PRINTER'S NO. 1223
No. 1075 Session of 1989
INTRODUCED BY WOZNIAK, TRICH, SERAFINI AND MELIO, APRIL 10, 1989
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 10, 1989
AN ACT 1 Relating to and regulating local government boundary changes; 2 and making repeals. 3 TABLE OF CONTENTS 4 Chapter 1. General Provisions 5 Section 101. Short title. 6 Section 102. Definitions. 7 Section 103. Interpretation. 8 Section 104. Applicability. 9 Chapter 2. Boundary Change Commission 10 Section 201. Boundary Change Commission. 11 Section 202. Conduct of business. 12 Section 203. Powers and duties. 13 Section 204. Criteria for granting approval of detachments of 14 territory. 15 Section 205. Findings of effect of detachment. 16 Section 206. Commission panels. 17 Section 207. Costs of commission. 18 Chapter 3. Annexation
1 Subchapter A. General Provisions 2 Section 301. Procedure for annexation. 3 Subchapter B. Petition to Commission 4 Section 311. Petition to commission. 5 Section 312. Notice of annexation proposal. 6 Section 313. Study and report of petition for annexation. 7 Section 314. Annexation of property of annexing municipality or 8 municipal authority created solely thereby. 9 Subchapter C. Action by Governing Bodies 10 Section 321. Transfer or exchange of territory by agreement of 11 adjacent municipalities. 12 Section 322. Content of ordinances. 13 Section 323. Responsibilities of annexing municipality 14 following annexation. 15 Section 324. Appeals. 16 Subchapter D. Initiative and Referendum 17 Section 331. Annexation by initiative and referendum. 18 Section 332. Distribution of annexed territory among wards. 19 Section 333. Adjustment of indebtedness, assets and liabilities 20 following annexation. 21 Section 334. Judicial adjustment on failure of agreement. 22 Section 335. Proceedings on judicial adjustment. 23 Section 336. Exceptions to report. 24 Section 337. Compensation and expenses of commissioners. 25 Section 338. Annexing municipality located in two or more 26 counties. 27 Section 339. Liquidation of indebtedness. 28 Section 340. Collection of taxes levied prior to annexation. 29 Section 341. Authorized expenditures. 30 Section 342. Crossing county lines. 19890H1075B1223 - 2 -
1 Section 343. Election districts and officers. 2 Chapter 4. Consolidation or Merger 3 Section 401. Procedure for consolidation or merger. 4 Section 402. Joint agreement of governing bodies. 5 Section 403. Initiative of electors. 6 Section 404. Initiation by petition of the commission. 7 Section 405. Conduct of referenda. 8 Section 406. Consolidation or merger agreement. 9 Section 407. Effectuation of consolidation or merger. 10 Section 408. Effect of transition on employees of the 11 consolidated or merged municipality. 12 Section 409. Procedures. 13 Chapter 5. Incorporation 14 Section 501. Procedure for incorporation. 15 Section 502. Petition for incorporation. 16 Section 503. Incorporation petition. 17 Section 504. Study and report on petition for incorporation. 18 Section 505. Incorporation election. 19 Section 506. Effectuation of incorporation. 20 Section 507. Assets, liabilities and indebtedness where entire 21 municipality incorporated as new municipality. 22 Section 508. Adjustment of assets, liabilities and indebtedness 23 where part of a municipality becomes an 24 incorporated municipality. 25 Section 509. Judicial adjustment on failure of agreement. 26 Section 510. Proceedings on judicial adjustment. 27 Section 511. Compensation and expenses of commissioners. 28 Section 512. Incorporating municipality located in two or more 29 counties. 30 Section 513. Liquidation of indebtedness. 19890H1075B1223 - 3 -
1 Section 514. Collection of taxes levied prior to incorporation. 2 Section 515. Crossing county lines. 3 Section 516. Election districts and officers. 4 Chapter 6. Repeals and Effective Date 5 Section 601. Repeals. 6 Section 602. Application to procedures previously initiated. 7 Section 603. Effective date. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 CHAPTER 1 11 GENERAL PROVISIONS 12 Section 101. Short title. 13 This act shall be known and may be cited as the Municipal 14 Boundary Change Act. 15 Section 102. Definitions. 16 The following words and phrases when used in this act shall 17 have the meanings given to them in this section unless the 18 context clearly indicates otherwise: 19 "Annexation." Any change in municipal boundaries resulting 20 from the transfer of territory, comprising part of any 21 municipality, to any other municipality. 22 "Annexed municipality." Any municipality from which 23 territory shall be proposed to be annexed or attached to an 24 annexing municipality under Chapter 2. The annexed municipality 25 may be, but need not necessarily be, located in the same county 26 as the annexing municipality. 27 "Annexing municipality." Any municipality to which territory 28 shall be or shall be proposed to be annexed or attached. The 29 annexing municipality may be, but need not necessarily be, 30 located in the same county as the annexed municipality. 19890H1075B1223 - 4 -
1 "Commission." The Boundary Change Commission. 2 "Consolidated or merged municipality." A municipal entity 3 resulting from successful consolidation or merger proceedings 4 under Chapter 3. 5 "Consolidation or merger." The combination of two or more 6 municipalities into one municipality. 7 "Contiguous territory." A territory or area of which a 8 portion abuts the boundary of another municipality, including 9 territory or area separated from the exact boundary of another 10 municipality by a street, road, railroad or highway or by a 11 river or other natural or artificial stream of water. 12 "Department." The Department of Community Affairs of the 13 Commonwealth. 14 "Detached municipality." A municipality which would decrease 15 in total territory or area as a result of annexation, 16 incorporation or any other means by which territory or area can 17 be transferred. 18 "Detaching municipality." A municipality which would 19 increase in total territory or area as a result of annexation, 20 incorporation or any other means by which territory or area can 21 be transferred. 22 "Detachment." The transfer of territory or area by 23 annexation, incorporation or other means from one municipality 24 to another municipality. 25 "Election officials." The county boards of election, except 26 in a city of the first class where "election officials" means 27 the city board of elections. 28 "Existing municipality." A municipality from which territory 29 or area is proposed to be annexed. 30 "Incorporation." The creation of a new municipality from all 19890H1075B1223 - 5 -
1 or part of the territory or area of an existing municipality or 2 municipalities. 3 "Initiative." As defined in sections 321 and 403, initiative 4 shall mean the filing with applicable election officials of a 5 petition containing a proposal for a referendum to be placed on 6 the ballot of the next election. The petition shall be: 7 (1) Filed not later than the 13th Tuesday prior to the 8 next election in which it will appear on the ballot. 9 (2) Signed by voters comprising 5% of the persons voting 10 for the Office of Governor in the last gubernatorial general 11 election in the municipality where the proposal will appear 12 on the ballot. 13 (3) Placed on the ballot by election officials in a 14 manner fairly representing the content of the petition for 15 decision by referendum at said election. 16 (4) Submitted not more than once in five years. 17 "Municipality." Any city, borough, incorporated town, 18 township of the first class, township of the second class, home 19 rule municipality or any general purpose unit of government 20 hereinafter created by the General Assembly. The term shall not 21 include any county. 22 "Referendum." Placement of a question inserted on the 23 ballot, by initiative or otherwise, by a majority vote of the 24 electors voting thereon. 25 Section 103. Interpretation. 26 (a) Successive changes not affected.--Nothing in this act 27 shall preclude, restrict or limit successive changes in 28 boundaries and territorial limits of any municipality that would 29 affect any specific territory. 30 (b) Municipalities in more than one county.--When any 19890H1075B1223 - 6 -
1 boundary change shall be made under the provisions of this act 2 which shall result in a municipality which lies partly in one 3 county and partly in one or more other counties, the territory 4 or area within such municipality shall, for county and 5 institution district purposes, be and remain a part of the 6 county in which such territory is physically located. 7 (c) School districts not affected.--Nothing in this act, and 8 no action taken pursuant to this act, shall affect or apply to 9 any school district or any school district boundary. Nothing in 10 this act shall preclude further action from being taken under 11 the provisions of the act of March 10, 1949 (P.L.30, No.14), 12 known as the Public School Code of 1949, or other applicable 13 provisions of the law to change school district boundaries or 14 locations. 15 Section 104. Applicability. 16 This act establishes the procedure for and shall apply to the 17 change of boundaries of all municipalities. 18 CHAPTER 2 19 BOUNDARY CHANGE COMMISSION 20 Section 201. Boundary Change Commission. 21 (a) Composition.--The Boundary Change Commission is created 22 and shall be composed of 11 members, three of whom are to be 23 appointed by the Governor, two of whom are to be appointed by 24 the President pro tempore of the Senate, two members appointed 25 by the Minority Leader of the Senate, two members appointed by 26 the Speaker of the House of Representatives and two members 27 appointed by the Minority Leader of the House of 28 Representatives. The members of the commission appointed by each 29 of the appointing powers shall not be of the same political 30 party. Commission members shall not be members of the General 19890H1075B1223 - 7 -
