PRINTER'S NO. 1873
No. 1483 Session of 2003
INTRODUCED BY PETRONE, LESCOVITZ, RUBLEY, T. STEVENSON, PRESTON, KOTIK, LAUGHLIN, WATERS, DeWEESE, BELFANTI, GRUCELA, YOUNGBLOOD, YUDICHAK, PETRARCA, LEVDANSKY, PISTELLA, SCRIMENTI, SEMMEL, HORSEY, LEACH, TANGRETTI, HARHAI, DALEY, HENNESSEY AND SURRA, JUNE 2, 2003
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 2, 2003
AN ACT 1 Amending Title 53 (Municipalities Generally) of the Pennsylvania 2 Consolidated Statutes, providing for the establishment and 3 incorporation of Keystone Council of Government (KCOG) 4 entities and for the powers, duties and limitations on a 5 KCOG; and making an appropriation. 6 The General Assembly finds and declares as follows: 7 (1) Councils of governments and consortia wishing to 8 seek incorporation must do so as a nonprofit entity, 9 restricting them from Federal and State grant funding because 10 these municipal units cannot currently serve as direct 11 project managers. 12 (2) Local governments around this Commonwealth spend a 13 large amount of taxpayer dollars on duplicated services. 14 (3) Many municipalities around this Commonwealth are 15 interested in reducing the amount of money spent on 16 duplicated services but have no desire to merge 17 administrative structures with neighboring local governments. 18 (4) The amount of spending by municipalities on
1 duplicated services should be decreased through a 2 comprehensive plan to do all of the following: 3 (i) Encourage municipalities to work together to 4 provide shared services such as joint police, fire and 5 emergency medical services. 6 (ii) Allow preexisting and new councils of 7 governments and consortia to incorporate and serve as 8 direct project managers. 9 (iii) Allow preexisting and new councils of 10 governments and consortia to incorporate and be eligible 11 for State grant funding to carry out shared programs. 12 (iv) Especially encourage distressed municipalities 13 to incorporate and engage in shared services. 14 The General Assembly of the Commonwealth of Pennsylvania 15 hereby enacts as follows: 16 Section 1. Chapter 23 of Title 53 of the Pennsylvania 17 Consolidated Statutes is amended by adding a subchapter to read: 18 SUBCHAPTER D 19 KEYSTONE COUNCILS OF GOVERNMENT 20 Sec. 21 2361. Short title of subchapter. 22 2362. Definitions. 23 2363. Methods of incorporation. 24 2364. Municipalities withdrawing from and joining to a KCOG. 25 2365. Certification of withdrawal or joinder. 26 2366. Amendment of articles. 27 2367. Powers. 28 2368. Limitation on pledge of credit or taxing power. 29 2369. Regulation by the Commonwealth. 30 2370. Money of a KCOG. 20030H1483B1873 - 2 -
1 2371. Auditor General. 2 2372. Competition in award of contracts. 3 2373. Conflict of interest. 4 2374. Entry into contracts. 5 2375. Evasion. 6 2376. Use of projects. 7 2377. Pledge by Commonwealth for Federal matters. 8 2378. Exemption from taxation and payments in lieu of taxes. 9 2379. Assistance from the Governor's Center of Local 10 Government Services. 11 2380. Keystone Council of Government Start-Up Grant Program. 12 2381. Appropriation. 13 2382. Constitutional construction. 14 § 2361. Short title of subchapter. 15 This subchapter shall be known and may be cited as the 16 Keystone Council of Government Act. 17 § 2362. Definitions. 18 The following words and phrases when used in this subchapter 19 shall have the meanings given to them in this section unless the 20 context clearly indicates otherwise: 21 "Board." The governing board of a Keystone Council of 22 Government. 23 "Center." The Governor's Center for Local Government 24 Services. 25 "Construction." Acquisition and construction. The term "to 26 construct" shall mean and include to acquire and to construct, 27 all in such manner as may be deemed desirable. 28 "Department." The Department of Community and Economic 29 Development of the Commonwealth. 30 "Federal agency." The United States of America, the 20030H1483B1873 - 3 -
1 President of the United States of America and any department of 2 or corporation, agency or instrumentality created, designated or 3 established by the United States of America. 4 "Financial obligation." Any obligation in which a Keystone 5 Council of Government has agreed to spend funds or receive grant 6 moneys for the purpose of financing a project. 7 "Improvement." Extension, enlargement and improvement. The 8 term "to improve" shall mean and include to extend, to enlarge 9 and to improve all in such manner as may be deemed desirable. 10 "KCOG." A Keystone Council of Government corporate entity. 11 "Municipality." A city, incorporated town, borough or 12 township of the Commonwealth. 13 "Project." Any structure, facility or undertaking which a 14 Keystone Council of Government is authorized to acquire, 15 construct, finance, improve, maintain or operate. 