PRINTER'S NO. 1515
No. 1327 Session of 1997
INTRODUCED BY SCHULER, COY, FARGO, DALEY, B. SMITH, FAIRCHILD, BAKER, RUBLEY, GEIST, GORDNER, HORSEY, HENNESSEY, McCALL, HERSHEY, BELFANTI, MICOZZIE, BATTISTO, ZUG, TRUE, SEMMEL, CURRY, STEELMAN, TRELLO AND PISTELLA, APRIL 16, 1997
REFERRED TO COMMITTEE ON EDUCATION, APRIL 16, 1997
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," further providing for the operation
6 of the State System of Higher Education; and making a repeal
7 and editorial changes.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 2002-A of the act of March 10, 1949
11 (P.L.30, No.14), known as the Public School Code of 1949,
12 amended or added November 12, 1982 (P.L.660, No.188) and June
13 23, 1988 (P.L.457, No.77), is amended to read:
14 Section 2002-A. Establishment of the State System of Higher
15 Education and its Institutions.--(a) [Subject to the regulatory
16 powers conferred by law upon the State Board of Education,
17 there] There is hereby established a body corporate and politic
18 constituting a public corporation and government instrumentality
19 which shall be known as the State System of Higher Education,
1 independent of the Department of Education, hereinafter referred 2 to as the system, which shall consist of the following 3 institutions and such other institutions, presently existing or 4 newly created, as may hereafter be admitted by the board in 5 concurrence with other agencies as required by law: 6 [(1) Bloomsburg State College; 7 (2) California State College; 8 (3) Cheyney State College; 9 (4) Clarion State College; 10 (5) East Stroudsburg State College; 11 (6) Edinboro State College; 12 (7) Indiana University of Pennsylvania; 13 (8) Kutztown State College; 14 (9) Lock Haven State College; 15 (10) Mansfield State College; 16 (11) Millersville State College; 17 (12) Shippensburg State College; 18 (13) Slippery Rock State College; and 19 (14) West Chester State College.] 20 (1) Bloomsburg University of Pennsylvania. 21 (2) California University of Pennsylvania. 22 (3) Cheyney University of Pennsylvania. 23 (4) Clarion University of Pennsylvania. 24 (5) East Stroudsburg University of Pennsylvania. 25 (6) Edinboro University of Pennsylvania. 26 (7) Indiana University of Pennsylvania. 27 (8) Kutztown University of Pennsylvania. 28 (9) Lock Haven University of Pennsylvania. 29 (10) Mansfield University of Pennsylvania. 30 (11) Millersville University of Pennsylvania. 19970H1327B1515 - 2 -
1 (12) Shippensburg University of Pennsylvania. 2 (13) Slippery Rock University of Pennsylvania. 3 (14) West Chester University of Pennsylvania. 4 (b) [Each of the said institutions shall hereafter be known 5 as the (Name) University of Pennsylvania of the State System of 6 Higher Education, except for Indiana University of Pennsylvania, 7 which shall retain its name.] As successor institutions to the 8 State Normal Schools, appropriations for their operation are 9 ordinary expenses of government, requiring only a majority vote 10 of each House of the General Assembly. The State System of 11 Higher Education shall have the same preferred status for 12 appropriations as is enjoyed by its constituent institutions. 13 State funds appropriated to the system shall be allocated to the 14 individual institutions, the Office of the Chancellor and other 15 programs and facilities by the board on a formula based on, but 16 not limited to, such factors as enrollments, degrees granted and 17 programs. The board may create a system reserve, the balance of 18 which shall not exceed one-half of one per cent (0.50%) of all 19 available operating funds, which may be expended for emergencies 20 and special projects in accordance with board policy. For 21 purposes of this section, the term "operating funds" shall mean 22 any Federal appropriation, any State appropriation, any student 23 tuition fees and any student fees for room and board. 24 Section 2. Section 2003-A of the act, amended July 11, 1990 25 (P.L.424, No.103), is amended to read: 26 Section 2003-A. Purposes and General Powers.--(a) The State 27 System of Higher Education shall be part of the Commonwealth's 28 system of higher education. Its purpose shall be to provide high 29 quality education at the lowest possible cost to the students. 30 The primary mission of the system is the provision of 19970H1327B1515 - 3 -
