PRINTER'S NO. 2468
No. 2021 Session of 1993
INTRODUCED BY DALEY, TIGUE, SCRIMENTI, STABACK AND VEON,
SEPTEMBER 29, 1993
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, SEPTEMBER 29, 1993
AN ACT
1 Amending the act of July 10, 1987 (P.L.246, No.47), entitled "An
2 act empowering the Department of Community Affairs to declare
3 certain municipalities as financially distressed; providing
4 for the restructuring of debt of financially distressed
5 municipalities; limiting the ability of financially
6 distressed municipalities to obtain government funding;
7 authorizing municipalities to participate in Federal debt
8 adjustment actions and bankruptcy actions under certain
9 circumstances; and providing for consolidation or merger of
10 contiguous municipalities to relieve financial distress,"
11 further providing for joint agreements for combination of
12 municipalities; and providing for taxing of nonresidents.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 403 of the act of July 10, 1987 (P.L.246,
16 No.47), known as the Municipalities Financial Recovery Act, is
17 amended to read:
18 Section 403. Joint agreement of governing bodies.
19 (a) General rule.--The governing body of each municipality
20 to be consolidated or merged shall enter into a joint agreement
21 under the official seal of each municipality to consolidate or
22 merge into one municipality.
23 (b) Elements.--The joint agreement shall set forth:
1 (1) The name of each municipality that is a party to the
2 agreement.
3 (2) The name and the territorial boundaries of the
4 consolidated or merged municipality.
5 (3) The type and class of the consolidated or merged
6 municipality.
7 (4) Whether the consolidated or merged municipality
8 shall be governed solely by the code and other general laws
9 applicable to the kind and class of the consolidated or
10 merged municipality or whether it shall be governed by a home
11 rule charter or an optional plan of government previously
12 adopted by one of the consolidating or merging
13 municipalities.
14 (5) The number of wards, if any, into which the
15 consolidated or merged municipality will be divided for the
16 purpose of electing all or some members of its governing
17 body.
18 (6) Terms for:
19 (i) The disposition of existing assets of each
20 municipality.
21 (ii) The liquidation of existing indebtedness of
22 each municipality.
23 (iii) The assumption, assignment or disposition of
24 existing liabilities of each municipality, either
25 jointly, separately or in certain defined proportions, by
26 separate rates of taxation within each of the constituent
27 municipalities until consolidation or merger becomes
28 effective pursuant to section 407.
29 (iv) The implementation of a legally consistent
30 uniform tax system throughout the consolidated or merged
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1 municipality which provides the revenue necessary to fund
2 required municipal services but which imposes no tax on
3 nonresidents of the consolidated or merged municipality.
4 (7) The governmental organization of the consolidated or
5 merged municipality insofar as it concerns elected officers.
6 (8) A transitional plan and schedule applicable to
7 elected officers. The transitional plan shall provide for the
8 abolition of the elected offices of each component
9 municipality and the termination of the terms of office of
10 the elected officials of each municipality and for the
11 election of the first officers of the consolidated or merged
12 municipality so that election and tenure shall conform to
13 those in other municipalities of the same kind and class in
14 the Commonwealth with properly staggered terms where required
15 or desired.
16 (9) The common administration and enforcement of
17 ordinances enforced uniformly within the consolidated or
18 merged municipality.
19 Section 2. Municipalities which are consolidated or merged
20 under the act on the effective date of this act must, within 180
21 days of the effective date of this act, make appropriate
22 amendments to taxing ordinances to effectuate the amendment of
23 section 403(b)(6)(iv) of the act. Noncompliance with this
24 section shall void taxing ordinances of such consolidated or
25 merged municipalities.
26 Section 3. This act shall take effect in 60 days.
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