PRINTER'S NO. 2181
No. 1550 Session of 2000
INTRODUCED BY O'PAKE, RHOADES, WAGNER, TOMLINSON, STOUT, COSTA,
MELLOW, TARTAGLIONE, EARLL, STAPLETON, BELAN, KASUNIC, WAUGH,
MUSTO AND BOSCOLA, OCTOBER 3, 2000
REFERRED TO EDUCATION, OCTOBER 3, 2000
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," further providing for approved
6 reimbursable rental for leases hereafter approved and
7 approved reimbursable sinking fund charges on indebtedness.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 2574(e) of the act of March 10, 1949
11 (P.L.30, No.14), known as the Public School Code of 1949,
12 amended July 10, 1987 (P.L.286, No.50), is amended and
13 subsections (b) and (c) are amended by adding clauses to read:
14 Section 2574. Approved Reimbursable Rental for Leases
15 Hereafter Approved and Approved Reimbursable Sinking Fund
16 Charges on Indebtedness.--* * *
17 (b) For new school buildings the approved building
18 construction cost shall be the lesser of
19 * * *
20 (4) For school buildings for which the general construction
1 contract is awarded on or after July 1, 2001, the product of the
2 rated pupil capacity as determined by the Department of
3 Education at the time the project is approved and (i) four
4 thousand seven hundred dollars ($4,700) in the case of
5 elementary schools, (ii) six thousand two hundred dollars
6 ($6,200) in the case of secondary schools, (iii) an amount in
7 the case of combined elementary-secondary schools obtained by
8 multiplying the rated elementary pupil capacity by four thousand
9 seven hundred dollars ($4,700) and the rated secondary pupil
10 capacity by six thousand two hundred dollars ($6,200) and
11 dividing the sum by the total rated pupil capacity. Beginning
12 July 1, 2002, and each July 1 thereafter, these amounts shall be
13 increased by an annual cost-of-living increase calculated by
14 applying the percentage change in the Consumer Price Index for
15 All Urban Consumers (CPI-U) for the Pennsylvania, New Jersey,
16 Delaware and Maryland area, for the most recent twelve-month
17 period for which figures have been officially reported by the
18 United States Department of Labor, Bureau of Labor Statistics
19 immediately prior to the date the adjustment is due to take
20 effect, to the then amounts authorized. The percentage increase
21 and the amounts shall be determined by the Governor prior to the
22 annual effective date of the adjustment and shall be published
23 by the Secretary of the Budget in the Pennsylvania Bulletin
24 within ten days of the date the determination is made.
25 (c) For additions or alterations to existing buildings
26 approved building construction cost shall be the lesser of
27 * * *
28 (4) For school buildings for which the general construction
29 contract is awarded on or after July 1, 2001, the difference
30 obtained by subtracting the appraisal value of the existing
20000S1550B2181 - 2 -
1 building from the product of the rated pupil capacity of the
2 altered or expanded building as determined by the Department of
3 Education at the time the project is approved and (i) four
4 thousand seven hundred dollars ($4,700) in the case of
5 elementary schools, (ii) six thousand two hundred dollars
6 ($6,200) in the case of secondary schools, (iii) an amount in
7 the case of combined elementary-secondary schools obtained by
8 multiplying the rated elementary pupil capacity by four thousand
9 seven hundred dollars ($4,700) and the rated secondary pupil
10 capacity by six thousand two hundred dollars ($6,200) and
11 dividing the sum by the total rated pupil capacity of the
12 altered or expanded building. Beginning July 1, 2002, and each
13 July 1 thereafter, these amounts shall be increased by an annual
14 cost-of-living increase calculated by applying the percentage
15 change in the Consumer Price Index for All Urban Consumers (CPI-
16 U) for the Pennsylvania, New Jersey, Delaware and Maryland area,
17 for the most recent twelve-month period for which figures have
18 been officially reported by the United States Department of
19 Labor, Bureau of Labor Statistics immediately prior to the date
20 the adjustment is due to take effect, to the then amounts
21 authorized. The percentage increase and the amounts shall be
22 determined by the Governor prior to the annual effective date of
23 the adjustment and shall be published by the Secretary of the
24 Budget in the Pennsylvania Bulletin within ten days of the date
25 the determination is made.
