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PRINTER'S NO. 231
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
260
Session of
2021
INTRODUCED BY GROVE, RYAN, STAATS, SAYLOR, MENTZER, MOUL AND
GLEIM, JANUARY 26, 2021
REFERRED TO COMMITTEE ON FINANCE, JANUARY 26, 2021
AN ACT
Amending Title 72 (Taxation and Fiscal Affairs) of the
Pennsylvania Consolidated Statutes, providing for
Commonwealth capital improvement plans, for duties of State
agencies, for debt limit for capital projects, for
prohibition on exceeding debt limit for capital projects and
for legislative oversight.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 72 of the Pennsylvania Consolidated
Statutes is amended by adding parts to read:
PART I
PRELIMINARY PROVISIONS
(Reserved)
PART II
TAXATION
Chapter
17. (Reserved)
CHAPTER 17
(Reserved)
PART III
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FISCAL AFFAIRS
Chapter
100. Capital Projects
Chapter 100
Capital Projects
Subchapter
A. General Provisions
B. Capital Improvement Plans
Subchapter A
General Provisions
Sec.
10001. Definitions.
§ 10001. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Capital project." Any of the following:
(1) A project which is financed or funded or is proposed
to be financed or funded by the issuance of bonds, notes or
other evidences of indebtedness of the Commonwealth or a
State agency.
(2) A project which is financed or funded or is proposed
to be financed or funded by an appropriation in the General
Appropriation Act and designated as a capital expenditure by
the laws of this Commonwealth or under standards prescribed
by the State Treasurer.
"Legislative action." Any of the following:
(1) A vote by a standing committee of the Senate to
report a capital budget bill out of the standing committee of
the Senate.
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(2) A vote of a standing committee of the House of
Representatives to report a capital budget bill out of the
standing committee of the House of Representatives.
"Plan." The Commonwealth capital improvement plan prepared
under section 10002 (relating to Commonwealth capital
improvement plans).
"State agency." An executive or administrative department,
office, public authority or other instrumentality of the
Commonwealth. The term includes a board, commission or agency of
the Commonwealth that is authorized to incur debt or issue bonds
under the seal of the board, commission or agency.
SUBCHAPTER B
CAPITAL IMPROVEMENT PLANS
Sec.
10002. Commonwealth capital improvement plans.
10003. Duties of State agencies.
10004. Debt limit for capital projects.
10005. Prohibition on exceeding debt limit for capital
projects.
10006. Legislative oversight.
§ 10002. Commonwealth capital improvement plans.
(a) Duties of Governor.--
(1) The Governor shall annually prepare a Commonwealth
capital improvement plan containing the Governor's proposals
for expenditures on capital projects. No later than February
1 of each year, the Office of the Budget shall post the plan
on the Office of the Budget's publicly accessible Internet
website for review and comment by the public.
(2) No later than February 1 of each year, the Governor
shall submit a copy of the plan to the State Treasurer,
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Auditor General, Independent Fiscal Office and members of the
General Assembly.
(b) Contents of plan.--The plan shall include all of the
following:
(1) A detailed list of capital projects that the
Governor recommends to be commenced, continued or completed
by each State agency within the next three fiscal years.
(2) The fiscal impact of the capital projects
recommended under paragraph (1) on future operating expenses
of the Commonwealth, including the Governor's recommendations
on methods to fund the capital projects, and the
prioritization of the capital projects.
(3) A schedule for the next fiscal year of the
Governor's recommendations for the appropriation of funds
from the issuance of bonds authorized under the laws of this
Commonwealth.
(4) A review of capital projects that have recently been
commenced, continued or completed or are in the process of
being commenced, continued or completed.
(5) The Governor's recommendations on the maintenance of
each State agency's physical properties and equipment of
State agencies.
(6) The Governor's recommendations on the use of
properties specified under section 10003(7) (relating to
duties of State agencies).
(7) A report on the cost of the Commonwealth's overall
debt for the previous fiscal year and the current fiscal year
and the estimated cost for the next five fiscal years,
including all of the following:
(i) The outstanding general obligation debt and debt
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service costs.
(ii) The costs of leases and installment obligations
for capital projects.
