This bill mandates that school districts or chartered public schools must engage the services of an owner's project manager (OPM) at the time they apply for school building aid for construction or renovation projects costing $1,250,000 or more. The current law requires schools to engage an OPM only after they have accepted school building aid. The new language specifies that schools must have engaged the OPM prior to submitting their application, unless the commissioner waives this requirement. Additionally, the OPM is required to have comprehensive liability and auto insurance, workers' compensation coverage, and professional liability coverage. The state board of education is tasked with adopting rules regarding the services, responsibilities, and qualifications of the OPM to ensure the best interests of the project owner are upheld.

The bill is set to take effect 60 days after its passage. The fiscal impact on local school districts is indeterminable, as the requirement to engage an OPM before applying for aid may lead to additional costs without a guarantee of funding. The Department of Education notes that the cost of OPM services typically ranges from 1% to 5% of the total project cost, which could affect local expenditures.

Statutes affected:
Introduced: 198:15-c
SB513 text: 198:15-c