Laws & Legislation

Fiscal Code Bill Passes with Late Amendment - Permit Extension
An 11th hour amendment on July 3, 2010 to SB 1042 (Act 46-2010), the fiscal code bill which accompanies the budget, includes language extending permits granted from government agencies. The amendment is intended to extend permit deadlines where development has not proceeded due to the sagging economy.

There is confusion over the extent, interpretation, and ramification of provisions found in this amendment. We are awaiting guidance from the Center for Local Government Services in the Department of Community and Economic Development (DCED) which is expected shortly. In the meantime, we’ve highlighted some provisions below and referenced relevant portions of this act. We ask that you have your solicitor review this for any potential impact it may have on your authority either directly or indirectly (through municipalities you serve).

The amendment delineates specific areas as follows:
Approval: Section 1602-1 (Definitions). …any government agency approval, agreement, permit, including a building permit or construction permit, or other authorization or decision: (1) allowing a development or construction project to proceed; or (2) relating to or affecting development, granted pursuant to a statute, regulation or ordinance adopted by a municipality, including . . . (33 laws that this act applies to are listed under this definition).

Extension Period: Section 1602-1 (Definitions). The period beginning after December 31, 2008 and ending before July 2, 2013.

Government Agency: Section 1602-1 (Definitions). The Commonwealth, a political subdivision or an agency, department, authority, commission or board of the Commonwealth or a political subdivision. The term includes regional commissions, boards or instrumentalities with the authority to issue approvals.

Automatic Suspension: Section 1603-1(A). The expiration date of an approval by a government agency that is granted for or in effect during the extension period, whether obtained before or after the beginning of the extension period, shall be automatically suspended during the extension period.

Change in Law: Section 1604-1(A). A law, regulation or policy enacted, adopted or modified by a government agency during the extension period shall not have the effect of prohibiting or limiting an existing approval during the extension period.

Agency Verification: Section 1605-1(A). The holder or recipient of an approval may seek written verification from the issuing government agency for . . . existence of . . . expiration date for a valid approval . . . The government agency shall respond in writing within 30 days.

Failure to seek verification: Section 1605-1(C). The failure of the holder of an approval to seek verification from a government agency shall not be grounds for termination, revocation or other invalidation of an approval.

Sewer and Water Systems: Section 1606-1(B). If an approval is based upon the connection to a sanitary sewer system or water distribution system, the application of the extension period as it relates to capacity shall be contingent upon the availability of sufficient capacity of the system to accommodate the development that is the subject of the extended approval. If sufficient capacity is unavailable at the time it is required to proceed with development under the approval, priority with regard to further distribution or allocation of capacity shall be established by the date on which the approval was obtained. Priority relating to distribution of additional capacity shall be allocated in order of the granting of the original approval for the connection.

Fee: Section 1606-1(C). A government agency which issued an approval may charge a fee to extend the approval that may be no more than 25% of the original application fee. In no event may the fee be more than $5000.

Notice: Section 1607-1. Within 30 days of the effective date of this section, each affected government agency shall publish notice of applicability of the extension period to approvals granted by the government agency under this article in the Pennsylvania Bulletin.

Miscellaneous: Section 1608-1(B)(1-2). During the extension period, a government agency shall retain the authority to do all of the following: (1) suspend or revoke an approval for noncompliance with a written condition of the approval. (2) enforce conditions of approvals granted under law prior to the extension period.

This new law also applies to state agencies, particularly DEP. Section 1602-1 (Definitions) under the term “APPROVAL” lists 33 different state Acts that apply to state agencies and local governments that this amendment impacts. Some of these include the MPC (Municipalities Planning Code), Act 537, Stormwater Management, Title 53: Municipalities Generally, 3rd Class City Code, 1st and 2nd Class Township Codes, the Borough Code, and the State Highway Law.

State agencies are developing their own interpretation of the impact to their particular laws and programs and we expect to see these in the near future also.

Section 1607-1 refers to a notice placed in the PA Bulletin by all affected government agencies. Due to the confusion and uncertainty of this section, PMAA and the other local government associations worked with the Center for Local Government Services and our respective solicitors to have the state place a “blanket notice” on behalf of all local government entities that the new law might affect. That notice appeared in the PA Bulletin on Saturday, July 31, 2010. Therefore, the need for any individual “notice” is not necessary.

You may also want to check with your incorporating municipalities and municipalities in your service area to query their reaction to this law and any impacts they expect. Particularly, you may want information on the status of their building permits and how they relate to Section 1606-1(B) Sewer and Water Systems.

Permit extension language in Act 46-2010.

Laws
Listed below are some of the laws that impact municipal authorities. Click on the link for the full text of each law.

Municipality Authorities Act – pdf
[Note: section on Tapping Fees is found in Section 5607(d) (24) –(33)].

Additional Tapping Fees Information & Resources:

Tapping Fees Overview (based on latest amendments in the law, Act 57-2003)- pdf

Sample Calculations (based on latest amendments in the law, Act 57-2003)- pdf

Qs & As – pdf

Tapping Fees Resolution – pdf

Act 3-2008 (Right-to-Know Law) - pdf

Additional Right-to-Know Law Information & Resources:

Right-to-Know Law (Open Records Act) Overview of Changes – pdf

PMAA’s sample Right-to-Know Law policy