HB 2361 — 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.

PRINTER'S NO.     3140

                     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

     REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 7, 2026


                                    AN ACT
 1   Amending Title 53 (Municipalities Generally) of the Pennsylvania
 2      Consolidated Statutes, in alteration of territory or
 3      corporate entity and dissolution, further providing for
 4      definitions, for procedure for consolidation or merger, for
 5      joint agreement of governing bodies, for initiative of
 6      electors seeking consolidation or merger with new home rule
 7      charter and for conduct of referenda, repealing provisions
 8      relating to consolidation or merger agreement, providing for
 9      advisory committee, consolidation or merger agreement and
10      mediation, further providing for effectuation of
11      consolidation or merger, for procedures and for court review
12      of transitional plan and providing for extension of deadlines
13      and for grant qualification.
14      The General Assembly of the Commonwealth of Pennsylvania
15   hereby enacts as follows:
16      Section 1.    Section 732 of Title 53 of the Pennsylvania
17   Consolidated Statutes is amended by adding definitions to read:
18   § 732.   Definitions.
19      The following words and phrases when used in this subchapter
20   shall have the meanings given to them in this section unless the
21   context clearly indicates otherwise:
22      * * *
23      "Consolidation or merger agreement."    An agreement entered
 1   into under section 737.1 (relating to advisory committee,
 2   consolidation or merger agreement and mediation) by the
 3   governing bodies of municipalities to be consolidated or merged
 4   if the consolidation or merger is initiated by petition of
 5   electors under section 735 (relating to initiative of electors
 6   seeking consolidation or merger without new home rule charter).
 7      * * *
 8      "Joint agreement."     An agreement entered into under section
 9   734 (relating to joint agreement of governing bodies) by the
10   governing bodies of municipalities proposed to be consolidated
11   or merged if the consolidation or merger is initiated by the
12   governing bodies.
13      * * *
14      Section 2.     Section 733(a)(3) and (b) of Title 53 are amended
15   to read:
16   § 733.   Procedure for consolidation or merger.
17      (a)     General rule.--Two or more municipalities may be
18   consolidated or merged into a single municipality, whether
19   within the same or different counties, if each of the
20   municipalities is contiguous to at least one of the other
21   consolidating or merging municipalities and if together the
22   municipalities would form a consolidated or merged municipality.
23   Consolidation or merger may be commenced by one of the
24   following:
25            * * *
26            [(3)    One or more of the municipalities using a joint
27      agreement followed by approval by the electorate of the joint
28      agreement and one or more of the municipalities using
29      initiative of electors.
30      (b)     Combination of joint agreement and initiative.--When

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 1   consolidation or merger is commenced by a combination of joint
 2   agreements and initiatives, the initiative petition and
 3   municipal joint agreement shall be materially consistent.]
 4      * * *
 5      Section 3.     Section 734(a), (b)(10) and (c) of Title 53 are
 6   amended and the section is amended by adding subsections to
 7   read:
 8   § 734.   Joint agreement of governing bodies.
 9      (a)   [General rule] Form.--The governing body of each
10   municipality proposed to be consolidated or merged shall enter
11   into a joint agreement [under the official seal of each
12   municipality] by ordinance to consolidate or merge into one
13   municipality.
14      (b)   Elements.--The joint agreement shall include, but not be
15   limited to:
16            * * *
17            (10)    The common administration and enforcement of
18      ordinances enforced uniformly within the consolidated or
19      merged municipality and the interim processing of land use
20      applications and approvals.
21      (c)   Transitional planning committee.--In preparing and
22   adopting a joint agreement, the governing bodies of the
23   municipalities may appoint a transitional planning committee
24   [composed of residents of the respective municipalities,
25   including not more than one of whom may be a member of the
26   governing body of each municipality,] to study and make
27   recommendations to the governing bodies regarding transitional
28   plans and schedules, common administration and uniform
29   enforcement of ordinances, consolidation and merger of
30   departments and staff and other matters of concern to the

