OFFICIAL OPINION No. 5

OFFICIAL OPINION No. 5 Pu/~/ ic. School ,B11ild i11 u:~-Lea se Rci111 llllrs1·1111'11ts-:-Schuol Districts-Public School ( 111'1 - Act .;.!.J 11/ 1.9~ .!--:School Ihstnct of P/11/adelphia-Depa 11111 e11t 0 ( Labor 11111/ !1u/11stru- fl 'l'1111/ u.f 01·c111io11cy. · 1. T he Department of Ed ucation cannot reimburse a sc hool district for a lease of a building for school use under Section 2575,2 of the P ubl ic School Code of 1949. as amended. 1f such lease 1s for a period of time of less than five (5) years. 2. The School Dist: ictof Philadelphia is not required to obtain a permit ofoccu ancy from the Depa1 lment of Labor a nd Ind ustry under Section 703 1 f th ~ bl ' School Code of 1949. as amended. · 0 e u IC :3. Prior to a~ p rovi n g a lease of a bui lding for school purposes under Section 703.1 of the Public Sc hool Code, the Department of Educat10n should require a sch 1 d ' tn ct to provide evidence of need fo r the fac ility. 00 IS- 4. A school di s~ ri c t with an approved lease sig ned du r ing the period of time b t December 6. 1972 and Ju ne :30, 197:3 would be entitled to be re imbursedeu~d~~ OPIN IO NS OF THE ATTORNEY GENERAL 17 Section 2575.2 of the Public School Code on such an approved lease for the period of time between the date of signatu re of the lease agreement andJune30. 1973. 5. In a case where a school district had a lease in effect on December 6, 1972 and sub- sequent to that date. renegotiates the lease for a period of five(5) years or more. the Department of Education can approve such a renegotiated lease and make reim- bursement payments to the school district on the basis of the renegotiated lease, under Section 2575.2 of the Public School Code. 6. In a case where a school district had a lease in effect on December 6. 1972 and the lease is scheduled to run for a period of five (5) years or more from December 6. 1972. the Department of Education can approve the lease and make reimburse- ment payments to the school district on the lease for the period of time from December 6. 1972. onward. under Sections 70:n and 2575.2 of the Public School Code. 7. The Department of Education may require a school distri ct to submit arch itec- tural drawings for buildings to be leased for school districts prior to the Department's approving the lease for reimbursement purposes under Sections 703.1 and 2575.2. supra. of the Public School Code. Honorable John C. Pittenger Secretary of Education Harrisburg, Pennsylvania Dear Secretary Pittenger: Harrisburg, Pa. January 24, 1974 You have asked several questions relating to the approval of the Department of Education of lease reimbursements to school dis- tricts under Section 703.1 of the Public School Code of 1949, as amended. I. The first question you asked is whether the Department of Educa- tion could reimburse a school district for a lease of a building for school use under Section 2575.2 of the Public School Code of 1949, as amended, if such lease is for a period of time of less than five (5) years. You are advised that the Department cannot make such a reim- bursement if the lease in question is for a period of time of less than five (5) years. Section 2575.2 of the Public School Code, 24 P.S. §25-2575.2, provides as follows: The Commonwealth shall pay, annually, for the school year 1972-1973 and each school year thereafter to each school district which leases with the approval of the Department of Education buildings and facilities for school use under the provisions of section 703. l, an amount to be determined 18 OPINIONS OF THE ATTORNEY GENERAL by multiplying the district's aid ratio by the approved reimbursable annual rental. In the case of districts eligible under density factor the minimum annual payment shall be no less than fifty per centum (50%) of the approved reimbursable annual rental. In other words, a school district would be entitled to receive the reimbursement payments provided for in Section 2575.2 of the Public School Code only if the lease that the school district enters into has (1) been approved by the Department of Education, and (2) been entered into under the provisions of Section 703.1 of the Public School Code. Section 703.l of the Publi<; School Code, 24 P.S. § 7-703.1, provides as follows: The board of school directors of any district is hereby vested with the power and authority to lease for an extended period of five (5) years or more, with or without provisions for acquisition of same, buildings or portions of buildings constructed for school use and/or other buildings or por- tions of buildings altered for school use provided such buildings comply with standards and regulations es- tablished by the State Board of Education and the Depart- ment of Labor and Industry. (Emphasis added). It is clear that in order to meet the requirements of Section 703.1, a lease would have to be for a period of five years or more. Any con- ceivable doubt on this is dispelled by Section 2574.2 of the Public School Code, 24 P.S. §25-2574.2, which provides that: For extended leases of buildings and facilities for school use authorized under the provisions of section 703.1 which have been approved by the Secretary of Education, the Depart- ment of Education shall calculate an approved reimbur- sable annual rental charge. (Emphasis added). II. The second question you asked is whether the School District of Philadelphia is required to obtain a permit of occupancy from the Department of Labor and Industry under Section 703.1 of the Public School Code of 1949, as amended . . Se~tion 703.1, supra, does provide that buildings leased by .school districts for school pu_rposes under that section of the Public School Code must comply with the standards and regulations established by the Dep~rtment of Labor and Industry. However, Section 101 of the regulat10ns of the Department of Labor and Industry relating to OPINIONS OF THE ATTORNEY GENERAL 19 building occupancy permits provides that such regulations apply to every building within this Commonwealth except to buildmgs of cities of the first class, second class and second class A. Consequently, since the school buildings of the Philadelphia School District are located within a city of the first class, the Philadelphia School District is not required to obtain a certificate of occupancy from the Department of Labor and Industry under Sec- tion 703.1 of the Public School Code. III. Your next question was whether the Department of Education, prior to approving leases of buildings for school purposes under Sec- tion 703.1 of the Public School Code should require a school district to provide evidence of need for the facility. You are advised that the