THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WOZNIAK, PICCOLA AND WILLIAMS, NOVEMBER 8, 2010

REFERRED TO EDUCATION, NOVEMBER 8, 2010  

AN ACT

Providing for reorganization of school districts, for

reorganization plans, for exceptions, for transfer of

property and assets, for initial board of school directors,

for operational date and transfer of authority, for

collective bargaining and for powers and duties of the

Department of Education; and prescribing penalties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the School

District Efficiency and Consolidation Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Board."  The State Board of Education.

"Department."  The Department of Education of the

Commonwealth.

"Operational date."  The operational date established in

accordance with section 9(a).

"Secretary."  The Secretary of Education of the Commonwealth.

Section 3.  Reorganization of school districts.

(a)  General rule.--Each school district identified by the

department under section 4(b) shall, within 90 days after being

so identified:

(1)  Enter into discussions with one or more contiguous

school districts regarding the combination of the school

districts to form a single reorganized school district.

(2)  Combine with one or more other contiguous school

districts to form a single reorganized school district,

unless the school district is granted an exception by the

department under section 6.

(b)  Duty of contiguous school districts to discuss

reorganization.--A school district contiguous to a school

district identified in section 4(b) may not refuse to discuss

reorganization unless the department grants the school district

an exception under section 6.

(c)  Voluntary reorganization.--Any two or more contiguous

school districts may combine to create a reorganized school

district in accordance with the provisions of this act.

(d)  Resolution required.--

(1)  The board of school directors of each school

district desiring to form a reorganized school district

shall, by a majority vote, adopt a resolution outlining the

manner in which the school district plans to combine with one

or more other school districts and shall file the resolution

with the secretary.

(2)  Within ten days after receipt of a resolution under

paragraph (1), the secretary shall provide the school

district with a preliminary determination of whether the

intended reorganization complies with the requirements of

this act.

(e)  Procedure.--Each school district planning to form a

reorganized school district under this act must:

(1)  Hold at least one public hearing within the school

district not less than 30 days before adopting a resolution

under subsection (d). All public hearings shall be subject to

the provisions of 65 Pa.C.S. Ch. 7 (relating to open

meetings).

(2)  In cooperation with the one or more other school

districts with which the school district plans to combine to

form a reorganized school district:

(i)  Develop a reorganization plan.

(ii)  Form a reorganization planning committee. The

reorganization planning committee shall hold two or more

public hearings in each affected school district. All

public hearings shall be subject to the provisions of 65

Pa.C.S. Ch. 7.

(f)  Duty to submit efficiency plan to department.--A school

district that does not reorganize under this section shall

provide the department with a plan outlining administrative and

operational efficiencies that have been or will be implemented

on or after the effective date of this section, including, but

not limited to, payroll, purchasing, legal services and

transportation costs. The plan shall be provided to the

department not later than 18 months after the effective date of

this section.

Section 4.  Reorganization guidelines and reorganization

discussions.

(a)  Duties of department.--

(1)  No later than three months after the effective date

of this section, the department shall issue guidelines to

assist school districts with reorganization and the

provisions of this act. The guidelines shall include:

(i)  Procedures for the formation of a reorganization

planning committee, including the representation of

participating school districts, affected municipalities

and members of the general public who are residents of

the participating school districts and the roles and

responsibilities of the committee.

(ii)  The format and contents of a reorganization

plan.

(iii)  The timeline and instructions for submission

of a reorganization plan.

(iv)  Criteria for the department's approval of a

reorganization plan.

(v)  Procedures for requesting binding arbitration

under section 5(d).

(2)  The guidelines shall be posted on the department's

Internet website and sent directly to each school district by

either first class mail or e-mail. The department shall

provide ongoing technical assistance with the reorganization

process to all school districts seeking help from the

department.

(b)   Listing of certain school districts.--No later than six

months after the effective date of this section, the department

shall publish on its Internet website a listing of all school

districts with an annual average daily membership of fewer than

2,500 for the most recently completed school year.

Section 5.  Reorganization plans.

(a)  Duty to submit plan.--Each school district that plans to

reorganize under section 3 shall submit to the secretary its

proposed reorganization plan that includes the following:

(1)  The units of school administration to be included in

the proposed reorganized school district.

