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                                 SENATE AMENDED
        PRIOR PRINTER'S NO. 71                        PRINTER'S NO. 2634

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, YOUNGBLOOD, YUDICHAK, THOMAS, SATHER, FREEMAN,
           FRANKEL, HORSEY, LEWIS AND CURRY, JANUARY 29, 2003

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, SEPTEMBER 24, 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

     1  provisions of section 735.1 (relating to initiative of electors
     2  seeking consolidation or merger with new home rule charter) to
     3  consider the advisability of the adoption of a new home rule
     4  charter for the proposed consolidated or merged municipality
     5  and, if advisable, to draft and recommend a new home rule
     6  charter to the electorate.
     7     * * *
     8     "Electors."  The registered voters of a municipality involved
     9  in proceedings relating to the adoption and repeal of optional
    10  forms of government.
    11     * * *
    12     "Initiative."  The filing with applicable election officials
    13  of a petition containing a proposal for a referendum to be
    14  placed on the ballot of the next election. The petition shall
    15  be:
    16         (1)  Filed not later than the 13th Tuesday prior to the
    17     next election in which it will appear on the ballot.
    18         (2)  Signed by voters comprising 5% [of the persons] of
    19     the number of electors voting for the office of Governor in
    20     the last gubernatorial general election in the municipality
    21     where the proposal will appear on the ballot.
    22         (3)  Placed on the ballot by election officials in a
    23     manner fairly representing the content of the petition for
    24     decision by referendum at the election.
    25         (4)  Submitted not more than once in five years.
    26     * * *
    27     "New home rule charter."  A written document that defines the
    28  powers, structure, privileges, rights and duties of the proposed
    29  consolidated or merged municipality, the limitations thereon and
    30  that provides for the composition and election of the governing
    20030H0077B2634                  - 2 -     

     1  body chosen by popular elections.
     2     * * *
     3     Section 2.  Sections 734(b)(4) and 735 of Title 53 are
     4  amended to read:
     5  § 734.  Joint agreement of governing bodies.
     6     * * *
     7     (b)  Elements.--The joint agreement shall include, but not be
     8  limited to:
     9         * * *
    10         (4)  Whether a consolidated or merged municipality shall
    11     be governed solely by the code and other general laws
    12     applicable to the kind and class of the consolidated or
    13     merged municipality; whether it shall be governed by a home
    14     rule charter or optional plan of government previously
    15     adopted pursuant to [the act of April 13, 1972 (P.L.184,       <--
    16     No.62), known as the Home Rule Charter and Optional Plans
    17     Law,]  OR Subpart E of Part III (relating to home rule and     <--
    18     optional plan government), by one of the municipalities to be
    19     consolidated or merged; or whether it shall be governed by a
    20     home rule charter or optional plan of government that has not
    21     been previously adopted in accordance with [the Home Rule      <--
    22     Charter and Optional Plans Law] OR Subpart E of Part III by    <--
    23     any of the municipalities to be consolidated or merged, but
    24     which, in the case of an optional plan of government, has
    25     been selected and approved by the governing body of each of
    26     the municipalities to be consolidated or merged from among
    27     the options provided for in [the Home Rule Charter and
    28     Optional Plans Law] Subpart E of Part III or, in the case of
    29     a home rule charter, has been formulated and approved by the
    30     governing body of each of the municipalities to be
    20030H0077B2634                  - 3 -     

     1     consolidated or merged; provided, however, that nothing in
     2     this subchapter shall be construed as authorizing a
     3     municipality adopting a home rule charter or optional plan of
     4     government pursuant to this subchapter to exercise powers not
     5     granted to a municipality adopting a home rule charter or an
     6     optional plan of government pursuant to [the Home Rule
     7     Charter and Optional Plans Law] Subpart E of Part III.
     8         * * *
     9  § 735.  Initiative of electors seeking consolidation or merger
    10                 without new home rule charter.
    11     (a)  General rule.--In order for consolidation or merger
    12  proceedings to be initiated by petition of electors, petitions
    13  containing signatures of at least 5% of the number of electors
    14  voting for the office of Governor in the last gubernatorial
    15  general election in each municipality proposed to be
    16  consolidated or merged shall be filed with the county board of
    17  elections of the county in which the municipality, or the
    18  greater portion of its territory, is located.
    19     (b)  Notice to governing bodies affected.--When election
    20  officials find that a petition is in proper order, they shall
    21  send copies of the initiative petition without the signatures
    22  thereon to the governing bodies of each of the municipalities
    23  affected by the proposed consolidation or merger.
    24     (c)  Contents.--A petition shall set forth:
    25         (1)  The name of the municipality from which the signers
    26     of the petition were obtained.
    27         (2)  The names of the municipalities proposed to be
    28     consolidated or merged.
    29         (3)  The name of the consolidated or merged municipality.
    30         (4)  The type and class of the consolidated or merged
    20030H0077B2634                  - 4 -     

