Regular Session 2021-2022 House Bill 1877 P.N. 2647

SENATE AMENDED

PRIOR PRINTER'S NOS. 2128, 2309, 2528

PRINTER'S NO. 2647

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1877

Session of

2021

INTRODUCED BY FREEMAN, JAMES, MOUL, KNOWLES, SAPPEY AND WEBSTER,

SEPTEMBER 20, 2021

SENATOR DUSH, LOCAL GOVERNMENT, IN SENATE, AS AMENDED,

JANUARY 25, 2022

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in alteration of territory or

corporate entity and dissolution, providing for municipal

boundary change; and making related repeals.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Chapter 7 of Title 53 of the Pennsylvania

Consolidated Statutes is amended by adding a subchapter to read:

SUBCHAPTER B

MUNICIPAL BOUNDARY CHANGE

Sec.

711. Scope of subchapter.

712. Definitions.

713. Interpretation.

714. Stream boundaries.

715. Boundary change agreement by abutting municipalities .

716. Petition and establishment of disputed boundaries by

judicial ascertainment.

717. Judicial ascertainment procedure.

718. Effective date of boundary change.

719. Notification of boundary change.

720. Monuments.

721. Wards.

722. Collection of taxes levied prior to change of boundary and

authorized expenditures.

723. Election districts and officers.

724. Governing body agreements.

725. Adjustment of indebtedness.

726. Judicial adjustment award proceedings.

727. Compensation, expenses and costs.

728. Territory located in multiple counties.

729. Bond issues.

§ 711. Scope of subchapter.

This subchapter relates to municipal boundary changes and

adjustments to municipal indebtedness and property rights

following boundary change.

§ 712. Definitions.

The following words and phrases when used in this subchapter

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

context clearly indicates otherwise:

"Abutting municipal corporations." Municipal corporations

that share contiguous territory.

"Boundary ascertainment." Establishment of a municipal

boundary between abutting municipal corporations by judicial

decree.

"Boundary change" or "change of boundary." Any change in the

municipal boundary between abutting municipalities , other than

as a result of a merger or consolidation under Subchapter C

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(relating to consolidation and merger), including any transfer

of territory, boundary clarification or boundary ascertainment.

"Boundary clarification." Establishment of a municipal

boundary by agreement under this subchapter between municipal

corporations in a territorial area with a previously unclear

boundary.

"Contiguous territory." Territory of which a portion abuts

the boundary of another municipal corporation, including

territory separated from the exact boundary of another municipal

corporation by a street, road, railroad or highway or by a river

or other natural or artificial stream of water.

"Governing body." The council in a city, borough or

incorporated town, the board of commissioners in a county or

township of the first class, the board of supervisors in a

township of the second class or the legislative policymaking

body in a home rule municipality.

"Impacted property." A parcel of real property that is

divided by a municipal boundary prior to, or will be divided

incident to, a proposed boundary change.

"Impacted territory." Territory which is subject to a

boundary change.

"Municipal corporation." A city, borough, incorporated town,

township or home rule municipality that is not a county.

"Municipality." A county, city, borough, incorporated town

or township.

"Unclear boundary." Contiguous territory between two

municipal corporations in which the exact boundary between the

municipal corporations is in dispute or cannot be readily

discerned as a result of conflicting or missing records.

§ 713. Interpretation.

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(a) Certain actions unaffected.--Nothing in this act shall

preclude, restrict or limit successive changes in boundaries and

territorial limits of any municipality .

(b) County boundaries unaffected.--When a boundary change is

made under the provisions of this act which results in a

municipal corporation which lies partly in one county and partly

in one or more other counties, the territory within the

municipal corporation shall, for county purposes, be and remain

a part of the county in which the respective territory is

physically located.

no action taken under this act, shall affect or apply to any

school district or any school district boundary, but nothing

shall preclude further action from being taken under the

provisions of the act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, or other applicable

provisions of law to change the boundary or location of a school

district.