26 * * *
27 (e) For area vocational-technical school and technical
28 institute projects leased subsequent to July 1, 1964, by or for
29 lease to a board of school directors authorized to operate such
30 a school, the Department of Education shall calculate an
20000S1550B2181 - 3 -
1 approved reimbursable rental charge.
2 For area vocational-technical school and technical institute
3 projects constructed or purchased subsequent to July 1, 1964, by
4 a board of school directors authorized to operate such a school,
5 the Department of Education may calculate an approved
6 reimbursable sinking fund charge.
7 Approved reimbursable rental or sinking fund charge shall
8 consist of that part of the annual rental or sinking fund
9 attributable to:
10 (1) Cost of acquiring land and preparing it for use to the
11 extent that such costs are deemed reasonable by the Department
12 of Education and the interest on such cost of acquisition, cost
13 of preparation and the cost of sewage treatment and the interest
14 on such cost.
15 (2) Machinery, apparatus, furniture and equipment and all
16 other necessary expenses and interest charges, but excluding
17 architects' fees in excess of six percent of the construction
18 cost.
19 The approved building construction cost and the interest on
20 such construction cost shall not exceed the product of the rated
21 full-time pupil capacity, as determined by the Department of
22 Education at the time the project is approved and two thousand
23 two hundred dollars ($2,200).
24 The provisions of the foregoing paragraph shall apply to all
25 school building projects for which the general construction
26 contract is awarded prior to July 1, 1966, and for approved
27 school building projects for which a lease was approved by the
28 Department of Education prior to July 1, 1966. For school
29 buildings for which the general construction contract is awarded
30 subsequent to July 1, 1966, and for approved school building
20000S1550B2181 - 4 -
1 projects for which the general construction contract was awarded
2 but for which a lease was not approved by the Department of
3 Education prior to July 1, 1966, the approved building
4 construction cost and the interest on such construction cost
5 shall not exceed the product of the rated full-time pupil
6 capacity, as determined by the Department of Education at the
7 time the project is approved, and three thousand seven hundred
8 dollars ($3700).
9 For school buildings for which the general construction
10 contract is awarded subsequent to July 1, 1984, and for approved
11 school building projects for which the general construction
12 contract was awarded but for which a lease or general obligation
13 bond resolution was not approved by the Department of Education
14 prior to July 1, 1984, the approved building construction cost
15 and the interest on such construction cost shall not exceed the
16 product of the rated full-time pupil capacity, as determined by
17 the Department of Education at the time the project is approved,
18 and six thousand three hundred dollars ($6,300).
19 For school buildings for which the general construction
20 contract is awarded on or after July 1, 2001, the approved
21 building construction cost and the interest on such construction
22 cost shall not exceed the product of the rated full-time pupil
23 capacity, as determined by the Department of Education at the
24 time the project is approved, and seven thousand six hundred
25 dollars ($7,600). Beginning July 1, 2002, and each July 1
26 thereafter, these amounts shall be increased by an annual cost-
27 of-living increase calculated by applying the percentage change
28 in the Consumer Price Index for All Urban Consumers (CPI-U) for
29 the Pennsylvania, New Jersey, Delaware and Maryland area, for
30 the most recent twelve-month period for which figures have been
20000S1550B2181 - 5 -
1 officially reported by the United States Department of Labor,
2 Bureau of Labor Statistics immediately prior to the date the
3 adjustment is due to take effect, to the then amounts
4 authorized. The percentage increase and the amounts shall be
5 determined by the Governor prior to the annual effective date of
6 the adjustment and shall be published by the Secretary of the
7 Budget in the Pennsylvania Bulletin within ten days of the date
8 the determination is made.
9 The Department of Education shall not approve the expenditure
10 of any funds borrowed or obtained by the sale of bonds by any
11 authority, nonprofit corporation, profit corporation, company or
12 individual for construction of area vocational-technical schools
13 or technical institutes for bleachers, athletic field, lighting
14 equipment or apparatus used to promote and conduct
15 interscholastic athletics.
16 * * *
17 Section 2. This act shall take effect July 1, 2001.
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