PRINTER'S NO. 2622

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2045 Session of 1975


        INTRODUCED BY DeMEDIO, RITTER, MEBUS AND WEIDNER,
           DECEMBER 10, 1975

        REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, DECEMBER 16, 1975

                                     AN ACT

     1  Relating to and regulating local government boundary changes in
     2     Pennsylvania.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5                             ARTICLE I
     6              Short Title; Definitions; Applicability
     7     Section 101.  Short Title.--This act shall be known and may
     8  be cited as the "Municipal Boundary Change Act."
     9     Section 102.  Definitions.--The following words, terms and
    10  phrases, when used in this act, shall have the meanings ascribed
    11  to them in this section, except where the context clearly
    12  indicates otherwise:
    13     "Annexation."  Any change in municipal boundaries resulting
    14  from the transfer of territory, comprising part of any
    15  municipality, to any other municipality.
    16     "Annexed municipality."  Any municipality from which
    17  territory shall be proposed to be annexed or attached to an
    18  annexing municipality, under Article II of this act. The annexed

     1  municipality may be, but need not necessarily be, located in the
     2  same county as the annexing municipality.
     3     "Annexing municipality."  Any municipality to which territory
     4  shall be or shall be proposed to be annexed or attached. The
     5  annexing municipality may be, but need not necessarily be,
     6  located in the same county as the annexed municipality.
     7     "Boundary Change Commission."  The Boundary Change Commission
     8  of the Commonwealth of Pennsylvania.
     9     "Consolidated or merged municipality."  Any municipal entity
    10  resulting from successful consolidation or merger proceedings
    11  under Article III of this act.
    12     "Consolidation or merger."  The combination of two or more
    13  municipalities into one municipality.
    14     "Contiguous territory."  Territory, any portion of which
    15  abuts the boundary of another municipality, including territory
    16  separated from the boundary of such other political subdivision
    17  by a street, road, railroad, or highway, or by a river or other
    18  natural or artificial stream of water.
    19     "Detached municipality."  A municipality which would decrease
    20  in total territory as a result of annexation, incorporation or
    21  any other means by which territory can be transferred.
    22     "Detaching municipality."  A municipality which would
    23  increase in total territory as a result of annexation,
    24  incorporation or any other means by which territory can be
    25  transferred.
    26     "Detachment."  The transfer of territory by annexation,
    27  incorporation or other means from one municipality to another
    28  municipality.
    29     "Election officials."  The county boards of election, except
    30  in Philadelphia where "election officials" means the city board
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     1  of elections.
     2     "Existing municipality."  A municipality from which territory
     3  is proposed to be annexed.
     4     "Incorporation."  The creation of a new municipality from all
     5  or part of the territory of an existing municipality or
     6  municipalities.
     7     "Municipality."  Any county, city, borough, incorporated
     8  town, township, home rule municipality or any general purpose
     9  unit of government hereinafter created by the General Assembly.
    10     Section 103.  Interpretation.--(a) Nothing in this act shall
    11  preclude, restrict or limit successive changes in boundaries and
    12  territorial limits of any municipality that would affect any
    13  specific territory.
    14     (b)  When any boundary change shall be made under the
    15  provisions of this act which shall result in a municipality
    16  which lies partly in one county and partly in one or more other
    17  counties, the territory within such municipality shall, for
    18  county and institution district purposes, be and remain a part
    19  of the county in which such territory is physically located.
    20  However, the Boundary Change Commission shall advise the
    21  counties and persons involved of the advisability of placing the
    22  municipality totally within one of the counties by further
    23  annexation.
    24     (c)  Nothing in this act, and no action taken pursuant to
    25  this act, shall affect or apply to any school district or any
    26  school district boundary, but nothing shall preclude further
    27  action from being taken under the provisions of the act of March
    28  10, 1949 (P.L.30, No.14), known as the "Public School Code of
    29  1949," or other applicable provisions of the law to change
    30  school district boundaries or locations.
    19750H2045B2622                  - 3 -

