PRINTER'S NO. 743
No. 678 Session of 1991
INTRODUCED BY WOZNIAK, PESCI, TIGUE, GEIST AND HALUSKA, MARCH 12, 1991
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 12, 1991
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.
1 Chapter 3. Annexation 2 Subchapter A. General Provisions 3 Section 301. Procedure for annexation. 4 Subchapter B. Petition to Commission 5 Section 311. Petition to commission. 6 Section 312. Notice of annexation proposal. 7 Section 313. Study and report of petition for annexation. 8 Section 314. Annexation of property of annexing municipality or 9 municipal authority created solely thereby. 10 Subchapter C. Action by Governing Bodies 11 Section 321. Transfer or exchange of territory by agreement of 12 adjacent municipalities. 13 Section 322. Content of ordinances. 14 Section 323. Responsibilities of annexing municipality 15 following annexation. 16 Section 324. Appeals. 17 Subchapter D. Initiative and Referendum 18 Section 331. Annexation by initiative and referendum. 19 Section 332. Distribution of annexed territory among wards. 20 Section 333. Adjustment of indebtedness, assets and liabilities 21 following annexation. 22 Section 334. Judicial adjustment on failure of agreement. 23 Section 335. Proceedings on judicial adjustment. 24 Section 336. Exceptions to report. 25 Section 337. Compensation and expenses of commissioners. 26 Section 338. Annexing municipality located in two or more 27 counties. 28 Section 339. Liquidation of indebtedness. 29 Section 340. Collection of taxes levied prior to annexation. 30 Section 341. Authorized expenditures. 19910H0678B0743 - 2 -
1 Section 342. Crossing county lines. 2 Section 343. Election districts and officers. 3 Chapter 4. Consolidation or Merger 4 Section 401. Procedure for consolidation or merger. 5 Section 402. Joint agreement of governing bodies. 6 Section 403. Initiative of electors. 7 Section 404. Initiation by petition to commission. 8 Section 405. Conduct of referenda. 9 Section 406. Consolidation or merger agreement. 10 Section 407. Effectuation of consolidation or merger. 11 Section 408. Effect of transition on employees of consolidated 12 or merged municipality. 13 Section 409. Procedures. 14 Chapter 5. Incorporation 15 Section 501. Procedure for incorporation. 16 Section 502. Petition for incorporation. 17 Section 503. Incorporation petition. 18 Section 504. Study and report on petition for incorporation. 19 Section 505. Incorporation election. 20 Section 506. Effectuation of incorporation. 21 Section 507. Assets, liabilities and indebtedness where entire 22 municipality incorporated as new municipality. 23 Section 508. Adjustment of assets, liabilities and indebtedness 24 where part of municipality becomes incorporated 25 municipality. 26 Section 509. Judicial adjustment on failure of agreement. 27 Section 510. Proceedings on judicial adjustment. 28 Section 511. Compensation and expenses of commissioners. 29 Section 512. Incorporating municipality located in two or more 30 counties. 19910H0678B0743 - 3 -
1 Section 513. Liquidation of indebtedness. 2 Section 514. Collection of taxes levied prior to incorporation. 3 Section 515. Crossing county lines. 4 Section 516. Election districts and officers. 5 Chapter 6. Repeals and Effective Date 6 Section 601. Repeals. 7 Section 602. Application to procedures previously initiated. 8 Section 603. Effective date. 9 The General Assembly of the Commonwealth of Pennsylvania 10 hereby enacts as follows: 11 CHAPTER 1 12 GENERAL PROVISIONS 13 Section 101. Short title. 14 This act shall be known and may be cited as the Municipal 15 Boundary Change Act. 16 Section 102. Definitions. 17 The following words and phrases when used in this act shall 18 have the meanings given to them in this section unless the 19 context clearly indicates otherwise: 20 "Annexation." Any change in municipal boundaries resulting 21 from the transfer of territory, comprising part of any 22 municipality, to any other municipality. 23 "Annexed municipality." Any municipality from which 24 territory shall be proposed to be annexed or attached to an 25 annexing municipality under Chapter 2. The annexed municipality 26 may be, but need not necessarily be, located in the same county 27 as the annexing municipality. 28 "Annexing municipality." Any municipality to which territory 29 shall be or shall be proposed to be annexed or attached. The 30 annexing municipality may be, but need not necessarily be, 19910H0678B0743 - 4 -
1 located in the same county as the annexed municipality. 2 "Commission." The Boundary Change Commission. 3 "Consolidated or merged municipality." A municipal entity 4 resulting from successful consolidation or merger proceedings 5 under Chapter 3. 6 "Consolidation or merger." The combination of two or more 7 municipalities into one municipality. 8 "Contiguous territory." A territory or area of which a 9 portion abuts the boundary of another municipality, including 10 territory or area separated from the exact boundary of another 11 municipality by a street, road, railroad or highway or by a 12 river or other natural or artificial stream of water. 13 "Department." The Department of Community Affairs of the 14 Commonwealth. 15 "Detached municipality." A municipality which would decrease 16 in total territory or area as a result of annexation, 17 incorporation or any other means by which territory or area can 18 be transferred. 19 "Detaching municipality." A municipality which would 20 increase in total territory or area as a result of annexation, 21 incorporation or any other means by which territory or area can 22 be transferred. 23 "Detachment." The transfer of territory or area by 24 annexation, incorporation or other means from one municipality 25 to another municipality. 26 "Election officials." The county boards of election, except 27 in a city of the first class where "election officials" means 28 the city board of elections. 29 "Existing municipality." A municipality from which territory 30 or area is proposed to be annexed. 19910H0678B0743 - 5 -
1 "Incorporation." The creation of a new municipality from all 2 or part of the territory or area of an existing municipality or 3 municipalities. 4 "Initiative." As defined in sections 321 and 403, initiative 5 shall mean the filing with applicable election officials of a 6 petition containing a proposal for a referendum to be placed on 7 the ballot of the next election. The petition shall be: 8 (1) Filed not later than the 13th Tuesday prior to the 9 next election in which it will appear on the ballot. 10 (2) Signed by voters comprising 5% of the persons voting 11 for the Office of Governor in the last gubernatorial general 12 election in the municipality where the proposal will appear 13 on the ballot. 14 (3) Placed on the ballot by election officials in a 15 manner fairly representing the content of the petition for 16 decision by referendum at said election. 17 (4) Submitted not more than once in five years. 18 "Municipality." Any city, borough, incorporated town, 19 township of the first class, township of the second class, home 20 rule municipality or any general purpose unit of government 21 hereinafter created by the General Assembly. The term shall not 22 include any county. 23 "Referendum." Placement of a question inserted on the 24 ballot, by initiative or otherwise, by a majority vote of the 25 electors voting thereon. 26 Section 103. Interpretation. 27 (a) Successive changes not affected.--Nothing in this act 28 shall preclude, restrict or limit successive changes in 29 boundaries and territorial limits of any municipality that would 30 affect any specific territory. 19910H0678B0743 - 6 -
1 (b) Municipalities in more than one county.--When any 2 boundary change shall be made under the provisions of this act 3 which shall result in a municipality which lies partly in one 4 county and partly in one or more other counties, the territory 5 or area within such municipality shall, for county and 6 institution district purposes, be and remain a part of the 7 county in which such territory is physically located. 8 (c) School districts not affected.--Nothing in this act, and 9 no action taken pursuant to this act, shall affect or apply to 10 any school district or any school district boundary. Nothing in 11 this act shall preclude further action from being taken under 12 the provisions of the act of March 10, 1949 (P.L.30, No.14), 13 known as the Public School Code of 1949, or other applicable 14 provisions of the law to change school district boundaries or 15 locations. 16 Section 104. Applicability. 17 This act establishes the procedure for and shall apply to the 18 change of boundaries of all municipalities. 19 CHAPTER 2 20 BOUNDARY CHANGE COMMISSION 21 Section 201. Boundary Change Commission. 22 (a) Composition.--The Boundary Change Commission is created 23 and shall be composed of 11 members, three of whom are to be 24 appointed by the Governor, two of whom are to be appointed by 25 the President pro tempore of the Senate, two members appointed 26 by the Minority Leader of the Senate, two members appointed by 27 the Speaker of the House of Representatives and two members 28 appointed by the Minority Leader of the House of 29 Representatives. The members of the commission appointed by each 30 of the appointing powers shall not be of the same political 19910H0678B0743 - 7 -
1 party. Commission members shall not be members of the General 2 Assembly. The chairman of the commission shall be elected by a 3 majority vote of the commission members. 4 (b) Terms.--The commission members shall be appointed as to 5 provide for staggered terms to begin on January 1, 1990, and 6 each shall serve until his successor is qualified. Initially, 7 the three members appointed by the Governor shall be appointed 8 for a term of four years. The two members appointed by the 9 President pro tempore of the Senate and the Speaker of the House 10 of Representatives respectively shall be appointed for a term of 11 three years. The two members appointed by the Minority Leaders 12 of the Senate and the House of Representatives respectively 13 shall be appointed for a term of two years. Thereafter, terms of 14 each member of the commission shall be for a period of four 15 years. 16 (c) Vacancies.--Vacancies shall be filled by the respective 17 appointing power. The person appointed to fill such vacancy 18 shall serve only for the remainder of the vacated term. 19 Section 202. Conduct of business. 20 The commission shall meet quarterly in the city of 21 Harrisburg, except as required for the conduct of public 22 hearings within the territory or area proposed for boundary 23 change actions. The commission shall promulgate rules and 24 regulations and prescribe procedures necessary or desirable in 25 carrying out the intent and purpose of this act, including forms 26 of petitions for municipal boundary changes and the documents, 27 maps and supporting statements deemed to be necessary, and 28 establish rules for public hearings and for the submission of 29 supplementary documents and statements. The commission is 30 subject to the meeting requirements of the act of July 3, 1986 19910H0678B0743 - 8 -
