Regular Session 2017-2018 House Bill 2591 P.N. 3903

PRINTER'S NO. 3903

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2591

Session of

2018

INTRODUCED BY EVERETT, MILLARD, DUNBAR, MARSICO, DeLUCA,

WHEELAND AND COX, AUGUST 8, 2018

REFERRED TO COMMITTEE ON EDUCATION, AUGUST 8, 2018

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 referendum or public hearing required prior to

construction or lease.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 701.1 of the act of March 10, 1949

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

amended to read:

Section 701.1. Referendum or Public Hearing Required Prior

to Construction or Lease.--(a) Except as otherwise provided in

subsection (b) and except where the approval of the electors is

obtained to incur indebtedness to finance the construction of a

school project, the board of school directors of any school

district of the second, third or fourth classes, shall not

construct, enter into a contract to construct or enter into a

contract to lease a new school building or substantial addition

to an existing school building without the consent of the

electors obtained by referendum or without holding a public

hearing as hereinafter provided. The following shall apply:

(1) In the event that a new school building or a substantial

addition to an existing building is to be constructed or leased,

the school board shall, by a majority vote of all its members,

authorize a maximum project cost and a maximum building

construction cost to be financed by the district or amortized by

lease rentals to be paid by the district. Building construction

cost shall consist of the cost of all building construction

including general construction costs, plumbing, heating,

electrical, ventilating and other structural costs, equipment

and fixtures and architectural and engineering fees relating

thereto, but not including costs for site acquisition and

development, rough grading to receive the building, sewage

treatment facilities or equivalent capital contributions, and

architectural and engineering fees relating thereto.

(2) In all cases, a public hearing shall be held not later

than thirty (30) days before the school district submits the

initial building construction cost estimates to the Department

of Education for approval. Notice of the hearing shall be given

not later than twenty (20) days before the date of the scheduled

hearing.

(3) In the event that the maximum building construction cost

authorization exceeds the aggregate building expenditure

standard hereinafter specified, the aforesaid authorization of

the school board shall be submitted to the electors of the

school district for their approval within six (6) months prior

to submission of the final building construction cost bids to

the Department of Education for approval. Such referendum shall

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be held in the same manner as provided by law for the approval

of the incurring of indebtedness by referendum. The question as

submitted shall specify the maximum project cost, the maximum

building construction cost and the annual sinking fund charge or

lease rental to be incurred by the school district and the

portion of such charge or rental expected to be reimbursed by

the Commonwealth.

(4) If the final building construction cost bids to be

submitted to the Department of Education for approval are less

than the aggregate building expenditure standard hereafter

specified but exceed by eight (8) per [cent] centum or more the

initial building construction cost estimates submitted to the

Department for approval, a second public hearing shall be held

before the Department shall give its final approval.

(b) Prior to constructing, entering into a contract to

construct or entering into a contract to lease a new school

building or prior to the substantial addition to or renovation

of an existing school building that would result in the school

district borrowing more than the equivalent of fifty (50) per

centum of the school district's annual revenue of the prior

school year, the board of school directors of any school

district of the second, third or fourth classes must obtain

consent of the electors by referendum in the manner prescribed

in subsection (a)(3).

shall be a total amount calculated for each building or

substantial addition by multiplying the rated pupil capacity

under the approved room schedule by the following: two thousand

eight hundred dollars ($2,800) for each pupil of rated

elementary capacity; four thousand two hundred dollars ($4,200)

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for each pupil of rated secondary capacity in grades seven,

eight and nine and five thousand two hundred dollars ($5,200)

for each pupil of rated secondary capacity in grades ten, eleven

and twelve and five thousand two hundred dollars ($5,200) for

each pupil of rated vocational-technical capacity in grades ten,

eleven and twelve to not include the cost of equipment and

fixtures in such vocational-technical schools: Provided,

however, That each of the preceding per pupil amounts shall be

adjusted by the Department of Education on July 1, 1974; and

annually thereafter through July 1, 2003, by multiplying said

amounts by the ratio of the composite construction cost index

compiled and published by the United States Department of

Commerce for the preceding calendar year to such index for the

next preceding calendar year; and Further Provided, however,

That each of the preceding per pupil amounts shall be adjusted

by the Department of Education on July 1, 2004; and annually

thereafter by multiplying said amounts by the ratio of the

Building Cost Index published by the McGraw-Hill Companies for

the preceding calendar year to such index for the next preceding

calendar year. Rated elementary pupil capacity or rated

secondary pupil capacity for any school building shall be the

rated pupil capacity determined on the basis of the method used

by the Department for school building reimbursement purposes

during the school year 1971-1972.

(d) For purposes of this section:

(1) "Site acquisition" includes the cost of land and mineral

rights, demolition and clearing, rights-of-way and related

utility relocations, surveys and soils analysis, and the cost of

all fees relating thereto.

(2) "Site development" includes excavation, grouting or

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shoring, special foundations for buildings, access roads to

site, utilities on site, extension of utilities to site.

(3) "Equipment and fixtures" means property fixed or movable

which is incidental and necessary to conduct the educational

program, and includes, but is not limited to movable equipment

such as desks, chairs, tables, portable physical education

equipment, audio-visual equipment and science, homemaking,

industrial art and business equipment and instructional

materials and fixtures such as casework, laboratory equipment,

kitchen equipment, auditorium seating and any other special

fixtures or equipment required to conduct a particular

educational program.

(4) "Substantial addition" means more than twenty (20) per

centum of the area and replacement value of the structure to

which the improvement is to be added.

Section 2. This act shall take effect in 60 days.

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