     1     municipality.
     2         (5)  Whether a consolidated or merged municipality shall
     3     be governed solely by the code and other general laws
     4     applicable to the kind and class of the consolidated or
     5     merged municipality; whether it shall be governed by a home
     6     rule charter or optional plan of government previously
     7     adopted pursuant to the [ act of April 13, 1972 (P.L.184,      <--
     8     No.62), known as the Home Rule Charter and Optional Plans
     9     Law,] OR Subpart E of Part III (relating to home rule and      <--
    10     optional plan government), by one of the municipalities to be
    11     consolidated or merged; or whether it shall be governed by an
    12     optional plan of government that has not been previously
    13     adopted in accordance with [the Home Rule Charter and          <--
    14     Optional Plans Law] OR Subpart E of Part III by any of the     <--
    15     municipalities to be consolidated or merged, but which has
    16     been selected from among the options provided for in [the
    17     Home Rule Charter and Optional Plans Law] Subpart E of Part
    18     III and is identified in the petition; provided, however,
    19     that nothing in this subchapter shall be construed as
    20     authorizing a municipality adopting an optional plan of
    21     government pursuant to this subchapter to exercise powers not
    22     granted to a municipality adopting an optional plan of
    23     government pursuant to [the Home Rule Charter and Optional
    24     Plans Law] Subpart E of Part III.
    25         (6)  In the case of a merger, where the surviving
    26     municipality is a city which had previously adopted an
    27     optional charter pursuant to the act of July 15, 1957
    28     (P.L.901, No.399), known as the Optional Third Class City
    29     Charter Law, whether the resulting merged municipality will
    30     continue to operate under the optional charter.
    20030H0077B2634                  - 5 -     

     1         (7)  The number of districts or wards, if any, into which
     2     the consolidated or merged municipality will be divided for
     3     the purpose of electing all or some members of its governing
     4     body.
     5     (d)  Filing of petition.--The consolidation or merger
     6  petition shall be filed with the election officials not later
     7  than the 13th Tuesday prior to the next primary, municipal or
     8  general election. The petition and proceedings on the petition
     9  shall be conducted in the manner and subject to the provisions
    10  of the election laws which relate to the signing, filing and
    11  adjudication of nomination petitions insofar as the provisions
    12  are applicable, except that no referendum petition shall be
    13  signed or circulated prior to the 20th Tuesday before the
    14  election, nor later than the 13th Tuesday before the election.
    15     Section 3.  Title 53 is amended by adding a section to read:
    16  § 735.1.  Initiative of electors seeking consolidation or merger
    17             with new home rule charter.
    18     (a)  General rule.--In order for a commission and
    19  consolidation or merger proceedings to be initiated by petition
    20  of electors, petitions containing signatures of at least 5% of
    21  the number of electors voting for the office of Governor in the
    22  last gubernatorial general election in each municipality
    23  proposed to be consolidated or merged shall be filed with the
    24  county board of elections of the county in which the
    25  municipality, or the greater portion of its territory, is
    26  located.
    27     (b)  Notice to governing bodies affected.--When election
    28  officials find that a petition is in proper order, they shall
    29  send copies of the initiative petition without the signatures
    30  thereon to the governing bodies of each of the municipalities
    20030H0077B2634                  - 6 -     

     1  affected by the proposed consolidation or merger.
     2     (c)  Contents.--A petition shall set forth:
     3         (1)  The name of the municipality from which the signers
     4     of the petition were obtained.
     5         (2)  The names of the municipalities proposed to be
     6     consolidated or merged.
     7         (3)  The number of persons to compose the commission.
     8         (4)  The petition question which shall read as follows:
     9             Shall a Government Study Commission of (seven, nine
    10             or eleven) members be elected to study the issue of
    11             consolidation or merger of (municipalities to be
    12             consolidated or merged); to provide a recommendation
    13             on consolidation or merger; to consider the
    14             advisability of the adoption of a new home rule
    15             charter; and to draft a new home rule charter, if
    16             recommended in the report of the commission?
    17     (d)  Filing of petition and duty of election board.--
    18         (1)  A commission and consolidation or merger proceedings
    19     petition under this section shall be filed with the election
    20     officials not later than the 13th Tuesday prior to the next
    21     primary, municipal or general election.
    22         (2)  The petition and proceedings on the petition shall
    23     be conducted in the manner and subject to the provisions of
    24     the election laws which relate to the signing, filing and
    25     adjudication of nomination petitions insofar as the
    26     provisions are applicable, except that no referendum petition
    27     shall be signed or circulated prior to the 20th Tuesday
    28     before the election, nor later than the 13th Tuesday before
    29     the election.
    30         (3)  At the next general, municipal or primary election
    20030H0077B2634                  - 7 -     

