Bill Text: PA HB2124 | 2009-2010 | Regular Session | Introduced


Bill Title: Establishing the Pennsylvania Public School Construction Authority and the Pennsylvania Public School Construction Task Force; providing for their powers and duties; establishing the Public School Construction Reserve Fund, the Public School Building and Facility Adequacy Grant Program, a direct grant program and an interest subsidy program; and authorizing the issuance of bonds.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2010-09-29 - Referred to EDUCATION [HB2124 Detail]

Download: Pennsylvania-2009-HB2124-Introduced.html

  

 

    

PRINTER'S NO.  4405

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2124

Session of

2010

  

  

INTRODUCED BY PAYTON, BRIGGS, CALTAGIRONE, COHEN, JOSEPHS, STURLA AND YOUNGBLOOD, SEPTEMBER 29, 2010

  

  

REFERRED TO COMMITTEE ON EDUCATION, SEPTEMBER 29, 2010  

  

  

  

AN ACT

  

1

Amending Title 24 (Education) of the Pennsylvania Consolidated

2

Statutes, establishing the Pennsylvania Public School

3

Construction Authority and the Pennsylvania Public School

4

Construction Task Force; providing for their powers and

5

duties; establishing the Public School Construction Reserve

6

Fund, the Public School Building and Facility Adequacy Grant

7

Program, a direct grant program and an interest subsidy

8

program; and authorizing the issuance of bonds.

9

The General Assembly of the Commonwealth of Pennsylvania

10

hereby enacts as follows:

11

Section 1.  Title 24 of the Pennsylvania Consolidated

12

Statutes is amended by adding a part to read:

13

PART II

14

BASIC EDUCATION

15

Chapter

16

33.  Pennsylvania State of the Art Schools Program

17

CHAPTER 33

18

PENNSYLVANIA STATE OF THE ART

19

SCHOOLS PROGRAM

20

Sec.

21

3301.  Short title of chapter.

 


1

3302.  Findings.

2

3303.  Purpose of chapter.

3

3304.  Definitions.

4

3305.  School building and facility assessment report.

5

3306.  Pennsylvania Public School Construction Task Force.

6

3307.  Public school building and facility adequacy standards.

7

3308.  Needs assessment report.

8

3309.  Pennsylvania Public School Construction Authority.

9

3310.  Annual report.

10

3311.  School district capital improvement plans.

11

3312.  Public School Building and Facility Adequacy Grant

12

Program.

13

3313.  Direct grant program.

14

3314.  Interest subsidy program.

15

3315.  Bond issuance.

16

3316.  Public School Construction Reserve Fund.

17

§ 3301.  Short title of chapter.

18

This chapter shall be known and may be cited as the

19

Pennsylvania State of the Art Schools Act.

20

§ 3302.  Findings.

21

The General Assembly finds and declares as follows:

22

(1)  Quality education for the children of this

23

Commonwealth is essential for the future success of children

24

of this Commonwealth and the country.

25

(2)  Essential elements of this Commonwealth's public

26

school system are the school buildings and facilities that

27

ideally provide a safe and secure environment for learning

28

and facilitate educational opportunities for students in this

29

Commonwealth's public schools.

30

(3)  Regrettably not all public school buildings and

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1

facilities in this Commonwealth are capable of providing this

2

high quality of education due to the physical condition or

3

insufficient capacity of those buildings and facilities.

4

(4)  Due to the decreasing percentage of the State

5

funding share for education and an increasing cost burden on

6

local revenue sources, necessary maintenance on needy public

7

school buildings and facilities has been deferred until

8

school district budgets can afford those additional costs,

9

and regrettably this burden on school district budgets has

10

not lessened.

11

(5)  As a result of these deferrals, certain school

12

buildings and facilities are not in a condition to provide a

13

safe and secure location for schooling of children in this

14

Commonwealth.

15

(6)  Several school districts have also experienced

16

difficulty in funding new building and facility construction

17

for various purposes, such as accommodating increases in

18

student population and providing students with access to

19

schools that provide and utilize recent technological

20

advances to educate students.

21

(7)  Another essential element of this Commonwealth's

22

public schools is various instructional equipment, which is

23

essential to providing an education for the students of the

24

public schools, including computer and science laboratories.

25

(8)  Due to the decreasing percentage in the State

26

funding share, it is increasingly difficult for school

27

districts to purchase and utilize instructional equipment,

28

such as computers and other electronic equipment, that

29

provides students with the means to learn and to succeed in

30

the digital age.

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1

§ 3303.  Purpose of chapter.

2

This chapter is intended to:

3

(1)  Provide Statewide comparable data on the current

4

physical condition of public school buildings and facilities.

5

(2)  Establish minimum adequacy standards for school

6

buildings and facilities, including physical conditions,

7

maintenance, compatibility with educational technology and

8

sufficient building area per student to avoid overcrowding.

9

(3)  Determine the cost of essential and deferred

10

maintenance with the goal of improving the current physical

11

condition of existing eligible school buildings and

12

facilities to comply with minimum adequacy standards.

13

(4)  Provide State assistance in the school district

14

design of new construction to comply with minimum adequacy

15

standards.

16

(5)  Establish a tax-exempt bond program for the funding

17

of new school building and facility construction and the

18

repair and maintenance of eligible school buildings and

19

facilities and the purchase of school building and facility

20

equipment.

