PRINTER'S NO. 441
No. 417 Session of 2005
INTRODUCED BY MUSTO, KITCHEN, TARTAGLIONE, COSTA, STOUT, O'PAKE,
RAFFERTY, D. WHITE, LEMMOND, BOSCOLA, ERICKSON, WOZNIAK,
GREENLEAF, PIPPY, PILEGGI, STACK, C. WILLIAMS, GORDNER,
MELLOW, FUMO, HUGHES, LOGAN AND RHOADES, MARCH 21, 2005
REFERRED TO EDUCATION, MARCH 21, 2005
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 reimbursable
6 rental for leases and reimbursable sinking fund charges on
7 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, subsections
13 (b) and (c) are amended by adding paragraphs and the section is
14 amended by adding subsections to read:
15 Section 2574. Approved Reimbursable Rental for Leases
16 Hereafter Approved and Approved Reimbursable Sinking Fund
17 Charges on Indebtedness.--* * *
18 (b) For new school buildings the approved building
19 construction cost shall be the lesser of
1 * * *
2 (4) For school buildings for which the general construction
3 contract is awarded subsequent to January 1, 2005, and for
4 approved school building projects for which the general
5 construction contract was awarded but for which a lease or
6 general obligation bond resolution was not approved by the
7 Department of Education prior to January 1, 2005, the product of
8 the rated pupil capacity as determined by the Department of
9 Education at the time the project is approved and (i) four
10 thousand seven hundred dollars ($4,700) in the case of
11 elementary schools, (ii) six thousand two hundred dollars
12 ($6,200) in the case of secondary schools, (iii) an amount in
13 the case of combined elementary-secondary schools obtained by
14 multiplying the rated elementary pupil capacity by four thousand
15 seven hundred dollars ($4,700) and the rated secondary pupil
16 capacity by six thousand two hundred dollars ($6,200) and
17 dividing the sum by the total rated pupil capacity.
18 (b.1) For school buildings constructed from school facility
19 design clearinghouse standards received from a Department of
20 Education approved school facility design clearinghouse, for
21 which the general construction contract is awarded subsequent to
22 January 1, 2005, and for approved school building projects for
23 which the general construction contract was awarded but for
24 which a lease or general obligation bond resolution was not
25 approved by the Department of Education prior to January 1,
26 2005, the approved building construction cost shall additionally
27 include the product of the rated pupil capacity as determined by
28 the Department of Education at the time the project is approved
29 and (i) four hundred seventy dollars ($470) in the case of
30 elementary schools, (ii) six hundred twenty dollars ($620) in
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1 the case of secondary schools, (iii) an amount in the case of
2 combined elementary-secondary schools obtained by multiplying
3 the rated elementary pupil capacity by four hundred seventy
4 dollars ($470) and the rated secondary pupil capacity by six
5 hundred twenty dollars ($620) and dividing the sum by the total
6 rated pupil capacity.
7 (c) For additions or alterations to existing buildings
8 approved building construction cost shall be the lesser of
9 * * *
10 (4) For school buildings for which the general construction
11 contract is awarded subsequent to January 1, 2005, and for
12 approved school building projects for which the general
13 construction contract was awarded but for which a lease or
14 general obligation bond resolution was not approved by the
15 Department of Education prior to January 1, 2005, the difference
16 obtained by subtracting the appraisal value of the existing
17 building from the product of the rated pupil capacity of the
18 altered or expanded building as determined by the Department of
19 Education at the time the project is approved and (i) four
20 thousand seven hundred dollars ($4,700) in the case of
21 elementary schools, (ii) six thousand two hundred dollars
22 ($6,200) in the case of secondary schools, (iii) an amount in
23 the case of combined elementary-secondary schools obtained by
24 multiplying the rated elementary pupil capacity by four thousand
25 seven hundred dollars ($4,700) and the rated secondary pupil
26 capacity by six thousand two hundred dollars ($6,200) and
27 dividing the sum by the total rated pupil capacity of the
28 altered or expanded building.
29 * * *
30 (c.3) For school buildings for which the general
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1 construction contract is awarded on or after January 1, 2005,
2 and for approved school building projects for which the general
3 construction contract was awarded but for which a lease or
4 general obligation bond resolution was not approved by the
5 Department of Education prior to January 1, 2005, and where the
6 general construction contract alters or adds to an existing
7 school building in lieu of construction of a new school
8 building, the approved building construction cost shall
9 additionally include the difference obtained by subtracting the
10 appraisal value of the existing building from the product of the
11 rated pupil capacity of the altered or expanded building as
12 determined by the Department of Education at the time the
13 project is approved and (i) four hundred seventy dollars ($470)
14 in the case of elementary schools, (ii) six hundred twenty
15 dollars ($620) in the case of secondary schools, (iii) an amount
16 in the case of combined elementary-secondary schools obtained by
17 multiplying the rated elementary pupil capacity by four hundred
18 seventy dollars ($470) and the rated secondary pupil capacity by
19 six hundred twenty dollars ($620) and dividing the sum by the
20 total rated pupil capacity.
