Pennsylvania Act 1994-90 — MUNICIPALITIES GENERALLY (53 PA.C.S.) - AMEND

Act text

MUNICIPALITIES GENERALLY (53 PA.C.S.) - AMEND
                  Act of Oct. 13, 1994, P.L. 596, No. 90              Cl. 53
                             Session of 1994
                               No. 1994-90

     HB 162

                                  AN ACT

     Amending Title 53 (Municipalities Generally) of the Pennsylvania
        Consolidated Statutes, providing procedures for the
        consolidation or merger of municipalities; establishing
        procedures for allocation of assets and liabilities; and
        making repeals.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Title 53 of the Pennsylvania Consolidated
     Statutes is amended by adding a chapter to read:
                                CHAPTER 7
                   ALTERATION OF TERRITORY OR CORPORATE
                          ENTITY AND DISSOLUTION
                               SUBCHAPTER C
                         CONSOLIDATION AND MERGER
     Sec.
     731.  Short title of subchapter.
     732.  Definitions.
     733.  Procedure for consolidation or merger.
     734.  Joint agreement of governing bodies.
     735.  Initiative of electors.
     736.  Conduct of referenda.
     737.  Consolidation or merger agreement.
     738.  Effectuation of consolidation or merger.
     739.  Effect of transition on employees of consolidated or
            merged municipality.
     740.  Procedures.
     741.  Court review of transitional plan.
      § 731.  Short title of subchapter.
        This subchapter shall be known and may be cited as the
     Municipal Consolidation or Merger Act.
      § 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:
        "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.
        "Governing body."  The council in cities, boroughs and
     incorporated towns; the board of commissioners in counties 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 persons 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, 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.
        "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.
        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.
            (2)  Initiative of electors.
      § 734.  Joint agreement of governing bodies.
        (a)  General rule.--The governing body of each municipality
     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, 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 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
        the Home Rule Charter and Optional Plans Law 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 the Home Rule Charter
        and Optional Plans Law.
            (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.
      § 735.  Initiative of electors.
        (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 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, 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
        by any of the municipalities to be consolidated or merged,
        but which has been selected from among the options provided
        for in the Home Rule Charter and Optional Plans Law 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 the Home Rule Charter and Optional Plans Law.
            (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.
      § 736.  Conduct of referenda.
        (a)  Duty to place on ballot.--Following initiation of
     proceedings for consolidation or merger by the procedures set
     forth either in section 734 (relating to joint agreement of
     governing bodies) or 735 (relating to initiative of electors),
     the question of consolidation or merger as set forth in the
     joint agreement or initiative petition shall be placed before
     the electors of each of the municipalities proposed to be
     consolidated or merged. A referendum shall be held at the first
     primary, municipal or general election occurring at least 13
     weeks after either:
            (1)  the date of the general agreement entered into under
        the provisions of section 734; or
            (2)  the date of filing of the petition filed under the
        provisions of section 735.
        (b)  Approval.--Consolidation or merger shall not be
     effective unless the referendum question is approved by a
     majority of the electors voting in each of the municipalities in
     which the referendum is held. If in any one of the
     municipalities in which the referendum is held a majority vote
     in favor of consolidation or merger does not result, the
     referendum shall fail and consolidation or merger shall not take
     place. The same question described in the consolidation or
     merger proposal shall not be voted on again for a period of five
     years.
        (c)  Subsequent referenda.--The five-year moratorium on
     voting the same consolidation or merger question as provided in
     subsection (b) shall be deemed not to apply to any subsequent
     referendum question involving a consolidation or merger of any
     combination of two or more contiguous municipalities if the
     referendum question differs or is dissimilar in any way from a
     previous referendum question which was not approved as provided
     for in subsection (b).
      § 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), 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 after certification make 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.
        (b)  Filing.--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 Affairs, 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.
      § 738.  Effectuation of consolidation or merger.
        Municipalities consolidated or merged shall continue to be
     governed as before consolidation or merger until the date
     stipulated in the transitional plan and schedule provided for in
     sections 734 (relating to joint agreement of governing bodies)
     and 737 (relating to consolidation or merger agreement). New
     officials required to be elected shall take office on the first
     Monday of January following the municipal election designated in
     the transitional plan and schedule. At that municipal election,
     the necessary officers of the consolidated or merged
     municipality shall be elected in accordance with the terms of
     the general law affecting municipalities of the kind or class of
     the consolidated or merged municipality or, in case of a
     consolidated or merged municipality operating under a home rule
     charter or optional plan of government, in accordance with the
     charter or optional plan or with general law affecting home rule
     or optional plan municipalities, as applicable. The officers
     elected at that municipal election shall be elected for terms of
     office under the plan and schedule set forth in the
