) Such other continuing controls as may be deemed 25 necessary to effectuate the purposes of this act; 26 (b) Any deed or lease to a redeveloper in furtherance of a 27 redevelopment contract shall be executed in the name of the 28 Authority, by its proper officers, and shall contain in addition 29 to all other provisions, such provisions as the Authority may 30 deem desirable to run with the land in order to effectuate the 20030H1426B1994 - 4 -
1 purposes of this act; 2 (c) Any lease to a redeveloper may provide that all 3 improvements shall become the property of the Authority. The 4 execution of such a lease shall not in itself impose upon the 5 Authority any liability for or by reason of the financing, 6 construction, management or operation of any redevelopment 7 project. 8 Section 2. All rights, duties and obligations arising under 9 any redevelopment contract awarded by an Authority prior to the 10 effective date of this act shall continue to be governed by the 11 provisions of the law in effect at the time of such award. 12 Section 3. (a) The following acts and parts of acts are <-- 13 repealed: 14 Section 8(1) of the act of December 30, 2002 (P.L.2001, 15 No.230), entitled "An act amending Title 53 (Municipalities 16 Generally) of the Pennsylvania Consolidated Statutes, providing 17 for acceptance of gifts or donations; further providing for 18 powers and duties of the Municipal Police Officers' Education 19 and Training Commission; prohibiting political activity by 20 municipal police officers; further providing, in parking 21 authorities, for definitions, for purposes and powers and for 22 special provisions for authorities in first class cities; 23 providing, in parking authorities in first class cities, for 24 additional special provisions, for management of authority 25 funds, for special funds, for bonds, for contracts with 26 authority obligees, for Commonwealth pledges, for bond and trust 27 indentures, for funds collected, for bonds as legal investments, 28 for pledge validity, for security interests in funds and 29 accounts and for bankruptcy limitations; further providing for 30 municipal authority governing bodies and money; providing for 20030H1426B1994 - 5 -
1 regulation of taxicabs and limousines in first class cities; 2 further providing for governing body of municipal authorities 3 and for certain fiscal reporting; codifying the act of June 27, 4 1986 (P.L.267, No.70), known as the Pennsylvania Convention 5 Center Authority Act; defining "expansion or substantial 6 renovation"; further providing for purposes and powers and for 7 capital and operating budgets; providing for expansion funding; 8 further providing for governing board, for moneys of the 9 authority, for award of contracts, for interests of public 10 officers and for rental tax; making an appropriation; and making 11 repeals." 12 53 Pa.C.S. Ch. 58. 13 (b) The act of December 20, 1967 (P.L.869, No.385), known as 14 the Public Works Contractors' Bond Law of 1967, is repealed 15 insofar as it is inconsistent with this act. 16 SECTION 3. THE FOLLOWING ACTS AND PARTS OF ACTS ARE REPEALED <-- 17 TO THE EXTENT SPECIFIED: 18 ACT OF DECEMBER 20, 1967 (P.L.869, NO.385), KNOWN AS THE 19 PUBLIC WORKS CONTRACTORS' BOND LAW OF 1967, INSOFAR AS IT IS 20 INCONSISTENT WITH THIS ACT. 21 53 PA.C.S. CH. 58, ABSOLUTELY. 22 Section 4. This act shall take effect immediately. C10L14MRD/20030H1426B1994 - 6 -