1Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2act relating to the public school system, including certain
3provisions applicable as well to private and parochial
4schools; amending, revising, consolidating and changing the
5laws relating thereto," in grounds and buildings, further
6providing for approval by Department of Education of plans,
7etc. of buildings and exceptions; providing for
8accountability and reducing costs in construction process;
9further providing for limitation on new applications for
10Department of Education approval of school building projects;
<-11providing for interest on delayed reimbursement; and, in
12reimbursements by Commonwealth and between school districts,
13further providing for definitions, for approved reimbursable
14rental for leases hereafter approved and approved
15reimbursable sinking fund charges on indebtedness, for
16payments on account of leases hereafter approved and on
17account of sinking fund charges on indebtedness for school
18buildings hereafter constructed and for payments on account
19of building costs; and providing for lump sum reimbursement
20for construction or reconstruction.

21The General Assembly finds and declares that:

22(1) Recognizing challenges have developed and escalated
23over a period of years in the process of Commonwealth
24reimbursement for public school construction and
25reconstruction, which have caused delays in approvals by the

1Department of Education for reimbursement payments owed to
2school districts throughout this Commonwealth as well as the
3limitation on school district submission of new applications
4for Commonwealth reimbursement, and acknowledging that these
5challenges were born of an antiquated, complex and overly
6burdensome administrative process, as well as financially
7unsustainable Commonwealth construction and reconstruction
8reimbursement obligations, it is a matter of high priority
9that these challenges be addressed.

10(2) Therefore, it is the intent of the General Assembly
11to reform the existing process of Commonwealth reimbursement
12for public school construction and reconstruction to ensure
13that a modern, simplified and financially sustainable process
14is instituted.

15The General Assembly of the Commonwealth of Pennsylvania
16hereby enacts as follows:

17Section 1. Section 731 of the act of March 10, 1949 (P.L.30,
18No.14), known as the Public School Code of 1949, amended June
1927, 1973 (P.L.75, No.34), is amended to read:

20Section 731. Approval by Department of Plans, etc., of
21Buildings; Exceptions.--(a) The Department of Education, with
22respect to construction or reconstruction of public school
23buildings, shall have the power and its duties shall be:

24(1) To review all projects, plans and specifications for
25school building construction or reconstruction, and to make
26recommendations thereon to the General Assembly and the
27Governor: Provided, however, That approval of the Department of 
28Education shall not be required for projects, plans and 
29specifications for school construction projects for which 
30reimbursement from the Commonwealth is not requested;

1(2) To assist school districts in preplanning construction
2and reconstruction projects, and offer such architectural,
3engineering and financial advice as will enable the project to
4comply with the standards prescribed by the State Board of
5Education;

6(3) To hold hearings on any or all projects and subpoena
7witnesses, administer oaths, take testimony and compel the
8production of documents relevant to any investigation;

9(4) To act as liaison between the public, local school
10officials, the General Assembly, and the Governor on school
11building construction and reconstruction projects;

12(5) To receive and investigate complaints from the public or
13other source concerning any school building construction or
14reconstruction project;

15(6) To conduct investigations on any phase of school
16building construction or reconstruction projects.

17(7) To provide for an electronic database on its publicly
18accessible Internet website for the purpose of providing public
19access to information on public school construction and
20reconstruction projects, building purchases and charter school
21lease reimbursements submitted for the approval of, or approved
22by, the Department of Education. The electronic database shall
23indicate the date each application for reimbursement was
24submitted to the Department of Education and the date of
25approval for each step of the reimbursement process as outlined
26in section 731.2 of this act.

27(b) The Department of Education shall employ engineers,
28architects, financial advisors, and such other staff personnel
29as may be necessary for the proper performance of the duties of
30the Department with respect to construction or reconstruction of

1public school buildings.

2(c) No public school building shall be contracted for,
3constructed, or reconstructed, in any school district of the
4second, third, or fourth class until the plans and
5specifications therefor have been approved by the Department of
6Education[.

7When ordinary repairs are proposed, such as plastering,
8painting, replacement of floors, improvement of school grounds,
9repairing or providing walks, roadways or retaining walls, the
10cost of which in districts of the second class or in districts
11of the third and fourth class will not exceed fifteen thousand
12dollars ($15,000) per building, no approval shall be required.
13Where any structural change is involved, such as moving or
14adding doors, windows, partitions, making additions or any
15excavations, or any work which may affect the safety or health
16of the pupils, or any work which comes under the jurisdiction of
17another department of the Commonwealth, approval of the
18Department of Education shall be required regardless of the cost
19of such structural change.]:

20Provided, however, That approval of the Department of Education
21shall not be required for projects, plans and specifications for
22school construction projects for which reimbursement from the
23Commonwealth is not requested.

