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;
<-11and, in reimbursements by Commonwealth and between school
12districts, further providing for definitions, for approved
13reimbursable rental for leases hereafter approved and
14approved reimbursable sinking fund charges on indebtedness,
15for payments on account of leases hereafter approved and on
16account of sinking fund charges on indebtedness for school
17buildings hereafter constructed and for payments on account
18of building costs; <-and providing for lump sum reimbursement
19for construction or reconstruction <-and for reimbursement for 
20school districts not submitting required documentation; and 
21imposing a duty on the State Public School Building 
22Authority.

23The General Assembly finds and declares that:

24(1) Recognizing challenges have developed and escalated
25over a period of years in the process of Commonwealth

1reimbursement for public school construction and
2reconstruction, which have caused delays in approvals by the
3Department of Education for reimbursement payments owed to
4school districts throughout this Commonwealth as well as the
5limitation on school district submission of new applications
6for Commonwealth reimbursement, and acknowledging that these
7challenges were born of an antiquated, complex and overly
8burdensome administrative process, as well as financially
9unsustainable Commonwealth construction and reconstruction
10reimbursement obligations, it is a matter of high priority
11that these challenges be addressed.

12(2) Therefore, it is the intent of the General Assembly
13to reform the existing process of Commonwealth reimbursement
14for public school construction and reconstruction to ensure
15that a modern, simplified and financially sustainable process
16is instituted.

17The General Assembly of the Commonwealth of Pennsylvania
18hereby enacts as follows:

19Section 1. Section 731 of the act of March 10, 1949 (P.L.30,
20No.14), known as the Public School Code of 1949, amended June
2127, 1973 (P.L.75, No.34), is amended to read:

22Section 731. Approval by Department of Plans, etc., of
23Buildings; Exceptions.--(a) The Department of Education, with
24respect to construction or reconstruction of public school
25buildings, shall have the power and its duties shall be:

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

1specifications for school construction projects for which 
2reimbursement from the Commonwealth is not requested;

3(2) To assist school districts in preplanning construction
4and reconstruction projects, and offer such architectural,
5engineering and financial advice as will enable the project to
6comply with the standards prescribed by the State Board of
7Education;

8(3) To hold hearings on any or all projects and subpoena
9witnesses, administer oaths, take testimony and compel the
10production of documents relevant to any investigation;

11(4) To act as liaison between the public, local school
12officials, the General Assembly, and the Governor on school
13building construction and reconstruction projects;

14(5) To receive and investigate complaints from the public or
15other source concerning any school building construction or
16reconstruction project;

17(6) To conduct investigations on any phase of school
18building construction or reconstruction projects.

19(7) To provide for an electronic database on its publicly
20accessible Internet website for the purpose of providing public
21access to information on public school construction and
22reconstruction projects, building purchases and charter school
23lease reimbursements submitted for the approval of, or approved
24by, the Department of Education. The electronic database shall
25indicate the date each application for reimbursement was
26submitted to the Department of Education and the date of
27approval for each step of the reimbursement process as outlined
28in section 731.2 of this act.

29(b) The Department of Education shall employ engineers,
30architects, financial advisors, and such other staff personnel

1as may be necessary for the proper performance of the duties of
2the Department with respect to construction or reconstruction of
3public school buildings.

4(c) No public school building shall be contracted for,
5constructed, or reconstructed, in any school district of the
6second, third, or fourth class until the plans and
7specifications therefor have been approved by the Department of
8Education[.

9When ordinary repairs are proposed, such as plastering,
10painting, replacement of floors, improvement of school grounds,
11repairing or providing walks, roadways or retaining walls, the
12cost of which in districts of the second class or in districts
13of the third and fourth class will not exceed fifteen thousand
14dollars ($15,000) per building, no approval shall be required.
15Where any structural change is involved, such as moving or
16adding doors, windows, partitions, making additions or any
17excavations, or any work which may affect the safety or health
18of the pupils, or any work which comes under the jurisdiction of
19another department of the Commonwealth, approval of the
20Department of Education shall be required regardless of the cost
21of such structural change.]:

22Provided, however, That approval of the Department of Education
23shall not be required for projects, plans and specifications for
24school construction projects for which reimbursement from the
25Commonwealth is not requested.