21

(6)  Establish the Public School Building and Facility

22

Adequacy Grant Program to distribute grants and funding to

23

eligible school districts under two separate funding

24

programs.

25

(7)  Establish the Public School Construction Reserve

26

Fund to address the bonds debt service and to fund emergency

27

school maintenance needs.

28

§ 3304.  Definitions.

29

The following words and phrases when used in this chapter

30

shall have the meanings given to them in this section unless the

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1

context clearly indicates otherwise:

2

"Adequacy grant program."  The Public School Building and

3

Facility Adequacy Grant Program established by this chapter.

4

"Authority."  The Pennsylvania Public School Construction

5

Authority established by this chapter.

6

"Bond."  The notes, bonds and other evidences of indebtedness

7

or obligations which the Pennsylvania Public School Construction

8

Authority is authorized to issue under this chapter.

9

"Construction."  This term includes acquisition and

10

construction, and the term "to construct" shall mean and include

11

to acquire and to construct in such a manner as may be deemed

12

desirable.

13

"Cost of project."  The cost of all real estate, properties,

14

rights and easements acquired, the cost of construction of a

15

school building and facility and the furnishing and equipment

16

thereof, all financing charges, interest prior to and during

17

construction and engineering and legal expenses.

18

"Current physical condition."  In reference to a public

19

school building or facility, this term shall include the current

20

condition of the heating, cooling, electrical and plumbing

21

systems; the building's exterior, including the roof, windows

22

and exterior doors; the building's interior, including the

23

walls, ceilings, floors, interior doors, lighting, glass,

24

educational equipment, school equipment and rest rooms;

25

gymnasiums and locker rooms; and technological capacity.

26

"Deferred maintenance."  All regularly scheduled and

27

unscheduled maintenance required for the proper upkeep of a

28

school building or facility that has not been timely performed

29

but postponed to a later time.

30

"Educational equipment."  All furniture, equipment and other

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1

appliances for the use of the public schools. This term shall

2

exclude equipment utilizing educational technology.

3

"Educational technology."  Any technical or scientific method

4

of sending, receiving, storing, packaging or assimilating audio,

5

video, graphic, data or any combination thereof by means of

6

electromagnetic signal and any equipment, processes and

7

facilities that are used for instruction in the public schools.

8

"Emergency maintenance."  The performance of essential

9

maintenance on structurally unsound school buildings and

10

facilities to address the immediate risk to the health and

11

safety of students, employees and the public.

12

"Essential maintenance."  The level of deferred maintenance

13

that must be completed for a school building or facility to

14

comply with the requirements of the school building and facility

15

adequacy standards.

16

"Financing."  The provision of a grant or funding to a school

17

district for payment of the cost of a project.

18

"Fund."  The Public School Construction Reserve Fund

19

established by this chapter.

20

"Manmade disaster."  Any industrial, nuclear or

21

transportation accident, explosion, conflagration or other

22

similar condition resulting from manmade causes which threatens

23

or causes substantial damage to property, human suffering,

24

hardship or loss of life.

25

"Natural disaster."  Any hurricane, tornado, storm, flood,

26

high water, wind-driven water, tidal wave, earthquake,

27

landslide, snowstorm, drought, fire, explosion or other

28

catastrophe which results in substantial damage to property,

29

hardship, suffering or possible loss of life.

30

"Needs assessment report."  The report prepared by the

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1

Department of the Auditor General that lists and calculates the

2

total cost for the completion of all deferred maintenance and

3

essential maintenance. This report shall include a copy of the

4

school building and facility assessment report.

5

"School building and facility assessment report."  The report

6

compiled and organized by the Department of the Auditor General

7

that lists the current physical condition of every public school

8

in the Commonwealth. This report shall include the data

9

collected and compiled by the contracted private entity.

10

"School buildings and facilities."  All buildings and

11

structures used by school districts for the classroom

12

instruction of students. This term shall include gymnasiums and

13

locker rooms but shall exclude stadiums, field houses, swimming

14

pools and practice fields.

15

"School buildings and facilities adequacy standards."  The

16

standards proposed by the School Construction Task Force and

17

accepted by the authority, establishing minimum standards for

18

school buildings and facilities.

19

"School equipment."  Equipment and machinery that are

20

necessary for the proper and safe operation of a school building

21

or facility.

22

"Structurally unsound buildings and facilities."  School

23

buildings and facilities that have extensive problems arising

24

from uncompleted essential maintenance, which also pose a threat

25

to the safety and health of students, employees and the public.

26

"Task force."  The Pennsylvania Public School Construction

27

Task Force established by this chapter.

28

"Technological capacity."  The ability of a school building

29

or facility to accommodate educational technology.

30

§ 3305.  School building and facility assessment report.

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1

(a)  Duty to prepare report.--The Department of the Auditor

2

General shall:

3

(1)  Prepare guidelines within two months of the

4

effective date of this chapter for the conduct of a Statewide

5

school building and facility assessment to collect data on

6

the current physical condition of all public school buildings

7

and facilities in every school district in this Commonwealth

8

and shall submit the guidelines and requirements for the

9

conduct of the school building and facility assessment by a

10

private entity to competitive bidding, as provided under 62

11

Pa.C.S. Pt. I (relating to Commonwealth procurement code).

