Amendment 772 to House Bill 97 P.N. 1339, Regular Session 2017-2018

H0097B1339A00772 AJB:BTW 04/18/17 #90 A00772

AMENDMENTS TO HOUSE BILL NO. 97

Sponsor: REPRESENTATIVE ROEBUCK

Printer's No. 1339

Amend Bill, page 1, line 5, by inserting after "thereto,""

in grounds and buildings, further providing for lease of

buildings or portions of buildings constructed or altered for

school use;

Amend Bill, page 1, line 10, by striking out "and,"

Amend Bill, page 1, line 11, by striking out the period after

"provisions" and inserting

; and, in reimbursements by Commonwealth and between school

districts, further providing for approved reimbursable annual

rental for leases of buildings or portions of buildings for

charter school use.

Amend Bill, page 1, lines 14 through 16, by striking out all

of said lines and inserting

Section 1. Section 703.1 of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949, is

amended to read:

Section 703.1. Lease of Buildings or Portions of Buildings

Constructed or Altered for School Use.--(a) The board of school

directors of any district is hereby vested with the power and

authority to lease for an extended period of five (5) years or

more, with or without provisions for acquisition of same,

buildings or portions of buildings constructed for school use

and/or other buildings or portions of buildings altered for

school use provided such buildings comply with standards and

regulations established by the State Board of Education and the

Department of Labor and Industry.

(b) A founder, a person who serves as an administrator or

executive of an educational management service provider or an

administrator or school director for a school entity may not

receive payment for an approved reimbursable annual rental for a

lease of a building or a portion of a building for school entity

use under section 2574.3.

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(1) "Educational management service provider" shall mean any

of the following, but shall not include a charter school

foundation:

(i) A for-profit or nonprofit educational management

organization.

(ii) A school design provider.

(iii) An administrator or executive of a for-profit or

nonprofit educational management organization, including the

organization's chief executive officer, business manager or an

entity with which a board of trustees or school director of a

school entity contracts to provide educational design, business

services, comprehensive management or personnel functions or to

implement a school entity.

(2) "Founder" shall mean an individual or entity that has

established a charter school under section 1717-A, including one

or more teachers who will teach at a proposed charter school, a

parent or guardian of a student who will attend a charter school

or a nonsectarian not-for-profit corporation.

Section 1.1. Section 1525 of the act is amended to read:

Amend Bill, page 75, by inserting between lines 1 and 2

Section 18. Section 2574.3 of the act is amended by adding

subsections to read:

Section 2574.3. Approved Reimbursable Annual Rental for

Leases of Buildings or Portions of Buildings for Charter School

Use.--* * *

documentation in the school's application for funding under this

section:

(1) A copy of the signed lease agreement for the leased

building.

(2) A copy of the deed for the leased building.

(3) The names of the board of trustees, school directors and

administrators of the school entity.

(4) If applicable, the names of the administrators or

executives of the educational management service provider.

(5) If the owner of the leased building is a nonprofit

organization or a school entity foundation, the names of the

board members of the nonprofit organization or a school entity

foundation.

(d) Charter schools may not apply for and the department may

not authorize a lease reimbursement if the reimbursement is for

a lease payment to any of the following:

(1) An administrator of the school entity or a member of the

administrator's immediate family or a business with which the

administrator's immediate family is associated.

(2) A trustee of the board of trustees of the school entity

or a member of the trustee's immediate family or a business with

which the trustee's immediate family is associated.

(3) A founder or a member of the founder's immediate family

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or a business with which the founder's immediate family is

associated.

(4) An administrator or executive of the educational

management service provider or a member of the administrator's

or executive's immediate family or a business with which the

administrator's or executive's immediate family is associated.

(5) Another entity that has a financial interest as defined

in 65 Pa.C.S. § 1102 (relating to definitions) with the school

entity, except for the lease agreement.

(e) The department shall seek reimbursement from a school

entity for each inappropriate lease reimbursement within 60 days

of the inappropriate lease reimbursement.

(f) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

(1) "Founder" shall have the meaning set forth in section

703.1(c)(2).

(2) "School entity foundation" shall mean a nonprofit

organization under section 501(c)(3) of the Internal Revenue

Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), that

provides funding, resources or services to support a school

entity, either directly or through an affiliated entity.

Amend Bill, page 75, line 2, by striking out "18" and

inserting

Amend Bill, page 75, by inserting between lines 2 and 3

(1) The amendment of sections 703.1 and 2574.3 of the

act shall take effect in 60 days.

Amend Bill, page 75, line 3, by striking out "(1)" and

inserting

(2)

Amend Bill, page 75, line 5, by striking out "(2)" and

inserting

(3)

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