PRINTER'S NO. 2032
No. 1460 Session of 1998
INTRODUCED BY TARTAGLIONE, FUMO, AFFLERBACH, HUGHES, KITCHEN,
WILLIAMS, SCHWARTZ, TOMLINSON, BELAN, KUKOVICH, BELL AND
BODACK, JUNE 1, 1998
REFERRED TO EDUCATION, JUNE 1, 1998
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," further providing for distressed
6 school districts of the first class and for certain funding
7 of intermediate units.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The introductory paragraph of section 691(a) and
11 section 696 of the act of March 10, 1949 (P.L.30, No.14), known
12 as the Public School Code of 1949, amended or added April 27,
13 1998 (P.L.270, No.46), are amended to read:
14 Section 691. When District Distressed.--(a) A school
15 district shall be deemed to be distressed when any one of the
16 following circumstances shall arise and the Secretary of
17 Education, after proper investigation of the district's
18 financial condition, the administrative practices of the board
19 and such other matters [deemed appropriate by the Secretary of
20 Education], as to him may seem pertinent has issued a
1 certificate declaring such district in financial distress:
2 * * *
3 Section 696. Distress in School Districts of the First
4 Class.--(a) The Secretary of Education shall appoint a chief
5 executive officer within fifteen (15) days after a declaration
6 by the Secretary of Education that a school district of the
7 first class is distressed under section 691(c) to oversee and
8 manage the school district. The chief executive officer shall
9 serve at the pleasure of the Secretary of Education.
10 (b) The chief executive officer and the School Reform
11 Commission shall assume control of the affairs of the district.
12 Except as provided in this section, the chief executive officer
13 shall assume the powers and duties of the superintendent and the
14 board of school directors until termination of the period of
15 distress under subsection (n).
16 (c) Upon the appointment of the chief executive officer, the
17 superintendent shall be suspended or dismissed and the powers
18 and duties of the board of school directors shall be suspended.
19 (d) Within fifteen (15) days of a declaration by the
20 Secretary of Education that a school district of the first class
21 is distressed under section 691(c), a five member School Reform
22 Commission shall be established. Members shall serve at the
23 pleasure of the appointing authority. The School Reform
24 Commission shall consist of the following:
25 (1) Three members appointed by the Governor, at least two of
26 whom shall be residents of the school district.
27 (2) One member appointed by the mayor who shall be a
28 resident of the school district. In the event the mayor fails to
29 appoint the member to the commission within fifteen (15) days of
30 the date the Secretary of Education declared the district to be
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1 distressed, the Governor shall appoint the remaining member.
2 (3) The Secretary of Education, who shall serve as chairman,
3 or his designee.
4 (e) The School Reform Commission shall advise and assist the
5 chief executive officer regarding the operation, management and
6 educational program of the school district. The powers and
7 duties granted heretofore to the board of school directors of a
8 school district of the first class under this act or any other
9 law regarding the authority to levy taxes and incur debt shall
10 be vested in the School Reform Commission until the Secretary of
11 Education issues a declaration under subsection (n).
12 (f) The commission members shall be reimbursed for expenses
13 incurred in the performance of their official duties from funds
14 of the Department of Education.
15 (g) Actions of the School Reform Commission shall be by
16 majority vote. Three members shall constitute a quorum.
17 (h) The chief executive officer and the School Reform
18 Commission shall direct financial matters related to the
19 distressed school district of the first class and:
20 (1) All taxes authorized to be levied by a school district
21 of the first class or for a school district of the first class
22 by a city or county of the first class shall continue to be
23 levied in accordance with this act and shall be transmitted to
24 the school district. For the first fiscal year or part thereof,
25 and every fiscal year thereafter in which the school district is
26 declared to be distressed, the amount levied, collected and
27 transmitted for each tax shall be in an amount not less than the
28 highest amount paid by the city or county to the school district
29 during any of the three full preceding fiscal years. In
30 addition, the city of the first class shall provide to the
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1 school district of the first class all other available local
2 non-tax revenue, including grants, subsidies or payments made
3 during the prior year.
4 (2) In addition to the moneys collected under paragraph (1),
5 the city of the first class shall remit to the school district
6 of the first class for each year that the school district is
7 declared distressed, that portion of all other local tax revenue
8 levied for a full fiscal year by a city or county of the first
9 class coterminous with a school district of the first class that
10 was allocated to the school district prior to the school
11 district being declared distressed in accordance with section
12 691(c).