24(d) No school building shall be purchased by any school
25district until such purchase shall have been approved by the
26Department of Education. Such approval shall not be given unless
27the school building to be purchased and any approved structural
28changes or renovations meet the standards required to operate
29public school buildings of a similar age currently in use in the
30Commonwealth.

1Section 2. The act is amended by adding a section to read:

2Section 731.2. Accountability and Reducing Costs in
3Construction Process.--(a) No later than July 1, 2015, the
4department shall develop and implement a process, including
5standardized forms and procedures, which shall be used by school
6districts to apply for Commonwealth reimbursement for school
7construction and reconstruction projects and which shall be
8known as the Accountability and Reducing Costs in Construction
9Process. In developing the Accountability and Reducing Costs in
10Construction Process, the department shall separate the process
11into five (5) benchmark steps of department approval which shall
12be labeled one (1) through five (5) and shall minimally include
13the following:

14(1) Step 1 shall consist of the following:

15(i) project description;

16(ii) project justification; and

17(iii) a technical schematic design review conference with
18the department.

19(2) Step 2 shall consist of the following:

20(i) site acquisition, if applicable to the project;

21(ii) project accounting based on cost estimates; and

22(iii) a conference with the department to review completed
23construction documents, including bid specifications, drawings
24for the project and documentation regarding the fulfillment of
25State and local agency requirements.

26(3) Step 3 shall consist of the following:

27(i) project accounting based on costs for actual
28construction bids for which contracts shall be awarded; and

29(ii) project financing, including financing method and the
30calculation of the temporary reimbursable percent for the

1project. In calculating the temporary reimbursable percent, the
2department shall factor in a <-twenty (20) five (5) percentage
3point reduction which shall be utilized until the calculation of
4the permanent reimbursable percent is completed in Step 4.

5Approval through Step 3 shall initiate project reimbursement
6from the Commonwealth.

7(4) Step 4 shall consist of the following:

8(i) interim reporting of project modifications, including
9the reporting of change orders and supplemental contracts; and

10(ii) project accounting based on the final costs of a
11project after completion of the following:

12(A) construction of the project; and

13(B) payment for all construction or reconstruction work,
14unless the department has granted an exception.

15The calculation of the permanent reimbursable percent for a
16project shall take place during Step 4.

17(5) Step 5 shall consist of project refinancing, where
18applicable, to allow for the restructuring, refinancing or
19refunding of existing indebtedness.

20(b) (1) Except as provided for in paragraph (2), school
21districts shall be reimbursed by the department in the order in
22which their projects received approval for Commonwealth
23reimbursement by the Department of Education.

24(2) The Secretary of Education may prioritize the
25reimbursement of a school construction or reconstruction project
26of a school district declared to be in financial recovery status
27under Article VI-A of this act. Projects that are given priority
28under this paragraph shall be reimbursed before all other
29projects.

30(c) (1) School districts shall develop a complete

1districtwide facility study of all district educational
2facilities, including the district administrative offices. The
3study shall be completed prior to, and within five (5) years of,
4the initial date of submission to the department of an
5application for Commonwealth reimbursement of a school
6construction or reconstruction project.

7(2) The study shall provide an appraisal as to each
8facility's ability to meet current and planned education program
9requirements, the degree to which the present facilities meet
10reasonably current construction standards, and an estimated cost
11of necessary repairs and improvements.

12(3) The study shall be submitted to the department along
13with an initial application for Commonwealth reimbursement of a
14school construction or reconstruction project.

15(4) The department shall not grant to school districts any
16exceptions, waivers or variances to the provisions of this
17subsection.

18(d) (1) In order to receive Commonwealth reimbursement for
19the construction of a new building, a school district shall,
20within Step 1 of the Accountability and Reducing Costs in
21Construction Process provided for in subsection (a), complete
22and submit to the department a cost-benefit analysis of the
23project that compares the construction of the proposed new
24building to the expansion or renovation of an existing building
25for the same purpose.

26(2) If the cost of a new building exceeds that of the
27expansion or renovation of an existing building for the same
28purpose, the school district shall only be eligible for
29Commonwealth reimbursement for the new building if substantial
30evidence is presented which demonstrates the necessity of a new

1building and how a new building would better meet the needs of
2the school district and its students than a building expansion
3or renovation.