     1     occurring not less than the 13th Tuesday after the filing of
     2     the petition with the county board of elections, it shall
     3     cause the appropriate question to be submitted to the
     4     electors of each of the municipalities proposed to be
     5     consolidated or merged in the same manner as other questions
     6     are submitted under the act of June 3, 1937 (P.L.1333,
     7     No.320), known as the Pennsylvania Election Code.
     8     (e)  Election of members of commission.--
     9         (1)  A commission of seven, nine or eleven members, as
    10     designated in the question, shall be elected by the qualified
    11     voters at the same election the question is submitted to the
    12     electors.
    13         (2)  Each candidate for the office of member of the
    14     commission shall be nominated and placed upon the ballot
    15     containing the question in the manner provided by and subject
    16     to the provisions of the Pennsylvania Election Code, which
    17     relate to the nomination of a candidate nominated by
    18     nomination papers filed for other offices elective by the
    19     voters. Each candidate shall be nominated and listed without
    20     any political designation or slogan and no nomination paper
    21     shall be signed or circulated prior to the 13th Tuesday
    22     before the election nor later than the tenth Tuesday before
    23     the election. No signature shall be counted unless it bears a
    24     date within this period.
    25         (3)  Each elector shall be instructed to vote on the
    26     question and, regardless of the manner of his vote on the
    27     question, to vote for the designated number of members of the
    28     commission who shall serve if the question is or has been
    29     determined in the affirmative.
    30         (4)  If an insufficient number of nominating papers is
    20030H0077B2634                  - 8 -     

     1     filed to fill all of the designated positions on the
     2     commission, the question of establishing the commission shall
     3     be placed on the ballot and, unless a sufficient number of
     4     commission members are elected by receiving at least as many
     5     votes as signatures are required to file a nominating
     6     petition, then the question of creating the commission shall
     7     be deemed to have been rejected.
     8     (f)  Nomination of candidates.--
     9         (1)  All candidates for a commission shall be electors.
    10     Each candidate shall be nominated from the area of the
    11     proposed consolidated or merged municipality by nomination
    12     papers signed by a number of electors equal at least to 2% of
    13     the number of electors voting for the office of Governor in
    14     the last gubernatorial general election in each municipality
    15     proposed to be consolidated or merged or 200 electors from
    16     each municipality, whichever is less, and filed with the
    17     county board of elections of the county in which the
    18     municipality, or the greater portion of its territory, is
    19     located not later than the tenth Tuesday prior to the date of
    20     the election.
    21         (2)  Each nomination paper shall set forth the name,
    22     place of residence and post office address of the candidate
    23     thereby nominated, that the nomination is for the office of
    24     commissioner and that the signers are legally qualified to
    25     vote for the candidate. An elector may not sign nomination
    26     papers for more candidates for the commission than he could
    27     vote for at the election. Every elector signing a nomination
    28     paper shall write his place of residence, post office address
    29     and street number, if any, on the petition.
    30         (3)  Each nomination paper shall, before it may be filed
    20030H0077B2634                  - 9 -     

     1     with the county board of elections, contain under oath of the
     2     candidate an acceptance of the nomination in writing, signed
     3     by the candidate therein nominated, upon or annexed to the
     4     paper, or, if the same person be named in more than one
     5     paper, upon or annexed to one of the papers. The acceptance
     6     shall certify that the candidate is an elector, that the
     7     nominee consents to run as a candidate at the election and
     8     that, if elected, the candidate agrees to take office and
     9     serve.
    10         (4)  Each nomination paper shall be verified by an oath
    11     of one or more of the signers, taken and subscribed before a
    12     person qualified under the laws of this Commonwealth to
    13     administer an oath, to the effect that the paper was signed
    14     by each of the signers in his proper handwriting, that the
    15     signers are, to the best knowledge and belief of the affiant,
    16     electors and that the nomination paper is prepared and filed
    17     in good faith for the sole purpose of endorsing the person
    18     named therein for election as stated in the paper.
    19     (g)  Results of election.--
    20         (1)  The result of the votes cast for and against the
    21     question as to the election of a commission and consolidation
    22     and merger proceedings shall be returned by the election
    23     officers, and a canvass of the election had, as is provided
    24     by law in the case of other public questions put to the
    25     electors. The votes cast for members of the commission shall
    26     be counted and the result returned by the county board of
    27     electors of the county in which the municipality, or the
    28     greater portion of its territory, is located, and a canvass
    29     of the election had, as is provided by law in the case of
    30     election of members of municipal councils or boards. The
    20030H0077B2634                 - 10 -     