1 Assembly. The chairman of the commission shall be elected by a 2 majority vote of the commission members. 3 (b) Terms.--The commission members shall be appointed as to 4 provide for staggered terms to begin on January 1, 1990, and 5 each shall serve until his successor is qualified. Initially, 6 the three members appointed by the Governor shall be appointed 7 for a term of four years. The two members appointed by the 8 President pro tempore of the Senate and the Speaker of the House 9 of Representatives respectively shall be appointed for a term of 10 three years. The two members appointed by the Senate and House 11 Minority Leaders respectively shall be appointed for a term of 12 two years. Thereafter, terms of each member of the commission 13 shall be for a period of four years. 14 (c) Vacancies.--Vacancies shall be filled by the respective 15 appointing power. The person appointed to fill such vacancy 16 shall serve only for the remainder of the vacated term. 17 Section 202. Conduct of business. 18 The commission shall meet quarterly in the city of 19 Harrisburg, except as required for the conduct of public 20 hearings within the territory or area proposed for boundary 21 change actions. The commission shall promulgate rules and 22 regulations and prescribe procedures necessary or desirable in 23 carrying out the intent and purpose of this act, including forms 24 of petitions for municipal boundary changes and the documents, 25 maps and supporting statements deemed to be necessary, and 26 establish rules for public hearings and for the submission of 27 supplementary documents and statements. The commission is 28 subject to the meeting requirements of the act of July 3, 1986 29 (P.L.388, No.84), known as the Sunshine Act. The commission 30 shall keep a record of all proceedings and shall annually, by 19890H1075B1223 - 8 -
1 July 31, make a written report of its business and activities to 2 the Governor, the General Assembly, the Governor's Office of 3 Policy Development or its successor, the Department of 4 Transportation, the Department of Community Affairs, the 5 Department of Education, the State Tax Equalization Board, the 6 Legislative Reapportionment Commission and the court of common 7 pleas and the board of county commissioners of the county or 8 counties in which municipalities affected are located. 9 Section 203. Powers and duties. 10 The powers and duties of the commission are as follows: 11 (1) To make studies of proposed local boundary changes 12 that are referred to it by ordinance of the governing bodies 13 of municipalities contemplating a procedure for boundary 14 change, or by a petition signed by at least 5% of the 15 registered electors of a municipality directly affected by 16 the proposed study and advise the municipalities thereon, or 17 on its own initiative. The governing body of any municipality 18 may at any time request the commission to make a study of any 19 proposal for boundary changes affecting the municipality. 20 Such request may also be made jointly by the governing bodies 21 of all the municipalities directly affected by such a 22 proposal. 23 (2) To undertake long-range studies of local boundary 24 problems in Pennsylvania. 25 (3) To set up a system of State and local reporting and 26 recording of local boundary changes, and of proposals 27 relating to local boundary changes. No boundary change shall 28 be considered final until official copies of all ordinances, 29 petitions and pertinent election returns and other official 30 documents relating to local boundary changes are deposited 19890H1075B1223 - 9 -
1 with the commission and the applicable court of common pleas. 2 (4) To set standards such as population, areawide 3 interests, homogeneity, and services which may be used as the 4 basis for recommending State and local action relating to 5 local boundary changes. 6 (5) To make studies of boundary change proposals, other 7 than those effected through the process of initiative and 8 referendum, which involve detachment of territory from a 9 municipality. 10 (6) To determine the precedence of simultaneous local 11 boundary change proceedings which affect the same territory. 12 (7) To receive recommendations for applicable boundary 13 changes from a financial plan adopted by a distressed 14 municipality pursuant to the act of July 10, 1987 (P.L.246, 15 No.47), known as the Financially Distressed Municipalities 16 Act. 17 Section 204. Criteria for granting approval of detachments of 18 territory. 19 (a) Consideration of criteria.--In determining whether a 20 proposed detachment of territory requiring its approval shall 21 receive such approval, the commission shall consider, but shall 22 not be limited to, the following: 23 (1) The topography and other physical characteristics of 24 the geographical area affected by the proposed detachment. 25 (2) The comprehensive plans that pertain to any 26 municipality or territory affected by the proposed 27 detachment. 28 (3) Service factors such as: 29 (i) The need for additional municipal services in 30 the territory proposed for detachment. 19890H1075B1223 - 10 -
1 (ii) The ability and willingness of any detaching 2 municipality to provide municipal services to any 3 affected territory and the time period within which the 4 residents of such territory shall receive such services. 5 (iii) The extent to which any affected municipality 6 or territory is interdependent for municipal services 7 with others that are affected by the proposed detachment. 8 (4) The ability of any detaching municipality to assume 9 a share of the existing indebtedness and to purchase public 10 property, as provided in sections 333 and 507. 11 (5) The extent to which there are mutual community 12 interests in the territory proposed for annexation and in the 13 annexing municipality. 14 (b) Mandatory denial.--If the only reason set forth in the 15 annexation petition is the demand or promise of extension of 16 municipal services and within a reasonable period of time, as 17 established by the commission, the existing municipality 18 provides such services, then the commission shall deny the 19 petition for annexation. 20 Section 205. Findings of effect of detachment. 21 If the commission shall determine that a proposed detachment 22 shall seriously impair the ability of the remaining portion of 23 the municipality from which territory is proposed for detachment 24 to provide public services to its residents, the commission 25 shall take one of the following actions: 26 (1) Direct that there be no further action on the 27 original incorporation or annexation petition and initiate a 28 referendum in the affected municipalities for incorporation 29 or consolidation of the entire area of the affected 30 municipalities. 19890H1075B1223 - 11 -
1 (2) Recommend approval of the original petition for 2 annexation or incorporation with agreement that, before 3 passage of the annexation ordinance or before submitting the 4 question of incorporation to the electors of the 5 municipalities or parts of municipalities affected, 6 provisions shall be made for the remaining portion of the 7 municipality from which territory is proposed to be detached 8 to be either consolidated with or annexed to another 9 contiguous municipality. 10 (3) Disapprove the original petition for detachment. 11 Section 206. Commission panels. 12 (a) Submission of proposed changes.--All proposed boundary 13 changes shall be submitted to the commission. Notice of each 14 proposal shall be forwarded to the chairman of the commission, 15 who may then administratively assign the proposal to a panel 16 composed of not more than seven and not less than three members 17 of the commission who are not residents of the municipalities 18 affected. 19 (b) Action by commission.--The commission panel so appointed 20 or the commission as a whole will have the right to hold 21 hearings, conduct investigations and solicit the advice of 22 experts, citizens and officials involved. The panel will be 23 entitled to call such citizens as are available and to hear from 24 those persons within the panel's discretion. 25 (c) Remuneration of members.--The members of the panel and 26 commission shall be paid $100 per diem and other actual expenses 27 incurred when actually engaged in the performance of their 28 duties. 29 (d) Employment of personnel.--The commission or panel may 30 employ the necessary administrative and clerical personnel or 19890H1075B1223 - 12 -
1 utilize available existing personnel from the department for the 2 conduct and Senate of Pennsylvania as they may of 3 investigations, hearings and determinations. Any salaried 4 persons who are loaned to the commission by the department will 5 not be paid additional compensation except for actual expenses 6 which are incurred while attending these functions, in which 7 case they will be reimbursed. 8 Section 207. Costs of commission. 9 The cost of the functions of the commission in each 10 individual matter referred to it shall be equitably assessed by 11 the commission which in turn shall, as soon as it is assigned, 12 meet with the municipal officials involved and such other 13 persons who may have been involved in the initiation of the 14 question, after which the commission shall determine and advise 15 them as to the assessment of costs that the municipalities will 16 be expected to pay. 17 CHAPTER 3 18 ANNEXATION 19 SUBCHAPTER A 20 GENERAL PROVISIONS 21 Section 301. Procedure for annexation. 22 Annexation of contiguous territory may be accomplished by one 23 of the following methods: 24 (1) Petition to the commission, approval by the 25 commission and adoption of an ordinance by the annexing 26 municipality. 27 (2) Action of the governing bodies of the municipalities 28 affected. 29 (3) Initiative and referendum. 30 SUBCHAPTER B 19890H1075B1223 - 13 -
1 PETITION TO COMMISSION 2 Section 311. Petition to commission. 3 (a) Initiation of action.--An annexation may be initiated by 4 a petition signed by electors comprising at least 50% of the 5 number of electors voting for the office of Governor in the last 6 gubernatorial general election within the territory proposed for 7 annexation, or by the freeholders who represent at least 50% of 8 the assessed valuation of real property within the territory 9 proposed for annexation, as certified by the board or boards of 10 county commissioners. The petition must be submitted to the 11 commission. A majority in interest of owners of undivided 12 interests in any piece of property shall be deemed and treated 13 as one person for the purpose of ascertaining the number of 14 freeholders. The petition shall be accompanied by a resolution 15 of intent to annex the territory in question from the governing 16 body of the municipality to which the territory is proposed to 17 be annexed. Once the circulation of a petition has begun, the 18 petition shall be submitted to the commission within seven 19 weeks. Failure to do so within that prescribed time limit will 20 invalidate such petition. Presentation of a receipt indicating 21 that the petition was mailed by registered or certified mail on 22 or before the deadline date shall be evidence of timely filing. 23 (b) Form and contents of petition.--The petition for 24 annexation to be submitted to the commission shall be in such 25 form and shall contain such information as the commission may 26 require. 27 (c) Contents of resolution.--The resolution of intent to 28 annex shall include the following information: 29 (1) A statement that the municipality is willing to 30 annex the territory described in the petition. 19890H1075B1223 - 14 -
