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                                                        PRINTER'S NO. 71

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 77 Session of 2003


        INTRODUCED BY HERMAN, BAKER, BELFANTI, CAPPELLI, COSTA,
           CREIGHTON, DeLUCA, GEIST, HARHAI, HARPER, HENNESSEY,
           LESCOVITZ, MACKERETH, MELIO, R. MILLER, NAILOR, NICKOL,
           RUBLEY, SANTONI, SAYLOR, SOLOBAY, STERN, T. STEVENSON, SURRA,
           TIGUE, WILT AND YOUNGBLOOD, JANUARY 29, 2003

        REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 29, 2003

                                     AN ACT

     1  Amending Title 53 (Municipalities Generally) of the Pennsylvania
     2     Consolidated Statutes, further providing for definitions
     3     relating to consolidation or merger, for initiative of
     4     electors seeking consolidation or merger without home rule;
     5     providing for initiative of electors seeking consolidation or
     6     merger with a new home rule charter; further providing for
     7     conduct of referenda and for consolidation or merger
     8     agreement; and making editorial changes.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  The definition of "initiative" in section 732 of
    12  Title 53 of the Pennsylvania Consolidated Statutes is amended
    13  and the section is amended by adding definitions to read:
    14  § 732.  Definitions.
    15     The following words and phrases when used in this subchapter
    16  shall have the meanings given to them in this section unless the
    17  context clearly indicates otherwise:
    18     "Commission."  A board of members elected under the
    19  provisions of section 735.1 (relating to initiative of electors


     1  seeking consolidation or merger with new home rule charter) to
     2  consider the advisability of the adoption of a new home rule
     3  charter for the proposed consolidated or merged municipality
     4  and, if advisable, to draft and recommend a new home rule
     5  charter to the electorate.
     6     * * *
     7     "Electors."  The registered voters of a municipality involved
     8  in proceedings relating to the adoption and repeal of optional
     9  forms of government.
    10     * * *
    11     "Initiative."  The filing with applicable election officials
    12  of a petition containing a proposal for a referendum to be
    13  placed on the ballot of the next election. The petition shall
    14  be:
    15         (1)  Filed not later than the 13th Tuesday prior to the
    16     next election in which it will appear on the ballot.
    17         (2)  Signed by voters comprising 5% [of the persons] of
    18     the number of electors voting for the office of Governor in
    19     the last gubernatorial general election in the municipality
    20     where the proposal will appear on the ballot.
    21         (3)  Placed on the ballot by election officials in a
    22     manner fairly representing the content of the petition for
    23     decision by referendum at the election.
    24         (4)  Submitted not more than once in five years.
    25     * * *
    26     "New home rule charter."  A written document that defines the
    27  powers, structure, privileges, rights and duties of the proposed
    28  consolidated or merged municipality, the limitations thereon and
    29  that provides for the composition and election of the governing
    30  body chosen by popular elections.
    20030H0077B0071                  - 2 -     

     1     * * *
     2     Section 2.  Sections 734(b)(4) and 735 of Title 53 are
     3  amended to read:
     4  § 734.  Joint agreement of governing bodies.
     5     * * *
     6     (b)  Elements.--The joint agreement shall include, but not be
     7  limited to:
     8         * * *
     9         (4)  Whether a consolidated or merged municipality shall
    10     be governed solely by the code and other general laws
    11     applicable to the kind and class of the consolidated or
    12     merged municipality; whether it shall be governed by a home
    13     rule charter or optional plan of government previously
    14     adopted pursuant to [the act of April 13, 1972 (P.L.184,
    15     No.62), known as the Home Rule Charter and Optional Plans
    16     Law,] Subpart E of Part III (relating to home rule and
    17     optional plan government), by one of the municipalities to be
    18     consolidated or merged; or whether it shall be governed by a
    19     home rule charter or optional plan of government that has not
    20     been previously adopted in accordance with [the Home Rule
    21     Charter and Optional Plans Law] Subpart E of Part III by any
    22     of the municipalities to be consolidated or merged, but
    23     which, in the case of an optional plan of government, has
    24     been selected and approved by the governing body of each of
    25     the municipalities to be consolidated or merged from among
    26     the options provided for in [the Home Rule Charter and
    27     Optional Plans Law] Subpart E of Part III or, in the case of
    28     a home rule charter, has been formulated and approved by the
    29     governing body of each of the municipalities to be
    30     consolidated or merged; provided, however, that nothing in
    20030H0077B0071                  - 3 -     