26(d) No school building shall be purchased by any school
27district until such purchase shall have been approved by the
28Department of Education. Such approval shall not be given unless
29the school building to be purchased and any approved structural
30changes or renovations meet the standards required to operate

1public school buildings of a similar age currently in use in the
2Commonwealth.

3Section 2. The act is amended by adding a section to read:

4Section 731.2. Accountability and Reducing Costs in
5Construction Process.--(a) No later than July 1, 2015, the
6department shall develop and implement a process, including
7standardized forms and procedures, which shall be used by school
8districts to apply for Commonwealth reimbursement for school
9construction and reconstruction projects and which shall be
10known as the Accountability and Reducing Costs in Construction
11Process. In developing the Accountability and Reducing Costs in
12Construction Process, the department shall separate the process
13into five (5) benchmark steps of department approval which shall
14be labeled one (1) through five (5) and shall minimally include
15the following:

16(1) Step 1 shall consist of the following:

17(i) project description;

18(ii) project justification; and

19(iii) a technical schematic design review conference with
20the department.

21(2) Step 2 shall consist of the following:

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

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

24(iii) a conference with the department to review completed
25construction documents, including bid specifications, drawings
26for the project and documentation regarding the fulfillment of
27State and local agency requirements.

28(3) Step 3 shall consist of the following:

29(i) project accounting based on costs for actual
30construction bids for which contracts shall be awarded; and

1(ii) project financing, including financing method and the
2calculation of the temporary reimbursable percent for the
3project. In calculating the temporary reimbursable percent, the
4department shall factor in a five (5) percentage point
5reduction which shall be utilized until the calculation of the
6permanent reimbursable percent is completed in Step 4.

7Approval through Step 3 shall initiate project reimbursement
8from the Commonwealth.

9(4) Step 4 shall consist of the following:

10(i) interim reporting of project modifications, including
11the reporting of change orders and supplemental contracts; and

12(ii) project accounting based on the final costs of a
13project after completion of the following:

14(A) construction of the project; and

15(B) payment for all construction or reconstruction work,
16unless the department has granted an exception.

17The calculation of the permanent reimbursable percent for a
18project shall take place during Step 4.

19(5) Step 5 shall consist of project refinancing, where
20applicable, to allow for the restructuring, refinancing or
21refunding of existing indebtedness.

22(b) (1) Except as provided for in paragraph (2), school
23districts shall be reimbursed by the department in the order in
24which their projects received approval for Commonwealth
25reimbursement by the Department of Education.

26(2) The Secretary of Education may prioritize the
27reimbursement of a school construction or reconstruction project
28of a school district declared to be in financial recovery status
29under Article VI-A of this act. Projects that are given priority
30under this paragraph shall be reimbursed before all other

1projects.

2(c) (1) School districts shall develop a complete
3districtwide facility study of all district educational
4facilities, including the district administrative offices. The
5study shall be completed prior to, and within five (5) years of,
6the initial date of submission to the department of an
7application for Commonwealth reimbursement of a school
8construction or reconstruction project.

9(2) The study shall provide an appraisal as to each
10facility's ability to meet current and planned education program
11requirements, the degree to which the present facilities meet
12reasonably current construction standards, and an estimated cost
13of necessary repairs and improvements.

14(3) The study shall be submitted to the department along
15with an initial application for Commonwealth reimbursement of a
16school construction or reconstruction project.

17(4) The department shall not grant to school districts any
18exceptions, waivers or variances to the provisions of this
19subsection.

20(d) (1) In order to receive Commonwealth reimbursement for
21the construction of a new building, a school district shall,
22within Step 1 of the Accountability and Reducing Costs in
23Construction Process provided for in subsection (a), complete
24and submit to the department a cost-benefit analysis of the
25project that compares the construction of the proposed new
26building to the expansion or renovation of an existing building
27for the same purpose.