(2)  The size, composition and apportionment of the

initial board of school directors of the reorganized school

district.

(3)  The manner and time frame in which the initial board

of school directors of the reorganized school district will

transition to a permanent board of school directors following

the reorganization, including how the membership of the board

will be apportioned among the former component school

districts.

(4)  The disposition of real and personal school

property.

(5)  The disposition of existing school district

indebtedness and lease-purchase obligations.

(6)  The assignment of school district personnel

contracts, collective bargaining agreements and other school

district contractual obligations.

(7)  The disposition of existing school district funds

and financial obligations, including undesignated fund

balances, trust funds, reserve funds and other funds

appropriated for school district purposes.

(8)  A transition plan that addresses the development of

a budget for the first school year of the reorganized school

district and interim personnel policies.

(9)  Documentation of the public meetings held to prepare

or review the reorganization plan.

(10)  An estimate of the cost savings to be achieved by

the formation of a reorganized school district and how the

savings will be achieved.

(11)  Such other matters as the governing bodies of the

component former school districts comprising the proposed

reorganized school district determine to be necessary.

(b)  Conditions for approval.--To be approved by the

secretary, a reorganization plan:

(1)  Must provide comprehensive programming for all

students from kindergarten to grade 12.

(2)  Must include at least one publicly supported

secondary school.

(3)  May not displace teachers or students.

(4)  May not close any schools existing and operating

during the school year immediately preceding reorganization,

except as currently provided by law or except where the

health or safety of students, faculty or other staff is at

risk.

(5)  Must provide for the completion of the

reorganization no later than five years after the effective

date of this section, unless an extension is granted by the

department.

(c)  Action by secretary.--No later than 60 days after

receiving a reorganization plan, the secretary shall take one of

the following actions:

(1)  If the secretary finds that the reorganization plan

meets the requirements of this act, the secretary shall

approve the plan and provide written notice to the component

former school districts that the plan has been approved.

(2)  If the secretary finds that the reorganization plan

does not meet the requirements of this act, the secretary

shall return the plan to the school districts with written

recommendations on what is needed for the plan to receive

approval.

(d)  Binding arbitration.--

(1)  Within 30 days after the decision of the secretary

under subsection (c), a school district that disagrees with

the decision of the secretary shall submit the dispute to

binding arbitration in lieu of bringing an action at law or

in equity.

(2)  The board of arbitration shall consist of three

members selected as follows:

(i)  Within five days of the request for arbitration,

the board of school directors and the secretary each

shall select one person to be appointed to the board of

arbitration and submit the person's name to the Office of

General Counsel. The Office of General Counsel shall

immediately appoint the selected persons to the board of

arbitration.

(ii)  Within five days after their appointment, the

arbitrators appointed under subparagraph (i) shall agree

upon one person to be appointed to the board of

arbitration and submit the person's name to the Office of

General Counsel. The Office of General Counsel shall

immediately appoint the arbitrator chosen under this

subparagraph to serve as chair of the board of

arbitrators.

(3)  An arbitrator appointed under paragraph (1) may not

be an employee or resident of the school district or an

employee of the department.

(4)  Upon its appointment, the board of arbitration shall

commence its proceedings and within 30 days shall make its

written determination, which shall be binding on the school

district and the secretary.

(5)  Whenever a panel of arbitrators is constituted under

this section, costs of the arbitration shall be divided

equally between the school district and the department,

provided that each party shall be responsible for payment of

its own attorney fees.

(e)  Certificate of organization.--If a reorganization plan

is approved by the secretary, the board shall issue a

certificate of organization to the reorganized school district.

Section 6.  Exceptions to reorganization.

No school district shall be required to reorganize under this

act where one of the following applies:

(1)  The department grants an exception based upon one or

more of the following factors:

(i)  Geography, including physical proximity and the

size of the current school district.

(ii)  Demographics, including student enrollment

trends and the composition and nature of communities in

the school district.

(iii)  Economics, including existing collaborations

to be preserved or enhanced opportunities to deliver

commodities and services to be maximized.

(iv)  Impact on property taxes, including where a

school district would be required to increase the millage

rate by more than 5% in order to equalize the millage

rates among the school districts comprising the

reorganized school district.

