Bill Text: PA SB399 | 2009-2010 | Regular Session | Introduced

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Bill Title: Further providing for referendum or public hearing required prior to construction or lease and for approved reimbursable rental for certain leases and approved reimbursable sinking fund charges on indebtedness.

Spectrum: Slight Partisan Bill (Democrat 5-2)

Status: (Introduced - Dead) 2009-02-20 - Referred to EDUCATION [SB399 Detail]

Download: Pennsylvania-2009-SB399-Introduced.html

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PRINTER'S NO. 402
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 399 Session of2009
INTRODUCED BY LEACH, WASHINGTON, FERLO, ERICKSON, BOSCOLA, COSTA AND M. WHITE, FEBRUARY 20, 2009
REFERRED TO EDUCATION, FEBRUARY 20, 2009
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 referendum or
public hearing required prior to construction or lease and
for approved reimbursable rental for certain leases and
approved reimbursable sinking fund charges on indebtedness.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 701.1 of the act of March 10, 1949 (P.L.
30, No.14), known as the Public School Code of 1949, amended
July 4, 2004 (P.L.536, No.70), is amended to read:
Section 701.1. Referendum or Public Hearing Required Prior
to Construction or Lease.--Except where the approval of the
electors is obtained to incur indebtedness to finance the
construction of a school project, the board of school directors
of any school district of the second, third or fourth classes,
shall not construct, enter into a contract to construct or enter
into a contract to lease a new school building or substantial
addition to an existing school building without the consent of
the electors obtained by referendum or without holding a public
hearing as hereinafter provided. In the event that a new school
building or a substantial addition to an existing building is to
be constructed or leased, the school board shall, by a majority
vote of all its members, authorize a maximum project cost and a
maximum building construction cost to be financed by the
district or amortized by lease rentals to be paid by the
district. Building construction cost shall consist of the cost
of all building construction including general construction
costs, plumbing, heating, electrical, ventilating and other
structural costs, equipment and fixtures and architectural and
engineering fees relating thereto, but not including costs for
site acquisition and development, rough grading to receive the
building, sewage treatment facilities or equivalent capital
contributions, and architectural and engineering fees relating
thereto. Building construction cost shall not include any
additional LEED costs. In all cases, a public hearing shall be
held not later than thirty (30) days before the school district
submits the initial building construction cost and LEED cost
estimates to the Department of Education for approval. Notice of
the hearing shall be given not later than twenty (20) days
before the date of the scheduled hearing. In the event that the
maximum building construction cost authorization exceeds the
aggregate building expenditure standard hereinafter specified,
the aforesaid authorization of the school board shall be
submitted to the electors of the school district for their
approval within six (6) months prior to submission of the final
building construction cost bids to the Department of Education
for approval. Such referendum shall be held in the same manner
as provided by law for the approval of the incurring of
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indebtedness by referendum. The question as submitted shall
specify the maximum project cost, the maximum building
construction cost and the annual sinking fund charge or lease
rental to be incurred by the school district and the portion of
such charge or rental expected to be reimbursed by the
Commonwealth. If the final building construction cost bids to be
submitted to the Department of Education for approval are less
than the aggregate building expenditure standard hereafter
specified but exceed by eight (8) per cent or more the initial
building construction cost estimates submitted to the Department
for approval, a second public hearing shall be held before the
Department shall give its final approval.
The applicable aggregate building expenditure standard shall
be a total amount calculated for each building or substantial
addition by multiplying the rated pupil capacity under the
approved room schedule by the following: two thousand eight
hundred dollars ($2,800) for each pupil of rated elementary
capacity; four thousand two hundred dollars ($4,200) for each
pupil of rated secondary capacity in grades seven, eight and
nine and five thousand two hundred dollars ($5,200) for each
pupil of rated secondary capacity in grades ten, eleven and
twelve and five thousand two hundred dollars ($5,200) for each
pupil of rated vocational-technical capacity in grades ten,
eleven and twelve to not include the cost of equipment and
fixtures in such vocational-technical schools: Provided,
however, That each of the preceding per pupil amounts shall be
adjusted by the Department of Education on July 1, 1974; and
annually thereafter through July 1, 2003, by multiplying said
amounts by the ratio of the composite construction cost index
compiled and published by the United States Department of
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Commerce for the preceding calendar year to such index for the
next preceding calendar year; and Further Provided, however,
That each of the preceding per pupil amounts shall be adjusted
by the Department of Education on July 1, 2004; and annually
thereafter by multiplying said amounts by the ratio of the
Building Cost Index published by the McGraw-Hill Companies for
the preceding calendar year to such index for the next preceding
calendar year. Rated elementary pupil capacity or rated
secondary pupil capacity for any school building shall be the
rated pupil capacity determined on the basis of the method used
by the Department for school building reimbursement purposes
during the school year 1971-1972.
For purposes of this section:
(1) "Site acquisition" includes the cost of land and mineral
rights, demolition and clearing, rights-of-way and related
utility relocations, surveys and soils analysis, and the cost of
all fees relating thereto.
(2) "Site development" includes excavation, grouting or
shoring, special foundations for buildings, access roads to
site, utilities on site, extension of utilities to site.
(3) "Equipment and fixtures" means property fixed or movable
which is incidental and necessary to conduct the educational
program, and includes, but is not limited to movable equipment
such as desks, chairs, tables, portable physical education
equipment, audio-visual equipment and science, homemaking,
industrial art and business equipment and instructional
materials and fixtures such as casework, laboratory equipment,
kitchen equipment, auditorium seating and any other special
fixtures or equipment required to conduct a particular
educational program.
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(4) "Substantial addition" means more than twenty (20) per
centum of the area and replacement value of the structure to
which the improvement is to be added.
(5) "LEED" means the Leadership in Energy and Environmental
Design, a program designed by the United States Green Building
Council and committed to designing buildings in an energy-
efficient and environmentally conservative manner.
(6) "LEED for schools rating system" means the most current
version of the Leadership in Energy and Environmental Design
(LEED) program designed by the United States Green Building
Council (USGBC) to measure the energy and environmental
performance of K-12 schools.
(7) "LEED cost" means the design, construction and
registration costs directly attributable to achieving points
under the Leadership in Energy and Environmental Design (LEED)
for schools rating system, including, but not limited to, energy
performance benchmarking, life-cycle cost assessments, low-
impact development stormwater management technologies, energy
and lighting modeling, alternative energy technology, building
commissioning, and registration with the United States Green
Building Council (USGBC).
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
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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
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contract is awarded, and
(2) The approved building construction cost and the interest
on such construction cost.
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Section 3. This act shall take effect in 60 days.
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