PRINTER'S NO. 1394
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1171
Session of
2017
INTRODUCED BY CALTAGIRONE, GILLEN, BURNS, McNEILL, MILLARD AND
MENTZER, APRIL 12, 2017
REFERRED TO COMMITTEE ON EDUCATION, APRIL 12, 2017
AN ACT
Amending the act of July 5, 1947 (P.L.1217, No.498), entitled
"An act to promote the education and educational facilities
of the people of the Commonwealth of Pennsylvania; creating a
State Public School Building Authority as a body corporate
and politic with power to construct, improve and operate
projects and to lease the same and to fix and collect fees,
rentals and charges for the use thereof; authorizing school
districts to enter into contracts to lease; authorizing and
regulating the issuance of bonds by said Authority; and
providing for the payment of such bonds and the rights of the
holders thereof; granting the right of eminent domain;
increasing the powers and duties of the Department of Public
Instruction; and providing that no debt of the Commonwealth
shall be incurred in the exercise of any of eminent domain;
increasing the powers and duties of the Department of Public
Instruction; and providing that no debt of the Commonwealth
shall be incurred in the exercise of any of the powers
granted under this act; and making an appropriation to said
Authority to pay expenses incident to its formation," further
providing for purposes and general powers of the authority.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 4 of the act of July 5, 1947 (P.L.1217,
No.498), known as the State Public School Building Authority
Act, is amended to read:
Section 4. Purposes and General Powers.--The Authority is
created for the purpose of acquiring, financing, refinancing,
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constructing, improving, furnishing, equipping, maintaining and
operating buildings for public school and educational
broadcasting facilities for use as a part of the public school
system of the Commonwealth of Pennsylvania under the
jurisdiction of the Department of Education. The Authority also
shall have for its purpose the acquiring, financing,
refinancing, construction, improvement, furnishing, equipping,
maintenance and operation of community college buildings.
The Authority is hereby granted and shall have and may
exercise all the powers necessary or convenient for the carrying
out of the aforesaid purposes, including but without limiting
the generality of the foregoing, the following rights and
powers:
(a) To have perpetual existence as a corporation;
(b) To sue and be sued, implead and be impleaded, complain
and defend, in all courts;
(c) To adopt, use and alter at will a corporate seal;
(d) To acquire, purchase, hold, lease as lessee, and use any
property real, personal or mixed, tangible or intangible, or any
interest therein, (necessary or desirable) for carrying out the
purposes of the Authority, and to sell, lease as lessor,
transfer and dispose of any property or any interest therein at
any time acquired by it;
(d.1) To finance projects by making loans to any eligible
school district or board of trustees of a community college,
which loans may be evidenced by and secured as may be provided
in loan agreements, mortgages, security agreements or any other
contracts, instruments or agreements, which may contain such
provisions as the Authority shall determine necessary or
desirable for the security or protection of the Authority or its
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bondholders. All such provisions shall be a part of the contract
with the holders of the bonds of the Authority issued with
respect to such project.
(e) To acquire by purchase, lease or otherwise, and to
construct, improve, maintain, repair and operate projects;
(f) To make by-laws for the management and regulations of
its affairs;
(g) To appoint officers, agents, employes and servants, to
prescribe their duties and to fix their compensation;
(h) To fix, alter, charge and collect rentals, and other
charges in respect of the facilities financed or for the
services rendered by the Authority or projects thereof, at
reasonable rates to be determined by it for the purpose of
providing for the payment of the expenses of the Authority, not
provided for by appropriation by the Commonwealth, or otherwise,
the acquiring, financing, refinancing, construction,
improvement, repair, equipping and furnishing, maintenance and
operation of projects and any facilities and properties, the
payment of the principal of, and interest on, any obligation,
and to fulfill the terms and provisions of any agreements made
with the purchasers or holders of any such obligations;
(i) To borrow money for the purpose of financing or
refinancing the cost of any project, make and issue negotiable
notes, bonds, refunding bonds and other evidences of
indebtedness or obligations (hereinafter called "bonds"), of the
Authority, and to secure the payment of such bonds, or any part
thereof, by pledge or deed of trust of all, or any of its
revenues, rentals and receipts, and to make such agreements with
the purchasers or holders of such bonds, or with others in
connection with any such bonds, whether issued or to be issued
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as the Authority shall deem advisable, and in general to provide
for the security for said bonds and the rights of the holders
thereof;
(j) To make contracts of every name and nature, and to
execute all instruments necessary or convenient for the carrying
on of its business;
(j.1) To enter into contracts with the board of school
directors of any school district, the members of which school
board are members of any nonprofit community corporation having
a Federal Communications Commission license for educational
broadcasting stations, for the purpose of acquiring, financing,
refinancing, constructing, improving, furnishing, equipping,
maintaining and operating these facilities as a part of the
public school system of the Commonwealth of Pennsylvania.
(k) Without limitation of the foregoing, to borrow money,
and accept grants from, and to enter into contracts, leases or
other transaction with, any Federal agency;
(l) To have the power of eminent domain;
(m) To pledge, hypothecate or otherwise encumber, all or any
of the revenues or receipts of the Authority as security for
all, or any of, the obligations of the Authority;
(n) To do all acts and things necessary or convenient to
carry out the powers granted to it by this act or any other
acts;
Provided, however, That the Authority shall have no power, at
any time or in any manner, to pledge the credit or taxing power
of the Commonwealth or any of its school districts or local
sponsors or boards of trustees of community colleges, nor shall
any of its obligations or debts be deemed to be obligations of
the Commonwealth, or any of its school districts or local
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sponsors or boards of trustees of any community college, nor
shall the Commonwealth or any of its school districts or local
sponsors or boards of trustees of any community college be
liable for the payment of principal or interest on such
obligations;
Provided, further, That all contracts between the Authority
and school districts shall be conditioned upon the preparation
of general plans for the centralized design of physical plants,
for the orderly development of improved attendance areas[,] and
administrative units and for the improved housing of the public
schools of the Commonwealth. These plans shall be prepared
cooperatively by local, county and State school authorities, in
accordance with standards and regulations prescribed by the
Department. The Department shall have authority and its duty
shall be to review all construction projects to determine:
(1) The extent to which they conform to general county and
State plans;
(2) The amount of improvement to be brought about in
attendance areas and administrative units;
(3) The adequacy of the proposed building with respect to
educational design, location, usefulness for community
activities, safety, comfort and convenience;
(4) The ability of the local school district or districts to
amortize the cost of the project, and to defray the cost of
operation and maintenance.
No contract shall be executed between the Authority and
school districts without the specific written approval of the
Department.
Provided further, That all contracts between the Authority
and local sponsors and/or boards of trustees of community
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colleges and/or the Department of Public Instruction shall be
conditioned upon any approval of the State Board of Education or
the Department of Public Instruction required by the act of
August 24, 1963 (P.L.1132), known as the "Community College Act
of 1963."
Section 2. The amendment of the second proviso of section 4
of the act shall apply to contracts entered into on or after the
effective date of this section.
Section 3. This act shall take effect in 60 days.
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