Leases of Public School Buildings

63 Pa. D. & C.2d 683
CourtPennsylvania Department of Justice
DecidedJanuary 24, 1974
DocketOfficial opinion no. 5
StatusPublished

This text of 63 Pa. D. & C.2d 683 (Leases of Public School Buildings) is published on Counsel Stack Legal Research, covering Pennsylvania Department of Justice primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Leases of Public School Buildings, 63 Pa. D. & C.2d 683 (Pa. 1974).

Opinion

PACKEL, Attorney General,

— You have asked several questions relating to the approval of the Department of Education of lease reimbursements to school districts under section 703.1 of the Public School Code of March 10, 1949, P. L. 30, as amended, 24 PS §7-703.1.

I.

The first question you asked is whether the Department of Education 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 years.

You are advised that the department cannot make such a reimbursement if the lease in question is for a period of time of less than five years.

Section 2575.2 of the Public School Code, 24 PS §25-2575.2, provides as follows:

“The Commonwealth shall pay, annually, for the school year 1972-73 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 703.1, an amount to be determined 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 [685]*685in 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 703.1 of the Public School Code, 24 PS §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 portions of buildings altered for school use provided such buildings comply with standards and regulations established by the State Board of Education and the Department of Labor and Industry.” (Italics supplied.)

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 conceivable doubt on this is dispelled by section 2574.2 of the Public School Code, 24 PS §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 Department of Education shall calculate an approved reimbursable annual rental charge.” (Italics supplied.)

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.

[686]*686Section 703.1, supra, does provide that buildings leased by school districts for school purposes under that section of the Public School Code must comply with the standards and regulations established by the Department of Labor and Industry. However, section 101 of the regulations of the Department of Labor and Industry relating to budding occupancy permits provides that such regulations apply to every building within this Commonwealth except to buildings 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 section 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 section 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 district to demonstrate evidence of need.

Section 2576(c) of the Public School Code, 24 PS §25-2576(c), provides as follows:

“(c) The Department of Public Instruction shall not approve any project for which Commonwealth reimbursement 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 cannot approve reimbursement for a lease [687]*687unless it has 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 Public 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 of 1972, Act of December 6, 1972, P. L. 1041 (No. 323). Section 3 of Act 323 provides that: “This Act shall take effect immediately. Approved the 6th day of December A.D. 1972.”

The language used in section 2575.2 of the Public School Code, supra, further evidences that the Legislature clearly intended that reimbursements be made for leases entered into prior to June 30, 1973, since that section of the code directs the Commonwealth to make reimbursement payments to the school districts annually, for the school year 1972-1973, and each year thereafter. Consequently, you are advised that 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 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 [688]*688the lease for a period of five years or more and claims reimbursement from the Department of Education for the period of time following the date the renegotiated lease is signed. 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.

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Related

Meadville Area School District v. Department of Public Instruction
159 A.2d 482 (Supreme Court of Pennsylvania, 1960)

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63 Pa. D. & C.2d 683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leases-of-public-school-buildings-padeptjust-1974.