     1     this subchapter shall be construed as authorizing a
     2     municipality adopting a home rule charter or optional plan of
     3     government pursuant to this subchapter to exercise powers not
     4     granted to a municipality adopting a home rule charter or an
     5     optional plan of government pursuant to [the Home Rule
     6     Charter and Optional Plans Law] Subpart E of Part III.
     7         * * *
     8  § 735.  Initiative of electors seeking consolidation or merger
     9                 without new home rule charter.
    10     (a)  General rule.--In order for consolidation or merger
    11  proceedings to be initiated by petition of electors, petitions
    12  containing signatures of at least 5% of the number of electors
    13  voting for the office of Governor in the last gubernatorial
    14  general election in each municipality proposed to be
    15  consolidated or merged shall be filed with the county board of
    16  elections of the county in which the municipality, or the
    17  greater portion of its territory, is located.
    18     (b)  Notice to governing bodies affected.--When election
    19  officials find that a petition is in proper order, they shall
    20  send copies of the initiative petition without the signatures
    21  thereon to the governing bodies of each of the municipalities
    22  affected by the proposed consolidation or merger.
    23     (c)  Contents.--A petition shall set forth:
    24         (1)  The name of the municipality from which the signers
    25     of the petition were obtained.
    26         (2)  The names of the municipalities proposed to be
    27     consolidated or merged.
    28         (3)  The name of the consolidated or merged municipality.
    29         (4)  The type and class of the consolidated or merged
    30     municipality.
    20030H0077B0071                  - 4 -     

     1         (5)  Whether a consolidated or merged municipality shall
     2     be governed solely by the code and other general laws
     3     applicable to the kind and class of the consolidated or
     4     merged municipality; whether it shall be governed by a home
     5     rule charter or optional plan of government previously
     6     adopted pursuant to the [act of April 13, 1972 (P.L.184,
     7     No.62), known as the Home Rule Charter and Optional Plans
     8     Law,] Subpart E of Part III (relating to home rule and
     9     optional plan government), by one of the municipalities to be
    10     consolidated or merged; or whether it shall be governed by an
    11     optional plan of government that has not been previously
    12     adopted in accordance with [the Home Rule Charter and
    13     Optional Plans Law] Subpart E of Part III by any of the
    14     municipalities to be consolidated or merged, but which has
    15     been selected from among the options provided for in [the
    16     Home Rule Charter and Optional Plans Law] Subpart E of Part
    17     III and is identified in the petition; provided, however,
    18     that nothing in this subchapter shall be construed as
    19     authorizing a municipality adopting an optional plan of
    20     government pursuant to this subchapter to exercise powers not
    21     granted to a municipality adopting an optional plan of
    22     government pursuant to [the Home Rule Charter and Optional
    23     Plans Law] Subpart E of Part III.
    24         (6)  In the case of a merger, where the surviving
    25     municipality is a city which had previously adopted an
    26     optional charter pursuant to the act of July 15, 1957
    27     (P.L.901, No.399), known as the Optional Third Class City
    28     Charter Law, whether the resulting merged municipality will
    29     continue to operate under the optional charter.
    30         (7)  The number of districts or wards, if any, into which
    20030H0077B0071                  - 5 -     

     1     the consolidated or merged municipality will be divided for
     2     the purpose of electing all or some members of its governing
     3     body.
     4     (d)  Filing of petition.--The consolidation or merger
     5  petition shall be filed with the election officials not later
     6  than the 13th Tuesday prior to the next primary, municipal or
     7  general election. The petition and proceedings on the petition
     8  shall be conducted in the manner and subject to the provisions
     9  of the election laws which relate to the signing, filing and
    10  adjudication of nomination petitions insofar as the provisions
    11  are applicable, except that no referendum petition shall be
    12  signed or circulated prior to the 20th Tuesday before the
    13  election, nor later than the 13th Tuesday before the election.
    14     Section 3.  Title 53 is amended by adding a section to read:
    15  § 735.1.  Initiative of electors seeking consolidation or merger
    16             with new home rule charter.
    17     (a)  General rule.--In order for a commission and
    18  consolidation or merger proceedings to be initiated by petition
    19  of electors, petitions containing signatures of at least 5% of
    20  the number of electors voting for the office of Governor in the
    21  last gubernatorial general election in each municipality
    22  proposed to be consolidated or merged shall be filed with the
    23  county board of elections of the county in which the
    24  municipality, or the greater portion of its territory, is
    25  located.
    26     (b)  Notice to governing bodies affected.--When election
    27  officials find that a petition is in proper order, they shall
    28  send copies of the initiative petition without the signatures
    29  thereon to the governing bodies of each of the municipalities
    30  affected by the proposed consolidation or merger.
    20030H0077B0071                  - 6 -     

     1     (c)  Contents.--A petition shall set forth:
     2         (1)  The name of the municipality from which the signers
     3     of the petition were obtained.
     4         (2)  The names of the municipalities proposed to be
     5     consolidated or merged.
     6         (3)  The number of persons to compose the commission.
     7         (4)  The petition question which shall read as follows:
     8             Shall a Government Study Commission of (seven, nine
     9             or eleven) members be elected to study the issue of
    10             consolidation or merger of (municipalities to be
    11             consolidated or merged); to provide a recommendation
    12             on consolidation or merger; to consider the
    13             advisability of the adoption of a new home rule
    14             charter; and to draft a new home rule charter, if
    15             recommended in the report of the commission?
    16     (d)  Filing of petition and duty of election board.--
    17         (1)  A commission and consolidation or merger proceedings
    18     petition under this section shall be filed with the election
    19     officials not later than the 13th Tuesday prior to the next
    20     primary, municipal or general election.
    21         (2)  The petition and proceedings on the petition shall
    22     be conducted in the manner and subject to the provisions of
    23     the election laws which relate to the signing, filing and
    24     adjudication of nomination petitions insofar as the
    25     provisions are applicable, except that no referendum petition
    26     shall be signed or circulated prior to the 20th Tuesday
    27     before the election, nor later than the 13th Tuesday before
    28     the election.
    29         (3)  At the next general, municipal or primary election
    30     occurring not less than the 13th Tuesday after the filing of
    20030H0077B0071                  - 7 -     

