THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY MUSTO, WOZNIAK, FONTANA, TARTAGLIONE AND WASHINGTON, MAY 7, 2010

REFERRED TO LOCAL GOVERNMENT, MAY 7, 2010  

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, creating the Boundary Review

Commission; providing for municipal dissolutions,

incorporations, annexations, mergers and consolidations; and

making an appropriation.

The General Assembly finds and declares as follows:

(1)  It is declared to be public policy of the

Commonwealth to foster the fiscal integrity of municipalities

to assure that they can provide for the health, safety and

welfare of their citizens. The failure of a municipality to

so provide is determined to adversely affect the health,

safety and welfare not only of the citizens of the

municipality but also of the citizens of this Commonwealth.

(2)  It is in the interest of the Commonwealth to

encourage orderly growth and development essential to the

social, fiscal and economic well-being of this entire

Commonwealth.

(3)  The formation and adjustment of municipal boundaries

are important factors in promoting orderly development,

encouraging sound economic growth, conservation of resources

and efficient delivery of government services.

(4)  Assuring adequate fiscal and operational capacity of

local governments to provide needed facilities and services

to their residents and businesses is essential to the well-

being and economic potential of this Commonwealth.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 53 of the Pennsylvania Consolidated

Statutes is amended by adding a chapter to read:

CHAPTER 9A

BOUNDARY REVIEW COMMISSION

Sec.

9A901.  Definitions.

9A902.  Boundary Review Commission.

9A903.  Powers and duties.

9A904.  Petitions for study.

9A905.  Adoption, submission and action.

9A906.  Rights of parties.

9A907.  Construction and harmless irregularities.

§ 9A901.  Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Affected county."  Any county which contains, or would

contain, any territory for which a reorganization is proposed or

ordered or which contains all or any part of an incorporated

municipality for which a change of boundaries reorganization is

proposed or ordered.

"Affected municipality."  Any city, borough, township or town

which contains territory for which a reorganization is proposed.

"Annexation."  The absorption, inclusion, attachment or

addition of territory from one municipality to another

municipality.

"Area government."  A unit of government created by the

General Assembly to provide some or all of the functions of a

specific group of municipalities or counties and which shall be

governed by an independent governing board elected by the voters

residing in the affected municipalities or affected counties.

"Commission."  The Boundary Review Commission.

"Commission proceedings."  Activities and proceedings which

are taken by the Boundary Review Commission under this chapter.

"Consolidation."  The combination of two or more counties or

municipalities which results in the termination of the existence

of each of the counties or municipalities to be consolidated and

the creation of a new county or municipality which assumes

jurisdiction over all of the local governments which have been

terminated.

"Contiguous."  Any of the following:

(1)  In the case of annexation, a parcel or parcels of

land adjacent to or a parcel or parcels adjoining territory

within, the local government to which annexation is proposed.

(2)  In the case of consolidation, territory of a county

or municipality which is adjacent to, contiguous with or

adjoining the territory of another local government, both of

which are to be consolidated.

"Contiguous territory."  A territory of which a portion abuts

the boundary of another municipality, including territory

separated from the exact boundary of another municipality by a

street, road, railroad or highway or by a river or other natural

or artificial stream of water.

"Function."  Any power granted by law to a municipality or a

county to provide services or facilities for the use, benefit or

protection of persons or property.

"Incorporation."  The formation, creation and establishment

of a municipality with corporate powers consistent with

applicable statutory authority.

"Interested agency."  Each local agency or municipal

authority which provides facilities or services in the affected

territory of a boundary change or reorganization.

"Merger."  The combination of two or more counties or the

combination of two or more municipalities which results in the

termination of the existence of all but one of the counties to

be merged or all but one of the municipalities to be merged,

with the surviving county or municipality absorbing and assuming

jurisdiction over the counties or municipalities which have been

terminated.

"Plan of reorganization."  A plan or program for effecting a

reorganization or a change in the means by which public services

are provided and which contains a description of all changes of

organization, changes in services and changes in responsibility

to provide public services and which sets forth all terms,

conditions and matters necessary or incidental to the

effectuation of that reorganization or change in service

providers.

"Reorganization."  Any of the following:

(1)  A merger of contiguous counties or contiguous

municipalities or a combination thereof.

(2)  A consolidation of counties or a consolidation of

municipalities or a combination thereof.

(3)  An annexation of a portion of a county or

municipality by a contiguous county or municipality.

(4)  Creation of area government as authorized by

sections 6 and 7 of Article IX of the Constitution of

Pennsylvania.

§ 9A902.  Boundary Review Commission.

(a)  Creation.--The Boundary Review Commission is created to

exercise the powers specified under this chapter.

(b)  Purposes.--The commission shall study and recommend

boundary changes to the General Assembly and affected local

governments that promote orderly development, encourage sound

economic growth, conservation of resources and effective

delivery of government services. Boundary change recommendations

shall be developed for the purpose of creating and maintaining

municipal corporations that have a sufficient tax base and a

sound prospect for fiscal health.