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 1   governing bodies. [The transitional planning committee, if
 2   created, shall continue for a maximum of six months after the
 3   effective date of the consolidation or merger to advise the new
 4   governing body of the consolidated or merged municipality on
 5   merging budgets, staffing and operations.] No later than 60 days
 6   after certification of a favorable vote on consolidation or
 7   merger, the governing bodies shall establish and appoint members
 8   of a transitional planning committee if one has not already been
 9   established.
10      (d)     Composition.--The transitional planning committee,
11   regardless of when established, shall consist of the following
12   members:
13            (1)   One member of the governing body of each
14      municipality, appointed by the governing body.
15            (2)   One resident of each municipality, appointed by the
16      governing body, who is not a member of the governing body, an
17      appointed officer of the municipality or an employee of the
18      municipality.
19            (3)   One employee of each municipality, appointed by the
20      governing body. If a municipality has no employee who is not
21      also a member of the governing body, the governing body shall
22      appoint an additional resident under paragraph (2) in lieu of
23      an employee under this paragraph.
24            (4)   One additional resident of an affected municipality,
25      appointed by mutual agreement of the members appointed under
26      paragraph (1). If the members appointed under paragraph (1)
27      cannot reach mutual agreement, the members shall draw lots to
28      determine which resident shall be appointed.
29            (5)   One nonvoting representative appointed by the
30      Secretary of Community and Economic Development.

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 1            (6)   A chairperson elected by majority vote of the
 2      transitional planning committee from among the membership of
 3      the transitional planning committee.
 4      (e)     Continuation.--The transitional planning committee,
 5   regardless of when it was established, shall continue until six
 6   months after the effective date of the consolidation or merger
 7   to advise the new governing body of the consolidated or merged
 8   municipality on merging budgets, staffing and operations.
 9      Section 4.     Section 735.1(k)(3)(iii)(D) of Title 53 is
10   amended to read:
11   § 735.1.    Initiative of electors seeking consolidation or merger
12                  with new home rule charter.
13      * * *
14      (k)     Function and duty of commission.--
15            * * *
16            (3)   If a new home rule charter is found to be the most
17      advisable form of government for the proposed consolidated or
18      merged municipality, the commission shall:
19                  * * *
20                  (iii)   Prepare and suggest for adoption by the
21            governing body of the newly consolidated or merged
22            municipality recommendations concerning:
23                      * * *
24                      (D)   Ordinances to be uniformly enforced
25                  throughout the consolidated or merged municipality,
26                  which may be adopted by the new governing body of the
27                  consolidated or merged municipality at its
28                  organizational meeting and the interim processing of
29                  land use applications and approvals, provided that
30                  codification of all ordinances shall be completed as

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 1                  specified in section 740 (relating to procedures).
 2      * * *
 3      Section 5.     Section 736 of Title 53 is amended by adding a
 4   subsection to read:
 5   § 736.   Conduct of referenda.
 6      * * *
 7      (d)   Filing.--The governing bodies of the municipalities
 8   approved for consolidation or merger shall file copies of the
 9   following documents as follows:
10            (1)   Within 30 days after certification by the county
11      board of elections of approval by the electorate, the
12      governing bodies shall file a copy of the joint agreement
13      under section 734 or the final report of the home rule study
14      commission under section 735.1 with the Department of
15      Community and Economic Development, the Department of
16      Transportation, the Governor's Office of Policy Development
17      or its successor, the Department of Education, the Department
18      of State, the State Tax Equalization Board, the United States
19      Postal Service, the Legislative Data Processing Center, the
20      court of common pleas, the board of county commissioners and
21      the county board of elections of the county in which an
22      affected municipality is located or, if an affected
23      municipality is located in more than one county, of each
24      affected county.
25            (2)   Within 30 days after adoption by ordinance of the
26      consolidation or merger agreement under section 737.1
27      (relating to advisory committee, consolidation or merger
28      agreement and mediation), the governing bodies shall file a
29      copy of the agreement with the entities specified in
30      paragraph (1).

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 1      Section 6.          Section 737 of Title 53 is repealed:
 2   [§ 737.    Consolidation or merger agreement.
 3      (a)    Form.--Upon favorable action by the electorate on
 4   consolidation or merger, in cases where consolidation or merger
 5   was initiated by petition of electors under section 735
 6   (relating to initiative of electors seeking consolidation or
 7   merger without new home rule charter), the governing bodies of
 8   the municipalities to be consolidated or merged shall meet as
 9   deemed necessary after the certification of the favorable vote
10   and shall within one year after certification enter into a
11   consolidation or merger agreement as follows:
12             (1)   If the governing body, or part of the governing
13      body, of the consolidated or merged municipality is to be
14      elected on a district or ward basis, the agreement shall set
15      forth the district or ward boundaries and the district or
16      ward designation, by number, and the number of members of the
17      municipal governing body to be elected from each district or
18      ward. The boundaries of the districts or wards shall be
19      established to achieve substantially equal representation.
20             (2)   The agreement shall set forth terms for:
21                   (i)    The disposition of the existing assets of each
22             municipality.
23                   (ii)    The liquidation of the existing indebtedness of
24             each municipality.
25                   (iii)    The assumption, assignment and disposition of
26             the existing liabilities of each municipality, either
27             jointly, separately or in certain defined proportions, by
28             separate rates of taxation within each of the constituent
29             municipalities until consolidation or merger becomes
30             effective pursuant to section 738 (relating to