28(2) If the cost of a new building exceeds that of the
29expansion or renovation of an existing building for the same
30purpose, the school district shall only be eligible for

1Commonwealth reimbursement for the new building if substantial
2evidence is presented which demonstrates the necessity of a new
3building and how a new building would better meet the needs of
4the school district and its students than a building expansion
5or renovation.

6(3) A determination by the department that insufficient
7evidence was provided to demonstrate the necessity of a new
8building rather than a building expansion or renovation shall be
9appealable by a school district under 2 Pa.C.S. (relating to
10administrative law and procedure).

11(4) The department shall not grant to school districts any
12exceptions, waivers or variances to the provisions of this
13subsection.

14(e) (1) School districts shall not be eligible for
15Commonwealth reimbursement of school construction or
16reconstruction project costs for any existing building which is
17less than thirty (30) years old or for which a Commonwealth
18reimbursable project has been approved by the department within
19the preceding thirty (30) years. The thirty (30) year period
20between eligible Commonwealth reimbursable projects for a school
21building shall be calculated from the bid opening date of the
22previous Commonwealth reimbursable project to the bid opening
23date of the proposed Commonwealth reimbursable project.

24(2) The department shall not grant to school districts any
25exceptions, waivers or variances to the provisions of this
26subsection except in the case of an emergency. For the purposes
27of this paragraph, an emergency shall include a natural
28disaster, fire, flood<-, mold contamination or an extraordinary
29and unanticipated increase in student enrollment.

30(f) (1) School districts shall not be eligible for

1Commonwealth reimbursement of school construction or
2reconstruction project costs for any existing building where the
3cost of expansion or renovation of the building, excluding costs
4for building purchase, movable fixtures and equipment, asbestos
5abatement, roof replacement, site development and architect
6fees, is less than forty (40) percent of the replacement value
7of the entire building.

8(2) The provisions of this subsection shall not apply to
9area vocational-technical school construction or reconstruction
10projects.

11(3) The department shall not grant to school districts any
12exceptions, waivers or variances to the provisions of this
13subsection.

14(g) The department shall, where possible and appropriate,
15automate the Accountability and Reducing Costs in Construction
16Process to allow school districts to submit plans and documents
17relating to reimbursement for a school construction or
18reconstruction project electronically.

19(h) A school district shall not be required to submit any
20school construction or reconstruction project plans, drawings,
21bid specifications or other documents to the department on
22microfilm as a condition of receiving Commonwealth reimbursement
23for a construction or reconstruction project.

24(i) A school district shall not be required to resubmit to
25the department any completed plans, drawings, bid specifications
26or other documents for a school construction or reconstruction
27project for which the department received a completed initial
28application by October 1, 2012, due to the implementation of
29this section.

30(j) Subsections (c), (d), (e) and (f) shall not apply to any

1school construction or reconstruction project for which a
2completed initial school construction or reconstruction project
3application was submitted to the department by October 1, 2012.

4(k) No later than twelve (12) months after the effective
5date of this section, the department shall develop such rules
6and guidelines as may be necessary to implement this section:
7Provided, however, That the department shall not create steps of
8approval in addition to those provided for under subsection (a)
9and shall not require more than one school board resolution at
10each step.

11(l) For the purposes of this section, the term "department"
12shall mean the Department of Education of the Commonwealth.

13Section 3. Section 732.1(b) of the act, amended July 9, 2013
14(P.L.408, No.59), is amended to read and the section is amended
15by adding a subsection to read:

16Section 732.1. Limitation on New Applications for Department
17of Education Approval of Public School Building Projects.--* * *

18(b) (1) The Department of Education shall, in consultation
19with school district officials and the General Assembly, conduct
20a review of the Department of Education's current process
21through which public school building projects are reviewed and
22approved for Commonwealth reimbursement. The review shall
23incorporate an analysis of impacting local factors, including,
24but not limited to, tax effort and building requirements, and
25shall make recommendations to the chair and minority chair of
26the Appropriations Committee of the Senate, the chair and
27minority chair of the Education Committee of the Senate, the
28chair and minority chair of the Appropriations Committee of the
29House of Representatives and the chair and minority chair of the
30Education Committee of the House of Representatives by May 1,

12013. The Department of Education shall also conduct a Statewide
2analysis of school facilities and future capital needs and shall
3submit a preliminary report on that analysis by May 1, 2014.