1 instruction for undergraduate and graduate students to and 2 beyond the master's degree in the liberal arts and sciences and 3 in applied fields, including the teaching profession. Graduate 4 instruction at the doctoral level, except for doctoral programs 5 provided for in the act of December 16, 1965 (P.L.1113, No.430), 6 known as the "Indiana University of Pennsylvania Act," only may 7 be offered jointly with Indiana University or an institution 8 chartered to offer work at the doctoral level. Programs of 9 research and service may be provided which are approved by the 10 Board of Governors, and which are consistent with the primary 11 mission of the system. Each institution shall provide 12 appropriate educational facilities, student living facilities 13 and such other facilities as deemed necessary by the board. 14 (b) The system is hereby granted and shall have and may 15 exercise all the powers necessary or convenient for the carrying 16 out of the aforesaid purposes, including, but without limiting 17 the generality of the foregoing, the following rights and 18 powers: 19 (1) To have perpetual existence as a corporation. 20 (2) To adopt, use and alter at will a corporate seal. 21 (3) To acquire, purchase, hold, lease as lessee and use any 22 property, real, personal or mixed, tangible or intangible, or 23 any interest therein, lease as lessor any property, real, 24 personal or mixed, tangible or intangible, necessary or 25 desirable for carrying out the purposes of the system, and to 26 sell, transfer and dispose of any property acquired by gift, 27 grant, devise or bequest, whether the property is real, personal 28 or mixed, tangible or intangible, or any interest therein; to 29 take, demand, receive and possess all moneys, real property and 30 goods which shall be appropriated, given or granted to for the 19970H1327B1515 - 4 -
1 use of the system and to apply the same according to the will of 2 the donors; to sell, transfer and dispose of real property 3 acquired by and titled to the system upon approval by the 4 General Assembly as provided in section 2018-A; and by gift, 5 purchase or devise to receive, possess, enjoy and retain forever 6 any and all real and personal estate and funds, of whatsoever 7 kind, nature or quality the same may be, in special trust and 8 confidence that the same, and the profits thereof, shall be 9 applied to and for the use and purpose of endowing the system, 10 and shall have power to receive donations from any source 11 whatever, to be exclusively devoted to the purposes of the 12 system or according to the terms of donation: Provided, however, 13 That the system shall have no power at any time or in any 14 manner, to pledge the credit or taxing power of the 15 Commonwealth, nor shall any of its obligations or debts be 16 deemed to be obligations of the Commonwealth, nor shall the 17 Commonwealth be liable for the payment of principal or interest 18 on such obligations. Nothing herein shall empower the Board of 19 Governors or the chancellor to take or receive any moneys, goods 20 or other property, real or personal, which is given or granted 21 to specific institutions. 22 (4) To negotiate joint ventures, consortia and partnerships 23 with businesses, industries, organizations, local and State 24 governments, the Federal Government and foreign governments, 25 consistent with the general purposes of subsection (a). 26 (5) To borrow money, make and issue negotiable notes, bonds, 27 refunding bonds and other evidence of indebtedness of 28 obligations, herein called bonds, of the system, subject to all 29 of the following conditions and limitations: 30 (i) The bonds shall have a maturity date not longer than 19970H1327B1515 - 5 -
1 forty (40) years from the date of issue. 2 (ii) The system, by pledge or deed of trust of all or any of 3 its revenues and receipts, may secure the payment of such bonds 4 or any part thereof. 5 (iii) The system may make such agreements with the 6 purchasers or holders of such bonds, or with others in 7 connection with any such bonds, whether issued or to be issued, 8 as the system shall deem advisable. 9 (iv) The system shall provide for the security for the bonds 10 and the rights of the holders thereof. 11 (v) The system shall not issue bonds if, on the date of 12 issuance, the aggregate principal amount of bonds to be 13 outstanding shall exceed seventy-five per cent (75%) of the 14 system's average annual gross revenues for the three (3) 15 consecutive fiscal years preceding the fiscal year in which 16 bonds are proposed to be issued, except that leases, capitalized 17 or otherwise, entered into by the system, as lessee, in 18 connection with the acquisition of real and personal property 19 shall not be considered bonds for the purposes of these 20 limitations. 21 (vi) The system shall have no power, at any time or in any 22 manner, to pledge the credit or taxing power of the 23 Commonwealth, nor shall any of the bonds or debts of the system 24 be deemed to be obligations of the Commonwealth, nor shall the 25 Commonwealth be liable for the payment of principal or interest 26 on such bonds or other obligations. 27 (c) Collective bargaining agreements in force at the time of 28 enactment of this act shall remain in force for the term of the 29 contract. New collective bargaining agreements with professional 30 employes shall be negotiated on behalf of the system by the 19970H1327B1515 - 6 -
