53 Pa. Stat. § 11701.221

Current through P.A. Acts 2023-32
Section 11701.221 - Designation
(a)Appointment.--No later than 30 days following a determination of municipal financial distress under section 203, the secretary shall appoint a coordinator who shall prepare a plan addressing the municipality's financial problems.
(b)Qualifications.--The coordinator may be an employee of the department, furnished with additional staff or consultant assistance, if needed, or may be a consultant or consulting firm. No elected or appointed official or employee of the municipality shall be eligible for serving as coordinator. The coordinator shall be experienced in municipal administration and finance.
(c)Compensation.--The department shall be responsible for compensating the coordinator appointed by the secretary for reasonable salary and expenses. Notwithstanding any law to the contrary, the appointment of a plan coordinator shall not be subject to contractual competitive bidding procedures.
(d)Duties.--The coordinator shall:
(1) Present, at a public meeting within 45 days of the execution of the contract between the department and the coordinator, a list of the coordinator's preliminary findings, as to the financial condition of the municipality. The list of findings shall include, but is not limited to, a quantification of all operating deficits for the current fiscal year and a projection of revenues and operating expenses for the next three fiscal years, all outstanding debt obligations, the cost and term of all outstanding contracts and other relevant information.
(2) Solicit, not later than the date of the coordinator's presentation described in paragraph (1), comments in writing relating to the issues associated with the municipality's distress from such persons and entities who:
(i) have participated in the early intervention process;
(ii) have provided consultation on behalf of the municipality relating to the issues associated with its distress; or
(iii) are elected officials or employees of the municipality or labor organizations representing employees of the municipality.
(3) Consider all comments submitted within 30 days of the coordinator's presentation described in paragraph (1) before preparing and administering a plan designed to relieve the financial distress of the municipality which the coordinator has been appointed to serve.
(e)Powers.--The coordinator may:
(1) Apply for grants and loans pursuant to Chapter 3, as the coordinator deems necessary.
(2) Investigate the tax-exempt status of any property within a distressed municipality and advise the governing body of the municipality to appeal the assessment or exempt status of property within the distressed municipality.
(3) Solicit and negotiate payments in lieu of taxes from institutions of public charity and other tax-exempt property owners in the municipality and recommend action by the municipality.
(f)Prohibitions.--The coordinator may not:
(1) Engage in any conduct prohibited by the act of July 19, 1957 (P.L. 1017, No. 451), known as the State Adverse Interest Act, or 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure).
(2) Receive any compensation, fee or commission:
(i) From the distressed municipality unless specifically authorized by the coordinator's contract.
(ii) In accordance with any sale or lease of property or other financial transaction involving the distressed municipality or an authority directly or indirectly controlled by the distressed municipality.
(g)Prior appointment.--A person who has previously contracted with the department or the distressed municipality as a coordinator, receiver, financial consultant, legal counsel or through a contract under the Early Intervention Program under Chapter 1-A may not be deemed ineligible to be appointed as a coordinator under this section solely on the basis of that contract.

53 P.S. § 11701.221

1987, July 10, P.L. 246, No. 47, § 221, effective in 60 days. Amended 2014, Oct. 31, P.L. 2983, No. 199, § 9, effective in 60 days [Dec. 30, 2014]; 2022, April 19, P.L. 64, No. 19, § 1, effective in 60 days [June 20, 2022].