     1     designated number of candidates receiving the greatest number
     2     of votes shall be elected and shall constitute the
     3     commission. If a majority of those voting on the question
     4     vote against the election of the commission, none of the
     5     candidates shall be elected. If two or more candidates for
     6     the last seat shall be equal in number of votes, they shall
     7     draw lots to determine which one shall be elected.
     8         (2)  If, in accordance with subsection (e)(4), there has
     9     been an insufficient number of nominating papers filed to
    10     fill all of the designated positions on the commission and a
    11     sufficient number of commission members are not elected by
    12     receiving at least as many votes as signatures are required
    13     to file a nominating petition, the question as to the
    14     election of a commission and consolidation and merger
    15     proceedings shall be deemed to have been rejected and shall
    16     fail and none of the candidates shall be elected.
    17     (h)  Oath of office of members of commission.--                <--
    18         (1)  As soon as possible and in any event no later than
    19     ten days after its certification of election, the members of
    20     a commission elected on a countywide basis shall, before a
    21     judge of a court of common pleas, make oath to support the
    22     Constitution of the United States and the Constitution of
    23     Pennsylvania and to perform the duties of the office with
    24     fidelity.
    25         (2)  As soon as possible and in any event no later than
    26     (H)  OATH OF OFFICE OF MEMBERS OF COMMISSION.--AS SOON AS      <--
    27  POSSIBLE AND IN ANY EVENT NO LATER THAN ten days after its
    28  certification of election, the members of a commission elected
    29  on other than a countywide basis shall, before a JUDGE OR A       <--
    30  district justice, make oath to support the Constitution of the
    20030H0077B2634                 - 11 -     

     1  United States and the Constitution of Pennsylvania and to
     2  perform the duties of the office with fidelity.
     3     (i)  First meeting of commission.--
     4         (1)  As soon as possible and in any event no later than
     5     15 days after its certification of election, a commission
     6     shall organize and hold its first meeting and elect one of
     7     its members chairman and another member vice chairman, fix
     8     its hours and place of meeting and adopt rules for the
     9     conduct of business it deems necessary and advisable.
    10         (2)  A majority of the members of the commission shall
    11     constitute a quorum for the transaction of business, but no
    12     recommendation of the commission shall have any legal effect
    13     unless adopted by a majority of the whole number of the
    14     members of the commission.
    15     (j)  Vacancies.--In case of a vacancy in a commission, the
    16  remaining members of the commission shall fill it by appointing
    17  thereto some other properly qualified elector.
    18     (k)  Function and duty of commission.--
    19         (1)  A commission shall study the issue of consolidation
    20     or merger of the municipalities.
    21         (2)  The commission shall study the advisability of a new
    22     home rule charter form of government for the proposed
    23     consolidated or merged municipality and compare it with other
    24     available forms under the laws of this Commonwealth and
    25     determine in its judgment which form of government is more
    26     clearly responsible or accountable to the people and its
    27     operation more economical and efficient.
    28         (3)  If a new home rule charter is found to be the most
    29     advisable form of government for the proposed consolidated or
    30     merged municipality, the commission shall:
    20030H0077B2634                 - 12 -     

     1             (i)  Draft and recommend to the electorate a new home
     2         rule charter for the proposed consolidated or merged
     3         municipality containing a transitional plan and schedule
     4         applicable to elected officers; Provided, However, That
     5         nothing in this section shall be construed as authorizing
     6         a consolidated or merged municipality adopting a new home
     7         rule charter pursuant to this section to exercise powers
     8         not granted to a municipality adopting a home rule
     9         charter pursuant to Part III, Subpt. E (relating to home
    10         rule and optional plan government).
    11             (ii)  If the new home rule charter calls for all or
    12         any part of the governing body of the consolidated or
    13         merged municipality to be elected on a district or ward
    14         basis, prepare and set forth, as an appendix to the new
    15         home rule charter:
    16                 (A)  The district or ward boundaries established
    17             to achieve substantially equal representation.
    18                 (B)  The district or ward designation by number.
    19                 (C)  The number of members of the municipal
    20             governing body to be elected from each district or
    21             ward.
    22             (iii)   Prepare and suggest for adoption by the
    23         governing body of the newly consolidated or merged
    24         municipality recommendations concerning:
    25                 (A)  The disposition of assets that may be
    26             surplus or unneeded as a result of the consolidation
    27             or merger.
    28                 (B)  The liquidation, assumption or other
    29             disposition of existing indebtedness of the
    30             consolidated or merged municipalities.
    20030H0077B2634                 - 13 -     

     1                 (C)  A legally consistent uniform tax system to
     2             be implemented throughout the consolidated or merged
     3             municipality which provides the revenue necessary to
     4             fund required municipal services.
     5                 (D)  Ordinances to be uniformly enforced
     6             throughout the consolidated or merged municipality,
     7             which may be adopted by the new governing body of the
     8             consolidated or merged municipality at its
     9             organizational meeting; Provided, That codification
    10             of all ordinances shall be completed as specified in
    11             section 740 (relating to procedures).
    12     (l)  Compensation, personnel and commission budget.--
    13         (1)  Members of the commission shall serve without
    14     compensation, but shall be reimbursed by the municipalities
    15     proposed to be consolidated or merged for their necessary
    16     expenses incurred in the performance of their duties.
    17         (2)  The commission may appoint one or more consultants
    18     and clerical and other assistants to serve at the pleasure of
    19     the commission and may fix reasonable compensation therefor
    20     to be paid the consultants and clerical and other assistants.
    21         (3)  In accordance with this subsection, the commission
    22     shall prepare and submit to the governing body of each of the
    23     municipalities being considered for consolidation or merger,
    24     budget estimates of the amount of money necessary to meet the
    25     expenditures to be incurred by the commission in the carrying
    26     out of its functions in accordance with this section,
    27     including, but not limited to, reasonable estimations of the
    28     necessary expenses of commission members, compensation of
    29     consultants, clerical personnel and other assistants and
    30     other expenditures incident to work of the commission.
    20030H0077B2634                 - 14 -     