16 § 2363. Methods of incorporation. 17 (a) Resolution of intent.--Whenever two or more 18 municipalities jointly desire to organize a KCOG under this 19 subchapter, each municipality shall adopt a resolution or 20 ordinance signifying its intention to do so. No such resolution 21 or ordinance shall be adopted until after a public hearing has 22 been held, the notice of which shall be given at least 30 days 23 before the hearing and in the same manner as provided in 24 subsection (b) for the giving of notice of the adoption of the 25 resolution or ordinance. 26 (b) General notice of adopted resolution.--If the resolution 27 or ordinance is adopted, the municipalities shall cause a notice 28 of such resolution or ordinance to be published at least one 29 time in the legal periodical of the county or counties in which 30 the KCOG is to be organized and at least one time in a newspaper 20030H1483B1873 - 4 -
1 published and in general circulation in such county or counties. 2 The notice shall contain a brief statement of the substance of 3 the resolution or ordinance, including the substance of the 4 articles making reference to this subchapter. The notice shall 5 specifically provide that the municipality shall retain the 6 right which exists under this subchapter to approve any plan of 7 the KCOG. The notice shall state that on a day certain, not less 8 than three days after publication of the notice, articles of 9 incorporation of the proposed KCOG shall be filed with the 10 Secretary of the Commonwealth. No municipality shall be required 11 to make any other publication of the resolution or ordinance 12 under the provisions of existing law. 13 (c) Filing articles of incorporation.--On or before the day 14 specified in the notice required under subsection (b), the KCOG 15 shall file with the Secretary of the Commonwealth articles of 16 incorporation together with proof of publication of the notice 17 required under subsection (b). The articles of incorporation 18 shall set forth: 19 (1) The name of the KCOG. 20 (2) A statement that the KCOG is formed under this 21 subchapter. 22 (3) The name of the incorporating municipalities. 23 (4) The names, addresses and term of office of the first 24 members of the board of the KCOG. 25 (5) A statement that the municipalities have retained 26 the right which exists under this subchapter to approve any 27 plan of the KCOG. 28 (6) Any other matter which shall be determined in 29 accordance with the provisions of this subchapter. 30 (d) Execution of articles.--The articles of incorporation 20030H1483B1873 - 5 -
1 shall be executed by each incorporating municipality by its 2 proper officers and under its municipal seal. 3 (e) Certification of incorporation.--If the Secretary of the 4 Commonwealth finds that the articles of incorporation conform to 5 law, he shall, but not prior to the day specified in the notice 6 published in accordance with subsection (b), endorse his 7 approval of them and, when all proper fees and charges have been 8 paid, shall file the articles and issue a certificate of 9 incorporation to which shall be attached a copy of the approved 10 articles. Upon the issuance of a certificate of incorporation by 11 the Secretary of the Commonwealth, the corporate existence of 12 the KCOG shall begin. The certificate of incorporation shall be 13 conclusive evidence of the fact that the KCOG has been 14 incorporated, but proceedings may be instituted by the 15 Commonwealth to dissolve a KCOG which was formed without 16 substantial compliance with the provisions of this section. 17 (f) Certification of officers.--When a KCOG has been 18 organized and its officers elected, the secretary of the KCOG 19 shall certify to the Secretary of the Commonwealth the names and 20 addresses of its officers as well as the principal office of the 21 KCOG. Any change in the location of the principal office shall 22 likewise be certified to the Secretary of the Commonwealth 23 within ten days after such change. A KCOG created under the laws 24 of the Commonwealth and existing at the time this subchapter is 25 enacted, in addition to powers granted or conferred upon the 26 KCOG, shall possess all the powers provided under this 27 subchapter. 28 § 2364. Municipalities withdrawing from and joining to a KCOG. 29 (a) Power to withdraw.--When a KCOG has been incorporated by 30 two or more municipalities, any one or more of such 20030H1483B1873 - 6 -
