PRINTER'S NO. 3419
No. 2356 Session of 2006
INTRODUCED BY ZUG, PERZEL, S. H. SMITH, ARGALL, FEESE,
E. Z. TAYLOR, CIVERA, PHILLIPS, BUNT, FLICK, ADOLPH,
ARMSTRONG, BAKER, BASTIAN, BENNINGHOFF, CREIGHTON, DALLY,
DENLINGER, FAIRCHILD, FICHTER, FLEAGLE, GABIG, GILLESPIE,
HARRIS, HASAY, HERSHEY, HESS, M. KELLER, LEH, MAJOR, MARSICO,
McGILL, McNAUGHTON, MICOZZIE, MILLARD, S. MILLER, MUSTIO,
NAILOR, O'NEILL, PICKETT, PYLE, REED, SATHER, SCHRODER,
SEMMEL, B. SMITH, STERN, R. STEVENSON, T. STEVENSON, TRUE,
YEWCIC AND YOUNGBLOOD, JANUARY 26, 2006
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JANUARY 26, 2006
AN ACT
1 Requiring State and local approval for terminations or transfers
2 by municipal authorities.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Municipal
7 Authority Approval of Actions Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Authority." A body politic and corporate which meets all of
13 the following:
14 (1) Is established by a city and incorporated under any
1 of the following:
2 (i) The former act of June 28, 1935 (P.L.463,
3 No.191) entitled, "An act providing, for a limited period
4 of time, for the incorporation, as bodies corporate and
5 politic, of 'Authorities' for municipalities; defining
6 the same; prescribing the rights, powers, and duties of
7 such Authorities; authorizing such Authorities to
8 acquire, construct, improve, maintain, and operate
9 projects, and to borrow money and issue bonds therefor;
10 providing for the payment of such bonds, and prescribing
11 the rights of the holders thereof; conferring the right
12 of eminent domain on such Authorities; authorizing such
13 Authorities to enter into contracts with and to accept
14 grants from the Federal Government or any agency thereof;
15 and for other purposes."
16 (ii) The former act of May 2, 1945 (P.L.382,
17 No.164), known as the Municipal Authorities Act of 1945.
18 (iii) 53 Pa.C.S. Ch. 56 (relating to municipal
19 authorities).
20 (2) Has a total number of residents who utilize water or
21 sewer services and reside outside the boundaries of the city
22 that exceeds the number of residents who utilize water or
23 sewer services and reside within the boundaries of the city
24 pursuant to either of the following:
25 (i) Agreements with a municipality.
26 (ii) Directly to residents of a municipality.
27 (3) Owns one or all of the following:
28 (i) A sewer, sewer system or parts of a sewer or
29 sewer system or sewage treatment works, including works
30 for treating and disposing of industrial waste.
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1 (ii) A waterworks, water supply works or water
2 distribution system.
3 "City." A city of the third class.
4 "Commission." The Pennsylvania Public Utility Commission.
5 Section 3. Approvals.
6 (a) Commission.--If a city intends to continue water or
7 sewer service provided by an authority to municipalities outside
8 the city, the city must obtain approval of the commission prior
9 to:
10 (1) termination of an authority;
11 (2) conveyance of a project of the authority under 53
12 Pa.C.S. § 5622 (relating to conveyance by authorities to
13 municipalities or school districts of established projects);
14 or
15 (3) transfer of reserves, assets or funds from an
16 authority to the city.
17 (b) Other municipalities.--
18 (1) A city must obtain approval from 75% of the
19 municipalities which have service agreements with or whose
20 residents receive services from an authority prior to:
21 (i) termination of the authority;
22 (ii) conveyance of a project of the authority under
23 53 Pa.C.S. § 5622; or
24 (iii) transfer of reserves, assets or funds from the
25 authority to the city.
26 (2) Approval under paragraph (1) is as follows:
27 (i) The approval must be in the form of a
28 resolution.
29 (ii) The resolution must be adopted at a public
30 meeting by an affirmative vote of a majority of the
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1 members of the governing body.
2 (iii) The result of an affirmative vote under
3 subparagraph (ii) must be transmitted to the city within
4 48 hours of the vote.
5 Section 9. Applicability.
6 This act shall apply to any action to terminate, convey or
7 transfer a water or sewer system under 53 Pa.C.S. Ch. 56
8 (relating to municipal authorities), which are initiated after
9 November 1, 2005.
10 Section 10. Effective date.
11 This act shall take effect immediately.
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