     1         (4)  The commission shall prepare and submit an initial
     2     budget submission that estimates expenses for the first nine-
     3     month phase of the commission's work. The initial budget
     4     estimate shall be submitted as soon as possible and in any
     5     event no later than 45 days after the commission's
     6     certification of election.
     7         (5)  If, during the first nine-month phase of its work,
     8     the commission elects to prepare and submit a new home rule
     9     charter for the proposed consolidated or merged municipality,
    10     a final budget shall be submitted to the governing body of
    11     each of the municipalities being considered for consolidation
    12     or merger that estimates expenses to be incurred in the
    13     completion of the commission's work.
    14         (6)  No later than 15 days after the submission of a
    15     budget in accordance with paragraphs (4) or (5), a joint
    16     public hearing of the commission and the governing bodies of
    17     the municipalities shall be held. The governing bodies of the
    18     municipalities to be consolidated or merged may, by
    19     agreement, modify any budget submitted by the commission. A
    20     governing body of a municipality to be consolidated or merged
    21     may approve appropriations to the commission in conformity
    22     with its share of the modified budget, as determined in
    23     accordance with paragraph (7). Any unreasonable modification
    24     of the budget may be subject to an action as provided in
    25     paragraph (8) in the court of common pleas of any county
    26     wherein a municipality to be consolidated or merged lies.
    27         (7)  The municipalities to be consolidated or merged may,
    28     by agreement, determine the share that each municipality
    29     shall appropriate to fund the estimated budget of the
    30     commission. If no agreement as to the respective amount that
    20030H0077B2634                 - 15 -     

     1     each municipality shall appropriate is reached, each
     2     municipality shall appropriate funds equal to its pro rata
     3     share of the total estimated budget of the commission based
     4     upon its share of population to the total population of the
     5     municipalities to be consolidated or merged.
     6         (8)  The commission may bring an action in the court of
     7     common pleas of the county where a municipality is located
     8     requesting that the court determine whether the municipality
     9     has failed to reasonably modify an estimated budget or to
    10     appropriate moneys in accordance with this subsection. The
    11     court may provide appropriate relief, including, but not
    12     limited to, ordering appropriation of funds in accordance
    13     with the budget:
    14             (i)  as submitted by the commission or as modified by
    15         the municipalities; or
    16             (ii)  as modified by the court.
    17         (9)  In all cases, the costs and fees of any action
    18     brought by the commission under this subsection shall be paid
    19     by the municipality or municipalities named as defendants.
    20         (10)  A municipality shall be entitled to a proportionate
    21     reimbursement or offset of its share of the budget by any
    22     publicly or privately contributed funds or services made
    23     available to the commission.
    24     (m)  Hearings and public forums.--A commission shall hold one
    25  or more public hearings and sponsor public forums and generally
    26  shall provide for the widest possible public information and
    27  discussion respecting the purposes and progress of its work.
    28     (n)  Report of findings and recommendations.--
    29         (1)  A commission shall report its findings and
    30     recommendations to the citizens of the proposed consolidated
    20030H0077B2634                 - 16 -     

     1     or merged municipalities within nine months from the date of
     2     its election except that it shall be permitted an additional
     3     nine months if it elects to prepare and submit a proposed new
     4     home rule charter and an additional two months if it chooses
     5     to provide for the election of its governing body by
     6     districts. It shall publish or cause to be published
     7     sufficient copies of its final report for public study and
     8     information and shall deliver to the municipal clerk or
     9     secretary of each municipality proposed to be consolidated or
    10     merged sufficient copies of the report to supply it to any
    11     interested citizen upon request. If the commission recommends
    12     the adoption of a new home rule charter, the report shall
    13     contain the complete plan as recommended.
    14         (2)  There shall be attached to each copy of the report
    15     of the commission, as a part thereof, a statement sworn to by
    16     the members of the commission listing in detail the funds,
    17     goods, materials and services, both public and private, used
    18     by the commission in the performance of its work and the
    19     preparation and filing of the report and identifying
    20     specifically the supplier of each item thereon.
    21         (3)  A copy of the final report of the commission with
    22     its findings and recommendations shall be filed with the
    23     Department of Community and Economic Development.
    24         (4)  All the records, reports, tapes, minutes of meetings
    25     and written discussions of the commission shall, upon its
    26     discharge, be turned over to the municipal clerk or secretary
    27     of each municipality proposed to be consolidated or merged
    28     for permanent safekeeping and made available for public
    29     inspection at any time during regular business hours.
    30     (o)  Discharge of petition and amended reports.--
    20030H0077B2634                 - 17 -     

