| S0330B0980A04538 MSP:SRA 06/29/11 #90 A04538 |
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| AMENDMENTS TO SENATE BILL NO. 330 (As amended by A04630) |
| Sponsor: REPRESENTATIVE MUNDY |
| Printer's No. 980 |
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1 | Amend Bill, page 1, lines 5 through 36; pages 2 through 11, |
2 | lines 1 through 30; page 12, lines 1 through 20 (A04630), by |
3 | striking out all of said lines on said pages and inserting |
4 | Section 1. Section 333 of the act of June 27, 2006 (1st |
5 | Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, is |
6 | amended to read: |
7 | Section 333. Public referendum requirements for increasing |
8 | certain taxes. |
9 | (a) Applicability.--The following provisions shall apply to |
10 | this section: |
11 | (1) For the 2006-2007 fiscal year, the tax increase |
12 | proposed by any board of school directors shall not exceed |
13 | the index unless an exception under subsection (f) or (n) is |
14 | approved pursuant to subsection (i) or (j), provided that a |
15 | board of school directors that did not elect to participate |
16 | in the former act of July 5, 2004 (P.L.654, No.72), known as |
17 | the Homeowner Tax Relief Act, shall have the authority to |
18 | petition the court of common pleas for an additional tax rate |
19 | increase if the tax rate increase allowed by the index and |
20 | any exception approved pursuant to subsection (i) or (j) is |
21 | insufficient to balance the proposed budget. No later than |
22 | July 15, 2006, the court shall grant the school district's |
23 | request for the tax rate increase upon good cause shown if |
24 | the school district proves by clear and convincing evidence |
25 | that the tax rate increase authorized under this paragraph is |
26 | insufficient to balance the proposed budget. For a board of |
27 | school directors subject to this paragraph, the dates by |
28 | which the board of school directors, the department and the |
29 | court of common pleas shall be required to comply with |
30 | section 311 and subsections (e), (i) and (j) shall be 92 days |
31 | after the dates set forth in those provisions, except that |
32 | the date by which the board of school directors shall be |
33 | required to comply with all of the provisions of section |
34 | 311(c) shall be ten days prior to the date by which the board |
35 | of school directors is required to adopt a preliminary |
36 | budget. Any exceptions granted to a board of school directors |
37 | under section 333 of the former Homeowner Tax Relief Act |
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1 | shall remain in full force and effect. Notwithstanding the |
2 | provisions of this paragraph, a board of school directors |
3 | that sought and was granted approval for one or more |
4 | exceptions under section 333 of the former Homeowner Tax |
5 | Relief Act may apply for any exception under subsections (f) |
6 | (v) and (ix) and (n), where the dollar amount of an exception |
7 | approved by the department under the former Homeowner Tax |
8 | Relief Act is less than the dollar amount of the exception |
9 | for which the school district is eligible under this act. |
10 | (2) This section shall apply to each board of school |
11 | directors beginning with any proposed tax increase that takes |
12 | effect in the 2007-2008 fiscal year and each fiscal year |
13 | thereafter. |
14 | (b) Prohibitions.--Except as set forth in subsection [(i) |
15 | and] (j), unless there is compliance with subsection (c), a |
16 | board of school directors may not do any of the following: |
17 | (1) Increase the rate of a tax levied for the support of |
18 | the public schools by more than the index. For purposes of |
19 | compliance with this paragraph, a school district which is |
20 | situated in more than one county and which levies real estate |
21 | taxes under section 672.1 of the act of March 10, 1949 |
22 | (P.L.30, No.14), known as the Public School Code of 1949, |
23 | shall apply the index to each separate rate of real estate |
24 | taxes levied. |
25 | (2) Levy a tax for the support of the public schools |
26 | which was not levied in the 2005-2006 fiscal year. |
27 | (3) Raise the rate of the earned income and net profits |
28 | tax if already imposed under the authority of the Local Tax |
29 | Enabling Act except as otherwise provided for under section |
30 | 331.2 or 332. |
31 | (4) Notwithstanding any other provision of this chapter |
32 | to the contrary, the adoption of a referendum under section |
33 | 331.2 or 332 confers on the board of school directors the |
34 | authority to raise income taxes only to the extent contained |
