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PRINTER'S NO. 532
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
569
Session of
2021
INTRODUCED BY DeLUCA, PISCIOTTANO AND McNEILL, FEBRUARY 22, 2021
REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 22, 2021
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,
amended October 30, 2019 (P.L.460, No.76), is amended to read:
Section 701.1. Referendum or Public Hearing Required Prior
to Construction or Lease.--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
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hearing as hereinafter provided. 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. 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. [In the event that] The school district shall submit
the building construction cost estimates to the Department of
Education, which shall review and determine if the maximum
building construction cost authorization exceeds the aggregate
building expenditure standard hereinafter specified[,] and, if
the authorization exceeds the expenditure , 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 be held in the same manner as
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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. 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 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.
The applicable aggregate building expenditure standard 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) 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 career and technical capacity in grades ten,
eleven and twelve to not include the cost of equipment and
fixtures in such career and 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
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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.
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
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
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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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