     1         (1)  A commission shall be discharged upon the filing of
     2     its report, but, if the commission's recommendations require
     3     further procedure in the form of a referendum on the part of
     4     the electors, the commission shall not be discharged until
     5     the procedure has been concluded. At any time prior to 60
     6     days before the date of the referendum, the commission may
     7     modify or change any recommendation set forth in the final
     8     report by publishing an amended report.
     9         (2)  Whenever the commission issues an amended report
    10     pursuant to paragraph (1), the amended report shall supersede
    11     the final report and the final report shall cease to have any
    12     legal effect.
    13         (3)  The procedure to be taken under the amended report
    14     shall be governed by the provisions of this subpart
    15     applicable to the final report of the commission submitted
    16     pursuant to subsection (n).
    17     (p)  Types of action recommended.--A commission shall report
    18  and recommend in accordance with this section:
    19         (1)  That a referendum shall be held that submits to the
    20     electors the question of consolidating or merging the named
    21     municipalities under a new home rule charter as prepared by
    22     the commission.
    23         (2)  That no referendum shall be held because
    24     consolidation or merger of the named municipalities under a
    25     new home rule charter is not recommended by the commission.
    26         (3)  That the named municipalities consider such other
    27     action as the commission recommends and deems advisable
    28     consistent with its functions as set forth in this section.
    29     (q)  Specificity of recommendations.--
    30         (1)  If a commission recommends the adoption of a new
    20030H0077B2634                 - 18 -     

     1     home rule charter, it shall specify the number OF MEMBERS to   <--
     2     be on the governing body, all offices to be filled by
     3     election and whether elections shall be on an at-large,
     4     district or combination district and at-large basis.
     5         (2)  Notwithstanding any other provisions of this
     6     subpart, if an approved new home rule charter adopted
     7     pursuant to the provisions of this subpart specifies that the
     8     election of the governing body should be on an at-large,
     9     district or combination district and at-large basis and the
    10     basis recommended differs from the existing basis and
    11     therefore requires the elimination of districts or the
    12     establishment of revised or new districts, then election of
    13     municipal officials shall not take place on the new basis
    14     until the municipal election following the next primary
    15     election taking place more than 180 days after the election
    16     at which the referendum on the question of a consolidation or
    17     merger and new home rule charter has been approved by the
    18     electorate. The consolidation or merger and new home rule
    19     charter shall not go into effect until the first Monday in
    20     January following the election of municipal officials on the
    21     new basis as provided in section 738 (relating to
    22     effectuation of consolidation or merger). New or revised
    23     districts shall be established by the commission and included
    24     in the proposed charter.
    25     (r)  Form of question on consolidation or merger and new home
    26  rule charter.--If a commission recommends consolidation or
    27  merger and the adoption of a new home rule charter for the
    28  municipalities to be consolidated or merged, the question to be
    29  submitted to the voters for the adoption of consolidation or
    30  merger and a new home rule charter shall be submitted in the
    20030H0077B2634                 - 19 -     

     1  following form or such part as shall be applicable.
     2         Shall the municipalities of (insert names of
     3         municipalities consolidating or merging) be (insert
     4         consolidated or merged) to become (insert name of new
     5         municipality, type and class of municipality) under a new
     6         home rule charter contained in the report, dated (insert
     7         date), of the commission?
     8     (s)  Submission of question on consolidation or merger and
     9  new home rule charter.--If a commission recommends that the
    10  question of adopting consolidation or merger and a new home rule
    11  charter authorized by this subpart should be submitted to the
    12  electors, the municipal clerk or secretary of each municipality
    13  proposed to be consolidated or merged shall, within five days
    14  thereafter, certify a copy of the commission's report to the
    15  county board of elections of the county in which the
    16  municipality, or the greater portion of its territory, is
    17  located, which shall cause the question of adoption or rejection
    18  to be placed upon the ballot or voting machines at the time as
    19  the commission specifies in its report. The commission may cause
    20  the question to be submitted to the electors at the next
    21  primary, municipal or general election occurring not less than
    22  60 days following the filing of a copy of the commission's
    23  report with the county board of elections, at the time the
    24  commission's report directs. At the election, the question of
    25  adopting consolidation or merger and a new home rule charter
    26  recommended by the commission shall be submitted to the electors
    27  by the county board of elections in the same manner as other
    28  questions are submitted to the electors under the Pennsylvania
    29  Election Code. The commission shall frame the question to be
    30  placed upon the ballot as provided for in subsection (r) and, if
    20030H0077B2634                 - 20 -     