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 1            effectuation of consolidation or merger).
 2            (3)   The agreement shall set forth the governmental
 3      organization of the consolidated or merged municipality
 4      insofar as it concerns elected officers and shall contain a
 5      transitional plan and schedule applicable to elected
 6      officers.
 7            (4)   The agreement shall provide for common
 8      administration and uniform enforcement of ordinances within
 9      the consolidated or merged municipality.
10            (5)   The agreement shall also provide, consistent with
11      existing law, for the implementation of a uniform tax system
12      throughout the consolidated or merged municipality which
13      shall provide the revenue necessary to fund required
14      municipal services.
15            (6)   The agreement shall mandate full implementation of
16      the consolidation or merger plan within four years following
17      the date of certification.
18      (b)   Filing.--Within 30 days following certification of
19   electorate approval by the county boards of election, a copy of
20   the consolidation or merger agreement under this section or the
21   joint agreement under section 734 (relating to joint agreement
22   of governing bodies) shall be filed with the Department of
23   Community and Economic Development, the Department of
24   Transportation, the Governor's Office of Policy Development or
25   its successor, the Department of Education, the State Tax
26   Equalization Board and the Legislative Data Processing
27   Committee. A copy shall also be filed with the court of common
28   pleas and the board of county commissioners of the county or
29   counties in which municipalities affected are located.]
30      Section 7.    Title 53 is amended by adding a section to read:

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 1   § 737.1.    Advisory committee, consolidation or merger agreement
 2                  and mediation.
 3      (a)     Advisory committee.--Upon favorable action by the
 4   electorate on consolidation or merger, if the consolidation or
 5   merger was initiated by petition of electors under section 735
 6   (relating to initiative of electors seeking consolidation or
 7   merger without new home rule charter), the governing bodies of
 8   the municipalities to be consolidated or merged shall meet
 9   within 60 days after certification of the favorable vote to
10   establish an advisory committee. The advisory committee shall
11   consist of the following members:
12            (1)   One member of the governing body of each
13      municipality, appointed by the governing body.
14            (2)   One resident of each municipality who is not a
15      member of the governing body, an appointed officer of the
16      municipality or an employee of the municipality, appointed by
17      the governing body.
18            (3)   One employee of each municipality, appointed by the
19      governing body. If a municipality has no employee who is not
20      also a member of the governing body, the governing body shall
21      appoint an additional resident under paragraph (2) in lieu of
22      an employee under this paragraph.
23            (4)   One additional resident of an affected municipality,
24      appointed by mutual agreement of the members appointed under
25      paragraph (1). If the members appointed under paragraph (1)
26      cannot reach mutual agreement, the members shall draw lots to
27      determine which resident shall be appointed.
28            (5)   One nonvoting representative appointed by the
29      Secretary of Community and Economic Development.
30            (6)   A chairperson elected by majority vote of the

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 1      advisory committee from among the membership of the advisory
 2      committee.
 3      (b)   Consolidation or merger agreement.--Within five months
 4   after the establishment of the advisory committee, the advisory
 5   committee shall present to the governing bodies of the
 6   municipalities a consolidation or merger agreement. The
 7   agreement shall include all of the following:
 8            (1)   Each matter required to be specified in the petition
 9      under section 735(c)(2), (3), (4), (5), (6) and (7).
10            (2)   If the governing body, or a part of the governing
11      body, of the consolidated or merged municipality is to be
12      elected on a district or ward basis, the district or ward
13      boundaries, the district or ward designation by number and
14      the number of members of the municipal governing body to be
15      elected from each district or ward. The boundaries of the
16      districts or wards shall be established to achieve
17      substantially equal representation.
18            (3)   Terms for all of the following:
19                  (i)    The disposition of the existing assets of each
20            municipality.
21                  (ii)    The liquidation of the existing indebtedness of
22            each municipality.
23                  (iii)   The assumption, assignment and disposition of
24            the existing liabilities of each municipality, either
25            jointly, separately or in certain defined proportions, by
26            separate rates of taxation within each constituent
27            municipality until consolidation or merger becomes
28            effective under section 738 (relating to effectuation of
29            consolidation or merger).
30            (4)   The governmental organization of the consolidated or