12

(2)  Enter into a contract with a private entity as soon

13

as practicable for the purpose of conducting the school

14

building and facility assessment.

15

(3)  Prepare a school building and facility assessment

16

report that presents the Statewide data in a uniform manner

17

within nine months of the effective date of this chapter.

18

(4)  Transmit the school building and facility assessment

19

report upon completion to the Pennsylvania Public School

20

Construction Task Force.

21

(b)  Contents of report.--The school building and facility

22

assessment report shall provide uniform Statewide data regarding

23

the current condition of public school buildings and facilities

24

in this Commonwealth and shall include:

25

(1)  The current condition of school buildings and

26

facilities on a Statewide basis, a school district basis and

27

an individual public school basis.

28

(2)  Expected longevity of each school building and

29

facility.

30

(3)  Calculations of current school building and facility

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1

student capacity and space requirements necessary to

2

accommodate expected fluctuations in future student

3

population for a period of five years.

4

(4)  Each school building's and facility's compliance or

5

noncompliance with safety requirements, including any local

6

building or construction codes.

7

(5)  The ability of each school building and facility to

8

accommodate educational technology.

9

(c)  Governmental assistance.--For the purposes of preparing

10

guidelines for the conduct of the building and facility

11

assessments and preparing the school building and facility

12

assessment report, the Department of the Auditor General may

13

request the assistance of local school districts, the Division

14

of Facilities Management of the Department of Education and

15

other departments, agencies and entities of the Commonwealth as

16

deemed necessary by the Department of the Auditor General.

17

(d)  Timing for preparation of report.--At the completion of

18

the private entity's assessment data compilation, the Department

19

of the Auditor General shall prepare the Statewide school

20

building and facility assessment report.

21

§ 3306.  Pennsylvania Public School Construction Task Force.

22

(a)  Establishment.--There is hereby established the

23

Pennsylvania Public School Construction Task Force.

24

(b)  Membership.--The authority shall appoint 19 members to

25

the task force, which shall be comprised as follows:

26

(1)  Three school directors, provided that no two or more

27

school directors shall serve on the same board of school

28

directors.

29

(2)  Three school district superintendents.

30

(3)  Three principals of public elementary or secondary

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1

school buildings.

2

(4)  Three teachers employed by a public school district.

3

(5)  Three parents of a public elementary or secondary

4

school student.

5

(6)  Four representatives of the private sector

6

architectural and construction management industries.

7

(c)  Duties.--The task force shall have the duty to:

8

(1)  Review and utilize the data contained in the school

9

building and facility assessment report and draft the

10

proposed public school building and facility adequacy

11

standards within three months of the receipt of the school

12

building and facility assessment report.

13

(2)  Transmit the completed proposed public school

14

building and facility adequacy standards to the authority for

15

approval.

16

(3)  Transmit a copy of the approved public school

17

building and facility adequacy standards to the Department of

18

the Auditor General for utilization in calculating the cost

19

for compliance with the minimum standards, following an

20

approval of the proposed standards by the authority.

21

(4)  Review and incorporate any changes, revisions or

22

suggestions that the authority provides to the task force

23

into the proposed adequacy standards and to resubmit the

24

revised proposed adequacy standards to the authority

25

following a provisional approval of the adequacy standards by

26

the authority.

27

(5)  Review and redraft the proposed adequacy standards

28

incorporating any suggestions and criticisms provided by the

29

authority following a rejection of the proposed adequacy

30

standards by the authority.

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1

§ 3307.  Public school building and facility adequacy standards.

2

(a)  Proposal of standards.--The task force shall utilize the

3

uniform data contained in the school building and facility

4

assessment report to propose adequacy standards to the authority

5

for public school buildings and facilities that require a

6

minimum level of:

7

(1)  Essential maintenance.

8

(2)  Structural and building integrity.

9

(3)  Instructional area for education on a per student

10

basis.

11

(4)  Technological capacity in school buildings and

12

facilities.

13

(b)  Uniformity required.--The proposed adequacy standards

14

shall be uniform and have uniform Statewide application to all

15

public school buildings and facilities of this Commonwealth.

16

§ 3308.  Needs assessment report.

17

(a)  Duty to prepare.--The Department of the Auditor General

18

shall prepare a needs assessment report for all public school

19

buildings and facilities which shall:

20

(1)  Identify all deferred maintenance in each school

21

building and facility.

22

(2)  Identify the essential maintenance required for each

23

school building and facility to comply with the school

24

building and facility adequacy standards.

25

(3)  Calculate the total cost for the completion of all

26

deferred maintenance for each school building and facility.

27

(4)  Calculate the total cost for the completion of

28

essential maintenance that is required for each school

29

building and facility to comply with the school building and

30

facility adequacy standards.

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1

(b)  Submission to authority.--The Department of the Auditor

2

General shall submit the needs assessment report to the

3

authority within two months of receiving a copy of the adequacy

4

standards from the task force. The needs assessment report shall

5

be presented in a uniform manner.

6

(c)  Governmental assistance.--For the purposes of preparing

7

the needs assessment report for school buildings and facilities,

8

the Department of the Auditor General may request the assistance

9

of local school districts, the Division of Facilities Management

10

of the Department of Education, and other departments, agencies

11

and entities of the Commonwealth as deemed necessary by the

12

Department of the Auditor General.