1 (P.L.388, No.84), known as the Sunshine Act. The commission 2 shall keep a record of all proceedings and shall annually, by 3 July 31, make a written report of its business and activities to 4 the Governor, the General Assembly, the Governor's Office of 5 Policy Development or its successor, the Department of 6 Transportation, the Department of Community Affairs, the 7 Department of Education, the State Tax Equalization Board, the 8 Legislative Reapportionment Commission and the court of common 9 pleas and the board of county commissioners of the county or 10 counties in which municipalities affected are located. 11 Section 203. Powers and duties. 12 The powers and duties of the commission are as follows: 13 (1) To make studies of proposed local boundary changes 14 that are referred to it by ordinance of the governing bodies 15 of municipalities contemplating a procedure for boundary 16 change, or by a petition signed by at least 5% of the 17 registered electors of a municipality directly affected by 18 the proposed study and advise the municipalities thereon, or 19 on its own initiative. The governing body of any municipality 20 may at any time request the commission to make a study of any 21 proposal for boundary changes affecting the municipality. 22 Such request may also be made jointly by the governing bodies 23 of all the municipalities directly affected by such a 24 proposal. 25 (2) To undertake long-range studies of local boundary 26 problems in Pennsylvania. 27 (3) To set up a system of State and local reporting and 28 recording of local boundary changes, and of proposals 29 relating to local boundary changes. No boundary change shall 30 be considered final until official copies of all ordinances, 19910H0678B0743 - 9 -
1 petitions and pertinent election returns and other official 2 documents relating to local boundary changes are deposited 3 with the commission and the applicable court of common pleas. 4 (4) To set standards such as population, areawide 5 interests, homogeneity, and services which may be used as the 6 basis for recommending State and local action relating to 7 local boundary changes. 8 (5) To make studies of boundary change proposals, other 9 than those effected through the process of initiative and 10 referendum, which involve detachment of territory from a 11 municipality. 12 (6) To determine the precedence of simultaneous local 13 boundary change proceedings which affect the same territory. 14 (7) To receive recommendations for applicable boundary 15 changes from a financial plan adopted by a distressed 16 municipality pursuant to the act of July 10, 1987 (P.L.246, 17 No.47), known as the Financially Distressed Municipalities 18 Act. 19 Section 204. Criteria for granting approval of detachments of 20 territory. 21 (a) Consideration of criteria.--In determining whether a 22 proposed detachment of territory requiring its approval shall 23 receive such approval, the commission shall consider, but shall 24 not be limited to, the following: 25 (1) The topography and other physical characteristics of 26 the geographical area affected by the proposed detachment. 27 (2) The comprehensive plans that pertain to any 28 municipality or territory affected by the proposed 29 detachment. 30 (3) Service factors such as: 19910H0678B0743 - 10 -
1 (i) The need for additional municipal services in 2 the territory proposed for detachment. 3 (ii) The ability and willingness of any detaching 4 municipality to provide municipal services to any 5 affected territory and the time period within which the 6 residents of such territory shall receive such services. 7 (iii) The extent to which any affected municipality 8 or territory is interdependent for municipal services 9 with others that are affected by the proposed detachment. 10 (4) The ability of any detaching municipality to assume 11 a share of the existing indebtedness and to purchase public 12 property, as provided in sections 333 and 507. 13 (5) The extent to which there are mutual community 14 interests in the territory proposed for annexation and in the 15 annexing municipality. 16 (b) Mandatory denial.--If the only reason set forth in the 17 annexation petition is the demand or promise of extension of 18 municipal services and within a reasonable period of time, as 19 established by the commission, the existing municipality 20 provides such services, then the commission shall deny the 21 petition for annexation. 22 Section 205. Findings of effect of detachment. 23 If the commission shall determine that a proposed detachment 24 shall seriously impair the ability of the remaining portion of 25 the municipality from which territory is proposed for detachment 26 to provide public services to its residents, the commission 27 shall take one of the following actions: 28 (1) Direct that there be no further action on the 29 original incorporation or annexation petition and initiate a 30 referendum in the affected municipalities for incorporation 19910H0678B0743 - 11 -
1 or consolidation of the entire area of the affected 2 municipalities. 3 (2) Recommend approval of the original petition for 4 annexation or incorporation with agreement that, before 5 passage of the annexation ordinance or before submitting the 6 question of incorporation to the electors of the 7 municipalities or parts of municipalities affected, 8 provisions shall be made for the remaining portion of the 9 municipality from which territory is proposed to be detached 10 to be either consolidated with or annexed to another 11 contiguous municipality. 12 (3) Disapprove the original petition for detachment. 13 Section 206. Commission panels. 14 (a) Submission of proposed changes.--All proposed boundary 15 changes shall be submitted to the commission. Notice of each 16 proposal shall be forwarded to the chairman of the commission, 17 who may then administratively assign the proposal to a panel 18 composed of not more than seven and not less than three members 19 of the commission who are not residents of the municipalities 20 affected. 21 (b) Action by commission.--The commission panel so appointed 22 or the commission as a whole will have the right to hold 23 hearings, conduct investigations and solicit the advice of 24 experts, citizens and officials involved. The panel will be 25 entitled to call such citizens as are available and to hear from 26 those persons within the panel's discretion. 27 (c) Remuneration of members.--The members of the panel and 28 commission shall be paid $100 per diem and other actual expenses 29 incurred when actually engaged in the performance of their 30 duties. 19910H0678B0743 - 12 -
1 (d) Employment of personnel.--The commission or panel may 2 employ the necessary administrative and clerical personnel or 3 utilize available existing personnel from the department for the 4 conduct of investigations, hearings and determinations. Any 5 salaried persons who are loaned to the commission by the 6 department will not be paid additional compensation except for 7 actual expenses which are incurred while attending these 8 functions, in which case they will be reimbursed. 9 Section 207. Costs of commission. 10 The cost of the functions of the commission in each 11 individual matter referred to it shall be equitably assessed by 12 the commission which in turn shall, as soon as it is assigned, 13 meet with the municipal officials involved and such other 14 persons who may have been involved in the initiation of the 15 question, after which the commission shall determine and advise 16 them as to the assessment of costs that the municipalities will 17 be expected to pay. 18 CHAPTER 3 19 ANNEXATION 20 SUBCHAPTER A 21 GENERAL PROVISIONS 22 Section 301. Procedure for annexation. 23 Annexation of contiguous territory may be accomplished by one 24 of the following methods: 25 (1) Petition to the commission, approval by the 26 commission and adoption of an ordinance by the annexing 27 municipality. 28 (2) Action of the governing bodies of the municipalities 29 affected. 30 (3) Initiative and referendum. 19910H0678B0743 - 13 -
1 SUBCHAPTER B 2 PETITION TO COMMISSION 3 Section 311. Petition to commission. 4 (a) Initiation of action.--An annexation may be initiated by 5 a petition signed by electors comprising at least 50% of the 6 number of electors voting for the office of Governor in the last 7 gubernatorial general election within the territory proposed for 8 annexation, or by the freeholders who represent at least 50% of 9 the assessed valuation of real property within the territory 10 proposed for annexation, as certified by the board or boards of 11 county commissioners. The petition must be submitted to the 12 commission. A majority in interest of owners of undivided 13 interests in any piece of property shall be deemed and treated 14 as one person for the purpose of ascertaining the number of 15 freeholders. The petition shall be accompanied by a resolution 16 of intent to annex the territory in question from the governing 17 body of the municipality to which the territory is proposed to 18 be annexed. Once the circulation of a petition has begun, the 19 petition shall be submitted to the commission within seven 20 weeks. Failure to do so within that prescribed time limit will 21 invalidate such petition. Presentation of a receipt indicating 22 that the petition was mailed by registered or certified mail on 23 or before the deadline date shall be evidence of timely filing. 24 (b) Form and contents of petition.--The petition for 25 annexation to be submitted to the commission shall be in such 26 form and shall contain such information as the commission may 27 require. 28 (c) Contents of resolution.--The resolution of intent to 29 annex shall include the following information: 30 (1) A statement that the municipality is willing to 19910H0678B0743 - 14 -
