THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WILLIAMS, KITCHEN, STACK, HUGHES, WASHINGTON, FARNESE AND TARTAGLIONE, OCTOBER 26, 2011

REFERRED TO EDUCATION, OCTOBER 26, 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

school districts of the first class.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 696(h) of the act of March 10, 1949

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

amended June 29, 2002 (P.L.524, No.88), is amended and the

section is amended by adding a subsection 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 subject to the provisions of subsection

(h.1):

(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 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.

(h.1)  For any year for which the body with responsibility

for the making of assessments of real property in a city of the

first class certifies that the total assessed value of all real

property in the city is more than two times the total assessed

value for the previous year, and for each year thereafter:

(1)  Subsection (h)(1), (2), (3) and (4) shall not apply,

provided that for so long as the district remains subject to a

declaration of distress, for each year subsequent to the year

for which the board so certifies, the city shall authorize for a

school district a rate of tax no less than the rate of tax

authorized by the city for the immediately preceding year.

(2)  The authorization of tax for school districts of the

first class set forth in the following acts shall not apply:

(i)  Section 652 of this act.

(ii)  The act of May 23, 1949 (P.L.1661, No.505), entitled,

as reenacted and amended, "An act to impose a tax on real estate

for public school purposes in school districts of the first

class and of the first class A for current expenses."

(iii)  The act of July 8, 1957 (P.L.548, No.303), entitled

"An act to impose an additional tax on real estate for public

school purposes in school districts of the first class for

current expenses."

(iv)  The act of November 19, 1959 (P.L.1552, No.557),

entitled "An act imposing a tax on real estate for public school

purposes in school districts of the first class and first class

A for current expenses."

(v)  The act of August 8, 1963 (P.L.592, No.310), entitled

"An act to impose an additional tax on real estate for public

school purposes in school districts of the first class for

general public school purposes."

(3)  The provisions of paragraph (2) shall continue after the

expiration of a declaration of distress.

* * *

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