PRINTER'S NO. 884
No. 804 Session of 1989
INTRODUCED BY PECORA, REIBMAN, JUBELIRER AND AFFLERBACH,
APRIL 10, 1989
REFERRED TO LOCAL GOVERNMENT, APRIL 10, 1989
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of 'Authorities' for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," clarifying the body empowered to make appointments to
15 authority boards; changing the terms of authority members;
16 and making editorial changes.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Section 2(b) and (d) of the act of May 2, 1945
20 (P.L.382, No.164), known as the Municipality Authorities Act of
21 1945, are amended to read:
22 Section 2. Definitions.--The following terms whenever used
23 or referred to in this act shall have the following meanings,
24 except in those instances where the context clearly indicates
1 otherwise:
2 * * *
3 (b) The term ["Board"] "board" shall mean the [governing
4 body of] the board of directors appointed to jointly exercise
5 the powers conveyed to an Authority.
6 * * *
7 (d) The term ["Municipal Authority"] "governing body" shall
8 mean the body or board authorized by law to enact ordinances or
9 adopt resolutions for the particular municipality.
10 * * *
11 Section 2. Subsections A and B of section 3 of the act,
12 amended June 12, 1947 (P.L.571, No.249), April 10, 1980
13 (P.L.105, No.41) and July 3, 1980 (P.L.360, No.91), are amended
14 to read:
15 Section 3. Method of Incorporation.--A. Whenever the
16 [municipal authorities] governing body of any municipality
17 singly or of two or more municipalities jointly shall desire to
18 organize an Authority under this act, [they] each municipality
19 shall adopt a resolution or ordinance signifying [their] its
20 intention to do so but no such resolution or ordinance shall be
21 adopted until after a public hearing has been held, the notice
22 of which shall be given at least thirty days before in the same
23 manner as hereinafter provided for the giving of notice of the
24 adoption of the resolution or ordinance.
25 Thereafter if the resolution or ordinance is adopted the
26 [municipal authorities] governing body of such municipality or
27 municipalities shall cause a notice of such resolution or
28 ordinance to be published at least one time in the legal
29 periodical of the county or counties in which such Authority is
30 to be organized, and at least one time in a newspaper published
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1 and of general circulation in such county or counties. Said
2 notice shall contain a brief statement of the substance of said
3 resolution or ordinance, including the substance of such
4 articles making reference to this act, and shall specifically
5 provide that the municipality or municipalities have retained
6 the right which exists under this act to approve any plan of the
7 Authority, in the case of Authorities created for the purpose of
8 making business improvements or providing administrative
9 services if appropriate, and shall state that on a day certain,
10 not less than three days after publication of said notice,
11 articles of incorporation of the proposed Authority will be
12 filed with the Secretary of the Commonwealth of Pennsylvania. No
13 such municipality shall be required (any law to the contrary
14 notwithstanding) to make any other publication of such
15 resolution or ordinances under the provisions of existing law.
16 The aforesaid publication of such notice shall be sufficient
17 compliance with such laws.
18 B. On or before the day specified in said notice the
19 [municipal authorities] governing body of each municipality
20 desiring to form, either singly or jointly with other
21 municipalities, an Authority shall file with the Secretary of
22 the Commonwealth articles of incorporation together with proof
23 of publication of the notice as aforesaid. Said articles of
24 incorporation shall set forth:
25 (a) The name of the "Authority."
26 (b) A statement that such Authority is formed under this
27 act.
28 (c) A statement whether any other Authority has been
29 organized under this act or under the act, approved the twenty-
30 eighth day of June, one thousand nine hundred thirty-five
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1 (Pamphlet Laws 463), and is in existence in or for the
2 incorporating municipality or municipalities, except that where
3 any one or more of the municipalities have already joined with
4 other municipalities not composing the same group in organizing
5 a joint Authority, the application shall set forth the name of
6 the Authority theretofore created, together with the names of
7 the municipalities joining therein.
8 (d) The name of the incorporating municipality or
9 municipalities, together with the names and addresses of its
10 [municipal authorities] governing body, and
11 (e) The names, addresses and term of office of the first
12 members of the board of said Authority.
