53 Pa. Stat. § 11701.706

Current through Pa Acts 2024-53, 2024-56 through 2024-92
Section 11701.706 - Powers, duties and prohibited actions
(a)Powers and duties.--Notwithstanding any other provision of law, the receiver shall have the following powers and duties:
(1) To require the distressed municipality or authority to take actions necessary to implement the recovery plan under section 703.
(2) To modify the recovery plan as necessary to achieve financial stability of the distressed municipality and authorities in accordance with section 703.
(3) To require the distressed municipality or authority to negotiate intergovernmental cooperation agreements between the distressed municipality and other political subdivisions in order to eliminate and avoid deficits, maintain sound budgetary practices and avoid interruption of municipal services.
(4) To submit quarterly reports to the governing body and, if applicable, the chief executive officer of the distressed municipality and to the department. The reports shall be posted on a publicly accessible Internet website maintained by the distressed municipality.
(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.
(6) To approve, disapprove, modify, reject, terminate or renegotiate contracts and agreements with the distressed municipality or authority, except to the extent prohibited by the Constitutions of the United States and Pennsylvania.
(7) To direct the distressed municipality or authority to take any other action to implement the recovery plan.
(8) To attend executive sessions of the governing body of the distressed municipality or authority and make reports to the public on implementation of the recovery plan.
(9) To file a municipal debt adjustment action under the Bankruptcy Code (11 U.S.C. § 101 et seq.) and to act on the municipality's behalf in the proceeding. The power under this paragraph shall only be exercised upon the written authorization of the secretary. The filing of a municipal debt adjustment action under this paragraph and any plan of the receiver accepted by the Federal court shall be considered a modification of the recovery plan, except that the modification shall not be subject to judicial review under section 709. A recovery plan submitted to and approved by the Federal court under a Federal municipal debt adjustment action may include Federal remedies not otherwise available under this chapter.
(10) To meet and consult with the advisory committee under section 711.
(11) To employ financial or legal experts deemed necessary to develop and implement the recovery plan. Notwithstanding any law to the contrary, the employment of such experts shall not be subject to contractual competitive bidding procedures.
(12) To make a recommendation to the secretary that the municipality be disincorporated in accordance with Chapter 4.
(b)Authorization prohibited.--Neither this chapter nor the recovery plan shall be interpreted to authorize the receiver to do any of the following:
(1) Unilaterally levy taxes.
(2) Unilaterally abrogate, alter or otherwise interfere with a lien, charge, covenant or relative priority that is:
(i) held by a holder of a debt obligation of a distressed municipality; and
(ii) granted by the contract, law, rule or regulation governing the debt obligation.
(3) Unilaterally impair or modify existing bonds, notes, municipal securities or other lawful contractual or legal obligations of the distressed municipality or authority.
(4) Authorize the use of the proceeds of the sale, lease, conveyance, assignment or other use or disposition of the assets of the distressed municipality or authority in a manner contrary to section 707.

53 P.S. § 11701.706

1987, July 10, P.L. 246, No. 47, § 706, 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].