An Act amending Title 53 (Municipalities Generally) of the Pennsylvania Consolidated Statutes, in alteration of territory or corporate entity and dissolution, further providing for definitions, for procedure for consolidation or merger, for joint agreement of governing bodies, for initiative of electors seeking consolidation or merger with new home rule charter and for conduct of referenda, repealing provisions relating to consolidation or merger agreement, providing for advisory committee, consolidation or merger agreement and mediation, further providing for effectuation of consolidation or merger, for procedures and for court review of transitional plan and providing for extension of deadlines and for grant qualification.

PRIOR PRINTER'S NO. 3140 PRINTER'S NO. 3316
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2361
Session of
2026
INTRODUCED BY FREEMAN, SAPPEY, SMITH-WADE-EL, JAMES AND
B. MILLER, APRIL 6, 2026
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, APRIL 29, 2026
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in alteration of territory or
corporate entity and dissolution, further providing for
definitions, for procedure for consolidation or merger, for
joint agreement of governing bodies, for initiative of
electors seeking consolidation or merger with new home rule
charter and for conduct of referenda, repealing provisions
relating to consolidation or merger agreement, providing for
advisory committee, consolidation or merger agreement and
mediation, further providing for effectuation of
consolidation or merger, for procedures and for court review
of transitional plan and providing for extension of deadlines
and for grant qualification.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 732 of Title 53 of the Pennsylvania
Consolidated Statutes is amended by adding definitions 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:
* * *
"Consolidation or merger agreement." An agreement entered
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into under section 737.1 (relating to advisory committee,
consolidation or merger agreement and mediation) by the
governing bodies of municipalities to be consolidated or merged
if the consolidation or merger is initiated by petition of
electors under section 735 (relating to initiative of electors
seeking consolidation or merger without new home rule charter).
* * *
"Joint agreement." An agreement entered into under section
734 (relating to joint agreement of governing bodies) by the
governing bodies of municipalities proposed to be consolidated
or merged if the consolidation or merger is initiated by the
governing bodies.
* * *
Section 2. Section 733(a)(3) and (b) of Title 53 are amended
to read:
§ 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:
* * *
[(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
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consolidation or merger is commenced by a combination of joint
agreements and initiatives, the initiative petition and
municipal joint agreement shall be materially consistent.]
* * *
Section 3. Section 734(a), (b)(10) and (c) of Title 53 are
amended and the section is amended by adding subsections to
read:
§ 734. Joint agreement of governing bodies.
(a) [General rule] Form.--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] by ordinance to consolidate or merge into one
municipality.
(b) Elements.--The joint agreement shall include, but not be
limited to:
* * *
(10) The common administration and enforcement of
ordinances enforced uniformly within the consolidated or
merged municipality and the interim processing of land use
applications and approvals.
(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,
including not more than one of whom may be a member of the
governing body of each municipality,] 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
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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.] No later than 60 days
after certification of a favorable vote on consolidation or
merger, the governing bodies shall establish and appoint members
of a transitional planning committee if one has not already been
established.
(d) Composition.--The transitional planning committee,
regardless of when established, shall consist of the following
members:
(1) One member of the governing body of each
municipality, appointed by the governing body.
(2) One resident of each municipality, appointed by the
governing body, who is not a member of the governing body, an
appointed officer of the municipality or an employee of the
municipality.
(3) One employee of each municipality, appointed by the
governing body. If a municipality has no employee who is not
also a member of the governing body, the governing body shall
appoint an additional resident under paragraph (2) in lieu of
an employee under this paragraph.
(4) One additional resident of an affected municipality,
appointed by mutual agreement of the members appointed under
paragraph (1). If the members appointed under paragraph (1)
cannot reach mutual agreement, the members shall draw lots to
determine which resident shall be appointed. COURT OF COMMON
PLEAS SHALL APPOINT THE ADDITIONAL MEMBER WHO MUST BE A
RESIDENT OF AN AFFECTED MUNICIPALITY.
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(5) One nonvoting representative appointed by the
Secretary of Community and Economic Development.
(6) A chairperson elected by majority vote of the
transitional planning committee from among the membership of
the transitional planning committee.
(e) Continuation.--The transitional planning committee,
regardless of when it was established, shall continue until 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.
Section 4. Section 735.1(k)(3)(iii)(D) of Title 53 is
amended to read:
§ 735.1. Initiative of electors seeking consolidation or merger
with new home rule charter.
* * *
(k) Function and duty of commission.--
* * *
(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:
* * *
(iii) Prepare and suggest for adoption by the
governing body of the newly consolidated or merged
municipality recommendations concerning:
* * *
(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 and the interim processing of
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land use applications and approvals, provided that
codification of all ordinances shall be completed as
specified in section 740 (relating to procedures).