13 (f) A statement that the municipality or municipalities have
14 retained the right which exists under this act to approve any
15 plan of the Authority, in the case of Authorities created for
16 the purpose of making business improvements or providing
17 administrative services, if appropriate.
18 All of which matter shall be determined in accordance with
19 the provisions of this act. Said articles of incorporation shall
20 be executed by each incorporating municipality by its proper
21 officers and under its municipal seal.
22 * * *
23 Section 3. Subsections A and B of section 3.1 of the act,
24 amended April 26, 1949 (P.L.761, No.187) and January 21, 1952
25 (1951 P.L.2188, No.626), are amended to read:
26 Section 3.1. Municipalities Withdrawing from and Joining in
27 Joint Authorities.--A. Whenever an Authority has been
28 incorporated by two or more municipalities, any one or more of
29 such municipalities may withdraw therefrom, but no municipality
30 shall be permitted to withdraw from any Authority after any
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1 obligation has been incurred by the Authority. Whenever an
2 Authority has been incorporated by one or more municipalities,
3 any municipality not having joined in the original incorporation
4 may subsequently join in the Authority.
5 Any municipality wishing to withdraw from or to become a
6 member of an existing Authority shall signify its desire by
7 resolution or ordinance. If the Authority shall by resolution
8 express its consent to such withdrawal[, or joining the
9 municipal authorities] or joining, the governing body of the
10 withdrawing or joining municipality shall cause a notice of its
11 resolution or ordinance to be published at least one time in the
12 legal periodical of the county or counties in which the
13 Authority is organized and at least one time in a newspaper
14 published and of general circulation in such county or counties.
15 Such notice shall contain a brief statement of the substance of
16 the resolution or ordinance, making reference to this act, and
17 shall state that on a day certain, not less than three days
18 after publication of the notice, an application to withdraw
19 from, or to become a member of the Authority, as the case may
20 be, will be filed with the Secretary of the Commonwealth.
21 B. On or before the day specified in the notice the
22 [municipal authorities] governing body of the municipality
23 wishing to withdraw from or join the Authority shall file such
24 application with the Secretary of the Commonwealth, together
25 with proof of publication of the notice hereby required. In the
26 case of a municipality seeking to become a member of the
27 Authority, the application shall set forth all of the
28 information required in the case of original incorporation in so
29 far as it applies to the incoming municipality, including the
30 name and address and term of office of the first member or
19890S0804B0884 - 5 -
1 members of the board of the Authority from the incoming
2 municipality, and if there is to be a reapportionment of
3 representation or revision of the terms of office of the members
4 of the board, the names, addresses and terms of office of all
5 the members of the board as so reapportioned or revised. The
6 application in all cases shall be executed by the proper
7 officers of the withdrawing or incoming municipality under its
8 municipal seal, and shall be joined in by the proper officers of
9 the governing body of the Authority, and in the case of a
10 municipality seeking to become a member of the Authority also by
11 the proper officers of each of the municipalities that are then
12 members of the Authority, pursuant to resolutions by the
13 [municipal authorities] governing bodies of such municipalities.
14 * * *
15 Section 4. Subsection B of section 3.2 of the act, added
16 April 26, 1949 (P.L.761, No.187), is amended to read:
17 Section 3.2. Amendment of Articles.--* * *
18 B. Every amendment to the articles shall first be proposed
19 by the board by the adoption of a resolution setting forth the
20 proposed amendment and directing that it be submitted to the
21 governing [authorities of the] body of each municipality or
22 municipalities composing the Authority. The resolution shall
23 contain the language of the proposed amendment to the articles
24 by providing that the articles shall be amended so as to read as
25 therein set forth in full, or that any provision thereof be
26 amended so as to read as therein set forth in full, or that the
27 matter stated in the resolution be added to or stricken from the
28 articles. After the amendments have been submitted to the
29 municipality or municipalities, such municipality or
30 municipalities shall adopt or reject such amendment by
19890S0804B0884 - 6 -
1 resolution or ordinance.
2 * * *
3 Section 5. Subsection A of section 4 of the act, amended
4 October 21, 1988 (P.L.1041, No.117), is amended to read:
5 Section 4. Purposes and Powers; General.--A. Every
6 Authority incorporated under this act shall be a body corporate
7 and politic.
