1Providing for reorganization of school districts, for
2reorganization plans, for exceptions, for transfer of
3property and assets, for initial board of school directors,
4for operational date and transfer of authority, for
5collective bargaining and for powers and duties of the
6Department of Education; and prescribing penalties.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Short title.

10This act shall be known and may be cited as the School
11District Efficiency and Consolidation Act.

12Section 2. Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Board." The State Board of Education.

17"Department." The Department of Education of the
18Commonwealth.

19"Operational date." The operational date established in
20accordance with section 9(a).

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

2Section 3. Reorganization of school districts.

3(a) General rule.--Each school district identified by the
4department under section 4(b) shall, within 90 days after being
5so identified:

6(1) Enter into discussions with one or more contiguous
7school districts regarding the combination of the school
8districts to form a single reorganized school district.

9(2) Combine with one or more other contiguous school
10districts to form a single reorganized school district,
11unless the school district is granted an exception by the
12department under section 6.

13(b) Duty of contiguous school districts to discuss
14reorganization.--A school district contiguous to a school
15district identified in section 4(b) may not refuse to discuss
16reorganization unless the department grants the school district
17an exception under section 6.

18(c) Voluntary reorganization.--Any two or more contiguous
19school districts may combine to create a reorganized school
20district in accordance with the provisions of this act.

21(d) Resolution required.--

22(1) The board of school directors of each school
23district desiring to form a reorganized school district
24shall, by a majority vote, adopt a resolution outlining the
25manner in which the school district plans to combine with one
26or more other school districts and shall file the resolution
27with the secretary.

28(2) Within ten days after receipt of a resolution under
29paragraph (1), the secretary shall provide the school
30district with a preliminary determination of whether the

1intended reorganization complies with the requirements of
2this act.

3(e) Procedure.--Each school district planning to form a
4reorganized school district under this act must:

5(1) Hold at least one public hearing within the school
6district not less than 30 days before adopting a resolution
7under subsection (d). All public hearings shall be subject to
8the provisions of 65 Pa.C.S. Ch. 7 (relating to open
9meetings).

10(2) In cooperation with the one or more other school
11districts with which the school district plans to combine to
12form a reorganized school district:

13(i) Develop a reorganization plan.

14(ii) Form a reorganization planning committee. The
15reorganization planning committee shall hold two or more
16public hearings in each affected school district. All
17public hearings shall be subject to the provisions of 65
18Pa.C.S. Ch. 7.

19(f) Duty to submit efficiency plan to department.--A school
20district that does not reorganize under this section shall
21provide the department with a plan outlining administrative and
22operational efficiencies that have been or will be implemented
23on or after the effective date of this section, including, but
24not limited to, payroll, purchasing, legal services and
25transportation costs. The plan shall be provided to the
26department not later than 18 months after the effective date of
27this section.

28Section 4. Reorganization guidelines and reorganization
29discussions.

30(a) Duties of department.--

1(1) No later than three months after the effective date
2of this section, the department shall issue guidelines to
3assist school districts with reorganization and the
4provisions of this act. The guidelines shall include:

5(i) Procedures for the formation of a reorganization
6planning committee, including the representation of
7participating school districts, affected municipalities
8and members of the general public who are residents of
9the participating school districts and the roles and
10responsibilities of the committee.

11(ii) The format and contents of a reorganization
12plan.

13(iii) The timeline and instructions for submission
14of a reorganization plan.

15(iv) Criteria for the department's approval of a
16reorganization plan.

17(v) Procedures for requesting binding arbitration
18under section 5(d).

19(2) The guidelines shall be posted on the department's
20Internet website and sent directly to each school district by
21either first class mail or e-mail. The department shall
22provide ongoing technical assistance with the reorganization
23process to all school districts seeking help from the
24department.

25(b) Listing of certain school districts.--No later than six
26months after the effective date of this section, the department
27shall publish on its Internet website a listing of all school
28districts with an annual average daily membership of fewer than
292,500 for the most recently completed school year.

30Section 5. Reorganization plans.

1(a) Duty to submit plan.--Each school district that plans to
2reorganize under section 3 shall submit to the secretary its
3proposed reorganization plan that includes the following:

4(1) The units of school administration to be included in
5the proposed reorganized school district.

6(2) The size, composition and apportionment of the
7initial board of school directors of the reorganized school
8district.

