(a) For the school year 1985-1986 and each school year thereafter, a school district experiencing a ten percent (10%) or greater loss in revenue from real estate taxes for the support of the public schools in any one school year, compared with real estate tax collections the previous year, due to the nonpayment of such taxes within sixty (60) days of the due date for the payment of such taxes during such school year or during the preceding school year by any businesses owning real estate within the boundaries of such school district, by reason of bankruptcy proceedings under Chapter 7, 11 or 13 of the Bankruptcy Code (11 U.S.C. § 101 et seq.) shall qualify for temporary special aid under the provisions of this section for a period of two years as provided for in subsection (b).

(b) Such temporary special aid shall be equal to the amount of lost real estate tax revenues provided for in subsection (a), payable to the school district during the school year in which such loss due to bankruptcy proceedings is suffered, plus an amount equal to fifty percent (50%) of such amount payable to the school district during the succeeding school year. Such temporary special aid shall be paid only once for each such bankruptcy proceeding and only upon the condition that the school district tax rates which were in effect at the time of the bankruptcy proceeding are not reduced. A school district which suffered the loss in real estate tax revenues provided for in subsection (a) during the 1985-1986 or the 1986-1987 school year shall be eligible to receive its first payment of temporary special aid during the 1986-1987 school year.

(c) The temporary special aid provided for in this section shall be paid from undistributed equalized subsidy for basic education funds to the extent that such funds are available. Beginning with payments made during the 1987-1988 school year and each school year thereafter, the special aid authorized by this section shall be paid from any funds not expended, encumbered or committed from appropriations for grants and subsidies made to the Department of Education: Provided, that no funds available from appropriations for library-related activities may be used for these payments.

(d) Deleted by 1993, June 7, P.L. 49, No. 16, § 18, effective July 1, 1993.

(e) Nothing contained in this section shall disqualify a school district from receiving temporary special aid due to real property reassessments provided for in section 2502.10:¹ Provided, however, That reassessments resulting from bankruptcy proceedings shall not qualify a school district for the temporary special aid provided for in section 2502.10 during the same school year in which such school district receives temporary special aid for such revenue loss according to the provisions of this section.

(f) The special payments authorized by this section and section 2502.10 shall be paid from a restricted revenue account, which is hereby established, for such payments. Funds shall be transferred by the Secretary of the Budget only to the extent necessary to make the payments authorized by this section and section 2502.10.

(g) The Secretary of the Budget shall provide to the Chairman and Minority Chairman of the Senate Appropriations Committee and the Chairman and Minority Chairman of the House Appropriations Committee information concerning the appropriation from which funds have been transferred and the amounts transferred. The Department of Education shall have a written policy concerning the method for making payments to school districts, including the date by which payments shall be made each fiscal year.