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        PRIOR PRINTER'S NOS. 676, 1719                PRINTER'S NO. 1897

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 17 Session of 1999


        INTRODUCED BY STEVENSON, WILLIAMS, GEIST, FAIRCHILD, GORDNER,
           CALTAGIRONE, ORIE, LAUGHLIN, CORNELL, FEESE, ROBINSON,
           KAISER, FARGO, READSHAW, WALKO, BATTISTO, MARKOSEK, HERMAN,
           PETRONE, FICHTER, GEORGE, MANDERINO, ROSS, RUBLEY, VANCE,
           NAILOR, HENNESSEY, PLATTS, DRUCE, SEYFERT, BELARDI, MUNDY,
           SEMMEL, STERN, SCRIMENTI, ARMSTRONG, TRAVAGLIO, B. SMITH,
           McCALL, PETRARCA, ARGALL, BENNINGHOFF, SCHRODER, HERSHEY,
           E. Z. TAYLOR, DeLUCA, DAILEY, STAIRS, BAKER, SURRA, RAYMOND,
           MICOZZIE, HESS, MASLAND, KENNEY, SAYLOR, ZUG, COLAFELLA,
           MANN, DALEY, KREBS, JAMES, SNYDER, S. MILLER, BUNT, WILT,
           SOLOBAY, CLYMER, HARHAI, RAMOS, MARSICO, PISTELLA, STABACK,
           DALLY, SANTONI, TULLI, MAHER, STETLER, DERMODY, ROEBUCK,
           MICHLOVIC, SERAFINI, L. I. COHEN, BROWNE AND FLICK,
           MARCH 2, 1999

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 7, 1999

                                     AN ACT

     1  Amending the act of June 14, 1961 (P.L.324, No.188), entitled
     2     "An act relating to the establishment, operation and
     3     maintenance of the State Library and public libraries in the
     4     Commonwealth; amending, revising, consolidating and changing
     5     the laws relating thereto; imposing duties upon public
     6     officers; providing for State and local cooperation and
     7     assistance in the establishment and maintenance of libraries;
     8     prescribing penalties; and repealing existing laws," further
     9     providing for State-aid to local libraries and library
    10     systems.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 302 of the act of June 14, 1961 (P.L.324,
    14  No.188), known as The Library Code, amended December 9, 1980
    15  (P.L.1125, No.200), is amended to read:


     1     Section 302.  Definitions.--As used in this article--
     2     (1)  "Basic Standards."  The basic standards are standards
     3  promulgated by the State Librarian and approved by the Advisory
     4  Council on Library Development, in compliance with sections
     5  201(15) and 303, which must be achieved by a local library to
     6  qualify for the State-aid authorized by section 303(1) and (7)
     7  and by a branch library or a bookmobile to qualify for the
     8  State-aid authorized by section 303(7). The standards shall be
     9  those deemed essential to a library, branch or bookmobile for it
    10  to fulfill the definition of local library stated in section
    11  102(1).
    12     (2)  "Direct Service Area."  The municipality or
    13  municipalities to which the governing body of a library is
    14  responsible for extending all its library services without
    15  charge.
    16     (3)  "Financial Effort."  The sum expended annually by a
    17  local library for the establishment, operation and maintenance
    18  of library services which derives from local taxes, gifts,
    19  endowments and other local sources, as may be provided under
    20  rules and regulations adopted by the Advisory Council on Library
    21  Development, and which is used to determine eligibility for
    22  State-aid.
    23     (4)  "Financial Effort Equal to One-half Mill."  The
    24  financial effort equal to one-half mill times the market value
    25  of taxable property, as determined by the State Tax Equalization
    26  Board, in the municipalities for which aid is claimed or in the
    27  direct service area of a local library, whichever is applicable.
    28     (5)  "Financial Effort Equal to One-quarter Mill."  The
    29  financial effort equal to one-quarter mill times the market
    30  value of taxable property, as determined by the State Tax
    19990H0017B1897                  - 2 -