35 | in the language of the referendum, and any future increase of |
36 | an income tax to be used for the purpose of property tax |
37 | reduction shall be submitted to the electors of the school |
38 | district at a subsequent municipal election pursuant to the |
39 | provisions of section 332. |
40 | (c) Referendum.-- |
41 | (1) In order to take an action prohibited under |
42 | subsection (b)(1), at the election immediately preceding the |
43 | start of the school district fiscal year in which the |
44 | proposed tax increase would take effect, a referendum stating |
45 | the specific rate or rates of the tax increase must be |
46 | submitted to the electors of the school district, and a |
47 | majority of the electors voting on the question must approve |
48 | the increase. |
49 | (2) In order to take an action under subsection (b)(2), |
50 | at the election immediately preceding the start of the school |
51 | district fiscal year in which the proposed tax would take |
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1 | effect, a referendum stating the proposed tax and the rate at |
2 | which it will be levied must be submitted to the electors of |
3 | the school district, and a majority of the electors voting on |
4 | the question must approve the tax. |
5 | (3) Except as set forth in [subsections (i) and ] |
6 | subsection (j), a school district acting pursuant to this |
7 | subsection shall submit the referendum question required |
8 | under this section to the election officials of each county |
9 | in which it is situate no later than 60 days prior to the |
10 | election immediately preceding the fiscal year in which the |
11 | tax increase would take effect. |
12 | (4) The election officials of each county shall, in |
13 | consultation with the board of school directors, draft a |
14 | nonlegal interpretative statement which shall accompany the |
15 | referendum question in accordance with section 201.1 of the |
16 | act of June 3, 1937 (P.L.1333, No.320), known as the |
17 | Pennsylvania Election Code. The nonlegal interpretative |
18 | statement shall include information that references the items |
19 | of expenditure for which the tax increase is sought and the |
20 | consequence of the referendum being disapproved by the |
21 | electorate. |
22 | (d) Failure to approve referendum.-- |
23 | (1) If a referendum question submitted under subsection |
24 | (c)(1) is not approved, the board of school directors may |
25 | approve an increase in the tax rate of not more than the |
26 | index. |
27 | (2) If a referendum question submitted under subsection |
28 | (c)(2) is not approved, the board of school directors may not |
29 | levy the tax. |
30 | (e) Tax rate submissions.--A school district that has |
31 | adopted a preliminary budget proposal under section 311 that |
32 | includes an increase in the rate of any tax levied for the |
33 | support of public schools shall submit information on the |
34 | increase to the department on a uniform form prepared by the |
35 | department. The school district shall submit such information no |
36 | later than 85 days prior to the date of the election immediately |
37 | preceding the beginning of the school district's fiscal year. |
38 | The department shall compare the proposed percentage increase in |
39 | the rate of any tax with the index. Within ten days of the |
40 | receipt of the information required under this subsection but no |
41 | later than 75 days prior to the date of the election immediately |
42 | preceding the beginning of the school district's fiscal year, |
43 | the department shall inform the school district whether the |
44 | proposed tax rate increase is less than or equal to the index. |
45 | If the department determines that the proposed percentage |
46 | increase in the rate of the tax exceeds the index, the |
47 | department shall notify the school district that: |
48 | (1) the proposed tax increase must be reduced to an |
49 | amount less than or equal to the index; |
50 | (2) the proposed tax increase must be approved by the |
51 | electorate under subsection (c)(1); or |
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1 | (3) an exception must be sought under [subsections (i) |
2 | and] subsection (j). |
3 | (f) Referendum exceptions.--A school district may, without |
4 | seeking voter approval under subsection (c), increase the rate |
5 | of a tax levied for the support of the public schools by more |
6 | than the index if all of the following apply: |
7 | (1) The revenue raised by the allowable increase under |
8 | the index is insufficient to balance the proposed budget due |