1 annex the territory described in the petition. 2 (2) A statement setting forth the plans of the 3 municipality for extending to the territory proposed for 4 annexation the municipal services performed within the 5 annexing municipality at the time of annexation. 6 Specifically, such plans shall: 7 (i) Conform to the standards of service as 8 determined by the commission. 9 (ii) Provide for extending or improving such 10 services to the territory proposed for annexation on the 11 effective date of annexation on substantially the same 12 basis and in the same manner as such services are 13 provided within the rest of the annexing municipality 14 prior to annexation. 15 (iii) Provide for extension or improvement of such 16 services into the territory proposed for annexation, so 17 that when such services are extended or improved, persons 18 in the territory proposed for annexation will be able to 19 secure such services, according to the policies in effect 20 in the annexing municipality for extending such services 21 to individual persons, lots or subdivisions. 22 (iv) Set forth a proposed timetable which provides 23 for the extension or improvement of such services as soon 24 as possible following the effective date of annexation. 25 (v) Set forth a method under which the annexing 26 municipality plans to finance extension or improvement of 27 such services into the territory proposed for annexation. 28 (3) A statement specifying a place or places within any 29 annexing municipality affected by the proposed annexation 30 where copies of the petition and the resolution of intent can 19910H0678B0743 - 15 -
1 be examined by interested individuals and public officials 2 for a period of at least 30 days following submission of the 3 petition to the commission. 4 Section 312. Notice of annexation proposal. 5 Within ten days after receipt of the petition, the commission 6 shall notify by certified mail the governing bodies of each 7 municipality affected, including the commissioners of each 8 county in which territory proposed for annexation is located. 9 Section 313. Study and report of petition for annexation. 10 The commission shall make a study of the petition for 11 annexation and shall submit its recommendations, within six 12 months after receipt of the petition, to the governing bodies of 13 the municipalities affected and the board or boards of county 14 commissioners of the territory affected by the proposed 15 annexation and by public notice in a newspaper of general 16 circulation in the affected area or areas that the 17 recommendations are available to any person on written request. 18 If the commission approves the proposed annexation, the annexing 19 municipality may complete the annexation by the passage of an 20 ordinance. 21 Section 314. Annexation of property of annexing municipality or 22 municipal authority created solely thereby. 23 Any municipality may annex by ordinance any land contiguous 24 thereto and owned by the annexing municipality or by a municipal 25 authority created solely by the annexing municipality. No 26 petition from freeholders or residents of the annexed area shall 27 be necessary to initiate the annexation procedure. 28 SUBCHAPTER C 29 ACTION BY GOVERNING BODIES 30 Section 321. Transfer or exchange of territory by agreement of 19910H0678B0743 - 16 -
1 adjacent municipalities. 2 Whenever the governing bodies of two adjacent municipalities 3 shall agree that it is to the best interest of each municipality 4 or that the convenience of the inhabitants thereof would best be 5 served thereby, territory or area may be transferred from one of 6 such adjacent municipalities to the other, or territory or area 7 may be exchanged between such two adjacent municipalities, upon 8 enactment of an ordinance to that effect by each of the two 9 municipalities, and change in the boundaries and territorial 10 limits of the said municipalities shall be affected thereby. No 11 petition from freeholders or residents shall be necessary to 12 initiate such transfer or exchange. 13 Section 322. Content of ordinances. 14 Every ordinance providing for annexation pursuant to this act 15 shall set forth a description of the territory or area to be 16 annexed and shall contain or have attached thereto a plot 17 showing the courses and distances of the boundaries of the 18 annexing municipality before and after the proposed change in 19 the boundaries or territorial limits thereof. 20 Section 323. Responsibilities of annexing municipality 21 following annexation. 22 Within 30 days after final enactment of any ordinance 23 effecting an annexation pursuant to this act, the governing body 24 of the annexing municipality shall perform all of the following 25 acts: 26 (1) Assign a distinctive designation to the annexed 27 territory or area, for use in referring thereto. 28 (2) File with the court of common pleas of the county a 29 certified copy of the ordinance by which the change was 30 effected, together with a plot showing the courses and 19910H0678B0743 - 17 -
1 distances of the boundaries of the annexing municipality 2 before and after the change and clearly indicating the 3 designation, as mentioned in paragraph (1), by which the 4 annexed area is to be known. If the territory or area annexed 5 and the annexing municipality are located in different 6 counties, such documents and information shall be filed with 7 the prothonotary of each of the counties. The change in 8 boundaries shall take effect 30 days after the date on which 9 such documents are filed in the county in which the annexing 10 municipality or the larger portion of the territory of the 11 annexing municipality is located, unless: 12 (i) That date is within 90 days prior to any 13 general, municipal or primary election, in which case the 14 change shall take effect as of the day following the 15 election. 16 (ii) An appeal is taken before the end of such 30- 17 day period, in which case such appeal shall act as a 18 supersedeas and such change shall take effect immediately 19 upon final determination and approval of such ordinance 20 by the court of common pleas. 21 (3) Give notice to the county board of elections of the 22 filing with the court of common pleas of the documents 23 mentioned in paragraph (2). 24 (4) File with the commission, the Legislative 25 Reapportionment Commission, Governor's Office of Policy 26 Development or its successor, the State Tax Equalization 27 Board, the Department of Community Affairs, the Department of 28 Education, the Department of Transportation and the court of 29 common pleas and the board of county commissioners of the 30 county or counties in which the municipalities affected are 19910H0678B0743 - 18 -
1 located a final report of the annexation. The final report 2 shall set forth: 3 (i) The name of the annexing municipality. 4 (ii) The area of the annexed territory in acres. 5 (iii) The total assessed valuation of the annexed 6 territory. 7 (iv) The approximate population of the annexed 8 territory. 9 (v) The designation, as mentioned in paragraph (1), 10 by which the annexed area is to be known. 11 Section 324. Appeals. 12 Within 30 days after the date of filing of any ordinance 13 effecting an annexation pursuant to this act, any freeholder of 14 the annexing municipality or of the municipality within which 15 the proposed territory to be annexed is located may appeal from 16 the ordinance to the court of common pleas of the county in 17 which the annexing municipality or the greater portion of the 18 territory of the annexing municipality is located. This appeal 19 shall be the exclusive method of appeal. The appeal shall be 20 taken by petition to the court of common pleas of the county in 21 which the annexing municipality is located and, in the case of 22 any annexing municipality located in more than one county, to 23 the court of common pleas of the county in which the greater 24 portion of the territory of the annexing municipality is 25 located. The appeal shall act as a supersedeas. When an appeal 26 is taken, the court shall fix a day for the hearing and shall 27 give notice of the hearing to all parties interested, in such 28 manner as the court shall direct. After the hearing, the court 29 shall determine whether the proceedings are in conformity with 30 this act and shall make an order or decree dismissing the appeal 19910H0678B0743 - 19 -
1 and approving the annexation or sustaining the appeal and 2 dismissing the annexation. From any final order or decree, any 3 party in interest, aggrieved by the order or decree, may appeal 4 to the Commonwealth Court. Upon final determination and approval 5 of the ordinance by the court of common pleas or by the 6 Commonwealth Court, the annexation shall take effect 7 immediately. 8 SUBCHAPTER D 9 INITIATIVE AND REFERENDUM 10 Section 331. Annexation by initiative and referendum. 11 (a) General rule.--As an alternative to annexation by the 12 other procedures set forth in this act, annexation by initiative 13 and referendum, as governed by this section, may be effected in 14 any municipality without the approval of any governing body and 15 without enactment of any ordinance. 16 (b) Initiation of referendum.--The referendum shall be 17 initiated by: 18 (1) Filing with the county board of elections of the 19 county in which the territory proposed to be annexed is 20 located, on or before the 13th Tuesday before the next 21 primary, municipal or general election, a petition for 22 referendum signed by electors comprising 5% of the number of 23 electors voting for the office of Governor in the last 24 gubernatorial general election in the municipality within 25 which the proposed territory to be annexed is located. 26 (2) Filing with the county board of elections of the 27 county in which the annexing municipality, or the greater 28 portion of the territory thereof, is located, on or before 29 the 13th Tuesday before the next primary, municipal or 30 general election, a petition for referendum signed by 19910H0678B0743 - 20 -