(d) Initiative and referendum.--Nothing in this act shall

preclude a change of boundary by initiative and referendum as

provided in sections 8 and 14 of Article IX of the Constitution

of Pennsylvania.

§ 714. Stream boundaries.

(a) General rule.--If a municipal corporation is bounded by

the nearest margin of a navigable stream and the opposite

municipal corporation is also bounded by the nearest margin of

the same stream, the middle of the stream shall be the boundary

between the municipal corporations.

(b) Prior actions unaffected.--Nothing in this section shall

be construed to affect any boundary established prior to the

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effective date of this section between municipal corporations or

repeal any local or special law contrary to this section.

§ 715. Boundary change agreement by abutting municipalities .

(a) General rule.--Two or more abutting municipal

corporations, may, by the adoption of an ordinance memorializing

an agreement under this subchapter:

(1) Transfer or exchange territory between municipal

corporations.

(2) Establish a territorial boundary between municipal

corporations by boundary clarification.

(a.1) County boundary agreement by certain abutting

counties.-- Two or more abutting counties may, by the adoption of

an ordinance memorializing an agreement under this subchapter,

transfer territory between counties to the extent necessary to

align a portion of the county territorial boundary with the

territorial boundary of a municipal corporation where the

municipal corporation is divided by the existing county

territorial boundary.

(b) Prohibition on unincorporated territory.--No boundary

change may result in territory not incorporated in any municipal

corporation or county .

shall provide a description of the territory to be transferred

by a change of boundary, or territorial boundary to be

established within the impacted territory, and shall contain or

have attached a plot showing the courses and distances of the

boundaries of the municipalities as follows:

(1) In the case of a transfer of territory, municipal

boundaries before and after the proposed change in the

boundaries or territorial limits.

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(2) In the case of a boundary established to resolve an

unclear boundary, the proposed boundary and a description of

the area which was in dispute or unclear.

(d) Public meeting.--In addition to the procedures that

apply to the proposal and adoption of ordinances, each

municipality shall accept public comment on the proposed

ordinance at a regular or special meeting occurring not less

than 10 days after the ordinance is introduced and occurring not

less than 10 days prior to the adoption of the ordinance.

Nothing shall prevent the municipalities from satisfying this

requirement by holding a joint public meeting in one of the

municipalities.

(e) Notification of ordinance.--Within 15 days after

enactment of an ordinance under this subchapter, the governing

body of a municipality shall perform all of the following acts:

(1) Assign, for reference, a distinctive designation to

any impacted territory.

(2) File with the clerk of court and board of

commissioners of the county, a certified copy of the

ordinance by which the change was effected, together with a

plot, showing the courses and distances of the boundaries

before and after the change and clearly indicating any

designation or designations, as provided in paragraph (1). If

the impacted territory is located in or impacts the

territorial boundary of more than one county, the documents

and information shall be filed in each impacted county.

(3) Notify the record owner of each impacted property in

writing.

(f) Petition and suspension of ordinance.--A boundary change

under an ordinance enacted under this section shall be suspended

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following the presentation of a petition, in writing, to the

municipal secretary , or the chief clerk of the county, as the

case may be, of at least one impacted municipality protesting

the proposed boundary change. A valid petition under this

section shall be composed of:

(1) at least 20% of registered electors of the municipal

corporation or county . Petitioners must provide their address

on the petition along with their respective signatures; or

(2) at least one owner of an impacted property.

(g) Deadline for filing petition and notice.--A petition

under subsection (f) shall be filed with the secretary or clerk

of the municipal corporation , or the chief clerk of the county,

as the case may be, where the registered electors reside no

later than the 20th day after the date on which the municipal

corporation files its documents under subsection (e)(2) in the

county. If the required number of registered electors have

signed the petition, the municipal secretary or clerk shall

provide notice of the petition to the governing body of all

impacted municipalities .

