PRINTER'S NO. 1161
No. 1039 Session of 1997
INTRODUCED BY COWELL, STAIRS, MUNDY, STEELMAN, BATTISTO, CARONE,
ITKIN, COY, E. Z. TAYLOR, BELARDI, MELIO, MARKOSEK, GODSHALL,
FAIRCHILD, HORSEY, HESS, BARD, SEMMEL, SCHRODER, MIHALICH,
YOUNGBLOOD, TIGUE, SATHER, LLOYD, TULLI, TRELLO, STETLER,
DALEY, GIGLIOTTI, WALKO, SHANER, HANNA, LAUGHLIN, TRAVAGLIO,
McCALL, PISTELLA, STABACK, ROONEY, VEON, VAN HORNE, OLASZ AND
COLAFELLA, MARCH 25, 1997
REFERRED TO COMMITTEE ON EDUCATION, MARCH 25, 1997
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.--* * *
17 (b) For new school buildings the approved building
18 construction cost shall be the lesser of
1 * * *
2 (4) For school buildings for which the general construction
3 contract is awarded on or after July 1, 1997, the product of the
4 rated pupil capacity as determined by the Department of
5 Education at the time the project is approved and (i) four
6 thousand seven hundred dollars ($4,700) in the case of
7 elementary schools, (ii) six thousand two hundred dollars
8 ($6,200) in the case of secondary schools, (iii) an amount in
9 the case of combined elementary-secondary schools obtained by
10 multiplying the rated elementary pupil capacity by four thousand
11 seven hundred dollars ($4,700) and the rated secondary pupil
12 capacity by six thousand two hundred dollars ($6,200) and
13 dividing the sum by the total rated pupil capacity.
14 (c) For additions or alterations to existing buildings
15 approved building construction cost shall be the lesser of
16 * * *
17 (4) For school buildings for which the general construction
18 contract is awarded on or after July 1, 1997, the difference
19 obtained by subtracting the appraisal value of the existing
20 building from the product of the rated pupil capacity of the
21 altered or expanded building as determined by the Department of
22 Education at the time the project is approved and (i) four
23 thousand seven hundred dollars ($4,700) in the case of
24 elementary schools, (ii) six thousand two hundred dollars
25 ($6,200) in the case of secondary schools, (iii) an amount in
26 the case of combined elementary-secondary schools obtained by
27 multiplying the rated elementary pupil capacity by four thousand
28 seven hundred dollars ($4,700) and the rated secondary pupil
29 capacity by six thousand two hundred dollars ($6,200) and
30 dividing the sum by the total rated pupil capacity of the
19970H1039B1161 - 2 -
1 altered or expanded building.
2 * * *
3 (e) For area vocational-technical school and technical
4 institute projects leased subsequent to July 1, 1964, by or for
5 lease to a board of school directors authorized to operate such
6 a school, the Department of Education shall calculate an
7 approved reimbursable rental charge.
8 For area vocational-technical school and technical institute
9 projects constructed or purchased subsequent to July 1, 1964, by
10 a board of school directors authorized to operate such a school,
11 the Department of Education may calculate an approved
12 reimbursable sinking fund charge.
13 Approved reimbursable rental or sinking fund charge shall
14 consist of that part of the annual rental or sinking fund
15 attributable to:
16 (1) Cost of acquiring land and preparing it for use to the
17 extent that such costs are deemed reasonable by the Department
18 of Education and the interest on such cost of acquisition, cost
19 of preparation and the cost of sewage treatment and the interest
20 on such cost.
21 (2) Machinery, apparatus, furniture and equipment and all
22 other necessary expenses and interest charges, but excluding
23 architects' fees in excess of six percent of the construction
24 cost.
25 The approved building construction cost and the interest on
26 such construction cost shall not exceed the product of the rated
27 full-time pupil capacity, as determined by the Department of
28 Education at the time the project is approved and two thousand
29 two hundred dollars ($2,200).
30 The provisions of the foregoing paragraph shall apply to all
19970H1039B1161 - 3 -
1 school building projects for which the general construction
2 contract is awarded prior to July 1, 1966, and for approved
3 school building projects for which a lease was approved by the
4 Department of Education prior to July 1, 1966. For school
5 buildings for which the general construction contract is awarded
6 subsequent to July 1, 1966, and for approved school building
7 projects for which the general construction contract was awarded
8 but for which a lease was not approved by the Department of
9 Education prior to July 1, 1966, the approved building
10 construction cost and the interest on such construction cost
11 shall not exceed the product of the rated full-time pupil
12 capacity, as determined by the Department of Education at the
13 time the project is approved, and three thousand seven hundred
14 dollars ($3700).
15 For school buildings for which the general construction
16 contract is awarded subsequent to July 1, 1984, and for approved
17 school building projects for which the general construction
18 contract was awarded but for which a lease or general obligation
19 bond resolution was not approved by the Department of Education
20 prior to July 1, 1984, the approved building construction cost
21 and the interest on such construction cost shall not exceed the
22 product of the rated full-time pupil capacity, as determined by
23 the Department of Education at the time the project is approved,
24 and six thousand three hundred dollars ($6,300).
25 For school buildings for which the general construction
26 contract is awarded on or after July 1, 1997, the approved
27 building construction cost and the interest on such construction
28 cost shall not exceed the product of the rated full-time pupil
29 capacity, as determined by the Department of Education at the
30 time the project is approved, and seven thousand six hundred
19970H1039B1161 - 4 -
1 dollars ($7,600).
2 The Department of Education shall not approve the expenditure
3 of any funds borrowed or obtained by the sale of bonds by any
4 authority, nonprofit corporation, profit corporation, company or
5 individual for construction of area vocational-technical schools
6 or technical institutes for bleachers, athletic field, lighting
7 equipment or apparatus used to promote and conduct
8 interscholastic athletics.
9 * * *
10 Section 2. This act shall take effect July 1, 1997.
A14L24DGS/19970H1039B1161 - 5 -