1 (2) A statement setting forth the plans of the 2 municipality for extending to the territory proposed for 3 annexation the municipal services performed within the 4 annexing municipality at the time of annexation. 5 Specifically, such plans shall: 6 (i) Conform to the standards of service as 7 determined by the commission. 8 (ii) Provide for extending or improving such 9 services to the territory proposed for annexation on the 10 effective date of annexation on substantially the same 11 basis and in the same manner as such services are 12 provided within the rest of the annexing municipality 13 prior to annexation. 14 (iii) Provide for extension or improvement of such 15 services into the territory proposed for annexation, so 16 that when such services are extended or improved, persons 17 in the territory proposed for annexation will be able to 18 secure such services, according to the policies in effect 19 in the annexing municipality for extending such services 20 to individual persons, lots or subdivisions. 21 (iv) Set forth a proposed timetable which provides 22 for the extension or improvement of such services as soon 23 as possible following the effective date of annexation. 24 (v) Set forth a method under which the annexing 25 municipality plans to finance extension or improvement of 26 such services into the territory proposed for annexation. 27 (3) A statement specifying a place or places within any 28 annexing municipality affected by the proposed annexation 29 where copies of the petition and the resolution of intent can 30 be examined by interested individuals and public officials 19890H1075B1223 - 15 -
1 for a period of at least 30 days following submission of the 2 petition to the commission. 3 Section 312. Notice of annexation proposal. 4 Within ten days after receipt of the petition, the commission 5 shall notify by certified mail the governing bodies of each 6 municipality affected, including the commissioners of each 7 county in which territory proposed for annexation is located. 8 Section 313. Study and report of petition for annexation. 9 The commission shall make a study of the petition for 10 annexation and shall submit its recommendations, within six 11 months after receipt of the petition, to the governing bodies of 12 the municipalities affected and the board or boards of county 13 commissioners of the territory affected by the proposed 14 annexation and by public notice in a newspaper of general 15 circulation in the affected area or areas that the 16 recommendations are available to any person on written request. 17 If the commission approves the proposed annexation, the annexing 18 municipality may complete the annexation by the passage of an 19 ordinance. 20 Section 314. Annexation of property of annexing municipality or 21 municipal authority created solely thereby. 22 Any municipality may annex by ordinance any land contiguous 23 thereto and owned by the annexing municipality or by a municipal 24 authority created solely by the annexing municipality. No 25 petition from freeholders or residents of the annexed area shall 26 be necessary to initiate the annexation procedure. 27 SUBCHAPTER C 28 ACTION BY GOVERNING BODIES 29 Section 321. Transfer or exchange of territory by agreement of 30 adjacent municipalities. 19890H1075B1223 - 16 -
1 Whenever the governing bodies of two adjacent municipalities 2 shall agree that it is to the best interest of each municipality 3 or that the convenience of the inhabitants thereof would best be 4 served thereby, territory or area may be transferred from one of 5 such adjacent municipalities to the other, or territory or area 6 may be exchanged between such two adjacent municipalities, upon 7 enactment of an ordinance to that effect by each of the two 8 municipalities, and change in the boundaries and territorial 9 limits of the said municipalities shall be affected thereby. No 10 petition from freeholders or residents shall be necessary to 11 initiate such transfer or exchange. 12 Section 322. Content of ordinances. 13 Every ordinance providing for annexation pursuant to this act 14 shall set forth a description of the territory or area to be 15 annexed and shall contain or have attached thereto a plot 16 showing the courses and distances of the boundaries of the 17 annexing municipality before and after the proposed change in 18 the boundaries or territorial limits thereof. 19 Section 323. Responsibilities of annexing municipality 20 following annexation. 21 Within 30 days after final enactment of any ordinance 22 effecting an annexation pursuant to this act, the governing body 23 of the annexing municipality shall perform all of the following 24 acts: 25 (1) Assign a distinctive designation to the annexed 26 territory or area, for use in referring thereto. 27 (2) File with the court of common pleas of the county a 28 certified copy of the ordinance by which the change was 29 effected, together with a plot showing the courses and 30 distances of the boundaries of the annexing municipality 19890H1075B1223 - 17 -
1 before and after the change and clearly indicating the 2 designation, as mentioned in paragraph (1), by which the 3 annexed area is to be known. If the territory annexed and the 4 annexing municipality are located in different counties, such 5 documents and information shall be filed with the 6 prothonotary of each of the counties. The change in 7 boundaries shall take effect 30 days after the date on which 8 such documents are filed in the county in which the annexing 9 municipality or the larger portion of the territory of the 10 annexing municipality is located, unless: 11 (i) That date is within 90 days prior to any 12 general, municipal or primary election, in which case the 13 change shall take effect as of the day following the 14 election. 15 (ii) An appeal is taken before the end of such 30- 16 day period, in which case such appeal shall act as a 17 supersedeas and such change shall take effect immediately 18 upon final determination and approval of such ordinance 19 by the court of common pleas. 20 (3) Give notice to the county board of elections of the 21 filing with the court of common pleas of the documents 22 mentioned in paragraph (2). 23 (4) File with the commission, the Legislative 24 Reapportionment Commission, Governor's Office of Policy 25 Development or its successor, the State Tax Equalization 26 Board, the Department of Community Affairs, the Department of 27 Education, the Department of Transportation and the court of 28 common pleas and the board of county commissioners of the 29 county or counties in which the municipalities affected are 30 located a final report of the annexation. The final report 19890H1075B1223 - 18 -
1 shall set forth: 2 (i) The name of the annexing municipality. 3 (ii) The area of the annexed territory in acres. 4 (iii) The total assessed valuation of the annexed 5 territory. 6 (iv) The approximate population of the annexed 7 territory. 8 (v) The designation, as mentioned in paragraph (1), 9 by which the annexed area is to be known. 10 Section 324. Appeals. 11 Within 30 days after the date of filing of any ordinance 12 effecting an annexation pursuant to this act, any freeholder of 13 the annexing municipality or of the municipality within which 14 the proposed territory to be annexed is located may appeal from 15 the ordinance to the court of common pleas of the county in 16 which the annexing municipality or the greater portion of the 17 territory of the annexing municipality is located. This appeal 18 shall be the exclusive method of appeal. The appeal shall be 19 taken by petition to the court of common pleas of the county in 20 which the annexing municipality is located and, in the case of 21 any annexing municipality located in more than one county, to 22 the court of common pleas of the county in which the greater 23 portion of the territory of the annexing municipality is 24 located. The appeal shall act as a supersedeas. When an appeal 25 is taken, the court shall fix a day for the hearing and shall 26 give notice of the hearing to all parties interested, in such 27 manner as the court shall direct. After the hearing, the court 28 shall determine whether the proceedings are in conformity with 29 this act and shall make an order or decree dismissing the appeal 30 and approving the annexation or sustaining the appeal and 19890H1075B1223 - 19 -
1 dismissing the annexation. From any final order or decree, any 2 party in interest, aggrieved by the order or decree, may appeal 3 to the Commonwealth Court. Upon final determination and approval 4 of the ordinance by the court of common pleas or by the 5 Commonwealth Court, the annexation shall take effect 6 immediately. 7 SUBCHAPTER D 8 INITIATIVE AND REFERENDUM 9 Section 331. Annexation by initiative and referendum. 10 (a) General rule.--As an alternative to annexation by the 11 other procedures set forth in this act, annexation by initiative 12 and referendum, as governed by this section, may be effected in 13 any municipality without the approval of any governing body and 14 without enactment of any ordinance. 15 (b) Initiation of referendum.--The referendum shall be 16 initiated by: 17 (1) Filing with the county board of elections of the 18 county in which the territory proposed to be annexed is 19 located, on or before the 13th Tuesday before the next 20 primary, municipal or general election, a petition for 21 referendum signed by electors comprising 5% of the number of 22 electors voting for the office of Governor in the last 23 gubernatorial general election in the municipality within 24 which the proposed territory to be annexed is located. 25 (2) Filing with the county board of elections of the 26 county in which the annexing municipality, or the greater 27 portion of the territory thereof, is located, on or before 28 the 13th Tuesday before the next primary, municipal or 29 general election, a petition for referendum signed by 30 electors comprising 5% of the number of electors voting for 19890H1075B1223 - 20 -