(h) Referendum.--The following shall apply:

(1) If the required number of electors or owners have

signed the petition as provided in subsection (f) in any

impacted municipal corporation or county , the governing body

of each impacted municipality shall call for a referendum to

be held at the time of the next general, municipal or primary

election occurring at least 90 days after the petition has

been filed, at which election the question of whether the

boundary change as provided in the ordinance of each affected

municipality will be submitted to the electors of each

affected municipality. Notice of the election and the text of

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the question to be submitted to the electors shall be

published in the same manner as publication is required in

section 1201 of the act of June 3, 1937 (P.L.1333, No.320),

known as the Pennsylvania Election Code.

(2) The question to be submitted to the electors on the

ordinance shall be framed to identify the ordinance, followed

by the words "yes" and "no." The question shall be placed on

the ballot which shall be counted, returned and computed in

accordance with the election laws of this Commonwealth.

(3) If the majority of the qualified electors of the

municipality voting on the ordinance vote for the ordinance

in all impacted municipalities , the boundary change shall

take effect.

§ 716. Petition and establishment of disputed boundaries by

judicial ascertainment.

(a) Judicial ascertainment.--A court of common pleas may,

upon presentation of a petition, ascertain and establish

disputed boundaries of two or more municipal corporations.

(b) Bond required.--If a petition is presented, the court

under subsection (a) may require the petitioners to file a bond

in a sufficient amount to secure the payment of all costs of the

proceeding.

shall be submitted in writing by:

(1) One or more owners of an impacted property.

(2) Ten or more residents of any municipal corporation

impacted by the disputed boundary.

§ 717. Judicial ascertainment procedure.

(a) Appointment.--Upon application by petition under section

716 (relating to petition and establishment of disputed

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boundaries by judicial ascertainment) , the court shall appoint

three impartial individuals as commissioners, one of whom must

be a surveyor or registered engineer.

(b) Hearing.--After providing notice to interested parties

and upon publication of the petition, as directed by the court,

the commissioners shall hold a hearing and view the disputed

lines and boundaries.

body of a municipal corporation notifies the court that the

impacted municipal corporations intend to resolve the disputed

boundary by agreement under this act, the court shall stay any

proceedings under this section for 90 days. A stay may be

extended at the discretion of the court if it appears that the

impacted parties are pursuing an agreement in good faith.

(d) Report.--A majority of the commissioners shall issue the

report and recommendations to the court, accompanied by a plot

or draft of the lines and boundaries proposed to be ascertained

and established if the lines and boundaries cannot be fully

designated by natural lines or boundaries.

(e) Exceptions.--Exceptions to the report under subsection

(d) may be filed within 30 days after the filing of the report

by an interested person or political subdivision. The court

shall set and provide notice of a hearing on the exceptions.

After a hearing under this subsection, the court may sustain or

dismiss the exceptions. If the court has sustained the

exceptions, the court may refer the report back to the same or

new commissioners with the authority to make another report.

(f) Decree.--If no exceptions are filed within 30 days after

the filing of the report, or the exceptions have been dismissed,

the court shall confirm the report. If a report is confirmed,

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the court shall:

(1) Enter a decree ascertaining and establishing the

lines and boundaries as shown in the report.

(2) Direct publication of the decree under paragraph

(1).

(3) Order that the boundary line be marked by

appropriate monuments.

(g) Compensation, expenses and costs.--The compensation and

expenses of commissioners appointed under subsection (a) shall

be in a reasonable amount as approved by the court. The court

shall, by order, provide how costs and expenses of the

proceedings shall be paid and may assess the costs individually

or in apportioned amounts against the following:

(1) The petitioners.

(2) Any interested municipal corporation.

§ 718. Effective date of boundary change.

