PRINTER'S NO. 1345 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.1196 Session of 2025 INTRODUCED BY ZIMMERMAN, KRUPA, MOUL AND GILLEN, APRIL 15, 2025 REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 15, 2025 AN ACT Amending Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, in municipal authorities, further providing for method of incorporation, for municipalities withdrawing from and joining in joint authorities, for amendment of articles and for governing body. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Sections 5603 and 5604 of Title 53 of the Pennsylvania Consolidated Statutes are amended by adding subsections to read: § 5603. Method of incorporation. * * * (g) Notification of county.--After an authority has received the certificate of incorporation from the Secretary of the Commonwealth under subsection (e), the authority shall notify the county or counties of the incorporating municipalities within 10 days to prepare for municipal elections. § 5604. Municipalities withdrawing from and joining in joint authorities. * * * 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 (f) Notification of county.-- (1) After a municipality receives a certificate of joinder from the Secretary of the Commonwealth under subsection (e), the municipality shall notify the county in which it is located within 10 days in order to prepare for municipal elections. (2) After a municipality receives a certificate of withdrawal from the Secretary of the Commonwealth under subsection (e), the municipality shall notify the county that the municipality's elected board members of the authority will be abolished on the date specified in the certificate of withdrawal. Section 2. Sections 5605(a)(4) and 5610(a), (b), (c), (d) and (f) of Title 53 are amended to read: § 5605. Amendment of articles. (a) Purpose.--An authority may amend its articles for the following reasons: * * * [(4) To increase or decrease the number of members of the board of the authority, to reapportion the representation on the board of the authority and to revise the terms of office of members, all in a manner consistent with the provisions of section 5610 (relating to governing body). ] * * * § 5610. Governing body. (a) Board.--Except as set forth in subsection (a.1), the powers of each authority shall be exercised by a board composed as follows: (1) (i) If the authority is incorporated by one municipality, the board shall consist of [ a number of] 20250HB1196PN1345 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 five members[, not less than five, as enumerated in the articles of incorporation ]. The governing body of the municipality shall appoint the members of the board, whose terms of office shall commence on the effective date of their appointment[ . One member shall serve for one year, one for two years, one for three years, one for four years and one for five years commencing with the first Monday in January next succeeding the date of incorporation or amendment. If there are more than five members of the board, their terms shall be staggered in a similar manner for terms of one to five years from the first Monday in January next succeeding. ] until the first Monday in January following a municipal election occurring more than 90 days after the later of the incorporation of the authority or the effective date of this subparagraph. (ii) Thereafter, whenever a vacancy [ has occurred by reason of the expiration of the term of any member ] occurs, the governing body of the authority shall appoint a member of the board [ for a term of five years from the date of expiration of the prior term to succeed the member whose term has expired. ] who meets the residency requirements of the vacancy for a term until the first Monday of January next succeeding the election at which the officers are to be elected to fulfill the remainder of the term. (2) (i) If the authority is incorporated by two or more municipalities, the board shall consist of a number of members at least equal to the number of municipalities incorporating the authority, but in no event less than 20250HB1196PN1345 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 five. [When one or more additional municipalities join an existing authority, each of the joining municipalities shall have similar membership on the board as the municipalities then members of the authority and the joining municipalities may determine by appropriate resolutions.] Three board members shall be at-large members from the entire service area of the authority. Each municipality in the authority shall have one board member from the municipality. One at-large board member shall be in each of the three election classes mentioned in subsection (b)(7)(ii)(B). The members of the board of a joint authority shall each be appointed by the governing body of the incorporating or joining municipality he represents, and their terms of office shall commence on the effective date of their appointment[. One member shall serve for one year, one for two years, one for three years, one for four years and one for five years from the first Monday in January next succeeding the date of incorporation, amendment or joinder, and if there are more than five members of the board, their terms shall be staggered in a similar manner for terms of from one to five years commencing with the first Monday in January next succeeding. ] and continue until the first Monday in January following a municipal election occurring more than 90 days after the later of the incorporation of the authority or the effective date of this subparagraph. (ii) Thereafter, whenever a vacancy [ has occurred by reason of the expiration of the term of any member ] occurs, the governing body of the [ municipality which has 20250HB1196PN1345 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 the power of appointment ] authority shall appoint a member of the board [ for a term of five years from the date of expiration of the prior term.] who meets the residency requirements of the vacancy until the first Monday of January next succeeding the election at which the officers are to be elected to fulfill the remainder of the term. * * * (b) [Residency.] Election of board members .-- (1) Except as provided for in subsection (c), the members of the board, each of whom shall be at least 18 years of age and be a taxpayer in, maintain a business in or be a citizen of the municipality by which he is appointed or be a taxpayer in, maintain a business in or be a citizen of a municipality into which one or more of the projects of the authority extends or is to extend or to which one or more projects has been or is to be leased, shall be appointed, their terms fixed and staggered and vacancies filled pursuant to the articles of incorporation or the application of membership under section 5604 (relating to municipalities withdrawing from and joining in joint authorities). Where two or more municipalities are members of the authority, they shall be apportioned pursuant to the articles of incorporation or the application for membership under section 5604. Except for special service districts located in whole or in part in cities of the first class or as provided in paragraph (2), a majority of an authority's board members shall be citizens residing in the incorporating municipality or incorporating municipality or incorporating municipalities of the authority. 