Regular Session 2023-2024 House Bill 1408 P.N. 1692

PRIOR PRINTER'S NO. 1605

PRINTER'S NO. 1692

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1408

Session of

2023

INTRODUCED BY SCHWEYER, ISAACSON, FIEDLER, SCHLOSSBERG, MADDEN,

T. DAVIS, WAXMAN, KRAJEWSKI, KINSEY, STEELE, NEILSON, KHAN,

HANBIDGE, HILL-EVANS, CIRESI, BOROWSKI, PARKER, KAZEEM,

PROBST, CURRY, McNEILL, KIM, PISCIOTTANO, SANCHEZ, DONAHUE,

ROZZI, BOYD, D. WILLIAMS, WEBSTER, GUZMAN AND TAKAC,

JUNE 16, 2023

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

JUNE 22, 2023

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 limitation on new applications for Department

of Education approval of public school building projects;

and, in construction and renovation of buildings by school

entities, further providing for definitions, for school

construction and renovation approval process, for high-

performance building standards, for maintenance program, FOR

BUILDING CONDITION ASSESSMENTS, for project reimbursement and

for applicability.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 732.1(a) of the act of March 10, 1949

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

amended July 8, 2022 (P.L.620, No.55), is amended to read:

Section 732.1. Limitation on New Applications for Department

of Education Approval of Public School Building Projects.--(a)

For the 2012-2013 fiscal year, 2013-2014 fiscal year, 2017-2018

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fiscal year, 2018-2019 fiscal year, 2019-2020 fiscal year, 2020-

2021 fiscal year, 2021-2022 fiscal year [and], 2022-2023 fiscal

year and each fiscal year thereafter, the Department of

Education shall not accept or approve new school building

construction or reconstruction project applications under this

article.

* * *

Section 2. The definitions of "program," "project" and

"school entity" in section 2601-J of the act are amended and the

section is amended by adding definitions to read:

Section 2601-J. Definitions.

The following words and phrases when used in this article

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

context clearly indicates otherwise:

"Account." The Public School Facility Improvement Account

established under section 2604-J(k) 2604-J(L) .

* * *

"Authority." The Commonwealth Financing Authority.

* * *

"Board." The board of directors of the authority.

* * *

"PlanCon project." The construction of a new building, the

addition to an existing building or the renovation of an

existing building.

"Program." The [maintenance project grant program] Public

School Facility Improvement Grant Program established under

[this article] section 2604-J(a.1).

["Project." The construction of a new building, the addition

to an existing building or the renovation of an existing

building.]

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"School entity." [A] Except as provided for under section

2604-J(l) 2604-J(M) , a school district or career and technical

center.

* * *

Section 3. Sections 2602-J(a) and (e), 2603-J(b), 2604-J,

2605-J and 2606-J(b) and (d) of the act are amended to read:

Section 2602-J. School construction and renovation approval

process.

(a) General rule.--To be eligible to receive reimbursement

from the Commonwealth for costs of a PlanCon project, a school

entity must receive appropriate approval from the department. To

be eligible to receive approval, a school entity shall comply

with the following process as developed and administered by the

department in the order prescribed under this section:

(1) Part 1 - PlanCon Project Justification.

(i) The school entity must first submit an

application containing the following to the department

pursuant to the requirements developed by the department:

(A) The summary page from a school entity-wide

facility study that is not more than five years old.

(B) A school board resolution approving the

PlanCon project.

(D) A design overview, drawings and scheduled

area floor plan for the PlanCon project.

(E) A site plan for the PlanCon project.

(F) Preliminary materials required under section

701.1.

(ii) To approve a school entity's application under

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this paragraph, the department shall:

(A) Verify compliance with the school entity's

facility study.

(B) Verify receipt of the school board

resolution approving the PlanCon project.

specifications and enrollment needs.

(D) Review the PlanCon project's compliance with

section 701.1.

(E) Calculate the PlanCon project's preliminary

reimbursement amount.

(F) Verify compliance with subsection (b).

(2) Part 2 - Construction Documents.

(i) The school entity must submit an application

containing the following to the department pursuant to

the requirements developed by the department:

(A) Evidence of the school entity's intent to

award contracts.

