Section 11701.302 - Grant, loan and contract procedure(a)General provisions.--A financially distressed municipality or the coordinator may apply to the secretary for a grant or loan subsequent to the adoption of a plan by a municipality pursuant to Chapter 2. In cases where the plan finally adopted has been formulated by the chief executive officer or governing body, the chief executive officer or a person designated by the governing body may apply to the secretary for a grant or loan. The department may contract for plan coordinators' salaries from the fund.(b)Immediate emergencies.--In cases where a municipality has been declared distressed but prior to final adoption of a plan, the municipality or the coordinator appointed may apply to the department for an expedited loan or grant to immediately assist the distressed municipality if either of the following conditions exists: (1) The applicant verifies that he believes the municipality is in imminent danger of insolvency.(2) The applicant verifies that he believes there is a clear and present danger to the health and safety of residents of the municipality.(c)Approval.--(1) Upon receipt of an application under subsection (a), the secretary shall set a date for a hearing to be held not sooner than ten days nor later than 30 days from the date of receipt of the application. At the hearing the secretary shall receive evidence which sets forth the necessity for the moneys requested. The hearing shall be conducted at an acceptable location within the municipality to accommodate all interested parties. If satisfied that sufficient evidence exists to warrant a grant or loan, the secretary shall approve the application and order the department to distribute moneys requested subject to the limitations set forth in section 303(c).(2) Upon receipt of an application under subsection (b), the secretary shall review all data immediately available and shall determine whether emergency funds are warranted. If warranted, the secretary shall approve the application and order the department to distribute moneys requested. The secretary or the applicant may request a hearing to provide additional evidence of emergency need, but if requested, the hearing shall be held not later than 15 days from the date the application is received. Either determination is appealable under Title 2 of the Pennsylvania Consolidated Statutes (relating to administrative law and procedure).
1987, July 10, P.L. 246, No. 47, § 302, effective in 60 days. Amended 1992, June 30, P.L. 336, No. 69, § 4, imd. effective.