1 municipalities may withdraw from it, but no municipality shall 2 be permitted to withdraw from a KCOG unless and until any and 3 all obligations have been satisfied by that KCOG. 4 (b) Power to join.--When a KCOG has been incorporated by two 5 or more municipalities, a municipality not having joined in the 6 original incorporation may subsequently join in the KCOG. 7 (c) Procedure.--Any municipality wishing to withdraw from or 8 to become a member of an existing KCOG shall signify its desire 9 by resolution or ordinance. If the KCOG shall by resolution 10 express its consent to such withdrawal or joining, the 11 withdrawing or joining municipality shall cause a notice of its 12 resolution or ordinance to be published at least one time in the 13 legal periodical of the county or counties in which the KCOG is 14 organized and at least one time in a newspaper published and in 15 general circulation in such county or counties. This notice 16 shall contain a brief statement of the substance of the 17 resolution or ordinance, making reference to this subchapter, 18 and shall state that on a day certain, not less than three days 19 after publication of the notice, an application to withdraw from 20 or to become a member of the KCOG, as the case may be, will be 21 filed with the Secretary of the Commonwealth. 22 (d) Filing an application to withdraw or join.--On or before 23 the day specified in the notice, the municipality shall file an 24 application with the Secretary of the Commonwealth together with 25 proof of publication of the notice required under subsection 26 (c). The application shall set forth all of the information 27 required in the case of original incorporation insofar as it 28 applies to the incoming municipality, including the name and 29 address and term of office of the first member or members of the 30 board of the KCOG from the incoming municipality and, if there 20030H1483B1873 - 7 -
1 is to be a reapportionment of representation or revision of the 2 terms of office of the members of the board, the names, 3 addresses and terms of office of all the members of the board as 4 so reapportioned or revised. 5 (e) Execution of application.--The application in all cases 6 shall be executed by the proper officers of the withdrawing or 7 incoming municipality under its municipal seal and shall be 8 joined in by the proper officers of the governing body of the 9 KCOG and, in the case of a municipality seeking to become a 10 member of the KCOG, by the proper officers of each of the 11 municipalities that are then members of the KCOG pursuant to 12 resolutions by the municipality. 13 § 2365. Certification of withdrawal or joinder. 14 If the Secretary of the Commonwealth finds that the 15 application conforms to law, he shall, but not prior to the day 16 specified in the notice, endorse his approval of it and, when 17 all proper fees and charges have been paid, shall file the same 18 and issue a certificate of withdrawal or a certificate of 19 joinder, as the case may be, to which shall be attached a copy 20 of the approved application. The withdrawal or joining shall 21 become effective upon the issuing of the certificate. 22 § 2366. Amendment of articles. 23 (a) Purpose.--A KCOG may amend its articles for the 24 following reasons: 25 (1) To adopt a new name. 26 (2) To change, add to or diminish its powers or purposes 27 or to set forth different or additional powers or purposes. 28 (3) To increase or decrease the number of members of the 29 board of the KCOG, to reapportion the representation on the 30 board of the KCOG and to revise the terms of office of 20030H1483B1873 - 8 -
1 members. 2 (b) Procedure.--Every amendment to the articles shall first 3 be proposed by the board by the adoption of a resolution setting 4 forth the proposed amendment and directing that it be submitted 5 to the governing authorities of the municipalities composing the 6 KCOG. The resolution shall contain the language of the proposed 7 amendment to the articles by providing that the articles shall 8 be amended so as to read as set forth in full in the resolution, 9 that any provision of the articles be amended so as to read as 10 set forth in full in the resolution or that the matter stated in 11 the resolution be added to or stricken from the articles. After 12 the amendments have been submitted to the municipalities, such 13 municipalities shall adopt or reject such amendment by 14 resolution or ordinance. 15 (c) Execution and verification.--After an amendment has been 16 adopted by the municipalities, articles of amendment shall be 17 executed under the seal of the KCOG and follow the method of 18 incorporation for forming a KCOG. Advertisements shall appear at 19 least three days prior to the day upon which the articles of 20 amendment are presented to the Secretary of the Commonwealth and 21 shall set forth briefly: 22 (1) The name and location of the registered office of 23 the KCOG. 24 (2) A statement that the articles of amendment are to be 25 filed under the provisions of this subchapter. 26 (3) The nature and character of the proposed amendment. 27 (4) The time when the articles of amendment will be 28 filed with the Secretary of the Commonwealth. 29 (d) Filing the amendment.--The articles of amendment and 30 proof of the required advertisement shall be delivered by the 20030H1483B1873 - 9 -