1 the office of Governor in the last gubernatorial general 2 election in the annexing municipality. 3 (c) Contents of petition.--The petition and proceedings 4 therein shall be in the manner and subject to the provisions of 5 the election law which relate to the signing, filing and 6 adjudication of nomination petitions insofar as such provisions 7 are applicable, except that no referendum petition shall be 8 signed or circulated prior to the 20th Tuesday before the 9 election, nor later than the 13th Tuesday before the election. 10 (d) Review.--When the applicable election officials find 11 that the petition, as submitted, is in proper order, they shall 12 send copies of the initiative petition without the signatures to 13 the governing bodies of both the annexing municipality and the 14 municipality within which the proposed territory to be annexed 15 is located and to the commission. 16 (e) Ballot placement.--The applicable election official 17 shall place the proposal for such annexation on the ballot in 18 both the annexing municipality and the municipality within which 19 the proposed territory to be annexed is located in a manner 20 fairly representing the content of the petition for decision by 21 referendum at the next primary, municipal or general election, 22 occurring not less than the 13th Tuesday after the filing of 23 such petition. 24 (f) Election returns.--If there shall be a favorable vote in 25 such referendum in both the annexing municipality and the 26 municipality within which the proposed territory to be annexed 27 is located, the annexation shall become effective upon 28 certification by the county board of elections of the county or 29 counties involved in the vote. If the vote shall fail in either 30 the annexing municipality, the municipality in which the 19890H1075B1223 - 21 -
1 territory or area is to be annexed, or both, the question of 2 annexation described in the annexation proposal shall not be 3 voted on again for a period of five years. 4 Section 332. Distribution of annexed territory among wards. 5 (a) Municipalities where governing body members not elected 6 at large.--In the case of an annexing municipality with a 7 governing body not elected entirely at large, the governing body 8 of the annexing municipality shall, within 30 days after the 9 effective date of the annexation, petition the court of common 10 pleas of the county in which the annexed territory is located 11 requesting: 12 (1) The assignment of the annexed territory to one or 13 more designated wards of the annexing municipality. 14 (2) The distribution of the annexed territory among the 15 wards of the annexing municipality. 16 (3) The creation of one or more new wards out of the 17 annexed territory. 18 The court shall make the necessary decree which shall include 19 establishing or changing election districts to conform to new 20 ward lines and shall furnish a copy of the decree to the 21 governing body of the annexing municipality, the county board of 22 elections of the county in which the annexing municipality is 23 located, the county board of elections of the county in which 24 the annexed territory is located, the school district in which 25 the ward or wards are located, the Secretary of the 26 Commonwealth, the Secretary of Community Affairs and the 27 Legislative Reapportionment Committee. 28 (b) New wards created.--In case one or more new wards is 29 created in the annexing municipality, the decree of the court 30 shall state the number by which each new ward is to be 19890H1075B1223 - 22 -
1 designated and shall contain a plan and schedule for the 2 appointment or election of the first members of the governing 3 body of the annexing municipality from each of the new wards so 4 that, either immediately or after a transitional period, the 5 election and tenure of the members of the governing body from 6 the new odd-numbered wards and the new even-numbered wards, as 7 the case may be, shall conform to those of the existing odd- 8 numbered wards and even-numbered wards in the annexing 9 municipality. 10 Section 333. Adjustment of indebtedness, assets and liabilities 11 following annexation. 12 (a) Adjustment.--Following any annexation of territory, the 13 governing body of the annexing municipality and the governing 14 body of the municipality from which the territory was annexed 15 shall make a proper adjustment and apportionment between them of 16 all indebtedness, assets and liabilities of the annexed 17 municipality at the time of the annexation. The adjustment and 18 apportionment shall provide that the annexing municipality and 19 the municipality from which the territory or area was annexed 20 shall be entitled to share in a division of the assets, 21 liabilities and indebtedness in the proportion that the assessed 22 valuation, as determined by the county board for the assessment 23 and revision of taxes, of the annexed portion of the 24 municipality from which the territory or area was annexed bears 25 to the assessed valuation of the entire municipality from which 26 the territory was annexed immediately prior to the annexation. 27 (b) Assumption by annexing municipality.--Where indebtedness 28 was incurred by the municipality from which the territory or 29 area was annexed for an improvement located wholly within the 30 limits of the territory or area annexed, that indebtedness shall 19890H1075B1223 - 23 -
1 be assumed by the annexing municipality and where any part of an 2 improvement is located within the limits of the annexed 3 territory or area, the part of the indebtedness representing 4 that part of the improvement shall be assumed by the annexing 5 municipality; and the adjustment and apportionment of any 6 remaining indebtedness of the municipality from which the 7 territory or area was annexed shall be made as provided in this 8 subsection. 9 (c) Written document.--The adjustment and apportionment of 10 assets, liabilities and indebtedness shall be reduced to 11 writing, shall be executed and acknowledged by the clerk or 12 secretary of the annexing municipality and shall be filed with 13 the prothonotary of the county or counties in which any 14 municipality affected is located and a copy shall be filed with 15 the department. 16 Section 324. Judicial adjustment on failure of agreement. 17 When the governing bodies of the municipalities affected 18 cannot, within six months after the annexation becomes 19 effective, arrive at the adjustment and apportionment of 20 indebtedness, assets and liabilities, as required by section 21 333, the governing body, a citizen, or a property owner of any 22 of the municipalities affected may appeal to the court of common 23 pleas of the county in which the annexing municipality, or the 24 greater portion of its territory or area, is located. The court 25 shall then appoint three disinterested commissioners who shall 26 be residents and taxpayers of the county and who shall not be 27 residents or owners of real estate in the municipalities 28 affected. Those commissioners, after hearing, notice of which 29 shall be given to the municipalities affected as directed by the 30 court, shall proceed to make the apportionment and adjustment 19890H1075B1223 - 24 -
1 and shall report to the court, stating the amount, if any, that 2 shall be due and payable from one municipality affected to 3 another, as well as the amount of indebtedness, if any, that 4 shall be assumed by the municipality affected, or both. 5 Section 335. Proceedings on judicial adjustment. 6 The commissioners appointed under the terms of section 334 7 shall give the affected municipalities at least five days' 8 notice of the filing of their report. Unless exceptions to the 9 report are filed within 30 days after the date when it was 10 filed, the report shall be confirmed absolutely by the court. 11 Any sum awarded by the report to any municipality shall be a 12 legal and valid claim in its favor against the other 13 municipality. Any real or personal property awarded to any 14 municipality shall become its property. Any claim of 15 indebtedness charged against a municipality may be collected 16 from that municipality by its creditors. 17 Section 336. Exceptions to report. 18 In case exceptions are filed to the report of the 19 commissioners appointed pursuant to section 334, the court shall 20 dispose of the same, taking testimony if deemed advisable. The 21 court shall enter its decree confirming or modifying the report 22 of the commissioners, as to the court appears just and proper. 23 The decision of the court shall be final unless an appeal is 24 taken to the Commonwealth Court as provided by law. 25 Section 337. Compensation and expenses of commissioners. 26 The court-appointed commissioners shall be allowed such 27 compensation and expenses for their services as the court shall 28 fix. The costs of the proceedings, including the compensation 29 and expenses of the commissioners, shall be apportioned among 30 the municipalities involved as the court deems proper and 19890H1075B1223 - 25 -
1 equitable. 2 Section 338. Annexing municipality located in two or more 3 counties. 4 In case the territory or area of an annexing municipality is 5 located in two or more counties, the court of common pleas of 6 the county in which the greater portion of the territory or area 7 of the annexing municipality is located shall have exclusive 8 jurisdiction over the proceedings to determine the cost of 9 certain improvements in the annexed territory or area and to 10 adjust and apportion the indebtedness among the municipalities 11 affected. 12 Section 339. Liquidation of indebtedness. 13 (a) Court orders.--The court shall make all necessary orders 14 for the collection by any municipality affected and payment by 15 it to any other municipality affected of its share of any 16 indebtedness apportioned to it. The order may direct that the 17 municipality against which the indebtedness was apportioned levy 18 and collect special taxes for one year or pay by annual 19 installments over a stated period of time, the amount needed to 20 liquidate the indebtedness. 21 (b) Interest-bearing notes.--If acceptable to the 22 municipality to which money is owed, the other municipality 23 shall have the power to issue and deliver interest-bearing notes 24 in liquidation of the indebtedness. 25 Section 340. Collection of taxes levied prior to annexation. 26 All taxes assessed and levied against property in the annexed 27 territory or area prior to the effective date of the annexation 28 shall be paid to the municipality from which the territory or 29 area has been annexed and the collection and enforcement shall 30 be as though the annexation had not taken place. 19890H1075B1223 - 26 -