(a) Change by ordinance.--The change in boundaries under an

ordinance shall take effect on January 1 of the year following

the date on which all of the documents under section 715(e)(2)

(relating to boundary change agreement by abutting

municipalities ) have been filed, unless:

(1) the filing date is within 60 days prior to the end

of a calendar year, in which case the change shall take

effect as of January 1 of the second year following the

filing date; or

(2) a timely petition is filed under section 715 in

which case t he petition shall act as a supersedeas and the

change in boundaries in all impacted municipalities shall

only take effect if the referendum under section 715 passes,

where the boundary change shall take effect on January 1 of

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the year following the referendum.

(b) Change by ascertainment.--A change of boundaries by

judicial ascertainment shall take effect on the effective date

of the decree.

boundary under the provisions of section 8 of Article IX of the

Constitution of Pennsylvania by referendum, the change of

boundary shall take effect on January 1 of the year following

the referendum.

§ 719. Notification of boundary change.

(a) General rule.--Within 15 days after a change in

boundaries has taken effect, the governing body of a

municipality shall file a final report of the boundary change

containing the following information with the County Board of

Elections, the Department of Community and Economic Development,

the Department of Transportation, the Governor's Office of

Policy Development or its successor, the Department of Education

and the State Tax Equalization Board:

(1) The name of the impacted municipalities .

(2) A land survey showing the courses and distances of

the boundary in the impacted territory.

(3) The location of the monuments along the new boundary

line.

(4) The total assessed valuation of the impacted

territory.

(5) The approximate population of the impacted

territory.

(6) The designation, as provided for in section 715(e)

(1) (relating to boundary change agreement by abutting

municipalities ), by which the impacted territory is to be

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known.

(7) In the case of a boundary change by judicial

ascertainment, the decree shall be attached to the report.

(b) Combined notifications authorized.--All municipalities

impacted by a boundary change may jointly provide for a combined

final report under subsection (a).

§ 720. Monuments.

The impacted municipalities shall provide for the placement

of monuments, no more than 1,500 feet apart, along the newly

established boundary line, other than where a natural line can

be described, in a manner adequate that the entire territory in

question can be depicted and represented for the future. The

coordinates of monuments shall be expressed in terms of the

State Plane Coordinate System in effect on the date of the

change of boundary.

§ 721. Wards.

(a) Increased municipal territory.--If a municipal

corporation gaining territory is divided among wards, the

governing body shall, within 30 days after the change in

boundaries is effective, provide for the distribution of the

gained territory among the wards of the municipal corporation or

for the creation of one or more wards out of the gained

territory.

(b) Decreased municipal territory.--If the municipal

corporation decreasing territory is divided among wards, the

governing body of the municipal corporation, shall within 30

days after the change in boundaries is effective, provide for

the alteration of wards among the remaining territory.

§ 722. Collection of taxes levied prior to change of boundary

and authorized expenditures.

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(a) Taxes.--All taxes assessed and levied against property

in an impacted territory prior to the effective date of the

boundary change shall be paid to the municipality which levied

the tax, and the collection and enforcement of taxes under this

subsection shall be as though the change of boundary had not

taken place.

(b) Expenditures.--A municipality initiating a boundary

change by ordinance under this subchapter is authorized to make

reasonable expenditures for surveys required to describe the

property under consideration, or for any other necessary

purpose.

§ 723. Election districts and officers.

All election districts in the impacted territory shall remain

as constituted prior to the boundary change and shall become

election districts of the municipality gaining territory on the

change in designation in accordance with the act of June 3, 1937

(P.L.1333, No.320), known as the Pennsylvania Election Code. All

election district officers shall continue in office until the

expiration of the officer's term, unless the office is vacated.

§ 724. Governing body agreements.

(a) General rule.--Prior to the effective date of a boundary

change, an impacted municipality may execute an agreement fully

resolving:

(1) Transfers of any funds and indebtedness related to

property within the impacted territory.

(2) The sharing of costs associated with the territorial

alteration or clarification.