4(3) A determination by the department that insufficient
5evidence was provided to demonstrate the necessity of a new
6building rather than a building expansion or renovation shall be
7appealable by a school district under 2 Pa.C.S. (relating to
8administrative law and procedure).

9(4) The department shall not grant to school districts any
10exceptions, waivers or variances to the provisions of this
11subsection.

12(e) (1) School districts shall not be eligible for
13Commonwealth reimbursement of school construction or
14reconstruction project costs for any existing building which is
15less than thirty (30) years old or for which a Commonwealth
16reimbursable project has been approved by the department within
17the preceding thirty (30) years. The thirty (30) year period
18between eligible Commonwealth reimbursable projects for a school
19building shall be calculated from the bid opening date of the
20previous Commonwealth reimbursable project to the bid opening
21date of the proposed Commonwealth reimbursable project.

22(2) The department shall not grant to school districts any
23exceptions, waivers or variances to the provisions of this
24subsection except in the case of an emergency. For the purposes
25of this paragraph, an emergency shall include a natural
26disaster, fire <-or flood, flood or an extraordinary and
27unanticipated increase in student enrollment.

28(f) (1) School districts shall not be eligible for
29Commonwealth reimbursement of school construction or
30reconstruction project costs for any existing building where the

1cost of expansion or renovation of the building, excluding costs
2for building purchase, movable fixtures and equipment, asbestos
3abatement, roof replacement, site development and architect
4fees, is less than forty (40) percent of the replacement value
5of the entire building.

6(2) The provisions of this subsection shall not apply to
7area vocational-technical school construction or reconstruction
8projects.

9(3) The department shall not grant to school districts any
10exceptions, waivers or variances to the provisions of this
11subsection.

12(g) The department shall, where possible and appropriate,
13automate the Accountability and Reducing Costs in Construction
14Process to allow school districts to submit plans and documents
15relating to reimbursement for a school construction or
16reconstruction project electronically.

17(h) A school district shall not be required to submit any
18school construction or reconstruction project plans, drawings,
19bid specifications or other documents to the department on
20microfilm as a condition of receiving Commonwealth reimbursement
21for a construction or reconstruction project.

22(i) A school district shall not be required to resubmit to
23the department any completed plans, drawings, bid specifications
24or other documents for a school construction or reconstruction
25project for which the department received a completed <-initial
26application by October 1, 2012, due to the implementation of
27this section.

28(j) Subsections (c), (d), (e) and (f) shall not apply to any
29school construction or reconstruction project for which a
30completed <-initial school construction or reconstruction project

1application was submitted to the department by October 1, 2012.

2(k) No later than twelve (12) months after the effective
3date of this section, the department shall develop such rules
4and guidelines as may be necessary to implement this section:
5Provided, however, That the department shall not create steps of
6approval in addition to those provided for under subsection (a)
7and shall not require more than one school board resolution at
8each step.

9(l) For the purposes of this section, the term "department"
10shall mean the Department of Education of the Commonwealth.

11Section 3. Section 732.1(b) of the act, amended July 9, 2013
12(P.L.408, No.59), is amended to read and the section is amended
13by adding a subsection to read:

14Section 732.1. Limitation on New Applications for Department
15of Education Approval of Public School Building Projects.--* * *

16(b) (1) The Department of Education shall, in consultation
17with school district officials and the General Assembly, conduct
18a review of the Department of Education's current process
19through which public school building projects are reviewed and
20approved for Commonwealth reimbursement. The review shall
21incorporate an analysis of impacting local factors, including,
22but not limited to, tax effort and building requirements, and
23shall make recommendations to the chair and minority chair of
24the Appropriations Committee of the Senate, the chair and
25minority chair of the Education Committee of the Senate, the
26chair and minority chair of the Appropriations Committee of the
27House of Representatives and the chair and minority chair of the
28Education Committee of the House of Representatives by May 1,
292013. The Department of Education shall also conduct a Statewide
30analysis of school facilities and future capital needs and shall

1submit a preliminary report on that analysis by May 1, 2014.

2(2) The Statewide analysis shall be completed and submitted
3to the chairman and minority chairman of the Appropriations
4Committee of the Senate, the chairman and minority chairman of
5the Education Committee of the Senate, the chairman and minority
6chairman of the Appropriations Committee of the House of
7Representatives and the chairman and minority chairman of the
8Education Committee of the House of Representatives no later
9than May 1, 2015.