1 electors comprising 5% of the number of electors voting for 2 the office of Governor in the last gubernatorial general 3 election in the annexing municipality. 4 (c) Contents of petition.--The petition and proceedings 5 therein shall be in the manner and subject to the provisions of 6 the election law which relate to the signing, filing and 7 adjudication of nomination petitions insofar as such provisions 8 are applicable, except that no referendum petition shall be 9 signed or circulated prior to the 20th Tuesday before the 10 election, nor later than the 13th Tuesday before the election. 11 (d) Review.--When the applicable election officials find 12 that the petition, as submitted, is in proper order, they shall 13 send copies of the initiative petition without the signatures to 14 the governing bodies of both the annexing municipality and the 15 municipality within which the proposed territory to be annexed 16 is located and to the commission. 17 (e) Ballot placement.--The applicable election official 18 shall place the proposal for such annexation on the ballot in 19 both the annexing municipality and the municipality within which 20 the proposed territory to be annexed is located in a manner 21 fairly representing the content of the petition for decision by 22 referendum at the next primary, municipal or general election, 23 occurring not less than the 13th Tuesday after the filing of 24 such petition. 25 (f) Election returns.--If there shall be a favorable vote in 26 such referendum in both the annexing municipality and the 27 municipality within which the proposed territory to be annexed 28 is located, the annexation shall become effective upon 29 certification by the county board of elections of the county or 30 counties involved in the vote. If the vote shall fail in either 19910H0678B0743 - 21 -
1 the annexing municipality, the municipality in which the 2 territory or area is to be annexed, or both, the question of 3 annexation described in the annexation proposal shall not be 4 voted on again for a period of five years. 5 Section 332. Distribution of annexed territory among wards. 6 (a) Municipalities where governing body members not elected 7 at large.--In the case of an annexing municipality with a 8 governing body not elected entirely at large, the governing body 9 of the annexing municipality shall, within 30 days after the 10 effective date of the annexation, petition the court of common 11 pleas of the county in which the annexed territory is located 12 requesting: 13 (1) The assignment of the annexed territory to one or 14 more designated wards of the annexing municipality. 15 (2) The distribution of the annexed territory among the 16 wards of the annexing municipality. 17 (3) The creation of one or more new wards out of the 18 annexed territory. 19 The court shall make the necessary decree which shall include 20 establishing or changing election districts to conform to new 21 ward lines and shall furnish a copy of the decree to the 22 governing body of the annexing municipality, the county board of 23 elections of the county in which the annexing municipality is 24 located, the county board of elections of the county in which 25 the annexed territory is located, the school district in which 26 the ward or wards are located, the Secretary of the 27 Commonwealth, the Secretary of Community Affairs and the 28 Legislative Reapportionment Committee. 29 (b) New wards created.--In case one or more new wards is 30 created in the annexing municipality, the decree of the court 19910H0678B0743 - 22 -
1 shall state the number by which each new ward is to be 2 designated and shall contain a plan and schedule for the 3 appointment or election of the first members of the governing 4 body of the annexing municipality from each of the new wards so 5 that, either immediately or after a transitional period, the 6 election and tenure of the members of the governing body from 7 the new odd-numbered wards and the new even-numbered wards, as 8 the case may be, shall conform to those of the existing odd- 9 numbered wards and even-numbered wards in the annexing 10 municipality. 11 Section 333. Adjustment of indebtedness, assets and liabilities 12 following annexation. 13 (a) Adjustment.--Following any annexation of territory, the 14 governing body of the annexing municipality and the governing 15 body of the municipality from which the territory was annexed 16 shall make a proper adjustment and apportionment between them of 17 all indebtedness, assets and liabilities of the annexed 18 municipality at the time of the annexation. The adjustment and 19 apportionment shall provide that the annexing municipality and 20 the municipality from which the territory or area was annexed 21 shall be entitled to share in a division of the assets, 22 liabilities and indebtedness in the proportion that the assessed 23 valuation, as determined by the county board for the assessment 24 and revision of taxes, of the annexed portion of the 25 municipality from which the territory or area was annexed bears 26 to the assessed valuation of the entire municipality from which 27 the territory was annexed immediately prior to the annexation. 28 (b) Assumption by annexing municipality.--Where indebtedness 29 was incurred by the municipality from which the territory or 30 area was annexed for an improvement located wholly within the 19910H0678B0743 - 23 -
1 limits of the territory or area annexed, that indebtedness shall 2 be assumed by the annexing municipality and where any part of an 3 improvement is located within the limits of the annexed 4 territory or area, the part of the indebtedness representing 5 that part of the improvement shall be assumed by the annexing 6 municipality; and the adjustment and apportionment of any 7 remaining indebtedness of the municipality from which the 8 territory or area was annexed shall be made as provided in this 9 subsection. 10 (c) Written document.--The adjustment and apportionment of 11 assets, liabilities and indebtedness shall be reduced to 12 writing, shall be executed and acknowledged by the clerk or 13 secretary of the annexing municipality and shall be filed with 14 the prothonotary of the county or counties in which any 15 municipality affected is located and a copy shall be filed with 16 the department. 17 Section 334. Judicial adjustment on failure of agreement. 18 When the governing bodies of the municipalities affected 19 cannot, within six months after the annexation becomes 20 effective, arrive at the adjustment and apportionment of 21 indebtedness, assets and liabilities, as required by section 22 333, the governing body, a citizen, or a property owner of any 23 of the municipalities affected may appeal to the court of common 24 pleas of the county in which the annexing municipality, or the 25 greater portion of its territory or area, is located. The court 26 shall then appoint three disinterested commissioners who shall 27 be residents and taxpayers of the county and who shall not be 28 residents or owners of real estate in the municipalities 29 affected. Those commissioners, after hearing, notice of which 30 shall be given to the municipalities affected as directed by the 19910H0678B0743 - 24 -
1 court, shall proceed to make the apportionment and adjustment 2 and shall report to the court, stating the amount, if any, that 3 shall be due and payable from one municipality affected to 4 another, as well as the amount of indebtedness, if any, that 5 shall be assumed by the municipality affected, or both. 6 Section 335. Proceedings on judicial adjustment. 7 The commissioners appointed under the terms of section 334 8 shall give the affected municipalities at least five days' 9 notice of the filing of their report. Unless exceptions to the 10 report are filed within 30 days after the date when it was 11 filed, the report shall be confirmed absolutely by the court. 12 Any sum awarded by the report to any municipality shall be a 13 legal and valid claim in its favor against the other 14 municipality. Any real or personal property awarded to any 15 municipality shall become its property. Any claim of 16 indebtedness charged against a municipality may be collected 17 from that municipality by its creditors. 18 Section 336. Exceptions to report. 19 In case exceptions are filed to the report of the 20 commissioners appointed pursuant to section 334, the court shall 21 dispose of the same, taking testimony if deemed advisable. The 22 court shall enter its decree confirming or modifying the report 23 of the commissioners, as to the court appears just and proper. 24 The decision of the court shall be final unless an appeal is 25 taken to the Commonwealth Court as provided by law. 26 Section 337. Compensation and expenses of commissioners. 27 The court-appointed commissioners shall be allowed such 28 compensation and expenses for their services as the court shall 29 fix. The costs of the proceedings, including the compensation 30 and expenses of the commissioners, shall be apportioned among 19910H0678B0743 - 25 -
1 the municipalities involved as the court deems proper and 2 equitable. 3 Section 338. Annexing municipality located in two or more 4 counties. 5 In case the territory or area of an annexing municipality is 6 located in two or more counties, the court of common pleas of 7 the county in which the greater portion of the territory or area 8 of the annexing municipality is located shall have exclusive 9 jurisdiction over the proceedings to determine the cost of 10 certain improvements in the annexed territory or area and to 11 adjust and apportion the indebtedness among the municipalities 12 affected. 13 Section 339. Liquidation of indebtedness. 14 (a) Court orders.--The court shall make all necessary orders 15 for the collection by any municipality affected and payment by 16 it to any other municipality affected of its share of any 17 indebtedness apportioned to it. The order may direct that the 18 municipality against which the indebtedness was apportioned levy 19 and collect special taxes for one year or pay by annual 20 installments over a stated period of time, the amount needed to 21 liquidate the indebtedness. 22 (b) Interest-bearing notes.--If acceptable to the 23 municipality to which money is owed, the other municipality 24 shall have the power to issue and deliver interest-bearing notes 25 in liquidation of the indebtedness. 26 Section 340. Collection of taxes levied prior to annexation. 27 All taxes assessed and levied against property in the annexed 28 territory or area prior to the effective date of the annexation 29 shall be paid to the municipality from which the territory or 30 area has been annexed and the collection and enforcement shall 19910H0678B0743 - 26 -