4(2) The Statewide analysis shall be completed and submitted
5to the chairman and minority chairman of the Appropriations
6Committee of the Senate, the chairman and minority chairman of
7the Education Committee of the Senate, the chairman and minority
8chairman of the Appropriations Committee of the House of
9Representatives and the chairman and minority chairman of the
10Education Committee of the House of Representatives no later
11than May 1, 2015.

12(c) (1) Any school district that began a school
13construction or reconstruction project during the time in which
14the Department of Education was not accepting or approving new
15school construction and reconstruction project applications for
16reimbursement pursuant to subsection (a) shall remain eligible
17and may apply for Commonwealth reimbursement for those school
18construction or reconstruction projects following the expiration
19of the limitation provided for under subsection (a).

20(2) No later than twelve (12) months after the effective
21date of this section the department shall develop such rules and
22guidelines as may be necessary to implement this subsection.

23Section 4. Section 2501 of the act is amended by adding a
24definition to read:

25Section 2501. Definitions.--For the purposes of this article
26the following terms shall have the following meanings:

27* * *

28(31) "Department." The Department of Education of the
29Commonwealth.

30Section 5. Section <-2574(b), (b.1), (c) <-2574(b.1), (c.4) and
 

1(c.6) of the act, amended or added <-June 12, 1968 (P.L.192, 
2No.96), July 10, 1987 (P.L.286, No.50), July 13, 2005 (P.L.226, 
3No.46) and July 11, 2006 (P.L.1092, No.114), are amended <-and the 
4section is amended by adding a subsection to read:

5Section 2574. Approved Reimbursable Rental for Leases
6Hereafter Approved and Approved Reimbursable Sinking Fund
7Charges on Indebtedness.--* * *

<-8(b) For new school buildings the approved building
9construction cost shall be the lesser of

10(1) The cost of constructing the school buildings including
11the cost of essential fixtures and equipment but excluding
12architect's fees in excess of six per cent (6%) of the contract
13price, or

14(2) The product of the rated pupil capacity as determined by
15the Department of Public Instruction at the time the project is
16approved and (i) one thousand one hundred dollars ($1100) in the
17case of elementary schools, (ii) one thousand seven hundred
18dollars ($1700) in the case of secondary schools, (iii) an
19amount in the case of combined elementary-secondary schools
20obtained by multiplying the rated elementary pupil capacity by
21one thousand one hundred dollars ($1100) and the rated secondary
22pupil capacity by one thousand seven hundred dollars ($1700) and
23dividing the sum by the total rated pupil capacity.

24(3) The provisions of clause (2) of subsection (b) hereof
25shall apply to all school building projects for which the
26general construction contract is awarded prior to July 1, 1966,
27and for approved school building projects for which a lease was
28approved by the Department of Public Instruction prior to July
291, 1966. For school buildings for which the general construction
30contract is awarded subsequent to July 1, 1966 and for approved

1school building projects for which the general construction
2contract was awarded but for which a lease was not approved by
3the Department of Public Instruction prior to July 1, 1966, the
4product of the rated pupil capacity as determined by the
5Department of Public Instruction at the time the project is
6approved and (i) two thousand three hundred dollars ($2300) in
7the case of elementary schools, (ii) three thousand dollars
8($3000) in the case of secondary schools, (iii) an amount in the
9case of combined elementary-secondary schools obtained by
10multiplying the rated elementary pupil capacity by two thousand
11three hundred dollars ($2300) and the rated secondary pupil
12capacity by three thousand dollars ($3000) and dividing the sum
13by the total rated pupil capacity.

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

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 product of
6the rated pupil capacity as determined by the Department of
7Education at the time the project is approved and (i) four
8thousand seven hundred dollars ($4,700) in the case of
9elementary schools, (ii) six thousand two hundred dollars
10($6,200) in the case of secondary schools, (iii) an amount in
11the case of combined elementary-secondary schools obtained by
12multiplying the rated elementary pupil capacity by four thousand
13seven hundred dollars ($4,700) and the rated secondary pupil
14capacity by six thousand two hundred dollars ($6,200) and
15dividing the sum by the total rated pupil capacity.