     1     Section 104.  Applicability.--This act establishes the
     2  procedure for and shall apply to the change of boundaries of all
     3  municipalities.
     4                             ARTICLE II
     5                   The Boundary Change Commission
     6     Section 201.  Boundary Change Commission; Members.--The
     7  Boundary Change Commission of the Commonwealth of Pennsylvania
     8  is created and shall be composed of 15 members, five of whom are
     9  to be appointed by the Governor, five of whom are to be
    10  appointed by the President pro tempore of the Senate, and five
    11  of whom are to be appointed by the Speaker of the House of
    12  Representatives. The five members of the Boundary Change
    13  Commission appointed by each of the three above appointing
    14  powers shall not all be of the same political party. Boundary
    15  Change Commission members need not be members of the General
    16  Assembly. The chairman of the commission shall be elected by a
    17  majority vote of the members.
    18     The Boundary Change Commission members shall be appointed as
    19  to provide for staggered terms to begin on January 1, 1977 and
    20  each shall serve until his successor is qualified. Initially, of
    21  the five members appointed by each appointing power mentioned in
    22  this section, three shall be appointed for terms of four years
    23  and two shall be appointed for terms of two years. Thereafter,
    24  terms of each member of the Boundary Change Commission shall be
    25  for a period of four years. Vacancies shall be filled by the
    26  respective appointing power. The person appointed to fill such
    27  vacancy shall serve only for the remainder of the vacated term.
    28     Section 202.  Conduct of Business.--The commission shall meet
    29  in the city of Harrisburg, except as required for the conduct of
    30  public hearings within territory proposed for boundary change
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     1  actions. The commission shall make rules and regulations and
     2  prescribe procedures necessary or desirable in carrying out the
     3  intent and purpose of this act, including forms of petitions for
     4  municipal boundary changes, and the documents, maps and
     5  supporting statements deemed to be necessary, establish rules
     6  for public hearings, for the submission of supplementary
     7  documents and statements. The commission shall keep a record of
     8  all proceedings and shall annually make a written report by July
     9  31 of its business and activities to the Governor, the General
    10  Assembly, the State Planning Board, the Department of
    11  Transportation, the Department of Community Affairs, the
    12  Department of Education, the State Tax Equalization Board, the
    13  Legislative Reapportionment Commission, the Pennsylvania State
    14  Association of County Commissioners, the Pennsylvania League of
    15  Cities, the Pennsylvania State Association of Boroughs, the
    16  Pennsylvania State Association of Township Commissioners and the
    17  Pennsylvania State Association of Township Supervisors.
    18     Section 203.  Powers and Duties of Boundary Change
    19  Commission.--The powers and duties of the Boundary Change
    20  Commission shall be:
    21     (1)  To make studies of proposed local boundary changes that
    22  are referred to it by the governing bodies of municipalities, or
    23  by a petition signed by at least 5% of the registered electors
    24  of a municipality directly affected by the proposed study and
    25  advise the municipalities thereon, or on its own initiative. The
    26  governing body of any municipality may at any time request the
    27  Boundary Change Commission of the Commonwealth to make a study
    28  of any proposal for boundary change affecting the municipality.
    29  Such request may also be made jointly by the governing bodies of
    30  all the municipalities directly affected by such a proposal.
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     1     (2)  To undertake long-range studies of local boundary
     2  problems in Pennsylvania.
     3     (3)  To set up a system of State and local reporting and
     4  recording of local boundary changes, and of proposals relating
     5  to local boundary changes. No boundary change shall be
     6  considered final until official copies of all ordinances,
     7  petitions and pertinent election returns and other official
     8  documents relating to local boundary changes are deposited with
     9  the Boundary Change Commission and the applicable court of
    10  common pleas.
    11     (4)  To set standards such as population, areawide interests,
    12  homogeneity, and services which may be used as the basis for
    13  recommending local and State action relating to local boundary
    14  changes.
    15     (5)  To make studies of boundary change proposals, other than
    16  those effected through the process of initiative and referendum,
    17  which involve detachment of territory from a municipality.
    18     (6)  To determine the precedence of simultaneous local
    19  boundary change proceedings which affect the same territory.
    20     Section 204.  Criteria for Granting Approval of Detachments
    21  of Territory.--(a) In determining whether a proposal detachment
    22  of territory requiring its approval shall receive such approval,
    23  the Boundary Change Commission shall consider, but shall not be
    24  limited to, the following:
    25     (1)  The topography and other physical characteristics of the
    26  geographical area affected by the proposed detachment.
    27     (2)  The comprehensive plans that pertain to any municipality
    28  or territory affected by the proposed detachment.
    29     (3)  Service factors such as:
    30     (i)  The need for additional municipal services in the
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     1  territory proposed for detachment.
     2     (ii)  The ability and willingness of any detaching
     3  municipality to provide municipal services to any affected
     4  territory and the time period within which the residents of such
     5  territory shall receive such services.
     6     (iii)  The extent to which any affected municipality or
     7  territory is interdependent for municipal services with others
     8  that are affected by the proposed detachment.
     9     (4)  The ability of any detaching municipality to assume a
    10  share of the existing indebtedness and to purchase public
    11  property, as provided in sections 312 and 507.
    12     (5)  The extent to which there are mutual community interests
    13  in the territory proposed for annexation and in the annexing
    14  municipality.
    15     (b)  If the only reason set forth in the annexation petition
    16  is the demand or promise of extension of municipal services and
    17  within a reasonable period of time as established by the
    18  Boundary Change Commission the existing municipality provides
    19  such services, then the Boundary Change Commission must deny the
    20  petition for annexation.
    21     Section 205.  Findings of Effect of Detachment.--If the
    22  Boundary Change Commission shall determine that a proposed
    23  detachment shall seriously impair the ability of the remaining
    24  portion of the municipality from which territory is proposed for
    25  detachment to provide public services to its residents, the
    26  commission shall take one of the following actions:
    27     (1)  Direct that there be no further action on the original
    28  incorporation or annexation petition, and initiate a referendum
    29  in the affected municipalities for incorporation or
    30  consolidation of the entire area of the affected municipalities.
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     1     (2)  Recommend approval of the original petition for
     2  annexation or incorporation: Provided, That before passage of
     3  the annexation ordinance or before submitting the question of
     4  incorporation to the electors of the municipalities or parts of
     5  municipalities affected, provisions shall be made for the
     6  remaining portion of the municipality from which territory is
     7  proposed to be detached to be either consolidated with or
     8  annexed to another contiguous municipality.
     9     (3)  Disapprove the original petition for detachment.
    10     Section 206.  Boundary Change Commission Panels.--(a) All
    11  proposed boundary changes shall be submitted to the Local
    12  Government Commission. Notice of each proposal shall be
    13  forwarded to the Chairman of the Boundary Change Commission, who
    14  may then administratively assign the proposal to a panel
    15  composed of not more than nine and not less than three members
    16  of the Boundary Change Commission who are not residents of the
    17  municipalities affected.
    18     (b)  The Boundary Change Commission panel so appointed or
    19  commission as a whole will have the right to hold hearings,
    20  conduct investigations, and solicit the advice of experts,
    21  citizens, and officials involved. The panel will be entitled to
    22  call such citizens as are available and to hear from those
    23  persons within the panel's discretion.
    24     (c)  The members of the panel and commission shall be paid
    25  $50 per diem and other actual expenses incurred when actually
    26  engaged in the performance of their duties.
    27     (d)  The Boundary Change Commission or panel may employ the
    28  necessary administrative and clerical personnel or utilize
    29  available existing personnel from the Department of Community
    30  Affairs, the Local Government Commission, or staffs of the House
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     1  of Representatives, and Senate of Pennsylvania as they may be
     2  available from those respective departments or agencies, for the
     3  conduct of investigations, hearings, and determinations. The
     4  salaried clerical persons who are loaned to the Boundary Change
     5  Commission will not be paid additional compensation except for
     6  actual expenses which are incurred while attending these
     7  functions, in which case they will be reimbursed.
     8     Section 207.  Costs of Boundary Change Commission.--The cost
     9  of the functions of the Boundary Change Commission in each
    10  individual matter referred to it shall be equitably assessed by
    11  the Boundary Change Commission which in turn shall, as soon as
    12  it is assigned, meet with the municipal officials involved and
    13  such other persons who may have been involved in the initiation
    14  of the question, after which the Boundary Change Commission
    15  shall determine and advise them as to the assessment of costs
    16  that the municipalities will be expected to pay.
    17                            ARTICLE III
    18                             Annexation
    19     Section 301.  Procedure for Annexation.--Annexation of
    20  contiguous territory may be accomplished by one of the following
    21  methods as further provided in sections 302 through 310.
    22     (1)  petition to the Boundary Change Commission, approved by
    23  the Boundary Change Commission and adoption of an ordinance by
    24  the annexing municipality; or
    25     (2)  action of the governing bodies of the municipalities
    26  affected; or
    27     (3)  initiative and referendum.
    28     Section 302.  Petition to the Boundary Change Commission.--
    29  (a) An annexation may be initiated by presenting a petition to
    30  the Boundary Change Commission, signed by electors comprising at
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     1  least 50% of the number of electors voting for the office of
     2  Governor in the last gubernatorial general election within the
     3  territory proposed for annexation, or the petition shall be
     4  signed by the freeholders who represent at least 50% of the
     5  assessed valuation of real property within the territory
     6  proposed for annexation, as certified by the board or boards of
     7  county commissioners. A majority in interest of owners of
     8  undivided interests in any piece of property shall be deemed and
     9  treated as one person for the purpose of ascertaining the number
    10  of freeholders. The petition shall be accompanied by a
    11  resolution of intent to annex the territory in question from the
    12  governing body of the municipality to which the territory is
    13  proposed to be annexed. Once the circulation of a petition has
    14  begun, the petition shall be submitted to the Boundary Change
    15  Commission within 21 days. Failure to do so within that
    16  prescribed time limit will invalidate such petition.
    17  Presentation of a receipt indicating that the petition was
    18  mailed by registered or certified mail on or before the deadline
    19  date shall be evidence of timely filing.
    20     (b)  The petition for annexation to be submitted to the
    21  Boundary Change Commission shall be in such form and shall
    22  contain such information as the commission may require.
    23     (c)  The resolution of intent to annex shall include the
    24  following information:
    25     (1)  A statement that the municipality is willing to annex
    26  the territory described in the petition.
    27     (2)  A statement setting forth the plans of the municipality
    28  for extending to the territory proposed for annexation the
    29  municipal services performed within the annexing municipality at
    30  the time of annexation. Specifically, such plans shall: (i)
    19750H2045B2622                 - 10 -

     1  conform to the standards of service as determined by the
     2  Boundary Change Commission, (ii) provide for extending or
     3  improving such services to the territory proposed for annexation
     4  on the effective date of annexation on substantially the same
     5  basis and in the same manner as such services are provided
     6  within the rest of the annexing municipality prior to
     7  annexation, (iii) provide for extension or improvement of such
     8  services into the territory proposed for annexation, so that
     9  when such services are extended or improved, persons in the
    10  territory proposed for annexation will be able to secure such
    11  services, according to the policies in effect in the annexing
    12  municipality for extending such services to individual persons,
    13  lots, or subdivisions, (iv) set forth a proposed timetable which
    14  provides for the extension or improvement of such services as
    15  soon as possible following the effective date of annexation, and
    16  (v) set forth a method under which the annexing municipality
    17  plans to finance extension or improvement of such services into
    18  the territory proposed for annexation.
    19     (3)  A statement specifying a place or places within any
    20  annexing municipality affected by the proposed annexation where
    21  copies of the petition and the resolution of intent can be
    22  examined by interested individuals and public officials for a
    23  period of at least 30 days following submission of the petition
    24  to the Boundary Change Commission.
    25     Section 303.  Notice of Annexation Proposal.--Within ten days
    26  after receipt of the petition, the Boundary Change Commission
    27  shall notify by certified mail the governing bodies of each
    28  municipality affected, including the commissioners of each
    29  county in which territory proposed for annexation is located.
    30     Section 304.  Study and Report of Petition for Annexation.--
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     1  The Boundary Change Commission shall make a study of the
     2  petition for annexation and shall submit its recommendations,
     3  within six months after receipt of the petition, to the
     4  governing bodies of the municipalities affected, and the board
     5  or boards of county commissioners of the territory affected by
     6  the proposed annexation and by public notice in a newspaper of
     7  general circulation in the affected area or areas that the
     8  recommendations are available to any person on written request.
     9  If the Boundary Change Commission approves the proposed
    10  annexation, the annexing municipality may complete the
    11  annexation by the passage of an ordinance.
    12     Section 305.  Annexation of Property of Annexing Municipality
    13  or of Municipal Authority Created Solely Thereby.--Any
    14  municipality may annex by ordinance any land contiguous thereto
    15  and owned by such annexing municipality or by a municipal
    16  authority created solely by such annexing municipality, and no
    17  petition, from freeholders or residents of such annexed area,
    18  shall be necessary to initiate such annexation.
    19     Section 306.  Transfer or Exchange of Territory by Agreement
    20  of Adjacent Municipalities.--Whenever the governing bodies of
    21  two adjacent municipalities shall agree that it is to the best
    22  interest of each municipality and/or that the convenience of the
    23  inhabitants thereof would best be served thereby, territory may
    24  be transferred from one of such adjacent municipalities to the
    25  other, or territory may be exchanged between such two adjacent
    26  municipalities, upon enactment of an ordinance to that effect by
    27  each of the two municipalities, and change in the boundaries and
    28  territorial limits of the said municipalities shall be affected
    29  thereby, and no petition from freeholders or residents shall be
    30  necessary to initiate such transfer or exchange.
    19750H2045B2622                 - 12 -