9 | to one or more of the expenditures listed in paragraph (2). |
10 | (2) The revenue generated by increasing the rate of a |
11 | tax by more than the index will be used to pay for any of the |
12 | following: |
13 | [(i) Costs incurred in responding to or recovering |
14 | from an emergency or disaster declared pursuant to 35 |
15 | Pa.C.S. § 7301 (relating to general authority of |
16 | Governor) or 75 Pa.C.S. § 6108 (relating to power of |
17 | Governor during emergency). |
18 | (ii) Costs to implement a court order or an |
19 | administrative order from a Federal or State agency as |
20 | long as the tax increase is rescinded following |
21 | fulfillment of the court order or administrative order. |
22 | (iii) Costs associated with the following: |
23 | (A) For a board of school directors that elected |
24 | to participate in the former act of July 5, 2004 |
25 | (P.L.654, No.72), known as the Homeowner Tax Relief |
26 | Act, to pay interest and principal on any |
27 | indebtedness incurred under 53 Pa.C.S. Pt. VII Subpt. |
28 | B (relating to indebtedness and borrowing) prior to |
29 | September 4, 2004. In no case may the school district |
30 | incur additional debt under this clause except for |
31 | the refinancing of existing debt, including the |
32 | payment of costs and expenses related to such |
33 | refinancing and the establishment of funding of |
34 | appropriate debt service reserves. An increase under |
35 | this clause shall be rescinded following the final |
36 | payment of interest and principal. |
37 | (A.1) For a board of school directors that did |
38 | not elect to participate in the former act of July 5, |
39 | 2004 (P.L.654, No.72), known as the Homeowner Tax |
40 | Relief Act, to pay interest and principal on any |
41 | indebtedness incurred under 53 Pa.C.S. Pt. VII Subpt. |
42 | B prior to the effective date of this act. In no case |
43 | may the school district incur additional debt under |
44 | this clause except for the refinancing of existing |
45 | debt, including the payment of costs and expenses |
46 | related to such refinancing and the establishment of |
47 | funding of appropriate debt service reserves. An |
48 | increase under this clause shall be rescinded |
49 | following the final payment of interest and |
50 | principal. |
51 | (B) To pay interest and principal on any |
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1 | electoral debt incurred under 53 Pa.C.S. Pt. VII |
2 | Subpt. B. An increase under this clause shall be |
3 | rescinded following the final payment of interest and |
4 | principal. |
5 | (C) To pay interest and principal on |
6 | indebtedness for up to 60% of the construction cost |
7 | average on a square-foot basis if all of the |
8 | following apply: |
9 | (I) The indebtedness is for a school |
10 | construction project under 22 Pa. Code Ch. 21 |
11 | (relating to school buildings). |
12 | (II) For a board of school directors that |
13 | elected to participate in the former Homeowner |
14 | Tax Relief Act, the indebtedness to fund |
15 | appropriate debt service reserves for the project |
16 | is incurred after September 3, 2004. |
17 | (II.1) For a board of school directors that |
18 | did not elect to participate in the former |
19 | Homeowner Tax Relief Act, the indebtedness to |
20 | fund appropriate debt service reserves for the |
21 | project is incurred on or after the effective |
22 | date of this act. |
23 | (III) The increase sought under this clause |
24 | is rescinded following final payment of interest |
25 | and principal. |
26 | (IV) The indebtedness is incurred only after |
27 | existing fund balances for school construction |
28 | and any undesignated fund balances have been |
29 | fully committed to fund the project. |
30 | (V) The indebtedness is for an academic |
31 | elementary or academic secondary school building. |
32 | For purposes of this subclause, the following |
33 | shall not be considered to be an academic |
34 | elementary or academic secondary school building: |
35 | natatorium, stadium bleachers, athletic field, |
36 | athletic field lighting equipment and apparatus |
37 | used to promote and conduct interscholastic |
38 | athletics. |
39 | (VI) For school districts of the second, |
40 | third and fourth class, the project has been |
41 | approved by the department under section 731 of |
42 | the act of March 10, 1949 (P.L.30, No.14), known |
43 | as the Public School Code of 1949. For |
44 | nonreimbursable projects in school districts of |
45 | the first class A, the plans and specifications |
46 | have been approved by the board of school |
47 | directors. For reimbursable projects in school |