(iii) The costs of long-term liabilities as recorded
in a schedule of long-term debt changes, including bonded
and nonbonded debt changes, in the Commonwealth's annual
comprehensive financial report under section 701 of the
act of April 9, 1929 (P.L.177, No.175), known as The
Administrative Code of 1929.
(iv) The unfunded actuarial accrued liability for
the Commonwealth's retirement systems and postretirement
medical and other benefits.
(8) An assessment of the Commonwealth's ability to
increase the Commonwealth's overall debt and the Governor's
recommendation on the amount of the increase in the
Commonwealth's overall debt. In developing the assessment and
recommendation under this paragraph, the Governor shall
consider the criteria used by municipal securities rating
services in rating the Commonwealth's debt obligations and
any other information that the Governor deems relevant to the
assessment and recommendation.
(9) The certified debt limit for capital projects under
section 10004 (relating to debt limit for capital projects).
§ 10003. Duties of State agencies.
No later than October 15 of each year, a State agency shall
provide the Governor and the members of the General Assembly
with all of the following:
(1) A detailed list of capital projects that the State
agency seeks to commence, continue or complete for the State
agency's purposes in the next three fiscal years.
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(2) The impact of the capital projects under paragraph
(1) on future operating expenses of the State agency and
relevant supporting data.
(3) Economic forecasts of the State agency's capital
projects that will be commenced, continued or completed in
the four fiscal years after the capital projects under
paragraph (1) are completed as may be necessary for all of
the following:
(i) The adequate presentation of the State agency's
capital projects.
(ii) Compiling a schedule for the planning,
implementation or construction of the State agency's
capital projects.
(4) A schedule for the next fiscal year of the State
agency's requested appropriations of funds from the issuance
of bonds authorized under the laws of this Commonwealth.
(5) A report with information on the State agency's
capital projects that have been recently commenced, continued
or completed or are in the process of being commenced,
continued or completed.
(6) A report with information on the maintenance of the
State agency's physical properties and capital equipment.
(7) The status of real property owned or leased by the
State agency and the current or future availability of the
real property for other uses by the Commonwealth.
(8) Any other information requested by the Governor or a
member of the General Assembly regarding the State agency's
capital projects.
§ 10004. Debt limit for capital projects.
(a) Certification.--No later than December 1 of each year,
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the Auditor General shall certify the debt limit for capital
projects funded by the issuance of bonds for the previous fiscal
year to ensure that the cost does not cause the amount of all of
the Commonwealth's net debt outstanding to exceed one and three-
quarters times the average of the annual tax revenues deposited
in the previous five fiscal years in accordance with section 7
of Article VIII of the Constitution of Pennsylvania. The Auditor
General shall provide the certification to the Governor, State
Treasurer and Independent Fiscal Office and post the
certification on the Department of the Auditor General's
publicly accessible Internet website.
(b) Quarterly analysis.--The Auditor General shall provide a
quarterly analysis of the debt limit for capital projects under
subsection (a) to the Governor, State Treasurer and Independent
Fiscal Office and post the quarterly analysis on the Department
of the Auditor General's publicly accessible Internet website.
§ 10005. Prohibition on exceeding debt limit for capital
projects.
In order to enforce the provisions of section 7 of Article
VIII of the Constitution of Pennsylvania, all of the following
apply:
(1) The General Assembly shall not pass a capital budget
bill with expenditures that exceed the debt limit certified
by the Auditor General under section 10004 (relating to debt
limit for capital projects).
(2) The Governor shall not approve a capital budget bill
with expenditures that exceed the debt limit certified by the
Auditor General under section 10004.
(3) The State Treasurer shall not pay for expenditures
in a capital budget bill with expenditures that exceed the
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debt limit certified by the Auditor General under section
10004.
§ 10006. Legislative oversight.
(a) Hearings.--The Appropriations Committee of the Senate
and the Appropriations Committee of the House of Representatives
shall hold no fewer than three hearings on the plan before
taking legislative action on a capital budget bill.
(b) Fiscal notes.--A copy of the certification under section
10004(a) (relating to debt limit for capital projects) shall be
attached as part of the fiscal note for a capital budget bill.
Section 2. This act shall take effect immediately.
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