PRINTER'S NO. 330

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 303 Session of 1993


        INTRODUCED BY LESCOVITZ, BELFANTI, TIGUE, FAJT, TRELLO, PRESTON,
           COWELL, CORRIGAN, COLAIZZO AND COY, FEBRUARY 8, 1993

        REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 8, 1993

                                     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," further providing for payments to
     6     school districts; and providing for the merger of school
     7     districts.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Section 2517(d) of the act of March 10, 1949
    11  (P.L.30, No.14), known as the Public School Code of 1949,
    12  amended July 1, 1985 (P.L.103, No.31), is amended to read:
    13     Section 2517.  Payments.--* * *
    14     (d)  Subsection (c) of this section shall apply to:
    15     (1)  All payments to which a school district is entitled
    16  under any provision of sections 2502, 2502.3, 2502.4, 2502.8,
    17  2502.9 and 2592 for the school year 1981-1982.
    18     (2)  Payments to which a school district is entitled under
    19  any provision of sections 2502, 2502.8 and 2502.11 for the
    20  school year 1982-1983 and the school year 1983-1984.


     1     (3)  Payments to which a school district is entitled under
     2  any provision of sections 2502, 2502.8, 2502.11 and 2502.13 for
     3  the school [year 1984-1985 and each school year thereafter.]
     4  years 1984-1985, 1985-1986, 1986-1987, 1987-1988, 1988-1989,
     5  1989-1990, 1990-1991 and 1991-1992.
     6     (4)  Payments to which a school district is entitled under
     7  any provision of sections 2502, 2502.8, 2502.11, 2502.13 and
     8  2597 for the school year 1992-1993 and each school year
     9  thereafter.
    10     Section 2.  The act is amended by adding a section to read:
    11     Section 2597.  Subsidy Incentive Payable to Certain Merged
    12  School Districts.--(a)  The provisions of this section shall be
    13  applicable to any school district created by the voluntary
    14  merger of two or more former school districts on or after July
    15  1, 1993, in accordance with the provisions of section 224 of
    16  this act: Provided, however, That at least one of the former
    17  school districts had fewer than one thousand five hundred
    18  (1,500) students in average daily membership during the last
    19  year of its existence and was less than twenty-five (25) square
    20  miles in size.
    21     (b)  The subsidy incentive provided for in this section shall
    22  be paid to all qualified school districts in addition to any
    23  other subsidies to which the districts shall be entitled:
    24  Provided, however, That the subsidy incentive shall not be
    25  considered to be part of any school district's equalized subsidy
    26  for basic education and shall not be considered in the
    27  computation of any school district's subsidy entitlements in
    28  future years.
    29     (c)   A subsidy incentive shall be computed as follows:
    30     (1)  During the first four years of existence of a qualifying
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     1  district, the Department of Education shall compute and pay the
     2  district the equalized subsidy for basic education to which it
     3  is entitled, according to the provisions of sections 2501, 2502,
     4  2502.5 and 2502.11 of this act, in addition to which the
     5  department shall compute and pay the subsidy incentive provided
     6  for in clause (2) during the first such year, in clause (3)
     7  during the second such year, in clause (4) during the third such
     8  year and in clause (5) during the fourth such year.
     9     (2)  During the first year of existence of a qualifying
    10  district, the department shall pay a subsidy incentive that is
    11  twenty per centum (20%) of the equalized subsidy for basic
    12  education amount provided for in clause (1).
    13     (3)  During the second year of existence of a qualifying
    14  district, the department shall pay a subsidy incentive that is
    15  fifteen per centum (15%) of the equalized subsidy for basic
    16  education amount provided for in clause (1).
    17     (4)  During the third year of existence of a qualifying
    18  district, the department shall pay a subsidy incentive that is
    19  ten per centum (10%) of the equalized subsidy for basic
    20  education amount provided for in clause (1).
    21     (5)  During the fourth year of existence of a qualifying
    22  district, the department shall pay a subsidy incentive that is
    23  five per centum (5%) of the equalized subsidy for basic
    24  education amount provided for in clause (1).
    25     (6)  During the fifth year of existence of a qualifying
    26  district, the department shall compute and pay the district only
    27  the amount of equalized subsidy for basic education to which it
    28  is entitled, in accordance with the provisions cited in clause
    29  (1).
    30     (d)  Annually, the Secretary of Education, in the secretary's
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     1  initial budget request, shall report to the Governor on mergers
     2  anticipated the following year which would qualify districts for
     3  the subsidy incentive provided for in this section, along with
     4  an estimate of the appropriation needed to meet the requirements
     5  of this section. Annually, the Governor shall include the
     6  information in the Governor's budget message to the General
     7  Assembly.
     8     (e)  Any funds appropriated by the General Assembly for the
     9  purposes of this section which, at the end of any year, remain
    10  unexpended shall be lapsed in accordance with the provisions of
    11  section 621 of the act of April 9, 1929 (P.L.177, No.175), known
    12  as "The Administrative Code of 1929."
    13     (f)  In the event of a merger pursuant to this section, all
    14  employes of the two or more former districts shall become
    15  employes of the qualified school district: Provided, however,
    16  That the employes shall serve under the terms and conditions of
    17  the collective bargaining agreement, applicable to the positions
    18  they are filling, negotiated by the former district with the
    19  lowest aid ratio. Where employes of the district with the lowest
    20  aid ratio were not covered by a collective bargaining agreement,
    21  the collective bargaining agreement of the other district shall
    22  apply. In cases of more than two merging districts, the
    23  collective bargaining agreement of the district with the lowest
    24  aid ratio shall apply. The collective bargaining agreement shall
    25  be binding upon the qualified school district and shall remain
    26  in force until its expiration date, or if it has already expired
    27  and has been extended by agreement of the former district, until
    28  the deadline for extension is reached, provided that nothing in
    29  this section shall preclude the qualified school district from
    30  agreeing to further extensions of the expired collective
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     1  bargaining agreement until such time as the qualified school
     2  district negotiates and ratifies a new collective bargaining
     3  agreement.
     4     (g)  In the event of a merger pursuant to this section, all
     5  employes shall retain the seniority rights they had prior to the
     6  merger. Employes of the qualified school district shall be
     7  credited with their sick leave and also for their years of
     8  service in their former school districts, the latter for
     9  purposes of sabbatical leave eligibility and placement on the
    10  salary schedule.
    11     (h)  In the event of a merger pursuant to this section, no
    12  professional employe shall be suspended from a qualified school
    13  district during the duration of the collective bargaining
    14  agreement in force pursuant to subsection (f), if the result of
    15  the suspension would be to increase class size in any class or
    16  course above the composite average size of the same class or
    17  course in the former districts in the year immediately preceding
    18  the effective date of the merger.
    19     (i)  If the provisions of this section conflict with any
    20  other statute, ordinance, regulation or rule, the provisions of
    21  this section shall control.
    22     Section 3.  This act shall take effect July 1, 1993.






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