(v)  Transportation, including the length of any bus

routes that would result from a reorganization.

(vi)  Population density.

(vii)  Other unique circumstances, including the need

to preserve existing or developing relationships, meet

the needs of students, maximize educational opportunities

for students and ensure equitable access to rigorous

programs for all students.

(2)  The department certifies that the school district

has met adequate yearly progress in reading and math on the

Pennsylvania System of School Assessment test for the five

consecutive school years immediately preceding the effective

date of this section and the school district's reported per-

pupil expenditures for administrative costs are less than 4%

of total per-pupil expenditures for the most recent school

year.

Section 7.  Transfer of property and assets.

(a)  General rule.--The board of school directors of a

reorganized school district shall determine what school property

of the component former school districts is necessary to carry

out the functions of the reorganized school district and shall

request in writing that the board of school directors of each

such component former school district transfer title to its

school property and buildings to the reorganized school

district.

(b)  Assumption of indebtedness.--A reorganized school

district shall assume the outstanding indebtedness of the

component former school districts for school construction

projects approved prior to the formation of the reorganized

school district.

(c)  Use of sinking funds and other moneys.--If the board of

school directors of a reorganized school district has assumed

the outstanding indebtedness of a component former school

district, the board of school directors of the reorganized

school district may, notwithstanding any other statute or any

provision of any trust agreement, use any sinking fund or other

money set aside by the component former school district to pay

off the indebtedness for which the money was dedicated.

(d)  Property, indebtedness and obligations.--

(1)  All real and personal property, indebtedness and

rental obligations to an approved building authority or

nonprofit corporation, if any, of component former school

districts forming a reorganized school district shall become

the property, indebtedness and rental obligations of such

reorganized school district.

(2)  All rights of creditors against any of the component

former school districts shall be preserved against the

reorganized school district.

(3)  All property vested in the component former school

districts, all debts and taxes owing to any of the component

former school districts and all moneys in the treasuries of

the component former school districts shall be paid to the

treasurer of the reorganized school district.

Section 8.  Initial board of school directors.

(a)  General rule.--The members of the boards of school

directors of component former school districts shall compose the

initial board of school directors of a reorganized school

district until such time as a new board of school directors is

established in accordance with the reorganization plan.

(b)  Meetings.--The organization and meetings of the board of

school directors of a reorganized school district shall be

subject to the provisions of Article IV of the act of March 10,

1949 (P.L.30, No.14), known as the Public School Code of 1949.

(c)  Powers and duties.--The board of school directors of the

reorganized school district shall have such powers and duties as

given to the board under Articles V and VI and other provisions

of the Public School Code of 1949 that are necessary to carry

out such powers and duties.

Section 9.  Operational date and transfer of authority.

(a)  General rule.--The board of school directors of a

reorganized school district shall become operational on the date

set by the secretary in the written approval of the

reorganization plan. On and after the operational date, the

reorganization shall be deemed final and may not be reversed.

(b)  Assumption of management and control.--

(1)  The board of school directors of the reorganized

school district, on the date established under subsection

(a), shall assume responsibility for the management and

control of the public schools and programs within the

component former school districts.

(2)  The component former school districts shall have no

further responsibility, power or duty for the operation or

control of the public schools and programs stated within the

reorganization plan.

(c)  Balance of accounts.--The balances remaining in the

accounts of the component former school districts shall be paid

to the treasurer of the reorganized school district and verified

through an audit.

(d)  Transfer of staff.--Except as limited by subsection (e)

(1), all teachers and school employees who are employed by a

component former school district on the day prior to the date

established under subsection (a) shall be transferred to and

employed by the reorganized school district as of the date

established under subsection (a).

(e)  Duties to existing employees.--

(1)  (i)  Except as limited by paragraphs (2) and (3),

the reorganized school district shall assume all legal

obligations and duties that the component former school

districts owed to their employees, including, but not

limited to, those obligations and duties arising under

Federal law, State law, collective bargaining agreements

and individual employment contracts.

(ii)  Nothing in this act shall be construed to

either decrease or increase the rights and benefits of

transferred employees or the employer.

