Bill > HB509

This bill amends the Municipalities Financial Recovery Act to modify the process by which a receiver can sell, lease, or transfer assets of a financially distressed municipality or authority. Specifically, the bill clarifies the approval process required from neighboring municipalities that have service agreements or previously received water or sewer services from the distressed municipality. Under the new provisions, municipal approval must be granted through a formal resolution adopted at a public meeting by a majority vote of the governing body. The resolution must be transmitted to the distressed municipality and receiver within 48 hours of the vote. This changes the previous requirement, which simply stated that 75% of governing bodies must approve the asset disposition. The bill aims to provide more specific guidelines for the asset transfer process in municipalities under receivership, ensuring a clear and transparent approval mechanism. The changes will take effect 60 days after the bill's enactment.