(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:

(1) Joint agreement of the governing bodies of the municipalities proposed for consolidation or merger approved by ordinance followed by approval by the electorate of the joint agreement.

(2) Initiative of electors.

(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 consolidation or merger is commenced by a combination of joint agreements and initiatives, the initiative petition and municipal joint agreement shall be materially consistent.

(c) Approval of home rule charter or optional plan.--At the same time that voters approve or disapprove the consolidation or merger of two or more municipalities, voters may approve or disapprove a new home rule charter or an optional plan under Subpart E of Part III (relating to home rule and optional plan government) that will govern the newly formed municipality resulting from the merger or consolidation. The same ballot may contain a question to consolidate or merge two or more municipalities and a question to adopt a home rule charter or an optional plan.

(d) Study of home rule charter or optional plan.--Except as provided in sections 734 (relating to joint agreement of governing bodies) and 735.1 (relating to initiative of electors seeking consolidation or merger with new home rule charter), the procedure provided for in subsection (c) shall not be utilized unless the same home rule charter or optional plan has been recommended by a government study commission elected in accordance with Ch. 29 Subch. B (relating to procedure for adoption of home rule charter or optional plan of government) in each of the municipalities to be merged or consolidated. Notwithstanding any limitations on the powers and duties of government study commissions provided in Ch. 29 Subch. B, the commissions may study and recommend a home rule charter or optional plan that would be adopted by the consolidated or merged municipalities concurrently with the study of the issue of consolidation or merger of the municipalities.

(Oct. 27, 2010, P.L.980, No.102, eff. 60 days)