1 be as though the annexation had not taken place. 2 Section 341. Authorized expenditures. 3 Municipalities initiating annexations under the provisions of 4 this act are authorized to make expenditures for surveys 5 required to describe the property under consideration or for any 6 other purpose necessary to plan for the study or annexation of 7 territory or area adjacent to the municipality. 8 Section 342. Crossing county lines. 9 When the municipalities affected are located in different 10 counties, the county board of elections and the court of common 11 pleas in the county where the annexing municipality is located 12 shall furnish all information relating to an annexation to their 13 counterparts in the other county or counties concerned. 14 Section 343. Election districts and officers. 15 Except as provided in section 332, all election districts in 16 the annexed territory shall remain as constituted before the 17 annexation and shall become election districts of the annexing 18 municipality until changed in accordance with the act of June 3, 19 1937 (P.L.1333, No.320), known as the Pennsylvania Election 20 Code. All election district officers shall continue in office 21 until the expiration of their terms, unless the office is 22 vacated. 23 CHAPTER 4 24 CONSOLIDATION OR MERGER 25 Section 401. Procedure for consolidation or merger. 26 (a) Authority.--Two or more municipalities may be 27 consolidated or merged as provided in this chapter into a single 28 municipality, whether situated in the same county or in two or 29 more different counties, if each of the municipalities is 30 contiguous to at least one of the other consolidating or merging 19910H0678B0743 - 27 -
1 municipalities, and if together the municipalities would form a 2 consolidated or merged municipality. 3 (b) Method.--Consolidation or merger may be commenced by one 4 of the following methods: 5 (1) Joint agreement of the governing bodies of the 6 municipalities proposed for consolidation or merger as 7 approved by ordinance. 8 (2) Initiative of electors. 9 (3) The commission. 10 Section 402. Joint agreement of governing bodies. 11 (a) General rule.--The governing bodies of each municipality 12 to be consolidated or merged shall enter into a joint agreement 13 under the official seal of each municipality to consolidate or 14 merge into one municipality. 15 (b) Elements.--The joint agreement shall set forth: 16 (1) The names of each municipality that is party to the 17 agreement. 18 (2) The name and the territorial boundaries of the 19 consolidated or merged municipality. 20 (3) The type and class of the consolidated or merged 21 municipality. 22 (4) Whether the consolidated or merged municipality 23 shall be governed solely by the code and other general laws 24 applicable to the kind and class of the consolidated or 25 merged municipality or whether it is to be governed by a home 26 rule charter or an optional plan of government having 27 previously been adopted by one of the consolidating or 28 merging municipalities. 29 (5) The number of wards, if any, into which the 30 consolidated or merged municipality is to be divided for the 19910H0678B0743 - 28 -
1 purpose of electing all or some of the members of the 2 municipal governing body. 3 (6) Terms for: 4 (i) The disposition of existing assets of each 5 municipality. 6 (ii) The liquidation of existing indebtedness of 7 each municipality. 8 (iii) The assumption, assignment or disposition of 9 existing liabilities of each municipality, either 10 jointly, separately or in certain defined proportions, by 11 separate rates of taxation within each of the constituent 12 municipalities until consolidation or merger becomes 13 effective pursuant to section 407. 14 (iv) The implementation of a legally consistent 15 uniform tax system throughout the consolidated or merged 16 municipality which provides revenue necessary to fund 17 required municipal services. 18 (7) The governmental organization of the consolidated or 19 merged municipality insofar as it concerns elected officers. 20 There shall be a transitional plan and schedule applicable to 21 elected officers. The transitional plan shall provide for the 22 abolition of the elected officers of each component 23 municipality and the termination of the terms of the office 24 of the elected officials of each municipality and for the 25 election of the first officers of the consolidated or merged 26 municipality so that election and tenure shall conform to 27 those in other municipalities of the same kind and class in 28 this Commonwealth with properly staggered terms where those 29 are required or desired. 30 (8) The common administration and enforcement of 19910H0678B0743 - 29 -
1 ordinances enforced uniformly within the consolidated or 2 merged municipality. 3 Section 403. Initiative of electors. 4 (a) General rule.--In order for consolidation or merger 5 proceedings to be initiated by petition of electors, petitions 6 containing signatures of at least 5% of the electors voting for 7 the office of Governor in the last gubernatorial general 8 election in each municipality proposed to be consolidated or 9 merged shall be filed with the county board of elections of the 10 county in which the municipality, or the greater portion of the 11 territory or area thereof, is located. 12 (b) Notice to governing bodies affected.--When the 13 applicable election officials find that a petition is in proper 14 order, they shall send copies of the initiative petition without 15 the signatures thereon to the governing bodies of each of the 16 municipalities affected by the consolidation or merger. 17 (c) Contents.--A petition shall set forth: 18 (1) The name of the municipality from which the signers 19 of the petition were obtained. 20 (2) The names of the municipalities proposed to be 21 consolidated or merged. 22 (3) The name of the consolidated or merged municipality. 23 (4) The type and class of the consolidated or merged 24 municipality. 25 (5) Whether the consolidated or merged municipality 26 shall be governed solely by the code and other general laws 27 applicable to the kind and class of the consolidated or 28 merged municipality, or whether it is to be governed by a 29 home rule charter or an optional plan of government having 30 previously been adopted by one of the consolidated or merged 19910H0678B0743 - 30 -
1 municipalities. 2 (6) The number of wards, if any, into which the 3 consolidated or merged municipality will be divided for the 4 purpose of electing all or some of the members of the 5 municipal governing body. 6 (d) Time limitation.--The consolidation or merger petition 7 shall be filed with the election officials not later than the 8 13th Tuesday prior to the next primary, municipal or general 9 election. The petition and proceedings therein shall be in the 10 manner and subject to the provisions of the election laws which 11 related to the signing, filing and adjudication of nomination 12 petitions insofar as such provisions are applicable except that 13 no referendum petition shall be signed or circulated prior to 14 the 20th Tuesday before the election, nor later than the 13th 15 Tuesday before the election. 16 Section 404. Initiation by petition to commission. 17 (a) General rule.--Petitions may be submitted to the 18 commission. The petition shall contain signatures of at least 5% 19 of the electors voting for the office of Governor in the last 20 gubernatorial general election in each municipality requesting, 21 consolidating or merging. 22 (b) Content.--Every petition shall set forth: 23 (1) The name of the municipality from which the signers 24 of the petition were obtained. 25 (2) The names of the municipalities proposed to be 26 consolidated or merged. 27 (3) The name of the consolidated or merged municipality. 28 (4) The type and class of the consolidated or merged 29 municipality. 30 (5) Whether the consolidated or merged municipality 19910H0678B0743 - 31 -
1 shall be governed solely by the code and other general laws 2 applicable to the kind and class of the consolidated or 3 merged municipality, or whether it is to be governed by a 4 home rule charter or an optional plan of government having 5 previously been adopted by one of the consolidated or merged 6 municipalities. 7 (6) The number of wards, if any, into which the 8 consolidated or merged municipality will be divided for the 9 purpose of electing some or all of the members of the 10 municipal governing body. 11 (c) Time limitations.--Once the circulation of a petition 12 has begun, the petition shall be submitted to the commission 13 within seven weeks. Failure to do so within the prescribed time 14 limit shall invalidate the petition. Presentation of a receipt 15 indicating that the petition was mailed by registered or 16 certified mail on or before the deadline date shall be evidence 17 of timely filing. 18 (d) Review by commission.--Whenever such petitions shall 19 have been received by the commission, the commission shall take 20 all necessary steps to place such referendum question before the 21 electors of the municipalities proposed to be so consolidated or 22 merged. Such steps may include: 23 (1) A study of the consolidation or merger proposal. 24 (2) Advising citizens and officials on any and all 25 matters pertaining thereto. 26 (3) Holding meetings or conferences in any of the 27 municipalities proposed to be consolidated or merged. 28 All studies, meetings and assistance by the commission shall be 29 completed within six months after receipt of the petitions 30 received from municipalities involved in a specific 19910H0678B0743 - 32 -
1 consolidation or merger proposal. The completion date shall be 2 attested by the chairman of the commission in a document to be 3 filed with the Secretary of the Commonwealth. 4 Section 405. Conduct of referenda. 5 (a) Referendum.--Following initiation of proceedings for 6 consolidation or merger by the procedures set forth in either 7 section 402, 403 or 404, the question of the consolidation or 8 merger shall be placed before the electors of each of the 9 municipalities proposed to be so consolidated or merged. A 10 referendum shall be held at the first primary, municipal or 11 general election held not less than the 13th Tuesday after any 12 of the following: 13 (1) The date of the general agreement entered into under 14 the provisions of section 402. 15 (2) The date of filing of the petition filed under the 16 provisions of section 403. 17 (3) The date of completion of the work of the commission 18 under the provisions of section 404. 19 (b) Approval.--The consolidation or merger shall not be 20 effective unless the referendum question is approved by a 21 majority of electors voting in each of the municipalities in 22 which the referendum is held. If in any one of the 23 municipalities in which the referendum is held a majority in 24 favor of such consolidation or merger does not result, the 25 referendum shall fail and the consolidation or merger shall not 26 take place. The question described in the merger or 27 consolidation proposal shall not be voted on again for a period 28 of five years. 29 (c) Further studies.--If the electors of two or more 30 contiguous municipalities proposed for consolidation or merger 19910H0678B0743 - 33 -