1 Section 341. Authorized expenditures. 2 Municipalities initiating annexations under the provisions of 3 this act are authorized to make expenditures for surveys 4 required to describe the property under consideration or for any 5 other purpose necessary to plan for the study or annexation of 6 territory or area adjacent to the municipality. 7 Section 342. Crossing county lines. 8 When the municipalities affected are located in different 9 counties, the county board of elections and the court of common 10 pleas in the county where the annexing municipality is located 11 shall furnish all information relating to an annexation to their 12 counterparts in the other county or counties concerned. 13 Section 343. Election districts and officers. 14 Except as provided in section 332, all election districts in 15 the annexed territory shall remain as constituted before the 16 annexation and shall become election districts of the annexing 17 municipality until changed in accordance with the act of June 3, 18 1937 (P.L.1333, No.320), known as the Pennsylvania Election 19 Code. All election district officers shall continue in office 20 until the expiration of their terms, unless the office is 21 vacated. 22 CHAPTER 4 23 CONSOLIDATION OR MERGER 24 Section 401. Procedure for consolidation or merger. 25 (a) Authority.--Two or more municipalities may be 26 consolidated or merged as provided in this chapter into a single 27 municipality, whether situated in the same county or in two or 28 more different counties, if each of the municipalities is 29 contiguous to at least one of the other consolidating or merging 30 municipalities, and if together the municipalities would form a 19890H1075B1223 - 27 -
1 consolidated or merged municipality. 2 (b) Method.--Consolidation or merger may be commenced by one 3 of the following methods: 4 (1) Joint agreement of the governing bodies of the 5 municipalities proposed for consolidation or merger as 6 approved by ordinance. 7 (2) Initiative of electors. 8 (3) The commission. 9 Section 402. Joint agreement of governing bodies. 10 (a) General rule.--The governing bodies of each municipality 11 to be consolidated or merged shall enter into a joint agreement 12 under the official seal of each municipality to consolidate or 13 merge into one municipality. 14 (b) Elements.--The joint agreement shall set forth: 15 (1) The names of each municipality that is party to the 16 agreement. 17 (2) The name and the territorial boundaries of the 18 consolidated or merged municipality. 19 (3) The type and class of the consolidated or merged 20 municipality. 21 (4) Whether the consolidated or merged municipality 22 shall be governed solely by the code and other general laws 23 applicable to the kind and class of the consolidated or 24 merged municipality or whether it is to be governed by a home 25 rule charter or an optional plan of government having 26 previously been adopted by one of the consolidating or 27 merging municipalities. 28 (5) The number of wards, if any, into which the 29 consolidated or merged municipality is to be divided for the 30 purpose of electing all or some of the members of the 19890H1075B1223 - 28 -
1 municipal governing body. 2 (6) Terms for: 3 (i) The disposition of existing assets of each 4 municipality. 5 (ii) The liquidation of existing indebtedness of 6 each municipality. 7 (iii) The assumption, assignment or disposition of 8 existing liabilities of each municipality, either 9 jointly, separately or in certain defined proportions, by 10 separate rates of taxation within each of the constituent 11 municipalities until consolidation or merger becomes 12 effective pursuant to section 407. 13 (iv) The implementation of a legally consistent 14 uniform tax system throughout the consolidated or merged 15 municipality which provides revenue necessary to fund 16 required municipal services. 17 (7) The governmental organization of the consolidated or 18 merged municipality insofar as it concerns elected officers. 19 There shall be a transitional plan and schedule applicable to 20 elected officers. The transitional plan shall provide for the 21 abolition of the elected officers of each component 22 municipality and the termination of the terms of the office 23 of the elected officials of each municipality and for the 24 election of the first officers of the consolidated or merged 25 municipality so that election and tenure shall conform to 26 those in other municipalities of the same kind and class in 27 this Commonwealth with properly staggered terms where those 28 are required or desired. 29 (8) The common administration and enforcement of 30 ordinances enforced uniformly within the consolidated or 19890H1075B1223 - 29 -
1 merged municipality. 2 Section 403. Initiative of electors. 3 (a) General rule.--In order for consolidation or merger 4 proceedings to be initiated by petition of electors, petitions 5 containing signatures of at least 5% of the electors voting for 6 the office of Governor in the last gubernatorial general 7 election in each municipality proposed to be consolidated or 8 merged shall be filed with the county board of elections of the 9 county in which the municipality, or the greater portion of the 10 territory or area thereof, is located. 11 (b) Notice to governing bodies affected.--When the 12 applicable election officials find that a petition is in proper 13 order, they shall send copies of the initiative petition without 14 the signatures thereon to the governing bodies of each of the 15 municipalities affected by the consolidation or merger. 16 (c) Contents.--A petition shall set forth: 17 (1) The name of the municipality from which the signers 18 of the petition were obtained. 19 (2) The names of the municipalities proposed to be 20 consolidated or merged. 21 (3) The name of the consolidated or merged municipality. 22 (4) The type and class of the consolidated or merged 23 municipality. 24 (5) Whether the consolidated or merged municipality 25 shall be governed solely by the code and other general laws 26 applicable to the kind and class of the consolidated or 27 merged municipality, or whether it is to be governed by a 28 home rule charter or an optional plan of government having 29 previously been adopted by one of the consolidated or merged 30 municipalities. 19890H1075B1223 - 30 -
1 (6) The number of wards, if any, into which the 2 consolidated or merged municipality will be divided for the 3 purpose of electing all or some of the members of the 4 municipal governing body. 5 (d) Time limitation.--The consolidation or merger petition 6 shall be filed with the election officials not later than the 7 13th Tuesday prior to the next primary, municipal or general 8 election. The petition and proceedings therein shall be in the 9 manner and subject to the provisions of the election laws which 10 related to the signing, filing and adjudication of nomination 11 petitions insofar as such provisions are applicable except that 12 no referendum petition shall be signed or circulated prior to 13 the 20th Tuesday before the election, nor later than the 13th 14 Tuesday before the election. 15 Section 404. Initiation by petition to commission. 16 (a) General rule.--Petitions may be submitted to the 17 commission. The petition shall contain signatures of at least 5% 18 of the electors voting for the office of Governor in the last 19 gubernatorial general election in each municipality requesting, 20 consolidating or merging. 21 (b) Content.--Every petition shall set forth: 22 (1) The name of the municipality from which the signers 23 of the petition were obtained. 24 (2) The names of the municipalities proposed to be 25 consolidated or merged. 26 (3) The name of the consolidated or merged municipality. 27 (4) The type and class of the consolidated or merged 28 municipality. 29 (5) Whether the consolidated or merged municipality 30 shall be governed solely by the code and other general laws 19890H1075B1223 - 31 -
1 applicable to the kind and class of the consolidated or 2 merged municipality, or whether it is to be governed by a 3 home rule charter or an optional plan of government having 4 previously been adopted by one of the consolidated or merged 5 municipalities. 6 (6) The number of wards, if any, into which the 7 consolidated or merged municipality will be divided for the 8 purpose of electing some or all of the members of the 9 municipal governing body. 10 (c) Time limitations.--Once the circulation of a petition 11 has begun, the petition shall be submitted to the commission 12 within seven weeks. Failure to do so within the prescribed time 13 limit shall invalidate the petition. Presentation of a receipt 14 indicating that the petition was mailed by registered or 15 certified mail on or before the deadline date shall be evidence 16 of timely filing. 17 (d) Review by commission.--Whenever such petitions shall 18 have been received by the commission, the commission shall take 19 all necessary steps to place such referendum question before the 20 electors of the municipalities proposed to be so consolidated or 21 merged. Such steps may include: 22 (1) A study of the consolidation or merger proposal. 23 (2) Advising citizens and officials on any and all 24 matters pertaining thereto. 25 (3) Holding meetings or conferences in any of the 26 municipalities proposed to be consolidated or merged. 27 All studies, meetings and assistance by the commission shall be 28 completed within six months after receipt of the petitions 29 received from municipalities involved in a specific 30 consolidation or merger proposal. The completion date shall be 19890H1075B1223 - 32 -
1 attested by the chairman of the commission in a document to be 2 filed with the Secretary of the Commonwealth. 3 Section 405. Conduct of referenda. 4 (a) Referendum.--Following initiation of proceedings for 5 consolidation or merger by the procedures set forth in either 6 section 402, 403 or 404, the question of the consolidation or 7 merger shall be placed before the electors of each of the 8 municipalities proposed to be so consolidated or merged. A 9 referendum shall be held at the first primary, municipal or 10 general election held not less than the 13th Tuesday after any 11 of the following: 12 (1) The date of the general agreement entered into under 13 the provisions of section 402. 14 (2) The date of filing of the petition filed under the 15 provisions of section 403. 16 (3) The date of completion of the work of the commission 17 under the provisions of section 404. 18 (b) Approval.--The consolidation or merger shall not be 19 effective unless the referendum question is approved by a 20 majority of electors voting in each of the municipalities in 21 which the referendum is held. If in any one of the 22 municipalities in which the referendum is held a majority in 23 favor of such consolidation or merger does not result, the 24 referendum shall fail and the consolidation or merger shall not 25 take place. The question described in the merger or 26 consolidation proposal shall not be voted on again for a period 27 of five years. 28 (c) Further studies.--If the electors of two or more 29 contiguous municipalities proposed for consolidation or merger 30 shall approve the consolidation or merger, but one or more of 19890H1075B1223 - 33 -