(iii)  The reorganized school district shall also

maintain and honor any existing agreements, contracts or

policies regarding the rights and benefits of retirees

and former employees created by a component former school

district.

(2)  Teachers or other employees whose employment

terminates by application of law or contract or by action of

a component former school district before the date

established under subsection (a) may not be transferred.

(3)  (i)  Teachers and other employees who are

transferred to the reorganized school district prior to

the completion of the applicable probationary period for

their position shall be entitled to have the length of

their probationary period calculated from their most

recent date of employment by the component former school

district.

(ii)  Such teachers and other employees may be

terminated prior to the end of their probationary period,

subject to the provisions of any collective bargaining

agreement or individual employment contract.

(f)  Superintendent contracts.--The contracts between each

component former school district and its superintendents shall

be transferred to the reorganized school district on the date

established under subsection (a). The board of school directors

of the reorganized school district shall determine the duties of

the superintendents within the reorganized school district.

Section 10.  Collective bargaining.

(a)  General rule.--On the operational date, the board of

school directors of the reorganized school district shall assume

all of the obligations, duties, liabilities and rights of the

component former school districts for all purposes under Article

XI-A of the act of March 10, 1949 (P.L.30, No.14), known as the

Public School Code of 1949, and the reorganized school district

shall be considered a single employer. Notwithstanding any other

provision of law, the responsibilities of the reorganized school

district shall include:

(1)  Continued recognition of all bargaining agents that

represented any bargaining units of employees who were

employed by a component former school district, pending

completion of merger proceedings described in this section.

(2)  Assumption and continued observance of all

collective bargaining agreements between any such bargaining

agent and a component former school district, which

agreements continue in effect for the remainder of their

unexpired terms unless the bargaining agent and the

reorganized school district mutually agree otherwise.

(3)  Collective bargaining for an initial or successor

collective bargaining agreement in any bargaining unit in

which a collective bargaining agreement is not in effect on

the operational date and for any interim agreement that may

be required to align expiration dates in a reorganized school

district-wide bargaining unit, as described in this section.

(b)  Merger and structure of bargaining units.--

(1)  As early as possible after reorganization, all

bargaining units shall be structured on a reorganized school

district-wide basis. Bargaining units that existed in the

component former school districts shall merge in accordance

with the procedures and criteria in this section. Merger into

a reorganized school district-wide bargaining unit shall not

be subject to approval or disapproval of employees.

(2)  Merger into a reorganized school district-wide

bargaining unit shall be completed according to the schedule

contained in this section and no later than the latest

expiration date of any collective bargaining agreement that

covered any employees in the merged unit that was in effect

on the operational date.

(3)  There shall be one unit of teachers and, to the

extent they are included in bargaining units on the effective

date of this section, other certified professional employees,

excluding principals and other administrators.

(4)  Any additional bargaining units in a reorganized

school district shall be structured as follows:

(i)  In the initial establishment of the units, units

shall be structured primarily on the basis of the

existing pattern of organization in order to maintain the

grouping of employee classifications into bargaining

units that existed prior to the creation of the

reorganized school district and to avoid conflicts among

different bargaining agents to the extent possible.

(ii)  In the event of a dispute regarding the

classifications to be included within a reorganized

school district-wide bargaining unit, the current

bargaining agent or agents or the reorganized school

district may petition the Pennsylvania Labor Relations

Board to determine the appropriate unit.

(5)  When the same bargaining agent exists in all

bargaining units that will be merged into a reorganized

school district-wide bargaining unit, the units shall be

merged as of the operational date, and the reorganized school

district shall recognize the bargaining agent as the

representative of the merged unit.

(6)  (i)  When all bargaining units that will be merged

into a reorganized school district-wide bargaining unit

are represented by separate local affiliates of the same

State labor organization, the units shall be merged as of

the operational date.

(ii)  The identity of the single affiliate that will

be designated the bargaining agent for the merged unit

shall be selected by the existing bargaining agents and

the State labor organization.

(iii)  Upon completion of the merger and designation

of the bargaining agent and notification by the State

labor organization to the reorganized school district,

the reorganized school district shall recognize the

designated bargaining agent as the representative of

employees in the merged unit.

