AN ACT

 

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 school finances, further providing
6for distress in school districts of the first class; and
7providing for school board in distressed school districts.

8The General Assembly finds and declares as follows:

9(1) The School Reform Commission was created in 2001 to
10oversee the Philadelphia School District. The School Reform
11Commission replaced a nine-member school board appointed by
12the Mayor of Philadelphia.

13(2) The School Reform Commission has five members: three
14members appointed by the Governor and two members by the
15mayor.

16(3) Three members are accountable to the Governor and
17two members are accountable to the mayor.

18(4) Neither the taxpayers of Philadelphia nor the
19General Assembly, who combined supply 100% of the funding for
20the school district, have any representation or

1accountability on the school board.

2(5) This absence of accountability has eroded public
3confidence in the School District of Philadelphia.

4(6) Recent financial shortfalls, increases in taxes and
5hiring practices have further eroded public confidence in the
6School District of Philadelphia.

7(7) Most Philadelphians do not know who serves as
8members of the School Reform Commission, who appoints the
9members and who runs the School District of Philadelphia.

10(8) Further eroding public confidence is the lack of
11taxpayer, student and parental involvement in the selection
12of members of the School Reform Commission and the leadership
13of the School District of Philadelphia.

14(9) It is necessary to increase accountability to boost
15public confidence and taxpayer, parent and student
16involvement in the school district.

17(10) Greater taxpayer, parent and student involvement in
18the school district will lead to better schools and
19communities.

20(11) The School District of Philadelphia's 2009-2010
21Academic Achievement Report Card compiled by the Department
22of Education of the Commonwealth shows that only 56% of
23Philadelphia school children tested at or above grade level
24for mathematics and that 50% of students tested at or above
25grade level for reading.

26(12) Forty percent of Philadelphia schools are not
27meeting average yearly progress and are instituting
28corrective action plans.

29(13) Establishing an elected school board will allow
30taxpayers, parents and students to select their school board

1members and to have an active role in the financial
2accountability, leadership and direction of the school
3district.

4(14) In addition to establishing an elected school
5board, accountability could be increased by adopting
6financial, budgeting and auditing reforms.

7(15) The financial, budgeting and auditing reforms that
8need to be adopted include: requiring the school district to
9adopt annual five-year budget plans, requiring the
10Philadelphia Intergovernmental Cooperation Authority to
11approve each five-year budget plan and giving the
12Philadelphia City Controller and Auditor General of the
13Commonwealth the authority to conduct fiscal audits and
14performance audits.

15The General Assembly of the Commonwealth of Pennsylvania
16hereby enacts as follows:

17Section 1. Section 696(e)(1), (h), (i) and (n) of the act of 
18March 10, 1949 (P.L.30, No.14), known as the Public School Code 
19of 1949, amended October 30, 2001 (P.L.828, No.83), June 29, 
202002 (P.L.524, No.88) and July 12, 2012 (P.L.1142, No.141), are
21amended and the section is amended by adding subsections to
22read:

23Section 696. Distress in School Districts of the First
24Class.--* * *

25(c.1) The superintendent in a school district of the first
26class shall be appointed by the mayor of a city of the first
27class coterminous with the school district of the first class
28subject to the following:

29(1) The superintendent shall serve at the pleasure of the
30mayor.

1(2) Notwithstanding the provisions of section 1075, the
2superintendent of a school district of the first class shall not
3receive:

4(i) Any form of annual compensation except for an annual
5salary. For the purposes of this subparagraph, annual
6compensation shall include bonuses, incentive payments and any
7other type of compensation. Annual compensation shall not
8include a severance payment, if the district superintendent is
9not terminated, and medical benefits.

10(ii) Any type of severance payment, if the district
11superintendent was terminated.

12(3) The elected board of school directors established
13pursuant to section 696.1 may also adopt a resolution expressing
14a vote of no confidence in the superintendent. Such resolution
15shall be forwarded to the mayor for consideration. Within seven
16(7) days of receiving the resolution from the elected board of
17school directors, the mayor shall inform the board of school
18directors as to whether the superintendent will continue to
19serve as superintendent.

20(e) The following shall apply:

21(1) The School Reform Commission shall be responsible for
22the operation, management and educational program of the school
23district of the first class. The powers and duties of the board
24of school directors of a school district of the first class
25shall be suspended. All powers and duties granted heretofore to
26the board of school directors of a school district of the first
27class under this act or any other law, including its authority
28to levy taxes and incur debt, shall be vested in the School
29Reform Commission until the Secretary of Education issues a
30declaration under subsection (n). Upon the issuance of such
 

1declaration, all powers and duties, except as otherwise provided 
2by this act and in this section, shall be returned to an elected 
3board of school directors established pursuant to section 696.1.