1 KCOG or its representative to the Secretary of the Commonwealth. 2 If the Secretary of the Commonwealth finds that the articles 3 conform to law, he shall forthwith, but not prior to the day 4 specified in the advertisement required in subsection (c)(4), 5 endorse his approval of it and, when all fees and charges have 6 been paid, shall file the articles and issue to the KCOG or its 7 representative a certificate of amendment to which shall be 8 attached a copy of the approved articles. 9 § 2367. Powers. 10 (a) General powers.--Every KCOG may exercise all powers 11 necessary or convenient for the carrying out of the purposes set 12 forth in this section, including, but without limiting the 13 generality of the foregoing, the following rights and powers: 14 (1) To sue and be sued, implead and be impleaded, 15 complain and defend in all courts. 16 (2) To adopt, use and alter at will a corporate seal. 17 (3) To acquire, purchase, hold, lease as lessee and use 18 any franchise, property, real, personal or mixed, tangible or 19 intangible, or any interest therein necessary or desirable 20 for carrying out the purposes of the KCOG, and to sell, lease 21 as lessor, transfer and dispose of any property or interest 22 therein at any time acquired by it. 23 (4) To acquire by purchase, lease or otherwise and to 24 construct, improve, maintain, repair and operate projects. 25 (5) To make bylaws for the management and regulation of 26 its affairs. 27 (6) To appoint officers, agents, employees and servants, 28 to prescribe their duties and to fix their compensation. 29 (7) To make contracts of every name and nature and to 30 execute all instruments necessary or convenient for the 20030H1483B1873 - 10 -
1 carrying on of its business. 2 (8) To pledge, hypothecate or otherwise encumber all or 3 any of the revenues or receipts of the KCOG as security for 4 all or any of the obligations of the KCOG. 5 (9) To do all acts and things necessary or convenient 6 for the promotion of its business and the general welfare of 7 the KCOG to carry out the powers granted to it by this 8 subchapter or other law. 9 (10) A KCOG may participate in any other activity not 10 contradictory to the limitations set forth in this subchapter 11 or regulations promulgated by the department in regards to 12 this subchapter. 13 (b) Limitations.--This section is subject to the following 14 limitations: 15 (1) The purpose and intent of this subchapter being to 16 benefit the people of the Commonwealth by, among other 17 things, increasing their commerce, health, safety and 18 prosperity and not to unnecessarily burden or interfere with 19 existing business by the establishment of competitive 20 enterprises, none of the powers granted by this subchapter 21 shall be exercised in the construction, financing, 22 improvement, maintenance, extension or operation of any 23 project or projects or providing financing for insurance 24 reserves which in whole or in part shall duplicate or compete 25 with existing enterprises serving substantially the same 26 purposes. This limitation shall not apply to the exercise of 27 the powers granted under this paragraph: 28 (i) For facilities and equipment for the collection, 29 removal or disposal of ashes, garbage, rubbish and other 30 refuse materials by incineration, landfill or other 20030H1483B1873 - 11 -
1 methods if each municipality organizing or intending to 2 use the facilities of a KCOG having such powers shall 3 declare by resolution or ordinance that it is desirable 4 for the health and safety of the people of such 5 municipality that it use the facilities of the KCOG and 6 state if any contract between such municipality and any 7 other person, firm or corporation for the collection, 8 removal or disposal of ashes, garbage, rubbish and other 9 refuse material has by its terms expired or is terminable 10 at the option of the municipality or will expire within 11 six months from the date such ordinance becomes 12 effective. 13 (ii) For industrial development projects if the KCOG 14 does not develop industrial projects which will compete 15 with existing industries. 16 (2) For each KCOG project, municipal members of that 17 KCOG have the right either to participate or not participate 18 in the project. A municipality's approval for entering into a 19 project is determined by a resolution or ordinance granting 20 the municipality's participation. 21 (3) A KCOG municipal member which as voted to 22 participate in a KCOG project may withdraw from it by a 23 resolution or ordinance authorizing a project withdrawal, but 24 no municipality shall be permitted to withdraw from 25 commitment unless and until any and all financial obligations 26 incurred by the KCOG have been satisfied. 27 § 2368. Limitation on pledge of credit or taxing power. 28 (a) General rule.--A KCOG may not pledge the credit or 29 taxing power of the Commonwealth or its political subdivision. 30 (b) Not Commonwealth obligations.--The obligations of a KCOG 20030H1483B1873 - 12 -