(B) Materials required under section 701.1.

PlanCon project.

(D) Notice of the intent to award bids and bid

outcome materials for the PlanCon project.

(E) Confirmation of the PlanCon project's

compliance with the requirements of other agencies.

(F) The PlanCon project's updated scheduled area

floor plan.

(ii) To approve a school entity's application under

this paragraph, the department shall:

(A) Review bid and construction documents for

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the PlanCon project.

(B) Review the PlanCon project's compliance with

section 701.1.

bid event for the PlanCon project.

(D) Approve the PlanCon project's construction

documents before contracts are signed as a condition

of reimbursement.

(E) Confirm the PlanCon project has complied

with the requirements of other agencies.

(F) Review the PlanCon project's updated

scheduled area floor plan and the school entity's

enrollment.

(G) Calculate the PlanCon project's final

reimbursement amount.

(3) Part 3 - PlanCon Project Bid Awards.

(i) The school entity must submit an application

containing the following to the department pursuant to

the requirements developed by the department:

(A) Evidence of the school board's approval of

signed contracts.

(B) Contractor certifications for the PlanCon

project.

(D) An application for reimbursement for the

PlanCon project under section 2606-J.

(ii) To approve a school entity's application under

this paragraph and begin reimbursement to the school

entity under section 2606-J, the department shall:

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(A) Assess the PlanCon project's cost accounting

based on the actual bids.

(B) Review the PlanCon project's compliance with

subsection (b).

section 701.1.

(D) Review the PlanCon project's application for

reimbursement to the school entity under section

2606-J.

(4) Part 4 - PlanCon Project Completion.

(i) The school entity must submit an application

containing the following to the department pursuant to

the requirements developed by the department:

(A) Within one year of occupancy, an independent

audit of the PlanCon project that may correspond with

the school entity's annual audit.

(B) Attestation of the PlanCon project's

compliance with section 701.1.

(ii) To approve a school entity's application under

this paragraph, the department shall:

(A) Review the PlanCon project's final costs

pursuant to the independent audit.

(B) Review the PlanCon project's compliance with

section 701.1.

* * *

(e) [Project] PlanCon project information.--The department

shall maintain the information submitted and reviewed under this

section in an electronic format and make PlanCon project

information available electronically to the applicant school

entity.

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* * *

Section 2603-J. High-performance building standards.

* * *

(b) Reimbursement enhancement.--

(1) A school entity that utilizes the high-performance

building standards for a PlanCon project under subsection (a)

and satisfies the requirement under paragraph (2) shall

receive a 10% increase above the amount calculated under

section 2606-J.

(2) For a school entity to receive the reimbursement

incentive for a PlanCon project under paragraph (1), the

school entity must provide the department with a projection

showing a positive return on investment over the building's

lifetime for utilizing the high-performance building

standards when compared to regular construction practices.

(3) The department shall develop standards and a

process, in coordination with the application process in

section 2602-J, for awarding an enhanced reimbursement for

compliance with high-performance building standards.

Section 2604-J. [Maintenance program.] Public School Facility

Improvement Grant Program.

[(a) Grant program to be established.--The department shall

establish a maintenance project grant program to support school

entity maintenance projects.]

(a.1) Public School Facility Improvement Grant Program

established.--The Public School Facility Improvement Grant

Program is established within the authority to support school

entity improvement projects. The authority shall administer and

act as the fiscal agent for the program and shall be responsible

for receiving and reviewing all grant applications and awarding

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grants.

(b) Eligibility.--[Maintenance] Improvement projects that

are eligible for grants under this section shall include the

following:

(1) Roof repairs and roof replacement.

(2) Heating, ventilation and air conditioning equipment.

(3) Boilers and controls.

(4) Plumbing systems.

(5) Energy savings projects.

(6) Health and safety upgrades.

(7) Emergencies.

(8) Accessibility projects, in accordance with standards

under 42 U.S.C. Ch. 126 (relating to equal opportunity for

individuals with disabilities).

(9) Internet connectivity, not including purchasing

educational technology hardware or software.

[(8)] (10) Other projects approved by the [secretary]

board.