13

§ 3309.  Pennsylvania Public School Construction Authority.

14

(a)  Establishment.--There is hereby established a

15

Pennsylvania Public School Construction Authority.

16

(b)  Membership.--The authority shall be comprised of 14

17

members as follows:

18

(1)  The Governor or his designee.

19

(2)  The Auditor General or his designee.

20

(3)  The State Treasurer or his designee.

21

(4)  The Secretary of Education or his designee.

22

(5)  The Secretary of the Budget or his designee.

23

(6)  The Secretary of General Services or his designee.

24

(7)  The President pro tempore of the Senate or his

25

designee, the Minority Leader of the Senate or his designee,

26

the Speaker of the House of Representatives or his designee,

27

and the Minority Leader of the House of Representatives or

28

his designee.

29

(8)  Four representatives of the private sector

30

architectural and construction management industries, who

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1

shall be appointed by the Governor.

2

(c)  Term.--The term of the members of the authority shall be

3

as follows:

4

(1)  The Governor, Auditor General, State Treasurer,

5

Secretary of Education, Secretary of the Budget, Secretary of

6

General Services and the members of the General Assembly

7

shall serve concurrently with their positions, and a designee

8

of one of these officials shall serve the same term as the

9

appointing official.

10

(2)  The four representatives of the private sector

11

architectural and construction management industries shall

12

serve for terms of three years. Upon the end of their terms,

13

the Governor may reappoint them to the authority or may

14

appoint other representatives of the private sector

15

architectural and construction management industries.

16

(d)  Reimbursement for expenses.--Each member of the

17

authority shall serve without compensation for the performance

18

of official duties but may be reimbursed for actual and

19

necessary expenses reasonably incurred in the performance of the

20

duties of the authority.

21

(e)  Duties.--The authority shall have the following powers

22

and duties:

23

(1)  Appoint the initial members of the task force within

24

two months of the effective date of this chapter.

25

(2)  Review and approve, conditionally approve or reject

26

the proposed public school building and facility adequacy

27

standards submitted by the task force within 30 days of the

28

receipt of the proposed standards.

29

(3)  Establish guidelines for the operation and

30

administration of the grant program, including criteria,

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1

eligibility and funding for emergency public school

2

infrastructure needs, within three months of the effective

3

date of this chapter.

4

(4)  Create a central depository for information on

5

school building projects through the establishment and

6

maintenance of an electronic database that contains the

7

condition and needs for every school building and facility.

8

The electronic database shall be designed so that information

9

can be easily collected, stored, amended, reviewed and

10

disseminated. The information contained in this database

11

shall be available for public inspection.

12

(5)  Serve the school districts as a resource in

13

designing and constructing school buildings and facilities

14

that comply with the school building and facility adequacy

15

standards established by this chapter and to assist the

16

districts in best utilizing their funding from the program,

17

including the provision and utilization of existing model

18

plans of school buildings or the development of new model

19

plans for school buildings.

20

(6)  Operate and administer the fund and adequacy

21

program.

22

(7)  Prepare an annual report on the operation and

23

administration of the adequacy program and fund, which shall

24

be submitted to the chairman of the Committee on Education of

25

the Senate and the chairman of the Committee on Education of

26

the House of Representatives within three months of the end

27

of the fiscal year.

28

(8)  Have continuing succession.

29

(9)  Sue and be sued, implead and be impleaded, complain

30

and defend in all courts.

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1

(10)  Adopt, use and alter at will a corporate seal.

2

(11)  Acquire, purchase, hold, lease as lessee and use

3

any property real, personal or mixed, tangible or intangible,

4

or any interest therein, necessary or desirable, for carrying

5

out the purposes of the authority and to sell, lease as

6

lessor, transfer and dispose of any property or any interest

7

therein at any time acquired by it.

8

(12)  Make bylaws for the management and regulation of

9

its affairs.

10

(13)  Appoint officers, agents, employees and servants,

11

to prescribe their duties and to fix their compensation.

12

(14)  Finance projects by making grants to any eligible

13

school district.

14

(15)  Borrow money for the purpose of financing or

15

refinancing the cost of any project, make and issue

16

negotiable notes, bonds and other evidences of indebtedness

17

or obligations of the authority to the extent authorized

18

under this chapter and to secure the payment of such bonds,

19

or any part thereof, by pledge or deed of trust of all or any

20

of its revenues and receipts, and to make such agreements

21

with the purchasers or holders of such bonds or with others

22

in connection with such bonds when issued or to be issued as

23

the authority shall deem advisable, and in general to provide

24

for the security of the bonds and the rights of the holder

25

thereof.

26

(16)  Make contracts of every name and nature and to

27

execute all instruments necessary or convenient for the

28

carrying of its business.

29

(17)  Borrow money and accept grants from and enter into

30

contracts or other transaction with any Federal agency,

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1

without limitation of the other powers and duties specified

2

in this subsection.

3

(18)  Pledge, hypothecate or otherwise encumber all or

4

any of the revenues or receipts of the authority as security

5

for all or any of the obligations of the authority.

6

(19)  Do all acts and things necessary or convenient to

7

carry out the powers granted to it by this chapter.