     1  Equalization Board, in the municipalities for which aid is
     2  claimed or in the direct service area of a local library,
     3  whichever is applicable.
     4     (5.1)  "Local Government Support."  Support from a
     5  municipality within a direct service area for the normal
     6  recurring operating costs of a library or a library system
     7  serving that direct service area from appropriations, general
     8  purpose taxes, special library taxes or direct payment of any
     9  library expense. The term shall not include costs of shared
    10  services, in-kind costs or employment program costs.
    11     (6)  "Minimum Standards."  Standards promulgated by the State
    12  Librarian and approved by the Advisory Council on Library
    13  Development, in compliance with sections 201(15) and 303, which
    14  must be achieved by a local library or a library system to
    15  qualify for aid [authorized by section 303(2)] under section
    16  303.
    17     (7)  "Per Capita."  Amounts determined on the basis of either
    18  the latest official United States Census report or the
    19  population upon which the 1979-1980 State-aid payment was based,
    20  whichever is greater. Beginning with the 1999-2000 fiscal year,
    21  the term shall mean the most recent official United States
    22  Census report for purposes of calculating payment under section
    23  303(b)(1.1) and (2.1).
    24     (8)  "Surplus Financial Effort."  The financial effort which
    25  is in excess of a financial effort equal to one-half mill on
    26  market value in the direct service area or two dollars ($2) per
    27  capita for each person residing in the direct service area of
    28  the local library, whichever is less.
    29     Section 2.  Section 303 of the act, amended July 10, 1985
    30  (P.L.195, No.50) and June 30, 1989 (P.L.71, No.18), is amended
    19990H0017B1897                  - 3 -

     1  to read:
     2     Section 303.  State-aid.--(a)  Beginning in the 1985-1986
     3  fiscal year and through the 1998-1999 fiscal year, in each year
     4  that the Commonwealth's total annual appropriation for the
     5  system of State-aid established by section 301 equals or exceeds
     6  seventeen million five hundred thousand dollars ($17,500,000),
     7  two and three-quarters percent (2.75%) of said appropriation
     8  shall first be allocated as equalization aid, as provided for in
     9  clause (6) of subsection (b) and the remainder of said
    10  appropriation shall then be allocated according to the
    11  percentages established in clauses (1), (2), (3), (4), (5) and
    12  (7) of subsection (b).
    13     (b)  [Subject to the limitations in subsection (a),] State-
    14  aid shall be paid when a library achieves the applicable
    15  standards determined by counseling with the State Librarian
    16  pursuant to the advice and recommendations of the Advisory
    17  Council on Library Development, or submits plans as set forth in
    18  section 304 of this act leading to the achievement of such
    19  standards, and makes a minimum financial effort as follows,
    20  except that no library receiving State-aid prior to and at time
    21  of the approval of this act shall receive less State-aid as a
    22  result of the provisions hereof notwithstanding that such
    23  library has not accepted the provisions of this act:
    24     (1)  Basic Aid to Local Libraries.  [Twenty-five] For
    25  eligible fiscal years up to and through the 1998-1999 fiscal
    26  year, twenty-five percent (25%) of the Commonwealth's total
    27  annual appropriation for the system of State-aid established by
    28  section 301, or a minimum of twenty-five cents (25¢) per capita
    29  for each person residing in the municipalities of the libraries
    30  which qualify for basic aid, shall be allocated as basic aid.
    19990H0017B1897                  - 4 -

     1     Any local library which makes a minimum financial effort
     2  equal to one-half mill, for the municipalities on behalf of
     3  which it applies for aid, or two dollars ($2) per capita for
     4  each person residing in those municipalities, whichever is less
     5  and achieves the basic standards, shall qualify for basic State-
     6  aid. Such aid shall not be less than twenty-five cents (25¢) for
     7  each person residing in the municipalities. However, when the
     8  allocation for basic aid exceeds the amount necessary to pay the
     9  minimum rate, the entire allocation shall be distributed at a
    10  per capita rate which shall be determined by dividing the
    11  allocation by the number of persons in the Commonwealth on
    12  behalf of which local libraries and library systems apply and
    13  qualify for basic aid: Provided, That in the first year in which
    14  a library applies for State-aid it shall qualify by making a
    15  minimum financial effort equal to one-quarter mill, or one
    16  dollar ($1) per capita for each person residing in the
    17  municipalities whichever is less.
    18     In each of the succeeding five years, such library shall
    19  qualify for maximum State-aid only when it increases its
    20  financial effort by the following scale of percentages of the
    21  difference between the financial effort with which such library
    22  initially qualified for State-aid and a financial effort equal
    23  to one-half mill, or two dollars ($2) per capita for each person
    24  residing in the municipalities for which it applies for aid,
    25  whichever is less:
    26     1st succeeding year--20 percent,
    27     2nd succeeding year--40 percent,
    28     3rd succeeding year--60 percent,
    29     4th succeeding year--80 percent,
    30     5th succeeding year--100 percent.
    19990H0017B1897                  - 5 -

