Amendment 948 to House Bill 1184 P.N. 1450, Regular Session 2021-2022

H1184B1450A00948 KMK:EJH 05/07/21 #90 A00948

AMENDMENTS TO HOUSE BILL NO. 1184

Sponsor: REPRESENTATIVE MOUL

Printer's No. 1450

Amend Bill, page 1, line 2, by inserting after "Statutes,"

in creation and alteration, further providing for definitions,

for contiguous areas, for applications, for borough advisory

committee, for adjustment of indebtedness, for judicial

adjustment, for judicial adjustment award proceedings, for

compensation, expenses and costs, for territory located in

multiple counties and for bond issues and taxation;

Amend Bill, page 1, lines 16 through 18, by striking out all

of said lines and inserting

Section 1. Section 200 of Title 8 of the Pennsylvania

Consolidated Statutes, amended June 5, 2020 (P.L.211, No.28), is

amended to read:

§ 200. 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:

"Committee." A borough advisory committee.

"Freeholder." A person enjoying a continuous right of

ownership and possession of real property for an indeterminate

period by fee simple or life estate.

["Township." A township of the first or second class or any

home rule township.]

"Municipality." A city, incorporated town, township, home

rule municipality, optional plan municipality, optional charter

municipality or similar general purpose unit of government which

may be created or authorized by statute.

Section 2. Sections 201, 202, 202.1 and 213 of Title 8 are

amended to read:

§ 201. Contiguous areas.

A court of common pleas may incorporate as a borough any

contiguous area from one or more [townships] municipalities

within the court's jurisdiction having a population of at least

500 residents. After having been incorporated as a borough, the

area shall be a body corporate and politic and shall have the

name decreed by the court.

§ 202. Applications.

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

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(1) The application for incorporation shall be by a

petition signed by a majority of the freeholders residing

within the limits of the proposed borough and by the

freeholders of a majority of the territory within the limits

of the proposed borough, if all parts of the proposed borough

are in the same [township] municipality.

(2) If portions of the proposed borough are in different

[townships] municipalities, the petition shall be signed by a

majority of the freeholders residing in each of the separate

portions and by the freeholders of a majority of the

territory in each of the separate portions. The following

shall apply:

(i) The signatures must be secured within three

months immediately preceding the presentation of the

signatures to the court.

(ii) The petition shall be subscribed by and sworn

to by at least one of the signers.

(iii) The number of signers required to sign the

petition shall be ascertained as of the date the petition

was presented to court.

(b) (Reserved).

(d) (Reserved).

(e) Filing and notice.--Upon presentation to the court, a

petition shall be filed with the clerk of court, and notice of

the petition shall be published under section 109 (relating to

publication of notices) once a week for four consecutive weeks

immediately following the filing of the petition, during which

time exceptions may be filed to the petition by any person

interested. The notice shall state when and where the petition

was filed and the time during which exceptions may be filed to

the petition.

(f) Contents of petition.--The petition under subsection (e)

shall indicate the name of the proposed borough with a

particular description of the boundaries of the borough and be

accompanied with a plot of the proposed borough. The following

shall apply:

(1) If the boundaries of the proposed borough are not

the same as an existing [township] municipality, the

description shall contain the courses and distances of the

boundaries.

(2) If the boundaries of the proposed borough are the

same as an existing [township] municipality, the description:

(i) may contain the courses and distances of the

boundaries; and

(ii) shall refer to the name and location of the

existing [township] municipality.

§ 202.1. Borough advisory committee.

(a) Establishment.--The court shall establish a borough

advisory committee when a petition is received by the court for

the creation of a borough. The following shall apply to

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committee members:

(1) Members shall be appointed by and shall serve at the

pleasure of the court.

(2) The committee shall consist of the following:

(i) Two residents of the proposed borough.

(ii) Two residents from each of the existing

[townships] municipalities recommended by the respective

governing body of the [township] municipality who are not

residing within the proposed borough.

(iii) One resident of the county not residing in any

area under subparagraphs (i) and (ii) who shall serve as

the chair of the committee.

(3) Members shall serve without salary. The court may

entitle each member to reimbursement for the member's actual

and necessary expenses incurred in the performance of the

member's official duties.

(4) Members may consult with the director of the county

planning commission who may advise the committee.

(b) Duties.--The committee shall, within 60 days of its

creation, advise the court in relation to the establishment of

the proposed borough. The committee shall render expert advice

and findings of fact relating to the desirability of an

incorporation, including advice as to:

(1) The proposed borough's ability to obtain or provide

adequate and reasonable community support services such as

police protection, fire protection and other appropriate

community facility services.

