THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY EICHELBERGER, MUSTO, M. WHITE, WOZNIAK, MENSCH, PICCOLA, FOLMER, ALLOWAY, WARD, D. WHITE, EARLL, WAUGH, BRUBAKER AND ARGALL, JUNE 28, 2010

REFERRED TO LOCAL GOVERNMENT, JUNE 28, 2010  

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, further providing for consolidations

and mergers.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 732, 733, 734, 735, 735.1 and 737 of

Title 53 of the Pennsylvania Consolidated Statutes are amended

to read:

§ 732.  Definitions.

The following words and phrases when used in this subchapter

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

context clearly indicates otherwise:

"Commission."  A board of members elected under the

provisions of section 735.1 (relating to initiative of electors

seeking consolidation or merger with new home rule charter) to

consider the advisability of the adoption of a new home rule

charter for the proposed consolidated or merged municipality

and, if advisable, to draft and recommend a new home rule

charter to the electorate.

"Consolidated or merged municipality."  A municipal entity

resulting from successful consolidation or merger proceedings

under this subchapter.

"Consolidation."  The combination of two or more

municipalities which results in the termination of the existence

of each of the municipalities to be consolidated and the

creation of a new municipality which assumes jurisdiction over

all of the municipalities which have been terminated.

"Contiguous territory."  A territory of which a portion abuts

the boundary of another municipality, including territory

separated from the exact boundary of another municipality by a

street, road, railroad or highway or by a river or other natural

or artificial stream of water.

"Election officials."  The county boards of election.

"Electors."  The registered voters of a municipality involved

in proceedings relating to the adoption and repeal of optional

forms of government.

"Governing body."  The council in cities, boroughs and

incorporated towns; the board of commissioners in counties of

the third, fourth, fifth, sixth, seventh and eighth classes and

townships of the first class; the board of supervisors in

townships of the second class; or the legislative policymaking

body in home rule municipalities.

"Initiative."  The filing with applicable election officials

of a petition containing a proposal for a referendum to be

placed on the ballot of the next election. The petition shall

be:

(1)  Filed not later than the 13th Tuesday prior to the

next election in which it will appear on the ballot.

(2)  Signed by voters comprising 5% of the number of

electors voting for the office of Governor in the last

gubernatorial general election in the municipality where the

proposal will appear on the ballot.

(3)  Placed on the ballot by election officials in a

manner fairly representing the content of the petition for

decision by referendum at the election.

(4)  Submitted not more than once in five years.

"Merger."  The combination of two or more municipalities

which results in the termination of the existence of all but one

of the municipalities to be merged with the surviving

municipality absorbing and assuming jurisdiction over the

municipalities which have been terminated.

"Municipality."  Every county other than a county of the

first class, second class and second class A, every city other

than a city of the first or second class, and every borough,

incorporated town, township and home rule municipality other

than a home rule municipality which would otherwise be a city of

the first or second class.

"New home rule charter."  A written document that defines the

powers, structure, privileges, rights and duties of the proposed

consolidated or merged municipality, the limitations thereon and

that provides for the composition and election of the governing

body chosen by popular elections.

"Referendum."  A vote seeking approval by a majority of

electors voting on a question of consolidation or merger placed

on the ballot by initiative or otherwise.

§ 733.  Procedure for consolidation or merger.

(a)  General rule.--Two or more municipalities may be

consolidated or merged into a single municipality, whether

within the same or different counties, if each of the

municipalities is contiguous to at least one of the other

consolidating or merging municipalities and if together the

municipalities would form a consolidated or merged municipality.

Consolidation or merger may be commenced by one of the

following:

(1)  Joint agreement of the governing bodies of the

municipalities proposed for consolidation or merger approved

by ordinance followed by approval by the electorate of the

joint agreement.

(2)  Initiative of electors.

(3)  One or more of the municipalities using a joint

agreement followed by approval by the electorate of the joint

agreement and one or more of the municipalities using

initiative of electors.

(b)  Combination of joint agreement and initiative.--When

consolidation or merger is commenced by a combination of joint

agreements and initiatives, the initiative petition and

municipal joint agreement shall be materially consistent.