48 | districts of the first class A, the plans and |
49 | specifications have been approved by the |
50 | department pursuant to 22 Pa. Code Ch. 21. |
51 | (D) To pay interest and principal on |
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1 | indebtedness for up to $250,000 of the construction |
2 | cost of a nonacademic school construction project, as |
3 | adjusted annually by the percentage increase in the |
4 | average of the Statewide average weekly wage and the |
5 | employment cost index. An increase under this clause |
6 | shall be rescinded following the final payment of |
7 | interest and principal. |
8 | (E) For purposes of this subparagraph, electoral |
9 | debt includes the refunding or refinancing of |
10 | electoral debt for which an exception is permitted |
11 | under clause (B) as long as the refunding or |
12 | refinancing incurs no additional debt other than for: |
13 | (I) costs and expenses related to the |
14 | refunding or refinancing; and |
15 | (II) funding of appropriate debt service |
16 | reserves. |
17 | (F) For purposes of this subparagraph, |
18 | indebtedness includes the refunding or refinancing of |
19 | indebtedness for which an exception is permitted |
20 | under clauses (A), (A.1), (C) and (D) as long as the |
21 | refunding or refinancing incurs no additional debt |
22 | other than for: |
23 | (I) costs and expenses related to the |
24 | refunding or refinancing; and |
25 | (II) funding of appropriate debt service |
26 | reserves. |
27 | (iv) Costs to respond to conditions which pose an |
28 | immediate threat of serious physical harm or injury to |
29 | the students, staff or residents of the school district |
30 | but only until the conditions causing the threat have |
31 | been fully resolved.] |
32 | (v) Costs incurred in providing special education |
33 | programs and services to students with disabilities if |
34 | the increase in expenditures on special education |
35 | programs and services was greater than the index. The |
36 | dollar amount of this exception shall be equal to the |
37 | portion of the increase that exceeds the index. |
38 | [(vi) Costs which: |
39 | (A) were incurred in the implementation of a |
40 | school improvement plan required under section |
41 | 1116(b) of the Elementary and Secondary Education Act |
42 | of 1965 (Public Law 89-10, 20 U.S.C. § 6316(b)); and |
43 | (B) were not offset by a State allocation. |
44 | (vii) Costs necessary to maintain: |
45 | (A) per-student local tax revenue, adjusted by |
46 | the index, if the percentage growth in average daily |
47 | membership between the school year determined under |
48 | subsection (j)(4) and the third school year preceding |
49 | the school year determined under subsection (j)(4) |
50 | exceeds 7.5%; or |
51 | (B) actual instruction expense per average daily |
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1 | membership, adjusted by the index, if the increase in |
2 | actual instruction expense per average daily |
3 | membership between the school year determined under |
4 | subsection (j)(4) and the school year preceding the |
5 | school year determined under subsection (j)(4) is |
6 | less than the index. |
7 | (viii) The maintenance of revenues derived from real |
8 | property taxes, earned income and net profits taxes, |
9 | personal income taxes, basic education funding |
10 | allocations and special education funding allocations, |
11 | adjusted by the index, for a school district where the |
12 | percentage increase in revenues derived from real |
13 | property taxes, earned income and net profits taxes, |
14 | personal income taxes, basic education funding |
15 | allocations and special education funding allocations |
16 | between the school year determined under subsection (j) |
17 | (4) and the school year preceding the school year |
18 | determined under subsection (j)(4) is less than the |
19 | index. |
20 | (ix) Costs incurred for providing health care- |
21 | related benefits which are directly attributable to a |
22 | collective bargaining agreement in effect on January 1, |
23 | 2006, between the school district and its employees' |
24 | organization if the anticipated increase in the cost of |
25 | health care-related benefits between the current year and |
26 | the upcoming year is greater than the index. The dollar |
27 | amount of this exception shall be equal to the portion of |
28 | the increase which exceeds the index. This subparagraph |
29 | shall not apply to a collective bargaining agreement |
30 | renewed, extended or entered into after January 1, 2006.] |
31 | (g) Revenue derived from increase.--Any revenue derived from |
