H0894B1877A02106       DMS:JSL 06/25/07    #90             A02106
                        AMENDMENTS TO HOUSE BILL NO. 894
                                    Sponsor:  REPRESENTATIVE GODSHALL
                                           Printer's No. 1877

     1       Amend Title, page 1, line 6, by removing the period after
     2    "lease" and inserting
     3               and for approved reimbursable rental for certain
     4               leases and approved reimbursable sinking fund charges
     5               on indebtedness.

     6       Amend Bill, page 5, by inserting between lines 15 and 16
     7       Section 2.  Section 2574(a) of the act, amended September 29,
     8    1959 (P.L.992, No.407), is amended to read:
     9       Section 2574.  Approved Reimbursable Rental for Leases
    10    Hereafter Approved and Approved Reimbursable Sinking Fund
    11    Charges on Indebtedness.--(a)  For school building projects for
    12    which the general construction contract is awarded subsequent to
    13    March 22, 1956, and for approved school building projects for
    14    which the general construction contract was awarded but for
    15    which a lease was not approved by the Department of [Public
    16    Instruction] Education prior to March 22, 1956, the Department
    17    of [Public Instruction] Education shall calculate an approved
    18    reimbursable rental or approved reimbursable sinking fund
    19    charges. Reimbursable sinking fund charges may include charges
    20    for temporary indebtedness within constitutional limitations, if
    21    the indebtedness is incurred for approved [permanent]
    22    improvements to the school plant including the cost of acquiring
    23    a suitable site for a school building, the cost of constructing
    24    a new school building, or the cost of providing needed additions
    25    or alterations to existing buildings for which no bond issue is
    26    provided and for which an approved obligation or obligations
    27    other than bonds have been issued and the obligation or
    28    obligations are payable within five (5) years from the date of
    29    issue of the obligation in equal annual installments. As used in
    30    this section, "building" shall include a permanent structure
    31    that contains or is attached to relocatable or modular
    32    classrooms. The term "relocatable or modular classroom" shall
    33    mean a classroom not of a permanent nature which meets the
    34    criteria and specifications of the Department of Education.
    35       Approved reimbursable rental or sinking fund charge shall
    36    consist of that part of the annual rental or sinking fund charge
    37    attributable to--
    38       (1)  The cost of acquiring the land upon which the school
    39    buildings are situate, the cost of necessary rough grading to
    40    permit proper placement of the building upon said land and the

     1    cost of sewage treatment plants, as required by the Department
     2    of Health, to the extent that such costs are deemed reasonable
     3    by the Department of [Public Instruction] Education and the
     4    interest on such costs of acquisition, grading and sewage
     5    treatment plants earned subsequent to date the construction
     6    contract is awarded, and
     7       (2)  The approved building construction cost and the interest
     8    on such construction cost.
     9       * * *

    10       Amend Sec. 2, page 5, line 16, by striking out "2" and
    11    inserting
    12               3















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