(c)  Approval of home rule charter or optional plan.--At the

same time that voters approve or disapprove the consolidation or

merger of two or more municipalities, voters may approve or

disapprove a new home rule charter or an optional plan under

Subpart E of Part III (relating to home rule and optional plan

government) that will govern the newly formed municipality

resulting from the merger or consolidation. The same ballot may

contain a question to consolidate or merge two or more

municipalities and a question to adopt a home rule charter or an

optional plan.

§ 734.  Joint agreement of governing bodies.

(a)  General rule.--The governing body of each municipality

proposed to be consolidated or merged shall enter into a joint

agreement under the official seal of each municipality to

consolidate or merge into one municipality.

(b)  Elements.--The joint agreement shall include, but not be

limited to:

(1)  The name of each municipality that is a party to the

agreement.

(2)  The name and the territorial boundaries of the

consolidated or merged municipality.

(3)  The type and class of the consolidated or merged

municipality.

(4)  Whether a consolidated or merged municipality shall

be governed solely by the code and other general laws

applicable to the kind and class of the consolidated or

merged municipality; whether it shall be governed by a home

rule charter or optional plan of government previously

adopted pursuant to [the act of April 13, 1972 (P.L.184,

No.62), known as the Home Rule Charter and Optional Plans

Law, or] Subpart E of Part III (relating to home rule and

optional plan government), by one of the municipalities to be

consolidated or merged; or whether it shall be governed by a

home rule charter or optional plan of government that has not

been previously adopted in accordance with [the Home Rule

Charter and Optional Plans Law or] Subpart E of Part III by

any of the municipalities to be consolidated or merged, but

which, in the case of an optional plan of government, has

been selected and approved by the governing body of each of

the municipalities to be consolidated or merged from among

the options provided for in Subpart E of Part III or, in the

case of a home rule charter, has been formulated and approved

by the governing body of each of the municipalities to be

consolidated or merged; provided, however, that nothing in

this subchapter shall be construed as authorizing a

municipality adopting a home rule charter or optional plan of

government pursuant to this subchapter to exercise powers not

granted to a municipality adopting a home rule charter or an

optional plan of government pursuant to Subpart E of Part

III.

(5)  The number of districts or wards, if any, into which

the consolidated or merged municipality will be divided for

the purpose of electing all or some members of its governing

body, and the boundaries of wards or districts shall be

established to achieve substantially equal representation.

(6)  In the case of a merger, where the surviving

municipality is a city which had previously adopted an

optional charter pursuant to the act of July 15, 1957

(P.L.901, No.399), known as the Optional Third Class City

Charter Law, whether the resulting merged municipality will

continue to operate under the optional charter.

(7)  Terms for:

(i)  The disposition of existing assets of each

municipality.

(ii)  The liquidation of existing indebtedness of

each municipality.

(iii)  The assumption, assignment or disposition of

existing liabilities of each municipality, either

jointly, separately or in certain defined proportions, by

separate rates of taxation within each of the constituent

municipalities until consolidation or merger becomes

effective pursuant to section 738 (relating to

effectuation of consolidation or merger).

(iv)  The implementation of a legally consistent

uniform tax system throughout the consolidated or merged

municipality which provides the revenue necessary to fund

required municipal services.

(8)  The governmental organization of the consolidated or

merged municipality insofar as it concerns elected officers.

(9)  A transitional plan and schedule applicable to

elected officers.

(10)  The common administration and enforcement of

ordinances enforced uniformly within the consolidated or

merged municipality.

(c)  Transitional planning committee.--In preparing and

adopting a joint agreement, the governing bodies of the

municipalities may appoint a transitional planning committee

composed of residents of the respective municipalities to study

and make recommendations to the governing bodies regarding

transitional plans and schedules, common administration and

uniform enforcement of ordinances, consolidation and merger of

departments and staff and other matters of concern to the

governing bodies. The transitional planning committee, if

created, shall continue for a maximum of six months after the

effective date of the consolidation or merger to advise the new

governing body of the consolidated or merged municipality on

merging budgets, staffing and operations.

§ 735.  Initiative of electors seeking consolidation or merger

without new home rule charter.

