Regular Session 2019-2020 Senate Bill 0700 P.N. 0846

PRINTER'S NO. 846

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

700

Session of

2019

INTRODUCED BY BROWNE, SCARNATI, CORMAN, LANGERHOLC, AUMENT,

COSTA, HUGHES, DINNIMAN, BREWSTER, GORDNER, FOLMER,

TOMLINSON, DiSANTO, L. WILLIAMS, ARGALL, MARTIN, KILLION,

MENSCH, VOGEL, YAW, K. WARD, LAUGHLIN, PHILLIPS-HILL,

SCAVELLO, SCHWANK, SANTARSIERO, BLAKE, LEACH, COLLETT,

TARTAGLIONE, BROOKS, REGAN, STEFANO, BOSCOLA, KEARNEY, BAKER,

BARTOLOTTA, FONTANA, J. WARD, FARNESE, A. WILLIAMS, SABATINA,

YUDICHAK, IOVINO, MUTH, STREET AND HAYWOOD, JUNE 3, 2019

REFERRED TO EDUCATION, JUNE 3, 2019

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," providing for construction and

renovation of buildings by school entities; and establishing

a grant program for maintenance projects.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding an

article to read:

ARTICLE XXVI-J

CONSTRUCTION AND RENOVATION OF BUILDINGS

BY SCHOOL ENTITIES

Section 2601-J. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Adjustment factor." A fraction between zero and one

established under this article.

"Base reimbursement amount." The State median structural

cost per full-time equivalent student for completed school

building projects receiving reimbursement calculated by the

department for every five years prior to the effective date of

this section and every five-year period thereafter.

"Department." The Department of Education of the

Commonwealth.

"Emergency." A deficiency in a school building that

prohibits the school building or a portion of the building from

being occupied or puts the health, safety or welfare of students

at risk.

"Full-time equivalent building capacity." The sum of the

products of the room capacity multiplied by the cost weighting

factor for each of the building's rooms as follows:

(1) For a regular classroom that is instructional space

with no specialized construction, the room capacity shall be

25 and the cost weighting factor shall be one.

(2) For a prekindergarten or kindergarten classroom that

is instructional space with no specialized construction, the

room capacity shall be 25 and the cost weighting factor shall

be one.

(3) For a special education classroom, the room capacity

shall be 15 and the cost weighting factor shall be one.

(4) For an alternative education classroom, the room

capacity shall be 20 and the cost weighting factor shall be

one.

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(5) For an art or music classroom, including a band

room, orchestra room or choral room, the room capacity shall

be 25 and the cost weighting factor shall be one and one-

tenth.

(6) For a career and technical education classroom or

television studio, the room capacity shall be 20 and the cost

weighting factor shall be one and six-tenths.

(7) For a laboratory, including a science laboratory,

business room, consumer science room or computer laboratory,

the room capacity shall be 25 and the cost weighting factor

shall be one and three-tenths.

(8) For a library or gymnasium, including an auxiliary

gymnasium, the room capacity shall be 50 and the cost

weighting factor shall be one and four-tenths.

For the purpose of performing the full-time equivalent building

capacity calculation, a planetarium, natatorium and

administration building shall not be included.

"Program." The maintenance project grant program established

under this article.

"Project." The construction of a new building, the addition

to an existing building or the renovation of an existing

building.

"School entity." A school district or career and technical

center.

"Secretary." The Secretary of Education of the Commonwealth.

"Wealth factor." As follows:

(1) For a career and technical center, the market value

aid ratio of the career and technical center.

(2) For a school district, the greater of the market

value aid ratio of the school district or the result of the

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following calculation:

(i) Multiply the school district's median household

income index under section 2502.53(d)(5) by the school

district's local effort capacity index under section

2502.53(c)(4).

(ii) Divide the State median of the products in

subparagraph (i) by the school district's product in

subparagraph (i).

(iii) Multiply the quotient in subparagraph (ii) by

0.5 and subtract the product from 1.

(iv) Determine the greater of the product in

subparagraph (iii) and 0.1500.

(v) If applicable, add the following amount to the

amount determined under subparagraph (iv) :

(A) If the school district qualifies for the

sparsity size adjustment under section 2502.53(c)(1)

(vii), the amount of 0.1000.

(B) If the school district qualifies for the

concentrated poverty weight under section 2502.53(c)

(1)(iv), the amount of 0.0500.

Section 2602-J. School construction and renovation approval

process.

(a) General rule.--To be eligible to receive reimbursement

from the Commonwealth for costs of a project, a school entity

must receive appropriate approval from the department. To be

eligible to receive approval, a school entity shall comply with

the following process as developed and administered by the

department in the order prescribed under this section:

(1) Part 1 - Project Justification.