(iv)  If necessary, the parties shall then execute a

written amendment to any collective bargaining agreement

then in effect to change the name of the bargaining agent

to reflect the merger.

(7)  (i)  When there are bargaining units that will be

merged into a reorganized school district-wide bargaining

unit in which there are employees who are not represented

by any bargaining agent and other employees who are

represented either by the same bargaining agent or

separate local affiliates of the same State labor

organization, the units shall be merged as of the

operational date, as long as a majority of employees who

compose the merged unit were represented by the

bargaining agent prior to the merger.

(ii)  The procedures for merger of separate local

affiliates of the same State labor organization described

in paragraph (6) shall be followed if applicable.

(iii)  If prior to the merger a bargaining agent did

not represent a majority of employees who compose the

merged unit, a bargaining agent election shall be

conducted by the Pennsylvania Labor Relations Board under

paragraph (10).

(8)  When there are unexpired collective bargaining

agreements with different expiration dates in the merged

bargaining units described in paragraphs (5), (6) and (7),

all contracts shall be honored to their expiration dates

unless mutually agreed to otherwise by the public employer

and the bargaining agent. Collective bargaining agreements

shall be bargained on an interim basis in any merged

bargaining unit so that all collective bargaining agreements

expire on the same date.

(9)  When bargaining units with different bargaining

agents are required to be merged into a single reorganized

school district-wide bargaining unit under this section, the

bargaining agent of the merged bargaining unit shall be

selected in accordance with State law except as modified in

this section.

(10)  (i)  A petition for an election to determine the

bargaining agent must be filed with the Pennsylvania

Labor Relations Board by any of the current bargaining

agents or the reorganized school district.

(ii)  The petition must be filed not more than 90

days prior to the expiration date of the agreement having

the latest expiration date among the bargaining units

that will be merged into the reorganized school district-

wide bargaining unit.

(iii)  The election ballot may contain only the names

of the bargaining agents of bargaining units that will be

merged into the reorganized school district-wide

bargaining unit and shall include the choice of "no

representative."  No showing of interest is required from

any such bargaining agent other than its current status

as representative.

(iv)  The obligation to bargain with existing

bargaining agents continues from the operational date

until the determination of the bargaining agent of the

reorganized school district-wide bargaining unit under

this section. In no event may any collective bargaining

agreement that is executed after the operational date

extend beyond the expiration date of the agreement having

the latest expiration date among the bargaining units

that will be merged into the reorganized school district-

wide bargaining unit.

(v)  The Pennsylvania Labor Relations Board shall

expedite, to the extent practicable, all petitions for

determination of the bargaining agent in the reorganized

school district-wide bargaining unit filed under this

section.

(vi)  The bargaining units shall be merged into a

reorganized school district-wide bargaining unit as of

the date of certification of the results of the election

by the Pennsylvania Labor Relations Board or the

expiration of the collective bargaining agreements in the

unit, whichever occurs later.

(c)  Postmerger collective bargaining.--

(1)  After the merger of bargaining units into a

reorganized school district-wide bargaining unit, the

bargaining agent of a reorganized school district-wide

bargaining unit and the reorganized school district shall

engage in collective bargaining for a collective bargaining

agreement for the reorganized school district-wide bargaining

unit.

(2)  In the collective bargaining agreement for each

reorganized school district-wide bargaining unit, the

employment relations, policies, practices, salary schedules,

hours and working conditions throughout the reorganized

school district shall be made uniform and consistent, as soon

as practicable.

(3)  In the event that the parties are unable to agree

upon an initial reorganized school district-wide collective

bargaining agreement, the parties shall use the dispute

resolution procedures under State law to resolve their

differences.

(d)  Applicability of other law.--The provisions of Article

XI-A of the Public School Code of 1949 shall apply to all

collective bargaining units established and contracts entered

into after the effective date of this section.

(e)  Construction.--Nothing in this section shall be

construed to invalidate, change or reform any contract or affect

the rights of any employee covered by any contract in existence

prior to the operational date of the reorganized school

district.

Section 11.  Penalties.

In the case of a school district that fails to comply with

section 3(a) or (b), the secretary shall withhold 25% of the

school district's basic education subsidy until the school

district complies.

Section 12.  Effective date.

This act shall take effect in 60 days.