Department should require a school dis- trict to demonstrate evidence of need. Section 2576(c) of the Public School Code, 24 P.S. §25-2576(c), provides as follows: (c) The Department of Public Instruction shall not ap- prove any project for which Commonwealth reimburse- ment is sought unless an inspection has been made by the department of the location and adequacy of existing school facilities and the determination made that existing facilities are inadequate in terms of prevailing educational standards. Under this section of the Public School Code, the Department can- not approve reimbursement for a lease unless it is provided evidence which demonstrates that the school district has need for the facility. IV. You next asked whether a school district with an approved lease signed during the period of time between December 6, 1972 and June 30, 1973 would be entitled to be reimbursed under Section 2575.2 of the School Code on such an approved lease for the period of time between the date of the signature of the lease agreement and June 30, 1973. You are advised that a school district would be entitled to such reimbursement. Section 2575.2 of the Public School Code was enacted as part of Act 323 of1972, Act of Decem her 6i 19'7'2, P.L. 1445. Section 3 of Act 323 provides that: "This Act sha 1 take effect immediately." 20 OPINIONS OF THE ATTORNEY GENERAL The language used in Section 2575:2 of the Public. School Code, supra, further evidences that the Leg1slature.clearl~ mtended that reimbursements be made for leases entered mto prior to June 30, 1973, since that section of the Code directs th~ C?mmonwealth to make reimbursement payments to the school districts annually, for the school year 1972-1973, an~ ea~h ye'.l.r thereafter. Consequ~ntly, you are advised that a school district with an approved lease signed during the period of time bet~een December 6, 19'.72 and June 30, 1973 would be entitled to be reimbursed under Sect10n 2575.2 of the Public School Code on such lease for the period of time between the date of the signature and June 30, 1973. v. The next question you asked deals with a situation where a school district had a lease in effect on December 6, 1972 and subsequent to that date, renegotiates the lease for a period of five (5) years or more and claims reimbursement from the Department of Education for the period of time following the date the renegotiated lease is sign- ed. You asked whether the Department could approve such a renegotiated lease and make reimbursement payments to the school district under Section 2575.2 of the Public School Code, on the basis of such a renegotiated lease. You are advised that the Department of Education can approve and make reimbursement payments on the basis of a renegotiated lease. Section 2575.2 of the Publi:c School Code, supra, allows the Department of Education to reimburse for any lease which is ap- proved by the Department and which fulfills the requirements as set forth in Section 703.1 of the Public School Code. The intent of the Legislature in Act 323 of 1972 is to aid public schools to provide ade- quate buildings for school use through participation by the Com- monwealth .as .an active partner in the financing of local school le~ses. of buildmgs for school P.urposes. See Meadz•ille Area School Dwtrict v. Department of Publ1c lnstructio11, 398 Pa. 496 (1960). Under the rules of statut?rY construction, the provisions of this type of a statute ~ho~ld 9,e "liberally construed to effect their objects and to promote Justice. Statutory Construction Act of 1972, P.L. 1339, §3, 1 Pa. S. §1928(c). It would seen: consistent with le~islative intent that the Depart- ment of Educat10n would be _Permitted to approve and make reim- bur s~ments on such reneg?t1ated leases of school buildings under Sect10n ?575.2 of the Public School Code, if such reimbursements were bt:;mg made for. the period of time following the date the renegotiated lease 1s signed. OPINIONS OF THE ATTORNEY GENERAL 21 VI. Your next question deals with a situation where a school district had a lease in effect on December 6, 1972 that is scheduled to run for an additional period of five (5) years or more from December 6, 19J2, and, on the basis of such a lease, the school district claims reimbursement from the Department of Education for the period of time following December 6, 1972. You asked whether the Depart- ment co~ld approve such a lease under Section 703.1, supra, and make reimbursement payments to the school district under Section 2575.2, supra, on the basis of such a lease. You are advised that the Department of Education can approve such a lease and make reimbursement payments on it for the period of time following December 6, 1972. To do so would be consistent with the reasoning as set forth in Section V of this Opinion. VII. You next asked whether the Department of Education may re- quire a school district to submit architectural drawings for buildings to be leased for school purposes prior to the Department's approving the lease for reimbursement purposes under Sections 703.1 and 2575.2 of the Public School Code, supra. You are advised that the Department may require such a submis- sion of drawings as part of its approval procedures. Section 731.1 of the Public School Code, 24 P.S. § 7-731.1, provides as follows: No building facilities for school use authorized under the provisions of section 703.1, shall be leased by any school dis- trict until such lease agreement has been approved by the Department of Education. Such approval shall not be given unless the building facilities to be leased meet the stan- dards required to operate public school buildings in use in the Commonwealth. In order to approve a lease of building facilities, the Department of Education must determine that the building facilities meet the standards required to operate public school buildings such as those standards and regulations established by the State Board of Educa- tion and the Department of Labor and Industry. Therefore, the Department of Education may require a school district to furnish any data or plans which the Department reasonably needs in order to make a determination as to whether the building facilities to be leased meet the standards required to operate public school buildings. 22 OPINIONS OF THE ATTORNEY GENERAL Pursuant to Section 512 of the Administrative Code of 1929, 71 P.S. § 192, we have sought the comments of ~he T:r~asury and Auditor General as to Parts I, IV, V and VI of th1s.Op1mon and are advised that the Offices of the Treasurer and Auditor General con- cur in our conclusions. Very truly yours, Lillian B. Gaskin Deputy Attorney General Israel Packel Attorney General