16(5) For school buildings for which the general construction
17contract is awarded subsequent to October 1, 2012, and for
18approved school building projects for which the general
19construction contract was awarded but for which a lease or
20general obligation bond resolution was not approved by the
21Department of Education by October 1, 2012, the product of the
22rated pupil capacity as determined by the Department of
23Education at the time the project is approved and (i) four
24thousand two hundred thirty dollars ($4,230) in the case of
25elementary schools, (ii) five thousand five hundred eighty
26dollars ($5,580) in the case of secondary schools, (iii) an
27amount in the case of combined elementary-secondary schools
28obtained by multiplying the rated elementary pupil capacity by
29four thousand two hundred thirty dollars ($4,230) and the rated
30secondary pupil capacity by five thousand five hundred eighty

1dollars ($5,580) and dividing the sum by the total rated pupil
2capacity.

3[(b.1) For school buildings constructed and based on an
4approved school facility design received from the Department of
5Education's school facility design clearinghouse, for which the
6general construction contract is awarded subsequent to January
71, 2005, and for approved school building projects for which the
8general construction contract was awarded but for which a lease
9or general obligation bond resolution was not approved by the
10Department of Education prior to January 1, 2005, the approved
11building construction cost shall additionally include the
12product of the rated pupil capacity as determined by the
13Department of Education at the time the project is approved and
14(i) four hundred seventy dollars ($470) in the case of
15elementary schools, (ii) six hundred twenty dollars ($620) in
16the case of secondary schools, (iii) an amount in the case of
17combined elementary-secondary schools obtained by multiplying
18the rated elementary pupil capacity by four hundred seventy
19dollars ($470) and the rated secondary pupil capacity by six
20hundred twenty dollars ($620) and dividing the sum by the total
21rated pupil capacity.]

<-22(c) For additions or alterations to existing buildings
23approved building construction cost shall be the lesser of

24(1) The cost of constructing the additions or alterations
25including the cost of essential fixtures and equipment but
26excluding architect's fees in excess of six per cent (6%) of the
27contract price, or

28(2) The difference obtained by subtracting the appraisal
29value of the existing building from the product of rated pupil
30capacity of the altered or expanded building as determined by

1the Department of Public Instruction at the time the project is
2approved and (i) one thousand one hundred dollars ($1100) in the
3case of elementary schools, (ii) one thousand seven hundred
4dollars ($1700) in the case of secondary schools, (iii) an
5amount in the case of combined elementary-secondary schools
6obtained by multiplying the rated elementary pupil capacity of
7the altered or expanded building by one thousand one hundred
8dollars ($1100) and the rated secondary pupil capacity of the
9altered or expanded building by one thousand seven hundred
10dollars ($1700) and dividing the sum by the total rated pupil
11capacity of the altered or expanded building.

12Appraisal value shall be the valuation made immediately
13before the additions or alterations are begun by three competent
14appraisers, one appointed by the school authorities, one by the
15Superintendent of Public Instruction, and the third by the other
16two.

17(3) The provisions of clause (2) of subsection (c) hereof
18shall apply to all school building projects for which the
19general construction contract is awarded prior to July 1, 1966
20and for approved school building projects for which a lease was
21approved by the Department of Public Instruction prior to July
221, 1966. For school buildings for which the general construction
23contract is awarded subsequent to July 1, 1966 and for approved
24school building projects for which the general construction
25contract was awarded but for which a lease was not approved by
26the Department of Public Instruction prior to July 1, 1966, the
27difference obtained by subtracting the appraisal value of the
28existing building from the product of rated pupil capacity of
29the altered or expanded building as determined by the Department
30of Public Instruction at the time the project is approved and

1(i) two thousand three hundred dollars ($2300) in the case of
2elementary schools, (ii) three thousand dollars ($3000) in the
3case of secondary schools, (iii) an amount in the case of
4combined elementary-secondary schools obtained by multiplying
5the rated elementary pupil capacity of the altered or expanded
6building by two thousand three hundred dollars ($2300) and the
7rated secondary pupil capacity of the altered or expanded
8building by three thousand dollars ($3000) and dividing the sum
9by the total rated pupil capacity of the altered or expanded
10building.