32 | an increase in the rate of any tax allowed pursuant to |
33 | subsection (f)(2)(iii) shall not exceed the anticipated dollar |
34 | amount of the expenditure. |
35 | (h) Limitation on tax rate.--The increase in the rate of any |
36 | tax allowed pursuant to an exception under subsection (f)(2) |
37 | [(i), (ii), (iv), (v), (vi), (vii), (viii) or (ix)] (v) or (n) |
38 | shall not exceed the rate increase required as determined by [a |
39 | court of common pleas or] the department pursuant to subsection |
40 | [(i) or] (j). |
41 | [(i) Court action.-- |
42 | (1) Prior to the imposition of a tax increase under |
43 | subsection (f)(2)(i), (ii) and (iv) and no later than 75 days |
44 | prior to the election immediately preceding the beginning of |
45 | the school district's fiscal year, approval by the court of |
46 | common pleas in the judicial district in which the |
47 | administrative office of the school district is located must |
48 | be sought. The board of school directors shall publish in a |
49 | newspaper of general circulation and on the district's |
50 | publicly accessible Internet site, if one is maintained, |
51 | notice of its intent to file a petition under this subsection |
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1 | at least one week prior to the filing of the petition. The |
2 | board of school directors shall also publish in a newspaper |
3 | of general circulation and on the district's publicly |
4 | accessible Internet site, if one is maintained, notice, as |
5 | soon as possible following notification from the court that a |
6 | hearing has been scheduled, stating the date, time and place |
7 | of the hearing on the petition. The following shall apply to |
8 | any proceedings instituted under this subsection: |
9 | (i) The school district must prove by clear and |
10 | convincing evidence that it qualifies for each exception |
11 | sought. |
12 | (ii) The school district must prove by clear and |
13 | convincing evidence the anticipated dollar amount of the |
14 | expenditure for each exception sought. |
15 | (2) The court shall rule on the school district's |
16 | petition and inform the school district of its decision no |
17 | later than 55 days prior to the date of the election |
18 | immediately preceding the beginning of the school district's |
19 | fiscal year. If the court approves the petition, the court |
20 | shall also determine the dollar amount of the expenditure for |
21 | which an exception is granted, the tax rate increase required |
22 | to fund the exception and the appropriate duration of the |
23 | increase. If the court denies the petition, the school |
24 | district may submit a referendum question under subsection |
25 | (c)(1). The question must be submitted to the election |
26 | officials no later than 50 days prior to the date of the |
27 | election immediately preceding the beginning of the school |
28 | district's fiscal year.] |
29 | (j) Department approval.-- |
30 | (1) A school district that seeks to increase the rate of |
31 | tax due to an expenditure under subsection (f)(2)[(iii), (v), |
32 | (vi), (vii), (viii) or (ix)] (v) or (n) shall obtain the |
33 | approval of the department before imposing the tax increase. |
34 | The department shall establish procedures for administering |
35 | the provisions of this subsection, which may include an |
36 | administrative hearing on the school district's submission. |
37 | (2) A school district proceeding under the provisions of |
38 | this subsection shall publish in a newspaper of general |
39 | circulation and on the district's publicly accessible |
40 | Internet site, if one is maintained, notice of its intent to |
41 | seek department approval at least one week prior to |
42 | submitting its request for approval to the department. If the |
43 | department schedules a hearing on the school district's |
44 | request, the school district shall publish notice of the |
45 | hearing in a newspaper of general circulation and on the |
46 | district's publicly accessible Internet site, if one is |
47 | maintained, immediately upon receiving the information from |
48 | the department. The notice shall include the date, time and |
49 | place of the hearing. |
50 | (3) The department shall approve a school district's |
51 | request under this subsection if a review of the data under |
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1 | paragraph (4) demonstrates that: |
2 | (i) the school district qualifies for one or more |
3 | exceptions under subsection (f)(2)[(iii), (v), (vi), |
4 | (vii), (viii) or (ix)] (v) or (n); and |
5 | (ii) the sum of the dollar amounts of the exceptions |