(c)  Members.--Except as otherwise provided, the commission

shall consist of the following members:

(1)  Five members appointed by the Governor, one each

from lists of not less than three persons submitted by the

County Commissioners Association of Pennsylvania, the

Pennsylvania League of Cities and Municipalities, the

Pennsylvania State Association of Boroughs, the Pennsylvania

State Association of Township Commissioners and the

Pennsylvania State Association of Township Supervisors.

(2)  Two at-large members appointed by the Governor.

(3)  Four legislative appointees as follows:

(i)  One individual appointed by the President pro

tempore of the Senate.

(ii)  One individual appointed by the Minority Leader

of the Senate.

(iii)  One individual appointed by the Speaker of the

House of Representatives.

(iv)  One individual appointed by the Minority Leader

of the House of Representatives.

(d)  Term of office.--Four appointees of the Governor under

subsection (c)(1) and (2) shall be appointed to initial terms of

four years, and three shall be appointed for initial terms of

two years. Upon expiration of the initial terms, all appointees

of the Governor shall serve for terms of four years. The

legislative appointees shall serve at the pleasure of the

appointing authority. Any vacancy in the membership of the

commission appointed by the Governor shall be filled by the

Governor for the unexpired term of that member.

(e)  Chairman and meetings.--The chairman and vice chairman

of the commission shall be appointed by the Governor. Meetings

shall be held at the call of the chairman. The chairman, and in

his absence, the vice chairman, shall preside at all meetings of

the commission.

(f)  Reimbursement of actual expenses.--Commission members

shall be reimbursed for the actual amount of reasonable and

necessary expenses incurred in attending meetings and in

performing the duties of their office.

(g)  Open meetings and Right-to-Know Law.--The commission

shall be subject to the provisions of the following:

(1)  The act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law.

(2)  65 Pa.C.S. Ch. 7 (relating to open meetings).

(h)  Notice of proceedings.--The commission shall cause

notice to be published in the Pennsylvania Bulletin of all

scheduled commission proceedings in accordance with 65 Pa.C.S.

Ch. 7 and guidelines adopted by the commission.

§ 9A903.  Powers and duties.

The commission shall have all of the following powers and

duties:

(1)  To appoint an executive director who shall direct

and supervise the work of the commission.

(2)  To contract for professional or consulting services

to carry out and effect the functions of the commission.

(3)  To obtain administrative and other staff services,

including legal staff services, from the Department of

Community and Economic Development. The commission shall

enter into agreements with the department setting forth the

rights and obligations each has in carrying out its

respective responsibilities under, and to further the intent

of, this chapter.

(4)  To conduct studies and make findings and

recommendations to the General Assembly and the affected

municipalities regarding changes to municipal boundaries or

reorganization of municipal governments consistent with

written policies, procedures and guidelines adopted by the

commission. The commission's studies shall include a cost and

benefit analysis of the proposed changes.

(5)  To conduct studies and make findings and

recommendations to the General Assembly and to affected

municipalities or to affected counties regarding

consolidation of services provided by two or more

municipalities or counties which shall otherwise continue to

exist and exercise all other functions authorized by

applicable State law.

(6)  To conduct studies and make findings and

recommendations to the General Assembly and to affected

municipalities or to affected counties regarding options for

municipalities or counties that have been found to be

nonviable by the Secretary of Community and Economic

Development under criteria established in the act of July 10,

1987 (P.L.246, No.47), known as the Municipalities Financial

Recovery Act. The Secretary of Community and Economic

Development shall promptly notify the commission of

determinations of nonviability under the Municipalities

Financial Recovery Act. In these cases, and based on a

finding of the need for a boundary change or reorganization,

the commission may recommend to the General Assembly and the

affected municipalities or affected counties the following:

(i)  Annexation of parts of a nonviable municipality

by a contiguous municipality or municipalities.

(ii)  Consolidation of one or more contiguous

municipalities with the nonviable municipality.

(iii)  Merger of one or more contiguous

municipalities with the nonviable municipality.

(7)  To propose a plan or plans of reorganization

applicable to two or more contiguous municipalities or

portions of municipalities, two or more counties or portions

of counties or a county and one or more of its

municipalities. The plans may include municipalities in all

classes of counties and municipalities except that the plans

of reorganization shall not be proposed to include cities of

the first class, cities of the second class or counties of

the first class or any portion of these municipalities unless

the cities and counties seek to be included in a plan of

reorganization.

(8)  (i)  The commission may propose a plan or plans of

reorganization for affected municipalities and affected

counties if it finds that at least three of the following

criteria indicative of nonviability and fiscal distress

are present in the affected counties or affected

municipalities:

(A)  Inability to pay due principal and interest

on debt obligations.

(B)  Inability to meet financial obligations to

employees, vendors and suppliers.

(C)  Inability to provide for proper financial

accounting procedures, budgeting and taxing practices

and functions as mandated by their respective

municipal codes.