     1  But where the increase in any year is less than the percentage
     2  specified above, the amount of State-aid shall be reduced by a
     3  percentage equal to one-fifth of the percentage which the
     4  difference between the required increase and the actual increase
     5  bears to the required increase multiplied by the number of years
     6  of participation in State-aid beyond the first year.
     7     After the fifth succeeding year, a local library shall not be
     8  eligible for further State-aid unless it makes a financial
     9  effort equal to one-half mill for the municipalities on behalf
    10  of which it applies for aid, or two dollars ($2) per capita for
    11  each person residing in those municipalities, whichever is less.
    12     (1.1)  Quality Libraries Aid.
    13     (i)  Beginning with fiscal year 1999-2000 and each fiscal
    14  year thereafter, qualifying local libraries and library systems
    15  shall receive Quality Libraries Aid to be allocated from the sum
    16  total of a hold harmless amount plus an annual supplement, both
    17  amounts to be derived from the Commonwealth's annual
    18  appropriation for grants to local libraries and library systems.
    19  The hold harmless amount for Quality Libraries Aid shall be the
    20  amount allocated under clause (1) above for Basic Aid to Local
    21  Libraries for fiscal year 1998-1999 from the amount allocated
    22  from the Commonwealth's annual appropriation for grants to local
    23  libraries and library systems. For fiscal year 1999-2000, the
    24  annual supplement shall be forty-seven percent (47%) of any
    25  increase in the Commonwealth's annual appropriation for grants
    26  to local libraries and library systems above the amount
    27  appropriated for fiscal year 1998-1999. For subsequent fiscal
    28  years, the annual supplement for Quality Libraries Aid shall be
    29  specified in the Commonwealth's annual appropriation for grants
    30  to local libraries and library systems within the General
    19990H0017B1897                  - 6 -

     1  Appropriations Act for that fiscal year.
     2     (ii)  Quality Libraries Aid shall be allocated to qualifying
     3  local libraries and library systems on a per capita basis in the
     4  following manner: The annual allocation of funds available for
     5  Quality Libraries Aid shall be divided by the total population
     6  on which all libraries and library systems qualify for State-aid
     7  to yield a per capita amount of Quality Libraries Aid. The per
     8  capita amount of Quality Libraries Aid shall then be multiplied
     9  by the total population residing within the municipalities
    10  served by a library or library system which qualifies for aid.
    11     (iii)  To qualify, a local library or library system must
    12  make a minimum financial effort of five dollars ($5) per capita
    13  for each person residing in the municipalities based on which it
    14  qualifies for aid.
    15     (iv)  Any local library or library system that received
    16  State-aid under clause (1) above for fiscal year 1998-1999 shall
    17  have up to three years to make the minimum financial effort of
    18  five dollars ($5) per capita but must annually for each of those
    19  three years increase its minimum financial effort over that made
    20  in the preceding fiscal year in order to qualify for Quality
    21  Libraries Aid.
    22     (v)  Any local library or library system that did not receive
    23  State-aid under clause (1) above for fiscal year 1998-1999 must
    24  make the minimum financial effort of five dollars ($5) per
    25  capita in order to qualify for Quality Libraries Aid.
    26     (vi)  Any local library or library system which applies for
    27  State-aid on behalf of an economically distressed municipality
    28  as defined in clause (6) of this subsection must expend a
    29  minimum of two dollars ($2) per capita for the residents of the
    30  municipality.
    19990H0017B1897                  - 7 -