10(c) (1) Any school district that began a school
11construction or reconstruction project during the time in which
12the Department of Education was not accepting or approving new
13school construction and reconstruction project applications for
14reimbursement pursuant to subsection (a) shall remain eligible
15and may apply for Commonwealth reimbursement for those school
16construction or reconstruction projects following the expiration
17of the limitation provided for under subsection (a).

18(2) No later than twelve (12) months after the effective
19date of this section the department shall develop such rules and
20guidelines as may be necessary to implement this subsection.

<-21Section 4. The act is amended by adding a section to read:

22Section 732.2. Interest on Delayed Reimbursement.--(a) Each
23school district which has satisfactorily met all construction or
24reconstruction reimbursement requirements established by this
25act, Title 22 of the Pennsylvania Code and the Department of
26Education and which has submitted all appropriate documentation
27to the Department of Education necessary to receive approval for
28reimbursement for a school construction or reconstruction
29project and which has not been approved for reimbursement after
30a period of one (1) year following the last date of submission

1of required documentation, shall be eligible to receive interest
2on the delayed reimbursement.

3(b) The interest on delayed reimbursement shall be an amount
4equal to the prime rate of interest, as listed in the first
5edition of the Wall Street Journal published in the year,
6multiplied by the total amount of construction or reconstruction
7reimbursement for which the school district is eligible under
8Article XXV of this act but has not received, calculated for
9each year in which the school district does not receive
10reimbursement.

11(c) Interest payments on delayed reimbursement shall be
12included in those payments made to a school district for
13Commonwealth reimbursement of a construction or reconstruction
14project when such payments commence.

15Section <-5 4. Section 2501 of the act is amended by adding a
16definition to read:

17Section 2501. Definitions.--For the purposes of this article
18the following terms shall have the following meanings:

19* * *

20(31) "Department." The Department of Education of the
21Commonwealth.

<-22Section 6. Section 2574(b.1), (c.4) and (c.6) of the act,
23amended or added July 13, 2005 (P.L.226, No.46) and July 11,
242006 (P.L.1092, No.114), are repealed:

<-25Section 5. Section 2574(b), (b.1), (c), (c.4) and (c.6) of
26the act, amended or added June 12, 1968 (P.L.192, No.96), July
2710, 1987 (P.L.286, No.50), July 13, 2005 (P.L.226, No.46) and
28July 11, 2006 (P.L.1092, No.114), are amended and the section is
29amended by adding a subsection to read:

30Section 2574. Approved Reimbursable Rental for Leases

1Hereafter Approved and Approved Reimbursable Sinking Fund
2Charges on Indebtedness.--* * *

<-3(b) For new school buildings the approved building
4construction cost shall be the lesser of

5(1) The cost of constructing the school buildings including
6the cost of essential fixtures and equipment but excluding
7architect's fees in excess of six per cent (6%) of the contract
8price, or

9(2) The product of the rated pupil capacity as determined by
10the Department of Public Instruction at the time the project is
11approved and (i) one thousand one hundred dollars ($1100) in the
12case of elementary schools, (ii) one thousand seven hundred
13dollars ($1700) in the case of secondary schools, (iii) an
14amount in the case of combined elementary-secondary schools
15obtained by multiplying the rated elementary pupil capacity by
16one thousand one hundred dollars ($1100) and the rated secondary
17pupil capacity by one thousand seven hundred dollars ($1700) and
18dividing the sum by the total rated pupil capacity.

19(3) The provisions of clause (2) of subsection (b) hereof
20shall apply to all school building projects for which the
21general construction contract is awarded prior to July 1, 1966,
22and for approved school building projects for which a lease was
23approved by the Department of Public Instruction prior to July
241, 1966. For school buildings for which the general construction
25contract is awarded subsequent to July 1, 1966 and for approved
26school building projects for which the general construction
27contract was awarded but for which a lease was not approved by
28the Department of Public Instruction prior to July 1, 1966, the
29product of the rated pupil capacity as determined by the
30Department of Public Instruction at the time the project is

1approved and (i) two thousand three hundred dollars ($2300) in
2the case of elementary schools, (ii) three thousand dollars
3($3000) in the case of secondary schools, (iii) an amount in the
4case of combined elementary-secondary schools obtained by
5multiplying the rated elementary pupil capacity by two thousand
6three hundred dollars ($2300) and the rated secondary pupil
7capacity by three thousand dollars ($3000) and dividing the sum
8by the total rated pupil capacity.

