PRINTER'S NO. 1924
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
700
Session of
2018
INTRODUCED BY BROWNE, SCARNATI, HUGHES, COSTA, AUMENT,
EICHELBERGER, FOLMER, LANGERHOLC, MARTIN, REGAN, McGARRIGLE,
KILLION, BREWSTER, DINNIMAN, SCHWANK, ALLOWAY, LAUGHLIN,
McILHINNEY, TOMLINSON, WHITE, WARD, YAW, VOGEL, MENSCH,
STEFANO, SCAVELLO AND GORDNER, JUNE 22, 2018
REFERRED TO EDUCATION, JUNE 22, 2018
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," providing for construction and
renovation of buildings by school entities; and establishing
a grant program for maintenance projects.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949, is amended by adding an
article to read:
ARTICLE XXVI-J
CONSTRUCTION AND RENOVATION OF BUILDINGS
BY SCHOOL ENTITIES
Section 2601-J. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Adjustment factor." A fraction between zero and one
established under this article.
"Base reimbursement amount." The State median structural
cost per full-time equivalent student for completed school
building projects calculated by the department every five years.
"Department." The Department of Education of the
Commonwealth.
"Emergency." A deficiency in a school building that
prohibits the school building from being occupied or puts the
health, safety or welfare of students at risk.
"Full-time equivalent building capacity." The sum of the
products of the room capacity multiplied by the cost weighting
factor for each of the project's rooms as follows:
(1) For a regular classroom that is instructional space
with no specialized structural modifications, the room
capacity shall be 25 and the cost weighting factor shall be
one.
(2) For a prekindergarten or kindergarten classroom that
is instructional space with no specialized structural
modifications, the room capacity shall be 25 and the cost
weighting factor shall be one.
(3) For a special education classroom, the room capacity
shall be 15 and the cost weighting factor shall be one.
(4) For an alternative education classroom, the room
capacity shall be 20 and the cost weighting factor shall be
one.
(5) For an art and music classroom, including a band
room, orchestra room and choral room, the room capacity shall
be 25 and the costs weighting factor shall be one and one-
tenth.
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(6) For a career and technical education classroom or
television studio, the room capacity shall be 20 and the cost
weighting factor shall be one and six-tenths.
(7) For a laboratory, including a science laboratory,
business room and computer laboratory, the room capacity
shall be 25 and the cost weighting factor shall be one and
three-tenths.
(8) For a library or gymnasium, including an auxiliary
gymnasium, the room capacity shall be 50 and the cost
weighting factor shall be one and four-tenths.
A planetarium, natatorium and administration building shall not
be included.
"Program." The maintenance project grant program established
under this article.
"Project." The construction of a new building, the addition
to an existing building or the renovation to an existing
building.
"School entity." A school district or career and technical
center.
"Secretary." The Secretary of Education of the Commonwealth.
"Wealth factor." As follows:
(1) For a career and technical center, the market value
aid ratio of the career and technical center.
(2) For a school district, the greater of the market
value aid ratio of the school district and the result of the
following calculation:
(i) Multiply the school district's median household
income index by the school district's local effort
capacity index.
(ii) Divide the State median of the products in
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subparagraph (i) by the school district's product in
subparagraph (i).
(iii) Subtract 1 from 0.5 and multiply the
difference.
(iv) Determine the greater of the product in
subparagraph (iii) and 0.1500.
(v) If applicable, add the following amount to the
amount determined under subparagraph (iv) :
(A) If the school district qualifies for the
sparsity size adjustment under section 2502.53(c)(1)
(vii), the amount of 0.1000.
(B) If the school district qualifies for the
concentrated poverty weight under section 2502.53(c)
(1)(iv), the amount of 0.0500.
Section 2602-J. School construction and renovation approval
process.
(a) General rule.--To be eligible to receive reimbursement
from the Commonwealth for costs of a project, a school entity
must receive appropriate approval from the department. To be
eligible to receive approval, a school entity shall comply with
the following process as developed and administered by the
department under this section:
(1) Part 1 - Project Justification.
(i) The school entity must submit an application
containing the following to the department pursuant to
the requirements developed by the department:
(A) A school entity-wide facility study that is
not more than five years old.
(B) Evidence of the school entity's approval of
the project.
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(C) The educational specifications of the
project.
(D) A design overview, drawings and scheduled
area floor plan for the project.