* * *
Section 5. Section 736 of Title 53 is amended by adding a
subsection to read:
§ 736. Conduct of referenda.
* * *
(d) Filing.--The governing bodies of the municipalities
approved for consolidation or merger shall file copies of the
following documents as follows:
(1) Within 30 days after certification by the county
board of elections of approval by the electorate, the
governing bodies shall file a copy of the joint agreement
under section 734 or the final report of the home rule study
commission under section 735.1 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 Department
of State, the State Tax Equalization Board, the United States
Postal Service, the Legislative Data Processing Center, the
court of common pleas, the board of county commissioners and
the county board of elections of the county in which an
affected municipality is located or, if an affected
municipality is located in more than one county, of each
affected county.
(2) Within 30 days after adoption by ordinance of the
consolidation or merger agreement under section 737.1
(relating to advisory committee, consolidation or merger
agreement and mediation), the governing bodies shall file a
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copy of the agreement with the entities specified in
paragraph (1).
Section 6. Section 737 of Title 53 is repealed:
[§ 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 as
deemed necessary after the certification of the favorable vote
and shall within one year after certification 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
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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.--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) 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
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counties in which municipalities affected are located.]
Section 7. Title 53 is amended by adding a section to read:
§ 737.1. Advisory committee, consolidation or merger agreement
and mediation.
(a) Advisory committee.--Upon favorable action by the
electorate on consolidation or merger, if the 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 certification of the favorable vote to
establish an advisory committee. The advisory committee shall
consist of the following members:
(1) One member of the governing body of each
municipality, appointed by the governing body.
(2) One resident of each municipality who is not a
member of the governing body, an appointed officer of the
municipality or an employee of the municipality, appointed by
the governing body.
(3) One employee of each municipality, appointed by the
governing body. If a municipality has no employee who is not
also a member of the governing body, the governing body shall
appoint an additional resident under paragraph (2) in lieu of
an employee under this paragraph.
(4) One additional resident of an affected municipality,
appointed by mutual agreement of the members appointed under
paragraph (1). If the members appointed under paragraph (1)
cannot reach mutual agreement, the members shall draw lots to
determine which resident shall be appointed. COURT OF COMMON
PLEAS SHALL APPOINT THE ADDITIONAL MEMBER WHO MUST BE A
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RESIDENT OF AN AFFECTED MUNICIPALITY.
(5) One nonvoting representative appointed by the
Secretary of Community and Economic Development.
(6) A chairperson elected by majority vote of the
advisory committee from among the membership of the advisory
committee.
(b) Consolidation or merger agreement.--Within five months
after the establishment of the advisory committee, the advisory
committee shall present to the governing bodies of the
municipalities a consolidation or merger agreement. The
agreement shall include all of the following:
(1) Each matter required to be specified in the petition
under section 735(c)(2), (3), (4), (5), (6) and (7).
(2) If the governing body, or a part of the governing
body, of the consolidated or merged municipality is to be
elected on a district or ward basis, the district or ward
boundaries, 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.
(3) Terms for all of the following:
(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 constituent
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municipality until consolidation or merger becomes
effective under section 738 (relating to effectuation of
consolidation or merger).
(4) The governmental organization of the consolidated or
merged municipality insofar as it concerns elected officers
and a transitional plan and schedule applicable to elected
officers.
(5) The common administration and uniform enforcement of
ordinances within the consolidated or merged municipality and
the interim processing of land use applications and
approvals.
(6) The implementation, consistent with existing State
law, of a uniform tax system throughout the consolidated or
merged municipality that provides the revenue necessary to
fund required municipal services.
(7) Full implementation of the consolidation or merger
plan within four years after certification of the favorable
vote.
(c) Failure to reach agreement.--If the advisory committee
is unable to approve a consolidation or merger agreement by
majority vote within the time period under subsection (b), the
advisory committee shall issue a report within that time period
specifying both of the following:
(1) The matters under subsection (b) approved by a
majority of the advisory committee.
(2) The matters for which agreement was not reached,
including competing approaches to those matters.
(d) Acceptance or rejection by ordinance.--Within one year
after certification of favorable action by the electorate, the
governing body of each municipality to be consolidated or merged
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shall, by ordinance, accept or reject the consolidation or
merger agreement presented by the advisory committee. Adoption
of an ordinance under this subsection shall be subject to an
action in mandamus. If a governing body rejects the agreement in
whole or in part, the ordinance shall specify the provisions of
the agreement that the governing body finds objectionable and
describe how those provisions would fail to provide for an
orderly transition to the new government or would be
inconsistent with this title or other State law.
