Regular Session 2023-2024 House Bill 1388 P.N. 1573

PRINTER'S NO. 1573

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1388

Session of

2023

INTRODUCED BY GROVE, KAUFFMAN, ZIMMERMAN, JAMES AND ROWE,

JUNE 14, 2023

REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 14, 2023

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; and making editorial changes.

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

FISCAL AFFAIRS

Chapter

31. Microenterprise Assistance

100. Capital Projects

Section 2. Part III of Title 72 is amended by adding a

chapter to read:

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:

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(1) A vote by a standing committee of the Senate to

report a capital budget bill out of the standing committee of

the Senate.

(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

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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,

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

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and the estimated cost for the next five fiscal years,

including all of the following:

(i) The outstanding general obligation debt and debt

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:

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(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.

(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

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capital projects.

§ 10004. Debt limit for capital projects.

(a) Certification.--No later than December 1 of each year,

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

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Auditor General under section 10004.

(3) The State Treasurer shall not pay for expenditures

in a capital budget bill with expenditures that exceed the

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 3. This act shall take effect immediately.

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