8

(f)  Exercise of powers and duties.--

9

(1)  The powers and duties of the authority shall be

10

exercised by a governing body consisting of the members of

11

the authority acting as a board. Within 30 days after the

12

effective date of this chapter, the board shall meet and

13

organize by electing from their number a president, treasurer

14

and secretary. At the first regular meeting in each year

15

thereafter, they shall elect from their number a president

16

and a secretary.

17

(2)  Nine members shall constitute a quorum of the board

18

for the purpose of organizing the authority and conducting

19

the business thereof and for all other purposes, and all

20

action shall only be taken by a vote of a majority of the

21

members of the authority unless the bylaws shall require a

22

larger number. The board shall have full authority to manage

23

the properties and business of the authority and to

24

prescribe, amend and repeal bylaws, rules and regulations

25

governing the manner in which the business of the authority

26

may be conducted and the powers granted to it may be

27

exercised and embodied. The board shall fix and determine the

28

number of officers, agents and employees of the authority and

29

their respective compensation and duties and may delegate to

30

one or more of their number or to one or more of the

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1

officers, agents or employees such powers and duties as it

2

may deem proper.

3

(g)  Limitation.--The authority shall have no power at any

4

time or in any manner to pledge the credit or taxing power of

5

the Commonwealth or any of its school districts, nor shall any

6

of its debts or obligations be deemed to be obligations of the

7

Commonwealth or any of its school districts, nor shall the

8

Commonwealth or any of its school districts be liable for the

9

payment of principal or interest on such obligations.

10

§ 3310.  Annual report.

11

The authority shall submit an annual report to the chairman

12

of the Committee on Education of the Senate and the chairman of

13

the Committee on Education of the House of Representatives

14

regarding the administration and operation of the fund and

15

adequacy grant program.

16

§ 3311.  School district capital improvement plans.

17

(a)  Plan necessary for program funding.--Following

18

completion of the school building and facility assessment, the

19

adequacy standards, needs assessment and the adequacy grant

20

program guidelines, any school district that submits an

21

application for funding under the program shall prepare and

22

retain on file an annual and a five-year capital improvement

23

plan. The five-year capital improvement plan shall be updated

24

annually.

25

(b)  Contents of plan.--The capital improvement plan shall:

26

(1)  Address the deficiencies in the school district's

27

school buildings and facilities as listed in the school

28

building and facility assessment, needs assessment and

29

authority report.

30

(2)  Comply with the school building and facility

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1

adequacy standards.

2

(3)  Include all of the following:

3

(i)  The project descriptions and rationale for

4

repair, maintenance and construction of school buildings

5

or facilities.

6

(ii)  The project floor plans or a copy of project

7

blueprints.

8

(iii)  The student and school district employee

9

capacity of each school building or facility in the

10

capital improvement plan.

11

(iv)  The current and projected student enrollment

12

for a five-year period.

13

(v)  The funding sources and cost estimates,

14

including applicable cost estimates contained in the

15

needs assessment and authority report.

16

(vi)  The school district efforts to comply with the

17

requirements of the school building and facility adequacy

18

standards.

19

(vii)  The calculations of the average useful life

20

for each project financed under the adequacy grant

21

program.

22

§ 3312.  Public School Building and Facility Adequacy Grant

23

Program.

24

(a)  Establishment.--The Public School Building and Facility

25

Adequacy Grant Program is hereby established and shall be

26

administered by the authority.

27

(b)  Components of program.--The adequacy grant program shall

28

consist of two separate components which shall be known as the

29

direct grant program and the interest subsidy program. The

30

adequacy grant program shall be funded by moneys generated from

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1

the issuance of bonds and deposited in the fund. Fifty percent

2

of those funds in the fund generated from bond proceeds shall

3

fund the direct grant program, and the remaining 50% shall fund

4

the interest subsidy program.

5

§ 3313.  Direct grant program.

6

(a)  Grants to be provided.--The direct grant program shall

7

provide direct grants to eligible school districts for 100% of

8

the cost of a project, including the performance of essential

9

maintenance on or construction of a public school building or

10

facility and educational equipment.

11

(b)  Applications.--School districts eligible under this

12

program may submit an annual application to the authority. The

13

authority shall establish procedures and guidelines regarding

14

the application for and award of direct grants under this

15

program. The procedures and guidelines shall include:

16

(1)  Provisions for accountability to ensure that the

17

direct grants are used in accordance with this chapter.

18

(2)  The following project priority list for the award of

19

grants under the program:

20

(i)  To replace or reconstruct school buildings and

21

facilities destroyed or damaged by manmade or natural

22

disasters.

23

(ii)  To perform essential maintenance on the most

24

deficient school buildings and facilities.

25

(iii)  To replace school buildings and facilities

26

that no longer are structurally sound or have components

27

that are no longer structurally sound.

28

(iv)  To construct new school buildings and

29

facilities to alleviate the overcrowding caused by

30

population growth.

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1

(v)  To purchase educational equipment.

2

(c)  Eligibility criteria.--The authority shall establish

3

eligibility criteria for grant recipients, in which eligibility

4

shall be based on at least one of the following:

5

(1)  The school district has at least 50% of its students

6

eligible for free or reduced-cost lunches under the National

7

School Lunch Act (60 Stat. 230, 42 U.S.C. § 1751 et seq.).

8

(2)  The school district receives a poverty supplement in

9

its basic education funding.

10

(3)  The school district has a market value income aid

11

ratio of 0.8000 or higher.

