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                                                      PRINTER'S NO. 4153

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2870 Session of 1990


        INTRODUCED BY PESCI AND BILLOW, OCTOBER 1, 1990

        REFERRED TO COMMITTEE ON EDUCATION, OCTOBER 1, 1990

                                     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 public hearings
     6     and referendums in certain school districts.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 701.1 of the act of March 10, 1949
    10  (P.L.30, No.14), known as the Public School Code of 1949, added
    11  June 27, 1973 (P.L.75, No.34), is amended to read:
    12     Section 701.1.  [Referendum or Public Hearing] Public Hearing
    13  and Referendum Required Prior to Construction or Lease.--Except
    14  where the approval of the electors is obtained to incur
    15  indebtedness to finance the construction of a school project,
    16  the board of school directors of any school district of the
    17  second, third or fourth classes, shall not construct, enter into
    18  a contract to construct or enter into a contract to lease a new
    19  school building or substantial addition to an existing school


     1  building [without the consent of the electors obtained by
     2  referendum or] without holding a public hearing as hereinafter
     3  provided and without the consent of electors obtained by
     4  referendum. In the event that a new school building or a
     5  substantial addition to an existing building is to be
     6  constructed or leased, the school board shall, by a majority
     7  vote of all its members, authorize a maximum project cost and a
     8  maximum building construction cost to be financed by the
     9  district or amortized by lease rentals to be paid by the
    10  district. Building construction cost shall consist of the cost
    11  of all building construction including general construction
    12  costs, plumbing, heating, electrical, ventilating and other
    13  structural costs, equipment and fixtures and architectural and
    14  engineering fees relating thereto, but not including costs for
    15  site acquisition and development, rough grading to receive the
    16  building, sewage treatment facilities or equivalent capital
    17  contributions, and architectural and engineering fees relating
    18  thereto. In all cases, a public hearing shall be held not later
    19  than thirty (30) days before the school district submits the
    20  initial building construction cost estimates to the Department
    21  of Education for approval. Notice of the hearing shall be given
    22  not later than twenty (20) days before the date of the scheduled
    23  hearing. In the event that the maximum building construction
    24  cost authorization exceeds the aggregate building expenditure
    25  standard hereinafter specified, the aforesaid authorization of
    26  the school board shall be submitted to the electors of the
    27  school district for their approval within six (6) months prior
    28  to submission of the final building construction cost bids to
    29  the Department of Education for approval. Such referendum shall
    30  be held in the same manner as provided by law for the approval
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     1  of the incurring of indebtedness by referendum. The question as
     2  submitted shall specify the maximum project cost, the maximum
     3  building construction cost and the annual sinking fund charge or
     4  lease rental to be incurred by the school district and the
     5  portion of such charge or rental expected to be reimbursed by
     6  the Commonwealth. If the final building construction cost bids
     7  to be submitted to the Department of Education for approval are
     8  less than the aggregate building expenditure standard hereafter
     9  specified but exceed by [eight (8)] five (5) per cent or more
    10  the initial building construction cost estimates submitted to
    11  the Department for approval, a second public hearing shall be
    12  held before the Department shall give its final approval.
    13     The applicable aggregate building expenditure standard shall
    14  be a total amount calculated for each building or substantial
    15  addition by multiplying the rated pupil capacity under the
    16  approved room schedule by the following: two thousand eight
    17  hundred dollars ($2,800) for each pupil of rated elementary
    18  capacity; four thousand two hundred dollars ($4,200) for each
    19  pupil of rated secondary capacity in grades seven, eight and
    20  nine and five thousand two hundred dollars ($5,200) for each
    21  pupil of rated secondary capacity in grades ten, eleven and
    22  twelve and five thousand two hundred dollars ($5,200) for each
    23  pupil of rated vocational-technical capacity in grades ten,
    24  eleven and twelve to not include the cost of equipment and
    25  fixtures in such vocational-technical schools: Provided,
    26  however, That each of the preceding per pupil amounts shall be
    27  adjusted by the Department of Education on July 1, 1974; and
    28  annually thereafter by multiplying said amounts by the ratio of
    29  the composite construction cost index compiled and published by
    30  the United States Department of Commerce for the preceding
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     1  calendar year to such index for the next preceding calendar
     2  year. Rated elementary pupil capacity or rated secondary pupil
     3  capacity for any school building shall be the rated pupil
     4  capacity determined on the basis of the method used by the
     5  Department for school building reimbursement purposes during the
     6  school year 1971-1972.
     7     For purposes of this section:
     8     (1)  "Site acquisition" includes the cost of land and mineral
     9  rights, demolition and clearing, rights-of-way and related
    10  utility relocations, surveys and soils analysis, and the cost of
    11  all fees relating thereto.
    12     (2)  "Site development" includes excavation, grouting or
    13  shoring, special foundations for buildings, access roads to
    14  site, utilities on site, extension of utilities to site.
    15     (3)  "Equipment and fixtures" means property fixed or movable
    16  which is incidental and necessary to conduct the educational
    17  program, and includes, but is not limited to movable equipment
    18  such as desks, chairs, tables, portable physical education
    19  equipment, audio-visual equipment and science, homemaking,
    20  industrial art and business equipment and instructional
    21  materials and fixtures such as casework, laboratory equipment,
    22  kitchen equipment, auditorium seating and any other special
    23  fixtures or equipment required to conduct a particular
    24  educational program.
    25     (4)  "Substantial addition" means more than twenty (20) per
    26  centum of the area and replacement value of the structure to
    27  which the improvement is to be added.
    28     Section 2.  This act shall take effect in 60 days.


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