     1     (vii)  Except for the population of municipalities considered
     2  economically distressed, beginning with fiscal year 2002-2003,
     3  all libraries and library systems which received State-aid in
     4  fiscal year 1998-1999 must make a minimum financial effort of
     5  five dollars ($5) per capita to qualify for Quality Libraries
     6  Aid.
     7     (1.2)  To receive aid under clause (1.1) above, the local
     8  library or library system must meet the following minimum
     9  standards:
    10     (i)  Participate in the Access Pennsylvania Statewide Library
    11  Card Program.
    12     (ii)  Lend materials free of charge on a reciprocal basis to
    13  all types of libraries in this Commonwealth.
    14     (iii)  Provide interlibrary loans to residents of the
    15  library's direct service area free of charge.
    16     (iv)  Be open for service at least twenty-six hours per week
    17  during hours best-suited to the needs of residents of its
    18  service area, to include at least six hours during the weekend
    19  period beginning on Saturday and ending on Sunday. Weekend hours
    20  may be reduced to four hours during time periods as community-
    21  use patterns warrant for ten weeks per year.
    22     (v)  The library director shall annually attend at least
    23  eight hours of continuing education programs approved by the
    24  Office of Commonwealth Libraries.
    25     (2)  Incentive Aid to Local Libraries.  [Twenty-five] For
    26  eligible fiscal years up to and through the 1998-1999 fiscal
    27  year, twenty-five percent (25%) of the Commonwealth's total
    28  annual appropriation for the system of State-aid established by
    29  section 301, or a minimum of twenty-five cents (25¢) per capita
    30  for each person residing in the direct service areas of the
    19990H0017B1897                  - 8 -

     1  libraries which qualify for incentive aid, shall be allocated as
     2  incentive aid.
     3     Any local library or library system which makes a minimum
     4  financial effort equal to one-half mill, or two dollars ($2) per
     5  capita for each person residing in its direct service area,
     6  whichever is less and fulfills the minimum standards for local
     7  libraries or the minimum standards for library systems,
     8  whichever is applicable, shall qualify for incentive aid, which
     9  shall be in addition to all other amounts of aid provided in
    10  this section. Each qualifying library or library system shall
    11  receive incentive aid up to fifty cents (50¢) for each one
    12  dollar ($1) of surplus financial effort but when fifty cents
    13  (50¢) per dollar of surplus financial effort is more than
    14  twenty-five cents (25¢) per capita the minimum incentive aid
    15  shall be twenty-five cents (25¢) per capita for each person
    16  residing in the direct service area. However, if after paying
    17  the minimum amount set forth in this clause there is a balance
    18  in the allocation, the balance shall be prorated among the
    19  libraries and library systems which qualify for a larger amount
    20  of aid at the rate of fifty cents (50¢) for each one dollar ($1)
    21  of surplus financial effort rather than at the rate of twenty-
    22  five cents (25¢) per capita.
    23     (2.1)  Incentive For Excellence Aid.
    24     (i)  Beginning with fiscal year 1999-2000 and each fiscal
    25  year thereafter, qualifying local libraries and library systems
    26  shall receive an Incentive For Excellence Aid to be allocated
    27  from the sum total of a hold harmless amount plus an annual
    28  supplement, both amounts to be derived from the Commonwealth's
    29  annual appropriation for grants to local libraries and library
    30  systems. The hold harmless amount for Incentive For Excellence
    19990H0017B1897                  - 9 -

     1  Aid shall be the amount allocated under clause (2) above for
     2  Incentive Aid to Local Libraries for fiscal year 1998-1999 from
     3  the amount allocated from the Commonwealth's annual
     4  appropriation for grants to local libraries and library systems.
     5  For fiscal year 1999-2000, the annual supplement shall be fifty-
     6  three percent (53%) of any increase in the Commonwealth's annual
     7  appropriation for grants to local libraries and library systems
     8  above the amount appropriated for fiscal year 1998-1999. For
     9  subsequent fiscal years, the annual supplement for Incentive For
    10  Excellence Aid shall be specified in the Commonwealth's annual
    11  appropriation for grants to local libraries and library systems
    12  within the General Appropriations Act for that fiscal year.
    13     (ii)  To qualify, a local library or library system must make
    14  a financial effort greater than five dollars ($5) per capita for
    15  each person residing in the municipalities on behalf of which it
    16  applies for aid and meet the minimum standards for local
    17  libraries or library systems standards.
    18     (iii)  Incentive For Excellence Aid shall be allocated to
    19  local libraries and library systems in the following manner: The
    20  annual allocation of funds available for Incentive For
    21  Excellence Aid shall be allocated proportionately to qualifying
    22  local libraries or library systems for each one dollar ($1) per
    23  capita or portion thereof a local library or library system
    24  shows in financial effort between five dollars ($5) and seven
    25  dollars and fifty cents ($7.50) per capita.
    26     (iv)  A local library or library system shall not use
    27  Incentive For Excellence funds to reduce its financial effort.
    28     (2.2)  Beginning with fiscal year 1999-2000, and each fiscal
    29  year thereafter, to qualify for aid under clause (2.1) above,
    30  the local library or member library within a library system must
    19990H0017B1897                 - 10 -

