1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," in reimbursements by Commonwealth and
6between school districts, further providing for temporary
7special aid to school districts suffering loss of tax revenue
8due to bankruptcy of businesses in the school district; and
9providing for temporary special aid to school districts
10suffering loss of payment in lieu of taxes from local
11sources.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. Section 2502.16(f) of the act of March 10, 1949
15(P.L.30, No.14), known as the Public School Code of 1949, added
16October 20, 1988 (P.L.827, No.110), is amended to read:

17Section 2502.16. Temporary Special Aid to School Districts
18Suffering Loss of Tax Revenue Due to Bankruptcy of Businesses in
19the School District.--* * *

20(f) The special payments authorized by this section and
21[section] sections 2502.10 and 2502.52 shall be paid from a
22restricted revenue account, which is hereby established, for

1such payments. Funds shall be transferred by the Secretary of
2the Budget only to the extent necessary to make the payments
3authorized by this section and [section] sections 2502.10 and 
42502.52.

5* * *

6Section 2. The act is amended by adding a section to read:

7Section 2502.52. Temporary Special Aid to School Districts 
8Suffering Loss of Payment in Lieu of Taxes From Local Sources.--
9(a) For the school year 2012-2013 and each school year 
10thereafter, a school district that:

11(1) experiences at least a twenty-five percent (25%) loss in 
12payment in lieu of taxes from local sources for the support of 
13the public schools in any one year due to the relocation of one 
14or more businesses within the boundaries of the public school 
15district to a location outside the boundaries of the public 
16school district; and

17(2) has less than five percent (5%) of the district's total 
18operating budget in the estimated ending unreserved, 
19undesignated fund balance shall qualify for temporary special 
20aid under the provisions of this section for a period of two (2) 
21years as provided for in subsection (b): Provided, however, That 
22a school district that qualified for such payments prior to the 
23date of this amendatory act shall receive its first payment in 
24the year this amendatory act is enacted.

25(b) If sufficient funds exist in the restricted revenue 
26account, such temporary special aid shall be equal to the loss 
27of total revenues provided for in subsection (a), payable to the 
28school district during the school year in which such loss due to 
29business relocation is suffered, plus an amount equal to fifty 
30percent (50%) of such amount payable to the school district
 

1during the succeeding school year. Payments shall only be made 
2to school districts when the total amount payable under this 
3section is greater than five thousand dollars ($5,000).

4(1) Such temporary special aid shall be paid only once for
5each such business relocation under subsection (a) and only upon
6the condition that the school district tax rates which were in
7effect at the time of the business relocation are not reduced.

8(2) A school district which suffered the loss in total
9revenue provided for in subsection (a) during the 2012-2013 or
10the 2013-2014 school year shall be eligible to receive its first
11payment of temporary special aid during the 2013-2014 school
12year.

13(c) The special aid authorized by this section shall be paid
14from any funds not expended, enumerated or committed from
15appropriations for grants and subsidies made to the Department
16of Education: Provided, That no funds available from
17appropriations for library-related activities may be used for
18these payments.

19(d) Nothing contained in this section shall disqualify a
20school district from receiving temporary special aid due to real
21property reassessments provided for in section 2502.10 or
22disqualify a school district from receiving temporary special
23aid due to bankruptcy of businesses in the school district
24provided for in section 2502.16: Provided, however, That school
25districts eligible for assistance under section 2502.10 or
262502.16 and which receive funds pursuant to those sections shall
27not qualify for temporary special aid for such revenue loss
28according to provisions of this section.

29(e) The special payments authorized by this section, 
30sections 2502.10 and 2502.16 shall be paid from the restricted
 

1revenue account established under section 2502.16(f). Funds 
2shall be transferred by the Secretary of the Budget only to the 
3extent necessary to make the payments authorized by this section 
4and sections 2502.10 and 2502.16. If insufficient funds exist in 
5the restricted revenue account, payments shall be made on a pro 
6rata basis.

7(f) The Secretary of the Budget shall provide to the
8chairman and minority chairman of the Appropriations Committee
9of the Senate and the chairman and minority chairman of the
10Appropriations Committee of the House of Representatives
11information concerning the appropriation from which funds have
12been transferred and the amounts transferred. The Department of
13Education shall have a written policy concerning the method for
14making payments to school districts, including the date by which
15payments shall be made each fiscal year.

16Section 3. This act shall take effect immediately.