     1     the petition with the county board of elections, it shall
     2     cause the appropriate question to be submitted to the
     3     electors of each of the municipalities proposed to be
     4     consolidated or merged in the same manner as other questions
     5     are submitted under the act of June 3, 1937 (P.L.1333,
     6     No.320), known as the Pennsylvania Election Code.
     7     (e)  Election of members of commission.--
     8         (1)  A commission of seven, nine or eleven members, as
     9     designated in the question, shall be elected by the qualified
    10     voters at the same election the question is submitted to the
    11     electors.
    12         (2)  Each candidate for the office of member of the
    13     commission shall be nominated and placed upon the ballot
    14     containing the question in the manner provided by and subject
    15     to the provisions of the Pennsylvania Election Code, which
    16     relate to the nomination of a candidate nominated by
    17     nomination papers filed for other offices elective by the
    18     voters. Each candidate shall be nominated and listed without
    19     any political designation or slogan and no nomination paper
    20     shall be signed or circulated prior to the 13th Tuesday
    21     before the election nor later than the tenth Tuesday before
    22     the election. No signature shall be counted unless it bears a
    23     date within this period.
    24         (3)  Each elector shall be instructed to vote on the
    25     question and, regardless of the manner of his vote on the
    26     question, to vote for the designated number of members of the
    27     commission who shall serve if the question is or has been
    28     determined in the affirmative.
    29         (4)  If an insufficient number of nominating papers is
    30     filed to fill all of the designated positions on the
    20030H0077B0071                  - 8 -     

     1     commission, the question of establishing the commission shall
     2     be placed on the ballot and, unless a sufficient number of
     3     commission members are elected by receiving at least as many
     4     votes as signatures are required to file a nominating
     5     petition, then the question of creating the commission shall
     6     be deemed to have been rejected.
     7     (f)  Nomination of candidates.--
     8         (1)  All candidates for a commission shall be electors.
     9     Each candidate shall be nominated from the area of the
    10     proposed consolidated or merged municipality by nomination
    11     papers signed by a number of electors equal at least to 2% of
    12     the number of electors voting for the office of Governor in
    13     the last gubernatorial general election in each municipality
    14     proposed to be consolidated or merged or 200 electors from
    15     each municipality, whichever is less, and filed with the
    16     county board of elections of the county in which the
    17     municipality, or the greater portion of its territory, is
    18     located not later than the tenth Tuesday prior to the date of
    19     the election.
    20         (2)  Each nomination paper shall set forth the name,
    21     place of residence and post office address of the candidate
    22     thereby nominated, that the nomination is for the office of
    23     commissioner and that the signers are legally qualified to
    24     vote for the candidate. An elector may not sign nomination
    25     papers for more candidates for the commission than he could
    26     vote for at the election. Every elector signing a nomination
    27     paper shall write his place of residence, post office address
    28     and street number, if any, on the petition.
    29         (3)  Each nomination paper shall, before it may be filed
    30     with the county board of elections, contain under oath of the
    20030H0077B0071                  - 9 -     

     1     candidate an acceptance of the nomination in writing, signed
     2     by the candidate therein nominated, upon or annexed to the
     3     paper, or, if the same person be named in more than one
     4     paper, upon or annexed to one of the papers. The acceptance
     5     shall certify that the candidate is an elector, that the
     6     nominee consents to run as a candidate at the election and
     7     that, if elected, the candidate agrees to take office and
     8     serve.
     9         (4)  Each nomination paper shall be verified by an oath
    10     of one or more of the signers, taken and subscribed before a
    11     person qualified under the laws of this Commonwealth to
    12     administer an oath, to the effect that the paper was signed
    13     by each of the signers in his proper handwriting, that the
    14     signers are, to the best knowledge and belief of the affiant,
    15     electors and that the nomination paper is prepared and filed
    16     in good faith for the sole purpose of endorsing the person
    17     named therein for election as stated in the paper.
    18     (g)  Results of election.--
    19         (1)  The result of the votes cast for and against the
    20     question as to the election of a commission and consolidation
    21     and merger proceedings shall be returned by the election
    22     officers, and a canvass of the election had, as is provided
    23     by law in the case of other public questions put to the
    24     electors. The votes cast for members of the commission shall
    25     be counted and the result returned by the county board of
    26     electors of the county in which the municipality, or the
    27     greater portion of its territory, is located, and a canvass
    28     of the election had, as is provided by law in the case of
    29     election of members of municipal councils or boards. The
    30     designated number of candidates receiving the greatest number
    20030H0077B0071                 - 10 -     