(i) The school entity must first submit an

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application containing the following to the department

pursuant to the requirements developed by the department:

(A) The summary page from a school entity-wide

facility study that is not more than five years old.

(B) A school board resolution approving the

project.

(D) A design overview, drawings and scheduled

area floor plan for the project.

(E) A site plan for the project.

(F) Preliminary materials required under section

701.1.

(ii) To approve a school entity's application under

this paragraph, the department shall:

(A) Verify compliance with the school entity's

facility study.

(B) Verify receipt of the school board

resolution approving the project.

specifications and enrollment needs.

(D) Review the project's compliance with section

701.1.

(E) Calculate the project's preliminary

reimbursement amount.

(F) Verify compliance with subsection (b).

(2) Part 2 - Construction Documents.

(i) The school entity must submit an application

containing the following to the department pursuant to

the requirements developed by the department:

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(A) Evidence of the school entity's intent to

award contracts.

(B) Materials required under section 701.1.

project.

(D) Notice of the intent to award bids and bid

outcome materials for the project.

(E) Confirmation of the project's compliance

with the requirements of other agencies.

(F) The project's updated scheduled area floor

plan.

(ii) To approve a school entity's application under

this paragraph, the department shall:

(A) Review bid and construction documents for

the project.

(B) Review the project's compliance with section

701.1.

bid event for the project.

(D) Approve the project's construction documents

before contracts are signed as a condition of

reimbursement.

(E) Confirm the project has complied with the

requirements of other agencies.

(F) Review the project's updated scheduled area

floor plan and the school entity's enrollment.

(G) Calculate the project's final reimbursement

amount.

(3) Part 3 - Project Bid Awards.

(i) The school entity must submit an application

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containing the following to the department pursuant to

the requirements developed by the department:

(A) Evidence of the school board's approval of

signed contracts.

(B) Contractor certifications for the project.

(D) An application for reimbursement for the

project under section 2606-J.

(ii) To approve a school entity's application under

this paragraph and begin reimbursement to the school

entity under section 2606-J, the department shall:

(A) Assess the project's cost accounting based

on the actual bids.

(B) Review the project's compliance with

subsection (b).

701.1.

(D) Review the project's application for

reimbursement to the school entity under section

2606-J.

(4) Part 4 - Project Completion.

(i) The school entity must submit an application

containing the following to the department pursuant to

the requirements developed by the department:

(A) Within one year of occupancy, an independent

audit of the project that may correspond with the

school entity's annual audit.

(B) Attestation of the project's compliance with

section 701.1.

(ii) To approve a school entity's application under

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this paragraph, the department shall:

(A) Review the project's final costs pursuant to

the independent audit.

(B) Review the project's compliance with section

701.1.

(b) Additions to and renovations of existing buildings.--

Unless the secretary grants an exception, the department may not

approve the following for school construction reimbursement:

(1) An addition to or renovation of an existing school

building where a previous reimbursable construction project

occurred at the school building within 20 years of the

current application.

(2) Renovation of an existing school building if the

cost of the addition or renovation is less than 20% of the

replacement value of the entire building.

develop an Internet-based application to comply with the

provisions of this section and provide for school entities to

submit required documents electronically via the Internet.

(d) (Reserved).

(e) Project information.--The department shall maintain the

information submitted and reviewed under this section in an

electronic format and make project information available

electronically to the applicant school entity.

(f) (Reserved).

Section 2603-J. High-performance building standards.

(a) Recognition of standards.--

(1) The secretary shall recognize the United States

Green Building Council's Leadership in Energy and

Environmental Design green building rating system or two,

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three or four Globes under the Green Building Initiative's

Green Globes Green Building Rating System as high-performance

building standards and the department shall use the standards

in the administration of this article.

(2) The secretary may recognize other high-performance

building standards, in addition to those under paragraph (1),

that meet or exceed the standards outlined under paragraph

(1).

(3) The department shall use only the recognized

standards provided for in this section in the administration

of this article.

(4) Prior to recognizing a high-performance building

standard under paragraph (2), the secretary shall transmit

notice to the Legislative Reference Bureau for publication in

the Pennsylvania Bulletin and on the department's publicly

accessible Internet website 90 days prior to recognizing the

new standard.

(b) Reimbursement enhancement.--

(1) A school entity that utilizes the high-performance

building standards for a project under subsection (a) and

satisfies the requirement under paragraph (2) shall receive a

10% increase above the amount calculated under section 2606-

(2) For a school entity to receive the reimbursement

incentive for a project under paragraph (1), the school

entity must provide the department with a projection showing

a positive return on investment over the building's lifetime

for utilizing the high-performance building standards when

compared to regular construction practices.