4* * *

5(h) The [School Reform Commission] Board of Education shall
6be responsible for financial matters related to the distressed
7school district of the first class and:

8(1) All taxes authorized to be levied by a school district
9of the first class or for a school district of the first class
10by a city or county of the first class on the date of the
11declaration of distress shall continue to be authorized and
12levied in accordance with this act and shall be transmitted to
13the school district. For the first fiscal year or part thereof
14and every fiscal year thereafter in which the school district is
15declared to be distressed, the amount appropriated or paid by
16the city or county to the school district and the tax authorized
17by the city or county to be levied for the school district or
18dedicated to the school district shall be an amount or tax not
19less than the highest amount paid by the city or county to the
20school district or authorized by the city or county to be levied
21for the school district or dedicated to the school district
22during any of the three full preceding fiscal years. In
23addition, the city of the first class shall provide to the
24school district of the first class all other available local
25non-tax revenue, including grants, subsidies or payments made
26during the prior year.

27(2) In addition to the moneys collected under paragraph (1),
28the city of the first class shall remit to the school district
29of the first class for each year that the school district is
30declared distressed that portion of all other local tax revenue

1levied for a full fiscal year by a city or county of the first
2class coterminous with a school district of the first class that
3was allocated to the school district prior to the school
4district being declared distressed in accordance with section
5691(c).

6(3) All taxes collected on behalf of a school district of
7the first class by any person or entity, including a city or
8county of the first class, shall be promptly paid following
9collection to the [School Reform Commission] Board of Education
10for the benefit of the school district.

11(4) In the event the city or county of the first class does
12not meet the financial obligations prescribed in this
13subsection, the Commonwealth may apply to that obligation any
14amounts otherwise due from the Commonwealth to the city or
15county of the first class, including, but not limited to,
16grants, awards and moneys collected by the Commonwealth on
17behalf of the city or county of the first class. Funds withheld
18shall be maintained in a separate account by the State Treasurer
19to be disbursed as determined by the Secretary of Education in
20consultation with the State Treasurer.

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

22(6) The Board of Education shall adopt a budget. Beginning
23with the first budget adopted after the effective date of this
24paragraph, the budget shall contain a five-year budget plan.
25The five-year budget plan shall be adopted annually and shall be
26submitted to the Philadelphia Intergovernmental Cooperation
27Authority for review and approval by June 30 of each year.

28(i) In addition to all powers granted to [the superintendent
29by law and] a special board of control under section 693 and
30notwithstanding any other law to the contrary, the [School

1Reform Commission] Board of Education shall have the following
2powers:

3(1) (i) To appoint such persons and other entities as
4needed to conduct fiscal and performance audits and other
5necessary analyses.

6(ii) Notwithstanding the provisions of subclause (i), the
7Department of the Auditor General or the city controller of a
8city of the first class may conduct fiscal audits and
9performance audits, as necessary and as determined by the
10Department of the Auditor General and the city controller. The
11Department of the Auditor General and the city controller shall
12coordinate such audits so as not to disrupt the operations of
13the school district of the first class or to duplicate efforts.

14(2) To enter into agreements with persons or for-profit or
15nonprofit organizations to operate one or more schools. A school
16operated under this clause shall be funded in accordance with
17the terms of the agreement. This clause shall be subject to the 
18following provisions:

19(i) All applications to operate a charter school in a school
20year after a declaration of distress is issued and all charter
21schools established after a declaration of distress is issued
22shall not be subject to sections 1717-A(b), (c), (d), (e), (f),
23(g), (h) and (i), 1722-A(c) and 1724-A.

24(ii) The School Reform Commission may suspend or revoke a
25charter pursuant to section 1729-A.

26(3) To suspend the requirements of this act and regulations
27of the State Board of Education except that the school district
28shall remain subject to those provisions of this act set forth
29in sections 1073, 1073.1, 1076, 1077, 1078, 1080, 1732-A(a), (b)
30and (c), 1714-B and 2104 and regulations under those sections.

1(4) To employ professional and senior management employes
2who do not hold State certification if the School Reform
3Commission has approved the qualifications of the person at a
4salary established by the commission.

5(5) To enter into agreements with persons or for-profit or
6nonprofit organizations providing educational or other services
7to or for the school district. Services provided under this
8clause shall be funded in accordance with the terms of the
9agreement.

10(6) Notwithstanding any other provisions of this act, to
11close or reconstitute a school, including the reassignment,
12suspension or dismissal of professional employes.

13(7) To suspend professional employes without regard to the
14provisions of section 1125.1.

15(8) To appoint managers, administrators or for-profit or
16nonprofit organizations to oversee the operations of a school or
17group of schools within the school district.