20250HB1196PN1345 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (2) Each member of the board of a business improvement district authority that was established by a borough pursuant to the former act of May 2, 1945 (P.L.382, No.164), known as the Municipality Authorities Act of 1945, on or before the effective date of this paragraph shall be at least 18 years of age and be a taxpayer in, maintain a business in or be a citizen of the borough by which that member is appointed. (3) Elections for authority board members shall be at the time and place designated by law for the holding of municipal elections. (4) Certificates of election of all authority board members shall be filed with the authority and preserved among the records of the authority for a period of six years. (5) (i) Except as provided under subparagraph (ii), an individual elected to the authority board shall serve for the term for which the individual was elected. (ii) If a vacancy in office occurs, the vacancy shall be filled. (6) If an elected official of the authority is required to give a bond for the faithful performance of the elected official's duties, the authority may pay the premium for the bond. (7) (i) The board members of an authority shall be elected at the appropriate municipal election and take office on the first Monday of January succeeding the election. (ii) The following shall apply: (A) Except as provided under clause (B) and at the election under subparagraph (i), if an authority is incorporated by one municipality, the following 20250HB1196PN1345 - 6 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 board members shall be elected to coincide with the number of board members appointed to authorities existing on January 1, 2026, under paragraph (8): (I) Two board members of the authority shall be elected for terms of two years each. (II) Two board members of the authority shall be elected for terms of four years each. (III) One board member of the authority shall be elected for a term of six years. (B) If an authority is incorporated by two or more municipalities, the board members shall be divided equally into three classes: (I) Each board member of Class A shall be elected for a term of two years. (II) Each board member of Class B shall be elected for a term of four years. (III) Each board member of Class C shall be elected for a term of six years. (8) Biennially, at the municipal election, a sufficient number of board members of an authority shall be elected to fill the places of board members whose terms shall, under this part, expire on the first Monday of January following the election. Members elected under this paragraph shall serve for a term of six years from the first Monday of January succeeding the municipal election. (9) If an additional municipality joins the authority, the election of that municipality's board members shall be in a manner as not to interfere with the terms of those previously elected. (10) If a vacancy is created in the office of a board 20250HB1196PN1345 - 7 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 member of the authority, the vacancy may be filled by nomination made by the committee as is authorized by the rules of the party to make nominations in the event of vacancies on the party ticket. (11) A board member of an authority may not at the same time hold any other elective office. A board member of an authority may hold an appointed position within the board member's home municipality as long as the appointed position is not prohibited under this title or any other statute. (c) Grade crossings.--If the authority is created for the purpose of eliminating grade crossings, the members of the board, the majority of whom shall be at least 18 years of age and be citizens of the municipality by which they are [appointed] elected or of a municipality into which one or more of the projects of the authority extends or is to extend or to which one or more of the projects has been or is to be leased, shall be [appointed] elected, their terms fixed and staggered and vacancies filled pursuant to the articles of incorporation or the application of membership under section 5604. Where two or more municipalities are members of the authority, they shall be apportioned pursuant to the articles of incorporation or the application for membership under section 5604. (d) Successor.--Members shall hold office until their successors have been [ appointed] elected and may succeed themselves and, except members of the boards of authorities organized or created by a school district, shall receive such salaries as may be determined by the governing body of the municipality at the time of incorporation. Thereafter, the governing body of the authority may determine the members' salaries if a salary was originally determined by the governing 20250HB1196PN1345 - 8 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 body of the incorporating municipality , but no salaries shall be increased or diminished by a governing body during the term for which the member shall have been [ appointed] elected. Members of the board of any authority organized or created by a school district shall receive no compensation for their services. [ A member may be removed for cause by the court of common pleas of the county in which the authority is located after having been provided with a copy of the charges against him for at least ten days and after having been provided a full hearing by the court.] If a vacancy shall occur by reason of the death, disqualification, resignation or removal of a member, the municipal authorities shall appoint a successor to fill his unexpired term. In joint authorities such vacancies shall be filled by the municipal authorities of the municipality in the representation of which the vacancy occurs. If any municipality withdraws from a joint authority, the term of any member appointed from the municipality shall immediately terminate. * * * [(f) Removal.--Unless excused by the board, a member of a board who fails to attend three consecutive meetings of the board may be removed by the appointing municipality up to 60 days after the date of the third meeting of the board which the member failed to attend. ] * * * Section 3. This act shall take effect January 1, 2026, or immediately, whichever is later. 20250HB1196PN1345 - 9 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26