1 chancellor. The board shall make a coalition bargaining 2 arrangement with the Commonwealth for the negotiation of new 3 collective bargaining agreements with noninstructional employes. 4 Section 3. Section 2003-A.1(e) of the act, amended July 11, 5 1990 (P.L.424, No.103), is amended and the section is amended by 6 adding a subsection to read: 7 Section 2003-A.1. Project Contracts.--* * * 8 (e) (1) Nothing in this section shall be construed as 9 amending, repealing or otherwise modifying the provisions of the 10 act of May 1, 1913 (P.L.155, No.104), entitled "An act 11 regulating the letting of certain contracts for the erection, 12 construction, and alteration of public buildings," or the act of 13 August 15, 1961 (P.L.987, No.442), known as the "Pennsylvania 14 Prevailing Wage Act." 15 (2) The statutes described in paragraph (1) shall apply only 16 to projects funded in whole or in part by the Commonwealth. 17 Projects funded with student fees, but where no Commonwealth 18 funds are involved are exempt from these statutes. 19 * * * 20 (g) Contractors awarded contracts in excess of twenty-five 21 thousand dollars ($25,000) shall furnish performance bonds for 22 one hundred per cent (100%) of the contract amount to insure 23 faithful performance of all contractual obligations, payment 24 bonds in the amount of one hundred per cent (100%) of the 25 contract amount for the protection of persons providing the 26 contractor labor, materials, supplies and services, and 27 maintenance bonds in the amount of ten per cent (10%) of the 28 contract amount for correction of warranty defects on such forms 29 as the chancellor may specify. Such bonds shall be executed by 30 surety companies authorized to do business in this Commonwealth. 19970H1327B1515 - 7 -
1 All bonds shall be payable to the State System of Higher 2 Education. 3 Section 4. Section 2004-A of the act, amended June 23, 1988 4 (P.L.457, No.77), is amended to read: 5 Section 2004-A. Board of Governors.--(a) The system shall 6 be governed and all of its corporate powers exercised by the 7 Board of Governors, which shall consist of twenty (20) members 8 to be appointed as follows: 9 (1) The Governor, or [his] a designee of the Governor. 10 (2) The Secretary of Education, or [his] a designee of the 11 Secretary. 12 (3) One (1) Senator appointed by the President pro tempore 13 of the Senate. 14 (4) One (1) Senator appointed by the Minority Leader of the 15 Senate. 16 (5) One (1) Representative appointed by the Speaker of the 17 House of Representatives. 18 (6) One (1) Representative appointed by the Minority Leader 19 of the House of Representatives. 20 (7) Fourteen (14) members shall be appointed by the Governor 21 and, except for student members, these appointments shall be 22 with the advice and consent of the Senate [of which six (6) 23 shall be selected from the citizens of the Commonwealth]. Three 24 (3) members of the fourteen (14) shall be students, no more than 25 one (1) of whom may be a post-baccalaureate student, whose terms 26 shall expire upon graduation, separation or failure to maintain 27 good academic [standards] standing at their institution and five 28 (5) of the fourteen (14) shall be trustees of constituent 29 institutions, however, no more than one trustee representing a 30 constituent institution. The student members shall be selected 19970H1327B1515 - 8 -
1 from the [presidents] elected executive officers of the local 2 campus student government associations, or their local 3 equivalent. No student member shall simultaneously serve as a 4 member of a council. 5 (b) All members of the board appointed by the Governor, 6 except for the students, shall serve for terms of four (4) 7 years[.], but no trustee member shall be eligible to serve after 8 the expiration of that member's term and the appointment of a 9 successor council member. The Governor and Secretary of 10 Education shall serve so long as they continue in office. 11 Members of the board appointed from the General Assembly shall 12 serve a term of office concurrent with their respective elective 13 terms as members of the General Assembly. 14 (c) The Governor or [his] a designee of the Governor, and 15 the Secretary of Education or [his] a designee of the Secretary, 16 and the members of the General Assembly shall be members of the 17 board and shall be entitled to attend all meetings of the board 18 and shall have the right to speak on all matters before the 19 board, and to vote, but shall not be elected as an officer of 20 the board. 21 (d) The board shall elect one (1) of its members to serve as 22 its chairperson at the pleasure of the board. Members shall 23 receive no compensation for their services but shall be 24 reimbursed for the expenses necessarily incurred by them in the 25 performance of their duties. The board shall meet quarterly and 26 additionally at the call of the chairperson, or upon request of 27 six (6) members of the board. 28 (e) The chancellor shall be the chief executive officer of 29 the board and shall have the right to speak on all matters 30 before the board, but not to vote. 19970H1327B1515 - 9 -
