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Bill

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.

2025-2026 Regular Session Introduced by Bob Freeman and 6 co-sponsors

The bill creates a structured, multi-path framework for municipal consolidations/mergers, including advisory committees, mediation, transitional planning, and clear timelines to un

Referred to Local Government
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WeVote Research Nonpartisan
Bill Summary · HB 2361

Overview

HB 2361 (Session 2025-2026, Pennsylvania) amends Title 53 (Municipalities Generally) to reorganize and expand the framework for municipal consolidation or merger. The bill introduces new definitions, refines and adds processes for joint agreements and electors’ initiatives, creates an advisory committee mechanism, revises mediation procedures, and updates transitional planning, referenda conduct, and post-consolidation governance. It also adds provisions for extensions of deadlines and grant qualification related to consolidated or merged municipalities. The act applies to consolidations or mergers commenced on or after the bill’s effective date.

Purpose and Intent

  • Create a more structured, multi-path framework for consolidating or merging municipalities, including actions initiated by electors or by governing bodies.
  • Formalize roles for advisory committees and transitional planning to guide smooth governance, administration, and service delivery during and after consolidation.
  • Ensure uniform enforcement of ordinances, transparent land-use processing, consistent taxation, and clear transitional timelines.
  • Provide mechanisms for mediation and court-assisted resolution of unresolved issues, and extendability of deadlines when needed.
  • Protect and preserve eligibility for certain state grants post-consolidation.

Key Provisions and Changes

  • Definitions (Section 732):

    • Introduces definitions for “Consolidation or merger agreement” (agreement under advisory committee framework) and “Joint agreement” (governing body agreement initiated by municipalities).
  • Procedure for Consolidation or Merger (Section 733):

    • Allows consolidation/merger to be initiated by joint agreement, elector initiative, or a combination of both, with consistency requirements when both paths are used.
  • Joint Agreement of Governing Bodies (Section 734):

    • Requires a joint ordinance-based agreement among governing bodies.
    • Adds provisions for common administration and uniform enforcement, and interim land-use processing.
    • Establishes a Transitional Planning Committee to study and advise on budgets, staffing, and operations (new language modifies earlier version).
  • Initiative of Electors (Section 735.1) and Home Rule Charter (Section 735.1(k)(3)(iii)(D)):

    • If electors pursue a new home rule charter and it’s deemed most advisable, the commission will prepare recommendations on uniformly enforced ordinances and interim land-use processing, with codification of ordinances per section 740.
  • Advisory Committee, Merger Agreement, Mediation (Section 737.1):

    • Establishes an advisory committee after elector action, with specified membership (governing bodies, residents, employees, a nonvoting state representative, and a chair).
    • The advisory committee must develop a consolidation/merger agreement within five months, covering asset/liability disposition, taxation, governance, administration, uniform enforcement, and a four-year implementation timeline.
    • Provides for mediation by court-appointed mediators if agreement cannot be reached or if the governing bodies reject the advisory committee’s agreement.
  • Conduct of Referenda and Filing (Sections 736 and 736(d); Section 737.1(b), (e), (f)):

    • Requires filing of joint/merger agreements and advisory committee reports with multiple state and local entities within specified timeframes after electorate approval.
    • Establishes mediation procedures and timelines, including reports to the court and potential amendments.
  • Effectuation and Transitional Plan (Sections 738, 740, 741):

    • Details how consolidated/merged municipalities begin operating under a transitional plan, with officers taking office on the first January after the designated election.
    • Sets requirements for new ordinance books, and specifies that the first document recorded post-consolidation should be the joint or advisory-merger agreement.
    • Court review of transitional plan allows residents to petition for court-ordered implementation or modification if needed to avoid preserving pre-consolidation governance structures.
  • Extensions and Grants (Sections 742, 743):

    • Allows the court to extend deadlines for consolidation-related steps.
    • Clarifies grant eligibility and continuity for consolidated municipalities and their departments, subject to federal law, with protections against duplicative grant awards.
  • Effective Date (Section 10):

    • Applies to consolidations/mergers commenced on or after the act’s effective date. The act takes effect 60 days after enactment.

Who is Affected

  • Municipalities contemplating consolidation or merger (within or across counties).
  • Governing bodies, elected officials, and appointed officers of affected municipalities.
  • Residents and non-government employees who participate in advisory committees or transitional planning.
  • State and county agencies involved in approvals, planning, and oversight (e.g., DCED, Department of Transportation, Education, State Tax Equalization Board, Department of State, etc.).
  • Courts (for mediation and review of transitional plans and disputes).

Procedural and Timeline Aspects

  • Initiation options: joint agreement, elector initiative, or a combination with required consistency.
  • Advisory committee timeline: five months to prepare a consolidation/merger agreement after its formation; mandatory mediation if necessary.
  • Mediation: court-appointed mediators within 90 days to produce a report; potential further court action on exceptions.
  • Final adoption: governing bodies must adopt consolidation/merger agreements by ordinance within 60 days after mediation finalization.
  • Transitional plan: implementation within four years, with officers taking office the first January after elections specified in the plan.
  • Filing duties: mandatory documentation and reports to multiple state and local agencies within 30 days of vote certification or agreement adoption.
  • Extensions: courts may extend deadlines to ensure completion.
  • Grants: limited duration of grant eligibility post-consolidation (up to seven years) to preserve continuity.

Impact Outlook

  • Greater procedural structure aims to reduce conflicts and delays in consolidations.
  • Emphasis on uniform ordinance enforcement, land-use processing, and tax systems should improve governance continuity.
  • The advisory committee and mediation provisions provide formal dispute-resolution pathways, potentially reducing litigation.
  • Administrative and budgetary integration is designed to occur within four years, with ongoing oversight from state agencies.

Note: This summary reflects the text and provisions as introduced/amended in HB 2361 and is not a clinical or legal opinion. For implementation specifics, refer to the final enacted language and any related regulations.

Compiled from official sources — confirm details with the bill’s official record.

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