     consolidation or merger agreement authorized by section 734 or
     737, as the case may be. They shall take office as officers of
     the consolidated or merged municipality on the first Monday of
     January following the municipal election at which they were
     elected, and upon assumption of office, the consolidated or
     merged municipality shall begin to function and the former
     municipalities consolidated or merged into it shall be
     abolished.
      § 739.  Effect of transition on employees of consolidated or
                merged municipality.
        (a)  Transition.--As of the date when a consolidated or
     merged municipality shall begin to function, except for those
     officers and employees which are protected by any tenure of
     office, civil service provisions or collective bargaining
     agreement, all appointive offices and positions then existing in
     all former municipalities involved in the consolidation or
     merger shall be subject to the terms of the consolidation or
     merger agreement. Provisions shall be made for instances in
     which there is duplication of positions, including, but not
     limited to, chief of police or manager, and for other matters
     such as varying length of employee contracts, different civil
     service regulations in the constituent municipalities and
     differing ranks and position classifications for similar
     positions.
        (b)  Exception.--Nothing in this section shall be deemed to
     apply to a consolidated or merged municipality if one or more of
     the consolidating or merging municipalities has been declared
     distressed under the act of July 10, 1987 (P.L.246, No.47),
     known as the Municipalities Financial Recovery Act. In such
     case, the provisions of section 408 of that act shall control.
      § 740.  Procedures.
        (a)  Ordinance book.--After consolidation becomes effective,
     a new ordinance book shall be used by the municipality, and the
     first document to be recorded in it shall be the consolidation
     agreement.
        (b)  Ordinance codification.--No later than two years after
     consolidation goes into effect, codification of all the
     ordinances of the municipality shall be completed. The
     codification shall include tabulation or indexing of those
     ordinances of the component municipalities that are of permanent
     effect in the consolidated municipality.
        (c)  Vesting of rights, privileges, property and
     obligations.--All rights, privileges and franchises of each
     component municipality and all property belonging to each
     component municipality shall be vested in the consolidated or
     merged municipality. The title to real estate vested in any of
     those municipalities shall not revert or be in any way impaired
     by reason of the consolidation or merger. All liens and rights
     of creditors shall be preserved. Agreements and contracts shall
     remain in force. Debts, liabilities and duties of each of the
     municipalities shall be attached to the consolidated or merged
     municipality and may be enforced against it.
      § 741.  Court review of transitional plan.
        After the approval of a referendum pursuant to section 736
     (relating to conduct of referenda), any person who is a resident
     of a municipality to be consolidated or merged may petition the
     court of common pleas to order the appropriate municipal
     governing bodies to:
            (1)  implement the terms of a transitional plan and
        schedule adopted pursuant to section 734 (relating to joint
        agreement of governing bodies) or 737 (relating to
        consolidation or merger agreement); or
            (2)  adopt or amend a transitional plan or schedule if
        the court finds that the failure to do so will result in the
        unreasonable perpetuation of the separate forms and
        classifications of government existing in the affected
        municipalities prior to the approval of the referendum.
        Section 2.  (a)  The following acts and parts of acts are
     repealed:
        Act of February 7, 1906 (Sp.Sess., P.L.7, No.1), entitled "An
     act to enable cities that are now, or may hereafter be,
     contiguous or in close proximity, to be united, with any
     intervening land other than boroughs, in one municipality;
     providing for the consequences of such consolidation, the
     temporary government of the consolidated city, payment of the
     indebtedness of each of the united territories, and the
     enforcement of debts and claims due to or from each."
        Act of May 6, 1915 (P.L.260, No.152), entitled "A supplement
     to an act approved the seventh day of February, one thousand
     nine hundred and six, entitled 'An act to enable cities that are
     now or may hereafter be contiguous or in close proximity, to be
     united with any intervening land, other than boroughs, in one
     municipality; providing for the consequences of such
     consolidation, the temporary government of the consolidated
     city, payment of the indebtedness of each of the united
     territories, and the enforcement of debts and claims due to or
     from each,' by providing that the indebtedness of each city and
     intervening land, heretofore or hereafter united or consolidated
     under the provisions of said act, shall be paid by the
     consolidated city, and for the levying of a uniform tax, upon
     all the territory included within the consolidated city, for the
     payment of the same."
        Sections 210, 211, 212, 213, 214, 216, 217, 218 and 219 of
     the act of June 24, 1931 (P.L.1206, No.331), known as The First
     Class Township Code.
        Sections 205, 206, 207, 208, 209, 210, 211, 211.1, 212, 213,
     214 and 215 of the act of May 1, 1933 (P.L.103, No.69), known as
     The Second Class Township Code.
        Sections 221, 222, 223, 224, 225, 226, 227 and 228 of the act
     of February 1, 1966 (1965 P.L.1656, No.581), known as The
     Borough Code.
        As much of section 103 as relates to "consolidated or merged
     municipality," "consolidation or merger," "contiguous
     territory," "election officials," "initiative" and "referendum";
     as much of section 241(7) as reads as follows: "pursuant to
     Chapter 4"; all of sections 401, 402, 403, 404, 405, 406, 407
     and 409 of the act of July 10, 1987 (P.L.246, No.47), known as
     the Municipalities Financial Recovery Act.
        (b)  Article II of the act of June 23, 1931 (P.L.932,
     No.317), known as The Third Class City Code, is repealed insofar
     as it is inconsistent with this act.
        (c)  All other acts and parts of acts are repealed insofar as
     they are inconsistent with this act.
        Section 3.  This act shall take effect in 90 days.

     APPROVED--The 13th day of October, A. D. 1994.

     ROBERT P. CASEY