     1  it deems appropriate, an interpretative statement to accompany
     2  the question.
     3     (t)  Amendment of new home rule charter.--The procedure for
     4  amending the new home rule charter of the consolidated or merged
     5  municipality created under this subpart shall be through the
     6  initiative procedure and referendum or ordinance of the
     7  governing body as provided for in Subchapter C of Chapter 29
     8  (relating to amendment of existing charter or optional plan).
     9     (u)  General powers and limitation of consolidated or merged
    10  municipality under new home rule charter.--Nothing in this
    11  section shall be construed as authorizing a consolidated or
    12  merged municipality adopting a new home rule charter to exercise
    13  powers not granted to a municipality adopting a home rule
    14  charter pursuant to Subpart E of Part III.
    15     (V)  DEFINITION.--AS USED IN THIS SECTION, THE TERM            <--
    16  "MUNICIPALITY" SHALL NOT INCLUDE A COUNTY OF ANY CLASS.
    17     Section 4.  Sections 736, 737, 738, 739(a), 740(a) and 741 of
    18  Title 53 are amended to read:
    19  § 736.  Conduct of referenda.
    20     (a)  Duty to place on ballot.--Following initiation of
    21  proceedings for consolidation or merger by the procedures set
    22  forth either in section 734 (relating to joint agreement of
    23  governing bodies) or 735 (relating to initiative of electors
    24  seeking consolidation or merger without new home rule charter),
    25  the question of consolidation or merger as set forth in the
    26  joint agreement or initiative petition shall be placed before
    27  the electors of each of the municipalities proposed to be
    28  consolidated or merged. A referendum shall be held at the first
    29  primary, municipal or general election occurring at least 13
    30  weeks after either:
    20030H0077B2634                 - 21 -     

     1         (1)  the date of the general agreement entered into under
     2     the provisions of section 734; or
     3         (2)  the date of filing of the petition filed under the
     4     provisions of section 735.
     5     (a.1)  Referenda under section 735.1.--Referenda authorized
     6  under section 735.1 (relating to initiative of electors seeking
     7  consolidation or merger with new home rule charter) shall be
     8  placed on the ballot in accordance with section 735.1(d)(3) and
     9  (s).
    10     (b)  Approval.--[Consolidation] Pursuant to sections 734, 735
    11  and 735.1 consolidation or merger shall not be effective unless
    12  the referendum question is approved by a majority of the
    13  electors voting in each of the municipalities in which the
    14  referendum is held. If in any one of the municipalities in which
    15  the referendum is held a majority vote in favor of consolidation
    16  or merger does not result, the referendum shall fail and
    17  consolidation or merger shall not take place. The same question
    18  in accordance with sections 734 or 735, or the same question
    19  described in the proposal for consolidation or merger with a new
    20  home rule charter in accordance with section 735.1 described in
    21  the consolidation or merger proposal shall not be voted on again
    22  for a period of five years.
    23     (c)  Subsequent referenda.--The five-year moratorium on
    24  voting the same consolidation or merger question as provided in
    25  subsection (b) shall be deemed not to apply to any subsequent
    26  referendum question involving a consolidation or merger of any
    27  combination of two or more contiguous municipalities if the
    28  referendum question differs or is dissimilar in any way from a
    29  previous referendum question which was not approved as provided
    30  for in subsection (b).
    20030H0077B2634                 - 22 -     

     1  § 737.  Consolidation or merger agreement.
     2     (a)  Form.--Upon favorable action by the electorate on
     3  consolidation or merger, in cases where consolidation or merger
     4  was initiated by petition of electors under section 735
     5  (relating to initiative of electors seeking consolidation or
     6  merger without new home rule charter), the governing bodies of
     7  the municipalities to be consolidated or merged shall meet
     8  within 60 days after the certification of the favorable vote and
     9  shall within a reasonable time after certification make a
    10  consolidation or merger agreement as follows:
    11         (1)  If the governing body, or part of the governing
    12     body, of the consolidated or merged municipality is to be
    13     elected on a district or ward basis, the agreement shall set
    14     forth the district or ward boundaries and the district or
    15     ward designation, by number, and the number of members of the
    16     municipal governing body to be elected from each district or
    17     ward. The boundaries of the districts or wards shall be
    18     established to achieve substantially equal representation.
    19         (2)  The agreement shall set forth terms for:
    20             (i)  The disposition of the existing assets of each
    21         municipality.
    22             (ii)  The liquidation of the existing indebtedness of
    23         each municipality.
    24             (iii)  The assumption, assignment and disposition of
    25         the existing liabilities of each municipality, either
    26         jointly, separately or in certain defined proportions, by
    27         separate rates of taxation within each of the constituent
    28         municipalities until consolidation or merger becomes
    29         effective pursuant to section 738 (relating to
    30         effectuation of consolidation or merger).
    20030H0077B2634                 - 23 -     