8 (a) The Authority shall be for the purpose of acquiring,
9 holding, constructing, financing, improving, maintaining and
10 operating, owning, leasing, either in the capacity of lessor or
11 lessee, projects of the following kind and character:
12 (1) equipment to be leased by an Authority to the
13 municipality or municipalities that organized it, or to any
14 municipality or school district located wholly or partially
15 within the boundaries of the municipality or municipalities that
16 organized it;
17 (2) buildings to be devoted wholly or partially for public
18 uses, including public school buildings, and facilities for the
19 conduct of judicial proceedings, and for revenue-producing
20 purposes;
21 (3) transportation, marketing, shopping, terminals, bridges,
22 tunnels, flood control projects, highways, parkways, traffic
23 distribution centers, parking spaces, airports, and all
24 facilities necessary or incident thereto;
25 (4) parks, recreation grounds and facilities;
26 (5) sewers, sewer systems or parts thereof;
27 (6) sewage treatment works, including works for treating and
28 disposing of industrial waste;
29 (7) facilities and equipment for the collection, removal or
30 disposal of ashes, garbage, rubbish and other refuse materials
19890S0804B0884 - 7 -
1 by incineration, land fill or other methods;
2 (8) steam heating plants and distribution systems;
3 (9) incinerator plants;
4 (10) waterworks, water supply works, water distribution
5 systems;
6 (11) facilities to produce steam which is used by the
7 Authority or is sold on a contract basis for industrial or
8 similar use or on a sale-for-resale basis to one or more
9 entities authorized to sell steam to the public, provided that
10 such facilities have been approved by resolution or ordinance
11 adopted by the governing body of the municipality or
12 municipalities organizing such Authority and that the approval
13 does not obligate the taxing power of the municipality in any
14 way;
15 (12) facilities for generating surplus electric power which
16 are related to incinerator plants, dams, water supply works,
17 water distribution systems or sewage treatment plants pursuant,
18 where applicable, to section 3 of the Federal Power Act (16
19 U.S.C. § 796, relating to definitions) and section 210 of the
20 Public Utility Regulatory Policies Act of 1978 (16 U.S.C. §
21 824a-3, relating to "Cogeneration and Small Power Production")
22 or Title IV of the Public Utility Regulatory Policies Act of
23 1978 (16 U.S.C. §§ 2701 to 2708, relating to "Small
24 Hydroelectric Power Projects"), provided that:
25 (i) electric power generated from the facilities shall be
26 sold or distributed only on a sale-for-resale basis to one or
27 more entities authorized to sell electric power to the public;
28 (ii) the facilities shall have been approved by resolution
29 or ordinance adopted by the governing body of the municipality
30 or municipalities organizing such Authority and the approval
19890S0804B0884 - 8 -
1 does not obligate the taxing power of the municipality in any
2 way; and
3 (iii) the incinerator plants, dams, water supply works,
4 water distribution systems or sewage treatment plants will be
5 located within or contiguous with a county in which at least one
6 of the municipalities organizing such Authority is located,
7 except that this paragraph shall not apply to incinerator
8 plants, dams, water supply works, water distribution systems or
9 sewage treatment plants located in any county which have been or
10 will be constructed by or acquired by such Authority to perform
11 functions, the primary purposes of which are other than that of
12 generation of electric power, for which such Authority has been
13 organized;
14 (13) swimming pools, playgrounds, lakes, low head dams;
15 (14) hospitals, health centers;
16 (15) buildings and facilities for private, nonprofit,
17 nonsectarian colleges and universities, State-related
18 universities and community colleges, which are determined by the
19 Authority to be eligible educational institutions provided that
20 such buildings and facilities shall have been approved by
21 resolution or ordinance adopted by the governing body of the
22 municipality or municipalities organizing the Authority and that
23 the approval does not obligate the taxing power of the governing
24 body in any way;
25 (16) motor buses for public use, when such motor buses are
26 to be used within any municipality, subways; and
27 (17) industrial development projects, including but not
28 limited to projects to retain or develop existing industries and
29 the development of new industries, the development and
30 administration of business improvements and administrative
19890S0804B0884 - 9 -
1 services related thereto.