9(3) The manner and time frame in which the initial board
10of school directors of the reorganized school district will
11transition to a permanent board of school directors following
12the reorganization, including how the membership of the board
13will be apportioned among the former component school
14districts.

15(4) The disposition of real and personal school
16property.

17(5) The disposition of existing school district
18indebtedness and lease-purchase obligations.

19(6) The assignment of school district personnel
20contracts, collective bargaining agreements and other school
21district contractual obligations.

22(7) The disposition of existing school district funds
23and financial obligations, including undesignated fund
24balances, trust funds, reserve funds and other funds
25appropriated for school district purposes.

26(8) A transition plan that addresses the development of
27a budget for the first school year of the reorganized school
28district and interim personnel policies.

29(9) Documentation of the public meetings held to prepare
30or review the reorganization plan.

1(10) An estimate of the cost savings to be achieved by
2the formation of a reorganized school district and how the
3savings will be achieved.

4(11) Other matters that the governing bodies of the
5component former school districts comprising the proposed
6reorganized school district determine to be necessary.

7(b) Conditions for approval.--To be approved by the
8secretary, a reorganization plan:

9(1) Must provide comprehensive programming for all
10students from kindergarten to grade 12.

11(2) Must include at least one publicly supported
12secondary school.

13(3) May not displace teachers or students.

14(4) May not close any schools existing and operating
15during the school year immediately preceding reorganization,
16except as currently provided by law or except where the
17health or safety of students, faculty or other staff is at
18risk.

19(5) Must provide for the completion of the
20reorganization no later than five years after the effective
21date of this section, unless an extension is granted by the
22department.

23(c) Action by secretary.--No later than 60 days after
24receiving a reorganization plan, the secretary shall take one of
25the following actions:

26(1) If the secretary finds that the reorganization plan
27meets the requirements of this act, the secretary shall
28approve the plan and provide written notice to the component
29former school districts that the plan has been approved.

30(2) If the secretary finds that the reorganization plan

1does not meet the requirements of this act, the secretary
2shall return the plan to the school districts with written
3recommendations on what is needed for the plan to receive
4approval.

5(d) Binding arbitration.--

6(1) Within 30 days after the decision of the secretary
7under subsection (c), a school district that disagrees with
8the decision of the secretary shall submit the dispute to
9binding arbitration in lieu of bringing an action at law or
10in equity.

11(2) The board of arbitration shall consist of three
12members selected as follows:

13(i) Within five days of the request for arbitration,
14the board of school directors and the secretary each
15shall select one person to be appointed to the board of
16arbitration and submit the person's name to the Office of
17General Counsel. The Office of General Counsel shall
18immediately appoint the selected persons to the board of
19arbitration.

20(ii) Within five days after their appointment, the
21arbitrators appointed under subparagraph (i) shall agree
22upon one person to be appointed to the board of
23arbitration and submit the person's name to the Office of
24General Counsel. The Office of General Counsel shall
25immediately appoint the arbitrator chosen under this
26subparagraph to serve as chair of the board of
27arbitrators.

28(3) An arbitrator appointed under paragraph (1) may not
29be an employee or resident of the school district or an
30employee of the department.

1(4) Upon its appointment, the board of arbitration shall
2commence its proceedings and within 30 days shall make its
3written determination, which shall be binding on the school
4district and the secretary.

5(5) Whenever a panel of arbitrators is constituted under
6this section, costs of the arbitration shall be divided
7equally between the school district and the department,
8provided that each party shall be responsible for payment of
9its own attorney fees.

10(e) Certificate of organization.--If a reorganization plan
11is approved by the secretary, the board shall issue a
12certificate of organization to the reorganized school district.

13Section 6. Exceptions to reorganization.

14No school district may be required to reorganize under this
15act where one of the following applies:

16(1) The department grants an exception based upon one or
17more of the following factors:

18(i) Geography, including physical proximity and the
19size of the current school district.

20(ii) Demographics, including student enrollment
21trends and the composition and nature of communities in
22the school district.

23(iii) Economics, including existing collaborations
24to be preserved or enhanced opportunities to deliver
25commodities and services to be maximized.

26(iv) Impact on property taxes, including where a
27school district would be required to increase the millage
28rate by more than 5% in order to equalize the millage
29rates among the school districts comprising the
30reorganized school district.

1(v) Transportation, including the length of any bus
2routes that would result from a reorganization.

