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PRINTER'S NO. 1435
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1199
Session of
2017
INTRODUCED BY ROEBUCK, FRANKEL, STURLA, O'NEILL, LONGIETTI,
SCHLOSSBERG, RABB, FREEMAN, McNEILL, NEILSON, MILLARD,
DeLUCA, KINSEY, McCARTER AND DONATUCCI, APRIL 17, 2017
REFERRED TO COMMITTEE ON EDUCATION, APRIL 17, 2017
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 lease of buildings or portions of buildings
constructed or altered for school use; and, in reimbursements
by Commonwealth and between school districts, further
providing for approved reimbursable annual rental for leases
of buildings or portions of buildings for charter school use.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 703.1 of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, is
amended to read:
Section 703.1. Lease of Buildings or Portions of Buildings
Constructed or Altered for School Use.--(a) The board of school
directors of any district is hereby vested with the power and
authority to lease for an extended period of five (5) years or
more, with or without provisions for acquisition of same,
buildings or portions of buildings constructed for school use
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and/or other buildings or portions of buildings altered for
school use provided such buildings comply with standards and
regulations established by the State Board of Education and the
Department of Labor and Industry.
(b) A founder, a person who serves as an administrator or
executive of an educational management service provider or an
administrator or school director for a school entity may not
receive payment for an approved reimbursable annual rental for a
lease of a building or a portion of a building for school entity
use under section 2574.3.
(c) For purposes of this section:
(1) "Educational management service provider" shall mean any
of the following, but shall not include a charter school
foundation:
(i) A for-profit or nonprofit educational management
organization.
(ii) A school design provider.
(iii) An administrator or executive of a for-profit or
nonprofit educational management organization, including the
organization's chief executive officer, business manager or an
entity with which a board of trustees or school director of a
school entity contracts to provide educational design, business
services, comprehensive management or personnel functions or to
implement a school entity.
(2) "Founder" shall mean an individual or entity that has
established a charter school under section 1717-A, including one
or more teachers who will teach at a proposed charter school, a
parent or guardian of a student who will attend a charter school
or a nonsectarian not-for-profit corporation.
Section 2. Section 2574.3 of the act is amended by adding
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subsections to read:
Section 2574.3. Approved Reimbursable Annual Rental for
Leases of Buildings or Portions of Buildings for Charter School
Use.--* * *
(c) A school entity shall provide all of the following
documentation in the school's application for funding under this
section:
(1) A copy of the signed lease agreement for the leased
building.
(2) A copy of the deed for the leased building.
(3) The names of the board of trustees, school directors and
administrators of the school entity.
(4) If applicable, the names of the administrators or
executives of the educational management service provider.
(5) If the owner of the leased building is a nonprofit
organization or a school entity foundation, the names of the
board members of the nonprofit organization or a school entity
foundation.
(d) Charter schools may not apply for and the department may
not authorize a lease reimbursement if the reimbursement is for
a lease payment to any of the following:
(1) An administrator of the school entity or a member of the
administrator's immediate family or a business with which the
administrator's immediate family is associated.
(2) A trustee of the board of trustees of the school entity
or a member of the trustee's immediate family or a business with
which the trustee's immediate family is associated.
(3) A founder or a member of the founder's immediate family
or a business with which the founder's immediate family is
associated.
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(4) An administrator or executive of the educational
management service provider or a member of the administrator's
or executive's immediate family or a business with which the
administrator's or executive's immediate family is associated.
(5) Another entity that has a financial interest as defined
in 65 Pa.C.S. § 1102 (relating to definitions) with the school
entity, except for the lease agreement.
(e) The department shall seek reimbursement from a school
entity for each inappropriate lease reimbursement within 60 days
of the inappropriate lease reimbursement.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
(1) "Founder" shall have the meaning set forth in section
703.1(c)(2).
(2) "School entity foundation" shall mean a nonprofit
organization under section 501(c)(3) of the Internal Revenue
Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)), that
provides funding, resources or services to support a school
entity, either directly or through an affiliated entity.
Section 3. This act shall take effect in 60 days.
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