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
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 706(a)(5) of the act of July 10, 1987
(P.L.246, No.47), known as the Municipalities Financial Recovery
Act, is amended to read:
Section 706. Powers, duties and prohibited actions.
(a) Powers and duties.--Notwithstanding any other provision
of law, the receiver shall have the following powers and duties:
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23 (5) To require the distressed municipality or authority
to cause the sale, lease, conveyance, assignment or other use
or disposition of the distressed municipality's or
authority's assets in accordance with section 707. If the
sale, lease, conveyance, assignment or other use or
disposition under this paragraph relates to a water or
wastewater system, the receiver shall contact the
Pennsylvania Public Utility Commission, and the Pennsylvania
Public Utility Commission shall complete an analysis and
submit the analysis to the receiver and municipality within
90 days after the contact. If the analysis determines that
the sale, lease, conveyance, assignment or other use or
disposition would result in a 25% increase in the monthly
average residential ratepayers bill, the receiver may not
proceed with the sale, lease, conveyance, assignment or other
use or disposition.
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Section 2. This act shall take effect in 60 days.
20250HB0510PN0492 - 2 -
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