11Appraisal value shall be the valuation made immediately
12before the additions or alterations are begun by three competent
13appraisers, one appointed by the school authorities, one by the
14Superintendent of Public Instruction, and the third by the other
15two.

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

1hundred dollars ($3,900) and the rated secondary pupil capacity
2by five thousand one hundred dollars ($5,100) and dividing the
3sum by the total rated pupil capacity of the altered or expanded
4building.

5(4) For school buildings for which the general construction
6contract is awarded subsequent to January 1, 2005, and for
7approved school building projects for which the general
8construction contract was awarded but for which a lease or
9general obligation bond resolution was not approved by the
10Department of Education prior to January 1, 2005, the difference
11obtained by subtracting the appraisal value of the existing
12building from the product of the rated pupil capacity of the
13altered or expanded building as determined by the Department of
14Education at the time the project is approved and (i) four
15thousand seven hundred dollars ($4,700) in the case of
16elementary schools, (ii) six thousand two hundred dollars
17($6,200) in the case of secondary schools, (iii) an amount in
18the case of combined elementary-secondary schools obtained by
19multiplying the rated elementary pupil capacity by four thousand
20seven hundred dollars ($4,700) and the rated secondary pupil
21capacity by six thousand two hundred dollars ($6,200) and
22dividing the sum by the total rated pupil capacity of the
23altered or expanded building.

24(5)  For school buildings for which the general construction
25contract is awarded subsequent to October 1, 2012, and for
26approved school building projects for which the general
27construction contract was awarded but for which a lease or
28general obligation bond resolution was not approved by the
29Department of Education by October 1, 2012, the difference
30obtained by subtracting the appraisal value of the existing

1building from the product of the rated pupil capacity of the
2altered or expanded building as determined by the Department of
3Education at the time the project is approved and (i) four
4thousand two hundred thirty dollars ($4,230) in the case of
5elementary schools, (ii) five thousand five hundred eighty
6dollars ($5,580) in the case of secondary schools, (iii) an
7amount in the case of combined elementary-secondary schools
8obtained by multiplying the rated elementary pupil capacity by
9four thousand two hundred thirty dollars ($4,230) and the rated
10secondary pupil capacity by five thousand five hundred eighty
11dollars ($5,580) and dividing the sum by the total rated pupil
12capacity of the altered or expanded building.

13* * *

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

1the case of secondary schools, (iii) an amount in the case of
2combined elementary-secondary schools obtained by multiplying
3the rated elementary pupil capacity by four hundred seventy
4dollars ($470) and the rated secondary pupil capacity by six
5hundred twenty dollars ($620) and dividing the sum by the total
6rated pupil capacity. The Department of Education in
7consultation with the Governor's Green Government Council shall
8issue guidelines to carry out this section.]

9* * *

10[(c.6) If a school district receives reimbursement for a
11school construction project under this section, the school
12district, upon request by the Department of Education, shall do
13all of the following:

14(i) Provide information required by the department to
15determine whether the school construction project meets criteria
16established by the department for certification as an approved
17school facility design for purposes of the department's school
18facility design clearinghouse.

19(ii) Authorize the department, in its discretion, to certify
20the school construction project as an approved school facility
21design and to include information about the certified project in
22the department's school facility design clearinghouse.]

23* * *

<-24(g) Subsections (b)(5) and (c)(5) of this section shall not
25apply to any school construction or reconstruction project for
26which a completed initial school construction or reconstruction
27project application was submitted to the Department of Education
28by October 1, 2012.