1 the municipalities shall fail to approve, the commission may 2 make a study of the feasibility of consolidation or merger of 3 those municipalities approving the proposal and, in its 4 discretion may initiate a local referendum for the consolidation 5 or merger of such municipalities at the next primary, municipal 6 or general election but not less than the 13th Tuesday after the 7 commission has submitted its study to the local governing bodies 8 of the municipalities involved. 9 Section 406. Consolidation or merger agreement. 10 (a) Form.--Upon favorable action by the electorate on 11 consolidation or merger, in cases where consolidation or merger 12 was initiated other than by joint agreement of the governing 13 bodies under section 402, the governing bodies of the 14 municipalities to be consolidated or merged into a single 15 municipality shall meet within 60 days after the certification 16 of the favorable vote and shall make a consolidation or merger 17 agreement as follows: 18 (1) If the governing body, or part of the governing 19 body, of the consolidated or merged municipality is to be 20 elected on a ward basis, the agreement shall set forth the 21 boundaries and the ward designation, by number of each ward, 22 and the number of members of the municipal governing body to 23 be elected from each ward. 24 (2) The agreement shall set forth those terms for: 25 (i) The disposition of the existing assets of each 26 municipality. 27 (ii) The liquidation of the existing indebtedness of 28 each municipality. 29 (iii) The assumption, assignment and disposition of 30 the existing liabilities of each municipality, either 19890H1075B1223 - 34 -
1 jointly, separately or in certain defined proportions, by 2 separate rates of taxation within each of constituent 3 municipalities until consolidation or merger becomes 4 effective under section 407. 5 (3) The agreement shall set forth the governmental 6 organization of the consolidated or merged municipality, 7 insofar as it concerns elected officers, and shall contain a 8 transitional plan and schedule applicable to elected 9 officers. The agreement shall provide for the abolition of 10 elected offices and for the termination of the terms of 11 office of elected officers of each municipality being merged 12 or consolidated, and the election of the first officers of 13 the consolidated or merged municipality so that election and 14 tenure shall conform to those in other municipalities of the 15 same kind and class in the Commonwealth, with properly 16 staggered terms, where those are required or desired. 17 (4) The agreement shall provide for common 18 administration and enforcement of ordinances to be enforced 19 uniformly within the consolidated or merged municipality. 20 (5) The agreement shall also provide, consistent with 21 existing law, for the implementation of a uniform tax system 22 throughout the consolidated or merged municipality which 23 shall provide the revenues necessary to fund required 24 municipal services. 25 (b) Filing.--A copy of the consolidation or merger agreement 26 shall be filed with the commission, the Legislative 27 Reapportionment Commission, the Governor's Office of Policy 28 Development or its successor, the State Tax Equalization Board, 29 the Department of Community Affairs, the Department of 30 Education, the Department of Transportation, the court of common 19890H1075B1223 - 35 -
1 pleas and the board of county commissioners of the county or 2 counties in which municipalities affected are located. 3 Section 407. Effectuation of consolidation or merger. 4 (a) Election of officers.--Municipalities so consolidated or 5 merged shall continue to be governed as before consolidation or 6 merger until the first Monday of January following the municipal 7 election next succeeding the election at which consolidation or 8 merger referenda were held. At that municipal election, the 9 necessary officers of the consolidated municipality shall be 10 elected in accordance with the terms of the general law 11 affecting municipalities of the kind or class of the 12 consolidated or merged municipality, or, in case of a 13 consolidated or merged municipality operating under a home rule 14 charter or optional plan of government, in accordance with the 15 charter or optional plan or with general law affecting home rule 16 or optional plan municipalities, as applicable. 17 (b) Terms.--The officers elected at that municipal election 18 shall be elected for terms of office under the plan and schedule 19 set out in the consolidation or merger agreement authorized by 20 section 402 or 406, as the case may be. They shall take office 21 as officers of the consolidated or merged municipality on the 22 first Monday of January following the municipal election at 23 which they were elected, and, thereupon, the consolidated or 24 merged municipality shall begin to function and the former 25 municipalities consolidated or merged shall be abolished. 26 Section 408. Effect of transition on employees of the 27 consolidated or merged municipality. 28 As of the date when a consolidated or merged municipality 29 shall begin to function, except for those officers and employees 30 which are protected by any tenure of office, civil service 19890H1075B1223 - 36 -
1 provision or collective bargaining agreement, all appointive 2 offices and positions then existing in all former municipalities 3 involved in the consolidation or merger shall be disposed of in 4 accordance with the terms of the consolidation or merger 5 agreement. Provisions shall be made for instances in which there 6 is duplication of positions, including, but not limited to, 7 chief of police or manager, and for such other matters as 8 varying length of employee contracts, different civil service 9 regulations in the constituent municipalities and differing 10 ranks and position classifications for similar positions. 11 Section 409. Procedures. 12 (a) Ordinance book.--After consolidation or merger become 13 effective, a new ordinance book shall be used by the 14 municipality and the first document to be recorded in it shall 15 be the consolidation or merger agreement. 16 (b) Ordinance codification.--No later than two years after 17 the consolidation or merger goes into effect, codification of 18 all the ordinances of the constituent municipalities shall be 19 completed. This shall include tabulation or indexing of those 20 ordinances of the component municipalities that are of permanent 21 effect in the consolidated or merged municipalities. 22 (c) Vesting of rights, privileges, property and 23 obligations.--All rights, privileges and franchises of each 24 component municipality and all property, real, personal and 25 mixed, belonging to each component municipality shall be vested 26 in the consolidated or merged municipality. The title to real 27 estate vested in any of those municipalities shall not revert or 28 be in any way impaired by reason of the consolidation or merger. 29 All rights of creditors and liens shall be preserved. Agreements 30 and contracts shall remain in force. Debts, liabilities and 19890H1075B1223 - 37 -
1 duties of each of the municipalities shall be attached to the 2 consolidated or merged municipality and may be enforced against 3 it. 4 CHAPTER 5 5 INCORPORATION 6 Section 501. Procedure for incorporation. 7 A municipality may be incorporated by initiative and 8 referendum from contiguous territory of all or part of an 9 existing municipality or municipalities. Incorporation proposals 10 which include a part of a municipality shall receive the 11 approval of the commission before they are submitted for 12 referendum. 13 Section 502. Petition for incorporation. 14 (a) Submission and signatures.--The petition for 15 incorporation of a municipality shall be submitted to the 16 commission. The petition shall be signed by: 17 (1) Electors comprising at least 5% of the electors in 18 each municipality, respectively, voting for the Office of 19 Governor in the last gubernatorial general election within 20 each municipality proposed for incorporation. 21 (2) The freeholders in each municipality or part thereof 22 who represent at least 50% of the assessed valuation of real 23 property within each municipality or part thereof proposed 24 for incorporation, as certified by the board or boards of 25 county commissioners. A majority in interest of owners of 26 undivided interests in any piece of property shall be deemed 27 and treated as one person for the purpose of ascertaining the 28 number of freeholders. 29 (b) Time limitation.--Once the circulation of a petition has 30 begun, the petition shall be submitted to the commission within 19890H1075B1223 - 38 -
1 seven weeks. Failure to do so within the prescribed time limit 2 shall invalidate the petition. Presentation of a receipt 3 indicating that the petition was mailed by registered or 4 certified mail on or before the deadline date shall be evidence 5 of timely filing. 6 Section 503. Incorporation petition. 7 The petition for incorporation to the commission shall be in 8 such form and shall contain such information as the commission 9 may require. 10 Section 504. Study and report on petition for incorporation. 11 The commission shall make a study of the petition for 12 incorporation and shall submit its recommendations, within six 13 months after receipt of the petition, to the person in each 14 municipality who submitted the petition, to the governing bodies 15 of the municipalities affected and to the board or boards of 16 county commissioners of the territory affected by the proposed 17 incorporation. 18 Section 505. Incorporation election. 19 (a) Submission of question.--The commission shall cause a 20 question relating to the proposed incorporation to be submitted 21 to the electorate of the territory or area proposed for 22 incorporation. The commission shall not cause to be submitted 23 for referendum any incorporation proposal affecting less than an 24 entire municipality unless the proposal has been approved by the 25 commission. 26 (b) Conduct of election.--The election shall be held at the 27 next primary, municipal or general election not less than the 28 13th Tuesday after the commission has requested the appropriate 29 county board or boards of elections to place the question on the 30 ballot. The election shall be conducted under the provisions of 19890H1075B1223 - 39 -