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 1      merged municipality insofar as it concerns elected officers
 2      and a transitional plan and schedule applicable to elected
 3      officers.
 4            (5)   The common administration and uniform enforcement of
 5      ordinances within the consolidated or merged municipality and
 6      the interim processing of land use applications and
 7      approvals.
 8            (6)   The implementation, consistent with existing State
 9      law, of a uniform tax system throughout the consolidated or
10      merged municipality that provides the revenue necessary to
11      fund required municipal services.
12            (7)   Full implementation of the consolidation or merger
13      plan within four years after certification of the favorable
14      vote.
15      (c)   Failure to reach agreement.--If the advisory committee
16   is unable to approve a consolidation or merger agreement by
17   majority vote within the time period under subsection (b), the
18   advisory committee shall issue a report within that time period
19   specifying both of the following:
20            (1)   The matters under subsection (b) approved by a
21      majority of the advisory committee.
22            (2)   The matters for which agreement was not reached,
23      including competing approaches to those matters.
24      (d)   Acceptance or rejection by ordinance.--Within one year
25   after certification of favorable action by the electorate, the
26   governing body of each municipality to be consolidated or merged
27   shall, by ordinance, accept or reject the consolidation or
28   merger agreement presented by the advisory committee. Adoption
29   of an ordinance under this subsection shall be subject to an
30   action in mandamus. If a governing body rejects the agreement in

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 1   whole or in part, the ordinance shall specify the provisions of
 2   the agreement that the governing body finds objectionable and
 3   describe how those provisions would fail to provide for an
 4   orderly transition to the new government or would be
 5   inconsistent with this title or other State law.
 6      (e)   Mediation.--If the advisory committee issues a report
 7   under subsection (c) or if a governing body rejects the
 8   consolidation or merger agreement in whole or in part under
 9   subsection (d), the chairperson of the advisory committee shall
10   petition the court of common pleas to provide for mediation of
11   the agreement. Upon petition, the court shall appoint three
12   impartial individuals who reside within the county or counties
13   in which the municipalities are located, but not within the
14   municipalities, as mediators. The mediators shall coordinate
15   with the governing bodies and the advisory committee and shall
16   limit review and mediation to only those matters in dispute
17   identified in the report under subsection (c) or in an ordinance
18   under subsection (d). After notice to interested parties and
19   publication of the petition as directed by the court, the
20   mediators shall hold a hearing and review the proposed
21   consolidation or merger agreement. No later than 90 days after
22   the petition is filed, a majority of the mediators shall submit
23   to the court a report and recommendations for a consolidation or
24   merger agreement. Within 30 days after submission of the report,
25   the court shall confirm the report unless the court finds, by a
26   preponderance of the evidence, that a provision recommended in
27   the report would fail to provide for an orderly transition to
28   the new government or would be inconsistent with this title or
29   other law. The court may direct publication of the availability
30   of the report and require notice to interested parties.

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 1      (f)   Exceptions.--Within 30 days after the filing of the
 2   report under subsection (e), an interested person or political
 3   subdivision may file exceptions to the report. The court shall
 4   schedule a hearing on the exceptions and provide notice of the
 5   hearing. After the hearing, the court may sustain or dismiss the
 6   exceptions and confirm the report or refer the report back to
 7   the same or new mediators for another report.
 8      (g)   Final adoption.--Within 60 days after final adjudication
 9   of a mediation under subsection (e), the governing body of each
10   municipality to be consolidated or merged shall adopt the
11   consolidation or merger agreement by ordinance. Notwithstanding
12   any other law, adoption of an ordinance under this subsection
13   shall be subject to an action in mandamus.
14      Section 8.   Sections 738, 740(a) and 741(a) of Title 53 are
15   amended to read:
16   § 738.   Effectuation of consolidation or merger.
17      Municipalities consolidated or merged shall continue to be
18   governed as before consolidation or merger until the date
19   stipulated in the transitional plan and schedule provided for in
20   sections 734 (relating to joint agreement of governing bodies)
21   and [737 (relating to consolidation or merger agreement)] 737.1
22   (relating to advisory committee, consolidation or merger
23   agreement and mediation), or the transitional plan provided for
24   by a study commission pursuant to section 735.1 (relating to
25   initiative of electors seeking consolidation or merger with new
26   home rule charter). Subject to the provisions of section
27   735.1(q), new officials required to be elected shall take office
28   on the first Monday of January following the municipal election
29   designated in the transitional plan and schedule. At that
30   municipal election, the necessary officers of the consolidated