6 | for which the school district qualifies makes the school |
7 | district eligible under subsection (f)(1). |
8 | (4) For the purpose of determining the eligibility of a |
9 | school district for an exception under subsection (f)(2)(v), |
10 | [(vi), (vii) or (viii),] the department shall utilize data |
11 | from the most recent school years for which annual financial |
12 | report data required under section 2553 of the Public School |
13 | Code of 1949 has been received. The department shall inform |
14 | school districts of the school years determined under this |
15 | subsection no later than 30 days prior to the date on which |
16 | public inspection of proposed school budgets is required |
17 | under section 311(c). |
18 | (5) (i) The department shall rule on the school |
19 | district's request and shall inform the school district |
20 | of its decision no later than 55 days prior to the date |
21 | of the election immediately preceding the beginning of |
22 | the school district's fiscal year. |
23 | (ii) If the department approves the request, the |
24 | department shall determine the dollar amount of the |
25 | expenditure for which the exception is sought and the tax |
26 | rate increase required to fund the exception. |
27 | (iii) If the department denies the request, the |
28 | school district may submit a referendum question under |
29 | subsection (c)(1). The question must be submitted to the |
30 | election officials no later than 50 days prior to the |
31 | date of the election immediately preceding the beginning |
32 | of the school district's fiscal year. |
33 | (6) Within 30 days of the deadline under paragraph (5) |
34 | (i), the department shall submit a report to the President |
35 | pro tempore of the Senate, the Minority Leader of the Senate, |
36 | the Speaker of the House of Representatives and the Minority |
37 | Leader of the House of Representatives enumerating the school |
38 | districts which sought an exception under this subsection. |
39 | The department shall also publish the report on its publicly |
40 | accessible Internet site. The report shall include: |
41 | (i) The name of each school district making a |
42 | request under this subsection. |
43 | (ii) The specific exceptions requested by each |
44 | school district and the dollar amount of the expenditure |
45 | for each exception. |
46 | (iii) The department's ruling on the request for the |
47 | exception. |
48 | (iv) If the exception was approved, the dollar |
49 | amount of the expenditure for which the exception was |
50 | sought and the tax rate increase required to fund the |
51 | exception. |
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1 | (v) A statistical summary of the information in |
2 | subparagraphs (ii), (iii) and (iv). |
3 | [(k) Objections.--Any person who resides within or pays real |
4 | property taxes to the school district filing a petition under |
5 | subsection (i) may file with the court written objections to any |
6 | petition filed under this section.] |
7 | (l) Index calculation.--No later than August 15, 2005, and |
8 | each August 15 thereafter, the department shall calculate the |
9 | index. The department shall publish the index by September 1, |
10 | 2005, and each September 1 thereafter in the Pennsylvania |
11 | Bulletin. |
12 | (m) Election interference prohibited.-- |
13 | (1) No public funds may be used to urge any elector to |
14 | vote for or against a referendum or be appropriated for |
15 | political or campaign purposes. |
16 | (2) This subsection shall not be construed to prohibit |
17 | the use of public funds for dissemination of factual |
18 | information relative to a referendum appearing on an election |
19 | ballot. |
20 | (3) As used in this subsection, the term "public funds" |
21 | means any funds appropriated by the General Assembly or by a |
22 | political subdivision. |
23 | (n) Treatment of certain required payments.--The provisions |
24 | of subsections (f) and (j) shall apply to a school district's |
25 | share of payments to the Public School Employees' Retirement |
26 | System as required under 24 Pa.C.S. § 8327 (relating to payments |
27 | by employers) if the increase in the actual dollar amount of |
28 | estimated payments between the current year and the upcoming |
29 | year is greater than the index. The dollar amount to which |
30 | subsection (f) applies shall equal that portion of the increase |
31 | which exceeds the product of the index and the actual dollar |
32 | value of payments for the current year. |
33 | Section 1.1. Section 1502(d) of the act is amended and the |
34 | section is amended by adding subsections to read: |
|