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        PRIOR PRINTER'S NO. 1047                      PRINTER'S NO. 1877

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 894 Session of 2007


        INTRODUCED BY LEACH, BENNINGTON, CALTAGIRONE, DePASQUALE,
           FABRIZIO, FREEMAN, GEORGE, GRUCELA, HENNESSEY, JAMES,
           JOSEPHS, McCALL, M. O'BRIEN, PALLONE, ROEBUCK, ROSS, RUBLEY,
           SCHRODER, McILVAINE SMITH, STURLA, THOMAS, VITALI,
           YOUNGBLOOD, WAGNER AND KORTZ, MARCH 22, 2007

        AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 11, 2007

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing for referendum or
     6     public hearing required prior to construction or lease.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 701.1 of the act of March 10, 1949
    10  (P.L.30, No.14), known as the Public School Code of 1949,
    11  amended July 4, 2004 (P.L.536, No.70), is amended to read:
    12     Section 701.1.  Referendum or Public Hearing Required Prior
    13  to Construction or Lease.--Except where the approval of the
    14  electors is obtained to incur indebtedness to finance the
    15  construction of a school project, the board of school directors
    16  of any school district of the second, third or fourth classes,
    17  shall not construct, enter into a contract to construct or enter
    18  into a contract to lease a new school building or substantial

     1  addition to an existing school building without the consent of
     2  the electors obtained by referendum or without holding a public
     3  hearing as hereinafter provided. In the event that a new school
     4  building or a substantial addition to an existing building is to
     5  be constructed or leased, the school board shall, by a majority
     6  vote of all its members, authorize a maximum project cost and a
     7  maximum building construction cost to be financed by the
     8  district or amortized by lease rentals to be paid by the
     9  district. Building construction cost shall consist of the cost
    10  of all building construction including general construction
    11  costs, plumbing, heating, electrical, ventilating and other
    12  structural costs, equipment and fixtures and architectural and
    13  engineering fees relating thereto, but not including costs for
    14  site acquisition and development, rough grading to receive the
    15  building, sewage treatment facilities or equivalent capital
    16  contributions, and architectural and engineering fees relating
    17  thereto. Building construction cost shall not include the
    18  additional cost involved in the building construction of a
    19  school that meets the Leadership in Energy and Environmental
    20  Design standards as established and published by the United
    21  States Green Building Council. In all cases, a public hearing
    22  shall be held not later than thirty (30) days before the school
    23  district submits the initial building construction cost and
    24  operating cost estimates to the Department of Education for
    25  approval. Notice of the hearing shall be given not later than
    26  twenty (20) days before the date of the scheduled hearing. In
    27  the event that the maximum building construction cost
    28  authorization exceeds the aggregate building expenditure
    29  standard hereinafter specified, the aforesaid authorization of
    30  the school board shall be submitted to the electors of the
    20070H0894B1877                  - 2 -     

     1  school district for their approval within six (6) months prior
     2  to submission of the final building construction cost bids to
     3  the Department of Education for approval. Such referendum shall
     4  be held in the same manner as provided by law for the approval
     5  of the incurring of indebtedness by referendum. The question as
     6  submitted shall specify the maximum project cost, the maximum
     7  building construction cost and the annual sinking fund charge or
     8  lease rental to be incurred by the school district and the
     9  portion of such charge or rental expected to be reimbursed by
    10  the Commonwealth. If the final building construction cost bids
    11  to be submitted to the Department of Education for approval are
    12  less than the aggregate building expenditure standard hereafter
    13  specified but exceed by eight (8) per cent or more the initial
    14  building construction cost estimates submitted to the Department
    15  for approval, a second public hearing shall be held before the
    16  Department shall give its final approval.
    17     The applicable aggregate building expenditure standard shall
    18  be a total amount calculated for each building or substantial
    19  addition by multiplying the rated pupil capacity under the
    20  approved room schedule by the following: two thousand eight
    21  hundred dollars ($2,800) for each pupil of rated elementary
    22  capacity; four thousand two hundred dollars ($4,200) for each
    23  pupil of rated secondary capacity in grades seven, eight and
    24  nine and five thousand two hundred dollars ($5,200) for each
    25  pupil of rated secondary capacity in grades ten, eleven and
    26  twelve and five thousand two hundred dollars ($5,200) for each
    27  pupil of rated vocational-technical capacity in grades ten,
    28  eleven and twelve to not include the cost of equipment and
    29  fixtures in such vocational-technical schools: Provided,
    30  however, That each of the preceding per pupil amounts shall be
    20070H0894B1877                  - 3 -     

     1  adjusted by the Department of Education on July 1, 1974; and
     2  annually thereafter through July 1, 2003, by multiplying said
     3  amounts by the ratio of the composite construction cost index
     4  compiled and published by the United States Department of
     5  Commerce for the preceding calendar year to such index for the
     6  next preceding calendar year; and Further Provided, however,
     7  That each of the preceding per pupil amounts shall be adjusted
     8  by the Department of Education on July 1, 2004; and annually
     9  thereafter by multiplying said amounts by the ratio of the
    10  Building Cost Index published by the McGraw-Hill Companies for
    11  the preceding calendar year to such index for the next preceding
    12  calendar year. Rated elementary pupil capacity or rated
    13  secondary pupil capacity for any school building shall be the
    14  rated pupil capacity determined on the basis of the method used
    15  by the Department for school building reimbursement purposes
    16  during the school year 1971-1972.
    17     For purposes of this section:
    18     (1)  "Site acquisition" includes the cost of land and mineral
    19  rights, demolition and clearing, rights-of-way and related
    20  utility relocations, surveys and soils analysis, and the cost of
    21  all fees relating thereto.
    22     (2)  "Site development" includes excavation, grouting or
    23  shoring, special foundations for buildings, access roads to
    24  site, utilities on site, extension of utilities to site.
    25     (3)  "Equipment and fixtures" means property fixed or movable
    26  which is incidental and necessary to conduct the educational
    27  program, and includes, but is not limited to movable equipment
    28  such as desks, chairs, tables, portable physical education
    29  equipment, audio-visual equipment and science, homemaking,
    30  industrial art and business equipment and instructional
    20070H0894B1877                  - 4 -     

     1  materials and fixtures such as casework, laboratory equipment,
     2  kitchen equipment, auditorium seating and any other special
     3  fixtures or equipment required to conduct a particular
     4  educational program.
     5     (4)  "Substantial addition" means more than twenty (20) per
     6  centum of the area and replacement value of the structure to
     7  which the improvement is to be added.
     8     (5)  "OPERATING COST" MEANS BUILDING EXPENSES NECESSARY IN     <--
     9  THE OPERATION OF THE SCHOOL BUILDING, INCLUDING, BUT NOT LIMITED
    10  TO, INSULATION OF THE BUILDING STRUCTURE OR SYSTEMS, AUTOMATED
    11  OR COMPUTERIZED ENERGY CONTROL SYSTEMS, HEATING, VENTILATING,
    12  AIR CONDITIONING, LIGHTING OR ENERGY RECOVERY SYSTEMS AND ENERGY
    13  CONSERVATION MEASURES THAT PROVIDE UTILITY COST REDUCTIONS. THE
    14  TERM SHALL NOT INCLUDE THE COST ASSOCIATED WITH SCHOOL DISTRICT
    15  PERSONNEL OR STUDENT INSTRUCTION.
    16     Section 2.  This act shall take effect in 60 days.










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