(E) A site plan for the project.
(F) Preliminary materials required under section
701.1.
(ii) To approve a school entity's application under
this paragraph, the department shall:
(A) Verify the existence of the school entity's
facility study.
(B) Verify the school entity's approval of the
project.
(C) Assess whether the project meets educational
specifications and enrollment needs.
(D) Review the project's compliance with section
701.1.
(E) Calculate the project's preliminary
reimbursement amount.
(F) Verify compliance with subsection (b).
(2) Part 2 - Construction Documents.
(i) The school entity must submit an application
containing the following to the department pursuant to
the requirements developed by the department:
(A) Evidence of the school entity's intent to
award contracts.
(B) Materials required under section 701.1.
(C) Bid and construction documents for the
project.
(D) Notice of the intent to award bids and bid
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outcome materials for the project.
(E) Confirmation of the project's compliance
with the requirements of other agencies.
(F) The project's scheduled area floor plan.
(ii) To approve a school entity's application under
this paragraph, the department shall:
(A) Review bid and construction documents for
the project.
(B) Review the project's compliance with section
701.1.
(C) Confirm decisions of bids received for each
bid event for the project.
(D) Approve the project's construction documents
before contracts are signed as a condition of
reimbursement.
(E) Confirm the project has complied with the
requirements of other agencies.
(F) Review the project's updated scheduled area
floor plan and the school entity's enrollment.
(G) Calculate the project's final reimbursement
amount.
(3) Part 3 - Project Bid Awards.
(i) The school entity must submit an application
containing the following to the department pursuant to
the requirements developed by the department:
(A) Evidence of the project's approval of signed
contracts.
(B) Prime contractor certifications for the
project.
(C) Final bid tabulations for the project.
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(D) An application for reimbursement for the
project under section 2606-J.
(ii) To approve a school entity's application under
this paragraph and begin reimbursement to the school
entity under section 2606-J, the department shall:
(A) Assess the project's cost accounting based
on the actual bids.
(B) Review the project's compliance with
subsection (b).
(C) Review the project's compliance with section
701.1.
(D) Review the project's application for
reimbursement to the school entity under section
2606-J.
(4) Part 4 - Project Completion.
(i) The school entity must submit an application
containing the following to the department pursuant to
the requirements developed by the department:
(A) Within one year of occupancy, an independent
audit of the project that may correspond with the
school entity's annual audit.
(B) Attestation of the project's compliance with
section 701.1.
(ii) To approve a school entity's application under
this paragraph, the department shall:
(A) Review the project's final costs pursuant to
the independent audit.
(B) Review the project's compliance with section
701.1.
(b) Additions to and renovations of existing buildings.--
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Unless the secretary grants exception, the department may not
approve the following for school construction reimbursement:
(1) A renovation to a building on which a reimbursable
project has been approved within the preceding 20 years.
(2) An addition or renovation to an existing school
building if the cost of the addition or renovation is less
than 20% of the replacement value of the entire building.
(c) Internet-based application.--The department shall
develop an Internet-based application to comply with the
provisions of this section and provide for school entities to
submit required documents electronically via the Internet.
(d) (Reserved).
(e) Project information.--The department shall maintain the
information submitted and reviewed under this section in an
electronic format and make project information available
electronically to the applicant school entity.
Section 2603-J. High-performance building standards.
(a) Recognition of standards.--
(1) The secretary shall recognize the United States
Green Building Council's Leadership in Energy and
Environmental Design green building rating system or two,
three or four Globes under the Green Building Initiative's
Green Globes Green Building Rating System as high-performance
building standards and the department shall use the standards
in the administration of this article.
(2) The secretary may recognize other high-performance
building standards that meet or exceed the standards outlined
under paragraph (1), and the department shall use the other
recognized standards in the administration of this article.
(b) Reimbursement enhancement.--
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(1) A school entity that utilizes the high-performance
building standards for a project under subsection (a) and
satisfies the requirement under paragraph (2) shall receive a
10% increase above the amount calculated under section 2607-
J.
(2) For a school district to receive the reimbursement
incentive for a project under paragraph (1), the school
entity must provide the department with a projection showing
a positive return on investment over the building's lifetime
for utilizing the high-performance building standards when
compared to regular construction practices.
(3) The department shall develop a process, in
coordination with the application process in section 2602-J,
for awarding an enhanced reimbursement for compliance with
high-performance building standards.
