Section 6-671-A - Appointment of a receiver(a) Duty to file petition.--(1) The secretary shall petition the court of common pleas in the county in which a school district or the largest part in area of the school district is located for the appointment of the individual named in the petition to serve as receiver for the school district upon the occurrence of any of the following conditions:(i) A failure by the board of school directors to approve a financial recovery plan under section 652-A(c) or 663-A(c).(ii) A failure by the board of school directors to comply with directives issued by the chief recovery officer under section 653-A(a)(2) or 664-A(a)(2).(iii) A failure by the board of school directors to satisfy or continue to satisfy the objectives stated in the financial recovery plan under section 641-A(9) during the transition period under section 625-A.(iv) A vote by the board of school directors to proceed with the appointment of a receiver under section 662-A(2).(2) For a school district that was declared to be in financial recovery status under section 621-A(a)(1)(i)(A), the secretary shall file a petition under this section not less than 366 days nor more than 370 days following the declaration of financial recovery status.(b) Financial recovery plan.--The secretary shall attach to the petition filed under subsection (a) a copy of a financial recovery plan for the school district. The financial recovery plan attached to the petition shall comply with section 641-A. When a receiver is appointed under this subdivision, all references to the chief recovery officer in section 641-A shall be deemed references to the receiver appointed under this subdivision.(c) Requirements for individual appointed as receiver.-- (1) To be appointed as receiver under this subdivision, an individual must satisfy one of the following:(i) possess at least five years' experience in one or more of the following areas: budget and financial management, public school finance, school administration, accounting, academic assessment or education law;(ii) hold a graduate degree from an accredited higher education institution in business or finance and have at least four years' relevant experience in business, finance or management; or(iii) be the current business manager or financial officer of a school district in this Commonwealth.(2) The chief recovery officer of the financial recovery school district may be appointed as receiver.(3) The receiver shall not:(i) Seek or hold a position as an employee or as an elected or appointed official of the school district for which the individual is appointed to serve as receiver during the term of the receivership or for a period of two years after the receivership has ended.(ii) Seek or hold elected office in a political subdivision within the school district during the term of the receivership or for a period of two years after the receivership has ended.(iii) Engage in any conduct prohibited by the act of July 19, 1957 (P.L.1017, No.451), known as the State Adverse Interest Act, or 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure).(d) Consent.--The occurrence of any of the conditions enumerated in subsection (a) shall be deemed consent by the board of school directors to a petition filed by the secretary for the appointment of a receiver under this subdivision.(e) Notice.--On the same day the secretary files the petition under subsection (a), the secretary shall:(1) Serve the petition by electronic mail, first class mail or hand delivery upon all of the following:(i) Each member of the board of school directors of the school district.(ii) The chief recovery officer of the school district.(iii) The superintendent of the school district.(iv) The solicitor of the school district.(v) Each member of the advisory committee, if an advisory committee has been established under section 654-A.(2) Publish notice of the filing of the petition once in a newspaper of general circulation in the school district.(f) Hearing.--Within seven days after the filing of a petition under subsection (a), the court of common pleas shall conduct a hearing on the petition.(g) Order.--(1) Not later than ten days following the hearing conducted under subsection (f), the court shall issue an order granting or denying the receivership. The court shall grant the receivership unless the court finds by clear and convincing evidence that the petition for the appointment of a receiver is arbitrary, capricious or wholly irrelevant to restoring the school district to financial stability.(2) An order issued under this subsection granting the receivership shall do all of the following:(i) Declare the school district to be in receivership for a period of three years, subject to extension under section 675-A(b).(ii) State the criteria upon which the order is granted.(iii) State findings of fact to support the order.(iv) Appoint the individual named in the petition to be the receiver if the individual satisfies the provisions of subsection (c) , provided that the court may reject the appointment for any reason. If the court rejects the appointment, the court may do either of the following:(A) name a receiver subject to the requirements of section 671-A(c) and for good cause shown; or(B) order the secretary to submit an alternative appointment.(v) Direct the receiver to implement the financial recovery plan attached to the petition under subsection (b).(vi) Order the department to award a loan to the school district under section 682-A(a)(1)(ii), if the receiver appointed for the school district has applied for a loan under section 682-A(a)(1)(ii) and the school district satisfies the criteria stated in section 681- A(a).(3) An order issued under this subsection denying the receivership shall state: (i) The reasons the petition was denied.(ii) Findings of fact to support the order.(h) Compensation.--(1) The receiver's compensation shall be set pursuant to a contract between the receiver and the department and paid by the department.(2) The department shall reimburse the receiver for all actual and necessary expenses incurred in the performance of the individual's duties as receiver.(i) Liability and immunity.--The receiver shall not be personally liable for any obligations of the school district. The receiver shall be entitled to sovereign and official immunity as provided in 1 Pa.C.S. § 2310 (relating to sovereign immunity reaffirmed; specific waiver) and shall remain immune from suit except as provided by and subject to the provisions of 42 Pa.C.S. Ch. 85 Subchs. A (relating to general provisions) and B (relating to actions against Commonwealth parties).Added by P.L. 1142 2012 No. 141, § 10, eff. 7/12/2012.