(a)  General rule.--In order for consolidation or merger

proceedings to be initiated by petition of electors, petitions

containing signatures of at least 5% of the number of electors

voting for the office of Governor in the last gubernatorial

general election in each municipality proposed to be

consolidated or merged shall be filed with the county board of

elections of the county in which the municipality, or the

greater portion of its territory, is located.

(b)  Notice to governing bodies affected.--When election

officials find that a petition is in proper order, they shall

send copies of the initiative petition without the signatures

thereon to the governing bodies of each of the municipalities

affected by the proposed consolidation or merger.

(c)  Contents.--A petition shall set forth:

(1)  The name of the municipality from which the signers

of the petition were obtained.

(2)  The names of the municipalities proposed to be

consolidated or merged.

(3)  The name of the consolidated or merged municipality.

(4)  The type and class of the consolidated or merged

municipality.

(5)  Whether a consolidated or merged municipality shall

be governed solely by the code and other general laws

applicable to the kind and class of the consolidated or

merged municipality; whether it shall be governed by a home

rule charter or optional plan of government previously

adopted pursuant to [the act of April 13, 1972 (P.L.184,

No.62), known as the Home Rule Charter and Optional Plans

Law, or] Subpart E of Part III (relating to home rule and

optional plan government), by one of the municipalities to be

consolidated or merged; or whether it shall be governed by an

optional plan of government that has not been previously

adopted in accordance with [the Home Rule Charter and

Optional Plans Law or] Subpart E of Part III by any of the

municipalities to be consolidated or merged, but which has

been selected from among the options provided for in Subpart

E of Part III and is identified in the petition; provided,

however, that nothing in this subchapter shall be construed

as authorizing a municipality adopting an optional plan of

government pursuant to this subchapter to exercise powers not

granted to a municipality adopting an optional plan of

government pursuant to Subpart E of Part III.

(6)  In the case of a merger, where the surviving

municipality is a city which had previously adopted an

optional charter pursuant to the act of July 15, 1957

(P.L.901, No.399), known as the Optional Third Class City

Charter Law, whether the resulting merged municipality will

continue to operate under the optional charter.

(7)  The number of districts or wards, if any, into which

the consolidated or merged municipality will be divided for

the purpose of electing all or some members of its governing

body.

(d)  Filing of petition.--The consolidation or merger

petition shall be filed with the election officials not later

than the 13th Tuesday prior to the next primary, municipal or

general election. The petition and proceedings on the petition

shall be conducted in the manner and subject to the provisions

of the election laws which relate to the signing, filing and

adjudication of nomination petitions insofar as the provisions

are applicable, except that no referendum petition shall be

signed or circulated prior to the 20th Tuesday before the

election, nor later than the 13th Tuesday before the election.

§ 735.1.  Initiative of electors seeking consolidation or merger

with new home rule charter.

(a)  General rule.--In order for a commission and

consolidation or merger proceedings to be initiated by petition

of electors, petitions containing signatures of at least 5% of

the number of electors voting for the office of Governor in the

last gubernatorial general election in each municipality

proposed to be consolidated or merged shall be filed with the

county board of elections of the county in which the

municipality, or the greater portion of its territory, is

located.

(b)  Notice to governing bodies affected.--When election

officials find that a petition is in proper order, they shall

send copies of the initiative petition without the signatures

thereon to the governing bodies of each of the municipalities

affected by the proposed consolidation or merger.

(c)  Contents.--A petition shall set forth:

(1)  The name of the municipality from which the signers

of the petition were obtained.

(2)  The names of the municipalities proposed to be

consolidated or merged.

(3)  The number of persons to compose the commission.

(4)  The petition question which shall read as follows:

Shall a Government Study Commission of (seven, nine

or eleven) members be elected to study the issue of

consolidation or merger of (municipalities to be

consolidated or merged); to provide a recommendation

on consolidation or merger; to consider the

advisability of the adoption of a new home rule

charter; and to draft a new home rule charter, if

recommended in the report of the commission?

(d)  Filing of petition and duty of election board.--

(1)  A commission and consolidation or merger proceedings

petition under this section shall be filed with the election

officials not later than the 13th Tuesday prior to the next

primary, municipal or general election.