13 (3) All taxes collected on behalf of a school district of
14 the first class by any person or entity, including a city or
15 county of the first class shall be promptly paid following
16 collection to the chief executive officer for the benefit of the
17 school district.
18 (4) In the event the city or county of the first class does
19 not meet the financial obligations prescribed in this
20 subsection, the Commonwealth may apply to that obligation any
21 amounts otherwise due from the Commonwealth to the city or
22 county of the first class including, but not limited to, grants,
23 awards and moneys collected by the Commonwealth on behalf of the
24 city or county of the first class. Funds withheld shall be
25 maintained in a separate account by the State Treasurer to be
26 disbursed as determined by the Secretary of Education in
27 consultation with the State Treasurer.
28 (5) The chief executive officer shall develop and adopt a
29 budget with the assistance of the School Reform Commission[.
30 (i) In addition to all powers granted to the superintendent
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1 by law and a special board of control under section 693, and
2 notwithstanding any other law to the contrary, the chief
3 executive officer shall have the following powers:
4 (1) To] and appoint such persons and other entities as
5 needed to conduct fiscal and performance audits and other
6 necessary analyses.
7 [(2) Except as otherwise provided for in this section, to
8 approve the establishment of a charter school or the conversion
9 of an existing school to a charter school pursuant to the
10 provisions of Article XVII-A.
11 (i) A school district building converted to a charter school
12 or a charter school otherwise approved under this section shall
13 not be subject to sections 1717-A(b), (c), (d), (e), (f) and
14 (g), 1722-A(c) and 1724-A.
15 (ii) The chief executive officer may suspend or revoke a
16 charter pursuant to section 1729-A.
17 (3) To suspend the requirements of this act and regulations
18 of the State Board of Education except that the school district
19 shall remain subject to those provisions of this act and
20 regulations set forth in section 1732-A(a), (b) and (c).
21 (4) To employ professional and senior management employes
22 who do not hold State certification if the School Reform
23 Commission has approved the qualifications of the person at a
24 salary established by the commission.
25 (5) To enter into contracts with for-profit or nonprofit
26 entities for the purpose of operating schools or providing
27 educational or other services to or for the school district.
28 (6) Notwithstanding any other provisions of this act, to
29 close or reconstitute a school, including the reassignment,
30 suspension or dismissal of professional employes.
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1 (7) To suspend professional employes without regard to the
2 provisions of section 1125.1.
3 (8) To appoint managers or management teams to oversee the
4 operations of a school or group of schools within the school
5 district.
6 (9) To reallocate resources, amend school procedures,
7 develop achievement plans and implement testing or other
8 evaluation procedures for educational purposes.
9 (10) To supervise and direct principals, teachers and
10 administrators.
11 (11) To negotiate any memoranda of understanding under the
12 collective bargaining agreement in existence on the effective
13 date of this section.
14 (12) To negotiate a new collective bargaining agreement.]
15 (j) The board of school directors of the distressed school
16 district of the first class shall continue in office for the
17 remainder of their terms during the time the district is
18 operated by the chief executive officer and the commission
19 unless removed for neglect of duty under section 318 by the
20 court of common pleas, or unless the director is elected to
21 another position not compatible with the position of school
22 director or is appointed to a position for which there is a
23 requirement that the appointee shall hold no elective office.
24 The board of school directors shall perform any duties delegated
25 to it by the commission. The assumption of control by the chief
26 executive officer and the School Reform Commission shall not
27 interfere with the regular selection of school directors for the
28 school district of the first class.
29 [(k) Collective bargaining between employes and the school
30 district of the first class shall be conducted in accordance
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1 with this subsection.
2 (1) Whether or not a declaration of distress has been made
3 under section 691(c), a collective bargaining agreement in
4 effect on the effective date of this section shall not be
5 extended and shall have no force or effect beyond the existing
6 term of the contract notwithstanding any other law to the
7 contrary.
8 (2) No distressed school district of the first class shall
9 be required to engage in collective bargaining negotiations or
10 enter into memoranda of understanding, or other agreements
11 regarding any of the following issues:
12 (i) Contracts with third parties for the provision of goods
13 or services, including educational services or the potential
14 impact of such contracts on employes.
