Current through Pa Acts 2024-53, 2024-56 through 2024-92
Section 6-672-A - Powers and duties(a) Assumption of powers and duties.--(1) When a receiver is appointed under section 671-A, the receiver shall assume all powers and duties of the chief recovery officer and the board of school directors, including all powers and duties of the board of school directors stated in the financial recovery plan.(2) Paragraph (1) shall not apply to the power to levy and raise taxes. Such power shall remain solely with the board of school directors, provided that the board of school directors shall levy and raise taxes if directed to do so by the receiver.(3) The chief recovery officer appointed for the financial recovery school district under section 631-A shall remain in place as an advisor to the receiver.(4) If the chief recovery officer appointed under section 631-A is appointed as receiver by the court under section 671-A, the secretary may appoint an individual to replace the chief recovery officer, subject to section 631- A(b).(b) Powers and duties of the receiver.--In addition to the powers assumed under subsection (a), a receiver appointed under section 671-A shall have the following powers and duties, notwithstanding any other provision of law to the contrary: (1) Implement the financial recovery plan attached to the petition filed under section 671-A(a).(2) Submit quarterly reports to the secretary, superintendent and board of school directors of the school district concerning the progress of the school district under the financial recovery plan. Where an advisory committee has been established under section 654-A, the reports shall also be submitted to the advisory committee. The reports shall be posted on the school district's publicly accessible Internet website.(3) Direct employees and appointed officials of the school district to take actions that, in the judgment of the receiver, are necessary to implement the financial recovery plan and to refrain from taking actions that, in the judgment of the receiver, would impede the implementation of the plan.(4) Direct the board of school directors to levy and raise taxes.(5) Modify the financial recovery plan as necessary to restore the school district to financial stability by submitting a petition to the court of common pleas. Within seven days of the filing of the petition, the court of common pleas shall issue a decision approving or disapproving the petition. The court of common pleas shall approve the modification, unless the court finds by clear and convincing evidence that the modification is arbitrary, capricious or wholly inadequate to restore the school district to financial stability.(6) Employ financial or legal experts the receiver deems necessary to implement or modify the financial recovery plan. Notwithstanding any law to the contrary, the employment of such experts shall not be subject to contractual competitive bidding procedures.(7) Attend regular and executive sessions of the board of school directors of the school district.(8) Petition the court of common pleas in the county in which the school district or the largest part in area of the school district is located to issue a writ of mandamus upon any employee or elected or appointed official of the school district to secure compliance with a directive of the receiver issued under paragraph (3) or (4). Within seven days of the filing of the petition, the court shall grant the relief requested if the court determines that the directive is consistent with the financial recovery plan.(9) Meet at least monthly with the advisory committee, where an advisory committee has been established under section 654-A.(c) Prohibited activity.--Nothing in this subarticle or the financial recovery plan shall be construed to authorize the receiver to do any of the following: (1) Unilaterally levy or raise taxes.(2) Unilaterally abrogate, alter or otherwise interfere with a lien, charge, covenant or relative priority that is:(i) Held by a holder of a debt obligation of a school district.(ii) Granted by the contract, law, rule or regulation governing the debt obligation.(3) Unilaterally impair or modify existing bonds, notes, school district securities or other lawful contractual or legal obligations of the school district, except as otherwise ordered by a court of competent jurisdiction or as provided in section 642-A(a)(3) .Added by P.L. 1142 2012 No. 141, § 10, eff. 7/12/2012.