1 shall approve the consolidation or merger, but one or more of 2 the municipalities shall fail to approve, the commission may 3 make a study of the feasibility of consolidation or merger of 4 those municipalities approving the proposal and, in its 5 discretion may initiate a local referendum for the consolidation 6 or merger of such municipalities at the next primary, municipal 7 or general election but not less than the 13th Tuesday after the 8 commission has submitted its study to the local governing bodies 9 of the municipalities involved. 10 Section 406. Consolidation or merger agreement. 11 (a) Form.--Upon favorable action by the electorate on 12 consolidation or merger, in cases where consolidation or merger 13 was initiated other than by joint agreement of the governing 14 bodies under section 402, the governing bodies of the 15 municipalities to be consolidated or merged into a single 16 municipality shall meet within 60 days after the certification 17 of the favorable vote and shall make a consolidation or merger 18 agreement as follows: 19 (1) If the governing body, or part of the governing 20 body, of the consolidated or merged municipality is to be 21 elected on a ward basis, the agreement shall set forth the 22 boundaries and the ward designation, by number of each ward, 23 and the number of members of the municipal governing body to 24 be elected from each ward. 25 (2) The agreement shall set forth those terms for: 26 (i) The disposition of the existing assets of each 27 municipality. 28 (ii) The liquidation of the existing indebtedness of 29 each municipality. 30 (iii) The assumption, assignment and disposition of 19910H0678B0743 - 34 -
1 the existing liabilities of each municipality, either 2 jointly, separately or in certain defined proportions, by 3 separate rates of taxation within each of constituent 4 municipalities until consolidation or merger becomes 5 effective under section 407. 6 (3) The agreement shall set forth the governmental 7 organization of the consolidated or merged municipality, 8 insofar as it concerns elected officers, and shall contain a 9 transitional plan and schedule applicable to elected 10 officers. The agreement shall provide for the abolition of 11 elected offices and for the termination of the terms of 12 office of elected officers of each municipality being merged 13 or consolidated, and the election of the first officers of 14 the consolidated or merged municipality so that election and 15 tenure shall conform to those in other municipalities of the 16 same kind and class in the Commonwealth, with properly 17 staggered terms, where those are required or desired. 18 (4) The agreement shall provide for common 19 administration and enforcement of ordinances to be enforced 20 uniformly within the consolidated or merged municipality. 21 (5) The agreement shall also provide, consistent with 22 existing law, for the implementation of a uniform tax system 23 throughout the consolidated or merged municipality which 24 shall provide the revenues necessary to fund required 25 municipal services. 26 (b) Filing.--A copy of the consolidation or merger agreement 27 shall be filed with the commission, the Legislative 28 Reapportionment Commission, the Governor's Office of Policy 29 Development or its successor, the State Tax Equalization Board, 30 the Department of Community Affairs, the Department of 19910H0678B0743 - 35 -
1 Education, the Department of Transportation, the court of common 2 pleas and the board of county commissioners of the county or 3 counties in which municipalities affected are located. 4 Section 407. Effectuation of consolidation or merger. 5 (a) Election of officers.--Municipalities so consolidated or 6 merged shall continue to be governed as before consolidation or 7 merger until the first Monday of January following the municipal 8 election next succeeding the election at which consolidation or 9 merger referenda were held. At that municipal election, the 10 necessary officers of the consolidated municipality shall be 11 elected in accordance with the terms of the general law 12 affecting municipalities of the kind or class of the 13 consolidated or merged municipality, or, in case of a 14 consolidated or merged municipality operating under a home rule 15 charter or optional plan of government, in accordance with the 16 charter or optional plan or with general law affecting home rule 17 or optional plan municipalities, as applicable. 18 (b) Terms.--The officers elected at that municipal election 19 shall be elected for terms of office under the plan and schedule 20 set out in the consolidation or merger agreement authorized by 21 section 402 or 406, as the case may be. They shall take office 22 as officers of the consolidated or merged municipality on the 23 first Monday of January following the municipal election at 24 which they were elected, and, thereupon, the consolidated or 25 merged municipality shall begin to function and the former 26 municipalities consolidated or merged shall be abolished. 27 Section 408. Effect of transition on employees of consolidated 28 or merged municipality. 29 As of the date when a consolidated or merged municipality 30 shall begin to function, except for those officers and employees 19910H0678B0743 - 36 -
1 which are protected by any tenure of office, civil service 2 provision or collective bargaining agreement, all appointive 3 offices and positions then existing in all former municipalities 4 involved in the consolidation or merger shall be disposed of in 5 accordance with the terms of the consolidation or merger 6 agreement. Provisions shall be made for instances in which there 7 is duplication of positions, including, but not limited to, 8 chief of police or manager, and for such other matters as 9 varying length of employee contracts, different civil service 10 regulations in the constituent municipalities and differing 11 ranks and position classifications for similar positions. 12 Section 409. Procedures. 13 (a) Ordinance book.--After consolidation or merger becomes 14 effective, a new ordinance book shall be used by the 15 municipality and the first document to be recorded in it shall 16 be the consolidation or merger agreement. 17 (b) Ordinance codification.--No later than two years after 18 the consolidation or merger goes into effect, codification of 19 all the ordinances of the constituent municipalities shall be 20 completed. This shall include tabulation or indexing of those 21 ordinances of the component municipalities that are of permanent 22 effect in the consolidated or merged municipalities. 23 (c) Vesting of rights, privileges, property and 24 obligations.--All rights, privileges and franchises of each 25 component municipality and all property, real, personal and 26 mixed, belonging to each component municipality shall be vested 27 in the consolidated or merged municipality. The title to real 28 estate vested in any of those municipalities shall not revert or 29 be in any way impaired by reason of the consolidation or merger. 30 All rights of creditors and liens shall be preserved. Agreements 19910H0678B0743 - 37 -
1 and contracts shall remain in force. Debts, liabilities and 2 duties of each of the municipalities shall be attached to the 3 consolidated or merged municipality and may be enforced against 4 it. 5 CHAPTER 5 6 INCORPORATION 7 Section 501. Procedure for incorporation. 8 A municipality may be incorporated by initiative and 9 referendum from contiguous territory of all or part of an 10 existing municipality or municipalities. Incorporation proposals 11 which include a part of a municipality shall receive the 12 approval of the commission before they are submitted for 13 referendum. 14 Section 502. Petition for incorporation. 15 (a) Submission and signatures.--The petition for 16 incorporation of a municipality shall be submitted to the 17 commission. The petition shall be signed by: 18 (1) Electors comprising at least 5% of the electors in 19 each municipality, respectively, voting for the Office of 20 Governor in the last gubernatorial general election within 21 each municipality proposed for incorporation. 22 (2) The freeholders in each municipality or part thereof 23 who represent at least 50% of the assessed valuation of real 24 property within each municipality or part thereof proposed 25 for incorporation, as certified by the board or boards of 26 county commissioners. A majority in interest of owners of 27 undivided interests in any piece of property shall be deemed 28 and treated as one person for the purpose of ascertaining the 29 number of freeholders. 30 (b) Time limitation.--Once the circulation of a petition has 19910H0678B0743 - 38 -
1 begun, the petition shall be submitted to the commission within 2 seven weeks. Failure to do so within the prescribed time limit 3 shall invalidate the petition. Presentation of a receipt 4 indicating that the petition was mailed by registered or 5 certified mail on or before the deadline date shall be evidence 6 of timely filing. 7 Section 503. Incorporation petition. 8 The petition for incorporation to the commission shall be in 9 such form and shall contain such information as the commission 10 may require. 11 Section 504. Study and report on petition for incorporation. 12 The commission shall make a study of the petition for 13 incorporation and shall submit its recommendations, within six 14 months after receipt of the petition, to the person in each 15 municipality who submitted the petition, to the governing bodies 16 of the municipalities affected and to the board or boards of 17 county commissioners of the territory affected by the proposed 18 incorporation. 19 Section 505. Incorporation election. 20 (a) Submission of question.--The commission shall cause a 21 question relating to the proposed incorporation to be submitted 22 to the electorate of the territory or area proposed for 23 incorporation. The commission shall not cause to be submitted 24 for referendum any incorporation proposal affecting less than an 25 entire municipality unless the proposal has been approved by the 26 commission. 27 (b) Conduct of election.--The election shall be held at the 28 next primary, municipal or general election not less than the 29 13th Tuesday after the commission has requested the appropriate 30 county board or boards of elections to place the question on the 19910H0678B0743 - 39 -