     1     of votes shall be elected and shall constitute the
     2     commission. If a majority of those voting on the question
     3     vote against the election of the commission, none of the
     4     candidates shall be elected. If two or more candidates for
     5     the last seat shall be equal in number of votes, they shall
     6     draw lots to determine which one shall be elected.
     7         (2)  If, in accordance with subsection (e)(4), there has
     8     been an insufficient number of nominating papers filed to
     9     fill all of the designated positions on the commission and a
    10     sufficient number of commission members are not elected by
    11     receiving at least as many votes as signatures are required
    12     to file a nominating petition, the question as to the
    13     election of a commission and consolidation and merger
    14     proceedings shall be deemed to have been rejected and shall
    15     fail and none of the candidates shall be elected.
    16     (h)  Oath of office of members of commission.--
    17         (1)  As soon as possible and in any event no later than
    18     ten days after its certification of election, the members of
    19     a commission elected on a countywide basis shall, before a
    20     judge of a court of common pleas, make oath to support the
    21     Constitution of the United States and the Constitution of
    22     Pennsylvania and to perform the duties of the office with
    23     fidelity.
    24         (2)  As soon as possible and in any event no later than
    25     ten days after its certification of election, the members of
    26     a commission elected on other than a countywide basis shall,
    27     before a district justice, make oath to support the
    28     Constitution of the United States and the Constitution of
    29     Pennsylvania and to perform the duties of the office with
    30     fidelity.
    20030H0077B0071                 - 11 -     

     1     (i)  First meeting of commission.--
     2         (1)  As soon as possible and in any event no later than
     3     15 days after its certification of election, a commission
     4     shall organize and hold its first meeting and elect one of
     5     its members chairman and another member vice chairman, fix
     6     its hours and place of meeting and adopt rules for the
     7     conduct of business it deems necessary and advisable.
     8         (2)  A majority of the members of the commission shall
     9     constitute a quorum for the transaction of business, but no
    10     recommendation of the commission shall have any legal effect
    11     unless adopted by a majority of the whole number of the
    12     members of the commission.
    13     (j)  Vacancies.--In case of a vacancy in a commission, the
    14  remaining members of the commission shall fill it by appointing
    15  thereto some other properly qualified elector.
    16     (k)  Function and duty of commission.--
    17         (1)  A commission shall study the issue of consolidation
    18     or merger of the municipalities.
    19         (2)  The commission shall study the advisability of a new
    20     home rule charter form of government for the proposed
    21     consolidated or merged municipality and compare it with other
    22     available forms under the laws of this Commonwealth and
    23     determine in its judgment which form of government is more
    24     clearly responsible or accountable to the people and its
    25     operation more economical and efficient.
    26         (3)  If a new home rule charter is found to be the most
    27     advisable form of government for the proposed consolidated or
    28     merged municipality, the commission shall:
    29             (i)  Draft and recommend to the electorate a new home
    30         rule charter for the proposed consolidated or merged
    20030H0077B0071                 - 12 -     

     1         municipality containing a transitional plan and schedule
     2         applicable to elected officers; Provided, However, That
     3         nothing in this section shall be construed as authorizing
     4         a consolidated or merged municipality adopting a new home
     5         rule charter pursuant to this section to exercise powers
     6         not granted to a municipality adopting a home rule
     7         charter pursuant to Part III, Subpt. E (relating to home
     8         rule and optional plan government).
     9             (ii)  If the new home rule charter calls for all or
    10         any part of the governing body of the consolidated or
    11         merged municipality to be elected on a district or ward
    12         basis, prepare and set forth, as an appendix to the new
    13         home rule charter:
    14                 (A)  The district or ward boundaries established
    15             to achieve substantially equal representation.
    16                 (B)  The district or ward designation by number.
    17                 (C)  The number of members of the municipal
    18             governing body to be elected from each district or
    19             ward.
    20             (iii)   Prepare and suggest for adoption by the
    21         governing body of the newly consolidated or merged
    22         municipality recommendations concerning:
    23                 (A)  The disposition of assets that may be
    24             surplus or unneeded as a result of the consolidation
    25             or merger.
    26                 (B)  The liquidation, assumption or other
    27             disposition of existing indebtedness of the
    28             consolidated or merged municipalities.
    29                 (C)  A legally consistent uniform tax system to
    30             be implemented throughout the consolidated or merged
    20030H0077B0071                 - 13 -     

