On October 16, 2024, Pennsylvania Governor Josh Shapiro approved Senate Bill No. 765, making it Act 110 of 2024 (“Act”). The Act will invoke four (4) specific changes to Pennsylvania’s Borough Code, making it consistent with the First Class Township Code.
In his latest Municipal Minute, KingSpry’s Municipal Law Practice Chair, Michael A. Gaul, Esq., summarizes the Act and details its impact on Pennsylvania borough code.
Background
Sponsored by Senator Carolyn T. Comitta and supported by the Pennsylvania State Association of Boroughs, Senate Bill No. 765 seeks to provide greater consistency among municipalities and offer clarity on several sections of the Borough Code.
After being introduced by the Pennsylvania Senate and House during the 2021-2022 legislative sessions, Senate Bill No. 765 gained support from both chambers of Pennsylvania’s General Assembly and was enacted as Act 110 of 2024 on October 16, 2024.
Changes to the Borough Code
The Act amends the Borough Code, Title 8 of the Pennsylvania Consolidated Statutes, as follows:
- Surcharge by Auditors.
The Act amends Section 1059.3 by adding a provision that “[n]o elected or appointed official of a borough may be surcharged if the official acted in good faith reliance on a written, nonconfidential opinion of the solicitor of the borough or on an opinion of the borough solicitor publicly stated at an open meeting of the borough and recorded in the official minutes of the meeting.”
This protection shall not apply, however, if a solicitor’s opinion has been rendered under duress or if the parties seeking and rendering the solicitor’s opinion have colluded to purposefully commit a violation of law. For purposes of this new provision, the term “solicitor” includes a special counsel appointed by the borough for a specific matter.
- Borough Manager.
The Act amends Section 1141 to permit a borough to appoint an individual, partnership, limited partnership, association, or professional corporation as the borough manager. It also permits the borough manager to provide service(s) under an employment agreement or professional services agreement. Previously, only an individual could be appointed and employment as the borough manager.
A provision is also added to Section 1141 to clarify that a borough manager and any officer and/or employee directly providing services pursuant to a professional services agreement are considered “public officials” for purposes of 65 Pa.C.S. § 1103 (relating to restricted activities).
- Organization of the Civil Service Commission.
The Act amends Section 1174 to permit the Civil Service Commission to meet and organize within thirty (30) days of the first Monday of each even-numbered year. Previously, the Borough Code required the Commission to organize on the first Monday in January in even-numbered years.
- Preparation of Budget.
Finally, the Act amends Section 1307 by removing the requirement that a preliminary budget be prepared at least thirty (30) days prior to the adoption of the borough’s budget. Under the Act, a preliminary budget must simply be prepared “prior to” the adoption of the borough’s budget.
Effective Date
The above-listed amendments to the Borough Code will take effect on December 15, 2024.