29Section 6. Section 2575(a) of the act, amended July 12, 1968 
30(P.L.192, No.96), is amended and the section is amended by
 

1adding a subsection to read:

2Section 2575. Payments on Account of Leases Hereafter
3Approved and on Account of Sinking Fund Charges on Indebtedness
4for School Buildings Hereafter Constructed.--(a) (1) The
5Commonwealth shall pay annually to each school district erecting
6or sharing in the erection of a building or buildings under the
7provisions of the Public School Building Authority Act, the
8Municipality Authority Act, section 758 [of the Public School
9Code of 1949,] or section 791 of [the Public School Code of
101949,] this act on account of buildings for which the lease is
11approved on or after March 22, 1956, or through the incurring of
12indebtedness by the issuance of general obligation bonds on
13account of buildings for which the general construction contract
14is awarded on or after March 22, 1956, an amount to be
15determined by multiplying the district's capital account
16reimbursement fraction computed for the year 1967 or aid ratio
17whichever is larger by the approved reimbursable rental or
18approved reimbursable sinking fund charge.

19(2) The provisions of this subsection shall only apply to
20school construction or reconstruction projects for which a
21completed initial school construction or reconstruction project
22application was submitted to the Department of Education by
23October 1, 2012.

24(a.1) (1) The Commonwealth shall pay annually to each
25school district erecting or sharing in the erection of a
26building or buildings under the provisions of the Public School
27Building Authority Act, the Municipality Authority Act or
28section 758 or 791 of this act, on account of buildings for
29which the lease is approved on or after October 1, 2012, or
30through the incurring of indebtedness by the issuance of general

1obligation bonds on account of buildings for which the general
2construction contract is awarded on or after October 1, 2012, an
3amount to be determined by multiplying the district's aid ratio
4by the approved reimbursable rental or approved reimbursable
5sinking fund charge.

6(2) The provisions of this subsection shall only apply to
7school construction or reconstruction projects for which a
8completed initial school construction or reconstruction project
9application was submitted to the Department of Education after
10October 1, 2012.

11* * *

12Section 7. Section 2575.1 of the act, amended July 9, 1992
13(P.L.392, No.85), is amended to read:

14Section 2575.1. Payments on Account of Building Costs.--(a)
15(1) The Commonwealth shall pay to any school district making a
16preliminary payment on account of the approved building
17construction or approved renovation cost as authorized by
18section 783 or by clause (4) of section 790 or by clause (5) of
19section 791 of this act, an amount determined by multiplying the
20district's capital account reimbursement fraction computed for
21the year 1967 or aid ratio whichever is larger by the amount of
22the payment made by the school district.

23(2) The provisions of this subsection shall only apply to
24school construction or reconstruction projects for which a
25completed initial school construction or reconstruction project
26application was submitted to the Department of Education by
27October 1, 2012.

28(a.1) (1) The Commonwealth shall pay to any school district
29making a preliminary payment on account of the approved building
30construction or approved renovation cost as authorized by

1section 783 or by clause (4) of section 790 or by clause (5) of
2section 791 of this act, an amount determined by multiplying the
3district's aid ratio by the amount of the payment made by the
4school district.

5(2) The provisions of this subsection shall only apply to
6school construction or reconstruction projects for which a
7completed initial school construction or reconstruction project
8application was submitted to the Department of Education after
9October 1, 2012.

10(b) (1) Whenever any school district provides the full
11payment on account of approved building construction or approved
12renovation cost without incurring debt, or without assuming a
13lease, the Commonwealth shall pay to such school district an
14amount determined by multiplying the district's capital account
15reimbursement fraction computed for the year 1967 or aid ratio
16whichever is larger by the amount of the payment made by the
17school district.

18(2) The provisions of this subsection shall only apply to
19school construction or reconstruction projects for which a
20completed initial school construction or reconstruction project
21application was submitted to the Department of Education by
22October 1, 2012.

23(b.1) (1) Whenever any school district provides the full
24payment on account of approved building construction or approved
25renovation cost without incurring debt, or without assuming a
26lease, the Commonwealth shall pay to such school district an
27amount determined by multiplying the district's aid ratio by the
28amount of the payment made by the school district.

29(2) The provisions of this subsection shall only apply to
30school construction or reconstruction projects for which a

1completed initial school construction or reconstruction project
2application was submitted to the Department of Education after
3October 1, 2012.

4(c) The payment required by this section shall be made for
5the year in which the school district made its payment on
6account of the approved building construction or approved
7renovation cost.