(2)  The petition and proceedings on the petition shall

be conducted in the manner and subject to the provisions of

the election laws which relate to the signing, filing and

adjudication of nomination petitions insofar as the

provisions are applicable, except that no referendum petition

shall be signed or circulated prior to the 20th Tuesday

before the election, nor later than the 13th Tuesday before

the election.

(3)  At the next general, municipal or primary election

occurring not less than the 13th Tuesday after the filing of

the petition with the county board of elections, it shall

cause the appropriate question to be submitted to the

electors of each of the municipalities proposed to be

consolidated or merged in the same manner as other questions

are submitted under the act of June 3, 1937 (P.L.1333,

No.320), known as the Pennsylvania Election Code.

(e)  Election of members of commission.--

(1)  A commission of seven, nine or eleven members, as

designated in the question, shall be elected by the qualified

voters at the same election the question is submitted to the

electors.

(2)  Each candidate for the office of member of the

commission shall be nominated and placed upon the ballot

containing the question in the manner provided by and subject

to the provisions of the Pennsylvania Election Code, which

relate to the nomination of a candidate nominated by

nomination papers filed for other offices elective by the

voters. Each candidate shall be nominated and listed without

any political designation or slogan, and no nomination paper

shall be signed or circulated prior to the 13th Tuesday

before the election nor later than the tenth Tuesday before

the election. No signature shall be counted unless it bears a

date within this period.

(3)  Each elector shall be instructed to vote on the

question and, regardless of the manner of his vote on the

question, to vote for the designated number of members of the

commission who shall serve if the question is or has been

determined in the affirmative.

(4)  If an insufficient number of nominating papers is

filed to fill all of the designated positions on the

commission, the question of establishing the commission shall

be placed on the ballot and, unless a sufficient number of

commission members are elected by receiving at least as many

votes as signatures are required to file a nominating

petition, then the question of creating the commission shall

be deemed to have been rejected.

(f)  Nomination of candidates.--

(1)  All candidates for a commission shall be electors.

Each candidate shall be nominated from the area of the

proposed consolidated or merged municipality by nomination

papers signed by a number of electors equal at least to 2% of

the number of electors voting for the office of Governor in

the last gubernatorial general election in each municipality

proposed to be consolidated or merged or 200 electors from

each municipality, whichever is less, and filed with the

county board of elections of the county in which the

municipality, or the greater portion of its territory, is

located not later than the tenth Tuesday prior to the date of

the election.

(2)  Each nomination paper shall set forth the name,

place of residence and post office address of the candidate

thereby nominated, that the nomination is for the office of

commissioner and that the signers are legally qualified to

vote for the candidate. An elector may not sign nomination

papers for more candidates for the commission than he could

vote for at the election. Every elector signing a nomination

paper shall write his place of residence, post office address

and street number, if any, on the petition.

(3)  Each nomination paper shall, before it may be filed

with the county board of elections, contain under oath of the

candidate an acceptance of the nomination in writing, signed

by the candidate therein nominated, upon or annexed to the

paper or, if the same person be named in more than one paper,

upon or annexed to one of the papers. The acceptance shall

certify that the candidate is an elector, that the nominee

consents to run as a candidate at the election and that, if

elected, the candidate agrees to take office and serve.

(4)  Each nomination paper shall be verified by an oath

of one or more of the signers, taken and subscribed before a

person qualified under the laws of this Commonwealth to

administer an oath, to the effect that the paper was signed

by each of the signers in his proper handwriting, that the

signers are, to the best knowledge and belief of the affiant,

electors and that the nomination paper is prepared and filed

in good faith for the sole purpose of endorsing the person

named therein for election as stated in the paper.

(g)  Results of election.--

(1)  The result of the votes cast for and against the

question as to the election of a commission and consolidation

and merger proceedings shall be returned by the election

officers, and a canvass of the election had, as is provided

by law in the case of other public questions put to the

electors. The votes cast for members of the commission shall

be counted and the result returned by the county board of

electors of the county in which the municipality, or the

greater portion of its territory, is located, and a canvass

of the election had, as is provided by law in the case of

election of members of municipal councils or boards. The

designated number of candidates receiving the greatest number

of votes shall be elected and shall constitute the

commission. If a majority of those voting on the question

vote against the election of the commission, none of the

candidates shall be elected. If two or more candidates for

the last seat shall be equal in number of votes, they shall

draw lots to determine which one shall be elected.