(3) The sharing or division of any tax or fee revenues

associated with property within the impacted territory in the

year that a territorial alteration occurs.

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(4) A resolution of any matters, rights or other issues

incident to the transfer of territory.

(b) Exception.--In the event that an agreement under this

section is incorporated in an ordinance, sections 725 (relating

to adjustment of indebtedness), 726 (relating to judicial

adjustment award proceedings), 727 (relating to compensation,

expenses and costs), 728 (relating to territory located in

multiple counties) and 729 (relating to bond issues) shall not

apply.

§ 725. Adjustment of indebtedness.

(a) Property.--The following shall apply:

(1) Following a boundary change under this subchapter or

any other provision of law, the governing bodies of the

impacted municipalities shall make an equitable adjustment

and apportionment of all the public real and personal

property impacted by the change of boundary.

(2) Except as provided under paragraph (3), the property

under paragraph (1) shall include funds and indebtedness.

(3) If adjusting property and indebtedness under

paragraph (1), streets, sewers and utilities may not be

considered except to the extent that current and unpaid

indebtedness was incurred for the construction and

improvement of the property.

(b) Proportion.--In making the adjustment and apportionment

under subsection (a), the following shall apply:

(1) The municipality gaining territory shall be entitled

to a division of the property and indebtedness in the same

proportion that the assessed valuation of the taxable real

estate included within the territorial limits of the newly

gained territory bears to the assessed valuation of the

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taxable real estate in the municipal corporation MUNICIPALITY

losing territory immediately prior to the boundary change.

The municipality losing territory shall be entitled to the

remainder of the property and indebtedness.

(2) If indebtedness was incurred by the municipality

losing territory for an improvement located wholly within the

territorial limits of the newly transferred territory, the

indebtedness shall be assumed by the municipality gaining

territory.

(3) If only part of the improvement is located within

the newly transferred territory, the part of the indebtedness

representing the part of the improvement located within

transferred territory shall be assumed by the municipality

gaining territory and the adjustment and apportionment of any

remaining debt shall be retained by the municipality losing

territory.

section must meet all of the following:

(1) Be in writing and duly executed and acknowledged by

the secretary or clerk of each impacted municipal

corporation , or the chief clerk of the county, as the case

may be .

(2) Be filed in the office of the clerk of the court of

common pleas of the county.

(3) Be filed as a copy with the Department of Community

and Economic Development.

(d) Petition for judicial adjustment.--If the governing

bodies of the impacted municipalities cannot make an amicable

adjustment and apportionment of the property and indebtedness

within six months after the effective date of the change in

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boundaries, the governing body of a municipality may present a

petition to the court of common pleas , OR THE COMMONWEALTH COURT

UNDER SECTION 728 (RELATING TO TERRITORY LOCATED IN MULTIPLE

COUNTIES), requesting a judicial adjustment.

(e) Appointment.--After receiving a petition under

subsection (d), the court shall appoint three disinterested

commissioners who . IF THE IMPACTED TERRITORY IS LOCATED IN TWO

OR MORE COUNTIES, SECTION 728 SHALL APPLY. IF ALL OF THE

IMPACTED TERRITORY IS LOCATED IN ONE COUNTY, THE COMMISSIONERS

SHALL meet all of the following requirements:

(1) Are residents and taxpayers of the county.

(2) Are not residents of or own real estate in an

impacted municipality MUNICIPAL CORPORATION .

(f) Report.--The individuals appointed under subsection (e)

shall hold a hearing and make a report to the court containing

an adjustment and apportionment of all the property and the

indebtedness between the impacted municipalities . Notice shall

be made as provided by the court. The report shall state the

amount due to, payable from and the amount of indebtedness that

shall be assumed by each impacted municipality .

§ 726. Judicial adjustment award proceedings.

(a) Notice.--The commissioners appointed under section

725(e) (relating to adjustment of indebtedness) shall give the

impacted municipalities at least five days' notice of the filing

of the report under section 725(f).

