THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PETRI, CARROLL, CLYMER, GIBBONS, HESS, MURT, O'NEILL, PETRARCA, RAPP, SCAVELLO, VULAKOVICH AND WAGNER, APRIL 5, 2011

REFERRED TO COMMITTEE ON APPROPRIATIONS, APRIL 5, 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 community colleges, repealing

provisions relating to the Community College Capital Fund;

establishing the Community Colleges Capital Projects Pooled

Financing Program and the Community Colleges Capital Projects

Pooled Financing Program Fund; and providing for the powers

and duties of the Pennsylvania State Public School Building

Authority and for an interfund transfer.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1917-A of the act of March 10, 1949

(P.L.30, No.14), known as the Public School Code of 1949, added

July 13, 2005 (P.L.226, No.46), is repealed:

[Section 1917-A.  Community College Capital Fund.--(a)  The

Community College Capital Fund is hereby established as a

separate fund in the State Treasury for the purpose of making

payments to community colleges for capital expenses approved

under section 1913-A(b)(4). The moneys of the fund are hereby

appropriated to the Department of Education to carry out the

provisions of this section.

(b)  The Community College Capital Fund shall consist of all

funds appropriated and allocated during the 2005-2006 fiscal

year and each fiscal year thereafter for capital expenses

approved for payment by the Department of Education under

section 1913-A(b)(4).

(c)  At the end of each fiscal year, any unencumbered funds

shall not lapse to the General Fund and shall be available for

payment of any capital expenses approved under section 1913-A(b)

(4) in any subsequent fiscal year.

(d)  Payments for capital expenses approved under section

1913-A(b)(4) shall be limited to the total amount of funds

included in the Community College Capital Fund.]

Section 2.  The act is amended by adding a section to read:

Section 1917.1-A.  Pennsylvania Community Colleges Capital

Projects Pooled Financing Program.--(a)  The Pennsylvania

Community Colleges Capital Projects Pooled Financing Program is

established. The program shall be funded through the

Pennsylvania State Public School Building Authority and

administered by a not-for-profit organization established and

governed by the community colleges, acting as program

administrator. The program shall establish a fund from which

Pennsylvania community colleges may borrow amounts, at

subsidized rates, to be applied to approved capital projects.

(b)  Beginning in fiscal year 2011-2012, and for each fiscal

year thereafter, the State Treasurer shall transfer fifteen

million dollars ($15,000,000) plus nonrequired prior

appropriations to a special fund held by or on behalf of the

State Public School Building Authority, which fund is hereby

created and shall be known as the Pennsylvania Community

Colleges Capital Projects Pooled Financing Program Fund. Funds

shall be applied by the authority by deposit of such amounts

with the trustee for the bonds issued to fund the program. The

trustee shall apply such amounts as required or permitted by the

trust indenture securing the program bonds.

(c)  A not-for-profit organization established and governed

by the community colleges, acting as program administrator,

shall administer the program and shall establish program

guidelines setting forth, among other things, the following:

(1)  The manner of funding the program through the authority.

(2)  The means by which Pennsylvania community colleges may

apply for loans from the program.

(3)  The method to prioritize requests for funding.

(4)  The manner in which repayment of borrowed amounts are to

be structured.

(5)  The manner in which loans are to be secured.

(6)  Procedures to permit amounts repaid to the program to be

made available for additional loans to Pennsylvania community

colleges.

(7)  Program fees, including the fee of the program

administrator.

(8)  The designation or manner of selection of the trustee, a

financial advisor, bond counsel and other necessary or

appropriate consulting professionals.

(9)  Such other necessary or appropriate program operating

guidelines.

(d)  Nothing in this section shall be construed to impair any

existing Commonwealth agreement with Pennsylvania community

colleges with respect to Commonwealth appropriations for capital

projects.

(e)  For purposes of this section, "nonrequired prior

appropriations" shall mean an amount equal to the difference

between the Commonwealth's appropriations for community college

capital projects debt service allocated to all Pennsylvania

community colleges in fiscal year 2009-2010 and the amount

appropriated for community college capital projects debt service

allocated to all Pennsylvania community colleges in the fiscal

year at issue.

Section 3.  The balance in the Community College Capital Fund

on the effective date of this section shall be transferred to

the Community College Capital Projects Pooled Financing Program

Fund.

Section 4.  This act shall take effect immediately.