1 (f) Each board member shall attend an orientation during the 2 member's first year of service which shall be conducted by the 3 chancellor. The purpose of this orientation shall be to acquaint 4 board members with their duties, the mission of the system and 5 system operations. The chancellor shall certify attendance to 6 the respective appointing authority. 7 (g) Any board member who is absent from three (3) 8 consecutive regular meetings shall be removed by the respective 9 appointing authority unless all such absences were caused by 10 personal illness, the illness of a family member or the death of 11 a family member. The chairperson of the board shall notify the 12 respective appointing authority when a board member has 13 unexcused absences from three (3) consecutive regular meetings. 14 Section 5. Section 2005-A(7) and (10) of the act, added 15 November 12, 1982 (P.L.660, No.188), are amended and the section 16 is amended by adding clauses to read: 17 Section 2005-A. The Chancellor.--The chief executive officer 18 of the system shall be a chancellor, who shall be employed by 19 the board in accordance with clause (1) of section 2006-A. In 20 addition to those prescribed by the board, the chancellor shall 21 have the following duties: 22 * * * 23 (7) The chancellor shall be responsible for the 24 administration of the central office, systemwide business 25 procedures and for the overall organization of maintenance of 26 the physical plants and security at all institutions. The 27 chancellor, in consultation with the commission and the approval 28 of the board, may organize centrally provided administrative and 29 professional support services and allocate charges for same to 30 users. 19970H1327B1515 - 10 -
1 * * * 2 (10) The chancellor shall serve as an ex officio member of 3 the council of each institution in the system, without voting 4 privileges. 5 * * * 6 (12) The chancellor shall create and conduct orientation 7 programs for new board members and trustees in consultation with 8 representatives of the board, the commission and the councils 9 and shall certify attendance to the respective appointing 10 authority. 11 Section 6. Section 2006-A of the act, amended or added 12 November 12, 1982 (P.L.660, No.188), July 1, 1985 (P.L.103, 13 No.31), June 23, 1988 (P.L.457, No.77) and July 11, 1990 14 (P.L.424, No.103), is amended to read: 15 Section 2006-A. Powers and Duties of the Board of 16 Governors.--(a) The Board of Governors shall have overall 17 responsibility for planning and coordinating the development and 18 operation of the system. The powers and duties of the Board of 19 Governors shall be: 20 (1) To employ the chancellor to serve at the board's 21 pleasure under fixed term or contract of fixed duration of not 22 longer than five (5) years; to fix [his] the chancellor's 23 salary; to prescribe and delineate [his] the chancellor's duties 24 and responsibilities; prior to the renewal of such term or 25 contract, the board shall conduct an evaluation of the 26 chancellor's service to determine whether such term or contract 27 should be renewed and for what period of time. 28 (2) To appoint from the list submitted by the chancellor, 29 pursuant to section 2005-A(4), presidents of the constituent 30 institutions to serve at the board's pleasure under fixed terms 19970H1327B1515 - 11 -
1 or contracts of fixed duration, to fix the salaries and other 2 terms of appointment of each president and prior to renewal of 3 such term or contract consider the results of the evaluation of 4 each president's service submitted by the chancellor. 5 (3) To establish policies and procedures to be applied by 6 the chancellor, the board and each local council in evaluating 7 the president and recommending the selection, retention and 8 dismissal of the president of its respective institution. 9 (4) To establish broad fiscal, personnel and educational 10 policies under which the institutions of the system shall 11 operate. 12 (5) To create new undergraduate and graduate degree 13 programs, which shall not be subject to the rules and 14 regulations of the State Board of Education; to approve 15 [extension campuses] establishment of branch campuses and 16 extension centers and new external degree programs subject to 17 the rules and regulations of the State Board of Education; to 18 promote cooperation among institutions, including the 19 development of consortia within the system and other educational 20 institutions and agencies; to approve the creation of joint 21 ventures, consortia and partnerships between system institutions 22 and businesses, industries, organizations, local and State 23 governments, the Federal Government and foreign governments, 24 consistent with the general purposes of section 2003-A(a). 25 (6) To establish general policies for the admission of 26 students and to assure procedural protection for the discipline 27 and expulsion of students. The actual admission of students 28 shall remain the province of the individual institutions. 29 (7) To coordinate, review, amend and approve the annual 30 capital budget requirements of the system, the annual operating 19970H1327B1515 - 12 -