     1     Section 307.  Content of Ordinances.--Every ordinance
     2  providing for annexation pursuant to this act, shall set forth a
     3  description of the territory to be annexed, and shall contain or
     4  have attached thereto a plot, showing the courses and distances
     5  of the boundaries of the annexing municipality before and after
     6  the proposed change in the boundaries or territorial limits
     7  thereof.
     8     Section 308.  Responsibilities of Annexing Municipality
     9  Following Annexation.--Within 30 days after final enactment of
    10  any ordinance effecting an annexation, pursuant to this act, the
    11  governing body of the annexing municipality shall perform all of
    12  the following acts:
    13     (1)  Assign a distinctive designation to the annexed
    14  territory, for use in referring thereto.
    15     (2)  File with the court of common pleas of the county a
    16  certified copy of the ordinance by which such change was
    17  effected, together with a plot, showing the courses and
    18  distances of the boundaries of the annexing municipality before
    19  and after such change, and clearly indicating the designation,
    20  as mentioned in paragraph (1), by which the annexed area is to
    21  be known. If the territory annexed and the annexing municipality
    22  are located in different counties, such documents and
    23  information shall be filed with the prothonotary of each of such
    24  counties. Such change in boundaries shall take effect 30 days
    25  after the date on which such documents are filed in the county
    26  in which the annexing municipality or the larger portion of the
    27  territory of the annexing municipality is located, unless (i)
    28  such date is within 90 days prior to any general, municipal or
    29  primary election, in which case such change shall take effect as
    30  of the day following such election, and (ii) an appeal is taken
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     1  before the end of such 30 day period, in which case such appeal
     2  shall act as a supersedeas, and such change shall take effect
     3  immediately upon final determination and approval of such
     4  ordinance by the court of common pleas.
     5     (3)  Give notice to the county board of elections of the
     6  filing with the court of common pleas of the documents mentioned
     7  in paragraph (2).
     8     (4)  File with the Department of Community Affairs, the
     9  Department of Transportation, the State Planning Board, the
    10  Local Government Commission, the Pennsylvania Department of
    11  Education, the State Tax Equalization Board, the Legislative
    12  Reapportionment Commission and the Boundary Change Commission a
    13  final report of such annexation, such report to set forth the
    14  name of the annexing municipality; the area of the annexed
    15  territory in acres; the total assessed valuation of the annexed
    16  territory; the approximate population of the annexed territory;
    17  and the designation, as mentioned in paragraph (1), by which the
    18  annexed area is to be known.
    19     Section 309.  Appeals.--Within 30 days after the date of
    20  filing, in the court of common pleas of the county in which the
    21  annexing municipality, or the greater portion of the territory
    22  of the annexing municipality is located, of any ordinance
    23  effecting an annexation pursuant to this act, any freeholder of
    24  the annexing municipality or of the municipality within which
    25  the proposed territory to be annexed is located may appeal from
    26  such ordinance which shall be the exclusive method of appeal.
    27  Such appeal shall be taken by petition to the court of common
    28  pleas of the county in which the annexing municipality is
    29  located, and, in the case of any annexing municipality located
    30  in more than one county, to the court of common pleas of the
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     1  county in which the greater portion of the territory of the
     2  annexing municipality is located. Such appeal shall act as a
     3  supersedeas. When any such appeal is taken, the court shall fix
     4  a day for the same and shall give notice of such hearing to all
     5  parties interested, in such manner as the court shall direct.
     6  After such hearing, the court shall determine whether the
     7  proceedings are in conformity with this act, and shall make an
     8  order or decree dismissing the appeal and approving the
     9  annexation or sustaining the appeal and dismissing the
    10  annexation. From any such final order or decree, any party in
    11  interest, aggrieved by such order or decree, may have an appeal
    12  to Commonwealth Court. Upon final determination and approval of
    13  the ordinance by the court of common pleas, or by Commonwealth
    14  Court, such annexation shall take effect immediately.
    15     Section 310.  Annexation by Initiative and Referendum.--As an
    16  alternative to annexation by the procedures set forth in the
    17  preceding sections of this act, annexation by initiative and
    18  referendum as governed by this section, may be effected in any
    19  municipality, without the approval of any governing body and
    20  without enactment of any ordinance therefor. Such referendum
    21  shall be initiated by the filing with the county board of
    22  elections of the county in which the territory proposed to be
    23  annexed shall be located, on or before the 13th Tuesday before
    24  the next primary, municipal or general election, of a petition
    25  for referendum signed by electors comprising 5% of the number of
    26  electors voting for the office of Governor in the last
    27  gubernatorial general election in such municipality within which
    28  the proposed territory to be annexed is located, or by the
    29  filing with the county board of elections of the county in which
    30  the annexing municipality, or the greater portion of the
    19750H2045B2622                 - 15 -

     1  territory thereof, is located, of a petition for referendum
     2  signed by electors comprising 5% of the number of electors
     3  voting for the office of Governor in the last gubernatorial
     4  general election in such annexing municipality. Once the
     5  circulation of a petition has begun, the petition shall be
     6  submitted to the county board of elections within 21 days.
     7  Failure to do so within that prescribed time limit will
     8  invalidate such petition. When the applicable election officials
     9  find that the petition as submitted is in proper order, they
    10  shall send copies of the initiative petition without the
    11  signatures thereon to the governing bodies of both the annexing
    12  municipality and the municipality within which the proposed
    13  territory to be annexed is located and to the Boundary Change
    14  Commission. The applicable election official shall place the
    15  proposal for such annexation on the ballot in both the annexing
    16  municipality and the municipality within which the proposed
    17  territory to be annexed is located in a manner fairly
    18  representing the content of the petition for decision by
    19  referendum at the next primary, municipal or general election,
    20  occurring not less than the 13th Tuesday after the filing of
    21  such petition. If there shall be a favorable vote in such
    22  referendum in both the annexing municipality and the
    23  municipality within which the proposed territory to be annexed
    24  is located, such annexation shall become effective upon
    25  certification by the county board of elections of the county or
    26  counties involved in the vote. If the vote shall fail, the
    27  question of annexation described in the annexation proposal
    28  shall not be voted on again for a period of five years.
    29     Section 311.  Distribution of Annexed Territory Among Wards;
    30  New Wards; Ward Officers.--In the case of any annexing
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     1  municipality with a governing body not elected entirely at
     2  large, the governing body of the annexing municipality, within
     3  30 days after the effective date of the annexation, shall
     4  petition the court of common pleas of the county in which the
     5  annexed territory is located, praying for: the assignment of the
     6  annexed territory to one or more designated wards of the
     7  annexing municipality, or distribution of the annexed territory
     8  among the wards of the annexing municipality, or the creation of
     9  one or more new wards out of the annexed territory. The court
    10  shall thereupon make the necessary decree which shall include
    11  establishing or changing election districts to conform to new
    12  ward lines and shall furnish a copy of it to each of the
    13  following: the governing body of the annexing municipality; the
    14  county board of elections of the county in which the annexing
    15  municipality is located; and the county board of elections of
    16  the county in which the annexed territory is located, the school
    17  district in which the ward or wards are located, the Secretary
    18  of the Commonwealth, the Secretary of Community Affairs and the
    19  Legislative Reapportionment Commission.
    20     In case one or more new wards is created in the annexing
    21  municipality, the decree of the court shall state the number by
    22  which each new ward is to be designated and shall contain a plan
    23  and schedule for the appointment or election of the first
    24  members of the governing body of the annexing municipality from
    25  each of the new wards so that either immediately or after a
    26  transitional period the election and tenure of the members of
    27  the governing body from the new odd-numbered wards and the new
    28  even-numbered wards as the case may be shall conform to those of
    29  the existing odd-numbered wards and even-numbered wards in the
    30  annexing municipality.
    19750H2045B2622                 - 17 -