1 the act of June 3, 1937 (P.L.1333, No.320), known as the 2 Pennsylvania Election Code. In the case of a referendum on the 3 incorporation of territory not constituting an entire existing 4 municipality or one or more entire existing wards, the county 5 board of elections shall prescribe the procedure to be followed. 6 (c) Election return.--If a majority of the electors voting 7 on such question in each of the municipalities affected shall 8 vote in favor of such incorporation or, where a proposal 9 affecting less than an entire municipality has been approved by 10 the commission, if a majority of the electors voting upon such 11 question in the territory proposed for incorporation shall vote 12 in favor of such incorporation, it shall be deemed final. 13 (d) Certification.--Certification of the vote favorable to 14 incorporate shall be made by the county board of elections to 15 the governing bodies of the municipalities affected, to the 16 appropriate board or boards of county commissioners and to the 17 commission. 18 (e) Failure of proceeding.--If the incorporation proposal 19 includes either all or part of two or more municipalities and if 20 a majority of the persons voting on such question in the area or 21 territory affected by an incorporation in any one of the 22 municipalities affected shall vote against such incorporation, 23 then the incorporation proceedings shall fail. If the referendum 24 on incorporation proceedings shall fail, the question of 25 incorporation of territory described in the incorporation 26 proposal shall not be voted on again for a period of five years. 27 Section 506. Effectuation of incorporation. 28 (a) Effective date.--Incorporation shall become effective on 29 the first Tuesday after the first Monday in January following 30 the next succeeding municipal election or special election held 19890H1075B1223 - 40 -
1 in conjunction with any primary, general or municipal election 2 at which local officials of the new municipality shall be 3 elected. At the request of the petitioners, the special election 4 may be called for by the court of common pleas which shall fix 5 the time, place and manner of holding the special election which 6 shall be in conjunction with any primary, general or municipal 7 election. 8 (b) Terms of office.--Municipal officers chosen at a special 9 election shall serve until the first Tuesday after the first 10 Monday in January following the next succeeding municipal 11 election at which time their successors shall be elected in 12 accordance with the laws covering the election of municipal 13 officials of the type and class of municipality to which the new 14 incorporated municipality belongs. 15 (c) Governing law.--The municipal election at which said 16 officials are to be elected shall be held in accordance with the 17 laws governing municipal officials of the type and class of 18 municipality to which the new municipality belongs. The election 19 of municipal officials shall be such as to provide for 20 staggering terms of office as closely in compliance as possible 21 with the governing municipal code. 22 (d) Appointment of officials.--The municipal election shall 23 not be held before the 13th Tuesday after certification of the 24 favorable vote to incorporate. The court of common pleas having 25 jurisdiction shall appoint from among the electors of the newly 26 incorporated municipality a judge and inspector to hold the 27 election. 28 (e) Existence of incorporated municipality terminates old 29 municipality.--When the incorporated municipality shall go into 30 effect, the former municipality or municipalities shall cease to 19890H1075B1223 - 41 -
1 exist in every case in which the entire territory of a 2 municipality or municipalities has been included in the 3 incorporated municipality. 4 Section 507. Assets, liabilities and indebtedness where entire 5 municipality incorporated as new municipality. 6 Where an entire municipality shall be incorporated as a newly 7 created municipality, all assets of the former municipality 8 shall become assets of and property of the incorporated 9 municipality, all indebtedness of the former municipality shall 10 be assumed by the incorporated municipality and all liabilities 11 of the former municipality shall become liabilities of the 12 incorporated municipality. 13 Section 508. Adjustment of assets, liabilities and indebtedness 14 where part of a municipality becomes an 15 incorporated municipality. 16 (a) Adjustment.--Following any incorporation of part of the 17 territory or area of a municipality as a newly incorporated 18 municipality, the governing body of the newly incorporated 19 municipality and the governing body of the municipality from 20 which territory was incorporated shall make a proper adjustment 21 and apportionment between the two municipalities of all 22 indebtedness, assets and liabilities of the municipality from 23 which territory was incorporated, as of the time of 24 incorporation. The adjustment and apportionment shall provide 25 that both the new municipality and the municipality from which 26 an incorporation occurred shall be entitled to share in a 27 division of the assets, liabilities and indebtedness in the 28 proportion that the assessed valuation of the newly incorporated 29 municipality, as determined by the county board for the 30 assessment and revision of taxes, bears to the assessed 19890H1075B1223 - 42 -
1 valuation, as so determined, of the original municipality the 2 year immediately prior to the incorporation. 3 (b) Assumption by incorporating municipality.--Where 4 indebtedness was incurred by the municipality from which the new 5 municipality was incorporated for an improvement located wholly 6 within the newly incorporated municipality, that indebtedness 7 shall be assumed by the newly incorporated municipality. Where 8 any part of an improvement is located within the limits of the 9 newly incorporated municipality, the part of the indebtedness 10 representing that part of the improvement shall be assumed by 11 the newly incorporated municipality, and apportionment of any 12 remaining indebtedness of the original municipality shall be 13 made as provided in subsection (a). 14 (c) Written document.--The adjustment and apportionment of 15 the assets, liabilities and indebtedness shall be reduced to 16 writing, shall be executed and acknowledged by the clerk or 17 secretary of the newly incorporated municipality and shall be 18 filed with the prothonotary of the county or counties in which 19 the two municipalities are located and copies shall be filed 20 with the commission, the Legislative Reapportionment Commission, 21 the Governor's Office of Policy Development or its successor, 22 the State Tax Equalization Board, the Department of Community 23 Affairs, the Department of Education, the Department of 24 Transportation and the court of common pleas and the board of 25 county commissioners of the county or counties in which the two 26 municipalities are located. 27 Section 509. Judicial adjustment on failure of agreement. 28 (a) Appeal to court.--In case the governing bodies of the 29 newly incorporated municipality and the municipality from which 30 territory was incorporated cannot, within six months after the 19890H1075B1223 - 43 -
1 incorporation becomes effective, arrive at the adjustment and 2 apportionment of the indebtedness, assets and liabilities, 3 pursuant to section 507, the governing body, a citizen or a 4 property owner of any of the municipalities affected may appeal 5 to the court of common pleas of the county in which the 6 municipality from which territory was incorporated or the 7 greater portion of the area of that municipality is located. 8 (b) Appointment of commissioners.--The court shall thereupon 9 appoint three disinterested commissioners, who shall be 10 residents and taxpayers of the county and who shall not be 11 residents or owners of real estate in either the newly 12 incorporated municipality or the municipality from the territory 13 of which that municipality was incorporated. The commissioners, 14 after hearing, notice of which shall be given to both interested 15 municipalities as directed by the court, shall proceed to make 16 the apportionment and adjustment and shall report to the court 17 stating the amount, if any, that shall be due and payable from 18 the newly incorporated municipality to the municipality from 19 which it was incorporated or from the municipality from which 20 the new municipality was incorporated, as well as the amount of 21 indebtedness, if any, that shall be assumed by the newly 22 incorporated municipality or the municipality from which it was 23 incorporated or both of them. 24 Section 510. Proceedings on judicial adjustment. 25 (a) Notice.--The commissioners shall give the incorporating 26 municipality and the municipality from which territory was 27 incorporated at least 15 days' notice of the filing of their 28 report. Unless exceptions to the report are filed, the report 29 shall be confirmed absolutely by the court. Any sum awarded by 30 the court to the incorporating municipality or to the 19890H1075B1223 - 44 -
1 municipality from which territory has been incorporated shall be 2 a legal and valid claim in its favor against the municipality 3 charged therewith. Any property, real or personal, given to the 4 incorporating municipality or to the municipality from which 5 territory has been incorporated shall become its property. Any 6 claim or indebtedness charged against the incorporating 7 municipality or the municipality from which territory has been 8 incorporated shall be paid within one year from the date of 9 confirmation absolute. 10 (b) Exceptions.--If exceptions are filed to the report of 11 the commissioners, the court shall dispose of the exceptions and 12 enter its decree or modify the same as it appears just and 13 proper. 14 Section 511. Compensation and expenses of commissioners. 15 The appointed commissioners shall be allowed such 16 compensation and expenses for their services as the court shall 17 fix. The compensation and expenses shall be paid to the 18 commissioners for days on which they are actually engaged in the 19 performance of their duties. The costs of the proceedings, 20 including the compensation and expenses of the commissioners, 21 shall be apportioned between the newly incorporated municipality 22 and the municipality from which territory has been incorporated 23 as it deems proper and equitable. 24 Section 512. Incorporating municipality located in two or more 25 counties. 26 If the territory of the newly incorporated municipality is 27 located in two or more counties, the court of common pleas of 28 the county in which the greater portion of the territory of the 29 newly incorporated municipality is located shall have exclusive 30 jurisdiction over the proceedings to determine the cost of 19890H1075B1223 - 45 -
