PRINTER'S NO. 2006
No. 1577 Session of 2007
INTRODUCED BY CALTAGIRONE, CLYMER, DALEY, GEIST, HENNESSEY, REICHLEY, SANTONI, SEIP, SIPTROTH, SURRA AND THOMAS, JUNE 20, 2007
REFERRED TO COMMITTEE ON EDUCATION, JUNE 20, 2007
AN ACT 1 Amending the act of July 5, 1947 (P.L.1217, No.498), entitled 2 "An act to promote the education and educational facilities 3 of the people of the Commonwealth of Pennsylvania; creating a 4 State Public School Building Authority as a body corporate 5 and politic with power to construct, improve and operate 6 projects and to lease the same and to fix and collect fees, 7 rentals and charges for the use thereof; authorizing school 8 districts to enter into contracts to lease; authorizing and 9 regulating the issuance of bonds by said Authority; and 10 providing for the payment of such bonds and the rights of the 11 holders thereof; granting the right of eminent domain; 12 increasing the powers and duties of the Department of Public 13 Instruction; and providing that no debt of the Commonwealth 14 shall be incurred in the exercise of any of eminent domain; 15 increasing the powers and duties of the Department of Public 16 Instruction; and providing that no debt of the Commonwealth 17 shall be incurred in the exercise of any of the powers 18 granted under this act; and making an appropriation to said 19 Authority to pay expenses incident to its formation," further 20 providing for purposes and powers of the authority. 21 The General Assembly of the Commonwealth of Pennsylvania 22 hereby enacts as follows: 23 Section 1. Section 4 of the act of July 5, 1947 (P.L.1217, 24 No.498), known as the State Public School Building Authority 25 Act, amended or added April 20, 1949 (P.L.636, No.142), July 18, 26 1967 (P.L.175, No.50), December 17, 1982 (P.L.1372, No.314) and
1 March 23, 1984 (P.L.138, No.26), is amended to read: 2 Section 4. Purposes and General Powers.--The Authority is 3 created for the purpose of acquiring, financing, refinancing, 4 constructing, improving, furnishing, equipping, maintaining and 5 operating buildings for public school and educational 6 broadcasting facilities for use as a part of the public school 7 system of the Commonwealth of Pennsylvania under the 8 jurisdiction of the Department of Education. The Authority also 9 shall have for its purpose the acquiring, financing, 10 refinancing, construction, improvement, furnishing, equipping, 11 maintenance and operation of community college buildings. 12 The Authority is hereby granted and shall have and may 13 exercise all the powers necessary or convenient for the carrying 14 out of the aforesaid purposes, including but without limiting 15 the generality of the foregoing, the following rights and 16 powers: 17 (a) To have perpetual existence as a corporation; 18 (b) To sue and be sued, implead and be impleaded, complain 19 and defend, in all courts; 20 (c) To adopt, use and alter at will a corporate seal; 21 (d) To acquire, purchase, hold, lease as lessee, and use any 22 property real, personal or mixed, tangible or intangible, or any 23 interest therein, (necessary or desirable) for carrying out the 24 purposes of the Authority, and to sell, lease as lessor, 25 transfer and dispose of any property or any interest therein at 26 any time acquired by it; 27 (d.1) To finance projects by making loans to any eligible 28 school district or board of trustees of a community college, 29 which loans may be evidenced by and secured as may be provided 30 in loan agreements, mortgages, security agreements or any other 20070H1577B2006 - 2 -
1 contracts, instruments or agreements, which may contain such 2 provisions as the Authority shall determine necessary or 3 desirable for the security or protection of the Authority or its 4 bondholders. All such provisions shall be a part of the contract 5 with the holders of the bonds of the Authority issued with 6 respect to such project. 7 (e) To acquire by purchase, lease or otherwise, and to 8 construct, improve, maintain, repair and operate projects; 9 (f) To make by-laws for the management and regulations of 10 its affairs; 11 (g) To appoint officers, agents, employes and servants, to 12 prescribe their duties and to fix their compensation; 13 (h) To fix, alter, charge and collect rentals, and other 14 charges in respect of the facilities financed or for the 15 services rendered by the Authority or projects thereof, at 16 reasonable rates to be determined by it for the purpose of 17 providing for the payment of the expenses of the Authority, not 18 provided for by appropriation by the Commonwealth, or otherwise, 19 the acquiring, financing, refinancing, construction, 20 improvement, repair, equipping and furnishing, maintenance and 21 operation of projects and any facilities and properties, the 22 payment of the principal of, and interest on, any obligation, 23 and to fulfill the terms and provisions of any agreements made 24 with the purchasers or holders of any such obligations; 25 (i) To borrow money for the purpose of financing or 26 refinancing the cost of any project, make and issue negotiable 27 notes, bonds, refunding bonds and other evidences of 28 indebtedness or obligations (hereinafter called "bonds"), of the 29 Authority, and to secure the payment of such bonds, or any part 30 thereof, by pledge or deed of trust of all, or any of its 20070H1577B2006 - 3 -
