THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DRUCKER, BELFANTI, BRENNAN, BROWN, CALTAGIRONE, DePASQUALE, FRANKEL, GEIST, GRUCELA, HARPER, JOHNSON, JOSEPHS, KORTZ, MAHONEY, MANN, McILVAINE SMITH, MELIO, MUNDY, MURT, M. O'BRIEN, ROSS, SIPTROTH, STURLA AND VULAKOVICH, MARCH 3, 2009

REFERRED TO COMMITTEE ON EDUCATION, MARCH 3, 2009  

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," further providing for referendum or

public hearing required prior to construction or lease and

for approved reimbursable rental for certain leases and

approved reimbursable sinking fund charges on indebtedness.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 701.1 of the act of March 10, 1949 (P.L.

30, No.14), known as the Public School Code of 1949, amended

July 4, 2004 (P.L.536, No.70), is amended to read:

Section 701.1.  Referendum or Public Hearing Required Prior

to Construction or Lease.--Except where the approval of the

electors is obtained to incur indebtedness to finance the

construction of a school project, the board of school directors

of any school district of the second, third or fourth classes,

shall not construct, enter into a contract to construct or enter

into a contract to lease a new school building or substantial

addition to an existing school building without the consent of

the electors obtained by referendum or without holding a public

hearing as hereinafter provided. In the event that a new school

building or a substantial addition to an existing building is to

be constructed or leased, the school board shall, by a majority

vote of all its members, authorize a maximum project cost and a

maximum building construction cost to be financed by the

district or amortized by lease rentals to be paid by the

district. Building construction cost shall consist of the cost

of all building construction including general construction

costs, plumbing, heating, electrical, ventilating and other

structural costs, equipment and fixtures and architectural and

engineering fees relating thereto, but not including costs for

site acquisition and development, rough grading to receive the

building, sewage treatment facilities or equivalent capital

contributions, and architectural and engineering fees relating

thereto. Building construction cost shall not include any

additional LEED costs. In all cases, a public hearing shall be

held not later than thirty (30) days before the school district

submits the initial building construction cost and LEED cost 

estimates to the Department of Education for approval. Notice of

the hearing shall be given not later than twenty (20) days

before the date of the scheduled hearing. In the event that the

maximum building construction cost authorization exceeds the

aggregate building expenditure standard hereinafter specified,

the aforesaid authorization of the school board shall be

submitted to the electors of the school district for their

approval within six (6) months prior to submission of the final

building construction cost bids to the Department of Education

for approval. Such referendum shall be held in the same manner

as provided by law for the approval of the incurring of

indebtedness by referendum. The question as submitted shall

specify the maximum project cost, the maximum building

construction cost and the annual sinking fund charge or lease

rental to be incurred by the school district and the portion of

such charge or rental expected to be reimbursed by the

Commonwealth. If the final building construction cost bids to be

submitted to the Department of Education for approval are less

than the aggregate building expenditure standard hereafter

specified but exceed by eight (8) per cent or more the initial

building construction cost estimates submitted to the Department

for approval, a second public hearing shall be held before the

Department shall give its final approval.

The applicable aggregate building expenditure standard shall

be a total amount calculated for each building or substantial

addition by multiplying the rated pupil capacity under the

approved room schedule by the following: two thousand eight

hundred dollars ($2,800) for each pupil of rated elementary

capacity; four thousand two hundred dollars ($4,200) for each

pupil of rated secondary capacity in grades seven, eight and

nine and five thousand two hundred dollars ($5,200) for each

pupil of rated secondary capacity in grades ten, eleven and

twelve and five thousand two hundred dollars ($5,200) for each

pupil of rated vocational-technical capacity in grades ten,

eleven and twelve to not include the cost of equipment and

fixtures in such vocational-technical schools: Provided,

however, That each of the preceding per pupil amounts shall be

adjusted by the Department of Education on July 1, 1974; and

annually thereafter through July 1, 2003, by multiplying said

amounts by the ratio of the composite construction cost index

compiled and published by the United States Department of

Commerce for the preceding calendar year to such index for the

next preceding calendar year; and Further Provided, however,

That each of the preceding per pupil amounts shall be adjusted

by the Department of Education on July 1, 2004; and annually

thereafter by multiplying said amounts by the ratio of the

Building Cost Index published by the McGraw-Hill Companies for

the preceding calendar year to such index for the next preceding

calendar year. Rated elementary pupil capacity or rated

secondary pupil capacity for any school building shall be the

rated pupil capacity determined on the basis of the method used

by the Department for school building reimbursement purposes

during the school year 1971-1972.