(2)  If, in accordance with subsection (e)(4), there has

been an insufficient number of nominating papers filed to

fill all of the designated positions on the commission and a

sufficient number of commission members are not elected by

receiving at least as many votes as signatures are required

to file a nominating petition, the question as to the

election of a commission and consolidation and merger

proceedings shall be deemed to have been rejected and shall

fail, and none of the candidates shall be elected.

(h)  Oath of office of members of commission.--[As soon as

possible and in any event no]

(1)  No later than ten days after its certification of

election, the members of a commission elected on a countywide

basis shall, before a judge of a court of common pleas, make

oath to support the Constitution of the United States and the

Constitution of Pennsylvania and to perform the duties of the

office with fidelity.

(2)  No later than ten days after its certification of

election, the members of a commission elected on other than a

countywide basis shall, before a judge or a [district

justice] magisterial district judge, make oath to support the

Constitution of the United States and the Constitution of

Pennsylvania and to perform the duties of the office with

fidelity.

(i)  First meeting of commission.--

(1)  [As soon as possible and in any event no] No later

than 15 days after its certification of election, a

commission shall organize and hold its first meeting and

elect one of its members chairman and another member vice

chairman, fix its hours and place of meeting and adopt rules

for the conduct of business it deems necessary and advisable.

(2)  A majority of the members of the commission shall

constitute a quorum for the transaction of business, but no

recommendation of the commission shall have any legal effect

unless adopted by a majority of the whole number of the

members of the commission.

(j)  Vacancies.--In case of a vacancy in a commission, the

remaining members of the commission shall fill it by appointing

thereto some other properly qualified elector.

(k)  Function and duty of commission.--

(1)  A commission shall study the issue of consolidation

or merger of the municipalities.

(2)  The commission shall study the advisability of a new

home rule charter form of government for the proposed

consolidated or merged municipality and compare it with other

available forms under the laws of this Commonwealth and

determine in its judgment which form of government is more

clearly responsible or accountable to the people and its

operation more economical and efficient.

(3)  If a new home rule charter is found to be the most

advisable form of government for the proposed consolidated or

merged municipality, the commission shall:

(i)  Draft and recommend to the electorate a new home

rule charter for the proposed consolidated or merged

municipality containing a transitional plan and schedule

applicable to elected officers, provided, however, that

nothing in this section shall be construed as authorizing

a consolidated or merged municipality adopting a new home

rule charter pursuant to this section to exercise powers

not granted to a municipality adopting a home rule

charter pursuant to Subpart E of Part III (relating to

home rule and optional plan government).

(ii)  If the new home rule charter calls for all or

any part of the governing body of the consolidated or

merged municipality to be elected on a district or ward

basis, prepare and set forth as an appendix to the new

home rule charter:

(A)  The district or ward boundaries established

to achieve substantially equal representation.

(B)  The district or ward designation by number.

(C)  The number of members of the municipal

governing body to be elected from each district or

ward.

(iii)  Prepare and suggest for adoption by the

governing body of the newly consolidated or merged

municipality recommendations concerning:

(A)  The disposition of assets that may be

surplus or unneeded as a result of the consolidation

or merger.

(B)  The liquidation, assumption or other

disposition of existing indebtedness of the

consolidated or merged municipalities.

(C)  A legally consistent uniform tax system to

be implemented throughout the consolidated or merged

municipality which provides the revenue necessary to

fund required municipal services.

(D)  Ordinances to be uniformly enforced

throughout the consolidated or merged municipality,

which may be adopted by the new governing body of the

consolidated or merged municipality at its

organizational meeting, provided that codification of

all ordinances shall be completed as specified in

section 740 (relating to procedures).

(l)  Compensation, personnel and commission budget.--

(1)  Members of the commission shall serve without

compensation but shall be reimbursed by the municipalities

proposed to be consolidated or merged for their necessary

expenses incurred in the performance of their duties.

(2)  The commission may appoint one or more consultants

and clerical and other assistants to serve at the pleasure of

the commission and may fix reasonable compensation therefor

to be paid the consultants and clerical and other assistants.

