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 the Commonwealth 
6and between 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)  A school district that:

10(1)  experiences at least a twenty-five percent (25%) loss in 
11payment in lieu of taxes from local sources for the support of 
12the public schools in any one year due to the relocation of one 
13or more businesses within the boundaries of the public school 
14district to a location outside the boundaries of the public 
15school district; and

16(2)  has less than five percent (5%) of the district's total 
17operating budget in the estimated ending unreserved, 
18undesignated fund balance shall qualify for temporary special 
19aid under the provisions of this section for a period of two (2) 
20years as provided for in subsection (b): Provided, however, That 
21a school district that qualified for such payments prior to the 
22effective date of this section shall receive its first payment 
23in the year this section is enacted.

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

1to school districts when the total amount payable under this 
2section is greater than five thousand dollars ($5,000).

3(1)  Such temporary special aid shall be paid only once for
4each such business relocation under subsection (a) and only upon
5the condition that the school district tax rates which were in
6effect at the time of the business relocation are not reduced.

7(2)  A school district which suffered the loss in total
8revenue provided for in subsection (a) during the 2010-2011,
92011-2012 or 2012-2013 school year shall be eligible to receive
10its first payment of temporary special aid during the 2012-2013
11school year.

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

18(d)  Nothing contained in this section shall disqualify a
19school district from receiving temporary special aid due to real
20property reassessments provided for in section 2502.10 or
21disqualify a school district from receiving temporary special
22aid due to bankruptcy of businesses in the school district
23provided for in section 2502.16: Provided, however, That school
24districts eligible for assistance under section 2502.10 or
252502.16 and which receive funds pursuant to those sections shall
26not qualify for temporary special aid for such revenue loss
27according to provisions of this section.

28(e)  The special payments authorized by this section, 
29sections 2502.10 and 2502.16 shall be paid from the restricted 
30revenue account established under section 2502.16(f). Funds 

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

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

15Section 3.  This act shall take effect immediately.