15 (ii) Decisions related to reductions in force.
16 (iii) Staffing patterns and assignments, class schedules,
17 academic calendar, places of instruction, pupil assessment and
18 teacher preparation time.
19 (iv) The use, continuation or expansion of programs
20 designated by the chief executive officer as pilot or
21 experimental programs.
22 (v) The approval or designation of a school as a charter or
23 magnet school.
24 (vi) The use of technology to provide instructional or other
25 services.
26 (3) A collective bargaining agreement for professional
27 employes entered into after the expiration of the agreement in
28 effect on the date of the declaration of distress shall provide
29 for the following:
30 (i) A school day for professional employes that is equal to
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1 or exceeds the State average as determined by the department. An
2 extension of the school day resulting from this requirement
3 shall be used exclusively for instructional time for students.
4 (ii) The number of instructional days shall be equal to or
5 exceed the State average number of instructional days.
6 (iii) The chief executive officer and the commission shall
7 not increase compensation for employes solely to fulfill the
8 requirements under subparagraphs (i) and (ii).
9 (4) A provision in any contract in effect on the date of the
10 declaration of distress under this subsection that is in
11 conflict with this subsection shall be discontinued in any new
12 or renewed contract.
13 (5) Nothing in this subsection shall eliminate, supersede or
14 preempt any provision of an existing collective bargaining
15 agreement until the expiration of the agreement unless otherwise
16 authorized by law.
17 (6) If, upon the termination of a collective bargaining
18 agreement in effect on the date of the declaration of distress
19 under this section, a new collective bargaining agreement has
20 not been ratified, the Secretary of Education shall establish a
21 personnel salary schedule to be used until a new agreement is
22 ratified.
23 (l) During the time the school district of the first class
24 is under the direction of the chief executive officer, all
25 school employes shall be prohibited from engaging in any strike
26 as defined in Article XI-A and section 301 of the act of July
27 23, 1970 (P.L.563, No.195), known as the Public Employe
28 Relations Act. The Secretary of Education may suspend the
29 certificate of an employe who violates this subsection.]
30 (m) If a vacancy occurs in the position of chief executive
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1 officer, the Secretary of Education may implement a temporary
2 transfer of all powers and duties of the chief executive officer
3 to the School Reform Commission until a new chief executive
4 officer is appointed.
5 (n) The Secretary of Education, upon the recommendation of
6 the chief executive officer and with the concurrence of a
7 majority of the School Reform Commission, may issue a
8 declaration to dissolve the commission and terminate the
9 services of the chief executive officer. The dissolution
10 declaration shall be effective ninety (90) days after issuance
11 by the Secretary of Education.
12 (o) The provisions of this section are severable. If any
13 provision of this section or its application to any person or
14 circumstance is held invalid, the invalidity shall not affect
15 the remaining provisions or applications.
16 Section 2. Sections 26, 27, 28(a) and 29(2) of the act of
17 April 27, 1998 (P.L. , No.46), entitled, "An act amending the
18 act of March 10, 1949 (P.L.30, No.14), entitled 'An act relating
19 to the public school system, including certain provisions
20 applicable as well to private and parochial schools; amending,
21 revising, consolidating and changing the laws relating thereto,'
22 further providing for auxiliary services and for the definitions
23 of "school year" and "children in low-income families";
24 authorizing school districts to impose dress codes and require
25 students to wear standard dress or uniforms; further providing
26 for distressed school districts and for basic education grants
27 and higher education grants for the Link-to-Learn Program;
28 providing for certain procedures relating to management of
29 distressed first class school districts and for technology
30 grants to nonpublic and private schools; further providing for
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1 community college reimbursements, small school district
2 assistance, basic education funding payments to intermediate
3 units, special education payments to school districts, school
4 performance incentives and charter school grants; providing for
5 community education councils, for the operation of the State
6 System of Higher Education, for payments on account of
7 transportation of nonpublic school pupils, for temporary special
8 aid to school districts suffering loss of tax revenue due to
9 reduction in assessed valuation of taxable property and for
10 incentives for administrative and instructional consolidation;
11 and making repeals," are repealed.
12 Section 3. This act shall take effect immediately.
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