     1     Section 312.  Adjustment of Indebtedness, Assets and
     2  Liabilities, Following Annexation.--Following any annexation of
     3  territory, the governing body of the annexing municipality and
     4  the governing body of the municipality from which the territory
     5  was annexed shall make a proper adjustment and apportionment
     6  between the annexing municipality and the municipality from
     7  which the territory was annexed of all indebtedness, assets and
     8  liabilities of the annexed municipality at the time of the
     9  annexation. The adjustment and apportionment shall provide that
    10  the annexing municipality and the municipality from which the
    11  territory was annexed, respectively, shall be entitled to share
    12  in a division of the assets, liabilities and indebtedness in the
    13  proportion that the assessed valuation, as determined by the
    14  county board for the assessment and revision of taxes, of the
    15  annexed portion of the municipality from which the territory was
    16  annexed bears to the assessed valuation, as so determined, of
    17  the entire municipality from which the territory was annexed
    18  immediately prior to the annexation.
    19     However, where indebtedness was incurred by the municipality
    20  from which the territory was annexed for an improvement located
    21  wholly within the limits of the territory annexed to the
    22  annexing municipality, that indebtedness shall be assumed by the
    23  annexing municipality and where any part of an improvement is
    24  located within the limits of the annexed territory the part of
    25  the indebtedness representing that part of the improvement shall
    26  be assumed by the annexing municipality and the adjustment and
    27  apportionment of any remaining indebtedness of the municipality
    28  from which the territory was annexed shall be made as provided
    29  in the first paragraph of this section.
    30     The adjustment and apportionment of assets, liabilities and
    19750H2045B2622                 - 18 -

     1  indebtedness shall be reduced to writing, shall be executed and
     2  acknowledged by the clerk or secretary of the annexing
     3  municipality and shall be filed with the prothonotary of the
     4  county or counties in which any municipality affected is
     5  located; and a copy shall be filed with the Department of
     6  Community Affairs.
     7     Section 313.  Judicial Adjustment on Failure or Agreement.--
     8  In case the governing bodies of the municipalities affected
     9  cannot, within six months after the annexation becomes
    10  effective, arrive at the adjustment and apportionment of
    11  indebtedness, assets and liabilities, as required by section 312
    12  of this act, the governing body, a citizen, or a property owner
    13  of any of the municipalities affected may appeal to the court of
    14  common pleas of the county in which the annexing municipality,
    15  or the greater portion of its territory, is located. The court
    16  shall thereupon appoint three disinterested commissioners, all
    17  of whom shall be residents and taxpayers of the county, but none
    18  of whom may be a resident or an owner of real estate in the
    19  municipalities affected. Those commissioners, after hearing,
    20  notice of which shall be given to the municipalities affected as
    21  directed by the court, shall proceed to make the apportionment
    22  and adjustment, and shall report to the court, stating the
    23  amount, if any, that shall be due and payable from one
    24  municipality affected to another, as well as the amount of
    25  indebtedness, if any, that shall be assumed by the municipality
    26  there affected or both.
    27     Section 314.  Proceedings on Judicial Adjustment.--The
    28  commissioners appointed under the terms of section 313 of this
    29  act shall give the affected municipalities at least five days'
    30  notice of the filing of their report. Unless exceptions to the
    19750H2045B2622                 - 19 -

     1  report are filed within 30 days after the date when it was
     2  filed, the report shall be confirmed absolutely by the court.
     3  Any sum awarded by the report to any municipality shall be a
     4  legal and valid claim in its favor against the other
     5  municipality. Any real or personal property awarded to any
     6  municipality shall become its property. Any claim of
     7  indebtedness charged against a municipality may be collected
     8  from that municipality by its creditors.
     9     Section 315.  Exceptions to Report.--In case exceptions are
    10  filed to the report of the commissioners appointed as provided
    11  for in section 313, the court shall dispose of the same, taking
    12  testimony thereon if deemed advisable. The court shall enter its
    13  decree confirming the report of the commissioners, or modifying
    14  the same as to it appears just and proper. The decision of the
    15  court shall be final unless an appeal is taken to the
    16  Commonwealth Court as in other cases.
    17     Section 316.  Compensation and Expenses of Commissioners;
    18  Costs.--The commissioners provided for in section 313 shall be
    19  allowed such compensation and expenses for their services as the
    20  court shall fix. The costs of the proceedings, including the
    21  compensation and expenses of the commissioners, shall be
    22  apportioned among the municipalities involved as the court deems
    23  proper and equitable.
    24     Section 317.  Where Annexing Municipality Located in Two or
    25  More Counties.--In case the territory of an annexing
    26  municipality is located in two or more counties, the court of
    27  common pleas of the county in which the greater portion of the
    28  territory of the annexing municipality is located shall have
    29  exclusive jurisdiction over the proceedings to determine the
    30  cost of certain improvements in the annexed territory and to
    19750H2045B2622                 - 20 -

     1  adjust and apportion the indebtedness among the municipalities
     2  affected.
     3     Section 318.  Liquidation of Indebtedness.--The court shall
     4  make all necessary orders for the collection by any municipality
     5  affected, as the case may be, and payment by it to any other
     6  municipality affected of its share of any indebtedness
     7  apportioned to it. The order may direct that the municipality
     8  against which the indebtedness was apportioned levy and collect
     9  special taxes for one year or pay by annual installments over a
    10  stated period of time, the amount needed to liquidate the
    11  indebtedness.
    12     If acceptable to the municipality to which money is owed the
    13  other municipality shall have the power to issue and deliver to
    14  the first municipality interest-bearing notes in liquidation of
    15  the indebtedness.
    16     Section 319.  Collection of Taxes Levied Prior to
    17  Annexation.--All taxes assessed and levied against property in
    18  annexed territory prior to the effective date of the annexation
    19  shall be paid to the municipality from which the territory has
    20  been annexed, and the collection and enforcement thereof shall
    21  be as though the annexation had not taken place.
    22     Section 320.  Authorized Expenditures.--Municipalities
    23  initiating annexations under the provisions of this act are
    24  authorized to make expenditures for surveys required to describe
    25  the property under consideration, or for any other purpose
    26  necessary to plan for the study and or annexation of territory
    27  adjacent to the municipality.
    28     Section 321.  Crossing County Lines.--When the municipalities
    29  affected are located in different counties, the county board of
    30  elections and the court of common pleas in the county where the
    19750H2045B2622                 - 21 -

     1  annexing municipality is located shall furnish all information
     2  relating to an annexation to their counterparts in the other
     3  county or counties concerned.
     4     Section 322.  Election Districts and Officers.--All election
     5  districts in the annexed territory shall remain as constituted
     6  before the annexation except as provided in section 311 of this
     7  act and shall become election districts of the annexing
     8  municipality until changed in accordance with the act of June 3,
     9  1937 (P.L.1333, No.320), known as the "Pennsylvania Election
    10  Code." All election district officers shall continue in office
    11  until the expiration of their terms, unless the office is
    12  vacated.
    13                             ARTICLE IV
    14                      Consolidation or Merger
    15     Section 401.  Procedure for Consolidation or Merger.--Any two
    16  or more municipalities, situated in the same county or in two or
    17  more different counties, may be consolidated or merged as
    18  provided in this article into a single municipality, if each of
    19  such municipalities shall be contiguous to at least one other of
    20  such municipalities, and if together such municipalities would
    21  form a consolidated or merged municipality that is territorially
    22  compact. Consolidation or merger may be commenced by one of the
    23  following methods as further provided in sections 402 through
    24  405.
    25     (1)  by joint agreement of the governing bodies of the
    26  municipalities proposed for consolidation or merger as approved
    27  by ordinance; or
    28     (2)  by initiative; or
    29     (3)  by the Boundary Change Commission.
    30     Section 402.  Initiative of Consolidation or Merger
    19750H2045B2622                 - 22 -

     1  Proceedings by Joint Agreement of Governing Bodies.--The
     2  governing bodies of all the municipalities proposed for
     3  consolidation or merger shall enter into a joint agreement under
     4  the official seal of each municipality for the consolidation or
     5  merger thereof into one municipality. The joint agreement shall
     6  set forth, (i) the names of the municipalities that are parties
     7  to the agreement, (ii) the name and the territorial boundaries
     8  of the municipality proposed for consolidation or merger, (iii)
     9  the type and class of the new municipality, if the
    10  municipalities entering into the agreement are of more than one
    11  type or class, (iv) whether the municipality proposed to be
    12  consolidated or merged is to be governed solely by the code and
    13  other general laws applicable to the kind and class of the
    14  consolidated municipality or whether it is to be governed by a
    15  home rule charter or an optional plan of government previously
    16  adopted by one of the consolidating or merging municipalities;
    17  and (v) the number of wards, if any, into which the new
    18  municipality is to be divided for the purpose of electing all or
    19  some of the members of the municipal governing body.
    20     The joint agreement shall also set forth those terms agreed
    21  upon for (i) the disposition of the assets of each of the
    22  municipalities that are parties thereto, (ii) the liquidation of
    23  the indebtedness, and (iii) the responsibility for the
    24  liabilities of each, either jointly, separately or in certain
    25  defined proportions, by separate rates of taxation on all
    26  property subject to taxation within the boundaries of each of
    27  the constituent municipalities.
    28     The joint agreement shall also set forth the governmental
    29  organization of the new municipality in so far as it concerns
    30  elected officers and shall contain a transitional plan and
    19750H2045B2622                 - 23 -