Section 2604-J. Maintenance projects.
(a) Grant program to be established.--The department shall
establish a maintenance project grant program to support school
entity maintenance projects.
(b) Eligibility.--Maintenance projects that are eligible for
grants under this section shall include the following:
(1) Roof repairs and replacement.
(2) Heating, ventilation and air conditioning equipment.
(3) Boilers and controls.
(4) Plumbing systems.
(5) Energy savings projects.
(6) Health and safety upgrades.
(7) Emergencies.
(8) Other projects approved by the secretary.
(c) Application process.--The department shall develop a
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process through which school entities may submit applications
for grant awards.
(d) Funding rubric.--The department shall develop a rubric
to prioritize grant awards under this section. The rubric shall
consider the following:
(1) School entity wealth.
(2) Prior receipt of grant awards.
(3) Building conditions.
(4) Emergencies.
(5) Safety and security.
(e) Local match required.--
(1) A school entity shall provide a 50% match for each
grant awarded.
(2) No matching funds shall be required for a project
that is determined by the secretary to be an emergency.
(f) Limitation on grant award.--
(1) No grant award for a maintenance project may exceed
$1,000,000.
(2) No school entity may receive an annual allocation of
grants that exceeds 20% of the funds available under the
program.
(g) Funding.--
(1) The program shall be funded from a set-aside equal
to 25% of the appropriation for school building projects
annually under this article.
(2) No less than 20% of the funds allocated to the
program under subsection (h)(1) shall be awarded to projects
that enhance school building safety and security.
(3) In any fiscal year when funds are available for
grants under the program as provided in paragraph (1), the
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department shall allocate 50% of the set-aside for grants by
December 31 and the other 50% of the set-aside for grants not
later than June 30 of that fiscal year.
(h) Transmission of information to General Assembly.--The
department shall annually transmit grant award information to
the Appropriations Committee of the Senate and the
Appropriations Committee of the House of Representatives,
including grant amounts and scoring from the rubric under
subsection (d).
Section 2605-J. Building condition assessments.
(a) Duties of department.--
(1) The department shall develop guidelines for school
districts to report information related to school building
safety, inventory and condition. The guidelines shall include
a uniform building condition assessment to be completed every
10 years for school districts that includes, but is not
limited to, a projection of costs to maintain and renovate
existing school buildings.
(2) The department shall post completed building
condition assessments on the department's publicly accessible
Internet website.
(3) The department shall provide additional points under
the funding rubric contained in section 2604-J(d) for grants
applied for by school districts that complete building
condition assessments.
(b) Completion incentive.--A school district that completes
a building condition assessment shall receive a 2% increase
above the amount calculated under section 2606-J. The department
shall develop a process, in coordination with the application
process in section 2602-J, for awarding an enhanced
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reimbursement for completing a school building assessment.
Section 2606-J. Project reimbursement.
(a) General rule.--The Commonwealth shall reimburse a school
entity that receives department approval on an application under
section 2602-J(a)(3) by the amount calculated by:
(1) Multiplying the base reimbursement amount by the
adjustment factor.
(2) Multiplying the product under paragraph (1) by the
lesser of the project's enrollment and full-time equivalent
building capacity.
(3) Multiplying the product under paragraph (2) by the
school entity's wealth factor.
(b) Limitation.--The maximum payment under this section
shall not exceed 65% of a project's structural cost.
(c) Installment payments.--A school entity shall receive
equal payments over 20 years totaling the amount determined for
reimbursement under subsections (a) and (b).
(d) Adjustment factor.--Beginning July 1, 2019, the
adjustment factor shall be zero.
Section 2607-J. School entity education.
The Department of Labor and Industry shall make information
available to school entities to help them understand the
difference between "public work" and "maintenance work" based on
industry standards and the act of August 15, 1961 (P.L.987,
No.442), known as the Pennsylvania Prevailing Wage Act.
Section 2608-J. Applicability.
This article shall apply to projects for which approval and
reimbursement is sought after the effective date of this
section.
Section 2609-J. Guidelines.
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The department shall issue guidelines for the administration
of this article not later than March 31, 2019.
Section 2. This act shall take effect as follows:
(1) The addition of section 2602-J(d) of the act and
this section shall take effect immediately.
(2) The remainder of this act shall take effect July 1,
2019.
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