(3) The department shall develop standards and a

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process, in coordination with the application process in

section 2602-J, for awarding an enhanced reimbursement for

compliance with high-performance building standards.

Section 2604-J. Maintenance program.

(a) Grant program to be established.--The department shall

establish a maintenance project grant program to support school

entity maintenance projects.

(b) Eligibility.--Maintenance projects that are eligible for

grants under this section shall include the following:

(1) Roof repairs and roof replacement.

(2) Heating, ventilation and air conditioning equipment.

(3) Boilers and controls.

(4) Plumbing systems.

(5) Energy savings projects.

(6) Health and safety upgrades.

(7) Emergencies.

(8) Other projects approved by the secretary.

process through which school entities may submit applications

for grant awards.

(d) Funding rubric.--The department shall develop a rubric

to prioritize grant awards under this section. The rubric shall

consider the following:

(1) School entity wealth.

(2) Prior receipt of grant awards.

(3) Building conditions.

(4) Emergencies.

(5) Safety and security.

(e) Local match required.--

(1) A school entity shall provide a 50% match for each

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grant awarded.

(2) No matching funds shall be required for a project

that is determined by the secretary to be an emergency.

(f) Limitation on grant award.--

(1) No grant award for a maintenance project may exceed

$1,000,000.

(2) No school entity may receive an annual allocation of

grants that exceeds 20% of the funds available under the

program.

(g) Funding.--

(1) The program shall be funded from a set-aside equal

to 25% of the appropriation for school building projects

annually under this article.

(2) No less than 20% of the funds allocated to the

program under paragraph (1) shall be awarded to projects that

enhance school building safety and security.

(3) In any fiscal year when funds are available for

grants under the program as provided in paragraph (1), the

department shall allocate 50% of the set-aside for grants by

December 31 and the other 50% of the set-aside for grants not

later than June 30 of that fiscal year.

(h) Transmission of information to General Assembly.--The

department shall annually transmit grant award information to

the Appropriations Committee of the Senate and the

Appropriations Committee of the House of Representatives,

including grant amounts and scoring from the rubric under

subsection (d).

Section 2605-J. Building condition assessments.

(a) Duties of department.--

(1) The department shall develop guidelines for school

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entities to voluntarily report information related to school

building safety, inventory and condition. The guidelines

shall include a building condition assessment to be

voluntarily completed every 10 years for school entities that

includes, but is not limited to, a projection of costs to

maintain and renovate existing school buildings.

(2) The department shall post completed building

condition assessments on the department's publicly accessible

Internet website.

(3) The department shall provide additional points under

the funding rubric contained in section 2604-J(d) for grants

applied for by school entities that complete building

condition assessments.

(b) Completion incentive.--A school entity that completes a

building condition assessment shall receive a 2% increase above

the amount calculated under section 2606-J. The department shall

develop a process, in coordination with the application process

in section 2602-J, for awarding an enhanced reimbursement for

completing a building condition assessment.

Section 2606-J. Project reimbursement.

(a) General rule.--The Commonwealth shall reimburse a school

entity that receives department approval on an application under

section 2602-J(a)(3) by the amount calculated as follows:

(1) Multiply the base reimbursement amount by the

adjustment factor.

(2) Multiply the product under paragraph (1) by the

lesser of the project's enrollment and full-time equivalent

building capacity.

(3) Multiply the product under paragraph (2) by the

school entity's wealth factor.

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(b) Limitation.--The maximum payment under this section

shall not exceed 65% of a project's structural cost.

equal payments over 20 years totaling the amount determined for

reimbursement under subsections (a) and (b).

(d) Adjustment factor.--Beginning July 1, 2020, the

adjustment factor shall be zero.

Section 2607-J. School entity education.

The Department of Labor and Industry shall make information

available to school entities to help them understand the

difference between "public work" and "maintenance work" based on

industry standards and the act of August 15, 1961 (P.L.987,

No.442), known as the Pennsylvania Prevailing Wage Act.

Section 2608-J. Applicability.

This article shall apply to projects for which approval and

reimbursement is sought after the effective date of this

section.

Section 2609-J. Guidelines.

The department shall issue guidelines for the administration

of this article not later than March 31, 2020.

Section 2. This act shall take effect as follows:

(1) The addition of section 2602-J(c) of the act and

this section shall take effect immediately.

(2) The remainder of this act shall take effect July 1,

2020, or immediately, whichever is later.

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