     1  schedule applicable to elected officers. The plan shall provide
     2  for the termination of the elected officers of the constituent
     3  municipalities and for the election of the first officers of the
     4  new municipality so that, either immediately or following a
     5  transitional period, election and tenure shall conform to those
     6  in other municipalities of the same kind and class in the
     7  Commonwealth with properly staggered terms where those are
     8  required or desired.
     9     The joint agreement shall provide for common administration
    10  and enforcement, during the two-year transitional period
    11  referred to in section 409, by the officer or officers of the
    12  consolidated municipality named in the agreement, of those
    13  ordinances that are to be enforced separately within the former
    14  constituent municipalities.
    15     Section 403.  Initiation of Consolidation or Merger
    16  Proceedings by Petition of Electors.--In order for consolidation
    17  or merger proceedings to be initiated by petition of electors,
    18  petitions containing signatures of at least 5% of the electors
    19  in each municipality, respectively, voting for the office of
    20  Governor in the last gubernatorial general election in each
    21  municipality proposed to be involved in such consolidation or
    22  merger shall be filed with the county board of elections of the
    23  county in which such municipality, or the greater portion of the
    24  territory thereof, is located. When the applicable election
    25  officials find that the petition or petitions as submitted are
    26  in proper order, they shall send copies of the initiative
    27  petition or petitions without the signatures thereon to the
    28  governing bodies of each of the municipalities affected by the
    29  consolidation or merger and to the Boundary Change Commission.
    30     Every such petition shall set forth (i) the name of the
    19750H2045B2622                 - 24 -

     1  municipality from which the signers of the petition were
     2  obtained, (ii) the names of the municipalities proposed to be
     3  involved in the consolidation or merger, (iii) the name of the
     4  municipality proposed for consolidation or merger, (iv) the type
     5  and class of the new municipality, if the municipalities to be
     6  involved in the consolidation or merger are of more than one
     7  type or class, (v) whether the municipality proposed for
     8  consolidation or merger is to be governed solely by the code and
     9  other general laws applicable to the kind and class of the
    10  consolidated or merged municipality, or whether it is to be
    11  governed by a home rule charter or an optional plan of
    12  government previously adopted by one of the consolidated or
    13  merged municipalities, and (vi) the number of wards, if any, the
    14  new municipality is to be divided into for the purpose of
    15  electing all or some of the members of the municipal governing
    16  body.
    17     Once the circulation of a petition has begun, the petition
    18  shall be submitted to the county board of elections within 21
    19  days. Failure to do so within that prescribed time limit will
    20  invalidate such petition.
    21     Section 404.  Initiation of Consolidation or Merger
    22  Proceedings by Petition to the Boundary Change Commission.--
    23  Petitions may be submitted to the Boundary Change Commission,
    24  each petition containing signatures of at least 5% of the
    25  electors in each municipality, respectively, voting for the
    26  office of Governor in the last gubernatorial general election in
    27  such municipality, requesting consolidation or merger of two or
    28  more municipalities into one municipality. Every such petition
    29  shall set forth (i) the name of the municipality from which the
    30  signers of the petition were obtained, (ii) the names of the
    19750H2045B2622                 - 25 -

     1  municipalities proposed to be involved in the consolidation or
     2  merger, (iii) the name of the municipality proposed for
     3  consolidation or merger, (iv) the type and class of the new
     4  municipality, if the municipalities to be involved in the
     5  consolidation or merger are of more than one type or class, (v)
     6  whether municipality proposed for consolidation or merger is to
     7  be governed solely by the code and other general laws applicable
     8  to the kind and class of the consolidated or merged
     9  municipality, or whether it is to be governed by a home rule
    10  charter or an optional plan of government previously adopted by
    11  one of the consolidated or merged municipalities, and (vi) the
    12  number of wards, if any, the new municipality is to be divided
    13  into for the purpose of electing some or all of the members of
    14  the municipal governing body.
    15     Once the circulation of a petition has begun, the petition
    16  shall be submitted to the Boundary Change Commission within 21
    17  days. Failure to do so within that prescribed time limit will
    18  invalidate such petition. Presentation of a receipt indicating
    19  that the petition was mailed by registered or certified mail on
    20  or before the deadline date shall be evidence of timely filing.
    21  Whenever such petitions shall have been received by the Boundary
    22  Change Commission the Boundary Change Commission shall take all
    23  necessary steps to place such referendum question before the
    24  electors of all municipalities proposed to be so consolidated or
    25  merged. Such steps may include: a study of the consolidation or
    26  merger proposal; advising citizens and officials on any and all
    27  matters pertaining thereto; and holding meetings or conferences
    28  in any of the municipalities proposed to be consolidated or
    29  merged: Provided, that all such studies, meetings and assistance
    30  by the Boundary Change Commission shall be completed within six
    19750H2045B2622                 - 26 -

     1  months after receipt of the petitions received from
     2  municipalities involved in a specific consolidation or merger
     3  proposal, and such completion date shall be attested by the
     4  Chairman of the Boundary Change Commission in a document to be
     5  filed with the Secretary of the Commonwealth.
     6     Section 405.  Conduct of Referenda.--Following initiation of
     7  proceedings for consolidation or merger by either of the three
     8  procedures set out in the three preceding section of this act,
     9  the question of such consolidation or merger shall be placed
    10  before the electors of each of the municipalities proposed to be
    11  so consolidated or merged into a single municipality. Such
    12  referendum shall be held at the first primary, municipal or
    13  general election held not less than the 13th Tuesday after:
    14     (1)  the date of the general agreement entered into under the
    15  provisions of section 402; or
    16     (2)  the date of filing of the petition filed under the
    17  provisions of section 403; or
    18     (3)  the date of completion of the work of the Boundary
    19  Change Commission under the provisions of section 404. Such
    20  consolidation or merger shall not be effected unless the
    21  referendum question thereon shall be approved by a majority of
    22  all the electors voting hereon in each of the municipalities in
    23  which such referendum is held. If in any one of the
    24  municipalities in which any such referendum shall be held, a
    25  majority in favor of such consolidation or merger shall not
    26  result, such consolidation or merger shall fail and such
    27  consolidation or merger shall not take place. The question of
    28  merger or consolidation described in the merger or consolidation
    29  proposal shall not be voted on again for a period of five years;
    30  or
    19750H2045B2622                 - 27 -

     1     (4)  if the electors of two or more contiguous municipalities
     2  proposed for consolidation or merger shall approve the
     3  consolidation or merger, but one or more of the municipalities
     4  shall fail to approve, the Boundary Change Commission may make a
     5  study of the feasibility of consolidation or merger of those
     6  municipalities approving the proposal, and in its discretion may
     7  initiate a local referendum for the consolidation or merger of
     8  such municipalities at the next primary, municipal or general
     9  election but not less than the 13th Tuesday after the Boundary
    10  Change Commission has submitted its study to the local governing
    11  bodies of the municipalities involved.
    12     Section 406.  Consolidation or Merger Agreement.--Upon
    13  favorable action by the electorate on consolidation or merger,
    14  in cases where consolidation or merger was initiated otherwise
    15  than by joint agreement of municipal governing bodies under
    16  section 402, the governing bodies of all municipalities to be
    17  consolidated or merged into a single new municipality shall meet
    18  within 60 days after the certification of the favorable vote and
    19  shall thereupon make a consolidation or merger agreement, as
    20  follows:
    21     (1)  In case the governing body, or part of the governing
    22  body, of the consolidated or merged municipality is to be
    23  elected on a ward basis, the agreement shall set forth the
    24  boundaries and the ward designation, by number, of each ward,
    25  and the number of members of the municipal governing body to be
    26  elected from each ward.
    27     (2)  The agreement shall set forth those terms agreed upon
    28  for: the disposition of the assets of each of the municipalities
    29  that are parties to the agreement; and the liquidation of the
    30  indebtedness and the responsibility for the liabilities of each,
    19750H2045B2622                 - 28 -