2 (b) This section is subject to the following limitations:
3 (1) An Authority created by a school district or school
4 districts shall have the power only to acquire, hold, construct,
5 improve, maintain, operate and lease public school buildings and
6 other school projects acquired, constructed or improved for
7 public school purposes.
8 (2) The purpose and intent of this act being to benefit the
9 people of the Commonwealth by, among other things, increasing
10 their commerce, health, safety and prosperity, and not to
11 unnecessarily burden or interfere with existing business by the
12 establishment of competitive enterprises, none of the powers
13 granted by this act shall be exercised in the construction,
14 improvement, maintenance, extension or operation of any project
15 or projects which in whole or in part shall duplicate or compete
16 with existing enterprises serving substantially the same
17 purposes. This limitation shall not apply to the exercise of the
18 powers granted hereunder:
19 (i) for facilities and equipment for the collection, removal
20 or disposal of ashes, garbage, rubbish and other refuse
21 materials by incineration, land fill or other methods, if each
22 municipality organizing or intending to use the facilities of an
23 Authority having such powers shall declare by resolution or
24 ordinance that it is desirable for the health and safety of the
25 people of such municipality that it use the facilities of the
26 Authority, and if any contract between such municipality and any
27 other person, firm or corporation for the collection, removal or
28 disposal of ashes, garbage, rubbish and other refuse material
29 has by its terms expired or is terminable at the option of the
30 municipality or will expire within six months from the date such
19890S0804B0884 - 10 -
1 ordinance becomes effective; nor
2 (ii) for industrial development projects if the Authority
3 does not develop industrial projects which will compete with
4 existing industries; nor
5 (iii) for Authorities created for the purpose of providing
6 business improvements and administrative services if each
7 municipality organizing an Authority for such a project shall
8 declare by resolution or ordinance that it is desirable for the
9 entire municipality to improve the business district; nor
10 (iv) to hospital projects or health centers to be leased to,
11 or financed with loans to, public hospitals, nonprofit
12 corporation health centers or nonprofit hospital corporations
13 serving the public or to school building projects and facilities
14 to be leased to, or financed with loans to, private, nonprofit,
15 nonsectarian colleges and universities, State-related
16 universities and community colleges, or to facilities, limited
17 as described above, to produce steam or to generate electric
18 power, if each municipality organizing an Authority for such a
19 project shall declare by resolution or ordinance that it is
20 desirable for the health, safety and welfare of the people in
21 the area served by such facilities to have such facilities
22 provided by, or financed through, an Authority.
23 (c) The municipality or municipalities organizing such an
24 Authority may, in the resolution or ordinance signifying their
25 intention so to do, or from time to time by subsequent
26 resolution or ordinance, specify the project or projects to be
27 undertaken by the said Authority, and no other projects shall be
28 undertaken by the said Authority than those so specified. If the
29 [municipal authorities] governing bodies organizing an Authority
30 fail to specify the project or projects to be undertaken, then
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1 the Authority shall be deemed to have all the powers granted by
2 this act.
3 * * *
4 Section 6. Subsections A and B of section 7 of the act,
5 amended July 27, 1953 (P.L.639, No.185) and March 14, 1978
6 (P.L.12, No.7), are amended to read:
7 Section 7. [Governing Body] Authority Board.--A. The powers
8 of each Authority shall be exercised by [a governing body
9 (herein called the "Board")] an Authority Board composed as
10 follows:
11 (a) If the Authority is incorporated by one municipality the
12 board shall consist of such number of members not less than five
13 as shall be set forth in the articles of incorporation or
14 amendment thereto. The governing body of such municipality shall
15 appoint the members of the board, whose terms of office shall
16 commence on the date of appointment. One member shall serve for
17 one year, one for two years, one for three years, one for four
18 years and one for five years from 12:01 a.m. on the first
19 [Monday in January] day in February next succeeding the date of
20 incorporation or amendment, and if there are more than five
21 members of the board, their terms shall be staggered in a
22 similar manner for terms of from one to five years from 12:01
23 a.m. the first [Monday in January] day in February next
24 succeeding. Thereafter whenever a vacancy has occurred by reason
25 of the expiration of the term of any member, the said governing
26 body shall appoint a member of the board for a term of five
27 years from the date of expiration of the prior term to succeed
28 the member whose term has expired.