1 are not obligations of the Commonwealth. The Commonwealth shall 2 not be liable for the payment of principal of or interest on 3 obligations of a KCOG. 4 (c) Municipal limitation.--No municipality in the 5 Commonwealth may join more than one KCOG. 6 § 2369. Regulation by the Commonwealth. 7 The department shall have the authority to promulgate any and 8 all regulations it deems necessary to implement and regulate the 9 provisions of this subchapter. 10 § 2370. Money of a KCOG. 11 (a) Treasurer.--Any and all moneys derived from whatever 12 source shall be paid to the treasurer of the KCOG. 13 (b) Report.--Every KCOG whose fiscal year ends December 31 14 shall file on or before July 1 an annual report of its fiscal 15 affairs covering the preceding calendar year with the department 16 and with the municipality creating the KCOG on forms prepared 17 and distributed by the department. Every KCOG whose fiscal year 18 does not end on December 31 shall file the report within 90 days 19 after the end of their fiscal year. 20 (c) Annual audit.--Every KCOG shall have its books, accounts 21 and records audited annually by a certified public accountant. A 22 copy of that audit report shall be filed in the KCOG office for 23 the purpose of public review and in the office of the 24 municipalities that created the KCOG. 25 (d) Publication of annual financial statement.--A concise 26 financial statement shall be published annually at least once in 27 a newspaper of general circulation in the municipality where the 28 principal office of the KCOG is located. If the publication is 29 not made by the KCOG, the municipality shall publish such 30 statement at the expense of the KCOG. 20030H1483B1873 - 13 -
1 (e) Power of municipal auditor.--If the KCOG fails to make 2 such an audit, then the controller, auditor or accountant 3 designated by the municipality is hereby authorized and 4 empowered from time to time to examine at the expense of the 5 KCOG the accounts and books of it, including its receipts, 6 disbursements, contracts, leases, sinking funds, investments and 7 any other matters relating to its finances, operation and 8 affairs. 9 § 2371. Auditor General. 10 The Auditor General of the Commonwealth shall have the right 11 to examine the books, accounts and records of any KCOG. 12 § 2372. Competition in award of contracts. 13 (a) Services.-- 14 (1) Except as set forth in paragraph (2), all 15 construction, reconstruction, repair or work of any nature 16 made by a KCOG if the entire cost, value or amount, including 17 labor and materials, exceeds $10,000 shall be done only under 18 contract to be entered into by the KCOG with the lowest 19 responsible bidder upon proper terms after public notice 20 asking for competitive bids as provided in this section. 21 (2) Paragraph (1) does not apply to construction, 22 reconstruction, repair or work done by employees of the KCOG 23 or by labor supplied under agreement with a Federal or State 24 agency with supplies and materials purchased as provided in 25 this section. 26 (3) No contract shall be entered into for construction 27 or improvement or repair of a project or portion thereof 28 unless the contractor gives an undertaking with a sufficient 29 surety approved by the KCOG and in an amount fixed by the 30 KCOG for the faithful performance of the contract. 20030H1483B1873 - 14 -
1 (4) The contract must provide among other things that 2 the person or corporation entering into the contract with the 3 KCOG will pay for all materials furnished and services 4 rendered for the performance of the contract and that any 5 person or corporation furnishing materials or rendering 6 services may maintain an action to recover for them against 7 the obligor in the undertaking as though such person or 8 corporation was named in the contract if the action is 9 brought within one year after the time the cause of action 10 accrued. 11 (5) Nothing in this section shall be construed to limit 12 the power of the KCOG to construct, repair or improve a 13 project or portion thereof or any addition, betterment or 14 extension thereto directed by the officers, agents and 15 employees of the KCOG or otherwise than by contract. 16 (b) Supplies and materials.