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

10Section 2581. Lump Sum Reimbursement for Construction or
11Reconstruction.--(a) The department may, at any time, upon the
12availability of sufficient funds and the mutual agreement of the
13department and a school district, provide an immediate lump sum
14payment to the school district as full reimbursement for a
15construction or reconstruction project <-that has received all
16required approvals from the department for Commonwealth
17reimbursement. The lump sum payment provided for under this
18section shall be no greater than seventy-five percent (75%) of
19the total allowable construction or reconstruction reimbursement
20provided for under Article XXV of this act for which the school
21district is eligible: Provided, however, That such payments
22shall not include reimbursement for interest incurred by a
23school district. <-A school district that does not agree to a lump
24sum payment under this section shall remain eligible for the
25total allowable construction or reconstruction reimbursement
26provided for under Article XXV of this act.

27(b) Each agreement for lump sum reimbursement under this
28section shall require the school district receiving a lump sum
29payment to relinquish any current claim to the total allowable
30construction or reconstruction reimbursement provided for under

1Article XXV of this act for which the school district is
2eligible in exchange for the immediate lump sum payment of a
3lesser amount.

4(c) The department shall make the opportunity for a lump sum
5payment available to school districts in the order in which
<-6school districts submitted completed initial applications for
7reimbursement of construction or reconstruction projects.

8(d) For the 2014-2015 fiscal year and each fiscal year
9thereafter, where the General Assembly makes an appropriation to
10the Department of Education in the General Appropriation Act,
11for the purpose of payments on account of annual rental or
12sinking fund charges on school buildings, including charter
13schools, in excess of the amount appropriated to that line item
14for the 2013-2014 fiscal year, the department shall first use
15the additional funding to offer lump sum reimbursement to school
16districts as provided for in this section. <-each school district
17construction or reconstruction project receives approval for
18Commonwealth reimbursement by the department. A school district
19that does not agree to a lump sum payment under this section
20shall retain its place in the order in which the department
21reimburses school districts.

22 <-(e) <-(d) No later than twelve (12) months after the
23effective date of this section, the department shall develop
24such rules and guidelines as may be necessary to implement this
25section.

<-26Section 2582. Reimbursement for School Districts Not
27Submitting Required Documentation.--(a) (1) Each school
28district that, as of the effective date of this section, has
29received department approval for Commonwealth reimbursement of a
30construction or reconstruction project, but has not submitted

1all additional project documentation requested by the department
2following such approval within three (3) months after the
3department's request for such documentation, shall submit the
4required documentation by October 31, 2014.

5(2) Each school district that has received department
6approval for Commonwealth reimbursement of a construction or
7reconstruction project as of the effective date of this section
8and receives a request for additional project documentation from
9the department following such approval and after the effective
10date of this section, shall submit the required documentation
11within three (3) months of the date of the request.

12(b) Each project for which a school district fails to comply
13with subsection (a) shall be removed indefinitely from the order
14in which the department reimburses school districts until the
15school district's required documentation has been approved for
16Commonwealth reimbursement of the project.

17(c) When a project is removed from the reimbursement order
18under subsection (b), the department shall advance all projects
19which are not out of compliance with subsection (a) in the
20reimbursement order without regard for the former reimbursement
21order.

22(d) Upon the department's approval of documentation
23submitted by a school district for a project that was removed
24from the reimbursement order under subsection (b), the
25department shall return the project to the reimbursement order
26based upon the date of that approval.

27(e) No later than twelve (12) months after the effective
28date of this section, the department shall develop such rules
29and guidelines as may be necessary to implement this section,
30including a process through which the department may grant

1waivers to school districts that are in the process of
2reconciling financial records, or are facing litigation or bond
3refinancing delays on the project for which the school district
4fails to comply with subsection (a).

5Section 9. For the 2014-2015 fiscal year and each fiscal
6year thereafter, the State Public School Building Authority
7shall assist all school districts with refinancing projects that
8are currently receiving State reimbursement for a portion of
9their school construction costs to make additional funds
10available through which to provide State reimbursement to
11projects that have not yet begun receiving State reimbursement.

12Section <-9 10. This act shall take effect immediately.