3(vi) Population density.

4(vii) Other unique circumstances, including the need
5to preserve existing or developing relationships, meet
6the needs of students, maximize educational opportunities
7for students and ensure equitable access to rigorous
8programs for all students.

9(2) The department certifies that the school district
10has met adequate yearly progress in reading and math on the
11Pennsylvania System of School Assessment test for the five
12consecutive school years immediately preceding the effective
13date of this section and the school district's reported per-
14pupil expenditures for administrative costs are less than 4%
15of total per-pupil expenditures for the most recent school
16year.

17Section 7. Transfer of property and assets.

18(a) General rule.--The board of school directors of a
19reorganized school district shall determine what school property
20of the component former school districts is necessary to carry
21out the functions of the reorganized school district and shall
22request in writing that the board of school directors of each of
23the component former school district transfer title to its
24school property and buildings to the reorganized school
25district.

26(b) Assumption of indebtedness.--A reorganized school
27district shall assume the outstanding indebtedness of the
28component former school districts for school construction
29projects approved prior to the formation of the reorganized
30school district.

1(c) Use of sinking funds and other moneys.--If the board of
2school directors of a reorganized school district has assumed
3the outstanding indebtedness of a component former school
4district, the board of school directors of the reorganized
5school district may, notwithstanding any other statute or any
6provision of any trust agreement, use any sinking fund or other
7money set aside by the component former school district to pay
8off the indebtedness for which the money was dedicated.

9(d) Property, indebtedness and obligations.--

10(1) All real and personal property, indebtedness and
11rental obligations to an approved building authority or
12nonprofit corporation, if any, of component former school
13districts forming a reorganized school district shall become
14the property, indebtedness and rental obligations of the
15reorganized school district.

16(2) All rights of creditors against any of the component
17former school districts shall be preserved against the
18reorganized school district.

19(3) All property vested in the component former school
20districts, all debts and taxes owing to any of the component
21former school districts and all moneys in the treasuries of
22the component former school districts shall be paid to the
23treasurer of the reorganized school district.

24Section 8. Initial board of school directors.

25(a) General rule.--The members of the boards of school
26directors of component former school districts shall compose the
27initial board of school directors of a reorganized school
28district until such time as a new board of school directors is
29established in accordance with the reorganization plan.

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

1school directors of a reorganized school district shall be
2subject to the provisions of Article IV of the act of March 10,
31949 (P.L.30, No.14), known as the Public School Code of 1949.

4(c) Powers and duties.--The board of school directors of the
5reorganized school district shall have the powers and duties as
6given to the board under Articles V and VI and other provisions
7of the Public School Code of 1949 that are necessary to carry
8out those powers and duties.

9Section 9. Operational date and transfer of authority.

10(a) General rule.--The board of school directors of a
11reorganized school district shall become operational on the date
12set by the secretary in the written approval of the
13reorganization plan. On and after the operational date, the
14reorganization shall be deemed final and may not be reversed.

15(b) Assumption of management and control.--

16(1) The board of school directors of the reorganized
17school district, on the date established under subsection
18(a), shall assume responsibility for the management and
19control of the public schools and programs within the
20component former school districts.

21(2) The component former school districts shall have no
22further responsibility, power or duty for the operation or
23control of the public schools and programs stated within the
24reorganization plan.

25(c) Balance of accounts.--The balances remaining in the
26accounts of the component former school districts shall be paid
27to the treasurer of the reorganized school district and verified
28through an audit.

29(d) Transfer of staff.--Except as limited by subsection (e)
30(1), all teachers and school employees who are employed by a

1component former school district on the day prior to the date
2established under subsection (a) shall be transferred to and
3employed by the reorganized school district as of the date
4established under subsection (a).

5(e) Duties to existing employees.--

6(1) (i) Except as limited by paragraphs (2) and (3),
7the reorganized school district shall assume all legal
8obligations and duties that the component former school
9districts owed to their employees, including, but not
10limited to, those obligations and duties arising under
11Federal law, State law, collective bargaining agreements
12and individual employment contracts.

13(ii) Nothing in this act may be construed to either
14decrease or increase the rights and benefits of
15transferred employees or the employer.

16(iii) The reorganized school district shall also
17maintain and honor any existing agreements, contracts or
18policies regarding the rights and benefits of retirees
19and former employees created by a component former school
20district.