     1             municipality which provides the revenue necessary to
     2             fund required municipal services.
     3                 (D)  Ordinances to be uniformly enforced
     4             throughout the consolidated or merged municipality,
     5             which may be adopted by the new governing body of the
     6             consolidated or merged municipality at its
     7             organizational meeting; Provided, That codification
     8             of all ordinances shall be completed as specified in
     9             section 740 (relating to procedures).
    10     (l)  Compensation, personnel and commission budget.--
    11         (1)  Members of the commission shall serve without
    12     compensation, but shall be reimbursed by the municipalities
    13     proposed to be consolidated or merged for their necessary
    14     expenses incurred in the performance of their duties.
    15         (2)  The commission may appoint one or more consultants
    16     and clerical and other assistants to serve at the pleasure of
    17     the commission and may fix reasonable compensation therefor
    18     to be paid the consultants and clerical and other assistants.
    19         (3)  In accordance with this subsection, the commission
    20     shall prepare and submit to the governing body of each of the
    21     municipalities being considered for consolidation or merger,
    22     budget estimates of the amount of money necessary to meet the
    23     expenditures to be incurred by the commission in the carrying
    24     out of its functions in accordance with this section,
    25     including, but not limited to, reasonable estimations of the
    26     necessary expenses of commission members, compensation of
    27     consultants, clerical personnel and other assistants and
    28     other expenditures incident to work of the commission.
    29         (4)  The commission shall prepare and submit an initial
    30     budget submission that estimates expenses for the first nine-
    20030H0077B0071                 - 14 -     

     1     month phase of the commission's work. The initial budget
     2     estimate shall be submitted as soon as possible and in any
     3     event no later than 45 days after the commission's
     4     certification of election.
     5         (5)  If, during the first nine-month phase of its work,
     6     the commission elects to prepare and submit a new home rule
     7     charter for the proposed consolidated or merged municipality,
     8     a final budget shall be submitted to the governing body of
     9     each of the municipalities being considered for consolidation
    10     or merger that estimates expenses to be incurred in the
    11     completion of the commission's work.
    12         (6)  No later than 15 days after the submission of a
    13     budget in accordance with paragraphs (4) or (5), a joint
    14     public hearing of the commission and the governing bodies of
    15     the municipalities shall be held. The governing bodies of the
    16     municipalities to be consolidated or merged may, by
    17     agreement, modify any budget submitted by the commission. A
    18     governing body of a municipality to be consolidated or merged
    19     may approve appropriations to the commission in conformity
    20     with its share of the modified budget, as determined in
    21     accordance with paragraph (7). Any unreasonable modification
    22     of the budget may be subject to an action as provided in
    23     paragraph (8) in the court of common pleas of any county
    24     wherein a municipality to be consolidated or merged lies.
    25         (7)  The municipalities to be consolidated or merged may,
    26     by agreement, determine the share that each municipality
    27     shall appropriate to fund the estimated budget of the
    28     commission. If no agreement as to the respective amount that
    29     each municipality shall appropriate is reached, each
    30     municipality shall appropriate funds equal to its pro rata
    20030H0077B0071                 - 15 -     

     1     share of the total estimated budget of the commission based
     2     upon its share of population to the total population of the
     3     municipalities to be consolidated or merged.
     4         (8)  The commission may bring an action in the court of
     5     common pleas of the county where a municipality is located
     6     requesting that the court determine whether the municipality
     7     has failed to reasonably modify an estimated budget or to
     8     appropriate moneys in accordance with this subsection. The
     9     court may provide appropriate relief, including, but not
    10     limited to, ordering appropriation of funds in accordance
    11     with the budget:
    12             (i)  as submitted by the commission or as modified by
    13         the municipalities; or
    14             (ii)  as modified by the court.
    15         (9)  In all cases, the costs and fees of any action
    16     brought by the commission under this subsection shall be paid
    17     by the municipality or municipalities named as defendants.
    18         (10)  A municipality shall be entitled to a proportionate
    19     reimbursement or offset of its share of the budget by any
    20     publicly or privately contributed funds or services made
    21     available to the commission.
    22     (m)  Hearings and public forums.--A commission shall hold one
    23  or more public hearings and sponsor public forums and generally
    24  shall provide for the widest possible public information and
    25  discussion respecting the purposes and progress of its work.
    26     (n)  Report of findings and recommendations.--
    27         (1)  A commission shall report its findings and
    28     recommendations to the citizens of the proposed consolidated
    29     or merged municipalities within nine months from the date of
    30     its election except that it shall be permitted an additional
    20030H0077B0071                 - 16 -     

