THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HARHAI, GOODMAN, GRUCELA, HOUGHTON, KORTZ, KULA, MIRABITO, MURT, SIPTROTH AND YOUNGBLOOD, SEPTEMBER 14, 2010

REFERRED TO COMMITTEE ON EDUCATION, SEPTEMBER 14, 2010  

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," further providing for temporary

special aid to school districts suffering loss of tax revenue

due to bankruptcy of businesses in the school district; and

providing for temporary special aid to school districts

suffering loss of payment in lieu of taxes from local

sources.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2502.16(f) of the act of March 10, 1949

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

October 20, 1988 (P.L.827, No.110), is amended to read:

Section 2502.16.  Temporary Special Aid to School Districts

Suffering Loss of Tax Revenue Due to Bankruptcy of Businesses in

the School District.--* * *

(f)  The special payments authorized by this section and

[section] sections 2502.10 and 2502.50 shall be paid from a

restricted revenue account, which is hereby established, for

such payments. Funds shall be transferred by the Secretary of

the Budget only to the extent necessary to make the payments

authorized by this section and [section] sections 2502.10 and

2502.50.

* * *

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

Section 2502.50.  Temporary Special Aid to School Districts

Suffering Loss of Payment in Lieu of Taxes From Local Sources.--

(a)  For the school year 2010-2011 and each school year

thereafter, a school district experiencing a twenty-five percent

(25%) loss in payment in lieu of taxes from local sources for

the support of the public schools in any one year due to the

relocation of one or more businesses within the boundaries of

the public school district to a location outside the boundaries

of the public school district shall qualify for temporary

special aid under the provisions of this section for a period of

two (2) years as provided for in subsection (b): Provided,

however, That a school district that qualified for such payments

prior to the date of this amendatory act shall receive its first

payment in the year this amendatory act is enacted.

(b)  Such temporary special aid shall be equal to the loss of

total revenues provided for in subsection (a), payable to the

school district during the school year in which such loss due to

business relocation is suffered, plus an amount equal to fifty

percent (50%) of such amount payable to the school district

during the succeeding school year.

(1)  Such temporary special aid shall be paid only once for

each such business relocation under subsection (a) and only upon

the condition that the school district tax rates which were in

effect at the time of the business relocation are not reduced.

(2)  A school district which suffered the loss in total

revenue provided for in subsection (a) during the 2010-2011 or

the 2011-2012 school year shall be eligible to receive its first

payment of temporary special aid during the 2011-2012 school

year.

(c)  The special aid authorized by this section shall be paid

from any funds not expended, enumerated or committed from

appropriations for grants and subsidies made to the Department

of Education: Provided, That no funds available from

appropriations for library-related activities may be used for

these payments.

(d)  Nothing contained in this section shall disqualify a

school district from receiving temporary special aid due to real

property reassessments provided for in section 2502.10 or

disqualify a school district from receiving temporary special

aid due to bankruptcy of businesses in the school district

provided for in section 2502.16: Provided, however, That school

districts eligible for assistance under section 2502.10 or

2502.16 and which receive funds pursuant to those sections shall

not qualify for temporary special aid for such revenue loss

according to provisions of this section.

(e)  The special payments authorized by this section,

sections 2502.10 and 2502.16 shall be paid from a restricted

revenue account, established under section 2502.16(f). Funds

shall be transferred by the Secretary of the Budget only to the

extent necessary to make the payments authorized by this section

and sections 2502.10 and 2502.16.

(f)  The Secretary of the Budget shall provide to the

chairman and minority chairman of the Appropriations Committee

of the Senate and the chairman and minority chairman of the

Appropriations Committee of the House of Representatives

information concerning the appropriation from which funds have

been transferred and the amounts transferred. The Department of

Education shall have a written policy concerning the method for

making payments to school districts, including the date by which

payments shall be made each fiscal year.

Section 3.  This act shall take effect immediately.