--All supplies and materials 17 costing at least $10,000 shall be purchased only after 18 advertisement as provided in this section. The KCOG shall accept 19 the lowest bid, kind, quality and material being equal, but the 20 KCOG shall have the right to reject any or all bids or select a 21 single item from any bid. The provisions as to bidding shall not 22 apply to the purchase of patented and manufactured products 23 offered for sale in a noncompetitive market or solely by a 24 manufacturer's authorized dealer. 25 (c) Quotations.--Written or telephonic price quotations from 26 at least three qualified and responsible contractors shall be 27 requested for a contract which exceeds $4,000 but is less than 28 the amount requiring advertisement and competitive bidding. In 29 lieu of price quotations, a memorandum shall be kept on file 30 showing that fewer than three qualified contractors exist in the 20030H1483B1873 - 15 -
1 market area within which it is practicable to obtain quotations. 2 A written record of telephonic price quotations shall be made 3 and shall contain at least the date of the quotation; the name 4 of the contractor and the contractor's representative; the 5 construction, reconstruction, repair, maintenance or work which 6 was the subject of the quotation; and the price. Written price 7 quotations, written records of telephonic price quotations and 8 memoranda shall be retained for a period of three years. 9 (d) Limited definitions.--The term "advertisement" or 10 "public notice," wherever used in this section, shall mean a 11 notice published at least ten days before the award of a 12 contract in a newspaper of general circulation published in the 13 municipality where the KCOG has its principal office or, if no 14 newspaper of general circulation is published therein, in a 15 newspaper of general circulation in the county where the KCOG 16 has its principal office. Notice may be waived if the KCOG 17 determines that an emergency exists which requires the authority 18 to purchase the supplies and materials immediately. 19 § 2373. Conflict of interest. 20 No member of the KCOG or officer or employee of the KCOG may 21 directly or indirectly be a party to or be interested in any 22 contract or agreement with the KCOG if the contract or agreement 23 establishes liability against or indebtedness of the KCOG. Any 24 contract or agreement made in violation of this subsection is 25 void and no action may be maintained on the agreement against 26 the KCOG. 27 § 2374. Entry into contracts. 28 Subject to section 2373 (relating to conflict of interest), a 29 KCOG may enter into and carry out contracts or establish or 30 comply with rules and regulations concerning labor and materials 20030H1483B1873 - 16 -
1 and other related matters in connection with a project or 2 portion thereof as the KCOG deems desirable or as may be 3 requested by a Federal agency to assist in the financing of the 4 project or any part thereof. This paragraph shall not apply to a 5 contract in connection with the construction of a project which 6 the KCOG may have had transferred to it by any person or private 7 corporation. This section is not intended to limit the powers of 8 a KCOG. 9 § 2375. Evasion. 10 (a) General rule.--A KCOG may not evade the provisions of 11 this section as to bids or purchasing materials or contracting 12 for services piecemeal for the purpose of obtaining prices under 13 $10,000 upon transactions which should, in the exercise of 14 reasonable discretion and prudence, be conducted as one 15 transaction amounting to more than $10,000. 16 (b) Unlawful activity.--This subsection is intended to make 17 unlawful the practice of evading advertising requirements by 18 making a series of purchases or contracts each for less than the 19 advertising requirement price or by making several simultaneous 20 purchases or contracts each below that price when in either case 21 the transaction involved should have been made as one 22 transaction for one price. 23 (c) Liability of KCOG members.--A KCOG member who votes to 24 unlawfully evade the provisions of this section and who knows 25 that the transaction upon which the member votes is or ought to 26 be a part of a larger transaction and that it is being divided 27 in order to evade the requirements as to advertising for bids 28 commits a misdemeanor of the third degree for each contract 29 entered into as a direct result of that vote. 30 § 2376. Use of projects. 20030H1483B1873 - 17 -