12

Any school district that meets the eligibility criteria under

13

this subsection shall be classified as a special need district.

14

§ 3314.  Interest subsidy program.

15

(a)  Funding to be provided.--

16

(1)  The interest subsidy program shall provide funding

17

in the form of a reimbursement to a school district that is

18

not classified as a special need district for a specific

19

percentage of the total costs of a project for the

20

performance of essential maintenance on or the construction

21

of school buildings and facilities.

22

(2)  The authority shall establish a formula for the

23

calculation of the percentage of the total project costs

24

which may be reimbursed to the school district.

25

(b)  Eligibility criteria.--The authority shall establish

26

eligibility criteria for the award of the funding under this

27

program which shall incorporate the following project priority

28

list:

29

(1)  To replace or reconstruct school buildings and

30

facilities destroyed or damaged by manmade or natural

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1

disasters.

2

(2)  To alleviate the overcrowding caused by population

3

growth or to replace school buildings and facilities that no

4

longer are structurally sound or have components that are no

5

longer structurally sound.

6

(3)  To replace or reconstruct school buildings and

7

facilities that pose a risk to the health and safety of

8

students, employees and the public.

9

(4)  To alter facilities to provide accessibility for

10

qualified individuals with disabilities, as defined under the

11

Americans with Disabilities Act of 1990 (Public Law 101-336,

12

42 U.S.C. § 12101 et seq.)

13

(5)  To purchase educational equipment.

14

(c)  Prerequisite for eligibility.--In order for a school

15

district to be eligible under the interest subsidy program, the

16

school district must obtain financing for a project at the

17

lowest available interest rate. The guidelines for the program

18

established by the authority shall address sufficient

19

documentation of such lowest available interest rate.

20

§ 3315.  Bond issuance.

21

(a)  Amount authorized.--The authority is authorized to issue

22

a maximum of $3,000,000,000 in negotiable bonds in four

23

individual series of $750,000,000 over the course of two years

24

for the purpose of funding the adequacy grant program to provide

25

grants and reimbursements for the construction, maintenance and

26

equipping of public schools in this Commonwealth. The term of

27

each series of bonds shall be based on the average useful life

28

of the projects financed.

29

(b)  Terms.--

30

(1)  The bonds of the authority shall be of such series,

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1

bear such date or dates, mature at such time or times, not

2

exceeding 30 years from their respective dates, bear such

3

interest at such rate or rates payable semiannually, be in

4

such denominations, be in such form, either coupon or fully

5

registered without coupons, carry such registration,

6

exchangeability and interchangeability privileges, be payable

7

in such medium of payment and at such place or places, be

8

subject to such terms of redemption at such prices not

9

exceeding 105% of the principal amount thereof and be

10

entitled to such priorities in the revenues and receipts of

11

the authority as such resolution or resolutions may provide.

12

The interest on bonds issued shall be paid during the term

13

for which the bonds were issued. The bonds shall be signed by

14

such officers, either manually or by facsimile as the

15

authority shall determine, and shall have imprinted thereon a

16

facsimile of the corporate seal, attested by the facsimile

17

signature of the treasurer of the authority, all as may be

18

prescribed in such resolution or resolutions. Any of the

19

bonds may be issued and delivered notwithstanding that any of

20

the authorized persons signing the bonds or whose facsimile

21

signature shall be upon the bonds shall have ceased to hold

22

their respective offices at the time when the bonds shall

23

actually be delivered.

24

(2)  The bonds shall be sold as the authority shall

25

determine at private sale or to the highest responsible

26

bidder or bidders after public notice by advertisement. The

27

notice shall contain a general description of the bonds, the

28

manner, place and time of the sale or time limit for the

29

receipt of proposals, the name of the officer to whom the

30

bids or proposals shall be delivered and a statement of the

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1

terms and conditions of the sale, which shall include a

2

statement of the highest net interest cost or highest

3

interest cost computed by the Present Worth Method, whichever

4

is specified, acceptable to the authority. For the purposes

5

of this section, net interest cost shall be determined by

6

ascertaining the total amount of interest payable with

7

respect to the bonds, computed from the date of the bonds to

8

the stated maturity dates thereof, plus the amount of any

9

discount from the principal amount of the bond or less the

10

amount of any premium in excess of the principal amount of

11

the bonds. Pending the preparation of the definitive bonds,

12

interim receipts may be issued to the purchaser or purchasers

13

of such bonds and may contain such terms and conditions as

14

the authority may determine.

15

(3)  The bonds are hereby made securities in which all

16

officers of the Commonwealth and its political subdivisions

17

and municipal officers and administrative departments, boards

18

and commissions of the Commonwealth, all banks, bankers,

19

savings banks, trust companies, savings and loan

20

associations, investment companies and other persons carrying

21

on a banking business, all insurance companies, insurance

22

associations and other persons carrying on an insurance

23

business and all administrators, executors, guardians,

24

trustees and other fiduciaries, and all other persons

25

whatsoever who now or may hereafter be authorized to invest

26

in bonds or other obligations of the Commonwealth, may

27

properly and legally invest any funds, including capital,

28

belonging to them or within their control, and the bonds or

29

other securities or other obligations are hereby made

30

securities which may properly and legally be deposited with

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1

and received by any State or municipal officers or agency of

2

the Commonwealth for any purpose for which the deposit of

3

bonds or other obligations of the Commonwealth is now or may

4

hereafter be authorized by law.