For purposes of this section:

(1)  "Site acquisition" includes the cost of land and mineral

rights, demolition and clearing, rights-of-way and related

utility relocations, surveys and soils analysis, and the cost of

all fees relating thereto.

(2)  "Site development" includes excavation, grouting or

shoring, special foundations for buildings, access roads to

site, utilities on site, extension of utilities to site.

(3)  "Equipment and fixtures" means property fixed or movable

which is incidental and necessary to conduct the educational

program, and includes, but is not limited to movable equipment

such as desks, chairs, tables, portable physical education

equipment, audio-visual equipment and science, homemaking,

industrial art and business equipment and instructional

materials and fixtures such as casework, laboratory equipment,

kitchen equipment, auditorium seating and any other special

fixtures or equipment required to conduct a particular

educational program.

(4)  "Substantial addition" means more than twenty (20) per

centum of the area and replacement value of the structure to

which the improvement is to be added.

(5)  "LEED" means the Leadership in Energy and Environmental

Design, a program designed by the United States Green Building

Council and committed to designing buildings in an energy-

efficient and environmentally conservative manner.

(6)  "LEED for schools rating system" means the most current

version of the Leadership in Energy and Environmental Design

(LEED) program designed by the United States Green Building

Council (USGBC) to measure the energy and environmental

performance of K-12 schools.

(7)  "LEED cost" means the design, construction and

registration costs directly attributable to achieving points

under the Leadership in Energy and Environmental Design (LEED)

for schools rating system, including, but not limited to, energy

performance benchmarking, life-cycle cost assessments, low-

impact development storm water management technologies, energy

and lighting modeling, alternative energy technology, building

commissioning, and registration with the United States Green

Building Council (USGBC).

Section 2.  Section 2574(a) of the act, amended September 29,

1959 (P.L.992, No.407), is amended to read:

Section 2574.  Approved Reimbursable Rental for Leases

Hereafter Approved and Approved Reimbursable Sinking Fund

Charges on Indebtedness.--(a)  For school building projects for

which the general construction contract is awarded subsequent to

March 22, 1956, and for approved school building projects for

which the general construction contract was awarded but for

which a lease was not approved by the Department of [Public

Instruction] Education prior to March 22, 1956, the Department

of [Public Instruction] Education shall calculate an approved

reimbursable rental or approved reimbursable sinking fund

charges. Reimbursable sinking fund charges may include charges

for temporary indebtedness within constitutional limitations, if

the indebtedness is incurred for approved [permanent] 

improvements to the school plant including the cost of acquiring

a suitable site for a school building, the cost of constructing

a new school building, or the cost of providing needed additions

or alterations to existing buildings for which no bond issue is

provided and for which an approved obligation or obligations

other than bonds have been issued and the obligation or

obligations are payable within five (5) years from the date of

issue of the obligation in equal annual installments. As used in

this section, "building" shall include a permanent structure

that contains or is attached to relocatable or modular

classrooms. The term "relocatable or modular classroom" shall

mean a classroom not of a permanent nature which meets the

criteria and specifications of the Department of Education.

Approved reimbursable rental or sinking fund charge shall

consist of that part of the annual rental or sinking fund charge

attributable to--

(1)  The cost of acquiring the land upon which the school

buildings are situate, the cost of necessary rough grading to

permit proper placement of the building upon said land and the

cost of sewage treatment plants, as required by the Department

of Health, to the extent that such costs are deemed reasonable

by the Department of [Public Instruction] Education and the

interest on such costs of acquisition, grading and sewage

treatment plants earned subsequent to date the construction

contract is awarded, and

(2)  The approved building construction cost and the interest

on such construction cost.

* * *

Section 3.  This act shall take effect in 60 days.