SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

ULSH JAMES

(Last)

(First)

(Middle)

8 DAWN DRIVE

(Street)

MILLERSBURG

17061

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
COMMUNITY BANKS INC /PA/ [ CMTY ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
05/26/2006

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Common Stock	05/26/2006		S		800	D	$26.44	22,648⁽¹⁾	D
Common Stock	05/26/2006		S		200	D	$26.55	22,448⁽¹⁾	D
Common Stock	05/30/2006		S		2,100	D	$25.81	20,348⁽¹⁾	D
Common Stock	05/30/2006		S		1,400	D	$25.84	18,948⁽¹⁾	D
Common Stock	05/30/2006		S		900	D	$25.86	18,048⁽¹⁾	D
Common Stock	05/30/2006		S		344	D	$26.1	17,704⁽¹⁾	D
Common Stock	05/30/2006		S		68	D	$26.15	17,636⁽¹⁾	D
Common Stock								5,737	I	By: 401(k) Plan
Common Stock								472	I	By: Wife's IRA

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Director Stock Option	$11.7429							05/02/2001	05/02/2010	Common Stock	1,533		1,533	D
Director Stock Option	$12.6857							11/30/2001	11/30/2010	Common Stock	767		767	D
Director Stock Option	$20.0571							12/06/2003	12/06/2012	Common Stock	1,043		1,043	D
Director Stock Option	$27.4095							01/25/2007	01/25/2013	Common Stock	1,050		1,050	D
Director Stock Option	$27.5143							06/06/2005	12/06/2014	Common Stock	945		945	D
Director Stock Option	$28.9524							12/04/2004	12/04/2013	Common Stock	992		992	D
Non-Qualified Stock Options	$18.0952							12/06/2001	12/06/2011	Common Stock	1,094		1,094	D

Explanation of Responses:

1. All derivative and non-derivative shares listed as well as exercise price have been adjusted to reflect a 5% stock dividend: record date 4/14/06, payable date 4/28/06.

	Patricia E. Hoch, POA	05/31/2006
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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