5

(c)  Contents of resolution.--Any resolution authorizing the

6

bonds may contain provisions which shall be a part of the

7

contract with the holders thereof as to:

8

(1)  Pledging the full faith and credit of the authority,

9

but not of the Commonwealth or any county or other political

10

subdivision thereof, for such obligations or restricting the

11

same to all or any of the revenues or receipts of the

12

authority from all or any projects.

13

(2)  The financing and the duties of the authority with

14

reference thereto.

15

(3)  The terms and provisions of the bonds.

16

(4)  Limitations on the purposes to which the proceeds of

17

the bonds, then or to be later issued, or of any loan or

18

grant by the United States may be applied.

19

(5)  The setting aside of reserves or sinking funds and

20

the regulation and disposition thereof.

21

(6)  The terms and provisions of any deed of trust or

22

indenture securing the bonds or under which the same may be

23

issued.

24

(7)  Any other or additional agreements with the holders

25

of the bonds.

26

(d)  Documents.--The authority may enter into any deeds of

27

trust, indentures or other agreements with any bank or trust

28

company or other person or persons in the United States having

29

power to enter into the same, including any Federal agency, as

30

security for such bonds and may assign and pledge all or any of

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1

the revenues or receipts of the authority thereunder. Such deed

2

of trust, indenture or other agreement may contain such

3

provisions as may be customary in such instruments or as the

4

authority may authorize, including, but without limitation,

5

provisions as to:

6

(1)  The construction, improvement, financing, operation,

7

maintenance and repair of any project or projects and the

8

duties of the authority with reference thereto.

9

(2)  The application of funds and the safeguarding of

10

funds on hand or on deposit.

11

(3)  The rights and remedies of the trustee and the

12

holders of the bonds, which may include restrictions upon the

13

individual right of action of such bondholders.

14

(4)  The terms and provisions of the bonds or the

15

resolutions authorizing the issuance of the same.

16

(e)  Bonds as negotiable instruments.--Bonds of the authority

17

shall have the qualities of negotiable instruments under 13

18

Pa.C.S. (relating to commercial code).

19

(f)  Rights and remedies of bondholders.--

20

(1)  The rights and remedies conferred in this section

21

upon or granted to the bondholders shall be in addition to

22

and not in limitation of any rights and remedies lawfully

23

granted to such bondholders by the resolution or resolutions

24

providing for the issuance of bonds or by any deed of trust,

25

indenture or other agreement under which the same may be

26

issued or secured. In the event that the authority shall

27

default in the payment of principal of or interest on any of

28

the bonds after the principal or interest shall become due,

29

whether at maturity or upon call for redemption, and such

30

default shall continue for a period of 30 days, or in the

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1

event that the authority shall fail or refuse to comply with

2

the provisions of this chapter or shall default in any

3

agreement made with the holders of the bonds, the holders of

4

25% in aggregate principal amount of the bonds then

5

outstanding, by instrument or instruments filed in the office

6

of the recorder of deeds of the county, and proved or

7

acknowledged in the same manner as a deed to be recorded may,

8

except as such right may be limited under the provisions of

9

any deed of trust, indenture or other agreement as provided

10

earlier, appoint a trustee to represent the bondholders for

11

the purposes provided in this section. Such trustee and any

12

trustee under any deed of trust, indenture or other agreement

13

may, and, upon written request of the holders of 25%, or such

14

other percentage as may be specified in any deed of trust,

15

indenture or other agreement as provided in this section, in

16

principal amount of the bonds then outstanding, shall in his

17

or its own name:

18

(i)  by mandamus or other suit, action or proceeding

19

at law or in equity to enforce all rights of the

20

bondholders, including the right to require the authority

21

to collect rates and other charges adequate to carry out

22

any agreement as to, or pledge of the revenues or

23

receipts thereof, the authority, and to require the

24

authority to carry out any other agreements with or for

25

the benefit of the bondholders, and to perform its and

26

their duties under this chapter;

27

(ii)  bring suit upon the bonds;

28

(iii)  by action or suit in equity to require the

29

authority to account as if it were the trustee of an

30

express trust for the bondholders;

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1

(iv)  by an action or suit in equity to enjoin any

2

acts or things which may be unlawful or in violation of

3

the rights of the bondholders; or

4

(v)  by notice in writing to the authority to declare

5

all bonds due and payable and if all defaults shall be

6

made good, then with the consent of the holders of 25%,

7

or such other percentage as may be specified in any deed

8

of trust, indenture or other agreement as provided in

9

this section, of the principal amount of the bonds then

10

outstanding, to annul such declaration and its

11

consequences.