1 budgets of the individual institutions and the operating budget 2 of the chancellor and the board. The board shall present these 3 annual budgets with comments to the secretary for presentation 4 to the State board. The State board shall return such budget 5 requests, recommending approval or disapproval with comments, if 6 any, to the secretary prior to their submission to the Secretary 7 of Budget and Administration. The board may also submit its 8 budget recommendations and findings to the General Assembly 9 subsequent to the submission of the Governor's budget to the 10 General Assembly. For the purpose of administration, the system 11 shall be subject to Article VI of the act of April 9, 1929 12 (P.L.177, No.175), known as "The Administrative Code of 1929," 13 except for section 615. 14 (8) To establish general personnel policies under which the 15 institutions shall operate consistent with merit principles; to 16 determine equivalent degree and teaching experience 17 qualifications for appointment or promotion of faculty employes 18 within the classifications enumerated in the act of January 18, 19 1952 (1951 P.L.2111, No.600), referred to as the State College 20 Faculty Compensation Law, to include, but not be limited to, the 21 Degrees of Juris Doctor and Master of Fine Arts; and to enter 22 into collective bargaining agreements pursuant to the act of 23 July 23, 1970 (P.L.563, No.195), known as the "Public Employe 24 Relations Act," in accordance with section 2003-A of this act. 25 (9) To recommend approval or disapproval of all system 26 building projects to the Secretary of the Budget which are not 27 within the contracting authority of the system under section 28 2003-A.1. 29 (10) To represent the system before the General Assembly, 30 the Governor and the State board. 19970H1327B1515 - 13 -
1 (11) To fix the levels of tuition fees, except student 2 activity fees. Tuition fees shall include a differential for 3 such charges between students who are residents of the 4 Commonwealth and students who are nonresidents. 5 (12) To adopt general policies with regard to student 6 activity fees and to provide for student participation in the 7 formulation of these policies. 8 (13) To establish policies regarding waiver, deferment and 9 refund of tuition fees and other charges and fees. 10 (13.1) To set the amounts for fines for violations of rules 11 respecting parking and operation of motor vehicles on system 12 facilities, which shall not exceed the amounts which 13 municipalities are authorized to assess for such offenses under 14 75 Pa.C.S. (relating to vehicles). 15 (13.2) To establish policy concerning expenditures from the 16 system reserve and to approve all expenditures therefrom. 17 (13.3) To establish policy concerning the organization of 18 centrally provided administrative and professional support 19 services, including allocation of charges therefor and to 20 approve the chancellor's recommendations for the establishment 21 of such services. 22 (14) To make all reasonable rules and regulations necessary 23 to carry out the purposes of this article and the duties of the 24 board. 25 (15) To do and perform generally all of those things 26 necessary and required to accomplish the role and objectives of 27 the system. 28 (b) The Board of Governors shall provide for the holding of 29 regular and special meetings. Eleven (11) governors attending 30 shall constitute a quorum for the transaction of any business 19970H1327B1515 - 14 -
1 and, unless a greater number is required by the bylaws of the 2 board, the act of a majority of the governors present at any 3 meeting shall be deemed the act of the board. 4 Section 7. The act is amended by adding a section to read: 5 Section 2006-A.1. Powers and Duties Relating to Bonds.--(a) 6 The bonds of the State System of Higher Education authorized to 7 be issued shall: 8 (1) Be authorized by resolution of the Board of Governors of 9 the system. 10 (2) Be of such series, bear such date or dates, mature at 11 such time or times, not exceed forty (40) years from their 12 respective dates. 13 (3) Bear interest at such rate or rates as shall be 14 determined by the system as necessary to issue and sell the 15 authorized bonds. 