18(9) To reallocate resources, amend school procedures,
19develop achievement plans and implement testing or other
20evaluation procedures for educational purposes.

21(10) To supervise and direct principals, teachers and
22administrators.

23(11) To negotiate any memoranda of understanding under the
24collective bargaining agreement in existence on the effective
25date of this section.

26(12) To negotiate a new collective bargaining agreement.

27(13) To delegate to a person, including an employe of the
28school district or a for-profit or nonprofit organization,
29powers it deems necessary to carry out the purposes of this
30article, subject to the supervision and direction of the School

1Reform Commission.

2(14) To employ, contract with or assign persons or for-
3profit or nonprofit organizations to review the financial and
4educational programs of school buildings and make
5recommendations to the School Reform Commission regarding
6improvements to the financial or educational programs of school
7buildings.

8* * *

9(n) [The Secretary of Education, only upon the
10recommendation of a majority of the School Reform Commission,
11may issue a declaration to dissolve the School Reform
12Commission. The dissolution declaration shall be issued at least
13one hundred eighty (180) days prior to the end of the current
14school year and shall be effective at the end of that school
15year.] (1) The Secretary of Education shall, within ten (10) 
16days of the effective date of this paragraph, issue a 
17declaration to dissolve the School Reform Commission. The 
18dissolution declaration shall be effective at the end of the 
192012-2013 school year.

20(2)  Except as otherwise provided in this section, after
21dissolution the board of school directors established in 
22accordance with the provisions of section 696.1 shall have the
23powers and duties of the School Reform Commission.

24(3) Upon the effective date of the dissolution declaration,
25the provisions of subsections (a), (b), (b.1), (b.2), (c), (j),
26(l) and (n.1) shall expire.

27* * *

28(p) For purposes of this section, "Board of Education" shall
29mean the elected board of school directors of a distressed
30school district as provided in section 696.1.

1Section 2. The act is amended by adding a section to read:

2Section 696.1. School Board in Distressed School Districts;
3Apportionment of Seats, and Numbers, Terms, and Methods for
4Election of School Directors in Distressed School Districts.--
5(a) In each distressed school district, the school board shall
6be known as the Board of Public Education and shall consist of
7nine (9) school directors, who shall be elected by the qualified
8voters of the school district by specified districts. Each
9candidate shall be nominated only for the specified district in
10which the candidate resides, and each elected member shall
11represent only a specified district in which the elected member
12resides, such districts to be constituted as specified in this
13section.

14(b) All elected members shall serve for a term of four (4)
15years, except the members elected at the initial election in
16even-numbered school director districts, who shall serve for two
17(2) years. In the event the first election occurs in an even-
18numbered year, the terms of the initial members shall be
19increased by one (1) year, so that future elections can be held
20in odd-numbered years. In the case of death or resignation of
21elected members, the mayor of the most populous municipality
22contained in the school district shall fill the vacancy from the
23same school director district in which the vacancy occurred
24until the first Monday in December following the next municipal
25primary occurring one hundred twenty (120) days after the
26vacancy occurred.

27(c) (1) In each distressed school district, a school
28director district apportionment commission shall be constituted
29for the purpose of establishing nine (9) director districts
30within the distressed school district by assigning each election

1district within such school district into one (1) of the school
2director districts. The commission shall select nine (9)
3districts which best provide for racial balance and proportional
4representation of all segments of the population at the time of
5the apportionment. The school director districts shall be
6compact, contiguous and as nearly equal in population as
7practicable.

8(2) The commission shall consist of six (6) members, three
9(3) to be appointed by the mayor of the municipality in which
10the distressed school district is located and three (3) by the
11city council of the municipality. If the distressed school
12district is located in more than one (1) municipality, two (2)
13members shall be appointed by the mayor of the most populous
14municipality in the school district, three (3) by the city
15council of the municipality and one (1) by the mayor of any
16other municipality in the school district with the approval of
17the legislative body thereof. The commission shall elect one (1)
18of its members chairman and shall act by a majority of its
19entire membership. If any of the appointing authorities fail to
20make any or all of such appointments within fifteen (15) days
21after the effective date of this section, the appointment or
22appointments shall be made by the court of common pleas.

23(3) No later than forty-five (45) days after the commission
24has been duly certified, the commission shall file an
25apportionment plan with the county board of elections to be
26submitted to the voters of the district at the next primary
27election occurring not less than ninety-one (91) days after the
28plan is filed with the county board and at which primary
29election the candidates for members of the school board shall be
30nominated.