9(3.1) For school buildings for which the general
10construction contract is awarded subsequent to July 1, 1984, and
11for approved school building projects for which the general
12construction contract was awarded but for which a lease or
13general obligation bond resolution was not approved by the
14Department of Education prior to July 1, 1984, the product of
15the rated pupil capacity as determined by the Department of
16Education at the time the project is approved and (i) three
17thousand nine hundred dollars ($3,900) in the case of elementary
18schools, (ii) five thousand one hundred dollars ($5,100) in the
19case of secondary schools, (iii) an amount in the case of
20combined elementary-secondary schools obtained by multiplying
21the rated elementary pupil capacity by three thousand nine
22hundred dollars ($3,900) and the rated secondary pupil capacity
23by five thousand one hundred dollars ($5,100) and dividing the
24sum by the total rated pupil capacity.

25(4) For school buildings for which the general construction
26contract is awarded subsequent to January 1, 2005, and for
27approved school building projects for which the general
28construction contract was awarded but for which a lease or
29general obligation bond resolution was not approved by the
30Department of Education prior to January 1, 2005, the product of

1the rated pupil capacity as determined by the Department of
2Education at the time the project is approved and (i) four
3thousand seven hundred dollars ($4,700) in the case of
4elementary schools, (ii) six thousand two hundred dollars
5($6,200) in the case of secondary schools, (iii) an amount in
6the case of combined elementary-secondary schools obtained by
7multiplying the rated elementary pupil capacity by four thousand
8seven hundred dollars ($4,700) and the rated secondary pupil
9capacity by six thousand two hundred dollars ($6,200) and
10dividing the sum by the total rated pupil capacity.

11(5) For school buildings for which the general construction
12contract is awarded subsequent to October 1, 2012, and for
13approved school building projects for which the general
14construction contract was awarded but for which a lease or
15general obligation bond resolution was not approved by the
16Department of Education by October 1, 2012, the product of the
17rated pupil capacity as determined by the Department of
18Education at the time the project is approved and (i) four
19thousand two hundred thirty dollars ($4,230) in the case of
20elementary schools, (ii) five thousand five hundred eighty
21dollars ($5,580) in the case of secondary schools, (iii) an
22amount in the case of combined elementary-secondary schools
23obtained by multiplying the rated elementary pupil capacity by
24four thousand two hundred thirty dollars ($4,230) and the rated
25secondary pupil capacity by five thousand five hundred eighty
26dollars ($5,580) and dividing the sum by the total rated pupil
27capacity.

28[(b.1) For school buildings constructed and based on an
29approved school facility design received from the Department of
30Education's school facility design clearinghouse, for which the

1general construction contract is awarded subsequent to January
21, 2005, and for approved school building projects for which the
3general construction contract was awarded but for which a lease
4or general obligation bond resolution was not approved by the
5Department of Education prior to January 1, 2005, the approved
6building construction cost shall additionally include the
7product of the rated pupil capacity as determined by the
8Department of Education at the time the project is approved and
9(i) four hundred seventy dollars ($470) in the case of
10elementary schools, (ii) six hundred twenty dollars ($620) in
11the case of secondary schools, (iii) an amount in the case of
12combined elementary-secondary schools obtained by multiplying
13the rated elementary pupil capacity by four hundred seventy
14dollars ($470) and the rated secondary pupil capacity by six
15hundred twenty dollars ($620) and dividing the sum by the total
16rated pupil capacity.]

<-17(c) For additions or alterations to existing buildings
18approved building construction cost shall be the lesser of

19(1) The cost of constructing the additions or alterations
20including the cost of essential fixtures and equipment but
21excluding architect's fees in excess of six per cent (6%) of the
22contract price, or

23(2) The difference obtained by subtracting the appraisal
24value of the existing building from the product of rated pupil
25capacity of the altered or expanded building as determined by
26the Department of Public Instruction at the time the project is
27approved and (i) one thousand one hundred dollars ($1100) in the
28case of elementary schools, (ii) one thousand seven hundred
29dollars ($1700) in the case of secondary schools, (iii) an
30amount in the case of combined elementary-secondary schools

1obtained by multiplying the rated elementary pupil capacity of
2the altered or expanded building by one thousand one hundred
3dollars ($1100) and the rated secondary pupil capacity of the
4altered or expanded building by one thousand seven hundred
5dollars ($1700) and dividing the sum by the total rated pupil
6capacity of the altered or expanded building.