16 (4) Be in such denominations, in such form, either coupon or 17 fully registered without coupons and carry such registration, 18 exchangeability and interchangeability privileges as the system 19 may determine. 20 (5) Be payable in such medium of payment and at such place 21 or places as the system shall determine. 22 (6) Be subject to such terms of redemption and be entitled 23 to such priorities in the revenues or receipts of the system as 24 such resolution or resolutions may provide. 25 (7) Contain such other terms and conditions as shall be 26 deemed advisable by the system. 27 (b) The bonds shall be signed by or shall bear the facsimile 28 signature of such officers as the board shall determine. Coupon 29 bonds shall have attached thereto interest coupons bearing the 30 facsimile signature of the chief fiscal officer of the system. 19970H1327B1515 - 15 -
1 (c) Any such bonds may be issued and delivered, 2 notwithstanding that one or more of the officers signing such 3 bonds or the facsimile or whose signature shall be upon such 4 bonds, the coupons or any part thereof shall have ceased to be 5 such officer or officers at the time when such bonds shall 6 actually be delivered. 7 (d) The bonds may be sold at public or private sale for such 8 price or prices and at such rate of interest as the system shall 9 determine. 10 (e) Pending the preparation of the definitive bonds, interim 11 receipts may be issued to the purchaser of such bonds and may 12 contain such terms and conditions as the system may determine. 13 (f) Any resolution or resolutions authorizing any bonds may 14 contain provisions which shall be part of the contract with the 15 holders thereof as to: 16 (1) The terms and provisions of the bonds. 17 (2) Limitations on the purposes to which the proceeds of the 18 bonds then or thereafter to be issued, or of any loan or grant 19 by the United States, may be applied. 20 (3) The setting aside of reserves or sinking funds and the 21 regulation and disposition thereof. 22 (4) Limitations on the issuance of additional bonds. 23 (5) The terms and provisions of any deed of trust or 24 indenture securing the bonds or under which the same may be 25 issued. 26 (6) Any other or additional agreements with the holder of 27 the bonds. 28 (g) The system may enter into any deeds of trust indentures 29 or other agreements, with any bank or trust company or other 30 person or persons in the United States having power to enter 19970H1327B1515 - 16 -
1 into the same, including any Federal agency as security for such 2 bonds, and may assign and pledge all or any of the revenues or 3 receipts of the system thereunder. The deed of trust, indenture 4 or other agreement may contain such provisions as may be 5 customary in such instruments or as the system may authorize, 6 including, but without limitation, provisions as to: 7 (1) The construction, improvement, operation, maintenance 8 and repair of any project and the duties of the system with 9 references thereto. 10 (2) The application of funds and the safeguarding of funds 11 on hand or on deposit. 12 (3) The rights and remedies of said trustee and the holders 13 of the bonds, which may include restrictions upon the individual 14 right of action of such bondholders. 15 (4) The terms and provisions of the bonds or the resolutions 16 authorizing the issuance of same. 17 (h) Except to the extent that the rights herein given may be 18 restricted by resolution passed before the issuance of the 19 bonds, or by the trust indenture, any holder of bonds issued 20 under the provisions of this section, or any of the coupons 21 attached thereto, and the trustee under the trust indenture, if 22 any, may either at law or in equity, by suit, action, mandamus 23 or other proceedings, protect and enforce any and all rights 24 granted hereunder or under such resolution or trust indenture 25 and may enforce and compel performance of all duties required by 26 this act or by such resolution or trust indenture to be 27 performed by the system or any officer thereof. 28 (i) All system bonds shall have all the qualities of 29 negotiable instruments under the law merchant and the negotiable 30 instruments law of the Commonwealth. 19970H1327B1515 - 17 -