1(4) No later than September in the second year following the
2year in which Federal decennial census data is officially
3gathered, a school director district reapportionment commission
4shall be appointed. The reapportionment commission shall consist
5of seven (7) members, four (4) to be appointed by the mayor of
6the municipality in which the distressed school district is
7located and three (3) by the city council of the municipality.
8If the distressed school district is located in more than one
9(1) municipality, three (3) members shall be appointed by the
10mayor of the most populous municipality in the school district,
11three (3) by the city council of such municipality and one (1)
12by the mayor of any other municipality in the school district
13with the approval of the legislative body thereof. The duties of
14the reapportionment commission shall be, from the official data
15of the United States Bureau of the Census, to define the lines
16that divide the existing school director districts, to make any
17new school director districts as nearly equal in population as
18practicable, and as compact and contiguous as possible, and to
19best provide for racial balance on the board of school directors
20of the school district. The number of school directors or school
21director districts shall not be increased or decreased. In
22addition, the reapportionment commission shall make every effort
23to maintain neighborhood boundary lines of communities of like
24interest whenever practicable. The reapportionment commission
25shall file its plan no later than ninety (90) days after either
26the commission has been appointed or the specified population
27data for the first class A school district as determined by the
28Federal decennial census are available, whichever is later in
29time.

30(5) The school district shall appropriate sufficient funds

1for the compensation and expenses of members and staff appointed
2by the apportionment commission and reapportionment commission,
3and other necessary expenses. The members of the commissions
4shall be entitled to such compensation for their services as the
5school district from time to time shall determine.

6(6) If an apportionment or reapportionment plan is not filed
7by the commission within the time prescribed by this section,
8the court of common pleas of the county in which the district is
9located shall immediately proceed on its own motion to apportion
10or reapportion the school director districts, in accordance with
11the standards provided in paragraph (4).

12(7) Any apportionment or reapportionment plan, filed by any
13commission or prepared by the court of common pleas of the
14county in which the district is located, upon the failure of the
15commission to act, shall be published by the county board of
16elections once in at least one (1) newspaper of general
17circulation in the most populous municipality of the school
18district, which publication shall contain a map of the school
19district showing the complete apportionment or reapportionment
20of the school director districts. The publication shall also
21state the population of the school director districts having the
22smallest and largest population and the percentage variation of
23the districts from the average population for the districts.

24(8) The county board of elections shall place upon the
25ballot to be submitted to the voters of each distressed school
26district under the act of June 3, 1937 (P.L.1333, No.320), known
27as the "Pennsylvania Election Code," the following question:

28Shall the apportionment plan submitted by the school director
29district apportionment commission for the election of members
30of the Board of Public Education of the school district

1of....................be approved?

2(9) If the voters accept the apportionment plan under
3paragraph (8), the number of school director districts contained
4in the apportionment plan shall be the permanent number of
5school director districts in the school district, and the
6permanent number of school director districts shall neither be
7increased nor decreased by any future reapportionment commission
8or by the court of common pleas of the county in which the
9school district is located. The ballot question shall not be
10considered in the case of a reapportionment plan submitted by a
11reapportionment commission or the court of common pleas.

12(d) (1) Except as provided in paragraph (2), school
13directors shall be nominated and elected in accordance with the
14"Pennsylvania Election Code."

15(2) Notwithstanding the provisions of section 951 of the
16"Pennsylvania Election Code," nomination papers for the office
17of school director shall be filed in the same manner as
18nominations of candidates by political bodies or independent
19candidates, as provided by the "Pennsylvania Election Code,"
20without regard to political party membership. Nomination papers
21for the office of school director must include the signatures of
22at least two hundred fifty (250) qualified electors from the
23district in which the candidate resides, without regard to
24political party affiliation.

25(e) (1) After the election of school directors from
26specified districts in accordance therewith, the Board of Public
27Education of the first class school district shall be governed
28by the provisions of this act and other provisions of general
29law relating to first class school districts which are not
30inconsistent with the provisions of this section.

1(2) The provisions of this section shall supersede all other
2parts of this act and all other acts affecting the organization
3of school districts of the first class to the extent that they
4are inconsistent or in conflict with this section.

5(3) All existing acts or parts of acts and resolutions
6affecting the organization of first class school districts not
7inconsistent or in conflict with the provisions of this section
8shall remain in full force until modified or repealed as
9provided by law.

10(f) No superintendent, assistant superintendent, supervising
11principal, teacher or other employe shall serve either
12temporarily or permanently as a member of the school board by
13which employed.

14(g) For the purposes of this section, "distressed school
15district" shall mean a school district of the first class which
16has been declared to be distressed by the Secretary of Education
17under section 691.

18Section 3. The act of August 9, 1963 (P.L.643, No.341),
19known as the First Class City Public Education Home Rule Act, is
20repealed to the extent of any inconsistency with this act.

21Section 4. This act shall take effect in 60 days.