1 certain improvements in the territory incorporated and to adjust 2 and apportion the indebtedness between the incorporating 3 municipality and the municipality from which territory has been 4 incorporated. 5 Section 513. Liquidation of indebtedness. 6 (a) Court orders.--The court may make all necessary orders 7 for the collection by the newly incorporated municipality or by 8 the municipality from which territory was incorporated, as the 9 case may be, and payment by it to the other municipality, of its 10 share of any indebtedness apportioned to it. The order may 11 direct the municipality against which the indebtedness was 12 apportioned to levy and collect special taxes for one year or 13 pay by annual installments over a stated period of time the 14 amount needed to liquidate the indebtedness. 15 (b) Interest bearing notes.--If acceptable to the 16 municipality to which money is owed, the other municipality 17 shall have the power to issue and deliver interest-bearing bonds 18 in liquidation of the indebtedness. 19 Section 514. Collection of taxes levied prior to incorporation. 20 All taxes levied against property in the territory 21 incorporated prior to the effective date of the incorporation 22 shall be paid to the municipality from which territory has been 23 incorporated and the collection and enforcement shall be as 24 though the incorporation had not taken place. 25 Section 515. Crossing county lines. 26 Where the newly incorporated municipality is located in more 27 than one county, the county board of elections and the court of 28 common pleas in the county in which the greater part of the 29 territory of the newly incorporated municipality is located 30 shall furnish official information relating to the incorporation 19890H1075B1223 - 46 -
1 to their counterparts in the other county or counties concerned. 2 Section 516. Election districts and officers. 3 Except for any temporary arrangements for the purpose of a 4 referendum under section 505, all election districts in the 5 newly incorporated territory shall remain as constituted before 6 the incorporation and shall become election districts of the 7 incorporating municipality until changed in accordance with the 8 act of June 3, 1937 (P.L.1333, No.320), known as the 9 Pennsylvania Election Code. All election district officers shall 10 continue in office until the expiration of their terms, unless 11 the office is vacated. 12 CHAPTER 6 13 REPEALS AND EFFECTIVE DATE 14 Section 601. Repeals. 15 (a) Specific repeals.--The following acts and parts of acts 16 are repealed: 17 Act of April 22, 1903 (P.L.247, No.183), entitled "An act 18 enabling the burgess and council of any borough or incorporated 19 town, by ordinance, to annex to the borough or incorporated town 20 adjacent territory, upon petition of a majority of the freehold 21 owners thereof." 22 Act of April 28, 1903 (P.L.332, No.260), entitled "An act for 23 the annexation of any city, borough, township, or part of a 24 township, to a contiguous city, and providing for the 25 indebtedness of the same." 26 Act of February 7, 1906 (Sp.Sess., P.L.7, No.1), entitled "An 27 act to enable cities that are now, or may hereafter be, 28 contiguous or in close proximity, to be united, with any 29 intervening land other than boroughs, in one municipality; 30 providing for the consequences of such consolidation, the 19890H1075B1223 - 47 -
1 temporary government of the consolidated city, payment of the 2 indebtedness of each of the united territories, and the 3 enforcement of debts and claims due to or from each." 4 Act of May 28, 1907 (P.L.295, No.223), entitled "A supplement 5 to an act, entitled 'An act for the annexation of any city, 6 borough, township, or part of a township, to a contiguous city, 7 and providing for the indebtedness of the same,' approved the 8 twenty-eighth day of April, Anno Domini one thousand nine 9 hundred and three; to enable territory now annexed, or which may 10 hereafter be annexed under the provisions of said act, to be 11 arranged and erected into a ward, or wards, of the city to which 12 it is annexed; and providing the procedure for that purpose, and 13 for the proper representation of the ward or wards erected." 14 Act of June 1, 1907 (P.L.377, No.271), entitled "A supplement 15 to an act, approved April twenty-eighth, one thousand nine 16 hundred three, entitled 'An act for the annexation of any city, 17 borough, township, or part of a township, to a contiguous city, 18 and providing for the indebtedness of the same,' providing for 19 the preservation of rights of creditors and of liens, and for 20 funding the debt of the municipality or school district 21 annexed." 22 Act of May 6, 1915 (P.L.260, No.152), entitled "A supplement 23 to an act approved the seventh day of February, one thousand 24 nine hundred and six, entitled 'An act to enable cities that are 25 now or may hereafter be contiguous or in close proximity, to be 26 united with any intervening land, other than boroughs, in one 27 municipality; providing for the consequences of such 28 consolidation, the temporary government of the consolidated 29 city, payment of the indebtedness of each of the united 30 territories, and the enforcement of debts and claims due to or 19890H1075B1223 - 48 -
1 from each,' by providing that the indebtedness of each city and 2 intervening land, heretofore or hereafter united or consolidated 3 under the provisions of said act, shall be paid by the 4 consolidated city, and for the levying of a uniform tax, upon 5 all the territory included within the consolidated city, for the 6 payment of the same." 7 Act of May 6, 1915 (P.L.272, No.167), entitled "A supplement 8 to an act, approved the twenty-eight day of April, one thousand 9 nine hundred and three, entitled 'An act for the annexation of 10 any city, borough, township, or part of a township, to a 11 contiguous city, and providing for the indebtedness of the 12 same,' by providing that any city, heretofore or hereafter 13 enlarged by any annexation under the terms of said act, shall be 14 liable for and shall pay the indebtedness of such city and the 15 territory so annexed; and providing for the levying of a uniform 16 tax upon all the territory included within such city as enlarged 17 by such annexation, for the payment of all such indebtedness." 18 Act of May 31, 1923 (P.L.473, No.258), entitled "An act 19 authorizing the annexation to cities of the second class of 20 portions of townships not exceeding one hundred acres in area 21 and totally surrounded by said cities; and providing for the 22 division of the assets and liabilities of said townships." 23 Act of May 12, 1925 (P.L.596, No.320), entitled "An act 24 providing for the alteration of the boundaries of counties in 25 certain cases for the adjustment of the indebtedness thereof; 26 providing the effect thereof." 27 Sections 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 28 250, 251, 252, 253, 254, 255, 501, 502, 503, 504, 505, 506, 515, 29 516, 517, 518, 525, 526, 535, 536, 540, 541, 542, 543, 544, 545, 30 550, 551, 560, 561, 562, 570 and 580 of the act of June 23, 1931 19890H1075B1223 - 49 -
1 (P.L.932, No.317), known as The Third Class City Code, reenacted 2 and amended June 28, 1951 (P.L.662, No.164). 3 Sections 210, 211, 212, 213, 214, 216, 217, 218 and 219 of 4 the act of June 24, 1931 (P.L.1206, No.331), known as The First 5 Class Township Code, reenacted and amended May 27, 1949 6 (P.L.1955, No.569). 7 Sections 205, 206, 207, 208, 209, 210, 211, 211.1, 212, 213, 8 214 and 215 of the act of May 1, 1933 (P.L.103, No.69), known as 9 The Second Class Township Code, reenacted and amended July 10, 10 1947 (P.L.1481, No.567). 11 Sections 2(c) and 3 of the act of May 29, 1935 (P.L.244, 12 No.102), entitled "An act creating a Local Government Commission 13 to study and report on functions of local government; their 14 allocation and elimination; the cost of local government and 15 means of reducing it; and the consolidation of local government; 16 and making an appropriation." 17 Act of May 13, 1937 (P.L.620, No.161), entitled "An act 18 requiring the consent of the electors of a township of the first 19 class when such township, or any part thereof, is to be annexed 20 to a contiguous borough or city." 21 Act of July 2, 1937 (P.L.2803, No.588), entitled "An act 22 providing a method of annexation of townships of the first 23 class, and parts thereof, to cities and boroughs, and regulating 24 the proceedings pertaining thereto," sections 1 through 9 25 reenacted and amended May 9, 1951 (P.L.225, No.34). 26 Act of June 15, 1939 (P.L.372, No.217), entitled "An act 27 affecting cities of the second class A, authorizing the 28 annexation of boroughs and townships thereto under certain 29 conditions, and, in connection therewith, placing duties upon or 30 affecting courts of quarter sessions, county boards of 19890H1075B1223 - 50 -
1 elections, and officers of boroughs, townships, and cities of 2 the second class A, and providing for the payment of the 3 indebtedness of the various territorial units involved." 4 Act of July 20, 1953 (P.L.550, No.145), entitled "An act 5 providing for and regulating the annexation of parts of a second 6 class township to boroughs, cities and townships." 7 Articles II and IV of the act of February 1, 1966 (1965 8 P.L.1656, No.581), known as The Borough Code. 9 Act of July 10, 1987 (P.L.246, No.47), known as the 10 Financially Distressed Municipalities Act, as follows: the 11 definitions of "consolidated or merged municipality," 12 "consolidation or merger," "contiguous territory," "election 13 officials," "initiative" and "referendum" in section 103; as 14 much as reads as follows: "pursuant to Chapter 4" of section 15 241(7); all of sections 401, 402, 403, 404, 405, 406, 407 and 16 409; and as much as reads as follows: "under provisions of this 17 chapter" of section 421. 18 (b) General repeal.--All other acts and parts of acts are 19 repealed insofar as they are inconsistent with this act. 20 Section 602. Application to procedures previously initiated. 21 Where initiative and referendum proceedings under the second 22 paragraph of section 8 of Article IX of the Constitution of 23 Pennsylvania were commenced in any municipality before the 24 effective date of this act, those proceedings may continue just 25 as if this act had not been passed. Insofar as this act sets 26 forth procedures, conditions and requirements applicable 27 following a referendum on the question of consolidation, merger 28 or boundary change, this act shall apply in any municipality 29 where those referendum proceedings had been commenced or where 30 the electors had voted in the affirmative or in the negative in 19890H1075B1223 - 51 -
1 any such referendum before the effective date of this act. 2 Section 603. Effective date. 3 This act shall take effect in 90 days. C3L53RZ/19890H1075B1223 - 52 -