1 The use of the facilities of the KCOG and the operation of 2 its business shall be subject to the rules and regulations as 3 adopted by the KCOG. The KCOG shall not be authorized to do 4 anything which will impair the security of the holders of the 5 obligations of the KCOG or violate any agreements with them or 6 for their benefit. 7 § 2377. Pledge by Commonwealth for Federal matters. 8 The Commonwealth pledges to and agrees with the United States 9 and all Federal agencies that, if a Federal agency constructs or 10 contributes funds for the construction, extension, improvement 11 or enlargement of a project or any portion thereof: 12 (1) The Commonwealth will not alter or limit the rights 13 and powers of the KCOG in any manner which would be 14 inconsistent with the continued maintenance and operation of 15 the project or the improvement thereof or which would be 16 inconsistent with the due performance of agreements between 17 the KCOG and any Federal agency. 18 (2) The KCOG shall continue to have and may exercise all 19 powers granted in this subchapter as long as the powers are 20 necessary or desirable for carrying out the purposes of this 21 subchapter and the purposes of the United States in the 22 construction or improvement or enlargement of the project or 23 portion thereof. 24 § 2378. Exemption from taxation and payments in lieu of taxes. 25 The effectuation of the authorized purposes of a KCOG created 26 under this subchapter shall be for the benefit of the people of 27 this Commonwealth, for the increase of their commerce and 28 prosperity and for the improvement of their health and living 29 conditions. Since the KCOG will be performing essential 30 governmental functions in effectuating these purposes, the KCOG 20030H1483B1873 - 18 -
1 shall not be required to pay taxes or assessments upon property 2 acquired or used by it for such purposes. 3 § 2379. Assistance from the Governor's Center of Local 4 Government Services. 5 (a) General rule.--Every KCOG shall be entitled to receive 6 technical assistance from the center in matters concerning 7 fiscal management, intergovernmental cooperation and any service 8 which the center deems willing to provide. 9 (b) Financial assistance.--Every KCOG shall be eligible to 10 apply for financial assistance from the center in grant funding 11 programs including the Shared Municipal Services Program, Land 12 Use Planning and Technical Assistance Program and any other 13 grant program to which the center is willing to provide a KCOG 14 access. 15 § 2380. Keystone Council of Government Start-Up Grant Program. 16 (a) Establishment.--The Keystone Council of Government 17 Start-Up Grant Program is hereby established and shall be 18 administered by the center. Grants provided under this program 19 shall be used to improve and enhance the capabilities of 20 municipalities incorporated under this subchapter. 21 (b) Guidelines and procedures.--The center shall develop 22 guidelines, procedures and all applications necessary to 23 implement the grant program. The center shall submit the 24 guidelines, procedures and applications to the Legislative 25 Reference Bureau for publication in the Pennsylvania Bulletin 26 and Pennsylvania Code within 60 days of the effective date of 27 this subchapter. 28 (c) Authorization.--The center is hereby permitted to make a 29 one-time grant award to any eligible KCOG to assist in the 30 operational, technical and capital building costs of 20030H1483B1873 - 19 -
1 incorporating a new KCOG. 2 (d) Limitations on grant amounts.-- 3 (1) The department shall establish limits on the amount 4 of money available to each applicant so as to distribute the 5 available funds as fairly as possible throughout this 6 Commonwealth. 7 (2) In no case shall the aggregate amount of grants in 8 any fiscal year exceed the amount of the appropriation to the 9 department for the program in that fiscal year. The provision 10 of grants under this act shall in no way constitute an 11 entitlement derived from the Commonwealth or a claim on any 12 other funds of the Commonwealth. 13 (3) A KCOG that includes municipal members on the list 14 of municipalities, determined to be distressed under the act 15 of July 10, 1987 (P.L.246, No.47), known as the 16 Municipalities Financial Recovery Act, shall be given 17 priority consideration of this grant. 18 § 2381. Appropriation. 19 The sum of $2,500,000, or as much thereof as may be 20 necessary, is hereby appropriated to the department to carry out 21 the KCOG Grant Program for the first fiscal year of its 22 implementation. 23 § 2382. Constitutional construction. 24 The provisions of this subchapter shall be severable, and if 25 any of the provisions are held to be unconstitutional it shall 26 not affect the validity of any of the remaining provisions of 27 this subchapter. It is hereby declared as the legislative intent 28 that this subchapter would have been adopted had such 29 unconstitutional provisions not been included. 30 Section 2. This act shall take effect in 60 days. E28L53DMS/20030H1483B1873 - 20 -