HB 510 — An Act amending the act of July 10, 1987 (P.L.246, No.47), known as the Municipalities Financial Recovery Act, in receivership in municipalities, further providing for powers, duties and prohibited actions.

PRINTER'S NO.   492

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 510
                                                Session of
                                                  2025

     INTRODUCED BY KAZEEM, GIRAL, SANCHEZ, FIEDLER, KHAN, HILL-EVANS,
        CIRESI, OTTEN, KENYATTA, DEASY, O'MARA AND GREEN,
        FEBRUARY 5, 2025

     REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 5, 2025


                                     AN ACT
 1   Amending the act of July 10, 1987 (P.L.246, No.47), entitled "An
 2      act empowering the Department of Community and Economic
 3      Development to assist municipalities in avoiding financial
 4      distress; declare certain municipalities as financially
 5      distressed; providing for the restructuring of debt of
 6      financially distressed municipalities; limiting the ability
 7      of financially distressed municipalities to obtain government
 8      funding; authorizing municipalities to participate in Federal
 9      debt adjustment actions and bankruptcy actions under certain
10      circumstances; authorizing certain taxes; and providing for
11      the disincorporation of municipalities and the establishment
12      of unincorporated service districts," in receivership in
13      municipalities, further providing for powers, duties and
14      prohibited actions.
15      The General Assembly of the Commonwealth of Pennsylvania
16   hereby enacts as follows:
17      Section 1.     Section 706(a)(5) of the act of July 10, 1987
18   (P.L.246, No.47), known as the Municipalities Financial Recovery
19   Act, is amended to read:
20   Section 706.     Powers, duties and prohibited actions.
21      (a)   Powers and duties.--Notwithstanding any other provision
22   of law, the receiver shall have the following powers and duties:
23            * * *
 1        (5)   To require the distressed municipality or authority
 2    to cause the sale, lease, conveyance, assignment or other use
 3    or disposition of the distressed municipality's or
 4    authority's assets in accordance with section 707. If the
 5    sale, lease, conveyance, assignment or other use or
 6    disposition under this paragraph relates to a water or
 7    wastewater system, the receiver shall contact the
 8    Pennsylvania Public Utility Commission, and the Pennsylvania
 9    Public Utility Commission shall complete an analysis and
10    submit the analysis to the receiver and municipality within
11    90 days after the contact. If the analysis determines that
12    the sale, lease, conveyance, assignment or other use or
13    disposition would result in a 25% increase in the monthly
14    average residential ratepayers bill, the receiver may not
15    proceed with the sale, lease, conveyance, assignment or other
16    use or disposition.
17        * * *
18    Section 2.    This act shall take effect in 60 days.




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