21(2) Teachers or other employees whose employment
22terminates by application of law or contract or by action of
23a component former school district before the date
24established under subsection (a) may not be transferred.

25(3) (i) Teachers and other employees who are
26transferred to the reorganized school district prior to
27the completion of the applicable probationary period for
28their position shall be entitled to have the length of
29their probationary period calculated from their most
30recent date of employment by the component former school

1district.

2(ii) The teachers and other employees under
3subparagraph (i) may be terminated prior to the end of
4their probationary period, subject to the provisions of
5any collective bargaining agreement or individual
6employment contract.

7(f) Superintendent contracts.--The contracts between each
8component former school district and its superintendents shall
9be transferred to the reorganized school district on the date
10established under subsection (a). The board of school directors
11of the reorganized school district shall determine the duties of
12the superintendents within the reorganized school district.

13Section 10. Collective bargaining.

14(a) General rule.--On the operational date, the board of
15school directors of the reorganized school district shall assume
16all of the obligations, duties, liabilities and rights of the
17component former school districts for all purposes under Article
18XI-A of the act of March 10, 1949 (P.L.30, No.14), known as the
19Public School Code of 1949, and the reorganized school district
20shall be considered a single employer. Notwithstanding any other
21provision of law, the responsibilities of the reorganized school
22district shall include:

23(1) Continued recognition of all bargaining agents that
24represented any bargaining units of employees who were
25employed by a component former school district, pending
26completion of merger proceedings described in this section.

27(2) Assumption and continued observance of all
28collective bargaining agreements between the bargaining agent
29and a component former school district, which agreements
30continue in effect for the remainder of their unexpired terms

1unless the bargaining agent and the reorganized school
2district mutually agree otherwise.

3(3) Collective bargaining for an initial or successor
4collective bargaining agreement in any bargaining unit in
5which a collective bargaining agreement is not in effect on
6the operational date and for any interim agreement that may
7be required to align expiration dates in a reorganized school
8district-wide bargaining unit, as described in this section.

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

10(1) As early as possible after reorganization, all
11bargaining units shall be structured on a reorganized school
12district-wide basis. Bargaining units that existed in the
13component former school districts shall merge in accordance
14with the procedures and criteria in this section. Merger into
15a reorganized school district-wide bargaining unit shall not
16be subject to approval or disapproval of employees.

17(2) Merger into a reorganized school district-wide
18bargaining unit shall be completed according to the schedule
19contained in this section and no later than the latest
20expiration date of any collective bargaining agreement that
21covered any employees in the merged unit that was in effect
22on the operational date.

23(3) There shall be one unit of teachers and, to the
24extent they are included in bargaining units on the effective
25date of this section, other certified professional employees,
26excluding principals and other administrators.

27(4) Any additional bargaining units in a reorganized
28school district shall be structured as follows:

29(i) In the initial establishment of the units, units
30shall be structured primarily on the basis of the

1existing pattern of organization in order to maintain the
2grouping of employee classifications into bargaining
3units that existed prior to the creation of the
4reorganized school district and to avoid conflicts among
5different bargaining agents to the extent possible.

6(ii) In the event of a dispute regarding the
7classifications to be included within a reorganized
8school district-wide bargaining unit, the current
9bargaining agent or agents or the reorganized school
10district may petition the Pennsylvania Labor Relations
11Board to determine the appropriate unit.

12(5) When the same bargaining agent exists in all
13bargaining units that will be merged into a reorganized
14school district-wide bargaining unit, the units shall be
15merged as of the operational date, and the reorganized school
16district shall recognize the bargaining agent as the
17representative of the merged unit.

18(6) (i) When all bargaining units that will be merged
19into a reorganized school district-wide bargaining unit
20are represented by separate local affiliates of the same
21State labor organization, the units shall be merged as of
22the operational date.

23(ii) The identity of the single affiliate that will
24be designated the bargaining agent for the merged unit
25shall be selected by the existing bargaining agents and
26the State labor organization.

27(iii) Upon completion of the merger and designation
28of the bargaining agent and notification by the State
29labor organization to the reorganized school district,
30the reorganized school district shall recognize the

1designated bargaining agent as the representative of
2employees in the merged unit.

3(iv) If necessary, the parties shall then execute a
4written amendment to any collective bargaining agreement
5then in effect to change the name of the bargaining agent
6to reflect the merger.