29 (b) If the Authority is incorporated by two or more
30 municipalities, the [board] Authority Board shall consist of a
19890S0804B0884 - 12 -
1 number of members at least equal to the number of municipalities
2 incorporating the Authority, but in no event less than five.
3 When one or more additional municipalities join an existing
4 Authority, each of such joining municipalities shall have such
5 membership on the board as the municipalities then members of
6 the Authority and the joining municipalities may determine by
7 appropriate resolutions. The members of the board of a joint
8 Authority shall each be appointed by the governing body of the
9 incorporating or joining municipality he represents and their
10 terms of office shall commence on the date of appointment. One
11 member shall serve for one year, one for two years, one for
12 three years, one for four years and one for five years from
13 12:01 a.m. on the first [Monday in January] day in February next
14 succeeding the date of incorporation, amendment or joinder, and
15 if there are more than five members of the board, their terms
16 shall be staggered in a similar manner for terms of from one to
17 five years from 12:01 a.m. on the first [Monday in January] day
18 in February next succeeding. Thereafter, whenever a vacancy has
19 occurred by reason of the expiration of the term of any member,
20 the governing body of the municipality which has the power of
21 appointment shall appoint a member of the board for a term of
22 five years from the date of expiration of the prior term.
23 Except as herein provided for transit authorities created for
24 the purpose of eliminating grade crossings the members of the
25 board, each of whom shall be a taxpayer in, maintain a business
26 in, or be a citizen of the municipality by which he is appointed
27 or be a taxpayer in, maintain a business in, or be a citizen of
28 a municipality into which one or more of the projects of the
29 Authority extends or is to extend or to which one or more of
30 said projects has been or is to be leased, shall be appointed,
19890S0804B0884 - 13 -
1 their terms fixed and staggered, and vacancies filled, and where
2 two or more municipalities are members of the Authority, shall
3 be apportioned in such manner as the articles of incorporation,
4 the amendments thereof or the application for membership
5 required by section three point one of this act shall provide
6 not more than one non-resident shall be appointed to any board.
7 If the Authority, is created for the purpose of eliminating
8 grade crossings, the members of the board, the majority of whom
9 shall be citizens of the municipality by which they are
10 appointed or of a municipality into which one or more of the
11 projects of the Authority extends or is to extend or to which
12 one or more of said projects has been or is to be leased, shall
13 be appointed, their terms fixed and staggered, and vacancies
14 filled, and where two or more municipalities are members of the
15 Authority, shall be apportioned in such manner as the articles
16 of incorporation, the amendments thereof or the application for
17 membership required by section 3.1 of this act shall provide.
18 B. Members shall hold office until their successors have
19 been appointed, and may succeed themselves, and, except members
20 of the boards of Authorities organized or created by a school
21 district or school districts, shall receive such salaries as may
22 be determined by the governing body or bodies of the
23 municipality or municipalities, but none of such salaries shall
24 be increased or diminished by such governing body or bodies
25 during the term for which the member receiving the same shall
26 have been appointed. Members of the board of any Authority
27 organized or created by a school district or school districts
28 shall receive no compensation for their services, but the
29 members of such board in office on the effective date of this
30 amendment shall continue to receive their salaries during the
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1 remainder of their existing term. A member may be removed for
2 cause by the court of [quarter sessions of the county] common
3 pleas of the judicial district in which the Authority is located
4 after having been provided with a copy of the charges against
5 him for at least ten days and full hearing by the court. If a
6 vacancy shall occur by reason of the death, disqualification,
7 resignation or removal of a member, the [municipal authorities]
8 governing body of the incorporating municipality shall appoint a
9 successor to fill his unexpired term. In joint Authorities such
10 vacancies shall be filled by the [municipal Authorities]
11 governing body of the municipality in the representation of
12 which the vacancy occurs. Whenever any municipality shall
13 withdraw from a joint Authority the term of any member or
14 members appointed from such municipality shall immediately
15 terminate.
16 * * *
17 Section 7. This act shall take effect in 60 days.
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