Penns Grove Mayor John Washington tells the South Jersey Times the town 20 miles southeast of Philadelphia is "tired of seeing behinds, we're tired of seeing underpants."
If the measure passes, offenders could be fined $25 to $1,000 and sentenced to up to 40 hours of community service.
A hearing is scheduled for Sept. 3.
A similar ordinance took effect in July in the beach resort of Wildwood.
Information from: South Jersey Times (Woodbury, N.J.)