(3)  In accordance with this subsection, the commission

shall prepare and submit, to the governing body of each of

the municipalities being considered for consolidation or

merger, budget estimates of the amount of money necessary to

meet the expenditures to be incurred by the commission in the

carrying out of its functions in accordance with this

section, including, but not limited to, reasonable

estimations of the necessary expenses of commission members,

compensation of consultants, clerical personnel and other

assistants and other expenditures incident to work of the

commission.

(4)  The commission shall prepare and submit an initial

budget submission that estimates expenses for the first nine-

month phase of the commission's work. The initial budget

estimate shall be submitted as soon as possible and in any

event no later than 45 days after the commission's

certification of election.

(5)  If, during the first nine-month phase of its work,

the commission elects to prepare and submit a new home rule

charter for the proposed consolidated or merged municipality,

a final budget shall be submitted to the governing body of

each of the municipalities being considered for consolidation

or merger that estimates expenses to be incurred in the

completion of the commission's work.

(6)  No later than 15 days after the submission of a

budget in accordance with paragraphs (4) or (5), a joint

public hearing of the commission and the governing bodies of

the municipalities shall be held. The governing bodies of the

municipalities to be consolidated or merged may, by

agreement, modify any budget submitted by the commission. A

governing body of a municipality to be consolidated or merged

may approve appropriations to the commission in conformity

with its share of the modified budget as determined in

accordance with paragraph (7). Any unreasonable modification

of the budget may be subject to an action as provided in

paragraph (8) in the court of common pleas of any county

wherein a municipality to be consolidated or merged lies.

(7)  The municipalities to be consolidated or merged may,

by agreement, determine the share that each municipality

shall appropriate to fund the estimated budget of the

commission. If no agreement as to the respective amount that

each municipality shall appropriate is reached, each

municipality shall appropriate funds equal to its pro rata

share of the total estimated budget of the commission based

upon its share of population to the total population of the

municipalities to be consolidated or merged.

(8)  The commission may bring an action in the court of

common pleas of the county where a municipality is located

requesting that the court determine whether the municipality

has failed to reasonably modify an estimated budget or to

appropriate moneys in accordance with this subsection. The

court may provide appropriate relief, including, but not

limited to, ordering appropriation of funds in accordance

with the budget:

(i)  as submitted by the commission or as modified by

the municipalities; or

(ii)  as modified by the court.

(9)  In all cases, the costs and fees of any action

brought by the commission under this subsection shall be paid

by the municipality or municipalities named as defendants.

(10)  A municipality shall be entitled to a proportionate

reimbursement or offset of its share of the budget by any

publicly or privately contributed funds or services made

available to the commission.

(m)  Hearings and public forums.--A commission shall hold one

or more public hearings and sponsor public forums and generally

shall provide for the widest possible public information and

discussion respecting the purposes and progress of its work.

(n)  Report of findings and recommendations.--

(1)  A commission shall report its findings and

recommendations to the citizens of the proposed consolidated

or merged municipalities within nine months from the date of

its election, except that it shall be permitted an additional

nine months if it elects to prepare and submit a proposed new

home rule charter and an additional two months if it chooses

to provide for the election of its governing body by

districts. It shall publish or cause to be published

sufficient copies of its final report for public study and

information and shall deliver to the municipal clerk or

secretary of each municipality proposed to be consolidated or

merged sufficient copies of the report to supply it to any

interested citizen upon request. If the commission recommends

the adoption of a new home rule charter, the report shall

contain the complete plan as recommended.

(2)  There shall be attached to each copy of the report

of the commission, as a part thereof, a statement sworn to by

the members of the commission listing in detail the funds,

goods, materials and services, both public and private, used

by the commission in the performance of its work and the

preparation and filing of the report and identifying

specifically the supplier of each item thereon.

(3)  A copy of the final report of the commission with

its findings and recommendations shall be filed with the

Department of Community and Economic Development.

(4)  All the records, reports, tapes, minutes of meetings

and written discussions of the commission shall, upon its

discharge, be turned over to the municipal clerk or secretary

of each municipality proposed to be consolidated or merged

for permanent safekeeping and made available for public

inspection at any time during regular business hours.