     1  either jointly, separately or in certain defined proportions, by
     2  separate rates of taxation on all property subject to taxation
     3  within the boundaries of each of the municipalities involved.
     4     (3)  The agreement shall also set forth the governmental
     5  organization of the new municipality, in so far as it concerns
     6  elected officers, and shall contain a transitional plan and
     7  schedule applicable to elected officers. The agreement shall
     8  provide for the termination of the elected officers of the
     9  municipalities being merged or consolidated, and the election of
    10  the first officers of the new municipality so that, either
    11  immediately or following a transitional period, election and
    12  tenure shall conform to those in other municipalities of the
    13  same kind and class in the Commonwealth, with properly staggered
    14  terms, where those are required or desired.
    15     (4)  The agreement shall provide for common administration
    16  and enforcement, during the two year transitional period
    17  referred to in section 409, by the officer or officers of the
    18  consolidated municipality named in the agreement, of those
    19  ordinances that are to be enforced separately within the former
    20  constituent municipalities.
    21     A copy of the consolidation or merger agreement shall be
    22  filed with the Boundary Change Commission, the Department of
    23  Community Affairs, the Department of Transportation, the State
    24  Planning Board, the Local Government Commission, the Department
    25  of Education, State Tax Equalization Board, the Legislative
    26  Reapportionment Commission, the court of common pleas and the
    27  board of county commissioners of the county or counties in which
    28  municipalities affected are located.
    29     Section 407.  Effectuation of Consolidation or Merger.--The
    30  municipalities so consolidated or merged shall continue to be
    19750H2045B2622                 - 29 -

     1  governed as before consolidation or merger until the first
     2  Monday of January following the municipal election next
     3  succeeding the election at which consolidation or merger
     4  referenda were held. At that municipal election, the necessary
     5  officers of the consolidated municipality shall be elected in
     6  accordance with the terms of the general law affecting
     7  municipalities of the kind or class of the consolidated or
     8  merged municipality, or, in case of a consolidated or merged
     9  municipality operating under a home rule charter or optional
    10  plan of government, in accordance with the charter or optional
    11  plan or with general law affecting home rule or optional plan
    12  municipalities, as applicable. The officers elected at that
    13  municipal election shall be elected for terms of office under
    14  the plan and schedule set out in the consolidation or merger
    15  agreement authorized by section 402 or 406, as the case may be.
    16  They shall take office as officers of the merged municipality on
    17  the first Monday of January following the municipal election at
    18  which they were elected, and, thereupon, the consolidated or
    19  merged municipality shall begin to function and the former
    20  municipalities so consolidated or merged shall be abolished.
    21     Section 408.  Effect of Transition on Employees of the
    22  Consolidated or Merged Municipality.--As of the date when a
    23  consolidated or merged municipality shall begin to function, all
    24  appointive offices and positions then existing in all former
    25  municipalities involved in such consolidation or merger shall be
    26  disposed of in accordance with the terms of the consolidation or
    27  merger agreement, except for officers and employees at such time
    28  protected by any tenure of office or civil service provision.
    29  Provisions shall be made for instances in which there is
    30  duplication of positions, included but not limited to chief of
    19750H2045B2622                 - 30 -

     1  police or manager and to such other matters as varying length of
     2  employee contracts, different civil service regulations in the
     3  constituent municipalities, and differing ranks and position
     4  classifications for similar positions.
     5     Section 409.  Effect of Consolidation or Merger.--(a) Except
     6  for ordinances of which the provisions by their very nature
     7  could not be carried out after consolidation or merger, the
     8  ordinances in force in each of the constituent municipalities at
     9  the time of the consolidation or merger shall continue in force
    10  throughout the territory for which they were originally enacted
    11  until replaced or repealed by the governing body of the
    12  consolidated or merged municipality but subject to any common
    13  administrative and enforcement arrangements contained in the
    14  consolidation agreement. After consolidation or merger becomes
    15  effective, a new ordinance book shall be used by the
    16  municipality and the first document to be recorded in it shall
    17  be the consolidation agreement. No later than two years after
    18  consolidation or merger goes into effect, codification of all
    19  the ordinances of the constituent municipalities shall be
    20  completed. This shall include: new provisions uniform throughout
    21  the new municipality when needed; repeal of obsolete material;
    22  and tabulation or indexing of those ordinances of the
    23  constituent municipalities that are of permanent effect.
    24     (b)  All rights, privileges and franchises of each of the
    25  constituent municipalities and all property, real, personal and
    26  mixed belonging to each of those municipalities 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; all
    19750H2045B2622                 - 31 -

     1  agreements and contracts shall remain in force; and all debts,
     2  liabilities and duties of each of the municipalities shall be
     3  attached to the consolidated or merged municipality and may be
     4  enforced against it.
     5                             ARTICLE V
     6                           Incorporation
     7     Section 501.  Procedure for Incorporation.--A new
     8  municipality may be incorporated by initiative and referendum
     9  from contiguous territory of all or part of an existing
    10  municipality or municipalities. Incorporation proposals which
    11  include a part of a municipality shall receive the approval of
    12  the Boundary Change Commission before they are submitted for
    13  referendum.
    14     Section 502.  Petition for Incorporation.--The petition for
    15  incorporation of a municipality shall be submitted to the
    16  Boundary Change Commission and shall be signed by electors
    17  comprising at least 5% of the elections in each municipality,
    18  respectively, voting for the office of Governor in the last
    19  gubernatorial general election within each municipality proposed
    20  for incorporation, or the petition or petitions shall be signed
    21  by the freeholders in each municipality or part thereof who
    22  represent at least 50% of the assessed valuation of real
    23  property within each municipality or part thereof proposed for
    24  incorporation, as certified by the board or boards of county
    25  commissioners. A majority in interest of owners of undivided
    26  interests in any piece of property shall be deemed and treated
    27  as one person for the purpose of ascertaining the number of
    28  freeholders. Once the circulation of a petition has begun, the
    29  petition shall be submitted to the Boundary Change Commission
    30  within 21 days. Failure to do so within that prescribed time
    19750H2045B2622                 - 32 -

     1  limit will invalidate such petition. Presentation of a receipt
     2  indicating that the petition was mailed by registered or
     3  certified mail on or before the deadline date shall be evidence
     4  of timely filing.
     5     Section 503.  Incorporation Petition.--The petition for
     6  incorporation to the Boundary Change Commission shall be in such
     7  form and shall contain such information as the commission may
     8  require.
     9     Section 504.  Study and Report of Petition for
    10  Incorporation.--The Boundary Change Commission shall make a
    11  study of the petition for incorporation and shall submit its
    12  recommendations, within six months after receipt of the
    13  petition, to the person in each municipality who submitted the
    14  petition, to the governing bodies of the municipalities
    15  affected, and to the board or boards of county commissioners of
    16  the territory affected by the proposed incorporation.
    17     Section 505.  Incorporation Election.--The Boundary Change
    18  Commission shall cause a question relating to the proposed
    19  incorporation to be submitted to the electorate of the territory
    20  proposed for incorporation; however, the Boundary Change
    21  Commission shall not cause to be submitted for referendum any
    22  incorporation proposal affecting less than an entire
    23  municipality unless the proposal has been approved by the
    24  commission. Such election shall be held at the next primary,
    25  municipal or general election not less than the 13th Tuesday
    26  after the Boundary Change Commission has requested the
    27  appropriate county board or boards of election to place the
    28  question on the ballot. The election shall be conducted under
    29  the provisions of the act of June 3, 1937 (P.L.1333, No.320),
    30  known as the "Pennsylvania Election Code." In case a referendum
    19750H2045B2622                 - 33 -

