PRINTER'S NO. 2246
No. 1768 Session of 2001
INTRODUCED BY NICKOL, BELFANTI, CALTAGIRONE, CAPPELLI, FRANKEL,
MACKERETH, MAITLAND, R. MILLER, ROSS, RUBLEY, SAYLOR,
STETLER, SURRA, TIGUE, WILT AND YUDICHAK, JUNE 18, 2001
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 18, 2001
AN ACT
1 Amending Title 53 (Municipalities Generally) of the Pennsylvania
2 Consolidated Statutes, further providing for limitations on
3 incurring of other debt.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 8022(f) of Title 53 of the Pennsylvania
7 Consolidated Statutes is amended to read:
8 § 8022. Limitations on incurring of other debt.
9 * * *
10 (f) Limitations on incurring of debt by school districts.--
11 (1) Except for purposes of refinancing existing debt
12 under this subpart and notwithstanding the other provisions
13 of this section, no school district of the first class A
14 through fourth classes shall incur any new nonelectoral debt
15 or lease rental debt if the aggregate net principal amount of
16 such new debt together with any other net nonelectoral debt
17 and lease rental debt then outstanding would cause the
18 outstanding total of net nonelectoral debt plus net lease
1 rental debt of the school district to exceed 225% of the
2 school district's borrowing base as defined in section 8002
3 (relating to definitions). This section shall apply
4 regardless of whether there is an election by the school
5 district under section 8703 (relating to adoption of
6 referendum).
7 (2) The calculation of the limitation under this
8 subsection shall not include any portion of debt allocated to
9 or by a school district for the support of an area
10 vocational-technical school or intermediate unit.
11 Section 2. This act shall take effect in 60 days.
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