(1) The [department] authority shall develop a process

through which school entities may submit applications for

grant awards. An application for an improvement project shall

either:

(i) f all under a single eligibility type identified

in subsection (b) and involve one or more school

buildings; or

(ii) e ncompass one or more eligibility types

identified in subsection (b) and be confined to one

school building.

(2) A qualifying application shall have costs related to

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the eligible improvement project of at least $500,000.

(3) A qualifying application shall include an indication

that the school entity received three qualified bids or

estimates for the improvement project.

(4) There shall be no limitation on the number of

applications for different improvement projects a school

entity may submit in a fiscal year.

(5) The authority shall post the application on its

publicly accessible Internet website.

(d) Funding rubric.--The [department] authority shall

develop a rubric to prioritize grant awards under this section.

The rubric shall consider the following:

(1) School entity wealth.

[(2) Prior receipt of grant awards.]

(3) Building conditions, including the age of the

building.

(4) Emergencies.

(5) [Safety] Health, safety and security.

(e) Local match required.--

(1) A school entity shall provide a [50%] 25% match for

each grant awarded.

(2) No matching funds shall be required for a project

that is determined by the [secretary] board to be an

emergency.

(3) The board may waive or reduce the match requirement

for a school district that is in either financial watch or

financial recovery status under Article VI-A.

(f) Limitation on grant award.--

(1) No grant award for [a maintenance] an improvement

project may exceed [$1,000,000] $5,000,000.

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(2) No school entity may receive an annual allocation of

grants that exceeds [20%] 25% of the funds available under

the program.

(3) The total allocation to career and technical centers

and intermediate units shall not exceed 20% of the funds

allocated by the authority under the program in a fiscal

year.

(4) Subject to paragraph (2), there is no limitation on

a school entity receiving multiple awards under the program

in a single fiscal year.

(g) Funding.--

(1) The [program shall be funded from a set-aside equal

to] State Treasurer shall annually transfer 25% of the

appropriation to the department for school building projects

[annually] under this article to the account.

(2) [No less than 20% of the funds allocated to the

program under paragraph (1) shall be awarded to projects that

enhance school building safety and security.] Except in the

case of an emergency improvement project, for each funding

round, the authority shall conduct a single vote to approve

or disapprove the recommended slate of improvement projects.

(3) In any fiscal year when funds are available for

grants under the program [as provided in paragraph (1)], the

[department shall] board may allocate an amount not less than

50% of the [set-aside for grants] amount planned to be

allocated for the fiscal year by December 31 and the [other

50% of the set-aside] remaining amount planned to be

allocated for the fiscal year for grants not later than June

30 of that fiscal year.

(h) Transmission of information to General Assembly.--The

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[department] authority shall annually transmit grant award

information to the Appropriations Committee of the Senate and

the Appropriations Committee of the House of Representatives,

including grant amounts [and scoring from the rubric under

subsection (d)].

(i) Grant award.--

(1) Grant money may only be awarded for new projects

approved by the board. The following shall apply:

(i) For grant awards for the 2023-2024 fiscal year,

a new project shall have a project start date after July

1, 2023.

(ii) For grant awards for the 2024-2025 fiscal year

and each fiscal year thereafter, a new project shall have

a project start date succeeding the date of the executed

grant agreement under paragraph (3).

(2) Grant money may not be used for any of the

following:

(i) Paying fees for securing financing.

(ii) Paying interest on borrowed money.

(iii) Refinancing existing debt.

(iv) Paying for lobbying services.

(v) Paying fines.

(vi) Application preparation fees.

(3) The authority shall execute a grant agreement

between the board and a grant recipient before the payment of

a grant award.

(4) A grant recipient may not make a substantial change

to an approved improvement project without first obtaining

authority consent in writing.

(5) A grant recipient shall maintain full and accurate

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records for the improvement project.

(6) A grant recipient shall submit to the authority

copies of all canceled checks or other records verifying

expenditures of grant money.

(7) Any unused portion of a grant award shall be

returned to the authority.

(8) A grant recipient shall submit to the authority a

final report of the eligible improvement project, including

any information as required by the board.

(9) The authority may establish additional restrictions

and limitations as the authority deems necessary to

administer the program.