     1  meet the following minimum standards:
     2     (i)  Expend no less than twelve percent (12%) of the total
     3  operating budget of the library on materials. A local library or
     4  member library within a library system that expends more than
     5  twelve percent (12%) in the year in which it qualified for
     6  Incentive for Excellence Aid shall increase the total amount
     7  expended on collection each succeeding year by no less than five
     8  percent (5%) or the percentage increase in the appropriation for
     9  Improvement of Library Services, whichever is less.
    10     (ii)  Be open for full services at least forty-five hours per
    11  week with at least seven of these hours during the weekend
    12  period beginning on Saturday and ending on Sunday. A local
    13  library or member library within a library system serving a
    14  population below seven thousand (7,000) shall be open at least
    15  thirty-five hours per week with at least seven of these hours
    16  during the weekend period beginning on Saturday and ending on
    17  Sunday. Libraries may reduce weekend hours to four hours for ten
    18  weeks per year during periods when community use patterns
    19  warrant. A LOCAL LIBRARY OR MEMBER LIBRARY WITHIN A LIBRARY       <--
    20  SYSTEM MAY REDUCE TOTAL WEEKLY HOURS BY THREE HOURS PER WEEK
    21  DURING THE TEN-WEEK PERIOD OF REDUCED SATURDAY AND SUNDAY HOURS
    22  IF APPROVED BY THE STATE LIBRARIAN.
    23     (iii)  Require at least six hours of continuing education
    24  every two years for paid staff working at least twenty hours per
    25  week, in direct support of the library service.
    26     (3)  County Libraries.  [Ten] For eligible fiscal years up to
    27  and through the 1998-1999 fiscal year, ten percent (10%) of the
    28  Commonwealth's total annual appropriation for the system of
    29  State-aid established by section 301 shall be allocated as aid
    30  to county libraries. For fiscal year 1999-2000 and each fiscal
    19990H0017B1897                 - 11 -

     1  year thereafter, aid to county libraries shall be allocated from
     2  a hold harmless amount to equal that amount allocated for aid to
     3  county libraries for fiscal year 1998-1999 from the
     4  Commonwealth's annual appropriation for grants to local
     5  libraries and library systems. For fiscal years subsequent to
     6  1999-2000, any increase over the hold harmless amount for county
     7  libraries shall be specified as an annual supplement in the
     8  Commonwealth's annual appropriation for grants to local
     9  libraries and library systems within the General Appropriations
    10  Act for that fiscal year. Funds allocated for county libraries
    11  shall be distributed according to the provisions of this clause.
    12     In the case of a county library of a second, second A, third,
    13  fourth, fifth, sixth, seventh or eighth class county, State-aid
    14  shall be given in an amount measured by the amount appropriated
    15  by the county government from county moneys, either from the
    16  General Fund or a special library tax or other sources, for the
    17  support and maintenance of the county library, and shall be
    18  determined as follows:
    19                                      Percentage of Aid Calculated
    20         Class of County                on County Appropriation
    21               2                                 15%
    22        2A and 3                                 20%
    23               4                                 25%
    24               5                                 33%
    25               6                                 50%
    26               7                                 75%
    27               8                                125%
    28     The amount to be paid by the Commonwealth for the maintenance
    29  of any county library that qualifies under this clause shall, in
    30  any year, be not less than eight thousand dollars ($8,000)
    19990H0017B1897                 - 12 -