1 (j) The accomplishment by the system of the authorized 2 purposes stated in this article being for the benefit of the 3 people of this Commonwealth and for the improvement of their 4 education and prosperity, in which accomplishment the system 5 will be performing essential governmental functions, the system 6 shall not be required to pay any taxes or assessments on any 7 property acquired or used by it for the purposes provided in 8 this article, and the bonds, notes or other obligations issued 9 by the system, their transfer and the income therefrom, 10 including any profits made on the sale thereof, shall at all 11 times be free from taxation within the Commonwealth. 12 Section 8. Section 2008-A(c) of the act, amended June 23, 13 1988 (P.L.457, No.77), is amended and the section is amended by 14 adding subsections to read: 15 Section 2008-A. Councils of Trustees.--* * * 16 [(c) The members of each board of trustees of a former State 17 college or university serving in such capacity on the effective 18 date of this act shall continue to serve for the balance of 19 their respective terms.] 20 * * * 21 (e) (1) Any trustee who is absent from three (3) 22 consecutive quarterly meetings shall be removed by the 23 respective appointing authority, unless all such absences were 24 caused by personal illness, the illness of a family member, or 25 the death of a family member. 26 (2) The chairperson of the council shall notify the 27 respective appointing authority when a council member has 28 unexcused absences from three (3) consecutive regular meetings. 29 (f) Each trustee shall attend an orientation during the 30 first year of service which shall be conducted by the 19970H1327B1515 - 18 -
1 chancellor. The purpose of this orientation shall be to acquaint 2 trustees with the duties of their office, the mission of the 3 system and their respective universities and the operations of 4 their respective universities and the system. The chancellor 5 shall certify attendance to the respective appointing authority. 6 Section 9. Section 2010-A(5)and (10) of the act, added 7 November 12, 1982 (P.L.660, No.188), are amended to read: 8 Section 2010-A. Power and Duties of Institution 9 Presidents.--The president of each institution shall be 10 appointed by the board. The president shall be the chief 11 executive officer of that institution. He shall have the right 12 to attend all meetings of the council of that institution and 13 shall have the right to speak on all matters before the council 14 but not to vote. Subject to the stated authority of the board 15 and the council, each president shall have the [power and his 16 duties shall be] following powers and duties: 17 * * * 18 (5) To establish policies and procedures governing the use 19 of institutional facilities and property [in accordance with 20 guidelines established by the local council]. 21 * * * 22 (10) Within the limitations of the operating budget and 23 other available funds in accordance with the procedures 24 established by the board and with the approval of the local 25 council, to negotiate and award all contracts for equipment, 26 services and supplies in excess of a cost of [five thousand 27 dollars ($5,000)] ten thousand dollars ($10,000) on a 28 competitive bid basis and to purchase instructional, 29 educational, extracurricular, technical, administrative, 30 custodial and maintenance equipment and supplies not in excess 19970H1327B1515 - 19 -
1 of a cost of [five thousand dollars ($5,000)] ten thousand 2 dollars ($10,000) without competitive bidding, except that such 3 items shall not be bought in series to avoid the dollar ceiling. 4 * * * 5 Section 10. Funding for the Board of Governors and the 6 chancellor shall be derived from all operating funds available 7 to the State System of Higher Education but shall not exceed 8 0.50% of such funds. For purposes of this section, the term 9 "operating funds" shall mean any Federal appropriation, any 10 State appropriation, any student tuition fees and any student 11 fees for room and board. 12 Section 11. (a) Section 3 of the act of November 12, 1982 13 (P.L.660, No.188), entitled "An act amending the act of March 14 10, 1949 (P.L.30, No.14), entitled 'An act relating to the 15 public school system, including certain provisions applicable as 16 well to private and parochial schools; amending, revising, 17 consolidating and changing the laws relating thereto,' 18 establishing the State System of Higher Education and 19 designating its institutions; creating and defining the powers 20 and duties of the Board of Governors; establishing the office 21 and duties of the chancellor of the university system; defining 22 the powers and duties of presidents and the Councils of Trustees 23 of the University Institutions; relating the powers and duties 24 of the State Board of Education with the university system; and 25 making certain repeals," is repealed. 26 (b) All other acts and parts of acts are repealed insofar as 27 they are inconsistent with this act. 28 (c) Except as otherwise provided, nothing in this act shall 29 be construed to repeal the act of April 9, 1929 (P.L.177, 30 No.175), known as The Administrative Code of 1929, but only as 19970H1327B1515 - 20 -
1 provided in this act and to the extent that the State System of 2 Higher Education or its constituent institutions are expressly 3 referred to therein, or the act of January 18, 1952 (1951 4 P.L.2111, No.600), referred to as the State College Faculty 5 Compensation Law. 6 Section 12. This act shall take effect immediately. D1L24DMS/19970H1327B1515 - 21 -