2017-2018 Regular Session SB 948 PN 1331 Bill Text (HTM)

PRINTER'S NO. 1331

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

948

Session of

2017

INTRODUCED BY HUTCHINSON, EICHELBERGER, McGARRIGLE, BLAKE AND

SCHWANK, NOVEMBER 15, 2017

REFERRED TO LOCAL GOVERNMENT, NOVEMBER 15, 2017

AN ACT

Amending the act of June 24, 1931 (P.L.1206, No.331), entitled

"An act concerning townships of the first class; amending,

revising, consolidating, and changing the law relating

thereto," further providing for suits and property.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1501 of the act of June 24, 1931

(P.L.1206, No.331), known as The First Class Township Code, is

amended to read:

Section 1501. Suits; Property.--Townships of the first class

may--

I. Sue and be sued.

II. 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

township: Provided, That no real estate owned by the township

shall be sold for a consideration in excess of one thousand five

hundred dollars 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 township. 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 the board of township commissioners 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 board of township commissioners 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 board of township commissioners may establish a

minimum bid based on the fair market value of the real property.

Except as otherwise hereinafter provided in the case of

personal property of an estimated fair market value of less than

[one thousand dollars] two thousand dollars, no township

personal property shall be disposed of, by sale or otherwise,

except upon approval of the board of township commissioners, by

ordinance or resolution. In cases where the board of township

commissioners shall approve a sale of such property, it shall

estimate the fair market value of the entire lot to be disposed

of. If the board of township commissioners shall estimate the

fair market value to be [one thousand dollars] two thousand

dollars or more, the entire lot shall be advertised for sale

once, in at least one newspaper of general circulation in the

township, 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,

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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

the board of township commissioners. In the event that shipping

costs are incurred, they shall be paid by the high bidder. A

township that has complied with the advertising requirements of

this clause may provide additional public notice of the sale by

bids or public auction in any manner deemed appropriate by the

board of township commissioners. The advertisement for

electronic auction sales authorized in this clause shall include

the Internet address or means of accessing the electronic

auction and the date, time and duration of the electronic

auction. The board of township commissioners may reject any bids

received if the bids are believed to be less than the fair

market value of the property. The board of township

commissioners 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] two thousand dollars and the approval of

the board of township commissioners shall not be required for

any individual sale that shall be made in conformity to such

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procedure.

The provisions of this clause shall not be mandatory where

township property is to be traded in or exchanged for new

township property.

The provisions of this clause shall not prohibit the sale or

exchange of township property to public utilities.

The provisions of this clause requiring advertising for bids

or sale at public auction and sale to the highest bidder shall

not apply where township real or personal property is to be sold

to a county, city, borough, town, township, institution

district, school district, volunteer fire company, volunteer

ambulance service or volunteer rescue squad located within the

township, or authority as defined in 53 Pa.C.S. § 5602 (relating

to definitions), or to a nonprofit corporation engaged in

community industrial, commercial or affordable housing

development or reuse or where real property is to be sold to a

person for his exclusive use in an industrial development

program or where real property is to be sold to a nonprofit

corporation organized as a public library, or where real

property is to be sold to a nonprofit medical service

corporation as authorized by clause LXXII of section 1502, or

where real property is to be sold to a nonprofit housing

corporation as authorized by clause LXXIII of section 1502. When

real property is to be sold to a nonprofit corporation organized

as a public library or to a nonprofit medical service

corporation or to a nonprofit housing corporation the board of

township commissioners may elect to accept such nominal

consideration for such sale as it shall deem appropriate. Real

property sold pursuant to this clause to a volunteer fire

company, volunteer ambulance service or volunteer rescue squad,

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nonprofit medical service corporation or to a nonprofit 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

township.

Any officer who sells and each officer who votes in favor of

selling any township property, either real or personal, without

the provisions of this section having been complied with, shall

be subject to surcharge in the amount of any loss sustained by

the township by reason of such sale.

The exemption granted by this clause to nonprofit

corporations engaged in community, industrial, commercial or

affordable housing development or reuse shall not apply to

property owned and operated by the township or subcontracted or

operated on the behalf of the township in order to conduct

existing governmental functions.

Section 2. This act shall take effect in 60 days.

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