     1  whenever the applicable percentage of aid calculated on the
     2  county government's appropriation amounts to more than eight
     3  thousand dollars ($8,000). If the applicable percentage of aid
     4  calculated on the county government's appropriation amounts to
     5  less than eight thousand dollars ($8,000), then the county
     6  library shall receive such lesser amount. If the allocation for
     7  this category of aid is less than the total amount for which all
     8  county libraries qualify, the libraries shall be paid the
     9  minimum amount of eight thousand dollars ($8,000) or such lesser
    10  amount as may be necessary. If the allocation is greater than
    11  the total amount of aid for which county libraries qualify, the
    12  balance shall be added to the amount of aid to be distributed
    13  under clause (7) of this subsection. A report of the expenditure
    14  of such State moneys shall be made annually to the county
    15  government and the State Librarian in such form as may be
    16  required. County libraries may also apply for additional amounts
    17  of State-aid under clauses [(1) and (2)] (1.1) and (1.2) above,
    18  and clause (7) following.
    19     Payment of aid to county libraries shall be made to the board
    20  of library directors in charge of each qualifying library.
    21     (4)  District Library Centers.  [Thirty] For eligible fiscal
    22  years up to and through the 1998-1999 fiscal year, thirty
    23  percent (30%) of the Commonwealth's total annual appropriation
    24  for the system of State-aid established by section 301, or a
    25  minimum of twenty-five cents (25¢) per capita, shall be
    26  allocated as aid for district library centers. For fiscal year
    27  1999-2000 and each fiscal year thereafter, aid to District
    28  Library Centers shall be allocated from a hold harmless amount
    29  to equal that amount allocated for aid to District Library
    30  Centers for fiscal year 1998-1999 from the amount allocated from
    19990H0017B1897                 - 13 -

     1  the Commonwealth's annual appropriation for grants to local
     2  libraries and library systems. For fiscal years subsequent to
     3  1999-2000, any increase over the hold harmless amount for
     4  District Library Centers shall be specified as an annual
     5  supplement in the Commonwealth's annual appropriation for grants
     6  to local libraries and library systems within the General
     7  Appropriations Act for that fiscal year. Funds allocated for
     8  District Library Centers shall be distributed according to the
     9  provisions of this clause.
    10     Any library designated by the State Librarian to serve as a
    11  district library center shall qualify for an additional amount
    12  of State-aid. The rate of aid shall be determined by dividing
    13  the total amount allocated for district library centers by the
    14  total population of the State, but in no year shall that rate be
    15  less than twenty-five cents (25c) per capita. The amount of aid
    16  to be paid each district library center shall be determined by
    17  multiplying the per capita rate by the number of persons
    18  residing in the district.
    19     (5)  Regional Library Resource Centers.  [Five] For eligible
    20  fiscal years up to and through the 1998-1999 fiscal year, five
    21  percent (5%) of the Commonwealth's annual appropriation for the
    22  system of State-aid established by section 301 shall be
    23  allocated for aid to regional library resource centers.
    24     Any library designated by the State Librarian to serve as a
    25  regional library resource center, shall qualify for additional
    26  State-aid. The allocation shall be divided equally among the
    27  libraries so designated, but in no year shall the amount be less
    28  than one hundred thousand dollars ($100,000) per designated
    29  library. For fiscal year 1999-2000 and each fiscal year
    30  thereafter, aid to Regional Library Resource Centers shall be
    19990H0017B1897                 - 14 -