7Appraisal value shall be the valuation made immediately
8before the additions or alterations are begun by three competent
9appraisers, one appointed by the school authorities, one by the
10Superintendent of Public Instruction, and the third by the other
11two.

12(3) The provisions of clause (2) of subsection (c) hereof
13shall apply to all school building projects for which the
14general construction contract is awarded prior to July 1, 1966
15and for approved school building projects for which a lease was
16approved by the Department of Public Instruction prior to July
171, 1966. For school buildings for which the general construction
18contract is awarded subsequent to July 1, 1966 and for approved
19school building projects for which the general construction
20contract was awarded but for which a lease was not approved by
21the Department of Public Instruction prior to July 1, 1966, the
22difference obtained by subtracting the appraisal value of the
23existing building from the product of rated pupil capacity of
24the altered or expanded building as determined by the Department
25of Public Instruction at the time the project is approved and
26(i) two thousand three hundred dollars ($2300) in the case of
27elementary schools, (ii) three thousand dollars ($3000) in the
28case of secondary schools, (iii) an amount in the case of
29combined elementary-secondary schools obtained by multiplying
30the rated elementary pupil capacity of the altered or expanded

1building by two thousand three hundred dollars ($2300) and the
2rated secondary pupil capacity of the altered or expanded
3building by three thousand dollars ($3000) and dividing the sum
4by the total rated pupil capacity of the altered or expanded
5building.

6Appraisal value shall be the valuation made immediately
7before the additions or alterations are begun by three competent
8appraisers, one appointed by the school authorities, one by the
9Superintendent of Public Instruction, and the third by the other
10two.

11(3.1) For school buildings for which the general
12construction contract is awarded subsequent to July 1, 1984, and
13for approved school building projects for which the general
14construction contract was awarded but for which a lease or
15general obligation bond resolution was not approved by the
16Department of Education prior to July 1, 1984, the difference
17obtained by subtracting the appraisal value of the existing
18building from the product of the rated pupil capacity of the
19altered or expanded building as determined by the Department of
20Education at the time the project is approved and (i) three
21thousand nine hundred dollars ($3,900) in the case of elementary
22schools, (ii) five thousand one hundred dollars ($5,100) in the
23case of secondary schools, (iii) an amount in the case of
24combined elementary-secondary schools obtained by multiplying
25the rated elementary pupil capacity by three thousand nine
26hundred dollars ($3,900) and the rated secondary pupil capacity
27by five thousand one hundred dollars ($5,100) and dividing the
28sum by the total rated pupil capacity of the altered or expanded
29building.

30(4) For school buildings for which the general construction

1contract is awarded subsequent to January 1, 2005, and for
2approved school building projects for which the general
3construction contract was awarded but for which a lease or
4general obligation bond resolution was not approved by the
5Department of Education prior to January 1, 2005, the difference
6obtained by subtracting the appraisal value of the existing
7building from the product of the rated pupil capacity of the
8altered or expanded building as determined by the Department of
9Education at the time the project is approved and (i) four
10thousand seven hundred dollars ($4,700) in the case of
11elementary schools, (ii) six thousand two hundred dollars
12($6,200) in the case of secondary schools, (iii) an amount in
13the case of combined elementary-secondary schools obtained by
14multiplying the rated elementary pupil capacity by four thousand
15seven hundred dollars ($4,700) and the rated secondary pupil
16capacity by six thousand two hundred dollars ($6,200) and
17dividing the sum by the total rated pupil capacity of the
18altered or expanded building.

19(5)  For school buildings for which the general construction
20contract is awarded subsequent to October 1, 2012, and for
21approved school building projects for which the general
22construction contract was awarded but for which a lease or
23general obligation bond resolution was not approved by the
24Department of Education by October 1, 2012, the difference
25obtained by subtracting the appraisal value of the existing
26building from the product of the rated pupil capacity of the
27altered or expanded building as determined by the Department of
28Education at the time the project is approved and (i) four
29thousand two hundred thirty dollars ($4,230) in the case of
30elementary schools, (ii) five thousand five hundred eighty

1dollars ($5,580) in the case of secondary schools, (iii) an
2amount in the case of combined elementary-secondary schools
3obtained by multiplying the rated elementary pupil capacity by
4four thousand two hundred thirty dollars ($4,230) and the rated
5secondary pupil capacity by five thousand five hundred eighty
6dollars ($5,580) and dividing the sum by the total rated pupil
7capacity of the altered or expanded building.

