THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PETRI, CLYMER, GODSHALL, GROVE, HARHAI, HESS, MILLARD, MURT, RAPP AND WAGNER, APRIL 20, 2011

REFERRED TO COMMITTEE ON EDUCATION, APRIL 20, 2011  

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," in grounds and buildings, further

providing for work to be done under contract let on bids and

exception; and, in reimbursements by Commonwealth and between

school districts, further providing for approved reimbursable

rental for leases hereafter approved and approved

reimbursable sinking fund charges on indebtedness and for

approved reimbursable annual rental for leases of buildings

and facilities for school use.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 751 of the act of March 10, 1949 (P.L.30,

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

adding a subsection to read:

Section 751.  Work to be Done Under Contract Let on Bids;

Exception.--* * *

(b.1)  Subsequent to January 1, 2011, the Department of

Education shall annually adjust the limit on work completed by

district personnel in accordance with the United States

Department of Commerce Construction Cost Index. The rate shall

equal or be greater than twenty thousand dollars ($20,000).

* * *

Section 2.  Section 2574(e) of the act, amended July 13, 2005

(P.L.226, No.46), is amended and subsections (b) and (c) are

amended by adding paragraphs to read:

Section 2574.  Approved Reimbursable Rental for Leases

Hereafter Approved and Approved Reimbursable Sinking Fund

Charges on Indebtedness.--* * *

(b)  For new school buildings the approved building

construction cost shall be the lesser of

* * *

(5)  Subsequent to January 1, 2011, the Department of

Education shall annually adjust the approved building

construction cost reimbursement rate for new school buildings in

accordance with the United States Department of Commerce

Construction Cost Index. The reimbursement rate shall equal or

be greater than five thousand nine hundred dollars ($5,900) for

elementary projects and seven thousand seven hundred dollars

($7,700) for secondary projects.

* * *

(c)  For additions or alterations to existing buildings

approved building construction cost shall be the lesser of

* * *

(5)  Subsequent to January 1, 2011, the Department of

Education shall annually adjust the approved building

construction cost reimbursement rate for additions or

alterations to existing buildings in accordance with the United

States Department of Commerce Construction Cost Index. The

reimbursement rate shall equal or be greater than five thousand

nine hundred dollars ($5,900) for elementary projects and seven

thousand seven hundred dollars ($7,700) for secondary projects.

* * *

(e)  For area vocational-technical school and technical

institute projects leased subsequent to July 1, 1964, by or for

lease to a board of school directors authorized to operate such

a school, the Department of Education shall calculate an

approved reimbursable rental charge.

For area vocational-technical school and technical institute

projects constructed or purchased subsequent to July 1, 1964, by

a board of school directors authorized to operate such a school,

the Department of Education may calculate an approved

reimbursable sinking fund charge.

Approved reimbursable rental or sinking fund charge shall

consist of that part of the annual rental or sinking fund

attributable to:

(1)  Cost of acquiring land and preparing it for use to the

extent that such costs are deemed reasonable by the Department

of Education and the interest on such cost of acquisition, cost

of preparation and the cost of sewage treatment and the interest

on such cost.

(2)  Machinery, apparatus, furniture and equipment and all

other necessary expenses and interest charges, but excluding

architects' fees in excess of six percent of the construction

cost.

The approved building construction cost and the interest on

such construction cost shall not exceed the product of the rated

full-time pupil capacity, as determined by the Department of

Education at the time the project is approved and two thousand

two hundred dollars ($2,200).

The provisions of the foregoing paragraph shall apply to all

school building projects for which the general construction

contract is awarded prior to July 1, 1966, and for approved

school building projects for which a lease was approved by the

Department of Education prior to July 1, 1966. For school

buildings for which the general construction contract is awarded

subsequent to July 1, 1966, 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

Education prior to July 1, 1966, the approved building

construction cost and the interest on such construction cost

shall not exceed the product of the rated full-time pupil

capacity, as determined by the Department of Education at the

time the project is approved, and three thousand seven hundred

dollars ($3700).

For school buildings for which the general construction

contract is awarded subsequent to July 1, 1984, and for approved

school building projects for which the general construction

contract was awarded but for which a lease or general obligation

bond resolution was not approved by the Department of Education

prior to July 1, 1984, the approved building construction cost

and the interest on such construction cost shall not exceed the

product of the rated full-time pupil capacity, as determined by

the Department of Education at the time the project is approved,

and six thousand three hundred dollars ($6,300).

For school buildings for which the general construction

contract is awarded subsequent to January 1, 2005, and for

approved school building projects for which the general

construction contract was awarded but for which a lease or

general obligation bond resolution was not approved by the

Department of Education prior to January 1, 2005, the approved

building construction cost shall not exceed the product of the

rated full-time pupil capacity, as determined by the Department

of Education at the time the project is approved, and seven

thousand six hundred dollars ($7,600).

Subsequent to January 1, 2011, the Department of Education

shall annually adjust the approved building construction cost

reimbursement rate for vocational-technical projects in

accordance with the United States Department of Commerce

Construction Cost Index. The reimbursement rate shall equal or

be greater than nine thousand five hundred dollars ($9,500).

The Department of Education shall not approve the expenditure

of any funds borrowed or obtained by the sale of bonds by any

authority, nonprofit corporation, profit corporation, company or

individual for construction of area vocational-technical schools

or technical institutes for bleachers, athletic field, lighting

equipment or apparatus used to promote and conduct

interscholastic athletics.

* * *

Section 3.  Section 2574.2 of the act, added December 6, 1972

(P.L.1445, No.323), is amended to read:

Section 2574.2.  Approved Reimbursable Annual Rental for

Leases of Buildings and Facilities for School Use.--For extended

leases of buildings and facilities for school use authorized

under the provisions of section 703.1 which have been approved

by the Secretary of Education, the Department of Education shall

calculate an approved reimbursable annual rental charge.

Approved reimbursable annual rental for such approved leases

of building facilities constructed for school use shall be the

lesser of (i) the product of the annual rental payable under the

provisions of the approved lease agreement times the ratio of

the pupil scheduled area to the architectural area, or (ii) the

product of the rated pupil capacity as determined by the

Department of Education at the time of initial lease times one

hundred sixty dollars ($160) for elementary schools, two hundred

twenty dollars ($220) for secondary schools, or two hundred

seventy dollars ($270) for area vocational-technical schools.

Annual approved rental payable for approved leases of

existing facilities altered for school use shall be the lesser

of (i) the product of the annual rental payable under the

provisions of the approved lease agreement times the ratio of

the pupil scheduled area to the architectural area, or (ii) the

product of the rated pupil capacity, as determined by the

Department of Education at the time of initial lease, times one

hundred twelve dollars ($112) for elementary, one hundred fifty-

four dollars ($154) for secondary, or one hundred eighty-nine

dollars ($189) for area vocational-technical schools.

Subsequent to January 1, 2011, the Department of Education

shall annually adjust the approved reimbursable annual rental

for leases of buildings and facilities rate and the approved

rental payable for approved leases of existing facilities

altered for school use rate in accordance with the United States

Department of Commerce Construction Cost Index. The

reimbursement rates shall equal or be greater than six hundred

forty dollars ($640) for elementary schools, eight hundred

eighty dollars ($880) for secondary schools and one thousand

eighty dollars ($1,080) for vocational schools.

Section 4.  This act shall take effect immediately.