PRINTER'S NO. 893
No. 835 Session of 1999
INTRODUCED BY SAYLOR, CHADWICK, DRUCE, GORDNER, FLICK, NAILOR,
BAKER, BARD, BARRAR, BELARDI, BISHOP, CAWLEY, CLARK,
L. I. COHEN, COLAFELLA, CORRIGAN, DALEY, DALLY, FAIRCHILD,
FORCIER, GANNON, GODSHALL, GRUCELA, HALUSKA, HARHAI,
HENNESSEY, HUTCHINSON, LAUGHLIN, LEH, MAITLAND, MANDERINO,
MARKOSEK, MASLAND, McCALL, S. MILLER, MUNDY, NICKOL, PESCI,
PIPPY, PLATTS, ROSS, SCHRODER, SCHULER, SEMMEL, SOLOBAY,
STABACK, STAIRS, STEIL, STERN, SURRA, E. Z. TAYLOR, TIGUE,
TRELLO, TRICH, VAN HORNE, WILLIAMS AND YUDICHAK,
MARCH 10, 1999
REFERRED TO COMMITTEE ON EDUCATION, MARCH 10, 1999
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," further providing for approved
6 reimbursable rental for leases hereafter approved and
7 approved reimbursable sinking fund charges on indebtedness.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 2574(e) of the act of March 10, 1949
11 (P.L.30, No.14), known as the Public School Code of 1949,
12 amended July 10, 1987 (P.L.286, No.50), is amended and
13 subsections (b) and (c) are amended by adding clauses to read:
14 Section 2574. Approved Reimbursable Rental for Leases
15 Hereafter Approved and Approved Reimbursable Sinking Fund
16 Charges on Indebtedness.--* * *
1 (b) For new school buildings the approved building
2 construction cost shall be the lesser of
3 * * *
4 (4) For school buildings for which the general construction
5 contract is awarded on or after July 1, 1999, the product of the
6 rated pupil capacity as determined by the Department of
7 Education at the time the project is approved and (i) four
8 thousand seven hundred dollars ($4,700) in the case of
9 elementary schools, (ii) six thousand two hundred dollars
10 ($6,200) in the case of secondary schools, (iii) an amount in
11 the case of combined elementary-secondary schools obtained by
12 multiplying the rated elementary pupil capacity by four thousand
13 seven hundred dollars ($4,700) and the rated secondary pupil
14 capacity by six thousand two hundred dollars ($6,200) and
15 dividing the sum by the total rated pupil capacity.
16 (c) For additions or alterations to existing buildings
17 approved building construction cost shall be the lesser of
18 * * *
19 (4) For school buildings for which the general construction
20 contract is awarded on or after July 1, 1999, the difference
21 obtained by subtracting the appraisal value of the existing
22 building from the product of the rated pupil capacity of the
23 altered or expanded building as determined by the Department of
24 Education at the time the project is approved and (i) four
25 thousand seven hundred dollars ($4,700) in the case of
26 elementary schools, (ii) six thousand two hundred dollars
27 ($6,200) in the case of secondary schools, (iii) an amount in
28 the case of combined elementary-secondary schools obtained by
29 multiplying the rated elementary pupil capacity by four thousand
30 seven hundred dollars ($4,700) and the rated secondary pupil
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1 capacity by six thousand two hundred dollars ($6,200) and
2 dividing the sum by the total rated pupil capacity of the
3 altered or expanded building.
4 * * *
5 (e) For area vocational-technical school and technical
6 institute projects leased subsequent to July 1, 1964, by or for
7 lease to a board of school directors authorized to operate such
8 a school, the Department of Education shall calculate an
9 approved reimbursable rental charge.
10 For area vocational-technical school and technical institute
11 projects constructed or purchased subsequent to July 1, 1964, by
12 a board of school directors authorized to operate such a school,
13 the Department of Education may calculate an approved
14 reimbursable sinking fund charge.
15 Approved reimbursable rental or sinking fund charge shall
16 consist of that part of the annual rental or sinking fund
17 attributable to:
18 (1) Cost of acquiring land and preparing it for use to the
19 extent that such costs are deemed reasonable by the Department
20 of Education and the interest on such cost of acquisition, cost
21 of preparation and the cost of sewage treatment and the interest
22 on such cost.
23 (2) Machinery, apparatus, furniture and equipment and all
24 other necessary expenses and interest charges, but excluding
25 architects' fees in excess of six percent of the construction
26 cost.
27 The approved building construction cost and the interest on
28 such construction cost shall not exceed the product of the rated
29 full-time pupil capacity, as determined by the Department of
30 Education at the time the project is approved and two thousand
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1 two hundred dollars ($2,200).
2 The provisions of the foregoing paragraph shall apply to all
3 school building projects for which the general construction
4 contract is awarded prior to July 1, 1966, and for approved
5 school building projects for which a lease was approved by the
6 Department of Education prior to July 1, 1966. For school
7 buildings for which the general construction contract is awarded
8 subsequent to July 1, 1966, and for approved school building
9 projects for which the general construction contract was awarded
10 but for which a lease was not approved by the Department of
11 Education prior to July 1, 1966, the approved building
12 construction cost and the interest on such construction cost
13 shall not exceed the product of the rated full-time pupil
14 capacity, as determined by the Department of Education at the
15 time the project is approved, and three thousand seven hundred
16 dollars ($3700).
17 For school buildings for which the general construction
18 contract is awarded subsequent to July 1, 1984, and for approved
19 school building projects for which the general construction
20 contract was awarded but for which a lease or general obligation
21 bond resolution was not approved by the Department of Education
22 prior to July 1, 1984, the approved building construction cost
23 and the interest on such construction cost shall not exceed the
24 product of the rated full-time pupil capacity, as determined by
25 the Department of Education at the time the project is approved,
26 and six thousand three hundred dollars ($6,300).
27 For school buildings for which the general construction
28 contract is awarded on or after July 1, 1999, the approved
29 building construction cost and the interest on such construction
30 cost shall not exceed the product of the rated full-time pupil
19990H0835B0893 - 4 -
1 capacity, as determined by the Department of Education at the
2 time the project is approved, and seven thousand six hundred
3 dollars ($7,600).
4 The Department of Education shall not approve the expenditure
5 of any funds borrowed or obtained by the sale of bonds by any
6 authority, nonprofit corporation, profit corporation, company or
7 individual for construction of area vocational-technical schools
8 or technical institutes for bleachers, athletic field, lighting
9 equipment or apparatus used to promote and conduct
10 interscholastic athletics.
11 * * *
12 Section 2. This act shall take effect July 1, 1999.
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