8* * *

9[(c.4) For school buildings for which the general
10construction contract is awarded on or after January 1, 2005,
11and for approved school building projects for which the general
12construction contract was awarded but for which a lease or
13general obligation bond resolution was not approved by the
14Department of Education prior to January 1, 2005, and where the
15school building receives a silver, gold or platinum
16certification from the United States Green Building Council's
17Leadership in Energy and Environmental Design Green Building
18Rating System or two, three or four Globes under the Green
19Building Initiative's Green Globes Green Building Rating System
20on or after January 1, 2005, the Department of Education shall
21adjust the approved building construction cost to additionally
22include the product of the rated pupil capacity as determined by
23the Department of Education at the time the project is approved
24and (i) four hundred seventy dollars ($470) in the case of
25elementary schools, (ii) six hundred twenty dollars ($620) in
26the case of secondary schools, (iii) an amount in the case of
27combined elementary-secondary schools obtained by multiplying
28the rated elementary pupil capacity by four hundred seventy
29dollars ($470) and the rated secondary pupil capacity by six
30hundred twenty dollars ($620) and dividing the sum by the total

1rated pupil capacity. The Department of Education in
2consultation with the Governor's Green Government Council shall
3issue guidelines to carry out this section.]

4* * *

5[(c.6) If a school district receives reimbursement for a
6school construction project under this section, the school
7district, upon request by the Department of Education, shall do
8all of the following:

9(i) Provide information required by the department to
10determine whether the school construction project meets criteria
11established by the department for certification as an approved
12school facility design for purposes of the department's school
13facility design clearinghouse.

14(ii) Authorize the department, in its discretion, to certify
15the school construction project as an approved school facility
16design and to include information about the certified project in
17the department's school facility design clearinghouse.]

18* * *

<-19(g) Subsections (b)(5) and (c)(5) of this section shall not
20apply to any school construction or reconstruction project for
21which a completed initial school construction or reconstruction
22project application was submitted to the Department of Education
23by October 1, 2012.

<-24Section 7. Section 2575(a) of the act, amended July 12, 1968
25(P.L.192, No.96), is amended to read:

<-26Section 6. Section 2575(a) of the act, amended July 12, 1968
27(P.L.192, No.96), is amended and the section is amended by
28adding a subsection to read:

29Section 2575. Payments on Account of Leases Hereafter
30Approved and on Account of Sinking Fund Charges on Indebtedness

1for School Buildings Hereafter Constructed.--(a) <- (1) The
2Commonwealth shall pay annually to each school district erecting
3or sharing in the erection of a building or buildings under the
4provisions of the Public School Building Authority Act, the
5Municipality Authority Act, section 758 <-[of the Public School
6Code of 1949,] or section 791 of <-[the Public School Code of
71949,<-] this act on account of buildings for which the lease is
8approved on or after March 22, 1956, or through the incurring of
9indebtedness by the issuance of general obligation bonds on
10account of buildings for which the general construction contract
11is awarded on or after March 22, 1956, an amount to be
12determined by multiplying the district's <-[capital account
13reimbursement fraction computed for the year 1967 or<-] aid ratio
14[whichever is larger<-] by the approved reimbursable rental or
15approved reimbursable sinking fund charge.

<-16(2) The provisions of this subsection shall only apply to
17school construction or reconstruction projects for which a
18completed initial school construction or reconstruction project
19application was submitted to the Department of Education by
20October 1, 2012.

21(a.1) (1) The Commonwealth shall pay annually to each
22school district erecting or sharing in the erection of a
23building or buildings under the provisions of the Public School
24Building Authority Act, the Municipality Authority Act or
25section 758 or 791 of this act, on account of buildings for
26which the lease is approved on or after October 1, 2012, or
27through the incurring of indebtedness by the issuance of general
28obligation bonds on account of buildings for which the general
29construction contract is awarded on or after October 1, 2012, an
30amount to be determined by multiplying the district's aid ratio

1by the approved reimbursable rental or approved reimbursable
2sinking fund charge.

3(2) The provisions of this subsection shall only apply to
4school construction or reconstruction projects for which a
5completed initial school construction or reconstruction project
6application was submitted to the Department of Education after
7October 1, 2012.

8* * *

9Section <-8 7. Section 2575.1 of the act, amended July 9, 1992
10(P.L.392, No.85), is amended to read:

11Section 2575.1. Payments on Account of Building Costs.--(a) 
<- 12(1) The Commonwealth shall pay to any school district making a
13preliminary payment on account of the approved building
14construction or approved renovation cost as authorized by
15section 783 or by clause (4) of section 790 or by clause (5) of
16section 791 of this act, an amount determined by multiplying the
17district's <-[capital account reimbursement fraction computed for
18the year 1967 or] aid ratio [whichever is larger<-] by the amount
19of the payment made by the school district.