(D)  Inability to provide adequately for the

health, safety and welfare of their residents and

business.

(E)  Stagnant or declining property values and

tax base and other factors rendering the municipality

incapable of providing municipal services and meeting

its debts and incurred expenses of the municipal

corporation.

(F)  The population of the municipality is less

than 400 persons or the population has declined over

the most recent ten-year period by 25% or more based

on biannual census data provided by the State Data

Center and the population is no longer stable enough

to support municipal government.

(G)  Inability to appoint boards, commissions and

municipal employees for needed functions or to elect

representatives to the governing body.

(ii)  Any studies or recommendations made by the

commission under this paragraph shall consider the

adopted comprehensive plan of the affected county, any

comprehensive plan of the affected municipality or

affected municipalities and public comment received by

the commission on any plan or plans of reorganization

recommended by the commission.

(9)  To incur usual and necessary expenses for the

accomplishment of its functions.

(10)  To hold at least one public hearing prior to

issuing recommendations.

(11)  To adopt written policies, procedures and

guidelines necessary for the completion of its powers under

this chapter.

(12)  To prepare and submit to the Governor a proposed

annual budget for its activities and obligations which may be

incorporated into the Governor's budget request to the

General Assembly.

§ 9A904.  Petitions for study.

(a)  Initiation by petition.--The commission shall initiate a

boundary study upon receipt of a petition signed by at least 5%

of registered voters residing within each of the affected

counties or affected municipalities as of the date of the last

general election. The petition shall contain the names of those

individuals who are initiating the petition and shall name the

municipalities to be included in the study and the type of

proposed boundary change or reorganization. Petitions shall

include signatures, printed names and addresses of the persons

signing the petition and the date signed by each.

(b)  Acceptance or rejection.--If the commission finds that a

petition does not contain the required number of signatures of

qualified registered voters, the commission shall reject the

petition and shall return the petition to the individual or

individuals identified as the initiators. If the commission

finds that the petition is proper, it shall proceed to conduct

the studies requested in the petition.

(c)  Actions initiated by governing bodies.--The commission

shall initiate a boundary change study upon receipt of a

resolution enacted by the governing body of each affected county

or municipality setting forth the counties' or municipalities'

interest in a proposed boundary change or plan of reorganization

and a commitment to participate in the study and process and to

provide all relevant information necessary to complete the

study.

(d)  Appeal of decision.--The decision by the commission to

accept or reject a petition under this section shall be

appealable to the Commonwealth Court.

§ 9A905.  Adoption, submission and action.

(a)  Completion of study.--Any study undertaken under this

chapter that results in a recommendation for a plan or plans for

reorganization shall require adoption and approval by the

commission by a majority vote.

(b)  Submission to the General Assembly.--An approved plan or

plans of reorganization shall be submitted to the General

Assembly upon a majority vote to approve the plan of

reorganization.

(c)  Response study.--In the case of a study undertaken in

response to a petition, the study shall be completed within 18

months of the filing of the petition with the Secretary of

Community and Economic Development or within 18 months of

receipt of resolutions from one or more governing bodies in the

area proposed in the petition for study of a proposed plan or

plans of reorganization.

(d)  Publication.--Within 30 days of approval of a plan or

plans of reorganization and submission of the plan or plans to

the General Assembly, the commission shall publish the plan or

plans in the Pennsylvania Bulletin and the plans shall be

published on the commission's Internet website, the Internet

website of the General Assembly and the Internet website of the

department. The commission shall specify a 60-day public comment

period and shall publish a summary of public comments received

in the Pennsylvania Bulletin within 30 days of the close of the

comment period.

(e)  Vote.--The General Assembly shall vote by resolution to

approve or reject any plan of reorganization or plans of

reorganization prepared as a package of recommended

reorganizations without amendment within six months of

publication of public comment in the Pennsylvania Bulletin.

§ 9A906.  Rights of parties.

Notwithstanding any other provision of this chapter, or of

any change of boundary or reorganization recommended or approved

under this chapter, each bondholder or other creditor may

enforce all of his rights in the same manner and to the same

extent as if the change of boundaries or reorganization had not

been made. Rights may also be enforced as follows:

(1)  Annexation or detachment against the municipality to

or from which territory is annexed or detached.

(2)  Incorporation against the newly incorporated

municipality.

(3)  Consolidation against the consolidated successor

municipality.

§ 9A907.  Construction and harmless irregularities.

This chapter shall be liberally construed to effectuate its

stated purposes. No change of boundary or reorganization ordered

by the General Assembly shall be invalidated because of any

defect, error, irregularity or omission in any act,

determination or procedure related to the commission that does

not adversely and substantially affect the rights of any person,

county, municipality, district, the Commonwealth or any of its

agencies or political subdivisions.

Section 2.  The General Assembly shall appropriate funds as

it deems necessary for the operation of the Boundary Review

Commission.

Section 3.  This act shall take effect immediately.