     1  on incorporation of territory not constituting an entire
     2  existing municipality or one or more entire existing wards, the
     3  county board of elections shall prescribe the procedure to be
     4  followed. If a majority of the electors voting on such question
     5  in each of the municipalities affected shall vote in favor of
     6  such incorporation or, in any case where a proposal affecting
     7  less than an entire municipality has been approved by the
     8  Boundary Change Commission, if a majority of the electors voting
     9  upon such question in the territory proposed for incorporation
    10  shall vote in favor of such incorporation, it shall be deemed
    11  final.
    12     Certification of the vote favorable to incorporate shall be
    13  made by the county board of elections to the governing bodies of
    14  the municipalities affected, to the appropriate board or boards
    15  of county commissioners and to the Boundary Change Commission.
    16     If the incorporation proposal includes either all or part of
    17  two or more municipalities and if a majority of the persons
    18  voting on such question in any one of the municipalities
    19  affected shall vote against such incorporation, then the
    20  incorporation proceedings shall fail. If the referendum on
    21  incorporation proceedings shall fail, the question of
    22  incorporation of territory described in the incorporation
    23  proposal shall not be voted on again for a period of five years.
    24     Section 506.  Effectuation of Incorporation.--(a)
    25  Incorporation shall become effective on the 1st Tuesday after
    26  the 1st Monday in January following the next succeeding
    27  municipal election or special election held in conjunction with
    28  any primary, general or municipal election at which local
    29  officials of the new municipality shall be elected. At the
    30  request of the petitioners, the special election may be called
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     1  for by the court of common pleas who shall then fix the time,
     2  place, and manner of holding the special election which shall be
     3  in conjunction with any primary, general or municipal election.
     4     (b)  Municipal officers chosen at a special election shall
     5  serve until the 1st Tuesday after the 1st Monday in January
     6  following the next succeeding municipal election at which time
     7  their successors shall be elected in accordance with the laws
     8  covering the election of municipal officials of the type and
     9  class of municipality to which the new incorporated municipality
    10  belongs.
    11     (c)  The municipal election at which said officials are to be
    12  elected shall be held in accordance with the laws governing
    13  municipal officials of the type and class of municipality to
    14  which the new municipality belongs. The election of municipal
    15  officials shall be such as to provide for staggering terms of
    16  office as closely in compliance as possible with the governing
    17  municipal code.
    18     (d)  Said election shall not be held before the 13th Tuesday
    19  after certification of the favorable vote to incorporate. The
    20  court of common pleas having jurisdiction shall appoint from
    21  among the electors of the newly incorporated municipality a
    22  judge and inspector to hold the election.
    23     (e)  When the newly incorporated municipality shall go into
    24  effect, the former municipality or municipalities shall cease to
    25  exist in every case in which the entire territory of a
    26  municipality or municipalities has been included in the newly
    27  incorporated municipality.
    28     Section 507.  Assets, Liabilities and Indebtedness Where
    29  Entire Municipality Incorporated as New Municipality.--Where an
    30  entire municipality shall be incorporated as a new municipality,
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     1  all assets of the former municipality shall become assets of and
     2  property of the new municipality, all indebtedness of the old
     3  municipality shall be assumed by the new municipality, and all
     4  liabilities of the old municipality shall become liabilities of
     5  the new municipality.
     6     Section 508.  Adjustment of Assets, Liabilities and
     7  Indebtedness Where Part of Municipality is Incorporated as New
     8  Municipality.--Following any incorporation of part of the
     9  territory of a municipality as a new municipality, the governing
    10  body of the newly incorporated municipality and the governing
    11  body of the municipality from which territory was incorporated
    12  shall make a proper adjustment and apportionment between the two
    13  municipalities of all indebtedness, assets and liabilities of
    14  the municipality from which territory was incorporated, as of
    15  the time of incorporation. The adjustment and apportionment
    16  shall provide that both the new municipality and the original
    17  municipality shall be entitled to share in a division of the
    18  assets, liabilities and indebtedness in the proportion that the
    19  assessed valuation of the new municipality, as determined by the
    20  county board for the assessment and revision of taxes, bears to
    21  the assessed valuation, as so determined, of the original
    22  municipality immediately prior to the annexation.
    23     However, where indebtedness was incurred by the municipality
    24  from which the new municipality was incorporated for an
    25  improvement located wholly within the newly incorporated
    26  municipality, that indebtedness shall be assumed by the newly
    27  incorporated municipality, and where any part of an improvement
    28  is located within the limits of the newly incorporated
    29  municipality, the part of the indebtedness representing that
    30  part of the improvement shall be assumed by the newly
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     1  incorporated municipality, and apportionment of any remaining
     2  indebtedness of the original municipality shall be made as
     3  provided in the first paragraph of this section.
     4     The adjustment and apportionment of the assets, liabilities
     5  and indebtedness shall be reduced to writing, shall be executed
     6  and acknowledged by the clerk or secretary of the newly
     7  incorporated municipality and shall be filed with the
     8  prothonotary of the county or counties in which the two
     9  municipalities are located; and copies shall be filed with the
    10  Department of Community Affairs, the Department of
    11  Transportation, the Local Government Commission, the Boundary
    12  Change Commission, the Pennsylvania Department of Education, the
    13  State Tax Equalization Board, the Pennsylvania Legislative
    14  Reapportionment Commission, and the boards of county
    15  commissioners of the counties in which the two municipalities
    16  are located.
    17     Section 509.  Judicial Adjustment on Failure of Agreement.--
    18  In case the governing bodies of the newly incorporated
    19  municipality and the municipality from which territory was
    20  incorporated cannot, within six months after the incorporation
    21  becomes effective, arrive at the adjustment and apportionment of
    22  the indebtedness, assets and liabilities, as required by section
    23  507, the governing body, a citizen, or a property owner of any
    24  of the municipalities affected may appeal to the court of common
    25  pleas of the county in which the municipality from which
    26  territory was incorporated, or the greater portion of the area
    27  of that municipality, is located. The court shall thereupon
    28  appoint three disinterested commissioners, all of whom shall be
    29  residents and taxpayers of the county, but none of whom may be a
    30  resident or an owner of real estate in either the newly
    19750H2045B2622                 - 37 -

     1  incorporated municipality or the municipality from the territory
     2  of which that municipality was incorporated. Those
     3  commissioners, after hearing, notice of which shall be given to
     4  both interested municipalities as directed by the court, shall
     5  proceed to make the apportionment and adjustment, and shall
     6  report to the court stating the amount, if any, that shall be
     7  due and payable from the newly incorporated municipality to the
     8  municipality from which it was incorporated or from the
     9  municipality from which the new municipality was incorporated,
    10  as well as the amount of indebtedness, if any, that shall be
    11  assumed by the newly incorporated municipality, or the
    12  municipality from which it was incorporated, or both of them.
    13     Section 510.  Proceedings on Judicial Adjustment.--(a) The
    14  commissioners shall give the incorporating municipality and the
    15  municipality from which territory was incorporated at least 15
    16  days' notice of the filing of their report. Unless exceptions to
    17  the report are filed, the report shall be confirmed absolutely
    18  by the court. Any sum awarded by the court to the incorporating
    19  municipality or to the municipality from which territory has
    20  been incorporated shall be a legal and valid claim in its favor
    21  against the municipality charged therewith. Any property, real
    22  or personal, given to the incorporating municipality or to the
    23  municipality from which territory has been incorporated shall
    24  become its property. Any claim or indebtedness charged against
    25  the incorporating municipality or the municipality from which
    26  territory has been incorporated shall be paid within one year
    27  from the date of confirmation absolute.
    28     (b)  If the exceptions are filed to the report of the
    29  commissioners, the court shall dispose of same and enter its
    30  decree or modify the same as to it appears just and proper.
    19750H2045B2622                 - 38 -

     1     Section 511.  Compensation and Expenses of Commissioners;
     2  Costs.--The commissioners provided for in section 509 shall be
     3  allowed such compensation and expenses for their services as the
     4  court shall fix. Such compensation and expenses shall be paid to
     5  the commissioners for days on which they are actually engaged in
     6  the performance of their duties. The costs of the proceedings,
     7  including the compensation and expenses of the commissioners,
     8  shall be apportioned between the newly incorporated municipality
     9  and the municipality from which territory has been incorporated
    10  as it deems proper and equitable.
    11     Section 512.  Where Incorporating Municipality is Located in
    12  Two or More Counties.--If the territory of the new incorporated
    13  municipality is located in two or more counties, the court of
    14  common pleas of the county in which the greater portion of the
    15  territory of the new incorporated municipality is located shall
    16  have exclusive jurisdiction over the proceedings to determine
    17  the cost of certain improvements in the territory incorporated
    18  and to adjust and apportion the indebtedness between the
    19  incorporating municipality and the municipality from which
    20  territory has been incorporated.
    21     Section 513.  Liquidation of Indebtedness.--The court may
    22  make all necessary orders for the collection by the newly
    23  incorporated municipality or by the municipality from which
    24  territory was incorporated, as the case may be, and payment by
    25  it to the other municipality, of its share of any indebtedness
    26  apportioned to it. The order may direct that the municipality
    27  against which the indebtedness was apportioned levy and collect
    28  special taxes for one year, or pay by annual installments over a
    29  stated period of time, the amount needed to liquidate the
    30  indebtedness.
    19750H2045B2622                 - 39 -