     1     nine months if it elects to prepare and submit a proposed new
     2     home rule charter and an additional two months if it chooses
     3     to provide for the election of its governing body by
     4     districts. It shall publish or cause to be published
     5     sufficient copies of its final report for public study and
     6     information and shall deliver to the municipal clerk or
     7     secretary of each municipality proposed to be consolidated or
     8     merged sufficient copies of the report to supply it to any
     9     interested citizen upon request. If the commission recommends
    10     the adoption of a new home rule charter, the report shall
    11     contain the complete plan as recommended.
    12         (2)  There shall be attached to each copy of the report
    13     of the commission, as a part thereof, a statement sworn to by
    14     the members of the commission listing in detail the funds,
    15     goods, materials and services, both public and private, used
    16     by the commission in the performance of its work and the
    17     preparation and filing of the report and identifying
    18     specifically the supplier of each item thereon.
    19         (3)  A copy of the final report of the commission with
    20     its findings and recommendations shall be filed with the
    21     Department of Community and Economic Development.
    22         (4)  All the records, reports, tapes, minutes of meetings
    23     and written discussions of the commission shall, upon its
    24     discharge, be turned over to the municipal clerk or secretary
    25     of each municipality proposed to be consolidated or merged
    26     for permanent safekeeping and made available for public
    27     inspection at any time during regular business hours.
    28     (o)  Discharge of petition and amended reports.--
    29         (1)  A commission shall be discharged upon the filing of
    30     its report, but, if the commission's recommendations require
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     1     further procedure in the form of a referendum on the part of
     2     the electors, the commission shall not be discharged until
     3     the procedure has been concluded. At any time prior to 60
     4     days before the date of the referendum, the commission may
     5     modify or change any recommendation set forth in the final
     6     report by publishing an amended report.
     7         (2)  Whenever the commission issues an amended report
     8     pursuant to paragraph (1), the amended report shall supersede
     9     the final report and the final report shall cease to have any
    10     legal effect.
    11         (3)  The procedure to be taken under the amended report
    12     shall be governed by the provisions of this subpart
    13     applicable to the final report of the commission submitted
    14     pursuant to subsection (n).
    15     (p)  Types of action recommended.--A commission shall report
    16  and recommend in accordance with this section:
    17         (1)  That a referendum shall be held that submits to the
    18     electors the question of consolidating or merging the named
    19     municipalities under a new home rule charter as prepared by
    20     the commission.
    21         (2)  That no referendum shall be held because
    22     consolidation or merger of the named municipalities under a
    23     new home rule charter is not recommended by the commission.
    24         (3)  That the named municipalities consider such other
    25     action as the commission recommends and deems advisable
    26     consistent with its functions as set forth in this section.
    27     (q)  Specificity of recommendations.--
    28         (1)  If a commission recommends the adoption of a new
    29     home rule charter, it shall specify the number to be on the
    30     governing body, all offices to be filled by election and
    20030H0077B0071                 - 18 -     

     1     whether elections shall be on an at-large, district or
     2     combination district and at-large basis.
     3         (2)  Notwithstanding any other provisions of this
     4     subpart, if an approved new home rule charter adopted
     5     pursuant to the provisions of this subpart specifies that the
     6     election of the governing body should be on an at-large,
     7     district or combination district and at-large basis and the
     8     basis recommended differs from the existing basis and
     9     therefore requires the elimination of districts or the
    10     establishment of revised or new districts, then election of
    11     municipal officials shall not take place on the new basis
    12     until the municipal election following the next primary
    13     election taking place more than 180 days after the election
    14     at which the referendum on the question of a consolidation or
    15     merger and new home rule charter has been approved by the
    16     electorate. The consolidation or merger and new home rule
    17     charter shall not go into effect until the first Monday in
    18     January following the election of municipal officials on the
    19     new basis as provided in section 738 (relating to
    20     effectuation of consolidation or merger). New or revised
    21     districts shall be established by the commission and included
    22     in the proposed charter.
    23     (r)  Form of question on consolidation or merger and new home
    24  rule charter.--If a commission recommends consolidation or
    25  merger and the adoption of a new home rule charter for the
    26  municipalities to be consolidated or merged, the question to be
    27  submitted to the voters for the adoption of consolidation or
    28  merger and a new home rule charter shall be submitted in the
    29  following form or such part as shall be applicable.
    30         Shall the municipalities of (insert names of
    20030H0077B0071                 - 19 -     

     1         municipalities consolidating or merging) be (insert
     2         consolidated or merged) to become (insert name of new
     3         municipality, type and class of municipality) under a new
     4         home rule charter contained in the report, dated (insert
     5         date), of the commission?
     6     (s)  Submission of question on consolidation or merger and
     7  new home rule charter.--If a commission recommends that the
     8  question of adopting consolidation or merger and a new home rule
     9  charter authorized by this subpart should be submitted to the
    10  electors, the municipal clerk or secretary of each municipality
    11  proposed to be consolidated or merged shall, within five days
    12  thereafter, certify a copy of the commission's report to the
    13  county board of elections of the county in which the
    14  municipality, or the greater portion of its territory, is
    15  located, which shall cause the question of adoption or rejection
    16  to be placed upon the ballot or voting machines at the time as
    17  the commission specifies in its report. The commission may cause
    18  the question to be submitted to the electors at the next
    19  primary, municipal or general election occurring not less than
    20  60 days following the filing of a copy of the commission's
    21  report with the county board of elections, at the time the
    22  commission's report directs. At the election, the question of
    23  adopting consolidation or merger and a new home rule charter
    24  recommended by the commission shall be submitted to the electors
    25  by the county board of elections in the same manner as other
    26  questions are submitted to the electors under the Pennsylvania
    27  Election Code. The commission shall frame the question to be
    28  placed upon the ballot as provided for in subsection (r) and, if
    29  it deems appropriate, an interpretative statement to accompany
    30  the question.
    20030H0077B0071                 - 20 -     

