Determination of nonviability

Act 47 of 1987, § 431.1, under MUNICIPALITIES FINANCIAL RECOVERY ACT.

Act 47 of 1987, § 431.1

Section 431.1. Determination of nonviability.

(a) General rule.--Upon recommendation of a coordinator appointed under Chapter 2 or a receiver appointed under Chapter 7, the secretary shall consider whether all of the following conditions have been met in determining that a municipality is nonviable:

(1) The municipality is unable to function as a general purpose unit of government to provide essential services to its residents and property owners.

(2) The municipality has experienced such deteriorated economic conditions and a collapse of its tax base that all reasonable efforts to restore economic viability have failed.

(3) Efforts to merge or consolidate the municipality with a neighboring municipality are unachievable or will not result in viability.

(b) Notice and recommendation.--If the secretary determines that a municipality is nonviable under all of the conditions provided in subsection (a), the secretary shall provide notice to the governing body of the municipality of the secretary's determination and recommend that the municipality be disincorporated under this subchapter.

(431.1 added Oct. 31, 2014, P.L.2983, No.199)