Bill Text: PA SB357 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for general powers.

Spectrum: Moderate Partisan Bill (Republican 13-3)

Status: (Engrossed - Dead) 2011-06-22 - Laid on the table [SB357 Detail]

Download: Pennsylvania-2011-SB357-Introduced.html

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PRINTER'S NO. 347
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 357 Session of2011
INTRODUCED BY EICHELBERGER, RAFFERTY, ORIE, TARTAGLIONE, ERICKSON, GORDNER, ALLOWAY, WASHINGTON, BRUBAKER, WAUGH, GREENLEAF, EARLL, WOZNIAK AND PILEGGI, FEBRUARY 1, 2011
REFERRED TO LOCAL GOVERNMENT, FEBRUARY 1, 2011
AN ACT
Amending the act of February 1, 1966 (1965 P.L.1656, No.581),
entitled "An act concerning boroughs, and revising, amending
and consolidating the law relating to boroughs," further
providing for general powers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1201 of the act of February 1, 1966 (1965
P.L.1656, No.581), known as The Borough Code, amended November
29, 2004 (P.L.1337, No.170) and June 30, 2007 (P.L.47, No.15) is
amended to read:
Section 1201. General Powers.--A borough may:
(1) Have succession perpetually by its corporate name.
(2) Sue and be sued, and complain and defend in the courts
of the Commonwealth.
(3) Make and use a common seal, and alter the same at
pleasure.
(4) Purchase, acquire by gift, or otherwise, hold, lease,
let and convey, by sale or lease, such real and personal
property as shall be deemed to be to the best interest of the
borough, subject to the following restrictions, limitations or
exceptions:
(i) No real estate owned by the borough shall be sold for a
consideration in excess of fifteen hundred dollars ($1500),
except to the highest bidder after due notice by advertisement
for bids or advertisement of a public auction in one newspaper
of general circulation in the borough. Such advertisement shall
be published once not less than ten days prior to the date fixed
for the opening of bids or public auction, and such date for
opening bids or public auction shall be announced in such
advertisement. The award of contracts shall be made only by
public announcement at a regular or special meeting of council
or at the public auction. All bids shall be accepted on the
condition that payment of the purchase price in full shall be
made within sixty days of the acceptance of bids. The borough
council shall have the authority to reject all bids if such bids
are deemed to be less than the fair market value of the real
property. In the case of a public auction, the borough council
may establish a minimum bid based on the fair market value of
the real property. Real estate owned by a borough may be sold at
a consideration of fifteen hundred dollars ($1500) or less
without advertisement or competitive bidding only after council
estimates the value thereof upon receipt of an appraisal by a
qualified real estate appraiser.
(ii) Except as otherwise hereinafter provided in the case of
personal property of an estimated fair market value of less than
one thousand dollars ($1,000), no borough personal property
shall be disposed of, by sale or otherwise, except upon approval
of council, by ordinance or resolution. In cases where council
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shall approve a sale of such property, it shall estimate the
fair market value of the entire lot to be disposed of. If
council shall estimate the fair market value to be one thousand
dollars ($1,000) or more, the entire lot shall be advertised for
sale once, in at least one newspaper of general circulation in
the borough, not less than ten days prior to the date fixed for
the opening of bids or public auction, and such date of opening
of bids or public auction, shall be announced in such
advertisement, and sale of the property so advertised shall be
made to the best responsible bidder. A public auction of
personal property may be conducted by means of an online or
electronic auction sale. During an electronic auction sale, bids
shall be accepted electronically at the time and in the manner
designated in the advertisement. During the electronic auction,
each bidder shall have the capability to view the bidder's bid
rank or the high bid price. Bidders may increase their bid
prices during the electronic auction. The record of the
electronic auction shall be accessible for public inspection.
The purchase price shall be paid by the high bidder immediately
or at a reasonable time after the conclusion of the electronic
auction as determined by council. In the event that shipping
costs are incurred, they shall be paid by the high bidder. A
borough that has complied with the advertising requirements of
this section may provide additional public notice of the sale by
bids or public auction in any manner deemed appropriate by
council. The advertisement for electronic auction sales
authorized in this subclause shall include the Internet address
or means of accessing the electronic auction and the date, time
and duration of the electronic auction. Council may reject any
bids received if the bids are believed to be less than the fair
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market value of the property. Council shall, by resolution,
adopt a procedure for the sale of surplus personal property,
either individual items or lots of items, of an estimated fair
market value of less than one thousand dollars ($1,000) and the
approval of council shall not be required for any individual
sale that shall be made in conformity to such procedure.
(iii) The provisions of this clause shall not be mandatory
where borough property is to be traded in or exchanged for new
borough property.
(iv) The provisions of this clause requiring advertising for
bids or sale at public auction and sale to the highest bidder
shall not apply where borough real or personal property is to be
sold to:
(A) a county, city, borough, town, township, institution
district, school district, volunteer fire company, volunteer
ambulance service or volunteer rescue squad located within the
borough;
(A.1) a council of government, consortium, cooperative or
other similar entity created pursuant to 53 Pa.C.S. Ch. 23
(relating to intergovernmental cooperation);
(B) [a municipal authority pursuant to the Municipality
Authorities Act of 1945] an authority as defined in 53 Pa.C.S. §
5602 (relating to definitions);
(C) a non-profit corporation engaged in community
development or reuse only upon entering into a written agreement
with the non-profit corporation that requires the property to be
used for industrial, commercial or affordable housing purposes.
This exemption shall not apply to property on which existing
governmental functions are conducted;
(D) where real property is to be sold to a person for his
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exclusive use in an industrial development program;
(E) where real property is to be sold to a non-profit
corporation organized as a public library for its exclusive use
as a library;
(F) where real property is to be sold to a non-profit
medical service corporation as authorized by clause (76) of
section 1202;
(G) where real property is to be sold to a non-profit
housing corporation as authorized by clause (77) of section
1202;
(H) where real property is to be sold to the Commonwealth or
to the Federal Government; or
(I) where real property is to be sold to a non-profit museum
or historical society for its exclusive use as a non-profit
museum or historical society.
(v) When real property is to be sold to a non-profit
corporation organized as a public library for its exclusive use
as a library or to a non-profit medical service corporation or
to a non-profit housing corporation, council may elect to accept
such nominal consideration for such sale as it shall deem
appropriate.
(vi) Real property sold pursuant to this clause to a
volunteer fire company, volunteer ambulance service or volunteer
rescue squad, non-profit medical service corporation or to a
non-profit housing corporation shall be subject to the condition
that when the property is not used for the purposes of the
company, service, squad or the corporation the property shall
revert to the borough.
(vii) The exemption granted under subclause (iv)(C) shall
not apply to property owned and operated by the borough or
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subcontracted or operated on the behalf of the borough in order
to conduct existing governmental functions.
(5) To invest in or purchase bonds of any municipal
authority or parking authority created solely by the borough,
for the purpose either of investment or of possible retirement
of such bonds and acquisition of authority projects at an
earlier date than originally contemplated, using for the purpose
either surplus funds of the borough or money appropriated in the
annual budget for the purpose.
Section 2. This act shall take effect immediately.
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