     1     (t)  Amendment of new home rule charter.--The procedure for
     2  amending the new home rule charter of the consolidated or merged
     3  municipality created under this subpart shall be through the
     4  initiative procedure and referendum or ordinance of the
     5  governing body as provided for in Subchapter C of Chapter 29
     6  (relating to amendment of existing charter or optional plan).
     7     (u)  General powers and limitation of consolidated or merged
     8  municipality under new home rule charter.--Nothing in this
     9  section shall be construed as authorizing a consolidated or
    10  merged municipality adopting a new home rule charter to exercise
    11  powers not granted to a municipality adopting a home rule
    12  charter pursuant to Subpart E of Part III.
    13     Section 4.  Sections 736, 737, 738, 739(a), 740(a) and 741 of
    14  Title 53 are amended to read:
    15  § 736.  Conduct of referenda.
    16     (a)  Duty to place on ballot.--Following initiation of
    17  proceedings for consolidation or merger by the procedures set
    18  forth either in section 734 (relating to joint agreement of
    19  governing bodies) or 735 (relating to initiative of electors
    20  seeking consolidation or merger without new home rule charter),
    21  the question of consolidation or merger as set forth in the
    22  joint agreement or initiative petition shall be placed before
    23  the electors of each of the municipalities proposed to be
    24  consolidated or merged. A referendum shall be held at the first
    25  primary, municipal or general election occurring at least 13
    26  weeks after either:
    27         (1)  the date of the general agreement entered into under
    28     the provisions of section 734; or
    29         (2)  the date of filing of the petition filed under the
    30     provisions of section 735.
    20030H0077B0071                 - 21 -     

     1     (a.1)  Referenda under section 735.1.--Referenda authorized
     2  under section 735.1 (relating to initiative of electors seeking
     3  consolidation or merger with new home rule charter) shall be
     4  placed on the ballot in accordance with section 735.1(d)(3) and
     5  (s).
     6     (b)  Approval.--[Consolidation] Pursuant to sections 734, 735
     7  and 735.1 consolidation or merger shall not be effective unless
     8  the referendum question is approved by a majority of the
     9  electors voting in each of the municipalities in which the
    10  referendum is held. If in any one of the municipalities in which
    11  the referendum is held a majority vote in favor of consolidation
    12  or merger does not result, the referendum shall fail and
    13  consolidation or merger shall not take place. The same question
    14  in accordance with sections 734 or 735, or the same question
    15  described in the proposal for consolidation or merger with a new
    16  home rule charter in accordance with section 735.1 described in
    17  the consolidation or merger proposal shall not be voted on again
    18  for a period of five years.
    19     (c)  Subsequent referenda.--The five-year moratorium on
    20  voting the same consolidation or merger question as provided in
    21  subsection (b) shall be deemed not to apply to any subsequent
    22  referendum question involving a consolidation or merger of any
    23  combination of two or more contiguous municipalities if the
    24  referendum question differs or is dissimilar in any way from a
    25  previous referendum question which was not approved as provided
    26  for in subsection (b).
    27  § 737.  Consolidation or merger agreement.
    28     (a)  Form.--Upon favorable action by the electorate on
    29  consolidation or merger, in cases where consolidation or merger
    30  was initiated by petition of electors under section 735
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     1  (relating to initiative of electors seeking consolidation or
     2  merger without new home rule charter), the governing bodies of
     3  the municipalities to be consolidated or merged shall meet
     4  within 60 days after the certification of the favorable vote and
     5  shall within a reasonable time after certification make a
     6  consolidation or merger agreement as follows:
     7         (1)  If the governing body, or part of the governing
     8     body, of the consolidated or merged municipality is to be
     9     elected on a district or ward basis, the agreement shall set
    10     forth the district or ward boundaries and the district or
    11     ward designation, by number, and the number of members of the
    12     municipal governing body to be elected from each district or
    13     ward. The boundaries of the districts or wards shall be
    14     established to achieve substantially equal representation.
    15         (2)  The agreement shall set forth terms for:
    16             (i)  The disposition of the existing assets of each
    17         municipality.
    18             (ii)  The liquidation of the existing indebtedness of
    19         each municipality.
    20             (iii)  The assumption, assignment and disposition of
    21         the existing liabilities of each municipality, either
    22         jointly, separately or in certain defined proportions, by
    23         separate rates of taxation within each of the constituent
    24         municipalities until consolidation or merger becomes
    25         effective pursuant to section 738 (relating to
    26         effectuation of consolidation or merger).
    27         (3)  The agreement shall set forth the governmental
    28     organization of the consolidated or merged municipality
    29     insofar as it concerns elected officers and shall contain a
    30     transitional plan and schedule applicable to elected
    20030H0077B0071                 - 23 -     