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 1   or merged municipality shall be elected in accordance with the
 2   terms of the general law affecting municipalities of the kind or
 3   class of the consolidated or merged municipality or, in case of
 4   a consolidated or merged municipality operating under a home
 5   rule charter or optional plan of government, in accordance with
 6   the charter or optional plan or with general law affecting home
 7   rule or optional plan municipalities, as applicable. The
 8   officers elected at that municipal election shall be elected for
 9   terms of office under the plan and schedule set forth in the
10   consolidation or merger agreement authorized by section 734 or
11   [737] 737.1, or the transitional plan provided for by a
12   commission pursuant to section 735.1, as the case may be. They
13   shall take office as officers of the consolidated or merged
14   municipality on the first Monday of January following the
15   municipal election at which they were elected, and upon
16   assumption of office, the consolidated or merged municipality
17   shall begin to function and the former municipalities
18   consolidated or merged into it shall be abolished.
19   § 740.   Procedures.
20      (a)   Ordinance book.--After consolidation becomes effective,
21   a new ordinance book shall be used by the municipality, and,
22   except for a municipality consolidated or merged under section
23   735.1 (relating to initiative of electors seeking consolidation
24   or merger with new home rule charter), the first document to be
25   recorded in it shall be the [consolidation agreement.] joint
26   agreement under section 734 (relating to joint agreement of
27   governing bodies) or the consolidation or merger agreement under
28   section 737.1 (relating to advisory committee, consolidation or
29   merger agreement and mediation), as applicable.
30      * * *

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 1   § 741.   Court review of transitional plan.
 2      (a)   General rule.--Except as provided in subsection (b),
 3   after the approval of a referendum pursuant to section 736
 4   (relating to conduct of referenda) and the adoption of a
 5   transitional plan and schedule under section 734 (relating to
 6   joint agreement of governing bodies) or 737.1 (relating to
 7   advisory committee, consolidation or merger agreement and
 8   mediation), any person who is a resident of a municipality to be
 9   consolidated or merged may petition the court of common pleas to
10   order the appropriate municipal governing bodies to[:
11            (1)   implement the terms of a transitional plan and
12      schedule adopted pursuant to section 734 (relating to joint
13      agreement of governing bodies) or 737 (relating to
14      consolidation or merger agreement); or
15            (2)   adopt or amend a transitional plan or schedule if
16      the court finds that the failure to do so will result in the
17      unreasonable perpetuation of the separate forms and
18      classifications of government existing in the affected
19      municipalities prior to the approval of the referendum.]
20      implement the terms of the transitional plan and schedule.
21      * * *
22      Section 9.    Title 53 is amended by adding sections to read:
23   § 742.   Extension of deadlines.
24      Upon petition of the chairperson elected under section 734(d)
25   (6) (relating to joint agreement of governing bodies) or
26   737.1(a)(6) (relating to advisory committee, consolidation or
27   merger agreement and mediation), the court of common pleas may
28   extend a time period under this subchapter. The court may grant
29   an extension only for the minimum period necessary to reasonably
30   ensure completion of the consolidation or merger.

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 1   § 743.    Grant qualification.
 2      (a)    Eligibility.--To the extent not prohibited by Federal
 3   law, a consolidated or merged municipality shall retain
 4   eligibility for a grant pending, available or authorized for a
 5   municipality consolidated or merged under this subchapter to the
 6   extent the municipality would have been eligible for the grant
 7   notwithstanding the consolidation or merger. Eligibility under
 8   this subsection shall continue for not more than seven years
 9   after certification of the favorable vote on consolidation or
10   merger. Eligibility under this subsection shall also apply to a
11   department, agency or authority of a municipality consolidated
12   or merged under this subchapter. A consolidated or merged
13   municipality and its departments, agencies and authorities may
14   not receive more than one award under the same grant program for
15   the same purpose solely by reason of the consolidation or
16   merger.
17      (b)    Grants previously awarded.--To the extent not prohibited
18   by Federal law:
19             (1)   A municipality consolidated or merged under this
20      subchapter, and a department, agency or authority of the
21      municipality, shall not be disqualified from receiving the
22      proceeds of a grant awarded before the consolidation or
23      merger solely because of the consolidation or merger.
24             (2)   A grant awarded to a volunteer fire department or
25      other person doing business within, for or on behalf of a
26      municipality consolidated or merged under this subchapter
27      shall not be interrupted, abbreviated or rescinded solely
28      because of the consolidation or merger.
29      Section 10.     This act shall apply to a consolidation or
30   merger commenced under 53 Pa.C.S. § 733(a) on or after the

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1   effective date of this section.
2      Section 11.   This act shall take effect in 60 days.




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