THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GODSHALL, BOYD, CLYMER, CREIGHTON, DALEY, DeLUCA, GROVE, HARPER, HENNESSEY, MARSHALL, MILLER, READSHAW, REICHLEY, SWANGER AND DENLINGER, JANUARY 20, 2011

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 7, 2011   

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 distress in

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school districts of the first class; providing for State

reimbursement for mobile classroom facilities; and making

editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2574(a) of the act of March 10, 1949

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

amended September 29, 1959 (P.L.992, No.407), is amended to

read:

Section 1.  Section 696(h) and (i)(3) of the act of March 10,

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

amended October 30, 2001 (P.L.828, No.83) and June 29, 2002

(P.L.524, No.88), are amended to read:

Section 696.  Distress in School Districts of the First

Class.--* * *

(h)  The School Reform Commission shall be responsible for

financial matters related to the distressed school district of

the first class and:

(1)  All taxes authorized to be levied by a school district

of the first class or for a school district of the first class

by a city or county of the first class on the date of the

declaration of distress shall continue to be authorized and

levied in accordance with this act and shall be transmitted to

the school district. For the first fiscal year or part thereof

and every fiscal year [thereafter] up to and including fiscal

year 2010-2011 in which the school district is declared to be

distressed, the amount appropriated or paid by the city or

county to the school district and the tax authorized by the city

or county to be levied for the school district or dedicated to

the school district shall be an amount or tax not less than the

highest amount paid by the city or county to the school district

or authorized by the city or county to be levied for the school

district or dedicated to the school district during any of the

three full preceding fiscal years. In addition, the city of the

first class shall provide to the school district of the first

class all other available local non-tax revenue, including

grants, subsidies or payments made during the prior year.

(2)  In addition to the moneys collected under paragraph (1),

the city of the first class shall remit to the school district

of the first class for each year that the school district is

declared distressed that portion of all other local tax revenue

levied for a full fiscal year by a city or county of the first

class coterminous with a school district of the first class that

was allocated to the school district prior to the school

district being declared distressed in accordance with section

691(c).

(3)  All taxes collected on behalf of a school district of

the first class by any person or entity, including a city or

county of the first class, shall be promptly paid following

collection to the School Reform Commission for the benefit of

the school district.

(4)  In the event the city or county of the first class does

not meet the financial obligations prescribed in this

subsection, the Commonwealth may apply to that obligation any

amounts otherwise due from the Commonwealth to the city or

county of the first class, including, but not limited to,

grants, awards and moneys collected by the Commonwealth on

behalf of the city or county of the first class. Funds withheld

shall be maintained in a separate account by the State Treasurer

to be disbursed as determined by the Secretary of Education in

consultation with the State Treasurer.

(5)  The School Reform Commission shall adopt a budget.

(i)  In addition to all powers granted to the superintendent

by law and a special board of control under section 693 and

notwithstanding any other law to the contrary, the School Reform

Commission shall have the following powers:

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(3)  To suspend the requirements of this act and regulations

of the State Board of Education except that the school district

shall remain subject to those provisions of this act set forth

in subsection (h)(1) and section 1732-A(a), (b) and (c) and

section 1714-B and regulations under those [sections]

provisions.

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Section 2.  Section 2574(a) of the act, amended September 29,

1959 (P.L.992, No.407), is amended to read:

Section 2574.  Approved Reimbursable Rental for Leases

Hereafter Approved and Approved Reimbursable Sinking Fund

Charges on Indebtedness.--(a)  For school building projects for

which the general construction contract is awarded subsequent to

March 22, 1956, and for approved school building projects for

which the general construction contract was awarded but for

which a lease was not approved by the Department of [Public

Instruction] Education prior to March 22, 1956, the Department

of [Public Instruction] Education shall calculate an approved

reimbursable rental or approved reimbursable sinking fund

charges. Reimbursable sinking fund charges may include charges

for temporary indebtedness within constitutional limitations, if

the indebtedness is incurred for approved permanent improvements

to the school plant including the cost of acquiring a suitable

site for a school building, the cost of constructing a new

school building, or the cost of providing needed additions or

alterations to existing buildings for which no bond issue is

provided and for which an approved obligation or obligations

other than bonds have been issued and the obligation or

obligations are payable within five (5) years from the date of

issue of the obligation in equal annual installments. Nothing in

this section or in the Department of Education guidelines shall

prohibit a school district from receiving reimbursement for

approved building improvements, including the cost of acquiring

a suitable site for a school building, the cost of constructing

a new school building or the cost of providing needed additions

or alterations to existing buildings, if a school district

elects not to remove any relocatable or modular classroom

utilized after the completion of a building project. The term

"relocatable or modular classroom" shall mean a classroom not of

a permanent nature which meets the criteria and specifications

of the Department of Education.

Approved reimbursable rental or sinking fund charge shall

consist of that part of the annual rental or sinking fund charge

attributable to--

(1)  The cost of acquiring the land upon which the school

buildings are situate, the cost of necessary rough grading to

permit proper placement of the building upon said land and the

cost of sewage treatment plants, as required by the Department

of Health, to the extent that such costs are deemed reasonable

by the Department of [Public Instruction] Education and the

interest on such costs of acquisition, grading and sewage

treatment plants earned subsequent to date the construction

contract is awarded, and

(2)  The approved building construction cost and the interest

on such construction cost.

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Section 2 3.  This act shall take effect in 60 days.

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