     1         (3)  The agreement shall set forth the governmental
     2     organization of the consolidated or merged municipality
     3     insofar as it concerns elected officers and shall contain a
     4     transitional plan and schedule applicable to elected
     5     officers.
     6         (4)  The agreement shall provide for common
     7     administration and uniform enforcement of ordinances within
     8     the consolidated or merged municipality.
     9         (5)  The agreement shall also provide, consistent with
    10     existing law, for the implementation of a uniform tax system
    11     throughout the consolidated or merged municipality which
    12     shall provide the revenue necessary to fund required
    13     municipal services.
    14     (b)  Filing.--A copy of the consolidation or merger agreement
    15  under this section or the joint agreement under section 734
    16  (relating to joint agreement of governing bodies) after approval
    17  by the electorate shall be filed with the Department of
    18  Community [Affairs] and Economic Development, the Department of
    19  Transportation, the Governor's Office of Policy Development or
    20  its successor, the Department of Education, the State Tax
    21  Equalization Board and the Legislative Data Processing
    22  Committee. A copy shall also be filed with the court of common
    23  pleas and the board of county commissioners of the county or
    24  counties in which municipalities affected are located.
    25  § 738.  Effectuation of consolidation or merger.
    26     Municipalities consolidated or merged shall continue to be
    27  governed as before consolidation or merger until the date
    28  stipulated in the transitional plan and schedule provided for in
    29  sections 734 (relating to joint agreement of governing bodies)
    30  and 737 (relating to consolidation or merger agreement)[. New],
    20030H0077B2634                 - 24 -     

     1  or the transitional plan provided for by a study commission
     2  pursuant to section 735.1 (relating to initiative of electors
     3  seeking consolidation or merger with new home rule charter).
     4  Subject to the provisions of section 735.1(q), new officials
     5  required to be elected shall take office on the first Monday of
     6  January following the municipal election designated in the
     7  transitional plan and schedule. At that municipal election, the
     8  necessary officers of the consolidated or merged municipality
     9  shall be elected in accordance with the terms of the general law
    10  affecting municipalities of the kind or class of the
    11  consolidated or merged municipality or, in case of a
    12  consolidated or merged municipality operating under a home rule
    13  charter or optional plan of government, in accordance with the
    14  charter or optional plan or with general law affecting home rule
    15  or optional plan municipalities, as applicable. The officers
    16  elected at that municipal election shall be elected for terms of
    17  office under the plan and schedule set forth in the
    18  consolidation or merger agreement authorized by section 734 or
    19  737, or the transitional plan provided for by a commission
    20  pursuant to section 735.1, as the case may be. They shall take
    21  office as officers of the consolidated or merged municipality on
    22  the first Monday of January following the municipal election at
    23  which they were elected, and upon assumption of office, the
    24  consolidated or merged municipality shall begin to function and
    25  the former municipalities consolidated or merged into it shall
    26  be abolished.
    27  § 739.  Effect of transition on employees of consolidated or
    28             merged municipality.
    29     (a)  Transition.--As of the date when a consolidated or
    30  merged municipality shall begin to function, except for those
    20030H0077B2634                 - 25 -     

     1  officers and employees which are protected by any tenure of
     2  office, civil service provisions or collective bargaining
     3  agreement, all appointive offices and positions then existing in
     4  all former municipalities involved in the consolidation or
     5  merger shall be subject to the terms of the consolidation or
     6  merger agreement or transitional plan as provided for in section
     7  735.1 (relating to initiative of electors seeking consolidation
     8  or merger with new home rule charter). Provisions shall be made
     9  for instances in which there is duplication of positions,
    10  including, but not limited to, chief of police or manager, and
    11  for other matters such as varying length of employee contracts,
    12  different civil service regulations in the constituent
    13  municipalities and differing ranks and position classifications
    14  for similar positions.
    15     * * *
    16  § 740.  Procedures.
    17     (a)  Ordinance book.--After consolidation becomes effective,
    18  a new ordinance book shall be used by the municipality, and,
    19  except for a municipality consolidated or merged under section
    20  735.1 (relating to initiative of electors seeking consolidation
    21  or merger with new home rule charter), the first document to be
    22  recorded in it shall be the consolidation agreement.
    23     * * *
    24  § 741.  Court review of transitional plan.
    25     [After] (a)  General rule.--Except as provided in subsection
    26  (b), after the approval of a referendum pursuant to section 736
    27  (relating to conduct of referenda), any person who is a resident
    28  of a municipality to be consolidated or merged may petition the
    29  court of common pleas to order the appropriate municipal
    30  governing bodies to:
    20030H0077B2634                 - 26 -     

     1         (1)  implement the terms of a transitional plan and
     2     schedule adopted pursuant to section 734 (relating to joint
     3     agreement of governing bodies) or 737 (relating to
     4     consolidation or merger agreement); or
     5         (2)  adopt or amend a transitional plan or schedule if
     6     the court finds that the failure to do so will result in the
     7     unreasonable perpetuation of the separate forms and
     8     classifications of government existing in the affected
     9     municipalities prior to the approval of the referendum.
    10     (b)  Exception.--After consolidation or merger pursuant to
    11  section 735.1 (relating to initiative of electors seeking
    12  consolidation or merger with new home rule charter), any person
    13  who is a resident of the newly consolidated or merged
    14  municipality may petition the court of common pleas to order the
    15  governing body of that municipality to act to accept or provide
    16  alternatives to the recommendations of the commission in
    17  accordance with section 735.1(k)(3)(iii).
    18     Section 5.  This act shall take effect in 60 days.








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