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        PRIOR PRINTER'S NO. 740                       PRINTER'S NO. 2116

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 642 Session of 2005


        INTRODUCED BY ARMSTRONG AND LEMMOND, APRIL 28, 2005

        SENATOR RHOADES, EDUCATION, AS AMENDED, OCTOBER 3, 2006

                                     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," authorizing a school district to
     6     purchase or acquire by other means real property owned by a
     7     school director under certain conditions.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Section 324 of the act of March 10, 1949 (P.L.30,
    11  No.14), known as the Public School Code of 1949, amended June
    12  22, 2001 (P.L.530, No.35), is amended to read:
    13     Section 324.  Not to be Employed by or do Business with
    14  District; Exceptions.--(a)  No school director shall, during the
    15  term for which he was elected or appointed, as a private person
    16  engaged in any business transaction with the school district in
    17  which he is elected or appointed, be employed in any capacity by
    18  the school district in which he is elected or appointed, or
    19  receive from such school district any pay for services rendered
    20  to the district except as provided in this act: Provided, That

     1  one who has served as a school director for two consecutive
     2  terms, of six years each, may be elected to the position of
     3  attorney or solicitor for the board of which he was a member by
     4  the unanimous vote of all the other members of the board, and,
     5  after resigning his office as school director, shall be entitled
     6  to receive such pay for his services as solicitor as the board
     7  of school directors may determine: Provided, however, That a
     8  school director may be appointed to the position of secretary to
     9  the board of a school district of the second class, of which he
    10  was a member during the term for which he was elected or
    11  appointed upon the unanimous consent of all the other members of
    12  the board after resigning his office as school director, and he
    13  shall be entitled to receive such pay for his services as
    14  secretary as the board of school directors shall determine: And
    15  provided further, That one who has served as a school director
    16  may, after resigning from office as a school director, be
    17  elected to the position of teacher by the board of which he was
    18  a member by a vote of at least two-thirds of all other members
    19  of the board and shall be entitled to receive such pay for his
    20  services as a teacher as the board of school directors may
    21  lawfully determine.
    22     (b)  No school board shall draw, cause to be drawn or accept
    23  a specification for any item to be purchased by the school
    24  district that would limit the purchase of the item to the firm,
    25  corporation, partnership or other business entity of which a
    26  school director is an officer, agent or employe and exclude all
    27  other persons who could submit quotations or bid on an
    28  equivalent item.
    29     (c)  It shall not be a violation of this section for a school
    30  district to contract for the purchase of goods or services from
    20050S0642B2116                  - 2 -     

     1  a business with which a school director is associated to the
     2  extent permitted by and in compliance with 65 Pa.C.S. Ch. 11
     3  (relating to ethics standards and financial disclosure).
     4     (d)  It shall not be a violation of this section for a school
     5  district to acquire by purchase, by condemnation or by deed in    <--
     6  lieu of condemnation land and/or buildings in which a school
     7  director has an ownership interest so long as there is
     8  compliance with 65 Pa.C.S. Ch. 11 (relating to ethics standards
     9  and financial disclosure) and the proposed acquisition is
    10  approved by the court of common pleas of the county in which the
    11  school district is located. Approval by the court shall be on
    12  petition by the board of school directors, which petition shall
    13  contain a full and complete description of the land proposed to
    14  be acquired, a brief description and character of the building
    15  or buildings erected thereon, if any, and the terms and
    16  conditions for the acquisition of the property, including the
    17  amount to be paid for the property. The petition shall have
    18  attached thereto an affidavit of two State-certified or State-
    19  licensed real estate appraisers, both of whom hold a current,
    20  valid general certification from the State Board of Certified
    21  Real Estate Appraisers, to the effect that they have examined
    22  the property, that the amount to be paid therefor is fair and
    23  reasonable and in their opinion not in excess of the fair market
    24  value of the property, and that they are not interested, either
    25  directly or indirectly, in the purchase or sale thereof. Before
    26  the court may act upon any such petition it shall fix a time for
    27  a hearing by the court thereon and shall direct that public
    28  notice thereof be given by publication in one or more newspapers
    29  of general circulation published within the county in which the
    30  school district is located and in the legal newspaper in said
    20050S0642B2116                  - 3 -     

     1  county, if any, once a week for three successive weeks before
     2  the date fixed for the hearing, and by handbills, one or more of
     3  which must be posted on the property proposed to be acquired,
     4  and at least five of which must be posted at conspicuous places
     5  within the vicinity of said property. LAND, BUILDINGS, OR BOTH,   <--
     6  IN WHICH A MEMBER OF THE SCHOOL DISTRICT'S BOARD OF SCHOOL
     7  DIRECTORS HAS AN OWNERSHIP INTEREST PROVIDED THAT:
     8     (1)  PUBLIC NOTICE OF THE PROPOSED ACQUISITION, INCLUDING AN
     9  IDENTIFICATION OF THE LAND, BUILDINGS, OR BOTH, THE APPRAISED
    10  VALUE OF THE PROPOSED ACQUISITION, AS IDENTIFIED BY AN
    11  INDEPENDENT STATE-CERTIFIED OR STATE-LICENSED REAL ESTATE
    12  APPRAISER AND THE PROPOSED PURCHASE PRICE, IS GIVEN BY
    13  PUBLICATION IN ONE OR MORE NEWSPAPERS OF GENERAL CIRCULATION
    14  PUBLISHED WITHIN THE COUNTY IN WHICH THE SCHOOL DISTRICT IS
    15  LOCATED;
    16     (2)  THE OPPORTUNITY FOR PUBLIC COMMENT ON THE PROPOSED
    17  ACQUISITION IS PROVIDED PRIOR TO FINAL ACTION, DURING TWO (2)
    18  REGULAR MEETINGS OF THE BOARD OF SCHOOL DIRECTORS;
    19     (3)  FINAL ACTION ON THE PROPOSED ACQUISITION BY THE BOARD OF
    20  SCHOOL DIRECTORS IS TAKEN AT A PUBLIC MEETING; AND
    21     (4)  THERE IS COMPLIANCE WITH 65 PA.C.S. CH. 11 (RELATING TO
    22  ETHICS STANDARDS AND FINANCIAL DISCLOSURE).
    23     Section 2.  This act shall take effect immediately.





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