(o)  Discharge of petition and amended reports.--

(1)  A commission shall be discharged upon the filing of

its report, but, if the commission's recommendations require

further procedure in the form of a referendum on the part of

the electors, the commission shall not be discharged until

the procedure has been concluded. At any time prior to 60

days before the date of the referendum, the commission may

modify or change any recommendation set forth in the final

report by publishing an amended report.

(2)  Whenever the commission issues an amended report

pursuant to paragraph (1), the amended report shall supersede

the final report, and the final report shall cease to have

any legal effect.

(3)  The procedure to be taken under the amended report

shall be governed by the provisions of this subpart

applicable to the final report of the commission submitted

pursuant to subsection (n).

(p)  Types of action recommended.--A commission shall report

and recommend in accordance with this section:

(1)  That a referendum shall be held that submits to the

electors the question of consolidating or merging the named

municipalities under a new home rule charter as prepared by

the commission.

(2)  That no referendum shall be held because

consolidation or merger of the named municipalities under a

new home rule charter is not recommended by the commission.

(3)  That the named municipalities consider such other

action as the commission recommends and deems advisable

consistent with its functions as set forth in this section.

(q)  Specificity of recommendations.--

(1)  If a commission recommends the adoption of a new

home rule charter, it shall specify the number of members to

be on the governing body, all offices to be filled by

election and whether elections shall be on an at-large,

district or combination district and at-large basis.

(2)  Notwithstanding any other provisions of this

subpart, if an approved new home rule charter adopted

pursuant to the provisions of this subpart specifies that the

election of the governing body should be on an at-large,

district or combination district and at-large basis and the

basis recommended differs from the existing basis and

therefore requires the elimination of districts or the

establishment of revised or new districts, then election of

municipal officials shall not take place on the new basis

until the municipal election following the next primary

election taking place more than 180 days after the election

at which the referendum on the question of a consolidation or

merger and new home rule charter has been approved by the

electorate. The consolidation or merger and new home rule

charter shall not go into effect until the first Monday in

January following the election of municipal officials on the

new basis as provided in section 738 (relating to

effectuation of consolidation or merger). New or revised

districts shall be established by the commission and included

in the proposed charter.

(r)  Form of question on consolidation or merger and new home

rule charter.--If a commission recommends consolidation or

merger and the adoption of a new home rule charter for the

municipalities to be consolidated or merged, the question to be

submitted to the voters for the adoption of consolidation or

merger and a new home rule charter shall be submitted in the

following form or such part as shall be applicable:

Shall the municipalities of (insert names of municipalities

consolidating or merging) be (insert consolidated or merged)

to become (insert name of new municipality, type and class of

municipality) under a new home rule charter contained in the

report, dated (insert date), of the commission?

(s)  Submission of question on consolidation or merger and

new home rule charter.--If a commission recommends that the

question of adopting consolidation or merger and a new home rule

charter authorized by this subpart should be submitted to the

electors, the municipal clerk or secretary of each municipality

proposed to be consolidated or merged shall, within five days

thereafter, certify a copy of the commission's report to the

county board of elections of the county in which the

municipality, or the greater portion of its territory, is

located, which shall cause the question of adoption or rejection

to be placed upon the ballot or voting machines at the time as

the commission specifies in its report. The commission may cause

the question to be submitted to the electors at the next

primary, municipal or general election occurring not less than

60 days following the filing of a copy of the commission's

report with the county board of elections, at the time the

commission's report directs. At the election, the question of

adopting consolidation or merger and a new home rule charter

recommended by the commission shall be submitted to the electors

by the county board of elections in the same manner as other

questions are submitted to the electors under the Pennsylvania

Election Code. The commission shall frame the question to be

placed upon the ballot as provided for in subsection (r) and, if

it deems appropriate, an interpretative statement to accompany

the question.

(t)  Amendment of new home rule charter.--The procedure for

amending the new home rule charter of the consolidated or merged

municipality created under this subpart shall be through the

initiative procedure and referendum or ordinance of the

governing body as provided for in Subchapter C of Chapter 29

(relating to amendment of existing charter or optional plan).

(u)  General powers and limitation of consolidated or merged

municipality under new home rule charter.--Nothing in this

section shall be construed as authorizing a consolidated or

merged municipality adopting a new home rule charter to exercise

powers not granted to a municipality adopting a home rule

charter pursuant to Subpart E of Part III.