1 revenues, rentals and receipts, and to make such agreements with 2 the purchasers or holders of such bonds, or with others in 3 connection with any such bonds, whether issued or to be issued 4 as the Authority shall deem advisable, and in general to provide 5 for the security for said bonds and the rights of the holders 6 thereof; 7 (j) To make contracts of every name and nature, and to 8 execute all instruments necessary or convenient for the carrying 9 on of its business; 10 (j.1) To enter into contracts with the board of school 11 directors of any school district, the members of which school 12 board are members of any nonprofit community corporation having 13 a Federal Communications Commission license for educational 14 broadcasting stations, for the purpose of acquiring, financing, 15 refinancing, constructing, improving, furnishing, equipping, 16 maintaining and operating these facilities as a part of the 17 public school system of the Commonwealth of Pennsylvania. 18 (k) Without limitation of the foregoing, to borrow money, 19 and accept grants from, and to enter into contracts, leases or 20 other transaction with, any Federal agency; 21 (l) To have the power of eminent domain; 22 (m) To pledge, hypothecate or otherwise encumber, all or any 23 of the revenues or receipts of the Authority as security for 24 all, or any of, the obligations of the Authority; 25 (n) To do all acts and things necessary or convenient to 26 carry out the powers granted to it by this act or any other 27 acts; 28 Provided, however, That the Authority shall have no power, at 29 any time or in any manner, to pledge the credit or taxing power 30 of the Commonwealth or any of its school districts or local 20070H1577B2006 - 4 -
1 sponsors or boards of trustees of community colleges, nor shall
2 any of its obligations or debts be deemed to be obligations of
3 the Commonwealth, or any of its school districts or local
4 sponsors or boards of trustees of any community college, nor
5 shall the Commonwealth or any of its school districts or local
6 sponsors or boards of trustees of any community college be
7 liable for the payment of principal or interest on such
8 obligations;
9 Provided, further, That all contracts between the Authority
10 and school districts shall be conditioned upon the preparation
11 of general plans for centralized design of physical plants, for
12 the orderly development of improved attendance areas[,] and
13 administrative units and for the improved housing of the public
14 schools of the Commonwealth. These plans shall be prepared
15 cooperatively by local, county and State school authorities, in
16 accordance with standards and regulations prescribed by the
17 Department. The Department shall have authority and its duty
18 shall be to review all construction projects to determine:
19 (1) The extent to which they conform to general county and
20 State plans;
21 (2) The amount of improvement to be brought about in
22 attendance areas and administrative units;
23 (3) The adequacy of the proposed building with respect to
24 educational design, location, usefulness for community
25 activities, safety, comfort and convenience;
26 (4) The ability of the local school district or districts to
27 amortize the cost of the project, and to defray the cost of
28 operation and maintenance.
29 No contract shall be executed between the Authority and
30 school districts without the specific written approval of the
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1 Department. 2 Provided further, That all contracts between the Authority 3 and local sponsors and/or boards of trustees of community 4 colleges and/or the Department of Public Instruction shall be 5 conditioned upon any approval of the State Board of Education or 6 the Department of Public Instruction required by the act of 7 August 24, 1963 (P.L.1132), known as the "Community College Act 8 of 1963." 9 Section 2. The amendment of the second proviso of section 4 10 of the act shall apply to contracts entered into on or after the 11 effective date of this section. 12 Section 3. This act shall take effect in 60 days. A19L64DMS/20070H1577B2006 - 6 -