21 (c.4) For school buildings for which the general
22 construction contract is awarded on or after January 1, 2005,
23 and for approved school building projects for which the general
24 construction contract was awarded but for which a lease or
25 general obligation bond resolution was not approved by the
26 Department of Education prior to January 1, 2005, and where the
27 school building receives a silver, gold or platinum
28 certification from the United States Green Building Council's
29 Leadership in Energy and Environmental Design Green Building
30 Rating System on or after January 1, 2005, the Department of
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1 Education shall adjust the approved building construction cost
2 to additionally include the product of the rated pupil capacity
3 as determined by the Department of Education at the time the
4 project is approved and (i) four hundred seventy dollars ($470)
5 in the case of elementary schools, (ii) six hundred twenty
6 dollars ($620) in the case of secondary schools, (iii) an amount
7 in the case of combined elementary-secondary schools obtained by
8 multiplying the rated elementary pupil capacity by four hundred
9 seventy dollars ($470) and the rated secondary pupil capacity by
10 six hundred twenty dollars ($620) and dividing the sum by the
11 total rated pupil capacity. The Department of Education in
12 consultation with the Governor's Green Government Council shall
13 issue guidelines to carry out this section.
14 * * *
15 (e) For area vocational-technical school and technical
16 institute projects leased subsequent to July 1, 1964, by or for
17 lease to a board of school directors authorized to operate such
18 a school, the Department of Education shall calculate an
19 approved reimbursable rental charge.
20 For area vocational-technical school and technical institute
21 projects constructed or purchased subsequent to July 1, 1964, by
22 a board of school directors authorized to operate such a school,
23 the Department of Education may calculate an approved
24 reimbursable sinking fund charge.
25 Approved reimbursable rental or sinking fund charge shall
26 consist of that part of the annual rental or sinking fund
27 attributable to:
28 (1) Cost of acquiring land and preparing it for use to the
29 extent that such costs are deemed reasonable by the Department
30 of Education and the interest on such cost of acquisition, cost
20050S0417B0441 - 5 -
1 of preparation and the cost of sewage treatment and the interest
2 on such cost.
3 (2) Machinery, apparatus, furniture and equipment and all
4 other necessary expenses and interest charges, but excluding
5 architects' fees in excess of six percent of the construction
6 cost.
7 The approved building construction cost and the interest on
8 such construction cost shall not exceed the product of the rated
9 full-time pupil capacity, as determined by the Department of
10 Education at the time the project is approved and two thousand
11 two hundred dollars ($2,200).
12 The provisions of the foregoing paragraph shall apply to all
13 school building projects for which the general construction
14 contract is awarded prior to July 1, 1966, and for approved
15 school building projects for which a lease was approved by the
16 Department of Education prior to July 1, 1966. For school
17 buildings for which the general construction contract is awarded
18 subsequent to July 1, 1966, and for approved school building
19 projects for which the general construction contract was awarded
20 but for which a lease was not approved by the Department of
21 Education prior to July 1, 1966, the approved building
22 construction cost and the interest on such construction cost
23 shall not exceed the product of the rated full-time pupil
24 capacity, as determined by the Department of Education at the
25 time the project is approved, and three thousand seven hundred
26 dollars ($3700).
27 For school buildings for which the general construction
28 contract is awarded subsequent to July 1, 1984, and for approved
29 school building projects for which the general construction
30 contract was awarded but for which a lease or general obligation
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1 bond resolution was not approved by the Department of Education
2 prior to July 1, 1984, the approved building construction cost
3 and the interest on such construction cost shall not exceed the
4 product of the rated full-time pupil capacity, as determined by
5 the Department of Education at the time the project is approved,
6 and six thousand three hundred dollars ($6,300).
7 For school buildings for which the general construction
8 contract is awarded subsequent to January 1, 2005, and for
9 approved school building projects for which the general
10 construction contract was awarded but for which a lease or
11 general obligation bond resolution was not approved by the
12 Department of Education prior to January 1, 2005, the approved
13 building construction cost shall not exceed the product of the
14 rated full-time pupil capacity, as determined by the Department
15 of Education at the time the project is approved, and seven
16 thousand six hundred dollars ($7,600).
17 The Department of Education shall not approve the expenditure
18 of any funds borrowed or obtained by the sale of bonds by any
19 authority, nonprofit corporation, profit corporation, company or
20 individual for construction of area vocational-technical schools
21 or technical institutes for bleachers, athletic field, lighting
22 equipment or apparatus used to promote and conduct
23 interscholastic athletics.
24 * * *
25 Section 2. This act shall take effect immediately.
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