(e) Mediation.--If the advisory committee issues a report
under subsection (c) or if a governing body rejects the
consolidation or merger agreement in whole or in part under
subsection (d), the chairperson of the advisory committee shall
petition the court of common pleas to provide for mediation of
the agreement. Upon petition, the court shall appoint three
impartial individuals who reside within the county or counties
in which the municipalities are located, but not within the
municipalities, as mediators. The mediators shall coordinate
with the governing bodies and the advisory committee and shall
limit review and mediation to only those matters in dispute
identified in the report under subsection (c) or in an ordinance
under subsection (d). After notice to interested parties and
publication of the petition as directed by the court, the
mediators shall hold a hearing and review the proposed
consolidation or merger agreement. No later than 90 days after
the petition is filed, a majority of the mediators shall submit
to the court a report and recommendations for a consolidation or
merger agreement. Within 30 days after submission of the report,
the court shall confirm the report unless the court finds, by a
preponderance of the evidence, that a provision recommended in
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the report would fail to provide for an orderly transition to
the new government or would be inconsistent with this title or
other law. The court may direct publication of the availability
of the report and require notice to interested parties.
(f) Exceptions.--Within 30 days after the filing of the
report under subsection (e), an interested person or political
subdivision may file exceptions to the report. The court shall
schedule a hearing on the exceptions and provide notice of the
hearing. After the hearing, the court may sustain or dismiss the
exceptions and confirm the report or refer the report back to
the same or new mediators for another report.
(g) Final adoption.--Within 60 days after final adjudication
of a mediation under subsection (e), the governing body of each
municipality to be consolidated or merged shall adopt the
consolidation or merger agreement by ordinance. Notwithstanding
any other law, adoption of an ordinance under this subsection
shall be subject to an action in mandamus.
Section 8. Sections 738, 740(a) and 741(a) of Title 53 are
amended to read:
§ 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)] 737.1
(relating to advisory committee, consolidation or merger
agreement and mediation), or the transitional plan provided for
by a study commission pursuant to section 735.1 (relating to
initiative of electors seeking consolidation or merger with new
home rule charter). Subject to the provisions of section
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735.1(q), 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] 737.1, or the transitional plan provided for by a
commission pursuant to section 735.1, 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.
§ 740. Procedures.
(a) Ordinance book.--After consolidation becomes effective,
a new ordinance book shall be used by the municipality, and,
except for a municipality consolidated or merged under section
735.1 (relating to initiative of electors seeking consolidation
or merger with new home rule charter), the first document to be
recorded in it shall be the [consolidation agreement.] joint
agreement under section 734 (relating to joint agreement of
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governing bodies) or the consolidation or merger agreement under
section 737.1 (relating to advisory committee, consolidation or
merger agreement and mediation), as applicable .
* * *
§ 741. Court review of transitional plan.
(a) General rule.--Except as provided in subsection (b),
after the approval of a referendum pursuant to section 736
(relating to conduct of referenda) and the adoption of a
transitional plan and schedule under section 734 (relating to
joint agreement of governing bodies) or 737.1 (relating to
advisory committee, consolidation or merger agreement and
mediation), 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.]
implement the terms of the transitional plan and schedule.
* * *
Section 9. Title 53 is amended by adding sections to read:
§ 742. Extension of deadlines.
Upon petition of the chairperson elected under section 734(d)
(6) (relating to joint agreement of governing bodies) or
737.1(a)(6) (relating to advisory committee, consolidation or
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merger agreement and mediation), the court of common pleas may
extend a time period under this subchapter. The court may grant
an extension only for the minimum period necessary to reasonably
ensure completion of the consolidation or merger.
§ 743. Grant qualification.
(a) Eligibility.--To the extent not prohibited by Federal
law, a consolidated or merged municipality shall retain
eligibility for a grant pending, available or authorized for a
municipality consolidated or merged under this subchapter to the
extent the municipality would have been eligible for the grant
notwithstanding the consolidation or merger. Eligibility under
this subsection shall continue for not more than seven years
after certification of the favorable vote on consolidation or
merger. Eligibility under this subsection shall also apply to a
department, agency or authority of a municipality consolidated
or merged under this subchapter. A consolidated or merged
municipality and its departments, agencies and authorities may
not receive more than one award under the same grant program for
the same purpose solely by reason of the consolidation or
merger.
(b) Grants previously awarded.--To the extent not prohibited
by Federal law:
(1) A municipality consolidated or merged under this
subchapter, and a department, agency or authority of the
municipality, shall not be disqualified from receiving the
proceeds of a grant awarded before the consolidation or
merger solely because of the consolidation or merger.
(2) A grant awarded to a volunteer fire department or
other person doing business within, for or on behalf of a
municipality consolidated or merged under this subchapter
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shall not be interrupted, abbreviated or rescinded solely
because of the consolidation or merger.
Section 10. This act shall apply to a consolidation or
merger commenced under 53 Pa.C.S. § 733(a) on or after the
effective date of this section.
Section 11. This act shall take effect in 60 days.
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