(2) Whether the proposed borough constitutes a

harmonious whole with common interests and needs that can

best be served by a borough government. In examining this

factor, the committee shall consider whether the proposed

borough represents a distinct community with features

different from those of the existing [township] municipality.

(3) The existing and potential commercial, residential

and industrial development of the proposed borough.

(4) Whether the proposed borough would provide for land

use regulations to meet the legitimate needs for all

categories of residents or whether the plan is exclusionary

or would result in economic segregation.

(5) The financial or tax effect on the proposed borough

and existing [township] municipality.

§ 213. Adjustment of indebtedness.

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

(1) After the election of a council under section 211

(relating to temporary preservation, organization and

election of officers) when a borough is newly incorporated,

the council and the governing body of the [township]

municipality from which the borough was created shall make an

equitable adjustment and apportionment of all the public real

and personal property owned by the [township] municipality at

the time of the incorporation of the borough.

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(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 borough 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 incorporated borough

bears to the assessed valuation of the taxable real estate in

the entire [township] municipality immediately prior to the

incorporation of the borough. The [township] municipality

shall be entitled to the remainder of the property and

indebtedness.

(2) If indebtedness was incurred by the [township]

municipality for an improvement located wholly within the

territorial limits of the newly incorporated borough, the

indebtedness shall be assumed by the borough.

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

the newly incorporated borough, the part of the indebtedness

representing the part of the improvement located within the

borough shall be assumed by the borough, and the adjustment

and apportionment of any remaining debt shall be retained by

the [township] municipality.

section must meet all of the following:

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

the secretary or clerk of the [township] municipality and the

secretary of the borough.

(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.

Section 3. Section 214 of Title 8, amended June 5, 2020

(P.L.211, No.28), is amended to read:

§ 214. Judicial adjustment.

(a) Petition.--If the governing bodies of the [township]

municipality and the borough cannot make an amicable adjustment

and apportionment of the property and indebtedness within six

months after the government of the newly incorporated borough is

established, the supervisors or commissioners of the [township]

municipality or the council of the borough may present a

petition to the court of common pleas requesting a judicial

adjustment.

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

subsection (a), the court shall appoint three disinterested

commissioners who meet all of the following requirements:

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(1) Are residents and taxpayers of the county.

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

[township] municipality or borough.

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 [township] municipality and the

borough. Notice shall be made to the [township] municipality and

borough as provided by the court. The report shall state the

amount due and payable from the borough or the [township]

municipality to the other entity and the amount of indebtedness

that shall be assumed by the borough or the [township]

municipality.

Section 4. Sections 215, 217, 218, 219, 704(a) and (b),

801(a), 1104(c), 1122(a) and 1202(8) of Title 8 are amended to

read:

§ 215. Judicial adjustment award proceedings.

(a) Notice.--The commissioners shall give the [township]

municipality and the borough at least five days' notice of the

filing of the report under section 214(c) (relating to judicial

adjustment).

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

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

confirmed by the court.

(1) Any sum awarded by the report to the [township]

municipality or borough shall be a legal and valid claim in

its favor against the borough or [township] municipality

charged with the sum.

(2) Any real or personal property given to the

[township] municipality or borough shall become its

respective property.

(3) Any claim or indebtedness charged against the

borough or [township] municipality may be collected from the

borough or the [township] municipality.

§ 217. Compensation, expenses and costs.

The commissioners under section 214(b) (relating to judicial

adjustment) 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 borough and

[township] municipality.

§ 218. Territory located in multiple counties.

If territory included within the limits of a newly

incorporated borough is located in at least two counties, the

court of common pleas of the county where the larger part of the

territory of the borough is located shall have exclusive

jurisdiction over the proceedings to adjust and apportion the

indebtedness between the borough and [township] municipality.

§ 219. Bond issues and taxation.

In any proceeding to adjust and apportion indebtedness, the

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[township] municipality or the borough shall have power to issue

and deliver to the borough or [township] municipality interest-

bearing bonds in liquidation of the indebtedness ascertained, to

be its proportionate share payable, if the bonds are acceptable

to the borough or [township] municipality or [townships]

municipalities entitled to receive the bonds. The court may make

necessary orders for the collection and payment by the

[township] municipality or [townships] municipalities or borough

of the amount needed to pay its share of any indebtedness

apportioned to it by special taxes to be collected in one year

or by annual installments.

Amend Bill, page 5, line 24, by striking out "2" and

inserting

Amend Bill, page 6, line 9, by striking out "3" and inserting

Amend Bill, page 9, line 23, by striking out "4" and

inserting

Amend Bill, page 10, line 18, by striking out "5" and

inserting

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