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Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 11701.255.1 § 11701.255.1. Termination of status

Current as of January 01, 2026 | Updated by Findlaw Staff

(a) Public hearing.--Within 30 days of the date for the filing of a final report containing a finding as provided in section 255(a)(1),  1 the secretary shall conduct a public hearing, advertised with notices given as provided in section 203.  2

(b) Determination.--Within 90 days of the conclusion of the public hearing, the secretary shall issue an administrative determination of whether the termination of status is appropriate and reasons for the determination.  The determination shall include findings addressing each of the factors in subsection (c) and shall consider information provided in the report of the coordinator and any additional information received during the public hearing.

(c) Factors to consider.--If the secretary concludes that substantial evidence supports an affirmative determination for each of the following factors, the determination shall be that distressed status will be rescinded.  The secretary shall consider whether:

(1) Operational deficits of the municipality have been eliminated and the financial condition of the municipality, as evidenced by audited financial statements prepared in accordance with generally accepted accounting principles and projections of future revenues and expenditures, demonstrates a reasonable probability of future balanced budgets absent participation in this act.

(2) Obligations issued to finance the municipality's debt have been retired, reduced or reissued in a manner that has adequately refinanced outstanding principle and interest and has permitted timely debt service and reasonable probability of continued timely debt service absent participation in this act.

(3) The municipality has negotiated and resolved all claims or judgments that would have placed the municipality in imminent jeopardy of financial default.

(4) The reasonably projected revenues of the municipality are sufficient to fund ongoing necessary expenditures, including pension and debt obligations and the continuation or negotiation of collective bargaining agreements and the provision of municipal services.  Projections of revenues shall include any anticipated tax or fee increases to fund ongoing expenditures for the first five years after a termination of distressed status.

(d) Appeal.--The determination of the secretary may be appealed pursuant to 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial review of Commonwealth agency action) by any of the following:

(1) The governing body of the municipality.

(2) A creditor of the municipality.

(3) Ten percent of the number of electors of the municipality that voted at the last municipal election.

(4) Ten percent of the beneficiaries of a pension fund of the municipality.

(5) Ten percent of the employees of the municipality.

(6) Trustees or paying agents of a municipal bond indenture.

(7) Elected auditors, elected controllers or appointed independent auditors.

(8) A trustee of the Municipal Pension Fund.

(9) The chief executive officer of any city.

(10) A labor organization that is a party to a collective bargaining agreement with the municipality.

(e) Suspension of subsequent proceedings.--The coordinator and secretary shall not take any action under sections 256 and 257   3 until a final decision is issued for any appeal under subsection (d) or (f).  The duration of distressed status of the municipality shall be extended subject to subsequent action in accordance with section 257.

(f) Action of the secretary preserved.--Except as otherwise provided in chapters 6 and 7,  4 the secretary may, following a duly advertised public hearing with notices given as provided in section 203, at any time issue a determination as provided in this section upon written recommendation of the coordinator setting forth a discussion of each of the factors specified in subsection (c).  The determination may be appealed in accordance with subsection (d).

1  53 P.S. § 11701.255.
2  53 P.S. § 11701.203.
3  53 P.S. §§ 11701.256, 11701.257.
4  53 P.S. §§ 11701.601 et seq., 11701.701 et seq.
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Cite this article: FindLaw.com - Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 11701.255.1 § 11701.255.1. Termination of status - last updated January 01, 2026 | https://codes.findlaw.com/pa/title-53-ps-municipal-and-quasimunicipal-corporations/pa-st-sect-53-11701-255-1/

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