PRINTER'S NO. 530
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
567
Session of
2021
INTRODUCED BY DeLUCA, PISCIOTTANO, KULIK AND McNEILL,
FEBRUARY 22, 2021
REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 22, 2021
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," in school finances, further providing
for emergency loans for current expenses and debt service and
for borrowing in anticipation of current revenue.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 636(a) and 640 of the act of March 10,
1949 (P.L.30, No.14), known as the Public School Code of 1949,
are amended to read:
Section 636. Emergency Loans for Current Expenses and Debt
Service.--(a) In case of an emergency, any school district in
any fiscal year, after borrowing money in anticipation of
current revenues and expenses to the full extent permitted by
the provisions of section six hundred forty (640) of this act,
and finding the receipts from said loans, together with all
other receipts, to be inadequate to meet the expenditures of the
official fiscal year's budget, may appeal to the State
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Superintendent of Public Instruction for permission to incur a
temporary debt for the purpose of providing funds for current
expenses and debt service and shall present to the State
Superintendent of Public Instruction, or his agent, such
financial statements or reports as he may require to give him
adequate facts relative to the necessity of such increase in
indebtedness. The State Superintendent of Public Instruction is
hereby authorized, after due examination of the need of such
school district, either to refuse or grant permission to such
school district to borrow additional funds for current expenses
and debt service beyond the amount permitted by the provisions
of section six hundred forty (640) of this act. In case of
approval, he shall designate the maximum length of the term and
shall set a maximum limit of the total amount of such temporary
indebtedness that such school district may incur during the
fiscal year in addition to all temporary indebtedness for other
purposes outstanding at the time of such approval.
* * *
Section 640. Borrowing in Anticipation of Current Revenue
and Expenses.--School districts may borrow money in anticipation
of current revenues and expenses, to an amount not exceeding
such anticipated available current revenues after subtracting
anticipated expenses, which shall be pledged for the payment of
such loan or loans, and issue notes or other form of obligation,
executed by the president of the board of school directors and
attested by the secretary of the board under the seal of the
school district, securing such loans. Such notes, or other form
of obligation, shall mature and be payable during the current
fiscal year in which such money is borrowed. No such borrowing
shall constitute an increase of indebtedness within the meaning
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of Article nine, section eight of the Constitution of
Pennsylvania, or of the "Municipal Borrowing Law" of June
twenty-fifth, one thousand nine hundred forty-one (Pamphlet Laws
159), or of any of the provisions of this act, and shall not
require the approval of the Department of Internal Affairs. Such
notes shall bear interest at a rate not exceeding six (6) per
centum per annum, payable at maturity or in advance, and may be
sold at either public or private sale for not less than par. If
such loans are not repaid in whole or in part during the fiscal
year in which they are made, they, or such amounts as remain
unpaid, shall become an obligation upon the following year's
budget and shall be included therein and paid not later than the
first day of July of such following year, in school districts of
the first class, and not later than the first day of November of
such following year, in school districts of the second, third,
and fourth class. The incurring of such obligations shall
receive the affirmative vote of not less than two-thirds of the
members of the board of school directors.
Section 2. This act shall take effect in 60 days.
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