An Act amending the act of July 10, 1987 (P.L.246, No.47), known as the Municipalities Financial Recovery Act, in receivership in municipalities, further providing for powers, duties and prohibited actions.

HB 509 amends Pennsylvania's Municipalities Financial Recovery Act to require that financially distressed municipalities under receivership must obtain approval from 75% of other municipalities with service agreements or whose residents previously used their water or sewer services before selling, leasing, or disposing of assets. This approval must be a public resolution passed by a majority vote of the other municipality's governing body and communicated to the distressed municipality and receiver within 48 hours. The bill directly affects the asset disposal process for financially distressed municipalities and the municipalities that rely on their water or sewer services.