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Bill > HB510
PA HB510
PA HB510In receivership in municipalities, further providing for powers, duties and prohibited actions.
summary
Introduced
02/05/2025
02/05/2025
In Committee
02/05/2025
02/05/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Amending the act of July 10, 1987 (P.L.246, No.47), entitled "An act empowering the Department of Community and Economic Development to assist municipalities in avoiding financial distress; declare certain municipalities as financially distressed; providing for the restructuring of debt of financially distressed municipalities; limiting the ability of financially distressed municipalities to obtain government funding; authorizing municipalities to participate in Federal debt adjustment actions and bankruptcy actions under certain circumstances; authorizing certain taxes; and providing for the disincorporation of municipalities and the establishment of unincorporated service districts," in receivership in municipalities, further providing for powers, duties and prohibited actions.
AI Summary
This bill amends the Municipalities Financial Recovery Act, specifically addressing the powers and duties of a receiver in a financially distressed municipality. The bill focuses on the receiver's ability to sell, lease, or transfer municipal assets, with a new provision specifically related to water or wastewater systems. Under the proposed change, if a receiver wants to sell or transfer a water or wastewater system, they must first consult the Pennsylvania Public Utility Commission (PUC), which will conduct a 90-day analysis to determine the potential impact on residential ratepayers. If the PUC's analysis finds that the proposed transaction would result in a 25% increase in the average monthly residential water bill, the receiver is prohibited from proceeding with the sale or transfer. This provision aims to protect residents from significant utility rate increases during municipal financial restructuring, providing an additional layer of oversight to prevent potentially burdensome rate hikes. The bill will take effect 60 days after its passage.
Committee Categories
Government Affairs
Sponsors (12)
Carol Kazeem (D)*,
Joe Ciresi (D),
Dan Deasy (D),
Elizabeth Fiedler (D),
José Giral (D),
Roni Green (D),
Carol Hill-Evans (D),
Malcolm Kenyatta (D),
Tarik Khan (D),
Jenn O'Mara (D),
Danielle Otten (D),
Ben Sanchez (D),
Last Action
Referred to Local Government (on 02/05/2025)
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