THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HALUSKA, CALTAGIRONE, COHEN, CRUZ, DALEY, HORNAMAN, MAHONEY, QUINN, SCAVELLO, VULAKOVICH, GEIST, KOTIK, MURPHY, READSHAW, STURLA, MILLER AND HESS, MARCH 9, 2011

REFERRED TO COMMITTEE ON EDUCATION, MARCH 9, 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," further providing for the sale of

unused and unnecessary lands and buildings; providing for

State reimbursement for mobile classroom facilities; and

making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 707 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 clause to read:

Section 707.  Sale of Unused and Unnecessary Lands and

Buildings.--The board of school directors of any district is

hereby vested with the necessary power and authority to sell

unused and unnecessary lands and buildings, by any of the

following methods and subject to the following provisions:

* * *

(4.1)  Notwithstanding the foregoing provision of this

section, no unused and unnecessary school building, nor any

unused and unnecessary land upon which such a building is

located, may be sold for less than fifty (50) per centum of the

fair market value of the building, or of the land and building,

as the case may be, provided the prospective purchaser submits a

plan for the building and demonstrates that the purchaser has

the financial resources to implement the plan, except that the

building, or land and building, may be donated to a political

subdivision of this Commonwealth or to a nonprofit corporation

that qualifies as an institution of purely public charity under

section 5 of the act of November 26, 1997 (P.L.508, No.55),

known as the "Institutions of Purely Public Charity Act." The

fair market value, as used in this clause, shall be determined

by a State-certified real estate appraiser who is certified

under the act of July 10, 1990 (P.L.404, No.98), known as the

"Real Estate Appraisers Certification Act," or by taking the

mean average of the fair market values as determined by two or

three such State-certified real estate appraisers. For the

purpose of this clause, no appraisal may be utilized that was

made more than one year prior to the date of sale. Any unused

and unnecessary school building that cannot be sold for at least

fifty (50) per centum of the fair market value subject to the

conditions set forth in this clause and is not donated to a

political subdivision or a nonprofit corporation pursuant to

this section shall be demolished by the school district within

ten years of its becoming unused. A school district shall not be

required to demolish any school building if:

(i)  the board of school directors has determined by

resolution the building is necessary for future use by the

school district;

(ii)  the school building is maintained in accordance with

State and local building or health and safety ordinances;

(iii)  the school building is located on school property with

at least one other school building that is used for the

instruction of students; or

(iv)  the school building was built before 1940 and the

Pennsylvania Historical and Museum Commission determines the

school building has historic value.

* * *

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.