PRINTER'S NO. 1047
No. 894 Session of 2007
INTRODUCED BY LEACH, BENNINGTON, CALTAGIRONE, DePASQUALE, FABRIZIO, FREEMAN, GEORGE, GRUCELA, HENNESSEY, JAMES, JOSEPHS, McCALL, M. O'BRIEN, PALLONE, ROEBUCK, ROSS, RUBLEY, SCHRODER, McILVAINE SMITH, STURLA, THOMAS, VITALI AND YOUNGBLOOD, MARCH 22, 2007
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 22, 2007
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 referendum or 6 public hearing required prior to construction or lease. 7 The General Assembly of the Commonwealth of Pennsylvania 8 hereby enacts as follows: 9 Section 1. Section 701.1 of the act of March 10, 1949 10 (P.L.30, No.14), known as the Public School Code of 1949, 11 amended July 4, 2004 (P.L.536, No.70), is amended to read: 12 Section 701.1. Referendum or Public Hearing Required Prior 13 to Construction or Lease.--Except where the approval of the 14 electors is obtained to incur indebtedness to finance the 15 construction of a school project, the board of school directors 16 of any school district of the second, third or fourth classes, 17 shall not construct, enter into a contract to construct or enter 18 into a contract to lease a new school building or substantial
1 addition to an existing school building without the consent of 2 the electors obtained by referendum or without holding a public 3 hearing as hereinafter provided. In the event that a new school 4 building or a substantial addition to an existing building is to 5 be constructed or leased, the school board shall, by a majority 6 vote of all its members, authorize a maximum project cost and a 7 maximum building construction cost to be financed by the 8 district or amortized by lease rentals to be paid by the 9 district. Building construction cost shall consist of the cost 10 of all building construction including general construction 11 costs, plumbing, heating, electrical, ventilating and other 12 structural costs, equipment and fixtures and architectural and 13 engineering fees relating thereto, but not including costs for 14 site acquisition and development, rough grading to receive the 15 building, sewage treatment facilities or equivalent capital 16 contributions, and architectural and engineering fees relating 17 thereto. Building construction cost shall not include the 18 additional cost involved in the building construction of a 19 school that meets the Leadership in Energy and Environmental 20 Design standards as established and published by the United 21 States Green Building Council. In all cases, a public hearing 22 shall be held not later than thirty (30) days before the school 23 district submits the initial building construction cost and 24 operating cost estimates to the Department of Education for 25 approval. Notice of the hearing shall be given not later than 26 twenty (20) days before the date of the scheduled hearing. In 27 the event that the maximum building construction cost 28 authorization exceeds the aggregate building expenditure 29 standard hereinafter specified, the aforesaid authorization of 30 the school board shall be submitted to the electors of the 20070H0894B1047 - 2 -
1 school district for their approval within six (6) months prior 2 to submission of the final building construction cost bids to 3 the Department of Education for approval. Such referendum shall 4 be held in the same manner as provided by law for the approval 5 of the incurring of indebtedness by referendum. The question as 6 submitted shall specify the maximum project cost, the maximum 7 building construction cost and the annual sinking fund charge or 8 lease rental to be incurred by the school district and the 9 portion of such charge or rental expected to be reimbursed by 10 the Commonwealth. If the final building construction cost bids 11 to be submitted to the Department of Education for approval are 12 less than the aggregate building expenditure standard hereafter 13 specified but exceed by eight (8) per cent or more the initial 14 building construction cost estimates submitted to the Department 15 for approval, a second public hearing shall be held before the 16 Department shall give its final approval. 17 The applicable aggregate building expenditure standard shall 18 be a total amount calculated for each building or substantial 19 addition by multiplying the rated pupil capacity under the 20 approved room schedule by the following: two thousand eight 21 hundred dollars ($2,800) for each pupil of rated elementary 22 capacity; four thousand two hundred dollars ($4,200) for each 23 pupil of rated secondary capacity in grades seven, eight and 24 nine and five thousand two hundred dollars ($5,200) for each 25 pupil of rated secondary capacity in grades ten, eleven and 26 twelve and five thousand two hundred dollars ($5,200) for each 27 pupil of rated vocational-technical capacity in grades ten, 28 eleven and twelve to not include the cost of equipment and 29 fixtures in such vocational-technical schools: Provided, 30 however, That each of the preceding per pupil amounts shall be 20070H0894B1047 - 3 -
1 adjusted by the Department of Education on July 1, 1974; and 2 annually thereafter through July 1, 2003, by multiplying said 3 amounts by the ratio of the composite construction cost index 4 compiled and published by the United States Department of 5 Commerce for the preceding calendar year to such index for the 6 next preceding calendar year; and Further Provided, however, 7 That each of the preceding per pupil amounts shall be adjusted 8 by the Department of Education on July 1, 2004; and annually 9 thereafter by multiplying said amounts by the ratio of the 10 Building Cost Index published by the McGraw-Hill Companies for 11 the preceding calendar year to such index for the next preceding 12 calendar year. Rated elementary pupil capacity or rated 13 secondary pupil capacity for any school building shall be the 14 rated pupil capacity determined on the basis of the method used 15 by the Department for school building reimbursement purposes 16 during the school year 1971-1972. 17 For purposes of this section: 18 (1) "Site acquisition" includes the cost of land and mineral 19 rights, demolition and clearing, rights-of-way and related 20 utility relocations, surveys and soils analysis, and the cost of 21 all fees relating thereto. 22 (2) "Site development" includes excavation, grouting or 23 shoring, special foundations for buildings, access roads to 24 site, utilities on site, extension of utilities to site. 25 (3) "Equipment and fixtures" means property fixed or movable 26 which is incidental and necessary to conduct the educational 27 program, and includes, but is not limited to movable equipment 28 such as desks, chairs, tables, portable physical education 29 equipment, audio-visual equipment and science, homemaking, 30 industrial art and business equipment and instructional 20070H0894B1047 - 4 -
1 materials and fixtures such as casework, laboratory equipment, 2 kitchen equipment, auditorium seating and any other special 3 fixtures or equipment required to conduct a particular 4 educational program. 5 (4) "Substantial addition" means more than twenty (20) per 6 centum of the area and replacement value of the structure to 7 which the improvement is to be added. 8 Section 2. This act shall take effect in 60 days. C20L24BIL/20070H0894B1047 - 5 -