1 ballot. The election shall be conducted under the provisions of 2 the act of June 3, 1937 (P.L.1333, No.320), known as the 3 Pennsylvania Election Code. In the case of a referendum on the 4 incorporation of territory not constituting an entire existing 5 municipality or one or more entire existing wards, the county 6 board of elections shall prescribe the procedure to be followed. 7 (c) Election return.--If a majority of the electors voting 8 on such question in each of the municipalities affected shall 9 vote in favor of such incorporation or, where a proposal 10 affecting less than an entire municipality has been approved by 11 the commission, if a majority of the electors voting upon such 12 question in the territory proposed for incorporation shall vote 13 in favor of such incorporation, it shall be deemed final. 14 (d) Certification.--Certification of the vote favorable to 15 incorporate shall be made by the county board of elections to 16 the governing bodies of the municipalities affected, to the 17 appropriate board or boards of county commissioners and to the 18 commission. 19 (e) Failure of proceeding.--If the incorporation proposal 20 includes either all or part of two or more municipalities and if 21 a majority of the persons voting on such question in the area or 22 territory affected by an incorporation in any one of the 23 municipalities affected shall vote against such incorporation, 24 then the incorporation proceedings shall fail. If the referendum 25 on incorporation proceedings shall fail, the question of 26 incorporation of territory described in the incorporation 27 proposal shall not be voted on again for a period of five years. 28 Section 506. Effectuation of incorporation. 29 (a) Effective date.--Incorporation shall become effective on 30 the first Tuesday after the first Monday in January following 19910H0678B0743 - 40 -
1 the next succeeding municipal election or special election held 2 in conjunction with any primary, general or municipal election 3 at which local officials of the new municipality shall be 4 elected. At the request of the petitioners, the special election 5 may be called for by the court of common pleas which shall fix 6 the time, place and manner of holding the special election which 7 shall be in conjunction with any primary, general or municipal 8 election. 9 (b) Terms of office.--Municipal officers chosen at a special 10 election shall serve until the first Tuesday after the first 11 Monday in January following the next succeeding municipal 12 election at which time their successors shall be elected in 13 accordance with the laws covering the election of municipal 14 officials of the type and class of municipality to which the new 15 incorporated municipality belongs. 16 (c) Governing law.--The municipal election at which said 17 officials are to be elected shall be held in accordance with the 18 laws governing municipal officials of the type and class of 19 municipality to which the incorporated municipality belongs. The 20 election of municipal officials shall be such as to provide for 21 staggering terms of office as closely in compliance as possible 22 with the governing municipal code. 23 (d) Appointment of officials.--The municipal election shall 24 not be held before the 13th Tuesday after certification of the 25 favorable vote to incorporate. The court of common pleas having 26 jurisdiction shall appoint from among the electors of the newly 27 incorporated municipality a judge and inspector to hold the 28 election. 29 (e) Existence of incorporated municipality terminates old 30 municipality.--When the incorporated municipality shall go into 19910H0678B0743 - 41 -
1 effect, the former municipality or municipalities shall cease to 2 exist in every case in which the entire territory of a 3 municipality or municipalities has been included in the 4 incorporated municipality. 5 Section 507. Assets, liabilities and indebtedness where entire 6 municipality incorporated as new municipality. 7 Where an entire municipality shall be incorporated as a newly 8 created municipality, all assets of the former municipality 9 shall become assets of and property of the incorporated 10 municipality, all indebtedness of the former municipality shall 11 be assumed by the incorporated municipality and all liabilities 12 of the former municipality shall become liabilities of the 13 incorporated municipality. 14 Section 508. Adjustment of assets, liabilities and indebtedness 15 where part of municipality becomes incorporated 16 municipality. 17 (a) Adjustment.--Following any incorporation of part of the 18 territory or area of a municipality as a newly incorporated 19 municipality, the governing body of the newly incorporated 20 municipality and the governing body of the municipality from 21 which territory was incorporated shall make a proper adjustment 22 and apportionment between the two municipalities of all 23 indebtedness, assets and liabilities of the municipality from 24 which territory was incorporated, as of the time of 25 incorporation. The adjustment and apportionment shall provide 26 that both the new municipality and the municipality from which 27 an incorporation occurred shall be entitled to share in a 28 division of the assets, liabilities and indebtedness in the 29 proportion that the assessed valuation of the newly incorporated 30 municipality, as determined by the county board for the 19910H0678B0743 - 42 -
1 assessment and revision of taxes, bears to the assessed 2 valuation, as so determined, of the original municipality the 3 year immediately prior to the incorporation. 4 (b) Assumption by incorporating municipality.--Where 5 indebtedness was incurred by the municipality from which the new 6 municipality was incorporated for an improvement located wholly 7 within the newly incorporated municipality, that indebtedness 8 shall be assumed by the newly incorporated municipality. Where 9 any part of an improvement is located within the limits of the 10 newly incorporated municipality, the part of the indebtedness 11 representing that part of the improvement shall be assumed by 12 the newly incorporated municipality, and apportionment of any 13 remaining indebtedness of the original municipality shall be 14 made as provided in subsection (a). 15 (c) Written document.--The adjustment and apportionment of 16 the assets, liabilities and indebtedness shall be reduced to 17 writing, shall be executed and acknowledged by the clerk or 18 secretary of the newly incorporated municipality and shall be 19 filed with the prothonotary of the county or counties in which 20 the two municipalities are located and copies shall be filed 21 with the commission, the Legislative Reapportionment Commission, 22 the Governor's Office of Policy Development or its successor, 23 the State Tax Equalization Board, the Department of Community 24 Affairs, the Department of Education, the Department of 25 Transportation and the court of common pleas and the board of 26 county commissioners of the county or counties in which the two 27 municipalities are located. 28 Section 509. Judicial adjustment on failure of agreement. 29 (a) Appeal to court.--In case the governing bodies of the 30 newly incorporated municipality and the municipality from which 19910H0678B0743 - 43 -
1 territory was incorporated cannot, within six months after the 2 incorporation becomes effective, arrive at the adjustment and 3 apportionment of the indebtedness, assets and liabilities, 4 pursuant to section 507, the governing body, a citizen or a 5 property owner of any of the municipalities affected may appeal 6 to the court of common pleas of the county in which the 7 municipality from which territory was incorporated or the 8 greater portion of the area of that municipality is located. 9 (b) Appointment of commissioners.--The court shall thereupon 10 appoint three disinterested commissioners, who shall be 11 residents and taxpayers of the county and who shall not be 12 residents or owners of real estate in either the newly 13 incorporated municipality or the municipality from the territory 14 of which that municipality was incorporated. The commissioners, 15 after hearing, notice of which shall be given to both interested 16 municipalities as directed by the court, shall proceed to make 17 the apportionment and adjustment and shall report to the court 18 stating the amount, if any, that shall be due and payable from 19 the newly incorporated municipality to the municipality from 20 which it was incorporated or from the municipality from which 21 the new municipality was incorporated, as well as the amount of 22 indebtedness, if any, that shall be assumed by the newly 23 incorporated municipality or the municipality from which it was 24 incorporated or both of them. 25 Section 510. Proceedings on judicial adjustment. 26 (a) Notice.--The commissioners shall give the incorporating 27 municipality and the municipality from which territory was 28 incorporated at least 15 days' notice of the filing of their 29 report. Unless exceptions to the report are filed, the report 30 shall be confirmed absolutely by the court. Any sum awarded by 19910H0678B0743 - 44 -
1 the court to the incorporating municipality or to the 2 municipality from which territory has been incorporated shall be 3 a legal and valid claim in its favor against the municipality 4 charged therewith. Any property, real or personal, given to the 5 incorporating municipality or to the municipality from which 6 territory has been incorporated shall become its property. Any 7 claim or indebtedness charged against the incorporating 8 municipality or the municipality from which territory has been 9 incorporated shall be paid within one year from the date of 10 confirmation absolute. 11 (b) Exceptions.--If exceptions are filed to the report of 12 the commissioners, the court shall dispose of the exceptions and 13 enter its decree or modify the same as it appears just and 14 proper. 15 Section 511. Compensation and expenses of commissioners. 16 The appointed commissioners shall be allowed such 17 compensation and expenses for their services as the court shall 18 fix. The compensation and expenses shall be paid to the 19 commissioners for days on which they are actually engaged in the 20 performance of their duties. The costs of the proceedings, 21 including the compensation and expenses of the commissioners, 22 shall be apportioned between the newly incorporated municipality 23 and the municipality from which territory has been incorporated 24 as it deems proper and equitable. 25 Section 512. Incorporating municipality located in two or more 26 counties. 27 If the territory of the newly incorporated municipality is 28 located in two or more counties, the court of common pleas of 29 the county in which the greater portion of the territory of the 30 newly incorporated municipality is located shall have exclusive 19910H0678B0743 - 45 -