<-20(2) The provisions of this subsection shall only apply to
21school construction or reconstruction projects for which a
22completed initial school construction or reconstruction project
23application was submitted to the Department of Education by
24October 1, 2012.

25(a.1) (1) The Commonwealth shall pay to any school district
26making a preliminary payment on account of the approved building
27construction or approved renovation cost as authorized by
28section 783 or by clause (4) of section 790 or by clause (5) of
29section 791 of this act, an amount determined by multiplying the
30district's aid ratio by the amount of the payment made by the

1school district.

2(2) The provisions of this subsection shall only apply to
3school construction or reconstruction projects for which a
4completed initial school construction or reconstruction project
5application was submitted to the Department of Education after
6October 1, 2012.

7(b) <- (1) Whenever any school district provides the full
8payment on account of approved building construction or approved
9renovation cost without incurring debt, or without assuming a
10lease, the Commonwealth shall pay to such school district an
11amount determined by multiplying the district's <-[capital account
12reimbursement fraction computed for the year 1967 or<-] aid ratio
13[whichever is larger<-] by the amount of the payment made by the
14school district.

<-15(2) The provisions of this subsection shall only apply to
16school construction or reconstruction projects for which a
17completed initial school construction or reconstruction project
18application was submitted to the Department of Education by
19October 1, 2012.

20(b.1) (1) Whenever any school district provides the full
21payment on account of approved building construction or approved
22renovation cost without incurring debt, or without assuming a
23lease, the Commonwealth shall pay to such school district an
24amount determined by multiplying the district's aid ratio by the
25amount of the payment made by the school district.

26(2) The provisions of this subsection shall only apply to
27school construction or reconstruction projects for which a
28completed initial school construction or reconstruction project
29application was submitted to the Department of Education after
30October 1, 2012.

1(c) The payment required by this section shall be made for
2the year in which the school district made its payment on
3account of the approved building construction or approved
4renovation cost.

5Section <-9 8. The act is amended by adding a section to read:

6Section 2581. Lump Sum Reimbursement for Construction or
7Reconstruction.--(1) (a) The department may, <-at any time, upon
8the availability of sufficient funds and the mutual agreement of
9the department and a school district, provide an immediate lump
10sum payment to the school district as full reimbursement for a
11construction or reconstruction project <-that has received all
12required approvals from the department for Commonwealth
13reimbursement. The lump sum payment provided for under this
14section shall be <-equal to no greater than seventy-five percent
15(75%) of the total allowable construction or reconstruction
16reimbursement provided for under Article XXV of this act for
17which the school district is eligible: Provided, however, That
18such payments shall not include reimbursement for interest
19incurred by a school district.

<-20(b) Each agreement for lump sum reimbursement under this
21section shall require the school district receiving a lump sum
22payment to relinquish any current claim to the total allowable
23construction or reconstruction reimbursement provided for under
24Article XXV of this act for which the school district is
25eligible in exchange for the immediate lump sum payment of a
26lesser amount.

27(c) The department shall make the opportunity for a lump sum
28payment available to school districts in the order in which
29school districts submitted completed initial applications for
30reimbursement of construction or reconstruction projects.

1(d) For the 2014-2015 fiscal year and each fiscal year
2thereafter, where the General Assembly makes an appropriation to
3the Department of Education in the General Appropriation Act,
4for the purpose of payments on account of annual rental or
5sinking fund charges on school buildings, including charter
6schools, in excess of the amount appropriated to that line item
7for the 2013-2014 fiscal year, the department shall first use
8the additional funding to offer lump sum reimbursement to school
9districts as provided for in this section.

<-10(2) (e) No later than twelve (12) months after the effective
11date of this section, the department shall develop such rules
12and guidelines as may be necessary to implement this section.

<-13Section 10. For the 2014-2015 fiscal year the General
14Assembly shall appropriate not less than $396,198,000 to the
15Authority Rentals and Sinking Fund Requirements line item in the
16General Appropriation Act.

17Section 11. This act shall take effect as follows:

18(1) The addition of section 731.2(d), (e), (f) and (g)
19of the act shall take effect July 1, 2015.

20(2) The remainder of this act shall take effect
21immediately.

<-22Section 9. This act shall take effect immediately.