(j) Guidelines.--Within 60 days of the effective date of

this subsection, the board shall adopt guidelines to implement

this section. The guidelines shall include provisions for

submission, review and approval of applications, award of grants

and administration of improvement projects funded under the

program, including a provision for reasonable oversight and

reporting to ensure that improvement project grant awards are

used as intended.

(K) QUORUM.--A VOTE OF THE BOARD TO DEVELOP A RUBRIC UNDER

SUBSECTION (D), ADOPT GUIDELINES UNDER SUBSECTION (J) AND TO

APPROVE PROJECTS UNDER THIS SECTION SHALL BE MADE IN ACCORDANCE

WITH 64 PA.C.S. § 1512(D)(1) (RELATING TO BOARD).

(k) (L) The Public School Facility Improvement Account.--The

Public School Facility Improvement Account is established as a

restricted account in the General Fund. The following shall

apply:

(1) Money in the account is appropriated to the

authority on a continuing basis to provide program grants

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under this section.

(2) The State Treasurer may accept appropriations,

transfers, gifts, donations, legacies or any other revenues,

including allowable Federal funds, for deposit into the

account.

(3) Any interest that accrues in the account shall

remain in the account.

(l) (M) 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:

"School entity." A school district, career and technical

center or intermediate unit.

SECTION 2605-J. BUILDING CONDITION ASSESSMENTS.

(A) DUTIES OF DEPARTMENT.--

(1) THE DEPARTMENT SHALL DEVELOP GUIDELINES FOR SCHOOL

ENTITIES TO [VOLUNTARILY] REPORT INFORMATION RELATED TO

SCHOOL BUILDING SAFETY, INVENTORY AND CONDITION. THE

GUIDELINES SHALL INCLUDE A BUILDING CONDITION ASSESSMENT TO

BE [VOLUNTARILY] COMPLETED EVERY [10] FIVE YEARS FOR SCHOOL

ENTITIES THAT INCLUDES, BUT IS NOT LIMITED TO, A PROJECTION

OF COSTS TO MAINTAIN AND RENOVATE EXISTING SCHOOL BUILDINGS.

(2) THE DEPARTMENT SHALL POST COMPLETED BUILDING

CONDITION ASSESSMENTS ON THE DEPARTMENT'S PUBLICLY ACCESSIBLE

INTERNET WEBSITE.

[(3) THE DEPARTMENT SHALL PROVIDE ADDITIONAL POINTS

UNDER THE FUNDING RUBRIC CONTAINED IN SECTION 2604-J(D) FOR

GRANTS APPLIED FOR BY SCHOOL ENTITIES THAT COMPLETE BUILDING

CONDITION ASSESSMENTS.]

(B) COMPLETION INCENTIVE.--A SCHOOL ENTITY THAT COMPLETES A

BUILDING CONDITION ASSESSMENT SHALL [RECEIVE A 2% INCREASE ABOVE

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THE AMOUNT CALCULATED UNDER SECTION 2606-J. THE DEPARTMENT SHALL

DEVELOP A PROCESS, IN COORDINATION WITH THE APPLICATION PROCESS

IN SECTION 2602-J, FOR AWARDING AN ENHANCED REIMBURSEMENT FOR

COMPLETING A BUILDING CONDITION ASSESSMENT] BE ELIGIBLE TO

RECEIVE A GRANT UNDER SECTION 2604-J AND REIMBURSEMENT UNDER

SECTION 2606-J.

Section 2606-J. Project reimbursement.

* * *

(b) [Limitation.--The maximum payment under this section

shall not exceed 65% of a project's structural cost.]

(Reserved).

* * *

(d) Adjustment factor.--

(1) Beginning July 1, 2020, through June 30, 2023, the

adjustment factor shall be zero.

(2) For school entity projects that receive department

approval on an application under section 2602-J(a)(1) after

July 1, 2023, the adjustment factor shall be five tenths.

Section 4. Section 2608-J of the act, amended July 8, 2022

(P.L.620, No.55), is amended to read:

Section 2608-J. Applicability.

This article shall apply to projects for which approval and

reimbursement is sought and to the [maintenance project grant

program] program beginning July 1, 2023, THROUGH JUNE 30, 2026.

Section 5. This act shall take effect July 1, 2023, or

immediately, whichever is later.

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