     1     officers.
     2         (4)  The agreement shall provide for common
     3     administration and uniform enforcement of ordinances within
     4     the consolidated or merged municipality.
     5         (5)  The agreement shall also provide, consistent with
     6     existing law, for the implementation of a uniform tax system
     7     throughout the consolidated or merged municipality which
     8     shall provide the revenue necessary to fund required
     9     municipal services.
    10     (b)  Filing.--A copy of the consolidation or merger agreement
    11  under this section or the joint agreement under section 734
    12  (relating to joint agreement of governing bodies) after approval
    13  by the electorate shall be filed with the Department of
    14  Community [Affairs] and Economic Development, the Department of
    15  Transportation, the Governor's Office of Policy Development or
    16  its successor, the Department of Education, the State Tax
    17  Equalization Board and the Legislative Data Processing
    18  Committee. A copy shall also be filed with the court of common
    19  pleas and the board of county commissioners of the county or
    20  counties in which municipalities affected are located.
    21  § 738.  Effectuation of consolidation or merger.
    22     Municipalities consolidated or merged shall continue to be
    23  governed as before consolidation or merger until the date
    24  stipulated in the transitional plan and schedule provided for in
    25  sections 734 (relating to joint agreement of governing bodies)
    26  and 737 (relating to consolidation or merger agreement)[. New],
    27  or the transitional plan provided for by a study commission
    28  pursuant to section 735.1 (relating to initiative of electors
    29  seeking consolidation or merger with new home rule charter).
    30  Subject to the provisions of section 735.1(q), new officials
    20030H0077B0071                 - 24 -     

     1  required to be elected shall take office on the first Monday of
     2  January following the municipal election designated in the
     3  transitional plan and schedule. At that municipal election, the
     4  necessary officers of the consolidated or merged municipality
     5  shall be elected in accordance with the terms of the general law
     6  affecting municipalities of the kind or class of the
     7  consolidated or merged municipality or, in case of a
     8  consolidated or merged municipality operating under a home rule
     9  charter or optional plan of government, in accordance with the
    10  charter or optional plan or with general law affecting home rule
    11  or optional plan municipalities, as applicable. The officers
    12  elected at that municipal election shall be elected for terms of
    13  office under the plan and schedule set forth in the
    14  consolidation or merger agreement authorized by section 734 or
    15  737, or the transitional plan provided for by a commission
    16  pursuant to section 735.1, as the case may be. They shall take
    17  office as officers of the consolidated or merged municipality on
    18  the first Monday of January following the municipal election at
    19  which they were elected, and upon assumption of office, the
    20  consolidated or merged municipality shall begin to function and
    21  the former municipalities consolidated or merged into it shall
    22  be abolished.
    23  § 739.  Effect of transition on employees of consolidated or
    24             merged municipality.
    25     (a)  Transition.--As of the date when a consolidated or
    26  merged municipality shall begin to function, except for those
    27  officers and employees which are protected by any tenure of
    28  office, civil service provisions or collective bargaining
    29  agreement, all appointive offices and positions then existing in
    30  all former municipalities involved in the consolidation or
    20030H0077B0071                 - 25 -     

     1  merger shall be subject to the terms of the consolidation or
     2  merger agreement or transitional plan as provided for in section
     3  735.1 (relating to initiative of electors seeking consolidation
     4  or merger with new home rule charter). Provisions shall be made
     5  for instances in which there is duplication of positions,
     6  including, but not limited to, chief of police or manager, and
     7  for other matters such as varying length of employee contracts,
     8  different civil service regulations in the constituent
     9  municipalities and differing ranks and position classifications
    10  for similar positions.
    11     * * *
    12  § 740.  Procedures.
    13     (a)  Ordinance book.--After consolidation becomes effective,
    14  a new ordinance book shall be used by the municipality, and,
    15  except for a municipality consolidated or merged under section
    16  735.1 (relating to initiative of electors seeking consolidation
    17  or merger with new home rule charter), the first document to be
    18  recorded in it shall be the consolidation agreement.
    19     * * *
    20  § 741.  Court review of transitional plan.
    21     [After] (a)  General rule.--Except as provided in subsection
    22  (b), after the approval of a referendum pursuant to section 736
    23  (relating to conduct of referenda), any person who is a resident
    24  of a municipality to be consolidated or merged may petition the
    25  court of common pleas to order the appropriate municipal
    26  governing bodies to:
    27         (1)  implement the terms of a transitional plan and
    28     schedule adopted pursuant to section 734 (relating to joint
    29     agreement of governing bodies) or 737 (relating to
    30     consolidation or merger agreement); or
    20030H0077B0071                 - 26 -     

     1         (2)  adopt or amend a transitional plan or schedule if
     2     the court finds that the failure to do so will result in the
     3     unreasonable perpetuation of the separate forms and
     4     classifications of government existing in the affected
     5     municipalities prior to the approval of the referendum.
     6     (b)  Exception.--After consolidation or merger pursuant to
     7  section 735.1 (relating to initiative of electors seeking
     8  consolidation or merger with new home rule charter), any person
     9  who is a resident of the newly consolidated or merged
    10  municipality may petition the court of common pleas to order the
    11  governing body of that municipality to act to accept or provide
    12  alternatives to the recommendations of the commission in
    13  accordance with section 735.1(k)(3)(iii).
    14     Section 5.  This act shall take effect in 60 days.











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