1 jurisdiction over the proceedings to determine the cost of 2 certain improvements in the territory incorporated and to adjust 3 and apportion the indebtedness between the incorporating 4 municipality and the municipality from which territory has been 5 incorporated. 6 Section 513. Liquidation of indebtedness. 7 (a) Court orders.--The court may make all necessary orders 8 for the collection by the newly incorporated municipality or by 9 the municipality from which territory was incorporated, as the 10 case may be, and payment by it to the other municipality, of its 11 share of any indebtedness apportioned to it. The order may 12 direct the municipality against which the indebtedness was 13 apportioned to levy and collect special taxes for one year or 14 pay by annual installments over a stated period of time the 15 amount needed to liquidate the indebtedness. 16 (b) Interest-bearing bonds.--If acceptable to the 17 municipality to which money is owed, the other municipality 18 shall have the power to issue and deliver interest-bearing bonds 19 in liquidation of the indebtedness. 20 Section 514. Collection of taxes levied prior to incorporation. 21 All taxes levied against property in the territory 22 incorporated prior to the effective date of the incorporation 23 shall be paid to the municipality from which territory has been 24 incorporated and the collection and enforcement shall be as 25 though the incorporation had not taken place. 26 Section 515. Crossing county lines. 27 Where the newly incorporated municipality is located in more 28 than one county, the county board of elections and the court of 29 common pleas in the county in which the greater part of the 30 territory of the newly incorporated municipality is located 19910H0678B0743 - 46 -
1 shall furnish official information relating to the incorporation 2 to their counterparts in the other county or counties concerned. 3 Section 516. Election districts and officers. 4 Except for any temporary arrangements for the purpose of a 5 referendum under section 505, all election districts in the 6 newly incorporated territory shall remain as constituted before 7 the incorporation and shall become election districts of the 8 incorporating municipality until changed in accordance with the 9 act of June 3, 1937 (P.L.1333, No.320), known as the 10 Pennsylvania Election Code. All election district officers shall 11 continue in office until the expiration of their terms, unless 12 the office is vacated. 13 CHAPTER 6 14 REPEALS AND EFFECTIVE DATE 15 Section 601. Repeals. 16 (a) Specific.--The following acts and parts of acts are 17 repealed: 18 Act of April 22, 1903 (P.L.247, No.183), entitled "An act 19 enabling the burgess and council of any borough or incorporated 20 town, by ordinance, to annex to the borough or incorporated town 21 adjacent territory, upon petition of a majority of the freehold 22 owners thereof." 23 Act of April 28, 1903 (P.L.332, No.260), entitled "An act for 24 the annexation of any city, borough, township, or part of a 25 township, to a contiguous city, and providing for the 26 indebtedness of the same." 27 Act of February 7, 1906 (Sp.Sess., P.L.7, No.1), entitled "An 28 act to enable cities that are now, or may hereafter be, 29 contiguous or in close proximity, to be united, with any 30 intervening land other than boroughs, in one municipality; 19910H0678B0743 - 47 -
1 providing for the consequences of such consolidation, the 2 temporary government of the consolidated city, payment of the 3 indebtedness of each of the united territories, and the 4 enforcement of debts and claims due to or from each." 5 Act of May 28, 1907 (P.L.295, No.223), entitled "A supplement 6 to an act, entitled 'An act for the annexation of any city, 7 borough, township, or part of a township, to a contiguous city, 8 and providing for the indebtedness of the same,' approved the 9 twenty-eighth day of April, Anno Domini one thousand nine 10 hundred and three; to enable territory now annexed, or which may 11 hereafter be annexed under the provisions of said act, to be 12 arranged and erected into a ward, or wards, of the city to which 13 it is annexed; and providing the procedure for that purpose, and 14 for the proper representation of the ward or wards erected." 15 Act of June 1, 1907 (P.L.377, No.271), entitled "A supplement 16 to an act, approved April twenty-eighth, one thousand nine 17 hundred three, entitled 'An act for the annexation of any city, 18 borough, township, or part of a township, to a contiguous city, 19 and providing for the indebtedness of the same,' providing for 20 the preservation of rights of creditors and of liens, and for 21 funding the debt of the municipality or school district 22 annexed." 23 Act of May 6, 1915 (P.L.260, No.152), entitled "A supplement 24 to an act approved the seventh day of February, one thousand 25 nine hundred and six, entitled 'An act to enable cities that are 26 now or may hereafter be contiguous or in close proximity, to be 27 united with any intervening land, other than boroughs, in one 28 municipality; providing for the consequences of such 29 consolidation, the temporary government of the consolidated 30 city, payment of the indebtedness of each of the united 19910H0678B0743 - 48 -
1 territories, and the enforcement of debts and claims due to or 2 from each,' by providing that the indebtedness of each city and 3 intervening land, heretofore or hereafter united or consolidated 4 under the provisions of said act, shall be paid by the 5 consolidated city, and for the levying of a uniform tax, upon 6 all the territory included within the consolidated city, for the 7 payment of the same." 8 Act of May 6, 1915 (P.L.272, No.167), entitled "A supplement 9 to an act, approved the twenty-eight day of April, one thousand 10 nine hundred and three, entitled 'An act for the annexation of 11 any city, borough, township, or part of a township, to a 12 contiguous city, and providing for the indebtedness of the 13 same,' by providing that any city, heretofore or hereafter 14 enlarged by any annexation under the terms of said act, shall be 15 liable for and shall pay the indebtedness of such city and the 16 territory so annexed; and providing for the levying of a uniform 17 tax upon all the territory included within such city as enlarged 18 by such annexation, for the payment of all such indebtedness." 19 Act of May 31, 1923 (P.L.473, No.258), entitled "An act 20 authorizing the annexation to cities of the second class of 21 portions of townships not exceeding one hundred acres in area 22 and totally surrounded by said cities; and providing for the 23 division of the assets and liabilities of said townships." 24 Act of May 12, 1925 (P.L.596, No.320), entitled "An act 25 providing for the alteration of the boundaries of counties in 26 certain cases for the adjustment of the indebtedness thereof; 27 providing the effect thereof." 28 Sections 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 29 250, 251, 252, 253, 254, 255, 501, 502, 503, 504, 505, 506, 515, 30 516, 517, 518, 525, 526, 535, 536, 540, 541, 542, 543, 544, 545, 19910H0678B0743 - 49 -
1 550, 551, 560, 561, 562, 570 and 580 of the act of June 23, 1931 2 (P.L.932, No.317), known as The Third Class City Code. 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. 6 Sections 205, 206, 207, 208, 209, 210, 211, 211.1, 212, 213, 7 214 and 215 of the act of May 1, 1933 (P.L.103, No.69), known as 8 The Second Class Township Code. 9 Sections 2(c) and 3 of the act of May 29, 1935 (P.L.244, 10 No.102), entitled "An act creating a Local Government Commission 11 to study and report on functions of local government; their 12 allocation and elimination; the cost of local government and 13 means of reducing it; and the consolidation of local government; 14 and making an appropriation." 15 Act of May 13, 1937 (P.L.620, No.161), entitled "An act 16 requiring the consent of the electors of a township of the first 17 class when such township, or any part thereof, is to be annexed 18 to a contiguous borough or city." 19 Act of July 2, 1937 (P.L.2803, No.588), entitled "An act 20 providing a method of annexation of townships of the first 21 class, and parts thereof, to cities and boroughs, and regulating 22 the proceedings pertaining thereto." 23 Act of June 15, 1939 (P.L.372, No.217), entitled "An act 24 affecting cities of the second class A, authorizing the 25 annexation of boroughs and townships thereto under certain 26 conditions, and, in connection therewith, placing duties upon or 27 affecting courts of quarter sessions, county boards of 28 elections, and officers of boroughs, townships, and cities of 29 the second class A, and providing for the payment of the 30 indebtedness of the various territorial units involved." 19910H0678B0743 - 50 -
1 Act of July 20, 1953 (P.L.550, No.145), entitled "An act 2 providing for and regulating the annexation of parts of a second 3 class township to boroughs, cities and townships." 4 Articles II and IV of the act of February 1, 1966 (1965 5 P.L.1656, No.581), known as The Borough Code. 6 Act of July 10, 1987 (P.L.246, No.47), known as the 7 Financially Distressed Municipalities Act, as follows: the 8 definitions of "consolidated or merged municipality," 9 "consolidation or merger," "contiguous territory," "election 10 officials," "initiative" and "referendum" in section 103; as 11 much as reads "pursuant to Chapter 4" of section 241(7); all of 12 sections 401, 402, 403, 404, 405, 406, 407 and 409; and as much 13 as reads "under provisions of this chapter" of section 421. 14 (b) General.--All other acts and parts of acts are repealed 15 insofar as they are inconsistent with this act. 16 Section 602. Application to procedures previously initiated. 17 Where initiative and referendum proceedings under the second 18 paragraph of section 8 of Article IX of the Constitution of 19 Pennsylvania were commenced in any municipality before the 20 effective date of this act, those proceedings may continue just 21 as if this act had not been passed. Insofar as this act sets 22 forth procedures, conditions and requirements applicable 23 following a referendum on the question of consolidation, merger 24 or boundary change, this act shall apply in any municipality 25 where those referendum proceedings had been commenced or where 26 the electors had voted in the affirmative or in the negative in 27 any such referendum before the effective date of this act. 28 Section 603. Effective date. 29 This act shall take effect in 90 days. B7L53JLW/19910H0678B0743 - 51 -