12

(2)  Any trustee, whether appointed as aforesaid or

13

acting under a deed of trust, indenture or other agreement,

14

and whether or not all bonds have been declared due and

15

payable, shall be entitled as of right to the appointment of

16

a receiver, who may, to the same extent that the authority

17

itself could do so, enter and take possession of the

18

facilities of the authority or any parts thereof, the

19

revenues or receipts from which are or may be applicable to

20

the payment of the bonds so in default, and operate and

21

maintain the same and collect and receive other revenues

22

thereafter rising therefrom in the same manner as the

23

authority might do and shall deposit all such moneys in a

24

separate account and apply the same in such manner as the

25

court shall direct. In any suit, action or proceeding by the

26

trustees, the fees, counsel fees and expenses of the trustee

27

and of the receiver, if any, and all costs and disbursements

28

allowed by the court shall be a first charge on any revenues

29

and receipts from which are or may be applicable to the

30

payment of the bonds so in default. The trustee shall, in

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1

addition to the foregoing, have and possess all of the powers

2

necessary or appropriate for the exercise of any functions

3

specifically set forth in this section or incident to the

4

general representation of the bondholders in the enforcement

5

and protection of their rights.

6

(3)  In addition to all other rights and all other

7

remedies, any holder of bonds of the authority shall have the

8

right by mandamus or other suit, action or proceeding at law

9

or in equity to enforce his rights against the authority to

10

collect his fees, rentals and other such charges adequate to

11

carry out any agreement as to, or pledge of, such fees,

12

rentals or other charges or income, revenues and receipts and

13

to require the authority to carry out any of its covenants

14

and agreements with the bondholders and to perform its and

15

their duties under this chapter.

16

(g)  Sinking fund.--The bonds of the authority shall be

17

issued under one or more resolutions or one or more trust

18

indentures and, as provided in such resolution or trust

19

indenture, the moneys set aside in any sinking fund pledged for

20

any particular bonds or series of bonds shall be held for the

21

sole benefit of such bonds, separate and apart from the moneys

22

pledged for any other bonds of the authority issued under any

23

other resolution or trust indenture.

24

(h)  Commonwealth pledge.--The Commonwealth does hereby

25

pledge to and agree with any person, firm or corporation or

26

Federal agency subscribing to or acquiring the bonds to be

27

issued by the authority for the construction, financing,

28

extension, improvement or enlargement of any project or part

29

thereof that the Commonwealth will not limit or alter the rights

30

hereby vested in the authority or limit or alter any provisions

- 28 -

 


1

for the security and protection of the authority and its

2

bondholders contained in this act or as now provided by law

3

until all bonds at any time issued, together with the interest

4

thereon, are fully met and discharged. The Commonwealth does

5

further pledge to and agree with the United States and any other

6

Federal agency that, in the event that any Federal agency shall

7

construct or contribute any funds for the construction,

8

financing, extension improvement or enlargement of any project

9

or any portion thereof, the Commonwealth will not alter or limit

10

the rights and powers of the authority in any manner which would

11

be inconsistent with the continued maintenance and operation of

12

the project or the improvement thereof, or which would be

13

inconsistent with the due performance of any agreements between

14

the authority and any such Federal agency, and the authority

15

shall continue to have and may exercise all powers in this

16

section for carrying out of the purposes of this chapter and the

17

purposes of the United States in the construction or improvement

18

or enlargement of any project or such portion thereof.

19

(i)  Tax exemption for authority.--The effectuation of the

20

authorized purposes of the authority established under this

21

chapter shall and will be in all respects for the benefit of the

22

people of this Commonwealth, for the increase of their welfare

23

and prosperity and for the improvement of their education and

24

educational facilities, and, since the authority will be

25

performing essential governmental functions in effectuating such

26

purposes, the authority shall be exempt from payment of any

27

taxes or assessments on any property acquired, held, owned,

28

leased or used by it for such purposes, and the bonds issued by

29

the authority, their transfer and the income therefrom,

30

including any profits made on the sale thereof, shall at all

- 29 -

 


1

times be free from taxation, other than inheritance and estate

2

taxation within this Commonwealth.

3

§ 3316.  Public School Construction Reserve Fund.

4

(a)  Establishment.--The Public School Construction Reserve

5

Fund is hereby established in the State Treasury. The board of

6

the authority shall operate and administer the fund and shall

7

establish guidelines for the administration and operation of the

8

fund.

9

(b)  Use of moneys.--Moneys in the fund shall be used by the

10

authority as follows:

11

(1)  Proceeds raised from the sale of the bonds shall be

12

used to fund the adequacy grant program of which 50% of the

13

proceeds shall fund the direct grant program and the

14

remaining 50% shall fund the interest subsidy program.

15

(2)  Funds transferred by the State Treasurer into the

16

fund under subsection (c) shall be used as follows:

17

(i)  First to alleviate existing debt service.

18

(ii)  After the annual debt service payment has been

19

made, the remaining funds shall be used for funding

20

emergency maintenance for structurally unsound school

21

buildings and facilities.

22

(c)  Primary funding source.--To fully fund the annual debt

23

service, up to the sum of 100% of the amount allocated for

24

school construction and modernization under the Department of

25

Education's "PlanCon" program may be used, and at least one-half

26

of the allocation shall be used, with any amount unused and

27

remaining from this allocation being returned to the General

28

Fund annually.

29

(d)  Other funding sources.--The authority shall deposit any

30

other moneys made available to the authority from any source for

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1

such purposes into the fund.

2

(e)  Use of remaining funds.--The fund shall have the

3

priority of alleviating existing debt service arising from the

4

bond issuance. When the annual debt service payment has been

5

paid, any remaining funds shall be used for emergency public

6

school maintenance needs in this Commonwealth in accordance with

7

guidelines established by the authority for emergency school

8

construction and maintenance funding.

9

Section 2.  This act shall take effect immediately.

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