(b) Exceptions.--If exceptions are filed to the report made

under section 725(f), the court shall dispose of the exceptions

and shall enter its decree confirming or modifying the award.

within 30 days after the date of the filing, the report shall be

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confirmed by the court and the court shall issue an appropriate

order effectuating the report.

§ 727. Compensation, expenses and costs.

The commissioners appointed under section 725(e) (relating to

adjustment of indebtedness) shall receive compensation and

expenses for their services as provided by the court. The costs

of the proceedings, including the compensation and expenses of

the commissioners, shall be apportioned by the court between the

impacted municipalities .

§ 728. Territory located in multiple counties.

If the impacted territory is located in two or more counties,

Commonwealth Court shall have exclusive jurisdiction over the

proceedings to adjust and apportion the PROPERTY AND

indebtedness between the municipality . MUNICIPALITIES.

NOTWITHSTANDING THE PROVISIONS OF SECTION 725(E) (RELATING TO

ADJUSTMENT OF INDEBTEDNESS), THE COURT SHALL APPOINT THREE

DISINTERESTED COMMISSIONERS WHO ARE RESIDENTS OF THIS

COMMONWEALTH BUT ARE NOT RESIDENTS OF, OR OWNERS OF REAL ESTATE

IN, ANY IMPACTED COUNTY.

§ 729. Bond issues.

In a proceeding to adjust and apportion indebtedness, a

municipality shall have power to issue and deliver interest-

bearing bonds in liquidation of the indebtedness ascertained, to

be its proportionate share payable, if the bonds are acceptable

to the municipality entitled to receive the bonds. The court may

make necessary orders for the collection and payment.

Section 2. Repeals are as follows:

(1) The General Assembly declares that the repeals under

paragraph (2) are necessary to effectuate the addition of 53

Pa.C.S. Ch. 7 Subch. B.

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(2) The following acts and parts of acts are repealed:

(i) The act of April 28, 1903 (P.L.332, No.260),

entitled "An act for the annexation of any city, borough,

township, or part of a township, to a contiguous city,

and providing for the indebtedness of the same."

(ii) The act of May 31, 1923 (P.L.473, No.258),

entitled "An act authorizing the annexation to cities of

the second class of portions of townships not exceeding

one hundred acres in area and totally surrounded by said

cities; and providing for the division of the assets and

liabilities of said townships."

(iii) The act of May 12, 1925 (P.L.596, No.320),

entitled "An act providing for the alteration of the

boundaries of counties in certain cases for the

adjustment of the indebtedness thereof; providing the

effect thereof."

(iv) Sections 301, 302, 303, 304, 305, 306 and 307

of the Act of June 24, 1931 (P.L.1206, No.331), known as

The First Class Township Code.

(v) Sections 301, 302, 303, 304, 305, 306 and 307 of

the Act of May 1, 1933 (P.L.103, No.69), known as The

Second Class Township Code.

(vi) The act of June 15, 1939 (P.L.372, No.217),

entitled "An act affecting cities of the second class A,

authorizing the annexation of boroughs and townships

thereto under certain conditions, and, in connection

therewith, placing duties upon or affecting courts of

quarter sessions, county boards of elections, and

officers of boroughs, townships and cities of the second

class A, and providing for the payment of the

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indebtedness of the various territorial units involved."

(vii) The act of July 20, 1953 (P.L.550, No.145),

entitled "An act providing for and regulating the

annexation of parts of a second class township to

boroughs, cities and townships."

(viii) 8 Pa.C.S. §§ 501, 502, 503, 504, 505 and 506.

(ix) 11 Pa.C.S. §§ 10601, 10602, 10603, 10604, 10605

and 10606.

(3) All other acts and parts of acts are repealed

insofar as they are inconsistent with this act.

Section 3. This act shall take effect in 60 days.

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