     1     If acceptable to the municipality to which money is owned,
     2  the other municipality shall have the power to issue and deliver
     3  to the first municipality interest-bearing bonds in liquidation
     4  of the indebtedness.
     5     Section 514.  Collection of Taxes Levied Prior to
     6  Incorporation.--All taxes levied against property in the
     7  territory incorporated prior to the effective date of the
     8  incorporation shall be paid to the municipality from which
     9  territory has been incorporated and the collection and
    10  enforcement thereof shall be as though the incorporation had not
    11  taken place.
    12     Section 515.  Crossing County Lines.--Where the newly
    13  incorporated municipality is located in more than one county,
    14  the county board of elections and the court of common pleas in
    15  the county in which the greater part of the territory of the
    16  newly incorporated municipality is located shall furnish
    17  official information relating to the incorporation to their
    18  counterparts in the other county or counties concerned.
    19     Section 516.  Election Districts and Officers.--Except for
    20  any temporary arrangements for the purpose of a referendum under
    21  section 505, all election districts in the new incorporated
    22  territory shall remain as constituted before the incorporation,
    23  and shall become election districts of the incorporating
    24  municipality until changed in accordance with the act of June 3,
    25  1937 (P.L.1333, No.320), known as the "Pennsylvania Election
    26  Code." All election district officers shall continue in office
    27  until the expiration of their terms, unless the office is
    28  vacated.
    29                             ARTICLE VI
    30                     Repeals and Effective Date
    19750H2045B2622                 - 40 -

     1     Section 601.  Repeals.--(a) The following acts and parts of
     2  acts are repealed:
     3     (1)  The act of April 22, 1903 (P.L.247, No.183), entitled
     4  "An act enabling the burgess and council of any borough or
     5  incorporated town, by ordinance, to annex to the borough or
     6  incorporated town adjacent territory, upon petition of a
     7  majority of the freehold owners thereof."
     8     (2)  The act of April 28, 1903 (P.L.332, No.260), entitled
     9  "An act for the annexation of any city, borough, township, or
    10  part of a township, to a contiguous city, and providing for the
    11  indebtedness of the same."
    12     (3)  The act of February 7, 1906 (P.L.7, No.1), entitled "An
    13  act to enable cities that are now, or may hereafter be,
    14  contiguous or in close proximity, to be united, with any
    15  intervening land other than boroughs, in one municipality;
    16  providing for the consequences of such consolidation, the
    17  temporary government of the consolidated city, payment of the
    18  indebtedness of each of the united territories, and the
    19  enforcement of debts and claims due to or from each."
    20     (4)  The act of May 28, 1907 (P.L.295, No.223), entitled "A
    21  supplement to an act, entitled 'An act for the annexation of any
    22  city, borough, township, or part of a township, to a contiguous
    23  city, and providing for the indebtedness of the same,' approved
    24  the twenty-eighth day of April, Anno Domini one thousand nine
    25  hundred and three; to enable territory now annexed, or which may
    26  hereafter be annexed under the provisions of said act, to be
    27  arranged and erected into a ward, or wards, of the city to which
    28  it is annexed; and providing the procedure for that purpose, and
    29  for the proper representation of the ward or wards erected."
    30     (5)  The act of June 1, 1907 (P.L.377, No.271), entitled "A
    19750H2045B2622                 - 41 -

     1  supplement to an act, approved April twenty-eighth, one thousand
     2  nine hundred three, entitled 'An act for the annexation of any
     3  city, borough, township, or part of a township, to a contiguous
     4  city, and providing for the indebtedness of the same,' providing
     5  for the preservation of rights of creditors and of liens, and
     6  for funding the debt of the municipality or school district
     7  annexed."
     8     (6)  The act of May 6, 1915 (P.L.260, No.152), entitled "A
     9  supplement to an act approved the seventh day of February, one
    10  thousand nine hundred and six, entitled 'An act to enable cities
    11  that are now or may hereafter be contiguous or in close
    12  proximity, to be united with any intervening land, other than
    13  boroughs, in one municipality; providing for the consequences of
    14  such consolidation, the temporary government of the consolidated
    15  city, payment of the indebtedness of each of the united
    16  territories, and the enforcement of debts and claims due to or
    17  from each,' by providing that the indebtedness of each city and
    18  intervening land, heretofore or hereafter united or consolidated
    19  under the provisions of said act, shall be paid by the
    20  consolidated city, and for the levying of a uniform tax, upon
    21  all the territory included within the consolidated city, for the
    22  payment of the same."
    23     (7)  The act of May 6, 1915 (P.L.272, No.167), entitled "A
    24  supplement to an act, approved the twenty-eighth day of April,
    25  one thousand nine hundred and three, entitled 'An act for the
    26  annexation of any city, borough, township, or part of a
    27  township, to a contiguous city, and providing for the
    28  indebtedness of the same,' by providing that any city,
    29  heretofore or hereafter enlarged by any annexation under the
    30  terms of said act, shall be liable for and shall pay the
    19750H2045B2622                 - 42 -

     1  indebtedness of such city and the territory so annexed; and
     2  providing for the levying of a uniform tax upon all the
     3  territory included within such city as enlarged by such
     4  annexation, for the payment of all such indebtedness."
     5     (8)  The act of May 31, 1923, (P.L.473, No.258), entitled "An
     6  act authorizing the annexation to cities of the second class of
     7  portions of townships not exceeding one hundred acres in area
     8  and totally surrounded by said cities; and providing for the
     9  division of the assets and liabilities of said townships."
    10     (9)  The act of May 12, 1925 (P.L.596, No.320), entitled "An
    11  act providing for the alteration of the boundaries of counties
    12  in certain cases for the adjustment of the indebtedness thereof;
    13  providing the effect thereof."
    14     (10)  Sections 201, 202, 203, 204, 205, 206, 207, 208, 209,
    15  210, 211, 250, 251, 252, 253, 254, 255, 501, 502, 503, 504, 505,
    16  506, 515, 516, 517, 518, 525, 526, 535, 536, 540, 541, 542, 543,
    17  544, 545, 550, 551, 560, 561, 562, 570 and 580, act of June 23,
    18  1931 (P.L.932, No.317), known as "The Third Class City Code,"
    19  reenacted and amended June 28, 1951 (P.L.662, No.164).
    20     (11)  Sections 210, 211, 212, 213, 214, 216, 217, 218 and
    21  219, act of June 24, 1931 (P.L.1206, No.331), known as "The
    22  First Class Township Code," reenacted and amended May 27, 1949
    23  (P.L.1955, No.569).
    24     (12)  Sections 205, 206, 207, 208, 209, 210, 211, 211.1, 212,
    25  213, 214 and 215, act of May 1, 1933 (P.L.103, No.69), known as
    26  "The Second Class Township Code," reenacted and amended July 10,
    27  1947 (P.L.1481, No.567).
    28     (13)  Clause (c) of section 2 and all of section 3, act of
    29  May 29, 1935 (P.L.244, No.102), entitled "An act creating a
    30  Local Government Commission to study and report on functions of
    19750H2045B2622                 - 43 -

     1  local government; their allocation and elimination; the cost of
     2  local government and means of reducing it; and the consolidation
     3  of local government; and making an appropriation."
     4     (14)  The act of May 13, 1937 (P.L.620, No.161), entitled "An
     5  act requiring the consent of the electors of a township of the
     6  first class when such township, or any part thereof, is to be
     7  annexed to a contiguous borough or city."
     8     (15)  The act of July 2, 1937 (P.L.2803, No.588), entitled
     9  "An act providing a method of annexation of townships of the
    10  first class, and parts thereof, to cities and boroughs, and
    11  regulating the proceedings pertaining thereto," sections 1
    12  through 9 reenacted and amended May 9, 1951 (P.L.225, No.34).
    13     (16)  The act of June 15, 1939 (P.L.372, No.217), entitled
    14  "An act affecting cities of the second class A, authorizing the
    15  annexation of boroughs and townships thereto under certain
    16  conditions, and, in connection therewith, placing duties upon or
    17  affecting courts of quarter sessions, county boards of
    18  elections, and officers of boroughs, townships and cities of the
    19  second class A, and providing for the payment of the
    20  indebtedness of the various territorial units involved."
    21     (17)  The act of July 20, 1953 (P.L.550, No.145), entitled
    22  "An act providing for and regulating the annexation of parts of
    23  a second class township to boroughs, cities and townships."
    24     (18)  Articles II and IV, act of February 1, 1966 (1965
    25  P.L.1656, No.581), known as "The Borough Code,"
    26     (b)  All other acts and parts of acts are repealed in so far
    27  as they are inconsistent herewith.
    28     Section 602.  Application to Procedures Previously
    29  Initialed.--Where initiative and referendum proceedings under
    30  the second paragraph of section 8 of Article IX of the
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     1  Constitution were commenced in any municipality before the
     2  effective date of this act, those proceedings may continue just
     3  as if this act had not been passed. In so far as this act sets
     4  forth procedures, conditions and requirements applicable
     5  following a referendum on the question of consolidation, merger
     6  or boundary change, this act shall apply in any municipality
     7  where those referendum proceedings had been commenced or where
     8  the electors had voted in the affirmative or in the negative in
     9  any such referendum before the effective date of this act.
    10     Section 603.  Effective Date.--This act shall take effect
    11  immediately.













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