[(v)  Definition.--As used in this section, the term

"municipality" shall not include a county of any class.]

§ 737.  Consolidation or merger agreement.

(a)  Form.--Upon favorable action by the electorate on

consolidation or merger, in cases where consolidation or merger

was initiated by petition of electors under section 735

(relating to initiative of electors seeking consolidation or

merger without new home rule charter), the governing bodies of

the municipalities to be consolidated or merged shall meet

within 60 days after the certification of the favorable vote and

shall within [a reasonable time] one year after certification

[make] enter into a consolidation or merger agreement as

follows:

(1)  If the governing body, or part of the governing

body, of the consolidated or merged municipality is to be

elected on a district or ward basis, the agreement shall set

forth the district or ward boundaries and the district or

ward designation, by number, and the number of members of the

municipal governing body to be elected from each district or

ward. The boundaries of the districts or wards shall be

established to achieve substantially equal representation.

(2)  The agreement shall set forth terms for:

(i)  The disposition of the existing assets of each

municipality.

(ii)  The liquidation of the existing indebtedness of

each municipality.

(iii)  The assumption, assignment and disposition of

the existing liabilities of each municipality, either

jointly, separately or in certain defined proportions, by

separate rates of taxation within each of the constituent

municipalities until consolidation or merger becomes

effective pursuant to section 738 (relating to

effectuation of consolidation or merger).

(3)  The agreement shall set forth the governmental

organization of the consolidated or merged municipality

insofar as it concerns elected officers and shall contain a

transitional plan and schedule applicable to elected

officers.

(4)  The agreement shall provide for common

administration and uniform enforcement of ordinances within

the consolidated or merged municipality.

(5)  The agreement shall also provide, consistent with

existing law, for the implementation of a uniform tax system

throughout the consolidated or merged municipality which

shall provide the revenue necessary to fund required

municipal services.

(6)  The agreement shall mandate full implementation of

the consolidation or merger plan within four years following

the date of certification.

(b)  Filing.--[A] Within 30 days following certification of

electorate approval by the county boards of election, a copy of

the consolidation or merger agreement under this section or the

joint agreement under section 734 (relating to joint agreement

of governing bodies) [after approval by the electorate] shall be

filed with the Department of Community and Economic Development,

the Department of Transportation, the Governor's Office of

Policy Development or its successor, the Department of

Education, the State Tax Equalization Board and the Legislative

Data Processing Committee. A copy shall also be filed with the

court of common pleas and the board of county commissioners of

the county or counties in which municipalities affected are

located.

Section 2.  Title 53 is amended by adding a section to read:

§ 742.  Financial assistance.

(a)  Commonwealth Municipalities Consolidation and Merger

Program.--There is established within the department a financial

assistance program to be known as the Commonwealth

Municipalities Consolidation and Merger Program. The purpose of

the program will be to provide, under guidelines to be issued by

the department and from moneys appropriated, from time to time,

by the General Assembly, loans and grants to municipalities to

be used for the following:

(1)  to help defray the costs of study and implementation

of consolidations and mergers;

(2)  to help defray the costs associated with home rule

optional form of government commissions;

(3)  to help defray the costs of transitioning to the

merged or consolidated municipalities; and

(4)  to provide financial support for economic and

community development assistance in the merged or

consolidated municipalities.

(b)  Priority under existing programs.--In addition to any

funding provided under subsection (a), a consolidated or merged

municipality shall receive priority for economic and community

development assistance under existing Commonwealth programs.

(1)  Funds awarded to a consolidated or merged

municipality shall only be released upon concurrence by the

department that the program to be funded is consistent with

the implementation of the merger or consolidation initiative.

(2)  Upon receiving the certified copy of the election

results, ballot question and transition plan under section

737(b) (relating to consolidation of merger agreement), the

department shall notify all Commonwealth agencies of the

consolidated or merged municipality's eligibility for

priority status under this section.

(3)  Nothing in this section shall be construed to alter

the priority of economic and community development assistance

approved and encumbered by any Commonwealth agency on the

effective date of this section.

(c)  Definition.--As used in this section, "department" shall

mean the Department of Community and Economic Development of the

Commonwealth.

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