     1  allocated from a hold harmless amount to equal that amount
     2  allocated for aid to Regional Library Resource Centers for
     3  fiscal year 1998-1999 from the amount allocated from the
     4  Commonwealth's annual appropriation for grants to local
     5  libraries and library systems. For fiscal years subsequent to
     6  1999-2000, any increase over the hold harmless amount for
     7  Regional Library Resource Centers shall be specified as an
     8  annual supplement in the Commonwealth's annual appropriation for
     9  grants to local libraries and library systems within the General
    10  Appropriations Act for that fiscal year. Funds allocated for
    11  Regional Library Resource Centers shall be distributed according
    12  to the provisions of this clause.
    13     (6)  Equalization Aid.  Beginning in the 1985-1986 fiscal
    14  year and through the 1998-1999 fiscal year, in each year that
    15  the Commonwealth's total annual appropriation for the system of
    16  State-aid established by section 301 equals or exceeds seventeen
    17  million five hundred thousand dollars ($17,500,000), two and
    18  three-quarters percent (2.75%) of said appropriation shall first
    19  be allocated as equalization aid.
    20     Any local library or library system which achieves or exceeds
    21  applicable basic standards, maintains or exceeds its financial
    22  effort of the preceding year and is supported by a municipality
    23  that is economically distressed by any one or more of the
    24  following criteria shall qualify for equalization aid. For
    25  purposes of determining eligibility for equalization aid, an
    26  economically distressed municipality shall be: (i) a city,
    27  borough, town or township having a market value per capita below
    28  the fifth percentile of all such cities, boroughs, towns and
    29  townships, as certified annually by the State Tax Equalization
    30  Board; (ii) located in a county having a personal income per
    19990H0017B1897                 - 15 -

     1  capita below the fifteenth percentile of all counties, as
     2  certified annually by the Department of Revenue; or (iii)
     3  located in a county having an annual average unemployment rate
     4  above the seventieth percentile of all counties, as determined
     5  annually by the Department of Labor and Industry. Population
     6  data to be used for determining market value per capita and
     7  personal income per capita, as provided for in this clause,
     8  shall be the latest available data from the Federal Bureau of
     9  Census for the direct service area of the local library or
    10  library system.
    11     In the case of a library or library system that is supported
    12  by an economically distressed municipality but that fails to
    13  maintain or exceed its financial effort of the preceding year,
    14  the library may still qualify for equalization aid if the State
    15  Librarian accepts evidence that the library or municipality did
    16  not attempt to substitute State funds for local effort.
    17     Beginning in the 1985-1986 fiscal year, twenty percent (20%)
    18  of the annual allocation for equalization aid shall first be
    19  distributed in equal amounts to all local libraries and members
    20  of library systems which qualify for such aid, as determined in
    21  accordance with the provisions of this clause. The remainder of
    22  the annual allocation shall be distributed on a per capita basis
    23  to each local library and library system which qualifies for
    24  such aid, as determined in accordance with the provisions of
    25  this clause, by dividing the number of persons residing in the
    26  direct service area of each such local library or library system
    27  by the total number of such persons residing in the direct
    28  service areas of all qualifying local libraries or library
    29  systems, and multiplying the result by the amount of the
    30  allocation to be distributed on a per capita basis.
    19990H0017B1897                 - 16 -

     1     No local library or library system shall, as a result of the
     2  provisions of this clause, receive in any year more than one-
     3  third of the total annual appropriation for equalization aid.
     4  During the 1985-1986 fiscal year and each fiscal year thereafter
     5  that the Commonwealth's total annual appropriation for the
     6  system of State-aid established by section 301 exceeds seventeen
     7  million five hundred thousand dollars ($17,500,000), no local
     8  library or library system shall receive less equalization aid as
     9  a result of the provisions of this clause than such local
    10  library or library system received for equalization aid during
    11  the 1984-1985 fiscal year. For fiscal year 1999-2000 and each
    12  fiscal year thereafter, Equalization Aid shall be allocated from
    13  a hold harmless amount to equal that amount allocated for
    14  Equalization Aid for fiscal year 1998-1999 from the amount
    15  allocated from the Commonwealth's annual appropriation for
    16  grants to local libraries and library systems. For fiscal years
    17  subsequent to 1999-2000, any increase over the hold harmless
    18  amount for Equalization Aid shall be specified as an annual
    19  supplement in the Commonwealth's annual appropriation for grants
    20  to local libraries and library systems within the General
    21  Appropriations Act for that fiscal year. Funds allocated for
    22  Equalization Aid shall be distributed according to the
    23  provisions of this clause.
    24     (7)  Equal Distribution Grants to Local Libraries and Library
    25  Systems and Certain District Library Centers.  [Five] For
    26  eligible fiscal years up to and through the 1998-1999 fiscal
    27  year, five percent (5%) of the Commonwealth's annual
    28  appropriation for the system of State-aid established by section
    29  301, and all funds transferred from the county library
    30  allocation after the county libraries have been paid the total
    19990H0017B1897                 - 17 -

