PRINTER'S NO. 126
No. 117 Session of 1987
INTRODUCED BY LAUGHLIN, COWELL, LESCOVITZ, COLAFELLA, VEON AND
LaGROTTA, FEBRUARY 3, 1987
REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 3, 1987
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," providing for special aid to school
6 districts suffering loss of tax revenue due to reorganization
7 or bankruptcy of businesses in the district.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The act of March 10, 1949 (P.L.30, No.14), known
11 as the Public School Code of 1949, is amended by adding a
12 section to read:
13 Section 2502.16. Special Aid to School Districts Suffering
14 Loss of Tax Revenue Due to Reorganization or Bankruptcy of
15 Businesses in District.--(a) For the school year 1985-1986 and
16 each school year thereafter, a school district experiencing a
17 ten percent (10%) or greater loss in revenue from real estate
18 taxes for the support of the public schools in any one (1)
19 school year or reasonably projecting a loss of such percent of
20 revenue following the nonpayment of such taxes when due, by
1 reason of reorganization or other bankruptcy proceedings by one
2 or more businesses owning real estate within the boundaries of
3 the public school district, shall qualify for special aid under
4 this section.
5 (b) Such special aid shall be equal to the amount of lost
6 revenue caused by the bankruptcy proceedings and shall be
7 payable to the school district during the school year in
8 question. The special aid shall be paid from undistributed basic
9 instruction subsidy funds to the extent that such funds are
10 available.
11 (c) Such special aid shall be payable until such time as the
12 business reorganization or other bankruptcy proceedings are
13 completed: Provided, however, That a school district which
14 qualified for such special aid prior to the effective date of
15 this section shall receive its first payment in the year this
16 section takes effect.
17 (d) Any subsequent payments made on account of such ceased
18 or suspended real estate taxes by such business or businesses or
19 bankruptcy officials, either during the course of such
20 bankruptcy proceedings or following their completion, shall be
21 reimbursed to the Department of Education by the school district
22 to the extent that such previously unpaid taxes have been
23 supplanted by special aid already provided under this section.
24 Any interest or penalties accompanying such belatedly paid taxes
25 shall be retained by the school district to the extent that the
26 special aid previously paid to the school district did not
27 include such interest and penalties.
28 (e) The special aid owing hereunder shall be due whenever
29 the real estate taxes of such business or businesses in
30 bankruptcy are unpaid as of their due date and the business or
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1 businesses in question will not certify, in writing, that such
2 unpaid taxes will definitely be paid within sixty (60) days
3 after their due date, and there is in fact uncertainty as to the
4 payment of such taxes, whether such uncertainty is due to
5 bankruptcy proceeding restrictions, lack of funds or other
6 reasons.
7 Section 2. This act shall take effect immediately.
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