7(7) (i) When there are bargaining units that will be
8merged into a reorganized school district-wide bargaining
9unit in which there are employees who are not represented
10by any bargaining agent and other employees who are
11represented either by the same bargaining agent or
12separate local affiliates of the same State labor
13organization, the units shall be merged as of the
14operational date, as long as a majority of employees who
15compose the merged unit were represented by the
16bargaining agent prior to the merger.

17(ii) The procedures for merger of separate local
18affiliates of the same State labor organization described
19in paragraph (6) shall be followed if applicable.

20(iii) If prior to the merger a bargaining agent did
21not represent a majority of employees who compose the
22merged unit, a bargaining agent election shall be
23conducted by the Pennsylvania Labor Relations Board under
24paragraph (10).

25(8) When there are unexpired collective bargaining
26agreements with different expiration dates in the merged
27bargaining units described in paragraphs (5), (6) and (7),
28all contracts shall be honored to their expiration dates
29unless mutually agreed to otherwise by the public employer
30and the bargaining agent. Collective bargaining agreements

1shall be bargained on an interim basis in any merged
2bargaining unit so that all collective bargaining agreements
3expire on the same date.

4(9) When bargaining units with different bargaining
5agents are required to be merged into a single reorganized
6school district-wide bargaining unit under this section, the
7bargaining agent of the merged bargaining unit shall be
8selected in accordance with State law except as modified in
9this section.

10(10) (i) A petition for an election to determine the
11bargaining agent must be filed with the Pennsylvania
12Labor Relations Board by any of the current bargaining
13agents or the reorganized school district.

14(ii) The petition must be filed not more than 90
15days prior to the expiration date of the agreement having
16the latest expiration date among the bargaining units
17that will be merged into the reorganized school district-
18wide bargaining unit.

19(iii) The election ballot may contain only the names
20of the bargaining agents of bargaining units that will be
21merged into the reorganized school district-wide
22bargaining unit and shall include the choice of "no
23representative." No showing of interest is required from
24the bargaining agent other than its current status as
25representative.

26(iv) The obligation to bargain with existing
27bargaining agents continues from the operational date
28until the determination of the bargaining agent of the
29reorganized school district-wide bargaining unit under
30this section. In no event may any collective bargaining

1agreement that is executed after the operational date
2extend beyond the expiration date of the agreement having
3the latest expiration date among the bargaining units
4that will be merged into the reorganized school district-
5wide bargaining unit.

6(v) The Pennsylvania Labor Relations Board shall
7expedite, to the extent practicable, all petitions for
8determination of the bargaining agent in the reorganized
9school district-wide bargaining unit filed under this
10section.

11(vi) The bargaining units shall be merged into a
12reorganized school district-wide bargaining unit as of
13the date of certification of the results of the election
14by the Pennsylvania Labor Relations Board or the
15expiration of the collective bargaining agreements in the
16unit, whichever occurs later.

17(c) Postmerger collective bargaining.--

18(1) After the merger of bargaining units into a
19reorganized school district-wide bargaining unit, the
20bargaining agent of a reorganized school district-wide
21bargaining unit and the reorganized school district shall
22engage in collective bargaining for a collective bargaining
23agreement for the reorganized school district-wide bargaining
24unit.

25(2) In the collective bargaining agreement for each
26reorganized school district-wide bargaining unit, the
27employment relations, policies, practices, salary schedules,
28hours and working conditions throughout the reorganized
29school district shall be made uniform and consistent, as soon
30as practicable.

1(3) In the event that the parties are unable to agree
2upon an initial reorganized school district-wide collective
3bargaining agreement, the parties shall use the dispute
4resolution procedures under State law to resolve their
5differences.

6(d) Applicability of other law.--The provisions of Article
7XI-A of the Public School Code of 1949 shall apply to all
8collective bargaining units established and contracts entered
9into after the effective date of this section.

10(e) Construction.--Nothing in this section may be construed
11to invalidate, change or reform any contract or affect the
12rights of any employee covered by any contract in existence
13prior to the operational date of the reorganized school
14district.

15Section 11. Penalties.

16In the case of a school district that fails to comply with
17section 3(a) or (b), the secretary shall withhold 25% of the
18school district's basic education subsidy until the school
19district complies.

20Section 12. Effective date.

21This act shall take effect in 60 days.