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§ 11701.702. Receivership

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 53 P.S. Municipal and Quasi-Municipal CorporationsEffective: December 30, 2014

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 53 P.S. Municipal and Quasi-Municipal Corporations
Part I. General Municipal Law
Chapter 30E. Municipalities Financial Recovery Act (Refs & Annos)
Chapter 7. Receivership in Municipalities (Refs & Annos)
Effective: December 30, 2014
53 P.S. § 11701.702
§ 11701.702. Receivership
Currentness
(a) Receiver.--Following the issuance of a declaration of fiscal emergency under section 602(b),1 the Governor may direct the secretary to file a petition in Commonwealth Court to appoint the individual named in the petition as a receiver for the distressed municipality. The court shall have no authority to appoint anyone other than the individual named in the petition as the receiver.
(b) Service and notice.--
(1) The secretary shall serve the petition upon:
(i) the governing body of the distressed municipality;
(ii) the chief executive officer of the distressed municipality; and
(iii) the governing body of each authority.
(2) The secretary must publish notice of the filing of the petition once in a newspaper of general circulation.
(c) Hearing.--Upon notification of the Governor of the failure of the distressed municipality to adopt a valid ordinance under section 607,2 Commonwealth Court shall conduct a hearing within 15 days on the petition.
(d) Determination.--No later than 60 days following the filing of a petition under this section, the court shall issue an order under subsection (e) if it finds by a preponderance of the evidence that all of the following apply:
(1) Thirty days have passed since the declaration of a fiscal emergency.
(2) There has been a failure by:
(i) the governing body of the distressed municipality to adopt an ordinance under section 607;
(ii) the governing body of the distressed municipality to implement an ordinance under section 607;
(iii) an elected or appointed official of the distressed municipality or authority to strictly comply with an order issued by the Governor under section 604;3 or
(iv) (Reserved).
(3) A fiscal emergency under section 602(a) continues to exist.
(e) Order.--An order issued under this subsection shall:
(1) set forth the findings under subsection (d);
(2) grant the petition and declare the distressed municipality to be in receivership;
(3) appoint the individual named in the petition to be the receiver for a period not to exceed two years, subject to extension under section 710(b);4
(4) direct the receiver to develop a recovery plan within 30 days under section 7035 and submit it to the court, the secretary, the governing body and, if applicable, the chief executive officer of the distressed municipality; and
(5) require and empower the receiver to implement the emergency action plan developed by the secretary under section 602 until a recovery plan developed by the receiver is approved by the court under section 703.
(f) Additional actions.--
(1) The Governor may direct the secretary to file a petition in Commonwealth Court to appoint an individual named in the petition as a receiver for the distressed municipality if the distressed municipality fails to comply with or has amended the ordinance without the approval of the secretary under section 607(d)(3) or (4).
(2) The court shall conduct a hearing on the petition under paragraph (1) within 15 days of the filing of the petition.
(3) No later than 60 days following the filing of the petition under paragraph (1), the court shall issue an order under subsection (e) if it finds by a preponderance of the evidence that the distressed municipality has failed to comply with section 607(d)(3) or (4).

Credits

1987, July 10, P.L. 246, No. 47, § 702, added 2011, Oct. 20, P.L. 318, No. 79, § 2, imd. effective. Amended 2014, Oct. 31, P.L. 2983, No. 199, § 30, effective in 60 days [Dec. 30, 2014].

Footnotes

1
53 P.S. § 11701.602.
2
53 P.S. § 11701.607.
3
53 P.S. § 11701.604.
4
53 P.S. § 11701.710.
5
53 P.S. § 11701.703.
53 P.S. § 11701.702, PA ST 53 P.S. § 11701.702
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document