     1  amounts for which they qualify, shall be allocated as
     2  hereinafter provided: (i) five cents (5¢) per capita for each
     3  person residing in the entire district for each district library
     4  center which has a population in its direct service area as a
     5  local or county library which is twelve percent (12%) or less of
     6  the population of the entire designated direct service area;
     7  (ii) the balance as equal grants to local libraries and library
     8  systems which qualify for aid under clause (1) above. These
     9  grants shall be determined by dividing the total amount of money
    10  allocated by the number of local libraries, branch libraries and
    11  bookmobiles in the Commonwealth which achieve or exceed the
    12  applicable basic standards. Each library system shall receive an
    13  equal grant for each qualifying member local library, branch
    14  library and bookmobile. Each local library shall receive an
    15  equal grant for the central library and each qualifying branch
    16  library and bookmobile. For fiscal year 1999-2000 and each
    17  fiscal year thereafter, Equal Distribution Grants to Local
    18  Libraries and Library Systems and Certain District Library
    19  Centers shall be allocated from a hold harmless amount to equal
    20  that amount allocated for Equal Distribution Grants to Local
    21  Libraries and Library Systems and Certain District Library
    22  Centers for fiscal year 1998-1999 from the amount allocated from
    23  the Commonwealth's annual appropriation for grants to local
    24  libraries and library systems. For fiscal years subsequent to
    25  1999-2000, any increase over the hold harmless amount for Equal
    26  Distribution Grants to Local Libraries and Library Systems and
    27  Certain District Library Centers shall be specified as an annual
    28  supplement in the Commonwealth's annual appropriation for grants
    29  to local libraries and library systems within the General
    30  Appropriations Act for that fiscal year. Funds allocated for
    19990H0017B1897                 - 18 -

     1  Equal Distribution Grants to Local Libraries and Library Systems
     2  and Certain District Library Centers shall be distributed
     3  according to the provisions of this clause.
     4     (c)  In any fiscal year in which the Commonwealth's annual
     5  appropriation for grants to public libraries and library systems
     6  is less than the amount appropriated for fiscal year 1998-1999,
     7  then the amount allocated for clauses (1.1), (2.1), (3), (4),
     8  (5), (6) and (7) of subsection (b) shall be reduced
     9  proportionately.
    10     (d)  If necessary, the Department of Education may transfer
    11  funds among the allocations listed in clauses (1.1), (2.1), (3),
    12  (4), (5), (6) and (7) of subsection (b), provided that the
    13  aggregate amount transferred into or out of each allocation
    14  during a fiscal year shall not exceed five percent (5%) of the
    15  amount specifically allocated for that clause.
    16     Section 3.  Section 304 of the act is amended by adding a
    17  subsection to read:
    18     Section 304.  State Librarian to Approve Plans; District
    19  Library Center Cooperative Program; Referendum.--* * *
    20     (d)  No local library or library system plan for the use of
    21  Incentive for Excellence funds shall be approved if it projects
    22  a decrease in local government support for normal, recurring,
    23  operating costs from a previous level unless the State Librarian
    24  determines that the decrease is directly attributable to a gift
    25  or endowment to a library or that there is a substantial
    26  decrease in the financial ability of the municipality on behalf
    27  of which the library or library system applied for aid.
    28     Section 4.  The act is amended by adding a section to read:
    29     Section 305.  Implementation Schedule.--(a)  If a library or
    30  library system applying for State-aid in 1999-2000 fails to
    19990H0017B1897                 - 19 -

     1  comply with the standards under section 303, the library or
     2  library system shall not be eligible for funds under that
     3  section.
     4     (b)  The State Librarian may grant an extension of time to
     5  meet the standards under section 303 (b)(1.2) and (2.2) if:
     6     (1)  the library or library system is financially unable to
     7  comply at the time of payment; or
     8     (2)  a plan is accepted by the State Librarian indicating how
     9  the library or library system will comply, to include specifics
    10  regarding budget, timeline and how the library is working in
    11  good faith to achieve the standards.
    12     (c)  An extension by the State Librarian shall continue until
    13  the time of the submission of the 2000-2001 plan for use of
    14  State funds under this act.
    15     Section 5.  This act shall take effect July 1, 1999, or
    16  immediately, whichever is later.










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